Aflac Inc (NYSE: AFL) is a supplemental insurance company that sells policies designed to cover out-of-pocket medical and nonmedical costs not reimbursed by primary health insurance or national health coverage. Revenue is generated through premiums collected on supplemental health and life insurance products sold to individuals and employer groups in Japan and the United States. Aflac Japan is the number one provider of cancer insurance in Japan, a market it pioneered in 1974, and distributes through approximately 6,300 sales agencies with roughly 112,000 licensed sales associates, plus alliances with Dai-ichi Life (approximately 37,000 representatives), Japan Post (approximately 20,000 postal outlets), and Daido Life (approximately 3,700 representatives), all as of December 31, 2025. Aflac U.S. sells supplemental coverage to individuals and employer groups ranging from small businesses (3 to 99 employees) to large enterprises (100-plus employees), through an independent sales force that averaged approximately 5,300 members in 2025. The company is authorized to conduct insurance business in all 50 U.S. states, the District of Columbia, several U.S. territories, and Japan.

Revenue model

Insurance premiums on supplemental health and life policies, collected from individual policyholders and employer-sponsored group plans in Japan and the United States. Sales associates and brokers are independent contractors paid commissions based on first-year and renewal premiums.

Products and services

Japan: cancer insurance (lump-sum diagnosis benefit, daily hospitalization and outpatient benefits, surgical and convalescent care), medical insurance, income support insurance, and first-sector life products. U.S.: accident, disability, critical illness, hospital indemnity, dental, vision, and term and whole-life insurance on individual and group bases.

Customers and end markets

Individual consumers in Japan seeking coverage for costs not reimbursed by Japan's national health insurance system. U.S. small businesses (3 to 99 employees) served through career agents and mid-to-large employers (100-plus employees, average approximately 1,000 employees) served through brokers. End-market demand in Japan is driven by cost-shifting onto consumers from an aging population and pressure on the national health care system.

Value-chain role

Insurance underwriter and product manufacturer distributing through independent agents, affiliated corporate agencies, broker networks, and strategic alliance partners including life insurers and postal distribution networks.

Geographic exposure

Two primary segments: Japan (Aflac Japan) and the United States (Aflac U.S.). The 10-K filed 2026-02-25 cites concentration of business in Japan as a material risk factor, and flags yen/dollar foreign exchange exposure as a key financial risk.

Source: SEC 10-K, filed 2026-02-25

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