Aflac Incorporated to Accelerate Share Repurchase in 2008; Authorizes Additional Share Repurchase and Increases Quarterly Cash D
January 29 2008 - 4:07PM
PR Newswire (US)
COLUMBUS, Ga., Jan. 29 /PRNewswire-FirstCall/ -- Aflac Incorporated
(NYSE:AFL) announced today that it intends on conducting an
accelerated repurchase of approximately 12 million shares of its
common stock in the first quarter of 2008. This accelerated share
repurchase will be funded with internal capital. (Logo:
http://www.newscom.com/cgi-bin/prnh/20041202/CLTH019LOGO ) To
provide for future share repurchase activities, the board of
directors today authorized the purchase of up to an additional 30
million shares of its common stock. This authorization is in
addition to the 25.6 million shares that remained under a previous
authorization as of December 31, 2007, bringing the total number of
shares available for purchase to 55.6 million. The board of
directors also approved a 17.1% increase in the quarterly cash
dividend, effective with the first quarter payment. The first
quarter dividend of $.24 per share is payable on March 3, 2008, to
shareholders of record at the close of business on February 20,
2008. Commenting on the news, Chairman and Chief Executive Officer
Daniel P. Amos stated: "I am very pleased with today's actions by
our board of directors. These steps are consistent with our
intention of deploying excess capital in a manner that benefits our
shareholders, while still maintaining very strong capital adequacy
ratios to support our ratings. "In addition to accelerating our
planned annual repurchase of 12 million shares, we also anticipate
buying more shares later in the year, depending on market
conditions. Purchasing 12 to 18 million shares this year gives us
greater confidence in achieving the high end of our 13% to 15%
range for operating earnings per share growth for 2008. We will
also be better positioned to extend our lengthy record of strong
earnings growth into 2009. I remain focused on increasing operating
earnings per share by at least 15%, excluding the impact of the
yen, through 2009, which will mark my first 20 years as CEO. I
still believe that goal is achievable, and I continue to believe we
are poised for strong growth beyond 2009 as well. "I am also
pleased with the increase in our cash dividend. Aflac's annual cash
dividend payment to shareholders has compounded at 21.7% annually
over the last 10 years. This increase marks the 26th consecutive
year in which we have raised the dividend payment. I believe the
combination of strong earnings growth and increasing cash dividends
is an effective means for enhancing value to Aflac's shareholders."
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 listing of
America's Most Admired Companies for seven consecutive years and in
Fortune magazine's list of the 100 Best Companies to Work For in
America for ten consecutive years. Aflac has also been recognized
three times by both Fortune magazine's listing of the Top 50
Employers for Minorities and Working Mother magazine's listing of
the 100 Best Companies for Working Mothers. 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
http://www.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; 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 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.
Analyst and investor contact -- Kenneth S. Janke Jr., 800.235.2667
-- option 3, FAX: 706.324.6330, or Media contact -- Laura Kane,
706.596.3493, FAX: 706.320.2288, or
http://www.newscom.com/cgi-bin/prnh/20041202/CLTH019LOGO
http://photoarchive.ap.org/ DATASOURCE: Aflac Incorporated CONTACT:
Analysts and Investors, Kenneth S. Janke Jr., +1-800-235-2667,
option 3, fax: +1-706-324-6330, , or Media, Laura Kane,
+1-706-596-3493, fax: +1-706-320-2288, , both of Aflac Incorporated
Web site: http://www.aflac.com/
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