01—Abstract
Summary
Summary of the 10-Q filed November 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Aflac Incorporated (AFL) reported a net loss of $93 milliona, or $(0.17) per diluted share, for the third quarter of 2024, a significant decrease from a net earning of $1.57 billion, or $2.64 per diluted share, in the same period last year.
This decline was primarily driven by substantial foreign exchange-related losses due to the strengthening Japanese yen and significant net investment losses totaling $1.4 billionb, compared to net investment gains of $423 million in the prior year's third quarter. For the nine-month period ended September 30, 2024, net earnings were $3.54 billion, or $6.23 per diluted share, down from $4.39 billion, or $7.28 per diluted share, in the same period last year. The year-to-date investment results also showed a decline, with net investment gains of $239 million compared to $1.1 billion in the prior year.
Despite the reported net loss in the quarter, adjusted earnings showed a more favorable trend, increasing year-over-year due to strong performance in the Japan segment and expense control measures in the U.S. segment. The company continued its share repurchase program, repurchasing $2.1 billionc of common stock during the first nine months.
02—Key points
Key Highlights
- Net loss of $(93) million in Q3 2024, compared to net earnings of $1.57 billion in Q3 2023.
- Diluted EPS of $(0.17) in Q3 2024, down from $2.64 in Q3 2023.
- Net investment losses of $1.4 billion in Q3 2024, a significant reversal from net investment gains of $423 million in Q3 2023.
- Nine-month net earnings of $3.54 billion, down from $4.39 billion in the prior year.
- Nine-month adjusted earnings increased to $3.21 billion from $3.00 billion year-over-year.
- Shareholders' equity was $24.8 billion at September 30, 2024, up from $22.0 billion at December 31, 2023.
- The company repurchased $2.1 billion of common stock during the first nine months of 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 1, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $2.95B$4.95B | −40.4% |
| SG&A Expenses | $747.00M$785.00M | −4.8% |
| Operating Expenses | $1.26B$1.28B | −1.8% |
| Interest Expense | $49.00M$48.00M | +2.1% |
| Net Income | -$93.00M$1.57B | −105.9% |
| EPS (Basic) | $-0.17$2.65 | −106.4% |
| EPS (Diluted) | $-0.17$2.64 | −106.4% |
| Shares Outstanding (Basic) | 557.90M591.25M | −5.6% |
| Shares Outstanding (Diluted) | 560.41M593.60M | −5.6% |
05—Questions
Frequently Asked Questions
What is the primary reason for the significant decrease in net earnings in the third quarter of 2024?
The primary reason for the sharp decline in net earnings for the third quarter of 2024 was a combination of substantial foreign exchange-related losses due to the strengthening Japanese yen and significant net investment losses of $1.4 billion, a reversal from net investment gains in the prior year's quarter.
How did the company's investment portfolio perform during the quarter?
The investment portfolio experienced a significant downturn in the third quarter of 2024, reporting net investment losses of $1.4 billion. This was primarily driven by losses from certain derivative and foreign currency activities, an increase in credit loss allowances, and a decrease in net gains from sales and redemptions compared to the prior year's quarter.
What is the company's outlook on share repurchases?
Aflac Incorporated continued its share repurchase program, buying back $2.1 billion worth of common stock in the first nine months of 2024. As of September 30, 2024, the company had approximately 54.3 million shares remaining authorized for purchase, indicating an ongoing commitment to returning capital to shareholders.
How did the Japanese yen's performance impact the company's results?
The strengthening of the Japanese yen against the U.S. dollar had a negative impact on the company's reported results, particularly due to significant foreign exchange-related losses. While adjusted earnings showed an increase year-over-year, the weaker yen currency impact on translated results was noted.
06—Continue