Aflac’s prospects better than what some assume-Barron’s

NEW YORK, July 25 (BestGrowthStock) – Insurer Aflac Inc’s (AFL.N: )
financial holdings may be a lot safer than some skeptics fear,
Barron’s reported in its July 26 edition.

Concerns about the company’s investments in the debt and
other securities of European banks may have gone too far, the
financial paper said quoting analysts and investors in the
world’s largest seller of supplemental disability insurance.

Aflac has $9 billion of shareholder equity, $1.5 billion of
excess regulatory capital, and sufficient cash flow to absorb
future writeoffs, the paper said.

Also, Aflac’s exposure to Germany’s Hypo Real Estate, one
of seven banks that European regulators said Friday would have
to raise capital to weather a future crisis, is small,
representing just 0.34 percent of the insurer’s $73 billion
investment portfolio, the paper said.

“Skeptics would do well to focus on the portfolio’s three
major strengths,” the paper said, adding Aflac was well-
diversified by position. Also it is invested mostly in
long-term debt and has little liquidity risk, Barron’s pointed
out.

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(Reporting by Dhanya Skariachan)

Aflac’s prospects better than what some assume-Barron’s