10-QPeriod: Q3 FY2025

AFLAC INC Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 5, 2025For Securities:AFL

Summary

Aflac Incorporated reported a significant turnaround in its third quarter of 2025 compared to the same period in 2024. Total revenues increased to $4.7 billion from $2.9 billion, largely driven by a swing from net investment losses of $1.4 billion in Q3 2024 to net investment gains of $275 million in Q3 2025. This resulted in a net earning of $1.6 billion, or $3.08 per diluted share, a substantial improvement from a net loss of $93 million, or $(0.17) per diluted share, in the prior year's quarter. For the nine months ended September 30, 2025, total revenues were $12.3 billion, down from $13.5 billion in the prior year, primarily due to net investment losses of $1.1 billion in 2025 compared to net investment gains of $239 million in 2024. Consequently, net earnings for the nine-month period decreased to $2.3 billion, or $4.21 per diluted share, from $3.5 billion, or $6.23 per diluted share, in the same period of 2024. The company's adjusted earnings, which exclude certain volatile items, showed more stable performance, with Q3 2025 adjusted earnings at $1.3 billion ($2.49 per diluted share) compared to $1.2 billion ($2.16 per diluted share) in Q3 2024. The company continued its share repurchase program, buying back $2.7 billion of stock in the first nine months of 2025, and maintained a strong shareholder equity position.

Financial Highlights

31 data points
Beta

Revenue

$4.74B

Net Income

$1.64B

34.6% Net Margin

EPS (Diluted)

$3.08

Total Assets

$122.31B

Cash & Equivalents

$6.77B

Free Cash Flow

$1.25B

Financial Statements
Beta
Revenue$4.74B
SG&A Expenses$781.00M
Operating Expenses$1.31B
Interest Expense$56.00M
Net Income$1.64B
EPS (Basic)$3.09
EPS (Diluted)$3.08
Shares Outstanding (Basic)530.05M
Shares Outstanding (Diluted)532.01M

Key Highlights

  • 1Net earnings swung from a loss of $93 million in Q3 2024 to a profit of $1.6 billion in Q3 2025, driven by a significant improvement in net investment results.
  • 2Total revenues increased to $4.7 billion in Q3 2025 from $2.9 billion in Q3 2024.
  • 3Adjusted earnings for Q3 2025 were $1.3 billion ($2.49 per diluted share), an increase from $1.2 billion ($2.16 per diluted share) in Q3 2024, demonstrating operational stability.
  • 4For the nine months ended September 30, 2025, net earnings were $2.3 billion ($4.21 per diluted share), down from $3.5 billion ($6.23 per diluted share) in the comparable period of 2024, primarily due to lower net investment results.
  • 5Aflac repurchased $2.7 billion of its common stock in the first nine months of 2025 and has remaining authorization for approximately 121.6 million shares.
  • 6Shareholder equity stood at $28.7 billion ($54.57 per share) as of September 30, 2025, showing growth from $26.1 billion ($47.45 per share) at year-end 2024.
  • 7The company reported an incident of unauthorized network access in the U.S. in June 2025, but as of the filing date, it does not believe it will have a material impact on financial condition or results of operations.

Frequently Asked Questions

The primary driver for the substantial increase in net earnings from a loss of $93 million in Q3 2024 to a profit of $1.6 billion in Q3 2025 was the improvement in net investment results, which swung from a loss of $1.4 billion to a gain of $275 million.

Aflac Japan's pretax adjusted earnings were $2.7 billion, a slight decrease from $2.7 billion in the prior year, impacted by lower net earned premiums and adjusted net investment income, partially offset by lower benefits and claims. Aflac U.S. showed stronger growth in pretax adjusted earnings, reaching $1.1 billion, up from $1.08 billion in the prior year, driven by higher net earned premiums and improved benefits and claims, despite higher adjusted expenses.

Aflac continued its commitment to returning capital to shareholders, repurchasing $2.7 billion of its common stock in the first nine months of 2025. The company also increased its cash dividend per share to $0.58 in Q3 2025 from $0.50 in Q3 2024, and the board authorized the purchase of an additional 100 million shares.

Aflac reported unauthorized network access in June 2025, impacting data for a substantial number of individuals. While the investigation is ongoing, the company currently believes the incident is unlikely to have a material impact on its financial condition or results of operations. However, it has incurred costs related to incident response and may face additional expenses from credit monitoring services, potential litigation, and governmental investigations.