KabuDo

AFL Insurance

Aflac Incorporated

Aflac sells supplemental health and life insurance — policies that pay cash when a policyholder gets sick or hurt, on top of their primary coverage — in Japan and the United States. Aflac Japan is its main earnings contributor and the largest insurer in Japan by cancer and medical policies in force, with about 14 million cancer policies. FY2025 total revenue was $17.2 billion and net earnings $3.6 billion, down from $5.4 billion mainly because of net investment losses; the company also repurchased $3.5 billion of its shares in 2025.

Latest 10-K (primary source) ↗Website ↗Investor relations ↗

Last updated

Analysis last edited: October 4, 2026 · Financial data fetched: October 4, 2026 10:55 (SEC EDGAR) · Source 10-K filed: February 25, 2026

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

Company profile

Legal name
AFLAC INC
Headquarters
COLUMBUS, GA
Incorporated in
Georgia
Fiscal year end
12/31
Exchange & ticker
NYSE: AFL
Industry
Insurance
CIK
4977
Website
https://www.aflac.com/ ↗
IR page
https://investors.aflac.com/ ↗

Workforce (as of FY2025 year-end)

  • Employees

    12,716

Source: Form 10-K (FY2025) cover page and business description

02

Earnings calendar

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q3 FY2026

Quarter end: September 2026. In past years, Q3 results were released 30–35 days after quarter end (Nov 4, 2025; Oct 30, 2024; Nov 1, 2023). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around December 31.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 29–37 days after quarter end over the last 12 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q2 FY2026Jun 30, 2026Aug 6, 2026 (+37 days)Aug 7, 2026 10-Q (+38 days)
Q1 FY2026Mar 31, 2026Apr 29, 2026 (+29 days)May 6, 2026 10-Q (+36 days)
Q4 FY2025Dec 31, 2025Feb 4, 2026 (+35 days)Feb 25, 2026 10-K (+56 days)
Q3 FY2025Sep 30, 2025Nov 4, 2025 (+35 days)Nov 5, 2025 10-Q (+36 days)
Q2 FY2025Jun 30, 2025Aug 5, 2025 (+36 days)Aug 5, 2025 10-Q (+36 days)
Q1 FY2025Mar 31, 2025Apr 30, 2025 (+30 days)May 7, 2025 10-Q (+37 days)
Q4 FY2024Dec 31, 2024Feb 5, 2025 (+36 days)Feb 26, 2025 10-K (+57 days)
Q3 FY2024Sep 30, 2024Oct 30, 2024 (+30 days)Nov 1, 2024 10-Q (+32 days)
Q2 FY2024Jun 30, 2024Jul 31, 2024 (+31 days)Aug 1, 2024 10-Q (+32 days)
Q1 FY2024Mar 31, 2024May 1, 2024 (+31 days)May 2, 2024 10-Q (+32 days)
Q4 FY2023Dec 31, 2023Jan 31, 2024 (+31 days)Feb 22, 2024 10-K (+53 days)
Q3 FY2023Sep 30, 2023Nov 1, 2023 (+32 days)Nov 2, 2023 10-Q (+33 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.

03

Flagship products & services

  • Aflac Japan

    Cancer insurance

    Examples: Miraito (launched March 2025)

    Number one provider of cancer insurance in Japan; about 14 million cancer policies in force.

  • Aflac Japan

    Medical and life insurance

    Examples: Anshin Palette medical, Tsumitasu savings-type life

    Hospitalization, surgery, and protection or savings-type life.

  • Aflac U.S.

    Supplemental worksite insurance

    Examples: Accident, critical illness, hospital indemnity, disability, dental and vision

    Pays cash benefits regardless of other coverage.

Product descriptions are from the FY2025 Form 10-K's Item 1.

04

Recent strategic focus

FY2025 developments from the 10-K.

  1. New cancer product

    Miraito, launched in March 2025, drove a rise in Aflac Japan's new annualized premium sales to ¥74.4B from ¥64.1B.

    Source: Form 10-K (FY2025) MD&A

  2. Data breach

    Unauthorized access discovered June 12, 2025 involved personal information of about 22.65 million individuals in the U.S. business.

    Source: Form 10-K (FY2025) MD&A

  3. Japan's new solvency regime

    Japan's economic value-based solvency standard takes effect for Aflac Japan's fiscal year ending March 31, 2026; Aflac targets an ESR of 170%–230%.

    Source: Form 10-K (FY2025) Item 1 and MD&A

05

Key figures at a glance

FY2021–FY2025, 5 years.

Total revenue (FY2025)

$17.16B

As reported in the 10-K

Revenue CAGR (4 years)

-5.5%▼caution

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($17,164M ÷ $21,554M) ^ (1÷4) − 1 = -5.5%

termsCAGR · ^ (exponent) · Revenue (net sales)

ROE (FY2025)

13.1%▲favorable

5-year average: 21.3%

As reported in the 10-K

P/B (FY2025 end)

1.94x

formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)

e.g.16.2x × $6.82 ÷ $56.85 = 1.94x

termsP/B · P/E · EPS · BVPS

Period-end (fiscal year-end) value, not today's P/B

  • ▼

    Revenue grew -5.5% a year over 4 years (a shrinking trend)

    From $21.55B in FY2021 to $17.16B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ▲

    ROE averaged 21.3% over 5 years (latest: 13.1%)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

06

Business model

Aflac Japan

Cancer, medical, nursing care, and life insurance in Japan, sold through about 6,300 agencies and alliances with Japan Post Group, Dai-ichi Life, and Daido Life, plus about 90% of Japan's banks. Its 'third sector' products cover costs Japan's national health insurance doesn't reimburse.

Aflac Japan: how money and goods flow

  1. 01 what it draws on

    Inputs & resources

    • About 112,000 licensed sales associates at agencies
    • Alliance partners' sales networks (about 20,000 post offices)
    • An investment portfolio of yen and U.S. dollar securities

  2. 02 what it does

    Activities

    • Designing and selling cancer, medical, and life policies
    • Paying claims
    • Investing premiums

  3. 03 who it serves

    Customers

    • Individuals in Japan, plus small-business owners through Daido Life

  4. 04 how money comes in

    How it earns

    • Insurance premiums
    • Investment income

Aflac Japan: how it makes money

  • Pretax adjusted earnings (non-GAAP) of $3.44B on adjusted revenue of $9.36B in FY2025.
  • New annualized premium sales rose to ¥74.4B from ¥64.1B, led by the Miraito cancer product launched in March 2025.
  • Premiums in force fell 2.5% in yen as limited-pay policies became paid up.

Aflac U.S.

Individual and group supplemental insurance (accident, disability, cancer, critical illness, hospital indemnity, dental and vision, life) sold mainly at the workplace, through career agents for small employers and brokers for larger ones.

Aflac U.S.: how money and goods flow

  1. 01 what it draws on

    Inputs & resources

    • About 5,300 actively producing agents and brokers
    • Brand (the Aflac Duck)

  2. 02 what it does

    Activities

    • Selling at the worksite and, increasingly, directly to consumers
    • Paying claims

  3. 03 who it serves

    Customers

    • Employees of U.S. businesses, from 3-employee firms to large employers

  4. 04 how money comes in

    How it earns

    • Insurance premiums
    • Investment income

Aflac U.S.: how it makes money

  • Pretax adjusted earnings of $1.42B on adjusted revenue of $6.90B in FY2025, essentially flat.
  • Net earned premiums rose 2.9% on improved sales.
  • Over a third of U.S. sales typically come in the fourth quarter because of employer open enrollment.

Revenue by segment (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100

  • Aflac Japan

    9,357 (58%)

    profit 3,440 · margin 36.8%

  • Aflac U.S.

    6,903 (42%)

    profit 1,421 · margin 20.6%

Source: Form 10-K (FY2025) — MD&A segment results and Note 2 Revenue is total adjusted revenue and profit is pretax adjusted earnings — both non-GAAP measures Aflac uses for its segments, excluding investment gains and losses. Corporate and other isn't shown.

07

Where it earns

Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.

Largest market (FY2025)

Japan (Aflac Japan) — 58% of revenue

Revenue by country / region (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Japan (Aflac Japan)

    9,357 (58%)

  • United States (Aflac U.S.)

    6,903 (42%)

Source: Form 10-K (FY2025) — MD&A segment results Aflac's two segments are its two countries; figures are segment adjusted revenue (non-GAAP). Aflac Japan's results are translated from yen, so the exchange rate moves the dollar figures.

08

Contract structure

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

Aflac's revenue is premiums on supplemental insurance policies plus income from investing those premiums. Policies pay fixed cash benefits regardless of other insurance, and many stay in force for years, so premiums in force change slowly; in Japan they are shrinking as limited-pay policies become fully paid up.

  • Multi-year / recurring

    Japan cancer, medical, and life policies

    Aflac Japan adjusted revenue $9.4B

    Typical term: Annualized premiums in force ¥1.18 trillion at year-end 2025

    Limited-pay products stop paying premiums once paid up.

  • Multi-year / recurring

    U.S. individual policies

    Part of Aflac U.S. revenue ($6.9B)

    Typical term: Typically guaranteed-renewable for the policyholder's lifetime (to age 75 for short-term disability)

    Portable when the policyholder leaves the employer.

Source: Form 10-K (FY2025) — Item 1 and MD&A

09

Alliances & capital ties

Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.

  • Capital tie / equity stake

    Japan Post Holdings

    A strategic alliance based on a capital relationship since 2018. A trust held shares representing 20% of Aflac's voting power as of May 2024, with voting restrictions above 20% and on change-of-control votes; Japan Post Holdings reported owning 52.3 million Aflac shares at year-end 2025 and has no board seat. About 20,000 post offices sell Aflac Japan's cancer products.

    Source: Form 10-K (FY2025) — MD&A, Strategic Alliance with Japan Post Holdings

  • Business partnership

    Dai-ichi Life

    Since 2001, about 37,000 Dai-ichi Life representatives sell Aflac Japan's cancer products.

    Source: Form 10-K (FY2025) — Item 1, Distribution Channels

  • Business partnership

    Daido Life

    Since 2013, about 3,700 Daido Life representatives sell Aflac Japan's cancer products, mainly to small and medium-sized business owners and employees.

    Source: Form 10-K (FY2025) — Item 1, Distribution Channels

10

Customers & suppliers

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

Individual policyholders in Japan and employees of U.S. businesses, reached through agencies, alliance partners, banks, and worksite enrollment.

Named by the company

No customer is named; policyholders number in the millions.

What the filings disclose

  • Aflac Japan exceeded 22 million individual policies in force at year-end 2025. (Form 10-K (FY2025), MD&A)
  • In Japan, affiliated corporate agencies (Japan Post Group, Dai-ichi Life, Daido Life) produced 49.2% of 2025 new annualized premium sales, independent agencies 47.5%, and banks 3.3%. (Form 10-K (FY2025), MD&A)

Suppliers

Aflac's main 'suppliers' are its distributors — agencies, alliance partners, and independent U.S. agents and brokers paid by commission — and the investment markets where it places premiums.

Named by the company

None named in the 10-K or the company’s press releases.

What the filings disclose

  • U.S. sales associates and brokers are independent contractors paid commissions on first-year and renewal premiums. (Form 10-K (FY2025), Item 1)
  • Compensation and benefit expense totaled about $2.1B in 2025. (Form 10-K (FY2025), Item 1)

11

Competitors & peers

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

Aflac's 10-K says it competes with other insurers on product design, price, policyholder service, and sales effort. In Japan, more insurers have offered stand-alone cancer and medical insurance since 2001 deregulation; in the U.S., it competes with national and regional supplemental carriers, and major medical carriers are entering its product lines. No company is named.

Competitors named in the 10-K

Aflac's 10-K doesn't name competitors.

Peer group the company chose

2025 peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

Insurers the compensation committee reviews each year for setting executive pay; unchanged from 2024. Aflac ranked below the peer median on revenue and total assets but above it on market value.

Source: Proxy statement (DEF 14A, filed 2026-03-19) — Compensation Discussion and Analysis, peer group

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

12

Five years of financials

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Total revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25

Profit over time (operating → net)

Unit: $M

  • Operating income
  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS
  • Dividend per share

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25

Line itemFY202110-K on EDGAR ↗FY202210-K on EDGAR ↗FY202310-K on EDGAR ↗FY202410-K on EDGAR ↗FY202510-K on EDGAR ↗
Income statement ($M)
Revenue21,55419,14018,70118,92717,164
Operating income4,9344,157———
Pretax income5,2084,8695,2626,4174,533
Net income (attributable)4,2314,4184,6595,4433,646
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—-11.2%-2.3%1.2%-9.3%
Operating margincalcoperating income ÷ revenue × 10022.9%21.7%———
Net margincalcnet income attributable to the company ÷ revenue × 10019.6%23.1%24.9%28.8%21.2%
Balance sheet ($M)
Total assets157,542131,738126,724117,566116,470
Total equity17,03120,14021,98526,09829,490
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable7,8397,2957,2407,4028,330
Equity ratio10.8%15.3%17.3%22.2%25.3%
ROE24.8%23.8%22.1%22.6%13.1%
Cash flow ($M)
Operating CF5,0513,8793,1902,7072,555
Investing CF-2,378-1,5408172,7811,561
Financing CF-2,739-3,551-3,723-3,486-4,069
Cash and equivalents5,0513,9434,3066,2296,245
Per share & other
EPS ($)6.256.937.789.636.82
BVPS ($)26.1232.7338.0047.4556.85
Dividend per share ($)1.321.621.762.082.35
Payout ratiocalcdividend per share ÷ diluted EPS × 10021.1%23.4%22.6%21.6%34.5%
P/E (x)9.310.410.610.716.2
EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)8.511.7———
P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)2.242.202.172.181.94

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

13

Is ROIC above WACC?

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

Banks, insurers, and similar financial companies aren’t compared this way, since deposits/policies are the business itself and debt can’t be cleanly separated from operating capital.

14

What the price implies (DCF)

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Not applied to banks, insurers, and similar financial companies: their operating cash flow includes deposits or premiums held for customers, so it isn’t free cash flow available to investors.

15

Earnings quality

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

Financial companies’ operating cash flow behaves differently from an operating company’s, so this analysis doesn’t apply.

16

Strengths & weaknesses

Strengths

  1. 1. Leader in Japanese cancer and medical insurance

    The largest insurer in Japan by cancer and medical policies in force, with more than 22 million individual policies and about 14 million cancer policies.

    Evidence: Form 10-K (FY2025) Item 1 and MD&A

  2. 2. Wide distribution in Japan

    About 6,300 agencies, alliances that reach about 20,000 post offices and tens of thousands of Dai-ichi and Daido representatives, and agreements with about 90% of Japan's banks.

    Evidence: Form 10-K (FY2025) Item 1

  3. 3. Large capital return

    Repurchased $3.5B of shares in 2025 after $2.8B in each of 2023 and 2024; shares outstanding fell from 652M (FY2021) to 519M (FY2025), and dividends per share rose every year from $1.32 to $2.35.

    Evidence: Form 10-K (FY2025) MD&A; SEC EDGAR XBRL

  4. 4. Strong Japanese capital ratio

    Aflac Japan's solvency margin ratio was 995% at year-end 2025, and its estimated economic solvency ratio was above the 170%–230% target range.

    Evidence: Form 10-K (FY2025) MD&A, Liquidity and Capital Resources

Weaknesses

  1. 1. Shrinking premium base in Japan

    Annualized premiums in force in Japan fell 2.5% in yen in 2025 and 3.0% in 2024, mainly as limited-pay policies reached paid-up status.

    Evidence: Form 10-K (FY2025) MD&A

  2. 2. Earnings swing with investment results

    Net earnings fell to $3.6B from $5.4B mainly because of $572M of net investment losses in 2025 (derivative and currency losses and a $191M increase in credit loss allowances) versus $1.3B of gains in 2024.

    Evidence: Form 10-K (FY2025) MD&A

  3. 3. Large data breach

    Unauthorized access to U.S. systems in June 2025 exposed personal information of about 22.65 million individuals; Aflac says it can't yet estimate the potential loss.

    Evidence: Form 10-K (FY2025) MD&A and contingencies note

17

What draws investors to it

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2025)

16.2x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2025)

2.13%

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2025)

34%

Dividends per share ÷ diluted EPS

  1. 1. Shrinking share count

    Buybacks cut shares outstanding by about a fifth between FY2021 and FY2025, and Aflac had 114.3 million shares still authorized for repurchase at year-end 2025.

    What has to hold
    Aflac Japan keeps generating excess capital that can be sent to the parent.
    The other side
    Japan's premium base is shrinking, and dividends from Aflac Japan depend on Japanese capital rules.

    Evidence: Form 10-K (FY2025) MD&A; SEC EDGAR XBRL

  2. 2. Rising dividend

    Dividends per share rose every year from $1.32 to $2.35 over FY2021–FY2025, and the quarterly dividend was raised another 5.2% for 2026.

    What has to hold
    Earnings and capital stay strong.
    The other side
    Net earnings fell 33% in 2025 on investment losses, showing how much reported profit can swing.

    Evidence: SEC EDGAR XBRL; Form 10-K (FY2025) MD&A

  3. 3. Low market sensitivity

    Aflac's beta against the S&P 500 is 0.34 over 2.5 years of weekly data.

    What has to hold
    Insurance demand stays steady through market cycles.
    The other side
    R² of 0.07 means the beta explains little, and the yen and Japanese interest rates are bigger drivers.

    Evidence: This site's beta calculation

P/E, dividend yield, and payout ratio use the FY2025 year-end share price. FCF yield isn't shown for insurers because operating cash flow includes premiums held to pay future claims.

18

Resilience

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2025)

For an insurer or bank, debt-coverage ratios like these don’t describe its ability to absorb losses — that depends on its capital, reserves, and investment portfolio, which are covered in part 3 below.

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
Revenue-11.2% in FY2022 ($21.55B → $19.14B)Not yet, as of FY2025
Net income-33.0% in FY2025 ($5.44B → $3.65B)Not yet, as of FY2025

Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Capital in Japan

    Aflac Japan's solvency margin ratio was 995% (1,221% a year earlier), and its estimated economic solvency ratio was above its 170%–230% target.

    Source: Form 10-K (FY2025), MD&A

  • Capital in the U.S.

    Aflac targets a combined risk-based capital ratio of 350%–450% over time for Aflac U.S.

    Source: Form 10-K (FY2025), MD&A

  • Recurring premium base

    Policies stay in force for years — Aflac Japan has more than 22 million — so revenue doesn't depend on a single year's sales.

    Source: Form 10-K (FY2025), MD&A · See Contract structure

  • Parent depends on subsidiary dividends

    Dividends from Aflac Japan to the parent are subject to the permitted dividend capacity under Japan's Companies Act.

    Source: Form 10-K (FY2025), Item 1

19

Risks (including geopolitical)

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
12
Med
345
Low
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).

Geopolitical risk highlights

  • [1]Concentration in Japan
  1. 1Geopolitical

    Concentration in Japan

    Company disclosure (summarized from the 10-K)
    Most earnings come from Aflac Japan, so Japan's economy, regulation, and demographics drive results; the 10-K lists concentration of business in Japan as a key risk.
    Company’s stated mitigation
    A growing U.S. business.
    This site’s assessment
    Impact High / Likelihood Med
  2. 2FX & interest rates

    Yen and interest rates

    Company disclosure (summarized from the 10-K)
    Aflac Japan's results are translated from yen; its U.S. dollar investments create a currency mismatch with yen liabilities, its solvency ratio is sensitive to interest rates, credit spreads, and exchange rates, and acceptable yen investments are limited.
    Company’s stated mitigation
    Foreign exchange hedging that partially offsets the currency exposure of Aflac Japan's U.S. dollar investments.
    This site’s assessment
    Impact High / Likelihood Med
  3. 3Governance & quality

    Cybersecurity incident

    Company disclosure (summarized from the 10-K)
    The June 2025 breach involved about 22.65 million people; Aflac faces regulator questions and pending disputes and can't estimate the potential loss.
    Company’s stated mitigation
    Incident response, notifications, and cyber insurance coverage still being assessed.
    This site’s assessment
    Impact Med / Likelihood Med
  4. 4Competition & technology shift

    New entrants in supplemental insurance

    Company disclosure (summarized from the 10-K)
    In Japan, more insurers have offered stand-alone cancer and medical insurance since 2001 deregulation; in the U.S., major medical carriers are entering supplemental products and bundling them at a discount.
    Company’s stated mitigation
    Brand, distribution, and new products.
    This site’s assessment
    Impact Med / Likelihood Med
  5. 5Demand & macro

    Credit losses on investments

    Company disclosure (summarized from the 10-K)
    Defaults and downgrades in the investment portfolio would reduce earnings; credit loss allowances rose $191M in 2025.
    Company’s stated mitigation
    Portfolio management by Aflac's asset management subsidiaries.
    This site’s assessment
    Impact Med / Likelihood Med

20

What to watch going forward

  • Whether new cancer and medical products keep lifting Aflac Japan's sales enough to offset paid-up policies.
  • Costs and legal outcome of the June 2025 data breach.
  • The yen and Japanese interest rates.
  • Pace of share repurchases.
  • Aflac Japan's first reported economic solvency ratio under Japan's new regime (as of March 31, 2026).

21

Source documents

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Form 10-K (FY2025)Accession no. 0001628280-26-011402 — filed 2026-02-25Open on EDGAR ↗Form 10-K (FY2024)Accession no. 0000004977-25-000047 — filed 2025-02-26Open on EDGAR ↗Form 10-K (FY2023)Accession no. 0000004977-24-000053 — filed 2024-02-22Open on EDGAR ↗Form 10-K (FY2022)Accession no. 0000004977-23-000055 — filed 2023-02-24Open on EDGAR ↗Form 10-K (FY2021)Accession no. 0000004977-22-000058 — filed 2022-02-23Open on EDGAR ↗Aflac Incorporated investor relations pageEarnings releases, investor presentations, etc. (official company source)Open website ↗

Last updated

Analysis last edited: October 4, 2026 · Financial data fetched: October 4, 2026 10:55 (SEC EDGAR) · Source 10-K filed: February 25, 2026

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent Aflac Incorporated’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.