Aflac Integrated AFL reported third-quarter 2025 adjusted earnings per share (EPS) of $2.49, which outpaced the Zacks Consensus Estimate by 38.3%. The underside line improved 15.3% yr over yr.
Adjusted revenues got here in at $4.7 billion, which surged 60.7% yr over yr. The highest line beat the consensus mark by 5.6%.
The quarterly outcomes gained on sturdy funding earnings and improved U.S. phase efficiency, supported by larger gross sales of group life and incapacity merchandise. The stable gross sales of Miraito additionally bolstered Japan’s new premium gross sales. Nonetheless, the upside was partly offset by rising acquisition and working bills.
Aflac Integrated Worth, Consensus and EPS Shock
Aflac Integrated price-consensus-eps-surprise-chart | Aflac Integrated Quote
AFL’s Q3 Efficiency
Adjusted internet funding earnings superior 7.7% yr over yr to $1 billion within the quarter below overview.
Whole internet advantages and claims got here in at $1.4 billion, which declined 10% yr over yr. Whole acquisition and working bills elevated 3.8% yr over yr to $1.3 billion.
Pre-tax earnings elevated practically 22-fold yr over yr to $2 billion.
Inside Aflac’s Segments
Aflac Japan: The phase’s adjusted revenues dipped 1.8% yr over yr to $2.3 billion within the third quarter and fell in need of the Zacks Consensus Estimate of $2.4 billion. Web earned premiums of $1.66 billion slipped 2.7% yr over yr and missed the consensus mark of $1.73 billion.
Adjusted internet funding earnings inched up 0.5% yr over yr to $665 million. The unit’s pre-tax adjusted earnings got here in at $1.2 billion, which rose 13.3% yr over yr and surpassed the consensus mark of $814 million.
New annualized premium gross sales superior 11.8% yr over yr to $133 million on the again of stable gross sales of Miraito, its most cancers insurance coverage product.
Aflac U.S.: Adjusted revenues of $1.73 billion grew 2.6% yr over yr however marginally missed the Zacks Consensus Estimate of $1.75 billion. Whole internet earned premiums superior 2.5% yr over yr to $1.5 billion, attributable to larger gross sales. The metric marginally missed the consensus mark of $1.52 billion.
Adjusted internet funding earnings got here in at $214 million, which inched up 1.9% yr over yr within the quarter below overview. Pretax adjusted earnings of the phase improved 7.1% yr over yr to $375 million on the again of improved premiums and decrease advantages. The metric beat the consensus mark of $344 million.
The unit’s gross sales totaled $390 million, which grew 2.8% yr over yr, ensuing from larger gross sales of group life and incapacity merchandise.
Monetary Place (As of Sept. 30, 2025)
Aflac exited the third quarter with complete money and money equivalents of $6.8 billion, which rose 8.7% from the 2024-end stage. Whole belongings of $122.3 billion elevated 4% from the determine at 2024-end.
Adjusted debt got here in at $8 billion, up 10.7% from the determine as of Dec. 31, 2024. Adjusted debt to adjusted capitalization, excluding collected different complete earnings, got here in at 22%, which deteriorated 230 foundation factors (bps) from the 2024-end stage. Whereas the corporate has no debt maturities in lower than a yr, complete debt maturities value $3.3 billion are anticipated throughout the subsequent 5 years.
Whole shareholders’ fairness of $28.7 billion superior 9.9% from the 2024-end determine.
Adjusted ebook worth per share elevated 4.1% yr over yr to $53.33. Adjusted return on fairness, excluding overseas forex impacts, was 22.1%, which improved 190 bps yr over yr.
AFL’s Capital Deployment
Aflac purchased again 9.3 million shares value $1 billion within the third quarter. It had 121.6 million shares left for buyback as of Sept. 30, 2025.
Administration introduced dividends of 58 cents per share for the fourth quarter. The dividend shall be paid out on Dec.1, 2025, to shareholders of report as of Nov. 19.
AFL’s 2025 Outlook
Aflac at the moment anticipates a profit ratio of 58-60% for the Aflac Japan unit in 2025, in contrast with the sooner steering of 64-66%. The metric for the Aflac U.S. unit continues to be projected inside 48-52% and is prone to keep on the decrease finish of the estimated vary.
The expense ratio for Aflac Japan is reiterated to be 20-23%. The metric is prone to keep on the decrease finish of the estimated vary for 2025. The identical for Aflac U.S. is reiterated inside 36-39% and is projected to remain on the mid to higher finish of the anticipated vary.
Underlying earned premiums are prone to witness a year-over-year decline of 1-2% for the Japan unit in 2025.
The pretax revenue margin for Aflac Japan is estimated at 35-38%, in contrast with the earlier view of 30-33%. The identical for Aflac U.S. continues to be estimated at 17-20% for 2025 and is anticipated to remain on the higher finish of the vary.
AFL’s Zacks Rank
Aflac at the moment carries a Zacks Rank #3 (Maintain). You may see the whole listing of immediately’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Efficiency of Different Insurers
Of the insurance coverage trade gamers which have reported third-quarter 2025 outcomes thus far, the bottom-line outcomes of Cincinnati Monetary Company CINF, RenaissanceRe Holdings Ltd. RNR and RLI Corp. RLI beat the respective Zacks Consensus Estimate.
Cincinnati Monetary reported third-quarter 2025 working earnings of $2.85 per share, which surpassed the Zacks Consensus Estimate by 41.8%. The underside line elevated 100.7% yr over yr. Whole working revenues within the quarter below overview had been $2.9 billion, which improved 12.1% yr over yr. The highest line beat the consensus mark by 0.8%. Web written premiums climbed 9% yr over yr to $2.5 billion. Funding earnings, internet of bills, elevated 14% yr over yr to $295 million.
In its property & casualty (P&C) insurance coverage enterprise, CINF witnessed an underwriting earnings of $293 million, which elevated practically fivefold from the year-ago interval. The mixed ratio, a measure of underwriting profitability, improved 920 bps yr over yr to 88.2. Within the Business Traces Insurance coverage unit, complete revenues of $1.2 billion elevated 8% yr over yr, pushed by an 8% rise in premiums earned.
RenaissanceRe’s third-quarter 2025 working earnings of $15.62 per share outpaced the Zacks Consensus Estimate by a whopping 64.6%. The underside line soared 52.7% yr over yr. Whole working revenues of $2.9 billion tumbled 4.5% yr over yr. The highest line missed the consensus mark by 3.7%. Gross premiums written slipped 3.2% yr over yr to $2.3 billion. Web premiums earned of $2.4 billion declined 5.8% yr over yr. Web funding earnings got here in at $438.4 million, which grew 3.4% yr over yr.
RenaissanceRe reported an underwriting earnings of $770.2 million within the third quarter, which jumped 95.6% yr over yr. The mixed ratio improved 1,640 bps yr over yr to 68.4%. The Property Phase recorded gross premiums written of $733.3 million within the third quarter, which fell 7.3% yr over yr. It generated an underwriting earnings of $791.5 million, which doubled yr over yr. The mixed ratio improved 4,480 bps yr over yr to fifteen.5%.
RLI Corp. reported third-quarter 2025 working earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 33.9%. The underside line elevated 27.7% from the prior-year quarter. Working revenues within the reported quarter had been $449 million, up 5.3% yr over yr, pushed by 4.7% larger internet premiums earned and 12.5% larger internet funding earnings. The highest line beat the Zacks Consensus Estimate by 0.5%.
Gross premiums written of $562.3 million elevated 0.5% yr over yr. Web funding earnings elevated 12% yr over yr to $41.3 million. Our estimate was $42.4 million. The funding portfolio’s complete return was 3% within the quarter. Underwriting earnings of $60.5 million elevated 48.6% yr over yr. The mixed ratio improved 450 bps yr over yr to 85.1.
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RLI Corp. (RLI) : Free Inventory Evaluation Report
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RenaissanceRe Holdings Ltd. (RNR) : Free Inventory Evaluation Report
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