AFLAC Incorporated · NYSE:AFL
AFLAC — Q3 2022 Earnings Presentation
27 slides from AFLAC's earnings presentation, Dec 21, 2022
Slide 1: Aflac Incorporated
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: Max K. Brodén, Executive Vice President, CFO
Max K. Brodén Executive Vice President CFO, Aflac Incorporated
Slide 4: Third quarter net earnings per diluted share
Third quarter net earnings per diluted share $2.53
Slide 5: Third quarter adjusted earnings per diluted share
Third quarter adjusted earnings per diluted share* $1.15 *Non-GAAP measure
Slide 6: ROE, Adj. ROE and Adj. ROE ex-FX
ROE 25.3% Adj. ROE* 10.6% Adj. ROE ex-FX* 11.4% *Non-GAAP measure
Slide 7: Third quarter benefit ratio for Aflac Japan
Third quarter benefit ratio for Aflac Japan 75.0%
Slide 8: Third quarter third sector benefit ratio for Aflac Japan
Third quarter third sector benefit ratio for Aflac Japan 67.2%
Slide 9: Third quarter premium persistency for Aflac Japan
Third quarter premium persistency for Aflac Japan 94.3%
Slide 10: Third quarter total adjusted expense ratio for Aflac Japan
Third quarter total adjusted expense ratio for Aflac Japan 20.8%
Slide 11: Third quarter pretax profit margin for Aflac Japan
Third quarter pretax profit margin for Aflac Japan 21.6%
Slide 12: Third quarter premium persistency for Aflac U.S.
Third quarter premium persistency for Aflac U.S. 77.6%
Slide 13: Third quarter benefit ratio for Aflac U.S.
Third quarter benefit ratio for Aflac U.S. 45.2%
Slide 14: Third quarter total adjusted expense ratio for Aflac U.S.
Third quarter total adjusted expense ratio for Aflac U.S. 41.8%
Slide 15: Third quarter pretax profit margin for Aflac U.S.
Third quarter pretax profit margin for Aflac U.S. 19.3%
Slide 16: Strong capital position at the end of Q3
Strong capital position at the end of Q3 Combined SMR RBC >900% >600%
Slide 17: Third quarter pretax leverage
Third quarter pretax Leverage* 19.5% *Adjusted debt to adjusted capitalization ex-AOCI
Slide 18: $650 million share repurchase
Third quarter share repurchase $650million
Slide 19: $251 million dividends
Third quarter dividends $251millon
Slide 20: 3Q22 Lowering Enterprise Exposure to Currency
3Q22 Lowering Enterprise Exposure to Currency Economic Hedge: Protecting current and future distributions of Japan’s economic value Hedging Real Economic Events • Cash flows from the foreign subsidiary, Aflac Life 3.8 Insurance Japan, to the holding company 5 • Future expected cash flows on a presen
Slide 21: Slide 21
Slide 22: Appendix
Appendix
Slide 23: 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 24: 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 September 30 2022 2021 %Change Net Earnings per diluted share $2.53 $1.32 91.7% Items impacting net earnings Adjusted net investment (gains) losses (0.35) 0.26 Other and non-recurring (income)
Slide 25: Reconciliation of Net Earnings to Adjusted Earnings
1 Reconciliation of Net Earnings to Adjusted Earnings Three Months Ended September 30, in millions of Dollars 2022 2021 %Change Net Earnings $1,596 $888 79.7% Items impacting net earnings Adjusted net investment (gains) losses (222) 172 Other and non-recurring (income) loss (1) 8 Income tax (benefit
Slide 26: Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE
1 Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE Three Months Ended September 30, in millions of Dollars 2022 2021 U.S. GAAP ROE - Net earnings2 25.3% 10.6% Impact of excluding unrealized foreign currency translation gains (losses) (3.6) (0.7) Impact of excluding unrealized gains (loss
Slide 27: Reconciliation of U.S. GAAP Book Value per Share
1 Reconciliation of U.S. GAAP Book Value per Share Three Months Ended September 30, in millions of Dollars 2022 2021 %Change U.S. GAAP book value per common share $38.71 $50.62 (23.5)% Less: Unrealized foreign currency translation gains (losses) per common share (7.14) (2.66) Unrealized gains (losse