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Dec 31, 2019
Aflac Q4 2019 Earnings Report
Aflac's Q4 2019 earnings were reported, with net earnings of $782 million and adjusted EPS of $1.03.
Key Takeaways
Aflac Incorporated reported fourth-quarter results, with total revenues of $5.6 billion and net earnings of $782 million, or $1.06 per diluted share. Adjusted earnings were $756 million, or $1.03 per diluted share. The company affirms its 2020 adjusted EPS outlook and increased its first-quarter cash dividend by 3.7%.
Total revenues reached $5.6 billion, up from $5.1 billion in Q4 2018.
Net earnings increased to $782 million, or $1.06 per diluted share, compared to $525 million, or $0.69 per diluted share in the previous year.
Adjusted earnings were $756 million, a slight decrease from $779 million in Q4 2018.
Aflac Japan's pretax adjusted earnings declined 8.8% on a reported basis and 7.2% on a currency-neutral basis.
Aflac
Aflac
Aflac Revenue by Segment
Revenue by Segment
Aflac Japan Revenue
CapyFin.comAflac U.S. Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
Aflac aims to produce stable adjusted earnings per diluted share of $4.32 to $4.52, assuming the 2019 weighted-average exchange rate of 109.07 yen to the dollar.
Positive Outlook
- The company is focused on driving future earned premium growth.
- Aflac is committed to rewarding shareholders through dividend increases.
- The company is reinvesting in its platform to drive efficiencies.
- Aflac is balancing reinvestment with a focus on increasing the dividend and repurchasing shares.
- Share repurchase is expected to be in the range of $1.3 to $1.7 billion in 2020.
Challenges Ahead
- Aflac Japan saw a decline in total earned premium in 2019 due to limited-pay policies reaching paid-up status.
- Full-year third sector and first sector protection sales were down in the mid-teens.
- Aflac U.S. financial results reflected elevated expenses due to ongoing investments.
- Aflac expects a decline in the range of 0.7% in third sector and first sector protection earned premium for the year.
- The company's objectives assume stable capital conditions and the absence of compelling alternatives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income