Slide 1: Aflac Incorporated
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
Slide 3: Max K. Brodén, Executive Vice President, CFO
Max K. Brodén Executive Vice President CFO, Aflac Incorporated
Slide 4: Third quarter net earnings per diluted share
Third quarter net earnings per diluted share $2.64
Slide 5: Third quarter adjusted earnings per diluted share
Third quarter adjusted earnings per diluted share* $1.84 *Non-GAAP measure
Slide 6: ROE, Adj. ROE, Adj. ROE ex-FX
ROE 29.1% Adj. ROE* 15.6% Adj. ROE ex-FX* 16.1% *Non-GAAP measure
Slide 7: Third quarter benefit ratio for Aflac Japan
Third quarter benefit ratio for Aflac Japan 65.1%
Slide 8: Third quarter third sector benefit ratio for Aflac Japan
Third quarter third sector benefit ratio for Aflac Japan 54.8%
Slide 9: Third quarter premium persistency for Aflac Japan
Third quarter premium persistency for Aflac Japan 93.5%
Slide 10: Third quarter total adjusted expense ratio for Aflac Japan
Third quarter total adjusted expense ratio for Aflac Japan 19.0%
Slide 11: Third quarter pretax profit margin for Aflac Japan
Third quarter pretax profit margin for Aflac Japan 32.8%
Slide 12: Third quarter premium persistency for Aflac U.S.
Third quarter premium persistency for Aflac U.S. 78.7%
Slide 13: Third quarter benefit ratio for Aflac U.S.
Third quarter benefit ratio for Aflac U.S. 35.9%
Slide 14: Third quarter total adjusted expense ratio for Aflac U.S.
Third quarter total adjusted expense ratio for Aflac U.S. 40.6%
Slide 15: Third quarter pretax profit margin for Aflac U.S.
Third quarter pretax profit margin for Aflac U.S. 28.8%
Slide 16: Strong capital position at the end of Q3
Strong capital position at the end of Q3 Combined SMR RBC >1,000% >650%
Slide 17: Third quarter pretax leverage
Third quarter pretax Leverage* 18.8% *Adjusted debt to adjusted capitalization ex-AOCI, these are non-GAAP measures.
Slide 18: $700 million share repurchase
Third quarter share repurchase $700 million
Slide 19: $248 million dividends
Third quarter dividends $248 million
Slide 20: Slide 20
Slide 21: Appendix
Appendix
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
Slide 23: 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: • Aflac Japan’s Underlying net earned premium is a measure that adjusts Aflac Japan’s net earned premiums under U.S. GAAP for significant variables including the increase in paid-up pol
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 September 30 2023 2022 %Change Net Earnings per diluted share $2.64 $2.82 (6.4)% Items impacting net earnings Adjusted net investment (gains) losses (0.85) (0.35) Other and non-recurring (incom
Slide 25: Reconciliation of Net Earnings to Adjusted Earnings
1 Reconciliation of Net Earnings to Adjusted Earnings Three Months Ended September 30, in millions of Dollars 2023 2022 %Change Net Earnings $1,569 $1,781 (11.9)% Items impacting net earnings Adjusted net investment (gains) losses (504) (222) Other and non-recurring (income) loss (3) (1) Income tax
Slide 26: 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 September 30, in millions of Dollars 2023 2022 U.S. GAAP ROE - Net earnings2 29.1% 36.1% Impact of excluding unrealized foreign currency translation gains (losses) (4.5) (5.1) Impact of excluding unrealized gains (loss
Slide 27: Reconciliation of U.S. GAAP Book Value per Share
1 Reconciliation of U.S. GAAP Book Value per Share Three Months Ended September 30, in millions of Dollars 2023 2022 %Change U.S. GAAP book value per common share $38.63 $31.97 20.8% Less: Unrealized foreign currency translation gains (losses) per common share (7.64) (7.01) Unrealized gains (losses)
Slide 28: Adjusted Leverage Ratios
Adjusted Leverage Ratios (In millions) 2023 2022 Notes Payable $6,961 $7,518 50% of subordinated debentures and perpetual bonds (299) (309) Pre-funding of debt maturities — (448) Adjusted debt1 6,663 6,762 Total Shareholders’ Equity 22,669 19,946 Accumulated other comprehensive (income)loss: Unreali
Slide 29: Aflac Japan’s Underlying Net Earned Premium
Aflac Japan’s Underlying Net Earned Premium Three Months Ended September 30, in millions of Yen 2023 2022 %Change Aflac Japan’s Net Earned Premium - as reported ¥285,305 ¥293,667 (2.8)% Estimated impacts of quarterly significiant variables: Increase in paid-up policies 8,300 Impact of reinsurance 7,