Aflac (AFL) risk factors: FY2025 10-K

1. Investment and Markets Risk Factors
2. Difficult conditions in global capital markets and the economy could have a material adverse effect on the Company's investments, capital position, revenue, profitability, and liquidity and harm the Company's business.
3. Defaults, downgrades, widening credit spreads or other events impairing the value of the fixed maturity securities and loan receivables in the Company's investment portfolio may reduce the Company's earnings and capital position.
4. The Company is exposed to significant interest rate risk, which may adversely affect its results of operations, financial condition and liquidity.Interest rates
5. The Company's concentration of business in Japan poses risks to its operations and financial condition.
6. Lack of availability of acceptable Japanese yen-denominated investments could adversely affect the Company's results of operations, financial position or liquidity.reworded
7. The Company is exposed to foreign currency fluctuations in the yen/dollar exchange rate.
8. The valuation of the Company's investments and derivatives includes methodologies, estimations and assumptions that are subject to differing interpretations and could result in changes to investment valuations that may adversely affect the Company's results of operations or financial condition.
9. The determination of the amount of expected credit losses recorded on the Company's investments is based on significant valuation judgments and could materially impact its results of operations or financial position.
10. Any decrease in the Company's financial strength or debt ratings may have an adverse effect on its competitive position and access to liquidity and capital.
11. A decline in the creditworthiness of other financial institutions could adversely affect the Company.

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1. Sales of the Company's products and services are dependent on its ability to attract, retain and support a network of qualified sales associates, brokers and employees in the U.S. and sales associates and other distribution partners in Japan.
2. If future policy benefits, claims or expenses exceed those anticipated in establishing premiums and reserves, the Company's financial results would be adversely affected.
3. The success of the Company's business depends in part on effective information technology systems, on continuing to develop and implement improvements in technology, and on successful execution of revenue growth and expense management initiatives.
4. Interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems, could harm the Company's business.
5. As a holding company, the Parent Company depends on the ability of its subsidiaries to transfer funds to it to meet its debt service and other obligations and to pay dividends on its common stock.
6. The Company's risk management policies and procedures may prove to be ineffective and leave the Company exposed to unidentified or unanticipated risk, which could adversely affect the Company's businesses or result in losses.
7. The use of third-party vendors to support the Company's operations makes the Company susceptible to the operational risk of those third parties, which could lower revenues, increase costs, reduce profits, disrupt business, or damage the Company’s reputation.

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1. Tax rates applicable to the Company may change.
2. If the Company fails to comply with restrictions on customer privacy and information security, including taking steps to ensure that its third-party service providers and business associates who access, store, process or transmit sensitive customer information maintain its security, integrity, confidentiality and availability, the Company's reputation and business operations could be materially adversely affected.
3. Extensive regulation and changes in legislation can impact profitability and growth.

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1. Competition could adversely affect the Company's ability to increase or maintain its market share or profitability.
2. Catastrophic events could adversely affect the Company's financial condition and results of operations as well as the availability of the Company’s infrastructure and systems.reworded
3. Events, including those external to the Company's operations, could damage the Company's reputation.
4. The Company depends heavily on key management personnel, and the loss of services of one or more of its key executives could harm the Company's business.
5. Changes in accounting standards issued by the Financial Accounting Standards Board (FASB) or other standard-setting bodies may adversely affect the Company's financial statements.
6. The Company faces risks related to litigation, regulatory investigations and inquiry and other matters.
7. Allegations or determinations of agent misclassification could adversely affect the Company’s results of operations, financial condition and liquidity.

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