A provider of supplemental health and life insurance that fills the gaps in regular coverage, selling cancer, medical, accident, and disability policies to workers at their jobsites in the U.S. and Japan. Begun in 1955 in Columbus, Georgia, when the three Amos brothers sold insurance door-to-door, it took its name from the American Family Life Assurance Company. Its quacking duck mascot came about after ad-agency creatives in Central Park noticed the name "Aflac" sounds like a duck.
Aflac Q2 2026 adjusted earnings fell 8% to $883M as a weaker yen and lower Japan premiums offset U.S. growth.
Underlying earnings declined as currency and premium headwinds in Japan outweighed steady U.S. results. fell 1% to $4.1B and rose 38% to $825M, but the reported profit increase came entirely from a smaller non-operating investment loss, while per share dropped to $1.63 from $1.78. The core insurance business is shrinking in its largest market, and a new cyber incident in Japan adds an unquantified risk.
Key takeaways
fell 8% to $883M, or $1.63 per diluted share, driven by a 9.3% weakening of the yen and a 12.7% decline in Aflac Japan from a new and limited-pay products reaching paid-up status.
Reported rose 37.7% to $825M from $599M a year earlier, entirely because net investment losses narrowed to $93M from $421M — a non-operating, mark-to-market swing rather than an improvement in business performance.
Aflac Japan pretax fell 6.2% in dollars to $678M despite rising 3.4% in yen, as lower benefits and expenses were more than offset by the currency translation impact.
Section summaries
Management's Discussion and Analysis
Aflac Q2 2026 net earnings rose to $825M driven by lower net investment losses, while adjusted earnings fell 8% to $883M on a weaker yen and lower Japan premiums.
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Aflac Japan pretax rose 3.4% in yen due to lower benefits and expenses, but reported U.S. dollar earnings fell 6.2% as the yen weakened 9.3%.
Aflac U.S. pretax declined 4.6% to $370M, as higher claims in group products and increased variable expenses outpaced a 2.3% increase in .
The company repurchased $1.0B of common stock in Q2, bringing the first-half total to $2.0B, and declared a $0.61 quarterly , up 5.2%.
Aflac Japan disclosed a June 2026 cyber incident involving unauthorized access to systems containing personal and bank account information; the financial impact is not yet estimable but is not expected to be material.
What changed
The Q1 2026 watch item for net investment results resolved with a $93M loss in Q2, a swing from the $49M gain in Q1, confirming that mark-to-market volatility persists quarter to quarter.
Aflac Japan continued to decline, with the 12.7% dollar drop in Q2 accelerating from the trends flagged in prior quarters, now explicitly tied to a new in addition to the long-running limited-pay product runoff.
The Aflac U.S. decline of 4.6% marks a reversal from the 1.4% growth in Q1 2026 and the 7.1% growth in Q3 2025, as higher group claims and variable expenses eroded the benefit of premium growth.
A new cyber incident in Japan emerged in June 2026, separate from the June 2025 U.S. breach that had been the focus of prior watch items; the Japan incident involves bank account information and its financial impact remains unestimable.
What to watch
Q3 2026 Aflac Japan in yen to see if the decline widens further with the new , against the 60%-63% for 2026.
Q3 2026 net investment results to see if the $93M Q2 loss reverses with yen movement, given the pattern of large quarterly swings.
Financial impact and regulatory response to the June 2026 Aflac Japan cyber incident, particularly given the exposure of bank account information.
H2 2026 pace after $2.0B in H1 against the $3.5B full-year 2025 total.
Aflac U.S. pretax declined 4.6% to $370M, as higher group product claims and variable expenses outpaced 2.3% premium growth.
Total adjusted revenues for Aflac Japan fell 12.6% in dollars, driven by a 12.7% drop in net earned premiums from a new transaction and limited-pay products reaching paid-up status.
The Company repurchased $2.0 billion of common stock in H1 2026 and declared a 5.2% higher quarterly of $0.61 per share.
Aflac Japan disclosed a June 2026 cyber incident involving unauthorized access to systems containing personal and bank account information; the financial impact is not yet estimable but not expected to be material.
Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed primarily to the following types of market risks: currency risk, interest rate risk, credit risk and equity risk. The Company regularly monitors its market risks and uses a variety of strategies to manage its exposure to these market risks. A description o…
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The Company is exposed primarily to the following types of market risks: currency risk, interest rate risk, credit risk and equity risk. The Company regularly monitors its market risks and uses a variety of strategies to manage its exposure to these market risks. A description of the Company's market risk exposures may be found under “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A, of the 2025 Annual Report. There have been no material changes to the Company's market risk exposures from the market risk exposures previously disclosed in the 2025 Annual Report.