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Jun 30, 2021
Aflac Q2 2021 Earnings Report
Aflac reported second quarter results with increased total revenues and net earnings compared to the same quarter last year.
Key Takeaways
Aflac Incorporated reported strong second-quarter results, with total revenues increasing to $5.6 billion and net earnings reaching $1.1 billion, driven by higher net investment gains. Adjusted earnings also rose, reflecting lower-than-expected benefit ratios and higher net investment income, particularly in Japan.
Total revenues increased to $5.6 billion, compared to $5.4 billion in the second quarter of 2020.
Net earnings were $1.1 billion, or $1.62 per diluted share, compared to $805 million, or $1.12 per diluted share a year ago.
Adjusted earnings increased by 17.3% to $1.1 billion, driven by lower benefit ratios and higher net investment income.
Aflac Japan's pretax adjusted earnings increased 19.7% to $1.0 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Aflac anticipates a stronger second half of the year in both the United States and Japan, driven by improved pandemic conditions and strategic initiatives. The company remains cautiously optimistic, focusing on prudent liquidity and capital management to support future growth and dividend commitments.
Positive Outlook
- Expect a stronger second half of the year in both the United States and Japan.
- Continued improvement in sales results in the United States and Japan.
- Strategic alliance with Japan Post Holdings fosters digital transformation and innovation.
- Resumption of proactive sales by Japan Post Group paves the way for gradual improvement in Aflac cancer insurance sales.
- Committed to extending the 38-year track record of dividend growth.
Challenges Ahead
- Uncertainty associated with emerging variants of COVID-19.
- Small businesses in the U.S. are still in recovery mode.
- Larger businesses remain focused on returning employees to the worksite, rather than modifying benefits.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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