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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 02, 2016 02:09 PM (EST)
A.M. Best has commented that the Financial Strength Rating and the Long-Term Issuer Credit Ratings of American Family Life Assurance Company of Columbus (Omaha, NE), American Family Life Assurance Company of Columbus (Japan Branch), American Family Life Assurance Company of New York (Albany, NY) and Continental American Insurance Company (Continental American) (Columbia, SC) remain unchanged following the recently announced organizational restructuring. These companies represent the life/health insurance subsidiaries of Aflac Incorporated (Aflac) (Columbus, GA) [NYSE: AFL]. The outlook of these Credit Ratings remains stable.
The comment follows Aflac’s publicly disclosed intent to pursue the conversion of its Japan Branch operations to a Japan insurance subsidiary over the course of the next twenty-four months. The conversion is expected to provide greater legal and regulatory transparency, as well as enhance business development opportunity, reduce strategic risk and improve cash flows and capital management within the organizational structure. A.M. Best believes that there will not be a material impact to operations in either the United States or Japan during the conversion process. Additionally, it is anticipated that there will be little impact to financial leverage, interest coverage, cash flow or liquidity. A.M. Best will closely monitor the execution of the Japan Branch conversion as the key milestones are achieved.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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