Aflac and Unum Post Strong Quarterly Profits

Strategic Insights -

Aflac Inc, the world's largest seller of supplemental disability insurance, and Unum Group posted strong quarterly profits, exceeding analysts' estimates. The companies reported growth at their U.S. segments, despite a weak U.S. economy battered by the widespread credit crisis. Aflac's U.S. unit saw a 5 percent increase in premium income, while its Japanese segment reported a 14 percent rise in profit.

Key Takeaways:

  • Aflac posted a profit of $251 million, or 53 cents a share, for the fourth quarter, exceeding analysts' estimates of $1.15 a share.
  • Unum Group also reported a strong quarterly profit, although details were not provided in the article.
  • Aflac's U.S. unit saw a 5 percent increase in premium income to $1.1 billion for the fourth quarter.
  • Aflac's Japanese segment reported a 14 percent rise in profit to $12.2 billion in dollar terms, aided by a stronger Japanese yen.
  • The company's performance in the U.S. market was affected by the recent acquisition of Continental American Insurance Co.
  • Aflac did not raise its outlook for operating income from its U.S. segment, despite the inclusion of the new unit.
  • The company's U.S. sales growth was challenged by weak economic conditions and the loss of a large payroll account.
  • Aflac earned operating profit of $1.18 a share, which is the favourite measure of profitability for insurance analysts.
  • MetLife Inc's fourth-quarter operating profit beat Wall Street expectations by a penny.
  • Ace Ltd reported quarterly earnings above analysts' expectations, helped by increased premium earned.
  • The companies maintained their outlook for 2010.

Statistics:

  • Aflac's profit for the fourth quarter was $251 million.
  • Aflac's second-quarter profit was $197 million, or 42 cents a share, a year back.
  • Operating profit was $1.18 a share for Aflac.
  • Aflac's U.S. segment premium income grew 5 percent to $1.1 billion for the fourth quarter.
  • Aflac's Japanese segment profit rose 14 percent to $12.2 billion in dollar terms.
  • Aflac's U.S. sales growth was challenged by weak economic conditions and the loss of a large payroll account.
  • Aflac counted 140 countries as clients for Ace Ltd, according to the article.
  • Euclid Infotech Pvt. Ltd. is the copyright holder of the article.
  • Thomson Reuters I/B/E/S reported an average analysts' estimate of $1.15 a share for Aflac's profit.

Sources:

  • Euclid Infotech Pvt. Ltd. (c) 2009
  • Thomson Reuters I/B/E/S
  • Albawaba.com
  • Syndigate.info