AFLAC Incorporated (NYSE:AFL) stock rose 1.60% (As on November 1, 12:04:04 AM UTC-4, Source: Google Finance) though the company in the third quarter of FY 22 has reported the adjusted earnings of $725 million, compared with $1.0 billion in the third quarter of 2021, reflecting a decrease of 29.7%. Adjusted earnings included a variable investment income loss of $40 million from alternative investments, which was $0.11 per share below return expectations. Further, adjusted earnings reflects $70 million, or $0.11 per share, of net investment income for a make-whole call of a security in the Japan segment.  The weaker yen/dollar exchange rate impacted adjusted earnings per share by $0.08. Total revenues were $4.8 billion in the third quarter of 2022, compared with $5.2 billion in the third quarter of 2021. Total investments and cash at the end of September 2022 were $114.5 billion, compared with $146.0 billion at September 30, 2021. The decline in the portfolio is principally driven by the weaker yen and higher interest rates.

Moreover, shareholders’ equity was $24.2 billion, or $38.71 per share, at September 30, 2022, compared with $33.6 billion, or $50.62 per share, at September 30, 2021. Shareholders’ equity at the end of the third quarter included a net unrealized gain on investment securities and derivatives of $1.1 billion, compared with a net unrealized gain of $9.7 billion at September 30, 2021. Shareholders’ equity at the end of the third quarter also included an unrealized foreign currency translation loss of $4.5 billion, compared with an unrealized foreign currency translation loss of $1.8 billion at September 30, 2021. The annualized return on average shareholders’ equity in the third quarter was 25.3%.

Furthermore, in yen terms, Aflac Japan’s net earned premiums were ¥309.9 billion for the quarter, or 4.1% lower than a year ago, mainly due to limited pay products reaching paid-up status and constrained sales from the impact of pandemic conditions. Adjusted net investment income increased 9.8% to ¥92.2 billion, mainly due to a weaker yen on the dollar-denominated investment income. Total adjusted revenues in yen declined 1.2% to ¥403.3 billion.

Additionally, the company has declared the fourth quarter dividend of $0.40 per share, payable on December 1, 2022 to shareholders of record at the close of business on November 16, 2022. In the third quarter, Aflac Incorporated deployed $650 million in capital to repurchase 11.1 million of its common shares. At the end of September 2022, the company had 25.6 million remaining shares authorized for repurchase.