Summary
Aflac Inc. reported its third-quarter and nine-month results for the period ending September 29, 2013. The company experienced a decrease in revenues and net earnings compared to the same periods in the previous year, largely attributed to a weaker yen/dollar exchange rate. For the nine months ended September 30, 2013, net earnings were $2.5 billion, or $5.31 per diluted share, up from $2.3 billion, or $4.87 per diluted share, in the prior year. However, the third quarter showed a decline in net earnings to $702 million ($1.50 per diluted share) from $1.0 billion ($2.16 per diluted share) year-over-year. The company's investment portfolio, a key component of its financial performance, saw a significant decrease in unrealized gains, reflecting market fluctuations. Aflac Japan remains the primary contributor to the company's earnings, though its performance was impacted by currency translation effects. The U.S. segment showed modest growth in premium income and operating earnings. The company also executed strategic financing activities, including issuing new senior notes and entering into a revolving credit facility, while continuing its share repurchase program.
Financial Highlights
32 data points| Revenue | $5.89B |
| SG&A Expenses | $568.00M |
| Operating Income | $1.05B |
| Interest Expense | $71.00M |
| Net Income | $702.00M |
| EPS (Basic) | $0.76 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 928.65M |
| Shares Outstanding (Diluted) | 934.78M |
Key Highlights
- 1Aflac Inc. reported a year-over-year increase in net earnings for the first nine months of 2013 to $2.5 billion ($5.31 per diluted share), but a decrease in third-quarter net earnings to $702 million ($1.50 per diluted share).
- 2The company's revenues declined in both the third quarter and the first nine months of 2013, primarily due to the weakening yen against the U.S. dollar.
- 3Aflac Japan, the company's largest segment, saw its pretax operating earnings decrease in yen terms compared to the prior year, impacted by currency translation and changes in investment income.
- 4The U.S. segment demonstrated stable performance, with a slight increase in premium income and modest growth in pretax operating earnings.
- 5Shareholders' equity experienced a significant decline in unrealized gains on investment securities and derivatives, from $2.6 billion at the end of 2012 to $135 million at the end of the third quarter of 2013.
- 6The company issued $700 million in senior notes in June 2013 and secured a 50 billion yen revolving credit facility in March 2013.
- 7Aflac continued its share repurchase program, buying back approximately 5.6 million shares for $298 million in the first nine months of 2013, and increased its full-year share repurchase target.