Aflac (AFL) Q3 2025 Pre Recorded earnings summary

Executive summary

• Net earnings per diluted share surged to $3.08 in Q3 2025 from $(0.17) in Q3 2024, driven by significant net investment gains and improved operating performance.

• Adjusted earnings per diluted share rose 15.3% year-over-year to $2.49, with currency-neutral growth matching reported results.

• Total revenues for Q3 2025 were $4.7B, up from $2.9B in Q3 2024, primarily due to improved investment results.

• Net earnings for the quarter reached $1.6B, up from a loss of $93M in the prior year period.

• Adjusted book value per share excluding FX increased 6.3% to $46.35.

Financial highlights

• Adjusted earnings increased 9.6% year-over-year to $1.3B.

• Adjusted ROE was 19.1%, or 22.1% excluding FX remeasurement; U.S. GAAP ROE reached 23.5%.

• Shareholders' equity rose to $28.7B at September 30, 2025, up from $24.8B a year ago.

• Net investment income in the U.S. rose 1.9% year-over-year; in Japan, it was flat at JPY 98B.

• Pre-tax margin in Japan reached 52.2%, up 750 bps year-over-year; U.S. pre-tax margin was 21.7%, up 90 bps.

Outlook and guidance

• Japan's benefit ratio for 2025 expected in the 58%-60% range; expense ratio at the lower end of 20%-23%.

• Japan's pre-tax profit margin projected at 35%-38%.

• U.S. benefit ratio for 2025 expected at the lower end of 48%-52%; expense ratio in the mid to upper 36%-39% range.

• U.S. pre-tax profit margin for 2025 expected at the upper end of 17%-20%.

• Management remains committed to prudent liquidity and capital management, maintaining a $1.8B minimum cash buffer at the parent company.