AFL
Aflac Incorporated109.49
-2.01-1.8%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Guidance drivers unpacked; sales mix detailed
Q&A elaborated on 2026 guidance drivers without walk-backs: Japan's lower benefit ratio stems from a permanent 130bps net premium assumption cut, lapse/reissue activity, and old savings runoff, while underlying premiums dip 1-2% due to persistency outpacing sales. U.S. benefit ratio rises to 48-52% from endorsements on cancer/accident and group mix shift, with group dental up 48.8% and life/disability 11.3% offsetting flat traditional sales. No Japan surrender spike yet despite yields; Bermuda reinsurance eyes beyond 10% target. AI aids claims and enrollment but won't replace staff. Management stayed tactical on capital, coy on M&A. Q&A reaffirmed script with mechanics. Investors watch premium inflection.
Key Stats
Market Cap
58.56BP/E (TTM)
14.39Basic EPS (TTM)
7.61Dividend Yield
0.02%Recent Filings
10-K
FY2025 results
Aflac posted FY2025 net earnings of $3.6B ($6.82/share), down from $5.4B ($9.63/share) amid $572M net investment losses versus $1.3B gains, yet adjusted earnings held steady at $4.0B ($7.49/share). Revenues fell 9.3% to $17.2B on weaker premiums and investment income, but Q4 sales accelerated with Aflac Japan up 16% y/y to ¥74B on Miraito cancer product strength while Aflac U.S. group sales drove 3% growth. Margins improved in Japan (pretax 36.7% vs 36.0%) on favorable morbidity and reserve gains, though U.S. benefits ticked up to 47.3%. Repurchased $3.5B shares; Parent liquidity topped $1B target. Japan concentration risks yen volatility.
8-K
Q4 adj EPS +0.6%; sales surge
Aflac posted Q4 adjusted earnings of $818 million, down 5.4%, but per-share up 0.6% to $1.57 as buybacks shrink shares. Japan sales surged 15.7% on Miraito cancer product; U.S. premiums rose 4%. Japan margins slipped to 31.3%, U.S. to 17.4%. Solid capital fuels $800M repurchases. Buybacks drive per-share gains.
10-Q
Q3 FY2025 results
Aflac swung to Q3 net earnings of $1.6B ($3.08 diluted EPS) from a $93M loss, fueled by $275M net investment gains versus $1.4B losses last year—yet adjusted earnings rose 10% to $1.3B ($2.49/share, derived). Revenues climbed 61% to $4.7B on premium stability and investment rebound, while reserve remeasurement gains swelled to $580M; Japan drove 13% pretax adjusted earnings growth to $1.2B on lower claims. Cash swelled to $6.8B, debt to $8.7B; operations threw off $2.2B YTD FCF (derived). Japan segment concentration looms large.
8-K
Strong Q3 earnings, buybacks
8-K
Aflac secures $2B funding option
Aflac closed contingent funding deals on August 27, 2025, via two trusts issuing $1B each in P-Caps, securing optional issuance rights for $1B 5.251% Senior Notes due 2035 and $1B 5.991% due 2055. Facility fees run 0.9875% and 1.1218% annually on unexercised portions. Locks in long-term funding. Automatic triggers kick in if net worth dips below $10B.
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