COLUMBUS, Ga. - Aflac Incorporated (NYSE: NYSE:AFL) has reported a robust first quarter with earnings and revenue surpassing analyst expectations. The insurance giant posted adjusted earnings per share (EPS) of $1.66, which was $0.08 higher than the analyst estimate of $1.58. Total revenue reached $5.4 billion, significantly exceeding the consensus estimate of $4.09 billion.
Compared to the first quarter of the previous year, Aflac's revenue saw a substantial increase from $4.8 billion, marking a 12.5% rise. This growth is attributed to net investment gains, with the company's net earnings jumping to $1.9 billion, or $3.25 per diluted share, from $1.2 billion, or $1.94 per diluted share, in the first quarter of 2023.
Aflac's performance was bolstered by a series of net investment gains totaling $951 million, driven by derivatives and foreign currency gains, sales and redemptions, and an increase in the fair value of equity securities. Despite a weaker yen/dollar exchange rate impacting adjusted EPS by $0.08, the company still managed an adjusted earnings increase of 0.8% to $961 million.
Chairman, CEO, and President Daniel P. Amos highlighted Aflac's solid earnings and the company's focus on driving profitable growth in the U.S. and Japan through new products and distribution strategies. He pointed out disciplined underwriting and expense management as key factors contributing to strong pretax profit margins, especially in Japan. Amos also noted the positive results in net earned premiums growth and persistency in the U.S., attributing them to a stronger underwriting discipline and effective expense management.
Aflac's commitment to shareholder value is evident in its 41-year track record of dividend growth and the recent repurchase of $750 million in shares. Looking forward, Amos expressed confidence in the company's strategy to create long-term value for shareholders, with plans for sales campaigns in Japan and further improvements in the U.S. throughout the year.
The company's financial strength is further underscored by its shareholders' equity, which stood at $23.5 billion, or $41.27 per share, at the end of the first quarter, up from $19.8 billion, or $32.65 per share, a year earlier.
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