Aflac Inc. (AFL) has reported a 2.88 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $751 million, or $1.84 a share in the quarter, compared with $730 million, or $1.71 a share for the same period last year. Revenue during the quarter grew 11.96 percent to $5,955 million from $5,319 million in the previous year period.
Total expenses move up
Operating income for the quarter was $1,153 million, compared with $1,110 million in the previous year period. For financial year 2017, Aflac Inc. projects diluted earnings per share to be in the range of $6.40 to $6.65.
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 year. Despite the pervasive low-interest-rate environment, Aflac Japan, our largest earnings contributor, generated solid financial results. Additionally, our operation in Japan produced strong third sector sales results throughout 2016. As we said during our outlook call last month, 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%. Turning to our U.S. operations, we are pleased with the financial performance and strong profitability of Aflac U.S. in 2016. While we were disappointed with sales results for Aflac U.S. in 2016, I want to reiterate that we believe the strategy for growth we adopted in both our career and broker channels is the right one as we look ahead. As we said on last month’s outlook call, we anticipate a long-term compound annual growth rate of 3% to 5% in new annualized premium sales."
Assets outpace liabilities growth
Total assets increased 9.78 percent or $11,563 million to $129,819 million on Dec. 31, 2016. On the other hand, total liabilities were at $109,337 million as on Dec. 31, 2016, up 8.74 percent or $8,789 million from year-ago. Return on assets stood at 0.58 percent in the quarter, down 0.28 from 0.86 percent in the last year period. At the same time, return on equity was at 3.67 percent in the quarter, down 0.46 from 4.12 percent in the last year period.
Liability for future policy benefits, unpaid claims and claims adjustment expense was at $93,726 million as on Dec. 31, 2016, up 6.96 percent or $6,095 million from year-ago.
Total debt was at $5,360 million as on Dec. 31, 2016, up 7.83 percent or $389 million from year-ago. Shareholders equity stood at $20,482 million as on Dec. 31, 2016, up 15.67 percent or $2,774 million from year-ago. As a result, debt to equity ratio went down 2 basis points to 0.26 percent in the quarter from 0.28 percent in the last year period.
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