Aflac Delivers Strong Revenue Gains

Core Viewpoint - Aflac reported strong revenue growth in Q4 2024, achieving $5.4 billion, but fell short on earnings per share, which were $1.56 compared to the expected $1.62 [2][3] Financial Performance - Adjusted EPS for Q4 2024 was $1.56, missing estimates by 3.7%, but showed a year-over-year increase of 24.8% from $1.25 [3] - Total revenue reached $5.4 billion, exceeding expectations by 28.6% and reflecting a 43.1% increase from $3.8 billion in Q4 2023 [3] - Net earnings surged to $1.9 billion, a significant increase of 609.7% from $268 million in the previous year [3] - Adjusted earnings rose 18.2% year-over-year to $865 million [3] Business Overview - Aflac is a leading supplemental insurance provider in the U.S. and Japan, focusing on life, cancer, and health insurance products [4] - The Japanese market is crucial for Aflac, significantly contributing to overall earnings [4] Strategic Focus - Recent initiatives include leveraging distribution capabilities and enhancing product offerings to meet evolving customer preferences [5] - Key success factors involve effective product development, maximizing market penetration, and navigating regulatory landscapes in both the U.S. and Japan [5] Quarterly Highlights - Net earnings increased significantly due to robust investment gains of $1.0 billion [6] - In Japan, new annualized premiums grew by 9.0%, driven by the Tsumitasu product, although currency effects led to decreased net earned premiums [6] - The average yen/dollar exchange rate weakened to 152.35, impacting earnings by $0.01 per share [6] - In the U.S., net earned premiums rose modestly by 2.7%, while sales declined by 4.5% due to a focus on profitability [7] - Shareholders' equity increased to $26.1 billion, an 18.7% year-over-year rise [7] Future Outlook - Management emphasizes a strategy focused on sustainable growth and long-term shareholder value [9] - Initiatives include a 16% dividend increase and $750 million allocated for share repurchases [9] - Investors are advised to monitor Aflac's adaptability to currency fluctuations and regulatory developments, especially in Japan [9]