COLUMBUS, Ga., Feb. 1, 2016 /PRNewswire/ -- Aflac Incorporated
today reported its fourth quarter results.
Reflecting the weaker yen/dollar exchange rate, total revenues
decreased 3.5% to $5.3 billion during
the fourth quarter of 2015, compared with $5.5 billion in the fourth quarter of 2014. Net
earnings were $730 million, or
$1.71 per diluted share, compared
with $703 million, or $1.57 per share, a year ago.
Net earnings in the fourth quarter of 2015 included after-tax
net realized investment gains of $60
million, or $.14 per diluted
share, compared with net after-tax gains of $83 million, or $.19 per diluted share, a year ago. After-tax
realized investment gains net of losses from securities
transactions in the quarter were $77
million, or $.18 per diluted
share. After-tax realized investment losses from impairments in the
quarter were immaterial at $7
million, or $.01 per diluted
share. Hedging costs related to certain dollar investments of Aflac
Japan on an after-tax basis were $49
million in the quarter, or $.12 per diluted share. Realized after-tax net
investment gains from other derivative and hedging activities in
the quarter were $39 million, or
$.09 per diluted share. In
addition, net earnings included an after-tax gain of $2 million, or $.01
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 fourth quarter of
2015 was 121.54, or 5.8% weaker than the average rate of 114.44 in
the fourth quarter of 2014. For the full year, the average exchange
rate was 120.99, or 12.8% weaker than the rate of 105.46 a year
ago. Aflac Japan's growth rates in dollar terms for the fourth
quarter and the full year were suppressed as a result of the weaker
yen/dollar exchange rate.
Operating earnings in the fourth quarter were $668 million, compared with $581 million in the fourth quarter of 2014.
Operating earnings per diluted share increased 20.9% to
$1.56 in the quarter, compared with
$1.29 a year ago. The weaker
yen/dollar exchange rate decreased operating earnings per diluted
share by $.05 for the fourth quarter.
Excluding the impact from the weaker yen, operating earnings per
diluted share increased 24.8%.
Results for the full year of 2015 were also suppressed by the
weaker yen. Total revenues were down 8.2% to $20.9 billion, compared with $22.7 billion for the full year of 2014. Net
earnings for the full year of 2015 were $2.5
billion, or $5.85 per diluted
share, compared with $3.0 billion, or
$6.50 per diluted share, a year ago.
Net earnings for 2015 were impacted by the early extinguishment of
debt previously disclosed in the second quarter. Operating earnings
for the full year of 2015 were $2.7
billion, or $6.16 per diluted
share, compared with $2.8 billion, or
$6.16 per diluted share, in 2014.
Excluding the negative impact of $.46
per share from the weaker yen, operating earnings per diluted share
rose 7.5% for the full year of 2015.
Total investments and cash at the end of December 2015 were $105.9
billion, compared with $104.9
billion at September 30,
2015.
In the fourth quarter, Aflac repurchased $234 million, or 3.8 million of its common
shares. For the full year, the company purchased $1.3 billion, or 21.2 million shares. At the end
of December, the company had 48.4 million shares available for
purchase under its share repurchase authorizations.
Shareholders' equity was $17.4
billion, or $40.96 per share,
at December 31, 2015, compared with
$17.3 billion, or $40.36 per share, at September 30, 2015. Shareholders' equity at the
end of the fourth quarter included a net unrealized gain on
investment securities and derivatives of $3.0 billion, compared with a net unrealized gain
of $3.2 billion at the end of
September 2015. The annualized return
on average shareholders' equity in the fourth quarter was 16.9%. 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 18.8% for the
fourth quarter, or 19.4%, excluding the impact of the yen. For the
full year, operating return on average shareholders' equity,
excluding currency, was 20.4%.
AFLAC JAPAN
In yen terms, Aflac Japan's net premium income increased .3% in
the fourth quarter, reflecting in part the impact of previously
executed reinsurance agreements. Excluding the impact of
reinsurance, net premium income increased 1.6%. Net investment
income increased 1.0%. Investment income growth was magnified by
the weaker yen/dollar exchange rate because approximately 51% of
Aflac Japan's fourth quarter investment income was
dollar-denominated, compared with 48% a year ago. Total revenues
were up .4% in the fourth quarter. The pretax operating profit
margin increased in the fourth quarter to 22.3% from 20.1% in the
prior year, reflecting continued favorable claims experience in
addition to lower expenses in the quarter compared to a year ago.
Pretax operating earnings in yen increased 11.7% on a reported
basis and increased 8.9% on a currency-neutral
basis. For the full year, premium income in yen
decreased .4%, and net investment income rose 4.8%. Total revenues
in yen were up .5%, and pretax operating earnings in yen grew 5.3%.
On a currency-neutral basis, pretax operating earnings grew
.4%.
Aflac Japan's growth rates in dollar terms for the fourth
quarter were suppressed as a result of the significantly weaker
yen/dollar exchange rate. Premium income decreased 5.6% to
$3.0 billion in the fourth quarter.
Net investment income decreased 4.9% to $612
million. Total revenues decreased 5.5% to $3.6 billion. Pretax operating earnings increased
5.2% to $810 million. For the full
year, premium income was $12.0
billion, or 13.1% lower than a year ago. Net investment
income decreased 8.5% to $2.4
billion. Total revenues were down 12.3% to $14.5 billion. Pretax operating earnings were
$3.2 billion, or 8.2% lower than a
year ago.
In the fourth quarter, total new annualized premium sales
decreased 5.1% to ¥31.7 billion, or $260
million. Third sector sales, which include cancer and
medical products, decreased 12.7% in the quarter due to difficult
comparisons. Total first sector sales, which include products such
as WAYS and child endowment, increased 15.9% in the quarter.
For the full year, new annualized premium sales were up 5.5% to
¥120.9 billion, or $997 million.
Third sector sales increased 13.4% for the full year.
AFLAC U.S.
Aflac U.S. premium income increased 2.3% to $1.3 billion in the fourth quarter. Net
investment income was up 5.6% to $171
million. Total revenues increased 2.7% to $1.5 billion. Reflecting continued improvement in
the benefit ratio, the pretax operating profit margin was 15.8%,
compared with 13.7% a year ago. Pretax operating earnings were
$237 million, an increase of 18.3%
for the quarter. For the full year, total revenues were up 3.0% to
$6.0 billion and premium income rose
2.6% to $5.3 billion. Net investment
income increased 5.0% to $678
million. Pretax operating earnings were $1.1 billion, 2.7% higher than a year ago.
Aflac U.S. total new annualized premium sales increased 9.6% in
the quarter to $497 million. For the
full year, total new sales increased 3.7% to $1.5 billion.
DIVIDEND
The board of directors declared the first quarter cash dividend.
The first quarter dividend of $.41
per share is payable on March 1,
2016, to shareholders of record at the close of business on
February 16, 2016.
OUTLOOK
Commenting on the company's results, Chairman and Chief
Executive Officer Daniel P. Amos
stated: "We are very pleased with Aflac's financial performance for
both the quarter and year. Aflac had a very strong quarter, and we
finished the year above the top of the range for operating earnings
per diluted share, excluding the impact of foreign currency.
"Aflac Japan, our largest earnings contributor, generated
outstanding financial results in yen terms for the quarter.
Additionally, the tremendous third sector sales we generated in
2015 were much better than our original expectation, generating
impressive production across all channels for a 13.4% increase.
This result was the highest annual third sector growth rate in the
past 10 years. Cancer insurance sales, the largest
contributor to this result, were up a remarkable 40.6% for the
year. On the distribution side, our traditional agencies have been,
and remain, key to our success. I'm also pleased that we continued
to build on our partnership with Japan Post throughout the year,
completing the expansion of the number of postal outlets and their
agents selling our cancer products to more than 20,000 outlets
during 2015. As we indicated during our December outlook call, we
anticipate that for 2016, sales of third sector products will be
down mid-single digits following very robust production results in
2015. We continue to believe the long-term compound annual growth
rate will be in the range of 4% to 6%.
"From a financial perspective, Aflac U.S. also performed well
for the quarter and full year. I am very pleased with our fourth
quarter new annualized premium sales, which hit an all-time record
with the premium amount of $496
million. This equated to a growth rate of 9.6% for the
quarter, which helped drive annual sales results to increase 3.7%
for the year. I'm encouraged that the changes we made to our career
and broker management infrastructure over the last 18 months are
laying the foundation for expanded long-term growth opportunities.
As we mentioned in our December outlook call, we anticipate that
sales will be increasingly skewed toward the fourth quarter, and we
believe Aflac U.S. new annualized premium growth in 2016 will be in
the range of 3% to 5%, with a long-term compound annual growth rate
at or above the voluntary market growth rate of 5%.
"Based on our assessment of the company's capital strength, we
repatriated approximately ¥259 billion in 2015, which exceeded our
expectation for the year and was driven in part by proceeds from
the reinsurance transaction executed in March. As we have
communicated, absent compelling alternatives, we believe that
growing the cash dividend and repurchasing our shares are the most
attractive means for deploying capital. We continue to anticipate
that we'll repurchase $1.4 billion of
our shares in 2016, largely front-end loaded in the first half of
the year. As we indicated last quarter, we also increased the cash
dividend 5.1%, effective with the fourth quarter, marking the
33rd consecutive year in which we've increased the 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.
"As we look to 2016, our guidance remains unchanged since
our December outlook call. Our objective is to produce stable
operating earnings per diluted share of $6.17 to $6.41, assuming the average exchange
rate in 2015 of 120.99 yen to the
dollar. I would remind you that with volatile financial markets and
interest rates at significantly depressed levels, it is difficult
to safely invest cash flows at attractive yields. Additionally,
2016 benefit ratios in both the U.S. and Japan anticipate continued favorable
experience. As always, we 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 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 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. (EST) on Tuesday, February 2, 2016.
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED INCOME STATEMENT
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
DECEMBER 31,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
5,319
|
|
$
|
5,514
|
|
(3.5)
|
%
|
|
|
|
|
|
|
|
|
|
Benefits and
claims
|
|
2,930
|
|
|
3,069
|
|
(4.5)
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and
operating expenses
|
|
1,279
|
|
|
1,370
|
|
(6.8)
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
1,110
|
|
|
1,075
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
380
|
|
|
372
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
730
|
|
$
|
703
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – basic
|
$
|
1.72
|
|
$
|
1.57
|
|
9.6
|
%
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – diluted
|
|
1.71
|
|
|
1.57
|
|
8.9
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute earnings per share (000):
|
|
|
|
|
|
|
|
|
|
Basic
|
425,056
|
|
446,370
|
|
(4.8)
|
%
|
|
Diluted
|
427,556
|
|
449,030
|
|
(4.8)
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
TWELVE MONTHS
ENDED DECEMBER 31,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
20,872
|
|
$
|
22,728
|
|
(8.2)
|
%
|
|
|
|
|
|
|
|
|
|
Benefits and
claims
|
|
11,746
|
|
|
12,937
|
|
(9.2)
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and
operating expenses
|
|
5,264
|
|
|
5,300
|
|
(.7)
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
3,862
|
|
|
4,491
|
|
(14.0)
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
1,329
|
|
|
1,540
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
2,533
|
|
$
|
2,951
|
|
(14.2)
|
%
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – basic
|
$
|
5.88
|
|
$
|
6.54
|
|
(10.1)
|
%
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – diluted
|
|
5.85
|
|
|
6.50
|
|
(10.0)
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute earnings per share (000):
|
|
|
|
|
|
|
|
|
|
Basic
|
430,654
|
|
451,204
|
|
(4.6)
|
%
|
|
Diluted
|
433,172
|
|
454,000
|
|
(4.6)
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
1.58
|
|
$
|
1.50
|
|
5.3
|
%
|
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED BALANCE SHEET
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
DECEMBER
31,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments and
cash
|
$
|
105,897
|
|
$
|
107,341
|
|
(1.3)
|
%
|
|
|
|
|
|
|
|
|
|
Deferred policy
acquisition costs
|
|
8,511
|
|
|
8,273
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
3,888
|
|
|
4,153
|
|
(6.4)
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
118,296
|
|
$
|
119,767
|
|
(1.2)
|
%
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy
liabilities
|
$
|
87,631
|
|
$
|
83,933
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
5,011
|
|
|
5,282
|
|
(5.1)
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
8,272
|
|
|
12,205
|
|
(32.2)
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
17,382
|
|
|
18,347
|
|
(5.3)
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
118,296
|
|
$
|
119,767
|
|
(1.2)
|
%
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period (000)
|
|
424,380
|
|
|
442,445
|
|
(4.1)
|
%
|
RECONCILIATION OF
OPERATING EARNINGS TO NET EARNINGS
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED DECEMBER 31,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
668
|
|
$
|
581
|
|
15.1
|
%
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
70
|
|
|
28
|
|
|
|
Hedge costs
related to
foreign
|
|
|
|
|
|
|
|
|
currency investments
|
|
(49)
|
|
|
(1)
|
|
|
|
Impact of other
derivative/hedging activities
|
|
39
|
|
|
56
|
|
|
|
Other and non-recurring income (loss)
|
|
2
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
730
|
|
$
|
703
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
$
|
1.56
|
|
$
|
1.29
|
|
20.9
|
%
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
Realized investment gains
(losses):
|
|
|
|
|
|
|
|
|
Securities transactions and impairments
|
|
.17
|
|
|
.07
|
|
|
|
Hedge
costs related to
foreign
|
|
|
|
|
|
|
|
|
currency
investments
|
|
(.12)
|
|
|
–
|
|
|
|
Impact of other derivative/hedging activities
|
|
.09
|
|
|
.12
|
|
|
|
Other and
non-recurring income (loss)
|
|
.01
|
|
|
.09
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
$
|
1.71
|
|
$
|
1.57
|
|
8.9
|
%
|
RECONCILIATION OF
OPERATING EARNINGS TO NET EARNINGS
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS
ENDED DECEMBER 31,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
2,670
|
|
$
|
2,797
|
|
(4.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
97
|
|
|
119
|
|
|
|
|
Hedge costs
related to
foreign
|
|
|
|
|
|
|
|
|
|
currency investments
|
|
(88)
|
|
|
(24)
|
|
|
|
|
Impact of other
derivative/hedging activities
|
|
27
|
|
|
16
|
|
|
|
|
Other and non-recurring income (loss)
|
|
(173)
|
|
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
2,533
|
|
$
|
2,951
|
|
(14.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
$
|
6.16
|
|
$
|
6.16
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
Realized investment gains
(losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
.23
|
|
|
.26
|
|
|
|
|
Hedge
costs related to
foreign
|
|
|
|
|
|
|
|
|
|
currency
investments
|
|
(.20)
|
|
|
(.05)
|
|
|
|
|
Impact of other derivative/hedging activities
|
|
.06
|
|
|
.03
|
|
|
|
|
Other and
non-recurring income (loss)
|
|
(.40)
|
|
|
.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
$
|
5.85
|
|
$
|
6.50
|
|
(10.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF FOREIGN
CURRENCY ON OPERATING RESULTS1
(SELECTED PERCENTAGE
CHANGES, UNAUDITED)
|
|
|
|
THREE MONTHS ENDED
DECEMBER 31, 2015
|
Including
Currency
Changes
|
Excluding
Currency
Changes2
|
|
|
|
Premium
income
|
(2.1)
|
%
|
2.4
|
%
|
|
|
|
|
|
Net investment
income
|
(2.0)
|
|
.4
|
|
|
|
|
|
|
Total benefits and
expenses
|
(5.7)
|
|
(1.5)
|
|
|
|
|
|
|
Operating
earnings
|
15.1
|
|
19.1
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
20.9
|
|
24.8
|
|
|
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)
|
|
|
|
TWELVE MONTHS
ENDED DECEMBER 31, 2015
|
Including
Currency
Changes
|
Excluding
Currency
Changes2
|
|
|
|
Premium
income
|
(7.9)
|
%
|
1.6
|
%
|
|
|
|
|
|
Net investment
income
|
(5.6)
|
|
(.1)
|
|
|
|
|
|
|
Total benefits and
expenses
|
(8.2)
|
|
1.1
|
|
|
|
|
|
|
Operating
earnings
|
(4.5)
|
|
2.5
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
–
|
|
7.5
|
|
|
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 SHARE SCENARIOS
|
|
Average
Exchange
Rate
|
|
Annual
Operating
EPS
|
|
% Growth
Over 2015
|
|
Yen
Impact
|
|
|
|
|
|
|
|
|
|
|
|
|
110
|
|
$
|
6.49
|
-
|
6.73
|
5.4
|
-
|
9.3%
|
|
$ .32
|
|
|
|
|
|
|
|
|
|
|
|
|
115
|
|
|
6.34
|
-
|
6.58
|
|
2.9
|
-
|
6.8
|
|
.17
|
|
|
|
|
|
|
|
|
|
|
|
|
120.99*
|
|
|
6.17
|
-
|
6.41
|
|
.2
|
-
|
4.1
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
125
|
|
|
6.07
|
-
|
6.31
|
|
(1.5)
|
-
|
2.4
|
|
(.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
130
|
|
|
5.95
|
-
|
6.19
|
|
(3.4)
|
-
|
.5
|
|
(.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
*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 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-fourth-quarter-results-affirms-2016-operating-eps-and-sales-outlook-declares-first-quarter-cash-dividend-300213096.html
SOURCE Aflac Incorporated