AFL · 10-Q · 2026Q2 · Full report
Aflac Japan Segment Performance
AFLAC INC · 2026-08-07 · Importance 42 · Surprise 40 · No source text
Aflac Japan’s six-month pretax adjusted earnings declined 12.1% in yen terms, while second-quarter pretax adjusted earnings increased 3.4% in yen terms. Six-month total adjusted revenues decreased 6.0% in yen terms, primarily because net earned premiums declined, while total benefits and claims and total adjusted expenses both decreased. The benefits-to-total-adjusted-revenues ratio improved to 45.5% from 48.0% for the six-month period. Annualized premiums in force declined 2.7% to ¥1.16 trillion as of June 30, 2026, and translated to $7.2 billion from $8.2 billion a year earlier.
Key facts
- For the full year of 2026, the Company now expects Aflac Japan to generate a benefit ratio at the high end of the range of 60% to 63%, excluding the annual actuarial assumption review in the third quarter. source
- As of June 30, 2026, Aflac Japan had approximately 22 million individual policies in force in Japan, including approximately 14 million cancer policies in force. source
- Aflac Japan total adjusted revenues were $2,161 million for the three months ended June 30, 2026 and $4,333 million for the six months ended June 30, 2026. source
- Aflac Japan pretax adjusted earnings were $1,500 million for the three months ended June 30, 2026 and $1,512 million for the six months ended June 30, 2026 (in dollars). source
- Aflac Japan net earned premiums were $1,537 million for the three months ended June 30, 2026. source
- For the three- and six-month periods ended June 30, 2026, the total adjusted expense ratio decreased primarily due to the decrease in total adjusted expenses, mostly offset by the decrease in total adjusted revenues. source
- Aflac Japan premium persistency on a 12-month rolling basis as of June 30 was 92.7% and 93.7%. source
- Aflac Japan adjusted net investment income decreased 2.9% for the three months ended June 30, 2026 when including foreign currency changes (Japanese yen operating results). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +52.5% | Aflac Japan total adjusted revenues were $2,161 million for the three months ended June 30, 2026 and $4,333 million for the six months… |
| operating_income | positive | realized | +36.4% | Aflac Japan pretax adjusted earnings were $1,500 million for the three months ended June 30, 2026 and $1,512 million for the six months… |
| margin | unclear | probable | — | For the full year of 2026, the Company now expects Aflac Japan to generate a benefit ratio at the high end of the range of 60% to 63%,… |