A.M. Best Affirms Ratings of Aflac, Inc. and Its Subsidiaries
May 14 2008 - 10:24AM
Business Wire
A.M. Best Co. has affirmed the financial strength rating (FSR) of
A+ (Superior) and issuer credit ratings (ICR) of �aa� of American
Family Life Assurance Company of Columbus (Aflac) (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 ICR of �a� and debt ratings of �a� on all the
outstanding debt of the ultimate parent, Aflac, Inc. (Columbus, GA)
[NYSE:AFL]. The outlook for all ratings is stable. (See below for a
detailed list of the companies and ratings.) Aflac�s ratings
reflect its solid financial performance with strong capitalization,
continued favorable statutory and GAAP operating results, its
dominant position in Japan, combined with its leading market
position in the supplemental health market in the United States.
The company has successfully grown its surplus position over the
past several years despite the payment of sizeable stockholder
dividends. Aflac�s brand name recognition, well-established
distribution relationships and focused marketing approach have
contributed to its success. During 2008, the company established
new distribution arrangements in the banking and Japanese postal
channels, which should further benefit sales going forward. A.M.
Best also will monitor the potential challenges to Aflac�s position
in Japan, given that the market is crowded with competing medical
products, and the continued relatively low but modestly improved
interest rate environment. Furthermore, the ongoing Japanese
regulatory investigation of all companies selling medical products
in Japan remains unresolved. The FSR of A+ (Superior) and 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: Aflac, Inc.� -- �a� on $450 million 6.5% senior unsecured
notes, due 2009 (JPY-Denominated Samurai Notes) -- �a� on JPY 40
billion 0.71% senior unsecured notes, due 2010 -- �a� on JPY 30
billion 1.87% senior unsecured notes, due 2012 (JPY-Denominated
Uridashi Notes) -- �a� on JPY 15 billion 1.52% senior unsecured
notes, due 2011 -- �a� on JPY 10 billion 2.26% senior unsecured
notes, due 2016 -- �a� on JPY 20 billion variable interest rate
senior unsecured notes, due 2011 The following indicative rating
has been affirmed for securities available under the existing shelf
registration: Aflac, Inc.� -- �a� on senior unsecured 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. Founded in 1899, A.M. Best Company is a
global full-service credit rating organization dedicated to serving
the financial and health care service industries, including
insurance companies, banks, hospitals and health care system
providers. For more information, visit www.ambest.com.
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