Aflac Incorporated Announces Fourth Quarter Results, Reports Fourth Quarter Net Earnings of $1.9 Billion, Reiterates Increase in First Quarter Dividend of 16%

Core Insights - Aflac Incorporated reported strong financial results for the fourth quarter of 2024, with total revenues increasing to $5.4 billion, a 43.1% rise from $3.8 billion in the same quarter of 2023. Net earnings surged to $1.9 billion, or $3.42 per diluted share, compared to $268 million, or $0.46 per diluted share, a year earlier [1][27]. Financial Performance - Net investment gains in Q4 2024 were $1.0 billion, or $1.86 per diluted share, a significant recovery from net investment losses of $511 million, or $0.87 per diluted share, in Q4 2023. This was driven by net gains on derivatives and foreign currency activities [2]. - Adjusted earnings for the fourth quarter were $865 million, reflecting an 18.2% increase from $732 million in Q4 2023. Adjusted earnings per diluted share rose 24.8% to $1.56 [3][34]. - For the full year 2024, total revenues increased by 1.2% to $18.9 billion, with net earnings rising to $5.4 billion, or $9.63 per diluted share, compared to $4.7 billion, or $7.78 per diluted share, in 2023 [6][36]. Shareholder Equity - Shareholders' equity at the end of Q4 2024 was $26.1 billion, or $47.45 per share, up from $22.0 billion, or $38.00 per share, at the end of Q4 2023. The annualized return on average shareholders' equity was 29.9% [5][41]. Aflac Japan Performance - In yen terms, Aflac Japan's net earned premiums for Q4 2024 were ¥257.4 billion, a decrease of 5.4% year-over-year. Adjusted net investment income increased by 3.7% to ¥101.4 billion [8][9]. - For the full year, net earned premiums in yen were ¥1.1 trillion, down 6.9% from the previous year, while adjusted net investment income rose 12.1% to ¥409.9 billion [9]. Aflac U.S. Performance - Aflac U.S. net earned premiums increased by 2.7% to $1.4 billion in Q4 2024, with adjusted net investment income rising 0.9% to $213 million. Total adjusted revenues were up 2.0% to $1.7 billion [14][15]. - For the full year, net earned premiums increased by 2.7% to $5.8 billion, while total new sales decreased by 1.0% to $1.5 billion [16][15]. Capital Management - The board declared a first-quarter dividend of $0.58 per share, payable on March 3, 2025. In Q4 2024, Aflac repurchased $750 million worth of its common shares [19][23]. - The company has maintained a strong commitment to capital management, repurchasing $2.8 billion in shares for the year [23].