Aflac Incorporated · NYSE:AFL

Aflac — Q1 2022 Earnings Presentation

27 slides from Aflac's earnings presentation, May 2022

  1. Slide 1: Aflac Incorporated

    Afi#'ac. Incorporated

  2. Slide 2: Forward-Looking Information and Non-U.S. GAAP Financial Measures

    Forward-Looking Information and Non-U.S. GAAP Financial Measures The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by

  3. Slide 3: Max K. Brodén, Executive Vice President, CFO

    Max K. Brodén Executive Vice President CFO, Aflac Incorporated 3

  4. Slide 4: First quarter net earnings per diluted share

    First quarter net earnings per diluted share 4

  5. Slide 5: First quarter adjusted earnings per diluted share

    First quarter adjusted earnings per diluted share* *Non-GAAP measure 5

  6. Slide 6: Consolidated Financial Position Results

    Consolidated Financial Position Results (as of March 31,2022) Aflac Incorporated 1Q22 Δ yoy Adjusted EPS ex-FX* (diluted) $1.48 (3.3)% Book Value / share $45.75 (3.0)% Adjusted Book Value including foreign currency $37.08 6.9% translation gains (losses) per common share* ROE 13.2% (260) bps Adjusted

  7. Slide 7: First quarter benefit ratio for Aflac Japan

    First quarter benefit ratio for Aflac Japan 7

  8. Slide 8: First quarter third sector benefit ratio for Aflac Japan

    First quarter third sector benefit ratio for Aflac Japan 8

  9. Slide 9: First quarter premium persistency for Aflac Japan

    First quarter premium persistency for Aflac Japan 9

  10. Slide 10: First quarter total adjusted expense ratio for Aflac Japan

    First quarter total adjusted expense ratio for Aflac Japan 10

  11. Slide 11: First quarter pretax profit margin for Aflac Japan

    First quarter pretax profit margin for Aflac Japan 11

  12. Slide 12: Pretax profit margin for Aflac Japan (bps)

    First quarter pretax profit margin for Aflac Japan bps 12

  13. Slide 13: First quarter premium persistency for Aflac U.S.

    First quarter premium persistency for Aflac U.S. 13

  14. Slide 14: First quarter benefit ratio for Aflac U.S.

    First quarter benefit ratio for Aflac U.S. 14

  15. Slide 15: First quarter total adjusted expense ratio for Aflac U.S.

    First quarter total adjusted expense ratio for Aflac U.S. 15

  16. Slide 16: First quarter pretax profit margin for Aflac U.S.

    First quarter pretax profit margin for Aflac U.S. 16

  17. Slide 17: Strong capital position at the end of Q1

    Strong capital position at the end of Q1 Combined RBC SMR >600% >900% 17

  18. Slide 18: Lowering Enterprise Exposure to Currency

    Lowering Enterprise Exposure to Currency Economic Hedge: Protecting current and future distributions of Japan’s economic value Hedging Real Economic Events • Cash flows from the foreign subsidiary, Aflac Life Insurance Japan, to the holding company • Future expected cash flows on a present value bas

  19. Slide 19: Share repurchase

    First quarter share repurchase million 19

  20. Slide 20: Dividends

    First quarter dividends million 20

  21. Slide 21: Aflac Incorporated

    Afi#'ac. Incorporated

  22. Slide 22: Appendix

    Appendix 22

  23. Slide 23: Glossary of Non-U.S. GAAP Measures

    Glossary of Non-U.S. GAAP Measures The Company defines these non-U.S. GAAP financial measures as follows: • Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted ave

  24. Slide 24: Reconciliation of Net Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share

    Reconciliation of Net Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share Three Months Ended March 31 2022 2021 % Change Net earnings per diluted share $ 1.58 $1.87 (15.5)% Items impacting net earnings: Adjusted net investment (gains) losses (0.21) 0.32 Other and non-recurring (income)

  25. Slide 25: Reconciliation of Net Earnings to Adjusted Earnings

    Reconciliation of Net Earnings Adjusted Earnings1 Three Months Ended March 31 in millions of Dollars 2021 2020 % Change Net earnings $ 1,032 $ 1,293 (20.2)% Items impacting net earnings: Adjusted net investment (gains) losses (134) (304) Other and non-recurring (income) loss 1 6 Income tax (benefit)

  26. Slide 26: Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE

    Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE1 Three Months Ended March 31 in millions of Dollars 2022 2021 U.S. GAAP ROE – Net earnings2 13.2% 15.8% Impact of excluding unrealized foreign currency translation gains (losses) (1.1) (0.9) Impact of excluding unrealized gains (losses) on

  27. Slide 27: Reconciliation of U.S. GAAP Book Value per Share

    Reconciliation of U.S. GAAP Book Value per Share1 Three Months Ended March 31 in millions of Dollars 2022 2021 % Change U.S. GAAP book value per common share $45.75 $47.16 (3.0)% Less: Unrealized foreign currency translation gains (losses) per common share (3.85) (2.46) Unrealized gains (losses) on

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