Key Highlights

  • Adjusted EPS of USD 2.43 compares with a USD 1.80 estimate; net Earnings were USD 0.61 per diluted share.
  • Total revenues were USD 3.271 billion against an estimate of USD 4.12 billion and USD 4.74 billion a year earlier.
  • The company returned USD 1.1 billion to shareholders: USD 804 million of repurchases and USD 305 million of dividends.
  • A fourth quarter Dividend of USD 0.61 per share was declared, marking 44 consecutive years of dividend increases.

Aflac Incorporated (NYSE:AFL) reported third quarter adjusted earnings per diluted share of USD 2.43, against an estimate of USD 1.80 and USD 2.49 a year earlier. Net earnings were USD 303 million, or USD 0.61 per diluted share, against USD 1.6 billion, or USD 3.08. Total revenues were USD 3.271 billion, against an estimate of USD 4.12 billion and USD 4.74 billion in the third quarter of 2025.

Strategy and Operations in Japan and the United States

Chairman and chief executive Daniel P. Amos said the company continues to meet customer needs in Japan through products including Anshin Palette medical insurance, Miraito cancer insurance and Tsumitasu savings-type life insurance. In the United States, the stated focus is meeting the needs of employers and employees with supplemental health products and related benefits.

Aflac Japan's net earned premiums were 240 billion yen, or USD 1,508 million, with pretax adjusted earnings of 152 billion yen, or USD 961 million, against USD 1,216 million. Sales decreased 4.0% to 18.8 billion yen. Aflac U.S. net earned premiums were USD 1,544 million against USD 1,495 million, pretax adjusted earnings were USD 493 million against USD 375 million, and sales rose 3.5% to USD 403 million.

During the quarter Aflac Japan ceded approximately 500 billion yen of cancer insurance reserves, measured on an FSA basis, to Aflac Re Bermuda. Management estimated that the transaction releases about USD 1 billion of Capital that becomes available for redeployment over time.

Results: Adjusted Earnings and Portfolio Repositioning

Adjusted earnings were USD 1,214 million against USD 1,327 million, a decrease of 8.5%, and included reserve remeasurement gains of USD 453 million. Net earnings were lower mainly because of realized losses tied to the strategic repositioning of the Investment portfolio. Net investment losses were USD 1.1 billion, or USD 2.15 per diluted share, against net investment gains of USD 275 million a year earlier.

The average yen/dollar rate was 158.49 against 147.68, which the company said reduced adjusted EPS by USD 0.03. For nine months, adjusted EPS was USD 5.92, the same as a year earlier, and net earnings were USD 4.24 per diluted share against USD 4.21.

Capital Returns, Liquidity and 2026 Segment Guidance

Shareholders' Equity was USD 29.3 billion, or USD 59.08 per share, against USD 28.7 billion, or USD 54.57. Parent Company unencumbered liquidity was USD 2.7 billion against a USD 1 billion minimum balance, and adjusted Leverage was 22.6%, within a target range of 20% to 25%. Management cited an estimated regulatory economic Solvency Ratio of 225%, or 238% with the undertaking-specific parameter.

For 2026, the CFO guided Aflac Japan to a pretax profit Margin range of 35% to 38%, raised from the prior range, with a benefit ratio slightly below 60% to 63% and an expense ratio at the lower end of 20% to 23%. For Aflac U.S., the benefit ratio is guided below 48% to 52%, the expense ratio in the middle of 36% to 39%, and the pretax margin above 17% to 20%.

Balance Sheet and Cash Markers

Shareholders' equity of USD 29.3 billion sits alongside USD 2.7 billion of parent liquidity, USD 804 million of repurchases and a USD 0.61 dividend.

The dividend is payable on December 1, 2026 to holders of record on November 18, 2026. Management named its priorities as growth that is more profitable, tactical deployment of capital, continued Reinsurance to improve Balance Sheet efficiency, and meeting the needs of Japanese customers at different life stages and of U.S. employers and employees.