FBR Capital Markets & Co., analyst Randy Binner says AFLAC Incorporated (AFL) has been “left for dead” by many investors because 75% of its business is focused on Japan and the yen has depreciated by about 50% versus the dollar over the last two years. But, Binner still recommends Aflac.
“I can’t help people with the yen piece, but we think that, through some reinsurance transactions, they are going to be able to hit buyback levels that are higher than the Street and that the sales of their products in Japan will continue to outperform,” Binner says.
FOR MORE INFORMATION ABOUT THIS INTERVIEW, CLICK HERE.
While Aflac is not as cheap on book value as Hartford (NYSE:HIG) or AIG (NYSE:AIG), Binner says it is trading at 10 to 11 times on earnings.
“Aflac is very profitable not only from what they can make on investment income, but also on their underwriting” he says. “It is a very predictable book of business.”
Affordable Care Act Expenses Create Opportunity for Aflac Incorporated (NYSE:AFL)
May 17, 2016
Tesla Motors Inc (TSLA) Shares Could Hit $400 in Next Year
June 29, 2015
Baker Hughes Incorporated (BHI) Faces Higher-Than-Average Operational Risk
January 07, 2015
Celldex Therapeutics (CLDX) More than Doubles in Less Than Nine Months: More to Come?
June 03, 2013
Dow Chemical Co (DOW) Increases Yield by 14% and Buyback by $5 Billion
December 12, 2014
