Aflac State Government Relations Overview

October 25, 2013

Aflac Organizational Structure

Department Objectives

Aflac, IncColumbus, GA

Aflac Group(Continental American)

Columbia, SC

Aflac NebraskaHQ – Columbus, GA

Aflac New YorkAlbany, NY

Aflac: Company Overview

Founded in 1955 in Columbus, Georgia

Fortune 125 company; $29 billion market capitalization (NYSE: AFL); $118+ billion in assets (2012); $25.4 billion in annual revenues (2012)

Aflac covers over 50 million policyholders worldwide (U.S. and Japan)

#1 insurance company in terms of individual policies in force in Japan, insuring approximately one in four Japanese households

Number one provider of guaranteed-renewable insurance in the U.S. according to National Underwriter. Supplemental insurance market leader in the U.S. with about 25% market share.

Sales in all 50 U.S. states, Puerto Rico and the Virgin Islands, represented by 76,000 agents. U.S. operations in Georgia, Nebraska, South Carolina and New York.

96% of Aflac U.S. sales are through the worksite. In the U.S., 460,000+ businesses of all sizes and industries offer Aflac on a voluntary basis to their employees.

Aflac, its employees and its independent sales force have contributed over $79 million to the Aflac Cancer and Blood Disorders Center of Children’s Healthcare of Atlanta

3

Best Place to Launch a Career Number 58 in U.S.

America’s Most Admired Companies

Platinum 400 List of Best Big Companies

World’s Most Ethical Companies

40 Best Companies for Diversity

100 Companies Providing the Most Opportunities for Hispanics

100 Best Companies for Working Mothers

TrainingTop 100 Organizations with Outstanding Workforce Development Programs

Most Respected Company in US Insurance Industry

Samples of Aflac Recognitions and Awards:

State Government Relations: Mission and Objectives

Maintain relations with State legislatures

and Insurance Commissioners

Monitor State legislation and

regulations and act on identified threats and opportunities for

Aflac

Identify and manage State issues

Identify, coordinate and monitor

emerging and existing State legislative and

industry issues

Department Mission: To influence the decisions and actions of State Government in order to protect and advance Aflac’s corporate interest.

Department Objectives

Coalition Building to

Resolve and Monitor Issues

State-level Legislative and

Regulatory Activity and Monitoring

Federal Workstreams

with State Implications

Financial and Investments

International and Japan

State Government Relations Workstreams: Five Focus Areas

Examples:• Mandated benefits • Minimum loss ratio

requirements• Taxes/Fees • Product approvals• Support Aflac Group and

New York company government relations

Examples:• Public Sector

Associations• Industry Associations• Like-minded companies• State Regulators and

Legislators• Focus on domicile

states

Examples:• Healthcare Reform • Supplemental products on

Exchanges• Federal Insurance Office

Examples:• IAIS• ComFrame• Supervisory

College

Examples:• Derivatives• Investments• Principal-Based

Reserves

Government Relations Legislative/Regulatory Monitoring Process

• StateNet provides overnight feed of potential adverse legislation and regulations using key words algorithm

• YTD Per Week: @1,300 pieces of legislation and @120 new regulations flagged; all 50 States, DC, Puerto Rico

• Myriad of issues including product mandates, health reform, agent licensing, Medicaid, taxation, exchanges, privacy, life insurance, etc.

Screening

• Analysis of legislation and regulation impact (critical, serious, not critical, N/A)

• Assignment to State lobbyist with copy to Regional Director

• 72-hour service level turnaround to Lobbyist

Assessment• Retained State counsel assesses for viability

• Viable legislation/regulation action plan developed and implemented with Regional Director

• @150 proposed laws or regulations YTD requiring lobbying for resolution. We expect this number to go higher with ACA implementation in the States.

Lobbying

88

Aflac Government Relations works with several industry trade associations, legislative and supervisory groups to protect Aflac’s interests and expand market opportunities.

Coalition Building to Resolve and Monitor Issues

Public Sector Associations

International Associations

Industry Associations

99

Federal healthcare reform has downstream State consequences and requires close monitoring and mitigation.

Primary Federal Workstreams With State-level Implications: Healthcare Reform

Issue Area

Healthcare Reform

Mini-meds, FAQ 7

NAIC Model Law review and PPACA

Supplemental Products on Exchanges

Federal Insurance Office (FIO)

Post-Financial Crisis Rules

Agent Licensing (NARAB II)

RI

DEDC

Governmental RelationsState Alignment

ME

NHVT

MACT

NJ

MDWV

NY

PAMI

OHIN

KYVA

NC

SC

GAAL

FL

MS

LA

WA

ID

MT NDMN

WIOR

CA

NVUT

WY

CO

AZ NM

TX

OK

KS

ARTN

MO

SD

NEIA

IL

HI

AK