Q4 2025 Aflac Inc Earnings Call Transcript
Key Points
- Aflac Inc (AFL) reported strong financial results with adjusted earnings per diluted share of $1.57 for the fourth quarter of 2025.
- Aflac Japan saw a significant sales increase of 15.7% for the fourth quarter and 16% for the year, driven by the successful launch of new products like Miraito and Anshin Palette.
- The company maintained strong premium persistency in both Japan and the US, with Japan at 93.1% and the US at 79.2%.
- Aflac Inc (AFL) deployed a record $3.5 billion to repurchase 33 million shares and paid $1.2 billion in dividends, demonstrating strong capital management.
- The company achieved significant milestones, including the 70th anniversary of its founding and the 25th anniversary of the Aflac Duck, highlighting its long-standing market presence.
- Net earned premiums in Japan declined by 1.9% in yen terms for the quarter, indicating challenges in premium growth.
- The US segment experienced a 230-basis point increase in the total benefit ratio, driven by higher claims activity and prior year endorsements.
- Variable investment income in the fourth quarter was $12 million below long-term return expectations, impacting overall financial performance.
- The expense ratio in Japan increased by 120 basis points year-over-year due to higher sales promotion expenses.
- Despite strong sales, the overall growth in the US was flat to negative for traditional voluntary benefits, indicating challenges in this segment.
Good morning, everyone, and welcome to the Aflac Incorporated fourth quarter 2025 earnings conference call. (Operator Instructions) Please also note today's event is being recorded.
I would now like to turn the floor over to David Young, Vice President of Capital Markets. Please go ahead.
Good morning, and welcome. Thank you for joining us for Aflac Incorporated's fourth quarter 2025 earnings call. This morning, Dan Amos, Chairman, CEO of Aflac Incorporated, will provide an overview of our results and operations in Japan and the United States. Then Max Broden, Senior Executive Vice President and CFO of Aflac Incorporated, will provide more detail on our financial results for the quarter, current capital and liquidity. These topics are also addressed in the materials we posted with our earnings release, financial supplement and quarterly CFO update on our investors.aflac.com.
For Q&A today, we are joined by Virgil Miller, President of Aflac Incorporated and Aflac US; Charles Lake,
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