Aflac Incorporated: Will Its Reinsurance & Capital Efficiency Help Up Its Game?

In the fourth quarter of 2024, Aflac Incorporated reported strong earnings, with net earnings per
diluted share rising by 23.8% to $9.63, and adjusted earnings per diluted share increasing by
15.7% to $7.21. This positive performance was largely driven by the company’s operations in
Japan, which accounted for over 70% of pretax adjusted earnings. Aflac Japan enjoyed a stable
premium persistency rate of 93.4% and reported a 15.5% growth in pretax adjusted earnings. Total
sales in Japan rose by 5.6% year-over-year, including a 9% uptick in the fourth quarter, boosted by
strong sales of the Tsumitas product. This product is designed to appeal to younger customers,
further aligning with Aflac’s strategic focus on acquiring the younger demographic in Japan,
thereby enhancing future growth prospects.