Boston, MA 05/27/2014 (wallstreetpr) – AFLAC Incorporated (NYSE:AFL) is a $28 billion supplementary insurer operating in the U.S. and Japan. The company has been around since 1955 and its business life has stood the test of time. The company has a clean performance track record and shareholders seem satisfied with the execution of the management team, especially give the successful inroad in Japan’s insurance market. However, like any other businesses today, AFL seeks growth, higher revenue and higher profits.
In a recent annual meeting, the company’s Chief Executive Officer, Dan Amos, revealed how the company has registered compelling results in the past years and how it intends to make the coming years even greater in terms of creating shareholder value.
Looking Ahead
AFLAC Incorporated (NYSE:AFL) signed a contract with Japan Post last year, and it expects the deal to result into good earnings flow for the coming years. According Mr. Amos, Japan Posts is the largest insurance company in the world by asset-base. Therefore, the contract gives AFL a solid distribution opportunity.
Looking at the U.S. market, the executive noted that sales have been slower so far but expects the situation improve. The slower than expected sales in the U.S. were linked to the uncertainties around the Affordable Care Act. Nonetheless, in spite of the sales challenges in the U.S. market as AFLAC Incorporated (NYSE:AFL) noted, the company saw its 1Q earnings in the U.S. hitting an all-time high, and up 7.9 percent.
Publicity Campaign
After successful brand publicity, the CEO told investors that the company enjoys 94 percent brand recognition in the U.S. and 97 percent brand recognition in Japan. In view of the positive developments, the company’s ad spending has reduced such that the company spent about $95 million in the whole of 2013 on advertisement, far less than the amount that many of its competitors spent in the year.
Improving Performance
The fact that AFLAC Incorporated (NYSE:AFL) has stood the test of time can also be seen in its financial results and shareholder rewards. The company returned about $800 million to shareholders in 2013, a year that marked the 31st consecutive year that the company boosted its cash dividend.
In 1Q2014, the company earned $1.69 per share, beating the consensus estimate of $1.58.
