AFLAC INC (AFL)

Aflac Incorporated, a Georgia corporation incorporated in 1973, and its subsidiaries provide financial protection to millions of policyholders and customers in Japan and the United States. Its principal business is supplemental health and life insurance, designed to pay cash benefits promptly when a policyholder or insured gets sick or hurt. The company is authorized to conduct insurance business in all 50 states, the District of Columbia, several U.S. territories, and Japan, and it promotes its products through marketing campaigns featuring the Aflac Duck.

The insurance business has two reporting segments. Aflac Japan, centered on Aflac Life Insurance Japan Ltd., is the principal contributor to consolidated earnings and the largest insurer in Japan by cancer and medical policies in force. It sells third sector products, including cancer insurance (the Miraito product), medical insurance (Anshin Palette) and nursing care insurance. It also sells first sector products: protection-type life insurance (Whole Life Prepare Smart, GIFT) and savings-type life insurance (Tsumitasu, WAYS and child endowment). Aflac U.S. includes American Family Life Assurance Company of Columbus, Continental American Insurance Company (branded Aflac Group Insurance), Aflac New York, Tier One Insurance Company and Aflac Benefits Solutions, which provides a platform for dental and vision. Its products are accident, short-term and long-term disability, cancer, critical illness, hospital indemnity, dental and vision, and term and whole life insurance, sold on an individual and/or group basis.

Aflac Japan serves consumers who face rising out-of-pocket medical costs not reimbursed by Japan's national health insurance system. It sells through about 6,300 sales agencies with roughly 112,000 licensed sales associates, and through alliances with Dai-ichi Life, Japan Post Group and Daido Life. It also has agreements with about 90% of Japan's banks. Aflac U.S. sells supplemental coverage to people who already have major medical or primary insurance, mainly at the worksite. Independent associates and career agents focus on small businesses with three to 99 employees, while brokers focus on employers with 100 or more employees. In 2025 the U.S. sales force averaged about 5,300 actively producing agents, including brokers. The company is also expanding direct-to-consumer reach through digital lead generation. U.S. group sales are seasonally strongest in the fourth quarter because of employer open enrollment.

The company competes with other insurers on product design, price, policyholder service and sales effort. Competition in Japan has intensified since 2001 deregulation. In the U.S., major medical carriers are entering supplemental lines by bundling and discounting. Aflac Japan is regulated by Japan's Financial Services Agency, including its solvency margin ratio standard, the Companies Act of Japan and personal information protection rules. The U.S. insurance subsidiaries are regulated as an insurance holding company system by state authorities, mainly in Nebraska and New York, covering licensing, rates, reserves, capital, investments and dividends.