To help provide relief for California policyholders residing in Ventura and San Diego Counties affected by the winter storms, Aflac will provide a premium grace period starting Jan. 22, 2024, and ending Mar. 25, 2024. This grace period also provides an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder
To help provide relief for California policyholders residing in Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, and Ventura Counties affected by the winter storms, Aflac will provide a premium grace period starting Feb. 3, 2024, and ending Apr. 4, 2024. This grace period also provides an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder.
To help provide relief for California policyholders residing in Alameda, Butte, Glenn, Lake, Mendocino, Monterey, Sacramento, San Francisco, Santa Cruz, Sonoma, and Sutter Counties affected by the winter storms, Aflac will provide a premium grace period starting Feb. 3, 2024, and ending May 21, 2024. This grace period also provides an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder.
On Feb. 21, 2024, the cyber event reported by Change Healthcare, a company that assists healthcare providers with claims submissions and payments, has created a significant impact to health care providers, including hospitals, individual practitioners, practice groups, diagnostic centers, laboratories, and pharmacies. We have determined Aflac’s primary operations are not impacted. Further, Aflac and its subsidiaries do not have any direct connection to Change Healthcare systems in any of Aflac’s systems or applications. At this time, we are not aware of any impact to customer data but we are monitoring for any communications from our critical third-party suppliers. While Change Healthcare’s cyber event was not directed at Aflac, we will provide flexibility with claims submissions related to this incident should it be needed. If you believe you have a claim impacted by Change Healthcare’s event, please contact Aflac at 800-992-3522.
AFLAC Incorporated
(Photo: http://www.newscom.com/cgi-bin/prnh/20010525/AFLACLOGO )
Total revenues were $2.7 billion in the fourth quarter, or 10.9% higher than the fourth quarter of 2001. Net earnings were $186 million, or $.35 per diluted share, compared with $163 million, or $.31 per diluted share, a year ago. Net earnings in the fourth quarter of 2002 reflected a charge of $26 million, or $.05 per diluted share, for our estimated portion of a life insurance industry assessment for Japan's policyholder protection fund. Net earnings also included a loss of $5 million, or $.01 per diluted share, from the change in fair value of the interest rate component of the cross-currency swaps related to the company's senior notes, as required by SFAS 133. In addition, net earnings included realized investment losses of $4 million, or $.01 per diluted share. In the year-ago quarter, net earnings included a loss of $18 million, or $.03 per diluted share, due to SFAS 133 and realized investment losses of $1 million.
For the year, total revenues were $10.3 billion. Net earnings were $821 million, or $1.55 per diluted share, compared with $687 million, or $1.28 per share, in 2001.
In addition to net earnings, the company views operating earnings, a non- GAAP financial measure, as an important indicator of financial performance. The company believes the combined presentation and evaluation of operating earnings, together with net earnings, provides information that may enhance an investor's understanding of the company's underlying profitability and results of operations. The company's definition of operating earnings excludes the following items on an after-tax basis from net earnings: realized investment gains/losses, the impact of SFAS 133, and in 2002, the charge for the Japanese policyholder protection fund. The company also assesses its financial performance by looking at operating earnings excluding the impact of foreign currency translation.
Operating earnings in the fourth quarter were a record $221 million, compared with $182 million a year ago. On a per-share basis, operating earnings rose 23.5% to $.42 per diluted share, compared with $.34 per share in the fourth quarter of 2001. The effect of the yen/dollar exchange rate on fourth quarter operating earnings per diluted share was negligible.
For the year, operating earnings were $825 million, compared with $720 million a year ago. Operating earnings per diluted share rose 16.4% from $1.34 to $1.56 in 2002. Excluding the $.02 per share negative impact from the weaker yen for the full year, operating earnings per diluted share rose 17.9%.
Pending approval by the board of directors, AFLAC will increase its quarterly cash dividend for the 21st consecutive year. Effective with the first quarter of 2003, the company intends to raise the quarterly cash dividend 16.7%, from $.06 to $.07 per share. At its meeting on February 11, 2003, the board of directors will consider the dividend increase. If approved, the first quarter dividend will be payable on March 3, 2003, to shareholders of record at the close of business on February 14, 2003.
Commenting on the company's results for the fourth quarter and the year, Chairman and Chief Executive Officer Daniel P. Amos stated: "We are very proud of our marketing performance and financial results in 2002. In Japan, we faced a challenge of quickly renewing our sales growth following disappointing sales in 2001. We not only met that challenge, we significantly beat our sales targets in every quarter of the year. In the United States, our challenge was to extend our momentum of strong sales increases. Despite difficult comparisons to 2001, AFLAC U.S. produced better-than-expected sales. And in both markets, our investment activities and claims trends were favorable vis-a-vis our expectations. Quite simply, 2002 was a year in which virtually everything went right. As a result, we were most pleased to exceed our primary financial objective for increasing operating earnings per share growth in 2002.
"In looking ahead, we are equally excited about the outlook for continued earnings growth. In May 2001, we established a 2003 objective of increasing operating earnings per diluted share 15% to 17% before the impact of currency translation. We believe we will produce results within that range and look for operating earnings per diluted share to be up 15% for this year excluding currency translation. For 2004, our objective is also to increase operating earnings per diluted share 15%, excluding the impact of the yen. We view those targets as realistic and achievable. Ultimately, we believe they reflect the vast opportunities we see in Japan and the United States and our leading position in the two largest insurance markets in the world."
AFLAC Incorporated
A copy of AFLAC's Fourth Quarter Report to Shareholders and the fourth quarter statistical supplement to the Financial Analyst Briefing Book can be found on the investor relations page of aflac.com .
AFLAC Incorporated will webcast its fourth-quarter analyst presentation on the investor relations page of aflac.com at 7:10 p.m. (EST), Monday, February 3.
AFLAC INCORPORATED AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS
(UNAUDITED -- IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
THREE MONTHS ENDED DECEMBER 31,
2002 2001 % Change
Total revenues $2,666 $2,404 10.9%
Operating earnings 221 182 21.0
Reconciling items, net of tax:
Realized investment gains
(losses) (4) (1)
SFAS 133 (5) (18)
Policyholder protection fund (26) ---
Net earnings 186 163 14.6
Operating earnings per share
- diluted .42 .34 23.5
Reconciling items, net of tax:
Realized investment gains
(losses) (.01) ---
SFAS 133 (.01) (.03)
Policyholder protection fund (.05) ---
Net earnings per share - diluted .35 .31 12.9
Net earnings per share - basic .36 .31 16.1
Cash dividends paid per share .06 .05 20.0
Shares used to compute earnings
per share (000):
Basic 515,678 522,233 (1.3)
Diluted 526,213 532,643 (1.2)
TWELVE MONTHS ENDED DECEMBER 31,
Total revenues $10,257 $9,598 6.9%
Operating earnings 825 720 14.5
Reconciling items, net of tax:
Realized investment gains
(losses) (15) (34)
SFAS 133 37 1
Policyholder protection fund (26) ---
Net earnings 821 687 19.5
Operating earnings per share
- diluted 1.56 1.34 16.4
Reconciling items, net of tax:
Realized investment gains
(losses) (.03) (.06)
SFAS 133 .07 ---
Policyholder protection fund (.05) ---
Net earnings per share - diluted 1.55 1.28 21.1
Net earnings per share - basic 1.59 1.31 21.4
Cash dividends paid per share .23 .193 19.2
Shares used to compute earnings per share (000):
Basic 517,541 525,098 (1.4)
Diluted 528,326 537,383 (1.7)
Forward looking information: Certain statements contained in this press release are "forward looking statements" within the meaning of the federal securities laws. Although the company believes that these statements are reasonable, it can give no assurance that they will prove to be correct because they are prospective in nature. Actual future results may differ materially from those discussed herein. We caution readers that the following factors, in addition to other factors mentioned from time to time in our reports filed with the Securities and Exchange Commission, could cause actual results to differ materially: regulatory developments, assessments for insurance company insolvencies, competitive conditions, new products, ability to repatriate profits from Japan, general economic conditions in the United States and Japan, changes in U.S. and/or Japanese tax laws or accounting requirements, adequacy of reserves, credit and other risks associated with AFLAC's investment activities, significant changes in interest rates, and fluctuations in foreign currency exchange rates.
Analyst and investor contact - Kenneth S. Janke Jr., (800) 235-2667 -
option 3, FAX: (706) 324-6330, or kjanke@aflac.com
Media contact - Kathelen V. Spencer, (706) 596-3789, FAX: (706) 323-1448,
or kspencer@aflac.com
SOURCE: AFLAC Incorporated
CONTACT: media, Kathelen V. Spencer, +1-706-596-3789, or fax,
+1-706-323-1448, or
+1-800-235-2667, option 3, or fax, +1-706-324-6330, or
of AFLAC
Web site: http://www.aflac.com/
