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AFLAC (MX:AFL)
:AFL
Mexico Market
EarningsQ2 2026 Earnings Report

AFLAC (AFL) Q2 2026 Earnings Report

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MX:AFL Q2 2026 EPS Results

Actual EPS$31.67
Consensus EPS$31.92
Beat/MissMissed by -$0.25
One Year Ago EPS$32.21

MX:AFL Q2 2026 Revenue Results

Actual Revenue$74.50B
Expected Revenue$74.96B
Beat/MissMissed by -$458.41M
YoY Revenue Growth-1.03%

Earnings Announcement Details

QuarterQ2 2026
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
MX:AFL Upcoming Earnings
AFLAC's next earnings date is estimated for November 4, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:AFL Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 06, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed a generally positive tone: management highlighted solid capital ratios, strong shareholder returns, active investment portfolio repositioning expected to boost recurring income, and product momentum in both Japan (Tsumitasu, Anshin Palette) and U.S. group/dental & vision channels. Offsetting issues were modest — near-term sales comparisons in Japan versus a strong 2025 quarter, a small decline in adjusted book value per share, some investment income shortfalls, elevated lapse/reissue activity on new Japan products and higher U.S. group disability claims. Management maintained constructive outlooks for capital deployment, reserve/reinsurance actions and premium growth (2025–2027 net earned premium CAGR guidance of 3%–6%), suggesting that positives outweigh the contained challenges.
Company Guidance
Guidance highlights: management expects Aflac Japan sales to exceed 2025 and now sees Japan’s full‑year benefit ratio at the high end of its 60%–63% guidance (ytd 63.4%; Q2 Japan benefit ratio 64%), with Japan persistency 92.7% (Q2) and U.S. persistency 79.4%; company-level net earned premium growth in 2026 is expected to be just below the prior 3%–6% guidance (U.S. Q2 net earned premium +2.3%; Japan Q2 net earned premiums −3.7% in yen, underlying −1.4%), while the 2025–2027 net earned premium CAGR is still expected to be 3%–6%. Financial targets and capital metrics cited include adjusted EPS up ~1.1% ex‑FX to about $1.80 (reported adjusted ~$1.75; net EPS $1.63), adjusted book value per share −4.1% ex‑FX, adjusted ROE 12.7% (16.6% ex‑FX), pretax margins Japan 34.3% and U.S. 20.9%, expense ratios Japan 20.2% and U.S. 36.1%, U.S. benefit ratio 49.5% (Q2, +220 bps YoY), Aflac Inc. unencumbered liquidity $3.3B ($2.3B above $1B minimum), adjusted leverage 21.8% (target 20%–25%), estimated ESR 226% (240% with USP), combined RBC slightly above 600%, and continued capital returns ($1.3B to shareholders in Q2 — $983M buybacks and $309M dividends; $2.6B YTD); portfolio actions included $4.8B repositioned and an anticipated annualized NII uplift of >$50M.
Adjusted EPS Growth (Excluding FX)
Adjusted earnings per diluted share rose 1.1% year-over-year to $1.80 excluding the effect of foreign currency; GAAP net earnings per diluted share reported at $1.63 (adjusted per Dan: $1.75).
Strong Capital Position and Shareholder Returns
Estimated regulatory ESR of 226% (240% including USP); combined RBC slightly above 600%; adjusted leverage 21.8% (within 20%-25% target). Returned ~$1.3 billion to shareholders in Q2 (repurchases $983M + dividends $309M) and ~$2.6 billion in the first six months.
Aflac Japan product momentum and persistency
First-half Japan sales up 7% year-to-date with strong sales of Tsumitasu (first-sector) and Anshin Palette (medical); Tsumitasu accounts for ~20% of sales and is helping cross-sell third-sector products. Premium persistency remained solid at 92.7%.
Aflac U.S. premium and product momentum
Aflac U.S. generated a 2.6% increase in year-over-year sales and net earned premium increased 2.3% in Q2; premium persistency improved to 79.4% (up 20 bps). Group products showed strength (group life/absence/disability + dental & vision up ~7.1% for Q2; earned premium for group products up ~13%), and dental & vision sales up 47% in Q2.
Expense and Margin Discipline
Japan expense ratio improved to 20.2% (down 40 bps year-over-year) despite inflationary pressures; U.S. expense ratio improved to 36.1% (down 20 bps). Japan pretax margin 34.3% (up 230 bps YoY); U.S. pretax margin remained solid at 20.9%.
Active Investment Repositioning and Yield Pickup
Repositioned approximately $4.8 billion of the investment portfolio through switch trades to capture higher yields and FX gains; project to increase net investment income by over $50 million on an annualized run-rate with limited capital impact. Private credit (middle market loan) portfolio continuing to deliver strong risk-adjusted yields.
Controlled, Expected Asset Impairments
Recorded modest impairments consistent with expectations: U.S. statutory impairments $11M + $1M valuation allowance on mortgage loans; Japan FSA impairments JPY 15.8B + JPY 33M valuation allowance for transitional real estate loans — noted as within expectations and with limited regulatory impact.

MX:AFL Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 04, 2026
2026 (Q3)
32.52 / -
45.057―
2026 (Q2)
31.92 / 31.67
32.21-1.69% (-0.54)
2026 (Q1)
32.46 / 31.67
30.0385.42% (+1.63)
2025 (Q4)
30.80 / 47.77
28.22969.23% (+19.54)
2026 (Q4)
30.64 / 28.41
28.2290.64% (+0.18)
2025 (Q3)
32.06 / 45.06
39.08615.28% (+5.97)
2025 (Q2)
30.80 / 32.21
33.114-2.73% (-0.90)
2025 (Q1)
30.16 / 30.04
30.0380.00% (0.00)
2024 (Q4)
29.37 / 28.23
23.16221.88% (+5.07)
2024 (Q3)
30.56 / 39.09
33.29517.39% (+5.79)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed