Continuing with our defensive stock series: given the current choppy / consolidating markets (or perhaps worse), Aflac (NYSE: AFL) is an insurance play that undoubtedly will add stability to your portfolio.

Efficient Aflac provides supplemental health and life insurance in Japan and the U.S. that cover special conditions.

Aflac Japan's insurance policies help pay for costs not covered under Japan's national health care system. A well-known company in Japan, Aflac's U.S. strategy mirrors its Japan operations: identify relevant products, implement a time-tested distribution system, emphasize efficiency, and build brand awareness. In the U.S., brand awareness has been built via the "Aflac duck," a successful ad campaign featuring a courageous, perseverant duck. Aflac's shares were down 88 cents to $64.88 in Thursday afternoon trading.

The qualifiers: About 75% of AFL's earnings are yen-based, hence yen depreciation against the investor's home currency would lower the investor's real total return on equity.

(Note: Technical analysis agnostics stop reading here; all others continue.)

Technically, Aflac's chart looks strong. AFL's only recent, major breach of its 50-day moving average occurred during the August 2007 market sell-off, and the stock has been above its 200-day moving average for about a year. However, the stock recently moved substantially higher and is currently above the top Bollinger Band, which suggests the stock is overbought, short-term.

Stock Analysis: Aflac is a low-risk stock. If you don't already own a consumer product or insurance defensive stock, consider adding AFL to your portfolio. However, given AFL's recent jump, Buy AFL on a pull-pack to $58-$61 if the market presents the opportunity. Sell / stop loss: $42.