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A Legacy of Reaching More Consumers Through Expanded Distribution Channels

Aflac policies insure one in four Japanese households. Yet we believe we can help

more consumers by expanding our reach through expanded distribution. Our tradi-

tional agencies have been, and remain, key to our success, representing a significant

portion of our sales in 2014. We made progress in accessing more consumers by

broadening our reach through additional distribution channels.

Our most recent distribution expansion included Japan Post Holdings. We

made headway increasing the number of post offices in Japan selling Aflac’s cancer

product. Aflac Japan is the exclusive provider of cancer insurance distributed through

post offices nationwide in Japan. Our strategic partnership unites Japan Post – the

largest nationwide distribution network in Japan – with Aflac Japan, the industry

leader in cancer insurance. At the end of 2014, our cancer insurance policy was

sold through approximately 10,000 postal outlets, and Japan Post Holdings intends

to gradually expand the number of post offices offering Aflac’s cancer products to

approximately 20,000 by the end of March 2016. Additionally, Japan Post Insurance

Co. (Kampo), the subsidiary of Japan Post Holdings that sells insurance, entered into

an agency contract with Aflac Japan to distribute Aflac Japan’s cancer insurance

products at all of Kampo’s 79 sales offices they directly manage. Aflac Japan and

Japan Post will continue to provide training and support that not only ensures the

success of our alliance, but more importantly, the best experience for customers.

AFLAC JAPAN

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