Financial Performance - Total revenues for Q3 2025 were $4.7 billion, up from $2.9 billion in Q3 2024, primarily due to net investment gains of $275 million compared to net investment losses of $1.4 billion in Q3 2024[325]. - Net earnings for the first nine months of 2025 were $2.3 billion, or $4.21 per diluted share, down from $3.5 billion, or $6.23 per diluted share in the same period of 2024[326]. - Adjusted earnings for Q3 2025 were $1.3 billion, or $2.49 per diluted share, compared to $1.2 billion, or $2.16 per diluted share in Q3 2024[329]. - Adjusted earnings for the three months ended September 30, 2025, were $1,327 million, compared to $1,211 million for the same period in 2024, reflecting a 9.6% increase[345]. - Adjusted earnings per diluted share for the nine months ended September 30, 2025, were $5.92, compared to $5.64 for the same period in 2024, indicating a 4.9% increase[345]. - The Company's combined effective income tax rate on pretax earnings was 17.8% for Q3 2025, a significant decrease from 201.8% in Q3 2024[362]. - The U.S. GAAP return on equity for Q3 2025 was 23.5%, a recovery from a negative return of (1.5)% in Q3 2024[370]. Investment Performance - Net investment losses for the first nine months of 2025 were $1.1 billion, compared to net investment gains of $239 million in the same period of 2024[328]. - The company reported net investment gains and losses of $(275) million for the three months ended September 30, 2025, compared to $1,408 million for the same period in 2024[348]. - Adjusted net investment income for the three months ended September 30, 2025, was relatively flat at $665 million, a slight increase of 0.5% from $662 million in 2024[377]. - The company considers amortized hedge costs/income an important component of net investment income, reflecting periodic currency risk management costs[343]. - The Company’s investment strategy focuses on maintaining a diversified portfolio of yen-denominated and U.S. dollar-denominated assets while seeking long-term risk-adjusted returns[431]. - The Company utilizes third-party asset managers for sourcing, underwriting, and managing loans, ensuring effective monitoring and recovery processes[440]. Shareholder Equity and Stock Repurchase - Shareholders' equity increased to $28.7 billion, or $54.57 per share, at September 30, 2025, compared to $26.1 billion, or $47.45 per share, at December 31, 2024[330]. - Aflac Incorporated repurchased $2.7 billion, or 25.7 million shares, in the first nine months of 2025, with 121.6 million shares remaining authorized for repurchase[329]. Currency Impact - The average yen/dollar exchange rate for Q3 2025 was 147.68, 0.2% stronger than 147.95 in Q3 2024, while the nine-month average was 148.03, 1.7% stronger than 150.60 in the same period of 2024[329]. - Aflac Japan's premiums and a significant portion of its investment income are received in yen, impacting the Company's financial results due to foreign currency translation[359]. - The impact of foreign currency on adjusted earnings was minimal, with adjusted earnings excluding current period foreign currency impact at $1,326 million for the three months ended September 30, 2025[345]. Operational Metrics - For the three months ended September 30, 2025, net earned premiums decreased by 2.7% to $1,663 million compared to $1,709 million in the same period of 2024[377]. - Total adjusted revenues for the three months ended September 30, 2025, decreased by 1.8% to $2,335 million, down from $2,378 million in the previous year[377]. - Total benefits and claims, net, for the three months ended September 30, 2025, decreased by 20.8% to $656 million compared to $828 million in the same period of 2024[377]. - The total adjusted expense ratio for the nine-month period ended September 30, 2025, increased primarily due to an increase in technology expenses[388]. - Total benefits and claims to total premiums ratio decreased to 39.3% for the three months ended September 30, 2025, down from 49.2% in 2024[385]. Cybersecurity Incident - The Company experienced a cybersecurity incident on June 12, 2025, involving unauthorized access to its network, but believes it contained the intrusion within hours[333]. - The Company has incurred costs related to the cybersecurity incident, which may include credit monitoring and legal advisory services, but has not determined a material impact on its financial condition as of the report date[335]. Future Outlook and Strategy - The Company plans to maintain higher than historical levels of liquidity and capital at the Parent Company to address hedge costs and mitigate against long-term weakening of the Japanese yen[499]. - The Company expects future cash flows from premiums and investment portfolios to be sufficient to meet its cash needs for benefits and expenses[515]. - The primary uses of cash by the Parent Company include shareholder dividends, stock repurchases, interest on debt, and operating expenses[494].

Financial Data and Key Metrics Changes - Aflac reported net earnings per diluted share of $3.08 and adjusted earnings per diluted share of $2.49 for Q3 2025, with adjusted earnings increasing by 15.3% year-over-year [3][10] - Adjusted book value per share increased by 6.3%, and adjusted return on equity (ROE) was 19.1% [10][11] - The total net impact from the Q3 assumption update increased EPS by $0.76 [10] Business Line Data and Key Metrics Changes - Aflac Japan experienced an 11.8% year-over-year sales increase, with a notable 42% increase in cancer insurance sales driven by the Miraito product [3][4] - Aflac U.S. generated $390 million in new sales during Q3, a 2.8% year-over-year increase, while maintaining a strong premium persistency of 79% [5][6] - Net earned premiums in Aflac Japan declined by 4%, while underlying earned premiums decreased by 1.2% [11] Market Data and Key Metrics Changes - Aflac Japan's total benefit ratio improved to 39.3%, down nearly 10 percentage points year-over-year, while the third sector benefit ratio was 27.8%, down approximately 14 percentage points year-over-year [11] - In the U.S., the total benefit ratio was 45.6%, 200 basis points lower than Q3 2024, driven by favorable reserve reinvestment gains [13] Company Strategy and Development Direction - The company continues to emphasize third sector protection and innovative products like Tsumitas to attract younger customers [4][9] - Aflac is focused on maintaining strong premium persistency and driving profitable growth through disciplined underwriting [5][6] - The company plans to launch a new medical insurance product in Japan by the end of December, supported by a new cross-functional organizational structure [40][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for Aflac's products, highlighting the importance of financial protection in challenging times [6][9] - The company expects the benefit ratio in Japan to be in the 58%-60% range for 2025, with a pre-tax profit margin of 35%-38% [19] - In the U.S., the benefit ratio is expected to be at the lower end of the 48%-52% range, with a pre-tax profit margin in the upper end of the 17%-20% range for 2025 [19] Other Important Information - Aflac repurchased $1 billion of its stock and paid dividends of $309 million in Q3 2025, marking 43 consecutive years of dividend increases [7][18] - The company has maintained a strong capital position, with an SMR above 900% and an estimated regulatory ESR above 250% [18] Q&A Session Summary Question: Sales performance in the U.S. and individual product pressure - Management noted that brokers are leaning towards group products, impacting individual product sales, but they are focused on increasing producer recruitment and productivity [23][25] Question: Trends in cancer sales and Tsumitas product demand - Management reported strong performance in cancer insurance sales driven by Miraito and positive growth in Tsumitas following its repricing [26][31] Question: Repricing details and product launches - The repricing related to Tsumitas involved increasing the assumed interest rate, while no repricing occurred for cancer products [36][38] Question: Future M&A considerations - Management emphasized a focus on organic growth and building out existing capabilities before considering larger M&A opportunities [64][67] Question: Japan cash earnings drivers - High FSA earnings have been driven by a weakening yen and executed reinsurance transactions, which are expected to persist for a couple more years [72][74] Question: U.S. sales growth and future targets - Management acknowledged the need for more scale in the U.S. business and emphasized the importance of bundling products to drive sales growth [83][86]

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 ...

Core Insights - Aflac Incorporated reported strong third-quarter results for 2025, with total revenues of $4.7 billion, a significant increase from $2.9 billion in the same quarter of 2024, primarily due to net investment gains of $275 million compared to losses of $1.4 billion a year ago [2][3][19] Financial Performance - Net earnings for the third quarter of 2025 were $1.6 billion, or $3.08 per diluted share, a turnaround from net losses of $93 million, or $0.17 per diluted share, in the previous year [2][3][26] - Adjusted earnings for the third quarter were $1.3 billion, reflecting a 9.6% increase from $1.2 billion in the same quarter of 2024, with adjusted earnings per diluted share rising 15.3% to $2.49 [3][32] - For the first nine months of 2025, total revenues decreased by 9.1% to $12.3 billion, with net earnings of $2.3 billion, or $4.21 per diluted share, down from $3.5 billion, or $6.23 per diluted share, in the same period of 2024 [6][11][34] Shareholders' Equity - Shareholders' equity at the end of the third quarter was $28.7 billion, or $54.57 per share, up from $24.8 billion, or $44.60 per share, a year earlier [5][7] - The annualized return on average shareholders' equity in the third quarter was 23.5% [5] Aflac Japan Performance - In yen terms, Aflac Japan's net earned premiums were ¥245.2 billion for the quarter, a 4.0% decrease year-over-year, while adjusted net investment income was relatively flat at ¥98.0 billion [8][9] - The pretax adjusted profit margin for the Japan segment improved to 52.2%, compared to 44.7% a year ago [8] Aflac U.S. Performance - Aflac U.S. net earned premiums increased by 2.5% to $1.5 billion in the third quarter, supported by improved sales [13][14] - The pretax adjusted profit margin for the U.S. segment was 21.7%, up from 20.8% a year ago [13] Sales and New Products - Total new annualized premium sales increased by 11.8% to ¥19.6 billion, primarily driven by strong sales of the new cancer insurance product, Miraito [12] - For the first nine months, total new sales increased by 16.1% to ¥54.4 billion [12] Capital Management - The board declared a fourth-quarter dividend of $0.58 per share, with a total of $1.0 billion deployed for share repurchases in the third quarter [18][22] - The company maintains a strong commitment to capital management and liquidity, celebrating 43 consecutive years of dividend increases [22]

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]