Aflac Incorporated (AFL) has reported a 19.02 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $592 million, or $1.47 a share in the quarter, compared with $731 million, or $1.74 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $676 million, or $1.67 a share compared with $705 million or $1.68 a share, a year ago.
Revenue during the quarter went down marginally by 2.61 percent to $5,309 million from $5,451 million in the previous year period.
Total expenses move up marginally
Operating income for the quarter was $898 million, compared with $1,117 million in the previous year period. The company projects diluted earnings per share to be in the range of $1.55 to $1.70 for the second-quarter.
Commenting on the company’s results, chairman and chief executive officer Daniel P. Amos stated: "We are pleased with the company’s overall performance for the quarter. Our results for the first quarter are consistent with what we communicated on our December outlook call. Despite the persistent low-interest-rate environment, Aflac Japan, our largest earnings contributor, generated solid financial results. In yen terms, results on an operating basis were in line with our expectations for the quarter. Additionally, our operation in Japan produced better-than-expected third sector sales results. As we’ve communicated, we continue to believe the long-term compound annual growth rate for third sector product sales will be in the range of 4% to 6%.
Liabilities outpace assets growth
Total assets increased 4.61 percent or $5,884 million to $133,650 million on Mar. 31, 2017. On the other hand, total liabilities were at $113,310 million as on Mar. 31, 2017, up 5.16 percent or $5,565 million from year-ago. Return on assets stood at 0.44 percent in the quarter, down 0.18 from 0.62 percent in the last year period. At the same time, return on equity was at 2.91 percent in the quarter, down 0.74 from 3.65 percent in the last year period.
Investments move up
Investments stood at $120,503 million as on Mar. 31, 2017, up 5.41 percent or $6,183 million from year-ago. Liability for future policy benefits, unpaid claims and claims adjustment expense was at $97,624 million as on Mar. 31, 2017, up 3.71 percent or $3,496 million from year-ago.
Total debt was at $5,250 million as on Mar. 31, 2017, up 5.34 percent or $266 million from year-ago. Shareholders equity stood at $20,340 million as on Mar. 31, 2017, up 1.59 percent or $319 million from year-ago. As a result, debt to equity ratio went up 1 basis points to 0.26 percent in the quarter from 0.25 percent in the last year period.
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