AFLAC Earned $1.28 per Share for Q4

After the bell, AFLAC (AFL) reported Q4 earnings of $1.28 per share. That’s an increase of 19.6%. The weaker exchange rate pinged earnings by five cents per share.

Q4 revenues were $5.4 billion. That’s down from $5.9 billion in the fourth quarter of 2020.

During Q4, Aflac spent $625 million to repurchase 11.1 million of its common shares. For the full year, Aflac deployed $2.3 billion in capital to repurchase 43.3 million of its common shares. At the end of December 2021, the company had 55.8 million remaining shares authorized for repurchase.

Shareholders’ equity was $33.3 billion, or $50.99 per share, at December 31, 2021, compared with $33.6 billion, or $48.46 per share, at December 31, 2020. The annualized return on average shareholders’ equity in the fourth quarter was 12.4% and 12.9% for the full year.

For the full year of 2021, total revenues were down 0.2% to $22.1 billion, compared with $22.1 billion for the full year of 2020. Adjusted earnings for the full year of 2021 were $4.0 billion, or $5.94 per diluted share, compared with $3.6 billion, or $4.96 per diluted share, in 2020. Excluding the negative impact of $0.06 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share increased 21.0% to $6.00 for the full year of 2021.

DIVIDEND

The board of directors declared the first quarter dividend of $0.40 per share, payable on March 1, 2022 to shareholders of record at the close of business on February 16, 2022.

OUTLOOK

Commenting on the company’s results, Chairman and Chief Executive Officer Daniel P. Amos stated: “The company generated strong earnings for the year, largely supported by the continuation of low benefit ratios associated with pandemic conditions and better-than-expected returns from alternative investments. While we saw improvements in the quarter for both the United States and Japan, we continue to remain cautiously optimistic in the face of ongoing pandemic conditions.

“Looking at our operations in Japan, I am encouraged by the 7.7% sales increase for the year, which included the first quarter introduction of our medical product EVER Prime and the September launch of our new nursing care product. However, we continued to navigate evolving pandemic conditions in Japan, including various states of emergency that may impact our ability to meet face-to-face with customers, which continues to be key to a recovery in sales.

“In the U.S., I am pleased with the 16.9% sales increase for the year. At the same time, I am encouraged by reports of new small business formation and the resiliency of larger businesses. Our sales in the fourth quarter reflect increased face-to-face sales opportunities. We continue to work toward reinforcing our position and generating stronger sales in 2022, realizing we may face headwinds from pandemic conditions.

“As always, we are committed to prudent liquidity and capital management. This includes maintaining strong capital ratios on behalf of our policyholders in both the U.S. and Japan. It goes without saying that we treasure our record of dividend growth. Coming off our 39th consecutive year of dividend increases, I am pleased with the board’s decision to increase the quarterly dividend by 21.2% in the first quarter, as we announced in November. Our dividend track record is supported by the strength of our capital and cash flows. At the same time, we remain in the market repurchasing shares with a tactical approach and focused on integrating the growth investments we have made in our platform. By doing so, we look to emerge from this period in a continued position of strength and leadership.”

Posted by on February 2nd, 2022 at 4:21 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.