Aflac buys back 10.7M shares ahead of schedule

Aflac originally said it would pay $825 million to buy the shares from Goldman, with delivery scheduled for December and January and a final settlement in February.

The insurer said it will receive $141.8 million in unused funds associated with the original plan.

"Given the uncertainties in the market place, we felt it was best to take early delivery of the shares and terminate the agreement at this time," Chief Executive Daniel Amos said in a statement.

Shares of the company set a 52-week low of $51.25 on Monday as the broader markets sold off. The stock has since recovered and closed Thursday at $53.87, down $4.15, or 7.2 percent, on the day.

Aflac has now repurchased 23.2 million shares in 2008.

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.

Analysts surveyed by Thomson Reuters forecast earnings of $3.98 per share this year and $4.51 per share next year, on average, implying growth of about 13 percent year over year.

Aflac, whose quacking duck television commercials have made it a well-known brand, was founded in 1955 and sells insurance in the U.S. and Japan.