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
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Related links:
http://www.aflac.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20041202/CLTH019LOGO
AP Archive: http://photoarchive.ap.org PRN Photo Desk
photodesk@prnewswire.com
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
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