Aflac Q2 2024 Earnings Report
Key Takeaways
Aflac Incorporated reported a total revenue of $5.1 billion and net earnings of $1.8 billion, or $3.10 per diluted share, for the second quarter of 2024. Adjusted earnings were $1.0 billion, or $1.83 per diluted share, representing an 8.5% increase. The company declared a third quarter dividend of $0.50 per share and repurchased $800 million of its common shares.
Total revenues reached $5.1 billion, slightly lower than the $5.2 billion reported in Q2 2023.
Net earnings increased to $1.8 billion, or $3.10 per diluted share, compared to $1.6 billion, or $2.71 per diluted share, year-over-year.
Adjusted earnings rose by 8.5% to $1.0 billion, with adjusted earnings per diluted share increasing by 15.8% to $1.83.
Aflac Japan's total new annualized premium sales increased by 4.5%, while Aflac U.S. sales increased by 2.0%.
Aflac
Aflac
Forward Guidance
Aflac is focused on generating profitable growth in the U.S. and Japan with new products and distribution strategies, aiming to create long-term value for shareholders.
Positive Outlook
- Continued focus on third sector products in Japan, targeting new and younger customers.
- Initial positive introduction of a new life insurance product with asset formation and nursing care options.
- Sales increase driven by new product introduction and sales campaigns.
- 2% sales growth achieved in the U.S., with focus on more profitable growth through underwriting discipline.
- Strong net investment income with minimal losses and impairments.
Challenges Ahead
- Difficult conditions in global capital markets and the economy, including inflation.
- Global fluctuations in interest rates and exposure to significant interest rate risk.
- Foreign currency fluctuations in the yen/dollar exchange rate.
- Extensive regulation and changes in law or regulation by governmental authorities.
- Catastrophic events, including climate change, epidemics, and war.