AFL AFLAC Inc

A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and the issuer credit ratings (ICR) of "aa" of American Family Life Assurance Company of Columbus (Aflac) (NYSE:AFL) (Omaha, NE), American Family Life Assurance Company of Columbus (Japan Branch) and its wholly-owned subsidiary, American Family Life Assurance Company of New York (Aflac NY) (New York, NY). Concurrently, A.M. Best has affirmed the debt ratings of "a" of all of AFLAC, Inc.'s. (Columbus, GA) outstanding debt. In addition, A.M. Best has assigned a debt rating of "a" to AFLAC, Inc.'s shelf registration. The outlook for all ratings is stable. (See below for a detailed list of the ratings.) These ratings reflect Aflac's favorable capitalization, strong statutory and GAAP profitability, its dominant position in Japan and its leading position in the United States. Aflac continues to maintain a leading market position within its product niches, primarily the supplemental health market segment, led by its cancer insurance product. The company has been able to successfully grow its surplus position over the past several years despite the payment of sizeable stockholder dividends and its debt service requirements. Aflac's brand name recognition, well-established distribution relationships and focused marketing approach have contributed to its success. The ratings also recognize further improvement in U.S. sales and modest recovery in interest rates in both the United States and Japan. A.M. Best will continue to monitor Aflac's efforts to reduce its product and geographic concentrations. A.M. Best will also monitor the potential challenges to Aflac's position in Japan, given the increased competition and continued low interest rate environment. The FSR of A+ (Superior) and the ICRs of "aa" have been affirmed for American Family Life Assurance Company of Columbus and its following subsidiaries: -- American Family Life Assurance Company of Columbus (Japan Branch) -- American Family Life Assurance Company of New York The following debt ratings have been affirmed: -0- *T AFLAC, Inc.-- -- "a" on $450 million 6.5% senior unsecured notes, due 2009 (Yen-Denominated Samurai Notes) -- "a" on JPY 30 billion 0.96% senior unsecured notes, due 2007 -- "a" on JPY 40 billion 0.71% senior unsecured notes, due 2010 *T The following indicative rating has been assigned for debt securities available under the existing shelf registration: -0- *T AFLAC, Inc.-- -- "a" on senior unsecured debt *T For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.