Aflac's Operating Profit Falls 1.9%
October 27 2015 - 06:10PM
Dow Jones News
Aflac Inc. said its third-quarter operating earnings fell 1.9%
as the impact of a weaker yen again weighed on the insurer's
business in Japan.
Core 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 in nature.
For the year, Aflac raised its per-share operating earnings
estimate to $5.96 to $6.16, from its previously increased estimate
for $5.88 to $6.17.
For the current quarter, the company forecast per-share
operating earnings of $1.36 to $1.56. Analysts polled by Thomson
Reuters expect $1.47.
The company's board also raised its quarterly dividend 5.1% to
41 cents a share, an increase of two cents a share.
In U.S. dollar terms, premium income at the Japan business
dropped 16% to $3 billion, while revenue decreased 15% to $3.6
billion and pretax operating earnings declined 4.7% to $789
million.
In the U.S., premium income rose 3% to $1.3 billion, while
revenue rose 3.6% to $1.5 billion. Pretax operating earnings grew
6.2% to $286 million.
Aflac reported operating earnings of $672 million, down from
$685 million a year earlier. On a per-share basis, operating
earnings rose to $1.56 from $1.51 as the number of shares
outstanding declined. The company had projected per-share operating
earnings of $1.40 to $1.53.
Revenue decreased 12% to $5.04 billion, below analysts'
expectations for $5.18 billion.
Write to Tess Stynes at tess.stynes@wsj.com
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(END) Dow Jones Newswires
October 27, 2015 17:55 ET (21:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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