COLUMBUS, Ga., Aug. 26 /PRNewswire-FirstCall/ -- Aflac Incorporated (NYSE:
AFL) announced today that it has entered into an agreement with Goldman, Sachs
& Co. to repurchase Aflac's common shares. Aflac has paid Goldman Sachs $825
million to buy a variable number of shares throughout the term of the
agreement. Goldman Sachs will deliver shares to Aflac in December 2008 and
January 2009, with final settlement occurring upon termination of the
agreement in February 2009. Aflac is acquiring these shares as a part of
previously announced share repurchase authorizations by its board of
directors. Aflac had 43.1 million shares available for purchase as of today's
announcement. The repurchase was funded with internal capital, and the
repurchased shares will be held in treasury.
Commenting on the announcement, Chairman and Chief Executive Officer
Daniel P. Amos stated: "The decision to enter into this agreement is
consistent with our long-held view that the repurchase of our shares is a very
attractive use of excess capital. Furthermore, using internal capital to
purchase our shares reflects our confidence in Aflac's overall financial
position. Despite the turmoil of today's capital markets, the overall credit
profile of our investment portfolio is very favorable, and our capital
adequacy ratios in the United States and Japan remain strong. In addition to
our confidence in Aflac's balance sheet strength, we continue to believe we
are well-positioned to achieve our objectives for earnings per share growth.
We expect to achieve our goal for 2008 of a 14% to 15% increase in operating
earnings per share, excluding the impact of foreign currency. Our objective
for 2009 is to increase operating earnings per share 13% to 15%, excluding the
impact of foreign currency. With the timing of the repurchase under this
agreement occurring in late 2008 and early next year, we are even more
confident we will achieve next year's earnings objective."
For more than 50 years, Aflac products have given policyholders the
opportunity to direct cash where it is needed most when a life-interrupting
medical event causes financial challenges. Aflac is the number one provider of
guaranteed-renewable insurance in the United States and the number one
insurance company in terms of individual insurance policies in force in Japan.
Our insurance products provide protection to more than 40 million people
worldwide. Aflac has been included in Fortune magazine's list of America's
Most Admired Companies for seven years and in Fortune magazine's list of the
100 Best Companies to Work For in America for ten consecutive years. Aflac has
been recognized three times by both Fortune magazine's list of the Top 50
Employers for Minorities and Working Mother magazine's list of the 100 Best
Companies for Working Mothers and has also been included in Ethisphere
magazine's list of the World's Most Ethical Companies for two consecutive
years. Aflac Incorporated is a Fortune 500 company listed on the New York
Stock Exchange under the symbol AFL. To find out more about Aflac, visit
aflac.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" to encourage companies to provide prospective information, so long as
those informational statements are identified as forward-looking and are
accompanied by meaningful cautionary statements identifying important factors
that could cause actual results to differ materially from those included in
the forward-looking statements. We desire to take advantage of these
provisions. This document contains cautionary statements identifying important
factors that could cause actual results to differ materially from those
projected herein, and in any other statements made by company officials in
communications with the financial community and contained in documents filed
with the Securities and Exchange Commission (SEC).
Forward-looking statements are not based on historical information and
relate to future operations, strategies, financial results or other
developments. Furthermore, forward-looking information is subject to numerous
assumptions, risks, and uncertainties. In particular, statements containing
words such as "expect," "anticipate," "believe," "goal," "objective," "may,"
"should," "estimate," "intends," "projects," "will," "assumes," "potential,"
"target" or similar words as well as specific projections of future results,
generally qualify as forward-looking. Aflac undertakes no obligation to update
such forward-looking statements. We caution readers that the following
factors, in addition to other factors mentioned from time to time could cause
actual results to differ materially from those contemplated by the forward-
looking statements: legislative and regulatory developments, including changes
to health care and health insurance delivery; assessments for insurance
company insolvencies; competitive conditions in the United States and Japan;
new product development and customer response to new products and new
marketing initiatives; ability to attract and retain qualified sales
associates and employees; ability to repatriate profits from Japan; changes in
U.S. and/or Japanese tax laws or accounting requirements; credit and other
risks associated with Aflac's investment activities; significant changes in
investment yield rates; fluctuations in foreign currency exchange rates;
deviations in actual experience from pricing and reserving assumptions
including, but not limited to, morbidity, mortality, persistency, expenses and
investment yields; level and outcome of litigation; downgrades in the
company's credit rating; changes in rating agency policies or practices;
subsidiary's ability to pay dividends to the parent company; ineffectiveness
of hedging strategies; catastrophic events; and general economic conditions in
the United States and Japan, including increased uncertainty in the U.S. and
international financial markets.
(Logo: http://www.newscom.com/cgi-bin/prnh/20041202/CLTH019LOGO )
Analyst and investor contact - Kenneth S. Janke Jr., 800.235.2667 - option
3, FAX: 706.324.6330, or kjanke@aflac.com
Media contact - Laura Kane, 706.596.3493, FAX: 706.320.2288, or
lkane@aflac.com
SOURCE Aflac Incorporated
08/26/2008
/CONTACT: Analysts and investors, Kenneth S. Janke Jr., +1-800-235-2667,
option 3, +1-706-324-6330 fax, kjanke@aflac.com, or Media, Laura Kane,
+1-706-596-3493, +1-706-320-2288 fax, lkane@aflac.com/
/Web site: http://www.aflac.com /