Aflac Incorporated has revealed its financial results for the first quarter of 2024, showcasing significant growth and performance improvements.
The company’s total revenues amounted to $5.4 billion, a 12.5% increase compared to the first quarter of 2023, driven by net investment gains. Net earnings stood at $1.9 billion, or $3.25 per diluted share, compared to $1.2 billion, or $1.94 per diluted share, in the same period last year.
Aflac Japan’s net earned premiums in yen were ¥269.9 billion for the quarter, down 6% from the same quarter last year. This decrease was primarily attributed to the impact of previous reinsurance transactions and certain policies reaching paid-up status.
Adjusted net investment income increased by 19.3% to ¥96.6 billion, benefiting from lower hedge costs, favourable yen depreciation on US dollar investments, and higher variable investment income. Overall adjusted revenues in yen terms decreased by 0.4% to ¥367.6 billion.
In yen terms, pretax adjusted earnings saw a 15.6% increase to ¥120.6 billion, reflecting lower benefits and expenses. On a currency-neutral basis, pretax adjusted earnings increased by 9.3%, with the adjusted profit margin rising to 32.8% from 28.2% a year earlier.
In dollar terms, Aflac Japan’s net earned premiums declined by 16.3% to $1.8 billion, while adjusted net investment income rose by 6.1% to $648 million. Total adjusted revenues fell by 11.4% to $2.5 billion, and pretax adjusted earnings increased by 2.8% to $810 million.
New annualised premium sales in Aflac Japan decreased by 5.1% to ¥12.5 billion, or $84 million, primarily due to weaker first-sector sales.
“Looking at our operations in Japan, we have maintained disciplined underwriting and expense management to drive strong pretax profit margins,” said chairman, CEO, and president Daniel P. Amos. “We expect sales campaigns around our 50th anniversary in Japan starting in the second quarter to get us back on track for the year.”
Aflac recently confirmed that it would cancel its pet insurance plans in Japan a little over a year after initiating a joint venture with Trupanion aimed at exploring opportunities in the country.
