Aflac (AFL) Q4 2025 earnings summary

Executive summary

• Q4 2025 net earnings per diluted share were $2.64, with adjusted EPS of $1.57 (up 0.6% YoY); full-year net earnings per share were $6.82 and adjusted EPS $7.49.

• Adjusted earnings for Q4 were $818 million, down 5.4% YoY; net earnings were $1.4 billion, down 27.5% YoY.

• Japan segment sales grew 15.7% in Q4 and 16% for 2025, driven by new product launches like Miraito cancer insurance and Anshin Palette.

• U.S. segment generated nearly $1.6 billion in new sales for 2025, with premium persistency at 79.2%.

• Record capital deployment: $3.5 billion in share repurchases and $1.2 billion in dividends for 2025; Q1 2026 dividend increased 5.2% to $0.61 per share.

Financial highlights

• Adjusted EPS ex-currency rose 0.6% YoY in Q4 2025 to $1.57; adjusted book value per share increased 0.5% to $42.66 ex-FX.

• Adjusted ROE was 11.7% in Q4, or 14.5% ex-FX; annualized ROE was 19.0%.

• Japan net earned premiums in yen declined 1.9% in Q4; U.S. net earned premiums up 4.0%.

• Japan pretax margin was 31.3% (down 30 bps YoY); U.S. pretax margin was 17.4% (down 230 bps YoY).

• Shareholders' equity rose to $29.5 billion at year-end, up 13% from $26.1 billion.

Outlook and guidance

• Japan underlying earned premiums expected to decline 1–2% in 2026; expense ratio 20–23%, benefit ratio 60–63%, pretax margin 33–36%.

• U.S. net earned premium growth expected at lower end of 3–6% range; benefit ratio 48–52%, expense ratio 36–39%, pretax margin 17–20%.

• Focus on sales of third sector products in Japan and profitable growth in the U.S.; commitment to dividend growth and balanced capital allocation.