Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Financial Planning > Tax Planning > Tax Loss Harvesting

AFLAC Reports Lower 4th Quarter Net Income

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, Jan. 31, 6:03 p.m. – AFLAC Inc., Columbus, Ga., is reporting $163 million in net income for the fourth quarter of 2001 on $2.4 billion in revenue, down from $166 million in net income on $2.5 billion in revenue for the fourth quarter of 2000.

AFLAC gets much of its revenue from sales of cancer insurance and other specialty insurance products in Japan. The company has included $18 million in losses on “cross-currency swaps” in its fourth-quarter net earnings figure.

The swaps are financial contracts that are supposed to limit the effects of large shifts in interest rates and yen-dollar exchange rates on the dollar value of AFLAC debt.

The swap losses are due mainly to the interest rate component, rather than the exchange-rate component, AFLAC says.

Operating earnings, which exclude the swaps losses, increased increased 8.6%, to $182 million.

AFLAC is blaming the decrease in revenue mainly the decrease in value of the yen relative to the dollar.

U.S. sales were strong in the fourth quarter, and the yen value of sales in Japan was also strong, AFLAC says.

Daniel Amos, AFLAC chairman, says he was pleased with the performance of AFLAC operations in Japan.

“We ? significantly outsold all of our competitors in a market that remains challenging because of Japan’s continued economic weakness,” Amos says.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.