Aflac - A Corona Discount

Jun. 22, 2020 6:38 AM ETAflac Incorporated (AFL)17 Comments


  • Today we take a look at the Aflac Corporation. While it's questionable how many "Corona Discounts" there are still out there, Aflac's valuation seems favorable.
  • Aflac is a fundamentally appealing company with an excellent business and numerous long-term safeties.
  • The company is currently a "BUY".

I like insurance companies - this should come as little surprise to those who follow my articles on this platform. Financials make up a significant, 15%+ stake of my portfolio, and a not-insignificant amount of this is made up of pure insurance companies.


Because in the end, most people in modern societies need some sort of insurance. It's not as basic a need as food, heat, and light - yet in a society that's structured as ours is, it comes close given its implications for healthcare, loss of financial capital, our houses, cars, etc. We want to feel safe with our "things," and insurance plays a major role in this. In the end, there are few things safer to invest in than products or services that cater to the human need to feel safe.

With that out of the way, let's look at Aflac (NYSE:AFL).

Aflac Announces Investment Partnership with NXT Capital

Aflac - What does the company do?

This isn't a company with a century-old history, but it was still founded more than 60 years ago as the American Family Life Assurance Company of Columbus (wow, long name). It was incorporated as Aflac in 1973 and as of FY19, insures over 50 million people in Japan and the USA.

Today, Aflac is found primarily in two segments of operation, categorized by geography.

Aflac US provides the American market with insurance products aimed at asset depletion protection due to accident, cancer, critical illness/care, hospital indemnity, vision care, dental, and other so-called loss-of-income products. Examples here include disability plans.

Aflac Japan provides the Japanese market with supplemental insurance plans/products aimed at things like cancer, general medical conditions, living benefit life plans, life insurance plans, and annuities.

(Source: Aflac Credit Suisse 2020 Presentation)

There is obviously a high degree of difference between the Japanese and American insurance market, which

This article was written by

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Author of iREIT on Alpha
The #1 Service For Safe and Reliable REIT Income

Mid-thirties DGI investor/senior analyst in private portfolio management for a select number of clients in Sweden. Invests in USA, Canada, Germany, Scandinavia, France, UK, BeNeLux. My aim is to only buy undervalued/fairly valued stocks and to be an authority on value investments as well as related topics.

I am a contributor for iREIT on Alpha as well as Dividend Kings here on Seeking Alpha and work as a Senior Research Analyst for Wide Moat Research LLC.

Disclosure: I am/we are long AMP, AFL, RGA, SAXPF, SAXPY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment.

I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles.

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