Financial Performance - Aflac's U S GAAP ROE decreased significantly from 33% in 1Q24 to 04% in 1Q25[9, 33] - Adjusted earnings per diluted share remained consistent at $166 in both 1Q25 and 1Q24[31] - Adjusted earnings excluding current period foreign currency impact saw a slight increase of 06% from $166 in 1Q24 to $167 in 1Q25[31] - Adjusted earnings decreased by 57% from $961 million in 1Q24 to $906 million in 1Q25[32] - Adjusted earnings excluding current period foreign currency impact decreased by 49% from $961 million in 1Q24 to $914 million in 1Q25[32] Persistency and Operating Ratios - Aflac Japan maintained solid persistency with a rate of 938% in 1Q25[11] - Aflac U S also maintained solid persistency with a rate of 793% in 1Q25[16] - Aflac Japan's YTD actual benefit ratio was 658%, expense ratio was 196%, and pretax profit margin was 318%[14] - Aflac U S's YTD actual benefit ratio was 477%, expense ratio was 376%, and pretax profit ratio was 208%[18] Capital Management and Ratios - Aflac continued tactical capital deployment through dividends and share repurchases, with $317 million in dividends and repurchase in 1Q25[20] - The company maintains strong capital ratios, with an estimated regulatory ESR in Japan greater than 250% and a combined RBC ratio in the U S greater than 600%[22] - The adjusted leverage ratio was 207% in 1Q25[25]

Core Viewpoint - Aflac reported quarterly earnings of $1.66 per share, slightly missing the Zacks Consensus Estimate of $1.68 per share, indicating a -1.19% earnings surprise [1]. Financial Performance - Aflac's revenues for the quarter ended March 2025 were $4.32 billion, which was 1.26% below the Zacks Consensus Estimate and a decrease from $5.44 billion year-over-year [2]. - Over the last four quarters, Aflac has surpassed consensus EPS estimates two times and topped revenue estimates only once [2]. Stock Performance - Aflac shares have increased approximately 5% since the beginning of the year, contrasting with a -5.5% decline in the S&P 500 [3]. - The current Zacks Rank for Aflac is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.74 on revenues of $4.4 billion, while for the current fiscal year, the estimate is $6.84 on revenues of $17.62 billion [7]. - The trend of estimate revisions for Aflac is currently mixed, which may change following the recent earnings report [6]. Industry Context - The Insurance - Accident and Health industry, to which Aflac belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8].

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 ...

Industry Overview - The insurance industry is expected to benefit from rate increases, strong retention rates, new business growth, an active M&A strategy, and ongoing technological advancements in Q1 2025 [1] - However, interest rate cuts, an active catastrophe environment, and continued inflationary pressures may dampen overall growth prospects for insurers [1] Financial Performance Expectations - Total earnings for finance companies in Q1 2025 are anticipated to rise by 8.2% year-over-year, with revenues expected to improve by 3.3% [2] - Insurance companies are likely to see revenue growth driven by strong premiums from casualty insurance rate increases, exposure growth, and solid customer retention rates [3] Market Dynamics - U.S. commercial insurance rates experienced an overall decline in Q1 2025, primarily due to falling property insurance rates, while the casualty market saw strong price increases due to higher claim severity [4] - Lower interest rates are expected to pressure life insurers' investment returns but may encourage M&A financing, allowing insurers to diversify portfolios and enhance policy sales [5][6] Underwriting and Claims Environment - An active catastrophe environment poses challenges to insurers' underwriting performance, but such events typically lead to stronger policy renewal activity and prudent rate hikes [7] - The aging U.S. population is expected to maintain strong demand for life insurance and protection products, contributing to steady premium inflows [8] Specific Company Insights Allstate - Expected to see higher net premiums across most business lines, supported by rate increases, with a consensus estimate of $2.27 per share, indicating a 55.8% decline year-over-year [12][13] - Revenue consensus is pegged at $17.1 billion, implying 11% growth from the previous year [13] Aflac - Revenue growth is anticipated from U.S. operations, with a consensus estimate of $1.68 per share, indicating a 1.2% rise year-over-year, but revenues are expected to fall by 19.5% to $4.4 billion [14] - Challenges include a decline in sales of group voluntary benefit products and headwinds in the Japan segment [14] Prudential Financial - Expected to gain from higher fees and improved net investment spread, with a consensus estimate of $3.21 per share, indicating a 2.9% rise year-over-year, but revenues are expected to drop by 33% to $14.5 billion [15] - Growth supported by a diversified product portfolio in Japan and expanded channels in Brazil [15] MetLife - Anticipated to benefit from rising premiums across most segments, with a consensus estimate of $1.99 per share, indicating an 8.7% rise year-over-year, and revenues expected to grow by 7% to $18.2 billion [16] - Growth driven by strengthening operations in international markets, particularly Latin America [16]

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]

Core Insights - The Aflac Wellness Matters Survey highlights that 90% of Americans delay preventive checkups or screenings, with younger generations particularly affected by various barriers [1][2][3] Group 1: Preventive Care Challenges - 94% of Americans face barriers to obtaining recommended screenings in a timely manner [2] - Common screenings avoided include pap smears (33%), prostate exams (32%), colonoscopies (32%), mammograms (31%), blood tests (31%), full body skin cancer exams (27%), and STD screenings (22%) [3] - Millennials (62%) and Gen Z (61%) are the most likely to avoid these screenings [3] Group 2: Attitudes Towards Health Care - 65% of Americans become proactive about their health only after experiencing a health scare [4] - Those who believe they will be diagnosed with cancer are more likely to delay screenings (62% vs. 42%) [4] Group 3: Primary Care Access - Nearly 20% of Americans lack a regular primary care physician, often citing good health as the reason [7] - 41% of Americans, particularly Gen Z (51%) and millennials (54%), primarily use urgent care or emergency rooms for medical needs [7] Group 4: Generational Differences - Younger generations are more likely to consult family and friends or social media for health concerns, with 68% interested in using AI for health issues [8][9] - Gen Z women (68%) are more likely to skip screenings compared to Gen Z men (55%) [10] Group 5: Influence of Community and Family - 70% of individuals confident in their loved ones' health priorities are more likely to prioritize their own health [12] - 24% of those diagnosed with cancer were urged by a loved one to get checked, indicating the importance of social support in health care decisions [13][14] Group 6: Aflac's Role and Commitment - Aflac emphasizes the importance of preventive care and the establishment of trusted relationships with primary care physicians [6][15] - The company has been recognized for its ethical practices and commitment to corporate social responsibility [17][18]

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]