'Robust' earnings growth

"I continue to be encouraged by our financial and operating performance so far this year, especially in light of the weak economic conditions," Dan Amos, Aflac chairman and chief executive officer, said in a prepared statement. "Although net earnings continued to reflect larger-than-usual realized investment losses, the losses in the third quarter were significantly lower than a year ago."

Amos also said he was pleased with the company's capital position and its "robust" operating earnings growth, which was "consistent with our objective for the year." The company reaffirmed it will achieve its 2009 year-end goal of a 13 percent to 15 percent increase in operating earnings per diluted share. Amos also said they are still aiming for a 9 percent to 12 percent increase in operating earnings per diluted share for 2010 -- excluding the effect of foreign currency.

Sales up in Japan

Aflac does about 70 percent of its business in Japan. Janke said third-quarter sales in the Asian country "exceeded our expectations."

Aflac Japan's total new annualized premium sales were up 6.5 percent in the third quarter. The company attributed this in part to strong child endowment sales and of a revised medical product introduced in August. Also, sales through its bank channel continued to improve, increasing about 66 percent in the third quarter.

"In our largest market, we believe Aflac Japan will achieve its annual objective of flat sales to a 5 percent increase for the full year," Amos said. "With a tremendous consumer response to our recently introduced products and continued growth through the bank channel, we also believe we can extend Aflac Japan's sales momentum into 2010."

In the U.S., sales were hurt by a weak economy, but Janke said they were not surprised by this. Total new annualized premium U.S. sales declined 7.2 percent to $342 million.

"The U.S. (sales results) are a continuation of what we've seen for about a year," he said. "It's still a very challenging market ... People are just reluctant to spend."

The company said it does not believe U.S. sales will make its annual objective of flat to 5 percent growth this year. However, they were hopeful new agent recruitment, strong training programs and new payroll account growth would mean a better sales year for Aflac U.S. in 2010.

"It was a very solid quarter," Janke said. "I don't think there's a lot for analysts or investors to be disappointed in."

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