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Aflac's (AFL) Q3 Earnings Beat Estimates, Revenues Miss

Aflac's (AFL) Q3 results gain from increased net investment income and share repurchase.

This story originally appeared on Zacks

Aflac Incorporated’s AFL third-quarter 2021 adjusted earnings per share of $1.53 beat the Zacks Consensus Estimate by 17.69%. The bottom line improved 10.1% year over year.

- Zacks

Results benefited from increased net investment income and share buyback.

Total revenues declined 7.6% year over year to $5.24 billion. The top line missed the consensus mark by 2.7%.

Adjusted net investment income climbed 12% year over year to $978 million.

Aflac Incorporated Price, Consensus and EPS Surprise

Aflac Incorporated Price, Consensus and EPS Surprise

Aflac Incorporated price-consensus-eps-surprise-chart | Aflac Incorporated Quote

Total acquisition and operating expenses dipped 0.8% year over year to $1.5 billion.

Aflac Japan

Total adjusted revenues of $3.7 billion fell 3.5% year over year in the segment, primarily due to a 7.4% decline in premium income, partly mitigated by 15.1% growth in net investment income.

Pre-tax adjusted earnings of the Japan segment climbed 30.7% year over year to $976 million in the quarter.

Aflac U.S

.Total adjusted revenues were up 0.6% from the prior-year quarter’s level to $1.6 billion in the quarter owing to increase in adjusted net investment

income. Net premium income slipped 1% year over year to $1.4 billion as a result of constrained sales throughout 2020. Adjusted net investment income rose 9.1% year over year to $191 million, courtesy of growth in variable net investment income.

Solid Financial Position (as of Sep 30, 2021)

Total investments and cash of $146 billion decreased 0.1% year over year.

Total assets declined 0.2% year over year to $160.6 billion.

Shareholders' equity (excluding AOCI) improved 3.3% year over year to $33.6 billion.

Share Repurchase and Dividend Update

In the third quarter, Aflac bought back 9.6 million shares worth $525 million.

The board of directors declared the fourth quarter dividend of 33 cents per share, payable Dec 1, 2021.

Zacks Rank

Aflac carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Of the insurance industry players that have reported third-quarter results so far, earnings of RLI Corp. RLI, The Travelers Companies TRV and W.R. Berkley Corporation WRB beat the respective Zacks Consensus Estimate.


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