Aflac Incorporated

Aflac's in-force insurance premiums form a contractual recurring base with Japan persistency of 92.8% sustained through the COVID period and prior cycles. At end-2025, Japan annualized premiums in force stood at ¥1.18 trillion, and U.S. net earned premiums of $1.555 billion in Q1 2026 represent self-renewing contracted income.

Within Japan, cancer insurance accounts for roughly 14 million of Aflac's 22 million individual policies in force at end-2025, creating meaningful product concentration. The U.S. segment spans accident, cancer, short-term disability, critical illness, dental, and vision, but both segments operate within the supplemental-insurance category, limiting true economic diversification.

Aflac derives over 55% of consolidated adjusted revenues from Japan and over 70% of pretax adjusted earnings from that market, leaving the company substantially dependent on a single foreign currency market. The U.S. represents the remaining revenue base, with no meaningful revenue from other geographies.

The in-force insurance model has inherent administrative scale once policies are written, but U.S. worksite distribution relies on a large field-agent organization with a roughly linear cost structure. Japan's in-force block is contracting as limited-pay products reach paid-up status, partially offsetting new-business scale gains.

Aflac's premiums are contractual obligations paid on recurring billing cycles, with Japan persistency of 92.8% across FY2021-FY2025. In Japan, cancer insurance is deeply embedded in household financial planning as a near-essential product, though policies remain voluntary rather than legally mandated.