Aflac Q2 2020 Earnings Report
Key Takeaways
Aflac Incorporated reported a decrease in total revenues to $5.4 billion, and a net earnings of $805 million, or $1.12 per diluted share, for the second quarter of 2020.
Total revenues were $5.4 billion, compared to $5.5 billion in the second quarter of 2019.
Net earnings were $805 million, or $1.12 per diluted share, compared to $817 million, or $1.09 per diluted share a year ago.
Adjusted earnings were $921 million, compared with $846 million in the second quarter of 2019.
Adjusted earnings per diluted share increased to $1.28 in the quarter.
Aflac
Aflac
Aflac Revenue by Segment
Aflac Revenue by Geographic Location
Forward Guidance
Aflac expects full-year sales results in both the United States and Japan to be significantly affected, but they also see potential for a modest sales recovery in the second half of the year, contingent upon the pace of economic recovery.
Positive Outlook
- Potential for a modest sales recovery in the second half of the year.
- Committed to prudent liquidity and capital management.
- Maintaining strong capital ratios on behalf of policyholders.
- Tactical approach to capital allocation.
- Focused on integrating the growth investments.
Challenges Ahead
- COVID-19 continues to impact sales results in the United States and Japan.
- Expect full-year sales results in both countries to be significantly affected.
- Economic conditions and claims activity remain uncertain in both Japan and the U.S.
- Environment created by COVID-19 continues to impact sales results.
- Consumers defer treatment, which led to favorable results in this quarter.