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AFL NYSE· Aflac Inc
Earnings report Q3 2023

Aflac Reports $5.0 Billion in Total Revenues for Q3 2023

Segments of revenue

Aflac's total revenues for the third quarter of 2023 amounted to $5.0 billion, compared to $4.7 billion in the same quarter of the previous year. The breakdown of revenues by segment is as follows:

  1. Aflac Japan: Aflac Japan generated $2.66 billion in adjusted revenue for Q3 2023. This includes $1.97 billion in net earned premiums, $679 million in adjusted net investment income, and $8 million in other income.

  2. Aflac U.S.: Aflac U.S. reported $1.66 billion in adjusted revenue for the third quarter of 2023. This includes $1.42 billion in net earned premiums, $209 million in adjusted net investment income, and $33 million in other income.

  3. Corporate and other: The Corporate and other segment contributed $115 million in adjusted revenue for Q3 2023.

Strengths

Aflac demonstrated solid financial performance in the latest quarter, with total revenues reaching $5.0 billion. The increase in revenues can be attributed to the performance of both Aflac Japan and Aflac U.S. The Aflac Japan segment generated $2.66 billion in adjusted revenue, driven by $1.97 billion in net earned premiums. Aflac U.S. also performed well, contributing $1.66 billion in adjusted revenue, supported by $1.42 billion in net earned premiums. The company's management highlighted the positive impact of increased U.S. interest rates on the Aflac U.S. new money yield, which contributed to the growth in revenues.

Challenges

Despite the overall positive performance, Aflac faced challenges in the form of net investment gains (losses). The company reported $514 million in net investment gains for Q3 2023, compared to $236 million in the same quarter of the previous year. This indicates volatility in the investment market, which could impact the company's financial results.

Noteworthy

It is worth noting that Aflac's total revenues for the first nine months of 2023 amounted to $14.9 billion, slightly lower than the $15.2 billion reported in the same period of the previous year. This indicates a slight decline in revenue over the nine-month period.

Summary

Aflac delivered a solid performance in the third quarter of 2023, with total revenues of $5.0 billion. The company's strong performance was driven by the contributions from both Aflac Japan and Aflac U.S. However, challenges in the form of net investment gains (losses) were observed. Despite a slight decline in total revenues for the first nine months of 2023 compared to the previous year, Aflac remains well-positioned in the insurance industry.

Source documents

Form 10-Q  filed on Nov 02, 2023
91 pages scanned

Reference data

Company financials Q3 revenue 3.78B
Analyst estimates Q3 EPS missed by -14.04%
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