Stock Monitor: Assurant Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 14, 2018 / Active-Investors.com has just released a free earnings report on Aflac Inc. (NYSE: AFL). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AFL. Aflac reported its fourth quarter and fiscal 2017 operating and financial results on January 31, 2018. The insurer reported better than expected revenue and earnings results. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Aflac most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For Q4 2017, Aflac's total revenues were $5.4 billion compared to $6.0 billion in Q4 2016. The Company's revenue numbers topped analysts' estimates by $90 million.
For the full year (FY) 2017, Aflac's total revenues fell 4.0% to $21.7 billion compared to $22.6 billion for FY16.
During Q4 2017, Aflac's net earnings were $2.4 billion, or $5.95 per diluted share, compared to $751 million, or $1.84 per diluted share, in Q4 2016. The Company's net earnings in the reported quarter included pretax net realized investment gains of $0.15 per diluted share compared to pretax net gains of $0.94 per diluted share in the prior year's same quarter. Aflac's Pretax net realized losses from securities transactions and impairments amounted to $42 million for Q4 2017, while Pretax net realized investment gains from certain derivative and foreign currency activities were $100 million. Aflac's net earnings also included a pretax charge of $18 million in the reported quarter, reflecting Japan branch conversion costs and a $13 million pretax charge from the early extinguishment of debt. Additionally, net earnings in Q4 2017 reflected a tax reform adjustment benefit of $1.7 billion, or $4.30 per diluted share.
Aflac's operating earnings in Q4 2017 were $633 million, or $1.60 per share, compared to $589 million, or $1.44 per share, in Q4 2016. The weaker yen/dollar exchange rate decreased operating earnings per diluted share by $0.03 for the reported quarter. Excluding the impact of the weaker yen, operating earnings per diluted share increased 13.2% to $1.63. Aflac's earnings beat Wall Street's estimates of $1.55 per share.
For FY17, Aflac's net earnings were $4.4 billion, or $10.96 per diluted share, compared to $2.7 billion, or $6.42 per diluted share, for FY16, primarily reflecting the impact of tax reform. The Company's operating earnings for FY17 were $2.7 billion, or $6.81 per diluted share, compared to $2.7 billion, or $6.50 per diluted share, in FY16.
Segment Performance
AFLAC JAPAN - In yen terms, Aflac Japan's premium income, net of reinsurance, decreased 3.3% to ¥354.2 billion in Q4 2017. Net investment income, grew 2.4% to ¥63.5 billion primarily due to the foreign currency impact of US dollar-denominated investments. The segment's total revenues were down 2.5% to ¥418.8 billion in the reported quarter. Pretax operating earnings in yen for Q4 2017 advanced 8.8% on a reported basis and 7.5% on a currency-neutral basis. The pretax operating profit margin for the Japan segment was 20.2%, compared to 18.1% in the prior year's same quarter.
In US dollar terms, Aflac Japan's Premium income, net of reinsurance, decreased 6.7% to $3.1 billion in Q4 2017. The Company's net investment income, net of amortized hedge costs, decreased 1.1% to $559 million. Total revenues declined by 5.9% to $3.7 billion, while pretax operating earnings increased 5.1% to $747 million.
During Q4 2017, Aflac Japan's total new annualized premium sales decreased 8.3% to ¥23.6 billion, or $209 million. Third sector sales, which include cancer, medical and income support products, increased 1.3% to ¥22.0 billion in the reported quarter. Total first sector sales, which include products such as WAYS and child endowment, were down 59.4% in Q4 2017, reflecting the Company's actions to reduce the sale of first sector savings products that are more interest-sensitive.
AFLAC US - During Q4 2017, Aflac US premium income increased 2.2% to $1.4 billion and net investment income gained 2.8% to $182 million. The segment's total revenues increased 2.1% to $1.6 billion. Pretax operating earnings in the reported quarter were $288 million, an increase of 9.9%, primarily reflecting a lower y-o-y expense ratio. The pretax operating profit margin for the US segment was 18.3% compared to 17.0% in Q4 2017. Aflac US total new annualized premium sales increased 6.7% to $515 million in the reported quarter.
Cash Matters
Aflac's total investments and cash at the end of December 2017 were $123.7 billion compared to $116.4 billion at December 31, 2016.
During Q4 2017, Aflac repurchased $331 million or 3.9 million of its common shares. For FY17, the Company purchased $1.35 billion or 17.8 million of its common shares. At the end of December 2017, Aflac had 49.0 million shares available for purchase under its share repurchase authorizations. The Company's annualized return on average shareholders' equity in Q4 2017 was 40.6% or 11.7% excluding the tax reform adjustment of $1.7 billion.
Outlook
For Aflac US, the Company is forecasting FY18 growth in earned premium to be around 2% to 3% and new annualized premium sales growth of 3% to 5%. The Company is expecting Aflac Japan third sector earned premium to maintain steady growth in the 2% to 3% range.
For FY18, Aflac is projecting stable operating earnings per diluted share of $7.45 to $7.7, assuming the 2017 weighted-average exchange rate of 112.16 yen to the dollar. The Company is estimating share repurchase to be in the range of $1.1 billion to $1.4 billion in 2018.
Stock Performance Snapshot
February 13, 2018 - At Tuesday's closing bell, Aflac's stock advanced 1.10%, ending the trading session at $86.07.
Volume traded for the day: 1.74 million shares.
Stock performance in the last month — up 1.33%; previous three-month period — up 3.15%; past six-month period — up 5.93%; and previous twelve-month period — up 21.26%
After yesterday's close, Aflac's market cap was at $33.95 billion.
Price to Earnings (P/E) ratio was at 7.82.
The stock has a dividend yield of 2.42%.
The stock is part of the Financial sector, categorized under the Accident & Health Insurance industry. This sector was up 0.2% at the end of the session.
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