Aflac

Methodology

Aflac's supplemental insurance in US and Japan provides relatively stable earnings, though Japanese operations create currency exposure and demographic headwinds. Cancer and accident products generate predictable premiums and claims. This works reasonably well for Aflac, though yen fluctuations and interest rates create near-term volatility around stable long-term trends.

Methodology

Aflac's PEG often appears attractive for a profitable insurer but reflects mature Japanese market and modest supplemental insurance growth prospects. Limited runway and currency headwinds justify lower multiples than growth insurers. Compare to supplemental insurance peers and life insurers to assess whether defensive characteristics and capital returns justify pricing.

Methodology

Aflac's substantial dividend and annual increase track record make yield-adjusted metrics particularly important for this mature insurer. Strong capital generation and shareholder-friendly management significantly enhance returns beyond modest growth. PEGY better captures appeal as income-oriented insurance where dividends and buybacks drive value alongside operations.