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.