10-QPeriod: Q3 FY2024

AFLAC INC Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 1, 2024For Securities:AFL

Summary

Aflac Incorporated (AFL) reported a net loss of $93 million, 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 billion, 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 billion of common stock during the first nine months.

Financial Highlights

32 data points
Beta

Revenue

$2.95B

Net Income

-$93.00M

-3.2% Net Margin

EPS (Diluted)

$-0.17

Total Assets

$128.44B

Cash & Equivalents

$5.61B

Free Cash Flow

$1.27B

Financial Statements
Beta
Revenue$2.95B
SG&A Expenses$747.00M
Operating Expenses$1.26B
Interest Expense$49.00M
Net Income-$93.00M
EPS (Basic)$-0.17
EPS (Diluted)$-0.17
Shares Outstanding (Basic)557.90M
Shares Outstanding (Diluted)560.41M

Key Highlights

  • 1Net loss of $(93) million in Q3 2024, compared to net earnings of $1.57 billion in Q3 2023.
  • 2Diluted EPS of $(0.17) in Q3 2024, down from $2.64 in Q3 2023.
  • 3Net investment losses of $1.4 billion in Q3 2024, a significant reversal from net investment gains of $423 million in Q3 2023.
  • 4Nine-month net earnings of $3.54 billion, down from $4.39 billion in the prior year.
  • 5Nine-month adjusted earnings increased to $3.21 billion from $3.00 billion year-over-year.
  • 6Shareholders' equity was $24.8 billion at September 30, 2024, up from $22.0 billion at December 31, 2023.
  • 7The company repurchased $2.1 billion of common stock during the first nine months of 2024.

Frequently Asked Questions

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.

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.

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.

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.