Q4 2024 Aflac Inc Earnings Call - Pre-Recorded

February 5, 2025

Yeah.

Unknown Executive: Thank you for joining me as I provide a financial update on Aflac Incorporated's results for the fourth quarter of 2024. For the quarter, adjusted earnings per diluted share increased 24.8% year-over-year to $1.56, with a one-cent negative impact from FX in the quarter. In this quarter, re-measurement gains on reserves totaled $43 million, reducing benefits. Variable investment income ran $17 million above our long-term return expectations. Adjusted book value per share, excluding foreign currency remeasurement, increased 3.2%. The adjusted ROE was 12% and 14.5% excluding FX remeasurement, an acceptable spread to our cost of capital.

Speaker Change: Thank you for joining me as I provide a financial update on Aflac incorporated's results for the fourth quarter of 2024.

Virgil Miller: Thank you for joining me as I provide a financial update on Aflac Incorporated's results for the Q4 of 2024. For the quarter, adjusted earnings per diluted share increased 24.8% year-over-year to $1.56, with a $0.01 negative impact from FX in the quarter. In this quarter, remeasurement gains on reserves totaled $43 million, reducing benefits. Variable investment income ran $17 million above our long-term return expectations. Adjusted book value per share, excluding foreign currency remeasurement, increased 3.2%. The adjusted ROE was 12% and 14.5%, excluding FX remeasurement, an acceptable spread to our cost of capital. Overall, we view these results in the quarter as solid. Starting with our Japan segment, net term premiums for the quarter declined 5.4%. This decline reflects a JPY 7.2 billion negative impact from an internal cancer reinsurance transaction executed in the Q4 of 2024, and a JPY 4.4 billion negative impact from paid-out policies.

Speaker Change: For the quarter adjusted earnings per diluted share increased 24, 8% year over year to $1 56, with a one cents negative impact from FX in the quarter in this quarter remeasurement gains on reserves totaled $43 million reducing benefits.

Speaker Change: Variable investment income ran a $17 million above our long term return expectations adjusted book value per share excluding foreign currency re measurement increased three 2%.

The adjusted ROE.

Speaker Change: Was 12% and 14, 5%, excluding FX remeasurement and acceptable spread to our cost of capital.

Speaker Change: Overall, we view these results in the quarter as solid.

Unknown Executive: Overall, we view these results in the quarter as solid.

Speaker Change: Along with our Japan segment net earned premiums for the quarter declined five 4%.

Koichiro Yoshizumi: Starting with our Japan segment, net-term premiums for the quarter declined 5.4%. This decline reflects a 7.2 billion yen negative impact from an internal cancer reinsurance transaction executed in the fourth quarter of 2024. and a 4.4 billion yen negative impact from paid-up policy. In addition, there's a 300 million yen positive impact from deferred profit liability. At the same time, policies in force declined 2.3%. Japan's total benefit ratio came in at 66.5% for the quarter, up 40 basis points year-over-year, and 62.5% for the year. The third sector benefit ratio was 56.9% for the quarter, up approximately 70 basis points year-over-year.

Speaker Change: This decline reflects a $7 2 billion yen negative impact from an internal cancer reinsurance transaction executed in the fourth quarter of 2024.

Speaker Change: And a $4 4 billion yen negative impact from paid up policies.

Speaker Change: In addition, there's a 300 million yen positive impact from deferred profit liability.

Virgil Miller: In addition, there's a JPY 300 million positive impact from deferred profit liability. At the same time, policies in force declined 2.3%. Japan's total benefit ratio came in at 66.5% for the quarter, up 40 basis points year-over-year, and 62.5% for the year. The third sector benefit ratio was 56.9% for the quarter, up approximately 70 basis points year-over-year. We estimate the impact from remeasurement gains to be approximately 100 basis points favorable to the benefit ratio in Q4 2024. Long-term experience trends, as they relate to treatments of cancer and hospitalization, continue to be in place, leading to continued favorable underwriting experience. Persistency remained solid at 93.4%, which was unchanged year-over-year and in line with our expectations. Our expense ratio in Japan was 20.8% for the quarter, down 30 basis points year-over-year, driven primarily by a decline in expenses. For the year, the expense ratio in Japan was 19.1%.

In addition, there's a JPY 300 million positive impact from deferred profit liability. At the same time, policies in force declined 2.3%. Japan's total benefit ratio came in at 66.5% for the quarter, up 40 basis points year-over-year, and 62.5% for the year. The third sector benefit ratio was 56.9% for the quarter, up approximately 70 basis points year-over-year. We estimate the impact from remeasurement gains to be approximately 100 basis points favorable to the benefit ratio in Q4 2024. Long-term experience trends, as they relate to treatments of cancer and hospitalization, continue to be in place, leading to continued favorable underwriting experience. Persistency remained solid at 93.4%, which was unchanged year-over-year and in line with our expectations. Our expense ratio in Japan was 20.8% for the quarter, down 30 basis points year-over-year, driven primarily by a decline in expenses. For the year, the expense ratio in Japan was 19.1%.

Speaker Change: At the same time policies in force declined two 3%.

Speaker Change: Japan's total benefit ratio came in at 6% to six 5% for the quarter up 40 basis points year over year and 62, 5% for the year.

Speaker Change: The third sector benefit ratio was 56, 9% for the quarter up approximately 70 basis points year over year.

Speaker Change: We estimate the impact from Remeasurement gains to be approximately 100 basis points favorable to the benefit ratio in Q4 of 2024.

Koichiro Yoshizumi: We estimate the impact from re-measurement gains to be approximately 100 basis points favorable to the benefit ratio in Q4 2024. Long-term experience trends as they relate to treatments of cancer and hospitalization continue to be in place, leading to continued favorable underwriting experience. Persistency remained solid at 93.4%, which was unchanged year-over-year and in line with our expectations. Our expense ratio in Japan was 20.8% for the quarter, down 30 basis points year-over-year, driven primarily by a decline in expense. For the year, the expense ratio in Japan was 19.1%. For the quarter, adjusted net investment income in yen terms was up 3.7%, as the transfer of assets to Aflac Re-Bermuda associated with reinsurance and lower floating rate income was more than offset by higher returns from structured private credit, infrastructure and our alternatives portfolio.

Speaker Change: Long term experience trends as they relate to treatments of cancer and Hospitalisation continue to be in place leading to continued favorable underwriting experience persistency remained solid at 93, 4%, which was unchanged year over year and in line with our expectations our expense ratio in Japan was two.

Speaker Change: 98% for the quarter down 30 basis points year over year, driven primarily by a decline in expenses.

Speaker Change: For the year the expense ratio in Japan was 19.1% for the quarter adjusted net investment income in yen terms was up three 7% as a transfer of assets to Aflac re Bermuda associated with reinsurance.

Virgil Miller: For the quarter, adjusted net investment income in yen terms was up 3.7%, as the transfer of assets to Aflac Re Bermuda, associated with reinsurance, and lower floating rate income was more than offset by higher returns from structured private credit, infrastructure, and our alternatives portfolio. Adjusted net investment income was up 12.1% for the year. The pre-tax margin for Japan in the quarter was 31.6%, up 120 basis points year-over-year, a very good result. For the full year, the pre-tax margin was even stronger, 36%, which is also the highest in 30 years. Turning to US results, net term premium was up 2.7%. Persistency increased 70 basis points year-over-year to 79.3%. Our US total benefit ratio came in at 46.3%, 170 basis points higher than Q4 2023, driven by lower remeasurement gains than a year ago.

For the quarter, adjusted net investment income in yen terms was up 3.7%, as the transfer of assets to Aflac Re Bermuda, associated with reinsurance, and lower floating rate income was more than offset by higher returns from structured private credit, infrastructure, and our alternatives portfolio. Adjusted net investment income was up 12.1% for the year. The pre-tax margin for Japan in the quarter was 31.6%, up 120 basis points year-over-year, a very good result. For the full year, the pre-tax margin was even stronger, 36%, which is also the highest in 30 years. Turning to US results, net term premium was up 2.7%. Persistency increased 70 basis points year-over-year to 79.3%. Our US total benefit ratio came in at 46.3%, 170 basis points higher than Q4 2023, driven by lower remeasurement gains than a year ago.

Speaker Change: And lower floating rate income was more than offset by higher returns from structured private credit infrastructure and our alternatives portfolio.

Speaker Change: Adjusted net investment income was up 12, 1% for the year.

Koichiro Yoshizumi: Adjusted net investment income was up 12.1% for the year. The pre-tax margin for Japan in the quarter was $31.6 billion. Up 120 basis points year-over-year, a very good result.

Speaker Change: The pretax margin for Japan in the quarter was 31, 6% up 120 basis points year over year, a very good result.

Speaker Change: For the full year, the pretax margin was even stronger 36%.

Koichiro Yoshizumi: For the full year, the pre-tax margin was even stronger, 36%, which is also the highest in 30 years.

Speaker Change: Which is also the highest in 30 years turning to U S results net earned premium was up 2.7%.

Koichiro Yoshizumi: Turning to U.S. results, net-on-premium was up 2.7%. Persistency increased 70 basis points year-over-year to 79.3%. Our U.S. total benefit ratio came in at 46.3%, 170 basis points higher than Q4 2023, driven by lower re-measurement gains than a year ago. We estimate that the remeasurement gains impacted the benefit ratio by approximately 170 basis points in the quarter. Claims Utilization has rebounded from depressed levels during the pandemic and are now more in line with our long-term expectations. For the full year, the U.S. total benefit ratio was 46.8%. Our expense ratio in the US was 40.3%. down 310 basis points year over year.

Speaker Change: Persistency increased 70 basis points year over year to 79, 3% our U S. Total benefit ratio came in at 46, 3% 170 basis points higher than Q4 2023.

Speaker Change: Driven by lower remeasurement gains than a year ago.

Speaker Change: We estimate that the re measurement gains impacted a benefit ratio by approximately 170 basis points in the quarter.

Virgil Miller: We estimate that the remeasurement gains impacted the benefit ratio by approximately 170 basis points in the quarter. Claims utilization has rebounded from depressed levels during the pandemic and are now more in line with our long-term expectations. For the full year, the US total benefit ratio was 46.8%. Our expense ratio in the US was 40.3%, down 310 basis points year-over-year, primarily driven by platforms improving scale and strong expense management. For the year, the US expense ratio was 38.5%. Our growth initiatives, Group Life and Disability, Network, Dental and Vision, and Direct to Consumer, increased our total expense ratio by 170 basis points for the quarter. This is in line with our expectations, and we would expect this impact to decrease going forward as these businesses grow to scale and improve their profitability. Adjusted net investment income in the US.

We estimate that the remeasurement gains impacted the benefit ratio by approximately 170 basis points in the quarter. Claims utilization has rebounded from depressed levels during the pandemic and are now more in line with our long-term expectations. For the full year, the US total benefit ratio was 46.8%. Our expense ratio in the US was 40.3%, down 310 basis points year-over-year, primarily driven by platforms improving scale and strong expense management. For the year, the US expense ratio was 38.5%. Our growth initiatives, Group Life and Disability, Network, Dental and Vision, and Direct to Consumer, increased our total expense ratio by 170 basis points for the quarter. This is in line with our expectations, and we would expect this impact to decrease going forward as these businesses grow to scale and improve their profitability. Adjusted net investment income in the US.

Speaker Change: Claims utilization has rebounded from depressed levels during the pandemic.

Speaker Change: Now more in line with our long term expectations.

Speaker Change: For the full year the U S. Total benefit ratio was 46, 8% our expense ratio in the U S was 43%.

Speaker Change: Down 310 basis points year over year.

Speaker Change: Primarily driven by platforms, improving scale and strong expense management.

Koichiro Yoshizumi: Primarily driven by platforms improving scale and strong expense management. For the year, the U.S. expense ratio was 38.5%. Our growth initiatives, Group Life and Disability, Network Dental and Vision, and Direct to Consumer, increase our total expense ratio by 170 basis points for the quarter. This is in line with our expectations and we would expect this impact to decrease going forward as these businesses grow to scale and improve their profitability. Adjusted net investment income in the U.S. was up 0.9% for the quarter, mainly driven by high returns from alternatives. and 3.3% for the U.S. Profitability in the U.S.

Speaker Change: For the year the U S expense ratio was 38, 5% our growth initiatives group life, and disability network dental and vision and direct to consumer increased our total expense ratio by 170 basis points for the quarter.

Speaker Change: This is in line with our expectations and we would expect this impact to decrease going forward as these businesses grow to scale and improve their profitability.

Speaker Change: Adjusted net investment income in the U S was up zero point, 90% for the quarter.

Virgil Miller: was up 0.9% for the quarter, mainly driven by high returns from alternatives and 3.3% for the year. Profitability in the US segment was solid, with a pre-tax margin of 19.7%, also a good result, as was the 21.1% for the full year. We continue managing through the worst commercial real estate downturn in decades. During the quarter, we increased our CECL reserves associated with our commercial real estate portfolio by $40 million net of charge-offs, as property values remain at distressed valuations. We also foreclosed on two loans, adding them to our real estate-owned portfolio. We continue to believe that the current distressed market does not reflect the true intrinsic value of our portfolio, which is why we are confident in our ability to take ownership of these assets, manage them through the cycle, and maximize our recoveries.

was up 0.9% for the quarter, mainly driven by high returns from alternatives and 3.3% for the year. Profitability in the US segment was solid, with a pre-tax margin of 19.7%, also a good result, as was the 21.1% for the full year. We continue managing through the worst commercial real estate downturn in decades. During the quarter, we increased our CECL reserves associated with our commercial real estate portfolio by $40 million net of charge-offs, as property values remain at distressed valuations. We also foreclosed on two loans, adding them to our real estate-owned portfolio. We continue to believe that the current distressed market does not reflect the true intrinsic value of our portfolio, which is why we are confident in our ability to take ownership of these assets, manage them through the cycle, and maximize our recoveries.

Speaker Change: Mainly driven by higher returns from alternatives.

Speaker Change: And three 3% for the year.

Speaker Change: Profitability in the U S segment was solid with a pretax margin of 19, 7% also a good result.

Koichiro Yoshizumi: segment was solid, with a pre-tax margin of 19.7%, also a good result. as well as the 21.1% for the full year.

Speaker Change: As was the 21, 1% for the full year.

Speaker Change: We continue managing through the worst commercial real estate downturn in decades during the quarter, we increased our Cecil reserves associated with our commercial real estate portfolio by $40 million net of charge offs as property values remain at distressed valuations.

Koichiro Yoshizumi: We continue managing through the worst commercial real estate downturn in decades. During the quarter, we increased our CECL reserves associated with our commercial real estate portfolio by $40 million, net of char jobs, as property values remain at distressed valuations. We also foreclosed on two loans, adding them to our real estate owing portfolio. We continue to believe that the current distressed market does not reflect the true, intrinsic value of our portfolio, which is why we are confident in our ability to take ownership of these assets, manage them through the cycle, and maximize our recovery. Our portfolio of first lien senior secure middle market loans continue to perform well, with losses below our expectations for this point in the cycle.

Speaker Change: We also foreclosed on two loans, adding them to our real estate portfolio.

Speaker Change: We continue to believe that the current distressed market does not reflect the true intrinsic value of our portfolio, which is why we are confident in our ability to take ownership of these assets managed them through the cycle and maximize our recoveries.

Speaker Change: Our portfolio of first lien senior secured middle market loans continue to perform well.

Virgil Miller: Our portfolio of First Lien, Senior Secured, and Middle Market loans continued to perform well, with losses below our expectations for this point in the cycle. In our corporate segment, we recorded a pre-tax loss of $4 million. Adjusted net investment income was $153 million higher than last year due to a combination of continued lower volume of tax credit investments, higher rates, and asset balances, which included the impact of the reinsurance transaction in Q4 2024, which was similar in structure and economics in yen terms to our October 2023 transaction. These tax credit investments impacted the corporate net investment income line for US GAAP purposes negatively by $46 million in the quarter, with an associated credit to the tax line. The net impact to our bottom line was a positive $4 million in the quarter. To date, these investments are performing well and in line with our expectations.

Our portfolio of First Lien, Senior Secured, and Middle Market loans continued to perform well, with losses below our expectations for this point in the cycle. In our corporate segment, we recorded a pre-tax loss of $4 million. Adjusted net investment income was $153 million higher than last year due to a combination of continued lower volume of tax credit investments, higher rates, and asset balances, which included the impact of the reinsurance transaction in Q4 2024, which was similar in structure and economics in yen terms to our October 2023 transaction. These tax credit investments impacted the corporate net investment income line for US GAAP purposes negatively by $46 million in the quarter, with an associated credit to the tax line. The net impact to our bottom line was a positive $4 million in the quarter. To date, these investments are performing well and in line with our expectations.

Speaker Change: With losses below our expectations for this point in a cycle.

Speaker Change: In our corporate segment, we recorded a pretax loss of $4 million.

Koichiro Yoshizumi: In our corporate segment, we recorded a pre-tax loss of $4 million. Adjusted net investment income was $153 million higher than last year due to a combination of continued lower volume of tax credit investments, higher rates, and asset balances, which included the impact of the reinsurance transaction in Q4 2024, which was similar in structure and economics in yen terms to our October 2023 transaction. These tax credit investments impacted the corporate net investment income line for U.S. GAAP purposes negatively by $46 million in the quarter with an associated credit to the tax line. The net impact to our bottom line was a positive $4 million in the quarter.

Speaker Change: Adjusted net investment income was $153 million higher than last year.

Speaker Change: Due to a combination of continued lower volume of tax credit investments higher rates and asset balances, which included the impact of the reinsurance transaction in Q4, 2024, which was similar in structure and economics in yen terms to our October 20th twenty-three transaction.

Speaker Change: These tax credit investments impacted our corporate net investment income line for U S. GAAP purposes negatively by $46 million in the quarter with an associate a credit to the tax line.

Speaker Change: The net impact to our bottom line was a positive $4 million in the quarter.

Koichiro Yoshizumi: To date, these investments are performing well and in line with our expectations. Our capital position remains strong, and we ended the quarter with an SMR above 1150%, an estimated ESR above 270%. Our combined RBC, while not finalized, we estimate to be greater than 650%. These are strong capital ratios which we actively monitor, stress, and manage to withstand credit cycles as well as external shocks.

Speaker Change: To date these investments are performing well and in line with our expectations. Our capital position remains strong and we ended the quarter with an S. EMR above 1100, and 50% and estimated ESR about 270%.

Virgil Miller: Our capital position remains strong, and we ended the quarter with an SMR above 1150%, an estimated ESR above 270%. Our combined RBC, while not finalized, we estimate to be greater than 650%. These are strong capital ratios, which we actively monitor, stress, and manage to withstand credit cycles as well as external shocks. US statutory impairments were $3 million, and it was JPY 700 million of Japan FSA impairments in Q4. This is well within our expectations and with limited impact to both earnings and capital. Our leverage was 19.7% for the quarter, which is just below our target range of 20% to 25%. As we hold approximately 60% of our debt in yen, this leverage ratio is impacted by moves in the yen/dollar exchange rate. This is intentional and part of our enterprise hedging program, protecting the economic value of Aflac Japan in US dollar terms.

Our capital position remains strong, and we ended the quarter with an SMR above 1150%, an estimated ESR above 270%. Our combined RBC, while not finalized, we estimate to be greater than 650%. These are strong capital ratios, which we actively monitor, stress, and manage to withstand credit cycles as well as external shocks. US statutory impairments were $3 million, and it was JPY 700 million of Japan FSA impairments in Q4. This is well within our expectations and with limited impact to both earnings and capital. Our leverage was 19.7% for the quarter, which is just below our target range of 20% to 25%. As we hold approximately 60% of our debt in yen, this leverage ratio is impacted by moves in the yen/dollar exchange rate. This is intentional and part of our enterprise hedging program, protecting the economic value of Aflac Japan in US dollar terms.

Speaker Change: Our combined RBC, while not are finalized we estimate to be greater than 650%.

Speaker Change: These are strong capital ratios, which we actively monitor stress and managed to withstand credit cycles as well as external shocks U S statutory impairments were $3 million.

Koichiro Yoshizumi: U.S. statutory impairments for $3 million. And it was 700 million yen of Japan FSA impairments in Q4. This is well within our expectations and with limited impact to both earnings and capital. Our leverage was 19.7% for the quarter, which is just below our target range of 20-25%. As we hold approximately 60% of our debt in Yen, this leverage ratio is impacted by moves in the Yen-Dollar exchange rate. This is intentional and part of our enterprise hedging program, protecting the economic value of Aflac Japan in U.S. dollar terms. Unencumbered holding company liquidity stood at $4.1 billion.

Speaker Change: And it was 700 million yen of Japan, FSA impairments in Q4.

Speaker Change: This is well within our expectations and with limited impact to both earnings and capital.

Speaker Change: Our leverage was 19, 7% for the quarter, which is just below our target range of 20% to 25%.

Speaker Change: As we hold approximately 60% of our debt in yen. This leverage ratio is impacted by moves in the yen dollar exchange rate.

Speaker Change: This is intentional and part of our enterprise hedging program protecting the economic value of Aflac, Japan in U S dollar terms.

Speaker Change: Unencumbered holding company liquidity stood at $4 $1 billion.

Virgil Miller: Unencumbered holding company liquidity stood at $4.1 billion, $2.3 billion above our minimum balance. We repurchased $750 million of our own stock and paid dividends of $277 million in Q4, offering good relative IRR on these capital deployments. We will continue to be flexible and tactical in how we manage the balance sheet and deploy capital in order to drive strong risk-adjusted ROE with a meaningful spread to our cost of capital. On 3 December, we shared estimated ranges for annual key metrics for both segments for 2025 through 2027 at our financial analysts' briefing, and we continue to stand by these ranges.

Unencumbered holding company liquidity stood at $4.1 billion, $2.3 billion above our minimum balance. We repurchased $750 million of our own stock and paid dividends of $277 million in Q4, offering good relative IRR on these capital deployments. We will continue to be flexible and tactical in how we manage the balance sheet and deploy capital in order to drive strong risk-adjusted ROE with a meaningful spread to our cost of capital. On 3 December, we shared estimated ranges for annual key metrics for both segments for 2025 through 2027 at our financial analysts' briefing, and we continue to stand by these ranges.

Koichiro Yoshizumi: 2.3 billion dollars above our minimum balance. We repurchased 750 million dollars of our own stock and paid dividends of 277 million dollars in Q4, offering good relative IRR on these capital deployments. We will continue to be flexible and tactical in how we manage the balance sheet and deploy capital in order to drive strong, risk-adjusted ROE with a meaningful spread to our cost of capital.

Speaker Change: $2 $3 billion above our minimum balance, we repurchased $750 million of our own stock and paid dividends of $277 million in Q4 offering good relative IRR on these capital deployments.

Speaker Change: We will continue to be flexible and tactical in how we manage the balance sheet and deploy capital in order to drive strong risk adjusted ROE with a meaningful spread to our cost of capital on December 3rd we shared estimated ranges for annual key metrics for both segments for 2025 through 2027 at.

Koichiro Yoshizumi: On December 3rd, we shared estimated ranges for annual key metrics for both segments for 2025 through 2027 at our Financial Analysts Briefing, and we continue to stand by these ranges. However, for 2025, we expect the benefit ratio in Japan to be toward the higher end of the 64 to 66% ratio. and we continue to expect the expense ratio to be at the lower end of the 20-23% range as we pursue various growth and strategic initiatives. As a result, we expect the Aflac Japan's pre-tax profit margin to be at the lower end of the 30 to 33 percent range.

Speaker Change: Our financial analyst briefing and we continue to standby. These ranges. However for 2025, we expect the benefit ratio in Japan to be towards the higher end of the 64% to 6% to 6% range.

Virgil Miller: However, for 2025, we expect the benefit ratio in Japan to be toward the higher end of the 64% to 66% range, and we continue to expect the expense ratio to be at the lower end of the 20% to 23% range as we pursue various growth and strategic initiatives. As a result, we expect Aflac Japan's pre-tax profit margin to be at the lower end of the 30% to 33% range. In the US, we expect the benefit ratio for 2025 to be at the lower end of the 48% to 52% range, and the expense ratio to be at the upper end of the 36% to 39% range as we continue to scale new business lines. At the same time, we expect the pre-tax profit margin for 2025 in the US to be at the upper end of the 17% to 20% range.

However, for 2025, we expect the benefit ratio in Japan to be toward the higher end of the 64% to 66% range, and we continue to expect the expense ratio to be at the lower end of the 20% to 23% range as we pursue various growth and strategic initiatives. As a result, we expect Aflac Japan's pre-tax profit margin to be at the lower end of the 30% to 33% range. In the US, we expect the benefit ratio for 2025 to be at the lower end of the 48% to 52% range, and the expense ratio to be at the upper end of the 36% to 39% range as we continue to scale new business lines. At the same time, we expect the pre-tax profit margin for 2025 in the US to be at the upper end of the 17% to 20% range.

Speaker Change: And we continue to expect the expense ratio to be at the lower end of the 20% to 23% range as we pursue various growth and strategic initiatives.

Speaker Change: As a result, we expect the Aflac Japan's pre tax profit margin to be at the lower end of the 30% to 33% range.

Koichiro Yoshizumi: In the U.S., we expect the benefit ratio for 2025 to be at the lower end of the 48 to 52 percent range and the expense ratio to be at the upper end of the 36 to 39 percent range as we continue to scale new business lines. At the same time, we expect pre-tax profit margin for 2025 in the U.S. to be at the upper end of the 17 to 20 percent range.

Speaker Change: In the U S. We expect the benefit ratio for 2025 to be at the lower end of the 48% to 52% range and the expense ratio to be at the upper end of the 36% to 39% range as we continued to scale new business lines at the same time, we expect pretax profit margin for 2020.

Speaker Change: Five in the U S to be at the upper end of the 17% to 20% range.

Virgil Miller: Thank you, and I look forward to discussing our results in further detail on tomorrow's earnings call.

Thank you, and I look forward to discussing our results in further detail on tomorrow's earnings call.

Unknown Executive: Thank you and I look forward to discussing our results in further detail on tomorrow's earnings call.

Speaker Change: Thank you and I look forward to discussing our results in further detail on Tomorrow's earnings call.

Speaker Change: Yeah.

Q4 2024 Aflac Inc Earnings Call - Pre-Recorded

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