AFL AFLAC Inc

Aflac Inc. said its first-quarter operating earnings rose 7.1% as a stronger yen benefited results in the insurer's business in Japan, where the company generates most of its sales.

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 on a quarterly basis.

For the latest quarter, in U.S. dollar terms, premium income at Aflac's Japan business rose 3.3% to $3.2 billion, while revenue increased 3% to $3.8 billion and pretax operating earnings grew 2.4% to $838 million.

In yen terms, Japan segment premium income edged up 0.1%, revenue eased 0.2% and pretax operating earnings edged down 0.8%.

In the U.S., premium income rose 2.1% to $1.4 billion, while revenue increased 2.3% to $1.5 billion. Pretax operating earnings improved 16% to $332 million.

Chairman and Chief Executive Daniel P. Amos said in prepared remarks that the company continues to believe that in its U.S. business, changes made in its career and broker management infrastructure have created a foundation for greater long-term growth opportunities.

Aflac's operating earnings increased to $726 million, or $1.73 a share, up from $678 million, or $1.54 a share, a year earlier.

Revenue increased 4.3% to $5.45 billion.

In all, Aflac reported net income of $731 million, or $1.74 a share, up from $663 million, or $1.51 a share, a year earlier.

Analysts polled by Thomson Reuters expected a per-share operating profit of $1.63 and revenue of $5.26 billion.

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

(END) Dow Jones Newswires

April 26, 2016 17:35 ET (21:35 GMT)

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