AFLAC’S FINANCIAL ANALYSTS BRIEFING 2018

1

About This BookThis book primarily contains information about Aflac, most of which was given at the company’s 2018 Financial

Analysts Briefing held on September 26, 2018, at the Park Hyatt Hotel in Tokyo, Japan. All information is intended to provide a comprehensive discussion and analysis of Aflac’s operations. The information contained in this book was based on conditions that existed at the end of the second quarter 2018. Circumstances may have changed materially since these presentations were made. The company undertakes no obligation to update the presentations. This information was prepared as a supplement to the company’s annual and quarterly releases, 10-Ks and 10-Qs. This book does not include footnotes to the financial statements or certain items that appear in reports or registration statements filed with the Securities and Exchange Commission. We believe the information presented in this book was accurate at the time of the presentations, but its accuracy cannot be guaranteed.

Forward-Looking InformationThe Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide

prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. The company desires to take advantage of these provisions. This report contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” “may,” “should,” “estimate,” “intends,” “projects,” “will,” “assumes,” “potential,” “target”, “outlook” or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements.

The company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements: difficult conditions in global capital markets and the economy; exposure to significant interest rate risk; concentration of business in Japan; foreign currency fluctuations in the yen/dollar exchange rate; operation of the former Japan branch to a legal subsidiary; limited availability of acceptable yen-denominated investments; deviations in actual experience from pricing and reserving assumptions; ability to continue to develop and implement improvements in information technology systems; governmental actions for the purpose of stabilizing the financial markets; interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality or privacy of sensitive data residing on such systems; ongoing changes in the Company’s industry; failure to comply with restrictions on patient privacy and information security; extensive regulation and changes in law or regulation by governmental authorities; changes in tax rates applicable to the company; defaults and credit downgrades of investments; ability to attract and retain qualified sales associates, brokers, employees, and distribution partners; decline in creditworthiness of other financial institutions; subsidiaries’ ability to pay dividends to Aflac Incorporated; decreases in the Company’s financial strength or debt ratings; inherent limitations to risk management policies and procedures; concentration of the Company’s investments in any particular single-issuer or sector; differing judgments applied to investment valuations; ability to effectively manage key executive succession; significant valuation judgments in determination of amount of impairments taken on the Company’s investments; catastrophic events including, but not necessarily limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, terrorism or other acts of violence, and damage incidental to such events; changes in U.S. and/or Japanese accounting standards; loss of consumer trust resulting from events external to the Company’s operations; increased expenses and reduced profitability resulting from changes in assumptions for pension and other postretirement benefit plans; level and outcome of litigation; and failure of internal controls or corporate governance policies and procedures.

The estimated impact of tax reform, which is included in GAAP net income and equity, but excluded from adjusted earnings as defined, is a preliminary estimate and may be adjusted for the current and future periods, possibly materially, due to, among other things, further refinement of the company’s calculations, changes in interpretations and assumptions the company has made, tax guidance that may be issued and actions the company may take as a result of tax reform.

October 2018

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Table of ContentsSection I – Aflac Incorporated

Aflac Incorporated Strategic Overview ..............................................................Daniel P. Amos ...................................3Aflac Incorporated Financial Outlook .................................................................Frederick J. Crawford .........................7Capital Management ........................................................................................Max K. Brodén ................................. 11Aflac Global Investments...................................................................................Eric M. Kirsch ................................... 14Actuarial and Risk Discussion ...........................................................................Albert A. Riggieri ............................... 18

Section II - Aflac Japan Overview of Japan’s Political Economy .............................................................Charles D. Lake II .............................25Overview of Aflac Japan ...................................................................................Masatoshi Koide ...............................29Aflac Japan Sales and Marketing Overview .......................................................Koji Ariyoshi ......................................35

Section III - Aflac U.S.Overview of Aflac U.S. .....................................................................................Teresa L. White ................................. 41Aflac U.S. Growth Strategy: Capitalizing on Market Opportunity Through Increasing Access and Penetration ..................................................Richard L. Williams Jr. ......................45

Section IV - Other InformationAppendix ................................................................................................................................................................... 51Aflac’s Historical Highlights in the United States .........................................................................................................52Aflac’s Historical Highlights in Japan ..........................................................................................................................53

Aflac has been an innovator and a pioneer in the insurance industry ever since the company was founded in 1955. Although much has changed in the decades since, our customer-centric approach to business still revolves around a simple promise: Aflac will be there for our policyholders in their time of need.

We have a strong business model that revolves around creating relevant products and expanding our distribution to yield new customers. As consumer preferences evolve around what products and benefits they are seeking, we’ll continue to adapt to ensure we meet and exceed their expectations.

Today, you only have to pick up a newspaper or click on the internet to see that the topic of social responsibility is top of mind. It’s what many of our shareholders are asking about, so as CEO, it’s on my mind too. I’d like to address how we see social responsibility.

Being a good corporate citizen has always been on my mind, and it’s been a central part of our activities as long as I can remember. I don’t think it’s coincidental that Aflac has achieved success while focusing on doing the right things. Let’s be clear: profits and shareholder returns determine whether a company is successful or not. But all things being equal, I believe employees, investors, and customers would rather do business with a company that’s also a good corporate citizen.

Understand, I am sti l l focused on al l the same responsibilities I’ve always been focused on; but this is a hot topic today, and I feel the need to address it. So in addition to our management team covering our business approach, outlook and strategy, I want to give you another element of our company that is made possible by the business results we achieve.

Nowhere is there a better example of investors’ growing focus on social responsibility than BlackRock CEO Larry Fink’s most recent letter to CEOs where he said: “Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society without a sense of purpose, no company, either public or private, can achieve its full potential.”

Two Worthy Causes: 20+ Years

I can say that at Aflac, we have been working on our social purpose to reach our full potential for more than 20 years. To prove it, since 1995, the Aflac family has been focused on the Aflac Cancer and Blood Disorders Center of Children’s Healthcare of Atlanta. We have given more than $127 million, with more than half of that coming from our field force of independent agents and employees.

Social responsibility has also been important in Japan. In Tokyo and Osaka, the three Aflac Parents Houses have supported more than 130,000 children and families over the last 17 years. We believe that our efforts have also helped children and families with cancer and strengthened our brand reputation and overall sales.

Now, we are taking our fight against pediatric cancer to the next level in a very innovative way that you may have heard about. In January, My Special Aflac Duck, a social robot that uses medical play, lifelike movement and emotions to engage and help comfort kids during their cancer care, was recognized as the best unexpected product among the 3,900-plus vendors at the Consumer Electronics Show in Las Vegas. The buzz was so big that it generated more than 2 billion media impressions – that’s a lot of free press! To say that we are excited about it is an understatement, as we believe My Special Aflac

Aflac Incorporated Strategic OverviewDaniel P. Amos

Chairman; Chief Executive Officer; Aflac and Aflac Incorporated

Section IAflac Incorporated

3

4

Duck symbolizes our mission to help others while making our brand even more outstanding as we move forward. We have been working on this project for two years and will donate more than $2 million annually as part of this initiative.

My Special Aflac Duck

I think you can understand why we’re excited about it because we’ll be helping children, and at the same time, people want to do business with a company helping others.

Each year, more than 15,000 kids are diagnosed with cancer, and the average treatment is more than 1,000 days. Going forward, our goal is to give a My Special Aflac Duck to every child bravely battling cancer.

Since the story ran on Good Morning America in September, our phones have been ringing off the hook from pediatric hospitals wanting My Special Aflac Ducks for their patients. The positive impact to the Aflac brand has been enormous, and this is exactly the type of thing that Larry Fink is talking about when it comes to making a difference.

Koide-san, president of Aflac Life Insurance Japan, shared a letter with me from a brave 10-year-old Japanese boy who had been diagnosed with a brain tumor about six years ago. He had read in Japan about My Special Aflac Duck’s debut at the Consumer Electronics Show. This little boy’s letter emphasized the notion of how powerful this innovative expansion of our brand could be. Plus, it convinced me that we need to bring My Special Aflac Duck to Japan, which we hope to do as early as next year! This kind of initiative reinforces that while striving to achieve our financial objectives, Aflac is also a company that actively seeks out ways to do the right thing for all our constituents. Most importantly, we believe these actions exemplify the type of company people seek out to conduct business with.

Remember, we sell an intangible product – it is just a promise on a piece of paper, or in this day and age, typed words on an electronic policy. My Special Aflac Duck demonstrates the compassion of our brand and lets people

understand the kind of company we are. At the same time, it gives us a symbol of Aflac that they can touch and feel.

After seeing this and understanding what we’re doing, I believe most people will want to be associated with a company that is doing something like this. Ultimately, we believe that this is a more sustainable approach to business and one that will continue to increase shareholder value.

One Day Pay

Presentations from this event include information about other ways we are applying technology within our operations.

You have most likely heard me mention our introduction of One Day Pay in the U.S. This is our groundbreaking initiative to process, approve and pay eligible claims in just one day, getting cash in the hands of our policyholders fast. One Day Pay has benefited customer satisfaction, increased referral opportunities and differentiated us from our competitors. Most importantly, more than 90% of our policyholders that have used One Day Pay say they are likely to refer other people to Aflac. Today, getting 90% of people to agree on anything is quite hard to do. One Day Pay is a symbol of Aflac’s innovation and transformation not just of our company, but of the industry.

Today, we are leveraging technology like automation and robotics to reduce the risk of errors. This allows us to handle heavy work volumes without having to add to our full-time employee headcount.

We are always looking ahead to the next wave of digital and mobile innovations for reaching and better serving our customers, while at the same time, improving our operations. This means that we will continue to address the evolving needs of each market as customer preferences continue to change.

A symbol of

innovation

and

transformation

for both Aflac and the Industry

5

Aflac Strategic Areas Of Focus

Our approach to driving long-term shareholder value is straightforward.

We are laying the foundation for growth through product development and digital distribution expansion.

As the pioneer of cancer insurance in both Japan and the United States, innovation has always been, and continues to be, a hallmark of our success. Every day, we think, “How can we use technology to better understand the customer, gain their trust, exceed their expectations – and improve their lives?” This innovative spirit applies to the creation of products and distribution expansion as well. We have fostered a culture of innovation to ensure that we offer products and solutions that are relevant today and in the future.

In addition, we are taking action to remain in step with customer preferences about where our customers want to buy coverage. Our ability to adapt and innovate significantly contributes to our long-term growth and success. We are focused on digital advancements to improve the customer experience, driven by venture investments that are relevant to our core business.

We realize that a sustainable business model requires us to invest in our operations, and this is especially true in today’s technologically advanced world. Aflac has, and continues to, incorporate technology into our strategy. I have always said that being the low-cost producer has, and will ultimately continue to be, what drives our ability to win. I believe technology is the only way to be the low-cost producer.

We successfully completed our Aflac Japan branch conversion to a subsidiary in April. While it went almost unnoticed, we’re very glad it took place, and it better prepares us for the future. The conversion reaffirms Aflac’s long-term commitment to serving our policyholders in Japan. It also better aligns our capital within legal entities. We are now positioned to optimize our deployment of excess capital.

Positioned For The Future

We place a high priority on ensuring we have the right people in the right places at the right time. As you’ve heard me say before, another critical aspect of my job is leadership development and succession planning. This incorporates the knowledge and skill set already inside the organization with the expertise and fresh ideas of people who join our company.

In coordination with our Human Resources department, I prepare a formal overview of our succession planning process to present to Aflac Incorporated’s board members at every August board meeting. This includes annual recommendations and evaluations of potential successors, along with a review of any leadership development plans for such individuals. In recent years, you have witnessed our succession planning in action as some leaders retire and new roles are developed.

I’m sure you know our veteran senior management team, including Charles Lake, Teresa White, Audrey Tillman and June Howard. Their track records are outstanding. You also know Fred Crawford, chief financial officer, and I view him as the most impactful addition to our team in recent years. He stepped into some big shoes when Kriss retired, and he has done an outstanding job; his work speaks for itself.

Koide-san is a winner and he is doing an outstanding job as president of Aflac Life Insurance Japan. We’re expecting big things from him and his team at Aflac Japan in the future, including John Moorefield, Ariyoshi-san and Kijima-san. In January of this year, Teresa promoted Virgil Miller to head up Aflac U.S. Operations and Aflac Group, and he is doing a stellar job. Last year, Teresa hired Rich Williams, executive vice president and chief distribution officer. Rich continues to build his U.S. distribution team including Stephanie shields, who was recently promoted to senior vice president over broker sales, and Andy Glaub, senior vice president of sales, who oversees Aflac’s independent career sales force. Over the last few years, Todd Daniels has been instrumental in bolstering our financial, actuarial and risk teams by hiring Al Riggieri as senior vice president; global chief risk officer and chief actuary and Joey Nichols as senior vice president and U.S. chief actuary. With this 50 years of experience combined, they are doing an outstanding job. Eric Kirsch has developed a world-class investment operation and team in New York and Tokyo. Hideto Yamamoto, senior vice president and chief investment officer, of Aflac Life Insurance Japan, is on a panel at this event.

With all this emphasis on the rest of the management team, a lot of you may be wondering if this is my way of telling you that I’m retiring. The answer is no! As I’ve told you before, I’m committed to staying until I’m at least 70 because I still enjoy building and watching the company grow with this strong management team.

It has been our experience at Aflac that everyone wins when we surround ourselves with a diverse group of people. Each person on Aflac Incorporated’s board, as well as on our management team, brings different life experiences – and different ideas – to the table. Diversity ensures that we gain insight into how other people think. I firmly believe that fostering a diverse workforce isn’t just the right thing to do; it also makes good business sense!

Succession Planning

Leadership Development

Diversity

Foundation of Financial Strength

• Maintaining market leadership through innovation and technology• Expanding products, solutions and distribution• Enhancing customer experience• Driving efficiencies in operations

• Aligning and optimizing capital

6

You can see diversity reflected in the composition of our board of directors, leadership and employees. For example, 55% of Aflac Incorporated’s board members are minorities or women. Of the more than 4,800 Aflac employees in the U.S., 77% are ethnic minorities and 66% are women; 34% are ethnic minority women. In 1997, Aflac became the first life insurance company in Japan to name a woman to an executive management position. Since then, Japan’s executive management team has consistently included women. Aflac Japan’s Women’s Leadership Program began in 2014. Most importantly, this initiative has successfully helped raise the percentage of women in leadership positions from 17.6% to about 29% in four short years. Our goal was to be at 30% by 2020, and I think you probably know that we won’t be satisfied with stopping there.

We are proud to say that Aflac Japan was the first life insurer to be awarded by Japan’s government the highest grade of certification for a company’s promotional efforts for women’s advancement in the workplace.

As you’ve seen from our second quarter earnings release, the first half of 2018 has been a good year. Let me emphasize that we understand driving shareholder value determines the success or failure of our company, and we are committed to that. We are also committed to living up to the promise we make to our policyholders.

I would like to recognize Charles Lake, president of Aflac International and chairman and representative director of Aflac Life Insurance Japan. In April, Charles was selected by the Japanese government to receive one of the nation’s highest awards, the Order of the Rising Sun, Gold Rays with Neck Ribbon. The award was originally established in 1875 and is awarded by the emperor of Japan to those who have made distinguished achievements in their respective fields. It is similar to the U.S. Presidential Medal of Freedom. Charles was decorated for his contributions to the development of the insurance and financial services industries, as well as helping to strengthen economic relations, friendships and goodwill between Japan and the United States. He attended a formal presentation ceremony in May at Japan’s Financial Services Agency, or FSA, and the Imperial Palace. We are all proud of him, and I am glad to have him as part of the Aflac team.

At Aflac, we manage our business for the long term while remaining laser focused on meeting our near and short-term financial objectives. Our approach to driving long-term shareholder value is straightforward: pursuit of growth, strong pretax margins and capital optimization.

First, we pursue growth by leveraging our strategic advantages in both Japan and the U.S., and through product development, distribution expansion, and digital advancements to improve the customer experience. This is bolstered by venture investments relevant to our core business. Building on our leading position in both countries will help position us for growth going forward.

Second, we seek to maintain our strong pretax margins through disciplined product pricing and leveraging a period of favorable benefit ratios to invest in our platform for future growth and efficiency.

Third, having completed our Japan branch conversion to a subsidiary, we are optimizing our capital and deploying excess capital in a very disciplined way that supports our long-term sustainability.

It goes without saying that we treasure our 35 years of consecutive dividend growth and want to continue that. When it comes to capital deployment, I continue to believe dividends and share repurchase are the most attractive means, and those are avenues we will continue to pursue.

At the same time, we will reinvest in our business to enhance organic growth. Within this framework, we will continue to drive shareholder value and do so by acting ethically and giving back to the communities in which we operate. Ultimately, we believe this is a more sustainable approach to business that will continue to increase shareholder value.

To wrap up, I just want to say that it is our people behind the results who bring it all together. As I mentioned, we place a high priority on ensuring we have the right people in the right places at the right time. I want you to know that we have a tremendous management team currently in place.

By staying disciplined and focusing on doing what we do best, I believe we will continue to generate results that build long-term shareholder value.

Drivers of Long-Term Shareholder Value

Our approach to driving long-term shareholder value is straightforward: we pursue growth through product development, d istr ibut ion expansion, and dig i ta l advancements to improve the customer experience. We augment this by venture investments with application to our core business. We seek to maintain our strong pre-tax margins through disciplined product pricing, stable investment returns and leveraging a period of favorable benefit ratios to invest in our platform for future growth and efficiency.

Now having completed our Japan branch conversion to a subsidiary and better aligned our capital within legal entities, we are now positioned to optimize our free cash flow and deployment of excess capital generation.

We are guided by our view of defending and building economic value. Examples include our shift from first sector savings to protection products, greater emphasis on value of new business metrics and overall retention efforts, and from a finance and investment standpoint, hedging strategies that reduce shareholder exposure to yen/dollar volatility and our overall investment strategy and build of floating rate and alternative assets. We look to build economic value while distributing a portion of that value annually through consistent dividend growth and share repurchase.

Aflac Corporate Ventures

Before commenting on margins, I want to spend some time on how we approach venture investing and incubation of non-organic business development opportunities. Two years ago we formed Aflac Corporate Ventures and named Nadeem Kahn as president of that operation. Nadeem comes with a rich background in strategic planning and corporate development and knowledge of Aflac’s core business model.

Aflac Corporate Ventures is a venture holding company that owns several key platforms. These platforms include our venture capital fund, which I will touch on in more detail in a moment. In 2015 we acquired a technology business in Charlotte, N.C. called Empowered Benefits, now shortened to Empowered to denote its recently broadened scope. Empowered specializes in the benefits administration space and is the technology engine powering Aflac’s Everwell enrollment platform in the U.S. We have since expanded this technology center to include digital innovation and the development of growth opportunities in the digital distribution space. Empowered’s location in Charlotte is not an accident, as it is a vibrant “Fintech” environment and the home of both Bank of America and Wells Fargo retail platforms.

Aflac Incorporated Financial OutlookFrederick J. Crawford

Executive Vice President; Chief Financial Officer, Aflac Incorporated

7

Aflac Incorporated

Aflac Corporate Ventures

Aflac Ventures Fund

Columbus, GA

$100 million global venture investment

fund, which was increased to $250

million in September 2018

Empowered Benefits

Charlotte, NC

Independent technology platform for

enrollment and benefits

administration solutions

Aflac Corporate Ventures Japan Aoyama, Tokyo

(Shibuya)

Will originate venture

investments in Japan and Asia as part of Aflac Japan

Innovation Lab

Empowered Innovation

Charlotte, NC

Will develop inorganic growth

opportunities leveraging digital technologies and

innovation

~$300 million of capital invested or committed since 2015

Denotes entity to be formed

Product Development • Digital Distribution • Ventures

Align • Optimize • Deploy

Capital

Benefit Trends • Investments • Transformation • Productivity

Margins

Growth

Economic Value-Based Criteria

Finally, we are in the process of forming Aflac Corporate Ventures Japan that, much like Empowered, will focus on non-organic digital innovation and venture investing in Japan. This group is located near Shibuya, which is the digital and technology center of Tokyo.

We have committed approximately $300 million of capital to our overall venture efforts, a subset of which is in our venture fund activity. Dan and I view this as an essential piece of our strategic investment in future growth. There is also a risk management aspect: we guard against the risk of disruption by participating in the development of next generation solutions.

Aflac Corporate Venture Fund

Focusing specifically on our venture fund investments, last week we announced an increase in Aflac’s global venture capital fund from $100 million to $250 million. We expect to put this capital to work over a three to four year period as attractive opportunities present themselves. This slide captures our current activity as a $100 million fund investing in the U.S. and Japan.

We source transactions in many forms and have reviewed over 1,000 opportunities since inception of the fund. Plug and Play and Carolina Fintech Hub are examples of accelerators we use to source transactions.

At the same time, we naturally come in contact with interesting opportunities in our day-to-day business activities and are now a recognized name in the corporate venture community. Recently we have started to see attractive opportunities actually find Aflac as we bring both capital and potential for powerful growth to a target company.

To date, we have funded or have commitments in place for nearly $55 million of this fund. The common element of companies we invest in is technology or digital-based with a direct commercial application to our business. We are well diversified, and our holdings typically involve both an equity investment and a commercial contract with Aflac Japan or Aflac U.S.

We increased the size of the fund as we are now moving beyond early-stage companies with average investment size of $1 to $6 million to later-stage companies that may call for larger second or third round funding requirements. We are also investing in “Insurtech” funds requiring larger investments. This is all to provide greater diversification and stronger market coverage while showing our commitment to the space.

Aflac Japan: Strength in Core Margins

Turning now to cover our outlook for core insurance margins, I’ll start with our business in Japan. We have started the year strong with pretax margins near record levels. There are notable items influencing these results, namely strong investment income results, the introduction of our new cancer product and timing of expenses expected to increase in the second half of the year. Our full year forecast is for pretax margins to remain strong around 21%.

The shift in earned premium is expected to continue lowering our reported benefit ratios. We expect benefit ratios in our core lines of cancer and medical to remain strong. Claims trends continue to benefit from fundamental changes in Japan’s health care system, including natural incentives to reduce total days of hospitalization. Therefore, we have lowered our expected benefit ratio range by 100 basis points.

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Total Fund - $100M Sector Allocation - $54.8M

5.3

20.0

10.1

2.3

0.3

11.0

5.8

Benefit EcosystemExternal FundsOtherUnderwriting InnovationHealth & WellnessData Analytics & AutomationDistribution

$54.8$45.2

Invested to DateRemaining Funds

Allocation by Stage - $54.8M Highlights

• Increased fund to $250 million 9/18• Evaluated over 1000 opportunities

to date• Closed on $23.4 million of

investment to-date with $31.4 million under evaluation • Aligned with Aflac businesses in

Japan and U.S. via commercial relationships• Strategic partnerships with global

accelerators like Plug and Play & Carolina Fintech Hub

2.1

13.9

20.0

18.8

Seed Early StageExternal Funds Late Stage

Note: Allocations include current and proposed investments as of August 31, 2018

Current Investments

1 Benefit ratio measured to earned premium2 Expense ratio measured to total revenue

Aflac Japan

Revenue CAGR (-1%)

Considerations • Business mix • IT and digital investments• Net investment income

Long-Term Targets (2022)• Expense ratio of ~20%• Offsetting benefit ratio

decline • Keys: Business mix and

revenue

1H 2018 2018e 2018e – 2020eTotal Total Total

Benefit Ratio1 69.8% ~70% 69.0 - 71.0%Expense Ratio2 19.8% ~20% 19.5 - 21.5%Pretax Profit Margin

21.5% ~21% 19.5 - 21.5%

9

The shift in business mix applies pressure to our expense ratio, but the ratio is also influenced by continued investment in IT and digital advancements. We are projecting modestly higher lapse rates in select lines of business. This impacts earned premium and elevates DAC amortization, applying further pressure to expense ratios. However, this pressure tends to be offset by improved benefit ratio performance as you release reserves. Revenue is a key challenge in Japan with the run-off and paid-up status of first sector savings product. This in turn, is very good for FSA earnings, cash flow and economic value development.

Last year, we established an enterprise approach and project management team to drive operating efficiencies across the company. We continue to periodically refresh our five-year estimates for our expense ratio as our efficiency efforts progress. We noted last year that we were targeting the mid-point of an 18 to 20% expense ratio by 2022. Post conversion and with revised estimates for product mix, persistency, and capital management plans, we have modified that target and are now projecting a five-year goal of around 20%. Very importantly, this is heavily influenced by the pace of business mix shift and calibrating lapse rates. Therefore, you should expect most, if not all, of this increase to be offset by a lower benefit ratio, thus preserving our strong pretax profit margins.

Aflac U.S.: Stable Profit Margins

Turning to the U.S., our overall profit margin is expected to remain strong, and we believe it’s prudent for us to reinvest some of these profits back into our business to both defend and build market share.

Benefit ratios have been trending favorably for the past few years. We think trends in health care utilization and hospitalization will continue in the near future, as consumers struggle to afford higher deductibles and copays. We generally price our products for higher benefit ratios and, assuming the business performs to our pricing expectations, we would expect some natural upward pressure on our ratios from new business over the long run.

The expense ratio in the U.S. has been elevated recently as we have been actively investing in our U.S. platforms, in both the group and individual business models. Realize that as you pull excess capital out of the U.S., you modestly reduce net investment income and impact the segment’s revenue and expense ratios over time. As is the case in Japan, investment income has been a helper in 2018 relative to our forecast, which has benefited year-to-date margins.

Earned premium is expected to grow in the 2 to 3% range assuming a 3 to 5% compound annual growth rate in sales, and reflecting recent improvements in persistency. Having pulled out excess capital and related investment income, this translates into overall revenue growth of approximately 2%.

In terms of our long-term 2022 forecast for expense ratio, we remain generally in line with last year’s long-term outlook, at the low end of the 33 to 35% range. There is upward pressure related to mix of business as relative strength in broker-sold group business has a lower benefit ratio and higher expense ratio. Specifically, it’s broker-sold group business that has that dynamic.

Enterprise Capital Initiatives

We have set our core capital policies consistent with AA-rating standards at the insurance company and A-rated senior debt levels. Any efforts to optimize our capital structure and lower our cost of capital starts and ends with our view of risk and the promises we make to our policyholders for financial soundness.

Having finished the branch conversion and recognizing 2018 as a year of transition, we have turned our attention to optimization with the goal of yielding benefits in 2019. Four key areas of focus include:

First, we are reviewing our Japan dividend policy as a new subsidiary. We have a stated dividend policy of 80% of FSA earnings. However, this has resulted in a build of excess capital in recent years as FSA earnings have increased and credit conditions have been strong. Our overall low-risk profile gives us opportunity to increase dividend capacity.

Second, we are committed to our current risk-based capital (RBC) drawdown plan, but will work with the rating agencies and regulators to assess the risk profile of our U.S. business for more efficient capitalization. There are a lot of moving parts impacting RBC currently, but we expect to make a case for our low-risk profile and ability to run at a more efficient level in time.

Japan Dividend Policy

U.S. RBC Drawdown

Aflac Incorporated Available Capital

Japan’s USD Optimization

Underpinned by Disciplined Risk Management

Increase Capacity

Manage to Risk Profile

Hedge Yen Exposure

Enhance USD NII

Aflac U.S.

• Business mix • IT and digital investments• Excess capital drawdown

Revenue CAGR ~ 2%

Considerations Long-Term Targets (2022)• Expense ratio in 33-34%

range• Earned premium CAGR of

~2.5% • Keys: Sales, retention,

execution

1H 2018 2018e 2018e – 2020eTotal Total Total

Benefit Ratio1 50.5% ~51% 50.0 - 52.0%Expense Ratio2 34.1% ~35% 34.0 - 36.0%Pretax Profit Margin

21.1% ~19.5% 18.0 - 20.0%

1 Benefit ratio measured to earned premium2 Expense ratio measured to total revenue

10

Third, we hold a level of excess capital and liquidity at the holding company, but can better leverage that idle capital to support a more efficient approach to reducing enterprise hedge costs and our shareholder’s long-term economic exposure to the yen.

Finally, we continue to work towards the optimal amount of unhedged USD investments to hold and believe, with rising hedge costs, this is an effective use of excess capital in Japan to improve net investment income over time.

Capital Deployment: Under Stable Conditions

Let me pull it all together for you as to what this means for deployable capital.

We generated a little over $6 billion in deployable capital in the three-year period ending 2017. Importantly, recall that 2015 was a period that included reinsurance benefiting FSA earnings in Japan and higher overall repatriation. In addition, this was a period of limited net impairments and realized investment losses. As we look forward to the next three years, we benefit from U.S. tax reform adding approximately $250 million to our annual deployable capital and the drawdown of $1 billion of excess capital in the U.S. We have an opportunity to adjust our insurance subsidiary dividend policy. The range of annualized dividends paid by our insurance subsidiaries to the holding company of $2.0 to $2.5 billion simply represents the difference in 80% and 100% of regulatory earnings. In the end, we see a three-year range in deployable capital of $6.5 to $7.5 billion. This all assumes stable market conditions and a productive dialog with regulators and rating agencies.

With the exception of investing in core business growth and efficiency efforts, share repurchase continues to be the standard against which all other alternatives compete for our deployable capital. We want to remain tactical in our use of capital for repurchase within our guidance range. As Dan noted, we are committed to maintaining our track record of cash dividend increases. Our dividend policy is guided by growth in adjusted earnings per share taken together with free cash flow generation, and capital quality.

We’ve allotted an “opportunistic” portion in our capital deployment plans. We will look for opportunities to enhance our business through corporate development activity, with a focus on digital distribution and leveraging our franchise strengths of brand, distribution and scale. This includes our venture investing within Aflac Corporate Ventures covered earlier in my comments.

Our allocations illustrated here are not designed to be a precise estimate, but directionally how we would show our capital deployment priorities and approach. As is the case each year, we will give more precise guidance for 2019 on our December Outlook Call.

2015-2017 $6.1 billion1

2018-2020 ~$6.5bn to ~$7.5bn

Considerations

• Run-rate annualized insurance subsidiary dividends2 of $2.0 billion to $2.5 billion

• Deployable Capital – excess capital after reinvestment in core insurance businesses

• 2018-2020 range includes excess U.S. capital deployment of ~$1.0 billion in 2018 and 2019

• Opportunistic represents amounts available for repurchase, retention, or reinvestment

Dividends

Repurchase

Opportunistic

1 Amounts include repatriation of FSA earnings generated from reinsurance transaction;2 Assumes average exchange rate of 110 ¥/$ and excludes dividend of excessU.S. capital in 2019.

11

2018 is a year of transition where we move capital around the group, get better capital alignment and set us up for a more efficient capital structure in the future. During this process we are travelling with elevated capital and liquidity levels at the holding company in order to facilitate this long-term goal.

Post the branch conversion we have continued to perform more economic analysis of our business, balance sheet and risk exposures. This includes comprehensive stress testing, which gives us comfort to execute on a number of capital management initiatives due to the financial stability of all of our legal entities. In both Japan and the U.S., this includes a refreshed view of determining dividend payout ratio. In the U.S., we continue to draw down our RBC ratio toward 500%, and at the holding company we are deploying capital to internalize hedge costs and lower the investor exposure to the yen.

All these projects have a common theme: they are driven and underpinned by an economic value perspective and framework, as well as disciplined risk management.

Aflac Japan Capital Optimization

At June 30, 2018, we estimated Aflac Japan’s Solvency Margin Ratio (SMR) to be 950%, which is down from the SMR of 1030% at March 31, 2018, immediately before Aflac Japan’s conversion to a subsidiary. The decline was primarily due to a reclassification of retained earnings to the other capital account within paid in capital, triggering a temporarily lost tax gross up benefit of approximately 130 SMR points. We anticipate this will rebuild within three years, as retained earnings grows due to dividends being paid out of the other capital account.

Earnings power remains strong, with FSA earnings growth expected to be higher than Adjusted Earnings growth. This is important, as FSA earnings drives regulatory capital formation and our dividend capacity.

As a reminder, Aflac Japan is now governed by the Japan Corporation Act, which states that the dividend capacity is composed of retained earnings plus other capital reserve less net after-tax unrealized losses on Available For Sale (AFS) securities. As our estimated dividend capacity is sufficient, we think our dividend payout ratio is likely to be in the range of 80-100% in order to sufficiently fund growth while also giving room for higher payouts when the SMR ratio and economic conditions would allow such action.

Our Economic Solvency Ratio (ESR), which is based on internal models or in other words our historical experience, in line with common practice for Solvency 2, continues to be a guiding model for capital decisions and regularly reported to the FSA through our Own Risk and Solvency Assessment (ORSA) submission. This ratio is in the 160-170% range without an Ultimate Forward Rate (UFR), which we estimate would add 70-80 points if incorporated.

FSA field testing of an economic solvency ratio is influenced by the development of International Capital Standards, or ICS, which remains fluid and is not expected to be adopted before 2025. Our ICS ratio is currently lower than ESR primarily due to more severe prescribed morbidity and lapse risk charges compared to our internal model and our experience, but it is still at a healthy level. Overall we have a strong economic capital position.

Aflac U.S. Capital Optimization

Our U.S. RBC ratio and capital are developing according to our drawdown plan laid out last year, with $500 million of additional dividends over and above our normal statutory dividends in both 2018 and 2019. This means that we expect to end 2018 with an RBC of around 650% and 2019 around 550%. This includes the impact of tax reform, but excludes the impact of C1 changes. If we were to include our early estimation of C1 changes, this ratio would decline by about 40 points.

Our statutory earnings are growing and are supported by strong benefit ratios and improved investment income

Capital ManagementMax Brodén

Senior Vice President; Treasurer; Head of Corporate Development

SMR Sensitivity as of June 30, 2018 (% points1)

Yen rates +1% (65)

Dollar rates +1% (50)

Yen strengthens +10 (45)

Credit spreads +1% (95)

Regulatory Minimum

SMR ~950% (as of June 30, 2018)

350%Market

Volatility Provision

600%

500%

FSA Earnings Projection(Fiscal year ending March, ¥ in millions)2

Includes Unrealized

Gains

• Up to 100% of FSA earnings (previously 80%)

• AFS portfolio and foreign currency influences SMR, FSA earnings and ultimate dividend capacity:

FrameworkMinimum

200%

Retained earnings + Other capital reserve - Unrealized after-tax net loss on AFS

Dividend capacity 1 SMR sensitivities to rates, spreads and currency movement are not linear 2Assumes 110 ¥/$.

Dividend Policy

150,000160,000170,000180,000190,000200,000210,000220,000

2018 2019e 2020e 2021eRepresents asset impairment and realized loss budget

2018e 2019e

RBC before drawdown ~850% ~650%

U.S. excess capital utilization1 $500mm $500mm

RBC after drawdown 1,2 ~650% ~550%

Statutory dividendrequest Extraordinary Extraordinary

1 RBC projections include the full impact of tax reform and excludes the impact of proposed C-1 changes

2 Includes annual Aflac U.S. only dividends generated from operations at 80% of statutory net earnings

Drawdown of Pro Forma U.S. Stand-Alone RBC

$1 billion capital drawdown began in 2018 – 2019Targeting RBC of ~500% by year-end 2019

• Tax reform Company Action Level impact of 75 points included in 2018 forecast

• 2019 - 2020 annual statutory net earnings run-rate of $725 to $775 million• Ordinary dividend of 80% to 100% of U.S. statutory earnings

Considerations

U.S. Statutory Earnings Projection(Year ending December, $ in millions)

200300400500600700800900

2017 2018e 2019e 2020eRepresents asset impairment and realized loss budget

adjusting for the assets moved to the holding company as a function of the drawdown. This gives us the opportunity to plan for statutory dividends in the range of 80-100% of our statutory earnings. Over time we would expect our RBC ratio to be below the 500% level as we recognize the strength of the earnings profile, low risk and stability of our operations and low asset leverage, subject to discussions with ratings agencies and regulators.

Internalizing Hedge Costs: Reducing FX Exposure

Investors often tell us that when contemplating an investment in Aflac, there are two significant risks they evaluate and consider: the exposure to the yen and the level and volatility of hedge costs. At the holding company, we have launched an effort to reduce both of these risks.

As you know, in Japan we buy U.S. dollar corporate bonds and hedge them back to yen to synthetically create yen assets that match our yen liabilities. This also provides liquidity and a benefit from capital relief due to the currency hedge put on.

At the holding company, we have entered into forward contracts, which has resulted in the hedges becoming internalized and by buying USD and selling yen, we are effectively lowering our overall economic exposure to the yen while the Japan balance sheet continues to hold a synthetic yen asset.

The accounting follows the same concept as the hedge costs in Japan, but simply in the other direction effectively internalizing a portion of the hedge costs incurred.

Ultimately, this reduces our risk of hedge cost volatility, improves adjusted earnings as hedges are internalized, reduces GAAP net income volatility and reduces the yen exposure on an economic basis, enterprise wide.

Now, there is a limit to how much we can do, due to the capital intensity of this activity. As of June 30th, the Aflac Japan notional hedge balance was $9.8 billion, and the internalized portion was $1.25 billion, generating an income of roughly $7 million during the second quarter of 2018 in the Corporate & Other segment. Returns on capital are very attractive, so over time we would like to grow the internalized portion, but we will take a measured and risk conscious approach.

Aflac Incorporated Strong Capital & Liquidity

I have outlined strong capital generation and capital levels in the insurance subsidiaries. When we move up to the holding company, liquidity levels remain healthy with a total balance of $2.4 billion estimated at the end of 2018. When we determine any excess liquidity, we back out a minimum balance of $1 billion and $500 million that we currently have walled off to support our derivative activities, leaving a year-end excess cash position of $800-900 million. As you know, liquidity levels always fluctuate throughout the year driven by receipt of dividend payments from subsidiaries, which means that Q2 and Q3 tend to have the lowest ending balances. This liquidity is not trapped, though. It generates income and supports our foreign currency risk reduction activities described earlier, which generates a very strong return on capital.

Our debt maturity profile is healthy, with an increasing element of yen funding. We have become a regular issuer in the global yen market, which is very beneficial to us. We offer a stable, highly rated credit to yen credit investors, while achieving better matching of our cash generation and coupon payments, lowering the enterprise economic exposure to the yen and achieving a lower financing cost. We do expect the yen debt market to play a significant role in our future debt raising funding strategy.

Leverage continues to travel at the lower end of our internal target range of 20-25%. As a result, we have roughly $1.2 billion of potential senior debt capacity before we reach our internal leverage constraint of 25%. However,

12

• Enter into offsetting forward contracts at Aflac Incorporated to internalize hedge costs incurred in Aflac Japan KK• Offset the yen exposure in Aflac Japan KK by

increasing the U.S. dollar exposure at Aflac Incorporated

Overview

• The Japan policyholder remains neutral or benefits from the project• Improve U.S. GAAP Adjusted Earnings on an annual

run-rate basis• Internalize hedge costs in the most capital efficient

way possible• Keep our cost of capital and ratings in line with the

current state• Reduce net income volatility

Key Benefits

AFL Derivative Portfolios by Entity: Mark-to-Market Movements Due to Changes In USD/JPY

Derivative Counterparties1

Aflac Incorporated Buy USD/Sell JPY

(B2B Forwards/Dividend Hedges)

Aflac Japan KK Buy JPY/Sell USD

(U.S. Dollar Forward Program)

Mark to Market

Mark to Market

USD/JPY Strengthens (120 to 110)

USD/JPY Weakens (110 to 120)

1Any third-party dealer Aflac Incorporated or Aflac Japan KK faces on derivative exposures.

Aflac Incorporated LiquidityCapital Structure

and Liquidity Objectives

• Maintain strong capital ratios and investment grade ratings

• Support nimble investment in our strategic growth objectives

• Balanced shareholder distribution policy

• Defend low cost of capital

• Optimize yen and dollar financing mix while managing duration

• Maintain leverage ratios within our current ratings

$mm 2016 2017 2018e

Operating Cash1 $1,480 $2,683 $2,365

- Capital Buffer2 $500 $1,000 $1,000

- Liquidity Support2 $250 $500 $500

Cash Available to Shareholders3 $730 $1,183 $865

Notes Payable Maturity Profile 4 (In millions)

550350

700 750

450300 224 257

40045

225

540

538

0

200

400

600

800

1,000

1,200

18 19 20 21 22 23 24 25 26 27 28 29 30 … 39 40 … 46

Yen Sub Call Date

Yen (USD Equiv.)

USD Senior

$

1Total cash less non-operating cash 2Balance based on internal policy3Net cash that may be deployable to shareholders at a given time4As of 6/30/2018. USD notes based on issuance amount

Year

13

for value enhancing activities, we could temporarily go above this range, and our possible debt capacity is higher than $1.2 billion, including sub debt capacity, even without any disruption to our capital plans. We remain comfortable operating at a slightly lower leverage target despite having a low business risk profile, strong capital formation and capital levels in our insurance subsidiaries at a healthy level.

Unlocking Incremental Excess Capital

I have portrayed a strong capital and liquidity profile of the company. This means that we see more cash finding its way to the holding company level in the future for future deployment. If we properly execute on these projects and assuming stable capital conditions, we will unlock a significant incremental amount of capital to be available for deployment in the 2019-2020 time period.

We expect to internalize the economics of 10 to 25% of our hedge costs. This number will fluctuate as we refine this strategy further as we move into 2019.

An increase of the payout ratio from 80% to 100% from our subsidiaries would add about $350 million from Aflac Japan and about $150 million from Aflac U.S. to deployable capital. Adding this up over two years, sums up to $1 billion of incremental deployable capital during the 2019-2020 time period, which is a very significant amount.

Potential for $1 billion of incremental deployable capital for 2019-2020

• Internalize 10 to 25% of hedge costs associated with Aflac Japan’s hedged USD program

Hedge Internalization

• Strong SMR and ESR supports an Aflac Japan payout ratio in the range of 80 to 100%»A 100% payout ratio would add ~$350 million

to annual deployable capital• Strong RBC supports an Aflac U.S. payout ratio

in the range of 80 to 100%»A 100% payout ratio would add ~$150 million

to annual deployable capital

Subsidiary Payout Ratio

14

Aflac Global InvestmentsEric M. Kirsch

Executive Vice President; Global Chief Investment Officer

2018 Investment Themes

As you know, the market environment has remained a challenge with low yields in Japan, higher hedge costs, and broadly tighter spreads across all fixed income asset classes. Conversely, opportunities presented themselves that Global Investments was able to execute on. Let me highlight major investment themes and how we were able to generate solid performance results, driving increased investment income while managing risks.

One of our most important initiatives was implementing the three-pronged approach to the Aflac Japan dollar program.

We successfully transitioned on January 1st, and since that time have achieved growth in the floating rate asset program, transitioning to short dated hedges tracking the duration of the floaters and stabilizing the net income of the program. In addition, with LIBOR increasing this year, our floating rate income is ahead of our budget, while hedge costs were predominately locked in as we termed out our hedges for the year.

Defend ing aga inst low JGB y ie lds, we have expanded yen fixed income to assets including private placements and Japan local corporate debt, allowing us to diversify from JGBs while picking up incremental yield commensurate with the credit risk that we carefully underwrite. In addition we designate the majority of these assets as “policy reserve matching” for ALM purposes which reduces potential capital volatility.

Global Investments found new tactical asset allocation trades this year as a result of U.S. tax reform. In Japan, we executed on a $1.2 billion switch trade, diversifying investment grade exposure to stratify maturity dates and reallocate among new corporate bonds and floating rate transitional real estate loans, while picking up $18.3 million of annual net investment income.

And for Aflac U.S., tax law made investing in municipal bonds favorable on an after-tax basis, and we executed a $500 million switch trade out of investment grade corporates.

We not only picked up income (approximately $3 million of after-tax income), but upgraded quality from BBB+ to AA. Finally, through our strategic relationship with NXT, we were able to purchase a $1.1 billion bulk portfolio of transitional real estate loans at favorable terms early in the year, which helped accelerate the growth of our floating rate portfolio and improve income.

Aflac Global Investments successfully converted into a legal subsidiary on January 1st as part of the broader Japan branch conversion of Aflac. This conversion further promotes our business of asset management; leverages the success of the NXT equity investment we recently harvested and enjoyed a 15% return on; and promotes finding new ways to leverage Global Investments for unique investment opportunities.

Finally, we are in the final stages of the regularly planned three-year strategic asset allocation analysis. While we don’t expect significant changes, we are carefully analyzing which, if any, impacts there may be from the conversion of Aflac Japan to a subsidiary, given the changes on capital and dividend rules that go along with it. Similarly, for Aflac U.S., we are carefully examining RBC and dividend rule impacts post the JLP conversion date. We expect our analysis to be completed during the fourth quarter.

Investment Performance has added value across a number of dimensions

• Aflac Japan Dollar Program• Three pronged approach• Floating rate strategy growth• Navigated Libor volatility• Hedge ratio steady ~40%»Stressed economic value of Aflac

Japan

• Navigating low Japan yields• Private placements• Yen public credit

Hedging Strategy Expanding Yen Fixed Income

Improved NII less Hedge Costs

Diversification and Enhanced Yields vs JGBs ALM

Duration with Low Volatility (PRM)

• US tax reform provided switch trade opportunities»Aflac Japan $1.2bn»$11.2mm NII Impact, $18.3mm

annualized1

»Aflac US $500mm tax advantaged munis»$2.1mm after tax income

impact, $3.1mm annualized• Purchase of $1.1bn TRE portfolio

• Converted to a subsidiary: January 1 20182

• Harvested NXT equity stake ~ 15% IRR• SAA recalibration

Evolution of Aflac Global Investments

Tactical Asset Allocation

1Post Hedge Costs. See the Appendix for a definition of hedge costs, which is a non-GAAP financial measure 2Aflac Asset Management LLC; Aflac Asset Management Japan Ltd.

Improved Income and Diversification

Exploring Opportunities to Leverage Our Platform

15

Aflac Japan Portfolio Asset AllocationBased on BV (US GAAP) as of 6/30/18

On this page you can see the Aflac Japan portfolio year over year through June 30th. I’ll highlight that our new money was approximately split 52% to yen and 48% to dollars, with dollar investments focused on the growth of the floating rate portfolio and loans. Floaters now represent 5% of the portfolio from 2% last year. New yen assets were diversified, but concentrated in Japanese Government Bonds (JGBs) for their ALM characteristics.

Aflac U.S. Portfolio Asset Allocation1

Based on BV (US GAAP) as of 6/30/18

On this page, we see similar portfolio details for Aflac U.S. Let me highlight the increased muni exposure resulting from tax reform and the switch trade. As a result of tax reform, and working with our Tax team, muni income is 70% excludable from U.S. taxable income, therefore providing a beneficial after-tax advantage. With that analysis, we identified high-quality AA municipals and swapped out of lower-rated, BBB+ investment grade credit. We like trades that increase credit quality while enhancing income!

I’ll also highlight growth in floaters, which we find attractive relative to fixed-rate bonds and the fact that it also provides diversification benefits.

81%

8%4%5%

1%

IG Corporates MunisOther USD Fixed Rate USD Floating RateGrowth Assets

3 4

5

86%

5%5%

2% 1%

Portfolio Asset Allocation

Book Value: $13bn $13bn

Duration: 8.9yrs 9.0yrs

New Money Yield: 4.40% 4.33%

Book Yield: 5.54% 5.53%

6/30/20186/30/2017

• 22% of new money allocated to floaters

• 45% of new money allocated to munis – switch trade

• Modest pacing of growth assets – 6%

Asset Allocation Highlights

Note: Percents may not add to 100 due to rounding1Aflac US Segment; excludes Aflac Inc. and CAIC Retrocession 2Includes Equity

Rebalancing 3Other USD fixed rate includes Government, Agency (foreign and

supranational), CMLs, Infrastructure, securitized Assets and High Yield Corporates 4USD floating rate includes Middle Market Loans, Bank Loans, Transitional Real

Estate 5Includes US Equity and Alternatives

45%

15%

13%8%7%6%5%

YTD 6/30/2018

CMLs

Growth

MML (Floating)

Infra Debt

Corporates

TRE (Floating)

Municipals

$1,150bn

New Money Asset Allocation2

Book Value: $95bn $102bn

Duration: 13.6yrs 13.5yrs

New Money Yield: 1.54% 2.88%

Book Yield: 2.55% 2.59%

Portfolio Asset Allocation

6/30/20186/30/2017

50%

22%

4%

18%

5%

1%

JGBs Yen Private PlacementsOther Yen Fixed Income USD Fixed IncomeUSD Floating Rate Growth

50%

24%

3%

20%2%1%

3 4

5 6

35%

10%7%

25%

12%4%4%

3%

YTD 6/30/2018

MMLs (Floating)

Other USD Fixed

Growth Assets

Bank Loans (Floating)

IG Corporates

TRE (Floating)

Private Placements

Yen Public Credit

JGBs

New Money Asset Allocation1

2

¥935bn

¥

$

• 52% to Yen denominated assets; 48% to USD denominated assets• 32% of new money allocated to floaters• 17% of new money allocated to yen public and private fixed

income• Modest pacing of growth assets; 4%

Note: Percent's may not add to 100 due to rounding1Includes Equity Rebalancing 2Includes CMLs, and HY Corporates 3Includes RMBS, Municipal Bonds, Corporate Bonds, 4Includes HY Corporates, CMLs, Infrastructure 5Includes Transitional Real Estate, Middle Market Loans, Bank Loans, Infrastructure (floating) 6Includes Japan/US Equity and Alternatives

Asset Allocation Highlights

16

Aflac Japan Dollar Program Transition

Let me turn to the Aflac Japan dollar program. This slide should be familiar, as we presented this last year. It lays out the foundation for the three-pronged approach.

On January 1st we officially segmented the portfolio into three groups. Group 1’s focus is on floating rate assets and short duration hedges with a strategy to closely match the duration of the assets and hedges. Group 2’s focus is on long term bonds with longer duration hedges, though we expect and are willing to have a duration gap between assets and hedges to reduce hedge cost volatility against the asset yields. And finally Group 3, the focus of which is on all remaining long-term assets, which are not hedged. As you recall, we determine the amount of unhedged dollar exposure, or said another way, the hedge ratio, by gradually adjusting it over time toward the risk-adjusted economic surplus of Aflac Japan. Fred and Max further describe that process in their presentations.

Aflac Japan USD Program: Investment and Hedging Strategy

Based on BV (US GAAP) as of 6/30/18

Let’s review implementation and key metrics. Over the past year, the portfolio grew by about $2 billion, targeted to the floating rate assets, which now make up 24% of the overall program, up from 9 percent over the past year. You can see on the top right, growth in the dollar program is targeted in Group 1, the floaters. Groups 2 and 3 stay stable in total size.

Hedges are adjusted between them to maintain the 40% hedge ratio. The bottom left table shows the duration of our asset and hedges, implemented within the new approach. On the bottom right, you can also see income and hedge costs by group. Group 1, the floating rate assets, enjoys a high average yield, which has actually increased during the year as LIBOR has ratcheted up above our planned assumptions. Hedge costs for Group 1 are running at about 2.39%, which is fairly lower than today’s three-month hedge costs running at about 2.62%. You’ll recall we termed out our Group 1 hedges for existing assets last year in anticipation of rising hedge costs. The net effect is that we have enjoyed higher income from LIBOR increases while mitigating cost increases for 2018.

Let me also comment that in July, we implemented a floating for fixed LIBOR-based swap to partially protect our income in the event LIBOR comes back to normal levels. While not material to our expected results this year, you should know that we use tactical decision making and derivative tools when it makes sense to proactively manage this growing portion of the portfolio.

23 3

56

89

65

4

1312

15 15 15

2Q17 3Q17 4Q17 1Q18 2Q18

Group 1 Assets Group 2 Assets

Group 3 Assets

Dollar Portfolio (6/30/18)

• Group 1 targeted for asset growth

• Group 2 & 3 impacted by hedge

ratio

AUM (bn)6/30/2017

MV ~23bn

6/30/2018

MV ~25bn

3 Pronged Evolution 2, 3, 4

70%

24%

3%

2%

1%

IG corp. Floaters CMLs & infra.

HY corp. Growth Assets

80%

9%

4%

2%

3%

Hedged: 49% Hedged: 40%

Unhedged: 60%1Unhedged: 51%1

1Economic market value of unhedged USD exposure) 2Group 1 assets Includes: BL, MML, TRE, infrastructure (floating) 3Group 2 assets Includes: CML, IG 4Group 3 Assets includes; Equity, High Yield, IG, Infrastructure, alternatives (excluding RDC income 5Not Including internal or external investment expenses; excludes alternative assets from net yield

Three Prongs

Market Value ($bn)

Asset Duration

(yrs)

Hedge Duration

(yrs)

Gross Income($mm)

Hedge Costs ($mm)

Net Income($mm)

GrossImpliedYield

Hedge Costs

(Monthly Avg AUM)

Net Yield5

Group 1 5.8 0.2 0.3 127.2 (54.0) 73.2 5.54% 2.39% 3.15%Group 2 4.1 8.5 3.6 80.6 (56.0) 24.6 3.67% 2.34% 1.33%Group 3 14.8 8.2 - 311.4 - 311.4 4.11% - 4.11%

Total 24.7 6.4 N/A 519.2 (110.0) 409.2 4.32% 0.90% 3.42%

Portfolio Metrics and Net Investment Income Analysis YTD (6/30/18) 2,3,4

17

As we approach the end of the year, the termed out hedges for Group 1 will be rolled and their costs will be closer to the current market levels. Offsetting this will be the higher amount of income we are already enjoying.

The net income will be in line with what we would have expected had we just been rolling every three months all along. Our strategy allowed us to enjoy better 2018 results.

Investment Income and Credit Performance Well Positioned

As you know, investment results are impacted by a number of variables, some out of our control. Those out of our control, such as market factors listed here have moved into a new regime. We have moved from an accommodative central bank policy to a more restrictive one given greater economic growth and inflation.

We are now in more of a rising rate environment. While we have enjoyed a benign credit environment, that too will shift, though the timing could be a year or two out.

Within our control are Aflac policies and the objectives you are familiar with, and certainly have an impact on how we manage the portfolio. Fred and Max’s presentations address Aflac’s approach to managing capital, liquidity and other policies impacting the hedge program. Simple examples include the use of excess capital in Japan to support a larger unhedged USD portfolio, as was the case in 2018. Alternatively, should we move additional capital out of the insurance subsidiaries, this has an obvious impact on general account segment net investment income. In some cases, what is good for our shareholders may be headwinds to net investment income.

While Aflac Global Investments must consider both these external and internal factors, we have a variety of active management tools at our disposal to add value and generate returns. I’ve listed a number out here, and we have an established track record of success with each of them.

When we model these factors into how our portfolio is structured and managed, and assume the current market environment continues, our preliminary planning for 2019 shows general account net investment income as stable, with modest growth the following years. Of course any changes to these factors or Aflac policies may influence the results. We’ll cover more on this at the December outlook call later this year.

I also wish to note that we feel well prepared for if and when the credit cycle turns, which will result in higher levels of impairments and losses for insurance companies and credit investors. As you know, we have managed the portfolio to be within well-defined risk limits. We have followed a strict set of underwriting criteria by our global credit team for new investments, and we continually review the portfolio for credit risk. While we won’t be immune to a cycle shift, I am confident in our ability to outperform and have credit results that are within the forecasts we have established and reflected in our capital planning and budgeting.

Aflac Global Investments is Driving Performance

In closing, the Aflac Global Investments team is focused on generating positive performance in all market environments.

Our challenge of finding unique and safe assets that fit our balance sheet and capital, while protecting policyholders, is a large one. We will continue to evolve our asset management model, looking for growth opportunities that build capability, outsource it or even buy it through equity or joint venture opportunities. We believe this aligns well with Aflac’s objectives of safety and growth.

• Strategic Asset Allocation

• Tactical Asset Allocation

• New Money Reinvestment Yield

• Floating Rate Income

• Hedging Strategy

• Disciplined Credit Underwriting

Global Investments

• US and JPY Rates

• FX ¥/$

• Credit Spreads

• Hedge Costs

Market Factors Credit Cycle

• Optimizing Capital

• Subsidiary Dividend Policy

• Managing currency risk

• Internalizing Hedge Costs

Aflac Incorporated

Aflac

Markets

0

40

80

120

160

200

12/12 06/13 12/13 06/14 12/14 06/15 12/15 06/16 12/16 06/17 12/17 06/18

IG Historic OAS

Income enhancing investments

Strategic investment opportunities

Diversification & risk mitigation ü

Dynamic hedge strategy

ü

üüEvolving Asset Management Model

ü

18

Actuarial and Risk DiscussionAlbert A. Riggieri

Senior Vice President; Global Chief Risk Officer and Chief Actuary

Global Risk Framework

Over the past few years, management has utilized Aflac’s U.S. statutory risk based capital ratio, or RBC, and Japan’s solvency margin ratio, or SMR, to help set appropriate objectives for capital and risk management. We have also expanded our management decision-making toolkit by establishing an economic capital framework in Japan. This framework aids our efforts to measure and manage risks related to investments, insurance and operations based on company-specific assumptions. With the completion of Aflac Japan’s conversion to a subsidiary, we have a much clearer and more direct picture of these key solvency metrics for each of our U.S. and Japan businesses, which guides our capital and risk management processes.

We are also monitoring our Economic Solvency Ratio (ESR) in Japan, which is in the field-testing stage with Japan’s FSA and in which we are participating. This measure is the economic surplus divided by the economic value of risk. Currently, our ESR remains strong at 160-170% without the use of the ultimate forward rate, which adds 70-80 points to this result if incorporated. We have also developed an internal enterprise economic value model that is considered preliminary and is currently subject to additional internal and external third party reviews. The economic valuation model, while preliminary, is not inconsistent with gross premium valuation results and other conventional methods of valuing the enterprise. This model provides management with an additional layer of sophistication in making critical strategic and financial decisions incorporating an enterprise risk-adjusted framework.

Economic capital-based models, in conjunction with stress testing regulatory capital, have been used to develop quantitative risk metrics around investment risks, such as interest rate, credit and foreign exchange, as well as insurance risks, including persistency and morbidity. The risk levels are measured periodically and are used in setting risk tolerances for the company. Our risk management philosophy starts with an examination of the characteristics of our liabilities. Then we identify the appropriate level of investment risk, in addition to economic and regulatory surplus levels, to ensure our policyholders are protected.

Pricing and Reserving Assumptions for Aflac Japan and Aflac U.S.

Product pricing and reserving includes assumptions for morbidity, mortality, persistency, expenses and investment returns. In Japan, the product pricing assumptions are approved by the FSA. Premiums are calculated using assumptions that include provisions for adverse deviation, or PAD. These assumptions may be more conservative than those used for GAAP reserve calculations. No explicit margin for profit is added in pricing products. Instead, profit margins arise from the pricing PAD.

The interest rate assumption for product pricing is established by each company in Japan and must be justified to the FSA. The rate may vary depending on the type of product. For example, we typically use a lower interest rate for pricing first sector products than for third sector products. Other pricing assumptions, such as morbidity and persistency, are also reviewed and approved by the FSA. These assumptions may be developed based on Aflac’s experience, industry experience, national statistics or a blend of this data with PAD incorporated.

The persistency assumptions are generally higher than our actual persistency as this represents PAD for our products. For products with cash values, we generally assume no voluntary lapses. For products without cash values, we use a low level of voluntary lapse in each year.

The expense assumptions reflect our actual operational costs. Aflac Japan’s cost structure per policy is favorable when compared to other life insurance companies in Japan. Reflecting the efficiency of our operations in our product pricing allows us to maintain a competitive edge in our premium rates.

We perform additional profit testing which removes PADs and measures profits based on best estimate assumptions. We target an explicit profit margin expressed as a percent of premium. Recently we have increased our focus on return on capital for our Japan products to ensure that we are adding value by exceeding our cost of capital.

For Aflac U.S., we tend to base pricing and reserving assumptions on our own experience, including some provisions for adverse deviation. In addition, it is our practice to target an explicit profit margin, expressed as a percentage of premium. Because most of our products do not consume significant amounts of statutory capital for a long period of time, we historically have not priced on a return-on-capital basis. However, we have started including return-on-capital metrics in our pricing

• RBC*» Maintain ratio above 400% - 500%

» FX and credit sensitivity

• SMR

» Maintain ratio above 500% - 600%

» AFS sensitivity

• ESR

» Monitoring with current ratios strong

» Based on internal models

» Further development and field testing ongoing

* RBC threshold reflects impact of US tax reform and updated C1 risk factors

• Morbidity• Mortality• Persistency• Expenses• Investment returns

19

and profitability analysis to be sure we are growing the economic value of the company by generating returns in excess of our cost of capital.

FSA Reserve Assumptions(Aflac Japan)

In Japan, we are required to use specific reserving methods, as well as certain minimum assumptions for our FSA reporting. The net level premium reserving approach required by the FSA is similar to what we use for GAAP reporting. Benefit reserves begin building within the first policy year. Unlike GAAP reporting, where we are allowed to defer certain costs of acquiring business, FSA reporting doesn’t make any allowance for the first-year profit strain of issuing a policy. In addition, the interest rates, lapse assumptions, mortality tables and morbidity rates required for the reserve calculation generally result in reserves that are larger than those calculated using the pricing assumptions. The Japan standard interest rate is the rate required for determining FSA-based reserves. The standard interest rate is based on average 10-year JGB rates over a period ending in September of the prior year using the smaller of the three-year average or 10-year average.

FSA Standard Reserving Rate

The standard interest rate was lowered to 0.25% for business issued from April 2017. Our re-pricing of first sector savings and protection products in 2016 and 2017 took this into account. For third sector business, we have been lowering our assumed interest rate for pricing as part of our product development cycle to minimize first-year strain due to low standard reserve rates. The FSA has also adopted an updated standard mortality table which assumes greater longevity and will be applied to new business issued after April 1, 2018. The impact on our first sector products is minimal, and we have incorporated this into our third sector product pricing as new versions have been introduced.

Aflac Japan Investment Return Assumptions

Our GAAP reserve assumptions generally use higher investment return rates than either the pricing or FSA reserving assumptions since the latter are conservative. GAAP assumptions generally use claim and persistency assumptions that are derived from our actual experience, or from assumptions used in the product pricing when we don’t have enough of our own credible experience. We have reduced the GAAP reserve interest assumption applied for new issues for most product lines to reflect the current low interest rate environment. This is something we monitor closely and have the ability to adjust with each new product generation or issue year.

Aflac Japan Expected Benefit Ratios by Product

Now, I would like to review the expected benefit ratios for our major products in Japan with regard to pricing expectations. The traditional cancer life product that we were selling through the 1990s had a full cash surrender value, or CSV. To offset some of the effect of the 1999 premium rate increase on newly issued cancer life policies, which was caused by a lower assumed interest rate, we elected to reduce cash surrender values. Reducing CSVs kept the premium level attractive to consumers. It also lowered the benefit ratio. Our traditional cancer insurance policies had a benefit ratio range of 63% to 73%. Our current cancer insurance products, including the New Days product introduced in April of this year, have benefit ratios that range from 50% to 55%.

The expected benefit ratios from pricing of our medical products are 47% to 65%, including our substandard product, Gentle EVER. The riders to our cancer and medical products range from 40% to 53%. First sector insurance products, including WAYS, have expected benefit ratios from 65% to 82%. Our child endowment product has a higher benefit ratio ranging from 84% to 96% due to the heavy savings element in this product.

• Net level method• Standard interest rate – 0.25% • Lapse rate – lower than or equal to pricing basis• Mortality – standard mortality table• Morbidity – pricing basis with stress testing

Life/Health

» GAAP: 1.00% - 2.00%» Pricing: 0.40% - 1.25%

» FSA: 0.25%

Note: Annuity line removed due to no longer selling

Third SectorTraditional cancer life 63% - 73%21st Century cancer life 50% - 60%Cancer Forte 48% - 60%Cancer DAYS 50% - 55%EVER and Gentle EVER 47% - 65%Riders to cancer and medical 40% - 53%

First SectorWAYS 65% - 82%Child endowment 84% - 96%Other 1st sector products 60% - 75%

March 1996 & Prior Equivalent to Pricing

April 1996 2.75%

April 1999 2.00%

April 2001 1.50%

April 2013 1.00%

April 2017 .25%

Note: From 1996 to 2001, changes only apply to first sector products. After July 2001 and forward changes apply to first and third sector products.

20

We have observed some favorable movement in our total benefit ratio as a result of our product shift mix, particularly as we have reached the paid up status of five-pay WAYS products, which have higher expected benefit ratios than our third sector products. Although somewhat muted, we expect to continue to see this effect as the WAYS in force continues to reach paid-up status.

Aflac U.S. Statutory Reserve Assumptions

In the United States, premium rates are filed with each state Department of Insurance. When we file products, we must demonstrate that premiums are reasonable in relation to the benefits provided by the policy. Many states also require that we demonstrate the product experience will meet or exceed a minimum loss ratio requirement. For most of our U.S. health products, we use a two-year preliminary term method for calculating statutory benefit reserves. With this method, benefit reserves begin building during the third policy year. This feature helps mitigate the surplus strain caused by issuing new business. Statutory reporting prescribes the maximum interest rates that can be used in the reserve calculation. The lapse assumptions, mortality tables and morbidity rates are generally based on our pricing assumptions with an added margin for conservatism.

Aflac U.S. Investment Return Assumptions

In the United States, all of our currently issued products use a 3.75% investment return for GAAP reserves. That is generally in line with our pricing assumptions, which are currently between 3.5% and 4%. We monitor interest rates very closely to determine whether we need to update our assumption. For statutory accounting purposes, we use a 3.5% interest assumption for all new business.

GAAP Reporting

For severa l years now, we have walked you through GAAP reserving and illustrated how favorable claim experience emerges under GAAP accounting rules. Understanding this is an important element in understanding Aflac’s current and future outlook, as we have experienced favorable claim experience and claim trends on our core health lines.

GAAP reserves are computed using the net level premium method. Under this approach, benefit reserves begin to build in the first policy year. Certain expenses associated with the cost of acquiring new business are capitalized and amortized over the premium paying period of a policy. The combination of the net level premium reserve methodology and the capitalization of acquisition costs results in an expected profit emergence pattern that is a fairly level share of premium revenue over time. However, there are various acquisition costs we are not allowed to defer, so the expected profit in the first policy year is usually much lower than in other policy years.

Claims vs. Reserves

This simplified schematic shows why benefit reserves are provided and illustrates the relationship between incurred claims and benefit reserves. The policyholder pays a level premium each year. In early years, incurred claims are lower than the premium, net of expense loads. The difference between the net premium paid and claims incurred is added to the benefit reserve. In later years, incurred claims exceed the net premium and the benefit reserves are released to accommodate the higher claims.

In theory, GAAP benefit reserves are derived in such a way that gross profits would emerge in a fairly level pattern over time. However, GAAP benefit reserves are required to include a provision for adverse deviation, or PAD, which suppresses the profit somewhat in the early years of a policy and magnifies the profit in later years. In any period where the actual incurred claims are lower than the expected amounts, a morbidity gain will emerge into profits as we have seen in Aflac’s businesses.

It is too early to comment on the specific impacts of the new FASB standard for targeted improvements for long duration contracts, as interpretations and practices have not yet settled across the industry. We have begun planning for a 2- to 3-year period of implementation activities.

• 1- or 2-year preliminary term for health

• Interest rate – generally lower than pricing

• Lapse rate – prescribed, generally lower than pricing basis

• Mortality – pricing basis or lower for health

• Morbidity – pricing basis with load and some prescribed tables

Life/Health» GAAP: 3.75%» Pricing: 3.50 - 4.00%» Statutory: 3.50%

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Deduct from reservesNet Premium

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• Benefit reserve uses net level premium method• Certain acquisition costs are capitalized and put into a

deferred policy acquisition cost asset• The deferred policy acquisition cost asset is amortized

over the premium paying period of a policy• Requires a provision for adverse deviation (PAD) in the

benefit reserve calculation

21

Aflac Japan’s Product Mix – In-Force AP(In Billions)

In 2009, our cancer block of insurance accounted for 50% of in-force premium, while medical accounted for 30% of total in-force premium and WAYS represented just 2%. As of June 2018, cancer, medical and WAYS accounted for 42%, 27%, and 9% of total in-force premium, respectively. This represents a mix shift to more cancer and medical premium over June 2017 as a result of strong third sector sales and the premium from WAYS policies becoming paid up. Once a policy becomes paid-up, it is not counted in the in-force AP number and no longer contributes to earned premium. WAYS annualized premium becoming paid up will amount to about ¥20-25 billion in 2018, ¥15-20 billion in 2019, and ¥10-15 billion in 2020. This will continue to impact our overall benefit and expense ratios.

Limited-Pay Policy Accounting

Now, I would like to provide information regarding our limited-pay products in Japan. First, I will review the accounting practices for our ordinary life products. Most of our products, where premiums are paid over the life of the contract, are accounted for as long-duration contracts under GAAP. For policies where the scheduled premium period is shorter than the benefit period, we are required to use limited-pay accounting.

Limited-Pay Policy Accounting

In the case of limited-pay policies, U.S. GAAP requires that a deferred profit liability, or DPL, be established during the premium paying period. The DPL grows during the premium payment period and is released through benefits over the remaining life of the policy after the contract becomes paid up. The changes in the DPL flow through policy benefits along with changes in other benefit reserves. In this way, profits emerge fairly evenly over the life of the policy.

Limited-Pay Policy Accounting – 5-Pay Example*

The above slide is a simplified numerical example demonstrating a single policy using limited-pay accounting. This shows how profits would be recognized with and without the changes in the DPL for a policy with 10 years of benefit coverage paying premiums for five years. For simplicity, we are assuming annual premium of ¥2,000, a discount rate of zero, no terminations due to mortality or voluntary lapses, and excess first-year commissions are deferrable.

In this example, you can see that the net benefit reserve, or NBR, is released during the period after premiums are paid up as claims are incurred, and as net premiums are no longer being added to NBR. You can see this impact playing out in our 2017 and 2018 year-to-date financial statements. Note that this is largely geography and does not increase our overall benefit ratio.

With the DPL, profits are reduced during the premium period and recognized over the remainder of the contract’s life as the DPL is released. In this slide, we have added the DPL to illustrate the impact. This accounting treatment is important to understand as you will see a significant impact from limited-pay products in our future financials. Premium income will decline as policies reach paid-up status. The benefits will also decline as the NBR and the DPL are released, allowing profits to be recognized over the remaining life of the limited-pay contracts, even though no premium revenue is being recognized. The net result is that profit recognition for both the lifetime-pay and the limited-pay contracts will be similar in relation to policies in force.

*Includes stand-alone medical, Rider MAX and other medical riders

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¥

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• Reserves include provision for adverse deviation • Lock-in principle• Deferred acquisition costs (DAC) amortized over premium

paying period

• Deferred Profit Liability (DPL)» Established to recognize profits over life of policy

• Profits emerge as a level percentage of inforce

*Assumes 10-year policy with a 5-pay option in yen

Policy Year

EarnedPremium Claims Comm

ChgNBR

ChgDAC

Profits without

DPLDPL Chg

Profitswith DPL

1 2,000 100 1,600 1,000 1,200 500 250 2502 2,000 200 100 900 -300 500 250 2503 2,000 300 100 800 -300 500 250 2504 2,000 400 100 700 -300 500 250 2505 2,000 500 100 600 -300 500 250 2506 600 0 -600 0 -250 2507 700 0 -700 0 -250 2508 800 0 -800 0 -250 2509 900 0 -900 0 -250 250

10 1,000 0 -1,000

0 -250 250

22

Aflac Japan Actual vs. Tabular Claims(Tabular = 100%)

We have experienced favorable claim trends for our core health products in Japan. Actual cancer life claims as a percentage of tabular claims continue to decline since 1993 and were about 64% as of 2017. EVER claims have also been lower than our original expectation since that product’s introduction in 2002. The Rider MAX block is essentially a closed block of business and has been influenced by increases in the surgery utilization. It is important to note that this is still within our pricing expectation.

The first sector product lines also show favorable ratios. However, favorable claim ratios for first sector products have a smaller impact on profits than favorable claim ratios in third sector products. This is because benefit reserves, which include the cash value, make up a large part of the benefit ratio due to their savings element.

As we have shown you previously, our experience in Japan related to the average length of stay in the hospital for cancer treatment has declined steadily for some time now. As Japan’s social welfare system is strained, the Health, Labour and Welfare Ministry is taking various steps to reduce medical costs. Among those steps, shortening of hospitalization has been a key measure.

Specifically, since 2003, the Ministry has adopted a diagnosis procedure combination (DPC) method for its public health insurance system, which is a medical fee payment system similar to the U.S. diagnosis-related groups/protective payment system (DRG/PPS), thereby aiming to shorten hospitalization days. The DPC method is a system to provide hospitals with incentives for shortening hospitalization by leveling the daily hospitalization medical fee, which is a fee paid to hospitals depending on disease name or medical act, at a fixed amount, so that a higher amount can be paid for short-term hospitalization. As a medical fee payment system for ordinary hospitals offering treatment during acute stage, a performance-based payment system is also available, apart from the DPC methodology. But each hospital has to choose either one of the two. The number of hospitals adopting the DPC methodology is gradually increasing, and the total figure of beds owned by DPC-adopted hospitals reached 488,563 by April 2018, which is more than 50% of the total 891,926 beds for the same period. Benefit claims filed with Aflac are mostly for cancer, myocardial infarction, or stroke, and these diseases are treated at DPC-adopted hospitals in

most cases. Aflac’s total claims are expected to improve due to the effect of shortened hospitalization stays.

Also, the numbers of Japan’s hospitals and beds per population have historically been higher than those of Europe and the U.S., but the number of hospitals is now dropping as the central government has implemented measures to diversify functions among hospitals, thereby reducing the number of such hospitals focused on long-term hospitalization, mainly to offer nursing care to the elderly suffering chronic diseases. As a result, the total number of hospitals was down to 8,389 in 2018 from more than 10,000 in 1993.

Aflac Japan Trends in Sickness Hospitalization

(Average Length of Stay)

We have seen the effect of these government actions in our actual experience. For example, with the sickness hospitalization benefit, we have seen a generally downward trend in the average length of hospital stays for Rider MAX and EVER, with some leveling off in recent years. The next slide shows the hospitalization trends for cancer.

Aflac Japan Trends in Cancer Hospitalization

(Cancer Only, 24-Month Runoff)

Cancer treatment patterns in Japan are being influenced by significant advances in early-detection techniques and by the increased use of pathological diagnosis rather than clinical exams. Follow-up radiation and chemotherapy treatments are occurring more often on an outpatient

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23

basis. Such changes in treatment not only increase the quality of life and initial outcomes for the patients, but also decrease the average length of each hospital stay. In short, more people are surviving cancer, and those who continue in treatment are generally living longer.

While the average length of stay per hospitalization has declined, the number of hospital stays per claimant has generally been increasing. However, since 2008, we have seen the stays per claimant stabilize and decline slightly. Our analysis of claims data shows that the total number of days hospitalized per claimant is declining, but at a slightly slower rate than the average length of stay per hospitalization. We anticipate that the trend toward more hospital stays of shorter durations will continue going forward.

Aflac U.S. Trends in Cancer Hospitalization(Cancer Only, 24-Month Runoff)

In the United States, we are seeing a trend toward greater use of outpatient treatments for cancer. The average number of days per hospital stay for cancer treatment has leveled off in the last few years. The average number of hospital stays per claimant and the total hospitalization days per claimant have declined considerably in recent years. We expect this trend to continue.

Aflac U.S. Trends in Hospitalization(Average Length of Stay)

This data reflects our experience with the U.S. hospital indemnity product. For the past several years, we have

seen a generally downward trend in the average length of stay per hospitalization.

While we generally do not project future improvements in claim trends in our pricing, the impact of lower-than-expected claim costs over time and the emergence of the profit from the better-than-expected experience have continued to have a strong impact on Aflac’s profit growth.

Aflac Japan Gross Premium Valuation Net Position by Reporting Basis

(% of Present Value of Premium)

Each year, we evaluate the net margin position of our in-force block using a gross premium valuation. This analysis projects financial elements of our in-force block of business through time and determines the expected future margin for that block of business. The expected margin is expressed as a ratio of the present value of future profits to the present value of future premiums. In this way, we are evaluating the present value of future profit margins expected to emerge over the remaining life of the business. The future profits are determined by taking the current reserve for each reporting basis and adding in the present value of the net future cash flows, or premiums less claims and expenses. The present values are determined by discounting cash flows using our projected portfolio yields and by reflecting anticipated future new money yields. It should be noted that this is an actuarial calculation and is generally constructed with some conservatism in the underlying assumptions.

With the completion of Aflac Japan’s conversion to a subsidiary, we now measure the Japan segment margins on a GAAP and FSA reserve basis only and no longer measure margins under the U.S. statutory basis. The difference in profit emergence for GAAP and FSA earnings is due to the difference in reserving assumptions and methodology. FSA reserve margins have historically been stronger than GAAP. For example, in the early 2000s, there were projected net FSA reserve margins of 15.7% compared with a GAAP result of 10.8%. Since that time, the conservatism of FSA reserves has grown, which results in the FSA net margin diverging from GAAP. For FSA and GAAP, the 2017 net margins were 29.3% and 18.6% respectively. We have been able to maintain very stable and relatively high margins since the financial crisis, due to favorable morbidity trends and, most recently, with the incorporation of expected forward rates in our discounting assumptions.

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24

Aflac U.S. Gross Premium Valuation(% of Present Value of Premium)

Aflac U.S. gross premium valuation results have been very stable at 15% to 16% for most years on a GAAP basis. For 2016 and 2017, the margin grew to 19% and 20.8% respectively on a U.S. GAAP basis. Improvements in the U.S. GAAP margins largely reflect overall, long-term improvement in claims experience being reflected in the claims assumptions in our projections, and, most recently, with the incorporation of expected forward rates in our discounting assumptions. On a U.S. statutory basis, the 2017 net margin was 30.3%. Much like Japan, these margins have been very stable through time.

Asset Liability Management (ALM)

In 2017, we incorporated further liquidity stress testing into our cash flow testing analysis. When tested for all products combined with our aggregate Japan investment portfolio, we can withstand significant liquidity stress from first sector products. In addition, we are also influencing our strategic asset allocation (SAA) by including liquidity considerations into our portfolio efficiency analysis and stress testing liquidity as part of that analysis. Finally, we have increased our designation of policy reserve matching or PRM assets to reduce SMR volatility.

We are also employing our GPV analysis through an ALM lens to optimize the size of our unhedged U.S. dollar exposure in Japan. In the past, we targeted the size of our unhedged U.S. dollar portfolio in Japan relative to our U.S. GAAP equity. Over time we have progressed to more of an economic view. As part of our GPV analysis, we arrive at the best estimate yen liability and incorporate a reasonable PAD, which we match with yen assets. Any residual (assets) we view as surplus. The claim on this surplus resides with our shareholders, who ultimately want that back in U.S. dollars. To minimize risk to shareholders, we want to hold that surplus in U.S. dollars. In addition, we have a regulatory framework to which we must adhere, and we must stress test the surplus assets so that the volatility that they might introduce to FSA earnings and SMR is within our risk tolerance. The resulting stressed U.S. dollar portfolio level becomes our target unhedged U.S. dollar exposure.

I hope that this has provided useful information in further understanding our pricing methodologies, GAAP, FSA and U.S. statutory reserve and profit emergence, as well as understanding items that will impact our future financial results.

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Roadmap

I will provide an update on Japan’s macroeconomic, political, and public policy issues relevant to Aflac Japan to reaffirm that we continue to leverage our deep understanding of these matters in developing business opportunities for the Company to ensure long-term growth for shareholder value. This presentation will provide the background and context for Koide-san’s discussion of Aflac Japan’s strategy.

Post-conversion Structure and Governance

Before I cover Japan’s political economy, let me provide a brief comment on Aflac’s global group governance.

As you will recall, on April 2nd of this year, Aflac successfully converted its Japan branch to a local subsidiary, Aflac Life Insurance Japan Ltd., which we refer

to as Aflac Japan, as shown on the simplified organization chart on this slide. The conversion occurred on schedule and within budget, and it has enhanced Aflac Japan’s business development flexibility and aligned us more closely with widely accepted global regulatory frameworks and corporate structures. In addition, the conversion led to greater transparency around cash flows and has impacted capital management for the group, which Fred and Max address in their presentations.

At the same time, the conversion preserved Aflac Incorporated’s global group governance and formalized the pre-existing governance framework at Aflac Japan. This global group governance framework supports and enhances Aflac Incorporated’s ability to manage the business soundly and prudently while allowing flexibility at the entity level for consideration of local culture, business circumstances and regulatory requirements.

Before concluding, let me emphasize one important point. Based on my experience serving on numerous Japanese boards, including the Tokyo Stock Exchange, I am very pleased to note that Aflac Japan has successfully adopted best practices in governance that empower Aflac Japan executives with business development flexibility while providing appropriate oversight in the context of global group governance.

Japan’s Aging Population and Low Birthrate

(In Millions)

I will now provide a brief overview on Japan’s macro environment.

Overview of Japan’s Political EconomyCharles D. Lake II

President, Aflac InternationalChairman and Representative Director, Aflac Life Insurance Japan

Section IIAflac Japan

1

I. Post-Conversion Governance

II. Japan’s Macro Environment

III. Japan’s Political Outlook and Economic Policy

2

Maintaining Governance Best Practice at the Group and Subsidiary Levels

U.S. Japan

Aflac Incorporated

Aflac Holdings LLC*

American Family Life Assurance

Company of Columbus

Aflac Life Insurance Japan Ltd.

(Aflac Japan)*

Aflac Asset Management*

Aflac International

Aflac Asset Management

K.K.*

Continental American Insurance Company

(Aflac Group)

American Family Life Assurance

Company of New York

3

• Maintained existing global group governance framework: Aflac Incorporated Board and correlated internal management committees, namely the Global Executive Management, Global Risk, Global Capital, Global Investment committees.

• Maintained boards and governance for pre-existing subsidiaries and established the same at new subsidiaries.

• Formalized pre-existing governance at Aflac Japan with the formation of a board of directors and statutory auditors, which is aligned with nearly 80% of first section-listed companies on Tokyo Stock Exchange.

* New entities formed as part of the Aflac Japan branch conversion

This copy belongs with the previous slide, beneath the blue/green chart.

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Source: National Institute of Population and Social Security Research, Future Estimated Population of Japan

Actual Estimate

25

A low birthrate and aging population continue to be among the most difficult challenges that Japan faces on the path to sustained growth. Japan’s birthrate has long been well below the 2.1 per woman needed to sustain growth and currently stands at 1.43 per woman. Today, one in four Japanese citizens is over age 65, and by 2050, nearly 40% of Japan’s population will be aged 65 and over. At the same time, the percentage of working-age people has fallen.

These changes will affect every aspect of Japanese society and place growing pressure on Japan’s finances and social security system.

Projected Social Security Benefits(In Trillions)

As society ages, spending on health care and public pensions is placing an increasing burden on the Japanese government’s fiscal outlook.

For fiscal 2018, the projected cost of social security benef its totals over 121 tr i l l ion yen. Government expenditures, on medical costs and elderly care in particular, are projected to grow as the country’s population continues to age.

The public continues to have significant concerns about the long-term viability of Japan’s universal health care system.

This concern over the public health care system leads to opportunity for Aflac as we aim to create shared value by providing products to meet the changing insurance needs of consumers.

Aflac’s trusted brand and relevant products provide options for the millions who struggle to bear the financial burden of higher medical expenses.

Ruling Coalition Maintains Large Advantage over Opposition Parties

Next, I will address Japan’s political outlook and economic policy.

As Japan confronts difficult challenges arising from its low birth rate and aging population, Japan has enjoyed a prolonged period of political stability. Nearly six years after returning to power, Prime Minister Shinzo Abe’s ruling coalition enjoys comfortable majorities in both houses of the Diet.

On September 20 of this year, Prime Minister Abe was re-elected to a third consecutive term as president of the Liberal Democratic Party, or LDP. In the near-term, Prime Minister Abe will likely reshuffle his cabinet to ensure continued and effective policy priority implementation. This re-election positions Prime Minister Abe to become in November 2019 the longest serving Prime Minister since the Meiji Restoration of 1868.

26

5

0

40

80

120

160

200

240

FY 2017 FY 2018 FY 2025 FY 2040

Other Child-raising Elderly Care Medical Pension

¥

Source: Ministry of Health, Labor and Welfare

¥215.8

¥150.8

¥121.3¥120.4

6

Liberal Democratic Party

Komeito

Constitutional Democratic Party of

Japan

Democratic Party for the People

Group of Independents

Japanese Communist Party

Nippon Ishin

Liberal Party

Social Democratic Party

Party of Hope

Independents

LDP

283 CDP

55

Komeito

29

*As of May 9, 2018

DPFP

39

House of Representatives (Lower House)*

7

Liberal Democratic Party and Party for Japanese KokoroKomeito

Democratic Party for the People and Shin-RyokufukaiConstitutional Democratic Party of Japan and MinyukaiJapanese Communist Party

Nippon Ishin

Hope Coalition

Party of Hope

Independents Club

Okinawa Whirlwind

Voice of the People

Independents

House of Councillors (Upper House)**

LDP / PJK125

DPFP-SR24

Komeito25

**As of August 5, 2018

CDP23

Enhanced Abenomics Strategy

With respect to economic policy, Prime Minister Abe continues to implement and enhance his vision for economic reform, dubbed Abenomics. The Prime Minister’s three arrow Abenomics strategy was designed to enhance Japan’s economic competitiveness and includes “bold monetary policy,” “flexible fiscal policy,” and “structural reforms or growth strategy.”

Since implementation began in 2013, the three arrow strategy has helped Japan achieve record highs in both nominal GDP and corporate profits. In an effort to support the growth trajectory, Prime Minister Abe’s Cabinet approved two respective economic reform plans – the New Economic Policy Package approved in December 2017; and the Future Investment Strategy 2018 approved in June of this year. These two economic reform plans are spin-offs from the original Abenomics third arrow growth strategy. I will elaborate.

Japan’s Enhanced Growth Strategy Measures

The New Economic Policy Package released last December is a medium-term economic reform plan designed to enhance productivity with a near-term three-year period for intense and focused investment in tax, budget, and regulatory reform. This period will go through 2020 and reflects the Government’s commitment to economic reform.

The Future Investment Strategy, on the other hand, is a longer-term economic plan through 2025 and is focused on the digital revolution. The plan lays out longer-term economic policies towards realizing a Society 5.0, or

a data-driven society. The Future Investment Strategy includes 143 pages of policy measures and 147 pages of implementation plans with measures to establish a next-generation health care system, promote FinTech and a cashless society, use of regulatory sandboxes, and promote overall innovation in financial services.

Later, Koide-san will cover some of the ways in which Aflac Japan, with its innovation-driven corporate culture and digital strategy, is acting on the business opportunities created by the Government of Japan’s reforms measures.

Japan in the Center of Global Free Trade Zone

Even as it is pursuing domestic economic reform measures, the Government of Japan is also continuing to seek deeper economic integration with Asia and Europe through free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or TPP-11, and the Japan-EU Economic Partnership Agreement. These two major agreements will go into effect in 2019, putting Japan at the center of the world’s largest free trade area representing a combined GDP of roughly $28 trillion, or nearly 35 percent of global GDP, and more than 1 billion consumers. These developments, as well as other trade deals under negotiation, can be expected to contribute to Japan’s economic growth, strengthening its attractiveness as a destination for foreign investment and products and services, providing new avenues for Japan-based firms to access foreign markets, and helping to generate a positive cycle of pro-growth reforms.

FSA’s New Regulatory Policy: Balancing Regulation with Growth

9

Source: Cabinet Office, Government of Japan

New Economic Policy Package

ü Focused investment period through 2020ü Implement tax, budget and regulatory

reform measures

Future Investment

Strategy

Robust economic policy plan with measures to:

• Establish next-generation healthcare system

• Promote FinTech and a cashless society

• Utilize regulatory sandboxes

• And more

10

Japan-EU EPA

TPP 11

Negotiations underway:

Total GDP: $22.18 trillion

Total GDP: $10.62 trillion

U.S. GDP: $19.39 trillion

Source: Ministry of Foreign Affairs, IMF WEO

Japan GDP: $4.87 trillion

• Regional Comprehensive Economic Partnership (RCEP, 16 members)

• Japan-China-Republic of Korea FTA10

Japan-EU EPA

TPP 11

Negotiations underway:

Total GDP: $22.18 trillion

Total GDP: $10.62 trillion

U.S. GDP: $19.39 trillion

Source: Ministry of Foreign Affairs, IMF WEO

Japan GDP: $4.87 trillion

• Regional Comprehensive Economic Partnership (RCEP, 16 members)

• Japan-China-Republic of Korea FTA

11

Key components include:

• Shift from a rules-based to a principles-based approach to supervision

• Abolish FSA’s inspection manual

• Promote customer-centric business practices

• Encourage financial innovation through FinTech

• Further promote corporate governance reforms

8

Arrow One: Bold Monetary Policy

Arrow Two: Flexible Fiscal Policy

Arrow Three: Growth Strategy

New Economic Policy Package

Future Investment Strategy

Abenomics “Three Arrow Strategy” Enhanced growth strategies

27

28

Another important component of Japan’s structural reform and economic growth strategy is the transformation of its financial regulatory regime. Japan’s single financial regulator, the Financial Services Agency, or FSA, has spent the last three years preparing a comprehensive reform plan that emphasizes balancing regulation with economic growth.

Key components of the FSA’s transformation efforts include shifting from a heavily rules-based approach to a principles-based approach to supervision, abolishing FSA’s inspection manual, promoting customer-centric business practices, encouraging financial innovation through FinTech, and further promoting corporate governance reforms.

From Financial “Sanctions” Agency to Financial “Promotion” Agency

To ensure effective implementation of these policy measures, in July 2018, the FSA completed its first major structural reorganization since it was founded in 2000.

The FSA believes that this reorganization will allow it to enhance strategy development across financial services, respond in a timely manner to changes in financial markets, develop a regulatory framework in line with technological innovation, and conduct more effective and efficient supervision through seamless off-site and on-site monitoring. FSA leadership has even noted that the agency will now become the Financial “Promotion” Agency instead of an agency known as the Financial “Sanctions” Agency.

Aflac Japan has enjoyed a positive and constructive relationship with the FSA and is well positioned, especially with the post-conversion subsidiary structure, to leverage the new regulatory environment to implement innovative business initiatives. Koide-san covers this further in his presentation.

Integrated Tax, Social Security and Health Care Reform

Recognizing that stronger economic growth and fiscal consolidation measures will be necessary to achieve its fiscal goals, the Government of Japan has delayed its target to achieve a primary balance surplus from 2020 to 2025 while staying on plan to implement the consumption tax hike to 10% in October 2019.

In this regard, the Japanese government continues to implement measures as part of a program of integrated social security, health care, and tax reform, designed to control the natural increase in social security costs. This reform program includes measures to enhance efficiency in medical and care services delivery systems, improve productivity, and optimize benefits and burdens. These efforts are making it very clear to consumers that they must look to private sector supplemental cancer and medical products to help bear the financial burden of higher medical expenses.

In conclusion, I am pleased to note that Aflac Japan is well positioned to take advantage of business opportunities that wi l l be created by the emerging economic developments and public policy and regulatory changes in Japan.

Just as we have anticipated change in the past and formulated proactive strategies, we are ready to leverage new opportunities in the coming years, maintain our leadership position, and continue to grow, especially with the post-conversion structure and governance.

12

New FSA Structure (Effective July 2018)

Policy and Markets Bureau

Supervision Bureau

Securities and Exchange Surveillance Commission

Commissioner

Strategy Development and Management Bureau

FSA Minister Major Objectives:

• Enhance strategy development capabilities

• Deepen financial administration expertise

• Develop regulatory framework in line with technological innovations

• Develop seamless off-site and on-site monitoring (abolish the Inspection Bureau)

13

Key measures include:• Healthcare system reform• Improving productivity• Social Security reform

» Optimizing/streamlining medical/care services delivery system

» Optimizing benefits/burdens• Consumption tax hike to 10% in October 2019

The Abe Administration aims to enhance Japan’s fiscal position

29

Aflac Japan was established 44 years ago as the first company to offer cancer insurance in Japan. In the decades since, Japan has undergone significant change – social, economic, regulatory, and governmental – but Aflac Japan has stayed true to its core values and endeavored to create new value for its stakeholders, including policyholders, shareholders, and society as a whole.

This presentation provides an update on Japan’s third sector insurance market and addresses Aflac Japan’s standing in the market and our strategy moving forward.

Roadmap

Opportunity for Growth: Third Sector Policies

(Cancer & Medical, FSA Basis, Stand-alone, Life Industry Only)

Japan’s life insurance market is one of the largest in the world along with the United States. The third sector includes cancer, medical, and income support insurance. It is a significant growing segment in Japan’s life insurance industry, and Aflac Japan is the leading company in Japan’s third sector.

Japan’s low birthrate and aging population are putting increasing pressure on Japan’s national health insurance system. This pressure, combined with medical advancements and diversifying consumer needs, including greater cancer awareness, is resulting in a growing third sector insurance market in Japan. For example, the third sector has more than doubled in size in the past fifteen years and, as you can see, the total number of in-force policies of stand-alone cancer and medical products was over 60 million at the end of March 2018. Many companies see growth opportunities in this market. That said, Aflac Japan plans to further expand its position as the leading

company in Japan’s third sector market by leveraging our attractive products, broad distribution, and trusted brand.

Cancer Insurance Market Penetration(Product Penetration, Individual Basis, Three-year Interval Data)

According to industry data, in 2016, 81% of Japanese citizens were covered by some form of life insurance product.

The market penetration for cancer insurance, which Aflac pioneered, has risen more than 6.6 % over the last 10 years and currently stands at 37.8%. Given that cancer is a leading cause of death in Japan, we expect product demand and the upward trend in cancer insurance product penetration to continue to rise. At the same time, efforts by the government at both the national and local level to promote cancer awareness will similarly contribute to increased consumer demand for cancer insurance.

Medical insurance market penetration stands at 72.1%. Although this number is much higher than cancer, we continue to see opportunities for growth as consumers seek third sector insurance products to supplement Japan’s strained social security system.

Leader in a Growing Market: Cancer Insurance Policies

(FSA Basis, Stand-alone, Life Industry Only)

Overview of Aflac JapanMasatoshi Koide

President and Representative Director, Aflac Life Insurance Japan

2

Policies in Millions

Source: Life Insurance Association of Japan

05

101520253035404550556065

3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18

Market more than doubled in 15 years

Medical Cancer

3

77.7 77.9 79.9 79.2 81.5 81.0

73.0 69.3 71.3 72.3 74.0 72.1

21.2 25.3 31.2 33.1 37.3 37.8

0

20

40

60

80

100

2001 2004 2007 2010 2013 2016

Life insurance Medical insurance Cancer insurance

Source: Japan Institute of Life Insurance Life insurance does not include annuity insurance or child endowment

%

4

0

5

10

15

20

25

30

3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18

Aflac Others

Source: Life Insurance Association of Japan

Policies in Millions

1

I. Japan Insurance Market: The Growing Third Sector

II. Aflac Japan’s Competitive Advantages

III. Aflac Japan’s Vision and Strategy for Growth

30

The stand-alone cancer insurance market in Japan is growing. The number of stand-alone cancer insurance policies in force has increased to 24.5 million policies as of March 2018. Aflac has maintained its leading position in Japan’s cancer insurance market, and today holds a 62.9% share of the stand-alone cancer insurance market.

This dominant position facilitates Aflac’s cost-effective approach to product development in which cancer product revisions are released every three to four years. These revisions enable Aflac to continue offering products that meet changing consumer needs and support Aflac Japan’s leading role as the market continues to grow.

We expect to maintain, and even strengthen, this position in large part through Aflac Japan’s broad distribution channels and strategic partnerships.

Leader in a Growing Market: Medical Insurance Policies

(FSA Basis, Standalone, Life Industry Only)

Let me now turn to Aflac Japan’s market share and the overall market growth for stand-alone medical insurance in terms of policies in force. The total number of policies in force for stand-alone medical insurance products in Japan has grown year-over-year. As of March 2018, there were 36.8 million policies in force, representing a 4.2% increase when compared to the end of March 2017.

Aflac Japan’s total market share in terms of policies in force was 16.1% as of the end of March 2018. Aflac Japan was not the first to enter the medical insurance market; however, Aflac was the first to introduce a stand-alone medical insurance product that offered long-term coverage for low premiums. In doing so, Aflac created a new market, which today is increasingly competitive. We expect to maintain and even strengthen this position in large part through Aflac Japan’s broad distribution channels and strategic partnerships.

Market Catalysts

Looking ahead, various factors are converging to help create a growth market for Aflac Japan’s core products and capabilities. The Japanese population is living longer, healthier lives. When combined with the low birthrate, Japan’s population will continue to age and shrink in numbers. Against this backdrop, financial pressure on Japan’s national health insurance system will continue to rise and diversifying consumer needs will continue to evolve with medical advancements and other social change.

Leveraging Our Strengths as a Market Leader

Aflac Japan’s attractive products, broad distribution, and trusted brand are key sources of competit ive advantage. Furthermore, Aflac Japan’s scale, efficiencies, and expertise due to our focus on the third sector, especially cancer insurance, for more than 40 years will enable Aflac Japan to continue to grow and thrive as the leading company for cancer and medical insurance in Japan.

5

0

5

10

15

20

25

30

35

40

3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18

Aflac Others

Source: Life Insurance Association of Japan

Policies in Millions

6

Third sector market dynamics support further expansion, including:

Aging Population

Financial Tightening of National Health Insurance System

Diversifying Consumer Needs

7

Aflac Japan is the leading company for cancer and medical insurance in Japan

Attractive Products

Broad Distribution

Trusted Brand

31

Competitive Advantage: Attractive Products

Aflac Japan has a history of developing innovative products to help relieve financial burdens and address consumer wants and needs.

On April 2, for example, Aflac Japan launched two new cancer products. “Days 1- Cancer insurance for daily living” provides more comprehensive coverage to cope with medical advances and other factors, which Ariyoshi-san’s presentation covers. “Days 1 Plus” targets existing policyholders seeking to upgrade their cancer insurance for more up-to-date protection.

Regarding medical insurance, Aflac was the first to introduce a stand-alone medial insurance product in Japan that provided long-term coverage for low premiums. That product, EVER, enabled Aflac to pioneer the stand-alone medical insurance product market.

In July 2016, Aflac Japan launched Income Support Insurance. Although the market for this product remains immature in terms of sales volume compared to the cancer and medical insurance, Aflac Japan is taking a long-term view. We will continue to increase awareness of income support and focus on those concerned about disability and home ownership.

Regarding first sector sales, we are continuing to offer profitable protection-type products, such as our recently launched product, Prepare Smart Whole-Life Insurance. This product provides beneficiaries, typically family members, with a pre-determined benefit payment upon the death of the insured. This product enables Aflac Japan to provide agents with a full range of product offerings.

Competitive Advantage: Broad Distribution

In addition to maintaining an attractive product portfolio, Aflac Japan also aims to lead the industry in distribution channel diversity and reach. Aflac Japan has enhanced and expanded its distribution network to provide more opportunities to be where the customer wants to purchase insurance products. Our traditional channel – which includes approximately 11,000 agencies – has been a key to our success. We are also strengthening non-traditional distribution channels, such as walk-in shops and visits by sales persons – primarily in urban areas – to further enhance sales.

Strategic alliances through partners such as Japan Post Group, Dai-ichi Life, and Daido Life continue to strengthen and evolve. As you know, Japan Post sells our cancer insurance through more than 20,000 post offices and 76 Kampo offices throughout Japan. To further enhance this strategic partnership, we have established close relations with Japan Post at every level, from executive management to the sales frontline. Aflac Japan continues to implement education and training programs to ensure Japan Post sales representatives are even more knowledgeable about cancer and Aflac Japan’s cancer insurance.

These alliances ultimately improve Aflac Japan’s market access, increase our touch points with existing and potential customers, and allow the company to associate with other trusted brands.

Banks also allow Aflac Japan additional avenues to reach consumers and offer products in the places consumers want to buy them. As of March 2018, Aflac Japan was represented at 372 banks, nearly 90% of the banks in Japan. These banks, in addition to local shinkin banks, offer a broad range of financial services including selling Aflac’s third sector insurance.

8

Income Support Insurance

EVER

Cancer

Medical

Income Support

Insurance

First Sector

Prepare Smart Whole-Life Insurance

Days 1 - Cancer insurance for daily living

Days 1 Plus

9

Daido Life • Selling cancer insurance products in SME association market

• Nearly 40,000 Dai-Ichi Life sales representatives offer Aflac cancer insurance products

Dai-ichi Life

Japan Post

• More than 20,000 post offices nationwide selling Aflac cancer insurance products

• Kampo (Japan Post Insurance Co., Ltd.) offers Aflac cancer insurance products through its 76 branches

Channel DetailsCategory

Strategic Partners

Traditional Channel

Banks

• Vital for Aflac Japan sales, with approximately 11,000 agencies

• Aflac Japan was represented at 372 banks, nearly 90% of the total banks in Japan as of March 2018

Core

32

Competitive Advantage: Trusted Brand

Aflac’s brand has more than 91% recognition in Japan. This broad recognition is attractive to our partners and helps us reach customers who aspire to have high-quality products and services for “insurance for daily living.”

Aflac Japan VISION 2024

As we have shared in previous briefings, Aflac Japan’s mid- to long-term strategy, called “VISION 2024,” provides direction through Aflac Japan’s 50th anniversary as Aflac Japan aims to strengthen its position as the leading company in the third sector and expand business into new frontiers consistent with our core capabilities and values.

Japan Branch Conversion to Subsidiary

A first step in realizing VISION 2024 was the conversion of Aflac’s Japan branch operations into a local subsidiary.

Following our conversion on April 2 of this year, we have been working to further strengthen our ties with Aflac Japan’s 15 million policyholders and business partners.

The conversion was a complicated undertaking, and its success is a testament to the coordination and hard work of many, including one of our directors, Ms. Yoko Kijima, who oversaw the process for the Japan side.

Aflac Japan’s post-conversion governance framework provides the Japan executive management team with greater business development flexibility, and we are cultivating an innovation-driven corporate culture. Against that backdrop, there are three themes I would like to highlight for you.

First is to further strengthen Aflac Japan’s third sector insurance business.

Second, is exploring new business opportunities consistent with Aflac’s core capabilities and values.

And third, is cultivating our innovation-driven corporate culture to make it possible to respond to customers’ diversified needs under changing circumstances in a timely and appropriate manner.

Further Strengthen Third Sector Business

We plan to strengthen third sector insurance business by focusing on three priority areas: first, expanding new annualized premium for cancer and medical insurance; second, growing income support insurance to develop new third sector markets alongside cancer and medical products; and third, strategically enhancing protection-type first sector products to strengthen third sector sales.

With respect to first sector products, in the context of Japan’s low interest rate environment, we have reduced sales of savings-type products and instead focused on

11

Vision Being the leading company “Creating Living in Your Own Way”

Through VISION 2024 Aflac Japan will:

• Strengthen Aflac’s position as the leading company in the third sector

• Expand business into new frontiers consistent with our core capabilities and values

• Cultivate an innovation-driven corporate culture

12

Strategic benefits of conversion

Enhanced capital flows transparency

Greater business development flexibility

13

Expanding new AP for cancer and medical insurance

Growing Income Support Insurance to develop new third sector markets

(i.e., in addition to cancer and medical)

Strategically enhance protection-type first sector products

to strengthen third sector sales

Drivingthird sector business growth

Secure third sector new annualized premium (AP) by focusing on priority areas:

10

Aflac’s widely-recognized brand:

• Attractive to business partners

• Communicates high-quality products and services for “insurance for daily living”

Aflac’s brand recognition is over 91%

protection-type products, such as Prepare Smart. That said, we are strategically continuing sales of protection-type products to associates that offer comprehensive consulting sales to their customers. Such products continue to provide meaningful profitability and are aimed at driving third sector business growth.

Explore Growth-Oriented New Business Opportunities

Aflac Japan is continually exploring new business opportunities with the goal of providing customer-centric new products and services to maximize the value proposition of “insurance for daily living.” To achieve this goal, Aflac Japan is leveraging its competitive strengths, scale, efficiencies and extensive experience to identify new third-sector fields and explore new business opportunities.

On September 19, for example, Aflac Japan announced the release of a new health promotion medical insurance product that will encourage policyholders to maintain a healthy lifestyle by rewarding them with premium refunds if the policyholder’s health age is lower than his or her actual age. This new product will target younger consumers and feature several characteristics that make it unique to the industry, including an online application portal, primarily available on smartphone.

Aflac Japan developed a digital health platform for this new product and we have incorporated value-added services from partners including Medical Note, MRSO, and more. As you may recall from last year’s briefing, Medical Note is a provider of online and tele-medical advice services, and MRSO is a digital health venture that provides online health checkup reservation services. We intend to further expand this platform in the future.

Digital Innovation and Customer Experience Enhancements

Consistent with the Government of Japan’s focus on growth, and specifically the data revolution, Aflac Japan is further diversifying its sales channels and enhancing the customer experience by leveraging digital innovation to enable the company to even more effectively engage consumers in the places and ways they prefer. Here are a few examples.

Last April, in conjunction with the launch of Days 1, Aflac Japan introduced a new online system, Digimo 2.1, to support customers through the process of selecting and applying for insurance products. Digimo 2.1 offers customers instant underwriting results and allows them to choose multiple insurance products simultaneously. Aflac Japan is broadening the ways customers receive their insurance benefits and utilizing open innovation to enhance customer experience.

In December 2018, we will begin phasing in a straight-through payment system to simplify claims evaluations. Straight-through payment will util ize biometrics and leverage Mitsubishi UFJ’s online banking services for real-time bank transfer. The system will be supported by new technologies, and modification to existing systems will reduce manual checks and improve the accuracy and speed of assessment and payment operations.

Beginning in November 2018, policyholders will be able to receive cash remittances at Seven Bank ATMs. Aflac Japan currently offers policyholders the option of receiving cash remittances through bank account or postal transfer. This new option will further expand convenience, and we will start with insurance fee refunds at roll-out.

These initiatives and others like it are part of Aflac Japan’s strategy to not only improve the customer experience but drive further expense efficiencies in our platform.

33

14

Digital HealthPlatform

Aflac Japan’s Health Promotion Medical Insurance

ActivityProgram

Digital Medical

Dictionary

Hospital Referral

Online Healthcare Consulting

Online Health

CheckupReservation

15

Interactive platform for insurance product selection to streamline application process

Providing cash remittances through Seven Bank ATMs and 7-11 cash registers – an industry first

Straight-Through

Payments

Cash Remittance

Service

Digimo 2.1

Enabling instant claims payments through biometrics and leveraging Mitsubishi UFJ online banking service for real-time bank transfer

Leveraging open innovation to enhance customer experience

Improving policy application process

34

Aflac Innovation Lab

In August, Aflac Japan launched the Aflac Innovation Lab in Minami Aoyama, a hub of innovation in Tokyo’s Shibuya ward, to serve as our base for new business development initiatives. We plan to use the facility to encourage out-of-the-box thinking, create an ecosystem with startups, and promote an innovative corporate culture.

Cultivate an Innovation-Driven Corporate Culture

One of my priorities as Aflac Japan’s President has been to ensure that the Company has a strong talent pool. In part, we are investing in our talent through existing initiatives to foster an innovation-driven corporate culture through diversity promotion and Work SMART initiatives to bring in new perspectives and enhance efficiency.

We are also enhancing our investment in employee development because their personal growth will ultimately contribute to Aflac Japan’s sustainable growth. In this context, we are introducing a broad talent development program to strengthen future leadership and managerial abilities. Such initiatives include next generation executive development, U.S. training, and other programs. These efforts are being overseen by Riko Kubo, who is also a member of Aflac Japan’s Board of Directors.

I would like to emphasize that just as Aflac Japan has anticipated change in the past and formulated proactive strategies, we are ready to leverage new opportunities in the coming years, maintain our leadership position, and continue to grow, especially with the post-conversion subsidiary structure. Aflac Japan has the right people and the right strategy to continue leading the third-sector insurance market while pushing into new business frontiers.

16

Leading Aflac Japan’s new business development initiatives

Promoting an Innovation-driven Corporate Culture

17

Innovation-driven Corporate Culture

Work SMARTDiversity Promotion

Talent Development: Leader Training

Next Generation Executive

Development ProgramU.S. Training Program

35

This presentation provides an overview of Aflac Japan’s sales and marketing.

Review of Results: Third Sector New AP(Yen in billions)

Aflac Japan’s third sector new annualized premium (or AP) has increased continually since 2012. New AP for the third sector products has grown from 64.4 billion yen in 2012 to 87.4 billion yen in 2017, which means that our new business has grown at a 6.3% CAGR over the past 5 years. We have also secured 4.1% year-over-year growth for the first half of 2018. We will achieve growth for six years running if we end 2018 with positive growth, which should increase third sector premium income, too.

Cancer Insurance: Evolving Coverage

Looking at second quarter 2018 third sector sales, Aflac Japan achieved significant year-over-year growth of 16%, which was driven by the new cancer insurance products released in April 2018.

For more than 40 years since Aflac introduced Japan’s first cancer insurance in 1974, we have revised our cancer insurance products to match the changing medical environment, the potential financial burden that serious illness can bring and the advancement of health care and medical technology.

With the rise of new diagnostic technologies, we have witnessed earlier detection of cancer, which was essentially undetectable in the past. More advanced diagnostic capabilities suggests that there will be more cases of early detected cancer.

Moreover, depending on the type and stage of cancer, as well as the timing of detection, treatments may vary in terms of method, frequency and duration. These factors lead to differences in financial burden among customers.

Cancer patients also tend to have more treatment options today, which can also affect the financial burden, depending on the selected treatment.

To cope with these changes, our new cancer insurance products are designed to allow customers to obtain the latest coverage that matches the changing medical environment and corresponds to their financial burden, which could significantly vary due to the advancement of diagnostic technology and more treatment options.

No other company provides such coverage, and our unique cancer insurance leverages the expertise Aflac has accumulated over many years as the pioneer and leader in cancer insurance. This also helps explain why these products have been so successful and appealing to our customers.

Successful Launch of New Cancer Insurance: Key Initiatives in Two Channels

With the launch of our new cancer insurance products, the largest contributors to the successful growth of cancer sales were the Agency Channel and Japan Post. Let me explain the major initiatives we have undertaken for these channels.

The Agency Channel manages a large portion of Aflac Japan’s 15 million in-force cancer policies.

Many among this group of policyholders have the propensity to update and/or increase their insurance coverage, so as part of our new product launch, we rolled out TV commercials targeting not only new customers but existing policyholders as well. In addition, we carried out our biggest direct mail campaign to date targeting existing policyholders.

After sending out direct mail to existing policyholders, we made follow-up calls to invite them to face-to-face meetings. We also worked to guide them toward the

Aflac Japan Sales and Marketing OverviewKoji Ariyoshi

Director; Executive Vice President; Director of Sales and Marketing, Aflac Life Insurance Japan Ltd.

0

20

40

60

80

100

2012 2013 2014 2015 2016 2017 2018e

6.3% CAGR

64.4

87.4¥

Coverage that matches the changing medical environment and leverages Aflac Japan’s

40+ years of expertise and experience

Agency

Japan Post

• Rolled out TV commercials targeting existing policyholders and direct mail campaign linked to the commercials

• Focused on inviting customers to face-to-face meetings after sending out direct mail

• Introduced a digital platform for navigating customers towards the most appropriate coverage

• First new product release since expanding to 20,000 post offices offering Aflac’s cancer insurance

• Front-loaded sales efforts to second quarter

36

most appropriate coverage by offering recommendations through a new digital application form.

The successful results in the agency channel serve as an excellent reminder that there is still potential in Aflac Japan’s existing policy market.

Japan Post also significantly contributed to the second quarter’s sales growth.

Japan Post results can be attributed to the recent new product release, which is our first new product release since expanding to 20,000 post offices offering Aflac’s cancer insurance. Another factor is Aflac Japan providing additional specific premium waivers, which had long been requested by Japan Post.

Japan Post also frontloaded sales efforts to the second quarter, and all of these led to a dramatic sales increase. Thanks to these channel-specific initiatives, we successfully increased sales of our new products, leading to higher results in the 2nd quarter than originally expected.

Growth Potential in the Third Sector

Under the low interest rate environment, competitors have reduced their sales of savings-type products and focused instead on protection-type products, mainly in the third sector. As a result, competition in the third sector is intensifying with the increase in the number of competing products. However, Aflac Japan’s third sector new AP is still growing sustainably, and it can continue growing in the future as well.

The first growth factor is increased longevity and the aging population. With advancements in medicine and greater attention to wellness, people are living longer. In addition, Japan’s population is aging. As people age, the risk of cancer and other serious diseases, injuries and need for nursing care increases. Therefore, we expect the need for third sector products to increase accordingly.

The second factor is advancements in medicine and medical technology, through which the forms and methods of treatment are also changing. For cancer and medical insurance, coverage that is better aligned to the current treatment environment is becoming a necessity.

In the cancer sector, treatments are expected to advance and evolve even further. With medical insurance, the focus of treatment is shift ing from long-term hospitalization to outpatient treatment. As a result, there are cases where a customer’s coverage does not meet the

current treatment recommendations, hence the potential for adding benefits or revising into the latest coverage.

By taking these changes as growth opportunities, we will strengthen both the products and channels that cater to customer needs, primarily in the third sector.

Product Strategy

As for our product strategy, we will strengthen our products by focusing on two key points. The first is “enhancing product offering according to one’s stage of life.” The coverage that customers need depends on their stage of life. Young and single people mainly prepare coverage for themselves. But once they start forming their own households, they look for coverage for their families as well. When they grow old, they need coverage to live comfortably after retirement. We would like to enhance the areas where we can efficiently and effectively provide coverage options best suited to consumers’ various stages of life. For example, we are looking to enhance the area where we can offer protection-type first sector coverage while simultaneously recommending third sector coverage options such as income support or lump sum and supplemental nursing care coverage.

The second is enhancing coverage according to medical technology advancement. As covered, the new cancer insurance product offers comprehensive coverage, including protection, based on the current medical environment, as well as coverage for expenses associated with changes in appearance due to side effects of treatment, etc. In addition, by enhancing product plans and infrastructure for existing policyholders, we also came up with a product design that allows policyholders to update their policy to the latest coverage to better meet their needs. By leveraging these features, Aflac Japan will expand its business with existing policyholders in addition to acquiring new customers.

Aflac Japan has a large number of existing policyholders primarily consisting of cancer and medical insurance policies.

We have reinforced our approach to this market through the comprehensive marketing campaign I covered earlier and accomplished successful results, which we believe has brought us a new way of approaching the market. The outcome of the initiative shows that there is a strong

Environment

Longevity and anaging population

Healthcare and medical technology

advancements

Customer need

To prepare for old age, including disease, injury, nursing care, etc.

To add or revise coverage to match the

current medical environment

Medical Income support

First sector protectionCancer

Provide the latest coverage with more flexibility in coverage design to meet customer needs at each stage of life

Offer enhanced products for one’s stage of life1

Offer enhanced coverage to match healthcare and medical technology advancements2

37

potential for additional purchase and review of coverage not only for cancer insurance, but also for medical insurance.

Channel Strategy

Aflac Japan has established a variety of channels and expanded its sales network to provide customers with choices in insurance application methods. Let me highlight the future initiatives for our largest channels, the Agency Channel and Japan Post.

For the Agency Channel, we will further explore the existing policy market while building on the success of the new product initiatives I covered previously.

In order to maximize the potential of the markets owned by our agencies throughout the country, we have dispatched personnel to sales offices according to the characteristics of each agency and established a sales office structure that can provide effective support. Through these efforts, we are providing extensive support that matches the characteristics of each agency.

Going forward, Aflac Japan will increase its involvement in the management of each agency to further help establish a robust management base and business structure. For example, we will help improve the retention of agents and provide a framework for managing activities.

In addition, we will strengthen efforts to establish an infrastructure for ensuring efficient and effective sales activities, and concentrate on the market of existing policies to spur the growth of the Agency Channel.

Japan Post has a community-based network across the country. Since entering into partnership with Japan Post

in 2013, the number of post offices selling Aflac’s cancer insurance has increased steadily. As you know, Aflac’s cancer insurance is offered at approximately 20,000 post offices and by approximately 100,000 agents.

As I covered, Japan Post contributed significantly to sales in the second quarter of 2018, partly because the new cancer insurance products were the first products launched since the number of post offices offering our products reached 20,000. The individual post office production rate is increasing, and we are aiming for stable results by continually providing support to Japan Post agents through education and training.

Outlook for Earned Premium Growth: Protection EP

I would like to end my presentation by explaining what this means in terms of long-term premium growth.

Going forward, we are looking to promote our first sector protection products, which are less interest rate sensitive and more profitable than first sector savings products. We expect it to contribute to growth in earned premium, though it has a comparatively lower volume than third sector products.

Longer term, we expect earned premium for the third sector product and the protection-type first sector product to increase steadily in a range of 1.5% to 2.5% backed by growth of new business.

Aflac Japan’s recent conversion to a subsidiary earlier in 2018 reinforces our commitment to Japan. As a result, Aflac Japan will continue to be a company that can be relied on by Japanese policyholders just as it has for more than 40 years.

Agency

Approx.11,000 agencies

nationwide

• Further explore the existing policy market

• Increase involvement in the management of each agency to help establish robust management base and business structure

• Establish an infrastructure for more efficient sales activities

StrategicPartner

Approx. 20,000 post offices nationwide

• Promote sales at Japan Post’s community-based sales network across Japan

• Provide continuous support for Japan Post agent activities

Channel category Initiatives

Major channels

(with large share of sales)

In billions

0

200

400

600

800

1,000

1,200

1,400

2015 2016 2017 2018e 2020e

1.5% to 2.5%¥

38

DAYS 1 Cancer Insurance (No CSV) Benefits: Sample Monthly Direct Premium (Whole Life Payment): First occurrence ¥ 500,000 $ 5,000 30-year-old male ¥ 2,760 $ 27.60 Specific Occurrence* 500,000 5,000 40-year-old male 4,080 40.80 Hospitalization/day 10,000 100 50-year-old male 6,500 65.00 Surgical 200,000 2,000 Outpatient/day 10,000 100 Radiation therapy 200,000 2,000 Anticancer drug treatment per month 50,000 or 100,000 500 or 1,000 * The “specific occurrence” benefit will be paid when the policyholder undergoes 30 days of treatment or more on a combined basis of hospitalization and/or outpatient treatment within a two-year period of the first occurrence diagnosis.

For those who did not meet the aforementioned conditions, the “specific occurrence” benefit will be paid if the policyholder has cancer and undergoes hospitalization or outpatient treatment for at least one day after two years or more passed since the first occurrence diagnosis.

DAYS Cancer Insurance for Cancer Survivors Benefits: Sample Monthly Direct Premium (Whole Life Payment): Hospitalization/day ¥ 10,000 $ 100 30-year-old male ¥ 7,280 $ 72.80 Surgical 200,000 2,000 40-year-old male 8,190 81.90 Outpatient/day 10,000 100 50-year-old male 10,330 103.30 Radiation therapy 200,000 2,000 Anticancer drug treatment per month 50,000 or 100,000 500 or 1,000

EVER (Standard Whole Life Medical Insurance) Benefits: Sample Monthly Direct Premium (Whole Life Payment): Sickness or accident hospitalization/day* ¥ 10,000 $ 100 30-year-old male ¥ 3,750 $ 37.50 Surgical 50,000/100,000/400,000 500/1,000/4,000 40-year-old male 4,910 49.10 Radiation therapy 100,000 1,000 50-year-old male 7,470 74.70 Outpatient benefit 10,000 100 *Maximum days per hospital stay is 60. Maximum lifetime days is 1,095. When hospitalization stay is 5 days or shorter, ¥50,000 will be paid uniformly.

New Gentle EVER (Nonstandard Whole Life Medical Insurance) Benefits*: Sample Monthly Direct Premium (Whole Life Payment): Sickness or accident hospitalization/day** ¥ 10,000 $ 100 30-year-old male ¥ 7,530 $ 75.30 Surgical 50,000/100,000 500/1,000 40-year-old male 8,416 84.16 Radiation therapy 100,000 1,000 50-year-old male 10,016 100.16 Sickness or accident outpatient/day 6,000 60 *Cut in half for occurrences within one year after issue date. **Maximum days per hospital stay is 60. Maximum lifetime days is 1,095.

Aflac Health Promotion Medical Insurance Benefits*: Sample Monthly Direct Premium (Whole Life Payment): Sickness or accident hospitalization/day ¥ 10,000 $ 100 30-year-old male ¥ 2,379 $ 23.79 Surgical 50,000 500 40-year-old male 3,309 33.09 Radiation therapy 50,000 500 50-year-old male 4,849 48.49 Health refund determined by health age* Health Refund* (per annum): 30-year-old male ¥ 2,300 $ 23.00 40-year-old male 3,400 34.00 50-year-old male 4,400 44.00 * A portion of premiums will be refunded if the policyholder’s “health age,” measured by health check items of BMI, blood pressure, HbA1c blood testing, and yGTP or GOT blood testing, is lower than his/her actual age. Note: This is the

first health promotion medical insurance in the industry in Japan to be offered and purchased online.

Income Support Insurance Benefits: Sample Monthly Direct Premium (Maturity at age 65): Short-term recovery support benefit ¥ 100,000 $ 1,000 30-year-old male ¥ 5,360 $ 53.60 Long-term care support benefit 200,000 2,000 40-year-old male 6,160 61.60 50-year-old male 7,420 74.20

GIFT Benefits: Sample Monthly Direct Premium (Payment through age 60): Death of policyholder ¥ 200,000* $ 2,000 20-year-old male ¥ 7,100 $ 71.00 30-year-old male 7,100 71.00 40-year-old male 7,760 77.60 *Paid monthly to the beneficiary until the end of payment period

Prepare Smart Whole Life Insurance (Low CSV) Benefits: Sample Monthly Direct Premium (Whole Life Payment): Death of insured/insured being seriously disabled ¥ 3,000,000 $ 30,000 50-year-old male ¥ 8,559 $ 85.59 60-year-old male 12,411 124.11 70-year-old male 20,328 203.28

Aflac Japan’s Product Line(as of 09/01/18, except Aflac Health Promotion Medical Insurance as of 10/22/18)

39

WAYS* Benefits: Sample Monthly Direct Premium (Payment through age 60): Sum insured ¥ 5,000,000 $ 50,000 30-year-old male ¥ 12,180 $ 121.80 40-year-old male 20,725 207.25 50-year-old male 43,885 438.85 *Whole life policy that can be converted to: fixed annuity, medical coverage, nursing care

Child Endowment Benefits: Sample Monthly Direct Premium**: Lump-sum education ¥ 500,000 $ 5,000 30-year-old male ¥ 14,430 $ 144.30 Education annuities* 2,500,000 25,000 40-year-old male 14,630 146.30 50-year-old male 15,100 151.00 *Paid over four years **Payment through age 18 of the child

Note: Amount in dollars reflects exchange rate of ¥100=$1.

Aflac Japan’s Product Line (con’t)

40

Corporations Supporting Aflac Japan(as of 09/01/18)

# Corporate agent and payroll group* Payroll group Not listed on Tokyo Stock Exchange

s

Legend

Construction# Taisei Corporation# Kajima Corporation# Takenaka Corporation* Shimizu Corporation# Obayashi Corporation# Tokyu Construction Co. Ltd.

Foods# Sapporo Holdings, Ltd.# Kirin Holdings Company, Limited# Coca-Cola Japan Company, Ltd.# Ajinomoto Co., Inc.# Nissin Foods Holdings Co., Ltd.# Megmilk Snow Brand Co., Ltd.* Asahi Group Holdings, Ltd.* Nichirei Corporation# Yamazaki Baking Co., Ltd.# Fujiya Co., Ltd.* Kikkoman Corporation

Textiles# Toyobo Co., Ltd.# Renown Incorporated# The Japan Wool Textile Co., Ltd.# Wacoal Holdings Corporation# Teijin Limited# Kuraray Co., Ltd.

Paper & Pulp# Oji Holdings Corporation# Nippon Paper Industries Co., Ltd.# Mitsubishi Paper Mills Limited

Chemicals# Mitsui Chemicals Inc.# Showa Denko K.K.# Sumitomo Chemical Company, Limited# Ube Industries, Ltd.* Kao Corporation# Daiichi Sankyo Company, Limited# Takeda Pharmaceutical Company, Limited# Shionogi & Co., Ltd.* Astellas Pharma Inc.# Shiseido Company, Limited# Otsuka Holdings Co., Ltd.# Mitsubishi Chemical Holdings Corporation# Daicel Corporation# Sekisui Chemical Co., Ltd.# Asahi Kasei Corporation

Oil & Coal Products# Cosmo Energy Holdings Co., Ltd.# JXTG Holdings, Inc.# Showa Shell Sekiyu K.K.

Rubber Goods# Bridgestone Corporation

Glass & Chemicals# AGC Inc.# Nippon Sheet Glass Co., Ltd.

Iron & Steel# Nippon Steel & Sumitomo Metal Corporation# JFE Holdings, Inc.# Kobe Steel, Ltd.

Non-ferrous Metals# Mitsubishi Materials Corporation

Machinery# Komatsu Ltd.# Sumitomo Heavy Industries, Ltd.# Kubota Corporation# Tsubakimoto Chain Co.# Ebara Corporation# Brother Industries, Ltd.

Electric Appliances# Hitachi, Ltd.# Toshiba Corporation# Mitsubishi Electric Corporation# Fuji Electric Co., Ltd.# Fujitsu Limited# Panasonic Corporation# Sharp Corporation# Sony Corporation# Pioneer Corporation# JVC KENWOOD Corporation# NEC Corporation* Ikegami Tsushinki Co., Ltd.# IBM Japan Ltd.* TDK Corporation

Transport Equipment# Denso Corporation# Mitsui E&S Holdings Co., Ltd.# Hitachi Zosen Corporation# Mitsubishi Heavy Industries, Ltd.# Kawasaki Heavy Industries, Ltd.# IHI Corporation# Nissan Motor Co., Ltd.# Toyota Motor Corporation# Mazda Motor Corporation# Yamaha Motor Co., Ltd.* Honda Motor Co., Ltd.# Isuzu Motors Limited

Precision Machinery# Canon, Inc.# Konica Minolta, Inc.# Nikon Corporation# Citizen Watch Co., Ltd.* Seiko Holdings Corporation# Ricoh Company Ltd.

Miscellaneous Mfg.# Yamaha Corporation# Dai Nippon Printing Co., Ltd.# Toppan Printing Co., Ltd.* ASICS Corporation# YKK Corporation

Commerce# Mitsui & Co., Ltd.# ITOCHU Corporation

# Marubeni Corporation# Toyota Tsusho Corporation# Sumitomo Corporation# Mitsubishi Corporation# Isetan Mitsukoshi Holdings Ltd.# J.Front Retailing Co., Ltd.# Seven & i Holdings Co., Ltd.# AEON Co., Ltd.# Takashimaya Company, Limited# Tokyu Department Store Co., Ltd.

Banks* Shinsei Bank, Limited# Mizuho Financial Group, Inc.# Mitsubishi UFJ Financial Group, Inc.# Sumitomo Mitsui Financial Group, Inc.# Resona Holdings, Inc.

Securities, Non-life Insurance# Daiwa Securities Group Inc.# SMBC Nikko Securities Inc.# Nomura Holdings, Inc.# MS&AD Insurance Group Holdings, Inc.# Sompo Holdings, Inc.

Transportation# Nippon Yusen Kabushiki Kaisha (NYK LINE)# Japan Airlines Co., Ltd.# ANA Holdings Inc.# Tobu Railway Co., Ltd.# Tokyu Corporation# East Japan Railway Company# Odakyu Electric Railway Co., Ltd.# Seibu Holdings, Inc.

Communications# Nikkei Inc.# The Asahi Shimbun Company# Dentsu Inc.# Hakuhodo DY Holdings Inc.# The Yomiuri Shimbun Holdings# The Mainichi Newspapers Co., Ltd# Nippon Telegraph and Telephone Corporation

Electricity & Gas# Tokyo Electric Power Company Holdings, Inc.# The Kansai Electric Power Company, Incorporated# CHUBU Electric Power Co., Inc.

Life Insurance# Dai-ichi Life Holdings, Inc. # Nippon Life Insurance Company* Asahi Mutual Life Insurance Co.

ss

ss

ss

s

ss

s

ss

Our vision for Aflac U.S. is to be the number one distributor of benefits solutions supporting the U.S. workforce. Aflac is executing on a solid strategy to accomplish this vision, and I’m looking forward to sharing our progress to date.

The bulk of my presentation will focus on market trends and how Aflac U.S. is responding to those trends to drive growth, efficiency and customer experience. Let’s begin with a brief look at our market trends and landscape.

Cost of Health Coverage Continues to Rise

Although the macroeconomic environment has shown marked improvement, the overall cost of health coverage has continued to rise. According to an annual Kaiser Family Foundation survey, family coverage premiums have increased 55% since 2007 and 19% since 2012. A family policy that cost about $15,700 in 2012 cost about $18,700 in 2017.

Additionally, the average employee contribution for family coverage has increased 32% since 2012, while workers’ wages increased only 11.8%. So, while the general economy shows improvement, these trends continue to limit the spending power of many American workers. Looking at it from the standpoint of deductibles, the Kaiser Family Foundation calculates that deductibles have risen more than six times faster than workers’ earnings since 2010.

Meanwhile, in addition to shifting some of those premiums over, we’ve seen a number of companies also

shifting costs to their employees through high-deductible health plans (HDHPs) and reduced benefits. In addition, many employers fund health savings accounts (HSAs) or health reimbursement accounts (HRAs); however, only the largest employers can typically afford to do so. Smaller employers simply are not able to increase their contribution to these accounts for employees.

According to the 2017 Aflac Workforces Report, many workers in the U.S. are not financially prepared to handle this steady increase in health care expenses and cost sharing. In fact, 46% are not prepared for the out-of-pocket expenses associated with an unexpected illness or accident, and 65% have less than $1,000 for such expenses. Because of these out-of-pocket costs, more than one in five employees have had difficulty paying a medical bill, delayed a medical procedure, or most alarmingly, avoided the doctor all together. This means many consumers are left financially unequipped to weather those catastrophic health situations.

With this as a backdrop, it’s no surprise that the voluntary benefits market as a whole is projected to grow at a rate of about 7% compounded annually from 2018 to 2022, with sales through broker distribution growing at a slightly faster pace.

Aflac U.S. is Well Positioned in the Market

Aflac U.S. is well-positioned in the market. Aflac insurance is offered to more than 460,000 payroll accounts through our independent sales force of 8,500+ average weekly producers, and our growing network of regional and national insurance brokers.

With about 13 million policies in force, our market share is around 19%. We continue building on our strength

41

Overview of Aflac U.S.Teresa L. White

President, Aflac U.S.

Section IIIAflac U.S.

Source: Kaiser Family Foundation Survey of Employer-Sponsored Health Benefits, 2017, and Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2017

0

5,000

10,000

15,000

20,000

25,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Employee EmployerHealth Premiums

Employer/Employee Contribution (family coverage)

Ave

rage

Hea

lth P

rem

ium

s

Worksite Health Coverage

$

• Average employee contribution for family coverage has increased 32% since 2012, while workers’ wages increased only 11.8%.

Brand Recognition Distribution Reach

• 460,000 businesses trust Aflac• 9 out of 10 consumers are aware

of Aflac

Aflac named #1 Voluntary Benefit Carrier by Employee Benefit Advisor in 2017

8,500 Average Weekly Producers

13 million policies in force

Simple Solutions…to complex benefit challenges

as industry leader by delivering innovative solutions that protect our policyholders and their families.

Aflac’s Strong Consumer Brand

Of course, our brand is at the heart of our success. It is a direct reflection of our core philosophy and desire to help people. The beloved Aflac Duck has been our symbol representing the promise that “no matter what unexpected things life throws your way, Aflac is always there in your time of need.”

Thanks in large part to the Aflac Duck, nine out of ten people in the U.S. recognize the Aflac brand. Our feathered friend has served as an effective door opener and catalyst to connect Aflac with thousands of consumers and employers.

Aflac’s Tremendous Growth Opportunity

When you consider that there are about 171 million people in the U.S. workforce, but only a little more than 7.5 million are covered by Aflac, this represents a tremendous opportunity. To capitalize on this opportunity, we’ve adjusted our vision from being the number one distributor of voluntary products in the U.S. worksite, to being the number one distributor of benefits solutions supporting the U.S. workforce.

With that, in addition to increasing access and penetration or participation at the worksite, we have

the opportunity to increase access to the 24.3 million entrepreneurs, independent professionals and contractors who make up the gig economy. Incidentally, this segment of workers is the fastest growing segment in the U.S.

Aflac U.S. Strategic Objectives

So what is our plan to leverage this opportunity? We’re executing on our strategic playbook, and we know that we must develop new and innovative products and services that respond to the emerging needs of the consumer. We must strengthen our core distribution and build new distribution methods to meet the needs of an evolving marketplace. We must take advantage of technology advancements to drive efficiency and positive customer experiences. Finally, we must connect with the new generation of consumers. This is exactly what Aflac U.S. is focused on delivering.

We are balancing profitable growth, operational efficiency (value creation) and the customer experience. As I mentioned earlier, Rich Williams’ presentation provides additional perspective on Aflac U.S. growth drivers, to include distribution expansion programs that respond to the changing market trends. Additionally, Rich’s presentation provides insight and perspective on how Aflac is responding with products and solutions to match the needs of this new generation of consumer.

With that, I will focus the balance of my presentation on how innovation and transformation are playing a key role in supporting our core strategic objectives. We know that automation and digitalization will reduce or eliminate some known risks, merely by reducing manual work. Aflac U.S. is responding to market trends by making key investments in digital properties and tools. These tools enable mobile claims filing and tracking, robotics automation, chat capabilities and a number of key group platforms. Ultimately, these investments will improve efficiency and customer experience. As we transform to more digital properties, we also understand that digitalization can introduce new risks to our business model, particularly in the area of cyber security. Aflac U.S. continues to make investments in our U.S. cyber program.

We have adopted the National Institute of Standards and Technology Cybersecurity Framework (NIST) for our global security program. Additionally, we have been maturing our security posture over the last four years.

For decades, Aflac has focused on creating a

Powerful and Respected Brand that has

become an integral part of our success.

More than nine out of ten people in the U.S. recognize

the Aflac brand.

Our feathered friend has served as an effective door

opener and catalyst to connect with thousands of

consumers and payroll accounts.

*Source: December 2017 Aflac segmentation study

1 Aflac policy and certificate holders as of Dec. 31, 2017Source: 2015 U.S. Census Bureau; Bureau of Labor Statistics

24.3 million

98.6 million

47.6 million

Self-employed -no Aflac access

Aflac is notoffered byemployer

Access to Aflac

Penetration

Don’t have Aflac:

40.1 million

Have Aflac:7.5 million1

Self-employed24.3 million

Public Sector22.1 million

Private Sector 124.1 millionSmall Employers

(1-99)41.4 million

Medium Employers(100-999)

24.2 million

Large Employers(1,000+)

58.5 million

U.S. Working Population 171 million

Access

Participation

Retention

Solving for:

Efficiency Experience

Invest in technology and our administrative capability to better service customers and drive down expense ratios

Continue to leverage technology and understanding of the customers’ needs to drive positive brand experience and customer satisfaction

Continue to innovate products and solutions that customers want and need

Growth

Expand distribution - be where the customer wants to purchase insurance

Risk and Regulatory

42

We see cyber security as a business imperative and an extension of our pledge to protect our customers and be there when they need us most.

Enterprise Efficiency Project Activities Will Decrease our Expense Ratio Over Time

Now, as I turn to efficiency, digitalization provides the opportunity to minimize the expenses associated with running our day-to-day operations.

At our 2016 Financial Analysts Briefing, we shared with you our expectation to invest a total of $50 million from 2016 to 2018 as part of our strategy to drive efficiencies, with a portion of that spend being capitalized. Our investment has primarily been focused in transforming our Aflac group operation, which represents a very small percentage of our financials, but presents the largest opportunity for growth and efficiency improvement. This transformation not only allowed us to focus on key customer pain points, but it also allowed me, as President, to assess our team’s ability to execute on a large scale initiative.

We’ve invested around $60 million thus far, but we have generated enhancements and a projected annual increase in earned premium of over $110 million in 2018 as compared to 2015. Additionally, we have observed an eight percentage point improvement in Aflac Group’s expense ratio over that same timeframe.

We have made Investments in digital enrollment, customer relationship management, more importantly, a new end-to-end group administration system.

At this point, we are focused on three areas: continuing to drive utilization of our new group systems, increasing digital capabilities for our customers, and conducting an assessment of our individual product platform.

With workforce dynamics continuing to evolve, we are preparing to meet workers when, where and how they want to do business with Aflac. We believe these plans will increase our overall operational efficiency and enhance our speed to market. Our long-term objective is to retire

our older, less-agile system platforms as we adjust our business models to prepare for our future state.

As I’ve mentioned in my previous remarks, I expect to see a slightly elevated expense ratio in the short term as we position ourselves to drive down our expense ratios over the longer term and continue to reinvest our expense savings back into our overall U.S. IT roadmap. Fred’s presentation also covers this topic.

Innovation to Enhance Customer Experience

The investments in our platform are a direct response to the needs of the new consumer, and they are paying off. This new consumer is more digitally capable, on the move and places a growing importance on social purpose and flexible working environments. Our new tools allow us to create services that help this new generation of consumer to interact with Aflac with the ease, choice, and simplicity that they expect and demand.

One example is One Day PaySM. For eligible claims, Aflac U.S. can process, approve and electronically send funds to claimants for quick access to cash in just one business day.

We recently enhanced our claims services to create a mobile app that allows claimants to file and track claims via their mobile device. We have already seen over 220,000 downloads of this new app, and expect to see over 340,000 by year end, which demonstrates the importance of having a digital platform.

Everwell is another example of how Aflac is responding to the changing needs and preferences of the market. As you recall, Everwell is Aflac’s proprietary platform designed to address the needs of small businesses. Everwell provides consumers a shopping experience and allows Aflac to offer partner products and value added services, alongside Aflac coverages. This further enhances the value proposition and integrates the communication, which improves the overall productivity of our independent sales distribution.

As we continue to drive adoption of these new tools and capabilities, we are also taking advantage of the opportunity to leverage relationships with Aflac’s strategic and venture investments. Our equity investments at Aflac

Transformation Plan

Simplification ∙ Automation ∙ Robotics

Everwellü 9% improvement in agent productivity 1

Customer Relationship Managementü Delivered Broker CRM (Sales Pipeline)ü Delivered Sales Talent Manager (Recruiting)ü Delivered Sales Proposal Systemü Delivered Career CRM

Aflac Group End-to-Endü Delivered 5+ new core systems in Q1 20181 Everwell agent productivity for 12 months measured on a one-quarter lag, ending March 31, 2018.

Aflac Group’s expense ratio has improved eight percentage points since 2015

Strategic and Venture Investments

Aflac One Day Pay Aflac SmartClaimMobile App

• Paid 2.2 million One Day Pay claims in 2017

• 60% SmartClaim adoption

• 90% policyholders who use One Day Pay say they are likely to refer other people to Aflac

• 220,000 mobile downloads

43

44

Ventures provide a great opportunity for us to understand and leverage new digital platforms that bring new ways to deliver value to our clients. When we screen these equity investments, one of the most important factors is whether it can benefit our core business.

I would like to share one example of a venture capital company we partnered with, to bring a unique solution to the table for our clients: Wellthie. Wellthie is a decision support tool for employers. This solution provides comparison shopping for major medical plans in their areas, and how to couple those plans with Aflac benefits to provide the best financial solution for the employer, and the best coverage for the employees.

Our strategic and venture investments are aligned with our broader enrollment strategy and enhance the Aflac value proposition by enabling us to bring key capabilities to our clients. We are excited about the potential we see with these relationships and believe this will continue to boost our strong brand and set Aflac apart from its competitors.

Premium Persistency Reflects Our Success

And one of the key measures that demonstrates that our strategy is working is premium persistency. Our 2017 premium persistency hit an all-time high of 78.4%. We believe that our transformation investment and digital innovation have contributed to these results and will do so in the future. Again, these are strong results and I am proud of the progress we have made in this area.

Aflac U.S. Growth Outlook: Access, Participation and Retention

I believe the Aflac U.S. transformation and digital investments will drive access, participation and retention. As we continue to execute on our strategic playbook, we anticipate stable premium persistency with earned premium results in line with our long term goal of 2-3% CAGR.

Net Earned Premium1(In Millions)

2,000

2,750

3,500

4,250

5,000

5,750

6,500

2015 2016 2017 2018e 2020e

1Note: Earned premium (EP) calculated on net basis; i.e., after reinsurance.

$CAGR 2% to 3%

Maintain strong persistency and generate steady earned premium (EP) growth of 2% to 3%

2017 Record-setting Aflac U.S. Premium Persistency: 78.4%

We promise to be there in their time of need.

70.0

73.0

76.0

79.0

12/14 12/15 12/16 12/17

12-Month Rolling Persistency1

%

76.5%77.3%

78.3% 78.4%

1 The premium persistency rate from 2015 forward have been adjusted to reflect the inclusion of reinstatements.

45

This presentation covers our strategic approach to growth in the U.S., which aligns with the significant market opportunities that exist. As you will recall, Aflac’s vision is to be the number one distributor of benefits solutions supporting the U.S. workforce. As Teresa’s presentation stated previously, our vision has expanded because the market is changing, and access to the workforce is evolving. There continues to be a significant need for our benefits solutions in the traditional workplace, and we are well positioned to capitalize on this growth opportunity. At the same time, employees are no longer just at the worksite, but mobile and often times have multiple jobs. Employees and employers need benefits solutions, not just product sets, through a variety of access points. Reaching the U.S. workforce where they are and how they want to be engaged is a key theme for the forward-looking approach to growth.

The majority of my presentation focuses on three things: key market opportunities; how our distribution approaches are strategically aligned to capitalize on these market opportunities; and how we are preparing for the next generation of growth opportunities.

Aflac U.S. Distribution: A Unique Model in the Industry

(New AP in millions)

Before I address the market opportunities for Aflac, I want to address something about our distribution composition which is unique in comparison to our competitors and helps frame how our growth rates differ from our competitors. Our distribution is unique in that our sales have historically been agent driven, unlike competitors who have had largely broker driven sales. The voluntary insurance market as a whole is growing at a rate of about six to eight percent, which is driven by broker growth between eight and nine percent. Aflac broker sales are growing at a higher rate than the industry and have more than doubled since 2009. At the end of 2017, broker sales represented more than one third of Aflac U.S. sales, which stands in contrast to our competitors where about 70% of market sales come from brokers and only 25-30% are from an agency approach.

When you combine valuable coverage and broad distribution with the powerful brand we have, it’s easy to see why we have a strong competitive advantage to capitalize on the market opportunity.

Aflac U.S. Profitable Growth Opportunities

To begin, there are about 5.8 million small businesses across the U.S., and they need our solutions. To attract and retain employees, small business owners need to differentiate themselves from competitors and provide additional incentives to their employees and their families to help mitigate rising healthcare costs. As Teresa stated previously, family coverage premiums have increased 55% since 2007 and deductibles have increased six times faster than workers’ earnings since 2010. With the strength of the U.S. economy, small business owners have an opportunity to protect their employees through the value of voluntary benefits without feeling a financial impact.

Aflac, which has a 19% market share according to Eastbridge Consulting Group’s 2017 Worksite/Voluntary report, is the leading provider to small businesses, yet at the same time, Aflac’s overall penetration in small businesses market is low, with less than 10% of small businesses offering voluntary insurance. We see this as a significant opportunity to meet the needs of small business owners and grow our market share even further. Capitalizing on this market opportunity requires broad distribution, and by recruiting 16,000 plus agents a year, we are well positioned to continue to be the leader in this space.

Turning to the brokerage market, Aflac has strong relationships and sales momentum with the national brokerage firms who typically serve larger clients. At the same time, there are more than 400,000 brokerage firms across the U.S., many of which are local and regional in nature, and they’re being asked by their clients to provide voluntary benefits for the first time. Many of these clients

Aflac U.S. Growth Strategy: Capitalizing on Market Opportunity Through Increasing Access and Penetration

Richard L. Williams Jr.Executive Vice President; Chief Distribution Officer

0

200

400

600

800

1,000

1,200

1,400

1,600

2009 2010 2011 2012 2013 2014 2015 2016 2017 1H17 1H18

Agent Broker Alliances

69%

29%

2%

66%67%69%74%74%77%80%

33%32%30%25%25%22%20%

1%1%1%1%

1%1%$ 2%

35%

63% 66%

32%

2%

$ in Millions 1,453 1,382 1,476 1,488 1,424 1,433 1,487 1,482 1,552 689 705% Δ YoY (6.4) (4.9) 6.8 0.8 (4.3) 0.7 3.7 (0.3) 4.7 2.1 2.3

86%

14%

SMALL

BUSINESS

• 5.8 million small businesses

and their 41 million

employees1

• Less than 10% penetration

with employers who offer

Aflac solutions

• Requires deep and broad

distribution reach

• Not price sensitive

BROKERAGE

EXISTING

ACCOUNTS

• 460,000+ existing

accounts

• Number of existing

accounts is flat over the

last 5 years

• Only 29% of accounts

convert to 2nd year

premium

GIG

ECONOMY

• By 2020, more than 40% of

the U.S. workforce will be

engaged in “gig” work4

• Contingent workers

represent the fastest

growing population

• Gig-economy workforce

currently doesn’t have easy

access to voluntary benefits

• 400,000+ brokerage firms

in U.S.2

• 57% of brokerage firms

actively sell voluntary

benefits3

• Brokerage firms are

local/regional in nature

• Accelerated growth rate for

broker influenced sales

1U.S. Census Bureau; Bureau of Labor Statistics, 20152IBISWorld: U.S. Industry Market Research Report: Insurance Brokers & Agencies in the U.S., July 20183Eastbridge Spotlight Report: Brokers and Voluntary Benefits – The Competition Intensifies, May 2018 4Intuit 2020 Report: Twenty Trends That Will Shape the Next Decade

46

served by these local/regional brokers are in the mid-market, which is key to our strategy. We are investing in tools and capabilities to assist our core agency distribution in supporting these brokers to accelerate our broker sales growth.

With Aflac being the leader in voluntary benefits for decades, we have built a very large client base. Aflac has more than 460,000 accounts, and this is a market of its own. As Teresa mentioned, Aflac has not fully leveraged what it has to offer to existing accounts, and we are always pushing to increase our participation rate. By better engaging and connecting with our existing clients, we are simply living out our brand promise in servicing them. The residual effect will be meaningful growth. For example, by increasing policyholder persistency by 2%, we estimate that this would grow our earned premium by $55 million to $60 million. So, you can see our rationale and our excitement for focusing on leveraging business with our existing clients.

Lastly, we have focused our growth strategy upon the contingent workforce, which makes up the “gig” economy, and I will use these two terms interchangeably. As the workplace and the workforce are changing rapidly, Aflac is changing with them. This contingent workforce, which is the fastest growing population of workers, does not have easy access to voluntary benefits. As a result, we are looking to different approaches such as digital distribution to meet this growing need.

Leveraging Distribution: Increasing Access and Penetration

Now that we have covered our four specific growth opportunities, let’s discuss how we are strategically aligned to capitalize on this opportunity: independent career agents; brokers; account management; and partnerships and digital.

In order to capture the small business market opportunity, we will continue to leverage our career sales team, which is comprised of our independent career agents. These agents are primarily responsible for increasing our national footprint through the recruiting and training of our field force to successfully offer Aflac’s value proposition to small businesses. There will always be a need for a field force to have these one-on-one selling opportunities with small businesses, and we are going to

continue to invest in this distribution approach and provide the field force with more tools and opportunities to sell our solutions and enjoy a long-term, fulfilling career with Aflac.

Our broker sales approach leverages our strong brand that appeals to both national broker partners and local and regional brokers alike. We have a seasoned team of talented broker sales professionals, who are Aflac employees leveraging their expertise and relationships to build our broker business and service our broker partners. In addition, we are tapping into the many talented members of our independent career sales agent team who also work with brokers. The combination of both distribution approaches allows Aflac to reach clients through brokers in both large and mid-market clients.

We are also aligned to service our existing customers and deliver on Aflac’s brand promise. The account management team is dedicated to supporting our existing accounts by leveraging our independent career agent field force and broker teams to offer an automated seamless service process for all account segments.

The digital distr ibution team is responsible for expanding Aflac’s distr ibution methodologies and reaching the contingent workforce in many ways that Aflac is not reaching them today. This team actively pursues partnership opportunities, technology-driven lead generation and other approaches that expand our distribution reach.

These are our four strategic approaches, but I want to point out one important feature of this alignment. Product solutions is the foundation for all of the methods listed above. This is because it spans all distribution approaches. So, let’s go into a little more detail of our product solutions.

Aflac U.S. Product Solutions: Addressing Evolving Customer Needs

Our initiatives for product are centered on providing product solutions to address the evolving customer needs. We are focused on delivering product enhancements to our current portfolio, developing new-to-the-market products and offering innovative services to differentiate Aflac in the market.

Account Management

Partnerships / Digital

Product Solutions

Agency Broker

PORTFOLIO INNOVATION

Deliver best-in-class Individual and Group

products through regular refresh

cycles

Deliver solutions for the growing

contingent workforce who do not have

access to traditional benefits at the

workplace

Expand our product portfolio by offering

new lines of business to enable growth within our U.S. distribution

channels

PORTFOLIO EXPANSION

CONTINGENTWORKFORCE SOLUTIONS

We will continue to drive first-to-market concepts and innovation via:• Benefit designs that reward positive outcomes and healthy

behaviors• Flexible products that adapt to consumers’ life stage and need• Delivering value on day 1 to the customer through value added

services• Responsive product packaging that helps to cover risk in new ways• Supporting business model evolution to address consumer

experiences and demands, demographic shifts in the workforce, emerging technology, and ever-changing market boundaries

47

It is important for us to continue leading the market by innovating product solutions through periodic product enhancements. Further, as we continually listen to clients and brokers, we glean ways to strategically broaden our portfolio by expanding to products that meet a key need. Over the past year, we have added true group life and disability insurance as a vital need of our clients and brokers. Lastly, we are actively researching new-to-market products to anticipate the needs of the changing workforce. This approach allows Aflac to continue being the number one distributor of benefits solutions supporting the U.S. workforce by being the first provider to know what next generation solutions customers need and deliver on that understanding of the market.

In addit ion to new-to-the-market solut ions and enhancements, we are expanding our product solutions to include more innovative services such as value added services, because it provides customers with day-one, tangible value, even if the Aflac customer never files a claim. These services are a great complement to our core value proposition, and when value added services are offered in our accounts, we see an increase in employee participation of about 10% within our core product offerings. This increase in employee participation is driven by the change in workforce versus worksite solutions that Teresa and I have mentioned: Employee and employer needs are changing rapidly and offering value added services within our products allows Aflac to solve for greater needs, and consumers recognize this.

Af lac wi l l continue to lead by researching and understanding market trends to find innovative ways to provide the valued protection our customers need.

Digital Distribution: Access for the U.S. Contingent Workforce

As I shared previously, the contingent workforce is the fastest growing workforce segment and the number of employees without access to voluntary benefits will only increase. Clearly, this growing part of the workforce needs solutions and ways to access that we do not broadly provide. As a result, we have created Aflac’s digital distribution team to assess product and delivery solutions to meet this growing need. This creates an opportunity for growth creation as well as growth optimization which will lead to an incremental sales lift.

Our approach to capitalizing on the market opportunity will involve building, buying, and partnering to get the different components necessary to succeed. The key components include three things: customer-centric products, processes, and technology; technology to increase consumer access points; and customer analytics.

We will certainly take a measured approach to pilot and test distribution approaches and solutions for 18-24 months to ensure a full understanding of the market and profitability before accelerating any such approaches.

Successful execution of this strategy will allow us to engage customers through different mediums and to connect with or access customers where they want to be. This increased access to an evolving workforce will allow for acceleration of incremental sales growth for Aflac U.S.

In closing, I reminded everyone in the beginning that our vision is to be the number one distributor of benefits solutions supporting the U.S. workforce. We are very confident and believe the strategy outlined in this presentation aligns well with the market opportunity and Aflac’s vision to grow profitably.

Implications

• Stand up a new, cloud-based platform for deploying end-to-end direct products

• Establish a stand-alone direct-to-consumer team• Source an end-to-end direct policy administration

platform• Engage with consumer-directed agencies

• Create consumer centric products, processes and technology

• Improve and develop technology to create more consumer access points

• Improve customer targeting, analytics and lifecycle journey

• Distribute direct products through current producers, partnerships and e-commerce

Growth Strategy

Next Steps

• Greater access to an evolving workforce (i.e., contingent workers)

• Acceleration of incremental sales

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Aflac U.S. Payroll Product Line(as of 09/01/18)

Benefit Amounts Monthly Premium Rates (Payroll) Individual/FamilyAccident Advantage* $12.87 - $69.94Accident Treatment Benefit $50 - $200Accident hospitalization $500 - $2,500/period of hospital confinement/yearAccidental death $5,000 - $200,000 ($5,000 - $30,000 for dependent children)Accident specific-sum injuries $20 - $13,000Accident hospital confinement $150 - $300/dayRehabilitation unit $75 - $200/day (up to 30 days/period of hospital confinement / up to a calendar year maximum of 60 days)Intensive care unit confinement $300 - $500/day (up to 15 days per covered accident)Wellness $60/calendar yearMajor diagnostic exams $100 - $250/yearAccident follow-up treatment $25 - $40/day (maximum of 6 treatments per accident)Therapy $25 - $40/treatment/day (up to 10 treatments per accident)Appliances $25 to $350 as listedProsthesis $375 - $1,000/accidentBlood/plasma/platelets $100 - $300/accidentAmbulance $120 - $250 ground / $800 - $1,875 airTransportation $200 - $700 round trip (50+ miles / up to 3 times per year per covered person)Family lodging $75 - $150/night (50+ miles / one motel/hotel room / up to 30 days per accident)Accidental-dismemberment $450 - $50,000 ($200 - $15,000 for dependent children) (depending upon loss)Prosthesis repair or replacement $375 - $1,000/person/lifetimeOrganized sporting activity Additional 25% of benefits payable, limited to $1,000/policy/yearHome modification $1,000 - $4,000/accident/personFamily support $20/day up to 30 days/accidentFour levels available that determine the benefit amount.

Lump Sum Critical Illness* $4.42 - $127.40Covers: heart attack, stroke, end-stage renal failure, coma, paralysis, major human organ transplantMajor critical illness event $10,000 - $30,000 (payable once per covered person, per lifetime)Subsequent critical illness event $5,000Coronary artery bypass graft surgery $3,000 (payable once per covered person, per lifetime)Sudden cardiac arrest $10,000 (payable once per covered person, per lifetime)HSA (Health Savings Account) option availableBenefits are paid for a covered spouse and dependent children at 50% of the primary insured’s benefit amount. All benefits reduce by 50% for losses incurred on or after a covered person’s 75th birthday.

Cancer Protection Assurance $16.59 - $80.86Wellness benefit $25 - $100/yearProphylatic Surgery (Due to positive genetic test result) $125 - $350Initial diagnosis benefit $1,000 - $6,000 ($2,000 - $12,000 for dependent children)Additional Opinion Benefit $150 - $400/once per covered person/lifetimeHospital confinement 30 days or less $100 - $300/($125 - $375 for dependent children)Hospital Confinement 31 days or more $200 - $600 ($250 - $750 child)Nonsurgical Treatment Benefit (chemotherapy, immunotherapy, Radiation, experimental) $100 - $400 self-administered/month; $600 - $1,500 physician administered/monthHormonal oral chemotherapy $15 - $40/month, self-administeredTopical chemotherapy $100 - $200/monthAnti-nausea $50 - $150/monthStem cell transplantation benefit $3,500 - $10,000/covered person; $50 - $150 donorNursing services $50 -$150/daySurgery and anesthesia $50 - $5,000 anesthesia is 25% of surgery amountOutpatient hospital surgical room $100 - $300Skin cancer surgery $20 - $600Surgical prosthesis $1,000 - $3,000Prophylactic Surgery (w/correlating internal cancer diagnosis) $125 - $350Prosthesis nonsurgical $90 - $250Reconstructive surgery $50 - $3,000 anesthesia is 25% of surgery amountBlood and plasma $50 - $75/dayAmbulance $250 ground, $2,000 airTransportation $0.35 - $0.50/mileLodging $50 - $80/dayBone marrow transplant $3,500 - $10,000, donor $500 - $1,000Extended-care facility $75 - $150/day, 30 days per calendar yearHospice $1,000 day one, $50/day thereafter max, $12,000 per personHome health care $50 - $150/dayEgg harvesting and storage $500 - $1,500/oocytes extracted; $100 - $200 storageAnnual Care Benefit $100 - $300 /lifetime maximum 5 yearsWaiver of Premium Benefit

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Lump Sum Cancer $7.54 - $164.58Internal cancer $10,000 - $30,000 (same for children)Carcinoma in situ $2,000Cancer related death $5,000Benefits above are payable once per person, per lifetime

Specified Health Event $9.36 - $106.34Covers: heart attack, stroke, coronary artery bypass graft surgery, coma, paralysis, major third-degree burns, end-stage renal failure, major human organ transplant, persistent vegetative state, sudden cardiac arrestFirst occurrence $7,500 ($10,000 children) (payable once per person, per lifetime)Subsequent specified health event $3,500Hospital confinement benefit $300/dayHospital intensive care unit benefit $800 per day 1-7 days (Option 2 & Option 3) $1,300 per day 8-15 days (Option 2 & Option 3)Step-down intensive care unit benefit $500 per day 1-15 days (Option 2 & Option 3)Continuing care $125/dayAmbulance $250 ground, $2,000 airLodging $75/dayTransportation $.50/mile up to $1,500 per occurrenceSubsequent tier one specified heart surgery $1,000 (Option 3)Specified heart surgery tier one $4,000 (Option 3) (payable once per person, per lifetime) Heart valve surgery Surgical treatment of abdominal aortic aneurysmSpecified heart surgery tier two $2,000 (Option 3) (payable once per person, per lifetime) Coronary angioplasty Transmyocardial revascularization (TMR) Atherectomy Coronary stent implantation Cardiac catheterization Automatic implantable cardioverter defibrillator (AICD) placement Pacemaker placement

Hospital Choice $16.77 - $86.97Hospital confinement $500 - $2,000 once/confinement per covered personRehabilitation $100 15 days/confinement 30 days/yearHospital emergency room $100 2/year/policyHospital short-stay $100 2/year/policyPhysician visit $25/visit (3 visits/year individual or 6 visits/year family)Medical diagnostic imaging $150/exam/person per yearAmbulance $200 ground/$2,000 airLaboratory Test and X-Ray $35 2/year/covered personInitial assistance $100/year/riderSurgical $50 - $1,000 (based on surgical schedule)Invasive diagnostic exams $100/person/dayDaily hospital confinement $100/dayHospital intensive care unit confinement $500/daySecond Surgical Opinion $50/year/covered personHealth Savings Accounts (HSAs) compatible plan design is also availableCertain benefits available through rider options

Dental*Dental wellness (preventive) $25 - $75/year $24.05 - Individual (Essentials)Scheduled benefits $10 - $1,110 $164.32 - Two-parent family (Level 3)Annual maximum building benefit Up to $500 per covered personAnnual maximums $1,200, $1,400, $1,600, $1,800

Vision $13.90 - $49.90Vision correction materials $80 - $270Refractive error correction $130 - $480Eye exam $45Permanent visual impairment Up to $20,000Specific eye diseases/disorders $1,000Eye surgery $50 - $1,500

Short-Term Disability* $5.20 - $561.60Disability benefits for sickness and off-the-job injury $500 - $6,000Elimination periods 0-180 days. Benefit periods 3-24 monthsRange is for the minimum of five units of coverage and a maximum of 60 units.

Aflac Value Rider $10.92Aflac will pay $1,000 less any claims paidAt the end of every consecutive 5 year period Up to $1,000 every 5 yearsAvailable only with purchase of disability product

Aflac U.S. Payroll Product Line (con’t)(as of 09/01/18)

Benefit Amounts Monthly Premium Rates (Payroll) Individual/Family

50

Life* $6.96 - $58.00Whole-life face amounts $10,000 - $500,00010-, 20-, and 30-year term face amounts $20,000 - $500,000Accelerated death benefitOptional waiver of premium riderOptional accidental death benefit riderSpouse and dependent coverage availableSimplified-issue, Guaranteed-issue (proposed insured only), rates guaranteed10-year term-based policy only. Rates based on: age 25 - $20,000 and $500,000 face amounts; male/non-tobacco

Specified Event Rider (Aflac Plus) $3.12 - $24.70(Can be added to Accident, Hospital, Short-Term Disability or Cancer Insurance Products. Availability varies by state.)Tier 1 covers: heart attack, stroke, Type 1 diabetes, advanced Alzheimer’s Disease, and advanced Parkinson’s Disease, coma, paralysis, traumatic brain injury, amyotrophic lateral sclerosis (ALS), loss of independence, sustained multiple sclerosis, permanent loss of sight, hearing or speech, sudden cardiac arrest $5,000 (payable once per covered person, per lifetime)Subsequent Tier 1 critical illness benefit $2,500Tier 2 covers: critical illness benefit: encephalitis, bacterial meningitis, lyme disease, sickle cell anemia, cerebral palsy, necrotizing fasciitis osteomyelitis, systemic lupus, cystic fibrosis $1,250Coronary artery bypass graft surgery $1,250 (payable once per covered person, per lifetime)

BenExtend** $14.58 - $61.75Hospital admission benefit $250 - $750Hospital confinement benefit $50 - $300/dayInitial treatment $75 - $150Ambulance $200 - $300Major diagnostic testing $200 - $400Lacerations $75 - $100Appliances $10 - $300Fractures Up to $2,500Major critical illness event $2,000 - $5,000*Also available on a group platform. Benefits of group and individual products may vary.**Only available on a group platform.

Aflac U.S. Payroll Product Line (con’t)(as of 09/01/18)

Benefit Amounts Monthly Premium Rates (Payroll) Individual/Family

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Section IVOther Information

AppendixDefinitions of Non-U.S. GAAP Financial Measures

• Aflac defines adjusted earnings (a non-U.S. GAAP financial measure) as the profits derived from operations. Adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management’s control. Adjusted revenues are U.S. GAAP total revenues excluding realized investment gains and losses, except for amortized hedge costs related to foreign currency denominated investments. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect Aflac’s underlying business performance.

• Amortized hedge costs represent costs incurred in using foreign currency forward contracts to hedge the foreign exchange risk of a portion of the U.S. dollar-denominated assets in the Company’s Japan segment investment portfolio. These amortized hedge costs are derived from the difference between the foreign currency spot rate at time of trade inception and the contractual foreign currency forward rate, recognized on a straight line basis over the term of the hedge. There is no comparable U.S. GAAP financial measure for amortized hedge costs.

52

Aflac’s Historical Highlights in the United States

1955 • American Family Life Insurance Company of Columbus founded and incorporated

1956 • Granted a license to sell insurance

• Began selling life, accident and health insurance door-to-door in Georgia and Alabama

1958 • Pioneered introduction of cancer insurance

1964 • Began using “cluster selling” to groups of employees at their places of work

• American Family Life Insurance Company of Columbus became American Family Life Assurance Company of Columbus

1970 • Expanded from 11 to 42 states

1973 • American Family Corporation formed for the purpose of holding all of the capital stock of American Family Life Assurance Company of Columbus

1974 • American Family Corporation (AFL) listed on the New York Stock Exchange

1987 • Aflac Incorporated (AFL) listed on the Tokyo Stock Exchange

1990 • Added hospital indemnity to product line

1991 • Changed name of the corporation to Aflac Incorporated reflecting the insurance company’s usage of the acronym “Aflac”

• Launched its first national advertising campaign to increase Aflac’s name recognition

1995 • Focused its national philanthropic efforts on the treatment and cure of childhood cancer, pledging $3 million to the Aflac Cancer Center at Egleston Children’s Hospital. Since that time, Aflac, the company, sales associates, and employees have contributed over $127 million to what is now known as the Aflac Cancer and Blood Disorders Center of Children’s Healthcare of Atlanta

1996 • Introduced SmartApp® technology, an online enrollment system

1999 • Introduced personal short-term disability, payroll life, group short-term disability and specific event critical illness products

2000 • Launched the Aflac Duck campaign

2008 • Became the first publicly owned Company in the United States to give shareholders a “Say on Pay” advisory vote on compensation

2009 • Acquired Continental American Insurance Company (CAIC), now branded as Aflac Group Insurance, as a subsidiary of Aflac Incorporated

53

Aflac’s Historical Highlights in Japan

1974 • Aflac received license to sell life insurance in Japan; became second non-Japanese life insurance company to gain direct access to Japan’s insurance market; pioneered sales of cancer insurance in Japan

1982 • First competitor entered cancer insurance market

1984 • Japanese government introduced 10% copayment for all covered medical expenses for salaried workers under age 70

1989 • Japanese government introduced 3% consumption tax

1996 • Non-life insurance companies allowed to create subsidiaries for selling life insurance products

• Life insurance companies allowed to create subsidiaries for selling non-life insurance products

1997 • Japanese government raised copayment for all covered medical expenses for salaried workers under age 70 from 10% to 20%

2000 • Aflac Japan entered into strategic marketing alliance with Dai-ichi Mutual Life Insurance Company to sell Aflac’s cancer insurance and for Aflac to sell Dai-ichi life insurance

2001 • Aflac Japan established first Aflac Parents House in Tokyo, where pediatric patients and their families can stay together at a “home away from home” while receiving treatment for cancer or other serious illness

• Japanese government deregulated Japan’s insurance market; large Japanese domestic insurance companies allowed to sell third sector insurance products

2002 • Aflac Japan introduced stand-alone, whole-life medical product EVER

2003 • Aflac introduced Aflac Duck in Japan

• Japanese government raised copayment for all covered medical expenses for salaried workers under age 70 from 20% to 30%

2004 • Aflac Japan opened second Parents House in Tokyo

2006 • Aflac Japan introduced WAYS, a unique hybrid whole-life insurance product

2007 • Japanese government liberalized bank channel sales; banks permitted to sell third sector insurance products to their customers

2008 • Banks began selling Aflac’s WAYS product

• Aflac Japan established partnership with Japan Post Co., Ltd. to sell Aflac cancer insurance; sales began through 300 postal outlets

2009 • Aflac’s cancer insurance products available through 1,000 postal outlets

2010 • Aflac Japan opened third Parents House, located in Osaka

2013 • Aflac Japan signed new alliance agreement with Japan Post Holdings to expand number of outlets selling cancer insurance eventually through 20,000 postal outlets

• Aflac Japan formed business partnership with Daido Life Insurance Company to sell Aflac’s cancer insurance products

• Aflac’s cancer insurance products available through 1,500 postal outlets

2014 • Aflac’s cancer insurance products available through 10,000 postal outlets

2015 • Aflac’s cancer insurance products available through 20,000 postal outlets

2018 • Aflac’s Japan branch successfully converted to a subsidiary

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Daniel P. AmosChairman; CEO, Aflac; Aflac Incorporated

Dan Amos, 67, joined Aflac as a sales associate while in his teens. He served as state manager of Aflac’s Alabama/

West Florida Territory for 10 years. Under his leadership, his sales territory was the number-one-producing area in 1981 and 1982. He was elected president of Aflac in 1983 and chief operating officer of Aflac in 1987. He became chief executive officer in 1990 and was named chairman in 2001. Dan was named by the Harvard Business Review as one of the 100 Best Performing CEOs in the World in 2015, 2016 and 2017. He is a member of the board of trustees of the House of Mercy of Columbus. He is a past recipient of the Dr. Martin Luther King Jr. Unity Award and the Anti-Defamation League’s Torch of Liberty Award, and he has been named by CNN as CEO of the Week. He has appeared five times on Institutional Investor magazine’s lists of America’s Best CEOs for the insurance category. Under Dan’s leadership, Aflac has been named to the Ethisphere Institute’s annual list of World’s Most Ethical Companies for 12 consecutive years. Dan is a former member of the board of trustees of Children’s Healthcare of Atlanta and former chairman of the boards of The Japan-America Society of Georgia and the University of Georgia Foundation. Dan graduated from the University of Georgia with a bachelor’s degree in insurance and risk management.

Frederick J. CrawfordExecutive Vice President; Chief Financial Officer, Aflac Incorporated

Fred Crawford, 55, joined Aflac in June 2015 as chief financial officer of Aflac Incorporated, responsible for overseeing

the financial management of company operations. He brings more than two decades of financial and leadership experience to Aflac. Most recently, he served as executive vice president and chief financial officer of CNO Financial Group since 2012. Prior to that, he spent more than a decade at the Lincoln Financial Group serving in roles of progressive responsibility, including as executive vice president and chief financial officer as well as leading Corporate Development and Investments. Before joining Lincoln Financial Group, he also held leadership positions at Bank One Corporation. Fred received a Bachelor of Arts from Indiana State University and a Master of Business Administration from the University of Iowa, where he currently serves on the Tippie College of Business Advisory Board.

Charles D. Lake IIPresident, Aflac International; Chairman and Representative Director, Aflac Life Insurance Japan

Char l es Lake , 56 , j o i ned A f l ac International in February 1999 and Aflac

Japan in June 1999. He became Aflac Japan deputy president in 2001, president in 2003, vice chairman in 2005, and chairman in 2008. In 2014, he also assumed the position of president, Aflac International. Before joining Aflac, Charles practiced law in Washington, D.C. and served as director of Japan affairs and special counsel at the office of the U.S. Trade Representative in the Executive Office of the President. He currently serves as an independent outside director on the boards of Japan Post Holdings Co. Ltd. and Tokyo Electron Ltd. Charles served ten years as an outside director on the board of the Tokyo Stock Exchange and is president emeritus of the American Chamber of Commerce in Japan (ACCJ). He also serves as a director on the board of the Peterson Institute for International Economics and the U.S.-Japan Business Council. Charles received a bachelor’s degree in Asian studies and political science from the University of Hawaii at Manoa and a Juris Doctor from the George Washington University School of Law.

Masatoshi KoidePresident and Representative Director, Aflac Life Insurance Japan

Masatoshi Koide, 58, originally joined Aflac in November 1998 and stayed with Aflac until March 2006. He worked

for Nikko Asset Management before he joined Aflac again in December 2008 as vice president. He was promoted to senior vice president in January 2012 and to first senior vice president in July 2013. In January 2015, he was promoted to executive vice president, Planning, Government Affairs and Research, Corporate Communications, Legal, Risk Management, Investment, Compliance, Customer Services, and General Affairs. In July 2016, he was promoted to deputy president, Aflac Japan. He assumed the role of president and chief operating officer of Aflac Japan in July 2017. He graduated from Tokyo University in 1984 and from Cornell Law School in 1989. He is a member of the New York State Bar.

2018 Aflac Executive Speakers

55

Teresa L. White President, Aflac U.S.

Teresa White, 51, joined Aflac in 1998 as second vice president, Client Services; was promoted to vice president of Client Services in 2000; to senior vice

president, director of Sales Support and Administration in October 2004; to deputy chief administrative officer in March 2007; and to executive vice president, Internal Operations; chief administrative officer in March 2008. In October 2012, she assumed the additional responsibility of the IT Division, and in July 2013 she was also named chief operating officer of Aflac Columbus. In September 2014, Teresa was named president of Aflac U.S., where she leads both the Aflac Group and Aflac Columbus operations. In this role, she is responsible for creating the vision for Aflac U.S. and driving execution of the long-term strategy while strengthening the growth and value proposition for Aflac U.S. Teresa earned a bachelor’s degree in business administration from the University of Texas at Arlington and a master’s degree in management from Troy State University. She is a Fellow of the Life Management Institute (FLMI) and an alumna of Leadership Columbus, and she also serves on the board of directors of America’s Health Insurance Plans (AHIP).

Eric M. KirschExecutive Vice President; Global Chief Investment Officer President, Aflac Global Investments

Eric Kirsch, 58, joined Aflac in November 2011 as first senior vice president; global

chief investment officer and was promoted to executive vice president in July 2012. He was named president of Aflac Global Investments, the asset management subsidiary of Aflac Incorporated, in January 2018 and is responsible for overseeing the company’s investment efforts, including Aflac’s investment portfolio and its investment teams based in New York and Tokyo. Prior to joining Aflac, he served as managing director and global head of insurance asset management at Goldman Sachs Asset Management. Prior to that, he spent 27 combined years at Deutsche Asset Management (DeAM) and Bankers Trust Company, most recently serving as managing director and global head of insurance asset management. Prior to this, he served as managing director and head of North America Fixed Income. He also previously served as vice president and stable value portfolio manager at Bankers Trust Company. Eric received a Bachelor of Business Administration from Baruch College, and a Master of Business Administration from Pace University. He earned his CFA designation in 1990. Eric also serves as a trustee of the Jersey Shore University Medical Center Foundation and for the Baruch College Fund.

Richard L. Williams Jr.Executive Vice President; Chief Distribution Officer

Rich Williams, 46, joined Aflac in 2017 as executive vice president and chief distr ibution off icer, responsible for

leading the fully aligned distribution team of independent career agents and brokerage professionals. He focuses on the alignment and strategic growth of current distributions, including product development, enrollment and account management for Aflac U.S., as well as further distribution and expansion. Prior to joining Aflac, he was senior vice president and general manager, Stop Loss, at Unum, U.S. Prior to that, he was senior vice president, Growth Markets at Colonial Life and Accident Insurance Company. He also held various positions of increasing responsibility with Strategic Resource Company (an Aetna company). Rich began his career as an actuary in 1998 with William M. Mercer Inc. He earned a Bachelor of Science from Wofford College and a Master of Arts from Wake Forest University. He also earned a Doctor of Philosophy from the University of South Carolina. He is also a Fellow of the Society of Actuaries and a member of the American Academy of Actuaries.

Koji AriyoshiDirector, Executive Vice President; Director of Sales and Marketing, Aflac Life Insurance Japan

Koji Ariyoshi, 65, joined Aflac as senior vice president, responsible for sales

planning in October 2008. From January through March 2009, he was directly in charge of the Retail Marketing, Alliance Management and Hojinkai Promotion Departments. From April through December 2009, he oversaw all the marketing and sales departments as deputy director of Sales and Marketing. He was promoted to first senior vice president and director of Sales and Marketing in January 2010. He was promoted to his current role in January 2012. Before joining Aflac, he worked for Alico Japan as vice president and AXA Life Insurance as senior vice president. He graduated from Ritsumeikan University in 1978.

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Max K. BrodénSenior Vice President; Treasurer; Head of Corporate Development

Max Brodén, 40, jo ined Af lac as senior vice president and treasurer in Apri l 2017. In his current role, he

is responsible for leading Aflac’s Corporate Finance, Treasury, and Investor and Rating Agency Relations departments, in addition to oversight of enterprise-wide corporate development activities and initiatives. Max oversees the company’s efforts to engage investors and rating agencies on a range of issues including the company’s financial performance and corporate governance activities, as well as strategic partnerships and planning. Prior to joining Aflac, he served as senior portfolio manager for Norges Bank, managing an equity portfolio of diversified global financial and insurance stocks. He also worked for several years at DnB Nor Asset Management in Stockholm and New York and Skandia Asset Management in Stockholm. Max holds a Master of Science in both accounting and finance from Stockholm School of Economics. He is also a CFA charterholder.

J. Todd DanielsDirector; Executive Vice President; Principal Financial Officer, Aflac Life Insurance Japan

Todd Daniels, 47, is responsible for overseeing the financial, actuarial and

risk management practices of Aflac Life Insurance Japan. Todd joined Aflac in 2002 as an actuarial assistant and held positions of increasing responsibility within the Actuarial Department, including second vice president; associate actuary. He was promoted to vice president, Financial Planning and Analysis in 2011, where he assumed responsibility for Aflac’s financial planning and corporate modeling. In 2012, he was promoted to senior vice president; deputy corporate actuary. He assumed the responsibilities of global chief risk officer in January 2014 and the additional role of chief actuary in December 2015. In May 2016, he was promoted to executive vice president; global chief risk officer and chief actuary. Prior to joining Aflac, Todd served as an actuarial associate for Liberty National Life. He holds a bachelor’s degree in applied mathematics from Auburn University. He is a fellow of the Society of Actuaries and member of the American Academy of Actuaries.

Virgil R. Miller Executive Vice President; Chief Operating Officer, Aflac U.S. President, Aflac Group

Virgil Miller, 50, joined Aflac in 2004 in the Policy Service Department after

working in leadership in the property and casualty industry. He was promoted to positions of increasing responsibility including second vice president of Client Services, Policy Service and the Customer Service Center and vice president of Client Services, Customer Assurance and Aflac’s Transformation Office. In 2015, Virgil was promoted to senior vice president of Internal Operations and later named chief administrative officer, head of Aflac Group. He was promoted to his current position in January 2018 and is responsible for the strategic leadership and overall direction of operations at Aflac Group as well as operations for Aflac U.S. Virgil served as a U.S. Marine and is a veteran of Operation Desert Storm. He holds a bachelor’s degree in accounting from Georgia College and a master’s degree in business management from Wesleyan College. He serves on the board of trustees for Claflin University, the Palmetto Business Forum, the Palmetto Health Foundation Board of Trustees and the Columbia Urban League. He was recently selected to serve as the co-chair of the 2019 SEUS-Japan Association.

2018 Aflac Executive Panelists

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John A. MoorefieldDirector, Executive Vice President and Chief Transformation Officer; IT, Policy Services, Information Security, Aflac Life Insurance Japan

John Moorefield, 56, joined Aflac in 2005 and has since served in several key positions, including chief information officer of Aflac Japan. John also served as first senior vice president, strategic management, for Aflac International, where he oversaw various strategic initiatives. He was promoted to his current role in January 2017 to oversee Aflac’s Policy Services, IT, Information Security and transformation initiatives in Japan. Prior to joining Aflac, John served as a principal in ApproxiCom LLC and held executive leadership positions at Cap Gemini Ernst and Young LLP, Fidelity Investments and NationsBank. He earned a bachelor’s and master’s degree from North Carolina State University.

June P. Howard, CPA, CFA, CGMASenior Vice President, Financial Services; Chief Accounting Officer

June Howard, 52, joined Aflac in June 2009 as vice president and assumed

the role of senior vice president and chief accounting officer in November 2010. June is responsible for shared services, investment accounting, corporate tax, accounting policy and investment advisory. Before joining Aflac, June held financial reporting positions of increasing responsibility at ING and The Hartford. Additionally, she worked as an auditor with Ernst & Young for nearly 10 years. June graduated from the University of Alabama in Huntsville with a bachelor’s degree in business administration. She is a member of the American Institute of Certified Public Accountants, the Alabama Society of Certified Public Accountants, the CFA Institute and the Atlanta Society of Financial Analysts.

Albert A. RiggieriSenior Vice President; Global Chief Risk Officer and Chief Actuary

Al Riggieri, 62, joined Aflac in December 2016 as sen io r v i ce p res iden t , corporate actuary. In his current role,

he is responsible for global enterprise risk management and corporate actuarial functions, as well as leading the development and implementation of global risk programs and strategic actuarial init iatives. Prior to joining Aflac, he held various actuarial positions of increasing responsibility over his 36-year career at Unum Group. Most recently, he served as Group Chief Actuary with a leadership role in the financial management of the company, where he held broad responsibilities for actuarial matters pertaining to pricing, valuation, reinsurance, investments, and capital management. Over his career he has been involved with and made various contributions to industry actuarial committees, and has presided over the development of an industry-leading actuarial development program at Unum. Al received his Bachelor of Science degree in mathematics from Worcester Polytechnic Institute and served as an adjunct professor there teaching actuarial exam preparation courses. He is a Fellow of the Society of Actuaries and member of the American Academy of Actuaries.

Yoko KijimaDirector, First Senior Vice President; Chief Administrative Officer; Diversity Promotion, Aflac Life Insurance Japan

Yoko Kijima, 55, joined Aflac in 1986, engaging in insurance premium billing

and collecting operations in the Premium Accounting Department. In 1995, she was involved in setting up the call center and later was engaged in companywide customer satisfaction promotion operations before being promoted to manager in 2001. She was promoted to general manager of the Administration Planning Department in 2006 and was appointed vice president, serving as general manager of the Policy Administration Planning Department in January 2012. She was engaged in insurance policy administration operations from the time she joined Aflac until the end of 2014. In January 2015, she was appointed compliance officer with responsibility for the Corporate Division. She was promoted to senior vice president in January 2017 and to first senior vice president in July 2018. She graduated from Jissen Women’s University in 1986.

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David A. YoungVice President, Investor and Rating Agency Relations

David Young, 44, joined Aflac in 2005 as an investment consultant in the Investments Department where he

assumed primary responsibility for covering banks, financial companies and insurers. David was promoted to senior investment consultant and second vice president in 2009 and 2012, respectively. David joined Investor and Rating Agency Relations in September 2013 and was promoted to vice president in January 2016. David is responsible for investor relations, including the engagement of investors on matters related to the company’s performance and corporate governance. Pr ior to Af lac, David cult ivated his investment experience at Morgan Stanley and an institutional asset management subsidiary of SunTrust Bank. He earned a Bachelor of Arts degree in political science from Sewanee – The University of the South and a Master of Business Administration with a concentration in finance from Georgia State University – J. Mack Robinson College of Business.

Delia H. Moore Director, Investor and Rating Agency Relations

Delia Moore, 48, joined Aflac in 2003 in the Policy Service department and was promoted to manager of Investor

Relations in 2005, where she was primarily responsible for managing communications and relationships with retail investors. In November 2011, she was promoted to director of Investor and Rating Agency Relations. In her current role, Delia manages and oversees global communications and relationships with rating agencies to ensure they remain fully informed and up to date on the company’s activities, financial performance and strategies for growth. She also advises senior and executive management on the possible implications strategic decisions and company developments may have on corporate ratings, in addition to keeping management informed of the potential impact the latest ratings criteria and developments may have on the company’s overall ratings. Prior to joining Aflac, Delia held various financial management and leadership positions of increasing responsibility at major Fortune 500 companies including AT&T and Citibank. Delia graduated from Columbus State University with a Bachelor of Business Administration in accounting. Additionally, she holds a master’s degree in accounting from Auburn University. Delia serves on the board of the Aflac Childhood Cancer Foundation.

Hideto YamamotoSenior Vice President and Chief Investment Officer, Aflac Life Insurance Japan; President and Representative Director, Aflac Asset Management Japan

Hideto Yamamoto, 55, joined Aflac in 2015 as senior vice president, chief investment officer of Aflac Japan, the predecessor of Aflac Life Insurance Japan, where he chairs the Japan Investment Committee and is responsible for leading and managing a team of investment professionals, while having oversight responsibility for ensuring execution of globally approved investment strategy of the Aflac Life Insurance Japan portfolio. He is also a member of the Global Investment Committee and the Global Risk Committee. In 2018, he was named President and Representative Director of Aflac Asset Management Japan. Prior to joining Aflac, he served in roles of increasing responsibility at DIAM International, most recently serving as chief executive officer and chief investment officer in the company’s London office. Prior to joining DIAM, he spent 15 years serving in roles of progressive responsibility at the Industrial Bank of Japan, which included portfolio management and economic research. He received his Bachelor of Arts in economics from Keio University in Tokyo.

2018 Aflac Investor and Rating Agency Relations Management

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Daniel A. Bellware, CPA, CGMA Senior Manager, Investor and Rating Agency Relations

Daniel Bellware, 56, joined Aflac in 1998, and held various roles in Financial

Reporting and Financial Compliance prior to joining Investor and Rating Agency Relations in July 2013. As senior manager of Investor and Rating Agency Relations, Daniel partners with various divisions to ensure that an overall view of corporate activity is coordinated, analyzed and integrated into the Investor Relations communications and strategy. In addition, he is responsible for overseeing retail investor relations activities for Aflac, including educating the individual, broker and financial advisor investment community on Aflac’s financial performance. Prior to joining Aflac, Daniel held management positions in several smaller life insurance companies. He holds a bachelor’s degree in accountancy and a master’s degree in business administration from the University of Central Florida. Daniel is also a member of the American Institute of Certified Public Accountants.

Yoshihiro Aoyama Manager, Investor Relations Support Office, Aflac Life Insurance Japan

Yoshihiro Aoyama, 55, joined Aflac Japan as head of the Investor Relations Support Office in November 2017. Prior

to joining Aflac, he worked at Japan Shareholder Service as chief consultant, specializing in investor relations for Japanese companies. Before that, he worked as an investor relations representative for a total of 13 years at Jupiter Telecommunications, the leading multiple system operator in Japan, where he served as general manager of its Investor Relations Department, and at Yamanouchi Pharmaceutical, currently Astellas Pharma. He received a bachelor of economics degree from Kwansei Gakuin University.

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Institutional investors with questions about the company may contact:

I N T H E U N I T E D S TAT E S :

David A. Young Vice President

Investor and Rating Agency Relations

tel: 706.596.3264 or 800.235.2667

dyoung@aflac.com

I N J A PA N:

Aflac Japan Shinjuku Mitsui Building

2-1-1, Nishishinjuku,

Shinjuku-ku, Tokyo

163-0456, Japan

tel: 011.81.3.3344.0481

Rating agencies with questions about the company may contact:

Delia H. Moore Director

Investor and Rating Agency Relations

tel: 706.596.3264 or 800.235.2667

dmoore3@aflac.com

Aflac Incorporated

1932 Wynnton Road

Columbus, Georgia 31999

© 2018 Aflac Incorporated. All rights reserved