Aflac Stock Earnings Reports

Aflac reported a solid start to 2026: GAAP diluted EPS was $1.98 and adjusted EPS was $1.75 (adjusted EPS up ~6.6% ex-FX). Key drivers were continued strong Japan sales (+25.5% in Q1) led by new medical and cancer products (Onsen Tallett, Miraito) and improving marketing/sales execution, plus modest U.S. sales growth (+2.9%) with strength in group voluntary and solid premium persistency (U.S. persistency 79.3%; Japan persistency 92.8%). Japan underlying earned premiums are down modestly Y/Y (-1.3% excluding reinsurance/paid-up), and management reiterated its midyear Japan benefit ratio outlook (60%–63%) and the U.S. full-year benefit ratio range (42%–52%), noting Q1 benefit ratios benefited from reserve remeasurement gains. Investments produced generally good results despite some charge-offs/impairments in real estate and loans; investment income had mixed drivers (higher fixed-rate USD income, lower short-term income). Capital, liquidity and balance-sheet metrics are strong: unencumbered liquidity $3.4B; adjusted leverage 21.2% (target 20%–25%); estimated ESR 227% (243% including USP) and combined RBC ~560%. Capital deployment in Q1 included $1B of share repurchases and $315M of dividends (company emphasized continued dividend streak and tactical capital returns). Management highlighted a deliberate, selective push into external reinsurance of Japanese business (first small third-party transaction completed) as a nascent but potentially material strategic growth/earnings diversification lever over time. Management expects FY Japan sales to at least match 2025 and indicated a desire to approach ~JPY 80B in new business for 2026 (vs. JPY 74B in 2025) to move toward flat/positive earned-premium growth over time.