Aflac Incorporated · NYSE:AFL

Aflac — Q1 2025 Earnings Presentation

20 slides from Aflac's earnings presentation, May 1, 2025

  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, Senior Executive Vice President, CFO

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

  4. Slide 4: ROE View

    ROE View 33.0 16.2 15.6 13.7 12.7 0.4 1Q24 1Q25 ROE (%) Adjusted ROE* (%) Adjusted ROE ex Foreign Currency Remeasurement* (%) *Non-GAAP financial measure. See appendix for information about this measure. 4

  5. Slide 5: Aflac Japan Maintains Solid Persistency

    Aflac Japan Maintains Solid Persistency 93.4% 93.3% 93.3% 93.4% 93.8% 1Q24 2Q24 3Q24 4Q24 1Q25 * *Premium persistency presented on a 12-month rolling basis for all periods, rather than year to date. Beginning January 2025, the Company implemented a new methodology of calculating persistency rate whi

  6. Slide 6: Aflac Japan 1Q25 Operating Ratios

    Aflac Japan 1Q25: Benefit Ratio % Expense Ratio % Pretax Profit Margin % 66 23 33 65.8% 2025 Outlook Ranges 31.8% YTD Actual Operating Ratios 64 20 30 19.6% 6

  7. Slide 7: Aflac U.S. Maintains Solid Persistency

    Aflac U.S. Maintains Solid Persistency 79.3% 79.3% 78.7% 78.7% 78.9% 1Q24 2Q24 3Q24 4Q24 1Q25 7

  8. Slide 8: Aflac U.S. 1Q25 Operating Ratios

    Aflac U.S. 1Q25: Benefit Ratio % Expense Ratio % Pretax Profit Ratio % 20.8% 52 39 20 2025 Outlook Ranges YTD Actual 37.6% Operating Ratios 48 36 17 47.7% 8

  9. Slide 9: Continued Tactical Capital Deployment

    Continued Tactical Capital Deployment Dividends and Share Repurchase ($ millions) 900 750 800 750 500 288 283 280 277 317 1Q24 2Q24 3Q24 4Q24 1Q25 Dividends Repurchase 9

  10. Slide 10: Strong Capital Ratios

    1 Strong Capital Ratios As of March 31, 2025 Japan U.S. >600% >250% 450 230 350 170 ESRe1 Combined RBC Ratioe2 (Japan) (U.S.) 1 Estimated regulatory ESR with undertaking-specific parameter (USP), sensitivities produced by internal model result in a slightly more conservative outcome, i.e., a greater

  11. Slide 11: Adjusted Leverage Ratio

    Adjusted Leverage Ratio*: In the range of 20-25% 21.0% 20.7% 20.4% 19.7% 19.5% 19.7% 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 *Adjusted Leverage ratio is computed as: Adjusted debt to Adjusted capitalization ex-AOCI. See appendix for information about this measure. 11

  12. Slide 12: Aflac Incorporated

    Afi#ac. Incorporated

  13. Slide 13: Appendix

    Appendix

  14. Slide 14: 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

  15. Slide 15: Glossary of Non-U.S. GAAP Measures (cont'd)

    Glossary of Non-U.S. GAAP Measures (cont’d) The Company defines these non-U.S. GAAP financial measures as follows: • Adjusted debt is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding 50% of subordinated debentures and perpetual bonds and all pre-funding of debt maturit

  16. Slide 16: 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 2025 2024 %Change Net Earnings per diluted share $0.05 $3.25 (98.5)% Items impacting net earnings Adjusted net investment (gains) losses 1.69 (1.75) Other and non-recurring (income) lo

  17. Slide 17: Reconciliation of Net Earnings to Adjusted Earnings

    1 Reconciliation of Net Earnings to Adjusted Earnings Three Months Ended March 31, in millions of Dollars 2025 2024 %Change Net Earnings $29 $1,879 (98.5)% Items impacting net earnings Adjusted net investment (gains) losses 924 (1,009) Other and non-recurring (income) loss 53 2 Income tax (benefit)

  18. Slide 18: Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE

    Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE Three Months Ended March 31, in millions of Dollars 2025 2024 U.S. GAAP ROE - Net earnings1 0.4% 33.0% Impact of excluding unrealized foreign currency translation gains (losses) — (5.1) Impact of excluding unrealized gains (losses) on secu

  19. Slide 19: Reconciliation of U.S. GAAP Book Value per Share

    Reconciliation of U.S. GAAP Book Value per Share At March 31, in millions of Dollars 2025 2024 %Change U.S. GAAP book value per common share $48.55 $41.27 17.6% Less: Unrealized foreign currency translation gains (losses) per common share (8.39) (8.18) Unrealized gains (losses) on securities and der

  20. Slide 20: Adjusted Leverage Ratios

    Adjusted Leverage Ratios At March 31,In millions of Dollars 2025 2024 Notes Payable $7,751 $7,912 50% of subordinated debentures and perpetual bonds (299) (295) Pre-funding of debt maturities — (198) Adjusted debt1 7,453 7,420 Total Shareholders’ Equity 26,338 23,537 Accumulated other comprehensive

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