COLUMBUS, Ga., March 31, 2017 /PRNewswire/ -- Aflac, the
leading provider of voluntary insurance at the worksite in
the United States, announced today
that it has reached an agreement with NXT Capital to manage Aflac's
new portfolio, which will focus on investments related to
middle-market private debt. Aflac Global Investments, the asset
management division of Aflac Incorporated, will initially fund a
$500 million portfolio consisting of
direct investments in floating rate, senior secured loans to
middle-market companies on behalf of Aflac's general account. Aflac
will also invest approximately $50
million, which will be funded from Aflac's insurance general
account for a minority stake in NXT Capital, demonstrating the
mutual commitment to a long-term relationship and the benefits that
can be derived over time by partnering together in the asset
class.
Aflac Executive Vice President and Global Chief Investment
Officer Eric M. Kirsch commented,
"As noted on our 2017 outlook call, Aflac made a strategic asset
allocation decision to utilize floating rate assets as a core part
of its hedged U.S. dollar program for Aflac Japan. The floating
rate coupons and short duration of middle-market loans provide a
good match against short duration currency hedges. After an
extensive search of middle-market managers, we found NXT Capital to
be an excellent strategic fit, matching our culture of disciplined
credit underwriting, risk management and a team-oriented approach
to investment management. We are excited to partner with a market
leader that has a management team with more than 25 years of
experience investing in the asset class."
"This partnership reflects the significant commitment Aflac has
to maintaining a world-class investment platform that will generate
sustainable risk-adjusted net investment income despite the
headwinds of very low interest rates impacting our general
account," Executive Vice President and Chief Financial Officer of
Aflac Incorporated Frederick J. Crawford said. "We are pleased that we will be
investing in assets that will provide solid margins and less
volatility after accounting for hedge costs for our Aflac Japan
dollar program."
"NXT Capital is very pleased to partner with Aflac and to offer
Aflac access to the diversification benefits and attractive
risk-adjusted returns that middle market private debt provides,"
said Robert Radway, NXT Capital's
Chairman and CEO. "We appreciate Aflac's recognition of NXT's
expertise as an asset manager, our proven, broad-based direct
origination capability and rigorous underwriting process for
proprietary middle market loans."
About Aflac
When a policyholder gets sick or hurt,
Aflac pays cash benefits fast. For six decades, Aflac insurance
policies have given policyholders the opportunity to focus on
recovery, not financial stress. In the
United States, Aflac is the leading provider of voluntary
insurance at the worksite. Through its trailblazing One Day
PaySM initiative, Aflac U.S. can receive, process,
approve and disburse payment for eligible claims in one business
day. In Japan, Aflac is the
leading provider of medical and cancer insurance and insures 1 in 4
households. Aflac individual and group insurance products help
provide protection to more than 50 million people worldwide. For 11
consecutive years, Aflac has been recognized by Ethisphere as one
of the World's Most Ethical Companies. In 2017, Fortune magazine
recognized Aflac as one of the 100 Best Companies to Work For in
America for the 19th consecutive year and included Aflac on its
list of Most Admired Companies for the 16th time. In 2015, Aflac's
contact centers were recognized by J.D. Power by providing "An
Outstanding Customer Service Experience" for the Live Phone
Channel. Aflac Incorporated is a Fortune 500 company listed on the
New York Stock Exchange under the symbol AFL. To find out more
about Aflac and One Day PaySM, visit aflac.com or
espanol.aflac.com.
About Aflac Global Investments
Aflac Global
Investments is the asset management division of Aflac Incorporated,
with offices in New York and
Tokyo and more than 100
professionals managing in excess of $110
billion on behalf of the general account of Aflac Japan and
Aflac U.S.
About NXT Capital
NXT Capital is a leading provider of
structured financing to the U.S. middle market. Since its
formation in 2010, the company has originated over $15 billion in total financing volume spread over
500+ transactions. With $8.8
billion of capital at its disposal, NXT
provides a full range of structured financing solutions on a
direct basis through its Corporate Finance and Real Estate Finance
Groups. NXT Capital manages capital for third parties through
its asset management platform and offers investors
proprietary access to primarily first lien senior secured loans
that are not broadly traded or otherwise generally available
without a loan origination platform. Investment offerings include
levered and unlevered funds, separately managed accounts and
CLOs. NXT's investor base includes public and private pension
plans, insurance companies, endowments, foundations and other
institutional investors. NXT Capital Investment Advisers, LLC, a
subsidiary of NXT Capital LLC, is an SEC Registered Investment
Adviser.
Media contact – Jon Sullivan,
706.763.4813 or jsullivan@aflac.com
Analyst and investor contact – Robin Y.
Wilkey, 706.596.3264 or 800.235.2667, FAX: 706.324.6330, or
rwilkey@aflac.com
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SOURCE Aflac