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Dec 31, 2023
Aflac Q4 2023 Earnings Report
Aflac reported mixed fourth-quarter results with a decrease in total revenues but an increase in net earnings.
Key Takeaways
Aflac Incorporated reported a decrease in total revenues for the fourth quarter of 2023, but net earnings increased. The company continues to focus on growth initiatives in both the U.S. and Japan, with a commitment to increasing dividends and repurchasing shares.
Total revenues decreased to $3.8 billion compared to $3.9 billion in the fourth quarter of 2022.
Net earnings increased to $268 million, or $0.46 per diluted share, compared to $196 million, or $0.31 per diluted share a year ago.
Adjusted earnings decreased by 10.4% to $732 million.
The board of directors declared a first-quarter dividend of $0.50 per share, representing a 19% increase.
Aflac
Aflac
Forward Guidance
Aflac is focused on new products, distribution strategies, and maintaining a balanced approach to investing in growth and driving long-term operating efficiencies.
Positive Outlook
- Aflac delivered very solid earnings for both the quarter and the year.
- Actively concentrating on numerous initiatives in the U.S. and Japan around new products and distribution strategies to set the stage for future growth.
- Fourth quarter medical sales were strong due to the mid-September launch of our new medical insurance product in Japan.
- Pleased with sales increase for the year, which reflected improvements through agencies and alliances, including Japan Post, Dai-ichi Life and Daido Life.
- Continue to generate strong capital and cash flows while maintaining our commitment to prudent liquidity and capital management.
Challenges Ahead
- The market presents challenges in Japan.
- Weaker yen/dollar exchange rate negatively impacted adjusted earnings per share.
- Pretax adjusted earnings in the U.S. were lower than a year ago, primarily due to higher adjusted expenses and benefits offset by higher adjusted net investment income.
- Total adjusted revenues decreased in the Corporate and Other segment due to a decline in adjusted net investment income.
- Pretax adjusted earnings were a loss in the Corporate and Other segment primarily due to the loss related to the novation transaction and higher volume of tax credit investments.