Weak dollar boosts Aflac profits

By Péralte C. Paul

The Atlanta Journal-Constitution

Columbus-based supplemental insurer Aflac Inc. said third quarter profit rose 263 percent, largely on favorable currency exchange rates in Japan, where the company does most of its business.

Profit rose to $363 million, or 77 cents per share, from $100 million, or 21 cents per share in the third quarter of 2008.

Revenue rose more than 22 percent to $4.5 billion, from $3.6 billion.

The results were released late Wednesday, after the stock market closed.

Despite the positive results, Aflac, which invests the premiums it collects in corporate securities, reported an after-tax realized loss of more than $226 million in the quarter. That loss represented about 48 cents per share, but it was less than investment losses of $389 million, or 81 cents per share it reported in last year's comparable quarter.

"I continue to be encouraged by our financial and operating performance so far this year, especially in light of the weak economic conditions," Aflac chairman and chief executive Daniel P. Amos said in a statement.

"Although net earnings continued to reflect larger-than-usual realized investment losses, the losses in the third quarter were significantly lower than a year ago."

Despite the weak economy and Aflac's expectations new premium sales in the United States will now fall short of its initial forecast of a flat-to-5-percent increase, the company said it projects it will increase operating earnings 13 percent to 15 percent for the full year.