Aflac Incorporated · NYSE:AFL
Aflac — Investor Day (November 2020)
84 slides from Aflac's investor day presentation, Nov 19, 2020
Slide 1: Aflac Financial Analysts Briefing
Aflac Financial Analysts Briefing November 19, 2020
Slide 2: Welcome and Introduction
Welcome and Introduction David Young Vice President, Investor and Rating Agency Relations Financial Analysts Briefing│November 19, 2020
Slide 3: Agenda
Agenda David Young 8:00 Welcome and Introduction Vice President, Investor and Rating Agency Relations; Aflac Incorporated Daniel P. Amos Strategic Overview Chairman and CEO, Aflac Incorporated Frederick J. Crawford Strategic Execution President & COO, Aflac Incorporated Koji Ariyoshi Masatoshi Koide
Slide 4: 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 5: Strategic Overview
Strategic Overview Daniel P. Amos Chairman and CEO, Aflac Incorporated Financial Analysts Briefing│November 19, 2020
Slide 6: Human Capital Management
Human Capital Management Critical Component of Success • Focused with the Board on succession planning and bench strength • Building teams – the right people in the right places at the right time • Driving diversity and inclusion and The Aflac Way • A fair and equitable approach to managing our work
Slide 7: Growing the Company and the Dividend
Growing the Company and the Dividend $1.40 Annual Cash Dividend per Share $1.32 1 $1.20 Nearly 18% increase in the quarterly dividend payable in 1Q21 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 1983 1988 1993 1998 2003 2008 2013 2018 2021e 1Annualized first quarter dividend 7
Slide 8: Responding to the Pandemic – The Aflac Way
Responding to the Pandemic – The Aflac Way • Working from home – guided by safety and science • Enhanced benefits for employees and policyholders • Zero-interest loans for agents in the U.S. and more exclusive agencies in Japan • $10 million+ in support of front-line efforts in the U.S. and Japan •
Slide 9: Responding to the Growing Need for Aflac's Products
Responding to the Growing Need for Aflac’s Products The leading company for creating “living in your own way” Vision 2025 “a world where people are better prepared for unexpected health expenses” Balancing growth with an eye toward reducing expenses and staying true to our core 9
Slide 10: Financial Focus
Financial Focus • High-quality, diversified portfolio • Strong capital and liquidity • Tactical capital deployment • Reduce expenses in the long run • Stay true to our core • Continue to do the right thing – The Aflac Way Be there for our policyholders when they need us most 10
Slide 11: Strategic Execution
Strategic Execution Frederick J. Crawford President & COO, Aflac Incorporated Financial Analysts Briefing │November 19, 2020
Slide 12: 2020 Strategic Planning
2020 Strategic Planning 1 Leadership – Defend and further develop a leadership position in core markets 2 Leverage – Invest in opportunities that take advantage of core franchise strengths Aflac 3 Technology – Accelerate the digitization and automation of our enterprise Enterprise Strategic Planning
Slide 13: Execution Across Three Horizons
Execution Across Three Horizons Navigating a Global Pandemic Horizon One • Secure franchise, financial position, workforce alignment (18 months) • Pivot to virtual distribution and accelerate digital roadmap • Business model readiness for recovery in 2021 and 2022 Building - Growth & Automation Hori
Slide 14: Medium-term Growth & Efficiency Targets
Medium-term Growth & Efficiency Targets When can we expect realization of investments in growth and efficiency? Japan U.S. Stability Growth Growth: Japan 5-year glide-path targeting 2025… Growth: U.S. 5-year glide-path targeting 2025… • Annual sales in the ¥80 to ¥90 billion range1 • Annual sales ex
Slide 15: Aflac Pet: Powered By Trupanion
Aflac Pet: Powered By Trupanion Alliance to sell Aflac-branded pet insurance in the U.S. worksite and explore opportunities in Japan Brand & Distribution Product & Service A phased approach to distribute Product underwriting, administration Aflac-branded product and customer service Broker, Agent, D
Slide 16: Global Ventures & International Investment Incubation
Global Ventures & International As of 3Q20 Total Fund Investment Investment Focused on emerging and 30% innovative companies with External Fund $67.8 40% Additional Committed 57% $171.4 relevance to Aflac’s million Direct Investment $103.6 60% business model Remaining funds 13% Incubation Pursue dig
Slide 17: ESG: The Aflac Way
ESG: The Aflac Way We continue to enhance both our actions and disclosures pertaining to relevant environmental, social and governance initiatives Diversity & Inclusion 64% of Aflac’s Board of Directors are female or minorities In the U.S., 48% of employees are minorities Aflac Global Investments Su
Slide 18: Aflac Japan Strategic Overview and Outlook
Aflac Japan Strategic Overview and Outlook Masatoshi Koide President and Representative Director, Aflac Life Insurance Japan Financial Analysts Briefing │November 19, 2020 「生きる」を創る。
Slide 19: Market Dynamics and Increasing Awareness Support Growth
Market Dynamics and Increasing Awareness Support Growth Market dynamics support expansion of the COVID-19 has significantly heightened third sector market: awareness of financial and health care burdens • The public continues to Aging population Macroeconomic focus on financial security and protecti
Slide 20: Japan's Growing Third Sector
Japan’s Growing Third Sector Stand-alone Cancer and Medical Policies Policies in Millions 70 Market more than doubled in 15 years 65 60 55 50 45 40 35 30 25 20 15 10 5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 As of March 31 20 Source: Life Insu
Slide 21: Increasing Cancer Insurance Market Penetration
Increasing Cancer Insurance Market Penetration Product Penetration, Individual Basis 100% 81.0 82.1 79.9 79.2 81.5 77.7 77.9 80 72.3 74.0 72.1 73.1 73.0 71.3 60 69.3 42.6 37.3 37.8 40 33.1 31.2 25.3 21.2 20 0 2001 2004 2007 2010 2013 2016 2019 Life insurance1 Medical insurance Cancer insurance Sourc
Slide 22: Medium-term Management Strategy
Medium-term Management Strategy 2020-2022 Four Strategies The leading company for creating “living in your own way” Leveraging digital innovation Enhancing flexible and agile operations under the governance framework Reforming fundamentally the company’s human capital management system Implementing
Slide 23: Providing Coverage for Customers' Different Life Stages
Providing Coverage for Customers’ Different Life Stages Coverage at Different Life Stages Post-retirement Life Coverage Income Support Coverage Nursing Care/ Dementia Care Coverage Death Coverage Post-mortem Expense Coverage Medical Insurance Cancer Insurance 20s 30s 50s 100 Life Stage of Customers
Slide 24: Channel Optimization
Channel Optimization Type Direction for change More Exclusive •Enhance capabilities by leveraging artificial Agencies intelligence and digitization • Japan Post Company Partners • Japan Post Insurance •Implement digital transformation Channel • Dai-ichi Life • Daido Life •Collaborate in protection a
Slide 25: Promoting Growth and Innovation
Promoting Growth and Innovation Three Incubation Entities Formed in 2020 Incubation Entities Aflac Life Insurance Japan Ltd. Small-amount Core insurance short-term Health care Data business insurance Supports Venture capital* open innovation Insurance ID More than 15 （Aflac Life Insurance Common ID
Slide 26: Productivity in the New Normal
Productivity in the New Normal Remote work Virtual sales using digital tools Online application Online application procedure Sales person Customer Paperless operations Paper 26
Slide 27: Digital Transformation (DX) Strategies
Digital Transformation (DX) Strategies Creating Value and “Creating Living in Your Own Way” Core business areas New business area Value Creation Evolution of customer Automation of system FinTech / Data Building experience development InsurTech usage an ecosystem through UI / UX process Platform Enh
Slide 28: Aflac Japan Growth Strategy
Aflac Japan Growth Strategy Koji Ariyoshi Director; Executive Vice President; Director of Sales and Marketing, Aflac Life Insurance Japan Financial Analysts Briefing │November 19, 2020 「生きる」を創る。
Slide 29: Aflac Japan's Focused Business Response to COVID-19
Aflac Japan’s Focused Business Response to COVID-19 Continuing agency sales activities through digitalization Virtual sales meetings and training using Microsoft Teams and other digital tools Diverse communication tools 29
Slide 30: Business Recovery From COVID-19
Business Recovery From COVID-19 Proposals and Visitors to Aflac Exclusive Shops1 Agency Cancer Insurance Sales Show Signs of Recovery Turned Positive in 3Q20 120% 3.0% 5.0% 100% 0.0% -5.0% 80% -5.6% -10.0% 60% -15.0% 40% -20.0% -25.0% 20% -30.0% 0% -35.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct -40.
Slide 31: Future Initiatives
Future Initiatives Product strategy • Gain market share in competitive medical insurance market by offering a competitive new medical insurance Launch of • Realize reasonable premiums while preparing for broad coverage by enhancing EVER Prime basic hospital / surgery / outpatient coverage, as well a
Slide 32: Future Initiatives
Future Initiatives Channel strategy • Provide management support to agencies that are motivated to grow and expand their business Agency • Provide recruiting and training support to large, exclusive agencies to improve their productivity • Re-engage inactive policyholders through business collaborat
Slide 33: Future Initiatives
Future Initiatives Major DX-Related Initiatives Utilization of online • In addition to online consultation, develop complete online policy application consultation and policy before competitors, allowing Aflac Japan to respond to increasingly diverse application functions lifestyles Expansion of onl
Slide 34: Q&A
Q&A Afiac. Incorporated
Slide 35: Aflac U.S.
Aflac U.S. Teresa L. White President, Aflac U.S. Financial Analysts Briefing │November 19, 2020
Slide 36: U.S. Market Trends: Implications
U.S. Market Trends: Implications COVID-19 has significantly impacted or magnified customer values, lifestyles as well as the economy • Consumers believe • 2X jobless claims than previous crises that insurance is Economy1 • 100K+ small businesses closed more important now • 48% of Americans don’t hav
Slide 37: Aflac U.S. Targeted Key Areas for Investment
Aflac U.S. has targeted key areas for investment Where to Play How to Win Value Proposition • Innovative products Customers • Aflac promise: pay Existing employers New employers Workers claims promptly and Increase penetration in With focus on increasing Working Americans fairly existing small and l
Slide 38: One Digital Aflac
One Digital Aflac Vision: Digital Makes it Easier… • For Customers to buy from Aflac • For the Distribution team to sell Aflac • For Employees to work at Aflac • For the Aflac Promise to be fulfilled Strategy: • Use technology to make things easier • Prioritize from the customer lens back • Create a
Slide 39: Aflac U.S. 2025 Strategy
Aflac U.S. has set the direction for its 2025 Strategy Vision A world where people are better prepared for unexpected health expenses By 2025: Targets • New Sales: > $1.8 billion • Persistency: 79-80% Large case: Accelerate with an integrated platform and go-to-market strategy for group benefits Sma
Slide 40: Optimization extends to our brand
Our plans to focus on optimization extend to our brand… We will build knowledge with our distribution and multiply this impact by connecting with employers, leading to more access to employees at the worksite...demonstrating value to the customer to increase participation and persistency Expanding w
Slide 41: U.S. Growth Update
U.S. Growth Update Richard L. Williams Jr. Executive Vice President; President of Group Benefits Division Financial Analysts Briefing │November 19, 2020
Slide 42: Tremendous growth opportunity in the U.S. market
There is tremendous growth opportunity in the U.S. market U.S. Working Population: 177 million Private Sector 128.5 million Self-employed Public Sector Small Employers Large Employers Medium Employers 25.7 million 22.4 million (1-99) (100-999) (1,000+) 42.4 million 25.1 million 61.0 million Penetrat
Slide 43: Distinct Market Focus
Distinct Market Focus Large Small Consumer markets Expand customized True Increase access by expanding Offer products consumers Group products sold at product offering sold at want to digitally savvy worksites with 1,000+ worksites with 3-99 employees, consumers who prefer to shop employees and furt
Slide 44: Expanding value proposition and focusing distribution
We are expanding our value proposition and focusing distribution Aflac Dental Aflac Group Consumer and Vision Benefits Markets • Support small case sales • Focus on large case market • Consumers who don’t have access at the worksite • Further penetrate accounts and • Further penetrate accounts and b
Slide 45: Aflac Dental and Vision national launch in 2021
2020 has been a measured planning year for Aflac Dental and Vision in preparation for a national launch in 2021 Go-to-Market Strategy Expected Results 2020 Accomplishments Simplified offering through Grow producers Launched in 10 states agents to small businesses Accelerate small business 49 state p
Slide 46: Integrating Group Life, Disability, and Absence Management
We are actively integrating the Group Life, Disability, and Absence Management business within our broader group benefits division Go-to-Market Strategy Expected Results Large-case specialists Accelerate large business operating in the 1,000+ growth segment Deepen broker network access Customized pr
Slide 47: Digital Consumer Markets platform build year
2020 has been a successful build year for our digital Consumer Markets platform in preparation of national launch in 2021 Go-to-Market Strategy Expected Results Direct to consumer Access new markets Aflac brand Increase penetration Digital platform $150 to $250 million in annual revenue by 2025 Alli
Slide 48: Break
Break Afiac. Incorporated
Slide 49: Aflac Global Investments
Aflac Global Investments Eric M. Kirsch Executive Vice President and Global CIO; President, Aflac Global Investments Financial Analysts Briefing │November 19, 2020
Slide 50: 2020 Investment Themes
2020 Investment Themes Declining Rates Credit Spreads % 30yr JGB 10yr UST 3M LIBOR bps U.S. Credit Single A U.S. Credit BBB Ba U.S. High Yield 3.50 1,000 3.00 800 2.50 600 2.00 1.50 400 1.00 200 0.50 0 0.00 Jan-16 Sep-16 May-17 Jan-18 Sep-18 May-19 Jan-20 Sep-20 Jan-16 Oct-16 Jul-17 Apr-18 Jan-19 Oc
Slide 51: Resilient Global Portfolio - Consolidated
Resilient Global Portfolio - Consolidated As of 3Q20 Asset Allocation Quality Sector and Industry Diversification Gov’t & Agn. 44.2% Banks / Fin. Inst. 8.3% BBB Public Util. 6.2% USD Fixed 24% Cons. Non-Cyc. 5.5% 29% Energy 4.0% JGBs Comm. 3.2% Transport. 3.1% 43% A- Basic Industry 2.7% $126 billion
Slide 52: Global Portfolio Stress Test Update
Global Portfolio Stress Test Update Updated base case for potential losses is $400 million, ~40% reduction from our 1Q20 stress test 3Q Updated Stress Test Stress Test Highlights • Portfolio performed well, with losses coming in well below stress Vulnerable Estimated Losses test estimates Vulnerable
Slide 53: Hedging Strategies
Hedging Strategies As of 3Q20 Aflac Japan: Three-Pronged FX Hedging Program Aflac Japan and U.S.: Interest Rate Hedging Groups 1 Short Hedges 2 Long Hedges 3 Unhedged Implied at Execution (1.66%) YTD Realized (0.70%) Current Implied (0.16%) Assets $8.3 billion $1.0 billion $22.3 billion LIBOR Asset
Slide 54: MML Portfolio Benefits from Disciplined Underwriting
MML Portfolio Benefits from Disciplined Underwriting Well diversified, 100% first lien, low leverage portfolio Middle Market Loan (MML) Portfolio Statistics As of 3Q20 Sector Diversification Amortized Cost Net of Reserves $3.5 billion Healthcare 18% Unique Issuers 304 Technology 12% Average Loan Com
Slide 55: Commercial Real Estate Portfolio is Well Diversified
Commercial Real Estate Portfolio is Well Diversified Conservative underwriting discipline Portfolio Statistics Transitional Commercial Commercial Real Estate Property Type (as of 3Q20) Real Estate Mortgages Amortized Cost Net of Reserves $5.6 billion $1.7 billion % of CRE Portfolio % of CRE Portfoli
Slide 56: Alternatives Portfolio Growing
Alternatives Portfolio Growing Alternatives Portfolio Build Private Equity Investing Cycle $ millions Cumulative Program Commit1 Cumulative Paid-in Capital • Deliberate commitment pacing 2,125 1,825 • Program continues to grow given early stage of 1,250 development 900 6882 513 352 • 3 to 7 year ave
Slide 57: ESG Integration
ESG Integration • Global Investments’ ESG Stewardship of Aflac’s Policyholder Funds: Investing to achieve core ESG investment pillars • Responsible Investing: Objective of generating positive environmental and social benefits, while meeting our investment return targets o Credit process assigns a pr
Slide 58: Aflac Global Investments Strategic Plan
Aflac Global Investments Strategic Plan Enhance portfolio return and expand investment Long-term Strategic Objective 1 opportunities in low yield environment Our strategy is to identify and invest in specialized asset managers that: • Consider portfolio fit including SAA, capital efficiency, and ris
Slide 59: Financial Focus & Outlook
Financial Focus & Outlook Max K. Brodén Executive Vice President; CFO, Aflac Incorporated Financial Analysts Briefing │November 19, 2020
Slide 60: Aflac Japan Strength in Core Margins
Aflac Japan Strength in Core Margins 2019 9M 2020 2020e – 2022e Benefit Ratio1 69.5% 70.2% 68.5 71.0% 2021 Estimated Range Expense Ratio2 20.7% 20.6% 20.5 22.5% Pretax Profit Margin 21.3% 21.3% 20.5 22.5% Revenue CAGR (-2.0 to -3.0%) Benefit ratio reflects • Near-term uptick as fewer policyholders c
Slide 61: Aflac U.S. Margins Reflect Growth Investments
Aflac U.S. Margins Reflect Growth Investments 2019 9M 2020 2020e – 2022e Benefit Ratio1 49.4% 46.9% 48.0 51.0% Expense Ratio2 36.7% 37.0% 38.0 41.0% 2021 Estimated Range Pretax Profit Margin 19.4% 21.9% 16.0 19.0% Revenue CAGR (-1.0 to +1.5%) Benefit ratio reflects: • Favorable claims experience in
Slide 62: Strong Capital and FSA Earnings
Strong Capital and FSA Earnings Aflac Japan Solvency Margin Ratio Economic Solvency Ratio (Fiscal year ending March 31, unless otherwise noted, %) (Fiscal year ending March 31, unless otherwise noted, %) 1,200 250 1030 200 85 961 73 84 800 881 954 150 86 Points from UFR 100 ESR 400 Regulatory 152 13
Slide 63: Strong Capital and Statutory Earnings
Strong Capital and Statutory Earnings1 Aflac U.S. Aflac Risk-Based Capital Ratio U.S. Statutory Earnings Projection (Fiscal year ending December 31, %) (Fiscal year ending December 31, $ in millions) 900 1,000 800 900 831 700 800 864 700 791 600 500 600 560 539 616 500 400 400 300 300 200 200 100 10
Slide 64: Value Creation
Value Creation1 as of September 30, 2020 18% AROE COE $2,000 $25,000 $20,000 $1,500 Value Created ($mm) 14 Equity ex-AOCI ($mm) $15,000 $1,000 $10,000 10 $500 $5,000 Value Created 6 $0 $0 Equity ex- 2015 2016 2017 2018 2019 9M20 2015 2016 2017 2018 2019 9M20 AOCI • Stable differential between adjust
Slide 65: Capital Deployment Under Stable Conditions
Capital Deployment Under Stable Conditions Tactical Deployment 2020-2022e Deployment ($ billions) ~$8 - $9 billion $ 3.0 2.0 Dividends Repurchase 1.0 Opportunistic 0.0 2017 2018 2019 2020e Considerations • Expected deployment of $2.9 – 3.4 billion in 2021 • Expected run-rate annualized insurance sub
Slide 66: Financial Overview
Financial Overview Strategic Outlook • Margins – near-term margins compressed by investments in growth and efficiency • Growth – revenue and earnings turn the corner in the 2023-2025 timeframe • Capital Deployment – tactical repurchase supports stability in earnings per share • Value – growth in eco
Slide 67: Q&A
Q&A Afiac. Incorporated
Slide 68: Speakers and Panelists
Speakers and Panelists Afiac. Incorporated
Slide 69: Speakers
Speakers Dan Amos joined Aflac as a sales associate while in his teens. He served as state manager of Aflac’s Alabama/ West Florida Territory for 10 years. Under his leadership, his sales territory was the number-one-producing area in 1981 and 1982. He was elected president of Aflac in 1983 and chie
Slide 70: Speakers
Speakers Masatoshi Koide originally joined Aflac in November 1998 and stayed with Aflac until March 2006. He worked for Nikko Asset Management before he joined Aflac again in December 2008 as vice president. He was promoted to senior vice president in January 2012 and to first senior vice president
Slide 71: Speakers
Speakers Teresa White joined Aflac in 1998 as second vice president, Client Services; was promoted to vice president of Client Services in 2000; to senior vice president, director of Sales Support and Administration in October 2004; to deputy chief administrative officer in March 2007; and to execut
Slide 72: Speakers
Speakers Eric Kirsch joined Aflac in November 2011 and is executive vice president, global chief investment officer. He was named president of Aflac Global Investments, the asset management subsidiary of Aflac Incorporated, in January 2018 and is responsible for overseeing the company’s investment e
Slide 73: Speakers
Speakers David Young joined Aflac in 2005 as an investment consultant in the Investments Department, where he assumed primary responsibility for covering banks, financial companies and insurers. During the Financial Crisis, David helped the investment team navigate difficult markets and de-risk port
Slide 74: Panelists – Aflac Japan
Panelists –Aflac Japan Charles Lake joined Aflac International in February 1999 and Aflac Japan in June 1999. He became Aflac Japan deputy president in 2001, president in 2003, vice chairman in 2005, and chairman in 2008. In 2014, he also assumed the position of president, Aflac International. Befor
Slide 75: Panelists – Aflac U.S.
Panelists – Aflac U.S. Virgil Miller joined Aflac in 2004 in the Policy Service Department after working in leadership in the property and casualty industry. He was promoted to positions of increasing responsibility including second vice president of Client Services, Policy Service and the Customer
Slide 76: Panelists – Corporate
Panelists – Corporate June Howard joined Aflac in June 2009 as vice president and assumed the role of senior vice president and chief accounting officer in November 2010. June is responsible for financial reporting, investment accounting, corporate tax, corporate financial planning and analysis, acc
Slide 77: Panelist – Aflac Global Investments
Panelist – Aflac Global Investments Brad Dyslin joined Aflac in June 2012 as the managing director and global head of credit for Aflac Global Investments. He was promoted to senior managing director in 2016. He assumed the additional responsibilities as head of strategic investment opportunities and
Slide 78: Appendix
Appendix Afiac. Incorporated
Slide 79: Glossary of Non-U.S. GAAP Measures
Glossary of Non-U.S. GAAP Measures The company defines the non-U.S. GAAP financial measures as follows: • Adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside
Slide 80: Reconciliation of U.S. GAAP Net Earnings to Adjusted Earnings
Reconciliation of U.S. GAAP Net Earnings to Adjusted Earnings1 In Millions Per Diluted Share 2020 2020 (YTD (YTD September 2019 2018 2017 2016 September 2019 2018 2017 2016 30, 2020) 30, 2020) Net earnings $3,826 $3,304 $2,920 $4,604 $2,659 $5.31 $4.43 $3.77 $5.77 $3.21 Items impacting net earnings:
Slide 81: Reconciliation of U.S. GAAP ROE to Adjusted ROE
Reconciliation of U.S. GAAP Return on Equity (ROE) to Adjusted ROE1 2020 (YTD September 30, 2020) 2019 2018 2017 2016 U.S. GAAP ROE2 16.6 % 12.6 % 12.2 % 20.4 % 13.9 % Impact of excluding unrealized foreign currency translation gains (losses) (1.0)% (1.0)% (1.0)% (2.0)% (1.7)% Impact of excluding un
Slide 82: External Management Platform Overview
External Management Platform Overview • Access specialized asset classes to achieve SAA goals and objectives Objectives • Leverage best-in-class asset managers across broad range of asset classes • Enhance overall performance of global portfolio with diverse sources of NII Size and Composition of Ex
Slide 83: Aflac Japan Portfolio Asset Allocation
Aflac Japan Portfolio Asset Allocation Based on U.S. GAAP Book Value Portfolio Asset Allocation1 New Money Asset Allocation ¥593bn New Money 6% 8% 1% 8% 18% 1% 1% Growth Assets 18% Infra. Debt 1% 50% 49% 3Q 2019 3Q 2020 21% 5% High Yield 4% IG Corporates 2% 11% 70% $ 20% 20% CLOs (Floating) 43% TRE
Slide 84: Aflac U.S. Portfolio Asset Allocation
Aflac U.S. Portfolio Asset Allocation1 Based on U.S. GAAP Book Value Portfolio Asset Allocation2 New Money Asset Allocation $732mm New Money 8% 9% 6% 3% 7% 1% 5% 1% Growth Assets 3% 8% 1% 3% 7% CMLs 7% 3Q 2019 3Q 2020 Infra Debt 9% 30% High Yield 9% Floaters 76% 77% Municipals 12% Treasuries 3 4 5 6