COLUMBUS, Ga._Insurer Aflac Inc. said Wednesday its second-quarter net income fell 35 percent because of larger-than-usual investment losses.

The company also announced plans to acquire Continental American Insurance Co. for $100 million and declared a third-quarter dividend of 28 cents a share.

For the quarter that ended June 30, Aflac reported net income of $314 million, or 67 cents a share, compared with $483 million, or $1 per share, in the year-earlier quarter.

The most recent results included after-tax realized investment losses of $249 million, or 53 cents a share. In the second quarter of 2008, Aflac had realized investment losses of $1 million, or nil per share.

Revenue essentially was unchanged at $4.31 billion, compared with $4.34 billion.

Analysts surveyed by Thomson Reuters had predicted earnings of $1.14 a share on revenue of $4.68 billion. Analyst estimates typically exclude one-time items.


"Despite the very challenging global economic environment, I continue to be pleased with our overall financial performance so far this year," said Daniel Amos, chairman and chief executive officer.

For 2009, Aflac reaffirmed its guidance of an increase of 13 percent to 15 percent in operating earnings.

Aflac said it will finance the acquisition of the privately owned Continental American with internal capital and the purchase is expected to close in the fourth quarter.

Continental American, based in Columbia, S.C., specializes in voluntary group insurance products distributed by insurance brokers at worksites.

Aflac said the dividend of 28 cents per share is payable on Sept. 1 to shareholders of record on Aug. 19.

The results were released after the market closed. In after-hours trading, shares fell 5 cents to $35.40. Shares of Aflac closed the regular session at $35.45, down $1.15, or 3.1 percent.