Summary
Aflac Inc.'s second-quarter 2020 report indicates a slight decrease in total revenues and net earnings compared to the prior year, largely driven by increased net investment losses. For the three months ended June 30, 2020, total revenues were $5.41 billion, down from $5.51 billion in the same period of 2019. Net earnings were $805 million, or $1.12 per diluted share, compared to $817 million, or $1.09 per diluted share, in the prior year. The company's adjusted earnings, which exclude certain volatile items like net investment gains/losses, showed a more positive trend. Adjusted earnings increased to $921 million in Q2 2020 from $846 million in Q2 2019, reflecting favorable claims experience in Aflac U.S. and improved adjusted net investment income in Aflac Japan, partly offset by higher hedge costs. The company's strong capital and liquidity position was maintained, with significant cash and cash equivalents on hand. Management continues to focus on prudent capital allocation and has taken steps to manage liquidity and capital resources in response to the COVID-19 pandemic, including issuing new senior notes.
Financial Highlights
33 data points| Revenue | $5.41B |
| SG&A Expenses | $756.00M |
| Operating Income | $1.24B |
| Interest Expense | $63.00M |
| Net Income | $805.00M |
| EPS (Basic) | $1.12 |
| EPS (Diluted) | $1.12 |
| Shares Outstanding (Basic) | 717.89M |
| Shares Outstanding (Diluted) | 719.76M |
Key Highlights
- 1Total revenues for Q2 2020 decreased slightly to $5.41 billion from $5.51 billion in Q2 2019.
- 2Net earnings for Q2 2020 were $805 million ($1.12 per diluted share), a slight decrease from $817 million ($1.09 per diluted share) in Q2 2019.
- 3Adjusted earnings, a non-GAAP measure excluding net investment gains/losses and other items, increased to $921 million in Q2 2020 from $846 million in Q2 2019.
- 4Aflac Japan's sales experienced a significant decline of 58.8% (in yen) compared to the prior year, impacted by COVID-19 and the ongoing Japan Post investigation.
- 5Aflac U.S. also saw a sales decline of 55.6% due to the pandemic's impact on face-to-face sales opportunities.
- 6The company maintained a strong liquidity and capital position, with $5.5 billion in cash and cash equivalents as of June 30, 2020, and issued $1 billion in senior notes in April 2020 to further support liquidity.
- 7Shareholders' equity increased to $29.4 billion ($41.21 per share) at June 30, 2020, from $28.2 billion ($38.14 per share) at June 30, 2019.