AFLAC Incorporated (NYSE: AFL) stock fell over 0.5% on October 25th, 2018 (As of 10:42 AM GMT-4; Source: Google finance). In yen terms, Aflac Japan’s premium income, net of reinsurance, was ¥352.0 billion for the quarter, or 0.9% lower than a year ago, with growth in third sector premium more than offset by the reduction in first sector premium due to savings products reaching premium paid-up status.
AFL in the third quarter of FY 18 has reported the adjusted earnings per share of $1.03, while adjusted revenue growth was 1.3 percent to $5.58 billion in the third quarter of FY 18.
Net investment income, net of amortized hedge costs, increased 8.3% to ¥67.7 billion, driven by higher income from dollar-denominated floating rate assets. Total revenues in yen increased 0.4% to ¥420.9 billion. Aflac U.S. premium income rose 2.4% to $1.4 billion in the third quarter. Net investment income increased 3.3% to $187 million, driven by higher income from floating rate assets partially offset from the drawdown of excess capital in the U.S. segment. Total revenues were up 2.6% to $1.6 billion. Pretax adjusted earnings were $334 million, 5.7% higher than a year ago, driven by higher net investment income and a favorable benefit ratio in the quarter. The pretax adjusted profit margin for the U.S. segment was 20.7%, compared with 20.1% a year ago.
Total investments and cash at the end of September 2018 were $124.2 billion, compared with $122.5 billion at September 30, 2017. In the third quarter, Aflac repurchased $322 million, or 7.0 million of its common shares. At the end of September, the company had 77.6 million remaining shares authorized for repurchase. AFL continue to anticipate share repurchase will be in the range of $1.1 to $1.4 billion in 2018. AFL has declared the fourth quarter dividend of $0.26 per share, payable on December 3, 2018 to shareholders of record at the close of business on November 21, 2018.
AFL is on track to achieve the high end of our revised 2018 adjusted earnings per diluted share guidance of $3.90 to $4.06, assuming the 2017 weighted-average exchange rate of 112.16 yen to the dollar.