AFLAC INC

Overview

Aflac Incorporated is an insurance company focused on supplemental health and life insurance, operating primarily through two segments: Aflac Japan and Aflac U.S. The company’s core business is providing financial protection by paying cash benefits when covered illness or injury occurs, and its stated goal is to offer customers the best value in supplemental insurance products in Japan and the United States.[1][2]

Its product portfolio is defined by supplemental protection products rather than primary medical coverage. In Japan, Aflac’s offerings include cancer, medical, nursing care and life insurance, while in the United States it sells products such as accident, disability, cancer and critical illness, hospital indemnity, dental, vision and life insurance. The company is authorized to conduct insurance business in all 50 U.S. states, the District of Columbia, several U.S. territories and Japan, with Japan representing a particularly important market; Aflac Japan is the principal contributor to consolidated earnings and is the largest insurer in Japan in terms of cancer and medical policies in force.[3]+3

As a size indicator, Aflac reported total revenues of $18.927 billion in 2024 and had 12,694 full-time employees at year-end, including personnel across Japan, the United States and corporate operations.[7][8] [1]+7

Products & services

Aflac’s U.S. products are primarily supplemental insurance policies that pay cash benefits regardless of other insurance, with individual policies typically portable and guaranteed-renewable. Its main U.S. offerings include accident insurance for individual and group customers, with lump-sum benefits for accidental death, dismemberment and specific injuries plus fixed hospital-confinement benefits and optional benefits for home modifications, wellness and sports-related injuries; short-term disability on an individual and group basis and long-term disability on a group basis, covering injury, illness and mental health conditions; cancer insurance that pays a lump sum at initial diagnosis and subsequent treatment benefits; critical illness plans that pay cash benefits for events such as heart attack, stroke or cancer; hospital indemnity products that pay fixed-dollar benefits for hospitalization, surgeries and diagnostic events, with a critical-illness lump-sum rider available on certain products; network dental and vision products for groups, individual fixed-benefit dental coverage, and Aflac Vision NowSM for serious eye conditions, loss of sight, corrective eye materials and exam benefits; and term- and whole-life insurance on both an individual and group basis.[4]+7

In Japan, Aflac’s core offerings are third-sector supplemental products designed to cover medical and nonmedical costs not reimbursed under the national health insurance system. These include cancer insurance, which provides a lump-sum benefit on initial diagnosis, fixed daily benefits for hospitalization and outpatient treatment, and cancer-related surgical and convalescent care benefits; the WINGS product, which adds coverage for newer cancer treatments and early detection; Aflac Yorisou Cancer Consultation Support, a service that supports policyholders from suspected cancer through treatment and recovery; medical insurance covering hospitalization, surgeries, outpatient treatment and lump-sum benefits tied to cancer, heart attack and stroke; and Nursing Care Insurance, which covers out-of-pocket costs for public nursing care services. Japan also offers first-sector life products including Prepare Smart Whole-Life Insurance, a low-cash-surrender-value whole-life policy with further discounted premiums for non-smokers; GIFT, a term life product that pays a designated family member a fixed monthly amount upon a breadwinner’s death or serious disability; Tsumitasu, aimed at post-retirement preparation with asset-formation and nursing-care-related benefits; WAYS, which lets policyholders convert part of their life insurance at a predetermined age into medical, nursing care or fixed annuity benefits; and Child Endowment, which provides a death benefit until age 18 plus a high-school lump sum and four years of educational annuities for college.[3]+7

By product mix, Aflac Japan’s premium base was 57.5% cancer, 16.1% medical and other health, 23.0% traditional life, 2.2% WAYS, 0.2% child endowment and 1.0% other, while Aflac U.S. was 26.3% disability, 20.9% critical care, 19.6% accident, 13.7% hospital indemnity, 14.2% life and 5.3% dental/vision.[23][24] [4]+17

Geographic presence

Aflac’s insurance operations are organized around two main operating geographies, Aflac Japan and Aflac U.S., which are its two reportable insurance business segments; the company also states that Aflac Japan is the principal contributor to consolidated earnings.[25][26] In 2024, Aflac Japan generated $9.659 billion of total adjusted revenues and Aflac U.S. generated $6.739 billion; measured against the two operating segments combined, that implies roughly 58.9% of segment adjusted revenues from Japan and 41.1% from the U.S.[27][28] On a full-company basis including Corporate and other, 2024 total adjusted revenues were $17.405 billion, of which Japan represented 55.5%, the U.S. 38.7%, and Corporate and other 5.8%.[29]

In Japan, Aflac has two primary campuses in Tokyo, including facilities for its call center, claims, IT, training, policy administration, customer service, and a second campus that serves as Aflac Japan’s headquarters and houses administrative and investment support functions; it also leases additional office space in Tokyo and maintains regional offices throughout Japan.[30] In the U.S., Aflac owns two primary campuses in Columbus, Georgia that serve as its worldwide headquarters and support U.S. administrative and IT functions.[31] The company also leases offices in Columbia, South Carolina; New York, New York; Tampa, Florida; Farmington and Windsor, Connecticut; and Plantation, Florida, and it notes additional administrative office space across the U.S., the United Kingdom, and Bermuda.[31]

As of December 31, 2024, Aflac had 12,694 full-time employees, with 6,737 in Aflac Japan, 5,041 in Aflac U.S., and 916 in Corporate and other, indicating a slightly larger employee base in Japan than in the U.S.[32] [25]+7

Business segments

Aflac reports two insurance business segments: Aflac Japan and Aflac U.S. The company also presents “Corporate and other,” which includes the parent company, non-reportable operating units, reinsurance activity and eliminations, but this is not identified as a reportable insurance business segment. Segment performance is disclosed primarily through adjusted revenues and pretax adjusted earnings.[33][34]

Aflac Japan is the larger segment and is focused on supplemental insurance products in Japan, especially “third sector” products intended to help cover medical and nonmedical costs not reimbursed under Japan’s national health insurance system. Its product set includes cancer, medical and nursing care insurance, alongside selected first-sector life and savings-type products. In 2024, Aflac Japan generated about 55.5% of consolidated adjusted revenues ($9.659 billion of $17.405 billion) and about 70.6% of pretax adjusted earnings ($3.494 billion of $4.945 billion).[3]+4

Aflac U.S. focuses on supplemental coverage in the individual and group insurance markets in the United States, primarily for policyholders who already have major medical or primary insurance. Its core offerings include accident, disability, cancer, critical illness, hospital indemnity, dental, vision and life insurance. In 2024, Aflac U.S. contributed about 38.7% of consolidated adjusted revenues ($6.739 billion) and about 28.7% of pretax adjusted earnings ($1.419 billion), while Corporate and other contributed the remaining roughly 5.8% of adjusted revenues and 0.6% of pretax adjusted earnings.[37]+9 [33]+15

Company history

Aflac traces its roots to 1955, when John Amos and his brothers Paul and Bill Amos founded the business in Columbus, Georgia; the holding company Aflac Incorporated was later incorporated in Georgia in 1973.[45][1] In 1964, the company shifted its U.S. sales model toward worksites and employer locations, using payroll deduction as a core distribution method.[45]

A major turning point came in 1974, when Aflac entered Japan and pioneered the cancer insurance market there, a step that became central to the company’s long-term development.[46] In 2000, Aflac Japan formed a strategic marketing alliance with Dai-ichi Mutual Life Insurance, expanding its reach in the Japanese market.[47] More recently, in 2018, Aflac completed the conversion of its Japan branch into a subsidiary, Aflac Life Insurance Japan Ltd., marking an important structural milestone in one of its most important markets.[48] [1]+4

Sources

• AFLAC INC — Full financial report (2024 Y)
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• www.aflac.com[45]
• newsroom.aflac.com[47]
• newsroom.aflac.com[48]