Aflac (AFL) Q2 2024 earnings summary

Executive summary

• Net earnings for Q2 2024 rose to $1.8 billion ($3.10 per diluted share), up from $1.6 billion ($2.71) year-over-year, driven by higher net investment gains and improved operating performance.

• Adjusted earnings per diluted share increased 15.8% year-over-year to $1.83, with a $0.07 negative FX impact; adjusted EPS excluding FX impact rose 19.6%.

• Profitable growth achieved in both Japan and U.S. segments, supported by new products, disciplined underwriting, and expense management.

• Continued focus on long-term value creation, strong capital ratios, and robust capital deployment through share repurchases and dividends.

• Board declared a Q3 2024 dividend of $0.50 per share, marking 41 consecutive years of dividend growth.

Financial highlights

• Q2 2024 total revenues were $5.1 billion, down slightly year-over-year; net earnings for Q2 were $1.8 billion, and adjusted earnings were $1.0 billion ($1.83 per diluted share).

• Adjusted book value per share at June 30, 2024 was $52.26, up from $46.61 a year ago; shareholders' equity reached $26.0 billion ($46.40 per share).

• Annualized return on average shareholders' equity in Q2 was 28.3%; adjusted ROE excluding FX impact was 14.8%.

• Net investment income for Q2 was $1.1 billion, up 9.6% year-over-year; adjusted net investment income rose 15.8% to $1.03 billion.

• Cash dividends per share increased 19% to $0.50 in Q2 2024.

Outlook and guidance

• Management expects continued strong capital and cash flows, prudent liquidity, and ongoing share repurchases.

• Persistency and disciplined expense management expected to remain strong; focus on profitable growth and optimizing platforms.

• Growth initiatives in group life, disability, dental, and vision expected to scale and improve profitability.

• Effective tax rate on adjusted earnings for future periods expected to be approximately 20%.

• Management continues to monitor FX impacts and economic conditions, emphasizing currency-neutral performance.