NYSE$AFL

Aflac Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Aflac reported second quarter results with increased total revenues and net earnings compared to the same quarter last year.

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.

Headline financials

Total Revenue

$5.56B

Previous: $5.41B+2.9%
EPS (adj)

$1.59

Previous: $1.28+24.2%
Annualized ROE

13.4%

Previous: 11.5%+16.5%
Free Cash Flow

$1.11B

Previous: $805M+37.3%
Net Income

$1.11B

Previous: $805M+37.3%
Operating Income

$1.34B

Previous: $1.24B+8.6%
Gross Profit

$2.63B

Previous: $2.22B+18.5%
Cash & Equivalents

$147B

Previous: $142B+3.1%
Total Assets

$161B

Previous: $157B+2.8%

Revenue & EPS history

Aflac · Revenue · Quarterly

$5.56B

Q2 2021+2.9%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Aflac · $5.07B total across 3 segments · Q1 2022

  • Aflac Japan Revenue
    $3.4B
  • Aflac U.S. Revenue
    $1.6B
  • Corporate and Other Revenue
    $74M-10.8%

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Navigating evolving pandemic conditions in Japan, including the continued state of emergency in Tokyo and select prefectures.
  • Integrating growth investments made in the platform.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.6%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+1.7%

Avg return

30 days after

63%

46 / 73 earnings

Positive

+9.4%

Q1 2012

Best reaction

-11.1%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.6%-1.5%-3.3%
Q4 2025+3.4%+2.0%-2.1%
Q3 2025+2.3%+4.4%+0.4%
Q2 2025+3.4%+5.3%+8.1%
Q1 2025-4.7%-2.6%-4.7%
Q4 2024-3.9%-4.0%+1.0%
Q3 2024-4.7%-5.0%+3.6%
Q2 2024+6.6%+1.9%+15.7%
Q1 2024+0.5%+1.3%+7.4%
Q4 2023-11.1%-11.0%-6.2%
Q3 2023+4.6%+4.2%+5.8%
Q2 2023+5.4%+6.2%+3.1%
Q1 2023+5.6%+7.0%-1.9%
Q4 2022-6.3%-5.3%-6.9%
Q3 2022+3.1%+3.7%+11.0%
Q2 2022+2.5%+3.7%+3.7%
Q1 2022-2.5%-5.7%-0.6%
Q4 2021+1.4%+3.8%-4.4%
Q3 2021-3.1%-4.0%-2.7%
Q2 2021+3.4%+1.7%+6.1%
Q1 2021+1.3%+1.8%+5.9%
Q4 2020-1.2%-0.1%+7.9%
Q3 2020-7.1%-7.7%+24.0%
Q2 2020+0.2%-2.4%+1.2%
Q1 2020-1.5%-5.4%-3.5%
Q4 2019+2.4%+1.8%-20.1%
Q3 2019+1.5%+2.1%+2.9%
Q2 2019-0.1%-1.9%-10.3%
Q1 2019+1.3%+3.0%+6.4%
Q4 2018+1.2%+1.8%+3.8%
Q3 2018-4.7%-4.5%+0.5%
Q2 2018+5.8%+6.3%+6.6%
Q1 2018+1.1%+0.9%+0.4%
Q4 2017+1.3%-2.7%-1.2%
Q3 2017-1.1%-0.9%+0.5%
Q2 2017+2.6%+4.6%+4.6%
Q1 2017+0.1%+0.3%+0.1%
Q4 2016-4.5%-2.5%+2.6%
Q3 2016-1.8%-2.0%+2.8%
Q2 2016-1.5%-2.4%-0.8%
Q1 2016+2.1%
Q4 2015-1.2%
Q3 2015+0.7%
Q2 2015+4.9%
Q1 2015-0.2%
Q4 2014+4.3%
Q3 2014+1.9%
Q2 2014-3.6%
Q1 2014+1.4%
Q4 2013+1.7%
Q3 2013-2.2%
Q2 2013+1.1%
Q1 2013+3.7%
Q4 2012-3.2%
Q3 2012-1.5%
Q4 2011+4.2%
Q2 2012-2.7%
Q1 2012+9.4%
Q3 2011-0.1%
Q2 2011-10.8%
Q1 2011+1.9%
Q4 2010+2.9%
Q3 2010-1.2%
Q2 2010+0.3%
Q1 2009+7.5%
Q1 2010+1.8%
Q4 2007+1.7%
Q4 2009+1.7%
Q3 2009+3.1%
Q3 2008+3.1%
Q2 2008+2.9%
Q4 2008+2.9%
Q2 2009+2.9%

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