AFLAC and the Japanese Earthquake

Like you, I’m in shock by the news of the devastating earthquake in Japan. I can’t even imagine what an 8.9 quake is like. I was completely unraveled when a 3.6 quake hit DC last year.

My first thoughts turn to the injured and deceased and their families. If anything, I’m surprised that the loss of life hasn’t been greater. I think that speaks well of the orderliness of Japanese citizens. Since we talk about finance around here, I should comment on the financial implications of this disaster.

Naturally, AFLAC is going to be affected. The stock opened down 3.2% but it seems to have recovered a little bit. The stock is currently down 1.2%.

The WSJ got hold AFLAC’s CEO:

Aflac Inc. Chief Executive Dan Amos said Japan will bounce back quickly if the nation’s actions after the 1995 Kobe earthquake are any guide.

“I believe within a short period of time they will recover,” Mr. Amos said in a telephone interview on CNBC. Aflac, which sells supplemental health and life insurance, does a majority of its business in Japan. Mr. Amos said Aflac wasn’t exposed to property claims.

Update: Saner heads prevailed. AFL lost just 15 cents today.

Posted by on March 11th, 2011 at 11:01 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.