The dollar-to-yen conversion hurt the Columbus insurance company Aflac’s bottom line.
Both profits and revenues were down because of a weak yen/dollar exchange rate, the company said Tuesday. Total revenues fell 9.1 percent, to $5.6 billion in the first quarter compared to the prior year. Profits fell 18 percent, to $732 million.
Aflac said in a statement that because the company does not actually convert yen into dollars, it sees the exchange rate as a financial reporting issue, and not as an economic event for the company.
In a statement, Aflac chairman and CEO Daniel P. Amos said the company is disappointed with its sales growth, but that Aflac is starting to see some sales-related initiatives take hold.
“While uncertainty around health care reform implementation has prompted many businesses and consumers to postpone decisions related to health care coverage, we believe the need for our products remains as strong as ever,” he said in the statement.
In the first quarter, Aflac repurchased 6.5 million shares of its common stock for $415 million.
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