Expense Ratio in Japan

FY 2025

no explicit guidance provided " " "

Expected to be within the range of 20% to 23% for FY 2025 "

no prior guidance

Earned Premium in Japan

FY 2025

no explicit guidance provided " " "

Forward guidance remains at negative 1% to negative 2% for FY 2025, with Q2 2025 showing a 1.1% decline "

no prior guidance

Innovative Cancer Insurance Product Launch and Market Expansion

Q1 2025 discussed the launch of a new cancer insurance product (Merito) with flexible coverage and cross‐selling opportunities. " " " Q4 2024 outlined plans for an integrated product featuring Aflac uni-cell and enhanced coverage options. " "

Q2 2025 announced the launch of MiRyto in Japan showing a 23.2% YOY sales increase, flexible protection design, and aggressive market expansion through multiple distribution channels. " " " "

Recurring focus with a name and feature update; sentiment improved as the product delivered strong sales performance and expanded market reach. " "

Disciplined Capital Management and Shareholder Returns

Q1 2025 highlighted a $900 million buyback and $1.2 billion total returns, supporting 42 consecutive years of dividend growth. " " " Q4 2024 emphasized a $2.8 billion buyback and $3.9 billion total shareholder returns through robust repurchases and dividend increases. " "

Q2 2025 reported deploying $829 million for share repurchases and paying $312 million in dividends (totaling $1.1 billion returned), with strong liquidity and defensive capital ratios maintained. " " "

Consistent discipline in capital deployment and shareholder returns across periods with minor variations in absolute amounts and continued focus on long-term stability. " " "

Digital Transformation and AI Integration

No explicit mention in Q1 2025 or Q4 2024 earnings calls [N/A].

Q2 2025 introduced initiatives incorporating generative AI and digital human avatar services to improve customer experience and operational efficiency in Japan. "

New topic emerging with positive sentiment and potential for long-term productivity gains and cost reduction. "

Premium Trends, Expense Ratios, and Lapse Risks in Japan

Q1 2025 reported a decline in net earned premiums (5% decline) with underlying metrics declining 1.4% and an expense ratio of 19.6% (up 160bps) with strong persistency at 93.8%. " Q4 2024 mentioned a 5.4% decline in net earned premiums, effects from reinsurance and paid-up policies, and an expense ratio at 20.8% (down 30bps), with persistency at 93.4%. "

Q2 2025 noted a 4.8% decline in net earned premiums (underlying decline of 1.1%), an increased expense ratio at 20.6% (up 280bps) driven by technology spending, and persistency holding at 93.7%. " "

Recurring focus with consistent persistency; however, rising expenses driven by technology investments indicate slightly increased cost pressures. " " "

FX, ESR Volatility, and Regulatory Uncertainties

Q1 2025 detailed comprehensive hedging strategies, ESR sensitivity to FX, and robust capital ratios (SMR and ESR above targets). " " " " Q4 2024 mentioned modest FX impacts, transitions toward the ESR framework, and minimal discussion on regulatory uncertainties. " " "

Q2 2025 discussed a modest $0.04 positive impact from FX, detailed ESR adjustments with a 30-point uplift using the regulatory model with USP, and ongoing management of regulatory uncertainties. " " "

Recurring topic with continued active management; strategic hedging and regulatory adjustments remain in focus with steady sentiment and moderate volatility. " " "

Floating Rate Headwinds Impacting Net Investment Income

Q4 2024 noted a 100bps decline in SOFR impacting a $9 billion floating rate portfolio along with negative effects on cash holdings. " " Q1 2025 explained a similar pressure due to a 100bps drop in SOFR and repositioning to capture higher yields. "

Q2 2025 reported lower floating rate income causing a 10.5% decline in Japan and 5% decline in U.S. net investment income, with ongoing repositioning efforts noted. "

Recurring challenge with consistent headwinds from floating rate declines; the company is actively managing portfolio repositioning in response to these pressures. " "

U.S. Dental Business Performance Volatility

Q4 2024 described significant volatility with a 33% decline in dental sales due to system implementation failures, impacting broker trust and ancillary sales. " " Q1 2025 reported stabilization with improved technology and a 23% increase in dental sales alongside enhanced agent support. " "

Q2 2025 highlighted that operational issues have been overcome, with the U.S. dental business showing strong momentum and double-digit growth, reinforcing its role as a door opener for supplemental insurance sales. " "

Recurring topic with marked recovery; sentiment has shifted from negative due to previous system issues to positive as the business stabilizes and grows. " "

Expansion of Agent Network in Japan

Q4 2024 noted the initiation of an agent network expansion with approximately 600 agents hired and plans to leverage first-sector products to drive third-sector growth. " Q1 2025 did not specifically address this topic [N/A].

Q2 2025 emphasized reinforced agent expansion, highlighting efforts to strengthen the solicitor network with 1,100 agents hired in 2024 and continued aggressive growth strategies. "

Recurring and intensified area of focus; the expansion strategy is being scaled up with a clear upward trajectory and positive implications for future sales. "

Commercial Real Estate Market Challenges

Q4 2024 indicated severe market conditions with distressed property values, a $40 million increase in CECL reserves, and two loan foreclosures, reflecting prolonged challenges. " " Q1 2025 mentioned a modest $2 million increase in reserves and two foreclosures as part of active portfolio management. "

Q2 2025 reported a $33 million net increase in CECL reserves and three foreclosures, continuing the challenge of distressed property valuations and portfolio management. "

Recurring challenge with persistent market volatility; while the magnitude of adjustments varies, the strategic approach to foreclosures and reserve management remains consistent. " "

Earnings Volatility from Remeasurement Gains

Q4 2024 described significant, favorable remeasurement gains from unlocked actuarial assumptions, albeit with caution due to potential higher future claims. " Q1 2025 explained that remeasurement gains stem from truing up claims experience and are expected to peak in Q3 each year. "

Q2 2025 reported specific favorable impacts of remeasurement gains—83 basis points in Japan and 160 basis points in the U.S.—reflecting continued positive trends while noting seasonal adjustments. " "

Recurring topic with consistently favorable outcomes; while gains remain beneficial, awareness of seasonal volatility and potential future adjustments persists. " " "