NYSE$AFL

Aflac Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Aflac's Q2 2024 performance reflected solid earnings, driven by growth in the U.S. and Japan, with strategic focus on new products and distribution.

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%.

Headline financials

Total Revenue

$5.14B

Previous: $5.17B-0.7%
EPS

$3.10

Previous: $1.58+96.2%
Japan Net Premium Income

$1.75B

No prior period
Japan Net Investment Income

$725M

No prior period
US Net Premium Income

$1.45B

No prior period
US Net Investment Income

$218M

No prior period
Shareholders' Equity

$26B

No prior period
Shareholders' Equity Per Share

$46.40

No prior period
Annualized ROE

28.3%

Previous: 32.5%-12.9%
Adjusted Book Value

$29.3B

No prior period
Adjusted Book Value Per Share

$52.26

No prior period
Adjusted Book Value Excl. FX

$23.6B

No prior period
Adjusted Book Value Excl. FX Per Share

$41.98

No prior period
Annualized Adj. ROE Excl. FX

17.5%

No prior period
Free Cash Flow

$1.76B

Previous: $1.63B+7.4%
Net Income

$1.76B

Previous: $1.63B+7.4%
Operating Income

$1.81B

Previous: $1.14B+59.0%
Gross Profit

$3.01B

Previous: $2.87B+4.8%

Revenue & EPS history

Aflac · Revenue · Quarterly

$5.14B

Q2 2024-0.7%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
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 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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2024

Historical avgQ2 2024

+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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