Aflac, the insurance company based in Columbus, Georgia, saw a rise in fourth-quarter profit even though its revenue took a hit, largely due to a slowdown in its Japan business.
Strong Profit Performance
In the quarter ended Dec. 31, Aflac reported a profit of $268 million, or 46 cents a share, compared to $185 million, or 31 cents a share, during the same period the previous year. Although the per-share earnings of $1.25 fell short of the $1.45 forecast by analysts, the company's adjusted per-share earnings still showed strength despite the challenging circumstances.
Declining Revenue
While Aflac's profit demonstrated resilience, revenue declined by 4.3%, totaling $3.8 billion in comparison to the $4.3 billion that analysts had expected. Despite this setback, Aflac experienced some positive growth in specific segments.
Uplift in U.S. Market
In the U.S. market, net earned premiums rose by 1.1% to $1.4 billion during the period in question. The segment's revenue also saw an increase of 1.1%, reaching $1.6 billion.
Struggles in Japan
Conversely, Aflac's Japan segment faced more significant challenges, with net earned premiums dropping by 8.5% from the previous year.
Aflac remains committed to navigating these obstacles and finding solutions to ensure continued success in the future.
