AFLAC INC Quarterly Report for Q1 Ended Mar 31, 2023

Summary

Aflac Incorporated reported solid financial results for the first quarter of 2023, demonstrating resilience amidst varying economic conditions. The company's net earnings increased to $1.19 billion, or $1.94 per diluted share, a notable improvement from $1.05 billion, or $1.60 per diluted share, in the prior year's first quarter. This growth was supported by strong investment income and effective expense management across its core U.S. and Japan segments. Total revenues, however, saw a slight decrease to $4.80 billion from $5.17 billion in the prior year, largely influenced by a weaker yen which impacted the translation of Aflac Japan's results. Despite this, the company's "adjusted earnings," a non-GAAP measure excluding certain investment gains/losses and foreign currency impacts, showed a positive trend, increasing to $1.0 billion from $942 million year-over-year. Aflac continued its commitment to shareholder returns by repurchasing $700 million of its common stock in the quarter, underscoring its confidence in its financial position and future prospects.

Key Highlights

• 1Net earnings increased to $1.19 billion in Q1 2023 from $1.05 billion in Q1 2022.
• 2Diluted earnings per share rose to $1.94 in Q1 2023 from $1.60 in Q1 2022.
• 3Total adjusted revenues (non-GAAP) increased to $4.58 billion.
• 4Aflac Japan's pretax adjusted earnings were $788 million, while Aflac U.S. pretax adjusted earnings were $352 million.
• 5The company repurchased $700 million of its common stock during the quarter.
• 6Shareholders' equity remained strong at $19.8 billion as of March 31, 2023.
• 7The company adopted new accounting guidance for long-duration insurance contracts (LDTI) effective January 1, 2023, which impacted prior year amounts.

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