What was the overall financial performance of Aflac in Q2 2018?

Aflac reported strong financial performance in the second quarter of 2018, with net earnings of $832 million ($1.07 per diluted share) and total revenues of $5.6 billion. This represents an increase compared to the same period in the prior year, indicating positive operational trends and effective management of the business.

How did the Japan and U.S. segments perform in Q2 2018?

Aflac Japan was the primary contributor to the company's financial results, showing a 5.7% increase in pretax adjusted earnings (in yen) driven by improved investment income and benefit ratios. Aflac U.S. also demonstrated growth, with a 3.0% increase in pretax adjusted earnings, supported by higher investment income and better expense management.

What is the impact of the Tax Cuts and Jobs Act on Aflac's results?

The Tax Cuts and Jobs Act, which lowered the U.S. federal corporate income tax rate to 21% effective January 1, 2018, significantly reduced Aflac's effective income tax rate to 26.4% for the second quarter of 2018, down from 31.8% in the prior year's quarter. The company continues to refine its accounting for the Act's effects.

What is Aflac's approach to capital management and shareholder returns?

Aflac continues to actively manage its capital through share repurchases and dividends. In the first six months of 2018, the company repurchased approximately $601 million of its common stock and declared a third-quarter cash dividend of $0.26 per share, an 18.2% increase over the prior year's dividend.

AFL 10-Q Quarterly Report Q2 FY2018 — Revenue, Net Income, EPS

Summary

Aflac Incorporated reported solid financial results for the second quarter and first six months of 2018, demonstrating growth in revenues and net earnings compared to the prior year. Total revenues increased, driven by higher net premiums and net investment income, with Aflac Japan continuing to be the primary contributor to the company's financial performance. Diluted earnings per share also saw a notable increase, reflecting the positive operational trends and the impact of the company's share repurchase program. The company also highlighted successful execution of its business strategies, including advancements in its Japan operations and continued focus on its core U.S. supplemental insurance products.

Financial Highlights

33 data points

Beta

Revenue

$5.59B

Net Income

$832.00M

0.1% Net Margin

EPS (Diluted)

$1.07

Total Assets

$141.99B

Cash & Equivalents

$3.85B

Free Cash Flow

$1.57B

Financial Statements

Beta

Revenue	$5.59B
SG&A Expenses	$732.00M
Operating Income	$1.14B
Interest Expense	$54.00M
Net Income	$832.00M
EPS (Basic)	$1.08
EPS (Diluted)	$1.07
Shares Outstanding (Basic)	772.95M
Shares Outstanding (Diluted)	777.81M

Key Highlights

1Net earnings for the second quarter of 2018 were $832 million, or $1.07 per diluted share, an increase from $713 million, or $0.89 per diluted share, in the same period of 2017.
2Total revenues for the second quarter of 2018 were $5.6 billion, up from $5.4 billion in the second quarter of 2017.
3For the first six months of 2018, net earnings were $1.6 billion, or $1.98 per diluted share, compared to $1.3 billion, or $1.62 per diluted share, in the first six months of 2017.
4Total revenues for the first six months of 2018 were $11.1 billion, an increase from $10.7 billion in the first six months of 2017.
5Aflac Japan's pretax adjusted earnings increased by 5.7% in yen terms for the second quarter of 2018, driven by higher net investment income and a favorable benefit ratio.
6Aflac U.S. pretax adjusted earnings increased by 3.0% in the second quarter of 2018, with growth attributed to higher net investment income and a favorable expense ratio.
7The company repurchased 13.4 million shares of common stock for $601 million during the first six months of 2018 as part of its ongoing share repurchase program.

AFLAC INC Quarterly Report for Q2 Ended Jun 30, 2018

Summary

Financial Highlights

Key Highlights

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