Aflac (AFL) Q1 2026 earnings summary

Executive summary

• Net earnings for Q1 2026 surged to $1.0 billion ($1.98 per diluted share), a dramatic increase from $29 million ($0.05 per share) in Q1 2025, driven by strong investment gains and lower non-recurring losses.

• Adjusted earnings were $901 million ($1.75 per diluted share), nearly flat year-over-year, but adjusted EPS increased 6.6% to $1.77 excluding currency effects.

• Total revenues rose 27.9% year-over-year to $4.3 billion, reflecting strong execution and product initiatives in both Japan and the U.S.

• $1.3 billion was returned to shareholders through $1.0 billion in share repurchases and $315 million in dividends in Q1.

• Shareholders' equity increased to $30.0 billion ($58.69 per share) at March 31, 2026.

Financial highlights

• Net earned premiums in Japan (yen terms) declined 3.8% year-over-year; U.S. net earned premiums increased 3.5% year-over-year.

• Net investment gains of $49 million in Q1 2026 compared to losses of $963 million in Q1 2025, primarily from derivatives and FX activities.

• Adjusted book value per share rose to $54.96, and excluding FX remeasurement was $42.71.

• Annualized return on average shareholders’ equity was 13.7%; adjusted ROE excluding FX remeasurement was 16.4%.

• Cash dividends per share increased to $0.61 from $0.58 year-over-year.

Outlook and guidance

• Japan benefit ratio outlook for the year remains at 60%-63%, with confidence in maintaining this range; expense ratio 20%-23%, pretax profit margin 33%-36%.

• U.S. benefit ratio guidance for the full year is 48%-52%, expense ratio 36%-39%, pretax profit margin 17%-20%.

• Japan sales for 2026 are expected to exceed 2025 levels, targeting around JPY 80 billion.

• Underlying earned premium in Japan expected to remain in the -1% to -2% range for the full year, with a path to growth as sales increase.

• Management remains focused on profitable growth, capital deployment, and extending its record of dividend increases.