Core Insights - Aflac Incorporated (AFL) reported third-quarter 2025 adjusted earnings per share (EPS) of $2.49, exceeding the Zacks Consensus Estimate by 38.3% and improving 15.3% year over year [1] - Adjusted revenues reached $4.7 billion, a significant increase of 60.7% year over year, surpassing the consensus mark by 5.6% [1][2] Financial Performance - Strong investment income and improved performance in the U.S. segment contributed to the quarterly results, driven by higher sales of group life and disability products [2] - Adjusted net investment income rose 7.7% year over year to $1 billion, while total net benefits and claims decreased by 10% to $1.4 billion [3] - Total acquisition and operating expenses increased by 3.8% year over year to $1.3 billion [3] Segment Analysis - **Aflac Japan**: Adjusted revenues fell 1.8% year over year to $2.3 billion, missing the consensus estimate of $2.4 billion. Net earned premiums decreased by 2.7% to $1.66 billion, also below the consensus mark [4] - **Aflac U.S.**: Adjusted revenues grew 2.6% year over year to $1.73 billion, slightly missing the consensus estimate of $1.75 billion. Total net earned premiums increased by 2.5% to $1.5 billion, marginally below the consensus mark [6] Financial Position - As of September 30, 2025, Aflac had total cash and cash equivalents of $6.8 billion, an increase of 8.7% from the end of 2024. Total assets rose by 4% to $122.3 billion [8] - Adjusted debt increased by 10.7% to $8 billion, with a debt to adjusted capitalization ratio of 22%, deteriorating by 230 basis points from the end of 2024 [9] Capital Deployment - Aflac repurchased 9.3 million shares worth $1 billion in the third quarter, with 121.6 million shares remaining for buyback as of September 30, 2025 [10] - The company announced a dividend of 58 cents per share for the fourth quarter, payable on December 1, 2025 [10] 2025 Outlook - Aflac anticipates a benefit ratio of 58-60% for the Japan unit in 2025, improved from the previous guidance of 64-66%. The U.S. unit's benefit ratio is projected to remain within 48-52% [11] - The expense ratio for Aflac Japan is expected to be 20-23%, while for Aflac U.S., it is projected to be 36-39% [12] - Underlying earned premiums for the Japan unit are likely to decline by 1-2% year over year in 2025 [12]