Summary
Aflac Incorporated reported solid financial results for the third quarter and first nine months of 2019. Total revenues remained stable year-over-year for the quarter, while increasing slightly for the nine-month period. Net earnings saw a decrease in the third quarter compared to the prior year, largely due to higher net realized investment losses, but increased for the nine-month period, demonstrating resilience. The company's U.S. operations performed steadily, while Aflac Japan, despite a slight decrease in yen-denominated net premium income, showed improved investment income and a stronger pretax adjusted earnings. A significant factor impacting the company's sales in Japan was the ongoing investigation into sales practices by Japan Post, which Aflac anticipates will depress sales through that channel for the remainder of 2019. Aflac continued its commitment to shareholder returns, repurchasing a substantial amount of its common stock during the period.
Financial Highlights
33 data points| Revenue | $5.54B |
| SG&A Expenses | $769.00M |
| Operating Income | $1.16B |
| Interest Expense | $57.00M |
| Net Income | $777.00M |
| EPS (Basic) | $1.05 |
| EPS (Diluted) | $1.04 |
| Shares Outstanding (Basic) | 739.95M |
| Shares Outstanding (Diluted) | 743.84M |
Key Highlights
- 1Net earnings for the first nine months of 2019 increased to $2.5 billion, or $3.37 per diluted share, up from $2.4 billion, or $3.08 per diluted share, in the same period of 2018.
- 2Third-quarter 2019 net earnings were $777 million, or $1.04 per diluted share, a decrease from $845 million, or $1.09 per diluted share, in the third quarter of 2018, primarily due to higher net realized investment losses.
- 3Aflac Japan's pretax adjusted earnings increased by 10.8% in the third quarter and 4.5% for the nine-month period, driven by improved investment income and favorable claims trends.
- 4Aflac U.S. maintained stable pretax adjusted earnings, with a slight increase for the quarter and a slight decrease for the nine-month period, despite higher adjusted expense ratios.
- 5The company repurchased $1.2 billion of its common stock during the first nine months of 2019.
- 6Aflac anticipates a material decrease in sales through the Japan Post channel for the remainder of 2019 due to an ongoing investigation into sales practices by Japan Post.
- 7The company's investment portfolio remains diversified, with a strong emphasis on fixed maturity securities, and continues to be managed with a focus on asset-liability matching.