Results
Aflac Incorporated Announces Third Quarter 2026 Results,
Declares Fourth Quarter Dividend
COLUMBUS, Ga. - November 4, 2026 - 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.
1Adjusted 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.
3Aflac 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
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.
7Adjusted 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, co mpared 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
8In 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.
5Adjusted 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.
6Pretax 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. 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.
2Pretax 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
For the quarter, total adjusted revenues increased 5.0% to $360 million.
4Pretax 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.
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.
Note: Tables within this document may not foot due to rounding.
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.
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.
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.
1 Amounts are included with interest expenses that are a component of adjusted expenses.
1 Amounts are included with interest expenses that are a component of adjusted expenses.
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.
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.
2 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.