The company's repurchase of shares indicates a commitment to returning value to shareholders and confidence in its financial position. This action can boost earnings per share and signal management's belief in the company's future prospects.

The increase in the cash dividend reflects the company's strong financial performance and its commitment to providing returns to shareholders. This action is likely to be viewed favorably by investors.

The company's intention to maintain strong capital ratios indicates a focus on financial stability and prudent risk management. Tactical deployment of capital suggests a strategic approach to investments and growth initiatives.

The company's strategic focus indicates a clear direction for long-term value creation. This includes product development, distribution expansion, and efficiency improvements.

The company's objectives highlight a focus on both profitability and revenue growth. This includes initiatives in both Aflac Japan and Aflac U.S. segments.

This expectation suggests that Aflac Japan is well-positioned to benefit from its existing product mix and market trends. It also indicates an ability to manage costs effectively.

The document highlights that global capital market conditions, including inflation and economic uncertainty, could negatively impact investments, capital position, revenue, profitability, and liquidity.

The company's reliance on Aflac Japan for a significant portion of its revenues and assets exposes it to risks associated with the Japanese economy and regulatory environment.

The company acknowledges the potential for interruptions in telecommunication, IT, and operational systems, as well as failures to maintain data security, which could harm the business.

The document mentions competition from other insurers in terms of policyholder service, price, product design, and sales efforts, particularly in the increasingly deregulated Japanese market.

Despite increased competition, Aflac Japan believes it can adapt due to its size, diversified distribution network, well-known brand, low-cost operations, expansive marketing system, and product expertise.

Given profitability erosion in core lines, major medical carriers seek entry into Aflac's supplemental product segments, leveraging core benefit offerings by bundling and discounting products.

The company's strategy involves modernizing technology and streamlining operations to achieve efficiencies. This indicates a focus on cost management and productivity.

Aflac U.S. expects growth in life and disability to increase benefit ratios, and realized benefits from buy-to-build initiatives are expected to decrease expense ratios over time.

The Company uses third-party vendors to provide certain business support services and functions, which exposes the Company to risks outside the control of the Company that may lead to business disruptions.

Aflac is investing in technology and other capabilities to continuously enhance its customer experience and increase efficiencies, indicating a commitment to innovation.

The Company's development of new technology, including the use of AI by the Company and third-party vendors, could lead to an increased risk of a business interruption or a cybersecurity breach.

Aflac Japan continues to promote digital and web-based sales to groups and use of its system that enables smart device-based insurance application.

The Company intends to maintain strong capital ratios in Aflac Japan and Aflac U.S. in support of its commitment to shareholder dividends while remaining tactical in its deployment of capital in the form of share repurchases and opportunistic investments.

The Company's economic solvency ratio (ESR) target range is 170% to 230% for Aflac Japan and a target combined RBC range of 350% to 450%, over time, for Aflac U.S., which is consistent with the Company's risk management practices.

As part of its overall corporate strategy, the Company has committed up to $400 million to Aflac Ventures, LLC (Aflac Ventures), as opportunities emerge.

The Company's overarching human capital philosophy is, “If you take care of your employees, your employees will take care of the business.

Established in 2009, Aflac Heartful Services Co., Ltd. (Aflac Heartful Services), a subsidiary of Aflac Japan, promotes the hiring of employees with disabilities.

In 2024, Aflac Japan was certified, for the seventh consecutive year, as one of the top 500 Leading Companies in Health and Productivity Management under the Certified Health & Productivity Management Outstanding Organizations Recognition Program with Japan's Ministry of Economy, Trade and Industry.

With Japan's aging population and the rise in healthcare costs, supplemental health care insurance products remain attractive. Additionally, as Japan enters an era of 100-year lifespans, customers' needs for asset formation and retirement coverage, including nursing care, are increasing.

Customer demographics continue to evolve and new opportunities present themselves in different customer segments such as the millennial and multicultural markets. Customer expectations and preferences are changing.

The Company and its insurance subsidiaries are subject to complex laws and regulations that are administered and enforced by a number of governmental authorities, that exercise a degree of interpretive latitude.