Oct. 14, 2009 (Business Wire) -- A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and issuer credit rating to “a” from “a-” of Continental American Insurance Company (Continental American) (Columbia, SC). The ratings have been removed from under review with positive implications and assigned a stable outlook.

Continental American’s ratings had been placed under review following the announcement that Aflac Incorporated (Aflac) (Columbus, GA) [NYSE: AFL] had signed a definitive agreement to purchase the company.

The upgrades reflect Aflac’s purchase of Continental American effective October 1, 2009, at a purchase price of $100 million. As a result of this transaction, Aflac gained access to the group supplemental insurance market, which will complement its market leading position in the individual U.S. payroll deduction market.

A.M. Best believes Continental American will benefit from having a strong parent with a recognized brand, which can readily provide capital to fund anticipated premium growth. Initially, Continental American will represent a very modest portion of Aflac’s revenue and profits. Aflac will utilize Continental American as its platform for Aflac’s group worksite products going forward.

The FSRs, ICRs and debt ratings of Aflac and its other subsidiaries are unchanged. The outlook for these ratings remains 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.