Aflac Hit With $21 Million PG&E Loss; Kirsch Sticks With Bet

(Bloomberg) -- U.S. insurer Aflac Inc. emerged as the latest company to be affected by the bankruptcy of California utility giant PG&E Corp.

Aflac took a $21 million credit impairment from PG&E bonds as of Dec. 31 because it holds about $147 million in the San Francisco-based power company, which filed this week for Chapter 11 bankruptcy as it faces $30 billion in wildfire liabilities. PG&E shares have plunged by more than 70 percent since November, as its equipment was suspected of causing the deadliest wildfire in California history.

“This story will take time to sort out,” Eric Kirsch, Aflac’s global chief investment officer, told analysts Friday. “We currently believe holding our position through the bankruptcy process will provide the best economic outcome.”

©2019 Bloomberg L.P.