A.M. Best Affirms "A+" (Superior) Rating on American Family Life Assurance Company of Columbus.OLDWICK, N.J.--(BUSINESS WIRE)--May 5, 1997--Effective immediately, A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the "A+" (Superior) rating on American Family American Family is a photographic artwork exhibition by Renée Cox. See also
AFLAC American Family Life Assurance Company of Columbus AFLAC Apologies For Lack of Audi Content (Audi listservs) ). The rating reflects the company's consistently strong earnings performance, exceptionally high-quality balance sheet and excellent liquidity and capitalization. It also recognizes the company's market leadership in the supplemental health arena in Japan (where it specializes in offering cancer policies) and its continued growth in the U.S. individual supplemental accident and health market. The company is the largest provider of cancer coverage in Japan, enjoying a 90% market share. Offsetting these factors are the company's concentrated operational focus and the impact generally weak economic conditions and increased competition resulting from the gradual deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the Japanese insurance industry could have on AFLAC's future market position. A.M. Best believes numerous barriers to entry and its low-cost operations will help AFLAC maintain its strong market presence, although the company will face new competitive pressures as its significant market share may erode Erode (ĕrōd`), city (1991 urban agglomeration pop. 361,755), Tamil Nadu state, S India, on the Kaveri River. The city is located in a cotton-growing region, and its industries include cotton ginning and the manufacture of transport equipment. with deregulation. Although the extremely low interest rate environment in Japan could make it difficult to maintain profit margins, the Ministry of Finance in recent years has adopted more flexible guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , allowing the industry to adjust premium rates to reflect the true state of Japan's interest rate environment. Potential margin pressures in its Japan operations are mitigated by the status of AFLAC as a low-cost producer whose loyal corporate agency force and 15 million policy base present a formidable barrier to entry by other carriers. AFLAC's investment portfolio is of exceptionally high quality and liquidity. Nearly 95% of its invested assets are held in investment-grade bonds Investment-grade bonds A bond that is assigned a rating in the top four categories by commercial credit rating companies. S&P classifies investment-grade bonds as BBB or higher, and Moody's classifies investment grade bonds as BAA or higher. Related: High-yield bond. , most of which represent Japanese government and government agency issues. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. CONTACT: Jeffrey Dunsavage (908) 439-2200, ext. 5618 http://www.ambest.com |
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