- Aflac (AFL) operating earnings of $759M or $1.62/share up a hair from a year ago. Excluding effect of weaker yen, which cost a $0.22 hit for the 2nd straight quarter, operating earnings gained 14.2% Y/Y
- About 2.3M shares repurchased for approximately $129M; 17.2M shares remain under repurchase authorization.
- Book value of $29.46 down 11.6% from March 31 thanks to marks on securities portfolio. Operating ROE of 22.1%.
- Japan: In yen terms, premium income up 8.6%, total revenue up 10%., operating margin up 190 bps to 21.5%.
- U.S.: Premium income up 3.5%, total revenue up 3.4%, net investment income up 3.1%. Operating margin up 120 bps to 19.5%.
- Outlook: Continue to see weak hiring, particularly at smaller employers where 90% of Aflac business is written ... working hard to achieve annual sales target. Plans to up allocation to JGBs and cut exposure to U.S. corporate bonds. Q3 will offer difficult Y/Y comparison - expects EPS of $1.41-$1.51.
- Earnings report earlier
- Shares -0.2% AH.