Aflac (AFL) Q4 2025 earnings summary

Executive summary

• Reported Q4 2025 net earnings per diluted share of $2.64, down 22.8% year-over-year, and adjusted earnings per diluted share of $1.57, up 0.6% from Q4 2024; full-year net earnings per share of $6.82 and adjusted earnings per share of $7.49.

• Adjusted earnings for Q4 were $818 million, down 5.4% year-over-year, with net earnings at $1.4 billion, a 27.5% decrease; total revenues for Q4 were $4.9 billion, down 9.9%.

• Japan segment saw a 15.7% sales increase in Q4 and 16% for 2025, driven by new cancer and medical product launches.

• U.S. segment generated $1.6 billion in new sales for 2025, with strong premium persistency and net earned premium growth.

• Maintained robust capital deployment, including a 5.2% dividend increase for Q1 2026 and $3.5 billion in share repurchases in 2025.

Financial highlights

• Adjusted earnings per diluted share rose 0.6% year-over-year in Q4 2025 to $1.57, excluding currency effects.

• Adjusted book value per share increased 0.5% (excluding currency), reaching $54.06 at year-end.

• Japan net earned premiums in yen declined 1.9% in Q4; underlying earned premiums down 1.2%.

• U.S. net earned premiums up 4% in Q4; premium persistency at 79.2%.

• Pre-tax margin: Japan 31.3% (down 30 bps YoY), U.S. 17.4% (down 230 bps YoY).

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%.

• Sales in Japan expected to remain strong, with potential for growth in medical products and Tsumitasu depending on interest rates.

• Management expects continued focus on sales of third sector products in Japan and profitable growth in the U.S.

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