(Bloomberg) — Aflac Inc. Chief Executive Officer Dan Amos said he’s sitting out the insurance industry’s wave of mergers and acquisitions because the market is too costly.
“The prices of insurance companies are through the roof,” Amos said in Aflac’s second-quarter earnings conference call Wednesday. “I can’t possibly see anything making any sense at this particular time.”
Smaller insurers that sell disability and life policies have rallied in New York trading amid speculation that there could be more takeovers after Japan’s Meiji Yasuda Life Insurance Co. agreed last week to buy StanCorp Financial Group Inc. for about $5 billion. Meiji Yasuda said it will pay $115 a share, a 49.9 percent premium on StanCorp’s one-month weighted- average share price.
Amos’s stance won praise from John Nadel, an analyst at Piper Jaffray Cos., who has a neutral rating on Aflac, the largest seller of supplemental health insurance.