Aflac Incorporated Announces Third Quarter Results, Reports Third Quarter Net Losses of $93 Million, Declares Fourth Quarter Cash Dividend

Core Insights - Aflac Incorporated reported a significant decline in total revenues for Q3 2024, amounting to $2.9 billion, down 40.4% from $5.0 billion in Q3 2023, with net losses of $93 million compared to net earnings of $1.6 billion a year ago, primarily due to increased foreign exchange-related losses from yen strengthening by 12.9% during the quarter [1][25]. Financial Performance - Net investment losses in Q3 2024 were $1.4 billion, or $2.51 per diluted share, compared to net investment gains of $423 million, or $0.71 per diluted share in the same quarter last year [2]. - Adjusted earnings for Q3 2024 were $1.2 billion, reflecting a 10.6% increase from $1.1 billion in Q3 2023, with adjusted earnings per diluted share rising 17.4% to $2.16 [3][32]. - For the first nine months of 2024, total revenues decreased by 9.4% to $13.5 billion, with net earnings of $3.5 billion, or $6.23 per diluted share, down from $4.4 billion, or $7.28 per diluted share in the same period of 2023 [6][26]. Shareholder Equity - Shareholders' equity at the end of Q3 2024 was $24.8 billion, or $44.60 per share, compared to $22.7 billion, or $38.63 per share, at the end of Q3 2023 [5]. - The annualized return on average shareholders' equity in Q3 was (1.5)% [5][40]. Aflac Japan Performance - In yen terms, Aflac Japan's net earned premiums were ¥255.4 billion for the quarter, a decrease of 10.5% year-over-year, while total adjusted revenues in yen declined 7.8% to ¥355.3 billion [8]. - Pretax adjusted earnings in yen for the quarter increased 25.5% to ¥158.7 billion, primarily due to lower benefits and expenses [8]. Aflac U.S. Performance - Aflac U.S. net earned premiums increased 2.8% to $1.5 billion in Q3, with total adjusted revenues up 1.4% to $1.7 billion [13]. - Total new annualized premium sales in the U.S. increased 5.5% in the quarter to $379 million, driven by group life and cancer insurance products [15]. Capital Management - The board declared a fourth-quarter dividend of $0.50 per share, with $500 million deployed for share repurchases in Q3 2024 [18][22]. - The company maintained a strong focus on generating profitable growth and managing expenses effectively [19][21].