AFL · 10-Q · 2026Q2

AFLAC INC

Filed 2026-08-07 · Financials · View original filing on EDGAR

Ranked Events

• Net Investment LossesImportance 77 · Surprise 82
  Second-quarter net investment losses improved to $153 million in 2026 from $421 million in 2025. Six-month net investment losses improved to $104 million from $1.4 billion year over year, materially increasing reported…
• Net Income and EPS PerformanceImportance 69 · Surprise 64
  Second-quarter net earnings rose to $825 million, or $1.63 per diluted share, from $599 million, or $1.11 per diluted share, in the prior-year quarter. Six-month net earnings increased to $1.8 billion, or $3.61 per…
• Operating Margin DriversImportance 56 · Surprise 58
  Aflac Japan’s six-month pretax adjusted earnings margin decreased to 31.9% from 34.6% in yen terms, while the second-quarter margin increased to 32.0% from 34.3% in the comparable presentation. Six-month benefits and…
• Investment Purchases and YieldsImportance 54 · Surprise 40
  Aflac Japan purchased $9,269 million of investments during the first six months of 2026, including $4,608 million of yen-denominated investments and $4,110 million of U.S.-dollar-denominated investments. Aflac Japan’s…
• Revenue Performance and MixImportance 54 · Surprise 40
  Total revenues increased to $8.5 billion in the first six months of 2026 from $7.6 billion in the first six months of 2025, primarily because net investment losses narrowed to $104 million from $1.4 billion.…
• Guidance / OutlookImportance 51 · Surprise 60
  For full-year 2026, management expects Aflac Japan’s benefit ratio to be at the high end of its 60% to 63% range. This outlook excludes the annual actuarial assumption review scheduled for the third quarter of 2026.…
• Capital Return ProgramImportance 50 · Surprise 50
  Aflac repurchased $2.0 billion of common stock during the first six months of 2026. The repurchases represented 17.5 million shares and reduced period-end shares outstanding to approximately 502.3 million from 518.7…
• Aflac U.S. Segment PerformanceImportance 49 · Surprise 32
  Aflac U.S. total adjusted revenues increased 2.5% in the second quarter and 2.9% in the first six months of 2026, primarily from higher net earned premiums. Net earned premiums increased 2.3% to $1,539 million in the…
• Shareholders Equity PositionImportance 49 · Surprise 32
  Shareholders’ equity increased to $30.3 billion, or $60.35 per share, at June 30, 2026, from $29.5 billion, or $56.85 per share, at December 31, 2025. The cumulative effect of discount-rate changes on insurance…
• Income Tax Rate ChangesImportance 46 · Surprise 56
  The combined effective income tax rate fell to 17.0% in the second quarter of 2026 from 27.0% in the second quarter of 2025. For the first six months, the rate decreased to 16.9% from 35.0%. The lower rates reduced tax…
• Cybersecurity IncidentsImportance 44 · Surprise 60
  Aflac reported a June 12, 2025 unauthorized-access incident affecting a limited number of U.S. systems and remains in communication with regulators and other authorities. Potential costs include credit monitoring,…
• Interest Rate EnvironmentImportance 43 · Surprise 32
  Higher Japanese yen interest rates increased Aflac Japan’s six-month 2026 new-money yield to 4.45%, from 3.85% in the prior-year period. Conversely, Aflac U.S.’s new-money yield declined to 6.30% for the six months…
• Aflac Japan Segment PerformanceImportance 42 · Surprise 40
  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,…
• Commercial Real Estate Credit RiskImportance 40 · Surprise 42
  Aflac’s transitional real estate and commercial mortgage loan portfolios are collateralized by commercial real estate, including office properties, and have been affected by weakness in the commercial real estate…
• Market Demand TrendsImportance 39 · Surprise 50
  Aflac Japan’s net earned premiums decreased 12.7% in U.S. dollars in the second quarter of 2026 and 3.7% in Japanese yen, primarily because an external reinsurance transaction reduced premiums by approximately ¥4…
• Investment Portfolio Unrealized LossesImportance 31 · Surprise 6
  Aflac reported $80,695 million of fixed maturity securities at amortized cost and $77,104 million at fair value as of June 30, 2026. The portfolio carried $7,888 million of gross unrealized losses, including a $5,102…
• Corporate Other Earnings DeclineImportance 30 · Surprise 40
  Corporate and other total adjusted revenues decreased 13.4% in the second quarter of 2026 and 11.9% for the first six months, primarily because of lower net earned premiums and adjusted net investment income. Adjusted…
• Aflac U.S. Sales TrendsImportance 25 · Surprise 32
  Aflac U.S. new annualized premium sales increased 2.6% in the second quarter and 2.8% in the first six months of 2026, primarily driven by group products. Group-oriented product categories remained diversified, with…
• Aflac Japan Sales TrendsImportance 25 · Surprise 48
  Aflac Japan’s new annualized premium sales decreased 14.3% in yen terms in the second quarter of 2026, primarily because the prior-year period benefited from the March 2025 launch of Miraito cancer insurance. For the…
• Aflac U.S. Margin DriversImportance 25 · Surprise 32
  Aflac U.S.’s total benefits-and-claims ratio to adjusted revenues increased to 43.0% in the second quarter of 2026 from 41.2% a year earlier and to 42.1% for the six months from 41.4%. The total adjusted expense ratio…

Revenue by Product (in millions)