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




Net Investment Income




Net Income








Diluted Operating Earnings




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Ratio Checkup

Q4 2006

Q4 2005


Yield on Invested Assets - U.S.




Yield on Invested Assets - Japan




*Expressed in percentage points.

Balance Sheet Highlights


Q4 2006

Q4 2005

% Change





Cash and Equivalents





Q4 2006

Q4 2005

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Policy Liabilities




Notes Payable




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  • Delphi Financial (NYSE:DFG)

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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.