The Aflac (NYSE:AFL) Success

The market on Tuesday closed with Aflac (NYSE:AFL) announcing its third quarter net earnings at $1.56 per share, a much better result as compared to consensus predictions of $1.43. The operating earnings per share were reported at a rise of 2.7% year over year. This is excluding the nonrecurring item for a better review of the company’s profitability. This is without the exchange rate fluctuation effect of 5.4%.

According to CEO Daniel Amos, Aflac (NYSE:AFL) Japan has been the biggest profit generator with exceptionally well figures for the quarter. The company faced an income decline of 0.7% in its third quarter because of weak sales. Whereas sales conducted through the company’s bank channel also fell by 42.7%, and the medical and cancer sector which represents the strongest growth prospects also faced decline of 12.6%.

The company has hopes tied with its new cancer product, “New Cancer Days”, along with the Japan Post, to help recover from the declining sales rate. Aflac (NYSE:AFL) has also signed a deal with Japan Post, as their postal outlet selling figures are expected to rise from 3000 to 10,000 in October.

This year’s Aflac (NYSE:AFL) profits in Japan rose to 19.6% from 19.2% last year, in same quarter.

Aflac (NYSE:AFL) US has also come out with remarkable figures. The company has shifted focus on strategy and spending, in order to reevaluate and reorganize, and eventually turnaround its stagnant US operations. This was aimed to recharge the company for the long run, even though sales remained fairly flat in the quarter. A further drop is expected in sales from 2% to 4%, despite good results in the US. The company celebrated a nice raise in the net investment income by 2.2%, with a very little fall in the profit margin from 18.5% to 18.4% in a year. The company overall holds a strong position in the market.

Observing both regions closely, one can easily conclude that the 2.5% decline is revenue is due to a fall in payouts toward benefits and claims by 3.7%, as well as a 1.9% decrease of operating expenses. But viewing the company performance on a much larger perspective, one can see that Aflac (NYSE:AFL) is focused to renew its long term dedicated relationships, and efforts to build several other new associations. The company also invests in its own growth and improvement.

One of Aflac (NYSE:AFL)’s strong points, is its ability to please its shareholders. The strong financial position does not only reward the company, but also the stakeholders. The company plans to repurchase $1.2 billion of its common stock this year, and another $1.3 billion worth in 2015. Its dividend also rose from $0.37 in the first quarter to $0.39 per share in the second, which is a total of 5.7% increase. This is the company’s 32^nd consecutive year increment. The company’s performance seems to be improving at a slow and steady rate, which might not seem very significant at the moment, but will be very fruitful in the long run.