AFL Aflac, Inc.

Risks

• 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.
• Competition could adversely affect the Company's ability to increase or maintain its market share or profitability.
• If future policy benefits, claims or expenses exceed those anticipated in establishing premiums and reserves, the Company's financial results would be adversely affected.
• The success of the Company's business depends in part on effective information technology systems and on continuing to develop and implement improvements in technology.
• 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.
• The Company is exposed to significant interest rate risk, which may adversely affect its results of operations, financial condition and liquidity.
• Lack of availability of acceptable yen-denominated investments could adversely affect the Company's results of operations, financial position or liquidity.
• 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.
• 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.
• 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.
• Events, including those external to the Company's operations, could damage the Company's reputation.
• Extensive regulation and changes in legislation can impact profitability and growth.
• Tax rates applicable to the Company may change.
• A decline in the creditworthiness of other financial institutions could adversely affect the Company.
• The determination of the amount of impairments taken on the Company's investments is based on significant valuation judgments and could materially impact its results of operations or financial position.
• U.S. tax audit risk related to conversion of the Japan branch to a subsidiary could adversely impact the Company's financial position.
• 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.
• 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.
• The concentration of the Company's investment portfolios in any particular single-issuer or sector of the economy may have an adverse effect on the Company's financial position or results of operations.
• The valuation of the Company's investments and derivatives includes methodologies, estimations and assumptions which 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.
• 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.
• The Company faces risks related to litigation, regulatory investigations and inquiry and other matters.
• Allegations or determinations of agent misclassification could adversely affect the Company’s results of operations, financial condition and liquidity.