Is Aflac Inc. (AFL) A Buy?

 

An excellent dividend track record, solid balance sheet, nice operating model, good historical results, and bright forecasts for future growth makes the supplemental insurance giant worthy of your attention.


 

Aflac Inc. [NYSE: AFL] (American Family Life Assurance Company) is an American general business holding company. The company, through its subsidiaries, is involved in providing supplemental health and life insurance products to more than 50 million people in the United States and Japan.

 

Aflac is the leading provider of supplemental insurance at the worksite in the United States, selling voluntary supplemental insurance products for people who already have major medical or primary insurance coverage.

 

It is the largest foreign insurance company in Japan, insuring one in four households in Japan.

 

Aflac’s products include short-term disability, life insurance, critical illness, hospital indemnity, cancer expense, dental, accident, vision sickness and hospital intensive care, to mention a few.

 

The company pays cash benefits directly to the policyholders when they have covered accident or illness. The company was founded in 1955 and is headquartered in Columbus, Georgia.

 

 

The company’s stock is not known for extreme volatility though the pandemic obviously was an exception. However, the company’s performance during the contagion has been pretty decent.

 

Aflac’s employees have been allowed to work from home, the company has increased benefits, not only for employees, but policyholders as well, and has granted zero-interest loans to agents and agencies in the US and Japan.

 

The company has been promoting virtual and digital sales, and it has seen an upswing in demand for its products.

 

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