AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa" (Superior) of Aflac Life Insurance Japan, Ltd. (Japan) (Aflac Japan), American Family Life Assurance Company of Columbus (Omaha, NE), American Family Life Assurance Company of New York (Albany, NY) and Continental American Insurance Company (Omaha, NE). These companies represent the life/health insurance subsidiaries of Aflac Incorporated (Aflac) (Columbus, GA) (NYSE:AFL) and are collectively referred to as Aflac Incorporated Group. Concurrently, AM Best has affirmed the Long-Term ICR of "a" (Excellent) and all existing Long-Term Issue Credit Ratings (Long-Term IRs) of Aflac. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the Long-Term IRs and shelf registration.)

The ratings reflect Aflac’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management (ERM).

The rating affirmations reflect Aflac Incorporated Group’s risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), strong levels of risk-based capital in the United States and excellent solvency ratios in Japan. Risk-adjusted capitalization has been enhanced by the company’s strong operating performance. Aflac’s financial leverage, as measured by AM Best, has remained relatively stable and was 22.2% at year-end 2025 and interest coverage is considered strong at more than 20 times. Operating leverage composed of security lending programs and funding agreements through the Federal Home Loan Bank (FHLB) remains well within AM Best tolerances and was below 10% at year-end 2025. Aflac has strong financial flexibility with cash maintained at the parent, multiple lines of credit at Aflac and numerous subsidiaries including $100 million available on a 364-day facility; JPY100 billion available on a five-year unsecured revolver; $1 billion available on a five-year revolver and various other entities have funding available through 364-day revolvers. Furthermore, American Family Life Assurance Company of Columbus, Aflac’s largest US insurance entity, has access to funds through the FHLB. Additionally, in 2025, Aflac established Pre-Capitalized Securities Trust with $2 billion available. The organization’s investment team continues to manage the challenges of foreign exchange risk via hedging programs effectively. Aflac’s invested assets are diverse across asset classes and types and managed internally and through highly respected external asset managers. Over the past few years, the investment portfolio has experienced a rise in commercial transitional real estate delinquencies, which has resulted in an increase in company-owned real estate. The company has not experienced any additional delinquencies in the commercial transitional real estate portfolio through the second quarter of 2026. AM Best notes that the group’s exposure to real estate from commercial mortgages has performed well with virtually no delinquencies, foreclosures or restructured loans over the past several years. AM Best acknowledges that the real estate and loan portfolio represents a small percentage of Aflac’s total investment portfolio.

The ratings also reflect Aflac Incorporated Group’s continued strong operating margins in Japan and U.S. markets and return on equity (ROE) and return on revenue (ROR) remain favorable. Aflac’s five-year ROE has been greater than 10% in each of the past five years, and the five-year average ROE was 17.2% at year-end 2025. ROR has been greater than 20% and the five-year average ROR was 30.5% at year-end 2025. The earnings continue to be impacted favorably by lower benefits utilization in the United States and the cancer product in Japan partially offset by higher administrative expenses. AM Best recognizes that as Aflac’s business mix in the United States shifts driven by growth in its life and disability business, the loss ratio is expected to increase slightly, but margins are expected to remain strong. While Aflac’s operating segments historically have produced favorable results, the group continues to be challenged to reverse the trend of premium decline and grow new sales materially, due to the increasingly competitive market. The company continues to focus actively on client retention strategies, product enhancements and operational capabilities to meet evolving market demands and facilitate growth.

AM Best considers Aflac’s ERM management capabilities to be very strong, which is embedded deeply in the organization’s strategy and decision making and has impacted its balance sheet strength, operational performance and business profile positively. The ERM program has continued to demonstrate robust processes within its framework that are effective in identifying potential risks, managing those risks and mitigating them. AM Best’s assessment also includes an evaluation of the program’s risk defense capabilities of multiple exposures and has determined that most are managed with very high capabilities. ERM remains appropriately sophisticated for the size and complexity of the organization’s extensive operations.

Aflac also has leveraged its risk management capabilities to maintain its favorable business profile. Management has made numerous investments in both markets to position the company to grow over the near to medium term. The company is a market leader in providing medical and cancer insurance in Japan, and its strong partnership with Japan Post solidifies its standing as a formidable competitor in that market. In the U.S. market, Aflac continues to be a leader in worksite supplemental medical insurance. In 2026, Aflac expanded its business profile with the announcement of its first external reinsurance transaction at its subsidiary, Aflac Re Bermuda. The transaction with Japan Post Insurance Company Ltd. is a reinsurance transaction for a block of whole life annuities. The favorable business profile assessment reflects Aflac’s excellent niche market position and deep relationships with clients via an extensive distribution model and robust innovation capabilities.

The following Long-Term IRs have been affirmed with stable outlooks:

Aflac Incorporated—

-- "a" (Excellent) on USD 300 million, 2.875% senior unsecured notes, due 2026

-- "a" (Excellent) on JPY 60 billion, 0.932% senior unsecured notes, due 2027

-- "a" (Excellent) on JPY 12.6 billion, 0.5% senior unsecured notes, due 2029

-- "a" (Excellent) on JPY 13.0 billion, 1.048% senior unsecured notes, due 2029

-- "a" (Excellent) on JPY 33.4 billion, 1.075% senior unsecured notes, due 2029

-- "a" (Excellent) on JPY 13.3 billion, 0.55% senior unsecured notes, due 2030

-- "a" (Excellent) on USD 1.0 billion, 3.6% senior unsecured notes, due 2030

-- "a" (Excellent) on JPY 29.3 billion, 1.159% senior unsecured notes, due 2030

-- "a" (Excellent) on JPY 9.3 billion, 0.843% senior unsecured notes, due 2031

-- "a" (Excellent) on JPY 27.9 billion, 1.412% senior unsecured notes, due 2031

-- "a" (Excellent) on JPY 30 billion, 0.633% senior unsecured notes, due 2031

-- "a" (Excellent) on JPY 20.7 billion, 0.75% senior unsecured notes, due 2032

-- "a" (Excellent) on JPY 21.1 billion, 1.32% senior unsecured notes, due 2032

-- "a" (Excellent) on JPY 15.2 billion, 1.488% senior unsecured notes, due 2033

-- "a" (Excellent) on JPY 12.0 billion, 0.844% senior unsecured notes, due 2033

-- "a" (Excellent) on JPY 9.8 billion, 0.934% senior unsecured notes, due 2034

-- "a" (Excellent) on JPY 7.7 billion, 1.682% senior unsecured notes, due 2034

-- "a" (Excellent) on JPY 10.6 billion, 0.83% senior unsecured notes, due 2035

-- "a" (Excellent) on JPY 10.0 billion, 1.039% senior unsecured notes, due 2036

-- "a" (Excellent) on JPY 6.5 billion, 1.594% senior unsecured notes, due 2037

-- "a" (Excellent) on JPY 8.9 billion, 1.75% senior unsecured notes, due 2038

-- "a" (Excellent) on JPY 6.3 billion, 1.122% senior unsecured notes, due 2039

-- "a" (Excellent) on USD 400 million, 6.90% senior unsecured notes, due 2039

-- "a" (Excellent) on USD 450 million, 6.45% senior unsecured notes, due 2040

-- "a" (Excellent) on JPY 10.0 billion, 1.264% senior unsecured notes, due 2041

-- "a" (Excellent) on USD 400 million, 4.0% senior unsecured notes, due 2046

-- "a-" (Excellent) on JPY 60 billion, 2.108% subordinated debentures, due 2047

-- "a" (Excellent) on USD 550 million, 4.75% senior unsecured notes, due 2049

-- "a" (Excellent) on JPY 20.0 billion, 1.56% senior unsecured notes, due 2051

-- "a" (Excellent) on JPY 12.0 billion, 2.144% senior unsecured notes, due 2052

The following indicative Long-Term IRs have been affirmed with stable outlooks on securities available under the existing shelf registrations:

Aflac Incorporated—

-- "a" (Excellent) on senior unsecured debt

-- "a-" (Excellent) on subordinated debt

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Jennifer Asamoah

Senior Financial Analyst

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ChanYoung Lee

Director, Analytics

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Senior Director

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Associate Director, Public Relations

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Al Slavin

Senior Public Relations Specialist

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