AFLAC Incorporated (NYSE:AFL) stock rose 2.39% (As on November 2, 11:50:33 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 23. Adjusted net investment income rose 3.4% year over year to $915 million. Total net benefits and claims of $1.9 billion declined 10.4% year over year in the third quarter. Total acquisition and operating expenses dropped 1.1% year over year to $1.3 billion. Aflac Japan segment’s adjusted revenues decreased 4.9% year over year to $2.7 billion in the quarter under review but beat the estimate of $2.4 billion. Total net earned premiums of $2 billion dropped 7.2% year over year due to limited pay products attaining paid-up status and the implementation of a reinsurance transaction earlier. New annualized premium sales of $108 million improved 12.4% year over year. The benefit ratio of the segment was 65.1% in the third quarter. Aflac U.S. segment’s adjusted revenues increased 3.9% year over year to $1.7 billion in the quarter under review and beat our estimate of $1.6 billion. Total net earned premiums climbed 3.2% year over year to $1.4 billion and beat the estimate by 1.7% due to its growth initiatives.

Further, Aflac exited the third quarter with total cash and cash equivalents of $5.5 billion, which increased from $3.9 billion at 2022-end. Total investments and cash of $111.3 billion decreased from $117.4 billion at 2022-end. Total assets fell to $125.1 billion from $131.7 billion at 2022-end. Adjusted debt decreased to $6.7 billion at the third quarter-end from $7.1 billion at 2022-end. Total shareholders’ equity of $22.7 million increased from $20.1 million at 2022-end.

AFL in the third quarter of FY 23 has reported the adjusted earnings per share of $1.84, beating the analysts’ estimates for the adjusted earnings per share by 27.8%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5.2 percent to $4.95 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue by 10.9%.

Additionally, Aflac bought back 9.4 million shares worth $700 million in the third quarter. It had 86.4 million shares left for buyback as of the third-quarter end. Management announced dividends of 42 cents per share for the fourth quarter of 2023, sequentially flat. The dividend will be paid out on Dec 1, 2023, to shareholders of record as of Nov 15. It plans to increase the dividend by 19% in the first quarter of 2023.