American Fidelity Assurance (AFA) puts its faith in the American people and insurance policies. It provides voluntary supplemental life and health insurance products and related services to more than 1 million customers primarily in the US and in about 23 other countries. The company's insurance plans include disability, life, cancer, long term care, and hospitalization insurance. The company also provides tax deferred annuity and flexible spending programs. It has tailored units to serve primary and secondary education employees and trade association members. Products and services are sold via worksite marketing by the company's sales force and a network of insurance brokers.
The company serves customers in 49 states in the US and in about 23 other countries.
AFA earns its revenues from premium income and investment income, although most of its revenues come from premium income. In 2011 the company generated $970.2 million in revenues and recorded a net income of $69.6 million. Despite low yields in the bond market, increases in net investment income and aggressive cost management initiatives contributed strongly to AFA's positive results in 2011.
Despite economic difficulties the rising costs of health care in recent years, the company has continued to expand by targeting niche service markets. AFA has benefited the growth in worksite marketing of voluntary employee benefits, which it offers through its Association Worksite Division. Targeted customer segments for AWD include auto manufacturers and dealers and municipal governments. Another fast-growing unit is American Fidelity Education Services, which offers supplemental insurance products and financial services to some 4,000 school districts nationwide. Other supplemental offerings are provided through the American Public Life division.
International life insurance policies are issued through affiliate American Fidelity International (Bermuda), which has a strong presence in Latin America. AFA also has financial service operations through subsidiaries and affiliates: The company's American Fidelity Property unit holds interests in real estate properties, while its ASC Holding sister company provides investment consulting, trust, and data services to high-net-worth individuals, endowments, foundations, and retirement plans.
AFA is a subsidiary of American Fidelity Corporation, which is owned by the founding Cameron family.
The company was founded in 1960 and is led by Bill Cameron, grandson and son of founders C.W. Cameron and C.B. Cameron. – less