$AFL · AFLAC INC
Aflac reported Q3 2026 results: total revenues fell 31.0% to $3.27B, net earnings dropped 81.5% to $303M ($0.61 diluted EPS), and adjusted earnings declined 8.5% to $1.2B ($2.43 adjusted diluted EPS, down 2.4%). The decline was driven by $1.1B net investment losses from strategic portfolio repositioning, including $842M in sales/redemption losses and a $51M tax capital loss valuation allowance. The board declared a Q4 dividend of $0.61 per share, marking 44 consecutive years of increases.
- Net earnings fell 81.5% to $303M, or $0.61 diluted EPS, from $1.6B a year ago.
- Adjusted EPS declined 2.4% to $2.43, with adjusted earnings down 8.5% to $1.2B.
- Net investment losses totaled $1.1B, including $842M in sales/redemption losses.
- Aflac U.S. pretax adjusted earnings rose 31.5% to $493M; Japan pretax adjusted earnings fell 15.2% in yen.
- Q4 dividend of $0.61 declared, marking 44 consecutive years of increases.
Extended-hours last trade $125.28, essentially flat (-0.02% vs regular close, +0.07% vs price-at-filing), suggesting investors largely shrugged off the headline net-earnings drop as non-cash repositioning noise.
Aflac's headline earnings collapse masks a deliberate portfolio repositioning, while adjusted results and the 44-year dividend streak show underlying stability.
The weak yen (158.49 vs 147.68 a year ago) continues to pressure Aflac Japan's dollar-reported results, a recurring headwind for U.S.-listed insurers with large Japanese operations.
The $1.1B net investment losses and $51M tax capital loss valuation allowance reflect realized repositioning costs; a $5.0B net unrealized loss on investment securities and derivatives also weighs on book value.