For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Aflac (AFL Quick QuoteAFL - Free Report) ten years ago? It may not have been easy to hold on to AFL for all that time, but if you did, how much would your investment be worth today?

Aflac's Business In-Depth

With that in mind, let's take a look at Aflac's main business drivers.

Aflac Incorporated was formed in 1973 under the laws of the state of Georgia. The company is a general business holding company and oversees the operations of its subsidiaries by providing management services and making capital available.

Its principal business is voluntary supplemental and life insurance, which is marketed and administered through American Family Life Assurance Company of Columbus (Aflac) in the United States (Aflac U.S.) and, effective Apr 1, 2018, through Aflac Life Insurance Japan Ltd. in Japan (Aflac Japan). Aflac primarily operates in these two countries. The majority of the company's policies are individually underwritten and marketed through independent agents.

Aflac Japan (60.1% of the adjusted revenues in 2023) offers supplemental insurance products including cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans and annuities.

At 2023-end, 80% of the company's total assets were attributable to Aflac Japan. The firm founded Aflac Re Bermuda Ltd. in 2022 to reinsure some products issued by Aflac Life Insurance Japan.

Aflac U.S. (37.3%) markets and administers group products through Continental American Insurance Company (CAIC). The segment offers products including accident, critical illness, cancer, short-term disability, long-term care and disability, as well as term and whole life insurance in the domestic market. This unit also provides dental, vision, hospital indemnity and other products.

The remaining portion in adjusted revenues is contributed by the Corporate and Other (2.6%).

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Aflac, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in August 2014 would be worth $3,411.09, or a 241.11% gain, as of August 13, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 176.37% and the price of gold went up 80.99% over the same time frame.

Analysts are anticipating more upside for AFL.

Multiple product launches and the build-out of a virtual sales channel will keep driving Aflac’s U.S. unit sales in the future. Expense-saving initiatives will aid the bottom line in the future. The expense ratio is expected to witness a massive improvement in the coming days. Aflac’s results will be supported by lower benefits and claims. It has a world-class investment platform. It beat Q2 earnings estimates on strong investment income. AFL has a strong balance sheet with a favorable solvency position. It returns wealth to investors via share buybacks and dividend payments. Its shares have outperformed the industry in the past year. However, softness still persists in the Japan segment, evident from its declining premiums. The dipping free cash flows reflect weakness in its operations. Also, the stock has a stretched valuation.

Shares have gained 8.38% over the past four weeks and there have been 7 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.