AFL Aflac Incorporated (AFL) Q1 FY26 earnings call
Aflac's quarter split along a familiar seam: a marketing-and-sales transformation is driving robust new sales in Japan (+25.5%) and steady US group momentum, yet Japan's in-force premium base is still eroding (underlying earned premium -1.3%) because lapsation (~JPY 90B) outpaces the ~JPY 74-80B of annual sales. Management frames this as a bridge — new business must climb toward roughly JPY 90B before earned premium turns flat, then positive — while margins are being flattered near-term by favorable reserve remeasurement (Japan benefit ratio 62.9%, US 47.2%). Capital remains the story: strong
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AFL operating KPIs by quarter
| KPI | Dec 2024 Q4 FY24 | Mar 2025 Q1 FY25 | Jun 2025 Q2 FY25 | Sep 2025 Q3 FY25 | Dec 2025 Q4 FY25 | This call Mar 2026 Q1 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|---|
| Policy retention rate Aflac Japan | 93.4%Persistency remained solid at 93.4%, which was unchanged year-over-year and in line with our expectations.Source: earnings call transcript | 93.8%Persistency remained solid at 93.8%, which is up 40 basis points year-over-year and in line with our expectations.Source: earnings call transcript | 93.7%Persistency remained solid at 93.7%, which was up approximately 40 basis points year-over-year, in line with our expectations.Source: earnings call transcript | 93.3%Persistency remained solid year-over-year and in line with our expectations at 93.3%.Source: earnings call transcript | 93.1%Persistency remained solid year-over-year and in line with our expectations at 93.1%.Source: earnings call transcript | 92.8%While persistency was down, it remains strong and in line with our expectations at 92.8%.Source: earnings call transcript | -0.3 pt |
| Policy retention rate US | 79.3%Persistency increased 70 basis points year-over-year to 79.3%.Source: earnings call transcript | 79.3%Net earned premium was up 1.8%, persistency increased 60 basis points year-over-year to 79.3%.Source: earnings call transcript | 79.2%Persistency increased 50 basis points year-over-year to 79.2%.Source: earnings call transcript | 79%More importantly, we maintained strong premium persistency of 79% and increased net earned premiums 2.5%.Source: earnings call transcript | 79.2%It remains strong at 79.2%.Source: earnings call transcript | 79.3%More importantly, we maintain strong premium persistency of 79.3% and increased net earned premium of 3.5% for the quarter.Source: earnings call transcript | +0.1 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.