Aflac Completes Acquisition of Argus Holdings, LLC

COLUMBUS, Ga., Nov. 7, 2019 /PRNewswire/ -- Aflac Incorporated (NYSE: AFL) announced today that it has completed its acquisition of Florida-based Argus Holdings, LLC and its subsidiary Argus Dental & Vision, Inc. (Argus), a premier benefits organization and national network dental and vision company.    

"It is an exciting time for Aflac, our customers and our producers. We are thrilled Argus has joined forces with Aflac to advance our vision of being the number one distributor of benefit solutions to the U.S. workforce," said Teresa L. White, president of Aflac U.S. "Aflac's expansion into network dental and vision further positions us to offer more choices than ever before."

Argus was founded by its President and CEO Nicholas M. Kavouklis, D.M.D. in 2006. The company services nearly one million dental and vision members, providing benefits management solutions to Medicare Advantage, Medicaid, and Children's Health Insurance Program (CHIP) carriers. In addition, the company offers both group and individual network dental and vision insurance plans to employers and individuals. Argus has an established national footprint, serving as a Third-Party Administrator (TPA) in 48 states. Argus will remain under the continued leadership of Dr. Nicholas M. Kavouklis.

As communicated when announced in July 2019, the transaction will not alter Aflac Incorporated's earnings or capital management outlook for 2019, including share repurchase guidance of $1.3 to $1.7 billion for 2019. The acquisition is not expected to impact Aflac U.S. financial guidance for 2019.

Argus President and CEO Dr. Nicholas M. Kavouklis said: "I'm excited that Tampa, Fla., will be the home for the new Aflac U.S. Network Dental and Vision platform. We are enthused to join the Aflac family and look forward to growing the Aflac U.S. Network Dental and Vision business."

Richard L. Williams Jr., executive vice president and chief distribution officer of Aflac U.S., added, "Aflac was founded on the straightforward principle of helping provide our policyholders with financial protection and solutions that benefit their lives. The expansion of Aflac's product portfolio into network dental and vision moves us to the front page of the benefit enrollment process for employees. From there, we believe Aflac's powerful brand and wide-reaching distribution will boost our access and opportunities to provide more solutions to producers and policyholders."

About Aflac Incorporated
Aflac Incorporated (NYSE: AFL) is a Fortune 500 company, helping provide protection to more than 50 million people through its subsidiaries in Japan and the U.S., where it is a leading supplemental insurer by paying cash fast when policyholders get sick or injured. For more than six decades, insurance policies of Aflac Incorporated's subsidiaries have given policyholders the opportunity to focus on recovery, not financial stress. Aflac Life Insurance Japan is the leading provider of medical and cancer insurance in Japan where it insures 1 in 4 households. Through its trailblazing One Day Pay^SM initiative in the United States, for eligible claims, Aflac can process, approve and electronically send funds to claimants for quick access to cash in just one business day. For 13 consecutive years, Aflac has been recognized by Ethisphere as one of the World's Most Ethical Companies. In 2018, Fortune magazine recognized Aflac as one of the 100 Best Companies to Work for in America for the 20th consecutive year and in 2019 Fortune included Aflac on its list of World's Most Admired Companies for the 18th time. To find out more about One Day Pay^SM and learn how to get help with expenses health insurance doesn't cover, get to know us at aflac.com.

Forward-looking Information
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. The company desires 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," "outlook" 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.

The company cautions 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:

• events related to the ongoing Japan Post investigation
• difficult conditions in global capital markets and the economy
• exposure to significant interest rate risk
• concentration of business in Japan
• foreign currency fluctuations in the yen/dollar exchange rate
• limited availability of acceptable yen-denominated investments
• U.S. tax audit risk related to conversion of the Japan branch to a subsidiary
• deviations in actual experience from pricing and reserving assumptions
• ability to continue to develop and implement improvements in information technology systems
• competitive environment and ability to anticipate and respond to market trends
• ability to protect the Aflac brand and the Company's reputation
• ability to attract and retain qualified sales associates, brokers, employees, and distribution partners
• interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality or privacy of sensitive data residing on such systems
• failure to comply with restrictions on patient privacy and information security
• extensive regulation and changes in law or regulation by governmental authorities
• tax rates applicable to the Company may change
• defaults and credit downgrades of investments
• decline in creditworthiness of other financial institutions
• significant valuation judgments in determination of amount of impairments taken on the Company's investments
• subsidiaries' ability to pay dividends to the Parent Company
• decreases in the Company's financial strength or debt ratings
• inherent limitations to risk management policies and procedures
• concentration of the Company's investments in any particular single-issuer or sector
• differing judgments applied to investment valuations
• ability to effectively manage key executive succession
• catastrophic events including, but not necessarily limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, terrorism or other acts of violence, and damage incidental to such events
• changes in accounting standards
• increased expenses and reduced profitability resulting from changes in assumptions for pension and other postretirement benefit plans
• level and outcome of litigation
• allegations or determinations of worker misclassification in the United States

Analyst and investor contact - David A. Young, 706.596.3264, 800.235.2667 or dyoung@aflac.com

Media contact - Catherine H. Blades, 706.596.3014; FAX: 706.320.2288 or cblades@aflac.com

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SOURCE Aflac Incorporated