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Aflac Incorporated Announces First Quarter Results, Reports First Quarter Net Earnings of $29 Million, Declares Second Quarter Dividend
AFLAflac(AFL) Prnewswire·2025-04-30 20:05

Core Insights - Aflac Incorporated reported a significant decline in total revenues for Q1 2025, amounting to 3.4billion,downfrom3.4 billion, down from 5.4 billion in Q1 2024, primarily due to net investment losses of 963millioncomparedtonetgainsof963 million compared to net gains of 951 million in the previous year [1][20][27] - Net earnings for the first quarter were 29million,or29 million, or 0.05 per diluted share, a drastic decrease from 1.9billion,or1.9 billion, or 3.25 per diluted share, in the same quarter last year [1][20][27] Financial Performance - Net investment losses in Q1 2025 were 963million,drivenbylossesonderivativesandforeigncurrencyactivities,aswellasadecreaseinthefairvalueofequitysecurities[2][3]−Adjustedearningsforthequarterwere963 million, driven by losses on derivatives and foreign currency activities, as well as a decrease in the fair value of equity securities [2][3] - Adjusted earnings for the quarter were 906 million, a decrease of 5.7% from 961millioninQ12024,withadjustedearningsperdilutedshareremainingflatat961 million in Q1 2024, with adjusted earnings per diluted share remaining flat at 1.66 [3][27] - Shareholders' equity increased to 26.3billion,or26.3 billion, or 48.55 per share, compared to 23.5billion,or23.5 billion, or 41.27 per share, a year earlier [5][21] Segment Performance - Aflac Japan's net earned premiums in yen decreased by 5.0% to ¥256.5 billion, while in dollar terms, net earned premiums fell by 7.4% to 1.7billion[7][8]−AflacU.S.sawa1.81.7 billion [7][8] - Aflac U.S. saw a 1.8% increase in net earned premiums to 1.5 billion, with total adjusted revenues up 1.3% to 1.7billion[10][11]SalesandNewProducts−TotalnewannualizedpremiumsalesinJapanincreasedby12.61.7 billion [10][11] Sales and New Products - Total new annualized premium sales in Japan increased by 12.6% to ¥14.1 billion, reflecting strong sales of new products [9] - In the U.S., sales increased by 3.5% to 309 million, driven by group product sales [11] Capital Management - The board declared a second-quarter dividend of 0.58pershare,with0.58 per share, with 900 million deployed for share repurchases in Q1 2025 [13][17] - The company maintained a strong focus on capital and cash flow generation while managing liquidity and capital effectively [17] Outlook and Strategy - The CEO expressed satisfaction with the adjusted earnings and premium persistency rates in both Japan and the U.S., emphasizing a focus on profitable growth and improved underwriting discipline [14][16]