COLUMBUS, Ga., July 28, 2015 /PRNewswire/ -- Aflac
Incorporated (NYSE: AFL) today reported its second quarter
results.
Reflecting the weaker yen/dollar exchange rate, total revenues
decreased 9.4% to $5.3 billion during
the second quarter of 2015, compared with $5.8 billion in the second quarter of 2014. Net
earnings were $573 million, or
$1.32 per diluted share, compared
with $810 million, or $1.78 per share, a year ago.
Net earnings in the second quarter of 2015 included after-tax
net realized investment gains of $68
million, or $.16 per diluted
share, compared with net after-tax gains of $60 million, or $.13 per diluted share, a year ago. After-tax
realized investment gains net of losses from securities
transactions in the quarter were $60
million, or $.14 per diluted
share. Hedging costs related to certain dollar investments of Aflac
Japan on an after-tax basis, were $12
million in the quarter, or $.03 per diluted share. Realized after-tax net
investment gains from other derivative and hedging activities in
the quarter were $20 million, or
$.05 per diluted share. In
addition, net earnings included an after-tax loss of $146 million, or $.34 per diluted share, from other and
nonrecurring items primarily related to the early extinguishment of
debt disclosed in the first quarter.
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, inclusive of interest cash flows associated with notes
payable, but before realized investment gains and losses from
securities transactions, impairments, and derivative and hedging
activities, as well as other and nonrecurring items. Aflac's
derivative activities are primarily used to hedge foreign exchange
and interest rate risk in the company's investment portfolio as
well as manage foreign exchange risk in certain notes payable and
forecasted cash flows denominated in yen. 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 other and nonrecurring items, tend to be driven by
general economic conditions and events or related to infrequent
activities not directly associated with the company's insurance
operations, 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 certain
transactions such as profit repatriation and the Aflac Japan dollar
investment program, the company does not actually convert yen into
dollars. As a result, Aflac views foreign currency translation as a
financial reporting issue rather than 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.
The average yen/dollar exchange rate in the second quarter of
2015 was 121.20, or 15.7% weaker than the average rate of 102.15 in
the second quarter of 2014. For the first six months, the average
exchange rate was 120.14, or 14.7% weaker than the rate of 102.42 a
year ago. Aflac Japan's growth rates in dollar terms for the second
quarter and first six months were suppressed as a result of the
weaker yen/dollar exchange rate.
Operating earnings in the second quarter were $651 million, compared with $757 million in the second quarter of 2014.
Operating earnings per diluted share in the quarter decreased by
9.6% from a year ago to $1.50.
Operating earnings included a charge of $10.5 million, or $.02 per diluted share, reflecting the write-off
of certain software development costs related to modernization
activities at Aflac Japan. The weaker yen/dollar exchange rate
decreased operating earnings per diluted share by $.14 for the second quarter. Excluding the impact
from the weaker yen, operating earnings per diluted share decreased
1.2%.
Results for the first six months of 2015 were also suppressed by
the weaker yen. Total revenues were down 8.4% to $10.5 billion, compared with $11.5 billion in the first half of 2014. Net
earnings were $1.2 billion, or
$2.83 per diluted share, compared
with $1.5 billion, or $3.38 per diluted share, for the first six months
of 2014. Operating earnings for the first half of 2015 were
$1.3 billion, or $3.04 per diluted share, compared with
$1.5 billion, or $3.36 per diluted share, in 2014. Excluding the
negative impact of $.27 per share
from the weaker yen, operating earnings per diluted share decreased
1.5% for the first six months of 2015.
Total investments and cash at the end of June 2015 were $103.3
billion, compared with $108.7
billion at March 31, 2015.
In the second quarter, Aflac repurchased $233 million, or 3.7 million shares, of its
common stock. For the first half of the year, the company
purchased $833 million, or 13.5
million of its shares. At the end of June, the company had 16.0
million shares available for purchase under its share repurchase
authorizations.
Shareholders' equity was $17.0
billion, or $39.52 per share,
at June 30, 2015, compared with
$18.6 billion, or $42.97 per share, at March
31, 2015. Shareholders' equity at the end of the second
quarter included a net unrealized gain on investment securities and
derivatives of $3.4 billion, compared
with a net unrealized gain of $5.0
billion at the end of March
2015. The annualized return on average shareholders' equity
in the second quarter was 12.9%. On an operating basis (excluding
total net realized investment gains/losses in net earnings,
unrealized investment gains/losses, and derivative gains/losses in
shareholders' equity), the annualized return on average
shareholders' equity was 19.1% for the second quarter of 2015, or
23.1%, excluding the impact of the yen.
AFLAC JAPAN
In yen terms, Aflac Japan's premium income declined 1.2% in the
second quarter. Net investment income increased 5.7%. Investment
income growth was magnified by the weaker yen/dollar exchange rate
because approximately 49% of Aflac Japan's second quarter
investment income was dollar-denominated, compared with 46% a year
ago. Total revenues were flat in the second quarter. The pretax
operating profit margin decreased in the second quarter to 21.1%
from 21.7% in the prior year. Pretax operating earnings in yen
decreased 3.1% on a reported basis and decreased 8.9% on a
currency-neutral basis. For the first half of the year,
premium income in yen decreased .5%, and net investment income rose
6.5%. Total revenues in yen were up .6%, and pretax
operating earnings fell .6%.
Aflac Japan's growth rates in dollar terms for the second
quarter were suppressed as a result of the significantly weaker
yen/dollar exchange rate. Premium income decreased 16.8% to
$3.0 billion in the second quarter.
Net investment income was down 11.0% to $605
million. Total revenues decreased 15.8% to $3.6 billion. Pretax operating earnings declined
18.4% to $757 million. For the first
six months, premium income was $6.1
billion, or 15.2% lower than a year ago. Net investment
income decreased 9.3% to $1.2
billion. Total revenues were down 14.2% to $7.3 billion. Pretax operating earnings were
$1.6 billion, or 15.3% lower than a
year ago.
In the second quarter, total new annualized premium sales
increased 9.4% to ¥30.6 billion, or $252
million. Third sector sales, which include cancer and
medical products, increased 25.2% in the quarter. Total first
sector sales, which include products such as WAYS and child
endowment, decreased 11.8% in the quarter.
For the first six months of the year, new annualized premium
sales were up 3.7% to ¥57.6 billion, or $478
million. Third sector sales increased 23.3% in the first
half of the year.
AFLAC U.S.
Aflac U.S. premium income increased 1.6% to $1.3 billion in the second quarter. Net
investment income was up 4.0% to $168
million. Total revenues increased 1.9% to $1.5 billion. The pretax operating profit margin
was 19.5%, compared with 20.3% a year ago. Pretax operating
earnings were $293 million, a
decrease of 2.0% for the quarter. For the first six months, total
revenues were up 2.8% to $3.0 billion
and premium income rose 2.5% to $2.7
billion. Net investment income increased 3.7% to
$334 million. Pretax operating
earnings were $578 million, 4.1%
lower than a year ago.
Aflac U.S. total new annualized premium sales increased 3.1% in
the quarter to $344 million. For the
first half of the year, total new sales were up 1.4% to
$660 million.
DIVIDEND
The board of directors declared the third quarter cash dividend.
The third quarter dividend of $.39
per share is payable on September 1,
2015, to shareholders of record at the close of business on
August 19, 2015.
OUTLOOK
Commenting on the company's second quarter results, Chairman and
Chief Executive Officer Daniel P.
Amos stated: "I am pleased that our second quarter results
in both Japan and the United States reflected solid performance
and advanced our progress toward achieving the company's annual
objectives. Aflac Japan's third sector sales results exceeded our
expectations, with strong production across all channels. The new
medical product we rolled out last month has been well-received by
consumers and our sales outlets. We believe that the enhanced
benefits of our medical product make it very competitive. Keep in
mind, we still face difficult sales comparisons in the fourth
quarter. However, given the strong sales growth in the first half
of the year and our expectation for production in the second half,
we anticipate that sales of our cancer and medical products will
increase in the range of 7% to 10% for the full year. This is much
stronger than our original expectation.
"From a financial perspective, Aflac U.S. also performed better
than we expected in the second quarter. Additionally, second
quarter sales increased by 3.1%, which was an improvement compared
to first quarter. I remain very encouraged that the changes we made
in our management infrastructure last year are establishing a
strong foundation for bigger and better opportunities for long-term
sales growth. We continue to receive outstanding feedback from
policyholders and sales agents alike on One Day PaySM,
which is our industry-leading claims practice that allows us to
process, approve and pay eligible claims in just one day. While we
concentrate on developing new products and tools to further empower
our career agents for success, we also believe our compelling brand
and popular products will serve to increase our presence with
brokers in the mid- and large-case markets. We're making progress
in building out a pipeline of business through brokers, and we
remain focused on initiatives aimed at strengthening and building
our business. As our production through brokers and larger
employers grows, sales will be increasingly driven toward the
fourth quarter, which will somewhat magnify the seasonal pattern of
our sales. We continue to concentrate our efforts on increasing
Aflac U.S. sales 3% to 7% for the year.
"We remain committed to maintaining strong capital ratios on
behalf of our policyholders. We continue to believe our capital
strength puts us in an excellent position to repatriate
approximately ¥200 billion to the United
States for the calendar year 2015, which reinforces our plan
to repurchase $1.3 billion of our
common stock in 2015. As we said at our financial analysts briefing
in May, we believe that over the next few years, we'll be able to
increase the capital available for deployment.
"With the first half of the year complete, I am pleased with the
company's results. Those results, combined with our outlook for the
remainder of 2015, well-position us for another year of solid
financial performance. These results have also given us the
confidence to upwardly revise our target for 2015 operating
earnings per diluted share to now be in the range of 4% to 7% on a
currency neutral basis.
If the yen averages 120 to 125 to the dollar for the third
quarter, we would expect earnings in the third quarter to be
approximately $1.40 to $1.53 per
diluted share. Using that same exchange rate assumption for the
remainder of 2015, we would expect full-year reported operating
earnings to be about $5.88 to $6.17
per diluted share. As always, we are working very hard to achieve
our earnings-per-share objective while also delivering on our
promise to policyholders."
ABOUT AFLAC
When a policyholder gets sick or hurt, Aflac pays cash benefits
fast. For nearly 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 work
site. 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 nine
consecutive years, Aflac has been recognized by Ethisphere magazine
as one of the World's Most Ethical Companies. In 2015, Fortune
magazine recognized Aflac as one of the 100 Best Companies to Work
For in America for the 17th consecutive year. Also, in 2015,
Fortune magazine included Aflac on its list of Most Admired
Companies for the 14th time, ranking the company No. 1 in
innovation for the insurance, life and health category. 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 Pay℠, 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 Wednesday, July 29, 2015.
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED INCOME STATEMENT
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
JUNE 30,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
5,287
|
|
$
|
5,838
|
|
(9.4)
|
%
|
|
|
|
|
|
|
|
|
|
Benefits and
claims
|
|
2,937
|
|
|
3,293
|
|
(10.8)
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and
operating expenses
|
|
1,476
|
|
|
1,307
|
|
13.0
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
874
|
|
|
1,238
|
|
(29.4)
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
301
|
|
|
428
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
573
|
|
$
|
810
|
|
(29.3)
|
%
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – basic
|
$
|
1.33
|
|
$
|
1.79
|
|
(25.7)
|
%
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – diluted
|
|
1.32
|
|
|
1.78
|
|
(25.8)
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute earnings per share (000):
|
|
|
|
|
|
|
|
|
|
Basic
|
431,672
|
|
452,559
|
|
(4.6)
|
%
|
|
Diluted
|
434,257
|
|
455,380
|
|
(4.6)
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
.39
|
|
$
|
.37
|
|
5.4
|
%
|
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED INCOME STATEMENT
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
SIX MONTHS ENDED
JUNE 30,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
10,513
|
|
$
|
11,478
|
|
(8.4)%
|
|
|
|
|
|
|
|
|
|
|
Benefits and
claims
|
|
5,889
|
|
|
6,513
|
|
(9.6)
|
|
|
|
|
|
|
|
|
|
|
Total acquisition and
operating expenses
|
|
2,737
|
|
|
2,623
|
|
4.4
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
1,887
|
|
|
2,342
|
|
(19.4)
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
651
|
|
|
800
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
1,236
|
|
$
|
1,542
|
|
(19.9)%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – basic
|
$
|
2.84
|
|
$
|
3.40
|
|
(16.5)%
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share – diluted
|
|
2.83
|
|
|
3.38
|
|
(16.3)
|
|
|
|
|
|
|
|
|
|
|
Shares used to
compute earnings per share (000):
|
|
|
|
|
|
|
|
|
|
Basic
|
434,473
|
|
453,639
|
|
(4.2)%
|
|
|
Diluted
|
437,077
|
|
456,534
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
Dividends paid per
share
|
$
|
.78
|
|
$
|
.74
|
|
5.4
|
%
|
AFLAC INCORPORATED
AND SUBSIDIARIES CONDENSED BALANCE SHEET
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
JUNE
30,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments and
cash
|
$
|
103,280
|
|
$
|
114,734
|
|
(10.0)%
|
|
|
|
|
|
|
|
|
|
|
Deferred policy
acquisition costs
|
|
8,278
|
|
|
9,117
|
|
(9.2)
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
4,023
|
|
|
4,020
|
|
–
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
115,581
|
|
$
|
127,871
|
|
(9.6)%
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Policy
liabilities
|
$
|
84,581
|
|
$
|
95,424
|
|
(11.4)%
|
|
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
5,425
|
|
|
4,925
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
8,557
|
|
|
9,964
|
|
(14.1)
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
17,018
|
|
|
17,558
|
|
(3.1)
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
115,581
|
|
$
|
127,871
|
|
(9.6)%
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period (000)
|
|
430,617
|
|
|
452,950
|
|
(4.9)%
|
|
|
RECONCILIATION OF
OPERATING EARNINGS TO NET EARNINGS
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED JUNE 30,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
651
|
|
$
|
757
|
|
(14.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
60
|
|
|
45
|
|
|
|
|
Hedge costs
related to
foreign
|
|
|
|
|
|
|
|
|
|
currency investments
|
|
(12)
|
|
|
(16)
|
|
|
|
|
Impact of other
derivative/hedging activities
|
|
20
|
|
|
31
|
|
|
|
|
Other and non-recurring income (loss)
|
|
(146)
|
|
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
573
|
|
$
|
810
|
|
(29.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
$
|
1.50
|
|
$
|
1.66
|
|
(9.6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
Realized investment gains
(losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
.14
|
|
|
.10
|
|
|
|
|
Hedge
costs related to
foreign
|
|
|
|
|
|
|
|
|
|
currency
investments
|
|
(.03)
|
|
|
(.04)
|
|
|
|
|
Impact of other derivative/hedging
activities
|
|
.05
|
|
|
.07
|
|
|
|
|
Other and
non-recurring income (loss)
|
|
(.34)
|
|
|
(.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
$
|
1.32
|
|
$
|
1.78
|
|
(25.8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
OPERATING EARNINGS TO NET EARNINGS
|
(UNAUDITED – IN
MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
SIX MONTHS
ENDED JUNE 30,
|
|
2015
|
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
$
|
1,329
|
|
$
|
1,531
|
|
(13.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
Realized investment
gains (losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
100
|
|
|
70
|
|
|
|
|
Hedge costs
related to
foreign
|
|
|
|
|
|
|
|
|
|
currency investments
|
|
(21)
|
|
|
(22)
|
|
|
|
|
Impact of other
derivative/hedging activities
|
|
(14)
|
|
|
(24)
|
|
|
|
|
Other and non-recurring income (loss)
|
|
(158)
|
|
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
1,236
|
|
$
|
1,542
|
|
(19.9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
$
|
3.04
|
|
$
|
3.36
|
|
(9.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
Realized investment gains
(losses):
|
|
|
|
|
|
|
|
|
|
Securities transactions and
impairments
|
|
.23
|
|
|
.15
|
|
|
|
|
Hedge
costs related to
foreign
|
|
|
|
|
|
|
|
|
|
currency
investments
|
|
(.05)
|
|
|
(.05)
|
|
|
|
|
Impact of other derivative/hedging activities
|
|
(.03)
|
|
|
(.05)
|
|
|
|
|
Other and
non-recurring income (loss)
|
|
(.36)
|
|
|
(.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted share
|
$
|
2.83
|
|
$
|
3.38
|
|
(16.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF FOREIGN
CURRENCY ON OPERATING RESULTS1
(SELECTED PERCENTAGE
CHANGES, UNAUDITED)
|
|
|
|
THREE MONTHS ENDED
JUNE 30, 2015
|
Including
Currency
Changes
|
Excluding
Currency
Changes2
|
|
|
|
Premium
income
|
(10.7)%
|
|
.9
|
%
|
|
|
|
|
|
Net investment
income
|
(8.0)
|
|
(1.2)
|
|
|
|
|
|
|
Total benefits and
expenses
|
(9.1)
|
|
2.7
|
|
|
|
|
|
|
Operating
earnings
|
(14.1)
|
|
(6.3)
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
(9.6)
|
|
(1.2)
|
|
|
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 RESULTS1
(SELECTED PERCENTAGE
CHANGES, UNAUDITED)
|
|
|
|
SIX MONTHS ENDED
JUNE 30, 2015
|
Including
Currency
Changes
|
Excluding
Currency
Changes2
|
|
|
|
Premium
income
|
(9.7)%
|
|
1.2
|
%
|
|
|
|
|
|
Net investment
income
|
(6.7)
|
|
(.2)
|
|
|
|
|
|
|
Total benefits and
expenses
|
(8.1)
|
|
2.9
|
|
|
|
|
|
|
Operating
earnings
|
(13.3)
|
|
(5.6)
|
|
|
|
|
|
|
Operating earnings
per diluted share
|
(9.5)
|
|
(1.5)
|
|
|
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.
|
2015 OPERATING
EARNINGS PER SHARE SCENARIOS
|
|
Average
Exchange
Rate
|
|
Annual
Operating
EPS
|
|
% Growth
Over 2014
|
|
Yen
Impact
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100
|
|
$
|
6.47
|
-
|
6.77
|
|
5.0
|
-
|
9.9%
|
|
$ .18
|
|
|
|
|
|
|
|
|
|
|
|
|
105.46*
|
|
|
6.29
|
-
|
6.59
|
|
2.1
|
-
|
7.0
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
115
|
|
|
6.01
|
-
|
6.31
|
|
(2.4)
|
-
|
2.4
|
|
(.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
125
135
|
|
|
5.77
5.56
|
-
-
|
6.07
5.86
|
|
(6.3)
(9.7)
|
-
-
|
(1.5)
(4.9)
|
|
(.52)
(.73)
|
|
|
|
|
|
|
|
|
|
|
|
|
*Actual 2014
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; governmental
actions for the purpose of stabilizing the financial markets;
defaults and credit downgrades of securities in our investment
portfolio; exposure to significant financial and capital markets
risk; fluctuations in foreign currency exchange rates; significant
changes in investment yield rates; credit and other risks
associated with Aflac's investment in perpetual securities;
differing judgments applied to investment valuations; significant
valuation judgments in determination of amount of impairments taken
on our investments; limited availability of acceptable
yen-denominated investments; concentration of our investments in
any particular single-issuer or sector; concentration of business
in Japan; decline in
creditworthiness of other financial institutions; deviations in
actual experience from pricing and reserving assumptions;
subsidiaries' ability to pay dividends to Aflac Incorporated;
ineffective risk management policies and procedures; changes in law
or regulation by governmental authorities; ability to attract and
retain qualified sales associates and employees; decreases in our
financial strength or debt ratings; ability to continue to develop
and implement improvements in information technology systems;
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; changes in U.S. and/or Japanese accounting standards;
failure to comply with restrictions on patient privacy and
information security; level and outcome of litigation; ability to
effectively manage key executive succession; catastrophic events
including, but not necessarily limited to, epidemics, pandemics,
tornadoes, hurricanes, earthquakes, tsunamis, acts of terrorism and
damage incidental to such events; ongoing changes in our industry;
events that damage our reputation; increased expenses for pension
and other postretirement plans; and failure of internal controls or
corporate governance policies and procedures.
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Analyst and investor contact – Robin Y.
Wilkey, 706.596.3264 or 800.235.2667; FAX: 706.324.6330 or
rwilkey@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-second-quarter-results-declares-third-quarter-cash-dividend-upwardly-revises-2015-operating-eps-target-to-4-to-7-aflac-japan-third-sector-sales-up-25-300120066.html
SOURCE Aflac Incorporated