AFLAC Incorporated (AFL) Stock Analysis

Aflac Japan contributed 53% of Aflac Incorporated's total adjusted revenues in 2025 and held 76% of total assets at year-end, making Japan the company's primary market across two reporting segments. The Japan operation distributes cancer and medical insurance through approximately 6,300 sales agencies with roughly 112,000 licensed associates, an alliance with Dai-ichi Life whose representatives sell cancer products, and agreements with approximately 90% of all Japanese banks. Aflac Japan is regulated by Japan's Financial Services Agency, which maintains a solvency margin ratio standard sensitive to interest rate and foreign exchange changes.

Aflac earns premium revenue from supplemental health and life policies that pay fixed cash benefits on eligible claims, regardless of what primary insurance covers. In Japan, the core portfolio centers on cancer insurance—a market the company entered in 1974—complemented by medical, nursing care, and life products; new products Miraito (cancer) and Anshin Palette (medical) launched in March and December 2025, respectively. In the United States, the company distributes accident, disability, critical illness, hospital indemnity, dental, vision, and life coverage primarily through the worksite, with U.S. group business generating over one-third of annual sales in the fourth quarter during open enrollment. U.S. subsidiaries Aflac, CAIC, and TOIC are domiciled in Nebraska and regulated by the Nebraska Department of Insurance; the NDOI and New York State Department of Financial Services each completed full-scope financial examinations covering 2020–2023 in 2025, with no material findings.