Aflac
30 named things its latest annual report says its results depend on, each in the company's own words. 11 of them are also named by other companies we've read.
Partners and platforms
Japan Post Group
depends on · approximately 20,000 postal outletsnamed as a riskIn Japan, the Company's sales results are dependent upon its relationship with sales associates and other distribution partners, such as Japan Post Group, which in recent periods has accounted for a significant portion of Aflac Japan's total sales.Risk factors (Item 1A)
Japan banks (bank channel)
depends on · 3.3% of Aflac Japan's new annualized premium sales in 2025named as a riskSales through these banks represented 3.3% of Aflac Japan's new annualized premium sales in 2025.Risk factors (Item 1A)
Dai-ichi Life
depends on · approximately 37,000 Dai-ichi Life representativesAflac Japan's alliance with Dai-ichi Life was launched in 2001, and approximately 37,000 Dai-ichi Life representatives offer Aflac Japan's cancer products.Business (Item 1)
Daido Life
depends on · approximately 3,700 Daido Life representativesAflac Japan's alliance with Daido Life was launched in 2013, and approximately 3,700 Daido Life representatives offer Aflac Japan's cancer products to mainly small and medium-sized business owners, executives and employees.Business (Item 1)
Other companies
Japan Government Bonds (JGBs)
concentrated in · $32,618 million; 40.08% of total fixed maturity securitiesnamed as a riskFurther, because of the concentration of the Company's business in Japan and its need for long-dated Japanese yen-denominated assets, the Company has a substantial concentration of JGBs in its investment portfolio exposing the Company to credit deterioration and potential downgrades of JGBs.Risk factors (Item 1A)
Bank of America NA
insures or lends to · $288 million; .36%The Company's 15 largest exposures from investments in fixed maturity securities were as follows:Market risk (Item 7A)
Aflac Re Bermuda Ltd.
insures or lends tonamed as a riskAflac Japan has entered into reinsurance transactions with Aflac Re, which has less capital than external counterparties with which the Company has conducted reinsurance transactions in the past.Risk factors (Item 1A)
Competitors
Major medical carriers
competes withnamed as a riskHowever, given the profitability erosion some major medical carriers are facing in their core lines of business, the Company has seen a more competitive landscape as these carriers seek entry into Aflac's supplemental product segments and leverage their core benefit offerings by bundling and discounting products in order to gain market share.Business (Item 1)
Places
Japan
concentrated in · 53% of the Company's total adjusted revenues in 2025named as a riskAflac Japan's adjusted revenues accounted for 53% of the Company's total adjusted revenues in 2025, compared with 55% in 2024 and 60% in 2023.Risk factors (Item 1A)
Also named by A, AAPL, AMKR, ANET, BMY, BSX, CAT, CDNS and 25 more
Hazards
June 2025 cyber incident
named as a riskAs a result, events such as these, including the June 2025 cyber incident where the Company became aware of the exfiltration of certain personal information relating to a substantial number of customers, beneficiaries, employees, agents, and other individuals in the Company’s U.S. business, could adversely affect the Company's financial condition or results of operations due to incurred costs and remediation.Risk factors (Item 1A)
Commodities and inputs
Commercial real estate
insures or lends tonamed as a riskThe Company has evaluated its holdings and identified investments in areas such as commercial real estate and highly leveraged companies as the most exposed to continued high interest rates and an economic downturn.Risk factors (Item 1A)
Also named by APO, AUB, BAC, C, CFR, FSUN, GBCI, JPM and 11 more
Japanese yen/U.S. dollar exchange rate
exposed to its pricenamed as a riskDue to the size of Aflac Japan, where functional currency is the Japanese yen, fluctuations in the foreign exchange rate between the Japanese yen and the U.S. dollar have had, and may continue to have, a significant effect on the Company's reported financial position and results of operations.Risk factors (Item 1A)
U.S.-Japan interest rate differential
exposed to its pricenamed as a riskAn increase in the differential of short-term U.S. and Japan interest rates would also increase the cost of hedging a portion of the U.S. dollar-denominated assets held by Aflac Japan into Japanese yen, which could have a material adverse effect on the Company's business, results of operations or financial condition.Risk factors (Item 1A)
Regulators
Nebraska Department of Insurance
subject to · 10% of statutory capital and surplusnamed as a riskThe Nebraska insurance statutes require prior approval for dividend distributions that exceed the greater of the net income from operations, which excludes net realized investment gains, for the previous year determined under statutory accounting principles, or 10% of statutory capital and surplus as of the previous year-end.Risk factors (Item 1A)
Also named by BRK/B
Japan Financial Services Agency (FSA)
subject tonamed as a riskThe FSA does not allow dividends or other payments from Aflac Japan unless it meets certain financial criteria as governed by Japanese corporate law.Risk factors (Item 1A)
Bank of Japan
exposed to its pricenamed as a riskThe Bank of Japan ended its policy of negative interest rates in March 2024, and uncertainty about future Japan interest rate changes and the impact of increased rates on the Japanese economy could also contribute to volatility in Japanese markets.Risk factors (Item 1A)
New York State Department of Financial Services (NYSDFS)
subject toThe NYSDFS Cybersecurity Requirements for Financial Services Companies applies to Aflac New York.Business (Item 1)
Also named by AIG, AMP, BPOP, COIN, EFX, FNF, GS, HOOD and 9 more
Bermuda Monetary Authority (BMA)
subject toAflac Re is subject to regulation in Bermuda, where the Bermuda Monetary Authority (BMA) has broad administrative powers relating to granting and revoking licenses to transact reinsurance business, approval of specific reinsurance transactions, capital requirements and solvency standards, limitations on dividends to shareholders, the nature of and limitations on investments, and the filing of financial statements in accordance with prescribed or permitted accounting practices.Business (Item 1)
Also named by AIG, APO, ARES, CAT, CB, CG, COIN, FNF and 8 more
Laws and programs
HIPAA
subject tonamed as a riskHIPAA requires the Company to impose privacy and security requirements on its business associates (as such term is defined in the HIPAA regulations).Risk factors (Item 1A)
Also named by BAX, BBSI, CI, DHR, DOC, DOCN, DOCU, DXCM and 19 more
Telephone Consumer Protection Act (TCPA)
subject tonamed as a riskAt the federal level, the Telephone Consumer Protection Act (TCPA) continues to provide plaintiffs with a private right of action for claims alleging violation of the TCPA.Business (Item 1)
Also named by ADP, BBW, CART, COMP, CRM, CSGP, FCFS, GDDY and 9 more
Affordable Care Act (ACA)
subject tonamed as a riskHowever, indirect consequences of, or changes to, the legislation and regulations could present challenges that could potentially have an impact on the Company's sales model, financial condition and results of operations.Business (Item 1)
Also named by ABBV, ABT, ADP, BBSI, BRO, BWIN, COR, DOC and 8 more
FSA Solvency Margin Ratio (SMR)
subject tonamed as a riskAflac Japan's SMR is sensitive to interest rate, credit spread and foreign exchange rate changes.Business (Item 1)
Act on the Protection of Personal Information (APPI)
subject tonamed as a riskUnder Japanese laws and regulations, including the APPI, if a leak or loss of personal information by Aflac Japan or its business associates should occur, depending on factors such as the volume of personal data involved and the likelihood of other secondary damage, Aflac Japan may be required to file reports to the FSA; issue public releases explaining such incident to the public; or become subject to an FSA business improvement order, which could pose a risk to the Company's reputation.Risk factors (Item 1A)
Independent agent classification
subject tonamed as a riskAn allegation or determination that independent agents in the Company’s U.S. sales force have been misclassified as independent contractors could result in changes in the Company’s operations and U.S. business model, result in material fines or penalties, result in significant costs due to legal fees, settlements or judgments against the Company, or otherwise have a material adverse effect on the Company's business, results of operation, financial condition and liquidity.Risk factors (Item 1A)
Dodd-Frank Act
subject toTitle VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) and regulations issued thereunder, in particular rules to require central clearing for certain types of derivatives, may have an impact on the Company's derivative activity, including activity on behalf of Aflac Japan.Business (Item 1)
Also named by AN, BGC, CNX, CPAY, EPD, EQT, FITB, GS and 14 more
Insurance Capital Standards (ICS)
subject toSee the Liquidity and Capital Resources section of Item 7. MD&A for additional information on SMR, including a discussion of measures the Company has taken to mitigate the sensitivity of Aflac Japan's SMR and the introduction of an economic value-based solvency regime based on the Insurance Capital Standards (ICS) for insurance companies effective for Aflac Japan's 2025 fiscal year-end.Business (Item 1)
Companies Act of Japan
subject toAflac Japan dividend distributions to the Parent Company are subject to permitted dividend capacity under the Companies Act of Japan.Business (Item 1)
NAIC Risk-Based Capital
subject toRegulatory compliance is determined by a ratio of a company's regulatory total adjusted capital to its authorized control level RBC as defined by the NAIC.Business (Item 1)
Japan national health insurance system
Aflac Japan's third sector insurance products are supplemental products designed to help consumers pay for medical and nonmedical costs that are not reimbursed under Japan's national health insurance system.Business (Item 1)