Key Takeaways AFL reported Q4 adjusted EPS of $1.57, up 0.6% year over year, but missing consensus estimates.AFL revenues fell 9.9% to $4.9B as net investment income dropped and operating expenses rose.AFL saw Japan premium sales jump 15.7%, while U.S. earnings declined on higher benefits and expenses.Aflac Incorporated (AFL) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.57, which missed the Zacks Consensus Estimate by 8.2%. The bottom line improved 0.6% year over year. Adjusted reven ...

Aflac (NYSE:AFL) Q4 2025 Earnings call February 05, 2026 08:00 AM ET Company ParticipantsAlex Scott - CFABradley Dyslin - Global Chief Investment Officer and President, Aflac Global InvestmentsDaniel Amos - Chairman and CEODavid Young - Head of Investor RelationsJack Matten - CFAKoichiro Yoshizumi - Head of Marketing and Sales DivisionMax Brodén - CFOVirgil Miller - PresidentNone - TranslatorConference Call ParticipantsJoel Hurwitz - AnalystJohn Barnidge - Managing Director and Senior Research AnalystSuneet ...

Financial Data and Key Metrics Changes - Aflac reported Q4 2025 net earnings per diluted share of $2.64 and adjusted earnings per diluted share of $1.57, with full-year net earnings per diluted share at $6.82 and adjusted earnings at $7.49 [5] - Adjusted earnings per diluted share increased 0.6% year-over-year for Q4 2025, while adjusted book value per share rose 0.5% [14] - The adjusted return on equity (ROE) was 11.7%, and 14.5% excluding foreign currency remeasurement [14] Business Line Data and Key Metrics Changes - Aflac Japan's sales increased by 15.7% in Q4 and 16% for the full year 2025, driven by the launch of the Moraito cancer insurance product [6][7] - Aflac U.S. generated nearly $1.6 billion in new sales for 2025, with over one-third coming from Q4 [8] - Premium persistency in Aflac Japan remained strong at 93.1%, while Aflac U.S. reported a persistency of 79.2% [9][10] Market Data and Key Metrics Changes - Aflac Japan's net earned premiums in yen terms declined by 1.9% for Q4 2025, while underlying earned premiums decreased by 1.2% [14][15] - In the U.S., net earned premiums increased by 4%, but the total benefit ratio rose to 48.6%, driven by higher claims activity [17] Company Strategy and Development Direction - Aflac continues to emphasize third sector protection and has introduced innovative products to meet changing customer needs [7][8] - The company aims to maintain strong premium persistency while offsetting the impact of reinsurance and policies reaching paid-up status [7] - Aflac plans to enhance its capital deployment strategy, including a 5.2% increase in dividends for Q1 2026 and a record $3.5 billion in share repurchases for 2025 [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial strength and ability to navigate increasing out-of-pocket medical expenses faced by consumers [10] - The outlook for 2026 includes expectations for underlying earned premiums in Japan to decline by 1%-2% and net earned premium growth in the U.S. to be in the lower end of the 3%-6% range [25] Other Important Information - Aflac's capital position remains strong, with an SMR above 970% and an estimated regulatory ESR of 253% [22][23] - The company has enhanced liquidity and capital flexibility by creating off-balance sheet pre-capitalized trusts [21] Q&A Session Summary Question: Concerns about surrender levels in Japan due to rising yields - Management acknowledged the potential for increased surrenders but noted that they have not yet experienced significant changes [30] Question: Impact of ESR on M&A or capital deployment - Management confirmed that while capital is available for M&A, finding suitable operational and strategic targets remains challenging [33] Question: Lower benefit ratio guidance in Japan - Management explained that the lower benefit ratio is influenced by updated actuarial assumptions and new product introductions [36][38] Question: Group versus non-group sales performance - Management reported strong growth in group sales, particularly in network dental and vision products, while traditional voluntary benefits have been flat [72] Question: Future premium growth in Japan - Management indicated that strong persistency is limiting premium growth, with expectations for a positive turn in the future [78]

Aflac (NYSE:AFL) Q4 2025 Earnings call February 05, 2026 08:00 AM ET Speaker8Good morning, everyone, and welcome to the Aflac Incorporated Fourth Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star and then one on your touchtone phone. To withdraw your qu ...

分组1 - Aflac reported quarterly earnings of $1.57 per share, missing the Zacks Consensus Estimate of $1.71 per share, representing an earnings surprise of -8.10% [1] - The company posted revenues of $4.87 billion for the quarter, surpassing the Zacks Consensus Estimate by 8.70%, compared to year-ago revenues of $4.31 billion [2] - Aflac has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] 分组2 - The current consensus EPS estimate for the coming quarter is $1.79 on revenues of $4.44 billion, and for the current fiscal year, it is $7.36 on revenues of $17.55 billion [7] - The Zacks Industry Rank for Insurance - Accident and Health is currently in the bottom 30% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] - Aflac shares have added about 1.6% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3]

Financial Data and Key Metrics Changes - Adjusted earnings per diluted share increased 0.6% year-over-year to $1.57, excluding the effect of foreign currency [1] - Adjusted book value per share increased 0.5%, with an adjusted ROE of 11.7% and 14.5% excluding foreign currency remeasurement [1] - Overall results for the quarter were viewed as solid [1] Business Line Data and Key Metrics Changes - In Japan, net earned premiums in yen terms declined 1.9%, while underlying earned premiums decreased 1.2% [2] - Japan's total benefit ratio improved to 65%, down 150 basis points year-over-year, with reserve remeasurement gains favorably impacting the ratio [2] - In the U.S., net earned premiums increased by 4%, but premium persistency declined slightly by 10 basis points to 79.2% [4] - The total benefit ratio in the U.S. was 48.6%, up 230 basis points year-over-year, driven by higher claims activity [4] Market Data and Key Metrics Changes - Japan's expense ratio was 22%, up 120 basis points year-over-year, primarily due to sales promotion expenses [3] - U.S. expense ratio was 40.4%, up 10 basis points year-over-year, influenced by timing of spend from previous quarters [4] - Adjusted net investment income in Japan was down 3.9%, while in the U.S. it decreased by 2.8% [3][5] Company Strategy and Development Direction - The company plans to continue focusing on growth initiatives in group life and disability, network dental and vision, and direct-to-consumer segments [4] - For 2026, the company expects underlying earned premiums in Japan to decline by 1%-2% and anticipates a benefit ratio in the 60%-63% range [11][12] - In the U.S., net earned premium growth is expected to be in the lower end of the 3%-6% range, with a benefit ratio forecasted between 48%-52% [12] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the performance of the investment portfolio, noting no charge-offs for the commercial real estate portfolio [6] - The company has improved its liquidity and capital flexibility, lowering the minimum liquidity balance at the holding company [9] - Capital ratios remain strong, with an estimated combined RBC of 575% and an SMR above 970% [10] Other Important Information - The company repurchased $800 million of its own stock and paid dividends of $303 million in Q4, indicating strong capital management [11] - Adjusted leverage was 21.4%, within the target range of 20%-25%, influenced by currency exchange rates [9] Q&A Session Summary Question: What is the outlook for Aflac Japan's earned premiums? - The company expects underlying earned premiums in Japan to decline by 1%-2% in 2026 [11] Question: How does the company view its expense ratios moving forward? - The expense ratio in Japan is expected to be in the 20%-23% range, while the U.S. expense ratio is anticipated to be in the 36%-39% range [12]

Financial Data and Key Metrics Changes - Adjusted earnings per diluted share increased 0.6% year-over-year to $1.57, excluding foreign currency effects [1] - Adjusted book value per share increased 0.5%, with an adjusted ROE of 11.7% and 14.5% excluding foreign currency remeasurement [1] - Overall results for the quarter were viewed as solid [1] Business Line Data and Key Metrics Changes - In Japan, net earned premiums in yen terms declined 1.9%, while underlying earned premiums decreased 1.2% [2] - Japan's total benefit ratio improved to 65%, down 150 basis points year-over-year, with reserve remeasurement gains favorably impacting the ratio by approximately 110 basis points [2] - In the U.S., net earned premiums increased by 4%, but premium persistency declined slightly by 10 basis points to 79.2% [4] - The total benefit ratio in the U.S. was 48.6%, up 230 basis points year-over-year, driven by higher claims activity [4] Market Data and Key Metrics Changes - Japan's expense ratio was 22%, up 120 basis points year-over-year, primarily due to sales promotion expenses [3] - U.S. expense ratio was 40.4%, up 10 basis points year-over-year, influenced by timing of spend from previous quarters [4] - Adjusted net investment income in Japan decreased by 3.9%, while in the U.S. it was down 2.8% [3][5] Company Strategy and Development Direction - The company plans to continue managing its balance sheet flexibly and tactically to drive strong risk-adjusted ROE [11] - For 2026, the company expects underlying earned premiums in Japan to decline by 1%-2% and the expense ratio to be in the 20%-23% range [12] - In the U.S., net earned premium growth is expected to be at the lower end of the 3%-6% range, with a benefit ratio forecasted between 48%-52% [12] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the performance of the investment portfolio, noting no charge-offs for the commercial real estate portfolio [6] - The company has improved its liquidity and capital flexibility, lowering the minimum liquidity balance at the holding company [8] - The capital position remains strong, with an SMR above 970% and an estimated regulatory ESR of 253% [9][10] Other Important Information - The company repurchased $800 million of its own stock and paid dividends of $303 million in Q4 [11] - Adjusted leverage was 21.4%, within the target range of 20%-25% [9] - The company recorded a pre-tax adjusted loss of $31 million in Corporate and Other [5] Q&A Session Summary Question: What is the outlook for Aflac Japan's earned premiums in 2026? - The company expects underlying earned premiums to decline by 1%-2% in 2026 [12] Question: How does the company plan to manage its expense ratios moving forward? - The company anticipates the expense ratio in Japan to be in the 20%-23% range and in the U.S. to be between 36%-39% as new business lines scale [12]

FINAL 02/04/2026 Financial Supplement Fourth 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 Accoun ...

Core Insights - Aflac Incorporated reported a decline in total revenues and net earnings for the fourth quarter and full year of 2025 compared to 2024, indicating challenges in financial performance [1][5][18]. Financial Performance - Total revenues for Q4 2025 were $4.9 billion, down from $5.4 billion in Q4 2024, representing a decrease of 9.9% [1][25]. - Net earnings for Q4 2025 were $1.4 billion, or $2.64 per diluted share, compared to $1.9 billion, or $3.42 per diluted share in Q4 2024, reflecting a decline of 27.5% [1][26]. - For the full year 2025, total revenues decreased by 9.3% to $17.2 billion from $18.9 billion in 2024 [5][25]. - Net earnings for the full year 2025 were $3.6 billion, or $6.82 per diluted share, down from $5.4 billion, or $9.63 per diluted share in 2024, marking a 33.0% decline [5][26]. Investment Gains - Q4 2025 net investment gains were $537 million, or $1.03 per diluted share, compared to $1.0 billion, or $1.86 per diluted share in Q4 2024 [2][32]. - The investment gains were influenced by net gains on derivatives and foreign currency activities, alongside losses from sales and redemptions [2]. Adjusted Earnings - Adjusted earnings for Q4 2025 were $818 million, down 5.4% from $865 million in Q4 2024 [3][32]. - Adjusted earnings per diluted share increased by 0.6% to $1.57 in Q4 2025 [3][32]. - For the full year 2025, adjusted earnings were $4.0 billion, or $7.49 per diluted share, compared to $4.1 billion, or $7.21 per diluted share in 2024, reflecting a slight decrease of 1.6% [5][34]. Shareholders' Equity - Shareholders' equity at the end of Q4 2025 was $29.5 billion, or $56.85 per share, up from $26.1 billion, or $47.45 per share at the end of Q4 2024 [4][37]. - The increase in shareholders' equity was attributed to changes in discount rate assumptions on insurance reserves [4]. Aflac Japan Performance - In yen terms, Aflac Japan's net earned premiums for Q4 2025 were ¥252.6 billion, a decrease of 1.9% year-over-year [7][8]. - Adjusted net investment income in yen decreased by 3.9% to ¥97.4 billion [7]. - For the full year, net earned premiums in yen were ¥1.0 trillion, down 3.9% from the previous year [8]. Aflac U.S. Performance - Aflac U.S. net earned premiums increased by 4.0% to $1.5 billion in Q4 2025, reflecting improved sales [12][13]. - Total adjusted revenues for Aflac U.S. were up 3.3% to $1.7 billion in Q4 2025 [12]. - For the full year, net earned premiums increased by 2.9% to $6.0 billion [13]. Capital Management - The board declared a first-quarter dividend of $0.61 per share, payable on March 2, 2026 [17]. - Aflac repurchased $800 million worth of shares in Q4 2025, with a total of $3.5 billion in share repurchases for the year [17][22].

Senior Executive Vice President CFO, Aflac Incorporated Fourth Quarter 2025 Update Max K. Brodén Forward-Looking Information and Non-U.S. GAAP Financial Measures The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materiall ...