AFLAC INC (AFL) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that AFLAC INC surfaced in its latest filing.

• Bank of Japan ended its policy of negative interest rates on bank reserves in March 2024.March 2024
• June 2025 cyber incident involving exfiltration of personal information of a substantial number of customers, beneficiaries, employees, agents, and other individuals in the U.S. business.June 2025
• Aflac Japan has entered into reinsurance transactions with Aflac Re.
• At December 31, 2025, the Company had agreements with 358 banks to market Aflac's products in Japan.December 31, 2025
• The Company's derivative transactions are governed by International Swaps and Derivatives Association, Inc. (ISDA) agreements, with most including Credit Support Annexes (CSAs).
• A significant portion of derivative transactions have provisions allowing counterparties to terminate upon downgrade of Aflac's financial strength rating.
• The Company faces litigation related to sales agent recruiting.
• The Company faces litigation related to policy sales practices.
• The Company faces litigation related to claim payments and procedures including denial or delay of benefits.
• The Company faces litigation related to the low level of Aflac U.S. benefit ratios in recent financial periods.
• The Company faces litigation related to material misstatements or omissions in its financial reports or other public statements.
• The Company faces litigation related to corporate governance, corporate culture or business ethics matters.
• The Company may be subject to claims or litigation regarding sexual or other forms of misconduct or harassment.
• The Company may be subject to claims or litigation regarding discrimination.
• The Company may be subject to claims or litigation asserting that independent agents are employees.
• The Company owns substantial holdings in Japan Government Bonds (JGBs).
• Japan Post Group accounted for a significant portion of Aflac Japan's total sales in recent periods.