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Aflac Finance

To help people get the protection they need when they need it most by delivering innovative financial solutions and exceptional service

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To help people get the protection they need when they need it most by delivering innovative financial solutions and exceptional service

Strengths

  • BRAND: Strong brand recognition with iconic duck mascot and 98% awareness
  • DISTRIBUTION: Robust multi-channel distribution network across US and Japan
  • FINANCIAL: Solid capital position with $145B+ in total assets
  • PRODUCT: Market leader in cancer and supplemental insurance products
  • EFFICIENCY: Industry-leading expense ratio at 18.3% in US operations

Weaknesses

  • DEPENDENCY: Heavy reliance on Japanese market (70% of premium income)
  • COMPETITION: Increasing competitive pressure in voluntary benefits space
  • DIGITIZATION: Legacy systems limiting digital transformation speed
  • DIVERSIFICATION: Limited product diversification beyond core offerings
  • TALENT: Challenges in attracting top financial technology talent

Opportunities

  • EXPANSION: Growing demand for voluntary supplemental insurance products
  • DIGITAL: Enhanced customer engagement through digital transformation
  • DEMOGRAPHICS: Aging populations creating new insurance needs
  • PARTNERSHIPS: Strategic alliances with fintech and insurtech companies
  • ESG: Growing importance of ESG factors in investment decisions

Threats

  • REGULATION: Changing insurance regulations in US and Japan markets
  • ECONOMY: Interest rate fluctuations impacting investment returns
  • COMPETITION: New entrants leveraging technology to disrupt market
  • PANDEMIC: Ongoing health crises affecting claims and operations
  • CYBERSECURITY: Increasing sophistication of cyber threats and attacks

Key Priorities

  • DIGITAL: Accelerate digital transformation initiatives across operations
  • DIVERSIFICATION: Expand product offerings beyond core insurance lines
  • TALENT: Invest in attracting and retaining top financial technology talent
  • PARTNERSHIPS: Pursue strategic alliances to drive innovation
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To help people get the protection they need when they need it most by delivering innovative financial solutions and exceptional service

DIGITAL EXCELLENCE

Lead insurance innovation through transformative technology

  • AUTOMATION: Implement RPA for 80% of financial close processes, reducing cycle time by 25% by Q3
  • PLATFORM: Launch new integrated financial planning platform with real-time analytics for 100% of business units
  • DASHBOARDS: Create executive financial visualization tools with 95% data accuracy and daily refresh rates
  • ADOPTION: Achieve 90% internal adoption of new digital finance tools across all finance team members
TALENT REVOLUTION

Build world-class finance capabilities and innovation culture

  • SKILLS: Upskill 100% of finance team with data analytics and AI coursework, minimum 20 hours per person
  • RETENTION: Improve finance team retention rate to 92% through career development and innovation programs
  • DIVERSITY: Increase representation of underrepresented groups in finance leadership to minimum 35%
  • INNOVATION: Launch Finance Innovation Lab with 5 cross-functional projects delivering $2.5M in value
STRATEGIC INSIGHT

Drive business growth through financial intelligence

  • FORECASTING: Implement AI-powered predictive models improving forecast accuracy by 30% across all regions
  • ANALYSIS: Deliver monthly business insights package that influences minimum 3 executive decisions per quarter
  • INVESTMENT: Optimize investment portfolio allocation resulting in 35bps improvement in risk-adjusted returns
  • METRICS: Standardize KPI reporting across business units with 98% data quality score and daily updates
OPERATIONAL AGILITY

Create efficient, scalable financial operations

  • EFFICIENCY: Reduce finance operational costs by 15% while maintaining or improving service quality metrics
  • COMPLIANCE: Implement automated compliance monitoring system with 99.5% accuracy and 100% audit coverage
  • INTEGRATION: Consolidate 85% of financial systems into centralized platform by Q4 with zero disruptions
  • PARTNERSHIP: Establish 3 strategic fintech partnerships delivering measurable process improvements
METRICS
  • Operating earnings per share growth: 8% for 2024, 9% for 2025
  • Finance operational expense ratio: 5.2% of premiums
  • Finance digital transformation completion: 75% against roadmap
VALUES
  • Teamwork & Respect
  • Caring & Passion
  • Integrity & Trust
  • Innovation & Agility
  • Financial Strength & Discipline
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Align the learnings

Aflac Finance Retrospective

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To help people get the protection they need when they need it most by delivering innovative financial solutions and exceptional service

What Went Well

  • EARNINGS: Increased adjusted earnings per diluted share by 7.6% to $6.04
  • CAPITAL: Maintained strong capital ratios exceeding regulatory requirements
  • EFFICIENCY: Achieved further reduction in expense ratio in US operations
  • RETURNS: Generated solid ROE of 14.2% despite market volatility challenges
  • DIVIDENDS: Increased dividends for 41st consecutive year, returning value

Not So Well

  • GROWTH: US premium growth below expectations at 1.2% year-over-year rate
  • INVESTMENT: Alternative investment returns underperformed target by 0.8%
  • RECRUITMENT: Sales force recruitment in Japan lagged targets by 12% in Q4
  • DIGITAL: Customer digital adoption rates fell short of projected milestones
  • PRODUCTS: New product introductions faced delays due to regulatory issues

Learnings

  • INTEGRATION: Cross-functional teams accelerate digital transformation pace
  • ANALYTICS: Data-driven decision making improved accuracy of forecasting
  • AGILITY: Flexible workforce policies enhanced productivity and engagement
  • INNOVATION: Strategic venture investments yielded valuable tech insights
  • CUSTOMER: Direct consumer feedback crucial for product development cycles

Action Items

  • PLATFORM: Implement integrated financial planning and analysis platform
  • ECOSYSTEM: Develop strategic partnerships with healthtech innovators now
  • AUTOMATION: Accelerate RPA deployment in financial closing processes asap
  • ANALYTICS: Enhance predictive models for investment portfolio optimization
  • TALENT: Launch finance innovation lab to attract next-gen financial talent
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To help people get the protection they need when they need it most by delivering innovative financial solutions and exceptional service

Strengths

  • AUTOMATION: Strong foundation in claims processing automation
  • INVESTMENT: Established Digital Ventures team with dedicated funding
  • INFRASTRUCTURE: Robust data warehousing and analytics capabilities
  • LEADERSHIP: Executive commitment to AI-driven transformation
  • EXPERIENCE: Success with My Special Aflac Duck smart companion

Weaknesses

  • LEGACY: Technical debt in core systems limiting AI integration
  • TALENT: Limited in-house AI expertise and specialized talent
  • COORDINATION: Siloed AI initiatives across business units
  • ADOPTION: Conservative culture slowing technology adoption
  • DATA: Inconsistent data quality and governance frameworks

Opportunities

  • PERSONALIZATION: AI-driven personalized customer experiences
  • UNDERWRITING: Enhanced risk assessment through predictive analytics
  • EFFICIENCY: Automating manual processes in claims and finance
  • INSIGHTS: Advanced analytics to identify new market opportunities
  • SERVICE: AI chatbots and virtual assistants improving customer service

Threats

  • COMPETITION: InsurTech startups deploying AI more rapidly
  • TALENT: Intense competition for limited AI talent pool
  • ETHICS: Growing scrutiny of AI use in financial services
  • COMPLIANCE: Evolving regulations around AI/ML in insurance
  • SECURITY: Increased vulnerability with AI system integrations

Key Priorities

  • TALENT: Establish dedicated AI Center of Excellence with specialized team
  • INTEGRATION: Develop enterprise-wide AI governance framework
  • AUTOMATION: Accelerate deployment of AI in finance and claims operations
  • EXPERIENCE: Leverage AI for personalized customer journeys