Aflac Inc

Latest Results (17.12.2024):

Revenue Decline

Aflac Inc. reported total revenues of $2.9 billion for the third quarter of 2024, a significant decrease from $5.0 billion in the same quarter of 2023. This decline was primarily attributed to increased foreign exchange-related losses due to the strengthening of the yen by 12.9% during the quarter.

Net Losses

In the third quarter of 2024, Aflac Inc. experienced net losses of $93 million, or $0.17 per diluted share, compared to net earnings of $1.6 billion, or $2.64 per diluted share, in the third quarter of 2023. The losses were largely driven by net investment losses of $1.4 billion, primarily from derivatives and foreign currency activities.

Adjusted Earnings Growth

Despite the net losses, Aflac Inc.'s adjusted earnings for the third quarter of 2024 increased by 10.6% to $1.2 billion, compared to $1.1 billion in the same period of 2023. Adjusted earnings per diluted share rose by 17.4% to $2.16, although they were negatively impacted by $0.03 due to the weaker yen/dollar exchange rate.

Dividend Declaration

Aflac Inc.'s board of directors declared a fourth-quarter dividend of $0.50 per share, payable on December 2, 2024, to shareholders of record as of November 20, 2024. Additionally, the company repurchased 4.9 million of its common shares, deploying $500 million in capital during the third quarter.

Outlook and Strategy

Aflac Inc. remains focused on generating profitable growth in both the U.S. and Japan through new products and distribution strategies. The company is particularly concentrating on third-sector products in Japan and has introduced a new life insurance product with an asset formation component. In the U.S., Aflac achieved a 5.5% sales growth in the third quarter, with a focus on maintaining a strong pretax margin and prudent expense management.