Summary
Aflac Incorporated reported strong financial results for the third quarter and first nine months of 2009, driven by robust performance in its core insurance operations, particularly in Japan. Total revenues increased due to higher premium income and net investment income. The company successfully managed benefits and expenses, leading to a notable increase in net earnings and diluted earnings per share compared to the prior year. The balance sheet remained solid, with growth in total assets and policy liabilities, reflecting the ongoing expansion of its business. While the company faced challenges related to investment impairments, particularly in its perpetual securities portfolio, these were largely managed within the context of the broader economic environment. Aflac continued its focus on operational efficiency, sales growth initiatives, and maintaining a strong capital position.
Financial Highlights
29 data points| Revenue | $4.53B |
| SG&A Expenses | $487.00M |
| Interest Expense | $25.00M |
| Net Income | $363.00M |
| EPS (Basic) | $0.39 |
| EPS (Diluted) | $0.39 |
| Shares Outstanding (Basic) | 933.17M |
| Shares Outstanding (Diluted) | 939.43M |
Key Highlights
- 1Total revenues increased to $4.526 billion for the three months ended September 30, 2009, up from $3.691 billion in the same period of 2008, driven by higher premium income and net investment income.
- 2Net earnings for the three months ended September 30, 2009, rose to $1.245 billion, or $0.77 per diluted share, compared to $1.057 billion, or $0.21 per diluted share, in the prior year's quarter.
- 3Aflac Japan continued to be the primary driver of growth, with pretax operating earnings increasing significantly, supported by strong premium income and effective expense management.
- 4The company's investment portfolio experienced other-than-temporary impairment losses totaling $987 million (after-tax $642 million) in the nine-month period, primarily related to perpetual securities and certain corporate bonds, reflecting challenging market conditions.
- 5Total policy liabilities increased to $69.543 billion as of September 30, 2009, from $66.219 billion at December 31, 2008, indicating business growth.
- 6Aflac continued its share repurchase program, with $32.4 million shares remaining available for purchase under authorized programs as of September 30, 2009.
- 7The company's capital position remained strong, with a robust Risk-Based Capital (RBC) ratio of approximately 405% for Aflac's insurance operations.