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AFLAC Reports Higher Net Income

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NU Online News Service, Oct. 25, 4:07 p.m. – AFLAC Inc., Japan, is reporting $193 million in net income for the third quarter on $2.5 billion in revenue, up from $163 million in net income on $2.5 billion in revenue for the third quarter of 2000.

Operating earnings, which exclude the effects of an accounting change, $28 million in investment losses, and a $37 million gain in the value of foreign exchange and interest rate swaps, increased 9%, to $184 million.

Results would have looked even better if the exchange rate for U.S. dollars and Japanese yen remained the same, AFLAC says.

AFLAC sells supplemental insurance in the United States and Japan. Japan accounts for almost fourth-fifths of the company’s third-quarter revenue.

When expressed in terms of Japanese yen, revenue from the Japanese operations increased 5.9%, but, because the value of the yen has fallen, the dollar value of the revenue from the Japanese operations fell 6.4%, to $1.9 billion, AFLAC says.