AFLAC Inc. AFL filed Quarterly Report for the period ended 2009-03-31.
AFLAC Inc. is a general business holding company and acts as a management company overseeing the operations of its subsidiaries by providing management services and making capital available. Its primary business is supplemental health and life insurance which is marketed and administered primarily through its subsidiary American Family Life Assurance Company of Columbus. AFLAC Inc. has a market cap of $17.6 billion; its shares were traded at around $37.66 with a P/E ratio of 8.8 and P/S ratio of 1.1. The dividend yield of AFLAC Inc. stocks is 2.9%. AFLAC Inc. had an annual average earning growth of 17.3% over the past 10 years. GuruFocus rated AFLAC Inc. the business predictability rank of 5-star.
During the first quarter of 2008, we realized pretax investment losses of $7 million (after-tax, $4 million, or $.01 per diluted share) primarily as a result of securities sold or redeemed in the normal course of business.
During the first quarter of 2009, we extinguished portions of our yen-denominated Uridashi and Samurai debt by buying the notes on the open market. We realized a total gain from extinguishment of debt of 1.5 billion yen, or $15 million ($10 million after tax), which we included in other income.
The percentage increases in premium income reflect the growth of premiums in force. The increases in annualized premiums in force in yen of 3.1% in the first quarter of 2009 and 3.7% for the same period of 2008 reflect the high persistency of Aflac Japans business and the sales of new policies. Annualized premiums in force at March 31, 2009, were 1.17 trillion yen, compared with 1.13 trillion yen a year ago. Annualized premiums in force, translated into dollars at respective period-end exchange rates, were $11.9 billion at March 31, 2009, compared with $11.3 billion a year ago.
Read the The complete ReportAFL is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Robert Karr of Joho Capital, Tom Gayner of Markel Gayner Asset Management Corp, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, PRIMECAP Management, Dodge & Cox, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, Chris Davis of Davis Selected Advisers, David Dreman of Dreman Value Management.
AFLAC Inc. is a general business holding company and acts as a management company overseeing the operations of its subsidiaries by providing management services and making capital available. Its primary business is supplemental health and life insurance which is marketed and administered primarily through its subsidiary American Family Life Assurance Company of Columbus. AFLAC Inc. has a market cap of $17.6 billion; its shares were traded at around $37.66 with a P/E ratio of 8.8 and P/S ratio of 1.1. The dividend yield of AFLAC Inc. stocks is 2.9%. AFLAC Inc. had an annual average earning growth of 17.3% over the past 10 years. GuruFocus rated AFLAC Inc. the business predictability rank of 5-star.
Highlight of Business Operations:
During the first quarter of 2009, realized pretax investment gains of $225 million ($146 million after tax) were generated through bond swaps to take advantage of tax loss carryforwards from previously incurred investment losses. We realized total pretax investment losses of $234 million ($152 million after tax), as a result of the recognition of other-than-temporary impairment losses. These other-than-temporary impairment losses consisted of $65 million ($42 million after tax) recognized on certain of our perpetual security investments; $114 million ($74 million after tax) recognized on certain of our collateralized debt obligation (CDO) investments; $49 million ($32 million after tax) recognized on corporate bonds of two issuers, Ford Motor Company and Security Benefit Life; and $6 million ($4 million after tax) recognized on certain collateralized mortgage obligations (CMOs).During the first quarter of 2008, we realized pretax investment losses of $7 million (after-tax, $4 million, or $.01 per diluted share) primarily as a result of securities sold or redeemed in the normal course of business.
During the first quarter of 2009, we extinguished portions of our yen-denominated Uridashi and Samurai debt by buying the notes on the open market. We realized a total gain from extinguishment of debt of 1.5 billion yen, or $15 million ($10 million after tax), which we included in other income.
The percentage increases in premium income reflect the growth of premiums in force. The increases in annualized premiums in force in yen of 3.1% in the first quarter of 2009 and 3.7% for the same period of 2008 reflect the high persistency of Aflac Japans business and the sales of new policies. Annualized premiums in force at March 31, 2009, were 1.17 trillion yen, compared with 1.13 trillion yen a year ago. Annualized premiums in force, translated into dollars at respective period-end exchange rates, were $11.9 billion at March 31, 2009, compared with $11.3 billion a year ago.
Read the The complete ReportAFL is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Robert Karr of Joho Capital, Tom Gayner of Markel Gayner Asset Management Corp, John Rogers of ARIEL CAPITAL MANAGEMENT LLC, PRIMECAP Management, Dodge & Cox, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, Chris Davis of Davis Selected Advisers, David Dreman of Dreman Value Management.
