Aflac Reports Decline in Net Earnings and Revenues in Q3 2024 Amid Challenging Environment

Aflac Incorporated reported significant financial changes in its third quarter and nine-month results for 2024, reflecting a challenging environment. For Q3 2024, net earned premiums totaled $3,328 million, a decrease from $3,476 million in Q3 2023. Total revenues fell sharply to $2,949 million from $4,950 million year-over-year. The company experienced a substantial decline in net earnings, reporting a loss of $93 million, compared to a profit of $1,569 million in the same quarter of the previous year. This resulted in a basic net earnings per share of $(0.17), down from $2.65.

For the nine months ended September 30, 2024, net earned premiums were $10,109 million, down from $10,737 million in 2023. Total revenues for this period also decreased to $13,524 million from $14,923 million. Net earnings for the nine months were $3,541 million, a decline from $4,391 million in 2023, leading to a basic net earnings per share of $6.26, down from $7.31.

The decline in earnings was primarily attributed to pretax net investment losses of $1.4 billion in Q3 2024, contrasting with pretax net investment gains of $423 million in Q3 2023. The losses included an increase in credit loss allowances and significant losses from derivatives and foreign currency. Despite these challenges, Aflac declared cash dividends of $0.50 per share in Q3 2024, up from $0.42 in Q3 2023.

Aflac Japan, a key segment, reported adjusted revenues of $2,378 million for Q3 2024, down from $2,660 million in the same period of 2023. However, pretax adjusted earnings for Aflac Japan increased to $1,073 million, up from $869 million, driven by a decrease in total benefits and claims. In contrast, Aflac U.S. saw a slight increase in net earned premiums to $1,459 million for Q3 2024, compared to $1,419 million in Q3 2023.

As of September 30, 2024, Aflac's total assets increased to $128,442 million from $126,724 million at the end of 2023, with total investments and cash amounting to $115,601 million. Shareholders' equity rose to $24,830 million, up from $21,985 million at the end of 2023. The company also reported a significant increase in cash and cash equivalents, reaching $5,612 million.

Strategically, Aflac has focused on enhancing its capital position, with plans to maintain higher liquidity levels. The company has also engaged in share repurchase activities, buying back $2.1 billion worth of shares in the first nine months of 2024. Additionally, Aflac Japan's new life insurance product, Tsumitasu, launched in June 2024, contributed to new annualized premium sales growth.