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Aflac US sales rise as higher claims costs squeeze margins
US net earned premiums increased 2.3% year over year to $1.5 billion in the second quarter, while the benefits and claims ratio climbed 220 basis points to 49.5%.
Aflac Incorporated reported stronger US supplemental health sales in the second quarter of 2026, but rising claims costs reduced profitability, according to Insurance Business. The company said employer health benefit costs are climbing at the fastest pace in 15 years, a shift that is pressuring insurers and the brokers that place their products.
Aflac’s US net earned premiums rose 2.3% year over year to $1.5 billion in the quarter. New annualized premium sales grew 2.6% to $349 million, with growth concentrated in group voluntary benefits and network dental and vision products.
Despite the sales gains, US pretax adjusted earnings fell 4.6% to $370 million, and the pretax adjusted profit margin narrowed from 22.5% to 20.9%. The benefits and claims ratio increased 220 basis points to 49.5% of net earned premiums, up from 47.3% a year ago.
For the first half of 2026, Aflac’s US net earned premiums were up 2.9% to $3.1 billion, while first-half pretax adjusted earnings fell 1.7% to $733 million. Insurance Business also cited a Mercer 2025 National Survey projection that health benefit costs will rise 6.5% per employee in 2026, the steepest increase in 15 years.