Aflac Incorporated Announces Third Quarter Results, Reports Third Quarter Net Earnings of $1.6 Billion, Declares Fourth Quarter Cash Dividend

COLUMBUS, Ga., Oct. 31, 2022 /PRNewswire/ -- Aflac Incorporated (NYSE: AFL) today reported its third quarter results.

Total revenues were $4.8 billion in the third quarter of 2022, compared with $5.2 billion in the third quarter of 2021. Net earnings were $1.6 billion, or $2.53 per diluted share, compared with $888 million, or $1.32 per diluted share a year ago, reflecting a release of $695 million in deferred taxes in the third quarter.

Net earnings in the third quarter of 2022 included net investment gains of $199 million, or $0.31 per diluted share, compared with net investment losses of $171 million, or $0.25 per diluted share a year ago. The net investment gains were driven by net gains from certain derivatives and foreign currency activities of $173 million and net gains from sales and redemptions of $59 million, both driven by foreign exchange. These net investment gains included a decrease of $22 million in the fair value of equity securities. These gains were partially offset by an increase in the allowance associated with the company's estimate of current expected credit losses (CECL) and impairments of $11 million.

Adjusted earnings* in the third quarter were $725 million, compared with $1.0 billion in the third quarter of 2021, reflecting a decrease of 29.7%. Adjusted earnings per diluted share* decreased 24.8% to $1.15 in the quarter. Adjusted earnings included a variable investment income loss of $40 million from alternative investments, which was $0.11 per share below return expectations. Additionally, adjusted earnings reflects $70 million, or $0.11 per share, of net investment income for a make-whole call of a security in the Japan segment. The weaker yen/dollar exchange rate impacted adjusted earnings per share by $0.08.