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Aflac Expands Digital Reach via Ethos Tie-Up in Supplemental Health

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Key Takeaways

  • AFL rolls out cancer insurance on Ethos' digital platform, expanding access to supplemental health products.
  • Aflac policies pay cash benefits for medical and non-medical costs and include preventive screening benefits.
  • Aflac gains a new digital channel to reach customers seeking fast, low-friction insurance purchases.

Aflac Incorporated (AFL - Free Report) recently took a strategic step toward modernizing insurance distribution by partnering with Ethos to provide its supplemental health products through a fully digital platform. The partnership debuts with Aflac’s cancer insurance, which is now offered alongside Ethos’ life insurance options, allowing consumers to secure extra financial protection in just minutes.

The partnership brings together Aflac’s deep-rooted knowledge in supplemental health insurance and Ethos’ innovative tech-driven distribution model. With Ethos’ platform, customers can easily access cancer coverage aimed at helping to ease the financial burden of out-of-pocket expenses related to diagnosis, treatment and recovery.

A key feature of these policies is that they provide cash benefits directly to policyholders, offering flexibility to cover both medical and non-medical expenses associated with treatment. Plus, the inclusion of preventive screening benefits further enhances the product’s appeal by offering value even before a diagnosis is made and continues to support individuals throughout their care journey.

For Aflac, this tie-up opens a new digital channel to reach customers who increasingly prefer fast, low-friction insurance purchases. Ethos’ digital-first approach allows AFL to push past traditional limits while maintaining product quality and straightforward claims. Plus, this collaboration aligns with Aflac’s ongoing “One Digital Aflac” initiative, which aims to leverage technology to improve customer experiences, streamline operations and boost sales productivity.

Strategically, the Ethos tie-up positions Aflac to accelerate product innovation and better cross-selling opportunities in both life and supplemental health markets. As digital platforms increasingly become a primary access point, Aflac's proactive and organized approach could lead to steady premium growth and a stronger competitive edge.

AFL’s Stock Price Performance

Over the past year, Aflac’s shares have risen 7.5% compared with the industry’s growth of 7.8%.

Zacks Investment Research
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AFL’s Zacks Rank & Key Picks

AFL currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks in the broader finance space are LendingClub Corporation (LC - Free Report) , Heritage Insurance Holdings Inc. (HRTG - Free Report) and The Allstate Corporation (ALL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for LendingClub’s current-year earnings of $1.15 per share has witnessed four upward revisions in the past 60 days against none in the opposite direction. LendingClub beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 38.3%. The consensus estimate for current-year revenues is pegged at $994.5 million, implying 26.4% year-over-year growth.

The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $5.14 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 100.1%. The consensus estimate for current-year revenues is pegged at $844.6 million, calling for 3.4% year-over-year growth.

The Zacks Consensus Estimate for Allstate’s current-year earnings is pegged at $28.21 per share and has witnessed three upward revisions in the past 30 days against no movement in the opposite direction. Allstate beat earnings estimates in each of the trailing four quarters, with the average surprise being 47.3%. The consensus estimate for current-year revenues is pegged at $69 billion, calling for 7.2% year-over-year growth.

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