Insurers (HIG), (AFL) (PRU) Drop on Japan Exposure

Insurance companies with strong exposure in Japan have been pressured today, as the markets are weighing the Japan play more than any other factor, for obvious reasons, as shares of Hartford Financial Services Group Inc. (HIG), Aflac Inc. (AFL) and Prudential Financial Inc. (PRU) were all down today by about 3 percent of more.

Concerns were over the death claims to the unknown exposure to cancer claims from the damage to nuclear facilities.

Even so, Credit Suisse (NYSE:CS) said, “The financial implications for U.S. life insurers with large Japanese operations are not likely to be material to annual earnings or capital.” Long-term issues are probably more the risk, although it's unclear if there is any exposure at this time to radioactivity in any meaningful numbers, as far as measured by financial risk.

Credit Suisse did add that the insurers could face the “potential for elevated hospitalization claims and given concerns over damaged nuclear plants, elevated cancer claims over the next few years.”

Aflac, which has by far the most exposure in Japan of American insurers, said, “As we look to the remainder of 2011, we expect Aflac Japan sales will only be minimally impacted by these events. Our earnings guidance for the year remains unchanged.”

Prudential was trading at $61.19, down $1.91, or 3.03 percent, as of 2:43 PM EDT. Aflac was trading at $53.60, falling $1.95, or 3.51 percent. Hartford was at $26.78, down $0.82, or 2.97 percent.