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Aflac exits U.S. Medicare supplement market

  • "We determined that the product did not meet our sales targets and profit objectives," says Aflac (AFL +0.3%) CEO Dan Amos in an emailed statement explaining why the insurer is withdrawing from the U.S. Medicare supplement market after a year.
Comments (5)
  • Dividend Garden
    , contributor
    Comments (423) | Send Message
     
    The article doesn't give any details beyond the one bullet point above. What did this foray cost shareholders?
    17 Sep 2013, 09:56 AM Reply Like
  • tomhtomh
    , contributor
    Comments (2) | Send Message
     
    AFLAC has been in this market much longer than a year unless they are talking about some sort of group product. As far as what it cost - did you ask that question on the products that panned out?
    17 Sep 2013, 10:58 AM Reply Like
  • Dividend Garden
    , contributor
    Comments (423) | Send Message
     
    I was referring to the charge for discontinued operations that will go to the bottom line as they exit. GAAP doesn't require them to take a charge like that for continuing operations.
    17 Sep 2013, 11:10 AM Reply Like
  • tomhtomh
    , contributor
    Comments (2) | Send Message
     
    I understand the accounting. To the casual reader your statement could seem to imply management incompetence rather than an accounting concern. I was simply pointing out that seldom does anyone get them all right all of the time. I am sure whatever the charge is it will not be material to any meaningful way given the earnings numbers of this organization.
    17 Sep 2013, 12:09 PM Reply Like
  • xlchill@aol.com
    , contributor
    Comments (8) | Send Message
     
    AFL sells most of its products at the workplace so most of the people they sell to don't need medacare insurance. Perhaps if they teamed up with something like AMAC and sent salespeople out to meet potential customers face to face it would have worked.
    17 Sep 2013, 03:16 PM Reply Like
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