AFLAC Incorporated

Good morning and welcome to the AFLAC Incorporated first quarter 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to David Young, Vice President of Investor and Ratings Agency Relations and ESG. Please go ahead.

Thank you, Andrea. Good morning and welcome. This morning we will be hearing remarks about the quarter related to our operations in Japan and the United States from Dan Amos, Chairman and CEO of Aflac Incorporated. Fred Crawford, President and COO of Aflac Incorporated, is joining us from Japan and will touch briefly on conditions in the quarter and discuss key initiatives. And Brad Bisland, Global Chief Investment Officer, President of Aflac Global Investments, will discuss the investment portfolio and its positioning given recent market events and volatility. Yesterday, after the close, we posted our earnings release and financial supplement to investors.aflac.com. Under financials in the menu of that site, we also posted several slides of investment details related to our bank, commercial real estate, and middle market loan exposure. In addition, Max Brodin, Executive Vice President and CFO of Aflac Incorporated, provided his quarterly video update addressing our financial results and current capital and liquidity. Max will be joining us for the Q&A segment of this call along with the following members of our executive management in the US. The following, Virgil Miller, President of Aflac US, Al Ruggieri, Global Chief Risk Officer and Chief Actuary, June Howard, Chief Accounting Officer, and Steve Beaver, CFO of Aflac US. We are also joined by members of our executive management team at Aflac Life Insurance Japan. Charles Blake, Chairman and Representative Director, President of Aflac International. Masatoshi Kuide, President and Representative Director. Todd Daniels, Director and CFO. Kuichiro Yoshizumi, Executive Vice President and Director of Sales and Marketing and Alliance Strategy. 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 perspective in nature. Actual results could differ materially from those we discussed 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. As I mentioned earlier, the earnings release is available on investors.applike.com. and includes reconciliations of certain non-US GAAP measures. I'll now hand the call over to Dan. Dan?

Thank you, David, and good morning. We're glad you joined us. Reflecting on the first quarter of 2023, our management team, employees, and sales distribution have continued to be devoted stewards of our business, being there for the policyholders when they need us most, just as we promised. The first quarter marked a good start to the year. Aflac delivered another quarter of solid earnings results, especially considering our material weakening of the yen. Looking at our operations in Japan, and as noted last quarter, we are actively focused on numerous initiatives in Japan involving new and refreshed products and distribution that continues to cover as we recover from the pandemic. In addition, we are encouraged by the planned May reclassification of COVID-19 to the same level as influenza as Japan continues to emerge from the pandemic. I am pleased with the continued sales improvements, which reflect the ongoing rollout of our cancer insurance policy, initially through Associates and Daido Life, followed by Daiichi Life and the financial institutions. First quarter sales also reflected the refreshed first sector ways and child endowment products, which we're using as a way of reaching new customers to whom we can also sell third sector products, including cancer and medical products. I am also encouraged by the fact that Japan Post Group began selling our new cancer insurance product earlier this month. We expect this close collaboration to produce continued gradual improvement of Aflac's cancer insurance sales over the immediate term and to further position the companies for the long term. In addition to product, another important element of our growth strategy is our intense focus on being where the customer wants to buy insurance. Our broad network of distribution channels, including agencies, alliance partners, and banks, continually optimize opportunities to help provide financial protection to Japanese consumers, and we are working hard to support each channel. Turning to the U.S., while the first quarter tends to generate the lowest sales of the year, I'm encouraged by the continued improvement in the productivity of our agents and brokers, as well as the contribution from the build-out of our network dental and vision and group life and disability. We are seeing success in our efforts to re-engage veteran associates, and at the same time, we are seeing strong growth through brokers. I'm very excited that we're in the process of refreshing our cancer protection assurance policy with increased benefits at no additional cost. We believe this will increase persistency, which will benefit our policyholders and lower our expenses. I believe that the need for the products we offer is stronger than it has ever been before in both Japan and the United States. At the same time, we know consumer habits and buying preferences have been evolving. We also know that our products are sold, not bought. As we communicate the value of our products, we know that a strong brand alone is not enough. We must paint a better picture of how our products help address the gap that people face when they get medical treatment. We continue to reinforce our leading position and build on that momentum. As always, we continue to prudent liquidity and capital management. We continue to generate strong investment results while remaining in a defensive position as we monitor evolving economic conditions. In addition, we've taken proactive steps in recent years to defend cash flows and deplorable capital against a weakening yen. We treasure our track record of dividend growth. highlighted by 2022 marking the 40th consecutive year of dividend increases. We remain committed to extending this track record, supported by the strength of a capital and cash flows. At the same time, we remain in the market, repurchasing shares with tactical approach focused on integrating the growth investments we've made in the platform to improve our strength and leadership position. We also believe in the underlying strength of our business and our potential for continued growth in the United States and Japan, two of the largest life insurance markets in the world. We are well positioned as we work toward achieving long-term growth while also ensuring we deliver on a promise to the policyholders. I'm proud of what we've accomplished in terms of both our social purpose and financial results, which have ultimately translated into strong long-term shareholder return. Now I'll turn the program over to Fred in Japan. Fred?