AFL Recognizes Super-Subordinated Debt as AT1 Capital Effective December 31, 2025
Written by Emily J. Thompson, Senior Investment Analyst
Source: Globenewswire
Updated: 1 hour ago0mins
- Capital Structure Optimization: AFL announced that as of December 31, 2025, its super-subordinated debt will be recognized as Additional Tier 1 (AT1) capital, enhancing its capital buffer and supporting financing needs of local governments.
- Regulatory Requirement Adjustment: By waiving the exemption from individual prudential requirements, AFL will now be subject to dual supervision by the French Prudential Supervision and Resolution Authority, increasing its transparency and compliance.
- Enhanced Financing Capacity: The inclusion of super-subordinated debt in capital ratios will raise AFL's leverage ratio to 2.79%, aiding in meeting the growing investment expenditure demands of local authorities.
- Credit Rating Change: Due to the recognition of AT1 capital, the rating of AFL's securities will be downgraded to BBB; however, the strengthened capitalization will still support its future development.
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Analyst Views on AFL
Wall Street analysts forecast AFL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AFL is 112.80 USD with a low forecast of 101.00 USD and a high forecast of 127.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
3 Buy
5 Hold
2 Sell
Hold
Current: 109.240
Low
101.00
Averages
112.80
High
127.00
Current: 109.240
Low
101.00
Averages
112.80
High
127.00
Morgan Stanley
Equal Weight
maintain
$113 -> $118
2025-11-17
Reason
Morgan Stanley
Price Target
$113 -> $118
2025-11-17
maintain
Equal Weight
Reason
Morgan Stanley raised the firm's price target on Aflac to $118 from $113 and keeps an Equal Weight rating on the shares. The firm updated models in the insurance space post the Q3 reports. Life insurance earnings reports were better than what share price reactions would suggest, the analyst tells investors in a research note. For property and casualty, Morgan Stanley sees a softening cycle heading into 2026.
Keefe Bruyette
Market Perform
maintain
$110 -> $115
2025-11-11
Reason
Keefe Bruyette
Price Target
$110 -> $115
2025-11-11
maintain
Market Perform
Reason
Keefe Bruyette raised the firm's price target on Aflac to $115 from $110 and keeps a Market Perform rating on the shares.
Evercore ISI
Thomas Gallagher
Underperform
maintain
$110 -> $111
2025-11-07
Reason
Evercore ISI
Thomas Gallagher
Price Target
$110 -> $111
2025-11-07
maintain
Underperform
Reason
Evercore ISI analyst Thomas Gallagher raised the firm's price target on Aflac to $111 from $110 and keeps an Underperform rating on the shares following the company's Q3 report.
JPMorgan
Neutral
maintain
$100 -> $101
2025-11-05
Reason
JPMorgan
Price Target
$100 -> $101
2025-11-05
maintain
Neutral
Reason
JPMorgan raised the firm's price target on Aflac to $101 from $100 and keeps a Neutral rating on the shares following the Q3 report. The firm says the company's momentum in Japan offset weakness in the U.S. business.
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About AFL
Aflac Incorporated provides financial protection to policyholders and customers through its subsidiaries in the United States and Japan. The Company’s principal business is supplemental health and life insurance products. The Company’s segments include Aflac Japan, which includes Aflac Life Insurance Japan (ALIJ), and Aflac U.S., which includes American Family Life Assurance Company of Columbus (Aflac), American Family Life Assurance Company of New York (Aflac New York), Continental American Insurance Company (CAIC), Tier One Insurance Company (TOIC) and Aflac Benefits Solutions, Inc. (ABS). The Aflac Japan segment is the insurer in Japan in terms of cancer and medical (third sector insurance products) policies in force. The Company designs its United States insurance products to provide supplemental coverage for people who already have major medical or primary insurance coverage, as Aflac U.S. insurance policies pay benefits regardless of other insurance.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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