Aflac Incorporated Announces Third Quarter 2026 Results
AFLAC INC (AFL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Aflac Incorporated Announces Third Quarter 2026 Results, Declares Fourth Quarter Dividend COLUMBUS, Ga. - November 4, 2026 - Aflac Incorporated (NYSE: AFL) today reported its third quarter results. For the Quarter • Net earnings were $303 million, or $0.61 per diluted share, comp
How this was made
The 30-second read
Why it matters
The earnings miss is likely to trigger a sell‑off in AFL shares, though the dividend hike and buyback may provide some support for income investors.
Market read
First‑report earnings release for a large‑cap insurer; provides fresh data for traders to reassess valuation and dividend yield expectations.
What to watch
Reserve remeasurement gains of $453M and the $804M share buyback partially offset the earnings decline.
Aflac Incorporated Announces Third Quarter 2026 Results, Declares Fourth Quarter Dividend
Adjusted earnings were $1.2 billion and adjusted earnings per diluted share was $2.43, while U.S. segment pretax adjusted earnings rose 31.5%. Reported net earnings fell 81.5% to $303 million, principally reflecting net investment losses associated with strategic portfolio repositioning, and Japan pretax adjusted earnings declined 15.2% in yen.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30GAAP | $3.27B | – | (31.0) % |
| Benefits and claims, net, three months ended September 30GAAP | $1.44B | – | 0.2 |
| Total acquisition and operating expenses, three months ended September 30GAAP | $1.33B | – | 1.7 |
| Earnings before income taxes, three months ended September 30GAAP | $500M | – | (74.9) % |
| Income taxes, three months ended September 30GAAP | $197M | – | – |
| Net earnings, three months ended September 30GAAP | $303M | – | (81.5) % |
| Net earnings per share - diluted, three months ended September 30GAAP | $0.61 | – | (80.2) % |
| Adjusted earnings, three months ended September 30non-GAAP | $1.21B | – | (8.5) % |
| Adjusted earnings per diluted share, three months ended September 30non-GAAP | $2.43 | – | (2.4) % |
| Adjusted earnings excluding current period foreign currency impact, three months ended September 30non-GAAP | $1.23B | – | (7.5) % |
| Adjusted earnings per diluted share excluding current period foreign currency impact, three months ended September 30non-GAAP | $2.46 | – | (1.2) % |
| Net investment income, three months ended September 30GAAP | $1.00B | – | (6.0) % |
| Adjusted net investment income, three months ended September 30non-GAAP | $957M | – | (5.1) % |
| Net investment (gains) losses, three months ended September 30GAAP | $1.07B | – | 489.8 % |
| Adjusted net investment (gains) losses, three months ended September 30non-GAAP | $1.03B | – | 406.3 % |
| Annualized return on average shareholders' equity, three months ended September 30GAAP | 4.1% | – | – |
| Annualized adjusted return on equity excluding foreign currency remeasurement, three months ended September 30non-GAAP | 23.7% | – | – |
| Total revenues, nine months ended September 30GAAP | $11.73B | – | (4.6) % |
| Benefits and claims, net, nine months ended September 30GAAP | $5.12B | – | (5.0) |
| Total acquisition and operating expenses, nine months ended September 30GAAP | $3.89B | – | (1.4) |
| Net earnings, nine months ended September 30GAAP | $2.15B | – | (5.3) % |
| Net earnings per share - diluted, nine months ended September 30GAAP | $4.24 | – | 0.7 % |
| Adjusted earnings, nine months ended September 30non-GAAP | $3.00B | – | (6.0) % |
| Adjusted earnings per diluted share, nine months ended September 30non-GAAP | $5.92 | – | — % |
| Adjusted earnings per diluted share excluding current period foreign currency impact, nine months ended September 30non-GAAP | $6.02 | – | 1.7 % |
| Total investments and cash, September 30GAAP | $100.4B | – | (8.3) % |
| Total assets, September 30GAAP | $113.5B | – | (7.2) % |
| Policy liabilities, September 30GAAP | $63.52B | – | (15.0) % |
| Notes payable and lease obligations, September 30GAAP | $8.9B | – | 2.5 |
| Shareholders' equity, September 30GAAP | $29.28B | – | 2.1 % |
| U.S. GAAP book value per common share, September 30GAAP | $59.08 | – | 8.3 % |
| Adjusted book value, September 30non-GAAP | $26.87B | – | – |
| Adjusted book value per common share, September 30non-GAAP | $54.21 | – | 1.7 % |
| Adjusted book value excluding foreign currency remeasurement, September 30non-GAAP | $20.19B | – | – |
| Adjusted book value excluding foreign currency remeasurement per common share, September 30non-GAAP | $40.73 | – | (6.4) % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Aflac Japan, total adjusted revenues, third quarter 2026Net earned premiums declined due to the combined impact of an external reinsurance transaction, an internal reinsurance transaction on cancer insurance blocks, and limited pay products reaching paid-up status. | ¥343.2 billion; $2,156 million | – | (0.3) % in yen; (7.7) % in dollars |
| Aflac U.S., total adjusted revenues, third quarter 2026Net earned premiums increased 3.3%, reflecting improved sales and strong persistency. | $1.78B | – | 3.1 % |
| Corporate and Other, total adjusted revenues, third quarter 2026Pretax adjusted earnings benefited from higher reserve remeasurement gains and new reinsurance transactions, partly offset by higher expenses and lower adjusted net investment income. | $360M | – | 5.0 % |
Capital returns
- The Company returned $1.1 billion to shareholders, consisting of $804 million in share repurchase and $305 million in dividends.
- The board of directors declared the fourth quarter dividend of $0.61 per share, payable on December 1, 2026 to shareholders of record at the close of business on November 18, 2026.
- Dividends paid per share were $0.61 for the three months ended September 30, 2026, compared with $0.58 for the three months ended September 30, 2025.
- Aflac Incorporated reached the milestone of 44 consecutive years of dividend increases with the fourth quarter declaration of $0.61.
What drove it
- Third-quarter net investment losses were $1.1 billion, or $2.15 per diluted share, compared with net investment gains of $275 million, or $0.52 per diluted share, a year ago.
- Net investment losses included net losses from sales and redemptions of $842 million, net losses of $146 million on certain derivatives and foreign currency activities, $102 million of CECL, and impairments of $1 million, offset by a $19 million gain from an increase in the fair value of equity securities.
- Adjusted earnings benefited from reserve remeasurement gains of $453 million.
- Aflac U.S. pretax adjusted earnings rose 31.5% to $493 million, driven by lower benefits from higher reserve remeasurement gains, higher premiums and lower expenses.
- Aflac Japan pretax adjusted earnings in yen declined 15.2% to ¥152.3 billion, primarily driven by higher benefits due to lower reserve remeasurement gains following actuarial assumption unlocking.
- The average yen/dollar exchange rate was 158.49, 6.8% weaker than 147.68 a year ago, with a negative $0.03 impact on adjusted earnings per share.
Concerns
- Reported total revenues decreased 31.0% to $3,271 million and GAAP net earnings decreased 81.5% to $303 million.
- Aflac Japan net earned premiums decreased 2.0% to ¥240.3 billion, and Japan pretax adjusted profit margin declined to 44.4% from 52.2%.
- A $51 million, or $0.10 per diluted share, tax capital loss valuation allowance was established against a portion of deferred tax assets associated with tax capital loss carryforwards.
- Adjusted earnings declined 8.5% to $1,214 million and adjusted earnings per diluted share declined 2.4% to $2.43.
- Adjusted book value excluding foreign currency remeasurement per common share decreased 6.4% to $40.73.
What to watch
- The effect of the reinsurance transactions and limited pay products reaching paid-up status on Aflac Japan net earned premiums.
- Reserve remeasurement gains and actuarial assumption unlocking, which affected both Japan and U.S. segment earnings and benefit ratios.
- Japan sales following high prior-year Miraito cancer insurance sales, alongside growth in Tsumitasu and Anshin Palette.
- Aflac U.S. sales of network dental and group life and disability products, which contributed to a 3.5% increase in quarterly sales to $403 million.
- The yen/dollar exchange rate and its impact on reported adjusted earnings per diluted share.
- Portfolio repositioning, investment gains and losses, CECL, and the level of unrealized losses on investment securities and derivatives.
Balance sheet and cash flow
- Total investments and cash were $100,433 million at September 30, 2026, compared with $109,516 million at September 30, 2025.
- Notes payable and lease obligations were $8,900 million at September 30, 2026, compared with $8,685 million at September 30, 2025.
- Shareholders' equity was $29,283 million, or $59.08 per share, at September 30, 2026, compared with $28,688 million, or $54.57 per share, at September 30, 2025.
- Shares outstanding at end of period were 495,651 (000), compared with 525,710 (000).
Analysis
Aflac reported a sharp decline in GAAP third-quarter earnings as total revenues fell to $3,271 million from $4,740 million and net earnings fell to $303 million from $1,639 million. The release attributes the decline principally to realized losses associated with strategic portfolio repositioning. Net investment losses were $1.1 billion, or $2.15 per diluted share, versus net investment gains of $275 million, or $0.52 per diluted share, a year earlier. A $51 million tax capital loss valuation allowance also reduced reported earnings.
Underlying adjusted results were materially more resilient but still lower. Adjusted earnings declined 8.5% to $1,214 million and adjusted earnings per diluted share declined 2.4% to $2.43. The weaker yen/dollar exchange rate had a negative $0.03 impact on adjusted earnings per share. Excluding current-period foreign currency impact, adjusted earnings per diluted share was $2.46, compared with $2.49. The company reported $453 million of reserve remeasurement gains in adjusted earnings.
Segment performance diverged. Aflac U.S. produced 3.1% growth in total adjusted revenues to $1,781 million and a 31.5% increase in pretax adjusted earnings to $493 million. Its pretax adjusted profit margin improved to 27.7% from 21.7%, with lower benefits, higher premiums and lower expenses cited as drivers. In Japan, total adjusted revenues were ¥343.2 billion, down 0.3%, while pretax adjusted earnings fell 15.2% to ¥152.3 billion and the pretax adjusted profit margin declined to 44.4% from 52.2%. External and internal reinsurance transactions, limited pay products reaching paid-up status, and lower reserve remeasurement gains affected the Japan result.
Capital deployment remained substantial, with $1.1 billion returned to shareholders through $804 million in share repurchase and $305 million in dividends. The board declared a $0.61 fourth-quarter dividend, marking 44 consecutive years of dividend increases. At September 30, shareholders' equity was $29,283 million and total investments and cash were $100,433 million. Adjusted book value per common share increased to $54.21 from $53.33, while adjusted book value excluding foreign currency remeasurement per common share declined to $40.73 from $43.52.
For the first nine months, revenue declined 4.6% to $11,734 million and net earnings declined 5.3% to $2,147 million. Adjusted earnings per diluted share was unchanged at $5.92, while the measure excluding current-period foreign currency impact increased 1.7% to $6.02. The filing did not provide forward financial guidance, leaving currency, Japan premium trends, reinsurance effects, reserve remeasurement gains and investment losses as the principal reported variables to monitor.
Management, verbatim
Aflac delivered solid adjusted earnings for the quarter and for the first nine months. These results demonstrate our drive to execute our strategy and create long-term value for our shareholders.
Daniel P. Amos, Chairman and Chief Executive Officer
We remain focused on more profitable growth and the tactical, opportunistic deployment of capital.
Daniel P. Amos, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expenses guidance
- Forward tax rate guidance
- Operating cash flow
- Free cash flow
- Consolidated gross margin
- Consolidated operating income
- Prior-quarter comparisons for reported metrics
- Previous-release outlook for comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Aflac filed a Form 8‑K reporting its third‑quarter 2026 financial results, including a sharp earnings decline and a dividend declaration.
Ticker impact
Q3 2026 results showing net earnings of $303M, an 81% YoY decline, adjusted earnings of $1.2B and a $0.61 dividend declaration.
downward pressure as investors price in weaker earnings and lower guidance.
The large drop in net earnings and earnings per share, combined with a modest dividend increase, suggests earnings disappointment outweighs the dividend news.
Market effects
Insurance sector may see broader scrutiny on earnings quality and reserve assumptions.
US equity markets could see modest pullback in insurance stocks.
Global insurers may be impacted by Aflac's reserve remeasurement and foreign currency effects.
Counterpoint
The continued dividend increase and sizable share repurchase could attract income‑focused investors despite earnings weakness.
Key entities
- ExecutiveDaniel P. Amos
Chairman and CEO of Aflac who commented on the results.
- SubsidiaryAflac Japan
Reported a modest decline in net earned premiums and contributed to overall results.
