Aflac Stock Earnings Reports

Aflac reported solid Q3 2025 results: adjusted EPS of $2.49 (up 15.3% Y/Y) and reported EPS of $3.08. Japan was the primary growth driver — sales rose 11.8% Y/Y with cancer insurance (Miraito) up ~42% and strong early traction for repriced Tsumitasu and other channels; persistency in Japan remained high (~93%). U.S. new sales were $390 million (up 2.8% Y/Y), net earned premium +2.5%, persistency 79%, and ongoing focus on underwriting discipline and scaling buy-to-build initiatives (dental, labs, group life/disability) — some lines are profitable already but others need more scale. Investment income performed in line with expectations; management booked reserve remeasurement gains (Q3 assumption update) that materially boosted EPS (~$0.76 per share) and favorably affected benefit ratios. Capital and liquidity are strong: created $2B of off‑balance sheet PCAPs, holding company liquidity $4.5B (well above minimum), leverage ~22%, SMR >900%, estimated ESR >250% and combined RBC >600%. Management returned large capital to shareholders in Q3 ($1.0B buybacks + $309M dividends = $1.3B), repurchased 9.3M shares, and reiterated disciplined/tactical capital deployment. Headwinds/risks noted: increases to CECL reserves for commercial real estate and some private credit monitoring; U.S. expense ratio elevated in Q3 due to a one‑time $21M contract termination fee tied to a cloud migration/technology optimization; management remains cautious and disciplined on M&A and product mix/underwriting. 2025 outlook/guidance: Aflac Japan benefit ratio expected 58–60% and expense ratio at lower end of 20–23% (pretax margin 35–38%); U.S. benefit ratio expected at lower end of 48–52%, expense ratio mid‑to‑upper 36–39% (pretax margin at upper end of 17–20%).