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Claims Ratio % the percentage of claims costs incurred in relation to the premiums earned during the period. It is the equivalent of gross profit margin for an insurance company.
It's important to note that insurance is the business of managing risks and, to do that well, the insurer needs a thorough understanding of the incurred claims ratio. If the value is higher than expected or above established norms, then further investigation is required to figure out why that is (eg: fraud). If it is lower than expected, it could indicate irrelevant products or difficulties in claiming, possibly affecting customer satisfaction.
Aflac Claims Ratio % Related Terms
Aflac Claims Ratio % Historical Data
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The historical data trend for Aflac's Claims Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Life subindustry, Aflac's Claims Ratio %, along with its competitors' market caps and Claims Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Frequently Asked Questions
What does a Claims Ratio % of 110.10% mean?
Aflac (AFL) has a Claims Ratio % of 110.10% as of Mar. 2026. Claims Ratio is the percentage of claims costs incurred in relation to the premiums earned. View historical data on Aflac and its competitors.
Is Aflac's Claims Ratio % too high?
Aflac's current Claims Ratio % is 110.10%. Overall, Aflac has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aflac's Claims Ratio % compare to MET and PRU?
Aflac's Claims Ratio % of 110.10% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Claims Ratio % for an Insurance company?
A good Claims Ratio % depends on the Insurance industry context. However, Claims Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Claims Ratio % mean?
A high Claims Ratio % can signal that a stock is expensive relative to its fundamentals. Claims Ratio is the percentage of claims costs incurred in relation to the premiums earned. View historical data on Aflac and its competitors. Aflac's current Claims Ratio % is 110.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aflac stock overvalued right now?
Based on GuruFocus' analysis, Aflac (AFL) is currently considered Modestly Overvalued. The stock's GF Value™ is $108.10, compared to a current price of $125.15 — trading 15.8% above its estimated fair value. The current Claims Ratio % is 110.10%. Aflac's overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Claims Ratio % calculated?
Claims Ratio % is calculated from a company's financial statements. For Aflac (AFL), the current Claims Ratio % is 110.10% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Aflac (AFL) Overvalued in 2026?
Based on GuruFocus' analysis, Aflac stock appears to be overvalued.
The current stock price of $125.15 is trading 15.8% above its estimated GF Value™ of $108.10.
GuruFocus considers Aflac to be Modestly Overvalued.
Key valuation signals for AFL:
Claims Ratio %: 110.10%
GF Value™: $108.10 vs. price of $125.15 (15.8% above fair value)
No single metric tells the full story. See the AFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aflac Inc offers supplemental health insurance and life insurance in the United States and Japan. In addition to its cancer policies, the company has broadened its product offerings to include accident, dental and vision, disability, and long-term-care insurance. It markets its products through independent distributors, selling the majority of its policies directly to consumers at their places of work, and also reaches out to its customers outside of their worksite through digital mediums. The company has two reportable business segments: Aflac Japan, which generates the maximum revenue, and Aflac U.S.
69GF Score
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Claims Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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