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Jun 30
Aflac Q2 2025 Earnings Report
Aflac's Q2 2025 earnings were significantly impacted by net investment losses, leading to a substantial decrease in total revenues and net earnings compared to the prior year.
Key Takeaways
Aflac Incorporated reported a significant decline in second-quarter 2025 results, with total revenues falling to $4.2 billion from $5.1 billion in Q2 2024, primarily due to net investment losses. Net earnings decreased to $599 million, or $1.11 per diluted share, from $1.8 billion, or $3.10 per diluted share, in the prior year. Despite the overall decline, Aflac Japan and Aflac U.S. segments showed growth in net earned premiums and sales.
Total revenues decreased by 19.0% to $4.16 billion, primarily driven by net investment losses of $421 million compared to gains in the prior year.
Net earnings plummeted by 65.9% to $599 million, or $1.11 per diluted share, largely due to the aforementioned investment losses.
Aflac Japan's new annualized premium sales increased by 23.2% in yen terms, reflecting strong sales of the new cancer insurance product, Miraito.
Aflac U.S. net earned premiums grew by 3.4% to $1.5 billion, and sales increased by 2.7%, benefiting from group life and disability products.
Aflac
Aflac
Aflac Revenue by Segment
Aflac Revenue by Geographic Location
Revenue by Segment
Aflac Japan Revenue
CapyFin.comAflac U.S. Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.comRevenue by Geographic Location
Japan Revenue
CapyFin.comUS Revenue
CapyFin.com Forward Guidance
Aflac is focused on generating profitable growth in the U.S. and Japan through distribution strategies and refreshed products, aiming to create long-term shareholder value. The company plans to continue its balanced approach of investing in growth and driving long-term operating efficiencies, supported by strong capital and cash flows.
Positive Outlook
- Continued focus on generating profitable growth in both U.S. and Japan segments.
- Strong sales performance in Aflac Japan, particularly with the new cancer insurance product, Miraito.
- Encouraging momentum in Aflac U.S. group business, including group life, disability, and network dental.
- Commitment to maintaining strong premium persistency in both Japan and U.S. operations.
- Intention to continue a balanced approach of investing in growth and driving long-term operating efficiencies, supported by strong capital and cash flows.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- The report does not explicitly mention any anticipated challenges or headwinds for the upcoming periods.
- No specific negative financial targets or outlooks were detailed.
- The company did not highlight any potential risks to its growth strategies.
- No warnings about potential market downturns or increased competition were given.