Why Is Aflac (AFL) Up 8.9% Since Last Earnings Report?

Core Viewpoint - Aflac's third-quarter 2024 earnings report showed strong adjusted earnings per share, but revenue fell significantly, indicating mixed performance across its segments [2][3][20]. Financial Performance - Aflac reported adjusted earnings per share of $2.16, exceeding estimates by 27.1% and increasing 17.4% year over year [2]. - Revenues decreased from $5 billion in the previous year to $2.9 billion, missing consensus estimates by 36.6% [2]. - Adjusted net investment income rose 2.3% year over year to $936 million, while total net benefits and claims decreased 14.2% to $1.6 billion [4]. Segment Analysis - Aflac Japan: Adjusted revenues fell 10.6% year over year to $2.4 billion, missing estimates by 5%. Total net earned premiums dropped 13.4% to $1.7 billion [6]. - Aflac U.S.: Adjusted revenues increased 1.4% year over year to $1.7 billion but missed estimates by 0.9%. Total net earned premiums rose 2.8% to $1.5 billion [8][9]. Financial Position - As of September 30, 2024, Aflac had total cash and cash equivalents of $5.6 billion, up from $4.3 billion at the end of 2023. Total assets increased to $128.4 billion [11]. - Adjusted debt rose to $7.7 billion from $6.8 billion at the end of 2023, with a debt to adjusted capitalization ratio of 23.7% [12]. Capital Deployment - Aflac repurchased 4.9 million shares for $500 million in the third quarter, with 54.3 million shares remaining for buyback [14]. - The company announced a dividend of 50 cents per share for the fourth quarter, payable on December 2, 2024 [14]. Outlook - Aflac anticipates improved sales in Japan for 2024, focusing on third-sector products and younger customers. The U.S. business is expected to see profitable growth through improved productivity and expense management [15]. - The company projects a benefit ratio of 62-63% for Aflac Japan and 45-47% for Aflac U.S. in 2024 [16].