Aug. 1, 2013, 3:08 PM
- The insurance sector (KIE +2.1%) is flying higher with a number of new 52-week highs, led by MetLife (MET +6.2%) and Lincoln National (LNC +6.6%) which both posted big earnings numbers overnight.
- MetLife meant what it said about a shift away from capital and market-sensitive products with variable annuity sales off 40%. While management will not launch share buybacks while the SIFI designation process winds along (another 7-8 months), the team wouldn't rule out (CC transcript) another increase in the dividend (it raised it to $1.10 from $0.74 earlier this year).
- Under no such regulatory thumb, Lincoln has been busy buying back its shares at well below book value for some time. On the CC (transcript), management trimmed guidance for the negative impact of low interest rates from a $100M hit to earnings to a $35M hit (company made $351M in Q2).
- Other insurers on the move: Prudential (PRU +4.8%), Aflac (AFL +2.7%), Hartford (HIG +3.6%), ING US (VOYA +3%), Old Republic (ORI +2.5%).
- AIG (AIG +3.4%) nears a new 52-week high ahead of its earnings after the bell.
Jul. 31, 2013, 1:01 PM
- Aflac (AFL +1.8%) hits a new 52-week high today after last night's earnings.
- On the earnings call (transcript), management makes note of its expanded alliance with Japan Post, increasing over time from 1K to 20K the number of post office outlets in which Aflac's cancer products will be offered.
- It's a "game-changer," says Aflac Japan Chairman Charles Lake (who also took to CNBC saying the same thing). Japan Post is the largest insurer in the world with over $1T in assets and none of its 79 agencies have ever sold for Aflac.
- For now, forward guidance on 3rd party sales does not include any contribution from the Japan Post deal.
Jul. 30, 2013, 5:42 PM
Jul. 30, 2013, 4:49 PM
- 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.
Jul. 30, 2013, 4:18 PM
Jul. 30, 2013, 12:10 AM
- ACAS, ACMP, AFL, AMGN, ANAD, APU, BOOM, BSMX, BWLD, BXP, CALX, CAP, CBI, CENX, CHMT, CLD, CSE, CVD, DRIV, ELGX, EQR, EXTR, FARO, FISV, FTNT, GDOT, GNW, GPRE, HBI, HR, HT, IACI, INVN, ISIL, JIVE, KIM, LOPE, MAKO, MERU, MKTO, MSPD, MTGE, MWA, MX, NANO, NCR, NEU, NSR, NUVA, OIS, OKE, OKS, POL, PRAA, QCOR, QGEN, RBC, RPXC, RVBD, SIMG, SKT, SM, SNCR, SYMC, TRLG, TRMB, TTS, TTWO, UGI, ULTI, VRSK, WFT, WNC, XXIA
Jul. 29, 2013, 5:35 PM
- ACAS, ACMP, AFL, AMGN, ANAD, APU, BOOM, BSMX, BWLD, BXP, CALX, CAP, CBI, CENX, CHMT,CLD, CSE, CVD, DRIV, ELGX, EQR, EXTR, FARO , FISV, FTNT, GDOT, GNW, GPRE, HBI,HR, HT, IACI, INVN, ISIL, JIVE, KIM, LOPE, MAKO, MERU, MKTO, MSPD, MTGE, MWA,MX, NANO, NCR, NEU, NSR, NUVA, OIS, OKE, OKS, POL, PRAA, QCOR, QGEN, RBC,RPXC, RVBD, SIMG, SKT, SM, SNCR, SYMC, TRLG , TRMB, TTS, TTWO, UGI, ULTI, VRSK,WFT, WNC, XXIA
Jul. 18, 2013, 11:59 AMThe insurance sector (KIE +0.9%), (IAK +0.7%) is boosted at Deutsche Bank thanks to higher interest rates. Lincoln National (LNC +3.1%) is upped to Buy with price target hiked to $45 from $36. Price targets are also raised for already Buy-rated MetLife (MET +1.6%) and Principal Financial (PFG +0.9%), and for Hold-rated Aflac (AFL +0.5%) and Unum (UNM +1.1%). Lincoln is particularly attractive for its interest sensitivity, lower international exposure and reliance on fixed-income AUM fees. | Comment!
Jun. 3, 2013, 7:53 PM
May 29, 2013, 1:54 PM"Higher interest rates and a steeper yield curve are the first items on all insurance company CEO's Christmas lists," writes Scott Barlow in a piece titled, "How the U.S. Treasury market determines Manulife's (MFC +1.6%) stock price." It's eye on the Bloomberg, Credit Suisse ups price targets on MetLife (MET +2.3%), Hartford (HIG +1%), Aflac (AFL +1%), Ameriprise (AMP -0.3%), and Principal (PFG +1%). Others benefitting from a steeper curve: LNC and SLF. | 1 Comment
May 10, 2013, 11:11 AMA basket of 27 stocks drawing at least 10% of their revenue from Japan is up 11% YTD, 600 bps shy of the median gain for a S&P 500 stock, according to Goldman, doing the study as the yen devaluation continues. Insurers make up 3 of the 5 deriving the largest portion of revenue from Japan, with Aflac (AFL) a big underperformer, but Hartford (HIG) and Prudential (PRU) beating S&P gains. | 1 Comment
Apr. 26, 2013, 8:52 AM
Apr. 25, 2013, 11:30 AMAflac (AFL +2.6%) moves sharply higher after Q1 earnings beat estimates and management hints it will accelerate the pace of buybacks (3M shares purchased in Q1 leaves 19.4M authorization remaining). The company expects U.S. sales - which declined in Q1 - to bounce back and retains previous guidance of flat-to-5% sales increase for the year. Management also suggests discomfort with JGBs at such low yields and plans to "be flexible" in terms of asset allocation. (PR) | Comment!
Apr. 24, 2013, 7:34 PM
Apr. 24, 2013, 4:20 PM
Apr. 24, 2013, 12:10 AMNotable earnings after Wednesday’s close: AFL, AIZ, AKAM, ANGI, ARII, ARRS, ASGN, AVG, BAS, BDN, CAKE, CCI, CDNS, CLF, CLGX, CMO, CMRE, COG, CROX, CTXS, DRE, DRWI, EFX, EQIX, FFIV, FIO, FLS, GGG, INFN, ISIL, ITMN, JAH, KEX, LOGI, LPS, LRCX, LSI, MLNX, NEU, NOW, OIS, ORLY, OTEX, PDH, PMTC, QCOM, RJF, RYL, SCI, SKX, SRCL, SUSQ, SYK, TAL, TER, TEX, TQNT, TSCO, TWI, VAR, WCN, WDC, WLL, XLNX, XNPT, ZNGA | 1 Comment
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