(Reuters) -Health and life insurer Aflac on Tuesday beat Wall Street estimates for second quarter profit, driven by steady premium gains in the United States offset investment losses. However, shares of the company fell 2.2% after the insurer reported second-quarter revenue that declined from a year earlier and missed analysts’ estimates, weighed down by net […]
Health
Insurer Aflac tops quarterly profit estimates on steady US premium gains
Audio By Carbonatix
(Reuters) -Health and life insurer Aflac on Tuesday beat Wall Street estimates for second quarter profit, driven by steady premium gains in the United States offset investment losses.
However, shares of the company fell 2.2% after the insurer reported second-quarter revenue that declined from a year earlier and missed analysts’ estimates, weighed down by net investment losses of $421 million.
Aflac provides accident and pet insurance plans through its units in the United States and Japan, as well as 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 for the second quarter, up 3.4% from a year earlier.
The insurer reported total revenue of $4.2 billion for the second quarter, missing analysts’ estimates of $4.33 billion, according to data compiled by LSEG.
On an adjusted basis, profit for the quarter ended June 30 was $1.78 per share, beating analyst estimates of $1.70 per share.
Aflac’s board declared a third-quarter dividend of $0.58 per share, payable September 2 to shareholders of record as of August 20.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Tasim Zahid)