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Mar 31, 2023
Aflac Q1 2023 Earnings Report
Aflac reported solid earnings results, driven by strategic initiatives in the U.S. and Japan, despite a weaker yen.
Key Takeaways
Aflac Incorporated reported first quarter net earnings of $1.2 billion, or $1.94 per diluted share, compared to $1.0 billion, or $1.60 per diluted share in the prior year. Total revenues were $4.8 billion, down from $5.2 billion in the first quarter of 2022. Adjusted earnings were $953 million, an increase of 1.2% year-over-year, with adjusted earnings per diluted share increasing 7.6% to $1.55. The company deployed $700 million in capital to repurchase 10.3 million common shares.
Net earnings increased to $1.2 billion, or $1.94 per diluted share.
Adjusted earnings increased 1.2% to $953 million, with adjusted EPS up 7.6% to $1.55.
Aflac Japan's pretax adjusted earnings increased 3.2% in yen terms.
Aflac U.S. pretax adjusted earnings increased 5.7%.
Revenue by Segment
Forward Guidance
Aflac is focused on initiatives in the U.S. and Japan around new products and distribution strategies, which present both challenges and opportunities for future growth. They are also committed to prudent liquidity and capital management, dividend growth, and tactical share repurchases.
Positive Outlook
- Planned May reclassification of COVID-19 in Japan is encouraging.
- Continued sales improvements in Japan reflect the ongoing rollout of the new cancer insurance policy.
- Japan Post Company and Japan Post Insurance began selling the new cancer insurance product.
- Continued improvement in the productivity of U.S. agents and brokers.
- Contribution from the buildout of acquired platforms in the U.S., namely network dental and vision and group life and disability.
Challenges Ahead
- Material weakening of the yen.
- Numerous initiatives in the U.S. and Japan present challenges.
- First quarter tends to generate the lowest sales of the year in the U.S.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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