Summary
Aflac Incorporated reported solid financial results for the third quarter and the first nine months of 2011, driven by a stronger yen and continued sales momentum, particularly in its Japan segment. Total revenues increased by 11.0% year-over-year in the third quarter, reaching $6.0 billion, while net earnings grew to $744 million ($1.59 per diluted share) from $690 million ($1.46 per diluted share) in the prior year's quarter. For the first nine months, total revenues were up 4.9% to $16.2 billion, though net earnings declined to $1.4 billion ($3.02 per diluted share) from $1.9 billion ($4.03 per diluted share) in the comparable period of 2010. This decline was largely attributable to significant realized investment losses, including other-than-temporary impairments totaling $1.1 billion during the nine-month period, primarily due to a strategic effort to reduce investment risk exposure. Despite these investment challenges, the company's core insurance operations, especially in Japan, demonstrated resilience, with Aflac Japan achieving record sales production for the third quarter. The company also continued its share repurchase program and increased its quarterly dividend, signaling confidence in its financial stability and future prospects.
Financial Highlights
30 data points| Revenue | $5.99B |
| SG&A Expenses | $579.00M |
| Operating Income | $1.18B |
| Interest Expense | $52.00M |
| Net Income | $736.00M |
| EPS (Basic) | $0.79 |
| EPS (Diluted) | $0.79 |
| Shares Outstanding (Basic) | 931.82M |
| Shares Outstanding (Diluted) | 935.59M |
Key Highlights
- 1Total revenues increased by 11.0% to $6.0 billion in Q3 2011, and by 4.9% to $16.2 billion for the first nine months of 2011.
- 2Net earnings rose to $744 million ($1.59/share) in Q3 2011, up from $690 million ($1.46/share) in Q3 2010.
- 3Aflac Japan reported record sales production for the third quarter, with new annualized premium sales increasing by 22.2% year-over-year.
- 4The company experienced significant realized investment losses totaling $1.3 billion for the first nine months of 2011, primarily due to $1.1 billion in other-than-temporary impairments.
- 5Shareholders' equity benefited from a net unrealized gain on investment securities of $708 million as of September 30, 2011, compared to $64 million at December 31, 2010.
- 6Aflac repurchased 5.1 million shares of common stock in the open market during the first nine months of 2011 and increased its quarterly dividend to $0.33 per share.