Aflac Incorporated Announces Third Quarter Results, Reports Third Quarter Net Earnings of $1.6 Billion, Declares Fourth Quarter Dividend

Core Insights - Aflac Incorporated reported strong third-quarter results for 2025, with total revenues of $4.7 billion, a significant increase from $2.9 billion in the same quarter of 2024, primarily due to net investment gains of $275 million compared to losses of $1.4 billion a year ago [2][3][19] Financial Performance - Net earnings for the third quarter of 2025 were $1.6 billion, or $3.08 per diluted share, a turnaround from net losses of $93 million, or $0.17 per diluted share, in the previous year [2][3][26] - Adjusted earnings for the third quarter were $1.3 billion, reflecting a 9.6% increase from $1.2 billion in the same quarter of 2024, with adjusted earnings per diluted share rising 15.3% to $2.49 [3][32] - For the first nine months of 2025, total revenues decreased by 9.1% to $12.3 billion, with net earnings of $2.3 billion, or $4.21 per diluted share, down from $3.5 billion, or $6.23 per diluted share, in the same period of 2024 [6][11][34] Shareholders' Equity - Shareholders' equity at the end of the third quarter was $28.7 billion, or $54.57 per share, up from $24.8 billion, or $44.60 per share, a year earlier [5][7] - The annualized return on average shareholders' equity in the third quarter was 23.5% [5] Aflac Japan Performance - In yen terms, Aflac Japan's net earned premiums were ¥245.2 billion for the quarter, a 4.0% decrease year-over-year, while adjusted net investment income was relatively flat at ¥98.0 billion [8][9] - The pretax adjusted profit margin for the Japan segment improved to 52.2%, compared to 44.7% a year ago [8] Aflac U.S. Performance - Aflac U.S. net earned premiums increased by 2.5% to $1.5 billion in the third quarter, supported by improved sales [13][14] - The pretax adjusted profit margin for the U.S. segment was 21.7%, up from 20.8% a year ago [13] Sales and New Products - Total new annualized premium sales increased by 11.8% to ¥19.6 billion, primarily driven by strong sales of the new cancer insurance product, Miraito [12] - For the first nine months, total new sales increased by 16.1% to ¥54.4 billion [12] Capital Management - The board declared a fourth-quarter dividend of $0.58 per share, with a total of $1.0 billion deployed for share repurchases in the third quarter [18][22] - The company maintains a strong commitment to capital management and liquidity, celebrating 43 consecutive years of dividend increases [22]