A.M. Best Affirms Rating of AFLAC.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--June 4, 2004

A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) of American Family Life Assurance Company of Columbus (AFLAC) (NYSE: AFL) (Omaha, NE), its Japanese branch, American Family Life Assurance Company of Columbus and its wholly-owned subsidiary, American Family Life Assurance Company of New York (AFLAC NY) (New York, NY). The rating outlook remains stable.

The rating reflects AFLAC's favorable capitalization, improving statutory profitability, its dominant position in Japan and its leading position in the United States. Despite the sizeable realized capital loss attributable to its holdings in Parmalat during 2003, AFLAC nonetheless reported improved statutory earnings and surplus expansion from the prior year. Additionally, AFLAC continues to maintain a leading market position within its product niches--primarily the supplemental health market segment--led by its cancer insurance product. AFLAC's brand name recognition, well-established distribution relationships and focused marketing approach have contributed to its success in these markets. The rating also recognizes preliminary indications of further improvement in U.S. sales and modest recovery in interest rates in both the United States and Japan.

Somewhat offsetting these positive rating factors have been AFLAC's strategic and operating concentration on supplemental health insurance, the potential challenges to its position in Japan given the extended weakened economic conditions and increased competition and the challenge of diversifying its market and product concentrations.

A.M. Best believes AFLAC's operations will be better positioned if the organization can successfully implement its diversification plan, including further expansion of its U.S. market share and reduction of the product concentrations within its inforce block of business. These actions will enable the group to achieve a greater spread of risk going forward. Although AFLAC has exhibited forward momentum in performance, the execution risk, which exists in its efforts to branch out further in the U.S. market and the uncertainty surrounding the Japanese insurance marketplace, may not translate into consistent growth in earnings going forward.

For current Best's Ratings, independent data and analysis on more than 1,050 health companies and more than 130 HMO industry composites, please visit http://www.ambest.com/health/.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.