COLUMBUS, Ga., July 28, 2016 /PRNewswire/ -- Aflac
Incorporated today reported its second quarter results.
Reflecting the stronger yen/dollar exchange rate, total revenues
rose 2.8% to $5.4 billion during the
second quarter of 2016, compared with $5.3
billion in the second quarter of 2015. Net earnings were
$548 million, or $1.32 per diluted share, compared with
$573 million, or $1.32 per share, a year ago.
Net earnings in the second quarter of 2016 included $13 million, or $.03 per diluted share, of after-tax net realized
investment losses from securities transactions and impairments,
compared with net after-tax gains of $60
million, or $.14 per diluted
share, a year ago. Hedging costs related to certain dollar
investments of Aflac Japan on an after-tax basis, were $31 million in the quarter, or $.08 per diluted share. Realized after-tax net
investment losses from other derivative and hedging activities in
the quarter were $91 million, or
$.22 per diluted share. In addition,
net earnings included an after-tax loss of $24 million, or $.06 per diluted share, from other and
nonrecurring items.
Aflac believes that an analysis of operating earnings, a
non-GAAP financial measure, is vitally important to an
understanding of the company's underlying profitability drivers.
Aflac defines operating earnings as the profits derived from
operations, inclusive of interest cash flows associated with notes
payable, but before realized investment gains and losses from
securities transactions, impairments, and derivative and hedging
activities, as well as other and nonrecurring items. Aflac's
derivative activities are primarily used to hedge foreign exchange
and interest rate risk in the company's investment portfolio as
well as manage foreign exchange risk in certain notes payable and
forecasted cash flows denominated in yen. Management uses operating
earnings to evaluate the financial performance of Aflac's insurance
operations because realized gains and losses from securities
transactions, impairments, and derivative and hedging activities,
as well as other and nonrecurring items, tend to be driven by
general economic conditions and events or related to infrequent
activities not directly associated with the company's insurance
operations, and therefore may obscure the underlying fundamentals
and trends in Aflac's insurance operations. Due to the
unpredictable and uncontrollable nature of these reconciling items,
the company does not calculate a GAAP equivalent of its
forward-looking operating earnings guidance.
Furthermore, because a significant portion of Aflac's business
is in Japan, where the functional
currency is the yen, the company believes it is equally important
to understand the impact on operating earnings from translating yen
into dollars. Aflac Japan's yen-denominated income statement is
translated from yen into dollars using an average exchange rate for
the reporting period, and the balance sheet is translated using the
exchange rate at the end of the period. However, except for certain
transactions such as profit repatriation, settlements of
reinsurance retrocessions, and the Aflac Japan dollar investment
program, the company does not actually convert yen into dollars. As
a result, Aflac views foreign currency translation as a financial
reporting issue rather than an economic event for the company or
its shareholders. Because changes in exchange rates distort the
growth rates of operations, readers of Aflac's financial statements
are also encouraged to evaluate financial performance excluding the
impact of foreign currency translation. The chart toward the end of
this release presents a comparison of selected income statement
items with and without foreign currency changes to illustrate the
effect of currency.
The average yen/dollar exchange rate in the second quarter of
2016 was 108.28, or 11.9% stronger than the average rate of 121.20
in the second quarter of 2015. For the first six months, the
average exchange rate was 111.82, or 7.4% stronger than the rate of
120.14 a year ago. Aflac Japan's growth rates in dollar terms for
the second quarter and first six months were magnified as a result
of the stronger yen/dollar exchange rate.
Operating earnings in the second quarter were $707 million, compared with $651 million in the second quarter of 2015.
Operating earnings per diluted share in the quarter increased by
14.0% from a year ago to $1.71. The
stronger yen/dollar exchange rate increased operating earnings per
diluted share by $.09 for the second
quarter. Excluding the impact from the stronger yen, operating
earnings per diluted share increased 8.0%.
Results for the first six months of 2016 were also magnified by
the stronger yen. Total revenues were up 3.6% to $10.9 billion, compared with $10.5 billion in the first half of 2015. Net
earnings were $1.3 billion, or
$3.06 per diluted share, compared
with $1.2 billion, or $2.83 per diluted share, for the first six months
of 2015. Operating earnings for the first half of 2016 were
$1.4 billion, or $3.44 per diluted share, compared with
$1.3 billion, or $3.04 per diluted share, in 2015. Excluding the
positive impact of $.12 per share
from the stronger yen, operating earnings per diluted share
increased 9.2% for the first six months of 2016.
Total investments and cash at the end of June 2016 were $126.0
billion, compared with $114.3
billion at March 31, 2016.
In the second quarter, Aflac repurchased $400 million, or 5.9 million of its common
shares. For the first half of the year, the company purchased
$1.0 billion, or 16.0 million of its
common shares. At the end of June, the company had 32.3 million
shares available for purchase under its share repurchase
authorizations.
Shareholders' equity was $22.6
billion, or $54.98 per share,
at June 30, 2016, compared with
$20.0 billion, or $48.22 per share, at March
31, 2016. Shareholders' equity at the end of the second
quarter included a net unrealized gain on investment securities and
derivatives of $6.4 billion, compared
with a net unrealized gain of $4.7
billion at the end of March
2016. The annualized return on average shareholders' equity
in the second quarter was 10.3%. On an operating basis (excluding
total net realized investment gains/losses in net earnings,
unrealized investment gains/losses, and derivative gains/losses in
shareholders' equity), the annualized return on average
shareholders' equity was 18.0% for the second quarter of 2016, or
15.5%, excluding the impact of the yen on operating earnings.
AFLAC JAPAN
In yen terms, Aflac Japan's premium income increased 1.8% in the
second quarter. Net investment income decreased 5.4%. Investment
income was suppressed by the stronger yen/dollar exchange rate in
translating dollars to yen. Total revenues were up .7% in the
second quarter. The pretax operating profit margin declined to
20.7% from 21.1% a year ago. The pretax operating earnings in yen
decreased 1.0% on a reported basis and increased 3.0% on a
currency-neutral basis. For the first half of the year,
premium income in yen increased 1.0%, and net investment income
fell 3.6%. Total revenues in yen were up .2%, and
pretax operating earnings declined .9%.
Aflac Japan's growth rates in dollar terms for the second
quarter were magnified as a result of the significantly stronger
yen/dollar exchange rate. Premium income increased 14.3% to
$3.4 billion in the second quarter.
Net investment income was up 6.1% to $642
million. Total revenues increased 12.9% to $4.1 billion. Pretax operating earnings increased
10.8% to $839 million. For the first
six months, premium income was $6.6
billion, or 8.7% higher than a year ago. Net investment
income increased 3.8% to $1.3
billion. Total revenues were up 7.9% to $7.9 billion. Pretax operating earnings were
$1.7 billion, or 6.4% higher than a
year ago.
In the second quarter, total new annualized premium sales
decreased 1.1% to ¥30.3 billion, or $280
million. Third sector sales, which include cancer and
medical products, increased 11.2% in the quarter. Total first
sector sales, which include products such as WAYS and child
endowment, decreased 24.7% in the quarter.
For the first six months of the year, new annualized premium
sales were up 6.7% to ¥61.4 billion, or $551
million. Third sector sales increased 6.4% in the first half
of the year.
AFLAC U.S.
Aflac U.S. premium income increased 2.2% to $1.4 billion in the second quarter. Net
investment income was up 4.4% to $176
million. Total revenues increased 2.5% to $1.5 billion. The pretax operating profit margin
was 19.0%, compared with 19.5% a year ago. Pretax operating
earnings were $291 million, a
decrease of .3% for the quarter. For the first six months, total
revenues were up 2.4% to $3.1 billion
and premium income rose 2.2% to $2.7
billion. Net investment income increased 4.7% to
$350 million. Pretax operating
earnings were $623 million, 8.0%
higher than a year ago.
Aflac U.S. total new annualized premium sales increased 1.0% in
the quarter to $347 million. For the
first half of the year, total new sales were up 2.3% to
$675 million.
DIVIDEND
The board of directors declared the third quarter cash dividend.
The third quarter dividend of $.41
per share is payable on September 1,
2016 to shareholders of record at the close of business on
August 24, 2016.
OUTLOOK
Commenting on the company's second quarter results, Chairman and
Chief Executive Officer Daniel P.
Amos stated: "I am pleased that our second quarter financial
results in both Japan and
the United States reflected solid
performance and advanced our progress toward achieving the
company's objectives for 2016.
"In Japan, sales of our third sector products were particularly
noteworthy, increasing 11.2% for the quarter. Recognizing the
negative interest rate environment in Japan, we are encouraged that the
actions we've been taking throughout the second quarter to limit
sales of our first sector products are gaining traction, as first
sector products sales decreased 24.7% in the quarter. As we
continue to implement additional measures, we anticipate a sharp
decline of at least 50% in first sector sales for the second half
of the year. For the full year 2016, we continue to anticipate
third sector sales will be in the range of down 3% to up 2%. I
would reiterate that long-term, we continue to believe the compound
annual growth rate for third sector sales will be in the range of
4% to 6%.
"From a financial perspective, Aflac U.S. also generated solid
performance in the second quarter and for the first half of the
year. Additionally, keep in mind that while sales in the second
quarter were below our expectations, we anticipate the achievement
of our annual U.S. sales target will be increasingly reliant on
fourth quarter production. We continue to concentrate our efforts
on increasing Aflac U.S. sales 3% to 5% for the year.
"We remain committed to maintaining strong capital ratios on
behalf of our policyholders. We believe our capital strength
positions us to repatriate in the range of ¥120 to ¥150 billion for
the calendar year 2016. This reinforces our plan to repurchase
about $1.4 billion of our common
stock in 2016, with the majority having been front-end loaded in
the first half of the year.
"In the second half of the year, as we continue to focus on
initiatives designed to drive future growth, our expectation is to
increase spending, particularly related to promotional and IT
expenditures. I want to reiterate that our annual objective is to
produce operating earnings per diluted share of $6.17 to $6.41, assuming the 2015 average
exchange rate of 120.99 yen to the
dollar. If the yen averages ¥100 to ¥110 to the dollar for the
third quarter, we would expect operating earnings, a non-GAAP
measure, to be approximately $1.58 to
$1.86 per diluted share in the third quarter. I would remind
you that the low interest rate environment continues to be
challenging for investments, especially with negative interest
rates in Japan, making it
difficult to invest cash flows at attractive yields while
maintaining a prudent risk tolerance. We are well-positioned in the
two best insurance markets in the world and are working very hard
to achieve our earnings-per-share objective while also ensuring we
deliver on our promise to policyholders."
ABOUT AFLAC
When a policyholder gets sick or hurt, Aflac pays cash benefits
fast. For six decades, Aflac insurance policies have given
policyholders the opportunity to focus on recovery, not financial
stress. In the United States,
Aflac is the leading provider of voluntary insurance at the
worksite. Through its trailblazing One Day PaySM
initiative, Aflac U.S. can receive, process, approve and disburse
payment for eligible claims in one business day. In Japan, Aflac is the leading provider of
medical and cancer insurance and insures one in four households.
Aflac individual and group insurance products help provide
protection to more than 50 million people worldwide. For 10
consecutive years, Aflac has been recognized by Ethisphere
as one of the World's Most Ethical Companies. In 2016,
Fortune magazine recognized Aflac as one of the 100 Best
Companies to Work For in America for the 18th consecutive year and
included Aflac on its list of Most Admired Companies for the 15th
time, ranking the company No. 1 in innovation for the insurance,
life and health category for the second consecutive year. In 2015,
Aflac's contact centers were recognized by J.D. Power by providing
"An Outstanding Customer Service Experience" for the Live Phone
Channel. Aflac Incorporated is a Fortune 500 company listed on the
New York Stock Exchange under the symbol AFL. To find out more
about Aflac and One Day PaySM, visit aflac.com or
espanol.aflac.com.
A copy of Aflac's Financial Analysts Briefing (FAB) supplement
for the quarter can be found on the "Investors" page at
aflac.com.
Aflac Incorporated will webcast its quarterly conference call
via the "Investors" page of aflac.com at 9:00 a.m. (EDT) on Friday,
July 29, 2016.
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED INCOME STATEMENT
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
JUNE 30,
|
|
2016
|
|
|
2015
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
5,437
|
|
$
|
5,287
|
|
2.8%
|
|
|
|
|
|
|
|
|
|
|
Benefits and
claims
|
|
3,254
|
|
|
2,937
|
|
10.8
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and
operating expenses
|
|
1,349
|
|
|
1,476
|
|
(8.5)
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
834
|
|
|
874
|
|
(4.7)
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
286
|
|
|
301
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
548
|
|
$
|
573
|
|
(4.3)%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – basic
|
$
|
1.33
|
|
$
|
1.33
|
|
–
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – diluted
|
|
1.32
|
|
|
1.32
|
|
–
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute earnings per share (000):
|
|
|
|
|
|
|
|
|
|
Basic
|
411,853
|
|
431,672
|
|
(4.6)%
|
|
|
Diluted
|
414,326
|
|
434,257
|
|
(4.6)
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
.41
|
|
$
|
.39
|
|
5.1%
|
|
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED INCOME STATEMENT
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
SIX MONTHS ENDED
JUNE 30,
|
|
2016
|
|
|
2015
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
10,888
|
|
$
|
10,513
|
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
Benefits and
claims
|
|
6,279
|
|
|
5,889
|
|
6.6
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and
operating expenses
|
|
2,658
|
|
|
2,737
|
|
(2.9)
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
1,951
|
|
|
1,887
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
672
|
|
|
651
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
1,279
|
|
$
|
1,236
|
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – basic
|
$
|
3.08
|
|
$
|
2.84
|
|
8.5%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – diluted
|
|
3.06
|
|
|
2.83
|
|
8.1
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute earnings per share (000):
|
|
|
|
|
|
|
|
|
|
Basic
|
415,301
|
|
434,473
|
|
(4.4)%
|
|
|
Diluted
|
417,623
|
|
437,077
|
|
(4.5)
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
.82
|
|
$
|
.78
|
|
5.1%
|
|
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED BALANCE SHEET
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
JUNE
30,
|
|
2016
|
|
|
2015
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments and
cash
|
$
|
125,983
|
|
$
|
103,280
|
|
22.0%
|
|
|
|
|
|
|
|
|
|
|
Deferred policy
acquisition costs
|
|
9,552
|
|
|
8,278
|
|
15.4
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
5,752
|
|
|
3,981
|
|
44.5
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
141,287
|
|
$
|
115,539
|
|
22.3%
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy
liabilities
|
$
|
103,066
|
|
$
|
84,581
|
|
21.9%
|
|
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
5,009
|
|
|
5,383
|
|
(6.9)
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
10,662
|
|
|
8,557
|
|
24.6
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
22,550
|
|
|
17,018
|
|
32.5
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
141,287
|
|
$
|
115,539
|
|
22.3%
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period (000)
|
|
410,115
|
|
|
430,617
|
|
(4.8)%
|
|
|
|
RECONCILIATION OF
OPERATING EARNINGS TO NET EARNINGS
|
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED JUNE 30,
|
|
2016
|
|
|
2015
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
707
|
|
$
|
651
|
|
8.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:*
|
|
|
|
|
|
|
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
(13)
|
|
|
60
|
|
|
|
|
Hedge costs
related to
foreign
|
|
|
|
|
|
|
|
|
|
currency investments
|
|
(31)
|
|
|
(12)
|
|
|
|
|
Impact of other
derivative/hedging activities
|
|
(91)
|
|
|
20
|
|
|
|
|
Other and non-recurring income (loss)
|
|
(24)
|
|
|
(146)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
548
|
|
$
|
573
|
|
(4.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
$
|
1.71
|
|
$
|
1.50
|
|
14.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:*
|
|
|
|
|
|
|
|
|
|
Realized investment gains
(losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
(.03)
|
|
|
.14
|
|
|
|
|
Hedge
costs related to
foreign
|
|
|
|
|
|
|
|
|
|
currency
investments
|
|
(.08)
|
|
|
(.03)
|
|
|
|
|
Impact of other derivative/hedging activities
|
|
(.22)
|
|
|
.05
|
|
|
|
|
Other and
non-recurring income (loss)
|
|
(.06)
|
|
|
(.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
$
|
1.32
|
|
$
|
1.32
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Reconciling items
are calculated net of a 35% tax rate.
|
|
|
RECONCILIATION OF
OPERATING EARNINGS TO NET EARNINGS
|
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
SIX MONTHS
ENDED JUNE 30,
|
|
2016
|
|
|
2015
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
1,433
|
|
$
|
1,329
|
|
7.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:*
|
|
|
|
|
|
|
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and impairments
|
|
37
|
|
|
100
|
|
|
|
|
Hedge costs
related to
foreign
|
|
|
|
|
|
|
|
|
|
currency investments
|
|
(60)
|
|
|
(21)
|
|
|
|
|
Impact of other
derivative/hedging activities
|
|
(79)
|
|
|
(14)
|
|
|
|
|
Other and non-recurring income (loss)
|
|
(52)
|
|
|
(158)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
1,279
|
|
$
|
1,236
|
|
3.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
$
|
3.44
|
|
$
|
3.04
|
|
13.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:*
|
|
|
|
|
|
|
|
|
|
Realized investment gains
(losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and impairments
|
|
.08
|
|
|
.23
|
|
|
|
|
Hedge
costs related to
foreign
|
|
|
|
|
|
|
|
|
|
currency
investments
|
|
(.14)
|
|
|
(.05)
|
|
|
|
|
Impact of other derivative/hedging activities
|
|
(.19)
|
|
|
(.03)
|
|
|
|
|
Other and
non-recurring income (loss)
|
|
(.13)
|
|
|
(.36)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
$
|
3.06
|
|
$
|
2.83
|
|
8.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Reconciling items
are calculated net of a 35% tax rate.
|
EFFECT OF FOREIGN
CURRENCY ON OPERATING RESULTS1
(SELECTED PERCENTAGE
CHANGES, UNAUDITED)
|
|
|
|
THREE MONTHS ENDED
JUNE 30, 2016
|
Including
Currency
Changes
|
Excluding
Currency
Changes2
|
|
|
|
Premium
income
|
10.5%
|
|
2.0%
|
|
|
|
|
|
|
Net investment
income
|
5.9
|
|
1.2
|
|
|
|
|
|
|
Total benefits and
expenses
|
9.6
|
|
1.1
|
|
|
|
|
|
|
Operating
earnings
|
8.6
|
|
3.1
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
14.0
|
|
8.0
|
|
|
1 The
numbers in this table are presented on an operating basis, as
previously described.
|
2 Amounts
excluding currency changes were determined using the same
yen/dollar exchange rate for the current period as the comparable
period in the prior year.
|
EFFECT OF FOREIGN
CURRENCY ON OPERATING RESULTS1
(SELECTED PERCENTAGE
CHANGES, UNAUDITED)
|
|
|
|
SIX MONTHS ENDED
JUNE 30, 2016
|
Including
Currency
Changes
|
Excluding
Currency
Changes2
|
|
|
|
Premium
income
|
7.2%
|
|
1.8%
|
|
|
|
|
|
|
Net investment
income
|
4.1
|
|
1.2
|
|
|
|
|
|
|
Total benefits and
expenses
|
5.9
|
|
.6
|
|
|
|
|
|
|
Operating
earnings
|
7.8
|
|
4.2
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
13.2
|
|
9.2
|
|
|
1 The
numbers in this table are presented on an operating basis, as
previously described.
|
2 Amounts
excluding currency changes were determined using the same
yen/dollar exchange rate for the current period as the comparable
period in the prior year.
|
|
|
2016 OPERATING
EARNINGS PER SHARE1 SCENARIOS
|
|
|
|
|
|
|
|
|
|
|
Average
Exchange
Rate
|
|
Annual
Operating
EPS
|
% Growth
Over 2015
|
|
Yen
Impact
|
|
|
|
|
|
|
|
|
|
|
|
|
100
|
|
|
$
|
6.85
|
-
|
7.09
|
11.2
|
-
|
15.1%
|
|
$
.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
105
|
|
|
|
6.66
|
-
|
6.90
|
8.1
|
-
|
12.0
|
|
.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
110
|
|
|
|
6.49
|
-
|
6.73
|
5.4
|
-
|
9.3
|
|
.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115
|
|
|
|
6.34
|
-
|
6.58
|
2.9
|
-
|
6.8
|
|
.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
120.992
|
|
|
|
6.17
|
-
|
6.41
|
.2
|
-
|
4.1
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125
|
|
|
|
6.07
|
-
|
6.31
|
(1.5)
|
-
|
2.4
|
|
(.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 A
non-GAAP measure
|
2
Actual 2015 weighted-average exchange rate
|
FORWARD-LOOKING INFORMATION
The Private Securities Litigation Reform Act of 1995 provides
a "safe harbor" to encourage companies to provide prospective
information, so long as those informational statements are
identified as forward-looking and are accompanied by meaningful
cautionary statements identifying important factors that could
cause actual results to differ materially from those included in
the forward-looking statements. We desire to take advantage of
these provisions. This document contains cautionary statements
identifying important factors that could cause actual results to
differ materially from those projected herein, and in any other
statements made by company officials in communications with the
financial community and contained in documents filed with the
Securities and Exchange Commission (SEC).
Forward-looking statements are not based on historical
information and relate to future operations, strategies, financial
results or other developments. Furthermore, forward-looking
information is subject to numerous assumptions, risks and
uncertainties. In particular, statements containing words such as
"expect," "anticipate," "believe," "goal," "objective," "may,"
"should," "estimate," "intends," "projects," "will," "assumes,"
"potential," "target" or similar words as well as specific
projections of future results, generally qualify as
forward-looking. Aflac undertakes no obligation to update such
forward-looking statements. We caution readers that the following
factors, in addition to other factors mentioned from time to time,
could cause actual results to differ materially from those
contemplated by the forward-looking statements: difficult
conditions in global capital markets and the economy; governmental
actions for the purpose of stabilizing the financial markets;
defaults and credit downgrades of securities in our investment
portfolio; exposure to significant interest rate risk;
concentration of business in Japan; limited availability of acceptable
yen-denominated investments; failure to comply with restrictions on
patient privacy and information security; foreign currency
fluctuations in the yen/dollar exchange rate; deviations in actual
experience from pricing and reserving assumptions; subsidiaries'
ability to pay dividends to Aflac Incorporated; ability to continue
to develop and implement improvements in information technology
systems; concentration of our investments in any particular
single-issuer or sector; decline in creditworthiness of other
financial institutions; ability to attract and retain qualified
sales associates and employees; differing judgments applied to
investment valuations; significant valuation judgments in
determination of amount of impairments taken on our investments;
credit and other risks associated with Aflac's investment in
perpetual securities; decreases in our financial strength or debt
ratings; inherent limitations to risk management policies and
procedures; extensive regulation and changes in law or regulation
by governmental authorities; interruption in telecommunication,
information technology and other operational systems, or a failure
to maintain the security, confidentiality or privacy of sensitive
data residing on such systems; catastrophic events including, but
not necessarily limited to, epidemics, pandemics, tornadoes,
hurricanes, earthquakes, tsunamis, acts of terrorism and damage
incidental to such events; changes in U.S. and/or Japanese
accounting standards; ability to effectively manage key executive
succession; level and outcome of litigation; increased expenses and
reduced profitability resulting from changes in assumptions for
pension and other postretirement benefit plans; ongoing changes in
our industry; loss of consumer trust resulting from events external
to our operations; failure of internal controls or corporate
governance policies and procedures.
Logo -
http://photos.prnewswire.com/prnh/20100423/CL92305LOGO
Analyst and investor contact – Robin Y.
Wilkey, 706.596.3264 or 800.235.2667; FAX: 706.324.6330 or
rwilkey@aflac.com
Media contact – Catherine Blades,
706.596.3014; FAX: 706.320.2288 or cblades@aflac.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aflac-incorporated-announces-second-quarter-results-affirms-2016-operating-eps-and-sales-outlook-declares-third-quarter-cash-dividend-300305920.html
SOURCE Aflac Incorporated