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Mar 31, 2021
Aflac Q1 2021 Earnings Report
Aflac reported first quarter net earnings driven by higher net investment gains.
Key Takeaways
Aflac Incorporated reported a strong first quarter with total revenues of $5.9 billion, a 13.7% increase from the previous year. Net earnings reached $1.3 billion, or $1.87 per diluted share, significantly higher than the $566 million, or $0.78 per diluted share, reported in the first quarter of 2020. The results were driven by higher net investment gains and lower-than-expected benefit ratios in the U.S.
Total revenues increased by 13.7% to $5.9 billion compared to Q1 2020.
Net earnings increased to $1.3 billion, or $1.87 per diluted share.
Adjusted earnings increased by 20.0% to $1.1 billion.
The company repurchased $650 million of its common shares during the quarter.
Aflac
Aflac
Aflac Revenue by Segment
Aflac Revenue by Geographic Location
Revenue by Segment
Corporate and Other Revenue
CapyFin.comRevenue by Geographic Location
Japan Revenue
CapyFin.comUS Revenue
CapyFin.com Forward Guidance
Aflac anticipates pandemic conditions will continue to impact sales results through the first half of 2021, with expected improvements in the second half as communities and businesses reopen. The company remains cautiously optimistic, focusing on prudent liquidity and capital management, dividend growth, and tactical share repurchases.
Positive Outlook
- Expect continued strength in medical sales in Japan.
- Japan Post Group's resumption of proactive sales in April is expected to gradually improve Aflac cancer insurance sales in the second half of the year.
- Committed to prudent liquidity and capital management.
- Treasure our 38-year track record of dividend growth and remain committed to extending it, supported by the strength of our capital and cash flows.
- Will continue to tactically repurchase shares, focused on integrating the growth investments we have made in our platform.
Challenges Ahead
- Earnings are largely supported by low benefit ratios associated with pandemic conditions.
- Pandemic conditions continue to impact sales results in the United States and Japan.
- Pandemic conditions also impact earned premium and revenues.
- Small businesses in the U.S. are still in recovery mode and are expected to be for most of 2021.
- Larger businesses remain focused on returning employees to the worksite, rather than modifying the benefits for their employees.