Aflac (AFL) Q4 2024 earnings summary

Executive summary

• Net earnings per diluted share rose 23.8% to $9.63 for 2024, with Q4 net EPS surging 643.5% to $3.42 due to significant non-recurring investment gains and improved operational performance.

• Adjusted EPS increased 15.7% to $7.21 for 2024 and 24.8% to $1.56 in Q4; adjusted earnings for Q4 were $865M, up 18.2% year-over-year.

• Persistency remained strong in Japan at 93.4% and in the U.S. at 78.7%-79.3% for Q4.

• Total Q4 revenues were $5.4 billion, up 43.1% year-over-year; full-year revenues rose 1.2% to $18.9 billion.

• The board declared a 16% increase in the first quarter dividend to $0.58 per share.

Financial highlights

• Net earnings for Q4 2024 were $1,902M, up 609.7% year-over-year, driven by $1,084M in net investment gains.

• Adjusted ROE was 12% (14.5% excluding FX remeasurement) in Q4; full-year adjusted ROE was 17.3%.

• Adjusted book value per share rose to $52.87; excluding FX remeasurement, it increased 3.2% to $42.46.

• Japan segment net earned premiums declined 5.4% in Q4, mainly due to internal reinsurance and paid-up policies.

• U.S. segment saw a 2.7% increase in net earned premiums in Q4 and for the full year.

Outlook and guidance

• For 2025–2027, Japan's benefit ratio is expected at 64%-66%, expense ratio at 20%-23%, and pre-tax margin at 30%-33%.

• U.S. benefit ratio for 2025–2027 expected at 48%-52%, expense ratio at 36%-39%, and pre-tax margin at 17%-20%.

• Management remains focused on profitable growth, new products, and distribution strategies in both markets.