8-KRegulation FDExhibits & Filings

AFLAC INC 8-K Report, Regulation FD Disclosure (Jun 23, 2011)

Filed June 23, 2011For Securities:AFL

Summary

Aflac Incorporated filed an 8-K on June 23, 2011, announcing an amendment to its shelf registration with Japanese authorities to issue up to 100 billion yen in debt securities. This filing updates a previous registration from November 2009. The report also provided an important update on the company's investment portfolio derisking efforts. Aflac anticipates recognizing a pretax loss of $165 million related to the sale of investments in Greek and Irish banks and financial institutions during the second quarter of 2011. Furthermore, the company estimates approximately $445 million in pretax impairment losses on its investments in Portuguese banks. These figures indicate a proactive approach to managing exposure to sovereign debt risks within the European financial sector.

Key Highlights

  • 1Aflac amended its Japanese shelf registration to potentially issue up to 100 billion yen in debt securities.
  • 2The amendment updates a prior shelf registration filed in November 2009.
  • 3The company is actively derisking its investment portfolio.
  • 4Aflac expects a pretax loss of $165 million from selling investments in Greek and Irish financial institutions in Q2 2011.
  • 5Of the $165 million loss, $72 million had been previously disclosed.
  • 6Aflac estimates $445 million in pretax impairment losses on investments in Portuguese banks.

Frequently Asked Questions

The primary purpose of this 8-K filing is to inform investors about Aflac's amendment to its shelf registration with Japanese authorities for debt issuance and to provide an update on the company's efforts to derisk its investment portfolio, particularly concerning European financial institutions.

Aflac amended its shelf registration to allow for the issuance of debt securities up to a maximum of 100 billion yen.

Aflac expects to recognize a pretax loss of $165 million from selling investments in Greek and Irish financial institutions and estimates an additional $445 million in pretax impairment losses on investments in Portuguese banks, impacting its second quarter 2011 financial results.

Regarding the Greek and Irish financial institution investments, $72 million of the $165 million pretax loss had already been previously disclosed. The remaining portion and the full extent of the Portuguese bank impairment losses are being disclosed in this filing.