Q1 2026 Aflac Inc Earnings Call Transcript
Key Points
- Aflac Inc (AFL) reported a strong start to the year with net earnings per diluted share of $1.98 and adjusted earnings per diluted share of $1.75.
- Aflac Japan saw a significant sales increase of 25.5% for the first quarter, driven by new medical and cancer insurance products.
- The company maintained strong premium persistency in the US at 79.3% and increased net earned premium by 3.5% for the quarter.
- Aflac Inc (AFL) returned $1.3 billion to shareholders through share repurchases and dividends in the first quarter.
- The company's capital position remains robust, with an estimated regulatory ESR of 227% and a combined RBC of approximately 560%.
- Net earned premiums in yen terms for Aflac Japan declined by 3.8% for the quarter.
- The US expense ratio increased by 70 basis points year-over-year, driven by higher DAC amortization and commissions.
- Corporate & Other reported breakeven pretax adjusted earnings, down from a $43 million gain last year.
- Aflac Japan's underlying earned premiums declined by 1.3%, indicating challenges in long-term premium growth.
- The company recorded $24 million of impairments on its real estate owned portfolio due to depressed valuations in the commercial real estate markets.
Good day, and welcome to the Aflac Incorporated first quarter 2026 earnings call. (Operator Instructions)
Please note, this event is being recorded. I would now like to hand the call over to David Young, Senior Vice President of Capital Markets. Please go ahead.
Good morning, and welcome. Thank you for joining us for Aflac Incorporated's first quarter 2026 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 this quarter's financial results, including our capital and liquidity. These topics are also addressed in the materials we posted with our earnings release, financial supplement and quarterly CFO video update on investors.aflac.com.
For Q&A today, we are also joined by Virgil Miller, President of Aflac Incorporated and Aflac US; Charles
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