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8-K

Aflac Inc (AFL)

8-K 2024-05-01 For: 2024-05-01
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Added on April 11, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 1, 2024

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Aflac Incorporated

_________________________________________________________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Georgia 001-07434 58-1167100
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1932 Wynnton Road Columbus Georgia 31999
(Address of principal executive offices) (Zip Code)

706.323.3431

_________________________________________________________________________________________________________________________________________________________

(Registrant’s telephone number, including area code)

_________________________________________________________________________________________________________________________________________________________

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $.10 Par Value AFL New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On May 1, 2024, Aflac Incorporated (the "Company") issued a press release dated May 1, 2024 in which it reported the Company's 2024 first quarter financial results. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein in its entirety. In addition, a copy of the Company's first quarter supplemental earnings materials is furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein in its entirety.

On May 1, 2024, the Company posted to its investor relations website at investors.aflac.com a video presentation by Max Brodén, the Company's Executive Vice President and Chief Financial Officer, discussing the Company's 2024 first quarter earnings. A copy of the transcript of Mr. Brodén's comments from the Investor Update and a copy of the Investor Presentation are furnished as Exhibit 99.3 and Exhibit 99.4 to this Current Report on Form 8-K, respectively, and are incorporated by reference herein in their entirety. The Investor Update and the Investor Presentation should be read in conjunction with the press release.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number Exhibit Title or Description
99.1 Press release of Aflac Incorporated dated May 1, 2024
99.2 Financial Supplement for First Quarter 2024
99.3 Transcript of comments in video presentation by Max Brodén, Executive Vice President and Chief Financial Officer of Aflac Incorporated.
99.4 Slides referenced in video presentation by Max Brodén, Executive Vice President and Chief Financial Officer of Aflac Incorporated.
104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Aflac Incorporated
May 1, 2024 /s/ Robin L. Blackmon
(Robin L. Blackmon)
Senior Vice President, Financial Services
Chief Accounting Officer

2

Document

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News Release

Aflac Incorporated Announces First Quarter Results,

Reports First Quarter Net Earnings of $1.9 Billion,

Declares Second Quarter Cash Dividend

COLUMBUS, Ga. - May 1, 2024 - Aflac Incorporated (NYSE: AFL) today reported its first quarter results.

Total revenues were $5.4 billion in the first quarter of 2024, compared with $4.8 billion in the first quarter of 2023, reflecting net investment gains. Net earnings were $1.9 billion, or $3.25 per diluted share, compared with $1.2 billion, or $1.94 per diluted share a year ago.

Net earnings in the first quarter of 2024 included net investment gains of $951 million, or $1.65 per diluted share, compared with net investment gains of $123 million, or $0.20 per diluted share a year ago. These net investment gains were driven by net gains of $703 million on certain derivatives and foreign currency; net gains from sales and redemptions of $173 million; and a $76 million gain from an increase in the fair value of equity securities, offset by a $1 million increase in the company's current expected credit losses (CECL) reserves.

Adjusted earnings* in the first quarter were $961 million, compared with $953 million in the first quarter of 2023, reflecting an increase of 0.8%. Adjusted earnings per diluted share* increased 7.1% to $1.66 in the quarter. Variable investment income ran $11 million, or $0.01 per share, below the company's long-term return expectations. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per share by $0.08.

The average yen/dollar exchange rate in the first quarter of 2024 was 148.67, or 11.0% weaker than the average rate of 132.30 in the first quarter of 2023.

Shareholders’ equity was $23.5 billion, or $41.27 per share, at March 31, 2024, compared with $19.8 billion, or $32.65 per share, at March 31, 2023. Shareholders’ equity at the end of the first quarter included a cumulative decrease of $1.5 billion for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative decrease of $4.9 billion at March 31, 2023 and a net unrealized gain on investment securities and derivatives of $1.1 billion, compared with a net unrealized gain of $1.3 billion at March 31, 2023. Shareholders’ equity at the end of the first quarter also included an unrealized foreign currency translation loss of $4.7 billion, compared with an unrealized foreign currency translation loss of $3.6 billion at March 31, 2023. The annualized return on average shareholders’ equity in the first quarter was 33.0%.

Shareholders’ equity excluding AOCI (or adjusted book value*) was $28.6 billion, or $50.22 per share at March 31, 2024, compared with $27.1 billion, or $44.66 per share, at March 31, 2023. The annualized adjusted return on equity excluding foreign currency impact* in the first quarter was 14.3%.

AFLAC JAPAN

In yen terms, Aflac Japan's net earned premiums were ¥269.9 billion for the quarter, or 6.0% lower than a year ago, mainly due to the prior year reinsurance transactions and limited-pay policies reaching paid-up status. Adjusted net investment income increased 19.3% to ¥96.6 billion, mainly due to lower hedge costs, the favorable impact of the weakening yen on U.S. dollar investments, and higher variable investment income. Total adjusted revenues in yen declined 0.4% to ¥367.6 billion. Pretax adjusted earnings in yen for the quarter increased 15.6% on a reported basis to ¥120.6 billion, primarily due to lower benefits and expenses during the quarter. Pretax adjusted earnings increased 9.3% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment increased to 32.8%, compared with 28.2% a year ago.

In dollar terms, net earned premiums decreased 16.3% to $1.8 billion in the first quarter. Adjusted net investment income increased 6.1% to $648 million. Total adjusted revenues declined by 11.4% to $2.5 billion. Pretax adjusted earnings increased 2.8% to $810 million.

For the quarter, total new annualized premium sales (sales) decreased 5.1% to ¥12.5 billion, or $84 million, primarily reflecting softer first sector sales.

AFLAC U.S.

Aflac U.S. net earned premiums increased 3.3% to $1.5 billion in the first quarter compared to the prior year due primarily to sales recovery in the prior year and continued improvement in persistency. Adjusted net investment income increased 4.6% to $206 million, largely due to higher variable investment income and a shift to higher-yielding fixed-income investments. Total adjusted revenues were up 2.3% to $1.7 billion. Pretax adjusted earnings were $356 million, 1.1% higher than a year ago, primarily due to higher revenue and lower expenses offset by higher benefits. The pretax adjusted profit margin for the U.S. segment was 21.0%, compared with 21.2% a year ago.

Aflac U.S. sales decreased 5.2% in the quarter to $298 million, reflecting continued strong underwriting discipline.

CORPORATE AND OTHER

For the quarter, total adjusted revenues increased 91.5% to $247 million compared to the prior year primarily due to reinsurance transactions in the fourth quarter of 2023 resulting in an increase to both total net earned premiums and adjusted net investment income, which also increased due to a lower volume of tax credit investments. Total benefits and adjusted expenses increased $114 million compared to prior year primarily as a result of the increased reinsurance activity. Pretax adjusted earnings were a loss of $3 million, compared with a loss of $7 million a year ago.

DIVIDEND AND CAPITAL RETURNED TO SHAREHOLDERS

The board of directors declared the second quarter dividend of $0.50 per share, payable on June 3, 2024 to shareholders of record at the close of business on May 22, 2024.

In the first quarter, Aflac Incorporated deployed $750 million in capital to repurchase 9.3 million of its common shares. At the end of March 2024, the company had 68.5 million remaining shares authorized for repurchase.

OUTLOOK

Commenting on the company’s results, Aflac Incorporated Chairman, Chief Executive Officer and President Daniel P. Amos stated: "Aflac delivered very solid earnings for the quarter. We have continued to actively concentrate on driving profitable growth in the U.S. and Japan with new products and distribution strategies. We believe our strategy will continue to create long-term value for shareholders.

"Looking at our operations in Japan, we have maintained disciplined underwriting and expense management to drive strong pretax profit margins. We expect sales campaigns around our 50th anniversary in Japan starting in the second quarter to get us back on track for the year.

"In the U.S., we continue to focus on more profitable growth by exercising a stronger underwriting discipline with an emphasis on persistency. As a result, we are seeing positive results in both net earned premiums growth and persistency. At the same time, we continue our disciplined approach to expense management and maintaining a strong pretax margin. We expect to drive further improvements throughout the year.

"We continue to generate strong capital and cash flows while maintaining our commitment to prudent liquidity and capital management. We treasure our track record of 41 consecutive years of dividend growth and remain committed to extending it, supported by our financial strength. In the quarter, we repurchased a record $750 million in shares and intend to continue our balanced approach of investing in growth and driving long-term operating efficiencies."

*See Non-U.S. GAAP Financial Measures section for an explanation of foreign exchange and its impact on the financial statements and definitions of the non-U.S. GAAP financial measures used in this earnings release, as well as a reconciliation of such non-U.S. GAAP financial measures to the most comparable U.S. GAAP financial measures.

ABOUT AFLAC INCORPORATED

Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than 68 years to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force. The company takes pride in being there for its policyholders when they need us most, as well as being included in the World’s Most Ethical Companies by Ethisphere for 18 consecutive years (2024), Fortune’s World’s Most Admired Companies for 23 years (2024) and Bloomberg’s Gender-Equality Index for the fourth consecutive year (2023). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021 and has been included in the Dow Jones Sustainability North America Index (2023) for 10 years. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under “Sustainability.”

1 LIMRA 2022 U.S. Supplemental Health Insurance Total Market Report

A copy of Aflac’s financial supplement for the quarter can be found on the “Investors” page at aflac.com.

Aflac Incorporated will webcast its quarterly conference call via the “Investors” page of aflac.com at 7:00 a.m. (ET) on May 2, 2024.

Note: Tables within this document may not foot due to rounding.

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
THREE MONTHS ENDED MARCH 31, 2024 2023 % Change
Total revenues $ 5,436 $ 4,800 13.3 %
Benefits and claims, net 2,010 2,150 (6.5)
Total acquisition and operating expenses 1,256 1,308 (4.0)
Earnings before income taxes 2,170 1,342 61.7
Income taxes 291 154
Net earnings $ 1,879 $ 1,188 58.2 %
Net earnings per share – basic $ 3.27 $ 1.94 68.6 %
Net earnings per share – diluted 3.25 1.94 67.5
Shares used to compute earnings per share (000):
Basic 574,886 611,205 (5.9) %
Diluted 577,482 613,950 (5.9)
Dividends paid per share $ 0.50 $ 0.42 19.0 %
AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET
--- --- --- --- --- --- ---
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)
MARCH 31, 2024 2023 % Change
Assets:
Total investments and cash $ 111,716 $ 120,500 (7.3) %
Deferred policy acquisition costs 8,819 9,267 (4.8)
Other assets 4,207 5,199 (19.1)
Total assets $ 124,742 $ 134,966 (7.6) %
Liabilities and shareholders’ equity:
Policy liabilities $ 85,364 $ 99,933 (14.6) %
Notes payable and lease obligations 7,912 7,420 6.6
Other liabilities 7,929 7,829 1.3
Shareholders’ equity 23,537 19,784 19.0
Total liabilities and shareholders’ equity $ 124,742 $ 134,966 (7.6) %
Shares outstanding at end of period (000) 570,278 605,952 (5.9) %

NON-U.S. GAAP FINANCIAL MEASURES

This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).

The company defines the non-U.S. GAAP financial measures included in this earnings release 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 average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management’s control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively.

•Adjusted earnings excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management’s control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively.

•Adjusted return on equity is adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income (AOCI). Management uses adjusted return on equity to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The Company considers adjusted return on equity important as it excludes components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity.

•Adjusted return on equity excluding foreign currency impact is adjusted earnings excluding the current period foreign currency impact divided by average shareholders’ equity, excluding AOCI. The Company considers adjusted return on equity excluding foreign currency impact important as it excludes changes in foreign currency and components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity excluding foreign currency impact is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity.

•Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign exchange risks in the Company's Japan segment or in Corporate and other. These amortized hedge costs/income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the contractual term of the derivative. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an

important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income.

•Adjusted book value is the U.S. GAAP book value (representing total shareholders’ equity), less AOCI as recorded on the U.S. GAAP balance sheet. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude AOCI, which fluctuates due to market movements that are outside management’s control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively.

•Adjusted book value including unrealized foreign currency translation gains and losses is adjusted book value plus unrealized foreign currency translation gains and losses. Adjusted book value including unrealized foreign currency translation gains and losses per common share is adjusted book value plus unrealized foreign currency translation gains and losses at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value including unrealized foreign currency translation gains and losses, and its related per share financial measure, important as they exclude certain components of AOCI, which fluctuate due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measures for adjusted book value including unrealized foreign currency translation gains and losses and adjusted book value including unrealized foreign currency translation gains and losses per common share are total book value and total book value per common share, respectively.

•Adjusted net investment income is net investment income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, and ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and losses to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company’s investments and related hedging strategies. The most comparable U.S. GAAP financial measure for adjusted net investment income is net investment income.

•Adjusted net investment gains and losses are net investment gains and losses adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are both reclassified to net investment income, and iii) the impact of interest from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management’s control, while excluding the components that are within management’s control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses.

RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
THREE MONTHS ENDED MARCH 31, 2024 2023 % Change
Net earnings $ 1,879 $ 1,188 58.2 %
Items impacting net earnings:
Adjusted net investment (gains) losses (1,009) (209)
Other and non-recurring (income) loss 2 —
Income tax (benefit) expense on items excluded <br>from adjusted earnings 89 (26)
Adjusted earnings 961 953 0.8 %
Current period foreign currency impact 1 44 N/A
Adjusted earnings excluding current period foreign <br> currency impact 2 $ 1,005 $ 953 5.5 %
Net earnings per diluted share $ 3.25 $ 1.94 67.5 %
Items impacting net earnings:
Adjusted net investment (gains) losses (1.75) (0.34)
Other and non-recurring (income) loss — —
Income tax (benefit) expense on items excluded <br>from adjusted earnings 0.15 (0.04)
Adjusted earnings per diluted share 1.66 1.55 7.1 %
Current period foreign currency impact 1 0.08 N/A
Adjusted earnings per diluted share excluding <br> current period foreign currency impact 2 $ 1.74 $ 1.55 12.3 %

1    Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.

2    Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.

RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED MARCH 31, 2024 2023 % Change
Net investment (gains) losses $ (951) $ (123) 673.2 %
Items impacting net investment (gains) losses:
Amortized hedge costs (6) (58)
Amortized hedge income 28 29
Net interest income (expense) from derivatives associated<br><br>with certain investment strategies (88) (69)
Impact of interest from derivatives associated with<br><br>notes payable1 8 12
Adjusted net investment (gains) losses $ (1,009) $ (209) 382.8 %

1    Amounts are included with interest expenses that are a component of adjusted expenses.

RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED MARCH 31, 2024 2023 % Change
Net investment income $ 1,000 $ 943 6.0 %
Items impacting net investment income:
Amortized hedge costs (6) (58)
Amortized hedge income 28 29
Net interest income (expense) from derivatives associated<br><br>with certain investment strategies (88) (69)
Adjusted net investment income $ 934 $ 845 10.5 %
RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE
--- --- --- --- --- --- ---
(UNAUDITED - IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
MARCH 31, 2024 2023 % Change
U.S. GAAP book value $ 23,537 $ 19,784
Less:
Unrealized foreign currency translation gains (losses) (4,666) (3,618)
Unrealized gains (losses) on securities and derivatives 1,066 1,263
Effect of changes in discount rate assumptions (1,495) (4,894)
Pension liability adjustment (7) (29)
Total AOCI (5,102) (7,278)
Adjusted book value $ 28,639 $ 27,062
Add:
Unrealized foreign currency translation gains (losses) (4,666) (3,618)
Adjusted book value including unrealized foreign currency translation gains (losses) $ 23,973 $ 23,444
Number of outstanding shares at end of period (000) 570,278 605,952
U.S. GAAP book value per common share $ 41.27 $ 32.65 26.4 %
Less:
Unrealized foreign currency translation gains (losses) per common share (8.18) (5.97)
Unrealized gains (losses) on securities and derivatives per common share 1.87 2.08
Effect of changes in discount rate assumptions <br>     per common share (2.62) (8.08)
Pension liability adjustment per common share (0.01) (0.05)
Total AOCI per common share (8.95) (12.01)
Adjusted book value per common share $ 50.22 $ 44.66 12.4 %
Add:
Unrealized foreign currency translation gains (losses) per common share (8.18) (5.97)
Adjusted book value including unrealized foreign currency translation gains (losses) per common share $ 42.04 $ 38.69 8.7 %
RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
--- --- --- --- ---
(EXCLUDING IMPACT OF FOREIGN CURRENCY)
THREE MONTHS ENDED MARCH 31, 2024 2023
U.S. GAAP ROE - Net earnings1 33.0 % 23.8 %
Impact of excluding unrealized foreign currency translation gains (losses) (5.1) (3.2)
Impact of excluding unrealized gains (losses) on securities and derivatives 1.3 0.2
Impact of excluding effect of changes in discount rate assumptions (2.4) (3.1)
Impact of excluding pension liability adjustment — —
Impact of excluding AOCI (6.2) (6.1)
U.S. GAAP ROE - less AOCI 26.8 17.7
Differences between adjusted earnings and net earnings2 (13.1) (3.5)
Adjusted ROE - reported 13.7 14.2
Less: Impact of foreign currency3 (0.6) N/A
Adjusted ROE, excluding impact of foreign currency 14.3 14.2

1    U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.

2    See separate reconciliation of net income to adjusted earnings.

3    Impact of foreign currency is calculated by restating all foreign currency components of the income statement to the weighted average foreign currency exchange rate for the comparable prior year period. The impact is the difference of the restated adjusted earnings compared to reported adjusted earnings. For comparative purposes, only current period income is restated using the weighted average prior period exchange rate, which eliminates the foreign currency impact for the current period. This allows for equal comparison of this financial measure.

EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES, UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2024 Including<br>Currency<br>Changes Excluding<br><br>Currency<br><br>Changes2
Net earned premiums3 (6.3) % 0.3 %
Adjusted net investment income4 10.5 13.8
Total benefits and expenses (5.5) 0.9
Adjusted earnings 0.8 5.5
Adjusted earnings per diluted share 7.1 12.3

1Refer to previously defined adjusted earnings and adjusted earnings per diluted share.

2Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.

3Net of reinsurance

4Refer to previously defined adjusted net investment income.

FORWARD-LOOKING INFORMATION

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 meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. The company desires to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” “may,” “should,” “estimate,” “intends,” “projects,” “will,” “assumes,” “potential,” “target,” "outlook" or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements.

The company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:

•difficult conditions in global capital markets and the economy, including inflation

•defaults and credit downgrades of investments

•global fluctuations in interest rates and exposure to significant interest rate risk

•concentration of business in Japan

•limited availability of acceptable yen-denominated investments

•foreign currency fluctuations in the yen/dollar exchange rate

•differing interpretations applied to investment valuations

•significant valuation judgments in determination of expected credit losses recorded on the Company's investments

•decreases in the Company's financial strength or debt ratings

•decline in creditworthiness of other financial institutions

•the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners

•deviations in actual experience from pricing and reserving assumptions

•ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives

•interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems

•subsidiaries' ability to pay dividends to the Parent Company

•inherent limitations to risk management policies and procedures

•operational risks of third-party vendors

•tax rates applicable to the Company may change

•failure to comply with restrictions on policyholder privacy and information security

•extensive regulation and changes in law or regulation by governmental authorities

•competitive environment and ability to anticipate and respond to market trends

•catastrophic events, including, but not limited to, as a result of climate change, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events

•ability to protect the Aflac brand and the Company's reputation

•ability to effectively manage key executive succession

•changes in accounting standards

•level and outcome of litigation or regulatory inquiries

•allegations or determinations of worker misclassification in the United States

Analyst and investor contact - David A. Young, 706.596.3264; 800.235.2667 or dyoung@aflac.com

Media contact - Ines Gutzmer, 762.207.7601 or igutzmer@aflac.com

Document

FINAL                     5/1/2024

aflaclogoa01a01a01a33a.jpg

Financial Supplement

First Quarter 2024

This document is a statistical supplement to Aflac’s quarterly earnings release. Throughout the presentation, amounts presented may not foot due to rounding. As you review the supplement, please note the non-U.S. GAAP financial measures and definitions found at the back of this document.

The Company adopted the Financial Accounting Standards Board’s Accounting Standard Update 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by (i) ASU 2019-09 Financial Services - Insurance: Effective Date, and (ii) ASU 2020-11 Financial Services - Insurance: Effective Date and Early Application (collectively, “LDTI”) as of January 1, 2023. The amended guidance is applied as of the beginning of the earliest period presented in the Company’s quarterly and annual financial statements, which results in a January 1, 2021 Transition Date. In conjunction with the adoption of LDTI, the Company changed its practice of recording the change in the deferred profit liability (DPL) on products with limited-payment features from the benefits and claims, net line item to the net earned premiums line item in the consolidated statement of earnings. This change in presentation has no impact on net earnings. All quarterly and annual amounts for 2021 and 2022 presented herein reflect these changes for LDTI and DPL.

Aflac Incorporated Page
Share Data 2
Summary of Adjusted Results by Business Segment 3
Statements of Earnings 4
Analysis of Net Earnings and Net Earnings Per Share 5
Balance Sheets 6
Quarterly Financial Results 7
Quarterly Book Value Per Share 8
Return on Equity 9
Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact 10
Investment Results 11,12,13
Long-Term Debt Data 14
Ratings 15
Aflac U.S.
Statement of Pretax Adjusted Earnings 16
Balance Sheets 17
Quarterly Pretax Adjusted Earnings 18
Operating Ratios 19
Sales 20,21
Aflac Japan
Statement of Pretax Adjusted Earnings 22,23
Balance Sheets 24,25
Quarterly Pretax Adjusted Earnings 26
Operating Ratios 27
Sales 28,29,30
Yen/Dollar Exchange Rates 31
Corporate and Other
Statement of Pretax Adjusted Earnings 32
Non-U.S. GAAP Financial Measures 33

For more information, contact:

David Young

Phone. 706.596.3264

Aflacir@aflac.com

investors.aflac.com

Aflac Incorporated and Subsidiaries
Share Data
(In Thousands)
Beginning Shares Issued Shares Purchased Ending QTD Weighted Avg. Shares YTD Weighted Avg. Shares
Shares Stk. Bon. Stk. Opt. Treas. Misc. Shares Avg. Dilutive Avg. Avg. Dilutive Avg.
Period Outstanding & DRP & Misc. Shares Purch.(1) Outstanding Shares Shares Diluted Shares Shares Diluted
2022 1 652,132 259 1,308 8,007 343 645,349 649,753 3,074 652,827 649,753 3,074 652,827
2 645,349 269 101 11,185 8 634,526 640,707 2,536 643,243 645,205 2,805 648,010
3 634,526 258 144 11,057 3 623,868 629,350 2,597 631,946 639,862 2,735 642,597
4 623,868 222 120 8,938 16 615,256 619,845 3,149 622,994 634,816 2,839 637,655
2023 1 615,256 239 1,152 10,348 347 605,952 611,205 2,745 613,950 611,205 2,745 613,950
2 605,952 259 225 10,461 6 595,969 600,742 2,187 602,929 605,945 2,466 608,411
3 595,969 210 115 9,390 7 586,897 591,246 2,350 593,596 600,992 2,427 603,419
4 586,897 191 94 8,698 5 578,479 581,876 3,005 584,881 596,173 2,572 598,745
2024 1 578,479 212 1,320 9,276 457 570,278 574,886 2,596 577,482 574,886 2,596 577,482

(1) Includes previously owned shares used to purchase options (swapped shares) and/or shares purchased for deferred compensation program

Aflac Incorporated and Subsidiaries
Summary of Adjusted Results by Business Segment
(In Millions, except per-share data and where noted)
3 Months Ended March 31,
%
2020 2021 2022 2023 2023 2024 Change
Aflac Japan 3,261 $ 3,263 $ 3,755 $ 3,281 $ 3,234 $ 788 $ 810 2.8
Aflac U.S. 1,272 1,268 1,356 1,359 1,501 352 356 1.1
Corporate and other (1) (72) (115) (293) (218) (425) (7) (3)
Pretax adjusted earnings 4,461 4,416 4,819 4,422 4,310 1,133 1,163 2.6
Income taxes (1) 1,147 864 893 808 577 180 202 12.2
Adjusted earnings (2) 3,314 3,552 3,925 3,614 3,733 953 961 .8
Reconciling items:
Adjusted net investment gains (losses) (15) (229) 462 447 914 209 1,009
Other and non-recurring income (loss) (3) (1) (28) (73) 1 39 — (2)
Income tax benefit (expense) on items excluded from adjusted earnings (4) 3 72 (83) 357 (26) 26 (89)
Tax reform adjustment (5) 4 — — — — — —
Tax valuation allowance release (6) — 1,411 — — — — —
Net earnings 3,304 $ 4,778 $ 4,231 $ 4,418 $ 4,659 $ 1,188 $ 1,879 58.2
Effective Tax rate 25.7 % (14.9) % 18.7 % 9.3 % 11.5 % 11.5 % 13.4 %
Earnings per share of common stock:
Net earnings (basic) 4.45 $ 6.69 $ 6.28 $ 6.96 $ 7.81 $ 1.94 $ 3.27 68.6
Net earnings (diluted) 4.43 6.67 6.25 6.93 7.78 1.94 3.25 67.5
Adjusted earnings (basic) (2) 4.46 $ 4.98 $ 5.83 $ 5.69 $ 6.26 $ 1.56 $ 1.67 7.1
Adjusted earnings (diluted) (2) 4.44 4.96 5.80 5.67 6.23 1.55 1.66 7.1
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of 32 and 51 for the three-month periods ended March 31, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of 33 and 52 for the three-month periods ended March 31, 2024, and 2023, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings.
(2) See non-U.S. GAAP financial measures for definition of adjusted earnings.
(3) Foreign currency gains and losses for all periods have been reclassified from Other and non-recurring income (loss) to Net investment gains and losses.
(4) Primarily reflects release of 452 in deferred taxes in 2022
(5) The impact of Tax Reform was adjusted in 2018 for return-to-provision adjustments, various amended returns filed by the Company, and final true-ups of deferred tax liabilities. Further impacts were recorded in 2019 as a result of additional guidance released by the IRS.
(6) Tax benefit recognized in 2020 represents the release of valuation allowances on deferred tax benefits related to foreign tax credits.

All values are in US Dollars.

Aflac Incorporated and Subsidiaries
Consolidated Statements of Earnings - U.S. GAAP
(In Millions, except per-share data)
3 Months Ended March 31,
%
2020 2021 2022 2023 2023 2024 Change
Revenues:
Net earned premiums
Gross premiums 19,122 $ 18,955 $ 17,305 $ 15,025 $ 14,318 $ 3,738 $ 3,482
Assumed (ceded) (342) (333) (210) (124) (195) (50) (26)
Total net earned premiums 18,780 18,622 17,095 14,901 14,123 3,688 3,456 (6.3)
Net investment income 3,578 3,638 3,818 3,656 3,811 943 1,000 6.0
Net investment gains (losses) (1) (135) (270) 468 363 590 123 951
Other income (1) 84 157 173 220 177 46 29
Total revenues 22,307 22,147 21,554 19,140 18,701 4,800 5,436 13.3
Benefits and Claims:
Benefits and claims, net
Incurred claims -direct 9,279 9,364 8,949 8,271 8,005 2,215 2,277
Incurred claims -assumed (ceded) (372) (296) (147) (108) (177) (41) (16)
Increase in FPB (2)-direct 2,952 2,707 1,819 888 594 36 (195)
Increase in FPB (2)-assumed (ceded) 83 21 3 51 172 (7) —
Total net benefits and claims, excluding   reserve remeasurement N/A N/A 10,623 9,102 8,594 2,203 2,066
Reserve remeasurement (gain) loss N/A N/A (147) (215) (383) (53) (56)
Total net benefits and claims 11,942 11,796 10,476 8,887 8,211 2,150 2,010 (6.5)
Acquisition and operating expenses:
Amortization of DAC (3) 1,282 1,214 835 792 816 205 215
Insurance commissions 1,321 1,316 1,256 1,117 1,052 280 255
Insurance expenses 3,089 3,420 3,541 3,249 3,165 775 739
Interest expense 228 242 238 226 195 48 47
Total acquisition and operating expenses 5,920 6,192 5,870 5,384 5,228 1,308 1,256 (4.0)
Total benefits and expenses 17,862 17,988 16,346 14,271 13,439 3,458 3,266 (5.6)
Pretax earnings 4,445 4,159 5,208 4,869 5,262 1,342 2,170
Income tax expense (benefit) (4) 1,141 (619) 977 451 603 154 291
Net earnings 3,304 $ 4,778 $ 4,231 $ 4,418 $ 4,659 $ 1,188 $ 1,879 58.2
(1) Foreign currency gains and losses for all periods have been reclassified from Other income to Net investment gains and losses for consistency with current period presentation.
(2) Future policy benefits
(3) Deferred acquisition costs
(4) Primarily reflects release of 452 in deferred taxes in 2022

All values are in US Dollars.

Aflac Incorporated and Subsidiaries
Analysis of Net Earnings and Net Earnings Per Diluted Share
(In Millions, except for per-share data)
Other and Foreign
Net Other and Non- Foreign Net Net Non-Recurring Currency
Net Investment Recurring Currency Earnings Investment Items Impact
Period Earnings Gains (Losses) (1) Items (1)(3)(4) Impact (2) Per Share Gains (Losses) (1) Per Share (1)(3)(4) Per Share (2)
2019 3,304 (13) 3 15 4.43 (.02) .01 .02
2020 4,778 (181) 1,407 31 6.67 (.25) 1.96 .04
2021 4,231 365 (59) (42) 6.25 .54 (.09) (.06)
2022 4,418 803 1 (262) 6.93 1.26 — (.41)
2023 4,659 896 31 (113) 7.78 1.50 .05 (.19)
2022 1 1,047 106 (1) (35) 1.60 .16 — (.05)
2 1,394 448 — (59) 2.17 .70 — (.09)
3 1,781 871 1 (97) 2.82 1.38 — (.15)
4 196 (621) — (70) .31 (1.00) — (.11)
2023 1 1,188 235 — (41) 1.94 .38 — (.07)
2 1,634 653 28 (25) 2.71 1.08 .05 (.04)
3 1,569 472 2 (33) 2.64 .80 — (.06)
4 268 (464) — (14) .46 (.79) — (.02)
2024 1 1,879 920 (2) (44) 3.25 1.59 — (.08)
(1) Items are presented net of tax.
(2) See non-U.S. GAAP financial measures for definition of adjusted earnings excluding current period foreign currency impact
(3) Foreign currency gains and losses and amortized hedge costs/income for all periods have been reclassified from Other income to Net investment gains and losses for consistency with current period presentation.
(4 )Tax benefit recognized in the third quarter of 2020 represents the release of valuation allowances on deferred tax benefits related to foreign tax credits.
Aflac Incorporated and Subsidiaries
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Consolidated Balance Sheets
(In Millions, except per-share data)
December 31, March 31,
Assets: 2019 2020 2021 2022 2023 2023 2024
Investments and cash:
Securities available for sale:
Fixed maturity securities available for sale, at fair value $ 86,950 $ 101,286 $ 94,206 $ 71,936 $ 69,578 $ 74,174 $ 66,452
Fixed maturity securities available for sale - consolidated variable interest entities, at fair value 4,312 4,596 4,490 3,805 3,712 3,925 3,678
Fixed maturity securities held to maturity, at amortized cost, net of allowance for credit losses 30,085 24,464 22,000 19,056 17,819 18,936 16,689
Equity securities, at fair value 802 1,283 1,603 1,091 1,088 1,087 762
Commercial mortgage and other loans, net of allowance for credit losses 9,569 10,554 11,786 13,496 12,527 13,328 12,360
Other investments 1,477 2,429 3,842 4,070 4,530 5,241 6,677
Cash and cash equivalents 4,896 5,141 5,051 3,943 4,306 3,809 5,098
Total investments and cash 138,091 149,753 142,978 117,397 113,560 120,500 111,716
Receivables, net of allowance for credit losses (1) 816 778 672 647 848 789 1,038
Accrued investment income 772 780 737 745 731 701 693
Deferred policy acquisition costs 10,128 10,441 9,848 9,239 9,132 9,267 8,819
Property and equipment, net 581 601 538 530 445 528 418
Other assets, net of allowance for credit losses (1)(2) 2,380 2,733 3,377 3,180 2,008 3,181 2,058
Total assets $ 152,768 $ 165,086 $ 158,150 $ 131,738 $ 126,724 $ 134,966 $ 124,742
Liabilities and Shareholders' Equity:
Liabilities:
Total policy liabilities $ 106,554 $ 114,391 $ 126,331 $ 96,910 $ 91,599 $ 99,933 $ 85,364
Notes payable 6,569 7,899 7,956 7,442 7,364 7,420 7,912
Income taxes, primarily deferred 5,370 4,661 30 698 154 647 777
Other liabilities 5,316 4,576 6,802 6,548 5,622 7,182 7,152
Total liabilities 123,809 131,527 141,119 111,598 104,739 115,182 101,205
Shareholders' equity:
Common stock 135 135 135 135 136 135 136
Additional paid-in capital 2,313 2,410 2,529 2,641 2,771 2,665 2,806
Retained earnings 34,291 37,984 40,963 44,367 47,993 45,555 49,872
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains (losses) (1,623) (1,109) (1,985) (3,564) (4,069) (3,618) (4,666)
Unrealized gains (losses) on fixed maturity securities 8,548 10,361 9,602 (702) 1,139 1,289 1,092
Unrealized gains (losses) on derivatives (33) (34) (30) (27) (22) (26) (26)
Effect of change in discount rate assumption(s) N/A N/A (15,832) (2,100) (2,560) (4,894) (1,495)
Pension liability adjustment (277) (284) (166) (36) (8) (29) (7)
Treasury stock (14,395) (15,904) (18,185) (20,574) (23,395) (21,293) (24,175)
Total shareholders' equity 28,959 33,559 17,031 20,140 21,985 19,784 23,537
Total liabilities & shareholders' equity $ 152,768 $ 165,086 $ 158,150 $ 131,738 $ 126,724 $ 134,966 $ 124,742

(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity.

(2) Includes goodwill of $265 million in 2024, $270 million in 2023, $265 in 2022, $268 in 2021, $269 million in 2020 and $140 million in 2019

Aflac Incorporated and Subsidiaries
Quarterly Financial Results
(Dollars In Millions, except per-share data)
Total
Net Net Benefits Acquisitions Total Net EPS Adj. EPS (1)
Earned Inv. Total & & Pretax Net Adjusted
Period Premiums Income Revenues Claims, Net Adj. Exp. Earn. Earn. Earn. (1) Basic Dil. Basic Dil.
2019 18,780 3,578 22,307 11,942 5,920 4,445 3,304 3,314 4.45 4.43 4.46 4.44
2020 18,622 3,638 22,147 11,796 6,192 4,159 4,778 3,552 6.69 6.67 4.98 4.96
2021 17,095 3,818 21,554 10,476 5,870 5,208 4,231 3,925 6.28 6.25 5.83 5.80
2022 14,901 3,656 19,140 8,887 5,384 4,869 4,418 3,614 6.96 6.93 5.69 5.67
2023 14,123 3,811 18,701 8,211 5,228 5,262 4,659 3,733 7.81 7.78 6.26 6.23
2022 1 4,079 903 5,173 2,483 1,396 1,294 1,047 942 1.61 1.60 1.45 1.44
2 3,764 937 5,315 2,274 1,333 1,708 1,394 945 2.18 2.17 1.47 1.47
3 3,535 920 4,704 2,076 1,299 1,329 1,781 910 2.83 2.82 1.45 1.44
4 3,523 896 3,948 2,054 1,356 538 196 817 .32 .31 1.32 1.31
2023 1 3,688 943 4,800 2,150 1,308 1,342 1,188 953 1.94 1.94 1.56 1.55
2 3,573 999 5,172 2,098 1,249 1,825 1,634 954 2.72 2.71 1.59 1.58
3 3,476 1,004 4,950 1,860 1,285 1,805 1,569 1,095 2.65 2.64 1.85 1.84
4 3,385 865 3,777 2,103 1,385 289 268 732 .46 .46 1.26 1.25
2024 1 3,456 1,000 5,436 2,010 1,256 2,170 1,879 961 3.27 3.25 1.67 1.66

(1) See non-U.S. GAAP financial measures for definition of adjusted earnings.

Aflac Incorporated and Subsidiaries
Quarterly Book Value Per Share
(Dollars In Millions, except per-share data)
Adjusted BV
Adjusted BV Per Share Incl
Equity AOCI Adjusted BV Per Share Incl Foreign Currency
BV Per BV Per Adjusted BV Per Share Foreign Currency Translation G/(L)
Period Share Share Per Share (1) % Change Translation G/(L)(1) % Change
2019 39.84 9.10 30.74 8.9% 28.51 10.6%
2020 48.46 12.90 35.56 15.7% 33.96 19.1%
2021 26.12 (12.90) 39.01 9.7% 35.97 5.9%
2022 32.73 (10.45) 43.18 10.7% 37.39 3.9%
2023 38.00 (9.54) 47.55 10.1% 40.51 8.3%
2022 1 27.21 (13.09) 40.31 10.1% 36.53 7.0%
2 30.82 (11.00) 41.82 11.3% 36.75 4.6%
3 31.97 (12.03) 44.00 14.6% 36.99 3.4%
4 32.73 (10.45) 43.18 10.7% 37.39 3.9%
2023 1 32.65 (12.01) 44.66 10.8% 38.69 5.9%
2 34.30 (12.31) 46.61 11.5% 39.48 7.4%
3 38.63 (9.81) 48.44 10.1% 40.80 10.3%
4 38.00 (9.54) 47.55 10.1% 40.51 8.3%
2024 1 41.27 (8.95) 50.22 12.4% 42.04 8.7%

(1) See non-U.S. GAAP financial measures for definition of adjusted book value and adjusted book value including unrealized

foreign currency translation gains and losses.

Aflac Incorporated and Subsidiaries
Return on Equity
Year Ended December 31, 3 Months Ended March 31,
2019 2020 2021 (4) 2022 2023 2023 2024
U.S. GAAP ROE (1) - Net earnings 12.6 % 15.3 % 26.7 % 23.8 % 22.1 % 23.8 % 33.0 %
Impact of excluding unrealized foreign currency translation gains (losses) (1.0) (0.9) (1.7) (2.5) (3.1) (3.2) (5.1)
Impact of excluding unrealized gains (losses) on securities and derivatives 3.6 6.2 10.7 4.1 0.2 0.2 1.3
Impact of excluding effect on change in discount rate assumptions N/A N/A (18.5) (8.2) (1.9) (3.1) (2.4)
Impact of excluding pension liability adjustment (0.1) (0.2) (0.2) (0.1) — — —
Impact of excluding AOCI 2.5 5.1 (9.7) (6.8) (4.9) (6.1) (6.2)
U.S. GAAP ROE - less AOCI 15.1 20.3 17.0 17.0 17.2 17.7 26.8
Differences between adjusted earnings and net earnings (2) — (5.2) (1.2) (3.1) (3.4) (3.5) (13.1)
Adjusted ROE - reported (3) 15.2 15.1 15.8 13.9 13.8 14.2 13.7
(1) U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
(2) See separate reconciliation of net income to adjusted earnings.
(3) See non-U.S. GAAP financial measures for definition of adjusted return on equity
(4) Return on equity calculations for 2021 use beginning retained earnings and accumulated other comprehensive income adjusted for the adoption of LDTI.
Aflac Incorporated and Subsidiaries
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Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact (1)
(Diluted Basis)
Change
QTD YTD Excluding Excluding
Foreign Foreign Foreign Foreign
Adjusted Currency Currency Currency Currency
Period EPS(1) Growth Impact(1) Impact(1) Impact(1) Impact
2019 $ 4.44 6.7 % N/A .02 $ 4.42 6.3 %
2020 $ 4.96 11.7 % N/A .04 $ 4.92 10.8 %
2021 $ 5.80 16.9 % N/A (.06) $ 5.86 18.1 %
2022 $ 5.67 (2.2) % N/A (.41) $ 6.08 4.8 %
2023 $ 6.23 9.9 % N/A (.19) $ 6.43 13.4 %
2022 1 $ 1.44 .7 % (.05) (.05) $ 1.50 4.9 %
2 1.47 — (.09) (.15) 1.56 6.1
3 1.44 (8.3) (.15) (.30) 1.59 1.3
4 1.31 (.8) (.11) (.41) 1.43 8.3
$ 5.67 (2.2) % $ 6.08 4.8 %
2023 1 $ 1.55 7.6 % (.07) (.07) $ 1.62 12.5 %
2 1.58 7.5 (.04) (.11) 1.62 10.2
3 1.84 27.8 (.06) (.17) 1.90 31.9
4 1.25 (4.6) (.02) (.19) 1.28 (2.3)
$ 6.23 9.9 % $ 6.43 13.4 %
2024 1 $ 1.66 7.1 % (.08) (.08) $ 1.74 12.3 %
$ 1.66 7.1 % $ 1.74 12.3 %
(1) See non-U.S.GAAP financial measures for definition of adjusted earnings and adjusted earnings excluding current period foreign currency impact
Aflac Incorporated and Subsidiaries
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Composition of Invested Assets
(In Millions)
December 31, March 31,
2019 2020 2021 2022 2023 2023 2024
Fixed Maturity Securities(1) $ 109,456 $ 116,056 $ 107,369 $ 94,525 $ 88,508 $ 94,242 $ 84,283
Commercial mortgage and other loans, net of allowance for credit losses (1)
Transitional Real Estate (floating rate) 5,450 5,231 5,246 6,455 5,998 6,635 5,964
Middle Market Loans (floating rate) 2,412 3,635 4,601 5,028 4,531 4,935 4,487
Commercial Mortgage Loans 1,707 1,688 1,854 1,775 1,697 1,457 1,634
Other Loans — — 20 238 301 301 275
Total Commercial mortgage and other loans, net of allowance for credit losses(1) 9,569 10,554 11,721 13,496 12,527 13,328 12,360
Equity Securities, at FV through net earnings 802 1,283 1,603 1,091 1,088 1,087 762
Alternatives(2) 551 919 1,703 2,107 2,619 2,255 2,686
Total Portfolio $ 120,378 $ 128,812 $ 122,396 $ 111,219 $ 104,742 $ 110,912 $ 100,091
Unrealized Gains (Losses) on Invested Assets
(In Millions)
December 31, March 31,
2019 2020 2021 2022 2023 2023 2024
Fixed Maturity Securities
Available For Sale - Gross Gains $ 12,266 $ 14,771 $ 13,566 $ 4,800 $ 6,050 $ 5,875 $ 6,038
Available For Sale - Gross Losses (375) (481) (239) (4,528) (3,449) (3,082) (3,502)
Total Available For Sale 11,891 14,290 13,327 272 2,601 2,793 2,536
Held to Maturity - Gross Gains 7,519 5,935 4,869 2,154 1,838 2,680 1,556
Held to Maturity - Gross Losses (10) — — — — — —
Total Held to Maturity $ 7,509 $ 5,935 $ 4,869 $ 2,154 $ 1,838 $ 2,680 $ 1,556
Credit Ratings on Fixed Maturities
(At Amortized Cost)
December 31, March 31,
Credit Rating 2019 2020 2021 2022 2023 2023 2024
AAA 1.1 % 1.0 % 1.0 % 1.6 % 1.6 % 1.7 % 1.6 %
AA 4.3 4.5 5.1 5.2 5.7 5.3 6.1
A 68.6 69.3 68.9 68.0 68.1 67.9 67.7
BBB 23.1 21.9 22.5 23.0 22.9 23.0 23.1
BB or Lower 2.9 3.3 2.5 2.2 1.7 2.1 1.5
100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
(1) Presented at amortized cost, net of reserves beginning in 2020
(2) Presented at carrying value; includes asset classes such as private equity and real estate funds managed by Global Investments; excludes Corporate driven activity, policy loans, short-term investments, real estate owned assets and FHLB equity balances
Aflac Incorporated and Subsidiaries
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Supplemental Investment Data by Segment
3 Months Ended
December 31, March 31,
2019 2020 2021 2022 2023 2023 2024
Aflac Japan:
¥ 11,784,586 ¥ 11,936,087 ¥ 12,405,531 ¥ 12,617,181 ¥ 12,127,531 ¥ 12,534,653 ¥ 12,486,906
2.33 % 2.38 % 2.72 % 2.78 % 2.90 % 2.57 % 3.14 %
2.64 % 2.59 % 2.60 % 3.06 % 3.18 % 3.13 % 3.24 %
¥ 1,003,885 ¥ 714,124 ¥ 952,038 ¥ 716,964 ¥ 378,541 ¥ 159,440 ¥ 300,570
3.83 % 3.75 % 3.50 % 4.48 % 5.18 % 5.18 % 5.57 %
Aflac U.S.:
$ 14,036 $ 14,848 $ 15,841 $ 16,772 $ 17,075 $ 16,609 $ 17,171
5.70 % 4.90 % 4.87 % 4.72 % 4.88 % 4.74 % 4.87 %
5.40 % 5.18 % 4.94 % 5.39 % 5.53 % 5.46 % 5.57 %
$ 1,835 $ 1,050 $ 2,130 $ 1,701 $ 907 $ 242 $ 519
4.51 % 3.04 % 3.41 % 5.16 % 7.56 % 7.01 % 6.66 %
Hedge Costs/Income Metrics (5)(6)
3 Months Ended
December 31, March 31,
2019 2020 2021 2022 2023 2023 2024
Aflac Japan:
FX hedged notional at end of period (in billions) - forwards (7) $ 8.8 $ 6.0 $ 6.4 $ 4.1 $ — $ 3.7 $ —
FX hedged notional at end of period (in billions) - put options 9.2 13.1 11.6 13.5 24.7 9.8 24.7
Amortized hedge costs for period (in millions) (257) (206) (76) (112) (157) (58) (6)
Corporate and Other (Parent Company):
FX hedged notional at end of period (in billions) - forwards (7) $ 4.9 $ 5.0 $ 5.0 $ 5.0 $ 2.6 $ 5.0 $ 2.3
FX hedged notional at end of period (in billions) - put options 2.0 2.0 1.9 2.6 0.5 10.4 —
Amortized hedge income (costs) for period (in millions) 89 97 57 68 122 29 28
(1) Invested assets, including cash and short term investments, are stated at amortized cost; except for equities, which are at fair value.
(2) Net of investment expenses and amortized hedge costs, year-to-date number reflected on a quarterly average basis
(3) Includes fixed maturity securities, commercial mortgage and other loans, equity securities, and excludes alternative investments in limited partnerships, and any impacts from hedging      activities
(4) Reported on a gross yield basis; excludes investment expenses, external management fees, and amortized hedge costs
(5) See non-U.S. GAAP financial measures for definition of amortized hedge costs/income. Further, the metrics in this table are split to show the hedging of the market value of a portion of the investments in Japan Segment’s " Program" in the "Japan Segment Portfolio Allocation by Currency" table on page 13 of this supplement as well as the corporate hedging activities at Aflac Incorporated
(6) Aflac Japan and the Parent Company utilize foreign currency forwards and options to hedge foreign currency exchange rate risk. The hedge cost/income on the table above reflects our FX forward protection of the hedged portfolio, and hedge costs on one sided options used as caps, and on tail-risk put options.
(7) Notional is reported net of any offsetting positions within Aflac Japan or the Parent Company, respectively.

All values are in US Dollars.

Aflac Incorporated and Subsidiaries
December 31, 2023 March 31, 2024
Amortized<br>Cost (3) Fair <br>Value Amortized<br>Cost (3) Fair <br>Value
JGB $ 39,151 $ 40,222 $ 36,641 $ 37,170
Other 19,517 20,285 17,868 18,647
Total yen denominated 58,668 60,507 54,509 55,817
Program 23,384 25,254 24,986 27,053
Other 2,081 2,902 1,948 2,848
US dollar denominated 25,465 28,156 26,934 29,901
Total $ 84,133 $ 88,663 $ 81,443 $ 85,718
March 31, 2024
(In millions) Amortized Cost (3) % of <br>Total
Government and agencies $ 37,754 44.8 %
Municipalities 2,392 2.8
Mortgage- and asset-backed securities 3,169 3.8
Public utilities 6,909 8.2
Electric 5,704 6.8
Natural Gas 665 .8
Other 540 .6
Sovereign and supranational 835 1.1
Banks/financial institutions 8,517 10.1
Banking 4,895 5.8
Insurance 1,816 2.2
Other 1,806 2.1
Other corporate 24,707 29.2
Basic Industry 2,121 2.5
Capital Goods 3,011 3.6
Communications 2,653 3.1
Consumer Cyclical 1,945 2.3
Consumer Non-Cyclical 5,740 6.8
Energy 2,195 2.6
Other 1,094 1.3
Technology 3,153 3.7
Transportation 2,795 3.3
Total fixed maturity securities $ 84,283 100.0 %
(1) The entire U.S. segment investment portfolio is U.S. dollar denominated.
(2)In the first quarter of 2023, the Utility/Energy subsector was combined with the Natural Gas subsector to better reflect the risk characteristics of those issuers and align more closely with industry   benchmarks.
(3) Net of reserves

All values are in US Dollars.

Aflac Incorporated and Subsidiaries
Long-Term Debt Data
Adjusted Leverage Ratios
(In Millions)
December 31, March 31,
2019 2020 2021 2022 2023 2023 2024
Notes payable $ 6,569 $ 7,899 $ 7,956 $ 7,442 $ 7,364 $ 7,420 $ 7,912
50% of subordinated debentures and perpetual bonds (408) (432) (389) (337) (315) (335) (295)
Pre-funding of debt maturities (348) — — — (211) — (198)
Adjusted debt (1) 5,814 7,467 7,568 7,105 6,839 7,086 7,420
Total Shareholders' Equity 28,959 33,559 17,031 20,140 21,985 19,784 23,537
Accumulated other comprehensive (income) loss:
Unrealized foreign currency translation (gains) losses 1,623 1,109 1,985 3,564 4,069 3,618 4,666
Unrealized (gains) losses on fixed maturity securities (8,548) (10,361) (9,602) 702 (1,139) (1,289) (1,092)
Unrealized (gains) losses on derivatives 33 34 30 27 22 26 26
Effect on change in discount rate assumptions N/A N/A 15,832 2,100 2,560 4,894 1,495
Pension liability adjustment 277 284 166 36 8 29 7
Adjusted book value (1) 22,344 24,625 25,442 26,569 27,505 27,062 28,639
Adjusted capitalization ex-AOCI(1)(2) $ 28,565 $ 32,524 $ 33,398 $ 34,011 $ 34,658 $ 34,482 $ 36,353
Adjusted debt to adjusted capitalization ex-AOCI 20.4 % 23.0 % 22.7 % 20.9 % 19.7 % 20.5 20.4 %
Adjusted capitalization(1)(3) $ 26,665 $ 31,131 $ 31,247 $ 30,411 $ 30,581 $ 30,835 $ 31,680
Adjusted debt to adjusted capitalization 21.8 % 24.0 % 24.2 % 23.4 % 22.4 % 23.0 23.4 % Debt Maturities(4)
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
(In Millions)
March 31, 2024
≤ 1 year 1 > 5 years 5 > 10 years 10 > 20 years 20 years + Total
Senior Notes $ — $ 1,813 $ 2,882 $ 1,074 $ 1,291 $ 7,060
Subordinated debt — — — — 793 793
Total $ — $ 1,813 $ 2,882 $ 1,074 $ 2,084 $ 7,853

(1) See non-U.S. GAAP financial measures for definition of: adjusted debt; adjusted book value; adjusted debt, including 50% of subordinated debentures and perpetual bonds; and adjusted book value, including unrealized foreign currency translation gains and losses and pension liability adjustment

(2) Adjusted capitalization ex-AOCI is the sum of adjusted debt, including 50% of subordinated debentures and perpetual bonds, plus adjusted book value

(3)Adjusted capitalization is sum of adjusted debt, including 50% of subordinated debentures and perpetual bonds, plus adjusted book value, including unrealized foreign currency translation gains and losses and pension liability adjustment

(4) Debt maturity amounts do not include discounts, premiums, deferred charges, or capital lease obligations.

Aflac Incorporated and Subsidiaries

Insurer Financial Strength Ratings
AM Best Moody's S&P JCR R&I
U.S. Operating Companies
Aflac of Columbus A+ Aa3 A+ AA AA
Aflac of New York A+ _ A+ _ _
Continental American Insurance Company A+ _ _ _ _
Japan Operating Company
Aflac Life Insurance Japan Ltd. A+ Aa3 A+ AA AA
Bermuda Operating Company
Aflac Re Bermuda Ltd. _ _ _ AA _
Issuer Credit Ratings
AM Best Moody's S&P JCR R&I
Aflac Incorporated
Long-term Senior Debt a A3 A- A+ A+
Junior Subordinated Debt a- Baa1 BBB _ A-
Aflac of Columbus
Long-term Senior Debt aa _ A+ AA _
Aflac Life Insurance Japan, Ltd.
Long-term Senior Debt aa _ A+ AA _
Subordinated Bonds _ _ _ AA- _
The outlook for all ratings assigned by A.M. Best, S&P, Moody's and R&I is stable. The outlook for all ratings assigned by JCR is positive.
Aflac U.S.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
Years Ended December 31, 3 Months Ended March 31,
%
2019 2020 2021 2022 2023 2023 2024 Change
Revenues:
Net earned premiums
Gross premiums $ 5,818 $ 5,762 $ 5,540 $ 5,467 $ 5,669 $ 1,420 $ 1,489
Assumed (ceded) (11) (4) 73 103 6 8 (14)
Total net earned premiums 5,808 5,758 5,614 5,570 5,675 1,428 1,475 3.3
Adjusted net investment income 720 705 754 755 820 197 206 4.6
Other income excl. realized foreign
exchange gains (losses) 22 102 121 161 128 35 18
Total adjusted revenues 6,550 6,565 6,489 6,486 6,623 1,660 1,699 2.3
Benefits and claims:
Benefits and claims, net
Incurred claims -direct 2,611 2,498 2,183 2,245 2,423 595 765
Incurred claims -assumed (ceded) (5) (1) 89 104 17 9 (12)
Increase in FPB -direct 268 271 463 326 280 88 (41)
Increase in FPB -assumed (ceded) (2) (3) (11) 4 (5) (1) 2
Total benefits and claims, net, excluding <br>  reserve remeasurement N/A N/A 2,724 2,679 2,715 691 715
Reserve remeasurement (gain) loss N/A N/A (85) (124) (283) (40) (30)
Total benefits and claims, net 2,871 2,765 2,639 2,555 2,431 651 686 5.4
Adjusted expenses:
Amortization of deferred policy
acquisition costs 573 570 442 455 490 119 132 10.9
Insurance commissions 590 576 550 553 561 142 141 (.7)
Insurance and other expenses 1,244 1,386 1,502 1,564 1,640 395 384 (2.8)
Total adjusted expenses 2,407 2,532 2,494 2,573 2,691 657 658
Total benefits and adjusted expenses 5,279 5,297 5,132 5,127 5,122 1,308 1,343 2.7
Pretax adjusted earnings $ 1,272 $ 1,268 $ 1,356 $ 1,359 $ 1,501 $ 352 $ 356 1.1
Aflac U.S.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Balance Sheets
(In Millions)
December 31, March 31,
2019 2020 2021 2022 2023 2023 2024
Assets:
Investments and cash $ 16,141 $ 17,949 $ 18,324 $ 15,987 $ 16,718 $ 16,228 $ 16,667
Receivables, net of allowance for credit losses (1) 650 667 574 584 688 720 710
Accrued investment income 174 172 169 184 183 177 186
Deferred policy acquisition costs 3,544 3,450 3,366 3,463 3,573 3,491 3,585
Other assets (1) 436 626 758 784 698 769 703
Total assets $ 20,945 $ 22,864 $ 23,191 $ 21,002 $ 21,861 $ 21,385 $ 21,850
Liabilities and Shareholders' Equity:
Future policy benefits $ 9,404 $ 9,674 $ 14,212 $ 10,870 $ 11,234 $ 11,199 $ 10,913
Policy and contract claims 1,779 2,010 151 200 258 225 340
Other policy liabilities 111 126 119 117 107 118 113
Deferred income taxes 51 235 (328) (243) (311) (157) (223)
Other liabilities 1,803 2,016 2,010 2,080 2,062 2,017 2,091
Shareholders' equity 7,796 8,803 7,027 7,978 8,510 7,984 8,617
Total liabilities & shareholders' equity $ 20,945 $ 22,864 $ 23,191 $ 21,002 $ 21,861 $ 21,385 $ 21,850

(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on

net earnings or total shareholders' equity.

Aflac U.S.
Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Restated to conform to current classifications)
(Dollars In Millions)
Net Total Benefits Total Pretax
Earned % Adjusted % Adjusted % & % % Adjusted % Adjusted %
Period Premiums Change NII Change Revenues Change Claims, Net Change Amort. Change Expenses Change Earn. Change
2019 5,808 1.8 720 (1.0) 6,550 1.7 2,871 (.6) 573 7.3 2,407 6.0 1,272 (1.0)
2020 5,758 (.9) 705 (2.1) 6,565 .2 2,765 (3.7) 570 (.5) 2,532 5.2 1,268 (.3)
2021 5,614 (2.5) 754 7.0 6,489 (1.2) 2,639 (4.6) 442 (22.5) 2,494 (1.5) 1,356 6.9
2022 5,570 (.8) 755 .1 6,486 — 2,555 (3.2) 455 2.9 2,573 3.2 1,359 .2
2023 5,675 1.9 820 8.6 6,623 2.1 2,431 (4.9) 490 7.7 2,691 4.6 1,501 10.4
2022 1 1,413 (.6) 184 4.5 1,639 .7 666 (4.3) 114 2.7 640 6.7 333 .6
2 1,394 (1.0) 193 2.1 1,628 .1 658 (4.6) 113 1.8 627 4.7 343 1.5
3 1,375 (1.3) 185 (3.1) 1,598 (1.1) 616 4.1 114 3.6 638 3.2 345 (14.8)
4 1,388 (.2) 192 (2.5) 1,621 .1 614 (7.0) 115 4.5 667 (1.3) 339 20.2
2023 1 1,428 1.1 197 7.1 1,660 1.3 651 (2.3) 119 4.4 657 2.7 352 5.7
2 1,425 2.2 203 5.2 1,663 2.1 645 (2.0) 120 6.2 648 3.3 369 7.6
3 1,419 3.2 209 13.0 1,661 3.9 510 (17.2) 122 7.0 674 5.6 478 38.6
4 1,403 1.1 211 9.9 1,639 1.1 626 2.0 129 12.2 712 6.7 302 (10.9)
2024 1 1,475 3.3 206 4.6 1,699 2.3 686 5.4 132 10.9 658 .2 356 1.1

Aflac U.S.

Operating Ratios
(Before Management Fee)
12-Mo. Rolling Total Adjusted Combined Pretax
Premium Tot. Ben./ Amort./ Expenses/ Ratio/ Profit
Period Persistency (1) Premium Premium Total Adj. Rev. Total Adj. Rev. Margin
2019 77.7 49.4 9.9 36.7 80.6 19.4
2020 79.3 48.0 9.9 38.6 80.7 19.3
2021 79.7 47.0 7.9 38.4 79.1 20.9
2022 77.3 45.9 8.2 39.7 79.0 21.0
2023 78.6 42.8 8.6 40.6 77.3 22.7
2024 YTD 78.7 46.5 8.9 38.7 79.0 21.0
2022 1 78.7 47.1 8.1 39.0 79.7 20.3
2 78.1 47.2 8.1 38.5 78.9 21.1
3 77.9 44.8 8.3 39.9 78.4 21.6
4 77.3 44.2 8.3 41.1 79.1 20.9
2023 1 77.9 45.6 8.3 39.6 78.8 21.2
2 78.2 45.3 8.4 39.0 77.8 22.2
3 78.7 35.9 8.6 40.6 71.2 28.8
4 78.6 44.6 9.2 43.4 81.6 18.4
2024 1 78.7 46.5 8.9 38.7 79.0 21.0
(1) Includes Network Dental & Vision, Consumer Markets, and Group Premier Life, Absence Management, and Disability Solutions products<br><br>beginning in the first quarter of 2021

Aflac U.S.

Aflac U.S. Sales Results
(Dollars In Millions)
Annl. New Annl.
Prem. % Prem. %
Period In Force Change Sales Change
2019 6,301 1.1 1,580 (1.3)
2020 6,099 (3.2) 1,093 (30.8)
2021 6,003 (1.6) 1,278 16.9
2022 5,967 (.6) 1,483 16.1
2023 6,161 3.3 1,558 5.0
2022 1 5,942 (1.4) 299 19.0
2 5,926 (1.0) 305 15.6
3 5,889 (.7) 334 11.8
4 5,967 (.6) 545 17.4
2023 1 6,023 1.4 315 5.3
2 6,064 2.3 324 6.4
3 6,062 2.9 359 7.5
4 6,161 3.3 559 2.6
2024 1 6,211 3.1 298 (5.2)

Aflac U.S.

Aflac U.S. Product Mix
(New Annualized Premium Sales, Dollars in Millions)
% of % of % of Critical % of Hospital % of Dental/ % of
Period Disability Total Life Total Accident Total Care(1) Total Indemnity Total Vision Total Total
2019 355 22.5 97 6.1 450 28.5 346 21.9 263 16.6 69 4.4 1,580
2020 243 22.3 80 7.3 285 26.1 242 22.2 197 18.0 45 4.1 1,093
2021 296 23.1 114 9.0 321 25.1 273 21.3 209 16.4 65 5.1 1,278
2022 378 25.5 156 10.5 338 22.8 299 20.1 226 15.3 85 5.8 1,483
2023 399 25.6 188 12.0 326 20.9 322 20.7 225 14.5 98 6.3 1,558
2022 1 70 23.3 24 7.9 75 25.3 63 21.2 50 16.7 17 5.6 299
2 77 25.2 26 8.3 75 24.6 63 20.6 45 14.9 19 6.4 305
3 97 28.9 33 10.0 76 22.6 60 18.1 47 14.1 21 6.3 334
4 135 24.9 73 13.4 112 20.5 112 20.6 84 15.4 28 5.2 545
2023 1 79 25.2 26 8.3 74 23.5 64 20.5 50 15.9 21 6.6 315
2 80 24.8 35 10.7 73 22.4 66 20.4 46 14.3 24 7.4 324
3 101 28.2 54 15.0 72 19.9 67 18.6 45 12.6 20 5.7 359
4 139 24.8 73 13.0 107 19.2 124 22.2 83 14.9 33 5.9 559
2024 1 69 23.0 32 10.8 67 22.5 66 22.1 45 15.1 19 6.5 298 Aflac U.S. Sales Force Data
--- --- --- --- --- --- ---
Average Productivity
Weekly (Production/
Recruited Agents Producer Avg. Weekly
Period Career Broker Total Equivalents Producers)
2019 15,227 3,603 18,830 8,184 193,120
2020 11,826 1,861 13,687 5,918 184,706
2021 10,641 5,445 16,086 5,993 213,235
2022 9,550 1,500 11,050 6,186 239,786
2023 10,103 1,463 11,566 6,239 249,663
2022 1 1,987 455 2,442 6,061 49,322
2 2,937 391 3,328 6,067 50,264
3 2,358 339 2,697 6,010 55,599
4 2,268 315 2,583 6,607 82,538
2023 1 2,676 348 3,024 6,108 51,525
2 2,801 399 3,200 6,196 52,361
3 2,407 431 2,838 6,044 59,425
4 2,219 285 2,504 6,608 84,645
2024 1 2,330 346 2,676 5,800 51,432

(1) Includes cancer, critical illness, and hospital intensive care products

Aflac Japan

Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
3 Months Ended March 31,
%
2020 2021 2022 2023 2023 2024 Change
Revenues:
Net earned premiums
Gross premiums 1,450,586 ¥ 1,409,134 ¥ 1,290,527 ¥ 1,246,657 ¥ 1,212,654 ¥ 306,739 ¥ 296,056
Assumed (ceded) (57,974) (55,926) (50,864) (48,578) (84,838) (19,691) (26,197)
Total net earned premiums 1,392,612 1,353,208 1,239,663 1,198,079 1,127,816 287,048 269,859 (6.0)
Net investment income (1)
Yen denominated 142,473 138,397 138,513 149,449 138,073 34,749 34,351 (1.1)
US denominated 157,717 167,541 202,905 215,171 247,277 53,853 62,996 17.0
Net investment income 300,191 305,938 341,419 364,621 385,352 88,602 97,348 9.9
Amortized hedge costs on foreign investments (2) (28,938) (22,816) (8,391) (13,155) (19,773) (7,671) (796) (89.6)
Adjusted net investment income 271,253 283,122 333,028 351,466 365,579 80,931 96,551 19.3
Other income excl. realized foreign
currency gains (losses) 4,869 4,497 4,512 4,442 4,720 1,166 1,183
Total adjusted revenues 1,668,734 1,640,827 1,577,203 1,553,988 1,498,115 369,145 367,593 (.4)
Benefits and claims:
Benefits and claims, net
Incurred claims -direct 727,491 734,471 743,247 788,572 781,774 215,238 224,857
Incurred claims -assumed (ceded) (45,657) (37,806) (31,798) (36,141) (70,748) (16,877) (19,407)
Increase in FPB -direct 292,444 260,200 149,084 73,592 44,121 (7,011) (23,025)
Increase in FPB -assumed (ceded) (6,497) (11,377) (11,425) (5,618) 2,226 2,647 2,331
Total benefits and claims, net, excluding reserve       remeasurement N/A N/A 849,108 820,405 757,373 193,997 184,756
Reserve remeasurement (gain) loss N/A N/A (6,879) (13,337) (13,072) (1,727) (3,883)
Total benefits and claims, net 967,782 945,487 842,229 807,068 744,301 192,270 180,873 (5.9)
Adjusted expenses:
Amortization of deferred policy
acquisition costs 77,286 68,818 43,131 44,123 45,840 11,281 12,289 8.9
Insurance commissions 79,661 79,036 77,449 73,482 68,751 18,215 16,988 (6.7)
Insurance and other expenses 189,203 199,606 202,586 198,493 182,364 43,129 36,880 (14.5)
Total adjusted expenses 346,150 347,460 323,166 316,097 296,955 72,625 66,157
Total benefits and adjusted expenses 1,313,932 1,292,947 1,165,395 1,123,165 1,041,256 264,895 247,029 (6.7)
Pretax adjusted earnings 354,802 ¥ 347,881 ¥ 411,808 ¥ 430,823 ¥ 456,859 ¥ 104,251 ¥ 120,564 15.6
(1) Includes the net interest cash flows from derivatives associated with certain investment strategies
(2) See non-U.S. GAAP financial measures for the definition of amortized hedge costs/income

All values are in US Dollars.

Aflac Japan

Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
3 Months Ended March 31,
%
2020 2021 2022 2023 2023 2024 Change
Revenues:
Net earned premiums
Gross premiums 13,304 $ 13,193 $ 11,765 $ 9,558 $ 8,649 $ 2,318 $ 1,992
Assumed (ceded) (532) (524) (463) (372) (602) (148) (176)
Total net earned premiums 12,772 12,670 11,301 9,186 8,047 2,170 1,816 (16.3)
Net investment income (1)
Yen denominated 1,307 1,296 1,262 1,140 985 263 231 (12.2)
US denominated 1,446 1,569 1,845 1,641 1,755 407 424 4.2
Net investment income 2,753 2,865 3,107 2,782 2,739 669 655 (2.1)
Amortized hedge costs on foreign investments (2) (257) (206) (76) (112) (157) (58) (6) (89.7)
Adjusted net investment income 2,496 2,659 3,031 2,669 2,582 611 648 6.1
Other income excl. realized foreign
currency gains (losses) 45 42 41 35 35 9 9
Total adjusted revenues 15,313 15,371 14,373 11,890 10,664 2,790 2,473 (11.4)
Benefits and claims
Benefits and claims, net
Incurred claims -direct 6,671 6,875 6,776 6,038 5,582 1,626 1,512
Incurred claims -assumed (ceded) (419) (354) (290) (275) (502) (127) (131)
Increase in FPB -direct 2,684 2,437 1,356 562 314 (52) (154)
Increase in FPB -assumed (ceded) (60) (107) (104) (43) 15 19 16
Total benefits and claims, net, excluding reserve       remeasurement N/A N/A 7,738 6,282 5,409 1,466 1,243
Reserve remeasurement (gain) loss N/A N/A (62) (91) (96) (13) (26)
Total benefits and claims, net 8,877 8,851 7,675 6,191 5,313 1,453 1,217 (16.2)
Adjusted expenses:
Amortization of deferred policy
acquisition costs 709 644 393 338 326 85 83 (2.4)
Insurance commissions 731 740 706 563 491 138 114 (17.4)
Insurance and other expenses 1,734 1,873 1,843 1,517 1,299 326 248 (23.9)
Total adjusted expenses 3,174 3,257 2,942 2,417 2,117 549 445
Total benefits and adjusted expenses 12,051 12,108 10,618 8,609 7,430 2,002 1,663 (16.9)
Pretax adjusted earnings 3,261 $ 3,263 $ 3,756 $ 3,281 $ 3,234 $ 788 $ 810 2.8
(1) Includes the net interest cash flows from derivatives associated with certain investment strategies
(2) See non-U.S. GAAP financial measures for definition of amortized hedge costs/income

All values are in US Dollars.

Aflac Japan

Balance Sheets
(In Millions)
December 31, March 31,
2019 2020 2021 2022 2023 2023 2024
Assets:
Investments and cash ¥ 12,847,994 ¥ 13,080,154 ¥ 13,645,902 ¥ 12,777,746 ¥ 12,566,939 ¥ 12,976,202 ¥ 12,993,051
Receivables, net of allowance for credit losses 28,219 20,782 22,439 23,138 24,848 25,467 60,415
Accrued investment income 65,485 62,722 67,493 76,489 74,666 68,075 72,487
Deferred policy acquisition costs 721,341 723,579 745,510 766,506 788,394 771,279 792,504
Other assets 308,411 320,351 386,832 387,065 946,644 682,018 948,349
Total assets ¥ 13,971,450 ¥ 14,207,588 ¥ 14,868,176 ¥ 14,030,944 ¥ 14,401,491 ¥ 14,523,041 ¥ 14,866,806
Liabilities and Shareholders' Equity:
Future policy benefits ¥ 8,924,868 ¥ 9,175,501 ¥ 11,755,704 ¥ 10,315,140 ¥ 10,444,044 ¥ 10,768,070 ¥ 10,299,213
Policy and contract claims 315,477 328,778 — 28 465 620 653
Unearned premiums 453,133 361,010 284,045 227,732 192,595 218,038 185,338
Other policyholders' funds 801,588 808,429 877,690 880,989 874,854 889,926 882,723
Income taxes (prim. deferred) 618,901 478,969 36,166 114,688 95,297 101,778 167,677
Other liabilities 357,135 253,219 502,633 575,554 576,879 694,739 796,972
Shareholders' equity 2,500,349 2,801,682 1,411,938 1,916,812 2,217,357 1,849,870 2,534,230
Total liabilities & shareholders' equity ¥ 13,971,450 ¥ 14,207,588 ¥ 14,868,176 ¥ 14,030,944 ¥ 14,401,491 ¥ 14,523,041 ¥ 14,866,806

Aflac Japan

Balance Sheets
(In Millions)
December 31, March 31,
2019 2020 2021 2022 2023 2023 2024
Assets:
Investments and cash $ 117,269 $ 126,378 $ 118,639 $ 96,290 $ 88,606 $ 97,178 $ 85,814
Receivables, net of allowance for credit losses 258 201 195 174 175 191 399
Accrued investment income 598 606 587 576 526 510 479
Deferred policy acquisition costs 6,584 6,991 6,482 5,776 5,559 5,776 5,234
Other assets 2,815 3,095 3,363 2,917 6,675 5,108 6,263
Total assets $ 127,523 $ 137,271 $ 129,266 $ 105,734 $ 101,541 $ 108,762 $ 98,189
Liabilities and Shareholders' Equity:
Future policy benefits $ 81,461 $ 88,652 $ 102,206 $ 77,733 $ 73,638 $ 80,642 $ 68,022
Policy and contract claims 2,879 3,177 — — 3 5 4
Unearned premiums 4,136 3,488 2,470 1,716 1,358 1,633 1,224
Other policyholders' funds 7,316 7,811 7,631 6,639 6,169 6,665 5,830
Income taxes (prim. deferred) 5,650 4,630 314 781 619 681 1,088
Other liabilities 3,260 2,447 4,369 4,337 4,067 5,203 5,264
Shareholders' equity 22,820 27,068 12,276 14,528 15,687 13,935 16,757
Total liabilities & shareholders' equity $ 127,523 $ 137,271 $ 129,266 $ 105,734 $ 101,541 $ 108,762 $ 98,189

Aflac Japan

Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Yen In Millions)
Net Total Benefits Total Pretax
Earned % Adjusted % Adjusted % & % % Adjusted % Adjusted %
Period Premiums Change NII Change Revenues Change Claims, Net Change Amort. Change Expense Change Earn. Change
2019 1,392,612 (1.1) 271,253 2.2 1,668,734 (.6) 967,782 (1.6) 77,286 (1.5) 346,150 1.6 354,802 .2
2020 1,353,208 (2.8) 283,122 4.4 1,640,827 (1.7) 945,487 (2.3) 68,818 (11.0) 347,459 .4 347,881 (2.0)
2021 1,239,663 (8.4) 333,028 17.6 1,577,203 (3.9) 842,229 (10.9) 43,131 (37.3) 323,166 (7.0) 411,808 18.4
2022 1,198,079 (3.4) 351,466 5.5 1,553,988 (1.5) 807,068 (4.2) 44,123 2.3 316,097 (2.2) 430,823 4.6
2023 1,127,816 (5.9) 365,579 4.0 1,498,115 (3.6) 744,301 (7.8) 45,840 3.9 296,955 (6.1) 456,859 6.0
2022 1 304,884 (2.8) 79,042 5.9 385,000 (1.2) 206,890 (4.0) 10,886 3.3 77,095 (.8) 101,015 4.7
2 302,213 (3.1) 94,004 8.4 397,358 (.5) 204,807 (3.7) 10,964 2.5 79,022 (.3) 113,529 5.5
3 293,667 (4.5) 92,241 9.8 387,113 (1.4) 196,121 (4.8) 11,073 2.9 77,498 (4.0) 113,494 7.4
4 297,315 (3.1) 86,180 (1.7) 384,517 (2.8) 199,250 (4.3) 11,201 .6 82,482 (3.5) 102,785 .8
2023 1 287,048 (5.9) 80,931 2.4 369,145 (4.1) 192,270 (7.1) 11,281 3.6 72,625 (5.8) 104,251 3.2
2 283,377 (6.2) 87,963 (6.4) 372,544 (6.2) 186,310 (9.0) 11,359 3.6 72,808 (7.9) 113,426 (.1)
3 285,305 (2.8) 98,866 7.2 385,363 (.5) 185,855 (5.2) 11,435 3.3 73,068 (5.7) 126,440 11.4
4 272,085 (8.5) 97,819 13.5 371,063 (3.5) 179,866 (9.7) 11,766 5.0 78,454 (4.9) 112,742 9.7
2024 1 269,859 (6.0) 96,551 19.3 367,593 (.4) 180,873 (5.9) 12,289 8.9 66,157 (8.9) 120,564 15.6

Aflac Japan

Operating Ratios
(Before Management Fee)
12-Mo. Rolling Tot. Ben./ Tot. Adj. Combined Pretax
Premium Tot. Ben./ Premiums Amort./ Expenses/ Ratio/ Profit
Period Persistency(1) Premium (3rd sector) Premium Total Adj. Rev. Total Adj. Rev. Margin
2019 94.4 69.5 59.3 5.5 20.7 78.7 21.3
2020 95.1 69.9 59.7 5.1 21.2 78.8 21.2
2021 94.3 67.9 58.7 3.5 20.5 73.9 26.1
2022 94.1 67.4 58.5 3.7 20.3 72.3 27.7
2023 93.4 66.0 56.2 4.1 19.8 69.5 30.5
2022 1 94.3 67.9 58.5 3.6 20.0 73.8 26.2
2 94.3 67.8 58.5 3.6 19.9 71.4 28.6
3 94.3 66.8 59.4 3.8 20.0 70.7 29.3
4 94.1 67.0 57.7 3.8 21.5 73.3 26.7
2023 1 93.9 67.0 57.7 3.9 19.7 71.8 28.2
2 93.8 65.7 56.2 4.0 19.5 69.6 30.4
3 93.5 65.1 54.8 4.0 19.0 67.2 32.8
4 93.4 66.1 56.2 4.3 21.1 69.6 30.4
2024 1 93.4 67.0 57.5 4.6 18.0 67.2 32.8

(1) Premium persistency presented on a 12-month rolling basis for all periods, rather than year to date

Aflac Japan

Aflac Japan Sales Results
(Yen In Millions, unless otherwise noted)
Annl. Third Sector
Prem. New Annl. Total
In Force % Prem. % New Annual. %
Period (Billions) Change Sales Change Premium Sales Change
2019 1,489.3 (2.5) 72,836 (18.0) 79,697 (16.9)
2020 1,426.5 (4.2) 45,110 (38.1) 50,852 (36.2)
2021 1,360.6 (4.7) 48,977 8.6 54,764 7.7
2022 1,301.0 (4.4) 47,998 (2.0) 54,765 —
2023 1,246.4 (4.2) 52,234 8.8 60,730 10.9
2022 1 1,345.6 (4.6) 10,679 (19.0) 11,925 (14.8)
2 1,332.0 (4.3) 11,372 (6.2) 12,731 (6.4)
3 1,315.7 (4.3) 12,639 12.1 13,884 10.2
4 1,301.0 (4.4) 13,308 1.7 16,224 11.4
2023 1 1,281.4 (4.8) 10,952 2.6 13,213 10.8
2 1,268.4 (4.8) 13,964 22.8 16,112 26.6
3 1,257.4 (4.4) 13,606 7.7 15,600 12.4
4 1,246.4 (4.2) 13,711 3.0 15,805 (2.6)
2024 1 1,232.6 (3.8) 10,767 (1.7) 12,534 (5.1)

Aflac Japan

Aflac Japan Product Mix
(New Annualized Premium Sales, Yen In Billions)
% of % of Income % of Child % of % of Ordinary % of % of
Period Cancer Total Medical Total Support Total Endowment Total WAYS Total Life Other Total Other Total Total
2019 47.2 59.2 24.6 31.0 1.0 1.2 .2 .2 .4 .5 5.9 7.4 .4 .5 79.7
2020 28.8 56.6 15.9 31.2 .5 1.0 .2 .4 .4 .7 4.8 9.5 .3 .6 50.9
2021 27.0 49.2 20.4 37.2 .3 .5 .2 .3 .4 .8 4.9 9.0 1.6 3.0 54.8
2022 30.9 56.5 14.6 26.6 .7 1.3 .2 .3 1.9 3.5 4.5 8.1 2.0 3.7 54.8
2023 38.9 64.1 12.3 20.2 .3 .4 .2 .4 4.1 6.8 3.9 6.5 1.0 1.6 60.7
2022 1 6.4 53.0 3.8 31.4 .1 1.1 .1 .3 .1 .7 1.1 9.0 .5 4.5 11.9
2 6.8 53.4 3.8 29.9 .3 2.2 — .2 .1 .8 1.2 9.2 .6 4.3 12.7
3 8.4 60.1 3.7 26.4 .2 1.2 — .2 .1 .6 1.0 7.7 .5 3.8 13.9
4 9.5 58.2 3.4 20.8 .1 .8 .1 .4 1.6 10.1 1.1 7.2 .4 2.5 16.2
2023 1 7.9 59.9 2.7 20.8 .1 .6 .1 .6 1.2 8.9 1.0 7.3 .2 1.9 13.2
2 10.9 67.7 2.8 17.5 .1 .4 .1 .4 1.0 6.6 1.0 6.1 .2 1.3 16.1
3 10.3 65.6 3.1 20.0 .1 .4 .1 .4 .9 6.0 .9 6.1 .2 1.5 15.6
4 9.9 62.5 3.6 22.8 .1 .4 — .3 .9 6.0 1.1 6.6 .2 1.4 15.8
2024 1 7.9 63.2 2.7 21.1 — .3 — .3 .7 5.3 1.0 8.1 .2 1.7 12.5

Aflac Japan

Aflac Japan Sales Force Data
Number of Agencies by Type Sales Contribution by Agency Type
Period Individual/ Independent Corporate Affiliated<br>Corporate Bank Total Individual/ Independent Corporate Affiliated<br>Corporate Bank Licensed Sales<br>Associates(1) Recruited<br>Agencies
2019 7,683 1,343 367 9,393 45.7 50.0 4.3 109,265 77
2020 7,231 1,312 361 8,904 52.3 42.6 5.1 111,886 48
2021 6,779 1,283 360 8,422 51.1 43.7 5.2 111,854 62
2022 6,159 1,239 359 7,757 49.5 46.5 4.0 110,259 38
2023 5,751 1,203 360 7,314 46.7 50.0 3.3 113,010 24
2024 YTD 5,659 1,191 360 7,210 48.9 48.0 3.1 112,645 12
2022 1 6,447 1,266 360 8,073 48.9 46.5 4.6 109,873 6
2 6,335 1,255 359 7,949 48.4 48.1 3.5 110,096 12
3 6,260 1,246 359 7,865 49.3 46.2 4.5 110,400 12
4 6,159 1,239 359 7,757 51.2 45.4 3.4 110,259 8
2023 1 6,056 1,232 359 7,647 50.9 45.4 3.7 109,769 4
2 5,947 1,219 360 7,526 44.8 52.5 2.7 112,593 5
3 5,843 1,211 360 7,414 44.4 51.9 3.7 112,795 6
4 5,751 1,203 360 7,314 47.7 49.2 3.1 113,010 9
2024 1 5,659 1,191 360 7,210 48.9 48.0 3.1 112,645 12

(1) Excludes Dai-ichi Life, banks, Japan Post Group and Daido Life

Aflac Japan

Yen/Dollar Exchange Rates
Yearly
Closing Qtr Cum %
Period Rate(1) Avg Avg Change
2019 109.56 N/A 109.07 1.2
2020 103.50 N/A 106.86 2.1
2021 115.02 N/A 109.79 (2.7)
2022 132.70 N/A 130.17 (15.7)
2023 141.83 N/A 140.57 (7.4)
2022 1 122.39 116.18 116.18 (8.9)
2 136.68 129.39 122.79 (12.2)
3 144.81 137.08 126.65 (14.3)
4 132.70 141.87 130.17 (15.7)
2023 1 133.53 132.30 132.30 (12.2)
2 144.99 137.53 134.97 (9.0)
3 149.58 144.97 138.38 (8.5)
4 141.83 148.11 140.57 (7.4)
2024 1 151.41 148.67 148.67 (11.0)
(1) Closing rate is based on the latest available and published MUFG Bank Ltd. TTM mid-day exchange rate.

Corporate and Other

Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
3 Months Ended March 31,
%
2020 2021 2022 2023 2023 2024 Change
Revenues:
Total net earned premiums $ 200 $ 194 $ 180 $ 145 $ 400 $ 91 $ 165 81.3
Net investment income (1) 88 80 (73) 30 (77) 7 51 628.6
Amortized hedge income (2) 89 97 57 68 121 29 28 (3.4)
Adjusted net investment income 177 177 (16) 98 44 36 79 119.4
Other income 15 13 11 24 15 2 3 50.0
Total adjusted revenues 393 384 175 267 460 129 247 91.5
Benefits and expenses:
Total net benefits and claims 194 180 161 141 467 46 107 132.6
Interest expense 133 164 165 162 144 33 36 9.1
Other adjusted expenses 137 155 142 181 273 57 107 87.7
Total benefits and adjusted expenses 464 499 469 485 885 136 250 83.8
Pretax adjusted earnings $ (72) $ (115) $ (293) $ (218) $ (425) $ (7) $ (3) 57.1
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of 32 and 51 for the three-month periods ended March 31, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of 33 and 52 for the three-month periods ended March 31, 2024, and 2023, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings.
(2) See non-U.S. GAAP financial measures for the definition of amortized hedge cost/income

All values are in US Dollars.

Non-U.S. GAAP Financial Measures

This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).

The Company defines the non-U.S. GAAP financial measures included in this document as follows:

• Adjusted book value is the U.S. GAAP book value (representing total shareholders’ equity), less AOCI as recorded on the U.S. GAAP balance sheet. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude AOCI, which fluctuates due to market movements that are outside management’s control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively.
• Adjusted book value including unrealized foreign currency translation gains and losses is adjusted book value plus unrealized foreign currency translation gains and losses. Adjusted book value including unrealized foreign currency translation gains and losses per common share is adjusted book value plus unrealized foreign currency translation gains and losses at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value including unrealized foreign currency translation gains and losses, and its related per share financial measure, important as they exclude certain components of AOCI, which fluctuate due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measures for adjusted book value including unrealized foreign currency translation gains and losses and adjusted book value including unrealized foreign currency translation gains and losses per common share are total book value and total book value per common share, respectively.
• Adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is adjusted book value plus unrealized foreign currency translation gains and losses and pension liability adjustment. The Company considers adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment important as it excludes certain components of AOCI, which fluctuates due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measure for adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is total book value.
• Adjusted debt is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding 50% of subordinated debentures and perpetual bonds and all pre-funding of debt maturities. The Company considers adjusted debt important as it measures outstanding debt consistently with expectations of the Company’s rating agency stakeholders. The most comparable U.S. GAAP financial measure for adjusted debt is notes payable.
• Adjusted debt including 50% of subordinated debentures and perpetual bonds is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding pre-funding of debt maturities. The Company considers adjusted debt including 50% of subordinated debentures and perpetual bonds important as it measures outstanding debt consistently with expectations of the Company’s rating agency stakeholders. The most comparable U.S. GAAP financial measure for adjusted debt including 50% of subordinated debentures and perpetual bonds is notes payable.
• 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 average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management’s control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively.
--- ---
• Adjusted earnings excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management’s control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively.
• Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign exchange risks in the Company's Japan segment or in Corporate and other. These amortized hedge costs/income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the contractual term of the derivative. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income.
• Adjusted net investment gains and losses are net investment gains and losses adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are both reclassified to net investment income, and iii) the impact of interest from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management’s control, while excluding the components that are within management’s control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses.
• Adjusted net investment income is net investment income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, and ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and losses to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company’s investments and related hedging strategies. The most comparable U.S. GAAP financial measure for adjusted net investment income is net investment income.
• Adjusted return on equity is adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income (AOCI). Management uses adjusted return on equity to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The Company considers adjusted return on equity important as it excludes components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity.

34

Document

aflac-incorporatedx4xpro.jpg

First Quarter 2024

Earnings Call

Video Update

Max K. Brodén

May 1, 2024

For more information contact:

Investor and Rating Agency Relations

800.235.2667

aflacir@aflac.com

Aflac Worldwide Headquarters

1932 Wynnton Road

Columbus, GA 31999

Preliminary note: Forward-Looking Information and Non-U.S. GAAP Financial Measures

Forward-Looking Information

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 meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. The company desires to take advantage of these provisions. This transcript contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” “may,” “should,” “estimate,” “intends,” “projects,” “will,” “assumes,” “potential,” “target,” "outlook" or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements.

The company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:

•difficult conditions in global capital markets and the economy, including inflation

•defaults and credit downgrades of investments

•global fluctuations in interest rates and exposure to significant interest rate risk

•concentration of business in Japan

•limited availability of acceptable yen-denominated investments

•foreign currency fluctuations in the yen/dollar exchange rate

•differing interpretations applied to investment valuations

•significant valuation judgments in determination of expected credit losses recorded on the Company's investments

•decreases in the Company's financial strength or debt ratings

•decline in creditworthiness of other financial institutions

•the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners

•deviations in actual experience from pricing and reserving assumptions

•ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives

•interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems

•subsidiaries' ability to pay dividends to the Parent Company

•inherent limitations to risk management policies and procedures

•operational risks of third-party vendors

•tax rates applicable to the Company may change

•failure to comply with restrictions on policyholder privacy and information security

•extensive regulation and changes in law or regulation by governmental authorities

•competitive environment and ability to anticipate and respond to market trends

•catastrophic events, including, but not limited to, as a result of climate change, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events

•ability to protect the Aflac brand and the Company's reputation

•ability to effectively manage key executive succession

•changes in accounting standards

•level and outcome of litigation or regulatory inquiries

•allegations or determinations of worker misclassification in the United States

Non-U.S. GAAP Financial Measures and Reconciliations

This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial

measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Definitions of the Company’s non-U.S. GAAP financial measures and applicable reconciliations to the most comparable U.S. GAAP measures are provided in the presentation slides that accompany this transcript.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).

Max K. Brodén

Q1 2024 CFO Video Update

May 1, 2024

Thank you for joining me as I provide a financial update on Aflac Incorporated's results for the first quarter of 2024.

For the quarter, adjusted earnings per diluted share increased 7.1% year over year to $1.66, with a $0.08 negative impact from FX in the quarter. In this quarter, remeasurement gains totaled $56 million, and variable investment income ran $11 million, or $0.01 per share, below our long-term return expectations.

Adjusted book value per share including foreign currency translation gains and losses increased 8.7%, and the adjusted ROE was 13.7%, an acceptable spread to our cost of capital. Overall, we view these results in the quarter as solid.

Starting with our Japan segment, net earned premiums for the quarter declined 6.0%. This decline reflects a ¥6.2 billion negative impact from paid up policies. In addition, there is a ¥7 billion negative impact from internal reinsurance transactions1 and a ¥1.4 billion positive impact from deferred profit liability. Lapses were somewhat elevated, but within our expectations. At the same time, policies in force declined 2.3%.

Japan’s total benefit ratio came in at 67.0% for the quarter, flat year over year, and the third sector benefit ratio was 57.5%, down approximately 20 basis points year over year. We continue to experience favorable actual to expected on our well-priced, large and mature in-force block. We estimate the impact from remeasurement gains to be 144 basis points favorable to the benefit ratio in Q1 2024. Long-term experience trends, as it relates to treatment of cancer and hospitalization, continue to be in place, leading to continued favorable underwriting experience.

Persistency remained solid with a rate of 93.4%, which was down 50 basis points year over year, but flat quarter over quarter. We tend to experience some elevation in lapses as customers update and refresh their coverage. This change in persistency is not out of line with expectations.

Our expense ratio in Japan was 18.0%, down 170 basis points year over year, driven primarily by good expense control and to some extent, by expense allowance from reinsurance transactions.

Adjusted net investment income in yen terms was up 19.3%, mainly by lower hedge costs and favorable impact from FX on USD investments in yen terms as well as a higher return on our alternatives portfolio compared to first quarter 2023. This was offset by the transfer of assets due to reinsurance in the previous year leading to a lower asset base and lower floating rate income.

The pretax margin for Japan in the quarter was 32.8%, up 460 basis points year over year; a very good result.

Turning to U.S. results, net earned premium was up 3.3%. Persistency increased 80 basis points year over year to 78.7%. This is a function of a poor persistency quarter falling out of the metric and stabilization across numerous product categories.

Our total benefit ratio came in at 46.5%, 90 basis points higher than Q1 2023, driven by product mix and lower remeasurement gains than a year ago. We estimate that remeasurement gains impacted the benefit ratio by 200 basis points in the quarter. Claims utilization has stabilized, but as we incorporate more recent experience into our reserve models, we have released some reserves.

Our expense ratio in the U.S. was 38.7%, down 90 basis points year over year, primarily driven by platforms improving scale and lower acquisition expenses.

1 Excludes the impact from reinsurance novated to Aflac Re in December 2023 whereby Aflac Re assumed the duties, obligations and liabilities through a reinsurance of business ALIJ previously ceded to an external reinsurer.

Our growth initiatives – group life & disability, network dental and vision and direct to consumer – increased our total expense ratio by 230 basis points. We would expect this impact to decrease going forward as these businesses grow to scale and improve their profitability.

Adjusted net investment income in the U.S. was up 4.6%, mainly driven by higher yields on both our alternatives and fixed-rate portfolios.

Profitability in the U.S. segment was solid, with a pretax margin of 21.0%, driven primarily by net earned premiums growth and improved net investment income year over year.

Our total commercial real estate watchlist remains approximately $1.2 billion, with around $600 million of these in active foreclosure proceedings. As a result of these current low valuation marks, we increased our CECL reserves associated with these loans by $10 million in this quarter. We also moved one property into real estate owned, which resulted in a $3.7 million gain. We continue to believe that the current distressed market does not reflect the true intrinsic economic value of our portfolio, which is why we are confident in our ability to take ownership of these quality assets, manage them through this cycle and maximize our recoveries.

Our portfolio of first lien senior secured middle market loans continue to perform well, with losses well below our expectations for this point in the cycle.

In our corporate segment, we recorded a pretax loss of $3 million. Adjusted net investment income was $43 million higher than last year due to higher volume of investable assets at Aflac Re and a lower volume of tax credit investments at Aflac Inc. These tax credit investments impacted the corporate net investment income line for U.S. GAAP purposes negatively by $32 million with an associated credit to the tax line. The net impact to our bottom line was a positive $4 million in the quarter. To date, these investments are performing well and in line with expectations.

We are continuing to build out our reinsurance platform, and I am pleased with the outcome and performance.

Our capital position remains strong, and we ended the quarter with an SMR above 1,100% in Japan, and our combined RBC, while not finalized, we estimate to be greater than 650%. Unencumbered holding company liquidity stood at $3.7 billion, $2.0 billion above our minimum balance. These are strong capital ratios, which we actively monitor, stress and manage to withstand credit cycles as well as external shocks. U.S. Statutory impairments were a release of $3 million, and Japan FSA impairments were ¥3.6 billion, or roughly $24 million in Q1. This is well within our expectations and with limited impact to both earnings and capital.

Adjusted leverage remains at a comfortable 20.4%, at the low end of our leverage corridor of 20% to 25%. In the quarter we issued ¥123.6 billion in multiple tranches with an average coupon of 1.72%. As we hold approximately 60% of our debt denominated in yen, our leverage will fluctuate with movements in the yen/dollar rate. This is intentional and part of our enterprise hedging program – protecting the economic value of Aflac Japan in U.S. dollar terms.

We repurchased $750 million of our own stock and paid dividends of $288 million in Q1, offering good relative IRR on these capital deployments. We will continue to be flexible and tactical in how we manage the balance sheet and deploy capital in order to drive strong risk-adjusted ROE with a meaningful spread to our cost of capital.

I look forward to discussing our results in further detail on tomorrow's earnings call. Thank you for your time and attention.

a1q24maxsteleconferencep

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 meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. The company desires to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” “may,” “should,” “estimate,” “e,” “intends,” “projects,” “will,” “assumes,” “potential,” “target,” "outlook" or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements. The company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements: Non-U.S. GAAP Financial Measures and Reconciliations This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations. Definitions of the Company’s non-U.S. GAAP financial measures and applicable reconciliations to the most comparable U.S. GAAP measures are provided as appropriate. Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM). • difficult conditions in global capital markets and the economy, including inflation • defaults and credit downgrades of investments • global fluctuations in interest rates and exposure to significant interest rate risk • concentration of business in Japan • limited availability of acceptable yen-denominated investments • foreign currency fluctuations in the yen/dollar exchange rate • differing interpretations applied to investment valuations • significant valuation judgments in determination of expected credit losses recorded on the Company's investments • decreases in the Company's financial strength or debt ratings • decline in creditworthiness of other financial institutions • the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners • deviations in actual experience from pricing and reserving assumptions • ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives • interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems • subsidiaries' ability to pay dividends to the Parent Company • inherent limitations to risk management policies and procedures • operational risks of third-party vendors • tax rates applicable to the Company may change • failure to comply with restrictions on policyholder privacy and information security • extensive regulation and changes in law or regulation by governmental authorities • competitive environment and ability to anticipate and respond to market trends • catastrophic events, including, but not limited to, as a result of climate change, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events • ability to protect the Aflac brand and the Company's reputation • ability to effectively manage key executive succession • changes in accounting standards • level and outcome of litigation or regulatory inquiries • allegations or determinations of worker misclassification in the United States 2

Max K. Brodén Executive Vice President CFO, Aflac Incorporated

1Q24 – Another Solid Quarter $1.94 $3.25 1Q23 1Q24 Net EPS $1.55 $1.66 1Q23 1Q24 Adjusted EPS* +7.1%+67.5% 4 $1.55 $1.74 1Q23 1Q24 Adjusted EPS ex-FX* +12.3% *A non-US GAAP financial measure. See appendix for information about this measure.

*A non-US GAAP financial measure. See appendix for information about this measure. 23.8 33.0 14.2 13.7 1Q23 1Q24 ROE (%) Adjusted ROE (%)* Strong ROE 5

Aflac Japan Maintains Solid Persistency 93.9 93.8 93.5 93.4 93.4 1Q23 2Q23 3Q23 4Q23 1Q24 6

Aflac Japan 1Q24: Favorable experience, good expense control and very strong margin Benefit Ratio % 68 66 Expense Ratio % 21 19 Pretax Profit Margin % 31 29 7 67 18 32.8 2024 Outlook Ranges YTD Actual Operating Ratios

Aflac U.S. Improving Persistency 77.9 78.2 78.7 78.6 78.7 1Q23 2Q23 3Q23 4Q23 1Q24 8

Aflac U.S. 1Q24: Providing customers value, scaling growth and solid margin Benefit Ratio % 47 45 Expense Ratio % 40 38 Pretax Profit Ratio % 21 19 9 46.5 38.7 2024 Outlook Ranges 21.0 YTD Actual Operating Ratios

Strong Capital Ratios Combined Risk-Based Capital Ratio 1 (Fiscal year ending December 31, %) 531 550 659 732 710 0 200 400 600 800 2019 2020 2021 2022 2023 1Q24 >650 1 Combined RBC ratio is the aggregated ratio of four subsidiaries: American Family Life Assurance Company of Columbus (Aflac); Continental American Insurance Company (CAIC), branded as Aflac Group Insurance (AGI); American Family Life Assurance Company of New York (Aflac New York); and Tier One Insurance Company (TOIC) 961 881 917 941 889 0 200 400 600 800 1,000 1,200 1,400 2019 2020 2021 2022 2023 2024 Solvency Margin Ratio (Fiscal year ending March 31, %) 10 >1,100

Adjusted Leverage Ratio*: Comfortably at lower end of 20-25% range 20.5 19.4 18.8 19.7 20.4 15 20 25 1Q23 2Q23 3Q23 4Q23 1Q24 *Adjusted Leverage ratio is computed as: Adjusted debt to Adjusted capitalization ex-AOCI. See Appendix for information about this measure. 11 % % %

Continued Tactical Capital Deployment Dividends and Share Repurchase ($ millions) 257 252 248 245 288 700 700 700 700 750 1Q23 2Q23 3Q23 4Q23 1Q24 Dividends Repurchase 12

Appendix

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 average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management’s control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non- recurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively. • Adjusted earnings excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management’s control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively. • Adjusted book value including unrealized foreign currency translation gains and losses is adjusted book value plus unrealized foreign currency translation gains and losses. Adjusted book value including unrealized foreign currency translation gains and losses per common share is adjusted book value plus unrealized foreign currency translation gains and losses at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value including unrealized foreign currency translation gains and losses, and its related per share financial measure, important as they exclude certain components of AOCI, which fluctuate due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measures for adjusted book value including unrealized foreign currency translation gains and losses and adjusted book value including unrealized foreign currency translation gains and losses per common share are total book value and total book value per common share, respectively. • Adjusted return on equity is adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income (AOCI). Management uses adjusted return on equity to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The Company considers adjusted return on equity important as it excludes components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity. • . 15

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, excluding AOCI. The Company considers adjusted return on equity excluding foreign currency impact important as it excludes changes in foreign currency and components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity excluding foreign currency impact is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity • Adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is adjusted book value plus unrealized foreign currency translation gains and losses and pension liability adjustment. The Company considers adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment important as it excludes certain components of AOCI, which fluctuates due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measure for adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is total book value. • Adjusted debt is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding 50% of subordinated debentures and perpetual bonds and all pre-funding of debt maturities. The Company considers adjusted debt important as it measures outstanding debt consistently with expectations of the Company’s rating agency stakeholders. The most comparable U.S. GAAP financial measure for adjusted debt is notes payable. • Adjusted debt including 50% of subordinated debentures and perpetual bonds is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding pre-funding of debt maturities. The Company considers adjusted debt including 50% of subordinated debentures and perpetual bonds important as it measures outstanding debt consistently with expectations of the Company’s rating agency stakeholders. The most comparable U.S. GAAP financial measure for adjusted debt including 50% of subordinated debentures and perpetual bonds is notes payable. • Adjusted book value is the U.S. GAAP book value (representing total shareholders’ equity), less AOCI as recorded on the U.S. GAAP balance sheet. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude AOCI, which fluctuates due to market movements that are outside management’s control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively. 16

Reconciliation of Net Earnings Per Diluted Share to Adjusted Earnings per Diluted Share Three Months Ended March 31 2024 2023 %Change Net Earnings per diluted share $3.25 $1.94 67.5% Items impacting net earnings Adjusted net investment (gains) losses (1.75) (0.34) Other and non-recurring (income) loss — — Income tax (benefit) expense on items excluded from adjusted earnings 0.15 (0.04) Adjusted earnings per diluted share 1.66 1.55 7.1% Current period foreign currency impact1 0.08 N/A Adjusted earnings per diluted share excluding current period foreign currency impact2 $1.74 $1.55 12.3% 1Prior period foreign currency impact reflected as “N/A” to isolate change for current period only 2 Amounts excluding current period foreign currency impacts are computed using the average foreign currency exchange rate for the comparable prior year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. 17

1Prior period foreign currency impact reflected as “N/A” to isolate change for current period only 2 Amounts excluding current period foreign currency impacts are computed using the average foreign currency exchange rate for the comparable prior year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Reconciliation of Net Earnings to Adjusted Earnings1 Three Months Ended March 31, in millions of Dollars 2024 2023 %Change Net Earnings $1,879 $1,188 58.2% Items impacting net earnings Adjusted net investment (gains) losses (1,009) (209) Other and non-recurring (income) loss 2 — Income tax (benefit) expense on items excluded from adjusted earnings 89 (26) Adjusted earnings 961 953 0.8% Current period foreign currency impact1 44 N/A Adjusted earnings excluding current period foreign currency impact2 $1,005 $953 5.5% 18

Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE1 Three Months Ended March 31, in millions of Dollars 1Amounts presented may not foot due to rounding 2 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders’ equity 3See separate reconciliation of net income to adjusted earnings 4Impact of foreign currency is calculated by restating all foreign currency components of the income statement to the weighted average foreign currency exchange rate for the comparable prior year period. The impact is the difference of the restated adjusted earnings compared to reported adjusted earnings. For comparative purposes, only current period income is restated using the weighted average prior period exchange rate, which eliminates the foreign currency impact for the current period. This allows for equal comparison of this financial measure 2024 2023 U.S. GAAP ROE - Net earnings2 33.0% 23.8% Impact of excluding unrealized foreign currency translation gains (losses) (5.1) (3.2) Impact of excluding unrealized gains (losses) on securities and derivatives 1.3 0.2 Impact of excluding effect of changes in discount rate assumptions (2.4) (3.1) Impact of excluding pension liability adjustment — — Impact of excluding AOCI (6.2) (6.1) U.S. GAAP ROE - less AOCI 26.8 17.7 Differences between adjusted earnings and net earnings3 (13.1) (3.5) Adjusted ROE - reported 13.7 14.2 Less: Impact of foreign currency4 (0.6) N/A Adjusted ROE, excluding impact of foreign currency 14.3 14.2 19

1Amounts may not foot due to rounding 2 Adjusted book value in the U.S. GAAP book value (representing total shareholder’s equity), excluding AOCI (as recorded on the U.S. GAAP balance sheet). 3Adjusted book value including unrealized foreign currency translation gains (losses) is adjusted book value plus unrealized foreign currency translation gains (losses). Reconciliation of U.S. GAAP Book Value per Share1 Three Months Ended March 31, in millions of Dollars 2024 2023 %Change U.S. GAAP book value per common share $41.27 $32.65 26.4% Less: Unrealized foreign currency translation gains (losses) per common share (8.18) (5.97) Unrealized gains (losses) on securities and derivatives per common share 1.87 2.08 Effect of changes in discount rate assumptions per common share (2.62) (8.08) Pension liability adjustment per common share (0.01) (0.05) Total AOCI per common share (8.95) (12.01) Adjusted book value per common share2 $50.22 $44.66 12.4% Add: Unrealized foreign currency translation gains (losses) per common share (8.18) (5.97) Adjusted book value including unrealized foreign currency translation gains (losses) per common share3 $42.04 $38.69 8.7% 20

Adjusted Leverage Ratios (In millions) 2024 2023 Notes Payable $7,912 $7,420 50% of subordinated debentures and perpetual bonds (295) (335) Pre-funding of debt maturities (198) — Adjusted debt1 7,420 7,086 Total Shareholders’ Equity 23,537 19,784 Accumulated other comprehensive (income)loss: Unrealized foreign currency translation (gains) losses 4,666 3,618 Unrealized (gains) losses on fixed maturity securities (1,092) (1,289) Unrealized (gains) losses on derivatives 26 26 Effect on change in discount rate assumptions 1,495 4,894 Pension liability adjustment 7 29 Adjusted book value1 28,639 27,062 Adjusted capitalization ex-AOCI 1,2 $36,353 $34,482 Adjusted debt to adjusted capitalization ex-AOCI 20.4% 20.5% 1 See non-U.S. GAAP financial measures for definition of: adjusted debt; adjusted book value; adjusted debt, including 50% of subordinated debentures and perpetual bonds; adjusted book value, including unrealized foreign currency translation gains and losses and pension liability adjustment 2 Adjusted capitalization ex-AOCI is the sum of adjusted debt, including 50% of subordinated debentures and perpetual bonds, plus adjusted book value 21

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