Industry Overview - The Zacks Accident and Health Insurance industry is expected to benefit from increased underwriting exposure, with companies like Aflac Incorporated, Unum Group, and Trupanion likely to be driven by prudent underwriting standards [1] - The global worker's compensation insurance market is projected to grow significantly between 2024 and 2032, driven by rising awareness of the benefits of coverage [2] Trends Impacting the Industry - Pricing pressure is anticipated to continue due to inflation and rising medical costs, with a projected 5.3% CAGR in workers' compensation insurance pricing from 2022 to 2026 [3] - Claims frequency is expected to improve as safety measures and working conditions enhance, potentially leading to lower claims costs and increased productivity [4] - The adoption of technology, including artificial intelligence, is accelerating in the industry, which could reduce workers' compensation claim expenses by approximately 45% [5] Industry Performance - The Zacks Accident and Health Insurance industry currently holds a Zacks Industry Rank of 103, placing it in the top 41% of 251 Zacks industries, indicating positive near-term prospects [6] - The industry's earnings estimate for the current year has increased by 8% over the past year, reflecting growing analyst confidence in earnings growth potential [7] - The industry has outperformed the Finance sector and the Zacks S&P 500 composite, with a year-to-date gain of 33.6% compared to 15.8% and 21% respectively [8] Current Valuation - The industry is trading at a trailing 12-month price-to-book (P/B) ratio of 1.93X, lower than the Zacks S&P 500 composite's 3.83X and the sector's 8.77X [9] Company Highlights - **Aflac**: This company offers voluntary supplemental health and life insurance products, with a focus on digital solutions and strategic growth investments. It has a Zacks Rank of 2 and has seen a year-to-date stock gain of 36.8% [11][12] - **Unum Group**: This insurer provides long-term care and group benefits, with expected sales growth of 5-10% in 2024. It has a Zacks Rank of 3 and a year-to-date stock gain of 30.2% [13][14] - **Trupanion**: Focused on pet insurance, this company operates in a large but underpenetrated market, with a Zacks Rank of 3 and a year-to-date stock gain of 35% [16][17]

Company Performance - Aflac (AFL) has returned 36.8% year-to-date, outperforming the Finance sector average return of 17.1% [2] - BGC Group (BGC) has also shown strong performance with a return of 33.2% since the beginning of the year [2] - Aflac holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook [1][2] Industry Analysis - Aflac is part of the Insurance - Accident and Health industry, which has an average return of 34.7% year-to-date, indicating Aflac's strong performance within its industry [3] - BGC Group operates in the Financial - Investment Bank industry, which has returned 17.4% since the beginning of the year [3] - The Finance group ranks 4 within the Zacks Sector Rank, with Aflac being one of 871 companies in this sector [1]

Core Points - Aflac Incorporated will release its third quarter 2024 financial results after market close on October 30, 2024 [1] - A conference call to discuss the quarterly results and outlook is scheduled for 8:00 a.m. (ET) on October 31, 2024 [2] - Aflac is a leading provider of supplemental health insurance in the U.S. and cancer and medical insurance in Japan, with a strong commitment to corporate social responsibility and sustainability [3] Financial Results Announcement - Aflac will provide earnings materials, including a quarterly earnings release and financial supplement, on its Investor Relations website [1] - The financial update video will feature Executive Vice President and Chief Financial Officer Max Brodén [1] Conference Call Details - The conference call will include discussions led by Chairman and CEO Daniel P. Amos and CFO Max Brodén, along with other executive management members from the U.S. and Japan [2] - Registration for the conference call is required five to seven minutes prior to the start time [2] Company Overview - Aflac has been providing financial protection for over 68 years and is recognized as the No. 1 provider of supplemental health insurance products in the U.S. [3] - In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance based on policies in force [3] - The company has received numerous accolades for its ethical practices and sustainability efforts, including being listed in the World's Most Ethical Companies for 18 consecutive years [3]

Core Insights - Nearly 75% of American workers experience stress and anxiety when covering for coworkers on paid or extended leave, highlighting the significant impact of employee absences on those remaining at work [1][2] - About 50% of workers report experiencing burnout when covering for employees whose leave extends beyond nine weeks, indicating a correlation between prolonged absences and employee well-being [1][2] Group 1: Employee Impact - 73% of workers reported experiencing stress and anxiety while covering for a coworker [2] - 42% of workers experienced burnout when covering for a coworker whose leave period extended beyond nine weeks [2] - The studies indicate that employee perspectives on work-life balance and mental health have shifted post-pandemic, necessitating a reevaluation of workplace environments [3] Group 2: Employer Response - 48% of employers have observed an increase in employee leaves over the past year [2] - 94% of employers have taken action to support employees covering for coworkers on leave, yet only 74% of employees feel that their employers have provided any support [2] - Effective communication and recognition are essential for employers to support employees maintaining business continuity during coworker absences [2][3] Group 3: Industry Trends - The coordinated studies by Aflac and Prudential aim to foster dialogue on managing work and time away effectively as more states and employers adopt paid leave as a benefit [3] - The findings suggest that as paid leave becomes more common, understanding its impact on workforce bandwidth, costs, and productivity is crucial for employers [3]

Core Viewpoint - Aflac (AFL) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings potential, which is expected to positively influence its stock price [1][2]. Earnings Estimates and Revisions - Aflac is projected to earn $6.75 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 8.4% [5]. - Over the past three months, the Zacks Consensus Estimate for Aflac has risen by 4.6%, indicating a trend of increasing earnings estimates [5]. Impact of Institutional Investors - Changes in earnings estimates are closely correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [3]. - An increase in earnings estimates typically leads to higher fair value calculations for stocks, prompting institutional buying or selling, which drives stock price changes [3]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - Aflac's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [7].

Core Points - Aflac is renewing its commitment to support families facing pediatric cancer and blood disorders through its Bridge to Brighter program during Childhood Cancer and Sickle Cell Awareness Month [1][3] - Since 1995, Aflac has raised nearly $184 million for pediatric cancer and blood disorder initiatives, with significant contributions from its employees and independent sales force [1][4] - Aflac's philanthropic efforts include support for the Aflac Cancer and Blood Disorders Center of Children's Hospital of Atlanta, recognized as one of the top pediatric oncology programs in the U.S. [1][3] Company Initiatives - Aflac launched new resources for Childhood Cancer and Sickle Cell Awareness Month, including a dedicated webpage and various support materials [2][3] - The company provides a comforting robotic companion, My Special Aflac Duck, free of charge for children aged 3 and up diagnosed with cancer or sickle cell disease [3][4] - Aflac is offering $15,000 in grants to fund Child Life Specialist programs across the country to support the psychosocial needs of pediatric patients and their siblings [4] Community Engagement - Aflac's resources include a digital toolkit for community support, social media materials, and inspiring messages from notable sports figures [3] - The company encourages donations to support the Aflac Cancer Campaign and its initiatives [3][4] - Aflac's commitment to corporate social responsibility is highlighted by its recognition in various ethical and sustainability indices [5][6]

Company Performance - Aflac (AFL) has shown a year-to-date performance increase of approximately 31.6%, outperforming the Finance sector's average return of 15.4% [2] - Aflac currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [1][2] - The Zacks Consensus Estimate for Aflac's full-year earnings has increased by 4.6% over the past quarter, reflecting improved analyst sentiment [2] Industry Comparison - Aflac is part of the Insurance - Accident and Health industry, which has seen an average gain of about 29.7% year-to-date, indicating that Aflac is performing better than its industry peers [3] - Another notable stock, Arthur J. Gallagher (AJG), has achieved a year-to-date return of 32.2% and belongs to the Insurance - Brokerage industry, which has increased by 35.9% year-to-date [2][3] - The Insurance - Accident and Health industry is currently ranked 58 in the Zacks Industry Rank, while the Insurance - Brokerage industry is ranked 9 [3]

Core Viewpoint - Aflac's recent earnings report shows strong performance with adjusted earnings per share beating estimates and a notable increase in investment income, despite a slight decline in overall revenues [2][3]. Financial Performance - Aflac reported Q2 2024 adjusted earnings per share of $1.83, exceeding the Zacks Consensus Estimate by 15.1% and increasing 15.8% year over year [2]. - Revenues decreased from $5.2 billion to $5.1 billion year over year, but still surpassed the consensus mark by 17.4% [2]. - Adjusted net investment income rose 15.8% year over year to $1 billion [3]. - Total net benefits and claims decreased 8.4% year over year to $1.9 billion [3]. - Total acquisition and operating expenses fell 4.1% year over year to $1.2 billion [3]. Segment Performance - **Aflac Japan**: Adjusted revenues decreased 9.7% year over year to $2.4 billion, with total net earned premiums dropping 16.9% to $1.7 billion [4]. Adjusted net investment income increased 13.8% to $725 million [4]. - **Aflac U.S.**: Adjusted revenues increased 1.3% year over year to $1.7 billion, while total net earned premiums climbed 2.1% to $1.5 billion [5]. Adjusted net investment income rose 7.4% to $218 million [5]. Financial Position - As of June 30, 2024, Aflac had total cash and cash equivalents of $6.1 billion, up from $4.3 billion at the end of 2023 [7]. - Total assets decreased to $120.2 billion from $126.7 billion at the end of 2023 [7]. - Total shareholders' equity increased to $26 billion from $22 million at the end of 2023 [7]. - Adjusted book value per share rose 12.1% year over year to $52.26 [7]. Capital Deployment - Aflac repurchased 9.3 million shares worth $800 million in Q2 2024, with 59.2 million shares remaining for buyback [8]. - Management announced a dividend of 50 cents per share for Q3 2024, payable on September 2, 2024 [8]. Outlook - Aflac anticipates improved sales in its Japan business for 2024, focusing on third-sector products and younger customers [9]. - The company expects the benefit ratio in Aflac Japan to remain between 66-68% and in Aflac U.S. between 45-47% for 2024 [9]. - Expense ratios for Aflac Japan and U.S. are projected to stay within 19-21% and 38-40%, respectively [9].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps identify effective metrics for assessing momentum in stocks, addressing the challenges investors face in defining momentum [1] Group 2: Aflac's Momentum Style Score - Aflac (AFL) currently holds a Momentum Style Score of B, indicating potential for solid momentum [2] - The Zacks Rank for Aflac is 2 (Buy), with research showing that stocks rated 1 (Strong Buy) and 2 (Buy) with Style Scores of A or B tend to outperform the market in the following month [2] Group 3: Aflac's Price Performance - Aflac shares have increased by 2.46% over the past week, outperforming the Zacks Insurance - Accident and Health industry, which rose by 2.31% [3] - Over the past month, Aflac's price change is 14.1%, significantly higher than the industry's 4.42% [3] - In the last quarter, Aflac shares rose by 23.14%, and over the past year, they gained 45.73%, while the S&P 500 increased by 5.71% and 27.74%, respectively [4] Group 4: Trading Volume and Earnings Outlook - Aflac's average 20-day trading volume is 2,354,504 shares, indicating a bullish sign with rising stock prices on above-average volume [4] - In terms of earnings estimates, 7 estimates for Aflac have been revised upwards in the past two months, raising the consensus estimate from $6.46 to $6.73 [5] - For the next fiscal year, 7 estimates have also moved upwards, with no downward revisions during the same period [5] Group 5: Conclusion - Aflac is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [6][7]

Core Insights - Aflac is launching its annual college football campaign featuring the Aflac Duck alongside coaches Nick Saban and Deion Sanders, focusing on how Aflac assists with expenses not covered by health insurance [1][4][5] Company Overview - Aflac is the leading provider of supplemental health insurance in the U.S. and has been providing financial protection for over 68 years [7][8] - The company is recognized for its commitment to corporate social responsibility and sustainability, being included in various ethical and sustainability indices [8] Marketing Strategy - The new campaign includes two commercials titled "Name, Injury, Likeness" and "Gone Fishing," aimed at educating consumers about the financial gap left by health insurance [3][6] - Aflac has secured NIL deals with Saban and Sanders to enhance brand visibility and engagement with college football fans [4][5] Partnership and Sponsorship - Aflac is deepening its partnership with the University of Colorado, becoming the "Official Coaches Headset Partner" and providing custom headsets for the coaching staff [5] - The commercials will debut on major platforms, including ESPN GameDay and ABC, to maximize reach [6]