Aflac(US:AFL)2025-02-05 22:22Financial Performance - Aflac Japan's adjusted earnings for Q4 2024 were $747 million, a decrease of 1.1% compared to Q4 2023's $755 million[9]. - Aflac U.S. reported adjusted earnings of $330 million for Q4 2024, reflecting a 9.3% increase from $302 million in Q4 2023[9]. - Total pretax adjusted earnings for the company in Q4 2024 were $1,073 million, a significant increase of 45.2% from $739 million in Q4 2023[9]. - Net earnings for the full year 2024 reached $5,443 million, representing a 16.8% increase from $4,659 million in 2023[9]. - The diluted earnings per share for Q4 2024 was $7.78, up 23.8% from $6.28 in Q4 2023[9]. - Aflac's total adjusted earnings for the full year 2024 were $4,072 million, a 9.1% increase from $3,733 million in 2023[9]. - The effective tax rate for the company in 2024 was 15.2%, compared to 11.5% in 2023[9]. - Net earnings for 2023 were $4,659 million, reflecting a 16.8% increase from $5,443 million projected for 2024[10]. - The company reported a pretax earnings increase of 8.1% to $5,262 million in 2023 from $4,869 million in 2022[10]. - The company anticipates an adjusted EPS of $7.21 for 2024, indicating a projected growth of 15.7%[29]. Revenue and Premiums - Aflac Japan's total revenue for 2024 was $3,494 million, an 8.0% increase from $3,234 million in 2023[9]. - Aflac U.S. total revenue for 2024 was $1,419 million, a decrease of 5.5% from $1,501 million in 2023[9]. - Total net earned premiums decreased by 1.6% to $14,123 million in 2023 from $14,318 million in 2022[10]. - Total revenues for 2023 were $18,701 million, a slight increase of 1.2% from $18,927 million in 2024[10]. - Total net earned premiums for 2023 increased by 2.7% to $5,675 million compared to 2022[54]. - Total annualized premium in force for Aflac U.S. increased by 3.3% to $6,161 million in 2023 compared to $5,967 million in 2022[65]. - New annualized premium sales for Aflac U.S. reached $1,558 million in 2023, reflecting a 5.0% increase from $1,483 million in 2022[65]. - Total net earned premiums for Aflac Japan decreased by 8.2% year-over-year to $8,047 million for 2023, with a forecasted decline of 13.9% to $6,930 million for 2024[72]. Investment Income - Net investment income increased by 17.5% to $3,811 million in 2023 compared to $3,656 million in 2022[10]. - The company experienced a 4.5% increase in net investment income, reaching $5,262 billion in 2023[19]. - Adjusted net investment income rose by 8.6% to $820 million in 2023, with a projected increase of 3.3% to $847 million in 2024[54]. - Adjusted net investment income for 2023 was $44 million, a 212.5% increase from the previous year[91]. Expenses and Claims - Total net benefits and claims decreased by 8.6% to $8,211 million in 2023 from $8,594 million in 2022[10]. - Total benefits and claims, net, decreased by 4.9% to $2,431 million in 2023, with a forecasted increase of 12.1% to $2,726 million in 2024[54]. - Total adjusted expenses for 2023 were $2,691 million, up 4.6% from 2022, with a projected decrease of 3.6% to $2,594 million in 2024[54]. - Total benefits and claims, net for Aflac Japan decreased by 7.6% year-over-year to $5,313 million for 2023, with a projected decline of 18.7% to $4,317 million for 2024[72]. Assets and Equity - The total assets decreased to $126,724 million in 2023 from $131,738 million in 2022[16]. - Shareholders' equity increased to $21,985 million in 2023 from $20,140 million in 2022[16]. - The company reported a total asset value of $21,861 million in 2023, with a slight increase to $21,930 million projected for 2024[56]. - Total shareholders' equity increased to $26,098 million in 2024, up from $21,985 million in 2023, reflecting a growth of approximately 18.5%[45]. Market and Sales Strategy - The company plans to continue focusing on market expansion and new product development to drive future growth[54]. - Aflac U.S. anticipates a 3.6% increase in total annualized premium in force to $6,383 million in 2024[65]. - The company plans to enhance its product mix, focusing on critical illness and hospital intensive care products to drive future growth[69]. - Aflac Japan's sales force data indicates a strategic focus on enhancing sales in the cancer insurance segment[86]. Currency and Foreign Exchange - The impact of foreign currency on adjusted earnings was a decrease of $0.19 in 2023, highlighting the sensitivity to currency fluctuations[29]. - The yen/dollar exchange rate for 2023 was 141.83, a 7.4% decrease compared to the previous year[89]. - Adjusted earnings per diluted share for 2023 were significantly impacted by foreign currency fluctuations, with a focus on the yen's performance[100]. - The company plans to continue monitoring the impact of foreign currency translation on its financial performance, particularly in relation to its operations in Japan[94].