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Dec 31, 2024
Aflac Q4 2024 Earnings Report
Aflac Incorporated reported strong fourth quarter results with net earnings of $1.9 billion and an increase in its first quarter dividend.
Key Takeaways
Aflac Incorporated delivered solid adjusted earnings for the fourth quarter and the full year, driven by strong sales in Japan and continued focus on profitable growth in the U.S. The company also announced a 16% increase in its first quarter dividend.
Total revenues increased 43.1% to $5.4 billion in Q4 2024, compared to $3.8 billion in Q4 2023.
Net earnings were $1.9 billion, or $3.42 per diluted share, significantly up from $268 million, or $0.46 per diluted share a year ago.
Adjusted earnings increased 18.2% to $865 million, with adjusted earnings per diluted share up 24.8% to $1.56.
The company repurchased $750 million in capital, equating to 7.0 million common shares, in the fourth quarter.
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 committed to generating profitable growth, maintaining strong capital and cash flows, and continuing its dividend increase record.
Positive Outlook
- Continued focus on generating profitable growth in the U.S. and Japan with new products and distribution strategies.
- Strong premium persistency in Aflac Japan (93.4%) and Aflac U.S. (79.3%).
- Continued momentum of Tsumitasu, a new life insurance product in Japan, appealing to younger customers.
- Prudent approach to expense management and maintaining a strong pretax margin in the U.S. segment.
- Commitment to prudent liquidity and capital management, with continued strong net investment income and a record of 42 consecutive years of dividend increases.
Challenges Ahead
- Weaker yen/dollar exchange rate negatively impacted adjusted earnings per share by $0.01.
- Lower sales of group voluntary benefit products in the U.S. due to focus on profitable growth and softer sales of network dental.
- Foreign currency fluctuations can significantly affect reported results, especially with the size of Aflac Japan's operations.
- The company did not provide specific quantitative forward-looking guidance for future periods.
- Potential impact of general economic conditions and infrequent events on financial performance.