The insurer Aflac announced on Wednesday a quarterly profit higher than analysts’ estimates, thanks to the increase in premiums collected in the United States.
Aflac shares rose 1.42% in extended trading.
Its U.S. unit earned net premiums of $1.5 billion for the quarter ended March 31, up 3.3% from a year earlier.
First-quarter net profit was $1.9 billion, up from $1.18 billion a year earlier.
On an adjusted basis, the Georgia-based company reported quarterly earnings per share of $1.66, beating analysts’ average estimate of $1.58 per share, according to LSEG data.
According to Suneet Kamath, an analyst at Jefferies, long-term interest rates will remain high for longer, which will help life insurers move towards growth in 2024.
In February, the company lowered its 2026 sales forecast for its Japan operations, due to a slowing sales recovery.
However, Aflac did not provide comments on 2026 sales guidance for its Japanese business this quarter.
Improved net premiums earned in its U.S. operations partially contributed to Aflac’s overall net premiums. (Reporting by Sruthi Narasimha Chari and Pratik Jain in Bengaluru; Editing by Pooja Desai)
