SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

On October 26, 2020, the Company entered into an agreement to purchase approximately $200 million in newly issued common stock of Trupanion, Inc., a provider of medical insurance for pets in the United States and Canada. The Company closed on approximately $60 million of this transaction on October 26, 2020. Subject to regulatory approvals and customary closing conditions, the remainder of this transaction is expected to close in the fourth quarter of 2020 and result in the Company owning approximately 9% of the outstanding common stock of Trupanion, Inc. The Company also announced that it has entered into an alliance agreement with Trupanion, Inc. to sell pet insurance on an exclusive basis in the United States, subject to certain exceptions, and to explore on an exclusive basis potential distribution opportunities for pet insurance in Japan.

In October 2020, Aflac U.S. made a $100 million contribution to the U.S. funded defined benefit plan.

In September 2020, the Company announced a voluntary separation program for certain U.S. employees. The program provides eligible employees with a severance package, including twelve months of salary, the employee's targeted bonus payout for 2020 and one year of Consolidated Omnibus Budget Reconciliation Act (COBRA) or retiree medical, if eligible. The volunteer period opened on September 15, 2020 and closed October 1, 2020. Employees accepted into this program were notified in October 2020 and the Company expects transitions to be completed by December 31, 2020. The Company expects to take a one-time severance charge related to the program in the fourth quarter of 2020 of approximately $45 million.