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Mar 31, 2020
Aflac Q1 2020 Earnings Report
Aflac reported a decrease in total revenues and net earnings, driven primarily by an increase in net investment losses.
Key Takeaways
Aflac Incorporated reported first quarter results with total revenues of $5.2 billion and net earnings of $566 million, or $0.78 per diluted share. The declines in total revenues and net earnings were primarily driven by an increase in net investment losses. The company withdrew adjusted earnings guidance for 2020 due to the evolving nature of the global COVID-19 pandemic.
Total revenues were $5.2 billion, compared to $5.7 billion in the first quarter of 2019.
Net earnings were $566 million, or $0.78 per diluted share, compared to $928 million, or $1.23 per diluted share a year ago.
Adjusted earnings were $882 million, compared to $849 million in the first quarter of 2019.
Adjusted earnings per diluted share increased 8.0% to $1.21 in the quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Aflac withdrew its adjusted earnings guidance for 2020, citing challenges to production and potential volatility in core earnings drivers associated with the global COVID-19 pandemic.
Positive Outlook
- The company ended the first quarter with strong earnings.
- The company has a strong, well-diversified portfolio.
- The company has strong capital ratios.
- The company has ample holding company liquidity.
- The company remains committed to defending and extending its 37-year track record of annual dividend increases.
Challenges Ahead
- Sales production in both Japan and the U.S. began to fall off in March.
- The decline in sales production accelerated in April.
- Sales are impacted by a reduction in face-to-face activity.
- The company believes these trends point to depressed sales at least until COVID-19 restrictions subside.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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