Aflac Increases 2017 Operating EPS Outlook; Increases Dividend

(RTTNews) - Aflac (AFL) upwardly revised its 2017 operating earnings per share outlook to a higher range of $6.75 to $6.95 from a range of $6.40 to $6.65, both of which exclude the impact of the yen. If the yen averages ¥110 to ¥115 to the dollar for the fourth quarter, operating earnings, is expected to be approximately $1.42 to $1.66 per share in the fourth quarter, making full-year operating earnings approximately $6.62 to $6.86 per share.

Third-quarter operating earnings per share decreased 2.3% to $1.70, and includes an after-tax benefit from the reserve adjustment of $0.04 per share, compared with $1.74 a year ago. Excluding the impact of the weaker yen, operating earnings per share increased 1.7% to $1.77. Total revenues were $5.5 billion during the third quarter of 2017, compared with $5.7 billion in the third quarter of 2016.

The board of directors announced a 4.7% increase in the quarterly cash dividend, effective with the fourth quarter payment. The fourth quarter dividend of $0.45 per share is payable on December 1, 2017, to shareholders of record at the close of business on November 15, 2017.

CEO Daniel Amos stated: "We remain committed to maintaining strong capital ratios on behalf of our policyholders and all stakeholders. We balance this financial strength with a focus on increasing the dividend, repurchasing shares and reinvesting in our business. We continue to believe our financial strength in Japan positions us to repatriate in the range of ¥120 to ¥140 billion to the U.S. for the calendar year 2017, assuming capital conditions remain stable. We continue to anticipate that we'll repurchase in the range of $1.3 to $1.5 billion of our shares in 2017, which also assumes stable capital conditions and the absence of compelling alternatives."