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

The ratings also reflect Aflac Incorporated Group’s continued strong operating margins in Japan and U.S. markets and return on equity remains very favorable. The earnings continue to be favorably impacted by lower benefits utilization in the U. S segment partially offset by higher administrative expenses. While both of Aflac’s operating segments historically have produced favorable results, the group continues to be challenged to reverse the trend of premium decline and grow new sales materially, due to the increasingly competitive market. The company continues to focus actively on client retention strategies, product enhancements and operational capabilities to meet evolving market demands and facilitate growth.

AM Best considers Aflac’s ERM management capabilities to be very strong, which is deeply embedded in the organization’s strategy and decision making and has positively impacted its balance sheet strength, operational performance and business profile. The ERM program has continued to demonstrate robust processes within its framework that are effective in identifying potential risks, managing those risks and mitigating them. AM Best’s assessment also includes an evaluation of the program’s risk defense capabilities of multiple exposures and has determined that most are managed with very high capabilities.

Aflac has also leveraged its risk management capabilities to maintain its favorable business profile in the Japan market and management has made numerous investments in its U.S. market businesses to well position the company to grow product premium over the next few years. The company is the leader in providing both medical and cancer insurance in Japan, and its strong partnership with Japan Post solidifies its standing as a formidable competitor in that market. In the U.S. market, Aflac continues to be a leader in supplemental medical insurance space.

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

Aflac Incorporated—
-- “a” (Excellent) on USD 750 million, 3.625% senior unsecured notes, due 2024
-- “a” (Excellent) on USD 450 million, 3.25% senior unsecured notes, due 2025
-- “a” (Excellent) on JPY 12.4 billion, 0.3% senior unsecured notes, due 2025
-- “a” (Excellent) on USD 300 million, 2.875% senior unsecured notes, due 2026
-- “a” (Excellent) on USD 400 million, 1.125% senior unsecured notes, due 2026
-- “a” (Excellent) on JPY 60 billion, 0.932% senior unsecured notes, due 2027
-- “a” (Excellent) on JPY 12.6 billion, 0.5% senior unsecured notes, due 2029
-- “a” (Excellent) on JPY 33.4 billion, 1.075% senior unsecured notes, due 2029