Although we have not yet completed our statutory financial statements for the third quarter, we estimate our RBC ratio will be within the range of 500% and 540% at the end of September. Despite our expectation for higher spending in the fourth quarter, I am confident we will achieve our 2011 objective of growing operating earnings per diluted share at 8%, excluding the impact of the yen. If the yen averages 75 to 80 to the dollar for the last three months of the year, we would expect reported operating earnings for the fourth quarter to be in the range of $1.45 to $1.52 per diluted share. Under that exchange rate assumption, we would expect full year operating earnings of $6.30 to $6.37 per diluted share. “Looking ahead, I want to reiterate our expectation that 2012 operating earnings per diluted share will increase 2% to 5% on a currency neutral basis. Furthermore, once the effects of our proactive investment derisking program and low interest rates have been integrated into our financial results, we believe the rate of earnings growth in future years should improve.”
AFL MISSES AND GUIDES DOWN
AFLAC misses by $0.01, reports revs in-line; guides Q4 EPS below consensus; guides FY11 EPS in-line (43.03 +1.29)
Reports Q3 (Sep) earnings of $1.59 per share, $0.01 worse than the Capital IQ Consensus Estimate of $1.60; revenues rose 11.0% year/year to $5.99 bln vs the $5.95 bln consensus. Co issues downside guidance for Q4, sees EPS of $1.45-1.52 vs. $1.55 Capital IQ Consensus Estimate. Co issues in-line guidance for FY11, sees EPS of $6.30-6.37, excluding non-recurring items, vs. $6.34 Capital IQ Consensus Estimate.
