Aflac 2Q profit up 85 percent on strength in Japan

COLUMBUS, Ga. (AP) - Rising sales in Japan and a strong exchange rate helped lift insurer Aflac's second-quarter results above Wall Street expectations.

For the three months ended June 30, the company known best in the U.S. for the talking duck used in its advertising campaigns posted net income of $581 million, or $1.23 per share, compared with $314 million, or 67 cents per share, in the year-ago period.

Operating income, which excludes the impact of accounting for the sale of certain investments and valuations of foreign holdings, came to $639 million, or $1.35 per share, compared with $562 million, or $1.20 per share, last year.

Analysts polled by Thomson Reuters, on average, expected profit of $1.33 per share. Wall Street analysts typically exclude one-time items from their estimates.

Revenue rose to $4.98 billion, from $4.31 billion a year ago, and just short of Street expectations for $4.99 billion.

The company booked realized investment losses of $58 million, or 12 cents per share, compared with $249 million, or 53 cents per share last year. Securities transactions produced realized investment gains of $8 million, or 2 cents per share.

Aflac has a significant portion of its business in Japan, and a stronger yen helped boost earnings by 2 cents per share. In dollar terms, total revenue rose 9 percent to $3.8 billion. Premium income in dollars rose 10 percent to $3.2 billion.

In the U.S., the weak economy continued to pressure results. Total revenue rose 5 percent to $1.3 billion. Premium income increased 5 percent to $1.1 billion.

The company said it expects third-quarter operating earnings of $1.35 to $1.38 per share, and full-year profit of $5.44 per share.

In premarket trading Wednesday, shares of Aflac Inc. slipped 71 cents, to $50.