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: 2Q24 - Another Solid Quarter
2Q24 - Another Solid Quarter Net EPS (diluted) Adjusted EPS (diluted)* Adjusted EPS ex-FX* +14.4% +15.8% +19.6% $1.89 $1.83 $3.10 $2.71 $1.58 $1.58 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 *Non-GAAP financial measure. See appendix for information about this measure. 4
Slide 5: Strong ROE
Strong ROE 32.5% 28.3% 13.9% 14.3% 2Q23 2Q24 ROE (%) Adjusted ROE* (%) *Non-GAAP financial measure. See appendix for information about this measure. 5
Slide 6: Aflac Japan Maintains Solid Persistency
Aflac Japan Maintains Solid Persistency 93.8% 93.5% 93.4% 93.4% 93.3 2Q23 3Q23 4Q23 1Q24 2Q24 6
Slide 7: Aflac Japan 2Q24
Aflac Japan 2Q24: Favorable experience, good expense control and strong margin Benefit Ratio % Expense Ratio % Pretax Profit Margin % 35.3% 68 21 31 2024 Outlook Ranges 66.9% QTD Actual Operating Ratios 66 19 29 17.8% 7
Slide 8: Aflac U.S. Improving Persistency
Aflac U.S Improving Persistency 78.7% 78.6% 78.7% 78.7% 78.2% 2Q23 3Q23 4Q23 1Q24 2Q24 8
Slide 9: Aflac U.S. 2Q24
Aflac U.S. 2Q24: Providing customers value, scaling growth and solid margin Benefit Ratio % Expense Ratio % Pretax Profit Ratio % 22.7% 47 40 21 2024 Outlook Ranges 46.7% QTD Actual Operating Ratios 45 38 19 36.9% 9
Slide 10: Strong Capital Ratios
Strong Capital Ratios Solvency Margin Ratio Combined Risk-Based Capital Ratio1 (Fiscal year ending March 31,%) (Fiscal year ending December 31,%) 1400 800 732 710 >650 >1100 659 1200 1136 600 550 1000 917 941 531 881 889 800 400 600 400 200 200 0 0 2020 2021 2022 2023 2024 6/24e 2019 2020 2021 2022
Slide 11: Adjusted Leverage Ratio
Adjusted Leverage Ratio*: Below the lower end of 20-25%range 25.0% 20.4% 19.4% 19.7% 19.5% 20.0% 18.8% 15.0% 2Q23 3Q23 4Q23 1Q24 2Q24 *Adjusted Leverage ratio is computed as: Adjusted debt to Adjusted capitalization ex-AOCI. See appendix for information about this measure. 11
Slide 12: Continued Tactical Capital Deployment
Continued Tactical Capital Deployment Dividends and Share Repurchase ($ millions) 750 800 700 700 700 252 248 245 288 283 2Q23 3Q23 4Q23 1Q24 2Q24 Dividends Repurchase 12
Slide 13: Slide 13
Slide 14: Appendix
Appendix
Slide 15: 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 16: 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 return on equity excluding foreign currency impact is adjusted earnings excluding the current period foreign currency impact divided by average shareholders’ equity, excludin
Slide 17: 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 2024 2023 %Change Net Earnings per diluted share $3.10 $2.71 14.4% Items impacting net earnings Adjusted net investment (gains) losses (1.32) (1.08) Other and non-recurring (income) los
Slide 18: Reconciliation of Net Earnings to Adjusted Earnings
1 Reconciliation of Net Earnings to Adjusted Earnings Three Months Ended June 30, in millions of Dollars 2024 2023 %Change Net Earnings $1,755 $1,634 7.4% Items impacting net earnings Adjusted net investment (gains) losses (749) (651) Other and non-recurring (income) loss — (35) Income tax (benefit)
Slide 19: 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 2024 2023 U.S. GAAP ROE - Net earnings2 28.3% 32.5% Impact of excluding unrealized foreign currency translation gains (losses) (4.8) (4.7) Impact of excluding unrealized gains (losses) o
Slide 20: 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 2024 2023 %Change U.S. GAAP book value per common share $46.40 $34.30 35.3% Less: Unrealized foreign currency translation gains (losses) per common share (9.07) (7.13) Unrealized gains (losses) on s
Slide 21: Adjusted Leverage Ratios
Adjusted Leverage Ratios (In millions) 2024 2023 Notes Payable $7,430 $7,087 50% of subordinated debentures and perpetual bonds (277) (308) Pre-funding of debt maturities — — Adjusted debt1 7,154 6,779 Total Shareholders’ Equity 26,047 20,439 Accumulated other comprehensive (income)loss: Unrealized