AFL · 10-Q · 2026Q2 · Full report

Operating Margin Drivers

AFLAC INC · 2026-08-07 · Importance 56 · Surprise 58

Aflac Japan’s six-month pretax adjusted earnings margin decreased to 31.9% from 34.6% in yen terms, while the second-quarter margin increased to 32.0% from 34.3% in the comparable presentation. Six-month benefits and claims decreased primarily because of annual cash-flow assumption updates performed in the third quarter of 2025 and higher reserve remeasurement gains. Total adjusted expenses decreased primarily because more deferred policy acquisition costs were capitalized. For the six-month period, total adjusted expenses were 19.8% of total adjusted revenues versus 20.1% in the prior year.

Key facts

• In total, the pretax adjusted profit margin increased in the three- and six-month periods ended June 30, 2026 primarily due to the lower benefit ratio. source