Aflac (AFL) Q4 2025 earnings summary

Executive summary

• Q4 2025 net earnings per diluted share were $2.64, down 22.8% year-over-year, while adjusted EPS was $1.57, up 0.6%; full-year net earnings per share were $6.82 and adjusted EPS $7.49.

• Adjusted earnings for Q4 were $818 million, down 5.4% year-over-year; net earnings were $1.4 billion, a 27.5% decrease.

• Japan sales rose 15.7% in Q4 and 16% for 2025, led by new cancer and medical products; U.S. new sales reached $1.6 billion for 2025, with strong growth in network dental, life/disability, and direct-to-consumer.

• Persistency remained strong: 93.1% in Japan and 79.2% in the U.S.

• Board approved a 5.2% increase in Q1 2026 dividend to $0.61 per share.

Financial highlights

• Adjusted earnings per diluted share increased 0.6% year-over-year in Q4 2025, excluding currency effects.

• Adjusted book value per share at year-end was $54.06, up 0.5% excluding FX; adjusted ROE was 11.7% (14.5% ex-currency).

• Japan net earned premiums in yen declined 1.9% in Q4; U.S. net earned premiums rose 4%.

• Japan benefit ratio was 65% (down 150 bps YoY); U.S. benefit ratio was 48.6% (up 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%; pre-tax 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%; pre-tax margin 17%-20%.

• Commitment to dividend growth and balanced capital allocation remains a priority.