Aflac Stock Earnings Reports

Aflac reported solid Q3 2025 results with net EPS of $3.08 and adjusted EPS of $2.49, driven materially by actuarial assumption remeasurements (unlock) that produced significant reserve gains this quarter. Key operational highlights: strong sales in Japan (11.8% y/y), led by a 42% increase in cancer insurance (Miraito) and an encouraging response to the repriced Tsumitasu product that is attracting younger customers; U.S. new sales grew 2.8% (Q3 $390M), persistency remained strong (U.S. 79%, Japan 93.3%), and targeted growth initiatives (dental, lab services, group life & disability) are progressing but not yet at full scale. Financial and capital position: adjusted ROE ~19.1% (22.1% ex-FX), adjusted book value/share +6.3% ex-FX, SMR >900%, estimated ESR (USP) >250%, estimated combined RBC >600%, holding company liquidity $4.5B (well above minimum) and leverage ~22%. Management deployed record capital in the quarter: $1.0B share repurchases and $309M dividends. Investment portfolio performance was broadly solid, though they increased CECL reserves modestly for commercial real estate and some middle-market loans. Guidance/expectations: Japan 2025 benefit ratio now expected 58%–60% and expense ratio at the lower end of 20%–23% (pretax margin 35%–38%); U.S. benefit ratio expected at the lower end of 48%–52% and expense ratio mid-to-upper 36%–39% (pretax margin upper end of 17%–20%). Management emphasized focus on profitable growth, underwriting discipline, expense management, continuing investment in U.S. growth initiatives (with more time to reach target profitability), and tactical capital deployment given strong balance sheet and liquidity.