Overview

• U.S. supplemental health insurer's Q1 revenue rose 27.9%, beating analyst expectations

• Adjusted EPS for Q1 increased 5.4% but missed consensus estimates

• Company returned $1.3 bln to shareholders via buybacks and dividends

Outlook

• Company did not provide specific guidance for the current quarter or full year in its press release

Result Drivers

• JAPAN PREMIUM DECLINE - Net earned premiums in Japan fell due to new reinsurance transactions and products reaching paid-up status

• NEW PRODUCT SALES - Japan segment new premium sales rose, driven by strong demand for recently launched medical and cancer insurance products

• VARIABLE INVESTMENT INCOME - Variable investment income was $14 mln below the company’s long-term return expectations

Company press release: ID:nPn5vVbP4a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$4.3 bln	$4.23 bln (6 Analysts)
Q1 Adjusted EPS	Miss	$1.75	$1.81 (14 Analysts)
Q1 EPS		$1.98
Q1 Adjusted Net Income	Miss	$901 mln	$938.79 mln (8 Analysts)
Q1 Net Income		$1 bln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the life & health insurance peer group is "buy."

• Wall Street's median 12-month price target for Aflac Inc is $113.00, about 2.8% below its April 28 closing price of $116.29

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

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