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• Net Earnings Per Diluted Share: $0.05, significantly impacted by net investment losses.

• Adjusted Earnings Per Diluted Share: $1.66, unchanged from the first quarter of 2024.

• Japan Sales Increase: 12.6% year-over-year.

• Cancer Insurance Sales Increase in Japan: 6.3%.

• US Sales Increase: 3.5% year-over-year.

• Capital Deployed for Share Repurchase: $900 million for 8.5 million shares.

• Dividends Paid: $317 million in Q1 2025.

• Total Return to Shareholders: $1.2 billion in the first quarter of 2025.

• Adjusted Book Value Per Share Increase: 2.2%, excluding foreign currency remeasurement.

• Adjusted ROE: 12.7%, 15.6% excluding foreign currency remeasurement.

• Japan Net Earned Premiums Decline: 5% for the quarter.

• Japan Total Benefit Ratio: 65.8%, down 120 basis points year-over-year.

• Japan Expense Ratio: 19.6%, up 160 basis points year-over-year.

• US Net Earned Premium Increase: 1.8%.

• US Persistency Rate: 79.3%, up 60 basis points year-over-year.

• US Total Benefit Ratio: 47.7%, up 120 basis points from Q1 2024.

• US Expense Ratio: 37.6%, down 110 basis points year-over-year.

• Unencumbered Holding Company Liquidity: $4.3 billion.

• Capital Ratios: SMR above 950%, estimated regulatory ESR above 250%, combined RBC estimated greater than 600%.

• Leverage Ratio: 20.7%, within target range of 20% to 25%.

• Warning! GuruFocus has detected 5 Warning Signs with ICLR.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Aflac Inc (NYSE:AFL) reported a 12.6% year-over-year sales increase in Japan, driven by strong cancer insurance sales.

• The company maintained strong premium persistency in Japan at 93.8%, reflecting customer recognition of product value.

• Aflac Inc (NYSE:AFL) deployed $900 million in capital to repurchase 8.5 million shares, demonstrating strong capital management.

• The company has a track record of 42 consecutive years of dividend growth, returning $1.2 billion to shareholders in Q1 2025.

• Aflac Inc (NYSE:AFL) reported a 3.5% year-over-year increase in U.S. sales, with strong performance in group life and disability segments.

Negative Points

• Net earnings per diluted share were significantly impacted by net investment losses compared to gains in the previous year.

• Aflac Japan's net earned premiums declined by 5% in the quarter, with underlying earned premiums down 1.4%.

• The U.S. total benefit ratio increased by 120 basis points year-over-year, driven by business mix and lower remeasurement gains.

• Adjusted net investment income in yen terms was down 7.6% due to lower floating rate income and asset transfers.

• The expense ratio in Japan increased by 160 basis points year-over-year, primarily due to higher technology expenses.