Aflac (AFL) Q1 2026 earnings summary

Executive summary

• Net earnings for Q1 2026 surged to $1.0 billion ($1.98 per diluted share), a dramatic increase from $29 million ($0.05 per share) in Q1 2025, driven by strong investment gains and lower non-recurring losses.

• Adjusted earnings per diluted share rose 6.6% year-over-year to $1.77 (ex-FX), with adjusted earnings at $901 million, nearly flat year-over-year.

• Japan segment sales increased 25.5% year-over-year, driven by new medical and cancer products and a focus on younger customers.

• U.S. segment sales rose 2.9% year-over-year, with net earned premiums up 3.5% and strong momentum in group voluntary products.

• $1.3 billion was returned to shareholders through $1.0 billion in share repurchases and $315 million in dividends in Q1.

Financial highlights

• Net investment gains of $49 million in Q1 2026 compared to losses of $963 million in Q1 2025, supporting the earnings rebound.

• Adjusted ROE was 12.8% (16.4% excluding FX remeasurement), and adjusted book value per share rose to $54.96; excluding FX, $42.71.

• Net earned premiums in Japan (yen terms) declined 3.8% year-over-year; U.S. net earned premiums increased 3.5% year-over-year.

• Annualized return on average shareholders' equity was 13.7% in Q1 2026.

• Cash dividends per share increased to $0.61 from $0.58 year-over-year.

Outlook and guidance

• Japan benefit ratio outlook for the year remains at 60%-63%, with confidence in maintaining this range.

• U.S. benefit ratio guidance for the full year is 48%-52%.

• Japan sales for 2026 are expected to exceed 2025 levels, targeting around JPY 80 billion.

• Management remains focused on profitable growth, capital deployment, and extending its record of dividend increases.

• The Board increased the quarterly dividend by 5.2% and declared a $0.61 dividend for Q2 2026.