Summary
Aflac Incorporated's 2015 Form 10-K highlights a year of financial resilience, marked by a 8.2% decrease in total revenues to $20.9 billion, primarily driven by the weakening Yen. Net earnings for the year were $2.5 billion, translating to $5.85 per diluted share. The company continued its focus on its core supplemental health and life insurance business, with Japan accounting for a significant portion of its revenues and assets. Aflac also actively managed its capital through share repurchases and debt management. The company faced a challenging macroeconomic environment, including global capital market volatility and the persistent low-interest-rate environment, which impacted investment income. Despite these headwinds, Aflac's operational segments in both Japan and the U.S. demonstrated stable performance. The company's robust risk management framework and strong capital position provided stability throughout the year, and management remained optimistic about future growth prospects, particularly in its less interest-rate-sensitive third-sector products in Japan.
Financial Highlights
35 data points| Revenue | $20.87B |
| SG&A Expenses | $2.61B |
| Operating Income | $4.00B |
| Interest Expense | $289.00M |
| Net Income | $2.53B |
| EPS (Basic) | $2.94 |
| EPS (Diluted) | $2.92 |
| Shares Outstanding (Basic) | 861.31M |
| Shares Outstanding (Diluted) | 866.34M |
Key Highlights
- 1Total revenues decreased by 8.2% to $20.9 billion, largely due to a weaker Yen.
- 2Net earnings were $2.5 billion, or $5.85 per diluted share.
- 3Aflac Japan remains the dominant segment, contributing 70% of total revenues and 83% of total assets.
- 4The company repurchased $1.3 billion of its common stock in 2015, demonstrating a commitment to returning capital to shareholders.
- 5New annualized premium sales in Aflac U.S. increased by 3.7% to $1.49 billion, driven by growth in accident and short-term disability products.
- 6Aflac Japan saw a 13.4% increase in sales of its third-sector cancer and medical products, indicating a strategic focus on less interest-rate-sensitive business.
- 7The company maintained a strong capital position, with Aflac's company action level RBC ratio at 933% as of December 31, 2015.