COLUMBUS, Ga., Oct. 27, 2015 /PRNewswire/ -- Aflac
Incorporated today reported its third quarter results.
Reflecting the weaker yen/dollar exchange rate, total revenues
decreased 12.1% to $5.0 billion
during the third quarter of 2015, compared with $5.7 billion in the third quarter of 2014. Net
earnings were $567 million, or
$1.32 per diluted share, compared
with $706 million, or $1.56 per share, a year ago.
Net earnings in the third quarter of 2015 included after-tax net
realized investment losses of $88
million, or $.20 per diluted
share, compared with net after-tax gains of $4 million, or $.01
per diluted share, a year ago. After-tax realized investment losses
from impairments in the quarter were $89
million, or $.20 per diluted
share. Investment losses for the quarter were primarily related to
the impairment of a single holding. After-tax realized investment
gains net of losses from securities transactions in the quarter
were $17 million, or $.04 per diluted share. Hedging costs related to
certain dollar investments of Aflac Japan on an after-tax basis
were $18 million in the quarter, or
$.04 per diluted share. Realized
after-tax net investment gains from other derivative and hedging
activities in the quarter were $2
million, or nil per diluted share. In addition, net
earnings included an after-tax loss of $17
million, or $.04 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.
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 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 third quarter of
2015 was 122.15, or 14.9% weaker than the average rate of 103.92 in
the third quarter of 2014. For the first nine months, the average
exchange rate was 120.81, or 14.8% weaker than the rate of 102.89 a
year ago. Aflac Japan's growth rates in dollar terms for the third
quarter and first nine months were suppressed as a result of the
weaker yen/dollar exchange rate.
Operating earnings in the third quarter were $672 million, compared with $685 million in the third quarter of 2014.
Operating earnings per diluted share in the quarter increased by
3.3% from a year ago to $1.56. The
weaker yen/dollar exchange rate decreased operating earnings per
diluted share by $.13 for the third
quarter. Excluding the impact from the weaker yen, operating
earnings per diluted share increased 11.9%.
Results for the first nine months of 2015 were also suppressed
by the weaker yen. Total revenues were down 9.6% to $15.6 billion, compared with $17.2 billion in the first nine months of 2014.
Net earnings were $1.8 billion, or
$4.14 per diluted share, compared
with $2.2 billion, or $4.93 per diluted share, for the first nine
months of 2014. Operating earnings for the first nine months of
2015 were $2.0 billion, or
$4.60 per diluted share, compared
with $2.2 billion, or $4.86 per diluted share, in 2014. Excluding the
negative impact of $.40 per share
from the weaker yen, operating earnings per diluted share increased
2.9% for the first nine months of 2015.
Total investments and cash at the end of September 2015 were $104.9
billion, compared with $103.3
billion at June 30, 2015.
In the third quarter, Aflac repurchased $233 million, or 3.9 million shares, of its
common stock. For the first nine months of the year, the company
repurchased $1.1 billion, or 17.4
million of its shares. At the end of September, the company had
52.1 million shares available for purchase under its share
repurchase authorizations.
Shareholders' equity was $17.3
billion, or $40.36 per share,
at September 30, 2015, compared with
$17.0 billion, or $39.52 per share, at June
30, 2015. Shareholders' equity at the end of the third
quarter included a net unrealized gain on investment securities and
derivatives of $3.2 billion, compared
with a net unrealized gain of $3.4
billion at the end of June
2015. The annualized return on average shareholders' equity
in the third quarter was 13.2%. 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 19.4% for the third quarter of 2015, or
22.3%, excluding the impact of the yen.
AFLAC JAPAN
In yen terms, Aflac Japan's net premium income declined .8% in
the third quarter, reflecting in part the impact of reinsurance.
Excluding the impact of reinsurance, net premium income increased
1.6%. Net investment income increased 5.4%. Investment income
growth was magnified by the weaker yen/dollar exchange rate because
approximately 51% of Aflac Japan's third quarter investment income
was dollar-denominated, compared with 46% a year ago. Total
revenues were up .3% in the third quarter. The pretax operating
profit margin increased in the third quarter to 21.9% from 19.6% in
the prior year, in part due to continued favorable claims
experience and associated reserve adjustment in the quarter. Pretax
operating earnings in yen increased 12.1% on a reported basis and
increased 5.8% on a currency-neutral basis. For the
first nine months of the year, net premium income in
yen decreased .6%, and net investment income rose 6.1%.
Total revenues in yen were up .5%, and pretax operating
earnings were up 3.3%.
Aflac Japan's growth rates in dollar terms for the third quarter
were suppressed as a result of the significantly weaker yen/dollar
exchange rate. Premium income decreased 15.7% to $3.0 billion in the third quarter. Net investment
income was down 10.4% to $606
million. Total revenues decreased 14.8% to $3.6 billion. Pretax operating earnings declined
4.7% to $789 million. For the first
nine months, premium income was $9.0
billion, or 15.3% lower than a year ago. Net investment
income decreased 9.7% to $1.8
billion. Total revenues were down 14.4% to $10.9 billion. Pretax operating earnings were
$2.4 billion, or 12.0% lower than a
year ago.
In the third quarter, total new annualized premium sales
increased 23.4% to ¥31.6 billion, or $259
million. Third sector sales, which include cancer and
medical products, increased 34.5% in the quarter. Total first
sector sales, which include products such as WAYS and child
endowment, increased 5.9% in the quarter.
For the first nine months of the year, new annualized premium
sales were up 9.9% to ¥89.2 billion, or $737
million. Third sector sales increased 27.1% in the first
nine months of the year.
AFLAC U.S.
In the third quarter, Aflac U.S. premium income increased 3.0%
to $1.3 billion. This result in part
reflects favorable results from improved business practices
associated with premium payments that benefited the quarter. Net
investment income was up 7.2% to $173
million. Total revenues increased 3.6% to $1.5 billion. Reflecting favorable claim trends,
the pretax operating profit margin was 18.8%, compared with 18.4% a
year ago. Pretax operating earnings were $286 million, an increase of 6.2% for the
quarter. For the first nine months, total revenues were up 3.0% to
$4.5 billion and premium income rose
2.7% to $4.0 billion. Net investment
income increased 4.8% to $507
million. Pretax operating earnings were $864 million, .9% lower than a year ago.
Aflac U.S. total new annualized premium sales increased .4% in
the quarter to $330 million. For the
first nine months of the year, total new sales were up 1.1% to
$990 million.
DIVIDEND
The board of directors announced a 5.1% increase in the
quarterly cash dividend, effective with the fourth quarter payment.
The fourth quarter dividend of $.41
per share is payable on December 1,
2015, to shareholders of record at the close of business on
November 18, 2015.
OUTLOOK
Commenting on the company's third quarter results, Chairman and
Chief Executive Officer Daniel P.
Amos stated: "Aflac Japan, our largest earnings contributor,
generated strong financial results in yen terms for the quarter.
Additionally, Aflac Japan's third sector sales results were
outstanding and exceeded our expectations, generating strong
production across all channels. As we've communicated in previous
quarters, we face challenging sales comparisons in the fourth
quarter. However, given the very strong sales growth in the first
nine months and our expectation for the remainder of the year, we
are upwardly revising our sales growth target for third sector
products from the range of 7% to 10% to the range of 10% to 13% for
the full year.
"From a financial perspective, Aflac U.S. also performed well in
the quarter. While Aflac U.S. generated a slight sales increase, I
remain very enthusiastic about the modifications we made to our
career and broker management infrastructure over this last year. I
am confident that during this year of building, these changes are
laying the foundation for expanded long-term growth opportunities.
We've continued to receive outstanding feedback from our
policyholders and sales distribution about the value of One Day
PaySM, our industry-leading claims initiative that
allows us to process, approve and pay eligible claims in just one
day. As we look ahead, we believe production will shift more and
more toward the fourth quarter as our sales through brokers and
larger employers increase. Taking into account our results for the
first nine months and our expectation for sales in the fourth
quarter, we now anticipate Aflac U.S. will generate sales growth at
the lower end of the 3% to 7% range for the year.
"We believe we are positioned to meet or exceed our expectation
to repatriate approximately ¥200 billion in 2015, which reinforces
our plan to repurchase $1.3 billion
of our common stock in 2015. As we've communicated previously, we
believe that over the next few years, we'll be able to increase the
capital available for deployment.
"I am pleased with the action by the board of directors to
increase the quarterly cash dividend by 5.1%. This marks the
33rd consecutive year of increasing our cash dividend.
Our objective is to grow the dividend at a rate generally in line
with the increase in operating earnings per diluted share before
the impact of foreign currency translation.
"Having completed the first nine months of the year, I am
pleased with the company's results. We believe those results,
combined with our outlook for the remainder of 2015, well-position
Aflac for another year of solid financial performance. I want to
reiterate our expectation that the growth of operating earnings per
diluted share will be in the range of 4% to 7% on a currency
neutral basis. If the yen averages 120 to 125 to the dollar for the
fourth quarter, we would expect earnings in the fourth quarter to
be approximately $1.36 to $1.56 per
diluted share and full-year reported operating earnings to be about
$5.96 to $6.16 per diluted share. Our
focus remains on achieving our earnings-per-share objective while
also delivering on our promise to policyholders."
ABOUT AFLAC
When a policyholder gets sick or hurt, Aflac pays cash benefits
fast. For nearly 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 nine
consecutive years, Aflac has been recognized by Ethisphere magazine
as one of the World's Most Ethical Companies. In 2015, Fortune
magazine recognized Aflac as one of the 100 Best Companies to Work
For in America for the 17th consecutive year. Also, in 2015,
Fortune magazine included Aflac on its list of Most Admired
Companies for the 14th time, ranking the company No. 1 in
innovation for the insurance, life and health category. 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 Pay℠, 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 Wednesday, October 28, 2015.
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED INCOME STATEMENT
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
SEPTEMBER 30,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
5,040
|
|
$
|
5,736
|
|
(12.1)%
|
|
|
|
|
|
|
|
|
|
|
Benefits and claims,
net
|
|
2,927
|
|
|
3,355
|
|
(12.8)
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and
operating expenses
|
|
1,249
|
|
|
1,307
|
|
(4.5)
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
864
|
|
|
1,074
|
|
(19.5)
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
297
|
|
|
368
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
567
|
|
$
|
706
|
|
(19.7)%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – basic
|
$
|
1.32
|
|
$
|
1.56
|
|
(15.4)%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – diluted
|
|
1.32
|
|
|
1.56
|
|
(15.4)
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute earnings per share (000):
|
|
|
|
|
|
|
|
|
|
Basic
|
428,735
|
|
451,246
|
|
(5.0)%
|
|
|
Diluted
|
431,102
|
|
453,981
|
|
(5.0)
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
.39
|
|
$
|
.37
|
|
5.4%
|
|
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED INCOME STATEMENT
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
NINE MONTHS ENDED
SEPTEMBER 30,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
15,553
|
|
$
|
17,214
|
|
(9.6)%
|
|
|
|
|
|
|
|
|
|
|
Benefits and claims,
net
|
|
8,816
|
|
|
9,868
|
|
(10.7)
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and
operating expenses
|
|
3,985
|
|
|
3,930
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
2,752
|
|
|
3,416
|
|
(19.4)
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
949
|
|
|
1,168
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
1,803
|
|
$
|
2,248
|
|
(19.8)%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – basic
|
$
|
4.17
|
|
$
|
4.96
|
|
(15.9)%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – diluted
|
|
4.14
|
|
|
4.93
|
|
(16.0)
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute earnings per share (000):
|
|
|
|
|
|
|
|
|
|
Basic
|
432,540
|
|
452,833
|
|
(4.5)%
|
|
|
Diluted
|
435,064
|
|
455,674
|
|
(4.5)
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
1.17
|
|
$
|
1.11
|
|
5.4%
|
|
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED BALANCE SHEET
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
SEPTEMBER
30,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments and
cash
|
$
|
104,900
|
|
$
|
114,691
|
|
(8.5)%
|
|
|
|
|
|
|
|
|
|
|
Deferred policy
acquisition costs
|
|
8,451
|
|
|
8,713
|
|
(3.0)
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
4,104
|
|
|
3,849
|
|
6.6
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
117,455
|
|
$
|
127,253
|
|
(7.7)%
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy
liabilities
|
$
|
87,185
|
|
$
|
90,200
|
|
(3.3)%
|
|
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
5,009
|
|
|
4,558
|
|
9.9
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
8,006
|
|
|
14,642
|
|
(45.3)
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
17,255
|
|
|
17,853
|
|
(3.4)
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
117,455
|
|
$
|
127,253
|
|
(7.7)%
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period (000)
|
|
427,567
|
|
|
450,499
|
|
(5.1)%
|
|
|
|
RECONCILIATION OF
OPERATING EARNINGS TO NET EARNINGS
|
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED SEPTEMBER 30,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
672
|
|
$
|
685
|
|
(1.6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
(72)
|
|
|
21
|
|
|
|
|
Hedge costs
related to
foreign
|
|
|
|
|
|
|
|
|
|
currency investments
|
|
(18)
|
|
|
(1)
|
|
|
|
|
Impact of other
derivative/hedging activities
|
|
2
|
|
|
(16)
|
|
|
|
|
Other and non-recurring income (loss)
|
|
(17)
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
567
|
|
$
|
706
|
|
(19.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
$
|
1.56
|
|
$
|
1.51
|
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
Realized investment gains
(losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
(.16)
|
|
|
.05
|
|
|
|
|
Hedge costs related to
foreign
|
|
|
|
|
|
|
|
|
|
currency
investments
|
|
(.04)
|
|
|
–
|
|
|
|
|
Impact of other derivative/hedging activities
|
|
–
|
|
|
(.04)
|
|
|
|
|
Other and
non-recurring income (loss)
|
|
(.04)
|
|
|
.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
$
|
1.32
|
|
$
|
1.56
|
|
(15.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
OPERATING EARNINGS TO NET EARNINGS
|
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
NINE MONTHS
ENDED SEPTEMBER 30,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
2,001
|
|
$
|
2,216
|
|
(9.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
28
|
|
|
91
|
|
|
|
|
Hedge costs
related to
foreign
|
|
|
|
|
|
|
|
|
|
currency investments
|
|
(39)
|
|
|
(23)
|
|
|
|
|
Impact of other
derivative/hedging activities
|
|
(12)
|
|
|
(40)
|
|
|
|
|
Other and non-recurring income (loss)
|
|
(175)
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
1,803
|
|
$
|
2,248
|
|
(19.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
$
|
4.60
|
|
$
|
4.86
|
|
(5.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
Realized investment gains
(losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
.06
|
|
|
.20
|
|
|
|
|
Hedge
costs related to foreign
|
|
|
|
|
|
|
|
|
|
currency
investments
|
|
(.09)
|
|
|
(.05)
|
|
|
|
|
Impact of other derivative/hedging activities
|
|
(.03)
|
|
|
(.09)
|
|
|
|
|
Other and
non-recurring income (loss)
|
|
(.40)
|
|
|
.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
$
|
4.14
|
|
$
|
4.93
|
|
(16.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF FOREIGN
CURRENCY ON OPERATING RESULTS1
(SELECTED PERCENTAGE
CHANGES, UNAUDITED)
|
|
|
|
THREE MONTHS ENDED
SEPTEMBER 30, 2015
|
Including
Currency
Changes
|
Excluding
Currency
Changes2
|
|
|
|
Premium
income
|
(9.5)%
|
|
1.6
|
%
|
|
|
|
|
|
Net investment
income
|
(6.7)
|
|
(.4)
|
|
|
|
|
|
|
Total benefits and
expenses
|
(10.9)
|
|
(.1)
|
|
|
|
|
|
|
Operating
earnings
|
(1.6)
|
|
6.8
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
3.3
|
|
11.9
|
|
|
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)
|
|
|
|
NINE MONTHS ENDED
SEPTEMBER 30, 2015
|
Including
Currency
Changes
|
Excluding
Currency
Changes2
|
|
|
|
Premium
income
|
(9.6)%
|
|
1.3%
|
|
|
|
|
|
|
Net investment
income
|
(6.7)
|
|
(.3)
|
|
|
|
|
|
|
Total benefits and
expenses
|
(9.1)
|
|
1.9
|
|
|
|
|
|
|
Operating
earnings
|
(9.7)
|
|
(1.8)
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
(5.3)
|
|
2.9
|
|
|
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.
|
|
|
|
|
2015 OPERATING
EARNINGS PER SHARE SCENARIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Exchange
Rate
|
|
|
|
|
Annual
Operating
EPS
|
|
|
|
%Growth
Over 2014
|
|
|
Yen
Impact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100
|
|
|
$
|
6.47
|
-
|
6.77
|
|
5.0
|
-
|
9.9%
|
|
$ .18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
105.46*
|
|
|
|
6.29
|
-
|
6.59
|
|
2.1
|
-
|
7.0
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115
|
|
|
|
6.01
|
-
|
6.31
|
|
(2.4)
|
-
|
2.4
|
|
(.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125
|
|
|
|
5.77
|
-
|
6.07
|
|
(6.3)
|
-
|
(1.5)
|
|
(.52)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
135
|
|
|
|
5.56
|
-
|
5.86
|
|
(9.7)
|
-
|
(4.9)
|
|
(.73)
|
|
|
*Actual 2014
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 financial and capital markets
risk; fluctuations in foreign currency exchange rates; significant
changes in investment yield rates; credit and other risks
associated with Aflac's investment in perpetual securities;
differing judgments applied to investment valuations; significant
valuation judgments in determination of amount of impairments taken
on our investments; limited availability of acceptable
yen-denominated investments; concentration of our investments in
any particular single-issuer or sector; concentration of business
in Japan; decline in
creditworthiness of other financial institutions; deviations in
actual experience from pricing and reserving assumptions;
subsidiaries' ability to pay dividends to Aflac Incorporated;
ineffective risk management policies and procedures; changes in law
or regulation by governmental authorities; ability to attract and
retain qualified sales associates and employees; decreases in our
financial strength or debt ratings; ability to continue to develop
and implement improvements in information technology systems;
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; changes in U.S. and/or Japanese accounting standards;
failure to comply with restrictions on patient privacy and
information security; level and outcome of litigation; ability to
effectively manage key executive succession; catastrophic events
including, but not necessarily limited to, epidemics, pandemics,
tornadoes, hurricanes, earthquakes, tsunamis, acts of terrorism and
damage incidental to such events; ongoing changes in our industry;
events that damage our reputation; increased expenses for pension
and other postretirement plans; and failure of internal controls or
corporate governance policies and procedures.
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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-third-quarter-results-affirms-2015-operating-eps-objective-upwardly-revises-aflac-japan-third-sector-sales-target-increases-fourth-quarter-cash-dividend-51-300167243.html
SOURCE Aflac Incorporated