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 thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to 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

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Aflac ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in October 2014 would be worth $3,985.48, or a gain of 298.55%, as of October 7, 2024, and this return excludes dividends but includes price increases.

The S&P 500 rose 192.24% and the price of gold increased 110.55% over the same time frame in comparison.

Going forward, analysts are expecting more upside for AFL.

Aflac's U.S. unit is poised for growth with multiple product launches and the expansion of a virtual sales channel. Its shares have outperformed the industry in the past year. Its expense-saving initiatives are likely to improve the expense ratio and boost the bottom line. Lower benefits and claims will support future results, while a world-class investment platform and strong investment income continue to drive performance. Its investments in digital transformation will enhance operational efficiency and boost customer satisfaction and product sales. AFL has a strong balance sheet with a favorable solvency position. It returns wealth to investors via share buybacks and dividend payments. It had 59.2 million shares left for buyback at Q2-end. Consequently, Aflac is expected to offer substantial upside potential from the current price levels.

The stock has jumped 5.85% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024; the consensus estimate has moved up as well.