Aflac stung by the horror show that is its "investment" portfolio....(AFL)

Shares of insurer Aflac (AFL) fell 5.3% today (and another 1% after hours so far..) after they disclosed on their quarterly conference call that they had about $1.75billion exposed to Greek and Portuguese banks.  Greece of course was cut to junk yesterday.

From Bloomberg:

Aflac has about $1 billion in Greek bank bonds and $750 million issued by Portuguese lenders, Chief Investment Officer Jerry Jeffery said in a conference call today. The insurer also holds about $285 million in Greek sovereign bonds, Jeffery said.     Greece is waiting on word of a 45 billion-euro ($59 billion) rescue package from the European Union and the International Monetary Fund after the nation’s credit rating was cut to junk by Standard & Poor’s yesterday. The ratings firm lowered its rating on Greece by three levels to BB+ from BBB+ and warned that investors could recover as little as 30 percent of their initial outlay if it restructures its debt.

Portugal isn't quite "there yet," but a look at credit protection costs doesn't inspire confidence...

(From CMA Datavision)

You name a problem country, and Aflac is ALL OVER IT.  You can download the entire fixed income portfolio here, but I put together some of the worst offenders in their portfolio below.  Oh and just to add insult to injury, they face a major write-down on their investment in IKB, the yield-hungry bank on the "idiot-side" of the transaction that landed Goldman Sachs in hot water:

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