{"id":809401,"date":"2025-02-05T16:25:14","date_gmt":"2025-02-05T21:25:14","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/aflac-incorporated-announces-fourth-quarter-results-reports-fourth-quarter-net-earnings-of-1-9-billion-reiterates-increase-in-first-quarter-dividend-of-16\/"},"modified":"2025-02-05T16:25:14","modified_gmt":"2025-02-05T21:25:14","slug":"aflac-incorporated-announces-fourth-quarter-results-reports-fourth-quarter-net-earnings-of-1-9-billion-reiterates-increase-in-first-quarter-dividend-of-16","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/aflac-incorporated-announces-fourth-quarter-results-reports-fourth-quarter-net-earnings-of-1-9-billion-reiterates-increase-in-first-quarter-dividend-of-16\/","title":{"rendered":"Aflac Incorporated Announces Fourth Quarter Results, Reports Fourth Quarter Net Earnings of $1.9 Billion, Reiterates Increase in First Quarter Dividend of 16%"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n
\n COLUMBUS, Ga.<\/span>
\n <\/span>, Feb. 5, 2025<\/span><\/span> \/PRNewswire\/ — Aflac Incorporated (NYSE: AFL) today reported its fourth quarter results.<\/p>\n

Total revenues were $5.4 billion<\/span> in the fourth quarter of 2024, compared with $3.8 billion<\/span> in the fourth quarter of 2023. Net earnings were $1.9 billion<\/span>, or $3.42<\/span> per diluted share, compared with $268 million<\/span>, or $0.46<\/span> per diluted share a year ago.<\/p>\n

Net earnings in the fourth quarter of 2024 included net investment gains of $1.0 billion<\/span>, or $1.86<\/span> per diluted share, compared with net investment losses of $511 million<\/span>, or $0.87<\/span> per diluted share a year ago. These net investment gains were driven by net gains of $1.2 billion<\/span> on certain derivatives and foreign currency activities; and a $40 million<\/span> gain from an increase in the fair value of equity securities offset by $95 million<\/span> of reserves for current expected credit losses (CECL); net losses from sales and redemptions of $74 million<\/span>; and no impairments.\u00a0\u00a0<\/p>\n

Adjusted earnings* in the fourth quarter were $865 million<\/span>, compared with $732 million<\/span> in the fourth quarter of 2023, reflecting an increase of 18.2%. Adjusted earnings per diluted share* increased 24.8% to $1.56<\/span> in the quarter. Variable investment income ran $17 million<\/span> above the company’s long-term return expectations. The weaker yen\/dollar exchange rate negatively impacted adjusted earnings per share by $0.01<\/span>.<\/p>\n

The average yen\/dollar exchange rate in the fourth quarter of 2024 was 152.35, or 2.8% weaker than the average rate of 148.11 in the fourth quarter of 2023. For the full year, the average exchange rate was 150.97, or 6.9% weaker than the rate of 140.57 a year ago.<\/p>\n

Shareholders’ equity was $26.1 billion<\/span>, or $47.45<\/span> per share, at December 31, 2024<\/span>, compared with $22.0 billion<\/span>, or $38.00<\/span> per share, at December 31, 2023<\/span>. Shareholders’ equity at the end of the fourth quarter included a cumulative increase of $2.0 billion<\/span> for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative decrease of $2.6 billion<\/span> at December 31, 2023<\/span> and a net unrealized gain on investment securities and derivatives of $4 million<\/span>, compared with a net unrealized gain of $1.1 billion<\/span> at December 31, 2023<\/span>. Shareholders’ equity at the end of the fourth quarter also included an unrealized foreign currency translation loss of $5.0 billion<\/span>, compared with an unrealized foreign currency translation loss of $4.1 billion<\/span> at December 31, 2023<\/span>. The annualized return on average shareholders’ equity in the fourth quarter was 29.9%.<\/p>\n

For the full year of 2024, total revenues were up 1.2% to $18.9 billion<\/span>, compared with $18.7 billion<\/span> in the full year of 2023. Net earnings were $5.4 billion<\/span>, or $9.63<\/span> per diluted share, compared with $4.7 billion<\/span>, or $7.78<\/span> per diluted share, for the full year of 2023. Adjusted earnings for the full year of 2024 were $4.1 billion<\/span>, or $7.21<\/span> per diluted share, compared with $3.7 billion<\/span>, or $6.23<\/span> per diluted share, in 2023. Excluding the negative impact of $0.18<\/span> per share from the weaker yen\/dollar exchange rate, adjusted earnings per diluted share increased 18.6% to $7.39<\/span> for the full year of 2024.<\/p>\n

Shareholders’ equity excluding AOCI (or adjusted book value*) was $29.1 billion<\/span>, or $52.87<\/span> per share at December 31, 2024<\/span>, compared with $27.5 billion<\/span>, or $47.55<\/span> per share, at December 31, 2023<\/span>. Adjusted book value excluding foreign currency remeasurement* was $23.4 billion<\/span>, or $42.46<\/span> per share, at December 31, 2024<\/span>, compared with $23.8 billion<\/span>, or $41.15<\/span> per share, at December 31, 2023<\/span>. The annualized adjusted return on equity excluding foreign currency remeasurement* in the fourth quarter was 14.5%.<\/p>\n

\n AFLAC JAPAN<\/span><\/b>\n <\/p>\n

In yen terms, Aflac Japan’s net earned premiums were \u00a5257.4 billion for the quarter, or 5.4% lower than a year ago, mainly due to internal cancer reinsurance transactions, as well as limited-pay policies reaching paid-up status. Adjusted net investment income increased 3.7% to \u00a5101.4 billion. Total adjusted revenues in yen declined 3.0% to \u00a5359.9 billion. Pretax adjusted earnings in yen for the quarter increased 1.0% on a reported basis to \u00a5113.8 billion, primarily due to lower benefits and expenses during the quarter, partially offset by lower net earned premiums. Pretax adjusted earnings decreased 1.1% on a currency-neutral basis. The pretax adjusted profit margin for the Japan<\/span> segment increased to 31.6%, compared with 30.4% a year ago.<\/p>\n

For the full year, net earned premiums in yen were \u00a51.1 trillion, or 6.9% lower than a year ago. Adjusted net investment income increased 12.1% to \u00a5409.9 billion. Total adjusted revenues in yen were down 2.3% to \u00a51.5 trillion. Pretax adjusted earnings were \u00a5527.7 billion, or 15.5% higher than a year ago.<\/p>\n

In dollar terms, net earned premiums decreased 8.2% to $1.7 billion<\/span> in the fourth quarter. Adjusted net investment income increased 1.5% to $665 million<\/span>. Total adjusted revenues declined by 5.6% to $2.4 billion<\/span>. Pretax adjusted earnings declined 1.1% to $0.7 billion<\/span>.<\/p>\n

For the full year, net earned premiums in dollars were $6.9 billion<\/span>, or 13.9% lower than a year ago. Adjusted net investment income increased 4.6% to $2.7 billion<\/span>. Total adjusted revenues were down 9.4% to $9.7 billion<\/span>. Pretax adjusted earnings were $3.5 billion<\/span>, or 8.0% higher than a year ago.<\/p>\n

For the quarter, total new annualized premium sales (sales) increased 9.0% to \u00a517.2 billion, or $113 million<\/span>, primarily reflecting strong sales of Tsumitasu, the new first sector product. For the full year, total new sales increased 5.6% to \u00a564.1 billion, or $422 million<\/span>.<\/p>\n

\n AFLAC U.S.<\/b>\n <\/p>\n

Aflac U.S. net earned premiums increased 2.7% to $1.4 billion<\/span> in the fourth quarter compared to the prior year, reflecting prior year sales and continued improvement in persistency. Adjusted net investment income increased 0.9% to $213 million<\/span>. Total adjusted revenues were up 2.0% to $1.7 billion<\/span>. Pretax adjusted earnings were $330 million<\/span>, 9.3% higher than a year ago, reflecting higher premiums and lower expenses which were partially offset by higher benefits. As a result, the pretax adjusted profit margin for the U.S. segment was 19.7%, compared with 18.4% a year ago.<\/p>\n

For the full year, net earned premiums increased 2.7% to $5.8 billion<\/span>. Adjusted net investment income increased 3.3% to $847 million<\/span>. Total adjusted revenues were up 1.8% to $6.7 billion<\/span>. Pretax adjusted earnings were $1.4 billion<\/span>, or 5.5% lower than a year ago.<\/p>\n

Aflac U.S. sales decreased 4.5% in the quarter to $534 million<\/span>, reflecting lower sales of group voluntary benefit products impacted by our continued focus on profitable growth as well as softer sales of network dental. For the full year, total new sales decreased 1.0% to $1.5 billion<\/span>.<\/p>\n

\n CORPORATE AND OTHER\u00a0<\/b>\n <\/p>\n

For the quarter, total adjusted revenues increased 273.7% to $284 million<\/span> compared to the prior year. The increase was primarily driven by higher adjusted net investment income due to a lower volume of tax credit investments and an increase due to reinsurance activity, which also increased total net earned premiums. Total benefits and adjusted expenses decreased\u00a0$107 million compared to the prior year primarily due to the prior year novation of a reinsurance treaty with a third party that was ceded back to the company, partially offset by other reinsurance activity. Pretax adjusted earnings were a loss of $4 million<\/span>, compared with a loss of $318 million<\/span> a year ago.<\/p>\n

For the full year, total adjusted revenues increased 118.9% to $1.0 billion<\/span>. Pretax adjusted earnings were a gain of $32 million<\/span>, compared with a loss of $425 million<\/span> a year ago.<\/p>\n

\n DIVIDEND AND CAPITAL RETURNED TO SHAREHOLDERS<\/b>\n <\/p>\n

The board of directors declared the first quarter dividend of $0.58<\/span> per share, payable on March 3, 2025<\/span> to shareholders of record at the close of business on February 19, 2025<\/span>.<\/p>\n

In the fourth quarter, Aflac Incorporated deployed $750 million<\/span> in capital to repurchase 7.0 million of its common shares. At the end of December 2024<\/span>, the company had 47.3 million remaining shares authorized for repurchase.<\/p>\n

\n OUTLOOK\u00a0<\/b>\n <\/p>\n

Commenting on the company’s results, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos<\/span> stated: “I am pleased that Aflac delivered very solid adjusted earnings for the quarter and the year. We have continued to actively concentrate on generating profitable growth in the U.S. and Japan<\/span> with new products and distribution strategies. We believe our strategy will continue to create long-term value for shareholders.\u00a0<\/p>\n

“Looking at our operations in Japan<\/span>, I am pleased with Aflac Japan’s 93.4% premium persistency and 5.6% year-over-year sales increase, which included a 9.0% sales increase in the fourth quarter. We have continued to focus on third sector products as well as introducing these policies to new and younger customers. Additionally, we were encouraged by the continued momentum of Tsumitasu, our latest life insurance product that offers an asset formation component and options such as nursing care. This approach is in line with our strategy of connecting with younger customers to provide them with integrated financial protection and services through different life stages.<\/p>\n

“In the U.S., I continue to be pleased with our persistency results as we saw an increase to 79.3%, in addition to a 2.7% increase in net earned premiums. Sales were lower in the fourth quarter as we continue to focus on more profitable growth through our stronger underwriting discipline, in addition to re-engaging agents and brokers following stabilization of our network dental operations. We are seeing improvement in net earned premiums and continue our prudent approach to expense management and maintaining a strong pretax margin.<\/p>\n

“We continue to generate strong capital and cash flows while maintaining our commitment to prudent liquidity and capital management. We have been very pleased with our investments, which have continued to produce strong net investment income. I am very pleased that 2024 marked 42 consecutive years of dividend increases, a record we treasure. We remain committed to extending this record, supported by our financial strength. We repurchased $2.8 billion<\/span> in shares for the year. We intend to continue our balanced approach of investing in growth and driving long-term operating efficiencies.”<\/p>\n

*See Non-U.S. GAAP Financial Measures section for an explanation of foreign exchange and its impact on the financial statements and definitions of the non-U.S. GAAP financial measures used in this earnings release, as well as a reconciliation of such non-U.S. GAAP financial measures to the most comparable U.S. GAAP financial measures.<\/p>\n

\n ABOUT AFLAC INCORPORATED<\/b>\n <\/p>\n

Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for nearly seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan<\/span>. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1<\/sup> In Japan<\/span>, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force. The company takes pride in being there for its policyholders when they need us most, as well as being included in the World’s Most Ethical Companies by Ethisphere for 18 consecutive years (2024) and Fortune’s World’s Most Admired Companies for 23 years (2024). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021 and has been included in the Dow Jones Sustainability North America Index (2024) for 11 years. To find out how to get help with expenses health insurance doesn’t cover, get to know us at aflac.com or aflac.com\/espanol. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under “Sustainability.”<\/p>\n

\n 1 <\/sup>LIMRA 2023 U.S. Supplemental Health Insurance Total Market Report<\/p>\n

A copy of Aflac’s financial supplement for the quarter can be found on the “Investors” page at aflac.com.<\/p>\n

Aflac Incorporated will webcast its quarterly conference call via the “Investors” page of aflac.com at 8:00 a.m. (ET)<\/span> on February 6, 2025<\/span>.<\/p>\n

Note: Tables within this document may not foot due to rounding.<\/p>\n

\u00a0<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n
\n
\n AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n (UNAUDITED \u2013 IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n THREE MONTHS ENDED DECEMBER 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2024<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2023<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n %\u00a0Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total revenues<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0 5,403<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0 3,777<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 43.1\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Benefits and claims, net<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1,923<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2,103<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (8.6)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total acquisition and operating expenses<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1,345<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1,385<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (2.9)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Earnings before income taxes<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2,135<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 289<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 638.8<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Income taxes<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 233<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 21<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Net earnings<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0 1,902<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0 268<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 609.7\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net earnings per share \u2013 basic<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0 3.44<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0 0.46<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 647.8\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net earnings per share \u2013 diluted<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 3.42<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 0.46<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 643.5<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Shares used to compute earnings per share (000):<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Basic<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 552,767<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 581,876<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (5.0)\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Diluted<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 555,483<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 584,881<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (5.0)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Dividends paid per share<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0 0.50<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0 0.42<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 19.0\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n
\n
\n AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n (UNAUDITED \u2013 IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n TWELVE MONTHS ENDED DECEMBER 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2024<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2023<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n %\u00a0Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total revenues<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 18,927<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 18,701<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.2\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Benefits and claims, net<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 7,450<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 8,211<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (9.3)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total acquisition and operating expenses<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 5,060<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 5,228<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (3.2)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Earnings before income taxes<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 6,417<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 5,262<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 21.9<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Income taxes<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 974<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 603<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Net earnings<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0 5,443<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0 4,659<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 16.8\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net earnings per share \u2013 basic<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0 9.68<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0 7.81<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 23.9\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net earnings per share \u2013 diluted<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 9.63<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 7.78<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 23.8<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Shares used to compute earnings per share (000):<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Basic<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 562,492<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 596,173<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (5.6)\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Diluted<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 565,015<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 598,745<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (5.6)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Dividends paid per share<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0 2.00<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0 1.68<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 19.0\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n
\n
\n AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET<\/u>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n (UNAUDITED \u2013 IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n
\n DECEMBER 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2024<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2023<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n %\u00a0Change<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Assets:<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Total investments and cash<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 105,087<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 113,560<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (7.5)\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Deferred policy acquisition costs<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 8,758<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 9,132<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (4.1)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Other assets<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 3,721<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 4,032<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (7.7)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total assets<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 117,566<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 126,724<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (7.2)\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Liabilities and shareholders’ equity:<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n Policy liabilities<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0 77,508<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0 91,599<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (15.4)\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Notes payable and lease obligations<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 7,498<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 7,364<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1.8<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Other liabilities<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 6,462<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 5,776<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 11.9<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Shareholders’ equity<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 26,098<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 21,985<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 18.7<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total liabilities and shareholders’ equity<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 117,566<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $ 126,724<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (7.2)\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Shares outstanding at end of period (000)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 549,964<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 578,479<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n (4.9)\u00a0%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n
\n NON-U.S. GAAP FINANCIAL MEASURES<\/u>
\n <\/b>\n <\/p>\n

This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States<\/span> generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.<\/p>\n

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen\/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company’s financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen\/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).<\/p>\n

\u00a0The company defines the non-U.S. GAAP financial measures included in this earnings release as follows:<\/p>\n