Aflac Incorporated, operating through its various subsidiary companies, focuses on delivering supplementary health and life insurance policies. The firm's business activities are ...
Aflac Incorporated, operating through its subsidiaries, is a leading provider of supplemental insurance in the United States and Japan. The company is structured into two primary divisions: Aflac Japan and Aflac U.S. Aflac Japan offers a diverse range of insurance products including cancer, medical expense, income support for nursing care, ...Aflac Incorporated, operating through its subsidiaries, is a leading provider of supplemental insurance in the United States and Japan. The company is structured into two primary divisions: Aflac Japan and Aflac U.S. Aflac Japan offers a diverse range of insurance products including cancer, medical expense, income support for nursing care, and the GIFT plan, along with traditional whole and term life insurance and savings-oriented plans like WAYS and child endowment products. Aflac U.S. provides policies covering cancer, accidents, short-term disability, critical illness, hospital stays, as well as dental, vision, long-term care, and term and whole life insurance. Distribution is through dedicated sales associates, independent brokers, corporate and individual agencies, and affiliated agencies. Founded in 1955 by brothers John, Paul, and William Amos, the company has grown significantly, entering the Japanese market in 1974. As a financial services company, it has a strong balance sheet with a current ratio of 41.3 and a solvency ratio of 9%. Its revenue per share is $35.95, and net income per share is $9.64. The company has a dividend payout ratio of 24.6% and offers a dividend yield of 1.9%. Key people include Daniel P. Amos, who has been CEO since 1990 and is the longest-serving CEO in the FORTUNE 250. The company emphasizes social responsibility and is committed to providing financial protection to millions of policyholders. With a market cap of approximately $63.3 billion, Aflac continues to innovate products and services, maintaining a strong brand presence and exploring new partnerships. The company's history of stability and growth is reflected in a beta of 0.60, indicating lower volatility than the market. Aflac's workforce of over 12,700 full-time employees supports its operations globally, with headquarters at 1932 Wynnton Road, Columbus, Georgia.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$17.4B
-8.8%
-5.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$3.6B
-33.0%
-19.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+38.9%
+9.3%
-5.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+26.6%
-20.7%
-14.2%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+20.9%
-26.5%
-14.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$2.6B
-5.6%
-88.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+14.7%
+3.5%
-87.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
28.5%
-0.7%
+9.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
12.39x
—
+27.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and welcome to the Aflac Incorporated Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to David Young, Senior Vice President, Capital Markets. Please go ahead.
David Young: Good morning, and welcome. Thank you for joining us for Aflac Incorporated's Second Quarter 2026 Earnings Call. This morning, Dan Amos, Chairman and CEO of Aflac Incorporated, will provide an overview of our results and operations in Japan and the United States. Then Max Broden, Senior Executive Vice President and CFO of Aflac Incorporated, will provide more detail on this quarter's financial results, including our capital and liquidity. These topics are also addressed in the materials we posted with our earnings release, financial supplement and quarterly CFO video update on investors.aflac.com. For Q&A today, we are also joined by Virgil Miller, President of Aflac Incorporated and Aflac U.S.; Charles Lake, Chairman and Representative Director, President of Aflac International; Masatoshi Koide, President and Representative Director, Aflac Life Insurance Japan; Shinsuke Morimoto, Deputy President and Director, Aflac Life Insurance Japan; and Brad Dyslin, Global Chief Investment Officer, President of Aflac Global Investments. Before we begin, some statements in this teleconference are forward-looking within the meaning of federal securities laws. Although we believe these statements are reasonable, we give no assurance that they will prove to be accurate because they are prospective in nature. Actual results could differ materially from those we discuss today. We encourage you to look at our annual report on Form 10-K for some of the various risk factors that could materially impact our results. As I mentioned earlier, the earnings release with reconciliations of certain non-U.S. GAAP measures and related earnings materials are available on investors.aflac.com. I'll now hand the call over to Dan. Dan?
Daniel Amos: Thank you, David, and good morning, everyone. We're glad you joined us. The second quarter added to the first quarter's solid financial start. Aflac Incorporated reported net earnings per diluted share of $1.63 and adjusted earnings per diluted share of $1.75. These results reflect the focused execution of our strategy, thus creating long-term value for the shareholders. Starting with Aflac Japan. As we told you, we were up against a strong second quarter in 2025 sales comparison following the launch of Miraito cancer insurance. As a result, sales declined 5.6% to JPY 11 billion (sic) [ JPY 19.6 billion ] in the quarter, but sales were up 7% for the first half of the year. This reflected strong sales results of Tsumitasu and brings sales in line with our expectations for the first half of the year. As part of our ongoing strategy, we continue to promote the importance of third sector protection to new and younger customers with our …
