Aflac (AFL) / Value Hounds

Most people know AFLAC. The Columbus, GA insurer is synonymous with its Duck that pitches insurance that will pay you cash when you miss work. AFLAC (American Family Life Assurance Company), included in Georgia in 1973, is the primary supplemental insurance provider on the market. It offers incident and life insurance coverage in a number of forms, many of which are innovative.

The company underwrites in america and Japan; in lots of ways its Japanese functions are more important. The business is a Dividend Aristocrat that’s perfectly run. The interest rate environment and forex difficulties it encounters are however presently, significant. 21.8B in 2018. It is the largest US insurance company in its specialty niche market of ‘third-sector’ life products, roughly doubling the income of its nearest competitor. There is of course, considerable indirect competition in all of those other full life insurance market.

In Japan, Aflac’s most powerful rivals are Japan Post and Dai-Ichi Life. Japan Post is an 800 pound gorilla with tentacles reaching into many financial sectors in Japan. In Japan, the post office plays a wide array of different assignments from the expected postal delivery, to bank, insurance and finance.

In truth, Japan Post Holdings’ Kampo Insurance device is the largest life insurance company in Japan. 2. There is a significant Frenemy quality to Aflac’s connections with both. Both Japan Dai-Ichi and Post sell Aflac top quality malignancy insurance in their offices and companies. Yet both are competition in the larger life insurance market clearly. This relationship has often led to worries that Japan Post in particular might pull the plug. A major recent development reduces that risk. More with this later.

If you look at Aflac’s 10-K, you’ll notice that all discussion starts with Japan. There’s a reason for that. Japan is Aflac’s dominant market and it’s Japan that’s been Aflac’s historical growth driver. A mixture of issues has undermined that growth forcing Aflac to adjust on the travel. It an activity that’s still ongoing. Aflac Japan’s insurance products are designed to help consumers pay for medical and nonmedical costs that aren’t reimbursed under Japan’s nationwide medical health insurance system.

  1. Non-government grant revenue
  2. 1 Northumberland Ave, Trafalgar Square, London WC2N 5BW
  3. The home buyer shouldn’t have some other existing residential house in his name
  4. Invest all its possessions into a single collective investment plan
  5. Efforts to essentially share public data and publicly funded research +

Changes in Japan’s overall economy and an aging population have put increasing pressure on Japan’s national healthcare system. As a total result, more costs have been shifted to Japanese consumers, who in turn have become increasingly thinking about insurance products that help them manage those costs. Aflac Japan has taken care of immediately this consumer need by enhancing existing products and developing new products. These products fall under two categories: third sector insurance and first sector insurance.

First sector is life insurance. Second sector is casualty. Third Sector Insurance is Aflac’s bread-and-butter. In Japan it’s principally about tumor, but Aflac offers supplemental cancer tumor, supplemental medical, and income support policies. Cancer: Aflac pioneered the tumor insurance market in Japan in 1974, and remains the main company of tumor insurance in Japan today.