June Investor Update – InsuranceNewsNet

Forward-Looking Statements and Non-GAAP Financial Measures

The 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 document 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, including those caused by COVID-19	•	subsidiaries’ ability to pay dividends to the Parent Company
•	defaults and credit downgrades of investments	•	inherent limitations to risk management policies and procedures
•	exposure to significant interest rate risk	•	the level of sales of Aflac Japan products in the Japan Post channel
•	concentration of business in Japan	•	tax rates applicable to the Company may change
•	limited availability of acceptable yen-denominated investments	•	failure to comply with restrictions on policyholder privacy and information security
•	foreign currency fluctuations in the yen/dollar exchange rate	•	extensive regulation and changes in law or regulation by governmental authorities
•	differing judgments applied to investment valuations	•	competitive environment and ability to anticipate and respond to market trends
•	significant valuation judgments in determination of expected credit losses recorded on the Company’s investments	•	catastrophic events, including, but not limited to, as a result of climate change, epidemics, pandemics
•	decreases in the Company’s financial strength or debt ratings	(such as the coronavirus COVID-19), tornadoes, hurricanes, earthquakes, tsunamis, war or other military
•	decline in creditworthiness of other financial institutions	action, terrorism or other acts of violence, and damage incidental to such events
•	concentration of the Company’s investments in any particular single-issuer or sector	•	ability to protect the Aflac brand and the Company’s reputation
•	the effects of COVID-19 and its variants (both known and emerging), and any resulting economic effects and government•	ability to effectively manage key executive succession
•	interventions, on the Company’s business and financial results	•	changes in accounting standards
the Company’s ability to attract and retain qualified sales associates, brokers, employees, and distribution partners	•	level and outcome of litigation
•	deviations in actual experience from pricing and reserving assumptions	•	allegations or determinations of worker misclassification in the United States

• ability to continue to develop and implement improvements in information technology systems
• 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

Non-U.S. GAAP Financial Measures and Reconciliations

This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Definitions of the Company’s non-U.S. GAAP financial measures and applicable reconciliations to the most comparable U.S. GAAP measures are provided as appropriate.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company’s financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).