Slide 1: Aflac Incorporated
Afi#'ac. Incorporated
Slide 2: Forward-Looking Information and Non-U.S. GAAP Financial Measures
Forward-Looking Information and Non-U.S. 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 identifed as forward-looking and are accompanied by
Slide 3: Max K. Brodén, Executive Vice President, CFO
Max K. Brodén Executive Vice President CFO, Aflac Incorporated
Slide 4: Net earnings per diluted share
Second quarter net earnings per diluted share $2.16
Slide 5: Adjusted earnings per diluted share
Second quarter adjusted earnings per diluted share* $1.46
Slide 6: ROE 19.9%
ROE 19.9% Adj. ROE* 14.1% Adj. ROE ex-FX* 14.9%
Slide 7: Benefit ratio for Aflac Japan
Second quarter benefit ratio for Aflac Japan 67.4%
Slide 8: Third sector benefit ratio for Aflac Japan
Second quarter third sector benefit ratio for Aflac Japan 97.9%
Slide 9: Premium persistency for Aflac Japan
Second quarter premium persistency for Aflac Japan 94.3%
Slide 10: Total adjusted expense ratio for Aflac Japan
Second quarter total adjusted expense ratio for Aflac Japan 20.9%
Slide 11: Pretax profit margin for Aflac Japan
Second quarter pretax profit margin for Aflac Japan 27.4%
Slide 12: Pretax profit margin for Aflac Japan
Second quarter pretax profit margin for Aflac Japan +90 bps
Slide 13: Premium persistency for Aflac U.S.
Second quarter premium persistency for Aflac U.S. 17.9%
Slide 14: Benefit ratio for Aflac U.S.
Second quarter benefit ratio for Aflac U.S. 45.4%
Slide 15: Total adjusted expense ratio for Aflac U.S.
Second quarter total adjusted expense ratio for Aflac U.S. 39.6%
Slide 16: Pretax profit margin for Aflac U.S.
Second quarter pretax profit margin for Aflac U.S. 21.4%
Slide 17: Leverage: adjusted debt to capital
Second quarter pretax Leverage ' 20.6% 1 Adjusted debt to a
Slide 18: Strong capital position at the end of Q2
Strong capital position at the end of Q2 Combined SMR RBC >900% >600%
Slide 19: Share repurchase
Second quarter share repurchase $650 wi.
Slide 20: Dividends
Second quarter dividends $256 wi
Slide 21: 2Q22 Lowering Enterprise Exposure to Currency
2Q22 Lowering Enterprise Exposure to Currency Economic Hedge: Protecting current and future distributions of Japan’s economic value 4.2 7 aa Hedging Real Economic Events * Cash flows from the foreign subsidiary, Aflac Life Insurance Japan, to the holding company 24.9 * Future expectedcash flows ona
Slide 22: Aflac Incorporated
Afi#'ac. Incorporated
Slide 23: Appendix
Appendix
Slide 24: 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 eamings for the period divided by the weighted aver
Slide 25: 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 Net earnings per diluted share Items impacting net earnings: Adjusted net investment (gains) losses Other and non-recurring (income) loss Income tax (benefit) expense on Items excluded
Slide 26: Reconciliation of Net Earnings to Adjusted Earnings
Reconciliation of Net Earnings Adjusted Earnings’ Three Months Ended June 30 in millions of Dollars 2021 2020 % Change Net earnings $ 1,388 $ 1,105 25.6% Items impacting net earnings: Adjusted net investment (gains) losses (567) (85) Other and non-recurring (income) loss — 53 Income tax (benefit) ex
Slide 27: 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 June 30 in millions of Dollars U.S. GAAP ROE — Net earnings? Impact of excluding unrealized foreign currency translation gains (losses) Impact of excluding unrealized gains (losses) on securities and derivatives Impact
Slide 28: Reconciliation of U.S. GAAP Book Value per Share
Reconciliation of U.S. GAAP Book Value per Share’ Three Months Ended June 30 in millions of Dollars 022 021 % Change U.S. GAAP book value per common share $41.59 $50.20 (17.2)% Less: Unrealized foreign currency translation gains (losses) per common share (5.18) (2.47) Unrealized gains (losses) on se