Aflac Incorporated · NYSE:AFL

Aflac — Q1 2023 Earnings Presentation

26 slides from Aflac's earnings presentation, Apr 27, 2023

  1. Slide 1: Aflac Incorporated

  2. Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures

    Forward-Looking Statements and Non-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 meani

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

    Max K. Brodén Executive Vice President CFO, Aflac Incorporated

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

    First quarter net earnings per diluted share $1.94

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

    First quarter adjusted earnings per diluted share* $1.55 *Non-GAAP measure

  6. Slide 6: ROE, Adj. ROE and Adj. ROE ex-FX

    ROE 23.8% Adj. ROE* 14.2% Adj. ROE ex-FX* 14.8% *Non-GAAP measure

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

    First quarter benefit ratio for Aflac Japan 67.0%

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

    First quarter third sector benefit ratio for Aflac Japan 57.7%

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

    First quarter premium persistency for Aflac Japan 93.9%

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

    First quarter total adjusted expense ratio for Aflac Japan 19.7%

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

    First quarter pretax profit margin for Aflac Japan 28.2%

  12. Slide 12: First quarter premium persistency for Aflac U.S.

    First quarter premium persistency for Aflac U.S. 77.9%

  13. Slide 13: First quarter benefit ratio for Aflac U.S.

    First quarter benefit ratio for Aflac U.S. 45.6%

  14. Slide 14: First quarter total adjusted expense ratio for Aflac U.S.

    First quarter total adjusted expense ratio for Aflac U.S. 39.6%

  15. Slide 15: First quarter pretax profit margin for Aflac U.S.

    First quarter pretax profit margin for Aflac U.S. 21.2%

  16. Slide 16: Strong capital position at the end of Q1

    Strong capital position at the end of Q1 Combined SMR RBC >850% >600%

  17. Slide 17: First quarter pretax leverage

    First quarter pretax Leverage* 20.5% *Adjusted debt to adjusted capitalization ex-AOCI

  18. Slide 18: $700 million share repurchase

    First quarter share repurchase $700million

  19. Slide 19: $257 million dividends

    First quarter dividends $257millon

  20. Slide 20: Slide 20

  21. Slide 21: Appendix

    Appendix

  22. Slide 22: 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

  23. Slide 23: 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 2023 2022 %Change Net Earnings per diluted share $1.94 $1.60 21.3% Items impacting net earnings Adjusted net investment (gains) losses (0.34) (0.21) Other and non-recurring (income) lo

  24. Slide 24: Reconciliation of Net Earnings to Adjusted Earnings

    1 Reconciliation of Net Earnings to Adjusted Earnings Three Months Ended March 31, in millions of Dollars 2023 2022 %Change Net Earnings $1,188 $1,047 13.5% Items impacting net earnings Adjusted net investment (gains) losses (209) (134) Other and non-recurring (income) loss — — Income tax (benefit)

  25. Slide 25: Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE

    1 Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE Three Months Ended March 31, in millions of Dollars 2023 2022 U.S. GAAP ROE - Net earnings2 23.8% 24.2% Impact of excluding unrealized foreign currency translation gains (losses) (3.2) (2.1) Impact of excluding unrealized gains (losses)

  26. Slide 26: Reconciliation of U.S. GAAP Book Value per Share

    1 Reconciliation of U.S. GAAP Book Value per Share Three Months Ended March 31, in millions of Dollars 2023 2022 %Change U.S. GAAP book value per common share $32.65 $27.21 20.0% Less: Unrealized foreign currency translation gains (losses) per common share (5.97) (3.78) Unrealized gains (losses) on

Aflac — Q1 2023 Earnings Presentation on 6ix