Aflac Incorporated Announces Third Quarter 2026 Results, Declares Fourth Quarter Dividend

U.S. pretax adjusted earnings rose 31.5%, while Japan's fell 15.2% in yen terms.

Rhea-AI Summary

Aflac (NYSE: AFL) reported third-quarter 2026 net earnings of $303 million and declared its fourth-quarter dividend amid lower investment results. Net earnings fell 81.5%, and diluted earnings per share declined to $0.61 from $3.08 a year earlier. Revenue decreased 31.0% to $3.271 billion. Results included $1.1 billion in net investment losses, primarily reflecting realized losses from portfolio repositioning. Adjusted earnings, a non-GAAP measure, fell 8.5% to $1.214 billion; adjusted diluted earnings per share decreased 2.4% to $2.43, benefiting from $453 million in reserve remeasurement gains.

Japan's pretax adjusted earnings fell 15.2% in yen, while U.S. pretax adjusted earnings rose 31.5% to $493 million. Aflac repurchased $804 million of shares and paid $305 million in dividends. The declared $0.61 quarterly dividend is payable December 1, 2026, to holders of record November 18, 2026, marking 44 consecutive years of dividend increases.

26 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

3 major · 33 points

How the balance works

Positive

• Moderate pointShare repurchases returned $804 million to shareholders in the third quarter. 1.3% of market cap
• Moderate pointThird-quarter adjusted earnings benefited from $453 million in reserve remeasurement gains.
• Moderate pointU.S. quarterly pretax adjusted earnings increased 31.5% to $493 million year over year.
• Moderate pointU.S. quarterly net earned premiums increased 3.3% to $1.544 billion.
• Moderate pointU.S. quarterly adjusted revenues increased 3.1% to $1.781 billion.
• Moderate pointU.S. quarterly benefits and claims decreased 7.6% to $629 million.
• Moderate pointU.S. quarterly adjusted expenses decreased 1.9% to $659 million.
• Moderate pointU.S. quarterly pretax adjusted profit margin rose to 27.7% from 21.7%.
• Moderate pointU.S. nine-month pretax adjusted earnings increased 9.4% to $1.2 billion.
• Moderate pointU.S. nine-month net earned premiums increased 3.0% to $4.6 billion.
• Moderate pointU.S. nine-month adjusted revenues increased 3.0% to $5.3 billion.
• Moderate pointU.S. nine-month pretax adjusted profit margin rose to 23.0% from 21.7%.

14 minor points

• Minor pointFourth-quarter dividend declaration of $0.61 per share marks 44 consecutive years of dividend increases.
• Minor pointShareholders' equity rose 2.1% to $29.283 billion from September 30, 2025.
• Minor pointNine-month diluted net earnings per share rose to $4.24 from $4.21, despite lower net earnings.
• Minor pointNine-month currency-neutral adjusted diluted earnings per share increased 1.7% to $6.02.
• Minor pointJapan quarterly adjusted net investment income increased 3.7% to ¥102 billion year over year.
• Minor pointJapan nine-month adjusted net investment income increased 1.5% to ¥292.7 billion.
• Minor pointJapan nine-month new annualized premium sales increased 3.0% to ¥56.1 billion.
• Minor pointU.S. rolling 12-month premium persistency improved to 79.7% from 79.0%.
• Minor pointU.S. quarterly sales increased 3.5% to $403 million.
• Minor pointU.S. nine-month sales increased 3.1% to $1.1 billion.
• Minor pointCorporate and Other quarterly pretax adjusted earnings increased 4.3% to $72 million.
• Minor pointCorporate and Other quarterly net earned premiums increased 17.8% to $252 million.
• Minor pointCorporate and Other quarterly adjusted revenues increased 5.0% to $360 million.
• Minor pointCorporate and Other quarterly benefits and claims decreased 26.3% to $73 million.

Negative

• Major pointThird-quarter net earnings fell 81.5% to $303 million; diluted earnings per share fell 80.2% to $0.61.
• Major pointThird-quarter revenue declined 31.0% to $3.271 billion year over year.
• Major pointNet unrealized investment securities and derivatives losses widened to $5.0 billion from $1.7 billion a year earlier.
• Moderate pointThird-quarter adjusted earnings fell 8.5% to $1.214 billion; adjusted diluted earnings per share fell 2.4% to $2.43.
• Moderate pointNine-month revenue declined 4.6% to $11.7 billion.
• Moderate pointNine-month net earnings decreased to $2.1 billion from $2.3 billion.
• Moderate pointNine-month adjusted earnings fell to $3.0 billion from $3.2 billion; adjusted diluted earnings per share remained $5.92.
• Moderate pointUnrealized foreign currency translation losses widened to $4.9 billion from $4.5 billion a year earlier.
• Moderate pointAdjusted book value excluding currency remeasurement fell to $20.2 billion, or $40.73 per share, from $22.9 billion, or $43.52.
• Moderate pointJapan quarterly pretax adjusted earnings declined 15.2% to ¥152 billion; dollar earnings declined 21.0% to $961 million.
• Moderate pointJapan quarterly net earned premiums fell 2.0% to ¥240 billion; dollar premiums fell 9.3% to $1.508 billion.
• Moderate pointJapan quarterly adjusted revenues declined 0.3% to ¥343 billion; dollar revenues declined 7.7% to $2.156 billion.
• Moderate pointJapan quarterly benefits and claims increased 22.5% to ¥118 billion.
• Moderate pointJapan quarterly pretax adjusted profit margin fell to 44.4% from 52.2%.
• Moderate pointJapan nine-month pretax adjusted earnings declined 3.5% to ¥389.7 billion; dollar earnings declined 9.8% to $2.5 billion.
• Moderate pointJapan nine-month net earned premiums declined 3.2% to ¥732.1 billion; dollar premiums declined 9.5% to $4.6 billion.
• Moderate pointJapan nine-month adjusted revenues declined 1.9% to ¥1.0 trillion; dollar revenues declined 8.3% to $6.5 billion.

16 minor points

• Minor pointThird-quarter net investment losses were $1.1 billion, versus $275 million in gains a year earlier.
• Minor pointThird-quarter tax capital loss valuation allowance reduced earnings by $51 million, or $0.10 per diluted share.
• Minor pointWeaker yen reduced adjusted earnings per share by $0.03 in the third quarter.
• Minor pointAdjusted book value declined to $26.9 billion from $28.0 billion, although per-share value rose to $54.21 from $53.33.
• Minor pointJapan quarterly dollar adjusted net investment income declined 3.9% to $639 million.
• Minor pointJapan quarterly adjusted expenses increased 6.6% to ¥73 billion.
• Minor pointJapan rolling 12-month premium persistency decreased to 92.9% from 93.3%.
• Minor pointJapan quarterly new annualized premium sales declined 4.0% to ¥18.8 billion.
• Minor pointJapan nine-month dollar adjusted net investment income declined 5.3% to $1.8 billion.
• Minor pointJapan nine-month pretax adjusted profit margin fell to 37.9% from 38.5%.
• Minor pointU.S. quarterly adjusted net investment income decreased 0.9% to $212 million.
• Minor pointCorporate and Other quarterly adjusted net investment income declined 18.5% to $106 million.
• Minor pointCorporate and Other quarterly interest expense increased 21.8% to $67 million.
• Minor pointCorporate and Other quarterly other adjusted expenses increased 23.3% to $148 million.
• Minor pointCorporate and Other nine-month pretax adjusted earnings fell to $62 million from $132 million.
• Minor pointCorporate and Other nine-month adjusted revenues decreased 6.2% to $943 million.

Key Figures

Net earnings: $303 million, compared with $1.6 billion Adjusted earnings: $1.2 billion, down 8.5% Adjusted earnings per diluted share: $2.43, down 2.4% +5 more

Net earnings

$303 million, compared with $1.6 billion

Third quarter 2026 versus a year ago

Adjusted earnings

$1.2 billion, down 8.5%

Third quarter 2026 versus a year ago

Adjusted earnings per diluted share

$2.43, down 2.4%

Third quarter 2026 versus a year ago

Total revenues

$3,271 million, down 31.0%

Third quarter 2026 versus third quarter 2025

Net investment losses

$1.1 billion

Third quarter 2026

Capital returned to shareholders

$1.1 billion

$804 million in share repurchases and $305 million in dividends

Fourth-quarter dividend

$0.61 per share

Declared for the fourth quarter of 2026

Consecutive annual dividend increases

44 years

Milestone reached with the fourth-quarter declaration

Previous Dividends,earnings Reports

1 past event · Latest: Nov 04

Same Type 1 event

1. Nov 04

   3Q25 earnings

   24h Move

   +2.2%

   Adjusted earnings rose 9.6% and adjusted EPS increased 15.3% year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

current expected credit losses (cecl), deferred tax assets, accumulated other comprehensive income (aoci), actuarial assumptions

4 terms

current expected credit losses (cecl) financial

"$102 million of current expected credit losses (CECL)"

Current Expected Credit Losses (CECL) is an accounting standard that requires lenders and companies with loans or receivables to estimate and record the lifetime expected losses up front, rather than waiting until a loss is probable. Investors care because CECL changes reported profits and the amount of reserves a firm must hold — like a household setting aside a larger rainy‑day fund based on forecasted storms — which affects capital, dividend capacity and the perceived financial strength of a company.

deferred tax assets financial

"against a portion of the Company's deferred tax assets"

An item on a company’s balance sheet showing tax benefits it can use later to reduce future tax bills — think of it as an IOU from the tax system for past losses or timing differences. It matters to investors because it can boost future cash flow and apparent value if the company expects profits ahead, but those benefits vanish if the company cannot generate taxable income and the asset must be reduced.

accumulated other comprehensive income (aoci) financial

"excluding accumulated other comprehensive income (AOCI)"

Accumulated other comprehensive income (AOCI) is a section of a company's equity that records certain gains and losses that are excluded from net income, such as currency translation shifts, unrealized gains or losses on some investments, and retirement-plan adjustments. Investors care because AOCI reveals changes in a company’s financial position that don’t show up on the profit-and-loss line but can alter the value of equity over time—like a side account that captures market swings before they hit your main balance.

actuarial assumptions technical

"as a result of unlocking actuarial assumptions"

Actuarial assumptions are the estimates experts use about future events—such as life expectancy, employee turnover, wage growth, interest rates, and claim frequency—to calculate the size and timing of a company’s long-term obligations like pensions and insurance claims. For investors, these assumptions drive reported liabilities and periodic costs, so small changes can noticeably alter a firm's balance sheet and earnings; think of them as the weather forecast that shapes long-term planning and valuation.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

COLUMBUS, Ga., Nov. 4, 2026 /PRNewswire/ -- Aflac Incorporated (NYSE: AFL) today reported its third quarter results.

For the Quarter

• Net earnings were $303 million, or $0.61 per diluted share, compared with $1.6 billion, or $3.08 per diluted share a year ago.
• Adjusted earnings* were $1.2 billion, compared with $1.3 billion a year ago, reflecting a decrease of 8.5%.
• Adjusted earnings per diluted share* decreased 2.4% to $2.43.
• Adjusted earnings benefited from reserve remeasurement gains of $453 million.
• Annualized return on average shareholders' equity was 4.1%.
• Annualized adjusted return on equity excluding foreign currency remeasurement* was 23.7%.
• The Company returned $1.1 billion to shareholders, consisting of $804 million in share repurchase and $305 million in dividends.
• Aflac Incorporated reached the milestone of 44 consecutive years of dividend increases with the fourth quarter declaration of $0.61.
• Aflac Japan ceded approximately ¥500 billion of reserves on an FSA basis associated with cancer insurance policies to Aflac Re Bermuda.

Commenting on the company's results, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos stated: "Aflac delivered solid adjusted earnings for the quarter and for the first nine months. These results demonstrate our drive to execute our strategy and create long-term value for our shareholders. In Japan, we have continued to address our customers' needs at different life stages through products including Anshin Palette (medical insurance), Miraito (cancer insurance) and Tsumitasu (savings-type life insurance). In addition, the Aflac Japan results reflect the impact of our reinsurance strategy on the income statement included within Corporate and Other results, where Aflac Re Bermuda is consolidated. In the U.S., our focus remains on meeting the evolving needs of employers and their employees with supplemental health products and related benefits.

"We remain focused on more profitable growth and the tactical, opportunistic deployment of capital. We treasure our 2026 milestone of 44 consecutive years of dividend increases. We continue to deploy our balanced approach of investing in growth and driving long-term value while being there for our policyholders when they need us most."

AFLAC INCORPORATED CONSOLIDATED RESULTS

AFLAC INCORPORATED SELECTED OPERATING RESULTS FOR THE QUARTER
(IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
	3Q26		3Q25		% Change
Total revenues	$   3,271		$   4,740		(31.0) %
Net earnings	303		1,639		(81.5) %
Adjusted earnings*	1,214		1,327		(8.5) %
Net earnings per share (diluted)	0.61		3.08		(80.2) %
Adjusted earnings per share (diluted)*	2.43		2.49		(2.4) %
Total shareholders' equity	29,283		28,688		2.1 %
Total liabilities and shareholders' equity	113,511		122,306		(7.2) %

Total revenues were $3.3 billion in the third quarter of 2026, compared with $4.7 billion in the third quarter of 2025. Net earnings were $303 million, or $0.61 per diluted share, compared with $1.6 billion, or $3.08 per diluted share a year ago, primarily due to realized losses associated with the strategic repositioning of the portfolio during the third quarter. In addition, net earnings in the third quarter of 2026 included a $51 million, or $0.10 per diluted share, tax capital loss valuation allowance established against a portion of the Company's deferred tax assets associated with tax capital loss carryforwards. Net earnings in the third quarter of 2026 also included net investment losses of $1.1 billion, or $2.15 per diluted share, compared with net investment gains of $275 million, or $0.52 per diluted share a year ago. These net investment losses include net losses from sales and redemptions of $842 million; net losses of $146 million on certain derivatives and foreign currency activities; $102 million of current expected credit losses (CECL); and impairments of $1 million; offset by a $19 million gain from an increase in the fair value of equity securities.

Adjusted earnings* in the third quarter were $1.2 billion, compared with $1.3 billion in the third quarter of 2025, reflecting a decrease of 8.5%. Adjusted earnings per diluted share* decreased 2.4% to $2.43 in the quarter. The average yen/dollar exchange rate in the third quarter of 2026 was 158.49, or 6.8% weaker than the average rate of 147.68 in the third quarter of 2025. The weaker yen/dollar exchange rate had a negative $0.03 impact on adjusted earnings per share.

Shareholders' equity was $29.3 billion, or $59.08 per share, at September 30, 2026, compared with $28.7 billion, or $54.57 per share, at September 30, 2025. Shareholders' equity at the end of the third quarter included a cumulative increase of $12.3 billion for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative increase of $6.8 billion at September 30, 2025 and a net unrealized loss on investment securities and derivatives of $5.0 billion, compared with a net unrealized loss of $1.7 billion at September 30, 2025. Shareholders' equity at the end of the third quarter also included an unrealized foreign currency translation loss of $4.9 billion, compared with an unrealized foreign currency translation loss of $4.5 billion at September 30, 2025.

For the first nine months of 2026, total revenues were down 4.6% to $11.7 billion, compared with $12.3 billion in the first nine months of 2025. Net earnings were $2.1 billion, or $4.24 per diluted share, compared with $2.3 billion, or $4.21 per diluted share, for the first nine months of 2025. Adjusted earnings for the first nine months of 2026 were $3.0 billion, or $5.92 per diluted share, compared with $3.2 billion, or $5.92 per diluted share, in 2025. For the first nine months, the average exchange rate was 158.28, or 6.5% weaker than the rate of 148.03 a year ago. Excluding the negative impact of $0.10 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share increased 1.7% to $6.02 for the first nine months of 2026.

Shareholders' equity excluding accumulated other comprehensive income (AOCI), or adjusted book value,* was $26.9 billion, or $54.21 per share at September 30, 2026, compared with $28.0 billion, or $53.33 per share, at September 30, 2025. Adjusted book value excluding foreign currency remeasurement* was $20.2 billion, or $40.73 per share at September 30, 2026, compared with $22.9 billion, or $43.52 per share, at September 30, 2025. The annualized adjusted return on equity excluding foreign currency remeasurement* in the third quarter was 23.7%.

AFLAC JAPAN

AFLAC JAPAN SELECTED OPERATING RESULTS FOR THE QUARTER
(IN BILLIONS OF YEN AND MILLIONS OF DOLLARS)
	3Q26		3Q25		% Change		3Q26		3Q25		% Change
Total net earned premiums	¥  240		¥   245		(2.0) %		$   1,508		$   1,663		(9.3) %
Yen-denominated investment income	33		32		2.2 %		205		217		(5.5) %
U.S. dollar-denominated investment income	71		68		4.0 %		445		461		(3.5) %
Adjusted net investment income	102		98		3.7 %		639		665		(3.9) %
Total adjusted revenues	343		344		(0.3) %		2,156		2,335		(7.7) %
Total benefits and claims, net	118		96		22.5 %		737		656		12.3 %
Total adjusted expenses	73		68		6.6 %		458		463		(1.1) %
Pretax adjusted earnings	152		180		(15.2) %		961		1,216		(21.0) %
					Change in bps
Premium persistency (12-mo. rolling)	92.9 %		93.3 %		(40)
Total benefits and claims, net / Total net earned premiums	49.2 %		39.3 %		990
Total adjusted expenses / Total adjusted revenues	21.2 %		19.8 %		140
Pretax adjusted earnings / Total adjusted revenues	44.4 %		52.2 %		(780)

In yen terms, Aflac Japan's net earned premiums were ¥240.3 billion for the quarter, or 2.0% lower than a year ago, mainly due to the combined impact of an external reinsurance transaction effective during the first quarter and an internal reinsurance transaction on blocks of cancer insurance effective during the third quarter, as well as limited pay products reaching paid-up status. Adjusted net investment income increased 3.7% to ¥101.6 billion, primarily due to higher fixed-rate income and higher income on U.S. dollar-denominated assets from the weakening yen; offset by lower floating-rate income and higher expenses. Total adjusted revenues in yen declined 0.3% to ¥343.2 billion. Pretax adjusted earnings in yen for the quarter declined 15.2% on a reported basis to ¥152.3 billion, primarily driven by higher benefits due to lower reserve remeasurement gains as a result of unlocking actuarial assumptions, compared to the previous year. Pretax adjusted earnings decreased 17.9% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment was 44.4%, compared with 52.2% a year ago.

For the first nine months, net earned premiums in yen were ¥732.1 billion, or 3.2% lower than a year ago. Adjusted net investment income increased 1.5% to ¥292.7 billion. Total adjusted revenues in yen were down 1.9% to ¥1.0 trillion. Pretax adjusted earnings were ¥389.7 billion, or 3.5% lower than a year ago. As a result, the pretax adjusted profit margin for the Japan segment was 37.9%, compared with 38.5% a year ago.

In dollar terms, net earned premiums decreased 9.3% to $1.5 billion in the third quarter. Adjusted net investment income decreased 3.9% to $639 million. Total adjusted revenues declined by 7.7% to $2.2 billion. Pretax adjusted earnings declined 21.0% to $961 million.

For the first nine months, net earned premiums in dollars were $4.6 billion, or 9.5% lower than a year ago. Adjusted net investment income decreased 5.3% to $1.8 billion. Total adjusted revenues were down 8.3% to $6.5 billion. Pretax adjusted earnings were $2.5 billion, or 9.8% lower than a year ago.

For the quarter, total new annualized premium sales (sales) decreased 4.0% to ¥18.8 billion, or $118 million, reflecting high prior-year sales for Miraito cancer insurance following its launch in March 2025, partially offset by solid growth in the Tsumitasu savings-type life insurance refreshed in the second quarter of 2026 and Anshin Palette, the medical insurance product launched in December 2025. For the first nine months, sales increased 3.0% to ¥56.1 billion, or $354 million.

AFLAC U.S.

AFLAC U.S. SELECTED OPERATING RESULTS FOR THE QUARTER
(IN MILLIONS OF DOLLARS)
	3Q26		3Q25		% Change
Total net earned premiums	$ 1,544		$ 1,495		3.3 %
Adjusted net investment income	212		214		(0.9) %
Total adjusted revenues	1,781		1,728		3.1 %
Total benefits and claims, net	629		681		(7.6) %
Total adjusted expenses	659		672		(1.9) %
Pretax adjusted earnings	493		375		31.5 %
					Change in bps
Premium persistency (12-mo. rolling)	79.7 %		79.0 %		70
Total benefits and claims, net / Total net earned premiums	40.7 %		45.6 %		(490)
Total adjusted expenses / Total adjusted revenues	37.0 %		38.9 %		(190)
Pretax adjusted earnings / Total adjusted revenues	27.7 %		21.7 %		600

Aflac U.S. net earned premiums increased 3.3% to $1.5 billion in the third quarter compared to the prior year, reflecting improved sales and strong persistency. Adjusted net investment income decreased 0.9% to $212 million. Total adjusted revenues were up 3.1% to $1.8 billion. Pretax adjusted earnings were $493 million, 31.5% higher than a year ago, primarily driven by lower benefits from higher reserve remeasurement gains as a result of unlocking actuarial assumptions and higher premiums as well as lower expenses. The pretax adjusted profit margin for the U.S. segment was 27.7%, compared with 21.7% a year ago.

For the first nine months, net earned premiums increased 3.0% to $4.6 billion. Adjusted net investment income remained relatively flat at $621 million. Total adjusted revenues were up 3.0% to $5.3 billion. Pretax adjusted earnings were $1.2 billion, 9.4% higher than a year ago. As a result, the pretax adjusted profit margin for the U.S. segment was 23.0%, compared with 21.7% a year ago.

Aflac U.S. sales increased 3.5% in the quarter to $403 million, primarily benefiting from sales of network dental as well as group life and disability products. For the first nine months, total new sales increased 3.1% to $1.1 billion.

CORPORATE AND OTHER 

CORPORATE AND OTHER SELECTED OPERATING RESULTS
(IN MILLIONS OF DOLLARS)
	3Q26		3Q25		% Change
Total net earned premiums	$      252		$      214		17.8 %
Adjusted net investment income	106		130		(18.5) %
Total adjusted revenues	360		343		5.0 %
Total benefits and claims, net	73		99		(26.3) %
Interest expense	67		55		21.8 %
Other adjusted expenses	148		120		23.3 %
Total benefits and adjusted expenses	288		274		5.1 %
Pretax adjusted earnings	72		69		4.3 %

For the quarter, total adjusted revenues increased 5.0% to $360 million. Pretax adjusted earnings were $72 million, compared with $69 million last year, primarily driven by higher reserve remeasurement gains as a result of unlocking actuarial assumptions and new reinsurance transactions. These earnings results were impacted by higher total adjusted expenses, as well as lower adjusted net investment income from reduced short-term asset balances and a smaller hedge program.

For the first nine months, total adjusted revenues decreased 6.2% to $943 million. Pretax adjusted earnings were  $62 million, compared with $132 million a year ago.

SHAREHOLDER DIVIDEND

The board of directors declared the fourth quarter dividend of $0.61 per share, payable on December 1, 2026 to shareholders of record at the close of business on November 18, 2026.

*See Non-U.S. GAAP Financial Measures section for an explanation of foreign exchange and its impact on the financial statements and definitions of the non-U.S. GAAP financial measures used in this earnings release, as well as a reconciliation of such non-U.S. GAAP financial measures to the most comparable U.S. GAAP financial measures.

ABOUT AFLAC INCORPORATED

Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.¹ In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force.² The company takes pride in being there for its policyholders when they need us most, as well as being included in the World's Most Ethical Companies by Ethisphere for 20 consecutive years (2026) and Fortune's World's Most Admired Companies for 25 years (2026). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol.

1 LIMRA 2025 U.S. Supplemental Health Insurance Total Market Report

2 As of March 31, 2025, Aflac estimates based on company data

Aflac Incorporated periodically provides information for investors on its corporate website, investors.aflac.com, including information regarding its commitment to corporate social responsibility and sustainability, press releases, financial information, SEC filings, corporate governance materials, annual meeting information, and other information that may be important to investors.

A copy of Aflac's financial supplement for the quarter can be found at investors.aflac.com.

Aflac Incorporated will webcast its third quarter 2026 earnings conference call on Thursday, November 5, 2026 at 8:00 a.m. (ET).

Note: Tables within this document may not foot due to rounding.

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
THREE MONTHS ENDED SEPTEMBER 30,		2026		2025		% Change
Total revenues		$   3,271		$   4,740		(31.0) %
Benefits and claims, net		1,439		1,436		0.2
Total acquisition and operating expenses		1,332		1,310		1.7
Earnings before income taxes		500		1,994		(74.9)
Income taxes		197		355
Net earnings		$      303		$   1,639		(81.5) %
Net earnings per share – basic		$     0.61		$     3.09		(80.3) %
Net earnings per share – diluted		0.61		3.08		(80.2)
Shares used to compute earnings per share (000):
Basic		496,976		530,050		(6.2) %
Diluted		498,684		532,015		(6.3)
Dividends paid per share		$     0.61		$     0.58		5.2 %

 

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
NINE MONTHS ENDED SEPTEMBER 30,		2026		2025		% Change
Total revenues		$ 11,734		$ 12,298		(4.6) %
Benefits and claims, net		5,123		5,391		(5.0)
Total acquisition and operating expenses		3,891		3,946		(1.4)
Earnings before income taxes		2,720		2,961		(8.1)
Income taxes		573		694
Net earnings		$  2,147		$  2,267		(5.3) %
Net earnings per share – basic		$    4.25		$    4.22		0.7 %
Net earnings per share – diluted		4.24		4.21		0.7
Shares used to compute earnings per share (000):
Basic		504,664		537,095		(6.0) %
Diluted		506,285		539,052		(6.1)
Dividends paid per share		$    1.83		$    1.74		5.2 %

 

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)
SEPTEMBER 30,		2026		2025		% Change
Assets:
Total investments and cash		$ 100,433		$ 109,516		(8.3) %
Deferred policy acquisition costs		9,186		9,216		(0.3)
Other assets		3,892		3,574		8.9
Total assets		$ 113,511		$ 122,306		(7.2) %
Liabilities and shareholders' equity:
Policy liabilities		$  63,517		$  74,737		(15.0) %
Notes payable and lease obligations		8,900		8,685		2.5
Other liabilities		11,811		10,196		15.8
Shareholders' equity		29,283		28,688		2.1
Total liabilities and shareholders' equity		$ 113,511		$ 122,306		(7.2) %
Shares outstanding at end of period (000)		495,651		525,710		(5.7) %

NON-U.S. GAAP FINANCIAL MEASURES

This document includes references to the Company's financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the Japanese yen weakens, translating Japanese yen into U.S. dollars results in fewer U.S. dollars being reported. When the Japanese yen strengthens, translating Japanese yen into U.S. dollars results in more U.S. dollars being reported. Consequently, Japanese yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while Japanese yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company's business is conducted in Japanese yen and never converted into U.S. dollars but translated into U.S. dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).

The company defines the non-U.S. GAAP financial measures included in this earnings release as follows:

• Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management's control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring or other items not associated with the normal course of the Company's insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company's insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company's insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively.
  
  
• Adjusted earnings excluding current period foreign currency impact are computed using the average foreign exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management's control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively.
  
  
• Adjusted return on equity is annualized adjusted earnings divided by average shareholders' equity, excluding accumulated other comprehensive income. Management uses adjusted return on equity to evaluate the financial performance of the Company's insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company's insurance business. The Company considers adjusted return on equity important as it excludes components of accumulated other comprehensive income, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on equity as determined using annualized net earnings and average total shareholders' equity.
  
  
• Adjusted return on equity excluding foreign currency remeasurement is annualized adjusted earnings divided by average shareholders' equity, excluding both accumulated other comprehensive income and the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The Company considers adjusted return on equity excluding foreign currency remeasurement important because it excludes both accumulated other comprehensive income and the cumulative foreign currency remeasurement gains/losses, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity excluding foreign currency remeasurement is return on equity as determined using annualized net earnings and average total shareholders' equity.
  
  
• Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign currency exchange risks. These amortized hedge costs/income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the contractual term of the derivative. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income.
  
  
• Adjusted book value is the U.S. GAAP book value (representing total shareholders' equity), less accumulated other comprehensive income as recorded on the U.S. GAAP balance sheet. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude accumulated other comprehensive income, which fluctuates due to market movements that are outside management's control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively.
  
  
• Adjusted book value excluding foreign currency remeasurement is the U.S. GAAP book value (representing total shareholders' equity), less accumulated other comprehensive income as recorded on the U.S. GAAP balance sheet and excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. Adjusted book value excluding foreign currency remeasurement per common share is adjusted book value excluding foreign currency remeasurement at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value excluding foreign currency remeasurement and adjusted book value excluding foreign currency remeasurement per common share important as they exclude both accumulated other comprehensive income and the cumulative foreign currency remeasurement gains/losses, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measures for adjusted book value excluding foreign currency remeasurement and adjusted book value excluding foreign currency remeasurement per common share are total book value and total book value per common share, respectively.
  
  
• Adjusted net investment income is net investment income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, and ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and losses to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company's investments and related hedging strategies. The most comparable U.S. GAAP financial measure for adjusted net investment income is net investment income.
  
  
• Adjusted net investment gains and losses are net investment gains and losses adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are both reclassified to net investment income, and iii) the impact of interest from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management's control, while excluding the components that are within management's control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses.

RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
THREE MONTHS ENDED SEPTEMBER 30,		2026		2025		% Change
Net earnings		$      303		$   1,639		(81.5) %
Items impacting net earnings:
Adjusted net investment (gains) losses		1,026		(335)
Other and non-recurring (income) loss		—		1
Income tax (benefit) expense on items excluded from adjusted earnings		(166)		22
Tax valuation allowance		51		—
Adjusted earnings		1,214		1,327		(8.5) %
Current period foreign currency impact1		14		N/A
Adjusted earnings excluding current period foreign      currency impact2		$   1,228		$   1,327		(7.5) %
Net earnings per diluted share		$     0.61		$     3.08		(80.2) %
Items impacting net earnings:
Adjusted net investment (gains) losses		2.06		(0.63)
Other and non-recurring (income) loss		—		—
Income tax (benefit) expense on items excluded from adjusted earnings		(0.33)		0.04
Tax valuation allowance		0.10		—
Adjusted earnings per diluted share		2.43		2.49		(2.4) %
Current period foreign currency impact1		0.03		N/A
Adjusted earnings per diluted share excluding      current period foreign currency impact2		$     2.46		$     2.49		(1.2) %

1	Prior period foreign currency impact reflected as "N/A" to isolate change for current period only.
2	Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.

 

RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
NINE MONTHS ENDED SEPTEMBER 30,		2026		2025		% Change
Net earnings		$ 2,147		$ 2,267		(5.3) %
Items impacting net earnings:
Adjusted net investment (gains) losses		1,029		966
Other and non-recurring (income) loss		—		54
Income tax (benefit) expense on items excluded from adjusted earnings		(229)		(97)
Tax valuation allowance		51		—
Adjusted earnings		2,998		3,190		(6.0) %
Current period foreign currency impact1		49		N/A
Adjusted earnings excluding current period foreign      currency impact2		$ 3,047		$ 3,190		(4.5) %
Net earnings per diluted share		$   4.24		$   4.21		0.7 %
Items impacting net earnings:
Adjusted net investment (gains) losses		2.03		1.79
Other and non-recurring (income) loss		—		0.10
Income tax (benefit) expense on items excluded from adjusted earnings		(0.45)		(0.18)
Tax valuation allowance		0.10		—
Adjusted earnings per diluted share		5.92		5.92		— %
Current period foreign currency impact1		0.10		N/A
Adjusted earnings per diluted share excluding      current period foreign currency impact2		$   6.02		$   5.92		1.7 %

1	Prior period foreign currency impact reflected as "N/A" to isolate change for current period only.
2	Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.

 

RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED SEPTEMBER 30,		2026		2025		% Change
Net investment (gains) losses		$   1,072		$     (275)		489.8 %
Items impacting net investment (gains) losses:
Amortized hedge costs		(11)		(13)
Amortized hedge income		14		20
Net interest income (expense) from derivatives associated      with certain investment strategies		(49)		(66)
Impact of interest from derivatives associated with      notes payable1		—		(1)
Adjusted net investment (gains) losses		$   1,026		$     (335)		406.3 %

1	Amounts are included with interest expenses that are a component of adjusted expenses.

 

RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED SEPTEMBER 30,		2026		2025		% Change
Net investment income		$   1,003		$   1,067		(6.0) %
Items impacting net investment income:
Amortized hedge costs		(11)		(13)
Amortized hedge income		14		20
Net interest income (expense) from derivatives associated      with certain investment strategies		(49)		(66)
Adjusted net investment income		$      957		$   1,008		(5.1) %

 

RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)
NINE MONTHS ENDED SEPTEMBER 30,		2026		2025		% Change
Net investment (gains) losses		$ 1,176		$ 1,109		6.0 %
Items impacting net investment (gains) losses:
Amortized hedge costs		(38)		(31)
Amortized hedge income		51		80
Net interest income (expense) from derivatives associated      with certain investment strategies		(160)		(195)
Impact of interest from derivatives associated with      notes payable1		—		3
Adjusted net investment (gains) losses		$ 1,029		$   966		6.5 %

1	Amounts are included with interest expenses that are a component of adjusted expenses.

 

RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED – IN MILLIONS)
NINE MONTHS ENDED SEPTEMBER 30,		2026		2025		% Change
Net investment income		$ 2,943		$ 3,103		(5.2) %
Items impacting net investment income:
Amortized hedge costs		(38)		(31)
Amortized hedge income		51		80
Net interest income (expense) from derivatives associated      with certain investment strategies		(160)		(195)
Adjusted net investment income		$ 2,796		$ 2,957		(5.4) %

 

RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE
(EXCLUDING FOREIGN CURRENCY REMEASUREMENT)
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
SEPTEMBER 30,		2026		2025		% Change
U.S. GAAP book value		$  29,283		$  28,688
Less:
Unrealized foreign currency translation gains (losses)		(4,925)		(4,504)
Unrealized gains (losses) on securities and derivatives		(5,011)		(1,717)
Effect of changes in discount rate assumptions		12,264		6,832
Pension liability adjustment		85		42
Total AOCI		2,413		653
Adjusted book value		$  26,870		$  28,035
Less:
Foreign currency remeasurement gains (losses)		6,681		5,157
Adjusted book value excluding foreign currency remeasurement		$  20,189		$  22,878
Number of outstanding shares at end of period (000)		495,651		525,710
U.S. GAAP book value per common share		$   59.08		$   54.57		8.3 %
Less:
Unrealized foreign currency translation gains (losses) per      common share		(9.94)		(8.57)
Unrealized gains (losses) on securities and derivatives per      common share		(10.11)		(3.27)
Effect of changes in discount rate assumptions      per common share		24.74		13.00
Pension liability adjustment per common share		0.17		0.08
Total AOCI per common share		4.87		1.24
Adjusted book value per common share		$   54.21		$   53.33		1.7 %
Less:
Foreign currency remeasurement gains (losses) per common      share		13.48		9.81
Adjusted book value excluding foreign currency remeasurement per      common share		$   40.73		$   43.52		(6.4) %

 

RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)
THREE MONTHS ENDED SEPTEMBER 30,		2026		2025
U.S. GAAP ROE - Net earnings1		4.1 %		23.5 %
Impact of excluding unrealized foreign currency translation gains (losses)		(0.8)		(5.4)
Impact of excluding unrealized gains (losses) on securities and derivatives		(0.6)		(2.2)
Impact of excluding effect of changes in discount rate assumptions		1.8		7.7
Impact of excluding pension liability adjustment		—		0.1
Impact of excluding AOCI		0.4		0.1
U.S. GAAP ROE - less AOCI		4.4		23.5
Differences between adjusted earnings and net earnings2		13.4		(4.5)
Adjusted ROE - reported		17.8		19.1
Impact of excluding gains (losses) associated with foreign currency remeasurement3		5.9		4.0
Adjusted ROE, excluding foreign currency remeasurement		23.7		23.1

1	U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
2	See separate reconciliation of net earnings to adjusted earnings.
3	Impact of gains/losses associated with foreign currency remeasurement is calculated by excluding the cumulative (beginning January 1, 2021) foreign  currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The impact is the difference of adjusted return on equity - reported compared with adjusted return on equity, excluding from shareholders' equity, gains/losses associated with foreign currency remeasurement.

 

RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)
NINE MONTHS ENDED SEPTEMBER 30,		2026		2025
U.S. GAAP ROE - Net earnings1		9.7 %		11.0 %
Impact of excluding unrealized foreign currency translation gains (losses)		(1.8)		(1.6)
Impact of excluding unrealized gains (losses) on securities and derivatives		(1.2)		(0.3)
Impact of excluding effect of changes in discount rate assumptions		3.7		1.5
Impact of excluding pension liability adjustment		—		—
Impact of excluding AOCI		0.7		(0.4)
U.S. GAAP ROE - less AOCI		10.4		10.6
Differences between adjusted earnings and net earnings2		4.1		4.3
Adjusted ROE - reported		14.6		14.9
Impact of excluding gains (losses) associated with foreign currency      remeasurement3		4.3		3.5
Adjusted ROE, excluding foreign currency remeasurement		18.9		18.4

1	U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
2	See separate reconciliation of net earnings to adjusted earnings.
3	Impact of gains/losses associated with foreign currency remeasurement is calculated by excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The impact is the difference of adjusted return on equity - reported compared with adjusted return on equity, excluding from shareholders' equity, gains/losses associated with foreign currency remeasurement.

 

EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES, UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, 2026		Including Currency Changes		Excluding Currency Changes2
Net earned premiums3		(2.0) %		2.1 %
Adjusted net investment income		(5.1)		(3.3)
Total benefits and expenses		0.9		6.0
Adjusted earnings		(8.5)		(7.5)
Adjusted earnings per diluted share		(2.4)		(1.2)

1	Refer to previously defined adjusted earnings, adjusted earnings per diluted share, and adjusted net investment income.
2	Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.
3	Net of reinsurance

 

EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES, UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, 2026		Including Currency Changes		Excluding Currency Changes2
Net earned premiums3		(3.5) %		0.1 %
Adjusted net investment income		(5.4)		(4.0)
Total benefits and expenses		(2.9)		0.9
Adjusted earnings		(6.0)		(4.5)
Adjusted earnings per diluted share		0.0		1.7

1	Refer to previously defined adjusted earnings and adjusted earnings per diluted share, and adjusted net investment income.
2	Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.
3	Net of reinsurance

GLOSSARY OF OPERATIONAL MEASURES

The Company defines the operational measures included in this document as follows:

• Operating ratios are used to evaluate the Company's financial condition and profitability. Examples include: (1) Ratios to total adjusted revenues, which present expenses as percentage of total revenues and (2) Ratios to total premium, including benefit ratio. Operating ratios include: Benefit Ratio and Expense Ratio.
  
  
• New annualized premium sales are sometimes referred to as new sales or sales. An operating measure that is not reflected on the Company's financial statements. New annualized premium sales generally represent annual premiums on policies and riders the Company sold and incremental increases from policy conversions that would be collected over a 12-month period assuming the policies remain in force for that entire period. For Aflac Japan, new annualized premium sales are determined by applications submitted during the reporting period. For Aflac U.S., new annualized premium sales are determined by applications that are issued during the reporting period. Policy conversions are defined as the positive difference in the annualized premium when a policy upgrades in the current reporting period. The Company believes that this metric is a key indicator of the Company's future source of earnings.
  
  
• Premium persistency is the percentage of premiums remaining in force at the end of a period, usually one year, and presented on a trailing 12-month average basis. For example, 95% persistency would mean that 95% of the premiums in force at the beginning of a period are still in force at the end of the period. The Company believes that this metric is a key driver of in force levels, which is a key measure of the size of the Company's business and future sources of earnings.

FORWARD-LOOKING INFORMATION 

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. Aflac Incorporated (the Parent Company) and its subsidiaries (collectively with the Parent Company, the Company) desire to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by Company officials in communications with the financial community and contained in documents filed with or furnished to the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as "expect," "anticipate," "believe," "goal," "objective," "strategy," "may," "should," "estimate," "intend," "project," "future," "will," "assume," "potential," "target," "outlook," "continue" or similar words as well as specific projections of future results, generally qualify as forward-looking. The Company undertakes no obligation to update such forward-looking statements, except as may be required by law.

The Company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:

• difficult conditions in global capital markets and the economy, including inflation
• defaults and credit downgrades of investments
• global fluctuations in interest rates and exposure to significant interest rate risk
• concentration of business in Japan
• limited availability of acceptable Japanese yen-denominated investments
• foreign currency fluctuations in the yen/dollar exchange rate
• differing interpretations applied to investment valuations
• significant valuation judgments in determination of expected credit losses recorded on the Company's investments
• decreases in the Company's financial strength or debt ratings
• decline in creditworthiness of other financial institutions
• the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners
• deviations in actual experience from pricing and reserving assumptions
• ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives
• interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems, and uncertainty regarding the impact of the incident involving unauthorized access to the Company's network in June 2025
• subsidiaries' ability to pay dividends to the Parent Company
• inherent limitations to risk management policies and procedures
• operational risks of third-party vendors
• tax rates applicable to the Company may change
• failure to comply with restrictions on policyholder privacy and information security
• extensive regulation and changes in law or regulation by governmental authorities
• competitive environment and ability to anticipate and respond to market trends
• catastrophic events, including, but not limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events
• ability to protect the Aflac brand and the Company's reputation
• ability to effectively manage key executive succession
• changes in accounting standards
• level and outcome of litigation or regulatory inquiries
• allegations or determinations of worker misclassification in the United States

Analyst and investor contact - David A. Young, 706.596.3264; 800.235.2667 or aflacir@aflac.com
Media contact - Ines Gutzmer, 762.207.7601 or igutzmer@aflac.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/aflac-incorporated-announces-third-quarter-2026-results-declares-fourth-quarter-dividend-302929781.html

SOURCE Aflac Incorporated

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Aflac's third-quarter 2026 earnings?

Aflac reported net earnings of $303 million, or $0.61 per diluted share, compared with $1.639 billion, or $3.08 per diluted share, a year earlier. Adjusted earnings were $1.214 billion, or $2.43 per diluted share, down 8.5% and 2.4%, respectively.

When will Aflac pay its fourth-quarter 2026 dividend?

Aflac will pay its $0.61 per-share dividend on December 1, 2026, to shareholders of record at the close of business on November 18, 2026. The declaration marks 44 consecutive years of dividend increases.

How did the yen affect Aflac's third-quarter and nine-month 2026 adjusted earnings?

The weaker yen reduced adjusted earnings per share by $0.03 in the third quarter and $0.10 in the first nine months. The average yen/dollar exchange rate was 158.49 for the quarter, 6.8% weaker than a year earlier. Excluding the currency impact, nine-month adjusted diluted earnings per share increased 1.7% to $6.02.

What reinsurance transaction did Aflac Japan complete in the third quarter of 2026?

Aflac Japan ceded approximately ¥500 billion of cancer insurance reserves, measured on an FSA basis, to Aflac Re Bermuda. The internal reinsurance transaction took effect during the third quarter. Aflac Re Bermuda is consolidated within Corporate and Other.