The drag to the ratings of AFIC and AFLIC is reflective of the considerable financial leverage with a deficit in members' equity at First Tower Finance, stemming from a 2014 transaction involving the return of First Tower Finance's capital to its members.
AFLIC provides credit life and credit accident and health insurance coverages for individuals that have personal loans originated by the consumer finance subsidiaries of First Tower Finance.
AFLIC, the life insurance affiliate of Madison, Wis.-based American Family Insurance Group, has been out of the sale of variable products since 2009 but they continued to service existing variable life insurance policies and variable annuities.