Financial Performance - Aflac Japan reported adjusted earnings of $722 million for Q1 2025, a decrease of 10.9% compared to $810 million in Q1 2024[8]. - Aflac U.S. achieved adjusted earnings of $358 million in Q1 2025, reflecting a slight increase of 0.6% from $356 million in Q1 2024[8]. - The company's total pretax adjusted earnings for Q1 2025 were $1,123 million, down 3.4% from $1,163 million in Q1 2024[8]. - Net earnings for Q1 2025 were reported at $29 million, a significant decline of 98.5% compared to $1,879 million in Q1 2024[8]. - The diluted earnings per share for Q1 2025 were $0.05, a drastic drop from $3.25 in Q1 2024, indicating a 98.5% decrease[8]. - Total revenues for 2023 decreased to $18,701 million, a decline of 37.5% compared to 2022[11]. - Net earned premiums for 2023 were $14,123 million, down 2.2% from $14,901 million in 2022[11]. - Net investment income increased to $3,811 million in 2023, compared to $3,656 million in 2022, reflecting a growth of 4.3%[11]. - Net earnings for 2023 were $4,659 million, reflecting a slight increase from $4,418 million in 2022[11]. - The company expects net earnings to reach $5,443 million in 2024, representing a projected growth of 16.7%[11]. Investment and Assets - Aflac's investment results for Q1 2025 included adjusted net investment losses of $924 million, compared to gains of $1,009 million in Q1 2024[8]. - Total assets decreased from $165.086 billion in 2020 to $126.724 billion in 2023, representing a decline of approximately 23%[15]. - Total liabilities decreased from $131.527 billion in 2020 to $104.739 billion in 2023, a reduction of about 20%[15]. - Total invested assets as of March 31, 2023, amount to $104.742 billion, down from $111.219 billion in 2022[28]. - Fixed Maturity Securities decreased to $88.508 billion in 2023 from $94.525 billion in 2022[28]. - The total portfolio value is projected to be $100.091 billion in 2024, up from $94.887 billion in 2023[28]. Shareholder Metrics - Adjusted Book Value Per Share for 2023 is $47.55, reflecting a 10.1% increase from the previous year[20]. - Adjusted Earnings Per Share (EPS) for 2023 is $6.23, representing a 9.9% growth year-over-year, with an adjusted EPS excluding foreign currency impact of $6.43, a 13.4% increase[25]. - The projected net earnings per diluted share for 2024 is $9.63, up from $7.78 in 2023, indicating a growth of 23.7%[12]. - The company expects an adjusted EPS of $7.21 for 2024, indicating a 15.7% growth[25]. Operational Efficiency - Total acquisition and operating expenses for 2023 were $5,228 million, a decrease of 4.1% compared to $5,384 million in 2022[11]. - The company reported a net investment gain of $590 million in 2023, compared to a gain of $363 million in 2022[11]. - The combined ratio for 2023 was 77.3%, indicating a 22.7% pretax profit margin[60]. - The persistency ratio for 2023 was 78.6%, showing a slight decrease from 2022[60]. Future Projections - The company plans to maintain a focus on market expansion and new product development in the upcoming years[15]. - The company anticipates a return on equity of 22.6% for 2024[23]. - The company expects a further decrease in net earned premiums to $1,050 million in 2024, representing a 6.9% decline[78]. - The company anticipates total net earned premiums to increase to $680 million in 2024, representing a growth of 70% from 2023[90]. Market and Sales - New annualized premium sales in 2023 amounted to $1,558 million, representing a 5.0% increase year-over-year[63]. - The sales force in 2023 consisted of 11,566 recruited agents, with an average weekly productivity of 249,663[67]. - Aflac Japan's annualized premium sales for 2023 were ¥1,246.4 billion, down 4.2% from 2022[81]. - New annualized premium sales in Aflac Japan for 2023 increased by 8.8% to ¥52.234 billion[81]. Tax and Accounting Changes - Aflac's effective tax rate for Q1 2025 was 80.3%, compared to 13.4% in Q1 2024[8]. - The company adopted the LDTI accounting standard as of January 1, 2023, impacting the presentation of deferred profit liability[3].

Core Insights - Aflac Incorporated reported a significant decline in total revenues for Q1 2025, amounting to $3.4 billion, down from $5.4 billion in Q1 2024, primarily due to net investment losses of $963 million compared to net gains of $951 million in the previous year [1][20][27] - Net earnings for the first quarter were $29 million, or $0.05 per diluted share, a drastic decrease from $1.9 billion, or $3.25 per diluted share, in the same quarter last year [1][20][27] Financial Performance - Net investment losses in Q1 2025 were $963 million, driven by losses on derivatives and foreign currency activities, as well as a decrease in the fair value of equity securities [2][3] - Adjusted earnings for the quarter were $906 million, a decrease of 5.7% from $961 million in Q1 2024, with adjusted earnings per diluted share remaining flat at $1.66 [3][27] - Shareholders' equity increased to $26.3 billion, or $48.55 per share, compared to $23.5 billion, or $41.27 per share, a year earlier [5][21] Segment Performance - Aflac Japan's net earned premiums in yen decreased by 5.0% to ¥256.5 billion, while in dollar terms, net earned premiums fell by 7.4% to $1.7 billion [7][8] - Aflac U.S. saw a 1.8% increase in net earned premiums to $1.5 billion, with total adjusted revenues up 1.3% to $1.7 billion [10][11] Sales and New Products - Total new annualized premium sales in Japan increased by 12.6% to ¥14.1 billion, reflecting strong sales of new products [9] - In the U.S., sales increased by 3.5% to $309 million, driven by group product sales [11] Capital Management - The board declared a second-quarter dividend of $0.58 per share, with $900 million deployed for share repurchases in Q1 2025 [13][17] - The company maintained a strong focus on capital and cash flow generation while managing liquidity and capital effectively [17] Outlook and Strategy - The CEO expressed satisfaction with the adjusted earnings and premium persistency rates in both Japan and the U.S., emphasizing a focus on profitable growth and improved underwriting discipline [14][16]

Insurance provider Aflac Incorporated (AFL) is set to report its first-quarter 2025 results on April 30, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.68 per shareon revenues of $4.38 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.)The first-quarter earnings estimate declined by a penny over the past 60 days. The bottom-line projection indicates year-over-year growth of 1.2%. However, the Zacks Co ...

The insurance industry is expected to have benefited on rate increases, strong retention rates, new business growth, an active merger and acquisition (M&A) strategy and ongoing technological advancements in the first quarter of 2025. However, interest rate cuts, an active catastrophe environment and continued inflationary pressures are likely to have dampened overall growth prospects for insurers. Some of the insurers, including The Allstate Corporation (ALL) , Aflac Incorporated (AFL) , Prudential Financia ...

Company Overview - Aflac (AFL) is expected to report quarterly earnings of $1.68 per share, reflecting a year-over-year increase of +1.2% [3] - Revenues are anticipated to be $4.38 billion, which represents a decline of 19.5% compared to the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on April 30, 2025, and could influence stock movement based on whether the results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised 0.99% higher in the last 30 days, indicating a slight positive sentiment among analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that Aflac has a negative Earnings ESP of -0.65%, suggesting a bearish outlook from analysts [10][11] - Aflac currently holds a Zacks Rank of 3 (Hold), complicating predictions of an earnings beat [11] Historical Performance - In the last reported quarter, Aflac was expected to earn $1.62 per share but only achieved $1.56, resulting in a surprise of -3.70% [12] - Over the past four quarters, Aflac has beaten consensus EPS estimates three times [13] Industry Context - Another player in the insurance sector, Unum (UNM), is expected to report earnings of $2.19 per share, reflecting a year-over-year increase of +3.3% [17] - Unum's revenues are projected to be $3.33 billion, up 4.1% from the previous year [17] - Unum has a negative Earnings ESP of -0.58% and a Zacks Rank of 4 (Sell), indicating challenges in predicting an earnings beat [18]

Aflac Wellness Matters Survey uncovers what may be keeping Americans from getting preventive checkups COLUMBUS, Ga., April 23, 2025 /PRNewswire/ -- April is National Cancer Prevention and Early Detection Month, a time to emphasize the importance of preventive health care and the value of early detection. Key findings from the third annual Wellness Matters Survey1 released by Aflac, the leading provider of supplemental health insurance in the U.S.,2 reveal a vast majority of Americans (90%) put off getting a ...

COLUMBUS, Ga., April 3, 2025 /PRNewswire/ -- Aflac Incorporated (NYSE: AFL) announced today that it will release first quarter 2025 financial results after the market closes on April 30, 2025. At that time, earnings materials, including the quarterly earnings release and financial supplement, will be available, along with a financial update video from Senior Executive Vice President and Chief Financial Officer Max Brodén, on the company's Investor Relations website, investors.aflac.com.Aflac Incorporated wi ...

Core Investment Insights - Investing in dividend-paying stocks is a strategy for building long-term wealth, as these companies often have strong business models and prudent capital management [1] - Over five decades, dividend-paying stocks have delivered an average annual return of 9.17%, significantly outperforming non-dividend payers at 4.27% [2] - Companies that initiate or grow their dividends have returned even better, with an average return of 10.19% [2] Company Analysis: Chubb - Chubb operates in 54 countries, providing a wide range of insurance products including property and casualty, personal accident, and life insurance [4] - Berkshire Hathaway has invested in Chubb, purchasing 27 million shares, making it the ninth-largest holding in Berkshire's U.S. stock portfolio [5] - Chubb's combined ratio has averaged 90.6% over the past 22 years, well below the industry average of 99.7%, indicating strong underwriting ability [8] - The company recently approved a 6.5% increase in its dividend, marking the 32nd consecutive year of dividend growth [8] Company Analysis: Aflac - Aflac offers life and supplemental insurance plans, facing challenges during low interest rates and the COVID-19 pandemic [9][10][11] - The stock has increased by 85% since 2022 due to improving claims costs and rising interest rates [11] - Aflac raised its dividend payout by 16%, extending its 42-year history of dividend growth [12] Company Analysis: Cincinnati Financial - Cincinnati Financial has a strong history of rewarding investors and solid underwriting performance [14] - The company grew its earned premiums by 12% to $8.9 billion last year, with investment income increasing by 15% to $1 billion [15] - Cincinnati Financial announced a 7.4% increase in its dividend payout, achieving a 65-year streak of annual payout increases [15]

The Zacks Accident and Health Insurance industry is expected to benefit from an increase in underwriting exposure. Aflac Incorporated (AFL) , Unum Group (UNM) , Trupanion (TRUP) , Employers Holdings, Inc. (EIG) and AMERISAFE, Inc. (AMSF) are expected to be driven by prudent underwriting standards. However, higher inflation, as well as rising medical costs, could offset the positives. The industry has been witnessing soft pricing over the past several quarters, and this is not expected to change any time soo ...

This is the second article in this short series, the first one can be read here , where we discuss companies that have the potential to reach Dividend King statusI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sharing my thoughts with the Seeking Alpha community.Analyst’s ...