Aflac Shares Leap on Strong Profit Outlook

Aflac said quarterly net earnings dropped 48 percent, hurt by soured investments, but forecast strong 2009 earnings growth and shares rose more than 7 percent.

Aflac shares rose over 7 percent in post-market trading, after closing down 18 cents to $23.03 in the regular session.

Fourth-quarter net profit fell to $197 million, or 42 cents a share, from $382 million or 78 cents a share, in the same period a year ago.

The latest results included realized investment losses of $262 million, or 56 cents a share, partly from impairments on investments in Icelandic banks.

Aflac said its holding of hybrid securities—a source of investor concern because some issuers include troubled European banks—are performing as expected. The company said it does not anticipate needing to raise additional capital.

The company said its goal was to increase operating earnings per diluted share by 13 percent to 15 percent to $4.51 to $4.59 a share in 2009, excluding the impact of the Japanese yen.

Columbus, Georgia-based Aflac said operating earnings, excluding investment losses, rose 20 percent to $458 million, or 98 cents a share. On that basis, the result was just shy of analysts' average expectations of $1 a share, according to Reuters Estimates.

In the year-ago quarter, Aflac posted operating income of $382 million or 78 cents a share.

Aflac counts on the U.S. and Japanese markets for the bulk of its business.

• Get After-Hour Quotes for Aflac

Copyright 2009 Reuters. Click for restrictions.