COLUMBUS, Ga., April 27, 2017 /PRNewswire/ -- Aflac
Incorporated today reported its first quarter results.
Total revenues decreased 2.6% to $5.3
billion during the first quarter of 2017, compared with
$5.5 billion in the first quarter of
2016. Net earnings were $592 million,
or $1.47 per diluted share, compared
with $731 million, or $1.74 per share, a year ago. The decrease in
revenue and net earnings reflects realized gains and losses in the
comparable quarters and lower premium and investment income in the
Japan segment attributable to the
low-interest-rate environment.
Net earnings in the first quarter of 2017 included pretax net
losses of $129 million, or
$.31 per diluted share on a pretax
basis, compared with pretax net gains of $40
million, or $.09 per diluted
share on a pretax basis, a year ago. Beginning in the first quarter
of 2017, the company began reporting amortized hedge costs
associated with certain U.S. dollar investments in the Japan portfolio as part of operating earnings.
Pretax net realized losses from securities transactions and
impairments for the first quarter amounted to $17 million and were composed of pretax net
realized investment losses from securities transactions of
$7 million, and pretax realized
investment losses from impairments of $10
million. Pretax net realized investment losses from certain
derivative and foreign currency activities in the quarter were
$92 million. Net earnings also
included a pretax loss of $20
million, reflecting guaranty fund assessments of
$14 million and Japan branch conversion costs of $6 million. The income tax benefit on
non-operating items in the quarter was $45
million. See the "Reconciliation of Net Earnings to
Operating Earnings" schedule.
The following discussion includes references to Aflac's non-U.S.
GAAP performance measures, operating earnings, operating earnings
per diluted share and operating return on equity. These measures
are not calculated in accordance with U.S. GAAP. The measures
exclude items that the company believes may obscure the underlying
fundamentals and trends in insurance operations because they tend
to be driven by general economic conditions and events or related
to infrequent activities not directly associated with insurance
operations. Management uses operating earnings and operating
earnings per diluted share to evaluate the financial performance of
Aflac's insurance operations on a consolidated basis and believes
that a presentation of these measures is vitally important to an
understanding of the underlying profitability drivers and trends of
Aflac's insurance business.
Aflac defines operating earnings (a non-U.S. GAAP financial
measure) as the profits derived from operations. Operating earnings
includes interest cash flows associated with notes payable and
hedge costs related to foreign currency denominated investments,
but excludes certain items that cannot be predicted or that are
outside of management's control, such as realized investment gains
and losses from securities transactions, impairments, and certain
derivative and foreign currency activities; nonrecurring items; and
other non-operating income (loss) from net earnings. Nonrecurring
and other non-operating items consist of infrequent events and
activity not associated with the normal course of the Company's
insurance operations and do not reflect Aflac's underlying business
performance. Operating earnings per share (basic or dilutive) are
the operating earnings for the period divided by the average
outstanding shares (basic or dilutive) for the period presented.
Operating return on equity excluding foreign currency effect is
calculated using operating earnings excluding yen, as reconciled
with total U.S. GAAP net earnings, divided by average shareholders'
equity, excluding accumulated other comprehensive income (AOCI).
The comparable U.S. GAAP measure is return on average equity (ROE)
as determined using net earnings and average total shareholders'
equity. Reconciliations of the foregoing non-GAAP measures to the
most comparable U.S. GAAP measures are provided in the schedules
accompanying this release.
Due to the size of Aflac Japan, where the functional currency is
the Japanese yen, fluctuations in the yen/dollar exchange rate can
have a significant effect on reported results. In periods when the
yen weakens, translating yen into dollars results in fewer dollars
being reported. When the yen strengthens, translating yen into
dollars results in more dollars being reported. Consequently, yen
weakening has the effect of suppressing current period results in
relation to the comparable prior period, while yen strengthening
has the effect of magnifying current period results in relation to
the comparable prior period. As a result, the company views foreign
currency translation as a financial reporting issue for Aflac
rather than an economic event to the company or shareholders.
Because a significant portion of the company's business is
conducted in Japan and foreign
exchange rates are outside of management's control, Aflac believes
it is important to understand the impact of translating Japanese
yen into U.S. dollars. Operating earnings, operating earnings per
diluted share "excluding current period foreign currency impact"
and operating return on average shareholders' equity excluding
foreign exchange are computed using the average yen/dollar exchange
rate for the comparable prior year period, which eliminates dollar
based fluctuations driven solely from currency rate changes.
The average yen/dollar exchange rate in the first quarter of
2017 was 113.56, or 1.6% stronger than the average rate of 115.35
in the first quarter of 2016. Operating earnings in the first
quarter were $676 million, compared
with $705 million in the first
quarter of 2016. Operating earnings per diluted share decreased .6%
to $1.67 in the quarter, compared
with $1.68 a year ago. The stronger
yen/dollar exchange rate increased operating earnings per diluted
share by $.01 for the first quarter.
Excluding the impact of the stronger yen, operating earnings per
diluted share decreased 1.2%.
Total investments and cash at the end of March 2017 were $120.5
billion, compared with $116.4
billion at December 31,
2016.
In the first quarter, Aflac repurchased $600 million, or 8.5 million of its common
shares. At the end of March, the company had 18.3 million shares
available for purchase under its share repurchase
authorizations.
Shareholders' equity was $20.3
billion, or $51.11 per share,
at March 31, 2017, compared with
$20.0 billion, or $48.22 per share, at March
31, 2016. Shareholders' equity at the end of the first
quarter included a net unrealized gain on investment securities and
derivatives of $4.5 billion, compared
with a net unrealized gain of $4.7
billion at the end of March
2016. The annualized return on average shareholders' equity
in the first quarter was 11.6%.
Shareholders' equity was $17.7
billion, or $44.49 per share
(excluding AOCI) at March 31, 2017,
compared with $17.1 billion, or
$41.15 per share, at March 31, 2016. On an operating basis (excluding
AOCI), the annualized return on average shareholders' equity for
the first quarter was 15.1%, excluding the impact of foreign
currency.
AFLAC JAPAN
In yen terms, Aflac Japan's premium income, net of reinsurance
agreements, decreased 1.1% in the first quarter to ¥362.9 billion,
with growth in third sector premium offset by reduced first sector
premium. Net investment income declined 6.3%, reflecting the
stronger yen/dollar exchange rate on dollar-denominated investment
income, increased amortized hedge costs on the U.S. dollar
investment portfolio and the persistent low-interest-rate
environment. Amortized hedge costs on the U.S. dollar investment
portfolio totaled $52 million in the
quarter, as compared to $32 million
in the previous year. Total revenues were down 1.9% to ¥427.7
billion in the first quarter. Pretax operating earnings in yen
decreased 5.6% on a reported basis and 5.1% on a currency-neutral
basis. The pretax operating profit margin for the Japan segment was 20.5%, compared with 21.3%
in the prior year.
Aflac Japan's growth rates in dollar terms for the first quarter
were magnified as a result of the stronger yen/dollar exchange
rate. Premium income, net of reinsurance agreements, increased .5%
to $3.2 billion in the first quarter.
Net investment income, which includes amortized hedge costs on
foreign investments, decreased 5.4% to $557
million.
Total revenues declined slightly by .4% to $3.8 billion. Pretax operating earnings declined
4.7% to $769 million.
In the first quarter, total new annualized premium sales
decreased 29.2% to ¥22.1 billion, or $194
million. Third sector sales, which include cancer, medical
and income support products increased 7.6% to ¥19.6 billion in the
quarter. Total first sector sales, which include products such as
WAYS and child endowment, were down 81.3% in the quarter,
reflecting the company's actions to reduce the sale of first sector
savings products that are more interest-sensitive.
AFLAC U.S.
Aflac U.S. premium income increased 1.7% to $1.4 billion in the first quarter. Net investment
income was up 2.0% to $178 million.
Total revenues increased 1.7% to $1.6
billion. The pretax operating profit margin for the U.S.
segment was 19.7%, compared with 21.5% a year ago. Pretax operating
earnings were $310 million, a
decrease of 6.7% for the quarter. Results reflect first quarter
2017 investments in the U.S. platform as well as favorable benefit
ratios in the first quarter 2016.
Aflac U.S. total new annualized premium sales increased 1.7% in
the quarter to $333 million.
Additionally, persistency in the quarter was 77.5%, compared with
76.6% a year ago.
DIVIDEND
The board of directors declared the second quarter cash
dividend. The second quarter dividend of $.43 per share is payable on June 1, 2017, to shareholders of record at the
close of business on May 24,
2017.
OUTLOOK
Commenting on the company's results, Chairman and Chief
Executive Officer Daniel P. Amos
stated: "We are pleased with the company's overall performance for
the quarter. Our results for the first quarter are consistent with
what we communicated on our December outlook call. Despite the
persistent low-interest-rate environment, Aflac Japan, our largest
earnings contributor, generated solid financial results. In yen
terms, results on an operating basis were in line with our
expectations for the quarter. Additionally, our operation in
Japan produced
better-than-expected third sector sales results. As we've
communicated, we continue to believe the long-term compound annual
growth rate for third sector product sales will be in the range of
4% to 6%.
"Turning to our U.S. operations, we are pleased with the
financial performance and continued strength in profitability. Our
results on an operating basis reflect ongoing investment in our
platform and are in line with our expectations. As we've
communicated, we anticipate a long-term compound annual growth rate
of 3% to 5% in new annualized premium sales. I want to
reiterate that as we look ahead, we believe the strategy for growth
we implemented in both our career and broker channels is the right
one, and we will continue to make tactical adjustments to meet our
long-term growth objectives.
"We remain committed to maintaining strong capital ratios on
behalf of our policyholders. We believe our financial strength in
Japan positions us to repatriate
in the range of ¥120 to ¥140 billion to the U.S. for the calendar
year 2017, assuming capital conditions remain stable. We continue
to anticipate that we'll repurchase in the range of $1.3 to $1.5 billion of our shares in 2017,
front-end loaded in the first half of the year. As is always the
case, this assumes stable capital conditions and the absence of
compelling alternatives. Our objective is to grow the dividend at a
rate generally in line with the increase in operating earnings per
diluted share before the impact of foreign currency
translation.
"I want to reiterate our 2017 earnings guidance. Our first
quarter results put us squarely on track to produce stable
operating earnings per diluted share of $6.40 to $6.65, assuming the average exchange
rate in 2016 of 108.70 yen to the
dollar. If the yen averages 105 to 115 to the dollar for the second
quarter, we would expect operating earnings, a non-U.S. GAAP
measure, to be approximately $1.55 to
$1.70 per diluted share in the second quarter. As always, we
are working very hard to achieve our earnings-per-share objective
while also ensuring we deliver on our promise to
policyholders."
ABOUT AFLAC
When a policyholder gets sick or hurt, Aflac pays cash benefits
fast. For six decades, Aflac insurance policies have given
policyholders the opportunity to focus on recovery, not financial
stress. In the United States,
Aflac is the leading provider of voluntary insurance at the
worksite. Through its trailblazing One Day PaySM
initiative, Aflac U.S. can receive, process, approve and disburse
payment for eligible claims in one business day. In Japan, Aflac is the leading provider of
medical and cancer insurance and insures one in four households.
Aflac individual and group insurance products help provide
protection to more than 50 million people worldwide. For 10
consecutive years, Aflac has been recognized by Ethisphere
as one of the World's Most Ethical Companies. In 2016,
Fortune magazine recognized Aflac as one of the 100 Best
Companies to Work For in America for the 18th consecutive year and
in 2017 included Aflac on its list of Most Admired Companies for
the 16th time. In 2015, Aflac's contact centers were recognized by
J.D. Power by providing "An Outstanding Customer Service
Experience" for the Live Phone Channel. Aflac Incorporated is a
Fortune 500 company listed on the New York Stock Exchange under the
symbol AFL. To find out more about Aflac and One Day
PaySM, visit aflac.com or espanol.aflac.com.
A copy of Aflac's Financial Analysts Briefing (FAB) supplement
for the quarter can be found on the "Investors" page at
aflac.com.
Aflac Incorporated will webcast its quarterly conference call
via the "Investors" page of aflac.com at 9:00 a.m. (EDT) on Friday,
April 28, 2017.
|
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED INCOME STATEMENT
|
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
MARCH 31,
|
|
2017
|
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
5,309
|
|
$
|
5,451
|
|
(2.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
Benefits and claims,
net
|
|
3,052
|
|
|
3,025
|
|
.9
|
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and
operating expenses
|
|
1,359
|
|
|
1,309
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
898
|
|
|
1,117
|
|
(19.6)
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
306
|
|
|
386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
592
|
|
$
|
731
|
|
(19.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – basic
|
$
|
1.48
|
|
$
|
1.75
|
|
(15.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – diluted
|
|
1.47
|
|
|
1.74
|
|
(15.5)
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute earnings per share (000):
|
|
|
|
|
|
|
|
|
|
Basic
|
401,130
|
|
418,748
|
|
(4.2)
|
%
|
|
Diluted
|
404,069
|
|
420,920
|
|
(4.0)
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
.43
|
|
$
|
.41
|
|
4.9
|
%
|
|
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED BALANCE SHEET
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
MARCH
31,
|
|
2017
|
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments and
cash
|
$
|
120,503
|
|
$
|
114,320
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Deferred policy
acquisition costs
|
|
9,255
|
|
|
8,929
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
3,892
|
|
|
4,517
|
|
(13.8)
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
133,650
|
|
$
|
127,766
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy
liabilities
|
$
|
97,624
|
|
$
|
94,128
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
5,250
|
|
|
4,984
|
|
5.3
|
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
10,436
|
|
|
8,633
|
|
20.9
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
20,340
|
|
|
20,021
|
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
133,650
|
|
$
|
127,766
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period (000)
|
|
398,002
|
|
|
415,203
|
|
(4.1)
|
%
|
|
|
RECONCILIATION OF
NET EARNINGS TO OPERATING EARNINGS
(UNAUDITED – IN
MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED MARCH 31,
|
|
2017
|
|
|
2016
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
592
|
|
$
|
731
|
|
(19.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting net
earnings:
|
|
|
|
|
|
|
|
|
|
|
Realized investment
(gains) losses:
|
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
17
|
|
|
(77)
|
|
|
|
|
|
Certain
derivative and foreign currency (gains)
losses1,
2
|
|
92
|
|
|
37
|
|
|
|
|
|
Other and non-recurring (income) loss2
|
|
20
|
|
|
–
|
|
|
|
|
|
Income tax (benefit) expense on items excluded
from operating
earnings1
|
|
(45)
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
676
|
|
|
705
|
|
(4.2)
|
%
|
|
|
Current period
foreign currency impact3
|
|
(5)
|
|
|
N/A
|
|
|
|
|
|
Operating earnings
excluding current period foreign
currency
impact4
|
$
|
671
|
|
$
|
705
|
|
(5.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
$
|
1.47
|
|
$
|
1.74
|
|
(15.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Items impacting net
earnings:
|
|
|
|
|
|
|
|
|
|
|
Realized investment (gains)
losses:
|
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
.04
|
|
|
(.18)
|
|
|
|
|
|
Certain derivative and foreign currency
(gains)
losses1, 2
|
|
.23
|
|
|
.09
|
|
|
|
|
|
Other and
non-recurring (income) loss2
|
|
.04
|
|
|
–
|
|
|
|
|
|
Income tax (benefit) expense on items excluded
from operating
earnings1
|
|
(.11)
|
|
|
.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
|
1.67
|
|
|
1.68
|
|
(.6)
|
%
|
|
|
Current period
foreign currency impact3
|
|
(.01)
|
|
|
N/A
|
|
|
|
|
|
Operating earnings
per diluted share excluding
current period foreign currency
impact4
|
$
|
1.66
|
|
$
|
1.68
|
|
(1.2)
|
%
|
|
|
|
|
1
|
Prior-year amounts
have been revised to reflect the change in methodology of
classifying the amortized hedge costs related to foreign
currency denominated investments as a component of
operating earnings.
|
|
|
2
|
Foreign currency
gains (losses) for all periods have been reclassified from other
income (loss) to derivative and foreign currency gains (losses) for
consistency with current period presentation.
|
|
|
3
|
Prior period foreign
currency impact reflected as "N/A" to isolate change for current
period only.
|
|
|
4
|
Amounts excluding
current period foreign currency impact are computed using the
average yen/dollar exchange rate for the comparable prior-year
period, which eliminates dollar-based fluctuations driven solely
from currency rate changes.
|
|
|
RECONCILIATION OF
U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
MARCH 31,
|
|
2017
|
|
|
2016
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP book
value1
|
$
|
20,340
|
|
$
|
20,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
AOCI
|
|
(2,632)
|
|
|
(2,936)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted book
value2
|
$
|
17,708
|
|
$
|
17,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of outstanding
shares at end of period (000)
|
|
398,002
|
|
|
415,203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. GAAP book value
per common share
|
$
|
51.11
|
|
|
$
48.22
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted book value
per common share
|
|
44.49
|
|
|
41.15
|
|
8.1
|
|
|
|
|
1
|
U.S. GAAP book value
represents total shareholders' equity as recorded on the balance
sheet.
|
|
2
|
Adjusted book value
is the U.S. GAAP book value, less AOCI (as recorded on the U.S.
GAAP balance sheet).
|
|
RECONCILIATION OF
U.S. GAAP RETURN ON EQUITY (ROE) TO OPERATING ROE
(EXCLUDING
CURRENCY)
|
|
|
|
|
|
|
THREE MONTHS ENDED
MARCH 31,
|
2017
|
|
2016
|
|
|
|
|
|
|
U.S. GAAP
ROE1
|
11.6
|
%
|
|
15.5
|
%
|
|
|
|
|
|
|
|
Add:
differences between operating earnings and net
earnings2
|
1.6
|
|
|
(.6)
|
|
|
|
|
|
|
|
|
Less:
impact of foreign currency3,4
|
.1
|
|
|
–
|
|
|
|
|
|
|
|
|
Add:
impact of excluding AOCI5
|
2.0
|
|
|
1.6
|
|
|
|
|
|
|
|
|
Operating ROE,
excluding currency
|
15.1
|
%
|
|
16.5
|
%
|
|
|
|
|
|
|
|
1
|
ROE is calculated by
dividing net earnings (annualized) by average shareholders'
equity.
|
|
2
|
See separate
reconciliation of net income to operating earnings.
|
|
3
|
Impact of foreign
currency is calculated by restating all yen components of the
income statement to the weighted average yen rate for
the comparable prior year
period. The impact is the difference of the restated operating
earnings compared to reported operating earnings.
|
|
4
|
For comparative
purposes, current period income is restated using the weighted
average prior period exchange rate, which eliminates the
foreign currency impact for the current
period. This allows for equal comparison of this financial
measure.
|
|
5
|
Excludes all U.S.
GAAP components of average AOCI from average shareholders'
equity
|
|
EFFECT OF FOREIGN
CURRENCY ON OPERATING RESULTS1
(SELECTED PERCENTAGE
CHANGES, UNAUDITED)
|
|
|
|
|
THREE MONTHS ENDED
MARCH 31, 2017
|
Including
Currency
Changes
|
Excluding
Currency
Changes2
|
|
|
|
|
Net premium
income3
|
.8
|
%
|
(.3)
|
%
|
|
|
|
|
|
|
Net investment
income4
|
(3.4)
|
|
(4.0)
|
|
|
|
|
|
|
|
Total benefits and
expenses
|
1.4
|
|
.3
|
|
|
|
|
|
|
|
Operating
earnings
|
(4.2)
|
|
(5.0)
|
|
|
|
|
|
|
|
Operating earnings
per diluted
share
|
(.6)
|
|
(1.2)
|
|
|
|
1
|
Refer to previously
defined operating earnings and operating earnings per diluted
share.
|
|
2
|
Amounts excluding
currency changes were determined using the same yen/dollar exchange
rate for the current period as the
comparable period in the
prior year.
|
|
3
|
Net of
reinsurance
|
|
4
|
Less amortized hedge
costs on foreign investments
|
|
2017 OPERATING
EARNINGS PER SHARE1 SCENARIOS
|
|
|
Weighted-Average
Yen/Dollar
Exchange Rate
|
Operating Earnings
Per
Diluted Share
|
Foreign
Currency
Impact
|
|
|
|
|
100
|
$ 6.73 -
6.98
|
$ .33
|
|
105
|
6.53 -
6.78
|
.13
|
|
108.702
|
6.40 -
6.65
|
–
|
|
115
|
6.19 -
6.44
|
(.21)
|
|
120
|
6.04 -
6.29
|
(.36)
|
|
|
|
|
1
|
A non-GAAP financial
measure, operating earnings per share (basic or dilutive) are the
operating earnings for the period divided by the average
outstanding shares (basic or dilutive) for the period presented in
2017 and 2016.In reliance on the "unreasonable efforts" exception
in Item 10(e)(1)(i)(B) of SEC Regulation S-K, a quantitative
reconciliation to the most comparable GAAP measure is not provided
for this financial measure. Forward-looking information with regard
to the most comparable GAAP financial measure, earnings per share,
is not available without unreasonable effort. This is due to the
unpredictable and uncontrollable nature of these reconciling items,
which would require an unreasonable effort to forecast and we
believe would result in such a broad range of projected values that
would not be meaningful to investors. For this reason, we believe
that the probable significance of such information is
low.
|
|
2
|
Actual 2016
weighted-average exchange rate
|
FORWARD-LOOKING INFORMATION
The Private Securities Litigation Reform Act of 1995 provides
a "safe harbor" to encourage companies to provide prospective
information, so long as those informational statements are
identified as forward-looking and are accompanied by meaningful
cautionary statements identifying important factors that could
cause actual results to differ materially from those included in
the forward-looking statements. We desire to take advantage of
these provisions. This report contains cautionary statements
identifying important factors that could cause actual results to
differ materially from those projected herein, and in any other
statements made by Company officials in communications with the
financial community and contained in documents filed with the
Securities and Exchange Commission (SEC).
Forward-looking statements are not based on historical
information and relate to future operations, strategies, financial
results or other developments. Furthermore, forward-looking
information is subject to numerous assumptions, risks and
uncertainties. In particular, statements containing words such as
"expect," "anticipate," "believe," "goal," "objective," "may,"
"should," "estimate," "intends," "projects," "will," "assumes,"
"potential," "target", "outlook" or similar words as well as
specific projections of future results, generally qualify as
forward-looking. Aflac undertakes no obligation to update such
forward-looking statements. We caution readers that the following
factors, in addition to other factors mentioned from time to time,
could cause actual results to differ materially from those
contemplated by the forward-looking statements: difficult
conditions in global capital markets and the economy; exposure to
significant interest rate risk; concentration of business in
Japan; foreign currency fluctuations in the yen/dollar
exchange rate; risks relating to the conversion of the Japan branch to a subsidiary; limited
availability of acceptable yen-denominated investments; deviations
in actual experience from pricing and reserving assumptions;
ability to continue to develop and implement improvements in
information technology systems; governmental actions for the
purpose of stabilizing the financial markets; interruption in
telecommunication, information technology and other operational
systems, or a failure to maintain the security, confidentiality or
privacy of sensitive data residing on such systems; ongoing changes
in our industry; failure to comply with restrictions on patient
privacy and information security; extensive regulation and changes
in law or regulation by governmental authorities; defaults and
credit downgrades of securities in our investment portfolio;
ability to attract and retain qualified sales associates and
employees; decline in creditworthiness of other financial
institutions; subsidiaries' ability to pay dividends to Aflac
Incorporated; decreases in our financial strength or debt
ratings; inherent limitations to risk management policies and
procedures; concentration of our investments in any particular
single-issuer or sector; differing judgments applied to
investment valuations; ability to effectively manage key executive
succession; significant valuation judgments in determination of
amount of impairments taken on our investments; catastrophic events
including, but not necessarily limited to, epidemics, pandemics,
tornadoes, hurricanes, earthquakes, tsunamis, acts of terrorism and
damage incidental to such events; changes in U.S. and/or Japanese
accounting standards; loss of consumer trust resulting from events
external to our operations; credit and other risks associated with
Aflac's investment in perpetual securities; increased expenses and
reduced profitability resulting from changes in assumptions for
pension and other postretirement benefit plans; level and outcome
of litigation; and failure of internal controls or corporate
governance policies and procedures.
Analyst and investor contact – David A.
Young, 706.596.3264 or 800.235.2667; FAX: 706.324.6330 or
dyoung@aflac.com
Media contact – Catherine Blades,
706.596.3014; FAX: 706.320.2288 or cblades@aflac.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aflac-incorporated-announces-first-quarter-results-affirms-2017-outlook-declares-second-quarter-cash-dividend-300447603.html
SOURCE Aflac Incorporated