Summary
Aflac Incorporated reported revenues of $5.43 billion for the three months ended June 30, 2017, essentially flat compared to the prior year period. Net earnings increased significantly to $713 million, or $1.79 per diluted share, up from $548 million, or $1.32 per diluted share, in the same period last year. This improvement was primarily attributed to lower losses related to certain derivative and foreign currency activities. For the six-month period, revenues were $10.74 billion, a slight decrease from $10.89 billion in the prior year. Net earnings rose to $1.31 billion, or $3.25 per diluted share, compared to $1.28 billion, or $3.06 per diluted share, in the first half of 2016. The company's core business segments, Aflac Japan and Aflac U.S., both showed stable or improved pretax operating earnings. Aflac Japan's pretax operating earnings were $791 million for the quarter, down slightly from $802 million, while Aflac U.S. saw an increase to $330 million from $291 million. Shareholders' equity also saw a healthy increase, reflecting strong earnings and a net unrealized gain on investment securities and derivatives. The company continued its share repurchase program, buying back approximately 11.2 million shares for $800 million in the first half of 2017. Overall, the financial results demonstrate solid performance with improved profitability, driven by better management of certain financial instruments and positive trends in core insurance operations.
Financial Highlights
33 data points| Revenue | $5.43B |
| SG&A Expenses | $665.00M |
| Operating Income | $1.07B |
| Interest Expense | $61.00M |
| Net Income | $713.00M |
| EPS (Basic) | $0.90 |
| EPS (Diluted) | $0.89 |
| Shares Outstanding (Basic) | 792.87M |
| Shares Outstanding (Diluted) | 798.70M |
Key Highlights
- 1Net earnings for the second quarter of 2017 increased by approximately 30% year-over-year to $713 million ($1.79 per diluted share), primarily due to reduced losses from derivatives and foreign currency activities.
- 2Total revenues remained stable at $5.43 billion for the second quarter, with Aflac Japan experiencing a 5.7% decrease in operating revenues and Aflac U.S. seeing a 2.1% increase.
- 3Aflac Japan's pretax operating earnings were $791 million, a slight decrease of 1.4% compared to the prior year's $802 million, impacted by a 5.3% drop in net premium income in yen.
- 4Aflac U.S. demonstrated stronger performance with pretax operating earnings rising 13.4% to $330 million, driven by increased net premium income and improved benefit ratios.
- 5The company repurchased approximately 11.2 million shares of common stock for $800 million during the first six months of 2017, indicating a commitment to returning capital to shareholders.
- 6Shareholders' equity grew to $21.5 billion at June 30, 2017, up from $20.5 billion at December 31, 2016, supported by retained earnings and changes in accumulated other comprehensive income.
- 7The company's investment portfolio continues to be a significant driver of financial performance, with total investments and cash reaching $135.4 billion.