Aflac Completes Acquisition of Continental American Insurance Company
COLUMBUS, Ga., Oct. 1 /PRNewswire-FirstCall/ -- Aflac Incorporated (NYSE: AFL) announced today that it has completed its acquisition of Continental American Insurance Company (CAIC). The purchase of CAIC for $100 million was funded with internal capital.
Regarding this acquisition, President of Aflac and Chief Operating Officer of Aflac U.S. Paul S. Amos II said: "For nearly three decades, CAIC has developed an innovative product line that complements our current products very well. By adding CAIC's group policies to our roster of individually underwritten insurance offerings, we have positioned our sales force to serve a wider variety of customers and brokers with more choices than ever before.
"I'm looking forward to working with Chris Goodall. As CEO of CAIC, Chris has provided focused leadership that has benefited CAIC's employees and customers, and we believe his leadership will continue to benefit us as CAIC and Aflac join forces. CAIC shares Aflac's strong set of values, corporate culture and commitment to service. We anticipate a smooth transition, and once fully integrated, we expect that this purchase will modestly benefit 2010 consolidated earnings."
Originally founded as Carolina Continental Insurance Company in 1980, CAIC specializes in offering voluntary group insurance products that are distributed by insurance brokers at the worksite. CAIC is rated A- (Excellent) by A.M. Best. Based on statutory accounting statements filed with the state insurance departments, CAIC produced total revenues of $79 million and net income of $7 million in 2008. At the end of 2008, CAIC's admitted assets were $104 million and capital and surplus was $33 million. For reporting purposes under U.S. generally accepted accounting principles (GAAP), CAIC's future financial results will be consolidated into the Aflac U.S. reporting segment for Aflac Incorporated and subsidiaries.
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. As 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, Aflac insurance products provide protection to more than 40 million people worldwide. Aflac has been recognized by Ethisphere magazine as one of the World's Most Ethical Companies for three consecutive years and was also named by the Reputation Institute as the Most Reputable Company in the Global Insurance Industry for two consecutive years. In 2009 Fortune magazine recognized Aflac as one of the 100 Best Companies to Work For in America for the eleventh consecutive year. Fortune magazine also ranked Aflac No. 1 on its global list of the Most Admired Companies in the Life and Health Insurance category. Aflac appears on Hispanic Enterprise magazine's list of the 50 Best Companies for Supplier Diversity and on Black Enterprise magazine's list of the 40 Best Companies for Diversity. Aflac was also named by Forbes magazine as America's Best-Managed Company in the Insurance category. 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.
SOURCE: Aflac Incorporated
Analyst and investor contact:
Kenneth S. Janke Jr.
+1-800-235-2667 - option 3