美國家庭壽險 (AFL) 2025 Q2 法說會逐字稿

Good day, and welcome to the Aflac Incorporated second quarter 2025 earnings call. Please -- please note this event is being recorded. I would now like to turn the conference over to David Young. Please go ahead.

大家好，歡迎參加 Aflac Incorporated 2025 年第二季財報電話會議。請注意——該事件正在被記錄。現在我想將會議交給 David Young。請繼續。

Good morning, and welcome. Thank you for joining us for Aflac Incorporated's second quarter 2025 earnings call. This morning, Dan Amos, Chairman and CEO of Aflac Incorporated, will provide an overview of our results and operations in Japan and the United States. Then Max Broden, Senior Executive Vice President and CFO of Aflac Incorporated, will provide more detail on our financial results for the quarter, current capital and liquidity. These topics are also addressed in the materials we posted with our earnings release, financial supplement and quarterly CFO update on our investors.aflac.com.

早上好，歡迎光臨。感謝您參加 Aflac Incorporated 2025 年第二季財報電話會議。今天上午，Aflac Incorporated 董事長兼執行長 Dan Amos 將概述我們在日本和美國的業績和營運情況。隨後，Aflac Incorporated 高級執行副總裁兼財務長 Max Broden 將詳細介紹我們本季的財務表現、流動資本和流動性。我們在 investors.aflac.com 上發布的收益報告、財務補充和季度 CFO 更新資料中也討論了這些主題。

For Q&A today, we are joined by Virgil Miller, President of Aflac Incorporated and Aflac US; Charles Lake, Chairman and Representative Director, President of Aflac International; Masatoshi Koide, President and Representative Director, Aflac Life Insurance Japan; and Brad Dyslin, Global Chief Investment Officer, President of Aflac Global Investments. Before we begin, some statements in this teleconference are forward-looking within the meaning of federal securities laws. Although we believe these statements are reasonable, we can give no assurance that they will prove to be accurate because they are prospective in nature. Actual results could differ materially from those we discuss today. We encourage you to look at our annual report on Form 10-K for some of the various risk factors that could materially impact our results.

今天的問答環節，我們邀請了 Aflac Incorporated 和 Aflac US 總裁 Virgil Miller、Aflac International 董事長兼代表董事、總裁 Charles Lake、Aflac Life Insurance Japan 總裁兼代表董事 Masatoshi Koide 和 Aflac Global Investments 全球首席投資長兼總裁 Brad Dyslin。在我們開始之前，本次電話會議中的一些聲明在聯邦證券法的定義範圍內具有前瞻性。儘管我們認為這些陳述是合理的，但我們無法保證它們的準確性，因為它們本質上是前瞻性的。實際結果可能與我們今天討論的結果有重大差異。我們鼓勵您查看我們的 10-K 表格年度報告，以了解可能對我們的結果產生重大影響的各種風險因素。

As I mentioned earlier, the earnings release with reconciliations of certain non-US GAAP measures and related earnings materials are available on investors.aflac.com. I'll now hand the call over to Dan. Dan?

如我先前所提到的，包含部分非美國公認會計準則 (GAAP) 指標對帳表的收益報告及相關收益資料可在 investors.aflac.com 上取得。現在我將電話會議交給丹。擔？

Thank you, David, and good morning, everyone. We're glad you joined us. Aflac Incorporated reported net earnings per diluted share of $1.11 and adjusted earnings per diluted share of $1.78 for the second quarter of 2025. We believe that these are solid results for the quarter, leading to a very good first half of the year. Max will expand upon these results in a moment.

謝謝你，大衛，大家早安。我們很高興您加入我們。Aflac Incorporated 公佈 2025 年第二季每股攤薄淨收益為 1.11 美元，調整後每股攤薄收益為 1.78 美元。我們相信本季的業績非常穩健，這將為今年上半年帶來非常好的業績。Max 稍後會詳細說明這些結果。

But before he does, I'd like to comment on our operations. Beginning with Aflac Japan, I am very pleased with Aflac Japan's 23.2% year-over-year sales increase, especially the 53% increase in the cancer insurance sales. These strong sales were driven largely as expected, by sales of our newest cancer insurance product, MRO. They include the final stage of the launch of Japan Post Insurance and Japan Post in April. We also saw positive overall sales growth across all distribution channels.

但在此之前，我想對我們的營運發表評論。從 Aflac Japan 開始，我對 Aflac Japan 銷售額同比增長 23.2% 感到非常高興，尤其是癌症保險銷售額增長了 53%。正如預期的那樣，這些強勁的銷售主要是由我們最新的癌症保險產品 MRO 的銷售所推動的。其中包括 4 月份日本郵政保險和日本郵政推出的最後階段。我們也看到所有分銷通路的整體銷售額均實現正成長。

This positive results also reflects our new marketing and sales structure in Japan that integrates members of the actuarial, IT and policy service into agile teams focused on bringing a specific product line to the market like cancer, medical, asset formation and nursing care. We also continue to introduce the need for the third sector protection to new and younger customers with our innovative first sector product, Sumitas, which has third sector optional benefits.

這一積極成果也反映了我們在日本的新行銷和銷售結構，將精算、IT 和政策服務成員整合到敏捷團隊中，專注於將特定產品線推向市場，如癌症、醫療、資產形成和護理。我們也將繼續透過我們的創新第一部門產品 Sumitas 向新客戶和年輕客戶介紹第三部門保護的必要性，該產品具有第三部門可選福利。

Overall, I believe we have the right strategy to meet our customers' financial protection needs throughout their different life stages. Our ability to maintain strong premium persistency is a testament to our strategy, Aflac's reputation and our customer recognition of the value of our products. By maintaining this level of persistency and adding new premium through sales, we are partially offsetting the impact of reinsurance and policies reaching paid-up status.

總的來說，我相信我們有正確的策略來滿足客戶在不同生命階段的財務保障需求。我們能夠保持強勁的保費持續性，證明了我們的策略、Aflac 的聲譽以及客戶對我們產品價值的認可。透過維持這種持續性水準並透過銷售增加新的保費，我們部分抵消了再保險和保單達到付清狀態的影響。

Maintaining strong persistency will be vital to the future of Aflac Japan. Being where customers want to buy insurance has always been an important element of our growth strategy in Japan. Our broad network of distribution channels, including agencies, alliance partners, banks continually optimize opportunities to help provide financial protection to Japanese consumers. We will continue to work hard to support each channel as we evolve to meet the customers' changing needs.

保持強勁的持久力對於 Aflac Japan 的未來至關重要。出現在客戶想要購買保險的地方一直是我們在日本成長策略的重要組成部分。我們廣泛的通路網絡，包括代理商、聯盟夥伴、銀行，不斷優化機會，協助為日本消費者提供財務保障。我們將繼續努力支援每個管道，並不斷發展以滿足客戶不斷變化的需求。

Turning to Aflac US. We generated $340 million in new sales during the second quarter, which was a 2.7% year-over-year increase. More importantly, we maintained strong premium persistency of 79.2% and increased net earned premium of 3.4%. We continue to see momentum within all areas of our group business, especially our group life and disability as well as our network dental. In addition, we believe our efforts to drive more profitable growth with a stronger underwriting discipline have contributed to our strong premium persistency and net earned premium growth.

轉向 Aflac US。我們在第二季創造了 3.4 億美元的新銷售額，年增 2.7%。更重要的是，我們維持了79.2%的強勁保費持續率，淨保費收入成長了3.4%。我們繼續看到集團業務各個領域的發展勢頭，尤其是團體人壽和殘障保險以及網路牙科。此外，我們相信，我們透過加強承保紀律來推動更多獲利成長的努力，有助於我們實現強勁的保費持續性和淨保費成長。

At the same time, Aflac US has continued its prudent approach to expense management and maintaining a strong pretax margin as Max will expand upon in a moment. In both Japan and the United States, I believe the consumers need the products and solutions Aflac offers more than ever. For our policyholders who've become claimants, Aflac is more than an insurance company. We are a partner in health, a supporter of families during their times of need and a pioneer and leader in the industry.

同時，Aflac US 繼續採取審慎的費用管理方式，並維持強勁的稅前利潤率，Max 稍後將詳細說明。我相信，無論是日本還是美國，消費者都比以往任何時候都更需要 Aflac 提供的產品和解決方案。對於已成為索賠人的保單持有人而言，Aflac 不僅僅是一家保險公司。我們是健康領域的合作夥伴、家庭需要時的支持者以及業界的先驅和領導者。

We are leveraging every opportunity to convey our products can help fill the gap during challenging times, providing not just financial assistance, but also compassion and care. At the same time, we continue to generate strong capital and cash flows while maintaining our commitment to prudent liquidity and capital management. We have been very pleased with our investments, which have continued to produce solid net investment income. As an insurance company, our primary responsibility is to fill the promises we make to the policyholders while being responsive to the needs of our shareholders. Our solid portfolio supports our promise to the policyholders as does our commitment to maintaining strong capital ratios.

我們正在利用一切機會來傳達我們的產品可以幫助填補困難時期的空白，不僅提供經濟援助，還提供同情和關懷。同時，我們繼續產生強勁的資本和現金流，同時保持對審慎的流動性和資本管理的承諾。我們對我們的投資非常滿意，這些投資持續產生可觀的投資淨收益。作為一家保險公司，我們的首要責任是履行對保單持有人的承諾，同時回應股東的需求。我們穩健的投資組合支持了我們對保單持有人的承諾，也支持了我們維持強勁資本比率的承諾。

We balance this financial strength and tactical capital deployment. I am happy with how management has handled capital deployment and liquidity. In the second quarter, Aflac Incorporated deployed $829 million in capital to repurchase 7.9 million shares of our stock and paid dividends of $312 million. Combined with dividends, that means that we delivered $1.1 billion back to the shareholders in the second quarter of 2025. Additionally, we treasure our track record of 42 consecutive years of dividend growth.

我們平衡了財務實力和戰術資本部署。我對管理層處理資本部署和流動性的方式感到滿意。第二季度，Aflac Incorporated 投入 8.29 億美元資金回購 790 萬股股票，並支付 3.12 億美元的股息。加上股息，這意味著我們在 2025 年第二季向股東返還了 11 億美元。此外，我們珍惜連續42年股息成長的紀錄。

At the same time, we have maintained our position among companies with the highest return on capital and the lowest cost of capital in the industry. 2025 marks three important milestones for Aflac. In June, we just celebrated the 30th anniversary of what is now known as the Aflac Cancer and Blood Disorders Center of Children's Healthcare of Atlanta. We look forward to celebrating the 70th anniversary of the company's founding in November. And we also are celebrating the 25th anniversary of the Aflac Duck this year.

同時，我們持續維持業界資本回報率最高、資本成本最低的公司地位。 2025年對Aflac來說標誌著三個重要的里程碑。今年 6 月，我們剛慶祝了現在的亞特蘭大兒童保健 Aflac 癌症和血液疾病中心成立 30 週年。我們期待11月慶祝公司成立70週年。今年我們也將慶祝 Aflac Duck 誕生 25 週年。

Even though these milestones are noteworthy, it's not the number of years that matters most. It's the privilege of benefiting the lives of millions of people we are reminded that one thing has not changed since the founding in 1955, families and individuals still seek to protect themselves from financial hardship that not even the best health care insurance can cover. Today's complex health care environment has produced incredible medical advancements that have come with incredible costs. It's more important than ever for people to have a partner in their time of need. We believe our approach to offering relevant products makes us that partner.

儘管這些里程碑值得注意，但最重要的不是年數。我們很榮幸為數百萬人的生活帶來益處，但我們不禁要記住，自 1955 年成立以來，有一件事從未改變，那就是家庭和個人仍然在尋求保護自己免受經濟困難的影響，而即使是最好的醫療保險也無法彌補這種困難。當今複雜的醫療保健環境帶來了令人難以置信的醫學進步，但也帶來了巨大的成本。當人們需要幫助時，擁有伴侶比以往任何時候都更重要。我們相信，我們提供相關產品的方法使我們成為這樣的合作夥伴。

We also believe in the underlying strengths of our business and our potential for continued growth in Japan and the United States, two of the largest life insurance markets in the world. On an ongoing basis, we are taking actions to reinforce our leading position in building on our momentum. I'll now turn the program over to Max to cover more details of the financial results. Max?

我們也相信我們的業務具有潛在的優勢，並且在日本和美國（世界上最大的兩個壽險市場）具有持續成長的潛力。我們正在不斷採取行動，鞏固我們的領先地位，並繼續保持良好勢頭。現在我將節目交給 Max 來介紹財務結果的更多細節。最大限度？

Thank you, Dan. I will now provide a financial update on Aflac Incorporated's results. For the second quarter of 2025, adjusted earnings per diluted share decreased 2.7% year-over-year to $1.78 with a $0.04 positive impact from FX in the quarter. In this quarter, remeasurement gains on reserves totaled $37 million, reducing benefits. Variable investment income ran at $35 million below our long-term return expectations, while one make whole call generated income of $35 million.

謝謝你，丹。我現在將提供有關 Aflac Incorporated 業績的財務更新。2025 年第二季度，調整後每股攤薄收益年減 2.7% 至 1.78 美元，本季外匯影響為 0.04 美元。本季度，準備金重估收益總計 3,700 萬美元，減少了收益。可變投資收益比我們的長期回報預期低 3500 萬美元，而一次全額贖回產生了 3500 萬美元的收益。

Adjusted book value per share, excluding foreign currency remeasurement, increased 5.2%. The adjusted ROE was 13.7% and 16.4%, excluding foreign currency 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 earned premiums for the quarter declined 4.8% Aflac Japan's underlying earned premiums which excludes the impact of deferred profit liability, paid up policies and reinsurance declined 1.1%.

調整後的每股帳面價值（不包括外幣重估）成長 5.2%。調整後的 ROE 為 13.7%，不包括外幣重估，為 16.4%，與我們的資本成本之間存在可接受的利差。整體而言，我們認為本季的業績穩健。從我們的日本分部開始。本季淨保費收入下降 4.8%，不包括遞延利潤負債、已付保單和再保險的影響，Aflac Japan 的基本保費收入下降 1.1%。

We believe this metric better provides insight into our long-term premium trends. Japan's total benefit ratio came in at 66.5% for the quarter, down 40 basis points year-over-year. The third sector benefit ratio was 57.4% for the quarter, also down approximately 40 basis points year-over-year. We estimate the impact from remeasurement gains to be 83 basis points favorable to the benefit ratio in Q2 2025. Long-term experience trends as they relate to treatments of cancer and hospitalization continue to be in place, leading to continued favorable underwriting experience.

我們相信這個指標能夠更好地洞察我們的長期保費趨勢。日本本季總福利比率為 66.5%，年減 40 個基點。本季第三部門效益率為57.4%，年比也下降約40個基點。我們估計，重估收益的影響將對 2025 年第二季的收益率產生 83 個基點的有利影響。與癌症治療和住院治療相關的長期經驗趨勢持續存在，從而帶來持續良好的承保經驗。

Persistency remained solid at 93.7%, which was up approximately 40 basis points year-over-year, in line with our expectations. Our expense ratio in Japan was 20.6% for the quarter, up 280 basis points year-over-year, driven primarily by an increase in technology expenses. For the quarter, adjusted net investment income in yen terms was down 10.5%, primarily driven by lower floating rate income, the impact of foreign currency on US dollar investments in yen terms and lower variable investment income, somewhat offset by higher call income and higher returns on US dollar fixed rate portfolios.

持續性維持穩定在 93.7%，較去年同期成長約 40 個基點，符合我們的預期。本季我們在日本的費用率為 20.6%，較去年同期上升 280 個基點，主要原因是技術費用增加。本季度，以日圓計算的調整後淨投資收入下降了 10.5%，主要原因是浮動利率收入下降、外幣對以日圓計算的美元投資的影響以及可變投資收入下降，但被更高的贖回收入和美元固定利率投資組合的更高回報所抵消。

The pretax margin for Japan in the quarter was 32%, down 330 basis points year-over-year, but a very good result. Turning to US results. Net earned premium was up 3.4%, and Persistency increased 50 basis points year-over-year to 79.2%. Our total benefit ratio came in at 47.3%, 60 basis points higher than Q2 2024, driven by business mix.

本季日本的稅前利潤率為 32%，年減 330 個基點，但這是一個非常好的結果。轉向美國的結果。淨保費收入上漲 3.4%，持續性年增 50 個基點至 79.2%。受業務組合的推動，我們的總收益比率達到 47.3%，比 2024 年第二季高出 60 個基點。

We estimate that remeasurement gains were in line with a year ago and favorably impacted the benefit ratio by 160 basis points in the quarter as claims have remained below our long-term expectations. In the quarter, we benefited from favorable underwriting on our small but growing long-term disability block. Our expense ratio in the US was 36.3%, down 60 basis points year-over-year, primarily driven by platforms, improving scale and continual focus on expense efficiency. Our growth initiatives, group life and disability, network dental and vision and direct-to-consumer increased our total expense ratio by 70 basis points for the quarter.

我們估計，重估收益與一年前持平，由於索賠金額仍低於我們的長期預期，本季度對福利比率產生了 160 個基點的正面影響。本季度，我們受益於規模雖小但不斷增長的長期殘障保險的有利承保。我們在美國的費用率為 36.3%，較去年同期下降 60 個基點，主要受平台、規模提升和持續關注費用效率的推動。我們的成長計劃、團體人壽和殘障保險、網路牙科和視力保險以及直接面向消費者的計劃使我們本季度的總費用率增加了 70 個基點。

This is in line with our expectations, and we would expect this impact to decrease as we continue to approach scale. Adjusted net investment income in the US was down 5% for the quarter, primarily driven by lower floating rate income. Profitability in the US segment was very strong with a pretax margin of 22.5%, a 20 basis points decline compared with a strong quarter a year ago.

這符合我們的預期，我們預計隨著我們繼續擴大規模，這種影響將會減少。本季美國調整後淨投資收入下降 5%，主要原因是浮動利率收入下降。美國分部的獲利能力非常強勁，稅前利潤率為 22.5%，與去年同期的強勁表現相比下降了 20 個基點。

In our Corporate segment, we recorded a pretax gain of $20 million. Adjusted net investment income was $37 million higher than last year due to a combination of lower volume of tax credit investments and higher asset balances, which included the impact of the internal reinsurance transaction in Q4 of 2024. Our tax credit investments impacted the corporate net investment income line for US GAAP purposes negatively by $8 million in the quarter with an associated credit to the tax line. The net impact to our bottom line was a positive $1 million in the quarter.

在我們的企業部門，我們實現了 2000 萬美元的稅前收益。調整後的淨投資收入比去年高出 3,700 萬美元，原因是稅收抵免投資額減少和資產餘額增加，其中包括 2024 年第四季內部再保險交易的影響。我們的稅收抵免投資對本季度美國 GAAP 的企業淨投資收益線產生了 800 萬美元的負面影響，併計入了稅收線。本季對我們的底線的淨影響為100萬美元。

To date, these investments are performing well and in line with our expectations. Higher total adjusted revenues were offset by higher total benefits and adjusted expenses of $90 million, driven primarily by internal reinsurance activity, higher costs pertaining to business operations and higher interest expense. During the quarter, we raised debt of JPY150 billion, which translates into slightly over $1 billion to prefund our 2026 maturities and to create liquidity and capital flexibility at the parent company. This debt issuance, combined with a significant dividend from Aflac Japan, increased our unencumbered holding company liquidity to $5.1 billion, which is $3.4 billion above our minimum balance. Our capital position remains strong, and we ended the quarter with an SMR above 900% and an estimated regulatory ESR about 240%, following the previously mentioned dividend.

到目前為止，這些投資表現良好，符合我們的預期。調整後總收入的增加被總福利和調整後支出的增加（9000 萬美元）所抵消，這主要歸因於內部再保險活動、與業務運營相關的成本增加以及利息支出增加。在本季度，我們籌集了 1,500 億日圓的債務，相當於略高於 10 億美元的資金，用於預付 2026 年到期的債務，並為母公司創造流動性和資本靈活性。此次債務發行，加上 Aflac Japan 的大量股息，使我們的無抵押控股公司流動資金增加到 51 億美元，比我們的最低餘額高出 34 億美元。我們的資本狀況依然強勁，根據先前提到的股息，本季末我們的 SMR 超過 900%，預計監管 ESR 約為 240%。

While not finalized, we estimate our combined RBC to be greater than 600%. These are strong capital ratios, which we actively monitor, stress and manage to withstand credit cycles as well as external shocks. We repurchased $829 million of our own stock and paid dividends of $312 million in Q2, 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. During the quarter, we increased our CECL reserves associated with our commercial real estate portfolio by $33 million net of charge-offs as property values remain at distressed valuations.

雖然尚未最終確定，但我們估計合併後的 RBC 將超過 600%。這些都是強大的資本比率，我們積極監控、強調並設法抵禦信貸週期以及外部衝擊。我們在第二季度回購了價值 8.29 億美元的自有股票，並支付了 3.12 億美元的股息，這些資本配置提供了良好的相對 IRR。我們將繼續在管理資產負債表和部署資本方面採取靈活和策略性的做法，以推動強勁的風險調整後股本回報率，並顯著提高資本成本。在本季度，由於房地產價值仍處於困境估值，我們將與商業房地產投資組合相關的 CECL 儲備金增加了 3,300 萬美元（扣除沖銷額）。

We also foreclosed on three loans, adding them to our real estate owned portfolio, consistent with our strategy for maximizing recovery values. Our portfolio of first lien senior secured middle market loans continue to perform well with decreased CECL reserves of $23 million in the quarter, net of charge-offs. For US statutory, we recorded a $7 million valuation allowance on mortgage loans as an unrealized loss during the quarter. On a Japan FSA basis, there were no security impairments in Q2, but we did book a net realized gain of JPY70 million related to transitional real estate loans.

我們還取消了三筆貸款，將其添加到我們的房地產自有投資組合中，這符合我們最大化回收價值的策略。我們的第一留置權優先擔保中型市場貸款組合繼續表現良好，扣除沖銷後，本季 CECL 準備金減少了 2,300 萬美元。對於美國法定規定，我們在本季記錄了 700 萬美元的抵押貸款估值準備金作為未實現損失。以日本金融服務管理局 (FSA) 為基礎，第二季沒有出現擔保減值，但我們確實記錄了與過渡性房地產貸款相關的 7,000 萬日圓淨實現收益。

This is well within our expectations and has a limited impact on regulatory earnings and capital. Our leverage was 22.5% for the quarter, which is within our target range of 20% to 25%. As we hold approximately 65% 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.

這完全符合我們的預期，對監理收益和資本的影響有限。本季我們的槓桿率為 22.5%，處於我們的 20% 至 25% 的目標範圍內。由於我們持有的約 65% 債務是日圓，因此該槓桿率會受到日圓兌美元匯率變動的影響。這是我們有意為之，也是我們企業對沖計劃的一部分，旨在以美元計算保護 Aflac Japan 的經濟價值。

I would like to reiterate our approach to managing foreign currency exposure. Fundamentally, we sized our unhedged US dollar exposure to the estimated economic surplus associated with our Japanese business. At the end of Q2, we held $27.1 billion of US dollar assets in our Japan general account, forward contracts at Inc.

我想重申我們管理外匯風險的方法。從根本上來說，我們根據與日本業務相關的預期經濟盈餘來確定未對沖的美元風險。截至第二季末，我們在日本的一般帳戶中持有 271 億美元的美元資產，即 Inc. 的遠期合約。

with a notional balance of $1.9 billion and $5.7 billion of yen-denominated debt. We also hold $25 billion notional of out-of-the-money put options, which provide tail protection against a large appreciation in the yen. Adding this up, we feel we are very well positioned on an economic basis.

名目餘額為19億美元，其中日圓債務為57億美元。我們也持有名義價值 250 億美元的價外看跌選擇權，為日圓大幅升值提供尾部保護。綜合以上這些，我們覺得我們在經濟基礎上處於非常有利的地位。

Thank you. I will now turn the call over to David.

謝謝。現在我將把電話轉給大衛。

Thank you, Max. Before we begin our Q&A, we ask that you please limit yourself to one initial question and a related follow-up. You may then rejoin the queue to ask additional questions. We will now take the first question.

謝謝你，馬克斯。在我們開始問答之前，請您只提出一個初始問題和一個相關的後續問題。然後您可以重新加入隊列以詢問其他問題。我們現在回答第一個問題。

(Operator Instructions)

（操作員指示）

Ryan Krueger, KBW.

瑞安·克魯格（Ryan Krueger），KBW。

My first question was on cancer sales. You obviously had a really nice pickup following the launch of the Morocco product. My question is more on how long you think the benefit from the new product could have on sales, understanding that you tend to get the biggest benefit initially, but do you think you'll continue to see stronger cancer sales for the balance of the year because of the new product launch?

我的第一個問題是關於癌症銷售的。摩洛哥產品推出後，你們顯然取得了非常好的成績。我的問題更多的是，您認為新產品的益處會對銷售產生多長時間的影響，您知道您往往會在最初獲得最大的益處，但您是否認為由於新產品的推出，在今年剩餘時間內，癌症治療藥物的銷售額會繼續保持強勁？

(interpreted) We are feeling the product has got the traction and it is doing very well so far. (inaudible) diverse customers and maintaining high competitiveness. The biggest feature of (inaudible) is its flexible protection design. And normally, the cancer reinsurance offer that other companies were generally offered are offered as one package. So that means even if the policyholder is not requiring particular coverage, it is already included to what they buy.

（翻譯）我們感覺該產品已經獲得了關注，到目前為止表現得非常好。 （聽不清楚）多樣化的客戶並保持較高的競爭力。(聽不清楚)最大的特點是其靈活的防護設計。通常，其他公司提供的癌症再保險優惠都是作為一個套餐提供的。這意味著，即使保單持有人不需要特定的保險，他們購買的保險中也已經包含了該保險。

But when it comes to Aflac Miraito, customers can purchase only the necessary coverage that is how flexible it is designed. So for those who are wishing to have a rich coverage, they can buy a lot of coverage. And for those who already have enough coverage, they can buy a minimum level of coverage. People can purchase the policy in a customized way. That is the biggest characteristic of Miraito. And also Miraito carries the coverage that was not available by Aflac in the past. So that was about the product characteristics.

但對於 Aflac Miraito 來說，客戶可以只購買必要的保險，這就是它的設計彈性。因此，對於那些希望獲得豐富保險的人來說，他們可以購買大量保險。對於那些已經擁有足夠保險的人來說，他們可以購買最低限度的保險。人們可以以客製化的方式購買保險。這就是Miraito最大的特色。此外，Miraito 還提供 Aflac 過去無法提供的保險。這就是關於產品特性的內容。

And along with that, is product carriers are supporting service, which is called (inaudible) cancer consultation service. And this has been developed, thanks to our 50 years of expertise and the relationship with a specialist. And this consultation support is not available outside of Aflac. So that was another characteristic. And therefore, the performance is that at all channels, we are plus year-on-year and also positive versus the plan.

同時，產品載體也提供支援性服務，即所謂的（聽不清楚）癌症諮詢服務。由於我們 50 年的專業知識和與專家的合作關係，我們得以實現這一目標。而這種諮詢支持在 Aflac 之外是無法獲得的。這是另一個特點。因此，所有通路的業績都比去年同期有所成長，並且比計劃有所改善。

So we anticipate the strong performance to continue for the time being and longer than that of the past cancer insurance products. So let me reiterate once again that it has got a traction and it is successful so far. Thank you.

因此，我們預計強勁的表現將持續一段時間，並且比過去的癌症保險產品的表現持續更長。因此，讓我再次重申，它已經獲得了發展動力，並且迄今為止是成功的。謝謝。

And then one separate question on Japan investment income, it seems like even if you make the adjustments for FX, NII and make whole, just that there was seem to be a step-up in the NII in Japan. Can you give a little bit more color on things your trajectory there? And if this quarter is sustainable going forward?

然後是關於日本投資收入的一個單獨問題，似乎即使你對外匯、NII 進行調整並使整體達到目標，日本的 NII 似乎還是有所上升。能否更詳細地介紹一下您的發展軌跡？本季未來能否持續發展？

Sure. Thank you, Ryan. We did have a nice strong second quarter. It was a nice improvement over first quarter. And there were a few things that drove this.

當然。謝謝你，瑞安。我們確實度過了一個強勁的第二季。與第一季相比，這是一個不錯的進步。有幾個因素導致了這一現象。

The largest contributor was our variable NII from our alternatives book. That was about half of the improvement. There's a little bit of seasonality there in second quarter because of the timing of some of the marks we get on fourth quarter comes in a little bit late in the first half of the year. but we also just had better marks on the portfolio overall. There's the make-whole, which you mentioned.

最大的貢獻者是我們替代方案書中的變數 NII。這大約是改進的一半。由於我們在第四季度獲得的一些分數在上半年稍晚一些，因此第二季度存在一些季節性因素。但總體而言，我們在投資組合方面也獲得了更好的分數。這就是您提到的彌補。

That was a nice pickup second quarter over first quarter. And then the rest was a combination of things. We accelerated some deployment. We pulled forward some activity to capture attractive opportunities that we saw in the first half. And then we were quite active in what we call switch trades, where we sold lower yielding JGBs, and we bought current yield JGBs at the current higher yields.

與第一季相比，第二季有了不錯的成長。其餘的事情都是各種因素的綜合作用。我們加快了一些部署。我們提前進行了一些活動，以抓住上半年看到的誘人機會。然後，我們在所謂的轉換交易中非常活躍，我們賣出收益率較低的日本國債，並以當前收益率較高的價格買入當前收益率的日本國債。

And we also swapped into some nice credit assets to pick up yield there. In terms of the outlook for third quarter, we do think you should probably adjust for the make whole, although we had two this year, those are the one-off items that are very difficult for us to predict with any certainty.

我們也換取了一些優質的信貸資產，以獲得收益。就第三季的前景而言，我們確實認為您可能應該根據整體情況進行調整，儘管今年我們有兩個，但這些都是一次性項目，我們很難確定地預測。

On the variable NII, we are optimistic that we'll see a good solid second half of the year. There's a lot of reasons to be optimistic for a pickup there, but that does remain very difficult to predict Q-on-Q. And then the benefit from the acceleration in the switch trade should continue to roll through for the back half of the year. So net-net, we think we're very well positioned for a solid third quarter.

對於變數 NII，我們樂觀地認為今年下半年將會有一個良好且穩健的成長。有很多理由讓我們對那裡的復甦感到樂觀，但環比成長仍然很難預測。然後，轉換貿易加速帶來的好處應該會在今年下半年繼續顯現。因此，總體而言，我們認為我們已經為穩健的第三季做好了充分的準備。

Suneet Kamath, Jefferies.

蘇尼特‧卡馬斯（Suneet Kamath），傑富瑞集團（Jefferies）。

Max, I wanted to ask on ESR for a minute. One of your competitors disclosed their view that some of the companies in Japan are using sort of adjusted metrics that aren't true to the FSAs, I guess, formulas. Just wanted to get your thoughts on that and how you're approaching this ESR as you give us the disclosure every quarter.

馬克斯，我想在 ESR 上問一下。你們的一位競爭對手透露，他們認為日本的一些公司正在使用某種不符合日本金融服務管理局 (FSA) 公式的調整指標。只是想了解您對此的看法，以及您在每個季度向我們披露資訊時如何處理這個 ESR。

Thank you, Suneet. And I'll kick it off and also ask if Steve Beaver in Japan have any comments as well. So ESR overall, you have today three versions of ESR. You have the regulatory ESR, you have the regulatory ESR with USP and we have the internal models. We use the regulatory model with USP.

謝謝你，Suneet。首先我要問日本的史蒂夫比佛是否也有評論。因此，總體而言，目前有三個版本的 ESR。您有監管 ESR，您有符合 USP 的監管 ESR，我們有內部模式。我們使用帶有 USP 的監管模型。

The reason why is because this is what we believe that we should manage to. And that gives us the opportunity to adjust the regulatory model, using risk factors that are specific to our business. And that means that they are more realistic on our business than the regulatory model is. Right now, that gives us roughly an uplift over the regulatory model of about 30 points. And over time, we would hope that there will be an approval of our internal model as well, which obviously is closer to the real economics of the underlying business because they're in the internal model, we would use our full internal experience. So we believe that this is the right approach, and this is the right model to use.

原因在於我們相信這是我們應該做到的。這使我們有機會利用特定於我們業務的風險因素來調整監管模式。這意味著他們對我們的業務比監管模式更現實。目前，這大致使我們的監管模式提高了約 30 個百分點。隨著時間的推移，我們希望我們的內部模型也能得到認可，這顯然更接近基礎業務的實際經濟狀況，因為它們在內部模型中，我們會充分利用我們的內部經驗。因此我們相信這是正確的方法，這是正確的模型。

Okay. That's helpful. And then I guess on the cancer sales, can you just talk about how much of an impact was lapse reissue, if at all, in the quarter? And are you targeting these sales to newer customers? Or are you sort of going back to your in-force customer base and selling the cancer policy?

好的。這很有幫助。然後我想問一下關於癌症銷售，您能否談談失效再發行對本季的影響有多大（如果有的話）？您是否將這些銷售目標鎖定在新客戶身上？或者您要回到現有客戶群並銷售癌症保險？

Let me kick it off on that and Japan might want to give some more color. The early data that we have on labor reissue indicates that we are roughly in line or slightly below our internal expectations. So we have not seen a spike greater than what we normally would expect when we have a refreshed product out in the marketplace as it relates to lapse and reissue.

讓我先從這個主題開始，日本可能會想提供更多細節。我們掌握的有關勞動力再發行的早期數據表明，我們大致符合或略低於我們的內部預期。因此，當我們在市場上推出更新產品時，我們並沒有看到與失效和重新發行相關的峰值超過我們通常預期的峰值。

Now you always have a little bit of an uptick, and that is expected. But so far, the data is indicating that we are in line with our expectations. That there is always a little bit of a lag though, and that means that as we go into the third quarter, we wouldn't be surprised if we see a little bit of an uptick in lapsation.

現在你總是會有一些上升，這是意料之中的。但到目前為止，數據顯示我們符合預期。但總是存在一點點滯後，這意味著當我們進入第三季時，如果我們看到失誤率略有上升，我們不會感到驚訝。

Jason, do you want to take the next question?

傑森，你想回答下一個問題嗎？

(interpreted) Let me answer from the sales perspective from Japan. We are selling both to our existing customers and new customers. And for existing customers, we can offer additional coverage that the policyholders do not have presence. And with this flexible nature of this product, we can develop the new customer base. And one of the characteristics of this Miraito is the plan for children, the premiums are extremely low and they can enroll to this service.

（翻譯）讓我從日本的銷售角度來回答。我們既向現有客戶銷售，也向新客戶銷售。對於現有客戶，我們可以提供保單持有人沒有的額外保險。利用該產品的靈活性，我們可以開發新的客戶群。而這款Miraito的特色之一就是針對兒童的計劃，保費極低，而且兒童也可以加入這項服務。

They can continue enrolling until the children becomes the age of 23. And they can switch the policy into the regular cancer insurance. And this product is gaining a great deal of attention from customers. And we are seeing new enrollment, especially from the younger and middle-aged customers. By leveraging such characteristics that I just mentioned, we anticipate to expand the new expander business to new policyholders in the future, too. Thank you for your question.

他們可以繼續入學，直到孩子年滿 23 歲。他們可以將保單轉換為常規癌症保險。且該產品正受到客戶的廣泛關注。我們也看到了新會員的加入，特別是年輕和中年顧客。透過利用我剛才提到的這些特點，我們預計未來也能將新的擴展業務擴展到新的保單持有人。感謝您的提問。

Jack Matten, BMO.

傑克·馬滕，BMO。

Just one on the remeasurement gains that you've been continuing to see in both Japan and the US I guess given or should we be thinking about any kind of change in your assumptions as part of be unlocking next quarter. And just curious, in Japan, do your assumptions assume kind of further improvement in cancer and hospitalization trends? Or are you already assuming some degree of improvement, but the actual experiences continues to be even better than your expectations?

關於您在日本和美國持續看到的重新計量收益，我想，考慮到或我們應該考慮在下個季度解鎖時對您的假設做出任何改變。我只是好奇，在日本，您的假設是否認為癌症和住院趨勢會進一步改善？或者您已經假設會有某種程度的改進，但實際體驗仍然比您的預期還要好？

So let me just remind you of our policy. So each quarter, we true up the experience in that quarter. And that will then flow through as remanagement gain losses in that reported quarter. And then obviously, in the third quarter of each year, we unlock our actarial assumptions as it relates to our forward-looking assumptions. When we look forward, and I'm going to go back to 2020 -- Q3 of 2024.

因此，請允許我提醒您我們的政策。因此，每個季度，我們都會核實該季度的經驗。然後，這些損失將隨著該報告季度的重新管理收益損失而流出。顯然，每年第三季度，我們都會解鎖與前瞻性假設相關的精算假設。當我們展望未來時，我將回到 2020 年——2024 年第三季。

In our assumptions that we set back then, there is a small improvement in forward-looking trend of hospitalization trends in Japan. It's relatively small, but it is not flat. There is a small, small improvement expected in those assumptions that we incorporated when we set those actuarial assumptions in 2024. And obviously, we will often these assumptions in the next quarter.

在我們當時設定的假設中，日本住院趨勢的前瞻性趨勢略有改善。它相對較小，但並不平坦。當我們在 2024 年設定這些精算假設時，預計這些假設會有小幅改善。顯然，我們通常會在下一季做出這些假設。

Got it. It makes sense. And maybe just one on capital deployment. You're running with, I think, $3.4 billion above your target at the holding company, healthy levels the subs, too. I guess can you just remind us where graphic might be interested in terms of potential M&A.? I don't know if something to accelerate growth in the US group business is a priority. Maybe after M&A, any kind of alternatives that you'd be thinking about in terms of capital deployment?

知道了。這是有道理的。也許只有一個關於資本部署的問題。我認為，控股公司的營運資金比目標高出 34 億美元，子公司的營運資金也處於健康水準。我想您能否提醒我們圖形在潛在的併購方面可能感興趣的內容？我不知道加速美國集團業務成長是否是優先事項。也許在併購之後，您會在資本配置方面考慮任何替代方案嗎？

Well, our philosophy as it relates to capital deployment is that it is a function of the capital generation that we see from the operating companies going forward. the capital that we have at hand and the future capital generation. And then we try to deploy that firsthand into our operations and grow where we can grow at good IRRs. And then we also use capital to extend our business, and that can be evaluating M&A. But that is predominantly lately that has come through as deploying capital back to shareholders through dividends and buybacks, and we believe that we have achieved very good IRRs on those capital deployment actions.

嗯，我們關於資本部署的理念是，它是我們從未來的營運公司看到的資本產生的函數。我們手頭上擁有的資本和未來的資本生成。然後，我們嘗試將其直接部署到我們的營運中，並在能夠以良好的 IRR 實現成長的地方實現成長。然後我們也利用資本來擴展我們的業務，這可以評估併購。但最近主要是透過股息和回購將資本回饋給股東，我們相信我們在這些資本配置行動中取得了非常好的內部報酬率。

Jimmy Bhullar, J.P. Morgan.

摩根大通的吉米·布拉爾 (Jimmy Bhullar)。

So I had a question first on US sales. we thought the business would be growing the last couple of years, but its sales have actually consistently been weaker than expected. I think last year, you were down. This year, they've been positive, but fairly sluggish low single digit. So maybe, Virgil, you could just talk about what's going on in business and just general expectations for sales results over the next year or so?

所以我首先想問美國的銷售情況。我們原以為過去幾年業務會成長，但實際上其銷售額一直低於預期。我認為去年你的狀態很低落。今年，他們的成長勢頭良好，但成長率相當低，僅為個位數。那麼，維吉爾，也許您可以談談目前的業務狀況以及對未來一年左右銷售業績的整體預期？

Yes. Thank you, Jimmy. Let me give a macro view first and just say that we're continuing to take some deliberate actions to drive long-term sustainable value. So some of this is some deliberate intentional actions where we are really looking to get the right type of business that we want on the books. And you can see that when you look at our overall performance for the quarter.

是的。謝謝你，吉米。首先讓我給出一個宏觀的觀點，我們將繼續採取一些深思熟慮的行動來推動長期可持續的價值。因此，其中一些是經過深思熟慮的有意為之的行動，我們確實希望獲得我們想要的正確類型的業務。當您查看我們本季的整體表現時，您會發現這一點。

When you look at our earned premium band up 3.4%, we look at the persistency, we continue to move on that. It was up about 50 basis points for the quarter. But then you look at our expense ratio. Expense ratio is one of the best we've had in about five quarters in a row. I'm really looking at the overall totality.

當您看到我們的已賺保費區間上漲 3.4% 時，我們就會專注於其持久性，並繼續朝著這一方向努力。本季上漲了約 50 個基點。但你看看我們的費用率。費用比率是我們連續五個季度以來最好的比率之一。我確實在看整體情況。

Now the 2.7% increase for the quarter was certainly at the low end of our range. What I'm expecting, Jimmy, is a stronger second half, really driven by four quarter bookings. Our pipeline looks strong. We're seeing good performance in our lab business. We have built a strong reputation there.

現在，本季 2.7% 的增幅肯定處於我們預期範圍的低端。吉米，我預計下半年會表現更強勁，這主要得益於四個季度的預訂量。我們的管道看起來很強大。我們的實驗室業務表現良好。我們在那裡建立了良好的聲譽。

You may have seen a press release we did it recently where we are now taking over with the State of Maine for PML management, just like we're currently doing with a renewal for the state of Connecticut. So we're also pleased with the performance we saw with our dental property. I had mentioned before that we had some operational concerns that we have now overcome strong momentum, double-digit growth in the first half of the year.

您可能已經看到了我們最近發布的新聞稿，我們現在將接管緬因州的 PML 管理，就像我們目前正在為康乃狄克州進行的續約一樣。因此，我們對我們的牙科業務的表現也感到滿意。我之前提到過，我們在營運方面有一些擔憂，但現在我們已經克服了強勁的勢頭，上半年實現了兩位數的成長。

I expect that to continue throughout the second half, and we continue to see a bright spot what our consumer markets are to direct the consumer platform. So all in all, I expect to see a stronger second half, driven really by four quarter enrollment -- our focus will be, though, on recruiting.

我預計這種情況將持續整個下半年，我們將繼續看到消費市場引導消費平台的亮點。總而言之，我預計下半年將會表現得更強勁，這主要得益於前四個季度的招生人數——不過，我們的重點將放在招生上。

We've got to pick it up in our traditional business. That's driven by our career channel. I'm looking to increase. Right now, we're relatively flat for the first half of the year. I'm looking to put up some positive numbers with recruitment, convert those, and they could continue to see the trend that we have a higher productivity that were given out of our feel. So over now, I hope that helps, Jimmy. And just let me know if you have any more questions on that.

我們必須在我們的傳統業務中繼續努力。這是由我們的職業頻道推動的。我希望能夠增加。目前，上半年我們的業績相對穩定。我希望透過招募來獲得一些正面的數字，並將其轉化，這樣他們就可以繼續看到我們擁有更高生產力的趨勢，這是我們所感受到的。所以現在，我希望這能有所幫助，吉米。如果您對此還有其他問題，請告訴我。

No. And just maybe a little bit on the dental product. Has it gotten to what you'd expect to be a normal level of sales for that business? Or is it still -- there's a catch-up related to the platform change?

不。或許還有一點點關於牙科產品的內容。它的銷售量是否達到了您預期的正常水平？或者它仍然是——與平台變化相關的追趕？

Yes. I would tell you, during the second quarter, again, because of the underperformance last year, this -- you have to be careful with the numbers. Now we were up 43%. But again, it's on a small base last year. I will tell you, we're certainly at a high range of my expectations for this year, and I'm expecting that to continue.

是的。我想告訴你，在第二季度，由於去年的表現不佳，你必須小心這些數字。現在我們已經上漲了43%。但同樣，去年的基數較小。我可以告訴你，我們對今年的期望值肯定處於較高水平，而且我希望這種狀態能夠持續下去。

I think it's important, Jimmy, to note that dental and vision is part of the overall strategy we have going forward. So I think it's a number you can look to that we're counting on. We think it because it's the number one -- number two choice among consumers. It's a door opener for us. in the supplemental area by putting it in first.

吉米，我認為重要的是要注意牙科和視力是我們未來整體策略的一部分。所以我認為這是我們所依賴的數字。我們這樣認為是因為它是消費者的首選。這對我們來說是一扇門。首先把它放進補充區域。

So I think monitoring that, you will be important as we believe it is, and we're monitoring it even weekly to see how it's picking up because we're frustrated with some of the issues we had early on and that's that learning curve that you have when you get into things new. And we're glad we're there. We're glad that hopefully all the major issues are behind us and that we'll just see positive going forward with it.

所以我認為監控這一點很重要，正如我們所相信的那樣，我們甚至每週都會監控它，看看它是如何進展的，因為我們對早期遇到的一些問題感到沮喪，這就是你接觸新事物時所經歷的學習曲線。我們很高興能來到這裡。我們很高興，希望所有主要問題都已過去，並且我們只會看到積極的進展。

Elyse Greenspan, Wells Fargo.

富國銀行的伊莉絲‧格林斯潘。

My first question, I guess, is on the expense ratio within Japan. That's trended favorable, I guess, relative to your guide and I think expenses are somewhat typically higher in the back half. So just how are you thinking about that ratio trending from here over the course of the year?

我想我的第一個問題是關於日本的費用率。我想，相對於您的指南而言，這是有利的趨勢，而且我認為後半部分的費用通常會更高一些。那麼您認為這一比例在未來一年內會呈現怎樣的趨勢呢？

So we still expect to be within our guidance range of 20% to 23% for that expense ratio. Obviously, in the first half, we are at the lower end of that range. That includes, obviously, a product refreshment, marketing campaign associated with our cancer launch. So as we look out into the second half, there are some continued technology projects that will continue to drive expenses higher year-over-year. But in terms of the range of 20% to 23%, it would probably be in the middle or lower end of that range.

因此，我們仍然預計該費用率將在 20% 至 23% 的指導範圍內。顯然，在上半年，我們處於該範圍的低端。顯然，這包括產品更新、與我們的癌症產品發布相關的行銷活動。因此，展望下半年，一些持續的技術項目將繼續推動支出年增。但就 20% 到 23% 的範圍而言，它可能處於該範圍的中間或下限。

And then my second question, I guess, goes back to capital. Obviously, elevated holdco cash right now. Is there sort of a time period that you guys would look to take that down? Whether that's organic, inorganic growth as well as repurchases? And how should we think about, I guess, buybacks in the second half of the year? Should we think about that elevated relative to the first half, just given the higher holdco cash?

那麼我想我的第二個問題又回到了資本問題。顯然，現在控股公司的現金增加了。你們希望在某個時間段內將其拆除嗎？這是有機成長、無機成長還是回購？我想，我們該如何考慮下半年的回購呢？考慮到控股公司現金較多，我們是否應該認為這一數字相對於上半年有所上升？

So the timing of it right now, you have a US dollar yield curve that is essentially flat, which means that the so-called, if you can call it, the tax of holding cash right now is not what it used to be. So we're earning a decent yield on that cash. Obviously, the yields are below our cost of equity capital, which means that over time, we would certainly expect to deploy the capital. But the rush to do so is not necessarily there to the same extent that it may have been in the past when yields were much, much lower at the short end of the yield curve.

因此，就目前而言，美元殖利率曲線基本上持平，這意味著所謂的（如果可以這麼稱呼的話）現在持有現金的稅收已經不像以前那麼高了。因此我們從這些現金中獲得了可觀的收益。顯然，收益率低於我們的股權資本成本，這意味著隨著時間的推移，我們肯定會部署資本。但目前的熱潮並不一定像過去殖利率曲線短端低很多時那麼強烈。

So I think we're in a very good spot. In fact, we did intentionally move up in terms of holdco cash this quarter through the debt issuance that we did. This was a debt issuance that we did denominated in yen. We had room for having more yen debt on our balance sheet. That helps with our overall foreign exchange exposure.

所以我認為我們處於非常好的位置。事實上，本季我們確實透過發行債券有意增加了控股公司現金。這是我們以日圓計價的債務發行。我們的資產負債表上還有容納更多日圓債務的空間。這有助於我們的整體外匯風險敞口。

And it also gives us a positive carry, so if you think about our cost of that debt, it's about $230 million, $235 million, and we can invest in low 4s in US dollars right now. So we actually have a positive carry on. So it made sense for us to prefunded those debt maturities and go early. As it relates to deployment going forward, it continues to be our capital deployment process. We will look across the company and the enterprise to look for where we have opportunities to deploy capital at good IRRs that being organically or deploying it into tactically into dividends and buybacks.

它也為我們帶來了正收益，所以如果你考慮我們的債務成本，它大約是 2.3 億美元、2.35 億美元，我們現在可以以低於 4 美元的價格進行投資。所以我們實際上有一個積極的進展。因此，我們提前為這些債務到期提供資金並儘早行動是合理的。因為它與未來的部署有關，所以它仍然是我們的資本部署流程。我們將縱觀整個公司和企業，尋找機會以良好的內部收益率部署資本，無論是有機部署還是戰術部署到股息和回購。

Tom Gallagher, EVERCORE ISI.

湯姆·加拉格爾，EVERCORE ISI。

One on Japan sales and then a follow-up on ESR. So I guess my question is JPY21 billion sales, that's -- if I annualize that we're back to pre-pandemic levels now. I don't want to get ahead of ourselves here. It was one very good quarter. But can you provide some perspective on how you're viewing this?

一個是關於日本銷售，另一個是關於 ESR 的後續報導。所以我想我的問題是 210 億日圓的銷售額，如果我以年率計算，我們現在已經回到了疫情前的水平。我不想在這裡超越自己。這是一個非常好的季度。但是您能否提供一些您對此的看法？

I mean do you think there was a big kind of onetime benefit? Or do you think we might see a higher level of sales sustained here for a while? Because the other thing I noticed was your Sumitas product also held up. Normally, when you see a new product launch like the cancer product, you see a falloff of some of the other products, but you do seem to -- there's some sustainability in the Sumitas as well. But anyway, main question on all of that is where do you see -- do you think it's sustainable?

我的意思是，您認為這會帶來很大的一次性好處嗎？或者您認為我們可能會看到這裡的銷售水平在一段時間內保持在較高水平？因為我注意到的另一件事是您的 Sumitas 產品也表現出色。通常，當你看到像抗癌產品這樣的新產品推出時，你會看到其他一些產品的銷量下降，但你似乎確實看到——Sumitas 也具有一定的可持續性。但無論如何，所有這一切的主要問題是您如何看待它——您認為它是可持續的嗎？

And if so, what does it mean for premium revenue growth? Is it a game changer? Or is it too early to tell whether we might start to see a flattening out or actually improvement or growth on earned premium in '26, '27 from what you're seeing right now?

如果是這樣，這對保費收入成長意味著什麼？這會改變遊戲規則嗎？或者從您現在看到的情況來看，現在判斷 26 年、27 年我們是否會開始看到保費收入趨於平穩、實際上有所改善或增長還為時過早嗎？

(interpreted) Thank you for your question. This is Yoshizumi, in charge of sales. Yes, we are aiming to make a recovery to the level of pre-COVID in terms of sales. And one of the initiatives in order to further increase our sales is to focus on the cancer reinsurance Miraito, which is doing very well so far. We will be continuing to make effort throughout the channel.

（翻譯）感謝您的提問。我是負責銷售的吉住。是的，我們的目標是將銷售額恢復到疫情前的水平。為了進一步提高我們的銷售額，我們的舉措之一是專注於癌症再保險 Miraito，到目前為止，這項業務表現非常良好。我們將繼續在整個管道上做出努力。

And Sumitas, which is supporting that sale. And Sumitas is also maintaining a certain level of sales. And the Sumitas also being successful means that there is a positive contribution to the third sector products. We are not recommending distributors to offer or sell Sumitas on a stand-alone basis. We instruct and train them so that they will always offer together with the third sector product when they sell Sumitas.

Sumitas 正在支持此次銷售。而Sumitas的銷量也維持著一定的水準。而 Sumitas 的成功也意味著對第三部門產品做出了積極的貢獻。我們不建議經銷商單獨提供或銷售 Sumitas。我們對他們進行指導和培訓，以便他們在銷售 Sumitas 時始終能夠同時提供第三部門的產品。

And with that effort, not only Sumitas but also the third sector sales is growing. And about the medical insurance, a competition is very intensified in this market. And the medical insurance sales is yet to reach to an expected level. However, any new product requires regulatory approval, but we expect to launch a new medical product within a year, which will carry the similar characteristic with Miraito.

透過這樣的努力，不僅住田的銷售額在成長，第三部門的銷售額也在成長。而醫療保險這個市場的競爭也非常激烈。而醫療保險的銷售還未達到預期的水準。然而，任何新產品都需要監管部門的批准，但我們預計將在一年內推出新的醫療產品，其特性將與 Miraito 類似。

And another point about the channel. Our main state channel associated channel. And associated channels are doing very well, and their sales are growing. And from two years ago, we started an effort to reinforce our solicitors. And last year, we hired 1,100 agents. And this year, we are trying to be at the same level or more. Of course, a number of agents will have an impact to our productivity.

還有關於渠道的另一點。我們的主要狀態通道關聯通道。相關通路表現也很好，銷售額也在成長。從兩年前開始，我們就開始努力加強我們的律師團隊。去年，我們僱用了 1,100 名代理商。今年，我們力爭達到相同或更高的水準。當然，代理商數量多會對我們的生產力產生影響。

And also about the organization. In this January, we have brought out a major marketing and sales transformation. Led by the new chief marketing officer, we are working in a data-driven methodology and those are conducting an end-to-end initiative with agility. With this all in mind, we expect that we reach to the pre-COVID level as early as possible. So I am confident that the 2025 sales will exceed that of 2024. That's all. Thank you for your question.

還有關於組織的情況。今年一月，我們進行了重大的行銷和銷售轉型。在新任行銷長的領導下，我們採用數據驅動的方法，並靈活地進行端到端計畫。考慮到這一切，我們期望能夠儘早達到疫情之前的水準。因此我有信心2025年的銷售量將超過2024年的銷售量。就這樣。感謝您的提問。

Do you want to go ahead and add?

您想繼續添加嗎？

Well, I was just going to say that. Just Tom, keep in mind that our forward guidance for earned premium still remains negative 1% to negative 2% for the guidance period. Obviously, we're very encouraged by the launch of Miraito. And in Q2, we were down on earned premium by 1.1%. So it's certainly pushing us towards the lower end of that range.

嗯，我正想這麼說。湯姆，請記住，在指導期內，我們對已賺保費的前瞻性指導仍保持為負 1% 至負 2%。顯然，Miraito 的推出讓我們感到非常鼓舞。而在第二季度，我們的已賺保費下降了 1.1%。因此，這肯定會將我們推向該範圍的低端。

But clearly, we still remain in negative territory. SP1 But I want to say that as I've been watching Japan all these years, there was a shift, in my opinion, in marketing and sales in terms of the job that they are doing. They are doing a better job overall than they were doing 1.5 years ago. And they had a wake-up call when we saw the stock drop a little bit and we had some discussions about it and things pick back up. And I think as we said just a minute ago, we had a new director of marketing.

但顯然，我們仍然處於負面領域。SP1 但我想說的是，這些年來我一直在關注日本，我認為，就他們所做的工作而言，行銷和銷售發生了轉變。整體而言，他們做得比一年半前更好。當我們看到股票價格略有下跌時，他們就警醒了，我們對此進行了一些討論，情況又回升了。我想正如我們剛才所說，我們有一位新的行銷總監。

The Miraito product is different in that their outside forces that are helping us with people on how to deliver the product and to make sure they've got abilities to talk to people and work through processes from doctors to whatever it might be. It's just a little bit of a shift. I don't think we know exactly how long or what. But my sense is it is -- we are better today than we have been in a long time, and we are prepared. And the Marita product is also doing very well for us and is bringing on younger people, which is one of the things we hope would happen, and that has been reinforced that it has helped and will continue to help.

Miraito 產品的不同之處在於，他們的外部力量正在幫助我們與人們溝通如何交付產品，並確保他們有能力與人們交談並完成從醫生到任何人的流程。這只是一點小小的轉變。我認為我們不知道具體要多久或什麼。但我的感覺是——我們今天的情況比很長一段時間以來都要好，而且我們已經準備好了。Marita 產品對我們來說也表現非常出色，吸引了更多年輕人，這也是我們希望發生的事情之一，事實證明它已經有所幫助，並將繼續提供幫助。

Saying that, as [Mac] said, we are cautious about the number change because it's such a big number to move. But all in all, I think we're writing better business and we're growing, and we'll just have to monitor it going forward. But I am -- I give them kudos for the job that they've done in terms of picking back up the pace and turning things around.

正如 [Mac] 所說，我們對數字的變化持謹慎態度，因為這個數字的變化幅度太大了。但總而言之，我認為我們正在創造更好的業務，我們正在成長，我們只需要監控它的發展。但我——我對他們加快步伐和扭轉局面所做的工作表示讚賞。

Just one quick follow-up on ESR, if I could. Max, are you managing to $170 million to $230 million, including the internal modeling benefits? Or should I knock 30 points off of that until you get the FSA to approve those? So in other words, is the real number for now $210 million plus, which would put you in the middle of your range? Or are you still well in excess of your range that you're managing to? I just want to understand how you're thinking about that.

如果可以的話，我只想快速跟進 ESR。馬克斯，你能否達到 1.7 億到 2.3 億美元，包括內部建模收益？或者我應該從中扣除 30 分直到獲得 FSA 批准？那麼換句話說，現在的實際數字是否為 2.1 億美元以上，這會使您處於範圍的中間位置嗎？或者您仍然遠遠超出了您所能管理的範圍？我只是想了解你對此有何看法。

Yes. So the range is based with our -- including of our USP. So the $170 million to $230 million includes the USP, and that's what we obviously are managing towards.

是的。因此，範圍取決於我們的——包括我們的 USP。因此，1.7 億到 2.3 億美元包括 USP，這顯然是我們正在努力實現的目標。

John Barnidge, Piper Sandler.

約翰·巴尼奇、派珀·桑德勒。

My question is on the distribution for the Miraito product. Was it completely rolled out in totality by the end of 2Q '25 for all distribution that will be selling it?

我的問題是關於 Miraito 產品的分銷。到 2025 年第二季末，所有銷售該產品的經銷商是否已全面推出該產品？

(interpreted) Let me take that question. Do you mean that whether we are rolling out to all channels? This is to confirm your question.

（翻譯）讓我來回答這個問題。您的意思是我們是否會向所有管道推出？這是為了確認您的問題。

Whether it's been rolled out to all channels that it's planned to be rolled out to by the end of the second quarter?

它是否已經推廣到計劃於第二季末推廣的所有管道？

(interpreted) So the answer is yes to that question. We launched Miraito on March 17. And for bank channel in Japan Post, we have started to offer this in April. So it is available at all channels now by launching in March and also in April.

（解釋）所以這個問題的答案是肯定的。我們於 3 月 17 日推出了 Miraito。對於日本郵政的銀行管道，我們已於四月開始提供此項服務。因此，它將於三月和四月推出，現已在所有管道推出。

Great. And then my follow-up question, how do you think about the frequency with needing to refresh products, now that you're trying to bundle products and solutions together? Is it an annual and every other year cycle? I'm asking maybe in relation to the product that you introduced in late last year that hold quite well. How should we be thinking about the refresh cycle for that?

偉大的。然後我的後續問題是，既然您嘗試將產品和解決方案捆綁在一起，您如何看待需要更新產品的頻率？是每年或每隔一年一個週期嗎？我問的問題可能與您去年年底推出的、銷售良好的產品有關。我們應該如何考慮其更新周期？

(interpreted) For cancer insurance, the cycle is in three years. And for medical insurance, the refresh cycle in two years. And the prerequisite is to get the FCC approval.

(解釋) 癌症保險的週期是三年。而對於醫療保險來說，更新周期為兩年。而前提條件是要獲得FCC的批准。

Wes Carmichael, Autonomous Research.

韋斯·卡邁克爾，自主研究。

I had one follow-up on the ESR again. Max, you confirmed using the USP this undertaking specific parameter and that adding about 30 points I guess, can I just get maybe a little bit of color on what that USP adjustment is in your view of the likelihood and timing of that? And then, I guess, separately, the internal model you mentioned, is that time line a few years down the road? Or how should we think about that?

我再次對 ESR 進行了一次跟進。馬克斯，您確認使用 USP 這項特定參數，並且我猜增加了大約 30 個點，我能否從您的角度來看 USP 調整的可能性和時間安排，稍微解釋一下？然後，我想，另外，您提到的內部模型，時間軸是幾年後嗎？或者我們該如何思考這個問題？

Yes. So just to remind everybody, the USP gives an uplift of about 30 points. We do expect to have that approved by March 31, 2026, or very shortly thereafter. Again, we think we're in a very good shape in order to have all of those approvals done. So that's why we feel confident that we can continue to manage and report out based on these metrics.

是的。因此，僅提醒大家，USP 可提高約 30 個百分點。我們確實希望在 2026 年 3 月 31 日或之後不久獲得批准。再次強調，我們認為我們目前的狀態非常良好，能夠完成所有這些批准。因此，我們有信心能夠繼續根據這些指標進行管理和報告。

As it relates to the full internal approval of -- sorry, full approval of our internal model, I think we will have something similar to the rollout of Solvency II where it will take some time until that is the case. And that is why we have chosen to -- even though we obviously produce, and we also use it for management decisions our internal model today already. We will not report out on the internal model that has been approved. And I think we're quite some time away from that.

由於這涉及到完全內部批准 - 抱歉，是完全批准我們的內部模型，我認為我們將會推出類似於 Solvency II 的方案，但這需要一些時間才能實現。這就是為什麼我們選擇——儘管我們顯然已經生產了它，並且我們也已經將它用於管理決策，這是我們今天的內部模型。我們不會報告已經批准的內部模型。我認為我們距離這個目標還有相當長一段時間。

Got it. That's helpful. And maybe just a macro question on Japan. But we've obviously seen long JGB rates march pretty significantly higher this year. Seen a bit in strengthening, even if that's reversed a little bit, I guess, more recently. But just curious, overall, on your view of first sector savings products in this environment, is the macro changing that either at the margin or materially your appetite to sell additional products outside of the sector?

知道了。這很有幫助。也許只是一個關於日本的宏觀問題。但我們顯然看到今年日本長期公債利率大幅上升。我想，最近情況有所好轉，儘管有所逆轉，但還是有所加強。但我只是好奇，總的來說，在這種環境下，您對第一部門儲蓄產品的看法是，宏觀因素是否會在邊際或實質上改變您在該部門之外銷售其他產品的興趣？

Well, let me make first a comment and then I'll let like Japan will also comment on it. But clearly, higher yen yields is good for our yen-denominated savings products and especially at the long end of the curve. Keep in mind that what we are selling is a product that is priced off of the long end of the curve, a lot of the savings products that goes into retirement accounts being sold by banks, asset managers, et cetera, they price their products from the short end of the curve. So with the steepening of the yield curve, it creates an advantage for life insurance companies to manufacture and sell long duration yen-denominated products. So from that standpoint, what we've seen recently in the market is beneficial for our products.

好吧，首先讓我發表評論，然後讓日本也發表評論。但顯然，日圓收益率上升對我們的日圓計價儲蓄產品有利，尤其是對長期產品而言。請記住，我們銷售的產品是根據曲線的長端定價的，而銀行、資產管理公司等出售的許多進入退休帳戶的儲蓄產品都是根據曲線的短端定價的。因此，隨著殖利率曲線的變陡，人壽保險公司製造和銷售長期日圓計價產品將具有優勢。因此從這個角度來看，我們最近在市場上看到的情況對我們的產品有利。

(interpreted) This is Koide speaking from Aflac Japan. Let's Japan side comment a little bit. Financial markets are stabilizing and recovering from the yen shop appreciation in stock prices declined in early April. Additionally, after the late July announcement of the agreement reached in the US-Japan tariff and trade negotiations, house prices have risen to a near record high.

（翻譯）我是來自 Aflac Japan 的 Koide。請日方稍微評論一下。金融市場正在穩定，並從4月初日圓升值和股價下跌中復甦。此外，7月下旬美日關稅及貿易談判達成協議後，房價已升至接近歷史高點。

However, uncertainly related to US trade policies centered on high tariffs continue. As the implications for exports and global production becomes clearer, we will closely monitor potential risk to the domestic economy, particularly regarding household income and consumer sentiment along with the possibility of further market volatility. And as regards to the impact of asset formation products. With uncertainty and volatility in the markets, customers may look towards Sumitas, which offer a stable yen-denominated long-term fixed rate asset formation.

然而，以高關稅為中心的美國貿易政策的不確定性仍然存在。隨著對出口和全球生產的影響變得更加清晰，我們將密切監測國內經濟的潛在風險，特別是家庭收入和消費者情緒以及進一步市場波動的可能性。以及關於資產形成產品的影響。由於市場存在不確定性和波動性，客戶可能會考慮 Sumitas，該公司提供穩定的日圓計價長期固定利率資產。

This will also mean that this dynamic may drive competitors to consider offering similar products to Sumitas, which will contribute to increased competition. We regularly monitor interest rate and competitive environment trends and are prepared to revise premiums in an azure manner. With this agility manner, we have decided to revise the premium rate for Sumitas, and we will continue to quickly monitor the trends in the financial market and respond promptly as needed. That's all.

這也意味著這種動態可能會促使競爭對手考慮提供與住田類似的產品，從而加劇競爭。我們定期監控利率和競爭環境趨勢，並準備以合理的方式修改保費。本著這種敏捷的方式，我們決定修改住田的保費率，我們將繼續快速監控金融市場的趨勢並根據需要迅速做出反應。就這樣。

Wilma Burdis, Raymond James.

威爾瑪伯迪斯、雷蒙詹姆斯。

Was there any pause in US sales due to the data breach that happened in the quarter?

由於本季發生的資料外洩事件，美國的銷售是否暫停了？

This is Virgil. No, we saw no impact. We are not seeing anything material that comes to operational to our financials. We are operational currently and continue to service our customers.

這是維吉爾。不，我們沒有看到任何影響。我們沒有看到任何對我們的財務產生重大影響的重大事件。我們目前正在營運並繼續為客戶提供服務。

Okay. And some of your competitors have afforded higher claims due to the increasing cost of cancer treatments. Is it correct that Aflac wouldn't be exposed to this type of inflation due to the fixed benefit nature of the products? And could this increase the attractiveness of the product, given expensive but effective treatments are becoming more widely available?

好的。由於癌症治療費用不斷上漲，您的一些競爭對手也提出了更高的索賠要求。由於產品的固定收益性質，Aflac 不會受到這種通貨膨脹的影響，對嗎？鑑於昂貴但有效的治療方法越來越普及，這是否會增加產品的吸引力？

Yes. Wilma, as you pointed out, we are primarily exposed to frequency of cancer diagnosis, not necessarily the severity of treatments or cost of treatment. They tend to fall on the primary insurance coverage that policyholders have our car products are supplemental and because we sell our products with predefined benefits with premiums that do not increase over the for the lifetime of the policy. That means that we are not necessarily exposed to the inflation risk and, therefore, the severity that some other insurance companies that sell other types of health insurers are seeing.

是的。威爾瑪，正如你所指出的，我們主要關注的是癌症診斷的頻率，而不一定是治療的嚴重程度或治療費用。它們往往屬於投保人的主要保險範圍，我們的汽車產品是補充性的，因為我們銷售的產品具有預先定義的福利，而且保費在保單有效期內不會增加。這意味著我們不一定會面臨通貨膨脹風險，因此也不會面臨其他一些銷售其他類型健康保險的保險公司所面臨的嚴重風險。

Well, one of the things that we do carry out is when we revamp or change our new product, we take into account any new treatments that are out there to make sure we're paying for those particular treatments if possible, that are approved by the American Medical Association and whatever. So as these new things are coming, we're updating our policies and allowing them to buy it if they want to buy the additional coverage for that. So that's very important. And that's how go back and rework our accounts and add additional business to that by taking care of that. What people ask me, what if you find a cure for cancer?

嗯，我們確實要做的事情之一是，當我們改進或改變我們的新產品時，我們會考慮任何新的治療方法，以確保我們盡可能支付那些特定的治療方法的費用，這些治療方法得到了美國醫學協會的批准。因此，隨著這些新事物的出現，我們正在更新我們的政策並允許他們購買，如果他們想要購買額外的保險的話。所以這非常重要。這就是如何回過頭來重新處理我們的帳戶，並透過處理這個問題來增加額外的業務。人們問我，如果找到了治療癌症的方法會怎麼樣？

And my answer is they're finding cures every day for cancer, but it's the treatment of those cures that we have to cover. And that's what we do in our business and want to continue to do going forward.

我的回答是，他們每天都在尋找治療癌症的方法，但我們必須涵蓋這些治療方法。這就是我們在業務中所做的事情，並且我們希望繼續這樣做。

Alex Scott, Barclays.

巴克萊銀行的亞歷克斯·斯科特。

I wanted to ask about the larger dividend out of Japan. -- it seemed more significant this quarter. I just wanted to see if any -- is there anything underlying that's kind of changing the dividend policy there? And does it have any impact on appetite for reinsurance, the way that you guys have done towards the end of the year and just decision-making around that?

我想詢問一下日本的更大股息——本季似乎更為重要。我只是想看看是否有任何潛在因素會改變那裡的股利政策？這是否會對再保險的需求產生影響，就像你們在年底所做的那樣，以及圍繞再保險做出的決策？

Yes. Alex, there's really no change in either the appetite for reinsurance or dividend policy here. It's primarily a function of very strong regulatory FSA results. And we closed the books for the fiscal year of 2025 on March 31, 2025. And because of those strong results, we then pay the final dividend in Q2 of 2026 as a function of that. So it's really a function of very strong results that we had in the previous year on an FSA earnings basis.

是的。亞歷克斯，這裡的再保險需求或股息政策實際上沒有改變。這主要得益於 FSA 強而有力的監管結果。我們已於 2025 年 3 月 31 日結清了 2025 財年的帳目。由於這些強勁的業績，我們將在 2026 年第二季支付末期股息。因此，這實際上得益於我們去年在 FSA 收益基礎上取得的非常強勁的業績。

Got it. Okay. That's helpful. And then maybe my last one on some of the things you're doing to invest in digitization in Japan, just if can you comment a little bit more about that. Is that something that can be sped up just given, I think, the more advanced tools using AI around some of the things you need to take policy forms and maybe digest them into a system, et cetera?

知道了。好的。這很有幫助。然後，也許這是我最後一個問題，關於您在日本投資數位化方面所做的一些事情，您能否對此發表更多評論。我認為，是否可以透過使用更先進的人工智慧工具來加快這一進程，以處理您需要採取的政策形式並將其消化成系統等等？

(interpreted) This is Koide from Aflac Asia. We're working on the two areas under digital transformation. One area is to improve the customer experience value. We are providing various types of digital services to our customers, associates and our employees. So therefore, we're making sure to incorporate the new GenAI.

（翻譯）我是 Aflac Asia 的 Koide。我們正在致力於數位轉型的兩個領域。一個領域是提高客戶體驗價值。我們為客戶、合作夥伴和員工提供各種類型的數位服務。因此，我們確保融入新的 GenAI。

And this GenAI is making a great deal of contribution, not only to our employees, but also to part of our associates, and they use this tool to improve their productivity. And just from this month, we have started to roll out the digital human avatar services to respond to part of the inquiries sent from our customers. We believe this service will increase the overall customer experience or services as this human avatar will be able to respond to customers' inquiries 24/7.

而且這個 GenAI 不僅對我們的員工，而且對我們的部分同事都做出了巨大的貢獻，他們使用這個工具來提高他們的工作效率。而就在本月，我們開始推出數位人類化身服務來回應部分顧客發出的詢問。我們相信這項服務將提高整體客戶體驗或服務，因為這個人類化身將能夠全天候回應客戶的詢問。

Another point is to -- is regarding the operation efficiency improvement by utilizing the DX. And we are now moving ahead of our original schedule in terms of the implementation of the GenAI and its evolvement.

另一點是關於利用 DX 提高營運效率。目前，我們在 GenAI 的實施及其發展方面已經比原計劃提前了。

For the policy administration services, when the operation expand, we had to increase the resources or costs. However, along with the utilization of DX, even if the operation expands, we do not increase the people as the DX will do the job by itself. So this will contribute to our cost reduction. That's all for me.

對於政策管理服務，當業務擴大時，我們不得不增加資源或成本。但是，隨著DX的利用，即使業務擴大，也不必增加人員，因為DX可以自行完成工作。這將有助於我們降低成本。對我來說就這些了。

This concludes our question-and-answer session. I would like to turn the conference back over to David Young for any closing remarks.

我們的問答環節到此結束。我想將會議交還給 David Young 做最後發言。

Thank you, and thank you all for joining us today. We hope that you will reach out to us if you have any follow-up questions, and we look forward to talking to you then. Have a great rest of your day.

謝謝大家，也謝謝大家今天的到來。如果您有任何後續問題，我們希望您與我們聯繫，我們期待與您交談。祝您今天剩餘的時間過得愉快。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。