On Wednesday, Jan. 31, Aflac (NYSE:AFL) released fourth-quarter and year-end results for the period ended Dec. 31, 2006. Here are the quick and dirty details for the quarter.

  • Total revenues grew 3.4% to $3.7 billion, as strong sales growth in the U.S. helped offset weakness in Japan.
  • Reported net income fell 8.8% and earnings fell 6.9%, but operating earnings grew 11.9%. 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 3.1 million shares during the fourth quarter and increased its dividend 42.3% to $0.185 for the first quarter of 2007.
  • Aflac expects a 15%-16% increase in operating earnings for 2007, to a range of $3.28-$3.31 per diluted share.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

% Change

Premiums Earned

$3,114

$2,931

6.2%

Net Investment Income

$557

$517

7.7%

Net Income

$332

$364

(8.8%)

EPS

$0.67

$0.72

(6.9%)

Diluted Operating Earnings

$0.66

$0.59

11.9%



Get back to basics with a look at an insurer's income statement.

Ratio Checkup

Q4 2006

Q4 2005

Change

Yield on Invested Assets - U.S.

6.9%

6.8%

0.09%

Yield on Invested Assets - Japan

4.1%

4.2%

(0.10%)

*Expressed in percentage points.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

% Change

Investments

$50,769

$47,692

6.5%

Cash and Equivalents

$1,203

$1,297

(7.2%)



Liabilities

Q4 2006

Q4 2005

% Change

Policy Liabilities

$45,440

$42,329

7.3%

Notes Payable

$1,426

$1,395

2.2%



Learn the ways of the balance sheet.

Comparable companies:

  • Conseco (NYSE:CNO)
  • Allianz (NYSE:AZ)
  • Assurant (NYSE:AIZ)
  • Delphi Financial (NYSE:DFG)

Related Foolishness:

Aflac is a Motley Fool Stock Advisor pick.

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Fool contributor Ryan Fuhrmann is long shares of Aflac but has no financial interest in any other company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.