Aflac Incorporated · NYSE:AFL

Aflac — Q2 2023 Earnings Presentation

26 slides from Aflac's earnings presentation, Aug 2, 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: Second quarter net earnings per diluted share

   Second quarter net earnings per diluted share $2.71

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

   Second quarter adjusted earnings per diluted share* $1.58 *Non-GAAP measure

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

   ROE 32.5% Adj. ROE* 13.9% Adj. ROE ex-FX* 14.3% *Non-GAAP measure

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

   Second quarter benefit ratio for Aflac Japan 65.7%

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

   Second quarter third sector benefit ratio for Aflac Japan 56.2%

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

   Second quarter premium persistency for Aflac Japan 93.8%

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

    Second quarter total adjusted expense ratio for Aflac Japan 19.5%

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

    Second quarter pretax profit margin for Aflac Japan 30.4%

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

    Second quarter premium persistency for Aflac U.S. 78.2%

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

    Second quarter benefit ratio for Aflac U.S. 45.3%

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

    Second quarter total adjusted expense ratio for Aflac U.S. 39.0%

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

    Second quarter pretax profit margin for Aflac U.S. 22.2%

16. Slide 16: Strong capital position at the end of Q2

    Strong capital position at the end of Q2 Combined SMR RBC ~900% >650%

17. Slide 17: Second quarter pretax leverage

    Second quarter pretax Leverage* 19.4% *Adjusted debt to adjusted capitalization ex-AOCI

18. Slide 18: $700 million share repurchase

    Second quarter share repurchase $700 million

19. Slide 19: $252 million dividends

    Second quarter dividends $252 million

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 June 30 2023 2022 %Change Net Earnings per diluted share $2.71 $2.17 24.9% Items impacting net earnings Adjusted net investment (gains) losses (1.08) (0.88) Other and non-recurring (income) los

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

    1 Reconciliation of Net Earnings to Adjusted Earnings Three Months Ended June 30, in millions of Dollars 2023 2022 %Change Net Earnings $1,634 $1,394 17.2% Items impacting net earnings Adjusted net investment (gains) losses (651) (567) Other and non-recurring (income) loss (35) — 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 June 30, in millions of Dollars 2023 2022 U.S. GAAP ROE - Net earnings2 32.5% 30.0% Impact of excluding unrealized foreign currency translation gains (losses) (4.7) (3.2) Impact of excluding unrealized gains (losses) o

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 June 30, in millions of Dollars 2023 2022 %Change U.S. GAAP book value per common share $34.30 $30.82 11.3% Less: Unrealized foreign currency translation gains (losses) per common share (7.13) (5.07) Unrealized gains (losses) on s

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