Aflac (AFL)
The top-up health and life insurer that earns big in both the US and Japan.
Is Aflac a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: consistent profitability with a solid net margin and return on equity. Worth weighing: forward P/E sitting above the trailing figure suggests near-term earnings expectations are cooling somewhat.
Is this normal for this company?
Each figure against the range this same company has produced recently. Neither end of a range is the good end.
Share price divided by the earnings actually reported over the four most recent quarters. The range is the same calculation at each of this company's last few results, so roughly the past year.
Profit as a share of sales, from the company's own quarterly statements. The range covers the 5 quarters we hold, and the figure shown is its most recent one.
How these ranges are built
Every number here is the company's own reported figure, not a comparison with other companies. The ranges come from this company's own results and its share price. Where it reports in a different currency from the one its shares trade in, the price-to-earnings range is left out rather than mixing the two.
What does Aflac do?
Aflac collects premiums (regular payments) from individuals and employers and, in return, promises to pay cash if something covered happens - like a cancer diagnosis or a covered life event. While it's holding all that premium money, it invests it, so it earns investment income on top of the profit from the insurance itself. Japan has long been a very large chunk of its business alongside the US. The one thing worth watching -> the yen-to-dollar exchange rate, which can meaningfully move its reported results.
On our factor screen it looks strongest on income and value, and weakest on growth.
- ✓Pays a dividend - about 2.0% a year
- ✓Very profitable - turns about 27% of sales into profit
- ✓Strong return on shareholder money (ROE 17%)
- Income screens high
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Does Aflac pay a dividend?
Yes - Aflac currently pays a dividend of about 2.0% a year, which is £20 a year for every £1,000 invested (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it. An ISA doesn't shelter the US tax on this one →
What do the numbers say about Aflac's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
Most recent ex-dividend date: 20 May 2026. To receive a dividend you must already own the shares before the ex-dividend date; become a holder on or after it and the previous owner keeps that payment. Why the price usually falls that morning →
What do Aflac's numbers mean?
How has it performed?
Growth of £1,000, the worst fall, and year by year
Over about 2 years to 2026-09-11. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Aflac actually fallen?
Over the last 2 years of daily prices, Aflac fell as much as −15% from a high to a later low. Falls like this are normal when you own a share.
Past falls are not a forecast - it can fall further, or recover.
How has it done year by year?
Calendar-year total return - the share price with dividends reinvested - from adjusted closing prices. The current year is only part-complete. Past returns are not a guide to the future.
A closer look at the numbers
Ownership, earnings history, where the money goes, and the outlook range
Does the share price tell you if it's cheap or expensive?
Who owns Aflac?
About 60% of Aflac, or about 60 in every 100 shares, is held by big institutions such as pension and index funds, and company insiders hold about 11%. The rest, roughly 29%, is held by the public and smaller investors.
What this does and doesn't tell you
This is a recent snapshot of the share register, and it moves. We don't read anything into who owns what - a high institutional share is common for any large listed company and is not a signal about it.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
How much money does Aflac make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Where does each £100 of Aflac's sales go?
A rough split of the latest full-year figures: of every £100 of sales, about £49 covers making the product or service, £24 goes on running costs, tax and interest, and about £27 is left as profit. Margins vary a lot by industry, and one-off items can distort a single year.
When does Aflac report earnings, and how did recent quarters go?
Aflac is next scheduled to report on about 2026-11-04 - dates can move, and we don't predict results; this just tells you when to look.
‘Beat’ and ‘missed’ are against what analysts expected, not whether the business is doing well.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-08-06 | $1.76 | $1.75 | In line |
| 2026-04-29 | $1.80 | $1.75 | Missed -3% |
| 2026-02-04 | $1.69 | $1.57 | Missed -7% |
| 2025-11-04 | $1.78 | $2.49 | Beat +40% |
| 2025-08-05 | $1.71 | $1.78 | Beat +4% |
| 2025-04-30 | $1.67 | $1.66 | In line |
Across the last 6 quarters here, Aflac came in ahead of what analysts expected 2 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Where these figures come from
Each quarter a company reports its results against a consensus of analyst forecasts. The figures here are reported versus expected earnings per share from published results; the expectation is that analyst consensus, not our view. Report dates are estimates and can move.
What are the scenarios for Aflac?
An illustrative range for the year ahead — not a prediction or a price target.
What are the pros, cons and common questions?
The case each way, and the questions people ask
sustained premium growth combined with consistent capital return to shareholders compounds over several years
structural pressure from Japan's shrinking, aging population or heightened regulatory/competitive pressure weighs on results over time
What are the pros and cons of Aflac?
A balance check, not a score or verdict.
- consistent profitability with a solid net margin: How much of each £1 of sales becomes profit after all costs. Higher = more profitable per sale. and return on equity: How much profit the company makes for each £1 shareholders have put in. Higher usually means a more efficient business.
- meaningful dividend income alongside potential price return
- diversified revenue base spanning both the US and Japan
- forward P/E: Like P/E, but using analysts' forecast of NEXT year's profit instead of last year's. A much lower forward figure implies profits are expected to jump. sitting above the trailing figure suggests near-term earnings expectations are cooling somewhat
- meaningful exposure to yen/dollar currency swings
- revenue growth: How fast the company's sales grew versus a year ago. and profitability can be affected by claims trends that are hard to predict
- currency risk from the large Japan business
- interest-rate sensitivity of its bond investment portfolio
- regulatory change affecting health or life insurance products
- an aging population in Japan could pressure long-run growth
The write-up's own warning lights — if these start happening, the case above changes.
- the yen depreciating sharply and persistently against the dollar
- claims ratios rising unexpectedly across either market
- premium growth slowing materially in the US or Japan
- credit losses appearing in its investment portfolio
Common questions about Aflac
Does Aflac pay a dividend?
Yes - Aflac currently pays a dividend of about 2.0% a year. Dividends are a share of profit paid to holders; the yield moves with the price and payouts can be cut.
When does Aflac report earnings next?
Aflac is next scheduled to report results on about 2026-11-04. Report dates are estimates and can move; this is a diary note for when to look, not a forecast of the outcome.
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