Summary
Aflac Inc. reported solid financial results for the third quarter and the first nine months of 2018, demonstrating growth in revenues and net earnings compared to the prior year. Total revenues increased to $5.6 billion for the third quarter and $16.6 billion for the first nine months, driven by growth in both Aflac Japan and Aflac U.S. segments. Net earnings rose to $845 million ($1.09 per diluted share) for the third quarter and $2.4 billion ($3.08 per diluted share) for the first nine months. This growth was supported by an increase in net investment income and favorable claims development, particularly in Japan, attributed to improved healthcare treatment patterns. The company also benefited from a lower effective tax rate following the U.S. Tax Cuts and Jobs Act. Shareholder returns were robust, with a significant share repurchase program continuing and an increase in dividends per share. The company maintained a strong capital position, with substantial levels of statutory capital and surplus. Aflac Japan, the primary driver of earnings, showed stable pretax adjusted earnings in yen, with increased investment income partially offset by planned increases in expenses. Aflac U.S. also reported growth in pretax adjusted earnings, driven by higher net investment income and improved benefit ratios. Overall, Aflac Inc. presented a positive financial picture with continued operational strength, strategic investments, and a commitment to shareholder returns, positioning it well for continued performance in its core markets.
Financial Highlights
33 data points| Revenue | $5.58B |
| SG&A Expenses | $730.00M |
| Operating Income | $1.06B |
| Interest Expense | $53.00M |
| Net Income | $845.00M |
| EPS (Basic) | $1.10 |
| EPS (Diluted) | $1.09 |
| Shares Outstanding (Basic) | 767.05M |
| Shares Outstanding (Diluted) | 772.07M |
Key Highlights
- 1Total revenues increased to $5.6 billion in Q3 2018 and $16.6 billion for the nine months ended September 30, 2018, up from $5.5 billion and $16.2 billion in the respective prior year periods.
- 2Net earnings increased to $845 million ($1.09 per diluted share) in Q3 2018 and $2.4 billion ($3.08 per diluted share) for the nine months ended September 30, 2018, compared to $716 million ($0.90 per diluted share) and $2.0 billion ($2.52 per diluted share) in the respective prior year periods.
- 3Aflac Japan's pretax adjusted earnings in yen remained stable, with growth in net investment income and a favorable benefit ratio contributing positively.
- 4Aflac U.S. saw a 5.7% increase in pretax adjusted earnings for Q3 2018, driven by higher net investment income and improved benefit ratios.
- 5The company continued its share repurchase program, buying back 20.4 million shares for $923 million in the first nine months of 2018.
- 6Dividends per share increased, with a Q3 2018 dividend of $0.26 compared to $0.22 in Q3 2017, and a planned 18.2% increase for the fourth quarter dividend.
- 7The effective income tax rate decreased significantly due to the reduction in the U.S. federal corporate income tax rate from 35% to 21% following the Tax Cuts and Jobs Act.