Aflac (NYSE: AFL) reported Q1 EPS of $1.53, $0.31 better than the analyst estimate of $1.22. Revenue for the quarter came in at $5.9 billion versus the consensus estimate of $5.54 billion.

OUTLOOK

Commenting on the company's results, Chairman and Chief Executive Officer Daniel P. Amos stated: "While earnings are off to a strong start for the year, they are largely supported by low benefit ratios associated with pandemic conditions. In addition, pandemic conditions in the first quarter continued to impact our sales results both in the United States and Japan, as well as earned premium and revenues. We continue to expect these pandemic conditions to remain with us through the first half of 2021, but look for improvement in the second half of the year as communities and businesses open up, allowing more face-to-face interactions. We are encouraged by the production and distribution of COVID-19 vaccines, but we also recognize that vaccination efforts are still in the early stages around the world. In the interim, we are cautiously optimistic and remain vigilant, and our thoughts and prayers are with everyone affected.

"Looking at our operations in Japan, sales were essentially flat for the first quarter with the launch of our new medical product, offset by continued pandemic conditions. While we continue to navigate evolving pandemic conditions in Japan, we expect continued strength in medical sales. In addition, Japan Post Group's announcement to resume proactive sales in April paves the way for gradual improvement in Aflac cancer insurance sales in the second half of the year. In the U.S., small businesses are still in recovery mode, and we expect that they will be for most of 2021. At the same time, larger businesses remain focused on returning employees to the worksite, rather than modifying the benefits for their employees. As a result, we continue to work toward reinforcing our position and a recovery in U.S. sales in the second half of 2021.

"As always, we remain committed to prudent liquidity and capital management. We issued our first sustainability bond in March as we seek to allocate proceeds from that issuance to reinforce our commitment to social and environmental initiatives. Additionally, we continue to maintain strong capital ratios on behalf of our policyholders in both the U.S. and Japan. We treasure our 38-year track record of dividend growth and remain committed to extending it, supported by the strength of our capital and cash flows. At the same time, we will continue to tactically repurchase shares, 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."

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