AFLAC U.S. reported financial results for the first quarter of 2013. Total revenues increased 3.9% to $1.4 billion in the first quarter. Premium income increased 4.0% to $1.3 billion, and net investment income was up 3.4% to $157 million. The pretax operating profit margin decreased slightly from 19.6% a year ago to 19.5%. Pretax operating earnings were $281 million, an increase of 3.6% for the quarter. Aflac U.S. total new annualized premium sales decreased 5.2% to $332 million. Additionally, persistency in the quarter was 74.7%, which was unchanged from a year ago.

The Missouri Insurance Department announced that American Family Life Assurance Company of Columbus, Inc. (AFLAC) entered into a multi-state settlement agreement regarding alleged market conduct violations including suitability and overselling, sales of duplicate coverage, advertising by agents, and incentives, contests, prizes and awards given to agents. AFLAC will pay a $700,000 fine to Missouri in addition to $700,000 in fines to Minnesota and $200,000 to Idaho. AFLAC also agreed to implement a plan to correct its business practices.

On June 28, 2012, AFLAC Inc., and American Family Life Assurance Company of Columbus entered into a 364-day senior unsecured revolving credit facility agreement in the amount of ¥50 billion with a syndicate of financial institutions, including Mizuho Corporate Bank Ltd. as administrative agent and lead arranger, Sumitomo Mitsui Banking Corporation as syndication agent, The Bank of Tokyo-Mitsubishi UFJ Ltd. as documentation agent, and certain other financial institutions as lenders. The Credit Agreement provides for borrowings in Japanese yen or the equivalent of Japanese yen in U.S. dollars on a revolving basis. Borrowings under the Credit Agreement may be used for general corporate purposes, including a capital contingency plan for the Japanese operations of the Borrowers. The Company will guarantee the payment and performance of all obligations of the Insurance Subsidiary under the Credit Agreement. The Credit Agreement will expire on the earlier of (a) June 27, 2013, or (b) the date of termination of the commitments upon an event of default." An event of default, as defined in the Credit Agreement, includes but is not limited to failure to pay amounts owed thereunder when due, a breach of a covenant, material inaccuracy of a representation, or the occurrence of insolvency proceedings, if not otherwise waived or cured.