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Fortune 500

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The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

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This year’s Fortune 500 marks the 67th running of the list.

F500-2021-131-Aflac

The insurance company is the largest provider of supplemental insurance in the U.S. and is best known for its payroll deduction coverage.

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-146-Aflac

The supplemental health and life insurance provider is based in Columbus, Ga., and has a large business segment in Japan.

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This year's Fortune 500 marks the 65th running of the list.

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Fortune 100 Best Companies to Work For

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This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

Fortune Global 500

This year's Fortune 500 marks the 63rd running of the list.

We surveyed tens of thousands of young employees to create this list of millennials’ favorite workplaces.

best workplaces for millennials 2017 Aflac

Employees say: 
 
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"One of the best things about this company is the culture of honesty and transparency. If things are trending badly, we know about it and we know the plans that are in place to correct course. Everyone buys into the plan and executes together, as a team. When things are going great, we celebrate wins as a team. It's a great atmosphere—a competitive, winning atmosphere that I'm proud to be a part of." 
 
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"I feel that this is a great place to work mainly because this company gives me opportunities to make a difference while at work. I have gotten the opportunity to be part of the Aflac cancer committee and raise money for Aflac's cancer center in Atlanta. The trip to Atlanta was one of the most meaningful things I have done at work. It is nice to put in everyday work for a company that cares, and it is even better to get to directly contribute and be supported by management." 
 
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100 Best Large Workplaces for Millennials

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

Google/Alphabet is the No. 1 place to work for the seventh time in 10 years. Six newcomers include Veterans United at No. 30, Hilton Hotels at No. 56, and Slalom Consulting at No. 100. IKEA’s U.S. arm returns to the list, along with GoDaddy and Sheetz.

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Fortune’s second annual list of the 100 Best Workplaces for Women highlights companies with generous benefits, flexible schedules, and an emphasis on balancing work and life. 

100 best workplaces for women 2016- aflac

Employees say: 
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"Aflac actually makes exceptions to our processes based on specific situations. The work environment is friendly and flexible. There is always something to do. I can go to management if my situation is not being addressed as I feel it should. I am treated as an individual when needed. The teams function as a family. We all work together to support the Aflac brand!! We are family!" 
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"[I appreciate] the encouragement of work/life balance,and that family and personal health is allowed to come first. Also, the ability of management to see their employees' skill sets and to develop them in the professional direction they would fit best, even if it means going outside their current department." 
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Read the Great Place to Work review .

100 Best Large Workplaces for Women

The second annual ranking of the best employers for workers 35 and under.

best workplaces for millennials 2016- Aflac

"I love how management is very approachable and attentive to what suggestions you may have. They try to implement them as best they can. I love how the company gives incentives just for being an Aflac employee, such as getting movies tickets at a discount, having valet dry cleaning services, etc. I love how when you go the extra mile you are noticed for it. I just love feeling appreciated and valued. I love Aflac!" says one millennial worker. 
 
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According to another millennial: "Aflac is an amazing place to work. The culture here is like no other. Leadership truly cares about the people, and in turn the people take care of the business." 
 
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Read the .

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

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This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

The inaugural list of the 100 Best Workplaces for Millennials from our partners at Great Place to Work includes surprising newcomer Power Home Remodeling, making an impressive debut at No. 1. Other standouts include Chili’s Grill and Bar (no. 11), Elevation Church (No. 34), and Yelp (No. 41).

BEST COMPANIES 2015  Aflac

Occupying slot number 132 on the Fortune 500 list, Aflac spreads its wings far and wide as one of the nation’s largest insurers. But that doesn’t keep the company from feeling intimate. In addition to a “spot awards” program that recognizes outstanding employee achievements with instant cash, company stock and swag, the company holds a weeklong celebration for its staff every year. The event has included ice skating, mini-golfing, family outings, and more. That’s not all—those who volunteer at or help plan the affair also get invited to a party at CEO Dan Amos’ country farm. As one worker gushes, “We are made to feel special and appreciated.” <a style="color:#ff0000;" href="http://us.greatrated.com/aflac-inc" target="_blank">Read the Great Place to Work review.</a>

Google tops the list once again, marking its eighth appearance and fifth time as No. 1.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Perks

100% health coverage

Unlimited sick days

Telecommuting

Job sharing

Subsidized childcare

Compressed work weeks

Fully-paid sabbaticals

On-site fitness/subsidized gym

On-site medical care facility

Non-discrimination policy includes sexual orientation

Health insurance for part-timers

Sick days for part-timers

College tuition reimbursement

Student loan debt repayment

Medical facility at all locations

Paid Time Off

PTO limit (days)

Compensation

Most common job (for salaried employee)

Hiring/staffing (past 12 Months)

Full-time and part-time job growth

# of job applicants

Avg. # of applicants per opening

FT voluntary turnover

Jobs filled internally

Jobs filled by referral

# New graduates hired

Company Info

Industry

Sector

HQ Location

Company Type

# Work Sites

U.S. Employees

Web Address

Best Companies

Best Companies Rank

Best Companies URL

Millennials In The Organization

# of millennial employees

Millennials as % of total workforce

Women In The Organization

% of Women in the Company

% of Women in Executive/Manager Positions

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Aflac is a leading provider of supplemental health and life insurance solutions. Through its two primary business segments—Aflac Japan and Aflac U.S.—the company delivers a comprehensive portfolio of products, including cancer, medical, nursing care, whole life, and specialized insurance offerings tailored to diverse market needs. Aflac’s distribution strategy leverages a multichannel network encompassing individual agents, corporate partners, banks, brokers, and independent associates, allowing for broad market reach. Established in 1955, the company is known for its innovative product development and commitment to helping clients manage health-related financial risks.

Q2 2026

Q1 2026

Q4 2025

Q2 2025

Q1 2025

Q4 2024

Aflac (AFL): Company Profile, Stock Price, News, Rankings

legacy

Aflac

aflac

Good day, and welcome to the Aflac Incorporated Second Quarter twenty twenty five Earnings Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to David Young. Please go ahead.

Good morning, and welcome. Thank you for joining us for Aflac Incorporated's second quarter twenty twenty five earnings call. This morning, Dan Amos, Chairman, 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 our financial results for the quarter, current capital and liquidity. These topics are also addressed in the materials we posted with our earnings release, financial supplement and quarterly CFO update on our investors.aflac.com.

For Q and A today, we are joined by Virgil Miller, President of Aflac Incorporated and Aflac U. S. Charles Lake, Chairman and Representative Director, President of Aflac International Masatoshi Kuide, President and Representative Director, Aflac Life Insurance Japan and Brad Dislen, 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 can 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 ks 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?

Thank you, David, and good morning, everyone. We're glad you joined us. Aflac Incorporated reported net earnings per diluted share of $1.11 and adjusted earnings per diluted share of 1.78 for the 2025. We believe that these are solid results for the quarter, leading to a very good first half of the year. Max will expand upon these results in a moment.

But before he does, I'd like to comment on our operations. Beginning with Aflac Japan, I am very pleased with Aflac Japan's 23.2% year over year sales increase, especially the 53% increase in the cancer insurance sales. These strong sales were driven largely as expected by sales of our newest cancer insurance product, MiRyto. They include the final stage of the launch of Japan Post insurance and Japan Post in April. We also saw positive overall sales growth across all distribution channels.

This positive results also reflects our new marketing and sales structure in Japan that integrates members of the actuarial IT and policy service into agile teams focused on bringing a specific product line to the market, like cancer, medical, asset formation, and nursing care. We also continue to introduce the need for the third sector protection to new and younger customers with our innovative first sector product, Sumitas, which has third sector optional benefits. Overall, I believe we have the right strategy to meet our customers' financial protection needs throughout their different life stages. Our ability to maintain strong premium persistency is a testament to our strategy, Aflac's reputation and our customer recognition of the value of our products. By maintaining this level of persistency and adding new premium through sales, we are partially offsetting the impact of reinsurance and policies reaching paid up status.

Maintaining strong persistency will be vital to the future of Aflac Japan. Being where customers want to buy insurance has always been an important element of our growth strategy in Japan. Our broad network of distribution channels, including agencies, alliance partners, banks continually optimize opportunities to help provide financial protection to Japanese consumers. We will continue to work hard to support each channel as we evolve to meet the customer's changing needs. Turning to Aflac US, we generated 340,000,000 in new sales during the second quarter, which was a 2.7 year over year increase.

More importantly, we maintained strong premium persistency of 79.2% and increased net earned premium of 3.4%. We continue to see momentum within all areas of our group business, especially our group life and disability as well as our network dental. In addition, we believe our efforts to drive more profitable growth with a stronger underwriting discipline have contributed to our strong premium persistency and net earned premium growth. At the same time, Aflac US has continued its prudent approach to expense management and maintaining a strong pretax margin as Max will expand upon in a moment. In both Japan and The United States, I believe the consumers need the products and solutions Aflac offers more than ever.

For our policyholders who've become claimants, Aflac is more than an insurance company. We are a partner in health, a supporter of families during their times of need, and a pioneer and leader in the industry. We are leveraging every opportunity to convey our products can help fill the gap during challenging times, providing not just financial assistance, but also compassion and care. At the same time, we continue to generate strong capital and cash flows while maintaining our commitment to prudent liquidity and capital management. We have been very pleased with our investments, which have continued to produce solid net investment income.

As an insurance company, our primary responsibility is to fill the promises we make to the policyholders while being responsive to the needs of our shareholders. Our solid portfolio supports our promise to the policyholders as does our commitment to maintaining strong capital ratios. We balance this financial strength and tactical capital deployment. I am happy with how management has handled capital deployment and liquidity. In the second quarter, Aflac Incorporated deployed $829,000,000 in capital to repurchase 7,900,000.0 shares of our stock and paid dividends of $312,000,000 Combined with dividends, that means that we delivered $1,100,000,000 back to the shareholders in the 2025.

Additionally, we treasure our track record of forty two consecutive years of dividend growth. At the same time, we have maintained our position among companies with the highest return on capital and the lowest cost of capital in the industry. 2025 marks three important milestones for Aflac. In June, we just celebrated the thirtieth anniversary of what is now known as the Aflac Cancer and Blood Disorders Center of Children's Health Care of Atlanta. We look forward to celebrating the seventieth anniversary of the company's founding in November, and we also are celebrating the twenty fifth anniversary of the Aflac Duck this year.

Even though these milestones are noteworthy, it's not the number of years that matters most. It's the privilege of benefiting the lives of millions of people. We are reminded that one thing has not changed since the founding in 1955. Families and individuals still seek to protect themselves from financial hardship that not even the best health care insurance can cover. Today's complex health care environment has produced incredible medical advancements that have come with incredible costs.

It's more important than ever for people to have a partner in their time of need. We believe our approach to offering relevant products makes us that partner. We also believe in the underlying strengths of our business and our potential for continued growth in Japan and The United States, two of the largest life insurance markets in the world. On an ongoing basis, we are taking actions to reinforce our leading position and building on our momentum. I'll now turn the program over to Max to cover more details of the financial results. Max?

Thank you, Dan. I will now provide a financial update on Aflac Incorporated's results. For the 2025, adjusted earnings per diluted share decreased 2.7% year over year to 1.78 with a $04 positive impact from FX in the quarter. In this quarter, remeasurement gains on reserves totaled $37,000,000 reducing benefits. Variable investment income ran $35,000,000 below our long term return expectations, while one make whole call generated income of $35,000,000 Adjusted book value per share excluding foreign currency remeasurement increased 5.2%.

The adjusted ROE was 13.716.4% excluding foreign currency remeasurement, an acceptable spread to our cost of capital. Overall, we view these results in the quarter as solid. Starting with our Japan segment. Net earned premiums for the quarter declined 4.8%. Aflac Japan's underlying earned premiums, which excludes the impact of deferred profit liability, paid up policies and reinsurance declined 1.1%.

We believe this metric better provides insight into our long term premium trends. Japan's total benefit ratio came in at 66.5% for the quarter, down 40 basis points year over year. The third sector benefits ratio was 57.4% for the quarter, also down approximately 40 basis points year over year. We estimate the impact from remeasurement gains to be 83 basis points favorable to the benefit ratio in Q2 twenty twenty five. Long term experience trends as they relate to treatments of cancer and hospitalization continue to be in place, leading to continued favorable underwriting experience.

Persistency remained solid at 93.7%, which was up approximately 40 basis points year over year in line with our expectations. Our expense ratio in Japan was 20.6% for the quarter, up two eighty basis points year over year, driven primarily by an increase in technology expenses. For the quarter, adjusted net investment income in yen terms was down 10.5%, primarily driven by lower floating rate income, the impact on foreign currency on U. S. Dollar investments in yen terms and lower variable investment income, somewhat offset by higher coal income and higher returns on U.

S. Dollar fixed rate portfolios. The pretax margin for Japan in the quarter was 32%, down three thirty basis points year over year, but a very good result. Turning to U. S.

Results. Net earned premium was up 3.4%. Persistency increased 50 basis points year over year to 79.2%. Our total benefit ratio came in at 47.3, 60 basis points higher than Q2 twenty twenty four, driven by business mix. We estimate that remeasurement gains were in line with a year ago and favorably impacted the benefit ratio by 160 basis points in the quarter, as claims have remained below our long term expectations.

In the quarter, we benefited from favorable underwriting on our small, but growing long term disability block. Our expense ratio in The U. S. Was 36.3%, down 60 basis points year over year, primarily driven by platforms improving scale and continual focus on expense efficiency. Our growth initiatives, Group Life and Disability, Network Dental and Vision and Direct to Consumer increased our total expense ratio by 70 basis points for the quarter.

This is in line with our expectations and we would expect this impact to decrease as we continue to approach scale. Adjusted net investment income in The U. S. Was down 5% for the quarter, primarily driven by lower floating rate income. Profitability in The U.

S. Segment was very strong with a pretax margin of 22.5%, a 20 basis points decline compared with a strong quarter a year ago. In our Corporate segment, we recorded a pre tax gain of $20,000,000 Adjusted net investment income was $37,000,000 higher than last year due to a combination of lower volume of tax credit investments and higher asset balances, which included the impact of the internal reinsurance transaction in 2024. Our tax credit investments impacted a corporate net investment income line for U. S.

GAAP purposes negatively by $8,000,000 in the quarter with an associated credit to the tax line. The net impact to our bottom line was a positive $1,000,000 in the quarter. To date, these investments are performing well and in line with our expectations. Higher total adjusted revenues were offset by higher total benefits and adjusted expenses of $90,000,000 driven primarily by internal reinsurance activity, higher costs pertaining to business operations and higher interest expense. During the quarter, we raised debt of 150,000,000,000 yen which translates into slightly over $1,000,000,000 to pre fund our twenty twenty six maturities and to create liquidity and capital flexibility at the parent company.

This debt issuance combined with a significant dividend from Aflac Japan increased our unencumbered holding company liquidity to $5,100,000,000 which is $3,400,000,000 above our minimum balance. Our capital position remains strong and we ended the quarter with an SMR above 900% and an estimated regulatory ESR above 240% following the previously mentioned dividend. While not finalized, we estimate our combined RBC to be greater than 600%. These are strong capital ratios, which we actively monitor, stress and manage to withstand credit cycles as well as external shocks. We repurchased $829,000,000 of our own stock and paid dividends of $312,000,000 in Q2, offering good relative IRR on these capital deployments.

We will continue to be flexible and tactical in how we manage the balance sheet and deploy capital in order to drive strong risk adjusted ROE with a meaningful spread to our cost of capital. During the quarter, we increased our CECL reserves associated with our commercial real estate portfolio by $33,000,000 net of charge offs as property values remain at distressed valuations. We also foreclosed on three loans adding them to our real estate owned portfolio consistent with our strategy for maximizing recovery values. Our portfolio of first lien senior secured middle market loans continued to perform well with decreased CECL reserves of $23,000,000 in the quarter net of charge offs. For U.

S. Statutory, we recorded a 7,000,000 valuation allowance on mortgage loans as an unrealized loss during the quarter. On a Japan FSA basis, there were no security impairments in Q2, but we did book a net realized gain of 70,000,000 yen related to transitional real estate loans. This is well within our expectations and has a limited impact on regulatory earnings and capital. Our leverage was 22.5% for the quarter, which is within our target range of 20% to 25%.

As we hold approximately 65% of our debt in yen, this leverage ratio is impacted by moves in the yen dollar exchange rate. This is intentional and part of our enterprise hedging program, protecting the economic value of Aflac Japan in U. S. Dollar terms. I would like to reiterate our approach to managing foreign currency exposure.

Fundamentally, we size our unhedged U. S. Dollar exposure to the estimated economic surplus associated with our Japanese business. At the end of Q2, we held $27,100,000,000 of U. S.

Dollar assets in our Japan general account. Forward contracts at Inc. With a notional balance of $1,900,000,000 and $5,700,000,000 of the undenominated debt. We also hold $25,000,000,000 notional of out of the money put options, which provide tail protection against a large appreciation in the yen. Adding this up, we feel we're very well positioned on an economic basis.

Thank you. I will now turn the call over to David.

Thank you, Max. Before we begin our Q and A, we ask that you please limit yourself to one initial question and a related follow-up. You may then rejoin the queue to ask additional questions. We will now take the first question.

And our first question comes from Ryan Krueger from KBW. Please go ahead.

Hey, thanks. Good morning. My first question was on cancer sales. You obviously had a really nice pickup following the launch of the Morocco product. My question is more on how long you think the benefit from the new product could have on sales and understanding that you tend to get the biggest benefit initially, but, you know, do you think you'll continue to see stronger cancer sales for the balance of the year because of the new product launch?

Thank you for your question. This is Yoshizunmi. Let me answer. We are feeling it the product has got the traction, and it is doing very well so far. And Miraiza was responding to the diverse customers and maintaining the high high competitiveness.

The biggest feature of Miraizo is its flexible protection design. And normally, the cancer reentrant offer that other companies were generally offered are offered as one package. So that means even if the policy holder is not requiring particular coverage, it is already included to what they buy. But when it comes to Aflac's Muraito, customers can purchase only the necessary coverage. That is how flexible it is designed.

So for those who are wishing to have a rich coverage, they can buy a lot of coverage. And for those who already have enough coverage, they can buy a minimum level of coverage. People can purchase the policy in a customized way. That is the biggest characteristic of Miraito. And also, Miraito carries the coverage that was not available by Aflac in the past.

So that was about the product characteristics. And along with that, this product carries our supporting, service, which is called Yoriso Cancer Consultation Service. And this has been developed thanks to our fifty fifty years of expertise and the relationship with a specialist. And this consultation support is not available outside of our So that was another characteristic of the platform. And therefore, the performance is that at all channels, we are plus year on year and also positive versus the plan.

So we anticipate this strong performance to continue for the time being and or longer than that of the past cancer insurance product. So let me reiterate once again that it has got attraction and really successful so far. Thank you.

Great. Yes. Thank you. And then, one separate question. On Japan investment income, it it seems like, you know, even if you make the adjustments for FX and BII and make whole, just that there was, like there was seems to be a step up in in the NII in Japan.

Can you give a little bit more color on things that that benefited your your NII trajectory there and if you think this quarter is, sustainable going forward?

Sure. Thank you, Ryan. Good morning. We did have a nice strong second quarter. It was a nice improvement over first quarter, and there were a few things that drove this.

The largest contributor was our variable NII from our alternatives book. That was about half the improvement. There was a little bit of seasonality there in second quarter because of the timing of some of the marks we get on fourth quarter comes in a little bit late in the first half of the year. But we also just had better marks on the portfolio overall. There's the make whole, which you mentioned. That was a nice pickup second quarter over first quarter. And then the rest was a combination of things. We accelerated some deployment. We pulled forward some activity to capture attractive opportunities that we saw in the first half.

And then we were quite active in what we call switch trades, where we sold lower yielding JGBs and we bought current yield JGBs at the current higher yields, and we also swapped into some nice credit assets to pick up yields there. In terms of the outlook for third quarter, we do think you should probably adjust for the make whole, although we've had two this year. Those are the one off items that are very difficult for us to predict with any certainty. On the variable NII, we are optimistic that we'll see a good solid second half of the year. There's a lot of reasons to be optimistic for a pickup there, but that does remain very difficult to predict Q on Q.

And then the benefit from the acceleration in the switch trades should continue to roll through for the back half of the year. So net net, we think we're very well positioned for a solid third quarter.

Our next question comes from Suneet Kamath from Jefferies. Please go ahead.

Thanks. Good morning. Max, I wanted to ask on ESR for a minute. One of your competitors disclosed their view that some of the companies in Japan are using sort of adjusted metrics that aren't true to the FSAs, I guess, formulas. Just wanted to get your thoughts on that and how you're approaching this ESR as you give us the disclosure every quarter. Thanks.

Thank you, Suneet. And I'll kick it off and I'll also ask if Steve Beaver in Japan have any comments as well. So ESR overall, you have today three versions of ESR. You have the regulatory ESR, you have the regulatory ESR with USP, and you have the internal models. We use the regulatory model with USP. The reason why is because this is what we believe that we should manage to. And that gives us the opportunity to adjust the regulatory model using risk factors that are specific to our business. And that means that they are more realistic on our business than the regulatory model is.

Right now, that gives us roughly an uplift over the regulatory model of about 30 points. And over time, we would hope that there will be an approval of our internal model as well, which obviously is closer to the real economics of the underlying business because there in the internal model, we would use our full internal experience. So we believe that this is the right approach and this is the right model to use.

Okay. That's helpful. Thank you. And then I guess on the cancer sales, can you just talk about how much of an impact was lapse reissue, if at all, in the quarter? And are you targeting these sales to newer customers? Or are you sort of going back to your in force customer base and selling the cancer policy? Thanks.

Let me kick it off on that, and Japan might want to give some more color. The early data that we have on lapse rate and reissue indicates that we are roughly in line or slightly below our internal expectations. So we have not seen a spike greater than what we normally would expect when we have a refreshed product out in the marketplace as it relates to lapse and reissue. Now you always have a little bit of an uptick, and that is expected. But so far, the data is indicating that we are in line with our expectations.

That there is always a little bit of a lag, though, and that means that as we go into the third quarter, we wouldn't be surprised if we see a little bit of an uptick in lapsation. Yes, Jim. Why don't you take the next question?

Let me answer from the sales perspective from Japan. We are selling both to our existing customers and new customers. And for existing customers, we can offer additional coverage that the policy holders do not have present. And with this flexible nature of this product, we can develop the new customer base. And one of the characteristic of this Muraito is the plan for children.

The premiums are extremely low, and they can enroll to the service. They can continue enrolling until the children becomes the age of 23. And they can fix the policy to the regular cancer insurance. And this product is gaining a great deal of attention from customers. And we are seeing new enrollment, especially from the younger and middle aged customers.

By leveraging such characteristics that I just mentioned, we anticipate to expand the new expander business to new policyholders in the future too. That's all. Thank you for your question.

The next question comes from Jack Matten from BMO. Please go ahead.

Hey, good morning. Just one on the remeasurement gains that you've been continuing to see in both Japan and The U. S. I guess given those, should we be thinking about any kind of change in your assumptions as part of the unlocking next quarter? And then just curious in Japan, do your assumptions assume kind of further improvement in cancer and hospitalization trends?

Aflac (AFL) Q2 2025 Earnings Call Transcript

Company Participants