Aflac State Government Relations Overview October 25, 2013

Aflac Organizational Structure Department Mission: To influence the decisions and actions of State Government in order to protect and advance Aflac’s corporate interest. Department Objectives Aflac, Inc Columbus, GA Aflac Group (Continental American) Columbia, SC Aflac Nebraska HQ – Columbus, GA Aflac New York Albany, 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 Training Top 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 pieces of legislation 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 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)

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