On November 1, 2023, Aflac Inc (AFL, Financial) released its third-quarter earnings report. The company reported total revenues of $5.0 billion, compared to $4.7 billion in Q3 2022. Despite a slight decrease in net earnings from $1.8 billion in Q3 2022 to $1.6 billion in Q3 2023, the company showed promising growth in adjusted earnings, which increased by 20.3% from $910 million in Q3 2022 to $1.1 billion in Q3 2023.
Financial Highlights
Net earnings per diluted share for Q3 2023 were $2.64, compared to $2.82 a year ago. The company's net investment gains for the quarter were $423 million, driven by net gains on certain derivatives and foreign currency activities of $381 million. Adjusted earnings per diluted share increased 27.8% to $1.84 in the quarter.
As of the end of September 2023, total investments and cash were $111.3 billion, compared to $114.5 billion at the end of September 2022. Shareholders’ equity was $22.7 billion, or $38.63 per share, at the end of Q3 2023, compared to $19.9 billion, or $31.97 per share, at the end of Q3 2022.
Performance Analysis
Aflac Inc (AFL, Financial) reported a decline in net earnings, but the company's adjusted earnings showed a significant increase, reflecting a strong operational performance. The company's decision to increase the Q1 2024 dividend by 19% demonstrates confidence in its financial stability and future growth prospects.
CEO Daniel P. Amos commented on the company’s results, stating:
Aflac delivered very strong earnings for both the quarter and the first nine months. We have continued to actively concentrate on numerous initiatives in the U.S. and Japan around new products and distribution strategies to set the stage for future growth."
The company's commitment to returning capital to shareholders was evident in the repurchase of 9.4 million of its common shares during Q3 2023, deploying $700 million in capital.
Outlook
Despite the challenges posed by exchange rate fluctuations and market movements, Aflac Inc (AFL, Financial) remains optimistic about its future growth. The company intends to continue its balanced approach of investing in growth initiatives and driving long-term operating efficiencies while preserving the strength of underlying cash flows.
Explore the complete 8-K earnings release (here) from Aflac Inc for further details.
