A.M. Best Co. has placed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” of Continental American Insurance Company (Continental American) (Columbia, SC) under review with positive implications following the announcement that Aflac Incorporated (Aflac) (Columbus, GA) [NYSE:AFL] has signed a definitive agreement to purchase Continental American and its parent holding company, Continental American Insurance Group.

These rating actions reflect Aflac’s proposed purchase of both companies for $100 million in cash. The purchase will be funded with internal capital, and the transaction is expected to close in fourth quarter 2009. With the acquisition, Aflac will gain access to the group supplemental insurance market, which will compliment its market leading position in the U.S. payroll deduction market. Continental American will be the platform for Aflac’s group worksite products going forward.

The FSRs, ICRs and debt ratings of Aflac and its subsidiaries are unchanged. The outlook for Aflac’s ratings is stable.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.
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Tom Zitelli, 908-439-2200, ext. 5412
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Jim Peavy, 908-439-2200, ext. 5644
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Rachelle Morrow, 908-439-2200, ext. 5378
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