$AFL · AFLAC INC
Aflac's 10-Q for Q3 FY2026 (ended September 30, 2026) shows total revenues of $3.271B, down 31.0% year over year, and net earnings of $303M versus $1,639M a year earlier. The decline was driven by net investment losses of $1,072M in the quarter, compared with $275M in gains in Q3 2025. GAAP diluted EPS was $0.61 versus $3.08; adjusted EPS was $2.43. Policy liabilities fell 8.7% to $63.5B, and total shareholders' equity slipped to $29.28B from $29.49B at year-end 2025.
- Net investment losses of $1,072M in Q3 2026 versus $275M in gains a year earlier drove the earnings drop.
- Total revenues fell 31.0% year over year to $3.271B.
- GAAP diluted EPS was $0.61 versus $3.08; adjusted EPS was $2.43.
- Unrealized losses on fixed-maturity securities widened to $4,995M in AOCI from $1,809M at year-end 2025.
- Policy liabilities declined 8.7% to $63.5B, with Aflac Japan down 7.7% and Aflac U.S. down 8.3%.
AFL traded at $126.62, up 1.06% on the day but down 0.28% since the filing, suggesting the market largely shrugged off the investment-loss-driven earnings decline.
Aflac's core insurance operations held up, but a $1.07B swing in investment results and mounting unrealized bond losses cut net earnings 82% year over year.
Aflac's results reflect the broader pressure on insurers' investment portfolios from rising rates, with unrealized fixed-maturity losses compressing book value even as core underwriting remains stable.
Rising interest rates drove $4,924M in nine-month unrealized losses on fixed-maturity securities, pressuring AOCI and shareholders' equity. Foreign currency exposure to the yen/dollar rate remains a key risk for Aflac Japan results.