Aflac reported third quarter 2026 adjusted earnings of $1.2 billion, or $2.43 per diluted share, significantly exceeding analyst expectations of $1.80. While GAAP revenue of $3.27 billion missed estimates due to $1.1 billion in net investment losses from strategic portfolio repositioning, underlying operations remained robust. The company returned $1.1 billion to shareholders during the period, marking its 44th consecutive year of dividend increases.
Key Highlights
- U.S. segment pretax adjusted earnings climbed 31.5% to $493 million, supported by improved sales and higher reserve remeasurement gains from unlocking actuarial assumptions.
- Japan segment pretax adjusted earnings fell 15.2% in yen terms to ¥152.3 billion, with the profit margin contracting to 44.4% from 52.2% a year ago.
- Adjusted net investment income fell 5.1% to $957 million, a narrower decline than the double-digit drop anticipated by analysts, as the company repositioned its portfolio to improve yield.
- Capital deployment remained aggressive with $804 million in share repurchases and $305 million in dividends paid during the quarter.