Aflac Inc.

Solid reported results; adjusted EPS slightly up, with some below-plan execution items - Q2 2026 net earnings: $1.63 diluted EPS; adjusted diluted EPS $1.75 (Dan Amos). - Q2 adjusted diluted EPS: +$1.1% YoY to $1.80 (Max Broden), *excluding foreign currency effects*. - Notable headwinds vs plan: reserve remeasurement impacts $46m total (benefits reduced), with $7m / ~$0.01 below plan; variable investment income $72m about $0.11 per share below long-term expectations. - Offsetting tailwinds: $26m U.S. expense contingency released (helped results ~$0.04/sh).

Japan: sales down YoY on tougher comps, but momentum + margin/balance sheet actions look constructive - Aflac Japan sales: down 5.6% to JPY 19.6B in Q2 (tough 2025 comparison after Miraito launch), but up ~7% for the first half. - Persistency: 92.7% in Q2 (in line with Q1), though Max noted some elevated lapse/reissue on newly launched products; expects stabilization as products mature. - Product performance: refreshed Tsumitasu (first sector savings-type) and Anshin Palette (medical, launched Dec 2025) both grew YoY; management emphasized second quarter and first half in line with expectations and expect 2026 Japan sales to exceed 2025. - Benefit ratio & guidance: Japan total benefit ratio 64%, down 250 bps YoY; management moved full-year view to high end of 60%–63% range (excluding annual actuarial review in Q3) based on YTD 63.4%.

U.S.: profitable growth continues, but net earned premium growth outlook softened slightly - Sales: +2.6% YoY in Q2. - Net earned premium: +2.3% YoY; net earned premium growth for 2026 now expected just below prior 3%–6% guidance low end (i.e., slightly less than before at the low end). - Persistency: 79.4%, up 20 bps YoY. - Benefit ratio: 49.5% in Q2, +220 bps vs Q2 2025 driven by higher incurred group disability claims vs last year’s favorable quarter; reserve remeasurement gains ~30 bps above plan. - Profitability: U.S. expense ratio 36.1% (down 20 bps YoY); pretax margin 20.9% (down 160 bps YoY due to the prior-year strong quarter).