COLUMBUS, Ga., Jan. 31, 2012 /PRNewswire/ -- Aflac Incorporated
(NYSE: AFL) today reported its fourth quarter results.
Reflecting the benefit from a stronger yen/dollar exchange rate,
revenues rose 12.9% to $6.0 billion
in the fourth quarter of 2011, compared with $5.3 billion in the fourth quarter of 2010. Net
earnings were $546 million, or
$1.17 per diluted share, compared
with $437 million, or $.92 per share, a year ago.
Net earnings in the fourth quarter of 2011 included after-tax
realized investment losses, net of realized investment gains, of
$145 million, or $.31 per diluted share, compared with net
after-tax losses of $191 million, or
$.41 per diluted share, a year ago.
After-tax realized investment losses in the quarter were
$522 million, or $1.12 per diluted share, and primarily resulted
from the impairment of several securities. The impairment charges
reflect enhancements to the company's investment strategy to
improve diversification and credit profile by reducing our exposure
to Europe through opportunistic
investment transactions. After-tax realized investment gains from
securities transactions in the quarter were $355 million, or $.76 per diluted share. The realized
investment gains were primarily generated by the sale of the
company's remaining holdings of U.S. Treasury strips and various
Japanese Government bonds (JGBs) that were part of a swap program.
The company also realized an after-tax gain of $22 million, or $.05 per diluted share, associated with foreign
exchange and passive derivative activities.
Aflac believes that an analysis of operating earnings, a
non-GAAP financial measure, is vitally important to an
understanding of the company's underlying profitability drivers.
Aflac defines operating earnings as the profits derived from
operations before realized investment gains and losses from
securities transactions, impairments, and derivative and hedging
activities, as well as nonrecurring items. Aflac's derivative
activities, which are primarily passive in nature, include foreign
currency, interest rate and credit default swaps in variable
interest entities that are consolidated. Management uses operating
earnings to evaluate the financial performance of Aflac's insurance
operations because realized gains and losses from securities
transactions, impairments, and derivative and hedging activities,
as well as nonrecurring items, tend to be driven by general
economic conditions and events, and therefore may obscure the
underlying fundamentals and trends in Aflac's insurance
operations.
Furthermore, because a significant portion of Aflac's business
is in Japan, where the functional
currency is the yen, the company believes it is equally important
to understand the impact on operating earnings from translating yen
into dollars. Aflac Japan's yen-denominated income statement is
translated from yen into dollars using an average exchange rate for
the reporting period, and the balance sheet is translated using the
exchange rate at the end of the period. However, except for a
limited number of transactions, the company does not actually
convert yen into dollars. As a result, Aflac views foreign currency
as a financial reporting issue and not as an economic event for the
company or its shareholders. Because changes in exchange rates
distort the growth rates of operations, readers of Aflac's
financial statements are also encouraged to evaluate financial
performance excluding the impact of foreign currency translation.
The chart toward the end of this release presents a comparison of
selected income statement items with and without foreign currency
changes to illustrate the effect of currency.
Operating earnings in the fourth quarter were $691 million, compared with $628 million in the fourth quarter of 2010.
Operating earnings per diluted share rose 11.3% to
$1.48 in the quarter, compared with
$1.33 a year ago. The stronger
yen/dollar exchange rate increased operating earnings per diluted
share by $.06 during the fourth
quarter. Excluding the impact from the stronger yen, operating
earnings per share increased 6.8%.
Results for the full year also benefited from the stronger yen.
Total revenues were up 6.9% to $22.2
billion, compared with $20.7
billion a year ago. Net earnings were $2.0 billion, or $4.18 per diluted share, compared with
$2.3 billion, or $4.95 per share, in 2010. Operating earnings for
the full year were $3.0 billion, or
$6.33 per diluted share, compared
with $2.6 billion, or $5.53 per diluted share, in 2010. Excluding the
benefit of $.36 per share from the
stronger yen, operating earnings per diluted share rose 8.0% for
the year.
Reflecting the benefit from a stronger yen/dollar exchange rate,
total investments and cash at the end of December 2011 were $103.5
billion, compared with $100.8
billion at September 30,
2011.
In the fourth quarter, Aflac repurchased .9 million shares of
its common stock, bringing the total number of shares repurchased
for the year to 6.0 million. At the end of December, the company
had 24.4 million shares available for purchase under its share
repurchase authorization.
Shareholders' equity was $13.5
billion at December 31, 2011,
compared with $12.7 billion at
September 30, 2011. Shareholders'
equity at the end of the fourth quarter included a net unrealized
gain on investment securities and derivatives of $1.2 billion, compared with a net unrealized gain
of $708 million at the end of
September 2011. Shareholders' equity
per share was $28.96 at December 31, 2011, compared with $27.25 per share at September 30, 2011. The annualized return on
average shareholders' equity in the fourth quarter was 16.6%. On an
operating basis (excluding realized investment losses and the
impact of derivative gains/losses on net earnings, and unrealized
investment and derivative gains/losses in shareholders' equity),
the annualized return on average shareholders' equity was 22.7% for
the fourth quarter.
On January 1, 2012, the company
adopted Accounting Standards Update 2010-26 (previously referred to
as EITF 09-G), an accounting standard that amends accounting for
costs associated with acquiring or renewing insurance contracts
(deferred acquisition costs, or DAC). These amended accounting
rules are intended to address the diversity in practice regarding
which costs qualify as deferred acquisition costs. The
retrospective adoption of this accounting standard will result in
an estimated after-tax cumulative charge to the company's retained
earnings of $400 million to $500
million, or 3.6% to 4.5% of shareholder's equity as of
December 31, 2010. The company
currently estimates the adoption of this accounting standard will
result in an immaterial impact in net income in 2011 and 2012 and
for all preceding years impacted by the retrospective adoption.
This accounting standard is not applicable to the company's
statutory reporting, nor will it impact the company's risk-based
capital or holding company liquidity position.
AFLAC JAPAN
Aflac Japan's total revenues in yen were up 6.0% in the fourth
quarter of 2011. Premium income in yen rose 6.3%, and net
investment income increased 3.2%. Investment income growth in yen
terms was suppressed by the stronger yen/dollar exchange rate
because approximately 33% of Aflac Japan's fourth quarter
investment income was dollar-denominated. The pretax operating
profit margin increased from the fourth quarter of 2010, rising
from 18.6% to 19.0%, and pretax operating earnings in yen increased
8.0%. For the year, premium income in yen increased 5.4%, and net
investment income declined .4%. Total revenues in yen were up 4.5%,
and pretax operating earnings grew 6.8%.
The average yen/dollar exchange rate in the fourth quarter of
2011 was 77.35, or 6.8% stronger than the average rate of 82.58 in
the fourth quarter of 2010. For the full year of 2011, the average
exchange rate was 79.73, or 10.0% stronger than the rate of 87.69 a
year ago. Aflac Japan's growth rates in dollar terms for both the
fourth quarter and the full year were magnified as a result of the
stronger average yen/dollar exchange rates.
Reflecting the stronger yen, premium income in dollars rose
13.5% to $4.1 billion in the fourth
quarter. Net investment income was up 10.2% to $708 million. Total revenues increased 13.1% to
$4.9 billion. Pretax operating
earnings rose 15.3% to $920 million.
For the full year, premium income was $15.6
billion, or 15.8% higher than a year ago. Net investment
income rose 9.6% to $2.7 billion.
Total revenues were up 14.9% to $18.4
billion. Pretax operating earnings were $3.9 billion, or 17.5% higher than a year
ago.
Aflac Japan again produced significantly better-than-expected
sales results. New annualized premium sales rose 31.0% to a record
48.6 billion yen in the fourth
quarter of 2011. In dollar terms, new annualized premium sales were
$627 million. Bank channel sales were
again very strong, generating 16.5 billion
yen in sales in the fourth quarter, which is an increase of
135.7% over the fourth quarter of 2010. Sales of WAYS, Aflac's
unique hybrid whole-life product, increased 218.1% over the fourth
quarter of 2010. Following the March
2011 introduction of the new base cancer policy DAYS, cancer
sales increased 10.2% over the fourth quarter of 2010.
For the full year, new annualized premium sales were up 18.6% to
161.0 billion yen, or $2.0 billion.
AFLAC U.S.
Aflac U.S. total revenues rose 4.0% to $1.3 billion in the fourth quarter. Premium
income increased 4.1% to $1.2
billion, and net investment income was up 3.4% to
$149 million. As expected, throughout
2011, particularly the fourth quarter, the company increased
spending on IT and advertising initiatives to accommodate the
growing business. As a result, pretax operating earnings were
$198 million, a decrease of 11.8% for
the quarter. For the year, total revenues were up 3.8% to
$5.3 billion and premium income rose
3.4% to $4.7 billion. Net investment
income increased 7.1% to $588
million. Pretax operating earnings were $917 million, a slight decrease of .8% from a
year ago.
Aflac U.S. sales performed well for the fourth consecutive
quarter. New sales increased 9.3% to $447
million, benefiting from strong performance generated by
both the core traditional and broker sales channels. For the full
year, total new sales increased 6.8% to $1.5
billion, which exceeded the Aflac U.S. sales objective for
the year.
DIVIDEND
The board of directors declared the first quarter cash dividend.
The first quarter dividend of $.33
per share is payable on March 1,
2012, to shareholders of record at the close of business on
February 15, 2012.
OUTLOOK
Commenting on the company's fourth quarter results, Chairman and
Chief Executive Officer Daniel P.
Amos stated: "Aflac had another strong year. Growth of
operating earnings per diluted share was in line with our goal of
an 8% increase before the impact of foreign currency. That result
was also consistent with guidance we provided when we released
third quarter results. We had conveyed in the third quarter that
following nine months of restrained expenditures, we planned to
increase spending on IT and marketing initiatives in the fourth
quarter to strengthen our business, and that's exactly what we did.
I am pleased that 2011 marked the 22nd consecutive year in which we
achieved our earnings objective.
"Aflac Japan gets high marks for another great quarter and year.
The tremendous sales momentum they generated this quarter, largely
propelled by success in selling through banks, significantly
exceeded our expectations for the year and especially for the
quarter. In fact, Aflac Japan's fourth quarter production set an
all-time quarterly record, which is especially remarkable
considering 2011 was the year Japan was hit with the most devastating
natural disaster in its history.
"We are also pleased with Aflac U.S. results for the quarter and
year. It has been, and continues to be, the longstanding goal and
vision of Aflac U.S. to be the leading provider of voluntary
insurance in the United States,
and our sales results in 2011 build on that vision. Through our
efforts, we continue to expand Aflac's potential to connect with
employees at more companies, large and small, across the United States. The 2009 addition of group
products to our existing portfolio has allowed us to leverage our
strong brand and provide more options for customers of both our
traditional and broker distribution channels. In 2011, product
marketing efforts geared toward existing accounts contributed to
strong sales for our veteran agents. Additionally, you'll recall
that we have been establishing and developing relationships with
brokers that handle the larger-case market. While this broker
initiative is still in its infancy, we are excited about the
opportunity this channel presents for future growth.
"The strength of our capital ratios demonstrates our commitment
to maintain financial strength on behalf of our policyholders and
bondholders. As we have communicated over the past several years,
sustaining a strong risk-based capital, or RBC ratio, remains a
priority for us. We had conveyed that our goal was to end 2011 with
an RBC ratio in the range of 400% to 500% with a target of 450%.
Although we have not yet finalized our statutory financial
statements, we estimate our 2011 RBC ratio will be between 480% and
520%. Additionally, we are comfortable with our solvency margin
ratio and continue to apply rigorous stress testing under extreme
scenarios.
"As we look ahead to 2012 sales opportunities in the United States, we expect Aflac U.S. sales
to increase 3% to 8%. Following Aflac Japan's outstanding sales
growth of 18.6% last year, I think it's reasonable to expect Aflac
Japan sales will decrease within the range of down 2% to down 5%
for the year.
"Looking ahead, I want to reiterate that our objective for 2012
is to increase operating earnings per diluted share 2% to 5% on a
currency neutral basis. This range reflects the impact of portfolio
derisking and investing significant cash flows at low interest
rates. We expect the rate of earnings growth in 2013 to
improve over 2012."
ABOUT AFLAC
When a policyholder gets sick or hurt, Aflac pays cash benefits
fast. For more than 55 years, Aflac insurance policies have given
policyholders the opportunity to focus on recovery, not financial
stress. In the United States,
Aflac is the number one provider of guaranteed-renewable insurance.
In Japan, Aflac is the number one
life insurance company in terms of individual policies in force.
Aflac insurance products provide protection to more than 50 million
people worldwide. For five consecutive years, Aflac has been
recognized by Ethisphere magazine as one of the World's Most
Ethical Companies and by Forbes magazine as one of America's
Best-Managed Companies in the Insurance category. In 2012,
Fortune magazine recognized Aflac as one of the 100 Best
Companies to Work For in America for the fourteenth consecutive
year. Also, Fortune magazine included Aflac on its list of
Most Admired Companies for the tenth time in 2011. Aflac
Incorporated is a Fortune 500 company listed on the New York Stock
Exchange under the symbol AFL. To find out more about Aflac, visit
aflac.com or espanol.aflac.com.
A copy of Aflac's Financial Analysts Briefing (FAB) supplement
for the fourth quarter of 2011 can be found on the "Investors" page
at aflac.com, as well as a complete listing of Aflac's investment
holdings in the financial sector along with separate listings of
the company's sovereign and financial investments in both perpetual
and peripheral Eurozone securities.
Aflac Incorporated will webcast its fourth quarter conference
call via the "Investors" page of aflac.com at 9:00 a.m. (EST) on Wednesday, February 1, 2012.
|
|
AFLAC
INCORPORATED AND SUBSIDIARIES CONDENSED INCOME
STATEMENT
|
|
(UNAUDITED –
IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED DECEMBER
31,
|
|
2011
|
|
|
2010
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
$
|
5,979
|
|
$
|
5,294
|
|
12.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and claims
|
|
3,700
|
|
|
3,263
|
|
13.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and operating
expenses
|
|
1,445
|
|
|
1,364
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income
taxes
|
|
834
|
|
|
667
|
|
24.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
288
|
|
|
230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
$
|
546
|
|
$
|
437
|
|
24.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share –
basic
|
$
|
1.17
|
|
$
|
.93
|
|
25.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share –
diluted
|
|
1.17
|
|
|
.92
|
|
27.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to compute earnings
per share (000):
|
|
|
|
|
|
|
|
|
|
|
Basic
|
465,559
|
|
469,506
|
|
(.8)
|
%
|
|
|
Diluted
|
467,734
|
|
473,758
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
.33
|
|
$
|
.30
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFLAC
INCORPORATED AND SUBSIDIARIES CONDENSED INCOME
STATEMENT
|
|
(UNAUDITED –
IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS ENDED DECEMBER
31,
|
|
2011
|
|
|
2010
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
$
|
22,171
|
|
$
|
20,732
|
|
6.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and claims
|
|
13,749
|
|
|
12,106
|
|
13.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and operating
expenses
|
|
5,430
|
|
|
5,041
|
|
7.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income
taxes
|
|
2,992
|
|
|
3,585
|
|
(16.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
1,028
|
|
|
1,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
$
|
1,964
|
|
$
|
2,344
|
|
(16.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share –
basic
|
$
|
4.21
|
|
$
|
5.00
|
|
(15.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per share –
diluted
|
|
4.18
|
|
|
4.95
|
|
(15.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to compute earnings
per share (000):
|
|
|
|
|
|
|
|
|
|
|
Basic
|
466,519
|
|
469,038
|
|
(.5)
|
%
|
|
|
Diluted
|
469,370
|
|
473,085
|
|
(.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
1.23
|
|
$
|
1.14
|
|
7.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFLAC
INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE
SHEET
|
|
(UNAUDITED –
IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
DECEMBER 31,
|
|
2011
|
|
|
2010
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments and
cash
|
$
|
103,462
|
|
$
|
88,230
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Deferred policy acquisition
costs
|
|
10,654
|
|
|
9,734
|
|
9.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
2,986
|
|
|
3,075
|
|
(2.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
117,102
|
|
$
|
101,039
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy liabilities
|
$
|
94,593
|
|
$
|
82,456
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable
|
|
3,285
|
|
|
3,038
|
|
8.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
5,718
|
|
|
4,489
|
|
27.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
13,506
|
|
|
11,056
|
|
22.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
117,102
|
|
$
|
101,039
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of
period (000)
|
|
466,310
|
|
|
469,661
|
|
(.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING
EARNINGS TO NET EARNINGS
|
|
(UNAUDITED –
IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED DECEMBER
31,
|
|
2011
|
|
|
2010
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
|
$
|
691
|
|
$
|
628
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items, net of
tax:
|
|
|
|
|
|
|
|
|
|
Realized investment gains
(losses):
|
|
|
|
|
|
|
|
|
|
Securities
transactions and impairments
|
|
(168)
|
|
|
(235)
|
|
|
|
|
Impact of
derivative and hedging activities
|
|
23
|
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
$
|
546
|
|
$
|
437
|
|
24.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings per diluted
share
|
$
|
1.48
|
|
$
|
1.33
|
|
11.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items, net of
tax:
|
|
|
|
|
|
|
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
|
Securities
transactions and impairments
|
|
(.36)
|
|
|
(.51)
|
|
|
|
|
Impact of
derivative and hedging activities
|
|
.05
|
|
|
.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per diluted
share
|
$
|
1.17
|
|
$
|
.92
|
|
27.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING
EARNINGS TO NET EARNINGS
|
|
(UNAUDITED –
IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS ENDED DECEMBER
31,
|
|
2011
|
|
|
2010
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
|
$
|
2,973
|
|
$
|
2,618
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items, net of
tax:
|
|
|
|
|
|
|
|
|
|
Realized investment gains
(losses):
|
|
|
|
|
|
|
|
|
|
Securities
transactions and impairments
|
|
(850)
|
|
|
(273)
|
|
|
|
|
Impact of
derivative and hedging activities
|
|
(159)
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
$
|
1,964
|
|
$
|
2,344
|
|
(16.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings per diluted
share
|
$
|
6.33
|
|
$
|
5.53
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items, net of
tax:
|
|
|
|
|
|
|
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
|
Securities
transactions and impairments
|
|
(1.81)
|
|
|
(.58)
|
|
|
|
|
Impact of
derivative and hedging activities
|
|
(.34)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per diluted
share
|
$
|
4.18
|
|
$
|
4.95
|
|
(15.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF
FOREIGN CURRENCY ON OPERATING RESULTS(1)
|
|
(SELECTED
PERCENTAGE CHANGES, UNAUDITED)
|
|
|
|
|
|
THREE MONTHS
ENDED DECEMBER 31, 2011
|
Including
Currency
Changes
|
Excluding
Currency
Changes(2)
|
|
|
|
|
|
Premium income
|
11.3
|
%
|
5.2
|
%
|
|
|
|
|
|
|
|
Net investment
income
|
8.9
|
|
4.7
|
|
|
|
|
|
|
|
|
Total benefits and
expenses
|
11.2
|
|
5.1
|
|
|
|
|
|
|
|
|
Operating
earnings
|
10.0
|
|
5.9
|
|
|
|
|
|
|
|
|
Operating earnings per
diluted share
|
11.3
|
|
6.8
|
|
|
|
|
(1) The numbers in this table
are presented on an operating basis, as previously
described.
|
|
(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.
|
|
|
|
EFFECT OF
FOREIGN CURRENCY ON OPERATING RESULTS(1)
|
|
(SELECTED
PERCENTAGE CHANGES, UNAUDITED)
|
|
|
|
|
|
TWELVE
MONTHS ENDED DECEMBER 31, 2011
|
Including
Currency
Changes
|
Excluding
Currency
Changes(2)
|
|
|
|
|
|
Premium income
|
12.7
|
%
|
4.8
|
%
|
|
|
|
|
|
|
|
Net investment
income
|
9.1
|
|
3.7
|
|
|
|
|
|
|
|
|
Total benefits and
expenses
|
11.9
|
|
4.2
|
|
|
|
|
|
|
|
|
Operating
earnings
|
13.6
|
|
7.1
|
|
|
|
|
|
|
|
|
Operating earnings per
diluted share
|
14.5
|
|
8.0
|
|
|
|
|
(1) The numbers in this table
are presented on an operating basis, as previously
described.
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
2012
OPERATING EARNINGS PER SHARE SCENARIOS
|
|
|
|
Average
Exchange
Rate
|
|
Annual
Operating
EPS
|
|
%
Growth
Over 2011
|
Yen
Impact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70
|
|
$
|
7.02
|
-
|
7.21
|
|
10.9
|
-
|
13.9%
|
$
|
.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75
|
|
|
6.71
|
-
|
6.90
|
|
6.0
|
-
|
9.0
|
|
.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
79.73*
|
|
|
6.46
|
-
|
6.65
|
|
2.1
|
-
|
5.1
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80
|
|
|
6.45
|
-
|
6.64
|
|
1.9
|
-
|
4.9
|
(.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85
|
|
|
6.21
|
-
|
6.41
|
|
(1.9)
|
-
|
1.1
|
(.25)
|
|
*Actual 2011 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 document 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" 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 generally;
governmental actions for the purpose of stabilizing the financial
markets; defaults and credit downgrades of securities in our
investment portfolio; impairment of financial institutions; credit
and other risks associated with Aflac's investment in perpetual
securities; differing judgments applied to investment valuations;
subjective determinations of amount of impairments taken on our
investments; realization of unrealized losses; limited availability
of acceptable yen-denominated investments; concentration of our
investments in any particular sector or issuer; concentration of
business in Japan; ongoing changes
in our industry; exposure to significant financial and capital
markets risk; fluctuations in foreign currency exchange rates;
significant changes in investment yield rates; deviations in actual
experience from pricing and reserving assumptions; subsidiaries'
ability to pay dividends to the Parent Company; changes in law or
regulation by governmental authorities; ability to attract and
retain qualified sales associates and employees; ability to
continue to develop and implement improvements in information
technology systems; changes in U.S. and/or Japanese accounting
standards; decreases in our financial strength or debt ratings;
level and outcome of litigation; ability to effectively manage key
executive succession; catastrophic events including, but not
necessarily limited to, tornadoes, hurricanes, earthquakes,
tsunamis, and radiological disasters; and failure of internal
controls or corporate governance policies and procedures.
(Logo:
http://photos.prnewswire.com/prnh/20100423/CL92305LOGO)
Analyst and investor contact – Robin Y.
Wilkey, 706.596.3264 or 800.235.2667, FAX: 706.324.6330 or
rwilkey@aflac.com
Media contact – Laura Kane,
706.596.3493, FAX: 706.320.2288, or lkane@aflac.com
SOURCE Aflac Incorporated