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: The top-up health and life insurer that earns big in both the US and Japan.
Over about 2 years to 2026-07-31. 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.
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.
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 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 growth and momentum, and weakest on value.
- ✓Pays a dividend - about 1.9% a year
- ✓Growing - revenue up about 28% over the year
- ✓Very profitable - turns about 26% of sales into profit
- ✓Strong return on shareholder money (ROE 16%)
- Growth screens high (92/100)
- Momentum screens high (78/100)
- consistent profitability with a solid net margin and return on equity
- meaningful dividend income alongside potential price return
- diversified revenue base spanning both the US and Japan
- currency risk from the large Japan business
- interest-rate sensitivity of its bond investment portfolio
- regulatory change affecting health or life insurance products
What do Aflac's numbers mean?
How much money does Aflac make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Aflac pay a dividend?
Yes - Aflac currently pays a dividend of about 1.9% a year (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.
When does Aflac report earnings, and how did recent quarters go?
Aflac is next scheduled to report on about 2026-08-06 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| 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 |
|---|---|---|---|
| 2026-04-29 | $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 |
| 2025-02-05 | $1.62 | $1.56 | Missed -4% |
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 →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
More in Financial Services
What are the scenarios for Aflac?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Aflac?
How many points the write-up makes each way — a balance check, not a score or verdict.
- consistent profitability with a solid net margin and return on equity
- meaningful dividend income alongside potential price return
- diversified revenue base spanning both the US and Japan
- forward P/E sitting above the trailing figure suggests near-term earnings expectations are cooling somewhat
- meaningful exposure to yen/dollar currency swings
- revenue growth 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
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →