Summary
Aflac Incorporated reported solid financial results for the nine months ended September 30, 2022. Net earnings were $4.0 billion, a significant increase from $3.3 billion in the same period of the prior year. This improvement was substantially driven by a $695 million income tax benefit recognized in the third quarter due to a change in tax accounting method for foreign currency translation. Excluding this tax benefit, adjusted earnings were $2.6 billion for the first nine months of 2022, a decrease from $3.2 billion in the prior year, reflecting the impact of a weaker Japanese yen and planned investments in the U.S. business. The company's total revenues decreased to $15.5 billion from $16.7 billion year-over-year, primarily due to lower net earned premiums, particularly in Aflac Japan, impacted by economic conditions and the yen's depreciation. Despite revenue pressures, Aflac Japan saw a 10.2% increase in sales in yen terms in the third quarter, driven by new product launches. Aflac U.S. continued its positive sales momentum with an 11.8% increase in the third quarter. Total investments and cash stood at $114.5 billion, down from $143.0 billion at the end of 2021, reflecting strategic portfolio management and share repurchases. Shareholders' equity decreased to $24.2 billion from $33.3 billion, impacted by adverse movements in accumulated other comprehensive income, primarily related to unrealized losses on fixed maturity securities and foreign currency translation losses. The company continues to return capital to shareholders, repurchasing $1.8 billion of common stock and paying dividends, demonstrating confidence in its ongoing financial strength.
Financial Highlights
34 data points| Revenue | $4.70B |
| SG&A Expenses | $779.00M |
| Operating Expenses | $1.30B |
| Operating Income | $1.11B |
| Interest Expense | $45.00M |
| Net Income | $1.78B |
| EPS (Basic) | $2.83 |
| EPS (Diluted) | $2.82 |
| Shares Outstanding (Basic) | 629.35M |
| Shares Outstanding (Diluted) | 631.95M |
Key Highlights
- 1Net earnings increased to $4.0 billion for the first nine months of 2022, up from $3.3 billion in the prior year, largely due to a significant tax benefit.
- 2Adjusted earnings (a non-GAAP measure excluding certain items) were $2.6 billion for the first nine months of 2022, down from $3.2 billion in the prior year, reflecting a weaker Japanese yen and strategic investments.
- 3Total revenues decreased to $15.5 billion for the first nine months of 2022 from $16.7 billion in the prior year, impacted by lower net earned premiums, especially in Japan.
- 4Aflac Japan's sales increased by 10.2% in yen terms in Q3 2022, driven by new product launches, while Aflac U.S. sales grew by 11.8% in Q3 2022.
- 5Shareholders' equity decreased to $24.2 billion from $33.3 billion, primarily impacted by unrealized losses on investments and unfavorable foreign currency translation.
- 6The company repurchased $1.8 billion of its common stock during the first nine months of 2022, with 25.6 million shares remaining authorized for repurchase.
- 7The company's investment portfolio stood at $114.5 billion as of September 30, 2022, down from $143.0 billion at the end of 2021.