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Aflac’s Next Big Catalyst — Japan Margins, Higher Investment Income & Capital Returns Converge!

Aflac Incorporated reported second-quarter 2026 net earnings of $1.63 per diluted share and adjusted earnings of $1.75 per diluted share, extending momentum from the first quarter and reflecting continued execution across Japan and the U.S. In Japan, second-quarter sales declined 5.6% against a strong prior-year period that benefited from the Miraito cancer insurance launch. However, year-to-date sales increased 7% and are expected to exceed full-year 2025 levels. Growth was supported by newer products including Tsumitasu savings-type life insurance and Anshin Palette medical insurance. Persistency in Japan remained strong at 92.7%. The expense ratio improved 40 basis points to 20.2%, while the benefit ratio declined 250 basis points to 64%. Reserve remeasurement gains were below expectations, but pretax margin increased 230 basis points to 34.3%. Aflac also increased its internal reinsurance limit for Japan from 10% of U.S.