AFLAC Incorporated (NYSE:AFL) stock rose 6.27% (As on August 2, 11:53:59 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23. Net earnings in the second quarter of 2023 included net investment gains of $555 million, compared with net investment gains of $564 million, a year ago. These net investment gains were driven by net gains on certain derivatives and foreign currency activities of $541 million and $24 million of net gains from sales and redemptions, both of which were largely driven by changes in exchange rates. Net investment losses included a $9 million loss from a decrease in the fair value of equity securities and a $1 million increase in the company’s current expected credit losses (CECL) reserves and impairments. Total investments and cash at the end of June 2023 were $116.5 billion, compared with $121.4 billion at June 30, 2022. The decline in the carrying amount of the portfolio is principally driven by the weaker yen offset by higher interest rates. Shareholders’ equity was $20.4 billion, at June 30, 2023, compared with $19.6 billion, at June 30, 2022.

AFL in the second quarter of FY 23 has reported the adjusted earnings per share of $1.58, beating the analysts’ estimates for the adjusted earnings per share of $1.42, according to analysts surveyed by Zacks Investment Research. The company had reported the adjusted revenue of $5.17 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $4.52 billion.

Additionally, the company declared the third quarter dividend of $0.42 per share, payable on September 1, 2023 to shareholders of record at the close of business on August 23, 2023. In the second quarter, Aflac Incorporated deployed $700 million in capital to repurchase 10.5 million of its common shares. At the end of June 2023, the company had 95.8 million remaining shares authorized for repurchase.

Moreover, in yen terms, Aflac Japan’s net earned premiums were ¥283.4 billion for the quarter, or 6.2% lower than a year ago, mainly due to limited pay products reaching paid-up status and a reinsurance transaction in the first quarter. Adjusted net investment income decreased 6.4% to ¥88.0 billion, mainly due to lower variable investment income, higher hedge costs and the transfer of assets as part of the reinsurance transaction. Total adjusted revenues in yen declined 6.2% to ¥372.5 billion. Aflac U.S. net earned premiums rose 2.2% to $1.4 billion in the second quarter compared to the prior year, reflecting the strong contribution from growth initiatives.