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AFLAC CEO On Q4 Earnings And Impact Of Weakening Yen


AFLAC Incorporated (NYSE: AFL) came out with mixed fourth-quarter earnings on Tuesday. The EPS was up to $1.57, compared to $1.45 in the same quarter last year. However, revenue was down 4.9 percent to $5.5 billion, compared to fourth-quarter of last year, on back of weakness in yen to U.S. dollar exchange rate.

Daniel Amos, Aflac chairman and CEO, was on CNBC recently to discuss the company’s earnings and its exposure to yen.

Related Link: Currency Trends Dictate International ETF Stock Exposure

'Stellar Performance' For Q4

“Well, we had a stellar performance in the fourth-quarter; our sales in Japan were up 28 percent,” Amos said.

“It was driven by two things: we introduced a new cancer policy over there, which increased our sales almost a 120 percent for the quarter; and it was driven off Japan Post, which as you know is about the largest insurance company or distribution system in the world today.”

He continued, “That along with our existing sales force, who had a very good quarter too. So, people are talking about the economy, but people still need insurance in Japan and we're helping filling the voids that are out there in the healthcare system. So, we are very excited about what happened in fourth-quarter.”

Related Link: JPMorgan Booking Profits ON U.S. Dollar, But Bullish Over Medium-Term

How Long Is Currency Going To Be A Headwind For You?

“Well, we have always given our earnings guidance based on excluding the yen,” Amos replied. “When times were good in terms of the yen strengthening, it helped us, but we excluded it, because we bring all of our money in yen, we pay all of our claims in yen and then its only when we bring it back across to the United States are reported that that actually makes that much difference.”

“The yen has been weaker, but remember, over half of our profits come from dollar denominated securities, because a lot of our portfolio in Japan is dollar denominated.”

Posted-In: CNBC Daniel Amos yenMedia


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