Short answer
Aflac (AFL) filed its fiscal 2025 10-K annual report with the SEC on Feb 25, 2026. It reported revenue of $17.2B (−9.3% year over year) and net income of $3.6B.
- Top risk flagged: Japan concentration: Aflac Japan = 53% of adjusted revenues and 76% of total assets in 2025, with substantial JGB holdings exposed to sovereign credit risk
FY2025 key financial metrics · XBRL
- Revenue
- $17.2B
- −9.3% YoY
- Net income
- $3.6B
- −33.0% YoY
- EPS (diluted)
- $6.82
- −29.2% YoY
- ROE
- 12.4%
- −8.5 pp YoY
- Operating cash flow
- $2.6B
- −5.6% YoY
Source: XBRL data from the Aflac (AFL) FY2025 10-K on SEC EDGAR. USD.
Aflac FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Supplemental health and life insurer operating dual-segment model: Aflac Japan (largest cancer/medical insurer in Japan) and Aflac U.S. worksite benefits
- Two new Japan product launches: cancer insurance "Miraito" (March 2025) and medical insurance "Anshin Palette" (December 2025), both featuring modular, customer-configurable coverage
- Cybersecurity breach disclosed: unauthorized network access in June 2025 flagged as material forward-looking risk factor; unusual for a 10-K business section
- Total employees 12,716 across Japan (6,804) and U.S. (5,117); compensation and benefit expense rose to $2.1B in 2025 from $2.0B in 2024
- Aflac Duck celebrated 25th U.S. anniversary; Japan bank distribution now covers ~90% of all Japanese banks
Management Discussion & Analysis
- Total revenues $17.2B, down 9.3% YoY from $18.9B; decline driven by net investment losses of $572M vs gains of $1.3B in 2024
- Net earnings $3.6B ($6.82/share) vs $5.4B ($9.63/share) in 2024; adjusted earnings $4.0B ($7.49/share) vs $4.1B ($7.21/share); Aflac U.S. pretax adjusted margin 20.6% vs 21.1%; Aflac Japan pretax adjusted margin 36.7% vs 36.0%
- Aflac Japan best performer with pretax adjusted earnings $3.44B; Aflac U.S. essentially flat at $1.42B vs $1.42B; Japan new annualized premium sales +18.1% YoY in yen terms
- Share repurchases $3.5B (33M shares); dividends paid $1.2B ($2.32/share, +16% YoY); operating cash flow $2.6B, down 5.6%; total cash returned to shareholders $4.7B vs $3.9B in 2024
- 2026 guidance: Japan benefit ratio 60%–63%, expense ratio 20%–23%; U.S. benefit ratio 48%–52%, expense ratio 36%–39%; key risks include cybersecurity incident (22.65M individuals affected), yen/dollar volatility, and commercial real estate credit losses
Risk Factors
- Japan concentration: Aflac Japan = 53% of adjusted revenues and 76% of total assets in 2025, with substantial JGB holdings exposed to sovereign credit risk
- Yen/dollar FX risk: Aflac Japan liabilities yen-denominated but portfolio includes unhedged USD assets; rising US-Japan rate differential increases hedging costs materially
- June 2025 cyber incident: exfiltration of personal data affecting substantial number of US customers, employees, agents; ongoing legal/regulatory exposure under HIPAA, CCPA, and state laws
- Agent misclassification risk: majority of US sales force classified as independent contractors; state/federal reclassification could trigger material fines, restructuring, and litigation costs
- Japan distribution dependency: 358 bank agreements marketed Aflac Japan products; bank channel contributed 3.3% of new annualized premium sales in 2025, sensitive to ratings downgrades
Generated from the filing text; verify against the original. How to read a 10-K
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