Aflac Incorporated acquisition history

In the fourth quarter of 2009 Aflac's parent company closed a $100 million purchase of Continental American Insurance Group, Inc. (CAIG) and its wholly owned subsidiary Continental American Insurance Company (CAIC), based in Columbia, South Carolina. After closing, CAIG was merged into a wholly owned LLC so that CAIC sat directly under the parent. The business combination added roughly $97 million of net assets at fair value, with only an immaterial amount of goodwill and intangibles recognized. CAIC was later branded as Aflac Group Insurance.

During the fourth quarter of 2009, the Parent Company closed its $100 million purchase of Continental American Insurance Group, Inc. (CAIG), which includes its wholly owned subsidiary CAIC. ... CAIC is headquartered in Columbia, South Carolina, and equips Aflac U.S. with a platform for offering attractive voluntary group insurance products that are well-suited for distribution by insurance brokers at the worksite.

Aflac acquired Empowered Benefits in 2015, a Charlotte, North Carolina technology company providing cloud-based benefits administration and enrollment/exchange platform solutions for carriers, brokers and employers. Aflac uses the platform to power its Everwell benefits program. The acquisition is one of the four Aflac U.S. business combinations Aflac cites as the source of its goodwill balance in the segment.

A significant majority of the goodwill balance is attributable to the following business combinations within the Aflac U.S. segment ... (ii) Empowered Benefits acquisition in 2015 ...

On December 19, 2018 Aflac Incorporated and Aflac Life Insurance Japan entered into a Basic Agreement on a "Strategic Alliance Based on Capital Relationship" with Japan Post Holdings Co., Ltd. Under the agreement Japan Post Holdings agreed to purchase, through a trust, roughly 7% of Aflac Incorporated's outstanding common shares in open-market and private block purchases in the United States, on a basis Aflac described as non-dilutive to shareholders. The alliance renewed the parties' commitment to Japan's cancer-insurance market, with Aflac's cancer products continuing to be sold through more than 20,000 Japan Post outlets and Japan Post Insurance sales offices, and contemplated further collaboration in product development, digital technology and asset management. Japan Post agreed to a shareholder agreement and would not gain rights to control or manage Aflac; the investment was subject to regulatory approvals expected in the second half of 2019. Approximately 7% equity stake in Aflac (dollar value not disclosed in filing).

Since initially forming our partnership with Japan Post Holdings in 2008, we have enjoyed continuing to develop our alliance with Japan Post Holdings and its subsidiaries. ... We believe Japan Post Holdings' strategic investment reflects the overall strength of the Aflac brand, our reputation for quality customer service, and the comprehensive support we provide to our customers, agents and alliance partners.

This strategic alliance aims to create sustained growth for both companies, and our investment in Aflac Incorporated reinforces our mutual economic interests.

In November 2019 Aflac acquired Argus Holdings, LLC and its subsidiary Argus Dental & Vision, Inc., a Florida-based benefits-management organization and national network dental and vision company, giving Aflac a platform for Aflac Dental and Vision within its U.S. segment. Aflac paid $75 million at closing and committed up to an additional $21 million in contingent consideration payable over three years based on Argus hitting performance targets. Argus is licensed as a third-party administrator in most U.S. jurisdictions and as a pre-paid limited health service organization in Florida, and served close to one million dental and vision members across Medicare Advantage, Medicaid and CHIP carriers. $75 million at closing plus up to $21 million contingent consideration over three years.

This strategic transaction is a perfect fit as we enhance our core supplemental products with the network dental and vision offerings of Argus to meet the needs of the market.

In November 2020 Aflac, through its insurance subsidiaries Aflac and Aflac New York, acquired Zurich North America's U.S. Corporate Life and Pensions (group benefits) business, consisting of group life, disability and absence-management products. Aflac and Aflac New York agreed to reinsure, on an indemnity basis, Zurich North America's U.S. in-force group life and disability policies, which carried annualized earned premium of over $100 million, and Aflac acquired the assets needed to support the group life and disability business along with an absence-management platform. Aflac's own newsroom described total consideration (including capital to support the business) as less than $200 million and the reinsured in-force annualized premium as approximately $120 million. Total consideration under $200 million; reinsured in-force policies of $100 million+ annualized earned premium (~$120 million per company disclosure).

In November 2020, the Company, through its insurance subsidiaries Aflac and Aflac New York, acquired Zurich North America's U.S. Corporate Life and Pensions business, which consists of group life, disability and absence management products.

We are excited as we welcome new team members to the Aflac family and enhance our value proposition to agents, brokers and employers.