Aflac Incorporated (AFL) Stock Analysis & Winston Score

Aflac sells supplemental insurance, which means it pays cash directly to people when they get sick or injured — on top of whatever their regular health insurance covers. Its most popular products include cancer insurance, accident coverage, and hospital indemnity plans, sold mainly to individuals and employees at small and mid-sized businesses. Aflac is the largest provider of supplemental insurance in both the United States and Japan. The company earns money by collecting premiums from policyholders and investing that float, with Japan accounting for roughly 70% of total revenue and the U.S. making up the rest. Its brand recognition — especially the famous duck mascot — and its deep distribution network through workplaces give it a durable competitive position that is hard for smaller rivals to replicate. The biggest risk Aflac faces is currency exposure, since a weaker Japanese yen reduces the value of its Japan earnings when converted back to U.S. dollars.