AM Best Affirms Credit Ratings of Aflac Incorporated and Its Subsidiaries - Seite 2

Aflac is a leading provider of cancer and supplemental medical insurance in Japan and supplemental accident and health sales through the worksite market in the United States. The organization has been a leader in product innovation and customer service, working toward claims payment efficiency.

Aflac’s ERM program is supported by its well-established governance structure, along with culture and risk-management controls. Additionally, the organization completes various stress and scenario tests across its risks, and is adding to its embedded value model by developing more robust economic capital modeling capabilities.

The organization has taken several tactical steps to address the impact of the global COVID-19 pandemic, to include sensitivity and stress testing of capital and liquidity position, operational impacts, investment portfolio, issuance of debt and other measures. AM Best will continue to monitor its practices, as the organization shifts to a global risk management program.

Aflac’s insurance subsidiaries offer a diverse portfolio of supplemental health products in the United States and Japan. These products generate strong earnings and steady cash flows to the holding company, supporting its cash position and interest coverage measures. Aflac’s adjusted financial leverage was approximately 24.4%, with strong interest coverage ratios as well. AM Best notes that Aflac’s capitalization and liquidity provide financial flexibility and support for the overall enterprise and its operating entities.

The following Long-Term IRs have been affirmed with a stable outlook:

Aflac Incorporated—

-- “a-” on $700 million 3.625% senior unsecured notes, due 2023

-- “a-” on $750 million 3.625% senior unsecured notes, due 2024

-- “a-” on $450 million 3.25% senior unsecured notes, due 2025

-- “a-” on 12.4 billion JPY, 0.3% senior unsecured notes, due 2025

-- “a-” on $300 million 2.875% senior unsecured notes, due 2026

-- “a-” on 60 billion JPY, 0.932% senior unsecured notes, due 2027

-- “a-” on 12.6 billion JPY, 0.5% senior unsecured notes, due 2029

-- “a-” on 13.3 billion JPY, 0.55% senior unsecured notes, due 2030

-- “a-” on $1.0 billion, 3.6% senior unsecured notes, due 2030

-- “a-” on 29.3 billion JPY, 1.159% senior unsecured notes, due 2030

-- “a-” on 9.3 billion JPY, 0.843% senior unsecured notes, due 2031

-- “a-” on 20.7 billion JPY, 0.75% senior unsecured notes, due 2032

-- “a-” on 15.2 billion JPY, 1.488% senior unsecured notes, due 2033

-- “a-” on 9.8 billion JPY, 0.934% senior unsecured notes, due 2034