Aflac Incorporated — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues for the quarter were $3.3 billion, a 31.0% decrease from $4.7 billion in the third quarter of 2025.
• Net earnings were $303 million ($0.61 per diluted share), down 81.5% from $1.6 billion ($3.08 per diluted share) a year ago.
• Adjusted earnings were $1.2 billion, an 8.5% decrease from $1.3 billion in the prior year quarter.
• Adjusted earnings per diluted share decreased 2.4% to $2.43.
• Net earnings included $1.1 billion in net investment losses (compared to $275 million in gains a year ago), $51 million in tax capital loss valuation allowance, and $453 million in reserve remeasurement gains.
• Annualized return on average shareholders' equity was 4.1%.
• Annualized adjusted return on equity excluding foreign currency remeasurement was 23.7%.
• Shareholders' equity was $29.3 billion at September 30, 2026, compared to $28.7 billion a year ago.
• For the first nine months of 2026, total revenues were $11.7 billion (down 4.6% from $12.3 billion), and net earnings were $2.1 billion ($4.24 per diluted share).
• Adjusted earnings for the first nine months were $3.0 billion ($5.92 per diluted share), flat compared to $3.2 billion ($5.92 per diluted share) in 2025.

Guidance and Future Outlook:

• Management stated a continued focus on "more profitable growth" and the "tactical, opportunistic deployment of capital."
• The company emphasized its strategy to execute long-term value creation and meet evolving customer needs at different life stages.
• No specific numerical forward guidance for future quarters or years was provided in the release.

Business Segments and Product Lines:

• Aflac Japan:
  • Total net earned premiums were ¥240.3 billion (down 2.0% in yen terms, down 9.3% in dollar terms to $1.5 billion).
  • Pretax adjusted earnings were ¥152.3 billion (down 15.2% in yen terms, down 21.0% in dollar terms to $961 million).
  • Total adjusted revenues were ¥343.2 billion (down 0.3% in yen terms, down 7.7% in dollar terms to $2.2 billion).
  • New annualized premium sales decreased 4.0% to ¥18.8 billion ($118 million) for the quarter.
  • Sales were impacted by high prior-year sales for Miraito cancer insurance, offset by growth in Tsumitasu savings-type life insurance and Anshin Palette medical insurance.
  • Aflac Japan ceded approximately ¥500 billion of reserves on an FSA basis associated with cancer insurance policies to Aflac Re Bermuda.
• Aflac U.S.:
  • Total net earned premiums increased 3.3% to $1.5 billion.
  • Pretax adjusted earnings increased 31.5% to $493 million.
  • Total adjusted revenues increased 3.1% to $1.8 billion.
  • New sales increased 3.5% to $403 million, driven by network dental, group life, and disability products.
• Corporate and Other:
  • Total adjusted revenues increased 5.0% to $360 million.
  • Pretax adjusted earnings increased 4.3% to $72 million.
  • Results were impacted by higher total adjusted expenses and lower adjusted net investment income.

Market and Competitive Landscape:

• The average yen/dollar exchange rate in the third quarter of 2026 was 158.49, 6.8% weaker than the 147.68 rate in the third quarter of 2025.
• The weaker yen had a negative $0.03 impact on adjusted earnings per share for the quarter.
• Aflac U.S. is the No. 1 provider of supplemental health insurance products in the U.S.
• Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in Japan in terms of policies in force.

Risks and Challenges:

• Net earnings were significantly impacted by realized losses associated with the strategic repositioning of the portfolio.
• Foreign currency fluctuations, specifically the weakening yen, suppressed reported results.
• Net investment losses included $842 million from sales and redemptions, $146 million on derivatives and foreign currency activities, and $102 million in current expected credit losses (CECL).
• A $51 million tax capital loss valuation allowance was established against deferred tax assets.
• The release notes risks related to global capital markets, interest rate exposure, concentration in Japan, and potential impacts from the June 2025 network incident.

Management Commentary and Tone:

• Chairman and CEO Daniel P. Amos described the results as "solid adjusted earnings" demonstrating the drive to execute strategy and create long-term value.
• Management highlighted the milestone of 44 consecutive years of dividend increases.
• The tone reflected confidence in the balanced approach of investing in growth while driving long-term value.
• Management noted the impact of reinsurance strategy on the income statement within Corporate and Other results.

Other Key Points:

• The company returned $1.1 billion to shareholders, consisting of $804 million in share repurchases and $305 million in dividends.
• The Board of Directors declared a fourth-quarter dividend of $0.61 per share, payable on December 1, 2026.
• Aflac Japan reached a milestone of 44 consecutive years of dividend increases with the fourth-quarter declaration.
• Aflac was included in the World's Most Ethical Companies by Ethisphere for 20 consecutive years (2026) and Fortune's World's Most Admired Companies for 25 years (2026).
• The company became a signatory of the Principles for Responsible Investment (PRI) in 2021.