Loading...
•
Sep 30
Aflac Q3 2025 Earnings Report
Aflac Incorporated reported strong third quarter 2025 results, driven by significant net investment gains and increased adjusted earnings.
Key Takeaways
Aflac Incorporated delivered a robust third quarter in 2025, with total revenues reaching $4.7 billion, a substantial increase from the prior year, primarily due to net investment gains. The company reported net earnings of $1.6 billion and adjusted earnings of $1.3 billion, reflecting strong operational performance and effective capital deployment, including significant share repurchases.
Total revenues surged to $4.7 billion, a 60.7% increase year-over-year, largely due to a shift from net investment losses to gains.
Net earnings dramatically improved to $1.6 billion, or $3.08 per diluted share, compared to a net loss in the prior year.
Adjusted earnings grew by 9.6% to $1.3 billion, with adjusted earnings per diluted share increasing by 15.3% to $2.49.
Aflac Japan's new annualized premium sales increased by 11.8% in yen terms, while Aflac U.S. sales grew by 2.8%.
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.comU.S. Revenue
CapyFin.com Forward Guidance
Aflac expects continued strong performance, driven by strategic execution in both Japan and the U.S., sustained sales momentum, and a commitment to shareholder returns through dividends and share repurchases.
Positive Outlook
- Aflac Japan's sales are expected to continue growing, particularly with the success of the Miraito cancer insurance product.
- The company anticipates ongoing strong premium persistency in Aflac Japan.
- Aflac U.S. is expected to maintain momentum in net earned premiums and sales, especially in group life and disability products.
- The company plans to continue generating strong capital and cash flows, supporting its balanced approach to growth investments and operating efficiencies.
- Aflac is committed to extending its record of 43 consecutive years of dividend increases, supported by its financial strength.
Challenges Ahead
- Fluctuations in the yen/dollar exchange rate could impact reported results, although management evaluates performance on a currency-neutral basis.
- The competitive landscape in both Japan and the U.S. markets could pose challenges to sales growth.
- Economic conditions and market volatility could affect investment income and overall financial performance.
- Changes in regulatory environments in either Japan or the U.S. could impact operations and profitability.
- While not explicitly stated as a negative, the report highlights the need for prudent expense management, suggesting ongoing cost pressures.