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Sep 30, 2024

Aflac Q3 2024 Earnings Report

Aflac's Q3 2024 results were announced, with a net loss reported due to increased foreign exchange-related losses.

Key Takeaways

Aflac Incorporated reported a net loss of $93 million for the third quarter of 2024, primarily due to increased foreign exchange-related losses. Adjusted earnings were $1.2 billion, reflecting a 10.6% increase. The company deployed $500 million to repurchase 4.9 million of its common shares.

Total revenues were $2.9 billion, compared to $5.0 billion in the third quarter of 2023.

Net losses were $93 million, or $0.17 per diluted share, compared to earnings of $1.6 billion, or $2.64 per diluted share a year ago.

Adjusted earnings were $1.2 billion, compared with $1.1 billion in the third quarter of 2023, reflecting an increase of 10.6%.

Aflac Japan's total new annualized premium sales increased 12.3% to $117 million.

Total Revenue
$2.95B
Previous year: $4.95B
-40.4%
EPS
$2.16
Previous year: $1.84
+17.4%
Gross Profit
$2.95B
Previous year: $4.95B
-40.4%
Cash and Equivalents
$5.61B
Previous year: $111B
-95.0%
Total Assets
$128B
Previous year: $125B
+2.7%

Aflac

Aflac

Aflac Revenue by Segment

Forward Guidance

Aflac is focusing on profitable growth in the U.S. and Japan with new products and distribution strategies.

Positive Outlook

  • Continued focus on generating profitable growth in the U.S. and Japan.
  • Concentrating on third sector products and introducing policies to new and younger customers in Japan.
  • Achieved 5.5% sales growth in the U.S. for the quarter.
  • Focusing on more profitable growth and seeing improvement in net earned premiums in the U.S.
  • Generating strong capital and cash flows while maintaining commitment to prudent liquidity and capital management.

Challenges Ahead

  • Difficult conditions in global capital markets and the economy, including inflation.
  • Defaults and credit downgrades of investments.
  • Global fluctuations in interest rates and exposure to significant interest rate risk.
  • Concentration of business in Japan.
  • Limited availability of acceptable yen-denominated investments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income