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A moderate late-session bounce in the S&P isn't helping many in the insurance sector stuck...

A moderate late-session bounce in the S&P isn't helping many in the insurance sector stuck near the day's lows. Of particular interest is Aflac (AFL -4.1%) as the yen slides and the JGB market encountered a brutal selloff last night. The company presumably has significant exposure to both, but also presumably is hedged? PRU -3.4%, HIG -3.2%, LNC -2.4%.
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Comments (3)
  • Ray Merola
    , contributor
    Comments (4311) | Send Message
     
    The yen/dollar conversion rate is a red herring. It is an accounting issue, not a cash or operational one. AFLAC does not exchange currencies back and forth across the Pacific.

     

    They do undertake modest hedging.

     

    The dividend is paid in USD and the Stateside part of the business generates more than enough cash for that. AFL has raised the dividend annually for some 28 years or more.

     

    The recent selloff is a gift for those accumulating the stock.
    5 Apr 2013, 04:19 PM Reply Like
  • Dividend Garden
    , contributor
    Comments (453) | Send Message
     
    Agreed, Ray. Long AFL.
    5 Apr 2013, 10:49 PM Reply Like
  • Vinofilo
    , contributor
    Comments (109) | Send Message
     
    Agreed, but would like it more at 48 though I bought 1/2 of my wanted position increase yesterday.
    6 Apr 2013, 09:26 AM Reply Like
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