Aflac Sells More Securities As It Looks To Derisk Portfolio
May 17 2011 - 6:26PM
Dow Jones News
Insurer Aflac Inc. said it will incur a loss of about $31
million before taxes in the second quarter as it sells off some
investments that had been flagged as problematic by analysts and
investors.
The largest loss, of $72 million, is tied to the sale of
holdings in Irish Life and Permanent Group Holdings PLC (IL0.DB),
according to a regulatory filing Tuesday. The company also sold off
sovereign debt from Tunisia at a pre-tax loss of $5 million.
Those losses were offset by gains of $18 million from the sale
of perpetual securities issued by Lloyds Banking Group PLC
(LLOY.LN) and $28 million of perpetual securities from Royal Bank
of Scotland Group PLC (RBS.LN).
The asset sales are part of Aflac's ongoing effort to unload
some of its sovereign and bank debt from financially stressed
regions, and reduce the size of the largest positions in its
investment portfolio. The company sold off Greek debt in the first
quarter.
Such investments have made some investors and analysts nervous
in recent years, first amid the 2008 financial crisis and later
when the European Union grappled with the mounting debts of Greece
and other member nations last year.
-By Erik Holm, Dow Jones Newswires; 212-416-2892;
erik.holm@dowjones.com
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