DOW JONES NEWSWIRES
Aflac Inc.'s (AFL) first-quarter earnings fell 38% as the
insurer stepped up efforts to reduce its risks in the period,
offsetting a slight rise in revenue and higher premium income.
Aflac had posted strong results lately, helped by its Japanese
operations, which are the company's biggest revenue stream. Chief
Executive Daniel Amos told The Wall Street Journal in March that
the company would see limited impact on earnings from the
earthquake and subsequent tsunami that rocked Japan. Fitch Ratings
boosted its outlook on Aflac earlier this month, citing the
company's strong and steady earnings.
Aflac reported a profit of $395 million, or 84 cents a share,
down from $636 million, or $1.35 a share, a year earlier. Operating
earnings, which exclude investment gains and losses, rose to $1.63
a share from $1.41. The latest period included 79 cents a share
that went toward reducing risks tied to investments in Greek banks,
among other things, up from 6 cents a year earlier. Revenue edged
up 1% to $5.12 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of $1.52 on $5.57 billion in revenue.
Insurers' bottom lines tend to mirror broad strokes in markets,
as the companies have large investment portfolios.
Premium income in yen rose 4.8% at the company's Japanese
operations, while U.S. premium income climbed 2.5%.
The company forecast current-quarter operating earnings of $1.51
to $1.57 a share. Analysts surveyed by Thomson Reuters expect
$1.54.
Shares rose 1.3% to $55.01 after hours. As of the close, the
stock had fallen 3.8% so far this year.
-By Nathan Becker and Lauren Pollock, Dow Jones Newswires;
212-416-2356; lauren.pollock@dowjones.com