Total revenues were $4.9 billion in the fourth quarter of 2025, compared with $5.4 billion in the fourth quarter of 2024. Net earnings were $1.4 billion, or $2.64 per diluted share, compared with $1.9 billion, or $3.42 per diluted share a year ago.
Net earnings in the fourth quarter of 2025 included net investment gains of $537 million, or $1.03 per diluted share, compared with net investment gains of $1.0 billion, or $1.86 per diluted share a year ago. These net investment gains were driven by net gains of $588 million on certain derivatives and foreign currency activities; net losses from sales and redemptions of $51 million; a $25 million gain from an increase in the fair value of equity securities; and no impairments; offset by $25 million of current expected credit losses (CECL).
Adjusted earnings* in the fourth quarter were $818 million, compared with $865 million in the fourth quarter of 2024, reflecting a decrease of 5.4%. Adjusted earnings per diluted share* increased 0.6% to $1.57 in the quarter. Variable investment income ran $12 million below the company's long-term return expectations. The average yen/dollar exchange rate in the fourth quarter of 2025 was 154.20, or 1.2% weaker than the average rate of 152.35 in the fourth quarter of 2024. The weaker yen/dollar exchange rate did not impact adjusted earnings per share.
Shareholders' equity was $29.5 billion, or $56.85 per share, at December 31, 2025, compared with $26.1 billion, or $47.45 per share, at December 31, 2024. Shareholders' equity at the end of the fourth quarter included a cumulative increase of $8.0 billion for the effect of the change 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 $1.8 billion, compared with a net unrealized gain of $4 million at December 31, 2024. Shareholders' equity at the end of the fourth quarter also included an unrealized foreign currency translation loss of $4.8 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 fourth quarter was 19.0%.
For the full year of 2025, total revenues were down 9.3% to $17.2 billion, compared with $18.9 billion in the full year of 2024. Net earnings were $3.6 billion, or $6.82 per diluted share, compared with $5.4 billion, or $9.63 per diluted share, for the full year of 2024. Adjusted earnings for the full year of 2025 were $4.0 billion, or $7.49 per diluted share, compared with $4.1 billion, or $7.21 per diluted share, in 2024. For the full year, the average exchange rate was 149.32, or 1.1% stronger than the rate of 150.97 a year ago. Excluding the positive impact of $0.04 per share from the stronger yen/dollar exchange rate, adjusted earnings per diluted share increased 3.5% to $7.46 for the full year of 2025.
Shareholders' equity excluding AOCI (or adjusted book value*) was $28.0 billion, or $54.06 per share at December 31, 2025, compared with $29.1 billion, or $52.87 per share, at December 31, 2024. Adjusted book value excluding foreign currency remeasurement* was $22.1 billion, or $42.66 per share at December 31, 2025, compared with $23.4 billion, or $42.46 per share, at December 31, 2024. The annualized adjusted return on equity excluding foreign currency remeasurement* in the fourth quarter was 14.5%.
AFLAC JAPAN
In yen terms, Aflac Japan's net earned premiums were ¥252.6 billion for the quarter, or 1.9% lower than a year ago, mainly due to limited pay products reaching paid-up status. Adjusted net investment income decreased 3.9% to ¥97.4 billion, primarily driven by lower floating rate income on the dollar-denominated portfolio and lower variable net investment income partially offset by higher dollar-denominated fixed income due to higher volume. Total adjusted revenues in yen declined 2.4% to ¥351.2 billion. Pretax adjusted earnings in yen for the quarter declined 3.5% on a reported basis to ¥109.8 billion. Pretax adjusted earnings also decreased 4.4% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment was 31.3%, compared with 31.6% a year ago.
For the full year, net earned premiums in yen were ¥1.0 trillion, or 3.9% lower than a year ago. Adjusted net investment income decreased 5.9% to ¥385.8 billion. Total adjusted revenues in yen were down 4.4% to ¥1.4 trillion. Pretax adjusted earnings were ¥513.7 billion, or 2.7% lower than a year ago. As a result, the pretax adjusted profit margin for the Japan segment was 36.7%, compared with 36.0% a year ago.
In dollar terms, net earned premiums decreased 3.0% to $1.6 billion in the fourth quarter. Adjusted net investment income decreased 5.1% to $631 million. Total adjusted revenues declined by 3.6% to $2.3 billion. Pretax adjusted earnings declined 4.7% to $712 million.
For the full year, net earned premiums in dollars were $6.7 billion, or 2.7% lower than a year ago. Adjusted net investment income decreased 4.4% to $2.6 billion. Total adjusted revenues were down 3.1% to $9.4 billion. Pretax adjusted earnings were $3.4 billion, or 1.5% lower than a year ago.
For the quarter, total new annualized premium sales (sales) increased 15.7% to ¥19.9 billion, or $129 million, primarily reflecting continued strong sales of Miraito, the new cancer insurance product. For the full year, sales increased 16.0% to ¥74.4 billion, or $498 million.
AFLAC U.S.
Aflac U.S. net earned premiums increased 4.0% to $1.5 billion in the fourth quarter compared to the prior year, reflecting improved sales. Adjusted net investment income decreased 2.8% to $207 million, primarily due to a reduction in floating rate assets and corresponding rates. Total adjusted revenues were up 3.3% to $1.7 billion. Pretax adjusted earnings were $300 million, 9.1% lower than a year ago, reflecting higher benefits and expenses, partially offset by higher premiums. As a result, the pretax adjusted profit margin for the U.S. segment was 17.4%, compared with 19.7% a year ago.
For the full year, net earned premiums increased 2.9% to $6.0 billion. Adjusted net investment income decreased 2.0% to $830 million. Total adjusted revenues were up 2.4% to $6.9 billion. Pretax adjusted earnings were $1.4 billion, essentially unchanged from a year ago. As a result, the pretax adjusted profit margin for the U.S. segment was 20.6%, compared with 21.1% a year ago.
Aflac U.S. sales increased 3.1% in the quarter to $551 million, primarily benefiting from sales of group voluntary products. For the full year, total new sales increased 3.0% to $1.6 billion.
CORPORATE AND OTHER
For the quarter, total adjusted revenues decreased 4.2% to $272 million compared to the prior year. Total premiums decreased on closed blocks of business. Total benefits and adjusted expenses increased $15 million compared to the prior year primarily due to higher costs pertaining to business operations and higher interest expense, partially offset by lower net benefits and claims. Pretax adjusted earnings were a loss of $31 million, compared with a loss of $4 million a year ago.
For the full year, total adjusted revenues increased 26.8% to $1.3 billion. Pretax adjusted earnings were $101 million, compared with $32 million a year ago.
DIVIDEND AND CAPITAL RETURNED TO SHAREHOLDERS
The board of directors declared the first quarter dividend of $0.61 per share, payable on March 2, 2026 to shareholders of record at the close of business on February 18, 2026.
In the fourth quarter, Aflac Incorporated deployed $800 million in capital to repurchase 7.2 million of its common shares. At the end of December 2025, the company had 114.3 million remaining shares authorized for repurchase.
OUTLOOK
Commenting on the company's results, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos stated: "Aflac delivered solid earnings for the quarter and the year. These results reflect our focused efforts to execute on our strategy of creating long-term value for shareholders.
"Looking at our operations in Japan, I am pleased with Aflac Japan's quarterly sales increase of 15.7% and annual sales increase of 16.0%. These strong results benefited largely from sales of our cancer insurance product Miraito. We continue to promote awareness for third sector protection to new and younger customers through our innovative first sector product Tsumitasu, which was repriced for new policies effective in September. Plus, we launched our new medical policy Anshin Palette in late December and will be promoting all three products in 2026. Overall, I believe we are advancing the right strategy focused on sales of third sector products to new and younger customers to provide them with integrated financial protection and services throughout their different stages of life.
"In the U.S., I continue to be encouraged by our ability to add $1.6 billion in new sales for the year, but more importantly, maintain strong persistency of 79.2%. As a result, we saw an increase of 4.0% in net earned premiums for the fourth quarter and 2.9% for the year. This is part of our focus on more profitable growth through strong underwriting discipline and improved productivity of agents and brokers. We also expect to continue our prudent approach to expense management and maintaining a strong pretax margin.
"We continue to generate strong capital and cash flows while maintaining our commitment to prudent liquidity and capital management. Our investments continue to produce strong net investment income that fits the needs of our operations in Japan, the U.S. and Bermuda. We treasure our 2025 milestone of 43 consecutive years of dividend increases and remain committed to extending this record, supported by our financial strength. Additionally, I am pleased with the Board's decision to increase the first quarter 2026 dividend by 5.2%. We repurchased $800 million in shares for the quarter and $3.5 billion for the year. We intend to continue our balanced approach of investing in growth and driving long-term operating efficiencies."
*See Non-U.S. GAAP Financial Measures section for an explanation of foreign exchange and its impact on the financial statements and definitions of the non-U.S. GAAP financial measures used in this earnings release, as well as a reconciliation of such non-U.S. GAAP financial measures to the most comparable U.S. GAAP financial measures.
ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE:AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than seven decades to millions of policyholders and customers through its subsidiaries in the United States and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force. The company takes pride in being there for its policyholders when they need us most, as well as being included in the World's Most Ethical Companies by Ethisphere for 19 consecutive years (2025) and Fortune's World's Most Admired Companies for 24 years (2025). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021 and has been included in the Dow Jones Sustainability North America Index (2024) for 11 years. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/español. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."
1LIMRA 2024 U.S. Supplemental Health Insurance Total Market Report
A copy of Aflac's financial supplement for the quarter can be found on the "Investors" page at aflac.com.
Aflac Incorporated will webcast its quarterly conference call via the "Investors" page of aflac.com at 8:00 a.m. (ET) on February 5, 2026.
Note: Tables within this document may not foot due to rounding.
AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED, IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
THREE MONTHS ENDED DECEMBER 31,
2025
2024
% Change
Total revenues
$ 4,866
$ 5,403
(9.9) %
Benefits and claims, net
1,902
1,923
(1.1)
Total acquisition and operating expenses
1,392
1,345
3.5
Earnings before income taxes
1,572
2,135
(26.4)
Income taxes
193
233
Net earnings
$ 1,379
$ 1,902
(27.5) %
Net earnings per share, basic
$ 2.65
$ 3.44
(23.0) %
Net earnings per share, diluted
2.64
3.42
(22.8)
Shares used to compute earnings per share (000):
Basic
520,394
552,767
(5.9) %
Diluted
522,493
555,483
(5.9)
Dividends paid per share
$ 0.58
$ 0.50
16.0 %
AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED, IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
TWELVE MONTHS ENDED DECEMBER 31,
2025
2024
% Change
Total revenues
$ 17,164
$ 18,927
(9.3) %
Benefits and claims, net
7,293
7,450
(2.1)
Total acquisition and operating expenses
5,338
5,060
5.5
Earnings before income taxes
4,533
6,417
(29.4)
Income taxes
887
974
Net earnings
$ 3,646
$ 5,443
(33.0) %
Net earnings per share, basic
$ 6.84
$ 9.68
(29.3) %
Net earnings per share, diluted
6.82
9.63
(29.2)
Shares used to compute earnings per share (000):
Basic
532,885
562,492
(5.3) %
Diluted
534,878
565,015
(5.3)
Dividends paid per share
$ 2.32
$ 2.00
16.0 %
AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET
(UNAUDITED, IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)
DECEMBER 31,
2025
2024
% Change
Assets:
Total investments and cash
$ 103,760
$ 105,087
(1.3) %
Deferred policy acquisition costs
9,034
8,758
3.2
Other assets
3,676
3,721
(1.2)
Total assets
$ 116,470
$ 117,566
(0.9) %
Liabilities and shareholders' equity:
Policy liabilities
$ 69,583
$ 77,508
(10.2) %
Notes payable and lease obligations
8,409
7,498
12.1
Other liabilities
8,988
6,462
39.1
Shareholders' equity
29,490
26,098
13.0
Total liabilities and shareholders' equity
$ 116,470
$ 117,566
(0.9) %
Shares outstanding at end of period (000)
518,690
549,964
(5.7) %
NON-U.S. GAAP FINANCIAL MEASURES
This document includes references to the Company's financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.
Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the Japanese yen weakens, translating Japanese yen into U.S. dollars results in fewer U.S. dollars being reported. When the Japanese yen strengthens, translating Japanese yen into U.S. dollars results in more U.S. dollars being reported. Consequently, Japanese yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while Japanese yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company's business is conducted in Japanese yen and never converted into U.S. dollars but translated into U.S. dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).
The company defines the non-U.S. GAAP financial measures included in this earnings release as follows:
Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management's control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring or other items not associated with the normal course of the Company's insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company's insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company's insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively.
Adjusted earnings excluding current period foreign currency impact are computed using the average foreign exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign exchange rate changes. Adjusted ...
