Aflac Incorporated reported second quarter 2026 adjusted diluted earnings of $1.75 per share, missing the analyst estimate of $1.77. Total revenue reached $4.12 billion, also falling short of the expected $4.19 billion. Performance was significantly impacted by a 9.3% year-over-year weakening of the Japanese yen, which created a $0.05 per share headwind for adjusted earnings. Despite the currency pressure, the company maintained strong capital returns and expanded its profit margins in the Japan segment.
Key Highlights
- Aflac Japan's dollar-denominated adjusted revenues fell 12.6% to $2.16 billion, primarily due to foreign currency translation and the impact of external reinsurance transactions.
- The company returned $1.3 billion to shareholders during the quarter, consisting of $983 million in share repurchases and $309 million in dividends.
- Aflac U.S. net earned premiums grew 2.3% to $1.5 billion, supported by a 2.6% increase in new sales led by voluntary group benefits and network dental/vision products.
- Japan's pretax adjusted profit margin expanded to 34.3% from 32.0% last year, driven by favorable benefit experience despite a 5.6% decline in new sales compared to a high prior-year baseline.