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]

Core Insights - Aflac reported quarterly earnings of $2.49 per share, exceeding the Zacks Consensus Estimate of $1.80 per share, and showing an increase from $2.16 per share a year ago, resulting in an earnings surprise of +38.33% [1] - The company generated revenues of $4.74 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.59%, and significantly up from $2.95 billion year-over-year [2] - Aflac's stock has underperformed the market with a gain of about 3.4% since the beginning of the year, compared to the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.70 on revenues of $4.47 billion, and for the current fiscal year, it is $6.91 on revenues of $17.81 billion [7] - The estimate revisions trend for Aflac was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Insurance - Accident and Health industry, to which Aflac belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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]

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]

Core Insights - Aflac Incorporated (NYSE:AFL) is recognized as one of the Top 15 Growth Stocks for Long-Term Investors [1] - The company has a significant presence in the Japanese market, which is crucial for its overall performance [2] Group 1: Financial Performance - In Q2 2025, Aflac Japan reported net earned premiums of ¥254.6 billion, reflecting a 23.2% year-over-year increase in sales [2] - The growth was largely attributed to the success of the new cancer insurance product, Miraito [2] Group 2: Strategic Focus - Aflac is prioritizing innovation, product development, and the expansion of its distribution network through strategic partnerships [3] - The company aims to strengthen its distribution channels and enhance its product portfolio to meet changing customer needs [3] Group 3: Dividend Policy - Aflac is recognized as a dividend aristocrat, having increased dividends for 42 consecutive years [4] - The current quarterly dividend is $0.58 per share, with a dividend yield of 2.09% as of October 12 [4]