Aflac Incorporated (NYSE:AFL) Q3 2023 Earnings Call Transcript

Joel Hurwitz: Okay. And do you expect that to be driven by the needs for growth or do you expect to actually draw that down with outsized dividends to the holdco?

Max Broden: The preferred option would be to drive it by growth because that’s where we’re getting the best returns on our capital by just writing more policies. At the same time, our — even though we have some lines of business that are consuming a little bit more capital, overall, we’re a relatively capital-light business. So given that we’re operating at a 650% RBC right now, I don’t see that growth alone will necessarily drive us all the way down to 400%. In order to do so, we probably would, over time, need to address our capital base through special dividends, et cetera.

Joel Hurwitz: Okay. Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to David Young for any closing remarks.

David Young: Thank you, Anthony, and thank you all for joining us this morning. While we are not hosting our financial analyst briefing this year, we will be in 2024, but we will also be giving an outlook for 2024 on our fourth quarter 2023 earnings call. In the interim, please reach out to the Investor and Rating Agency Relations team if you have any questions, and we look forward to speaking to you then. Everyone, have a great day. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.