On Tuesday, April 24, after the market closed, Aflac
- Total revenue grew 5% to $3.8 billion, as strong sales growth in the U.S. helped offset continued weakness in Japan.
- Reported net income grew 10.9%, while earnings grew 13.5%. Operating earnings grew 13.9%. Management uses operating earnings calculations to detail operational results, excluding items such as realized investment gains and losses, nonrecurring items, and other accounting changes.
- Aflac repurchased 5.1 million shares during the quarter and raised its dividend for the third straight quarter, this time by 10.8%.
- Aflac expects a 15%-16% increase in operating earnings for 2007.
-
Stock Advisor recommendation Aflac carries a favorable four-star rating in Motley Fool CAPS, as does insurance peer Allianz
(NYSE:AZ) . Conseco(NYSE:CNO) and Delphi Financial(NYSE:DFG) carry lower two-star ratings, while Assurant(NYSE:AIZ) earns a coveted five stars.
(Figures in millions, except per-share data)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Premiums Earned |
$3,156 |
$3,005 |
5.0% |
Net Investment Income |
$566 |
$524 |
8.0% |
Net Income |
$416 |
$375 |
10.9% |
EPS |
$0.84 |
$0.74 |
13.5% |
Diluted Operating Earnings |
$0.82 |
$0.72 |
13.9% |
Get back to basics with a look at the income statement.
Ratio Checkup
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Return on Assets - Aflac U.S. |
6.82% |
6.73% |
0.09% |
Return on Assets - Aflac Japan |
4.10% |
4.12% |
(0.02%) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Investments |
$53,268 |
$48,865 |
9.0% |
Cash and Equivalents |
$834 |
$1,155 |
(27.8%) |
Liabilities |
|||
---|---|---|---|
Policy Liabilities |
$46,651 |
$43,358 |
7.6% |
Notes Payable |
$1,434 |
$1,400 |
2.4% |
Learn the ways of the balance sheet.
Related Foolishness:
- Foolish Forecast: Aflac Waddles Through Q1
- Companies You Should Buy Right Now
- A Closer Look at Insurance Stocks
Aflac is a Motley Fool Stock Advisor recommendation. You can find out why with a 30-day free trial to the Gardner brothers' market-beating service.
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Fool contributor Ryan Fuhrmann is long shares of Aflac but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.