Sector: Financials|Industry: Insurance - Life|Market Cap: $55.76B|Employees: 12.8K
Aflac Incorporated is a supplemental health and life insurance provider, operating primarily in the U.S. and Japan. The company's core business model revolves around offering supplemental insurance products, with a focus on cancer and medical insurance in Japan, and accident, disability, and critical care insurance in the U.S. Aflac's competitive advantages include a well-known brand, a large distribution network, and low-cost operations, particularly in Japan.
Total revenues decreased to $3.4 billion from $5.4 billion year-over-year, primarily driven by net investment losses of $963 million compared to net investment gains of $951 million in the prior year. Net earned premiums remained relatively stable, decreasing slightly from $3.456 billion to $3.381 billion.
Net earnings decreased substantially to $29 million, or $0.05 per diluted share, compared to $1.9 billion, or $3.25 per diluted share, in the prior year. This decline is primarily attributable to the aforementioned net investment losses.
Aflac Japan's adjusted revenues decreased from $2.473 billion to $2.272 billion, while Aflac U.S.'s adjusted revenues slightly increased from $1.699 billion to $1.721 billion. This indicates a weaker performance in the Japanese market compared to a slight improvement in the U.S. market.