Last night on stockspotter I received a signal to exit a previously recommended short position for Aflac (AFL). This trade earned 7.4% after 9 days. Now that the stock has been upgraded out of “short” I believe there is potential for an upswing in the coming months.
Aflac’s growth earlier this year was supported by higher premium income, modest investment yields, favorable dollar/yen exchange rate and improvement in the U.S. operations, which also drove operating ROE. However, higher claims and benefits due to the Japan catastrophe, lower-than-expected top line and higher investment losses partially negated the positives.
Also, the company has been strengthening its Japanese operations consistently. This has helped itself survive the catastrophe losses better than its peers. In addition, Aflac continued to be the number one seller of cancer and medical insurance policies in Japan throughout 2010.
Check out the video below for more about Aflac!
Additional Company Info: Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus (Aflac), provides supplemental health and life insurance. The company offers cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans, and annuities in Japan. It also offers accident/disability plans, cancer plans, short-term disability plans, sickness and hospital indemnity plans, hospital intensive care plans, fixed-benefit dental plans, vision care plans, long-term care plans, and life insurance products in the United States.