Aflac Incorporated (NYSE: AFL) today reported its fourth quarter results.

Total revenues were $5.4 billion in the fourth quarter of 2024, compared with $3.8 billion in the fourth quarter of 2023. Net earnings were $1.9 billion, or $3.42 per diluted share, compared with $268 million, or $0.46 per diluted share a year ago.

Net earnings in the fourth quarter of 2024 included net investment gains of $1.0 billion, or $1.86 per diluted share, compared with net investment losses of $511 million, or $0.87 per diluted share a year ago. These net investment gains were driven by net gains of $1.2 billion on certain derivatives and foreign currency activities; and a $40 million gain from an increase in the fair value of equity securities offset by $95 million of reserves for current expected credit losses (CECL); net losses from sales and redemptions of $74 million; and no impairments.  

Adjusted earnings* in the fourth quarter were $865 million, compared with $732 million in the fourth quarter of 2023, reflecting an increase of 18.2%. Adjusted earnings per diluted share* increased 24.8% to $1.56 in the quarter. Variable investment income ran $17 million above the company's long-term return expectations. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per share by $0.01.

The average yen/dollar exchange rate in the fourth quarter of 2024 was 152.35, or 2.8% weaker than the average rate of 148.11 in the fourth quarter of 2023. For the full year, the average exchange rate was 150.97, or 6.9% weaker than the rate of 140.57 a year ago.

Shareholders' equity was $26.1 billion, or $47.45 per share, at December 31, 2024, compared with $22.0 billion, or $38.00 per share, at December 31, 2023. Shareholders' equity at the end of the fourth quarter included a cumulative increase of $2.0 billion for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative decrease of $2.6 billion at December 31, 2023 and a net unrealized gain on investment securities and derivatives of $4 million, compared with a net unrealized gain of $1.1 billion at December 31, 2023. Shareholders' equity at the end of the fourth quarter also included an unrealized foreign currency translation loss of $5.0 billion, compared with an unrealized foreign currency translation loss of $4.1 billion at December 31, 2023. The annualized return on average shareholders' equity in the fourth quarter was 29.9%.

For the full year of 2024, total revenues were up 1.2% to $18.9 billion, compared with $18.7 billion in the full year of 2023. Net earnings were $5.4 billion, or $9.63 per diluted share, compared with $4.7 billion, or $7.78 per diluted share, for the full year of 2023. Adjusted earnings for the full year of 2024 were $4.1 billion, or $7.21 per diluted share, compared with $3.7 billion, or $6.23 per diluted share, in 2023. Excluding the negative impact of $0.18 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share increased 18.6% to $7.39 for the full year of 2024.

Shareholders' equity excluding AOCI (or adjusted book value*) was $29.1 billion, or $52.87 per share at December 31, 2024, compared with $27.5 billion, or $47.55 per share, at December 31, 2023. Adjusted book value excluding foreign currency remeasurement* was $23.4 billion, or $42.46 per share, at December 31, 2024, compared with $23.8 billion, or $41.15 per share, at December 31, 2023. The annualized adjusted return on equity excluding foreign currency remeasurement* in the fourth quarter was 14.5%.