Aflac Incorporated · NYSE:AFL
Aflac — Investor Presentation (June 2022)
17 slides from Aflac's investor presentation, June 2022
Slide 1: Investor Presentation
Investor Presentation June 2022
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meani
Slide 3: Segment Overview
Segment Overview Aflac Japan Business Profile Aflac U.S. Business Profile Aflac Japan insures 1 in 4 households1 in Japan and is the #1 cancer and Aflac is the leading supplemental health insurer in the U.S. medical insurer2. Aflac’s supplemental policies pay cash directly to the insured to he
Slide 4: 2021 Highlights
2021 Highlights Cash Share Dividend Repurchase +17.9% $2.3 billion EPS Adjusted EPS* -4.2% +19.8% ROE Adjusted ROE* 12.9% 15.9% • Our strategic focus: » Navigating the pandemic in a strong financial condition » Executing on key growth and efficiency initiatives » Returning capital to shareholders –
Slide 5: Aflac Incorporated's Long-Term Growth Strategy
Aflac Incorporated’s Long-Term Growth Strategy 5
Slide 6: Aflac U.S. | Key Growth Initiatives Complement Core
Aflac U.S. | Key Growth Initiatives Complement Core Network Dental & Vision Group Life, Absence There are 127 million workers in the U.S. that do not have access to our remains the 2nd most requested Management and Disability products by employees, behind health brings Aflac closer to the front page
Slide 7: Aflac Japan | Enhancing Protection-type Product Lineup
Aflac Japan | Enhancing Protection-type Product Lineup Income Support Cancer Insurance Medical Insurance Nursing Care Insurance Insurance • Maintain the market- • Launched a new product • A market with great • SME employees’ growing leading position with enhanced coverage in potential in Japan, wher
Slide 8: Maintain Strong Capital & Financial Strength
Maintain Strong Capital & Financial Strength Aflac entered the pandemic with strong core insurance capital ratios Aflac Japan’s ESR as of 1Q 2022 was 245% as compared to 230% 1Q 2021 Aflac Japan SMR (%) Aflac - Consolidated RBC (%)1 1,200 800 Capital draw down 961 917 >900 >600 881 600 705 800 574 6
Slide 9: Capital Deployment Under Stable Conditions
Capital Deployment Under Stable Conditions Tactical Deployment 2021-2023e Deployment ($ billions) ~$8.5 - $9.5 billion $ 4.0 3.0 Dividends 2.0 Repurchase 1.0 Opportunistic 0.0 2017 2018 2019 2020 2021 Considerations • Expected run-rate annualized insurance subsidiary dividends of $2.6 billion to $3.
Slide 10: Appendix
Appendix Afiac. Incorporated
Slide 11: 1Q22 Core Insurance Margins vs 1Q21
1Q22 Core Insurance Margins vs 1Q211 Aflac Incorporated Benefit Adj. Expense Pretax Profit Ratio Ratio Margin Aflac U.S. 44.0% 42.2% 19.8% 490 bps 370 bps (750) bps Adj. ROE* 14.2% 3rd Sector Adj. Expense Pretax Profit Benefit Ratio Ratio Margin Aflac Japan 56.4% 21.2% 25.3% (160) bps (10) bps 220 b
Slide 12: Resilient Global Portfolio - Consolidated
Resilient Global Portfolio - Consolidated As of 1Q22 Asset Allocation Quality Sector and Industry Diversification* Govt Ag 41.7% 4% Banks/Fin 8.5% 5% BBB Pub Util 6.9% Cons NonCyc 5.8% Tech 3.5% 23% Oth Corp 3.4% $118 billion Transp 3.0% AUM A- Cap Goods 2.9% Average Energy 2.7% Comm 2.6% Rating 2%
Slide 13: Glossary of Non-U.S. GAAP Measures
Glossary of Non-U.S. GAAP Measures The Company defines these non-U.S. GAAP financial measures as follows: • Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted ave
Slide 14: Reconciliation of Net Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share
Reconciliation of Net Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share Three Months Ended March 31 2022 2021 % Change Net earnings per diluted share $ 1.58 $1.87 (15.5)% Items impacting net earnings: Adjusted net investment (gains) losses (0.21) (0.44) Other and non-recurring (incom
Slide 15: Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE
Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE1 Three Months Ended March 31 in millions of Dollars 2022 2021 U.S. GAAP ROE – Net earnings2 13.2% 15.8% Impact of excluding unrealized foreign currency translation gains (losses) (1.1) (0.9) Impact of excluding unrealized gains (losses) on
Slide 16: Reconciliation of Net Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share
Reconciliation of Net Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share Twelve Months Ended December 31 2021 2020 % Change Net earnings per diluted share $ 6.39 $6.67 (4.2)% Items impacting net earnings: Adjusted net investment (gains) losses (0.68) 0.32 Other and non-recurring (inco
Slide 17: Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE
Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE1 Twelve Months Ended December 31 in millions of Dollars 2021 2020 U.S. GAAP ROE – Net earnings2 12.9% 15.3% Impact of excluding unrealized foreign currency translation gains (losses) (0.8) (0.9) Impact of excluding unrealized gains (losses