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Sep 30, 2022
Aflac Q3 2022 Earnings Report
Aflac reported Q3 2022 results with net earnings of $1.6 billion.
Key Takeaways
Aflac Incorporated reported third quarter net earnings of $1.6 billion, or $2.53 per diluted share, compared to $888 million, or $1.32 per diluted share a year ago. Total revenues were $4.8 billion, compared with $5.2 billion in the third quarter of 2021.
Total revenues were $4.8 billion, compared with $5.2 billion in the third quarter of 2021.
Net earnings were $1.6 billion, or $2.53 per diluted share, compared with $888 million, or $1.32 per diluted share a year ago, reflecting a release of $695 million in deferred taxes in the third quarter.
Adjusted earnings in the third quarter were $725 million, compared with $1.0 billion in the third quarter of 2021, reflecting a decrease of 29.7%.
Aflac U.S. sales increased 11.8% in the quarter to $334 million, reflecting continued improvement from investment in growth initiatives as well as productivity gains.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Aflac expects sales to improve in the fourth quarter, with sales growth in both Japan and the U.S. segments.
Positive Outlook
- Pandemic conditions in Japan and the U.S. continued to move toward normalcy, contributing to positive sales growth in both segments in the third quarter and momentum into the fourth quarter.
- Sales continued to improve in the quarter with the launch of new cancer insurance product through agencies in August, generating an increase of 10.2% in Japan.
- Persistency remained strong in the third quarter in Japan.
- Benefit ratio will normalize in the fourth quarter given the narrowed scope for deemed hospitalization introduced toward the end of the third quarter in Japan.
- Continued improvement in the productivity of agents and brokers as we enter what is typically our strongest quarter of the year in the U.S.
Challenges Ahead
- The company generated solid earnings for the first nine months, despite the weakening yen.
- We continue to monitor evolving pandemic conditions, as this impacts our ability to meet face-to-face with customers, which continues to be key to a recovery in sales.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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