AFL AFLAC Inc

Aflac Inc. said its fourth-quarter operating earnings rose 15% on lower expenses that offset a decline in revenue.

A weaker yen continued to weigh on the insurer's business in Japan, where the company generates most of its sales.

Shares rose 1.8% to $57.55 in recent after-hours trading as per-share operating earnings were at the high end of expectations and revenue beat analysts' estimates.

Operating earnings are a widely watched benchmark for the insurance industry because they exclude realized capital gains and losses from companies' investment portfolios, among other items that aren't considered recurring.

For the latest quarter, in U.S. dollar terms, premium income at Aflac's Japan business fell 5.6% to $3 billion, while revenue decreased 5.5% to $3.6 billion and pretax operating earnings grew 5.2% to $810 million.

In yen terms, Japan segment premium income edged up 0.3.%, revenue rose 0.4% and pretax operating earnings increased 12%.

In the U.S., premium income rose 2.3% to $1.3 billion, while revenue increased 2.7% to $1.5 billion. Pretax operating earnings improved 18% to $237 million.

Aflac reported an operating profit of $668 million, or $1.56 a share, up from $581 million, or $1.29 a share, a year earlier. The company expected per-share operating earnings of $1.36 to $1.56.

Aflac said exchange rates had a negative impact of five cents a share in the latest quarter.

Revenue decreased 3.5% to $5.32 billion, above analysts' estimates for $5.22 billion.

Overall, Aflac reported a profit of $730 million, or $1.71 a share, up from $703 million, or $1.57 a share, a year earlier.

Benefits and claims costs fell 4.5%.

Aflac also affirmed its 2016 operating earnings guidance.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

February 01, 2016 17:55 ET (22:55 GMT)

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