Aflac Q1 Earnings and Revenue Miss Estimates Amid Weaker Yen and Lower Net Earned Premiums in Japan

Aflac's Q1 earnings and revenue missed consensus expectations due to weak yen and lower net earned premiums in Japan. The insurer's adjusted EPS was $1.66, below the average analyst estimate. Aflac's stock fell 4.0% in after-hours trading.

Aflac (NYSE: AFL) reported its first-quarter 2025 earnings on April 30, 2025, after the closing bell, with the insurer's results falling short of Wall Street expectations. The company's adjusted EPS of $1.66 missed the average analyst estimate, leading to a 4.0% decline in its stock price during after-hours trading [1].

The primary factors contributing to the earnings miss were weak yen and lower net earned premiums in Japan. Aflac's Japan operations saw a decline in net earned premiums, which significantly impacted the company's overall financial performance. The Zacks Consensus Estimate for total net earned premiums indicates a 2.5% year-over-year decline, further highlighting the challenges faced by the company in its Japanese operations [2].

Despite the earnings miss, Aflac's adjusted earnings reached $906 million, down 5.7% from Q1 2024, indicating a more stable operational performance. The company's U.S. segment showed modest growth with premiums up 1.8% and sales increasing 3.5%. However, the Japanese segment saw a 5.0% decline in net earned premiums in yen terms and a 31.8% profit margin compression [3].

Aflac maintained its capital return program, repurchasing $900 million in shares (8.5 million shares) during Q1 and declaring a quarterly dividend of $0.58 per share. The company's strong capital position, with shareholders' equity at $26.3 billion, reflects its resilience in the face of earnings challenges.

Investors should closely monitor Aflac's upcoming earnings reports and assess the impact of potential geopolitical risks and currency fluctuations on the company's financial performance.

References:
[1] https://seekingalpha.com/news/4438297-aflac-q1-earnings-revenue-trail-consensus-amid-weak-yen-lower-net-earned-premiums-in-japan
[2] https://www.tradingview.com/news/zacks:ace022824094b:0-aflac-gears-up-for-q1-earnings-will-afl-quack-or-crack/
[3] https://www.stocktitan.net/news/AFL/aflac-incorporated-announces-first-quarter-results-reports-first-iufufkbkl04i.html