Tue, Feb. 3, 4:16 PM
- Q4 operating earnings of $581M or $1.29 per share vs. $651M and $1.40 one year ago. Weakness in the yen knocked $0.08 from operating EPS. Operating ROE in Q4 of 16.3%, or 18.9% excluding the impact of the weaker yen.
- 8.6M shares repurchased during quarter for a total of $510M. Full-year purchases of 19.7M shares for $1.2B. Another 29.6M shares remain under authorization as of year-end.
- Aflac Japan premium income up marginally Y/Y. Net investment income up 10.3%, which was magnified by the weaker yen as 48% of company's Q4 investment income was dollar denominated vs. 45% a year ago. New annualized premium sales down 23.3% to $1.1B.
- Aflac U.S. premium income up 1.2% to $1.3B. Net investment income of $161M up 1.8%. New annualized premium sales up 14.1% to $454M.
- Outlook: With 2014 coming in at the top end of expectations, it makes for a tougher comparison in 2015, but company keeps goal of 2-7% growth in operating EPS (before currency).
- Conference call tomorrow at 9 ET
- Previously: AFLAC EPS in-line, beats on revenue (Feb. 3)
- AFL flat after hours
Tue, Feb. 3, 4:06 PM
Mon, Feb. 2, 5:35 PM
Wed, Jan. 28, 4:03 PM
- A study done by researchers from New York and Columbia Universities found that premiums were slightly higher for policies offered on state-run health exchanges where there were higher numbers of competitors, precisely the opposite effect that supposedly characterizes more intense competition.
- Overall, average monthly premiums were $5.71 higher per additional insurer (p<0.001). In addition, average monthly premiums were $3.18 higher per additional insurer for identical plans offered.
- The analysis focused on the prices for each unique insurance plan offered on the exchanges in each geographic rating area. The number of rating areas varied widely in the 34 states examined, from only one in NJ, NH and DE to 67 in FL.
- The authors acknowledge that the higher premiums may be due to higher cost areas (urban vs rural) where more insurers are located rather than a lack of competition.
- Related tickers: (NYSE:AFL) (NYSE:AIG) (NYSE:AET) (NYSE:CI) (NYSE:CNC) (NYSE:UNH) (NYSE:ANTM) (NYSE:MOH) (NYSE:HNT) (NYSE:HUM) (NYSE:WCG) (NASDAQ:MGLN)
Nov. 7, 2014, 1:02 PM
- Citing disappointing growth guidance and continued weakness in the yen (which cuts into revenues), Bank of America downgrades Aflac (AFL -1.1%) to Neutral from Buy.
- The company last week lifted its dividend, boosted its share repurchase target, and guided to 2015 EPS growth of 2-7% on a currency neutral basis, but - after a brief pop - the stock retreated and has failed to make any headway since the news.
Oct. 28, 2014, 6:08 PM
Oct. 28, 2014, 4:35 PM
- Q3 operating earnings of $685M or $1.51 per share vs. $687M and $1.47 one year ago. $175M or 2.9M shares were repurchased during Q3, bringing YTD buybacks to $690M or 11.1M shares. 38.1M shares remained in authorization as of Sept. 30.
- Book value of $39.63 per share vs $38.76 at end of Q2. Annualized ROE of 15.9%. Annualized operating ROE of 18.8%, or 20.8% excluding impact of yen.
- Aflac Japan: Premium income fell 5.4% to $3.5B, helped down by a weaker yen. Net investment income up 2.7% to $676M. Total revenues off 4.2% to $4.2B.
- Alfac U.S.: Premium income up 1.1% to $1.3B. Net investment income up 1.6% to $162M. Total revenues up 1% to $1.5B.
- Quarterly dividend is boosted 5.4% to $0.39 per share. Annualized yield based on today's close of 2.6%.
- Outlook: 2014 share buyback goal is lifted to $1.2B from $1B. 2015 objective is set at $1.3B. 2015 operating EPS growth guidance of 2-7% on a currency neutral basis.
- Conference call at 9 ET
- Previously: AFLAC beats by $0.08, beats on revenue
- AFL +0.7% AH
Oct. 28, 2014, 4:09 PM
Oct. 27, 2014, 5:35 PM
- AEC, AFG, AFL, AJG, AMCC, AMP, APC, ARI, AZPN, BGFV, BLDP, BOOM, BXP, CAP, CBT, CEB, CHMT, CHRW, CINF, CRAY, DLR, DNB, DYAX, EA, EIX, EPR, EQR, ESRX, EXP, EXTR, FARO, FB, FEIC, FISV, GFIG, GILD, GPRE, HIW, HLIT, HTA, HTS, HURN, INAP, INVN, IPHI, KEYW, KIM, KONA, MAC, MAR, MCK, MRCY, MWA, NANO, NFX, OI, PEI, PLT, PNRA, PSMT, RJET, ROG, RPXC, SKT, SM, SWI, TQNT, TRN, TSS, UDR, ULTI, USNA, VRSK, VRTX, WDC, WES, WGP, WNC, WSH, WTS, WYNN, X, XCO, XOOM, ZLTQ
Sep. 16, 2014, 3:27 PM
- CIO Eric Kirsch joined Aflac (AFL -1.5%) in 2011 with a 3-year plan to boost returns by cutting allocations to JGBs. He also pulled back from private placements after the insurer got fried on yen-denominated loans to European banks. Boosted were holdings of U.S. corporate debt and alternative investments.
- The 2nd 3-year plan begins in 2015, and Kirsch - speaking at a presentation in Tokyo - pledged continued higher allocations to growth assets like private-equity, real estate, infrastructure, hedge funds, and public equity.
- Previously: Calpers exiting hedge funds
Jul. 29, 2014, 6:14 PM
Jul. 29, 2014, 4:38 PM
- Operating earnings of $757M or $1.66 per share vs. $759M and $1.62 one year ago. Weaker yen cut operating earnings by $0.03 per share in Q2.
- $100M, or 1.6M shares repurchased during Q2, bringing 2014 purchases to $515M or 8.1M shares. 4.1M shares remain in buyback authorization.
- Annualized operating ROE of 21.3%, or 22.3% excluding impact of the yen.
- Outlook: Aflac Japan third sector sales for the full year are expected to increase at the low end of previously guided 2-7% range. Aflac U.S. sales "remain disappointing" and are expected to fall 4-8%. EPS is expected to rise 2-5%, with FY EPS of $6.16-$6.30, assuming yen averages 100-105 to the dollar.
- Company has reshuffled the organizational chart, introducing the new position of market director and eliminating the commission-based position of state sales coordinator.
- Conference call tomorrow at 9 ET
- AFL -0.9% AH
- Previously: AFLAC beats by $0.07, beats on revenue
Jul. 29, 2014, 4:11 PM
Jul. 28, 2014, 5:35 PM
- ACHC, ACMP, AEC, AEGN, AEGR, AFL, AJG, AMCC, AMGN, AMP, APC, APU, ARI, AXP, AXS, BGFV, BLDP, BOOM, BWLD, BXP, CALX, CAP, CBG, CBL, CEB, CEMP, CHMT, CHRW, CINF, CLD, CLMS, CPWR, CRAY, CSLT, CVD, DLR, DOX, DWA, EEFT, EQR, ESRX, EW, EXAM, EZPW, FARO, FBP, FISV, GAS, GNW, GPN, GPRE, HTA, HURN, IGT, INAP, INVN, IPHI, IVR, KIM, LNDC, MAR, MOVE, NATI, NCR, NEM, NEU, NFX, NTRI, NUVA, PEI, PLT, PNRA, QGEN, RBC, RGR, RKT, RNG, RNR, ROG, RPXC, RT, RUBI, SB, SLCA, SM, SQNM, TMH, TRN, TWTR, TX, UGI, ULTI, USNA, VRSK, VRTX, WNC, WSH, WTS, X, XCO, XPO
Jul. 8, 2014, 7:25 AM
Jun. 30, 2014, 2:56 PM
- Aflac's (AFL -0.7%) long-term counterparty rating is lifted to A from A-, and the junior subordinated debt rating to BBB+ from BBB. The agency also affirms the AA- financial strength and counterparty ratings on Aflac's core insurance entities. The outlook, however, is negative.
- "We based the upgrade on very strong fixed-charge coverage ratio, 15x as of year-end 2013, moderate financial leverage ... for the current rating level, strong operating company dividend capacity, and liquidity at the holding company relative to its ongoing obligations, such as interest and principal payments on debt," says analyst Deep Banerjee.
- The negative outlook reflects S&P's negative outlook on Japan, and any downgrade of Japan would lead to a similar move on Aflac.
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