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Aflac Q3 revenue misses on Japan segment pressure

By Reuters News


Overview

  • U.S.-Japan supplemental insurer's Q3 revenue fell 31% yr/yr, missing analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Company declared Q4 dividend, marking 44 consecutive years of increases


Outlook

  • Company did not provide specific financial guidance for the current or upcoming periods in its press release


Result Drivers

  • JAPAN SEGMENT PRESSURE - Lower net earned premiums in Japan, mainly due to reinsurance transactions and limited pay products reaching paid-up status, weighed on results

  • HIGHER CLAIMS IN JAPAN - Increased benefits and claims in Japan, driven by lower reserve remeasurement gains, reduced pretax adjusted earnings

  • U.S. SEGMENT GROWTH - U.S. segment benefited from higher premiums, strong persistency, and lower benefits, supporting improved pretax adjusted earnings


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$3.30 bln

$4.12 bln (6 Analysts)

Q3 Adjusted EPS

Beat

$2.43

$1.79 (15 Analysts)

Q3 EPS

$0.61

Q3 Adjusted Net Income

Beat

$1.20 bln

$916.49 mln (9 Analysts)

Q3 Net Income

$303 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and 4 "sell" or "strong sell"

  • The average consensus recommendation for the life & health insurance peer group is "hold"

  • Wall Street's median 12-month price target for Aflac Incorporated is $115.50, about 6.9% below its November 3 closing price of $124.04

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago


Reuters Recommended Reads

  • Nov 3 - Prudential Q3 profit, operating income decline due to Japan sales suspension

  • Nov 3 - AIG Q3 net premiums written rise on commercial, personal insurance growth

  • Nov 3 - Insurer American Financial Group's Q3 adj EPS beats on underwriting and premium growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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