Aflac (AFL) Q4 2023 earnings summary

Executive summary

• Q4 diluted EPS was $0.46; adjusted diluted EPS was $1.25. Adjusted ROE reached 10.5%, or 10.7% excluding FX impact.

• Adjusted earnings declined YoY, while reported net earnings increased; Japan and U.S. segments entered 2024 with targeted margin and premium growth plans.

Financial highlights

• Q4 net earnings were $268 million, up 36.7% YoY; adjusted earnings were $732 million, down 10.4%, or $746 million excluding current-period FX impact, down 8.7%.

• Diluted EPS was $0.46 versus $0.31, up 48.4%; adjusted diluted EPS was $1.25 versus $1.31, down 4.6%, or $1.28 excluding current-period FX impact, down 2.3%.

• Book value per common share was $38.00; adjusted book value was $47.55 and adjusted book value including unrealized FX translation gains and losses was $40.51. YoY gains were 16.1%, 10.1% and 8.3%, respectively.

Outlook and guidance

• Japan 2024 outlook: benefit ratio 66%, expense ratio 19% and pretax profit ratio 29%; underlying net earned premiums forecast down 2.5%–1.5%.

• Japan aims to reach ¥67–¥73 billion in sales by end-2026.

• U.S. 2024 outlook: benefit ratio 45%, expense ratio 38% and pretax profit ratio 19%; net earned premiums forecast up 3%–5%.

• U.S. aims to exceed $1.8 billion in sales by end-2025.