The successful passage of tax reform is enabling Aflac Inc. to boost its U.S. investments by about $250 million over three to five years, the carrier announced last week.
Starting in 2018, the Columbus, Georgia-based U.S. unit of the Japanese company will enhance workforce benefits, make strategic investments in U.S. operations and increase philanthropic giving.
Aflac will increase the company's 401(k) match, from 50 percent to 100 percent on the first 4 percent of employee contribution, while making a one-time contribution of $500 to every employee's 401(k) plan. The carrier will also offer certain hospital and accident insurance products to all employees free of charge, as Aflac currently does with its core cancer insurance product.
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Moreover, the anticipated tax savings will enable Aflac to invest more capital into its U.S. operations, which includes expanding employee benefits and training programs. The carrier will also expand its investments in technology and digital businesses like Empowered, a company based in North Carolina and owned by Aflac, which recently expanded its office space to accommodate growth.
Aflac will also use its tax savings to boost its philanthropic giving to childhood cancer programs.
"We are pleased that these tax reforms provide Aflac with an opportunity to increase our investments in initiatives that reflect our company values; providing for our employees in the long and short term, ensuring future growth for our company and giving back to the community," says Aflac Chairman and CEO Dan Amos.
"We will use these funds to help secure healthy retirements, develop employee skills in an evolving global business climate, and provide additional protections for our workers and their families," Amos says. "At the same time, we will strategically invest in growing our business, while increasing our commitment to children and families facing childhood cancer."
In October, Aflac posted a $716 million profit for the third quarter, and throughout the year, its shares have climbed month after month, trading at $87.96 Thursday afternoon, according to the Columbus Ledger-Enquirer. The carrier's announcement on Thursday confirms the GOP's belief that the reduction in the corporate tax rate from 35 percent to 21 percent will lead companies to redirect that money to grow their businesses, the newspaper writes.
"The decision to invest the $250 million is a direct result of the tax reform, although its not unlike Aflac to invest in its employees," Aflac spokesperson Jon Sullivan told Columbus Ledger-Enquirer.
Sullivan added that Aflac has been named one of Fortune magazine's 100 Best Companies to Work for in America for 19 consecutive years.
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
