10-QPeriod: Q2 FY2026

AFLAC INC Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 7, 2026For Securities:AFL

Summary

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.

Key Highlights

  • 1Net 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.
  • 2For 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.
  • 3Aflac Japan's pretax adjusted earnings increased in yen terms due to lower benefits and claims, despite a weaker yen impacting translated revenues.
  • 4Aflac U.S. saw an increase in net earned premiums but a slight decrease in pretax adjusted earnings due to higher benefits and claims.
  • 5The company repurchased $2.0 billion of common stock in the first six months of 2026, with $96.8 million shares remaining available for repurchase.
  • 6Shareholders' equity increased to $30.3 billion at June 30, 2026, supported by strong earnings and positive impacts from discount rate assumption changes.
  • 7The company reported cybersecurity incidents in both Japan and the U.S., but currently believes they will not have a material impact on financial condition.

Frequently Asked Questions

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.

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.

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.

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.