Aflac (AFL) official guidance

Recognizing that the year-to-date benefit ratio is 63.4%, we now expect to be at the high end of our guidance range of 60%-63% for the full year of 2026, excluding the annual actuarial assumption review in Q3.

Well, I'd still be happy with sales at JPY 80 billion, but, as I stated today, we expect the 2026 numbers to exceed last year's numbers, and that I also said at the end of the first quarter.

We expect our net earned premium growth rate for 2026 to be just below our guidance range of 3%-6%, versus previous guidance for the low end of this range.

We continue, though, to expect our 2025-2027 net earned premium CAGR to be within the range of 3%-6%.

Recruiting is tough in the market. It's not easy, however, I can tell you that we're gonna be on track to recruit about consistent what we've been for the last two or three years. We've been in that 10,000-11,000 range now. That's what I expect to see again this year.

The benefit ratio guidance for the full year remains 48%-52%.

On that transaction, it negatively impacted our Aflac Japan earnings in the first quarter by a mid single digit U.S dollars in millions. That transaction or that block of business will initially have a negative impact along those lines for the next couple quarters. Over time it will go towards more of a zero impact.

As we go into Q2 right now, I would say that I would expect this segment to be slightly negative in terms of pre-tax earnings, given current volumes and rates and what we see from our reinsurance blocks.

Well, I would say closer to $80 billion. That's what I'd like. I'm not gonna say that the company won't be satisfied with a little less, but I'd like $80 billion.

We also expect the expense ratio to be in the 20%-23% range.

We also expect the benefit ratio for 2026 to be in the 48%-52% range and the expense ratio to be in the 36%-39% range as we continue to scale new business lines.

However, we expect the benefit ratio in Japan to be in the 60%-63% range and the pre-tax profit margin to be in the 33%-36% range.

At the same time, we expect pre-tax profit margin for 2026 to be in a range of 17%-20%.

For 2025, we now expect that the benefit ratio in Japan will be in the 58%-60% range, and we continue to expect the expense ratio to be at the lower end of the 20%-23% range as we pursue various growth and strategic initiatives.

In the U.S., we continue to expect the benefit ratio for 2025 to be at the lower end of the 48%-52% range and the expense ratio to be in the mid to upper end of the 36%-39% range as we continue to scale new business lines.

For 2025, we now expect that the benefit ratio in Japan will be in the 58%-60% range, and we continue to expect the expense ratio to be at the lower end of the 20%-23% range as we pursue various growth and strategic initiatives.

In the U.S., we continue to expect the benefit ratio for 2025 to be at the lower end of the 48%-52% range and the expense ratio to be in the mid to upper end of the 36%-39% range as we continue to scale new business lines.

As a result, we expect Aflac Japan's pre-tax profit margin to be in the 35%-38% range.

At the same time, we expect pre-tax profit margin for 2025 in the U.S. to be at the upper end of the 17%-20% range.