01—Abstract
Summary
Summary of the 10-Q filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Aflac Incorporated reported solid financial results for the second quarter and first half of 2026.
Net earnings significantly increased year-over-year, driven by improved investment performance and the absence of substantial prior-year investment losses. Aflac Japan, the company's largest segment, experienced a decrease in premiums and adjusted net investment income, partly due to a weaker yen, but saw a reduction in benefits and claims, leading to improved pretax adjusted earnings in yen terms. Aflac U.S. demonstrated growth in net earned premiums and maintained stable adjusted net investment income, though pretax adjusted earnings saw a slight decline due to increased benefits and claims.
The company continued its share repurchase program, returning capital to shareholders, and maintained a strong capital position. Management remains focused on managing currency fluctuations and operational risks, including cybersecurity incidents in both Japan and the U.S., which are currently not expected to have a material impact on the company's financial condition.
02—Key points
Key Highlights
- Net earnings increased to $825 million ($1.63 per diluted share) in Q2 2026, up from $599 million ($1.11 per diluted share) in Q2 2025.
- For the first six months of 2026, net earnings were $1.8 billion ($3.61 per diluted share), compared to $628 million ($1.16 per diluted share) in the same period of 2025.
- Aflac Japan's pretax adjusted earnings increased in yen terms due to lower benefits and claims, despite a weaker yen impacting translated revenues.
- Aflac U.S. saw an increase in net earned premiums but a slight decrease in pretax adjusted earnings due to higher benefits and claims.
- The company repurchased $2.0 billion of common stock in the first six months of 2026, with $96.8 million shares remaining available for repurchase.
- Shareholders' equity increased to $30.3 billion at June 30, 2026, supported by strong earnings and positive impacts from discount rate assumption changes.
- The company reported cybersecurity incidents in both Japan and the U.S., but currently believes they will not have a material impact on financial condition.
03—Questions
Frequently Asked Questions
How did Aflac's net earnings perform in the second quarter of 2026 compared to the prior year?
Aflac's net earnings rose to $825 million, or $1.63 per diluted share, in the second quarter of 2026, a significant increase from $599 million, or $1.11 per diluted share, in the second quarter of 2025. This improvement was driven by stronger investment results, particularly a reduction in net investment losses compared to the previous year.
What was the impact of foreign currency fluctuations on Aflac's results?
The Japanese yen weakened against the U.S. dollar during the reporting periods. This weakened yen negatively impacted the translated U.S. dollar results for Aflac Japan. Adjusted earnings per diluted share were negatively impacted by $0.05 in the second quarter and $0.07 in the first six months due to the weaker yen.
How is Aflac managing its capital and returning value to shareholders?
Aflac generated strong operating cash flows and has a solid capital position. The company repurchased $2.0 billion of its common stock in the first six months of 2026 and continues to pay dividends, with the quarterly dividend increasing to $0.61 per share. Approximately 96.8 million shares remain available for repurchase under existing authorizations.
What is the company's exposure to cybersecurity incidents?
Aflac experienced cybersecurity incidents in both its U.S. and Japan operations during the period. While the company is assessing the full scope and potential impact, including notifying affected individuals and regulators, current information suggests these incidents are not expected to have a material impact on the company's financial condition or results of operations.
04—Continue