AFLAC INC
For the period ended Mar 31, 2025. Filed May 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
AFL$124.06-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-01.
0000004977-24-000167
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive SummaryCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive SummaryThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 49 previous paragraphs and 47 current paragraphs.
39 unchanged; 8 reworded; 0 added; 1 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Removed paragraphs (1)
Previous report
Total revenues were $13.5 billion in the first nine months of 2024, compared with $14.9 billion in the first nine months of 2023. Net earnings were $3.5 billion, or $6.23 per diluted share, in the first nine months of 2024, compared with $4.4 billion, or $7.28 per diluted share, in the first nine months of 2023.
Reworded paragraphs (8)
Previous wording
MD&A is intended to inform the reader about matters affecting the financial condition and results of operations of Aflac Incorporated and its subsidiaries for the nine-month periods ended September 30, 2024 and 2023, respectively. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, the following discussion should be read in conjunction with the consolidated financial statements and notes that are included in the Company's annual report on Form 10-K for the year ended December 31, 2023 (2023 Annual Report). In this MD&A, amounts may not foot due to rounding.
Current wording
MD&A is intended to inform the reader about matters affecting the financial condition and results of operations of Aflac Incorporated and its subsidiaries for the three-month periods ended March 31, 2025 and 2024, respectively. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, the following discussion should be read in conjunction with the consolidated financial statements and notes that are included in the Company's annual report on Form 10-K for the year ended December 31, 2024 (2024 Annual Report). In this MD&A, amounts may not foot due to rounding.
Previous wording
Total revenues were $2.9 billion in the third quarter of 2024, compared with $5.0 billion in the third quarter of 2023. Net earnings were $(93) million, or $(.17) per diluted share, in the third quarter of 2024, compared with $1.6 billion, or $2.64 per diluted share, in the third quarter of 2023, primarily due to increased foreign exchange-related losses from the yen strengthening by 12.9% during the quarter.
Current wording
Total revenues were $3.4 billion in the first quarter of 2025, compared with $5.4 billion in the first quarter of 2024, primarily due to net investment losses of $963 million in the first quarter of 2025 compared with net investment gains of $951 million in the first quarter of 2024. Net earnings were $29 million, or $.05 per diluted share, in the first quarter of 2025, compared with $1.9 billion, or $3.25 per diluted share, in the first quarter of 2024.
Previous wording
Results in the third quarter of 2024 included pretax net investment losses of $1.4 billion, compared with pretax net investment gains of $423 million in the third quarter of 2023. Net investment losses in the third quarter of 2024 included an increase in credit loss allowances of $141 million; $1.4 billion of net losses from certain derivative and foreign currency gains or losses; $13 million of net gains on equity securities; and $105 million of net gains from sales and redemptions.
Current wording
Net earnings in the first quarter of 2025 included net investment losses of $963 million, compared with net investment gains of $951 million in the first quarter of 2024. Net investment losses in the first quarter of 2025 included $888 million of net losses from certain derivative and foreign currency gains or losses; $61 million of net losses on equity securities; an increase in credit loss allowances of $55 million; and $41 million of net gains from sales and redemptions.
Previous wording
The average yen/dollar exchange rate(1) for the three-month period ended September 30, 2024 was 147.95, or 2.0% weaker than the average yen/dollar exchange rate(1) of 144.97 for the same period in 2023. The average yen/dollar exchange rate(1) for the nine-month period ended September 30, 2024 was 150.60, or 8.1% weaker than the average yen/dollar exchange rate(1) of 138.38 for the same period in 2023.
Current wording
The average yen/dollar exchange rate(1) for the three-month period ended March 31, 2025 was 152.40, or 2.4% weaker than the average yen/dollar exchange rate(1) of 148.67 for the same period in 2024.
Previous wording
Adjusted earnings(2) in the third quarter of 2024 were $1.2 billion, or $2.16 per diluted share, compared with $1.1 billion, or $1.84 per diluted share, in the third quarter of 2023. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per diluted share by $.03. Adjusted earnings(2) in the first nine months of 2024 were $3.2 billion, or $5.64 per diluted share, compared with $3.0 billion, or $4.97 per diluted share, in the first nine months of 2023. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per diluted share by $.17.
Current wording
Adjusted earnings(2) in the first quarter of 2025 were $906 million, or $1.66 per diluted share, compared with $961 million, or $1.66 per diluted share, in the first quarter of 2024. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per diluted share by $.01.
Previous wording
In the first nine months of 2024, Aflac Incorporated repurchased $2.1 billion, or 23.4 million of its common shares as part of its share repurchase program. At September 30, 2024, the Company had 54.3 million remaining shares authorized for repurchase.
Current wording
In the first three months of 2025, Aflac Incorporated repurchased $900 million, or 8.5 million of its common shares. At March 31, 2025, the Company had 38.8 million remaining shares authorized for repurchase.
Previous wording
Shareholders’ equity was $24.8 billion, or $44.60 per share, at September 30, 2024, compared with $22.0 billion, or $38.00 per share, at December 31, 2023. Shareholders’ equity at September 30, 2024 included a cumulative decrease of $67 million from the effect of changes in discount rate assumptions on insurance contracts, compared with a corresponding cumulative decrease of $2.6 billion at December 31, 2023, and a net unrealized gain on investment securities and derivatives of $537 million, compared with a net unrealized gain of $1.1 billion at December 31, 2023. Shareholders’ equity at September 30, 2024 also included an unrealized foreign currency translation loss of $4.1 billion, compared with an unrealized foreign currency translation loss of $4.1 billion at December 31, 2023. The annualized return on average shareholders’ equity in the third quarter of 2024 was (1.5)%.
Current wording
Shareholders’ equity was $26.3 billion, or $48.55 per share, at March 31, 2025, compared with $26.1 billion, or $47.45 per share, at December 31, 2024. Shareholders’ equity at March 31, 2025 included a cumulative increase of $3.9 billion from the effect of changes in discount rate assumptions on insurance reserves, compared with a corresponding cumulative increase of $2.0 billion at December 31, 2024, and a net unrealized loss on investment securities and derivatives of $1.3 billion, compared with a net unrealized gain of $4 million at December 31, 2024. Shareholders’ equity at March 31, 2025 also included an unrealized foreign currency translation loss of $4.5 billion, compared with an unrealized foreign currency translation loss of $5.0 billion at December 31, 2024. The annualized return on average shareholders’ equity in the first quarter of 2025 was .4%.
Previous wording
Shareholders’ equity excluding accumulated other comprehensive income (AOCI)(2) (adjusted book value) was $28.5 billion, or $51.21 per share, at September 30, 2024, compared with $27.5 billion, or $47.55 per share, at December 31, 2023. The annualized adjusted return on equity (ROE) excluding foreign currency impact(2) in the third quarter of 2024 was 17.0%.
Current wording
Shareholders’ equity excluding accumulated other comprehensive income (AOCI)(2) (adjusted book value) was $28.2 billion, or $51.98 per share, at March 31, 2025, compared with $29.1 billion, or $52.87 per share, at December 31, 2024. Adjusted book value excluding foreign currency remeasurement(2) was $23.1 billion, or $42.61 per share, at March 31, 2025, compared with $23.4 billion, or $42.46 per share, at December 31, 2024. The annualized adjusted return on equity (ROE) excluding foreign currency remeasurement(2) in the first quarter of 2025 was 15.6%.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Results in the first nine months of 2024 included pretax net investment gains of $239 million, compared with pretax net investment gains of $1.1 billion in the first nine months of 2023. Net investment gains in the first nine months of 2024 included an increase in credit loss allowances of $161 million; $33 million of net losses from certain derivative and foreign currency gains or losses; $100 million of net gains on equity securities; and $333 million of net gains from sales and redemptions.