Aflac Incorporated (NYSE: AFL), a well-established insurance company providing supplemental health insurance globally, particularly in the United States and Japan, reported its first-quarter results for 2025. The company demonstrated a significant decline in net earnings due to adverse investment performance, while Aflac’s operations showed steady revenue trends, particularly in Japan.

In the first quarter of 2025, Aflac’s total revenues decreased by 37.5% to $3.4 billion, compared to $5.4 billion during the same period in 2024. The net earnings fell sharply to $29 million, or $0.05 per diluted share, significantly down from $1.9 billion, or $3.25 per diluted share, a year prior. This reduction in net earnings was primarily attributed to net investment losses of $963 million for the quarter, contrasting with net investment gains of $951 million reported in the prior year’s first quarter.

Aflac reported adjusted earnings for the quarter of $906 million, a 5.7% decline from $961 million year-over-year, while adjusted earnings per diluted share remained constant at $1.66. The company’s variable investment income fell short of long-term expectations, running $27 million below forecast.

In Japan, Aflac’s net earned premiums totaled ¥256.5 billion, a decrease of 5.0% year-over-year. However, sales in the first quarter exhibited a year-over-year increase of 12.6%, primarily driven by strong performances in Tsumitas and the newly launched Miraito cancer insurance product. The pretax adjusted profit margin for Aflac Japan decreased to 31.8%, down from 32.8% in the previous year.

Conversely, Aflac’s U.S. operations reported a modest rise in net earned premiums, increasing by 1.8% to $1.5 billion. The adjusted net investment income in the U.S. was down by 1.9% at $202 million, and total adjusted revenues improved by 1.3% to $1.7 billion. The pretax adjusted profit margin for Aflac U.S. was recorded at 20.8%, slightly down from 21.0% a year earlier.

In terms of shareholder returns, Aflac deployed $900 million of capital to repurchase 8.5 million shares in the first quarter. The company declared a second-quarter dividend of $0.58 per share, marking a 16.0% increase compared to the same quarter of the previous year.

Overall, the financial results reflect a challenging investment environment impacting net earnings while showcasing stable operational performance through sales growth in Japan and steady revenue contributions from the U.S. market.