AFL · Aflac Incorporated

Aflac's Q1 2026 results showed robust GAAP net earnings of $1.0B driven by $49M net investment gains versus $963M losses last year, though adjusted earnings dipped slightly 0.6% to $901M due to $14M shortfall in variable investment income and weaker yen (156.87 average rate, negative $0.02 EPS impact). Japan segment led with pretax adjusted earnings up 8.3% in yen to ¥119.1B (35.0% margin from favorable benefits, benefit ratio 62.9% down 290bps), despite 3.8% premium decline from reinsurance and paid-up policies; sales surged 25.5% on Anshin Palette, Miraito, and Tsumitasu products. U.S. delivered steady growth with premiums +3.5% to $1.6B, persistency stable at 79.3%, pretax earnings +1.4% to $363M (20.4% margin), fueled by group products sales +2.9%. Corporate breakeven reflected higher interest expense and runoff. Balance sheet strengthened with equity at $30B (+13.8% YoY), adjusted book value per share ex-FX $42.71 (+0.2%). Capital return totaled $1.3B ($1B buybacks, $315M dividends), with Q2 dividend raised 5.2% to $0.61 signaling 44th consecutive increase. CFO Max Brodén highlighted solid execution, reserve gains exceeding plan ($82M), and strong capital (ESR 227%, RBC 560%), supporting tactical deployments for ROE spread over cost of capital. No formal guidance issued, but outlook slides reaffirmed Japan margins 33-36%, U.S. 17-20%.