International insurer Aflac Inc. (AFL) said Tuesday after the markets closed that its fourth quarter profit rose 25% from last year, helped by a stronger yen/dollar exchange rate and narrower investment losses. However, the company's quarterly earnings per share, excluding items, came in below analysts' expectations as did it quarterly revenue.
The Columbus, Georgia-based company, which generated a large part of its revenue in Japan, reported $546 million or $1.17 per share, compared to $437 million or $0.92 per share for the year-ago quarter.
Net earnings in the latest quarter included after-tax realized investment losses, net of realized investment gains, of $145 million or $0.31 per share, compared to net after-tax losses of $191 million or $0.41 per share a year ago.
Excluding realized investment gains and losses from securities transactions, impairments, and derivative and hedging activities, as well as nonrecurring items, operating earnings for the fourth quarter were $691 million or $1.48 per share, compared to $628 million or $1.33 per share in the prior year quarter.
On average, 20 analysts polled by Thomson Reuters expected the company to earn $1.51 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Revenues for the fourth quarter rose 12.9% to $5.98 billion from $5.29 billion in the same quarter last year. Eight analysts had a consensus revenue estimate of $6.06 billion for the fourth quarter.
The company ended the quarter with total investments and cash of $103.5 billion, compared to $100.8 billion at the end of the previous quarter.
Aflac Japan's total revenues in yen were up 6.0% in the fourth quarter. Premium income in yen rose 6.3%, and net investment income increased 3.2%. Premium income in dollars rose 13.5% to $4.1 billion in the fourth quarter. Net investment income increased 10.2% to $708 million. Aflac Japan's total revenues increased 13.1% to $4.9 billion.
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 grew 3.4% to $149 million.
Aflac repurchased .9 million shares of its common stock during the fourth quarter, 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.
The company today declared a first quarter cash dividend of $.33 per share, payable on March 1 to shareholders of record on February 15.
Aflac reiterated its objective for 2012 to increase operating earnings per share 2% to 5% on a currency neutral basis.
For 2012, the company said it expects Aflac U.S. sales to increase 3% to 8%, but expects Aflac Japan sales to decline 2% to 5%.
Aflac shares, which have traded in a range of $31.25 to $59.54 over the past year, closed Tuesday's regular trading session at $48.23, down 18 cents, but gained 5 cents in after hours trading.
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