(Reuters) -Health and life insurer Aflac topped Wall Street estimates for third-quarter profit and revenue on Tuesday, driven by investment gains and higher premium growth in its United States division. Shares of the company were up more than 2% in extended trading. The Columbus-based insurer provides accident and pet insurance plans through its units in […]
Health
Insurer Aflac tops quarterly estimates on investment gains, steady US growth
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(Reuters) -Health and life insurer Aflac topped Wall Street estimates for third-quarter profit and revenue on Tuesday, driven by investment gains and higher premium growth in its United States division.
Shares of the company were up more than 2% in extended trading.
The Columbus-based insurer provides accident and pet insurance plans through its units in the United States and Japan. Additionally it offers supplemental insurance to help cover out-of-pocket costs, including specialized coverage for critical illnesses, dental care and ophthalmological requirements.
The company’s U.S. unit earned net premiums of $1.5 billion in the third quarter, up 2.5% from a year earlier. Sales in the U.S. increased 2.8% during the quarter, driven by strong demand for group life and disability products.
The company said it benefited from net investment gains of $275 million during the quarter, a sharp turnaround from losses of $1.4 billion in the same period last year.
The insurer reported quarterly revenue of $4.74 billion, which beat analysts’ estimates of $4.38 billion, according to data compiled by LSEG.
On an adjusted basis, profit for the quarter ended September 30 was $2.49 per share, above the consensus estimate $1.77 per share.
Aflac bought back $1 billion worth of its own stock in the third quarter, repurchasing 9.3 million shares.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Alan Barona)