Aflac pays Goldman Sachs $825M to buy back shares

COLUMBUS, Ga.—Aflac Inc. said Tuesday it is paying Goldman, Sachs & Co. $825 million to buy back Aflac's common shares as the health and disability insurer reaffirmed its profit outlook.

Goldman Sachs Group Inc. will deliver shares to Aflac in December and January, with a final settlement in February.

Aflac is acquiring the shares as a part of previously announced repurchase plans.

Aflac had 43.1 million shares available for purchase as of Tuesday's announcement. The buyback plan was funded with internal capital.

"Using internal capital to purchase our shares reflects our confidence in Aflac's overall financial position," Aflac Chairman and CEO Daniel P. Amos said in a statement.

The company also said it still expects operating earnings, or earnings excluding investment gains and losses, to grow 14 to 15 percent on a per-share basis this year, excluding the impact of foreign currency. For 2009, it expects operating earnings per share to increase 13 to 15 percent on the same basis.

Aflac, whose quacking duck television commercials have made it practically a household name, was founded in 1955 and sells insurance in the U.S. and Japan.

Analysts surveyed by Thomson Reuters forecast earnings of $3.98 per share this year and $4.51 per share next year, on average.

Aflac shares fell 56 cents to $53.60 in regular trading, then added $1.13, or 2.1 percent to $54.73 in the extended after-hours session. Its stock is down nearly 14 percent in the year to date.