Aflac Inc. has entered into an agreement with Goldman, Sachs & Co. to repurchase $825 million worth of shares of Aflac stock, the Columbus-based company announced today.
Aflac has paid the New York City-based investment bank $825 million for a variable number of shares throughout the term of the agreement. Aflac used internal capital to fund the repurchased shares, which will be held in treasury.
Goldman Saches will give shares to Aflac in December 2008 and January 2009. The agreement ends in February 2009, which is when the final settlement will happen.
"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," Dan Amos, Aflac chairman and chief executive officer, said in a statement. "Furthermore, using internal capital to purchase our shares reflects our confidence in Aflac's overall financial position."
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Aflac had previously announced its share repurchase authorizations by its board of directors, and this repurchase is a part of that.
As of today, Aflac had 43.1 million shares available for purchase.