AFLAC INC Quarterly Report for Q2 Ended Jun 30, 2022

Summary

Aflac Incorporated reported net earnings of $1.39 billion for the second quarter of 2022, a significant increase from $1.11 billion in the same quarter of the previous year. Diluted earnings per share (EPS) also saw a substantial rise to $2.16 from $1.62. For the first six months of 2022, net earnings were $2.42 billion, largely flat compared to $2.40 billion in the prior year period, with diluted EPS at $3.73 compared to $3.49. The company's performance was bolstered by strong net investment gains, which more than offset a slight decrease in total revenues and net earned premiums, particularly in the Aflac Japan segment. The company's investment portfolio, totaling $121.4 billion at quarter-end, experienced fluctuations, with a decrease in fair value of fixed maturity securities available for sale due to market conditions. However, Aflac maintained a robust capital position with shareholders' equity at $26.4 billion. The company continued its commitment to returning capital to shareholders through share repurchases and dividends, repurchasing $1.2 billion of its stock in the first half of 2022 and increasing its quarterly dividend.

Key Highlights

• 1Net earnings for Q2 2022 increased by 25.6% year-over-year to $1.39 billion.
• 2Diluted EPS grew to $2.16 in Q2 2022 from $1.62 in Q2 2021.
• 3Total revenues decreased slightly to $5.4 billion for Q2 2022 from $5.56 billion in Q2 2021.
• 4Net earned premiums in the Aflac Japan segment decreased by 19% in dollar terms for Q2 2022.
• 5Aflac U.S. saw an increase in new annualized premium sales of 15.6% in Q2 2022.
• 6Shareholders' equity decreased to $26.4 billion at June 30, 2022, from $33.3 billion at December 31, 2021, largely due to market fluctuations affecting accumulated other comprehensive income.
• 7The company repurchased $1.2 billion of its common stock in the first six months of 2022 and announced a 21.2% increase in its quarterly dividend.

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