) launched Aflac Benefits Solutions ("ABS") with an intention of
offering specialized services to major brokerage firms.
The subsidiary is based in Atlanta. ABS will provide the service
with the help of business developers who are experienced in the
field, along with consultants, strategic account marketers and
account service executives, in order to augment the current support
ABS is designed to enhance the services provided to regional and
mid-tier brokerage firms. In the current dynamic scenario of
continuous change in health insurance benefits, brokers need
support services to help employers withstand challenges. ABS, with
the help of Alfac's array of group and individual products and
initiatives will offer support services to brokers.
ABS will assist the brokers with knowledge regarding the
industry, and help them to with the know-how regarding voluntary
benefits products and services, and also offering effective
marketing and enrollment guidance.
We believe that the opening of an entirely separate unit to
focus on providing support service to brokers will augment Alfac's
presence in the market. This in turn will help the company write
new business, thus aiding its profitability.
Alfac on a stronger yen/dollar exchange rate and higher
investment income related to portfolio de-risking, delivered a
strong first quarter with operating earnings outpacing both the
Zacks Consensus Estimate and the year-ago earnings.
The company has guided 2012 earnings in the band of $6.46-6.65
per share and expects earnings growth to improve further in 2013.
The Zacks Consensus Estimate for 2012 and 2013 is currently pegged
at $6.54 and $6.87 respectively.
We retain our long term Neutral recommendation on Alfac. The
quantitative Zacks #3 Rank (short term Hold rating) for the company
indicates no clear directional pressure on the stock over the near
Headquartered in Columbus, Georgia, Aflac, through its
subsidiary provides supplemental health and life insurance.
AFLAC INC (AFL): Free Stock Analysis Report
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