Financial Performance - Net earnings per diluted share increased significantly from $(0.17) in 3Q24 to $3.08 in 3Q25, a 1,911.8% change[10] - Adjusted earnings per diluted share increased by 15.3% from $2.16 in 3Q24 to $2.49 in 3Q25[10] - Adjusted earnings excluding foreign currency impact also increased by 15.3% from $2.16 in 3Q24 to $2.49 in 3Q25[10] - Net earnings increased significantly from $(93) million in 3Q24 to $1,639 million in 3Q25, a 1,862.4% change[37] - Adjusted earnings increased by 9.6% from $1,211 million in 3Q24 to $1,327 million in 3Q25[37] - Adjusted earnings excluding foreign currency impact increased by 9.5% from $1,211 million in 3Q24 to $1,326 million in 3Q25[37] Return on Equity - U.S GAAP ROE increased from (1.5)% in 3Q24 to 23.5% in 3Q25[13] - Adjusted ROE increased from 16.7% in 3Q24 to 19.1% in 3Q25[13] - Adjusted ROE excluding foreign currency remeasurement increased from 20.2% in 3Q24 to 22.1% in 3Q25[13] Capital Deployment - The company deployed capital through dividends and share repurchases, with dividends of $309 million and share repurchases of $1,000 million in 3Q25[27] Persistency and Capital Ratios - Aflac Japan's premium persistency remained solid at 93.3% in 3Q25[16] - Aflac U.S premium persistency remained solid at 79.0% in 3Q25[19] - The adjusted leverage ratio was 22.0% in 3Q25, within the target range of 20-25%[21, 20]

Core Insights - Aflac reported a revenue of $4.74 billion for the quarter ended September 2025, marking a 60.7% increase year-over-year, with EPS at $2.49 compared to $2.16 in the same quarter last year, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - The reported revenue of $4.74 billion surpassed the Zacks Consensus Estimate of $4.49 billion, resulting in a surprise of +5.59% [1] - EPS exceeded expectations with a surprise of +38.33%, against a consensus estimate of $1.80 [1] - Aflac's shares have returned -5.4% over the past month, while the Zacks S&P 500 composite increased by +2.1% [3] Key Metrics - Total Benefit/Premium for Aflac Japan was reported at 27.8%, significantly lower than the average estimate of 64.7% [4] - Total Adjusted Expenses/Total Adjusted Revenue for Aflac U.S. was 38.9%, slightly above the average estimate of 38.8% [4] - Total Adjusted Revenues for Aflac U.S. were $1.73 billion, below the average estimate of $1.75 billion, reflecting a year-over-year increase of +2.6% [4] - Total Adjusted Revenues for Aflac Japan were $2.34 billion, below the estimated $2.43 billion, showing a year-over-year decrease of -1.8% [4] - Net investment income was reported at $1.07 billion, exceeding the average estimate of $983.85 million, with a year-over-year increase of +6.1% [4] - Total adjusted revenues from Corporate and other segments reached $343 million, slightly above the average estimate of $336.5 million, representing a year-over-year change of +52.4% [4]

Aflac (AFL) came out with quarterly earnings of $2.49 per share, beating the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $2.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +38.33%. A quarter ago, it was expected that this insurer would post earnings of $1.71 per share when it actually produced earnings of $1.78, delivering a surprise of +4.09%.Over the last four quarters, the company has surpass ...

Core Insights - Aflac exceeded Wall Street expectations for third-quarter profit and revenue, attributed to investment gains and increased premium growth in its U.S. division [1] Group 1 - Aflac's third-quarter profit and revenue surpassed analyst estimates [1] - The growth was driven by strong investment performance [1] - There was notable premium growth in the United States division [1]

Final 11/04/2025 Financial Supplement Third Quarter 2025 This document is a statistical supplement to Aflac's quarterly earnings release. Throughout the presentation, amounts presented may not foot due to rounding. As you review the supplement, please note the non-U.S. GAAP financial measures and definitions found at the back of this document. The Company adopted the Financial Accounting Standards Board's Accounting Standard Update 2018-12 Financial Services - Insurance: Targeted Improvements to the Account ...

Accessibility StatementSkip Navigation Total revenues were $4.7 billion in the third quarter of 2025, compared with $2.9 billion in the third quarter of 2024, primarily due to net investment gains of $275 million this quarter compared to net investment losses of $1.4 billion in the third quarter of 2024. Net earnings were $1.6 billion, or $3.08 per diluted share, compared with net losses of $93 million, or losses of $0.17 per diluted share a year ago. Net earnings in the third quarter of 2025 included net i ...

Financial Data and Key Metrics Changes - Adjusted earnings per diluted share increased 15.3% year over year to $2.49 with no impact from foreign exchange in the quarter [1] - Adjusted book value per share, excluding foreign currency remeasurement, increased 6.3% [2] - Adjusted return on equity (ROE) was 19.1% to 22.1%, indicating a solid spread to the cost of capital [2] Business Line Data and Key Metrics Changes - In Aflac Japan, net earned premiums declined 4%, while underlying earned premiums decreased 1.2% [3] - The total benefit ratio for Japan was 39.3%, down nearly 10 percentage points year over year [3] - In the U.S., net earned premium increased 2.5%, with a total benefit ratio of 45.6%, which is 200 basis points lower than the previous year [6] Market Data and Key Metrics Changes - Persistency in Japan remained solid at 93.3% year over year [4] - In the U.S., persistency increased by 10 basis points year over year to 79% [6] - The expense ratio in Japan was 19.8%, down 20 basis points year over year, while the U.S. expense ratio was 38.9%, up 90 basis points year over year [5][7] Company Strategy and Development Direction - The company is optimizing efficiencies and migrating to the cloud, which included a one-time termination fee of $21 million [2] - Growth initiatives in Group Life and Disability, Network, Dental and Vision, and Direct to Consumer are expected to scale without impacting the total expense ratio [7] - The company plans to manage the balance sheet and deploy capital to drive strong risk-adjusted ROE with a meaningful spread to the cost of capital [14] Management's Comments on Operating Environment and Future Outlook - Management expects the benefit ratio in Japan for 2025 to be in the 58% to 60% range, with the expense ratio at the lower end of the 20% to 23% range [15] - In the U.S., the benefit ratio for 2025 is expected to be at the lower end of the 48% to 52% range, with the expense ratio in the mid- to upper end of the 36% to 39% range [16] - The pretax profit margin for Japan is anticipated to be in the 35% to 38% range, while for the U.S., it is expected to be at the upper end of the 17% to 20% range [15][16] Other Important Information - The company enhanced liquidity and capital flexibility by $2 billion through the creation of two off-balance-sheet pre-capitalized trusts [12] - The leverage ratio was 22%, within the target range of 20% to 25% [13] - The company repurchased $1 billion of its own stock and paid dividends of $9 million in Q3 [14] Q&A Session Summary Question: What is the outlook for the benefit ratio in Japan? - Management expects the benefit ratio in Japan to be in the 58% to 60% range for 2025 [15] Question: How does the company plan to manage expenses moving forward? - The company anticipates reduced costs and improved efficiency to offset the one-time termination fee over the next few years [7] Question: What are the expectations for the U.S. market in 2025? - The benefit ratio for the U.S. is expected to be at the lower end of the 48% to 52% range, with a pretax profit margin in the upper end of the 17% to 20% range [16]

Core Insights - Aflac Incorporated is expected to report a decline in earnings per share (EPS) of 16.7% year over year, with an anticipated EPS of $1.80 for the upcoming quarterly earnings release on November 4, 2025 [1][5] - Despite the EPS decline, Aflac's revenue is projected to increase by 52.2% year over year, reaching approximately $4.48 billion, indicating potential growth in market presence or product offerings [2][5] - Analysts have revised the consensus EPS estimate upwards by 1.1% over the past month, reflecting a positive reassessment of Aflac's financial health [2][5] Financial Metrics - Aflac has a price-to-earnings (P/E) ratio of 23.61, which can be compared to industry peers to gauge investor sentiment [3] - The company’s price-to-sales ratio is 3.54, and its enterprise value to sales ratio is 3.66, suggesting a solid valuation relative to its sales [3] - Aflac's enterprise value to operating cash flow ratio stands at 22.89, indicating its ability to generate cash from operations [3] Investment Considerations - The earnings yield for Aflac is 4.24%, providing investors with an insight into the expected return on investment [4] - Aflac maintains a low debt-to-equity ratio of 0.33, reflecting prudent financial management [4] - Investors are expected to closely monitor the upcoming earnings report for any surprises that could impact Aflac's stock price, particularly regarding management's commentary on business conditions [4]

Core Insights - The insurer experienced a significant increase in sales, doubling over a three-year period, attributed to a successful advertising campaign featuring a quacking duck [1] Company Performance - Sales doubled in three years, indicating strong growth and effective marketing strategies [1] Advertising Strategy - The use of a quacking duck in advertisements proved to be a successful gamble, leading to increased brand recognition and customer engagement [1]

Company Overview - Aflac Incorporated (AFL) is valued at $57.6 billion and is a leading provider of supplemental health and life insurance products, primarily operating in the United States and Japan [1] - The company was founded in 1955 and is headquartered in Columbus, Georgia, known for its iconic Aflac Duck marketing campaign [1] Earnings Expectations - Aflac is expected to announce its fiscal third-quarter earnings for 2025 on November 4, with analysts predicting a profit of $1.80 per share, down 16.7% from $2.16 per share in the same quarter last year [2] - For the full fiscal year, analysts expect an EPS of $6.91, a decrease of 4.2% from $7.21 in fiscal 2024, but a rebound is forecasted with a 6.4% increase to $7.35 in fiscal 2026 [3] Stock Performance - Aflac's stock has declined by 6.3% over the past year, underperforming the S&P 500 Index's 14.1% gains and the Financial Select Sector SPDR Fund's 9.6% gains during the same period [4] - On October 14, Aflac shares rose by 1.1% after Bank of America Securities analyst Joshua Shanker reaffirmed a "Buy" rating with a price target of $130 [5] Analyst Ratings - The consensus opinion on Aflac stock is cautious, with an overall "Hold" rating; out of 17 analysts, two recommend a "Strong Buy," one a "Moderate Buy," 11 a "Hold," and three a "Strong Sell" [6] - The average analyst price target for Aflac is $108.57, indicating a marginal upside from current levels [6]