AFLAC INC Annual Report, Year Ended Dec 31, 2020

Aflac Incorporated reported total revenues of $22.1 billion for the year ended December 31, 2020, a slight decrease from the previous year, primarily impacted by the global COVID-19 pandemic. Despite revenue pressures, the company demonstrated resilience with net earnings of $4.8 billion, a significant increase driven by a $1.4 billion benefit from the release of valuation allowances on deferred foreign tax credits due to new U.S. tax regulations. The company's core operations in Japan remain the primary driver of earnings, contributing approximately 68% of total revenues and 83% of total assets. Aflac Japan continues to be a leader in cancer and medical insurance, adapting to market trends and focusing on products less sensitive to interest rate fluctuations. Aflac U.S. expanded its product offerings through acquisitions, including group life, disability, and absence management products, and is also enhancing its digital sales capabilities. Navigating the uncertainties of the pandemic, Aflac maintained a strong liquidity and capital position by issuing senior notes and managing its capital allocation tactically. The company is committed to its solvency margin ratios and risk-based capital ratios, with contingency plans in place. While sales were impacted by the pandemic due to reduced face-to-face interactions, Aflac accelerated digital investments to support long-term productivity and customer service.