01—Abstract
Summary
Summary of the 10-K filed February 25, 2026. Cited figures are marked; the original filing is the authoritative source.
Aflac Incorporated's 2025 10-K filing reveals a challenging year for the company, marked by a decline in total revenues and net earnings, primarily due to net investment losses.
Total revenues decreased by 9.3% to $17.2 billion, and net earnings fell to $3.6 billiona ($6.82 per diluted share) from $5.4 billion ($9.63 per diluted share) in the prior year. This performance was significantly impacted by $572 million in net investment losses in 2025, a reversal from the $1.3 billion in net investment gains recorded in 2024. Despite the headwinds, adjusted earnings remained relatively stable at $4.0 billion ($7.49 per diluted share) compared to $4.1 billion ($7.21 per diluted share) in 2024, indicating resilient core operational performance.
The company continued its capital return strategy, repurchasing $3.5 billionb of its common stock. Shareholders' equity saw an increase to $29.5 billion, supported by favorable changes in discount rate assumptions on insurance reserves, although offset by unrealized losses on investment securities and derivatives. The company also disclosed a cybersecurity incident in June 2025 impacting approximately 22.65 million individuals, though it does not currently anticipate a material financial impact.
02—Key points
Key Highlights
- Total revenues decreased by 9.3% to $17.2 billion in 2025, primarily due to net investment losses.
- Net earnings declined to $3.6 billion ($6.82 per diluted share) in 2025 from $5.4 billion ($9.63 per diluted share) in 2024.
- Adjusted earnings remained stable at $4.0 billion ($7.49 per diluted share) in 2025.
- Aflac Incorporated repurchased $3.5 billion of its common stock in 2025.
- Shareholders' equity increased to $29.5 billion at December 31, 2025.
- A cybersecurity incident occurred in June 2025 affecting approximately 22.65 million individuals, with no currently anticipated material financial impact.
- The company announced a 5.2% increase in its quarterly cash dividend, effective for the first quarter of 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 25, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $17.16B$18.93B | −9.3% |
| SG&A Expenses | $3.25B$3.01B | +7.9% |
| Operating Expenses | $5.34B$5.06B | +5.5% |
| Interest Expense | $217.00M$194.00M | +11.9% |
| Net Income | $3.65B$5.44B | −33.0% |
| EPS (Basic) | $6.84$9.68 | −29.3% |
| EPS (Diluted) | $6.82$9.63 | −29.2% |
| Shares Outstanding (Basic) | 532.88M562.49M | −5.3% |
| Shares Outstanding (Diluted) | 534.88M565.01M | −5.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of Aflac's decreased net earnings in 2025?
The primary driver of the decrease in net earnings was a significant shift from net investment gains in 2024 to net investment losses in 2025. Specifically, the company recorded $572 million in net investment losses in 2025 compared to $1.3 billion in net investment gains in the prior year.
How did the cybersecurity incident in June 2025 impact the company?
Aflac experienced an unauthorized access incident in June 2025 that resulted in the exfiltration of personal information for approximately 22.65 million individuals. While the company has incurred costs related to incident response, notifications, and potential legal actions, it does not currently believe the incident will materially impact its financial condition or results of operations.
What is Aflac's outlook for 2026?
Aflac's strategy for 2026 focuses on preserving solid pretax profit margins through increased sales production, particularly with new products launched in 2025 in Aflac Japan, and continued growth initiatives in both Japan and the U.S. segments. The company also intends to maintain strong capital ratios and tactically deploy capital through share repurchases and opportunistic investments, alongside its commitment to shareholder dividends.
How is Aflac Japan performing, and what are its key product contributions?
Aflac Japan remains the principal contributor to consolidated earnings. In 2025, Aflac Japan's pretax adjusted earnings decreased slightly by 1.5% in Japanese yen terms. Key product contributions to new annualized premium sales in 2025 were 67.2% from Cancer insurance, followed by Life insurance at 19.1% and Medical and other health at 11.9%. The company is focused on its third sector products, like cancer and medical insurance, which are less sensitive to interest rates and have stable margins.
06—Continue