新闻稿
Aflac公司宣布第三季度业绩,
报告显示第三季度净亏损达9300万美元，
宣布第四季度现金股息
哥伦布，乔治亚州 - 2024年10月30日 - 纽交所上市公司(纽交所：AFL) 阿福乐公司今日公布了其第三季度业绩。
2024年第三季度总收入为29亿美元，相比于2023年第三季度的50亿美元。净损失为9300万美元，或每股摊薄损失0.17美元，相比于前一年的16亿美元盈利，每股摊薄盈利2.64美元，主要是由于该季度日元升值12.9％导致外汇相关损失增加所致。
2024年第三季度的净亏损包括14亿美元的净投资亏损，每股稀释股份为2.51美元，与一年前的净投资收益42300万美元，每股稀释股份为0.71美元相比。这些净投资亏损是由某些衍生品和外汇活动的14亿美元净亏损驱动的；从销售和赎回中获得10500万美元的净收益；从股票公允价值增加中获得1300万美元的收益；信贷损失增加8600万美元；由于拟出售具有未实现损失的投资而导致5500万美元的减值。
第三季度调整后的盈利为12亿美元，2023年第三季度为11亿美元，反映出 Equinor的增加 10.6%。每股摊薄调整后的盈利增长了17.4%，达到本季度的2.16美元。变量投资收益低于2700万美元 公司的长期回报预期。较弱的日元/美元汇率对调整后的每股盈利产生了0.03美元的负面影响。
2024年第三季度日元/美元的平均汇率为147.95，比2023年第三季度的平均汇率144.97低2.0％。头九个月的平均汇率为150.60，比一年前的138.38的汇率弱8.1％。
截至2024年9月30日，股东权益为248亿美元，每股44.60美元，而在2023年9月30日为227亿美元，每股38.63美元。第三季末的股东权益中包括对保险准备金折现率假设变化影响的累计减少为6700万美元，而在2023年9月30日为对应的累计减少为8.66亿美元，以及投资证券和衍生品的净未实现收益为53700万美元，而在2023年9月30日为净未实现损失为42700万美元。第三季末的股东权益还包括41亿美元的未实现外币翻译损失，相较于2023年9月30日的45亿美元的未实现外币翻译损失。第三季度的平均股东权益年化回报率为（1.5）%。
2024年前九个月，总收入下降了9.4%，至135亿美元，而2023年前九个月为149亿美元。净收益为35亿美元，每股稀释后6.23美元，与2023年前九个月的44亿美元，每股稀释后7.28美元相比。2024年前九个月的调整后收益为32亿美元，每股稀释后5.64美元，而2023年为30亿美元，每股稀释后4.97美元。除去由于日元/美元汇率贬值带来每股0.17美元的负面影响外，2024年前九个月调整后每股稀释收益增长了16.9%，达到5.81美元。
除其他综合收益外的股东权益（或调整后账面价值*）为285亿美元，在2024年9月30日为每股51.21美元，相比于2023年9月30日的284亿美元，每股48.44美元。第三季度调整后净资产回报率（不包括外币影响*）为17.0%。
AFLAC 日本
按日元计算，Aflac日本的净赚保费为2554亿日元，比去年同期下降10.5%，主要是由于递延利润责任的变化，包括与精算假设更新相关的影响，前一年的内部癌症再保险交易，以及限期付款保单达到已付清的地位。调整后的净投资收益增长0.1%，达到990亿日元。以日元计算的总调整后收入下降了7.8%，达到3553亿日元。本季度以日元计算的税前调整收益按报告基础增长了25.5%，达到1587亿日元，主要是由于本季度福利和支出降低，部分抵消了较少的净赚保费。除货币影响外，本季度的税前调整收益增长了24.0%。与一年前的32.8%相比，日本部门的税前调整利润率提高到44.7%，主要是由于解锁假设带来的397亿日元的较高重新计量盈利。
头九个月，以日元计的净赚保费为7926亿日元，比去年同期低7.4%。调整后净投资收入增长15.2%，达到3085亿日元。以日元计的总调整收入下降2.0%，为1.1万亿日元。税前调整后收益为4138亿日元，比去年同期高20.3%。
按美元计算，第三季度净赚保费下降了13.4%，至17亿美元。调整后的净投资收入下降了2.5%，至66200万美元。总调整后收入下降了10.6%，至24亿美元。税前调整后收益增加了23.5%，至11亿美元。
前九个月，以美元计算的净赚保费为52亿美元，比一年前下降了15.6%。调整后的净投资收入增加了5.7%，达到20亿美元。总调整后收入下降了10.6%，至73亿美元。税前调整后收益为27亿美元，比一年前高出10.8%。
就这个季度而言，总新签年度化保费销售额（销售额）增长了12.3%，达到175亿日元，或11700万美元，主要反映了新一扇板块产品的销售。在前九个月，总新销售增长了4.4%，达到469亿日元，或30900万美元。
美国AFLAC
全球利润来自美国的Aflac公司在第三季度达到了15亿美元，比去年同期增长了2.8%，这反映了销售增加和续存能力持续改善。调整后的净投资收入增长了0.5%，达到了21000万美元。总调整后收入增长了1.4%，达到了17亿美元。税前调整利润为35000万美元，比一年前下降了26.8%，主要是由于较低的重新计量收益和更高的实际索赔产生了更高的福利费用。因此，美国部门的税前调整利润率为20.8%，而一年前为28.8%。
头九个月，净赚保费增加了2.7%，达到44亿美元。调整后的净投资收入增加了4.1%，达到63400万美元。总调整后收入增长了1.7%，达到51亿美元。税前调整后收益为11亿美元，比一年前低了9.2%。
Aflac美国销售额在当季增长了5.5%，达到37900万美元，主要由优质团体寿险、缺勤管理和残疾产品以及癌症保险推动。今年头九个月，总新销售额增长了1.0%，达到10亿美元。
企业和其他
就本季度而言，总调整后收入增长了95.7％，达到了22500万美元，与去年同期相比主要是由于累计净赚取保费和调整后净投资收入的增加，所有这些反映了2023年第四季度再保交易的影响。净投资收入也受益于利率和资产余额的提高，以及持续较低的税收投资额。总福利和调整后支出增加了4700万美元，与去年同期相比，主要是由于再保业务的增加。税前调整后盈利为1500万美元，而一年前为4900万美元的亏损。
前九个月，调整后的总收入增加了88.3%，达到72300万美元。税前调整后盈利为3600万美元，而一年前为10700万美元的亏损。
股息和资本回报给股东
董事会宣布第四季度每股派息为0.50美元，将于2024年12月2日支付给截至2024年11月20日收盘时持股的股东。
在第三季度，Aflac Incorporated投入50000万美元资本回购其490万股普通股。截至2024年9月底，公司还有5430万股获得授权用于回购。
展望
对公司的业绩，Aflac股份有限公司董事长兼首席执行官Daniel P. Amos表示：“我很高兴看到Aflac在本季度和前9个月取得了非常 solvable 的调整后收益。我们一直积极致力于在美国和日本通过新产品和分销策略实现盈利增长。我们相信我们的策略将继续为股东创造长期价值。”
"Looking at our operations in Japan, we have continued to focus on third sector products as well as introducing these policies to new and younger customers. While still in the very early stages, we were pleased with the initial introduction of our latest life insurance product that offers an asset formation component and a nursing care option. This drove the 12.3% sales increase for the quarter. This approach is in line with our strategy of connecting with younger customers to provide them with integrated financial protection and services through different life stages.
"In the U.S., we achieved 5.5% sales growth for the quarter, which is a welcome result as we enter the fourth quarter, which tends to be the heaviest enrollment period. At the same time, we continue to focus on more profitable growth and are seeing improvement in net earned premiums. We continue our prudent approach to expense management and maintaining a strong pretax margin.
"We continue to generate strong capital and cash flows while maintaining our commitment to prudent liquidity and capital management. We have been very pleased with our investments, which have continued to produce strong net investment income with minimal losses and impairments. I am very pleased that 2024 marks 42 consecutive years of dividend increases, a record we treasure. We remain committed to extending this record, supported by our financial strength. In the quarter, we repurchased $500 million in shares and intend to continue our balanced approach of investing in growth and driving long-term operating efficiencies."
*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 nearly 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. 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 18 consecutive years (2024), Fortune’s World’s Most Admired Companies for 23 years (2024) and Bloomberg’s Gender-Equality Index for the fourth consecutive year (2023). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021 and has been included in the Dow Jones Sustainability North America Index (2023) for 10 years. 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. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under “Sustainability.”
1 LIMRA 2023 U.S. Supplemental Health Insurance Total Market Report
A copy of Aflac’s financial supplement for the quarter can be found on the “Investors” page at aflac.com.
Aflac Incorporated will webcast its quarterly conference call via the “Investors” page of aflac.com at 8:00 a.m. (ET) on October 31, 2024.
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, | 2024 | 2023 | % Change | |||||||||||||||||
| Total revenues | $ | 2,949 | $ | 4,950 | (40.4) | % | ||||||||||||||
| Benefits and claims, net | 1,595 | 1,860 | (14.2) | |||||||||||||||||
| Total acquisition and operating expenses | 1,262 | 1,285 | (1.8) | |||||||||||||||||
| Earnings before income taxes | 92 | 1,805 | (94.9) | |||||||||||||||||
| Income taxes | 185 | 236 | ||||||||||||||||||
| Net earnings | $ | (93) | $ | 1,569 | (105.9) | % | ||||||||||||||
| Net earnings per share – basic | $ | (0.17) | $ | 2.65 | (106.4) | % | ||||||||||||||
| Net earnings per share – diluted | (0.17) | 2.64 | (106.4) | |||||||||||||||||
| Shares used to compute earnings per share (000): | ||||||||||||||||||||
| Basic | 557,899 | 591,246 | (5.6) | % | ||||||||||||||||
| Diluted | 560,414 | 593,596 | (5.6) | |||||||||||||||||
| Dividends paid per share | $ | 0.50 | $ | 0.42 | 19.0 | % | ||||||||||||||
| AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT | ||||||||||||||||||||
| (UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS) | ||||||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | 2024 | 2023 | % Change | |||||||||||||||||
| Total revenues | $ | 13,524 | $ | 14,923 | (9.4) | % | ||||||||||||||
| Benefits and claims, net | 5,527 | 6,108 | (9.5) | |||||||||||||||||
| Total acquisition and operating expenses | 3,715 | 3,843 | (3.3) | |||||||||||||||||
| Earnings before income taxes | 4,282 | 4,972 | (13.9) | |||||||||||||||||
| Income taxes | 741 | 581 | ||||||||||||||||||
| Net earnings | $ | 3,541 | $ | 4,391 | (19.4) | % | ||||||||||||||
| Net earnings per share – basic | $ | 6.26 | $ | 7.31 | (14.4) | % | ||||||||||||||
| Net earnings per share – diluted | 6.23 | 7.28 | (14.4) | |||||||||||||||||
| Shares used to compute earnings per share (000): | ||||||||||||||||||||
| Basic | 565,757 | 600,991 | (5.9) | % | ||||||||||||||||
| Diluted | 568,216 | 603,419 | (5.8) | |||||||||||||||||
| Dividends paid per share | $ | 1.50 | $ | 1.26 | 19.0 | % | ||||||||||||||
| AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET | ||||||||||||||||||||
| (UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AMOUNTS) | ||||||||||||||||||||
| SEPTEMBER 30, | 2024 | 2023 | % Change | |||||||||||||||||
| Assets: | ||||||||||||||||||||
| Total investments and cash | $ | 115,601 | $ | 111,306 | 3.9 | % | ||||||||||||||
| Deferred policy acquisition costs | 9,232 | 8,771 | 5.3 | |||||||||||||||||
| Other assets | 3,609 | 5,034 | (28.3) | |||||||||||||||||
| Total assets | $ | 128,442 | $ | 125,111 | 2.7 | % | ||||||||||||||
| Liabilities and shareholders’ equity: | ||||||||||||||||||||
| Policy liabilities | $ | 87,554 | $ | 86,028 | 1.8 | % | ||||||||||||||
| Notes payable and lease obligations | 7,978 | 6,961 | 14.6 | |||||||||||||||||
| Other liabilities | 8,080 | 9,453 | (14.5) | |||||||||||||||||
| Shareholders’ equity | 24,830 | 22,669 | 9.5 | |||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 128,442 | $ | 125,111 | 2.7 | % | ||||||||||||||
| Shares outstanding at end of period (000) | 556,717 | 586,897 | (5.1) | % | ||||||||||||||||
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 yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while 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 yen and never converted into dollars but translated into 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 currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency 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 adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income (AOCI). 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 AOCI, 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 average equity (ROE) as determined using net earnings and average total shareholders’ equity.
•Adjusted return on equity excluding foreign currency impact is adjusted earnings excluding the current period foreign currency impact divided by average shareholders’ equity, excluding AOCI. The Company considers adjusted return on equity excluding foreign currency impact important as it excludes changes in foreign currency and components of AOCI, 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 impact is return on average equity (ROE) as determined using 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 exchange risks in the Company's Japan segment or in Corporate and other. 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 AOCI 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 AOCI, 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 including unrealized foreign currency translation gains and losses is adjusted book value plus unrealized foreign currency translation gains and losses. Adjusted book value including unrealized foreign currency translation gains and losses per common share is adjusted book value plus unrealized foreign currency translation gains and losses at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value including unrealized foreign currency translation gains and losses, and its related per share financial measure, important as they exclude certain components of AOCI, which fluctuate due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measures for adjusted book value including unrealized foreign currency translation gains and losses and adjusted book value including unrealized foreign currency translation gains and losses 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, | 2024 | 2023 | % Change | |||||||||||||||||
| Net earnings | $ | (93) | $ | 1,569 | (105.9) | % | ||||||||||||||
| Items impacting net earnings: | ||||||||||||||||||||
| Adjusted net investment (gains) losses | 1,347 | (504) | ||||||||||||||||||
Other and non-recurring (income) loss | — | (3) | ||||||||||||||||||
| Income tax (benefit) expense on items excluded from adjusted earnings | (43) | 33 | ||||||||||||||||||
| Adjusted earnings | 1,211 | 1,095 | 10.6 | % | ||||||||||||||||
Current period foreign currency impact 1 | 16 | N/A | ||||||||||||||||||
Adjusted earnings excluding current period foreign currency impact 2 | $ | 1,228 | $ | 1,095 | 12.1 | % | ||||||||||||||
| Net earnings per diluted share | $ | (0.17) | $ | 2.64 | (106.4) | % | ||||||||||||||
| Items impacting net earnings: | ||||||||||||||||||||
| Adjusted net investment (gains) losses | 2.40 | (0.85) | ||||||||||||||||||
Other and non-recurring (income) loss | — | (0.01) | ||||||||||||||||||
| Income tax (benefit) expense on items excluded from adjusted earnings | (0.08) | 0.06 | ||||||||||||||||||
| Adjusted earnings per diluted share | 2.16 | 1.84 | 17.4 | % | ||||||||||||||||
Current period foreign currency impact 1 | 0.03 | N/A | ||||||||||||||||||
Adjusted earnings per diluted share excluding current period foreign currency impact 2 | $ | 2.19 | $ | 1.84 | 19.0 | % | ||||||||||||||
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, | 2024 | 2023 | % Change | |||||||||||||||||
| Net earnings | $ | 3,541 | $ | 4,391 | (19.4) | % | ||||||||||||||
| Items impacting net earnings: | ||||||||||||||||||||
| Adjusted net investment (gains) losses | (411) | (1,363) | ||||||||||||||||||
Other and non-recurring (income) loss | 1 | (38) | ||||||||||||||||||
| Income tax (benefit) expense on items excluded from adjusted earnings | 76 | 12 | ||||||||||||||||||
| Adjusted earnings | 3,207 | 3,001 | 6.9 | % | ||||||||||||||||
Current period foreign currency impact 1 | 97 | N/A | ||||||||||||||||||
Adjusted earnings excluding current period foreign currency impact 2 | $ | 3,304 | $ | 3,001 | 10.1 | % | ||||||||||||||
| Net earnings per diluted share | $ | 6.23 | $ | 7.28 | (14.4) | % | ||||||||||||||
| Items impacting net earnings: | ||||||||||||||||||||
| Adjusted net investment (gains) losses | (0.72) | (2.26) | ||||||||||||||||||
Other and non-recurring (income) loss | — | (0.06) | ||||||||||||||||||
| Income tax (benefit) expense on items excluded from adjusted earnings | 0.13 | 0.02 | ||||||||||||||||||
| Adjusted earnings per diluted share | 5.64 | 4.97 | 13.5 | % | ||||||||||||||||
Current period foreign currency impact 1 | 0.17 | N/A | ||||||||||||||||||
Adjusted earnings excluding current period foreign currency impact 2 | $ | 5.81 | $ | 4.97 | 16.9 | % | ||||||||||||||
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, | 2024 | 2023 | % Change | |||||||||||||||||
| Net investment (gains) losses | $ | 1,408 | $ | (423) | (432.9) | % | ||||||||||||||
| Items impacting net investment (gains) losses: | ||||||||||||||||||||
| Amortized hedge costs | (7) | (26) | ||||||||||||||||||
| Amortized hedge income | 25 | 25 | ||||||||||||||||||
Net interest income (expense) from derivatives associated with certain investment strategies | (88) | (90) | ||||||||||||||||||
Impact of interest from derivatives associated with notes payable1 | 8 | 10 | ||||||||||||||||||
| Adjusted net investment (gains) losses | $ | 1,347 | $ | (504) | (367.3) | % | ||||||||||||||
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, | 2024 | 2023 | % Change | |||||||||||||||||
| Net investment income | $ | 1,006 | $ | 1,004 | 0.2 | % | ||||||||||||||
| Items impacting net investment income: | ||||||||||||||||||||
| Amortized hedge costs | (7) | (26) | ||||||||||||||||||
| Amortized hedge income | 25 | 25 | ||||||||||||||||||
Net interest income (expense) from derivatives associated with certain investment strategies | (88) | (90) | ||||||||||||||||||
| Adjusted net investment income | $ | 936 | $ | 915 | 2.3 | % | ||||||||||||||
| RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES | ||||||||||||||||||||
| (UNAUDITED – IN MILLIONS) | ||||||||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | 2024 | 2023 | % Change | |||||||||||||||||
| Net investment (gains) losses | $ | (239) | $ | (1,101) | (78.3) | % | ||||||||||||||
| Items impacting net investment (gains) losses: | ||||||||||||||||||||
| Amortized hedge costs | (19) | (148) | ||||||||||||||||||
| Amortized hedge income | 87 | 92 | ||||||||||||||||||
Net interest income (expense) from derivatives associated with certain investment strategies | (265) | (239) | ||||||||||||||||||
Impact of interest from derivatives associated with notes payable1 | 25 | 33 | ||||||||||||||||||
| Adjusted net investment (gains) losses | $ | (411) | $ | (1,363) | (69.8) | % | ||||||||||||||
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, | 2024 | 2023 | % Change | |||||||||||||||||
| Net investment income | $ | 3,100 | $ | 2,946 | 5.2 | % | ||||||||||||||
| Items impacting net investment income: | ||||||||||||||||||||
| Amortized hedge costs | (19) | (148) | ||||||||||||||||||
| Amortized hedge income | 87 | 92 | ||||||||||||||||||
Net interest income (expense) from derivatives associated with certain investment strategies | (265) | (239) | ||||||||||||||||||
| Adjusted net investment income | $ | 2,903 | $ | 2,651 | 9.5 | % | ||||||||||||||
RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE | ||||||||||||||||||||
| (UNAUDITED - IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS) | ||||||||||||||||||||
| SEPTEMBER 30, | 2024 | 2023 | % Change | |||||||||||||||||
| U.S. GAAP book value | $ | 24,830 | $ | 22,669 | ||||||||||||||||
| Less: | ||||||||||||||||||||
Unrealized foreign currency translation gains (losses) | (4,139) | (4,484) | ||||||||||||||||||
Unrealized gains (losses) on securities and derivatives | 537 | (427) | ||||||||||||||||||
| Effect of changes in discount rate assumptions | (67) | (866) | ||||||||||||||||||
Pension liability adjustment | (8) | 17 | ||||||||||||||||||
Total AOCI | (3,677) | (5,760) | ||||||||||||||||||
| Adjusted book value | $ | 28,507 | $ | 28,429 | ||||||||||||||||
| Add: | ||||||||||||||||||||
Unrealized foreign currency translation gains (losses) | (4,139) | (4,484) | ||||||||||||||||||
| Adjusted book value including unrealized foreign currency translation gains (losses) | $ | 24,368 | $ | 23,945 | ||||||||||||||||
| Number of outstanding shares at end of period (000) | 556,717 | 586,897 | ||||||||||||||||||
| U.S. GAAP book value per common share | $ | 44.60 | $ | 38.63 | 15.5 | % | ||||||||||||||
| Less: | ||||||||||||||||||||
Unrealized foreign currency translation gains (losses) per common share | (7.43) | (7.64) | ||||||||||||||||||
Unrealized gains (losses) on securities and derivatives per common share | 0.96 | (0.73) | ||||||||||||||||||
| Effect of changes in discount rate assumptions per common share | (0.12) | (1.48) | ||||||||||||||||||
Pension liability adjustment per common share | (0.01) | 0.03 | ||||||||||||||||||
Total AOCI per common share | (6.60) | (9.81) | ||||||||||||||||||
| Adjusted book value per common share | $ | 51.21 | $ | 48.44 | 5.7 | % | ||||||||||||||
| Add: | ||||||||||||||||||||
Unrealized foreign currency translation gains (losses) per common share | (7.43) | (7.64) | ||||||||||||||||||
| Adjusted book value including unrealized foreign currency translation gains (losses) per common share | $ | 43.77 | $ | 40.80 | 7.3 | % | ||||||||||||||
RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE | ||||||||||||||
| (EXCLUDING IMPACT OF FOREIGN CURRENCY) | ||||||||||||||
| THREE MONTHS ENDED SEPTEMBER 30, | 2024 | 2023 | ||||||||||||
U.S. GAAP ROE - Net earnings1 | (1.5) | % | 29.1 | % | ||||||||||
Impact of excluding unrealized foreign currency translation gains (losses) | 0.3 | (4.5) | ||||||||||||
Impact of excluding unrealized gains (losses) on securities and derivatives | — | 0.8 | ||||||||||||
| Impact of excluding effect of changes in discount rate assumptions | — | (3.1) | ||||||||||||
Impact of excluding pension liability adjustment | — | — | ||||||||||||
Impact of excluding AOCI | 0.2 | (6.8) | ||||||||||||
| U.S. GAAP ROE - less AOCI | (1.3) | 22.3 | ||||||||||||
Differences between adjusted earnings and net earnings2 | 18.0 | (6.7) | ||||||||||||
| Adjusted ROE - reported | 16.7 | 15.6 | ||||||||||||
Less: Impact of foreign currency3 | (0.2) | N/A | ||||||||||||
| Adjusted ROE, excluding impact of foreign currency | 17.0 | 15.6 | ||||||||||||
1 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
2 See separate reconciliation of net income to adjusted earnings.
3 Impact of foreign currency is calculated by restating all foreign currency components of the income statement to the weighted average foreign currency exchange rate for the comparable prior year period. The impact is the difference of the restated adjusted earnings compared to reported adjusted earnings. For comparative purposes, only current period income is restated using the weighted average prior period exchange rate, which eliminates the foreign currency impact for the current period. This allows for equal comparison of this financial measure.
RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE | ||||||||||||||
| (EXCLUDING IMPACT OF FOREIGN CURRENCY) | ||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, | 2024 | 2023 | ||||||||||||
U.S. GAAP ROE - Net earnings1 | 20.2 | % | 27.4 | % | ||||||||||
Impact of excluding unrealized foreign currency translation gains (losses) | (2.9) | (4.0) | ||||||||||||
Impact of excluding unrealized gains (losses) on securities and derivatives | 0.6 | (0.6) | ||||||||||||
| Impact of excluding effect of changes in discount rate assumptions | (0.9) | (1.5) | ||||||||||||
Impact of excluding pension liability adjustment | — | — | ||||||||||||
Impact of excluding AOCI | (3.3) | (6.1) | ||||||||||||
| U.S. GAAP ROE - less AOCI | 16.9 | 21.3 | ||||||||||||
Differences between adjusted earnings and net earnings2 | (1.6) | (6.7) | ||||||||||||
| Adjusted ROE - reported | 15.3 | 14.6 | ||||||||||||
Less: Impact of foreign currency3 | (0.5) | N/A | ||||||||||||
| Adjusted ROE, excluding impact of foreign currency | 15.7 | 14.6 | ||||||||||||
1 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
2 See separate reconciliation of net income to adjusted earnings.
3 Impact of foreign currency is calculated by restating all foreign currency components of the income statement to the weighted average foreign currency exchange rate for the comparable prior year period. The impact is the difference of the restated adjusted earnings compared to reported adjusted earnings. For comparative purposes, only current period income is restated using the weighted average prior period exchange rate, which eliminates the foreign currency impact for the current period. This allows for equal comparison of this financial measure.
EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1 | ||||||||||||||
| (SELECTED PERCENTAGE CHANGES, UNAUDITED) | ||||||||||||||
| THREE MONTHS ENDED SEPTEMBER 30, 2024 | Including Currency Changes | Excluding Currency Changes2 | ||||||||||||
Net earned premiums3 | (4.3) | % | (3.1) | % | ||||||||||
Adjusted net investment income4 | 2.3 | 2.7 | ||||||||||||
| Total benefits and expenses | (9.2) | (8.3) | ||||||||||||
| Adjusted earnings | 10.6 | 12.1 | ||||||||||||
| Adjusted earnings per diluted share | 17.4 | 19.0 | ||||||||||||
1Refer to previously defined adjusted earnings and adjusted earnings per diluted share.
2Amounts 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.
3Net of reinsurance
4Refer to previously defined adjusted net investment income.
EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1 | ||||||||||||||
| (SELECTED PERCENTAGE CHANGES, UNAUDITED) | ||||||||||||||
| NINE MONTHS ENDED SEPTEMBER 30, 2024 | Including Currency Changes | Excluding Currency Changes2 | ||||||||||||
Net earned premiums3 | (5.8) | % | (0.9) | % | ||||||||||
Adjusted net investment income4 | 9.5 | 11.9 | ||||||||||||
| Total benefits and expenses | (7.4) | (2.6) | ||||||||||||
| Adjusted earnings | 6.9 | 10.1 | ||||||||||||
| Adjusted earnings per diluted share | 13.5 | 16.9 | ||||||||||||
1Refer to previously defined adjusted earnings and adjusted earnings per diluted share.
2Amounts 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.
3Net of reinsurance
4Refer to previously defined adjusted net investment income.
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. The company desires 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 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,” “may,” “should,” “estimate,” “intends,” “projects,” “will,” “assumes,” “potential,” “target,” "outlook" or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements.
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 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
•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, as a result of climate change, 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 dyoung@aflac.com
Media contact - Ines Gutzmer, 762.207.7601 or igutzmer@aflac.com