Aflac Incorporated reported a decrease in total revenues for the fiscal year 2025, amounting to $17.2 billion, a 9.3% decline compared to $18.9 billion in 2024. This downturn was primarily attributed to net investment losses of $572 million in 2025, contrasting with net investment gains of $1.3 billion in the previous year. The company's net earnings also experienced a decrease, reaching $3.6 billion, or $6.82 per diluted share, compared to $5.4 billion, or $9.63 per diluted share, in 2024. These figures reflect the impact of challenging conditions in the global capital markets on Aflac's investment portfolio.
Despite the overall decline in revenue and net earnings, Aflac's adjusted earnings for 2025 were $4.0 billion, or $7.49 per diluted share, slightly higher than the $4.1 billion, or $7.21 per diluted share, reported in 2024. The company also actively managed its capital by repurchasing $3.5 billion, or 33.0 million, of its common shares during the year. As of December 31, 2025, Aflac had 114.3 million shares remaining authorized for repurchase, indicating a continued commitment to returning value to shareholders. The average yen/dollar exchange rate in 2025 was 149.32, a 1.1% strengthening compared to the 2024 rate of 150.97, which positively impacted adjusted earnings per diluted share by $0.04.
Operationally, Aflac Japan's new annualized premium sales increased by 16.0% in yen terms, driven by strong sales of the new cancer insurance product, Miraito, and the Tsumitasu product. Aflac U.S. also saw an increase in new annualized premium sales, primarily driven by sales of group products. The company's human capital management initiatives included the launch of Aflac Leadership Academy in Japan and partnerships with colleges and universities in the U.S. to attract and develop talent. As of December 31, 2025, Aflac Japan was represented by approximately 6,300 sales agencies, with approximately 112,000 licensed sales associates, while Aflac U.S. had an average of approximately 5,300 actively producing agents, including brokers.
Looking ahead, Aflac's 2026 outlook includes expectations for Aflac Japan to generate a benefit ratio in the range of 60% to 63% and an expense ratio in the range of 20% to 23%. Aflac U.S. is expected to generate a benefit ratio in the range of 48% to 52% and an expense ratio in the range of 36% to 39%. The company aims to maintain strong capital ratios in both Aflac Japan and Aflac U.S., with target economic solvency ratio (ESR) and risk-based capital (RBC) ranges of 170% to 230% and 350% to 450%, respectively. These targets are consistent with Aflac's risk management practices and commitment to shareholder dividends.
About AFLAC INC
Aflac Incorporated is a leading provider of supplemental health and life insurance, primarily serving customers in Japan and the U.S. Its key offerings include cancer and medical insurance products designed to alleviate financial stress during health crises. With a focus on innovation and digital sales, Aflac targets a growing market of consumers facing rising out-of-pocket medical costs. The company is enhancing its product portfolio and expanding distribution channels to meet evolving customer needs.
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