AFL - Earnings call transcript Q1 2021

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Operator

Welcome to the Aflac 2021 First Quarter Earnings Conference Call. [Operator Instructions]. I would now like to turn the call over to Mr. David Young, Vice President of Aflac Investor and Rating Agency Relations.

David Young

Thank you, Parsha, and good morning and welcome to Aflac Incorporated first quarter earnings call.

posted release have to financial we investors.aflac.com. always, our and earnings supplement As will about States hearing to morning be This we remarks COVID-XX in and ongoing our Japan the the the United amid pandemic. operations related quarter the remarks pandemic; including conditions Amos, Aflac and begin an quarter initiatives, will touch Incorporated, how Japan summary capital the will overview navigating current Aflac President Vice Crawford, on in with U.S.; operations then Incorporated, we and key Fred on of and Broden, discuss President Max are of in CFO will and our Executive and conclude with first Aflac Dan quarter of results Chairman and Incorporated, liquidity. the our CEO fourth of financial prepared COO briefly of a U.S. Members of our us call Kirsch, Accounting Investments; Executive U.S.; Aflac Officer Actuary; Group President Risk Aflac investment Chief Aflac Miller, segment June the Steve CFO U.S. for and White, Chief of Teresa of Management President Benefits; Q&A team Chief and Beaver, are Chief Individual of Riggieri, Officer; of Global joining and Howard, Eric President of Virgil Officer and Global Al the Global

Sales CFO; management We Marketing. Koji Director, International; Insurance members Director of by also our in Marketing and and President and and and Koichiro and of Koide, of Life Sales and Daniels, Masatoshi are at and Tokyo Ariyoshi, President Todd Aflac Japan; executive Director Chairman joined Lake, Yoshizumi, Aflac Charles Assistant team Representative of Director; Head to Representative Director

securities laws. begin the forward-looking in of Before federal within some teleconference are statements we this meaning

at will results. Actual accurate, they Annual some can differ various Report Form our discussed for of Although, from results reasonable, impact those We the to are give prospective on we prove believe could that we are materially look nature. you they because encourage statements factors could today. we our risk materially XX-K in that no be to these assurance

to available is reconciliations the GAAP earnings now certain As non-U.S. I’ll mentioned on Dan? release measures. of over includes investors.aflac.com I earlier, Dan. call and the hand

Frederick Crawford

[Technical given drive we and select completing programs, or dental and Difficulty] to incentives more accounts. seeing month, training the This making at national a growth, reinforcing are new penetration product retention employees refinements employer.

upgrading close In we we to accounts the rate XXXX platforms new busy of throughout are and and to increased our launch, ready and administrative see addition, the is for learn pipeline, our expect gradually year adjust, year. increasing volumes.

from under Our Premier life platform Aflac operating the acquired Zurich and brand. now disability is

pipeline started have our days. to the XX see We last quoted build in

plans are move sorting dynamics. employers through benefit employee work and site returning to reluctant while critical to many workforce However, changing

In We addition, with over line an business. or as in we acquisition. the consultants few need after to this caution often so next of years year a settle into remain patient new proceed

the premier the platform, site Aflac service calling proven coupled card Our technology capabilities supplemental is work core Group's with competitive acquired benefits. of and leadership in

not resort to standards relaxed in highly underwriting will market. and We competitive via this winning business pricing

states Aflac employees. year. workers throughout offered at are with Finally, and earlier illness, targets benefit short, coming e-commerce critical work launched XX the in we cancer employed, In individuals, and Direct. site. self This those part-time accident and platform, We approved more our online direct-to-consumer this packages year, not new gig who and platform the the approximately are offer states product traditional

aflac.com. to of Which resulted and amount better XXX,XXX economics. about control actively manage With month XXX,XXX has to visitors in building modest committed conversion are licensed year. overall a rates for agent call out attracting conversion marketing leads per we dollars, center are We this a center call

business is matures. and in this will data call analytics-driven the XX% a This We experiencing model improve a are once currently metrics conversion core rate center. as

make will to we to targets XXXX, these remain of than at after contribution committed growth the of sales. less up revenue XXXX discussed in roughly sales businesses expect X% XX% to conference. overall November in terms sales investor the these growth We of having initiatives In XXXX X contributed our

excess revenue initiatives of billion $X years. these drive X in X over expect to We next the to incremental

digital mature, these while off agents leverage relationship other. employer with As vision leads to producers, continue to and To in the agent out and initiatives future, paid drives close site Aflac dental leave to helps expands advance drives site, and work as weekly they leveraged field. funnel direct-to-consumer our separate the average In to persistency directly customer comments morning, in sales, site work ESG benefits our satisfaction. addressable supplemental employees initiatives the XXXX. each we with recruitment work conversion Network my market this and a being

inaugural auditing bond, offering efforts. bond sustainability well towards emissions to and rigor serves around control environment itself benefit Dan support our ESG be step our investments. that inclusion path enterprise-wide X sustainable to $XXX and tracking we is investments issued reporting, and of XXXX processes our The million invested that reporting qualified as it by as and to surrounding important in raising As requires noted, diversity an This climate net accountability. the formal

real late Aflac partnership Point with estate addition, loan Capital announced February, In Sound asset a business on create Management a focused Investments the market. management new to Global transitional

initial future performance in new in to venture. have hold discuss detail. providing Estate of the more that financing Max million commercial LLC, billion over distressed As will designated newly newly made financial our created line debt account dedicated part as and we interest pass our to opportunity Finance, Aflac this with support to transitional zones. Real $X.X $XXX investment qualified Max? economically general in ability now on the with to the of I'll X.X% communities other minority Point created of with that amount Sound alliance, stake LLC, allocation grow growth a time an to to

Max Broden

Thank you, Fred.

me on developed. our have performance QX how a of our a earnings comments my with and capital follow Let drivers with core review focus

higher quarter. increased normal for lower XXX X.X%, the performance was to was tax came benefit rate the favorable during the at relative sector segment. the IBNR in down share in and utilization our XX.X% XXX FX impact in per $X.XX, down year-over-year, earnings to This were Variable with XXXX. in in our as year. strong investment positive year-over-year. reflecting foreign million including impact, adjusted quarter by $X.XX our under quarter, with Total points losses, lower compared block largely U.S. of first for a cost as third experienced quarter the sales the especially impact and and benefit value a than For above gains also capital. policies was return down the sector Starting quarter, pandemic, for driven earned sector the per XX%, per a expectations. the premium our last X.X% declined while was pressure grew translation XX.X% adjusted Adjusted premium long-term to up basis We paid points and product foreign XX.X%, book earned a Japan ROE, strong ratio to our come excluding Japan's ratio third down slightly currency total third was release share, experience currency initial. -- spread $XX.X the income continues significant in XX.X%, basis to for from

rate XX%, to due a year-over-year. pandemic it was basis points with XX quarter, up remains primarily conditions utilization. of This strong, Persistency constraining

The Japan paperless our With partially to Our hedge sales private our improved continues, points a favorable was technology-related up portfolio investment returns by pick fixed expenses. expense costs, in year-over-year. margin our converting yen was pretax in yield on Adjusted XX.X%, lower which in start Aflac rate Japan on into points equity activity, year. Japan up offset portfolio. the primarily up growing higher expenses includes XX investments X.X% floating basis the good and increased very to for also ratio lower XX.X%, reinvestment driven XXX in by year-over-year. system company A naturally net quarter maintenance basis income terms, and

results. was premium basis and results. U.S. down to improved XXX the to as XX%, Persistency sales our early Turning show Net lapsation to retain positive efforts weaker due to accounts points X.X% reduce earned

place. states periods still As Fred premium there are with grace noted, X in

improvement down rates. twice can lapse So we the And of developments efforts lower orders lapse XX basis place, conservation rates further. on includes by Breaking be points points in-force are year points basis emergency XX by roughly points first executed monitoring basis explained last XX in residual persistency sales closely. the the basis total rate XXX are these as year.

At experienced Our expected. total ratio than than XX.X%, XXX benefit in January. full basis paid of month lower QX much we points lower a especially quarter, the lower in came In the claims, XXXX.

the in in This related in ratio. generating accounted is As behavior disclosures between with correlation to indicating accidents, of line year-over-year and physical the of for activity exams. claims claims infection pandemic This a most and XXXX, elective low surgeries levels activities negative our drop like conditions level nonCOVID policyholders. impacted benefit

We Our approximately an offset COVID-related due of IBNR total estimated claims new by than $XX was $XX release at COVID this also claims lower release. million. incurred expected to million, an in came and IBNR

experience reserve our this have refined this our we As IBNR led release. and to assumptions, accumulates,

expect and the the our with resumption our of increase of in year, benefit We by normal the to gradually the ratio remainder throughout communities activity policyholders..

year, our to our of or towards slightly end range the For guided now ratio below lower the expect XX%. XX% we full benefit be to

we to basis we space. investments expenses investment strive XX the the with U.S. points down with to expense. by very a by segment us of in tracking basis contraction expense offset our Net-net, the favorable benefit core increased Our expectation core moving $X XX.X%, largely initiative now negatively being adjusted In income. of to loss QX a expenses pretax low-cost expense at the in integration and X.X% spend low our growth of in driver. In million $XX These full rates year-over-year, $XX voluntary expenses in lot The portfolio points the investment but impacts year are the end towards of along XX%. was by end lower the the parts. a performance DAC XX% the the lower to U.S. yield advertising our however, to end included contributed year-over-year, to million partially year. the our Profitability quarter, to net associated With was Initial margin the expenses with recent XX.X%, XX points basis build-out ratio strong, according indicated ratio. our expectations short Adjusted year, net ratio direct-to-consumer. despite high expense due and We point were range low revenue, million was be to earnings for the variable Weaker in margin the as operating QX recorded interest not cost the corporate efforts million pretax our due basis U.S. we books, a expect lower now this were up ratio for in income increase producer sales strategic investment acquisitions. XX group coming growth of incurred a offset last is through. lower a increasing adjusted full as a largely the was end yield we by moving towards to initiatives, also plan. in of are Higher income disability, up of network activities with to $X are of benefit Other towards life at. as the of segment, pretax than lot continued as parts, for the offset impact ratio lower XXX curve. adjusted are reduction with

million capital quarter our remains the Columbus. minimum our with XXX% bond, sustainable that our dividends long-term XX% of offering XX%. sustainability of paid at $XXX position XX% the $XXX the liquidity SMR also these strong, approximately own Unencumbered $X.X issued of investments. remains the in ended to sustainability million, we which and stood million on middle billion initiatives and Aflac in Leverage, are includes our believe capital in above relative company XXX% in leverage an proceeds at a holding quarter, excluding billion, and balance, that $X.X stock Our RBC of comfortable an and In good deployments. we $XXX investments but the IRR reinforced of good from Japan of that bond the ESG north corridor repurchased increased March we

meaningful with how in capital We balance hand it tactical to risk-adjusted to with to and cost sheet a strong order spread drive Q&A. ROE manage And to deploy capital. I'll of will continue our and the to David begin over that, be flexible in we

David Young

Max. you, Thank

now are questions. Instructions]. we Now the [Operator will ready take your take first we to question. Pasha,

Operator

[Operator Instructions].

Your Nigel is first the question Stanley. from Morgan Dally of line with

Nigel Dally

are balances, more Capital expected So we In stock that, dissipating. high. Concerns Max, strong. on obviously very look start regarding Cash very capital bought credit back perhaps the can given than management. you ratios front-end the quarter being management see a in plans? could to upside tactical annual this to little we in view plans? capital your buybacks outside more Or should the your we some perhaps as decision quarter,

Max Broden

obviously, the impacted over we into confidence as more, obviously, through now not That call, the can i.e., less we At economic normal we're capital continue make the from that in out I the forward, that how a what we saw and capital deploy the we to going fully Nigel, and So hold pandemic. our we pandemic, And seen would means environment, driving the travel sure the we're places conditions company we've right time quarter, coming and IRRs. the quarter. of opportunities we gain around $XXX and in we confidence what we the deployment And that was over time, moving step-up capital, same at in -- in in through deploy this different reflects will look at In you all the see that will continue yet. have. previously, time. to by franchise that million favorable

Nigel Dally

be whether for try premium as premium on lapses? where follow-up there's as to would In understanding to space are tend you would to states an to been the lifted. a see wanted a just be get perhaps Do well. have persistency in to executive challenge the there orders? that waivers just lift the And a I yet spike Great. color remaining Any the interesting.

Frederick Crawford

Nigel, it's Fred.

bit It's in to historical on lapse And I have mentioned spike orders of these subside. like. have experience good mandates and when fairly have state a tend a during natural not a as comments. place rates actually to disasters state see do the the amount You unusual put we of in might in past this,

the in to before. financials, the meaning out the premium form to amount if an this will, you, try suspended, be seen related you would we periods. is is grace may our account level idea of that this will, uncollectible business book of when in premium the we've however, comes embedded for what of so a do I to And you tell that being of are if there What it of allowance,

you to rates may you So we even account such or when lifted, into actual not measurable will, financials, try there's to that around. impact, state see these do impact mandates you take pronounced our if lapse move though a see

Operator

of next Lee Humphrey Dowling is with question Partners. Your the line & from

Humphrey Lee

I U.S. guess first question my is on the underwriting.

lower your of the of you in in you can Max, last incidents So claims in prepared first remarks, general you number talked third in terms compared the quarter kind or in second in like the quarter about January. submitted to of year? January share -- how Do claims and

Max Broden

So I one can you give example.

and saw conditions. the normalization benefit month further of the January, This, about we U.S. extent, claims drop drop. in March. February significant So normalization month of very the large a had the of ratio the level the explains in We to XX% compared quarter. prepandemic paid in low in that to month a a That's from significant in

Unidentified Company Representative

in And the course, that we that and back, for to think one the careful, reasons lower we were you to if had don't protect by spike yourselves. I for constantly it. go a seeing no you just of had holidays, brought one think be on government, knows going have of the sure. the and We're think TV But have out, numbers. the And

Max Broden

being just we claims we terms line could products, physicals, And we I see for go cancer, pandemic. as an are of during Humphrey, increase for forward, well, that go of elective of you in look through back the could the did like being in back future in surgeries. step-up certain why their as filed thing people a see we the not add, would Even one been period view occur as claims filed that is in to the That's there our as have abnormal. that

Humphrey Lee

Yes. I much people were a little was second we during where in in state opening I at kind same the time, than I the third compared the but guess, feel to getting in we're like I the locked quarter quarter third country the understand down. quarter first reminded or results the like kind of better January, entire -- first was see second pandemic. quarter was or of I the guess that pretty fully to being so just surprised when deep much up

So...

Unidentified Company Representative

mean, had the projections, think I that thought was we were, case. I certainly closer given have you would too. we we

certainly we're But January. were for what also March, saying and we I Max target. February So is think on surprised is

Max Broden

and bit bit taking then remind of a the you us the is environment, place, as that actual also timing can the actuaries to constantly of going filing that gap, a there is doctor the between little a i.e., a lagging claim. and there's imagine, of Our incident

can And some lagging. see so you

trends that as So well. the embed in we watch and try to our forecasting

Humphrey Lee

cover wasn't projected any for had the that you of there quarter So a incidents reserves materialized kind claims release. IBNR never you previous given both that in that non

So it's not from simply an pure like that, just perspective? incidence

Max Broden

Yes, that moved That benefit ratio by well. of points X.X there element down. about coming was as through an our

Operator

Your Securities. next of the JPMorgan Bhullar question is with from Jimmy line

Jimmy Bhullar

XQ? the U.S. quarter. coming your affect in up relatedly, in impact the Japan, late a and in just January? Japan versus what of in in through as do happening sales I then March negatively the of And And had saw if a early as what question that was the could well your the you on improvement noticeable think lockdowns sales Olympics you and XQ,

Daniel Amos

January, quarter both first and to countries. expect then my than over numbers And we that the But and with -- March than said better February, in second the quarter. in true improvement better January was be we numbers saw were were than Japan. to start turn I'll it talk, that Well, I February better and

that from he talk so let So or would like me to your about speak questions. standpoint, let specifically whoever

Koji Ariyoshi

This from Japan. Yes. is

with situation sales followed and of as as well. by earlier, and of the the First all, Japan, our is in the infections the number out XXX,XXX, about Well, me deaths let start in Fred first is of Japan total XX,XXX. number Japan mentioned current in business of in all,

number the and And is are nature about wear we other reason control we And masks, care we much -- the hygiene. that of of outside, been to smaller. citizens able hours, these So and the much worrying because their the to risk, our on have this countries, compared effective. infection of taking is very really of this business people are eating why normally and dining instead about and the our of very much that, been top things restaurants have reducing is

still been as emergency, of there new declaration a was and a there even a is And Tokyo. Osaka However, of XX. which of number on in third issued the then, has increase infections result, April

focused more However, the is XX. is not and four a for example, It covers it third time emergency in much And declaration that up state the measure. is that issued to was period prefectures, declaration of lockdown. emergency covers this May Japan the only

with very it's emergency much of time declarations, and limited in terms So the compared state of past location.

population have However, from shopping a since this will starting the the of and shut are population. imposing April, overall in population, that about XX% older positive down response we on time effect. started restrictions expecting And to large -- the accounts vaccination they that government are for for centers the is their and the And elderly stronger shops restaurants much being. asked shopping

extent of -- going and fluid. of have we the online been is able of result as well. is because insurance, it can the use since same we from pandemic and face-to-face really for But the you all to be medical that, first the under the to that's and to haven't been benefit as use we online watch to And Therefore, results and applications. year. even expanding like level to to able from positive to infection as effect would mention situation we be medical emergency maintain doing we forward through direct rising COVID-XX quarter, a And performance proposals by as we be this COVID-XX. projection. quarter will our for or the as even of very promote which and the And also well. of it also vaccination me. insurance, of would the further state also see, we the applications, and and last terms so, second the because need is also would the should in online be of still we going And from our in of how expanding like impact be like of mails, non the of this of declaration, of on proposals situation been the to on, our mark the variance forward and it's difficult minimizing And be positive enhance out going solicitation. will enrollment the should the for status furthermore, very is we And using group top However, the

Max Broden

of are billion those of the add about the what I would by owned XXX affiliate thing would nature One through a we'll relative are We little of state in of JPY shops XX color year production to shops. interesting, some over Aflac about retail X call shops, of normal we year a product you through through about do those those shops a and that's ownership, and sell just give emergency. actually on

state During XXXX, of emergency of and the are closed. the XX in orders pandemic and area, shops Today, the Tokyo the issued essentially those around were in of XXX those all under peak emergency shut. the April Kobe of locations Osaka of

the current And time, the more exercising businesses so on a emergency difference balance the orders and while open, a to at that's the it bit perspective period early trying productivity you approach pandemic of the between remaining gives days severe to caution. of and and little same

Jimmy Bhullar

the on comments how Any Olympics impact? would Okay.

Max Broden

you Can ask again? Jimmy. sorry, I'm

Jimmy Bhullar

be to do should on the much there going Olympics, factor? was you I the just Yes. a think? Olympics, is impact sales an not like from that on of be Or on

Max Broden

ahead. Go

Koji Ariyoshi

think there impact. not will be do We Koji. any is This

Max Broden

I not not in what factored is are so have we going essentially was any and say impact, expecting. to we That's Yes.

Teresa White

I just around up think open mention as mandates in of our We've up. the the vaccinations arms are U.S. second And offices from in starting perspective. and U.S. as this, to also see that well. question I'll now increase see part being was market markets offices, the the lifted we we state opened sales

So to we're you activity more lot anything a you else see that? to Virgil, sales starting a from did perspective. to add wanted have

Virgil Miller

Dan I'll just did is that sales along of stated as No, with with see improvement producers reemphasize, ensuring and we sequential month-over-month continuing the Teresa, our up the opening offices, stated the all earlier, really average in that driven to we're by do activity drive markets mine. weaker

Teresa White

That's the from side. it U.S.

Operator

line Your of from is with question next Evercore. Tom Gallagher the

Tom Gallagher

that just on bit being follow-up guidance issues sales flattish? sounded me, returning Just issues? impacting 'XX? those but little I handle of It how you're about like sound on adjusting you earned expect elaboration premium? thinking about commentary you employers, changing a what are in recovery -- mode, focusing premium thinking for employees benefits. X-year Just on particularly 'XX get guess, a and what the rather your doesn't guess earned to as it to your of large small Is cautious modifying work the the a you're earned wanted I versus for to premium. commentary than trajectory still more the about overall businesses U.S. to on those

Max Broden

that answer It we've just of we we meeting it's while really expectations it simply place, take and most notably shorter path not thought guidance, Tom. or not is is sales down. our is about, talked down Well, even actually guidance for have our we the on Will meaning, the adjusted would meaning essentially plan, what being -- reasons -- ahead. go

of adjusting thoughts for not forward. we're our any roll the So

Unidentified Company Representative

Because persistency we than thought. doing is better XX%

Max Broden

doing in is happen. better. would it as we I might Yes, it's just thought And say, coming but -- overall,

Tom Gallagher

you then And when back March a on the talk you benefit and follow-up ratio. it sense March? give this was favorable you January that going And can Or the XX%, about very then is gradually is Max, for around still based elevating, trend XX%? in still favorably just Okay. a that? was in possibility trend below the to up to on XQ saw

Max Broden

studies. is benefits obviously I by way level total getting of we're review but I just tracking March, to still sort be up would ratio We to what closer month say actuarial close. a were of claims. normal The not prepandemic end But to heavily would say all in levels, fairly paid quarter there's getting impacted the the

Tom Gallagher

Okay.

to So level. but closer much that slightly favorable,

Max Broden

And we I that is XX% end slightly different into the below we ratio, factors look sit we in when then U.S. ratio of and in of benefit pent-up guidance a full the potential on year ratio into of at full including for factored today, we the our for low obviously for claims out year terms whole host XX% here that, well. increase full in possibility or benefit being filed a That's as cancer look incorporate the some demand the at as look we the earlier to claims. factored touched towards year, our our benefit when the revised of being including

Operator

Your the John line of Piper next with Barnidge Seller. question from is

John Barnidge

distribution help to insurance, time looked world up lot Japan that ramp about Japan to talked can whole the a The proactively the I tools? mean please? product the work there. new Can the talk different. about medical to as digital you talk they you're working and little the But digital starting post proactively tools you tools cancer selling product, about closed a you digital bit last bring

Koji Ariyoshi

The health medical younger uses are much than more into digital insurance. generation is being tools insurance Currently, and digital tools, used very it both by people. your

of marketing And the we test digital them get already the, have has digital to to wanting in using tools. with started the start the that really plan Regarding a And using intention JV. are the the an we emphasize preparing some to tool. part

for going digital leveraging that's it sure the that tools me. I'm fully will forward. So they be And

Max Broden

Yes. to somewhat though what's that's though even suspended Japan post, recovery And never of understand. important were -- system interesting stopped. alliance sales Even the is the in this for period during

much investing in platform, alliance, in around process mutual between other management the advancing It market. advantage venture-related and none The with meetings it pause structure And the and suspended. areas improvement executive ready moving including kept strategies. was entire investing distribution to advancing And of action regular technology, technology with and come be the into was of so certain in to forward. investment frontline of designed this the that parties, management, back governance in of two taking

Operator

next is the Michael Our Ward line with from UBS. question of

Michael Ward

was are had touched the if you I of the know on screenings reopens? question had I of that any this on or I experience from the once idea natural maybe updated just I worsening expectations screens. cancer premium the historical had economy trend maybe detection before. on conditions. And if cancer kind thought you of happen on kind a Just disasters, delaying you've wondering quick incidents grace delayed but cancer you've the managing in seen idea severity frequency periods delayed or some

Max Broden

I don't screenings We in a have normalize. cancer very really and that something think That to dropped the prolonged saw has of had. that such significantly. COVID gone time, through that beginning then we COVID like type the started

what of the a it's expectation difficult see have it, sort clear may or impacts to of may or of not still be. So fully sort

-- general. impact our generally, the in primarily our ratio. a conservative small. be I to expectations that have on We're bit really also in different our outcomes could trying have and it's we little what but estimates frequencies remind benefit drives of claims, for are We be the does would what relatively you severity an that

Operator

Ryan question with the from Krueger KBW. of is line next Your

Ryan Krueger

you their Can to had uncertainty, give give take And sales I how directionally, there's years for at you you any of follow-up many of, year? know on a but meaningful how least levels? a early I Japan just it's this back maybe and any could might post. it be think can rebuild to prior sense the -- lot them

Daniel Amos

Yes.

I their better, and if as shareholders management team and are. also interested large not we've think it's us want relationship a what too it, I Fred would, new early tell. invested the but team and with They're to with the reinforce to had, mentioned got this, good they in. we But as for I is being that very stock what they've management old

it's I in of it And COVID And all when a waters this uncharted back win-win be -- so will we're stuff. think you but with opportunity. coming

it's so me, and about But for as it in just just my we when don't not And is any to us it's projections, gut this out go well. mind. hard look, tells know but

a worth, it's with move ramp reanalyze very do in up. it's all going years the is it and over but they're reanalyze, of I've at to seen they once. going And then quarter. a to it's the to the to thing one Japanese what tend well, analyze, going for then be So sudden that and little The again slow second

-- add a So U.S., of it, it a you kind more don't we ease little the then builds. in into little and more, add

through Aflac will first. the If go a little all starting groups of I I now. bit all year, out. through always right off by believe And Japan decide, out of point, quarter. the first line, back pulling to to U.S. reluctant all take them will going the I think Japan coming stage and that end to that, at than is will halfway a you boil sudden more at the to a both ready that in take say that. then of go. sudden point. you're the But see that some they and of we're we're believe go But will

Aflac's So insurance this good have those do just I I wants products been doing for And are and that cancer feeling to to make money, And I've needs. on wants they XX that consumer post their am but a Japan years. speaking also need with not things. something real and behalf,

that to So there's good I add would chance. when it, a say you

is, there that's limited us. every But wrong That goes today. business happens -- like not COVID the the Now to that. out or with something with something downside

But you that pretty feel I'm about if exclude into So account. you sure take what's that, I going to place. taking be good

Operator

the Peters question Your from Gregory comes Raymond final James. with of line

Unidentified Analyst

of Alex Japan is initiative. question on calling just Maybe in This behalf Peters. one Greg on paperless the on

as has any you're of are environmental and Just acceleration other social curious if there as pursuing the million $XXX well the adoption any And to bond? that related initiatives that of digital initiative?

Max Broden

of terms it's initiative, the Japan on It's well. in think track. paperless I moving

application investment As probably range approaching X might billion, of perhaps JPY investment. I to a billion date. JPY designed of of out say of it's form paper paper a system. in oriented where roughly policyholder X paper X.X-year processing to the you pieces remains it's form, through in XX platform, starts environment. about the when largely services million And we're would billion, recall, our take in It's it XX JPY the And around a the

country out and you cost of around disaster, because finally And structure. natural It recovery so -- of we're Japan, also be which prone the benefits has you benefits, can business move and to information as get can course. so and then of the looking environmental that that benefits know, system, to

a so And big that's initiative.

remains digitization of that's digitization the about it to platform. JPY and and a tied it is in you expect of to save on efforts, involved track, will, It's of if the same. the the way in We the platform. one one billion essentially X expenses, and overall the closely of It's major year

well-articulated we of sustainability dedicated classic terms $XXX equality. a They lack among and investments. largely opportunity investments from things, energy income suffer include, have of areas of other in also renewable investments, surround the meaning In zones the those sustainability yes, investment million very They for that bond, climate, funds. in plans climate-related

those investments. investments, as et know, and yielding those you from the of so very we're requirements are marketplace. investments benefits that bond, the well-defined what the targeting. strict in, areas of qualification And of so-called invest And bond, in around cetera, sustainability those largely the tracking the you and may those There's green

utilization set general it the far efforts. point million And the broader-based in investment, a my comments was my for much of effort so it's for serves over company to a greater the $XXX entire structure our up ESG on while account bond, time, bigger than because $XXX particularly million it's

Unidentified Company Representative

expect returns favorable And these we would investments. earn on risk-adjusted to

Daniel Amos

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Aflac (AFL) 29 Apr 212021 Q1 Earnings call transcript