Aflac(AFL)2025-04-30 20:43Financial Performance - Aflac Japan reported adjusted earnings of $722 million for Q1 2025, a decrease of 10.9% compared to $810 million in Q1 2024[8]. - Aflac U.S. achieved adjusted earnings of $358 million in Q1 2025, reflecting a slight increase of 0.6% from $356 million in Q1 2024[8]. - The company's total pretax adjusted earnings for Q1 2025 were $1,123 million, down 3.4% from $1,163 million in Q1 2024[8]. - Net earnings for Q1 2025 were reported at $29 million, a significant decline of 98.5% compared to $1,879 million in Q1 2024[8]. - The diluted earnings per share for Q1 2025 were $0.05, a drastic drop from $3.25 in Q1 2024, indicating a 98.5% decrease[8]. - Total revenues for 2023 decreased to $18,701 million, a decline of 37.5% compared to 2022[11]. - Net earned premiums for 2023 were $14,123 million, down 2.2% from $14,901 million in 2022[11]. - Net investment income increased to $3,811 million in 2023, compared to $3,656 million in 2022, reflecting a growth of 4.3%[11]. - Net earnings for 2023 were $4,659 million, reflecting a slight increase from $4,418 million in 2022[11]. - The company expects net earnings to reach $5,443 million in 2024, representing a projected growth of 16.7%[11]. Investment and Assets - Aflac's investment results for Q1 2025 included adjusted net investment losses of $924 million, compared to gains of $1,009 million in Q1 2024[8]. - Total assets decreased from $165.086 billion in 2020 to $126.724 billion in 2023, representing a decline of approximately 23%[15]. - Total liabilities decreased from $131.527 billion in 2020 to $104.739 billion in 2023, a reduction of about 20%[15]. - Total invested assets as of March 31, 2023, amount to $104.742 billion, down from $111.219 billion in 2022[28]. - Fixed Maturity Securities decreased to $88.508 billion in 2023 from $94.525 billion in 2022[28]. - The total portfolio value is projected to be $100.091 billion in 2024, up from $94.887 billion in 2023[28]. Shareholder Metrics - Adjusted Book Value Per Share for 2023 is $47.55, reflecting a 10.1% increase from the previous year[20]. - Adjusted Earnings Per Share (EPS) for 2023 is $6.23, representing a 9.9% growth year-over-year, with an adjusted EPS excluding foreign currency impact of $6.43, a 13.4% increase[25]. - The projected net earnings per diluted share for 2024 is $9.63, up from $7.78 in 2023, indicating a growth of 23.7%[12]. - The company expects an adjusted EPS of $7.21 for 2024, indicating a 15.7% growth[25]. Operational Efficiency - Total acquisition and operating expenses for 2023 were $5,228 million, a decrease of 4.1% compared to $5,384 million in 2022[11]. - The company reported a net investment gain of $590 million in 2023, compared to a gain of $363 million in 2022[11]. - The combined ratio for 2023 was 77.3%, indicating a 22.7% pretax profit margin[60]. - The persistency ratio for 2023 was 78.6%, showing a slight decrease from 2022[60]. Future Projections - The company plans to maintain a focus on market expansion and new product development in the upcoming years[15]. - The company anticipates a return on equity of 22.6% for 2024[23]. - The company expects a further decrease in net earned premiums to $1,050 million in 2024, representing a 6.9% decline[78]. - The company anticipates total net earned premiums to increase to $680 million in 2024, representing a growth of 70% from 2023[90]. Market and Sales - New annualized premium sales in 2023 amounted to $1,558 million, representing a 5.0% increase year-over-year[63]. - The sales force in 2023 consisted of 11,566 recruited agents, with an average weekly productivity of 249,663[67]. - Aflac Japan's annualized premium sales for 2023 were ¥1,246.4 billion, down 4.2% from 2022[81]. - New annualized premium sales in Aflac Japan for 2023 increased by 8.8% to ¥52.234 billion[81]. Tax and Accounting Changes - Aflac's effective tax rate for Q1 2025 was 80.3%, compared to 13.4% in Q1 2024[8]. - The company adopted the LDTI accounting standard as of January 1, 2023, impacting the presentation of deferred profit liability[3].