Strong Performance in Japan: Aflac Japan reported a remarkable 23.2% year-over-year sales growth, driven largely by the new cancer insurance product, Miraito, which saw a 53% increase in sales. The company is optimistic about sustaining this growth due to its flexible product design, targeting both new and existing customers, and reaping benefits from a more efficient sales and marketing approach.

Financial Results: For Q2 2025, Aflac reported net earnings of $1.11 per diluted share and adjusted earnings of $1.78, with a YOY decline in adjusted earnings of 2.7% due to various factors including remeasurement gains and variable investment income below expectations. However, a solid pretax margin of 32% in Japan and 22.5% in the U.S. indicates robust profitability.

Challenges in the U.S. Market: Aflac U.S. experienced only a 2.7% increase in new sales to $340 million. Sales have been sluggish, and while the company expects stronger growth in the second half of the year, the results thus far have not met initial expectations. The focus on recruiting is essential as there has been flat growth in the career channel sales force.