Aflac Q4 2024 Earnings Report
Key Takeaways
Aflac Incorporated announced its fourth-quarter results with total revenues of $5.4 billion, a significant increase from $3.8 billion in the fourth quarter of 2023. Net earnings reached $1.9 billion, or $3.42 per diluted share, compared to $268 million, or $0.46 per diluted share, a year ago. Adjusted earnings were $865 million, reflecting an 18.2% increase. The company highlighted strong sales in Japan and increased persistency in the U.S.
Total revenues increased to $5.4 billion, up from $3.8 billion year-over-year.
Net earnings surged to $1.9 billion, or $3.42 per diluted share.
Adjusted earnings rose by 18.2% to $865 million.
Aflac Japan's new annualized premium sales increased by 9.0%.
Aflac
Aflac
Aflac Revenue by Segment
Aflac Revenue by Geographic Location
Forward Guidance
Aflac is focused on generating profitable growth in the U.S. and Japan with new products and distribution strategies, believing this will create long-term value for shareholders. They intend to continue their balanced approach of investing in growth and driving long-term operating efficiencies.
Positive Outlook
- Continued focus on third sector products in Japan.
- Introducing policies to new and younger customers.
- Momentum of Tsumitasu, the latest life insurance product in Japan.
- Connecting with younger customers to provide them with integrated financial protection and services through different life stages.
- Prudent approach to expense management and maintaining a strong pretax margin.
Challenges Ahead
- Weaker yen/dollar exchange rate negatively impacted adjusted earnings per share by $0.01.
- Sales were lower in the fourth quarter as we continue to focus on more profitable growth through our stronger underwriting discipline
- Sales were lower due to re-engaging agents and brokers following stabilization of our network dental operations.
- Difficult conditions in global capital markets and the economy, including inflation.
- Global fluctuations in interest rates and exposure to significant interest rate risk.