Aflac Shares Hit 7-Year Low On Fears Over European Securities
2009年1月23日 - 1:41AM
Dow Jones News
Shares of Aflac (AFL) dropped to their lowest level in seven
years Thursday after an analyst said the insurer's exposure to
hybrid securities issued by European banks, including Royal Bank of
Scotland Group PLC (RBS), is a "rapidly escalating concern."
Aflac shares fell 39% to $22.12 in morning trading after Morgan
Stanley analyst Nigel Dally told the firm's clients to avoid
Aflac's stock due to its $7.9 billion of exposure to securities
that have been sharply marked-down after European financial firms
announced large losses this week.
"If even a small portion of these losses are realized, the hit
to Aflac's capital ratios could be substantial, and their overall
capital adequacy could be significantly less than most investors
believe."
Dally said that securities issued by Royal Bank of Scotland,
which said Monday its losses last year could be the largest
corporate losses in the history of the U.K., and other European
banks have declined 30% or more, to in many cases well below 50
cents on the dollar.
An Aflac spokeswoman wasn't immediately available to comment.
The company is scheduled to report its fourth-quarter earnings on
Feb. 2.
-By Ed Welsch, Dow Jones Newswires; 201-938-5244;
edward.welsch@dowjones.com
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