April 26, 2010 - Aflac Inc. (AFL-NYSE) through its subsidiary, American Family Life Assurance Company of Columbus (Aflac), provides supplemental health and life insurance. In Japan, the company offers cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans, and annuities.

Aflac Incorporated sells through sales associates, independent corporate/individual agencies, and affiliated corporate agencies. The company was founded in 1955 and is headquartered in Columbus, Georgia.

Here's what's interesting about Aflac: sales continued to increase over the last three years in spite of a global economic slowdown. Revenues in 2007 were $12.973 billion, then went to $14.947 billion, followed by $16.621 billion. This year, consensus from 5 analysts is for $20.21 billion, then going to $20.71 billion next year.

Earnings didn't follow the same pattern due to impairments caused by write downs of assets or outright losses. In 2007, earnings were $3.27 but then dropped precipitously to $2.62. In 2009, they bounced back to $3.91. This year, 18 analysts have a consensus estimate of $5.34, then see $5.84 next year. First quarter earnings will be out on April 27. Look for $1.32 compared to $1.22 in the first quarter of last year. For the second quarter, analysts forecast $1.33, above the $1.20 in last year's second period.

When stocks have erratic earnings, usually their prices behave the same way. AFL is no exception. After topping at an all-time high in 2008 of $68.80, the stock went into a freefall from late 2008 until early 2009, finally finding a bottom at $10.80. But then it bounced, strongly, moving quickly back to the mid $50 level. In the last 15 months, the stock is up 418%.

Things look positive for AFL. The higher cost of healthcare and the recent increase in patient co-payments in Japan suggest higher sales for Aflac's supplemental insurance products that pay benefits directly to a policy holder. Also helpful is the declining benefit ratio which flows to profits. The better ratio is due to new products carrying higher profits and Japanese patients having less time in the hospital as cutting healthcare costs is a priority there. Also, any impairments the company suffered previously seem to be gone.

More numbers: Market cap is $26.06 billion. Forward P/E is 9.5. Price to book is 3.03. Book value is $18.01. Operating margin for the last 12 months was 12.56% while Profit margin was 8.21%. Return on Equity was a remarkable 19.89%. Return on assets was 1.75%. Cash in the bank is $2.32 billion or $4.95 a share. Current ratio is .8. Total debt is $2.60 billion or about 24% of capital. Beta is 1.92. In the last 52 weeks, the stock is up 90.51%. There are 469.14 million shares outstanding with a Float of 458.44 million. Insiders own 3.08% of the stock. Institutions have 66.10%. There's a dividend of $1.12 for a yield of 2%. Last ex-dividend date was February 11 with a Dividend date of February 28.

Aflac took a bad tumble in late 2008 to early 2009 but then bounced right back. Earnings are set to jump markedly this year (up 36.5%) and continue growing. New products are selling well. And if the U.S. economy continues to improve and hiring shows strength, look for all these good numbers to be revised higher.

- Company Web site: www.aflac.com

- Ted Allrich