Aflac Incorporated (NYSE: AFL) has showcased a robust performance in its third-quarter earnings, reporting significant gains in both revenue and profit metrics. This article delves into the various aspects of Aflac's financial results, reinforcing the company's strategic initiatives and operational highlights.
Aflac Inc Earnings Overview
In the third quarter of 2025, Aflac Inc reported impressive growth in earnings and revenue, indicating favorable market conditions and effective corporate strategy. The company's total revenue surged to $4.7 billion from $2.9 billion in the third quarter of 2024. This increase is largely attributed to net investment gains which amounted to $275 million this quarter, compared to the net investment losses of $1.4 billion a year ago. Net earnings experienced a significant shift, rising from net losses of $93 million to a positive $1.6 billion, translating to earnings of $3.08 per diluted share, a substantial recovery from the previous year's losses of $0.17 per diluted share.
Aflac Inc Results
| Metrics | Q3 2025 | Q3 2024 | Year-Over-Year Change |
|---|---|---|---|
| Total Revenue | $4.7 billion | $2.9 billion | +62% |
| Net Earnings | $1.6 billion | -$93 million | N/A |
| Earnings Per Share (EPS) | $3.08 | -$0.17 | N/A |
| Adjusted Earnings | $1.3 billion | $1.2 billion | +9.6% |
| Adjusted EPS | $2.49 | $2.16 | +15.3% |
The company's adjusted earnings rose by 9.6% to $1.3 billion, while the adjusted earnings per diluted share saw a 15.3% increase reaching $2.49, showcasing strong operational performance notwithstanding the slightly stronger yen/dollar exchange rate.
Revenue Breakdown
The performance across Aflac's major geographic segments extends a comprehensive view of the company's diversified revenue streams.
Japan Segment
| Segment | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Net Earned Premiums (Yen) | ¥245.2 billion | ¥255.4 billion | -4.0% |
| Adjusted Net Investment Income (Yen) | ¥98.0 billion | ¥98.9 billion | -0.9% |
| Pretax Adjusted Earnings (Yen) | ¥179.5 billion | ¥158.6 billion | +13.1% |
| Pretax Adjusted Earnings (USD) | $1.2 billion | $1.2 billion | +13.3% |
In Aflac's Japan operations, net earned premiums in yen decreased by 4.0% primarily due to internal cancer reinsurance transactions, despite an impressive 13.1% increase in pretax adjusted earnings driven by lower benefits from higher reserve remeasurement gains.
U.S. Segment
| Segment | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Net Earned Premiums | $1.5 billion | $1.46 billion | +2.5% |
| Adjusted Net Investment Income | $214 million | $210 million | +1.9% |
| Pretax Adjusted Earnings | $375 million | $350 million | +7.1% |
In the U.S., net earned premiums increased by 2.5% owing to improved sales efforts. Notably, Aflac U.S.'s pretax adjusted earnings rose by 7.1% to $375 million, benefiting from a higher premium base and effective expense management.
Corporate and Other
| Segment | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Total Adjusted Revenues | $343 million | $225 million | +52.4% |
| Pretax Adjusted Earnings | $69 million | $15 million | N/A |
The 'Corporate and Other' segment displayed a remarkable 52.4% increase in adjusted revenues driven by internal reinsurance activity, resulting in a substantial improvement in pretax adjusted earnings.
Key Developments
- Segment Growth: Aflac Japan reported a notable 11.8% increase in sales attributed to the strong performance of their new cancer insurance product, Miraito. Similarly, Aflac U.S. benefitted from heightened demand for group life and disability products, reflected in a 2.8% increase in U.S. sales.
- Shareholder Equity: As of September 30, 2025, the shareholder equity stood at $28.7 billion, up from $24.8 billion the previous year, highlighting increased financial robustness.
Comments from Company Officers
Daniel P. Amos, Aflac Incorporated's Chairman and CEO, expressed satisfaction with the quarter's results, emphasizing the company's strategic focus and operational efficiency: "Aflac delivered very solid earnings for the quarter and the first nine months. These results reflect our focused efforts to execute on our strategy of creating long-term value for shareholders."
Dividends and Share Repurchases
Aflac's board of directors declared a dividend of $0.58 per share, emphasizing the company's consistent dividend growth track record. In the third quarter, Aflac repurchased $1.0 billion worth of shares, equating to 9.3 million shares, reinforcing the company's commitment to returning capital to its shareholders.
Aflac Inc Stock Forecast
Based on the current performance metrics and market conditions, Aflac Inc's stock is forecasted to experience moderate growth. Given its strong financial results, strategic product offerings, and robust capital return strategies, there is potential for the stock to reach a high of $92 by the next fiscal year. Conversely, should market conditions fluctuate unfavorably, a low of $74 is plausible. Currently, Aflac's stock price stands at approximate $1.72 per share with a market cap of $50.66 billion.
In conclusion, Aflac has showcased a strong financial performance this quarter, aided by strategic focus in its geographic segments and robust shareholder-oriented policies, positioning it favorably in the investment community.
