Aflac stock weighs portfolio losses against stronger U.S. results

Published on 11/05/2026 at 12:49 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Aflac stock faces a mixed third-quarter picture after portfolio repositioning losses cut reported profit. U.S. underwriting metrics improved, while Japan earnings weakened.

Mixed quarter, stronger U.S. execution

Portfolio repositioning losses sharply reduced reported earnings in the third quarter.
Adjusted earnings eased, while the U.S. business delivered higher premiums and pretax profit.
Aflac raised its dividend for a 44th consecutive year and will discuss the results with investors.

AFLAC Inc., US0010551028, Illustration mit AI erstellt.

Aflac Incorporated reported a sharp decline in third-quarter reported profit on Wednesday, November 4, as losses from repositioning its investment portfolio outweighed steady insurance operations. The insurer's release, published by PR Newswire, put net earnings at 303 million US dollars, down 81.5 percent from the year-earlier quarter. Aflac stock traded at 112.93 euros on Lang & Schwarz at 12:44 CET on Thursday, November 5, 2026.

Investment losses drive reported decline

Total revenue fell 31.0 percent to 3.271 billion US dollars. The main drag came from net investment losses of 1.072 billion US dollars, compared with a 275 million US dollar gain a year earlier. The losses included sales and redemption losses, derivative and foreign-currency effects, expected credit losses and impairments.

The reported figures also included a 51 million US dollar tax capital-loss valuation allowance. Diluted earnings per share fell to 0.61 US dollars from 3.08 US dollars. The comparison is therefore heavily influenced by investment-market and portfolio effects rather than only by premium generation.

Adjusted earnings hold up better

Aflac's adjusted earnings declined 8.5 percent to 1.214 billion US dollars, while adjusted diluted earnings per share decreased 2.4 percent to 2.43 US dollars. The adjusted result benefited from 453 million US dollars of reserve remeasurement gains. Excluding the current-period foreign-currency impact, adjusted diluted earnings per share were 2.46 US dollars, down 1.2 percent from the prior-year quarter.

The U.S. operation provided the strongest operating contribution. Net earned premiums increased 3.3 percent to 1.544 billion US dollars, adjusted revenue rose 3.1 percent to 1.781 billion US dollars and pretax adjusted earnings advanced 31.5 percent to 493 million US dollars. The benefit ratio improved to 40.7 percent from 45.6 percent, while the pretax adjusted margin widened to 27.7 percent from 21.7 percent.

Japan remains the weaker segment

Aflac Japan reported net earned premiums of 240.3 billion yen, down 2.0 percent year over year. Pretax adjusted earnings fell 15.2 percent in yen terms to 152.3 billion yen, while the margin narrowed to 44.4 percent from 52.2 percent. The company attributed the pressure mainly to lower reserve remeasurement gains after actuarial assumption changes, as well as reinsurance effects and products reaching paid-up status.

In dollar terms, Japan's pretax adjusted earnings declined 21.0 percent to 961 million US dollars. The average yen-dollar exchange rate was weaker than a year earlier, reducing adjusted earnings per share by 0.03 US dollars.

Capital return remains a support

Aflac returned 1.1 billion US dollars to shareholders during the quarter through 804 million US dollars of share repurchases and 305 million US dollars of dividends. The board declared a fourth-quarter dividend of 0.61 US dollars per share, payable December 1 to shareholders of record on November 18. The decision marked the company's 44th consecutive annual dividend increase.

Management said it would continue to focus on profitable growth and selective capital deployment. Aflac also said Aflac Japan had ceded approximately 500 billion yen of cancer-insurance reserves to Aflac Re Bermuda, highlighting the importance of reinsurance and balance-sheet positioning in the group's earnings profile.

Investors can follow the real-time quote of Aflac stock alongside the company's operating updates. Aflac said its third-quarter earnings conference call would take place on Thursday, November 5, at 8:00 a.m. Eastern Time.

Investors can follow the broader U.S. market through the S&P 500.

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