) has launched an enhanced group short-term disability insurance
product to protect employees from losses due to short-term
The new product features increased disability benefits, optional
benefits for pre-existing conditions, and optional limited
benefits for mental illness and alcoholism/drug addiction. The
new insurance product also offers the benefit of higher income
replacement coverage, increase in maximum benefit, lowered
minimum-hours requirement, lowered minimum-income requirement as
well as waiver of premium.
Individuals can face shot-term disability anytime. This will not
only result in loss of income but also increase medical costs.
The new product offering will thus help individuals remain
insulated during such time by providing alternative income as
well as partial disability benefits.
According to the Social Security Administration, more than 25%
of people aged 20 currently will be disabled before they reach
the age of 67. We expect Aflac's new offering to capitalize on
the opportunity and leverage premiums written by it.
Aflac focuses on designing new or enhancing its insurance
products. This helps individuals or groups in emergency and in
turn ensures a steady revenue stream for the company.
In the last reported quarter, Aflac delivered operating earnings
per share of $1.69. The reported result was ahead of the Zacks
Consensus Estimate by 4.3% but missed the year-ago earnings by
2.9%. The Zacks Consensus Estimate for the second quarter of 2013
is currently pegged at $1.51, reflecting a year-over-year decline
The estimate stands near the upper end of Aflac's
second-quarter guidance of $1.41-$1.56 per share. Aflac also
anticipates earnings to grow by 4%-7% or about $6.86-$7.06 per
share in 2013. However, the Zacks Consensus Estimate of $6.17 for
2013 lags the company guidance.
AFLAC INC (AFL): Free Stock Analysis Report
AMERISAFE INC (AMSF): Free Stock Analysis
EMPLOYERS HLDGS (EIG): Free Stock Analysis
STANCORP FNL CP (SFG): Free Stock Analysis
To read this article on Zacks.com click here.
Aflac carries a Zacks Rank 3 (Hold). Accident and health insurers
), carrying a Zacks Rank #1 (Strong Buy), and
Employers Holdings, Inc
StanCorp Financial Group Inc
) carrying a Zacks Rank #2 (Buy), are worth considering.