Q2 2024 Aflac Inc Earnings Call Transcript
Key Points
- Aflac Inc (AFL) reported strong earnings with net earnings per diluted share of $3.10 for the quarter and $4.64 for the first six months.
- Adjusted earnings per diluted share increased by 15.8% to $1.83 for the quarter and by 11.5% to $3.49 for the first six months.
- The company achieved a 2% sales growth in the US, driven by growth in Group Life, Absent Management, Disability, and individual voluntary benefits.
- Aflac Inc (AFL) repurchased a record $800 million in shares during the quarter and declared dividends of $0.50 for the first, second, and third quarters.
- Persistency rates in the US improved by 50 basis points year-over-year to 78.7%, indicating strong customer retention.
- Net earned premiums in Japan declined by 5.7%, impacted by internal reinsurance transactions and paid-up policies.
- The total benefit ratio in Japan increased to 66.9%, up 120 basis points year-over-year, indicating higher claims costs.
- Persistency in Japan declined by 50 basis points year-over-year to 93.3%, reflecting a slight decrease in customer retention.
- The expense ratio in the US, while improved, is expected to increase in the second half of the year due to higher sales activity and investments in growth initiatives.
- The commercial real estate loan watch list stands at approximately $1 billion, with less than $300 million in the process of foreclosures, indicating potential risks in the investment portfolio.
Good day, and welcome to the Aflac Incorporated second-quarter 2024 earnings conference call. All participants will be in a listen only mode. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to David Young, Vice President of Investor and Rating Agency Relations. Please go ahead.
Good morning, and welcome. Thank you for joining us for Aflac Incorporated second quarter earnings call. While I have your attention I also want you to mark your calendars to join us for our Financial Analyst Briefing at the New York Stock Exchange on December 3.
Now this morning, Dan Amos, Chairman, CEO and President of Aflac Incorporated will provide an overview of our results and operations in Japan and the United States. Then, Max Broden, Executive Vice-President and CFO of Aflac Incorporated will provide an update on our financial results and current capital and liquidity.
These topics are also addressed in the materials we posted with our earnings release and
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