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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 30, 2024
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Aflac Incorporated
_________________________________________________________________________________________________________________________________________________________
(Exact name of registrant as specified in its charter)
 
Georgia001-07434  58-1167100
(State or other jurisdiction(Commission  (IRS Employer
of incorporation)File Number)  Identification No.)
1932 Wynnton RoadColumbusGeorgia31999
(Address of principal executive offices)  (Zip Code)
706.323.3431
_________________________________________________________________________________________________________________________________________________________
(Registrant’s telephone number, including area code)
 
_________________________________________________________________________________________________________________________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.10 Par ValueAFLNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


Item 2.02 Results of Operations and Financial Condition.
On October 30, 2024, Aflac Incorporated (the "Company") issued a press release dated October 30, 2024 in which it reported the Company's 2024 third quarter financial results. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein in its entirety. In addition, a copy of the Company's third quarter supplemental earnings materials is furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein in its entirety.
On October 30, 2024, the Company posted to its investor relations website at investors.aflac.com a video presentation by Max Brodén, the Company's Executive Vice President and Chief Financial Officer, discussing the Company's 2024 third quarter earnings. A copy of the transcript of Mr. Brodén's comments from the Investor Update and a copy of the Investor Presentation are furnished as Exhibit 99.3 and Exhibit 99.4 to this Current Report on Form 8-K, respectively, and are incorporated by reference herein in their entirety. The Investor Update and the Investor Presentation should be read in conjunction with the press release.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
The Company has appointed Virgil R. Miller to serve as President of the Company, effective January 1, 2025, in addition to continuing to serve as President, Aflac U.S. Daniel P. Amos, who has been serving as President of the Company since November 16, 2023, will resign as President effective January 1, 2025, but will continue to serve as the Company’s Chairman and Chief Executive Officer.
Mr. Miller, age 56, joined Aflac U.S. in 2004 and has served as President of Aflac U.S. since 2023. Previously, he served as Deputy President, Aflac U.S., from 2022 until 2023; Executive Vice President, President of Group and Individual Benefits Division, Aflac U.S., from 2021 until 2022; and Executive Vice President, Chief Operating Officer, Aflac U.S., from 2018 until 2021.
Beginning January 1, 2025, Mr. Miller’s initial base salary will be $825,000, and he will be eligible for a target annual bonus of 150% of his base salary. Mr. Miller is also expected to receive an equity award in February 2025 with a grant-date value of approximately $2,475,000 in the form of performance-based restricted stock, with vesting contingent upon the Company’s achievement of performance goals over a three-year period.
There are no family relationships between Mr. Miller and any Company director or executive officer, and no arrangements or understandings between Mr. Miller and any other person pursuant to which either was selected as an officer. Mr. Miller is not a party to any current or proposed transaction with the Company for which disclosure is required under Item 404(a) of Regulation S-K.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit NumberExhibit Title or Description
Press release of Aflac Incorporated dated October 30, 2024
Financial Supplement for Third Quarter 2024
Transcript of comments in video presentation by Max Brodén, Executive Vice President and Chief Financial Officer of Aflac Incorporated.
Slides referenced in video presentation by Max Brodén, Executive Vice President and Chief Financial Officer of Aflac Incorporated.
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  Aflac Incorporated
October 30, 2024  /s/ Robin L. Blackmon
  (Robin L. Blackmon)
  Senior Vice President, Financial Services
  Chief Accounting Officer


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News Release

Aflac Incorporated Announces Third Quarter Results,
Reports Third Quarter Net Losses of $93 Million,
Declares Fourth Quarter Cash Dividend

COLUMBUS, Ga. - October 30, 2024 - Aflac Incorporated (NYSE: AFL) today reported its third quarter results.

Total revenues were $2.9 billion in the third quarter of 2024, compared with $5.0 billion in the third quarter of 2023. Net losses were $93 million, or losses of $0.17 per diluted share, compared with earnings of $1.6 billion, or $2.64 per diluted share a year ago, primarily due to increased foreign exchange-related losses from yen strengthening by 12.9% during the quarter.

Net losses in the third quarter of 2024 included net investment losses of $1.4 billion, or $2.51 per diluted share, compared with net investment gains of $423 million, or $0.71 per diluted share a year ago. These net investment losses were driven by net losses of $1.4 billion on certain derivatives and foreign currency activities; net gains from sales and redemptions of $105 million; a $13 million gain from an increase in the fair value of equity securities; an $86 million increase in credit losses; and a $55 million impairment due to the anticipated sale of investments with unrealized losses.

Adjusted earnings* in the third quarter were $1.2 billion, compared with $1.1 billion in the third quarter of 2023, reflecting an increase of 10.6%. Adjusted earnings per diluted share* increased 17.4% to $2.16 in the quarter. Variable investment income ran $27 million below the company's long-term return expectations. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per share by $0.03.

The average yen/dollar exchange rate in the third quarter of 2024 was 147.95, or 2.0% weaker than the average rate of 144.97 in the third quarter of 2023. For the first nine months, the average exchange rate was 150.60, or 8.1% weaker than the rate of 138.38 a year ago.

Shareholders’ equity was $24.8 billion, or $44.60 per share, at September 30, 2024, compared with $22.7 billion, or $38.63 per share, at September 30, 2023. Shareholders’ equity at the end of the third quarter included a cumulative decrease of $67 million for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative decrease of $866 million at September 30, 2023 and a net unrealized gain on investment securities and derivatives of $537 million, compared with a net unrealized loss of $427 million at September 30, 2023. Shareholders’ equity at the end of the third quarter also included an unrealized foreign currency translation loss of $4.1 billion, compared with an unrealized foreign currency translation loss of $4.5 billion at September 30, 2023. The annualized return on average shareholders’ equity in the third quarter was (1.5)%.

For the first nine months of 2024, total revenues were down 9.4% to $13.5 billion, compared with $14.9 billion in the first nine months of 2023. Net earnings were $3.5 billion, or $6.23 per diluted share, compared with $4.4 billion, or $7.28 per diluted share, for the first nine months of 2023. Adjusted earnings for the first nine months of 2024 were $3.2 billion, or $5.64 per diluted share, compared with $3.0 billion, or $4.97 per diluted share, in 2023. Excluding the negative impact of $0.17 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share increased 16.9% to $5.81 for the first nine months of 2024.

Shareholders’ equity excluding AOCI (or adjusted book value*) was $28.5 billion, or $51.21 per share at September 30, 2024, compared with $28.4 billion, or $48.44 per share, at September 30, 2023. The annualized adjusted return on equity excluding foreign currency impact* in the third quarter was 17.0%.



    



AFLAC JAPAN

In yen terms, Aflac Japan's net earned premiums were ¥255.4 billion for the quarter, or 10.5% lower than a year ago, mainly due to the changes in deferred profit liability including the impact from actuarial assumption updates, prior year internal cancer reinsurance transactions, as well as limited-pay policies reaching paid-up status. Adjusted net investment income increased 0.1% to ¥99.0 billion. Total adjusted revenues in yen declined 7.8% to ¥355.3 billion. Pretax adjusted earnings in yen for the quarter increased 25.5% on a reported basis to ¥158.7 billion, primarily due to lower benefits and expenses during the quarter, partially offset by lower net earned premiums. Pretax adjusted earnings increased 24.0% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment increased to 44.7%, compared with 32.8% a year ago, primarily due to higher remeasurement gains of ¥39.7 billion from unlocking assumptions.

For the first nine months, net earned premiums in yen were ¥792.6 billion, or 7.4% lower than a year ago. Adjusted net investment income increased 15.2% to ¥308.5 billion. Total adjusted revenues in yen were down 2.0% to ¥1.1 trillion. Pretax adjusted earnings were ¥413.8 billion, or 20.3% higher than a year ago.

In dollar terms, net earned premiums decreased 13.4% to $1.7 billion in the third quarter. Adjusted net investment income decreased 2.5% to $662 million. Total adjusted revenues declined by 10.6% to $2.4 billion. Pretax adjusted earnings increased 23.5% to $1.1 billion.

For the first nine months, net earned premiums in dollars were $5.2 billion, or 15.6% lower than a year ago. Adjusted net investment income increased 5.7% to $2.0 billion. Total adjusted revenues were down 10.6% to $7.3 billion. Pretax adjusted earnings were $2.7 billion, or 10.8% higher than a year ago.

For the quarter, total new annualized premium sales (sales) increased 12.3% to ¥17.5 billion, or $117 million, primarily reflecting sales of the new first sector product. For the first nine months, total new sales increased 4.4% to ¥46.9 billion, or $309 million.

AFLAC U.S.

Aflac U.S. net earned premiums increased 2.8% to $1.5 billion in the third quarter compared to the prior year, reflecting improved sales and continued improvement in persistency. Adjusted net investment income increased 0.5% to $210 million. Total adjusted revenues were up 1.4% to $1.7 billion. Pretax adjusted earnings were $350 million, 26.8% lower than a year ago, primarily due to higher benefits resulting from lower remeasurement gains and higher incurred claims. As a result, the pretax adjusted profit margin for the U.S. segment was 20.8%, compared with 28.8% a year ago.

For the first nine months, net earned premiums increased 2.7% to $4.4 billion. Adjusted net investment income increased 4.1% to $634 million. Total adjusted revenues were up 1.7% to $5.1 billion. Pretax adjusted earnings were $1.1 billion, or 9.2% lower than a year ago.

Aflac U.S. sales increased 5.5% in the quarter to $379 million, largely driven by premier group life, absence management and disability products, as well as cancer insurance. For the first nine months of the year, total new sales increased 1.0% to $1.0 billion.

CORPORATE AND OTHER

For the quarter, total adjusted revenues increased 95.7% to $225 million compared to the prior year primarily due to increasing total net earned premiums and adjusted net investment income, all of which reflect the impact of reinsurance transactions in the fourth quarter of 2023. Net investment income also benefited from a combination of higher rates and asset balances, as well as continued lower volume of tax credit investments. Total benefits and adjusted expenses increased $47 million compared to the prior year primarily as a result of the increased reinsurance activity. Pretax adjusted earnings were a gain of $15 million, compared with a loss of $49 million a year ago.

For the first nine months, total adjusted revenues increased 88.3% to $723 million. Pretax adjusted earnings were a gain of $36 million, compared with a loss of $107 million a year ago.

DIVIDEND AND CAPITAL RETURNED TO SHAREHOLDERS

The board of directors declared the fourth quarter dividend of $0.50 per share, payable on December 2, 2024 to shareholders of record at the close of business on November 20, 2024.



    



In the third quarter, Aflac Incorporated deployed $500 million in capital to repurchase 4.9 million of its common shares. At the end of September 2024, the company had 54.3 million remaining shares authorized for repurchase.

OUTLOOK

Commenting on the company’s results, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos stated: "I am pleased that Aflac delivered very solid adjusted earnings for the quarter and the first nine months. We have continued to actively concentrate on generating profitable growth in the U.S. and Japan with new products and distribution strategies. We believe our strategy will continue to create long-term value for shareholders.

"Looking at our operations in Japan, we have continued to focus on third sector products as well as introducing these policies to new and younger customers. While still in the very early stages, we were pleased with the initial introduction of our latest life insurance product that offers an asset formation component and a nursing care option. This drove the 12.3% sales increase for the quarter. This approach is in line with our strategy of connecting with younger customers to provide them with integrated financial protection and services through different life stages.

"In the U.S., we achieved 5.5% sales growth for the quarter, which is a welcome result as we enter the fourth quarter, which tends to be the heaviest enrollment period. At the same time, we continue to focus on more profitable growth and are seeing improvement in net earned premiums. We continue our prudent approach to expense management and maintaining a strong pretax margin.

"We continue to generate strong capital and cash flows while maintaining our commitment to prudent liquidity and capital management. We have been very pleased with our investments, which have continued to produce strong net investment income with minimal losses and impairments. I am very pleased that 2024 marks 42 consecutive years of dividend increases, a record we treasure. We remain committed to extending this record, supported by our financial strength. In the quarter, we repurchased $500 million in shares and intend to continue our balanced approach of investing in growth and driving long-term operating efficiencies."

*See Non-U.S. GAAP Financial Measures section for an explanation of foreign exchange and its impact on the financial statements and definitions of the non-U.S. GAAP financial measures used in this earnings release, as well as a reconciliation of such non-U.S. GAAP financial measures to the most comparable U.S. GAAP financial measures.

ABOUT AFLAC INCORPORATED

Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for nearly seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force. The company takes pride in being there for its policyholders when they need us most, as well as being included in the World’s Most Ethical Companies by Ethisphere for 18 consecutive years (2024), Fortune’s World’s Most Admired Companies for 23 years (2024) and Bloomberg’s Gender-Equality Index for the fourth consecutive year (2023). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021 and has been included in the Dow Jones Sustainability North America Index (2023) for 10 years. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under “Sustainability.”

1 LIMRA 2023 U.S. Supplemental Health Insurance Total Market Report

A copy of Aflac’s financial supplement for the quarter can be found on the “Investors” page at aflac.com.

Aflac Incorporated will webcast its quarterly conference call via the “Investors” page of aflac.com at 8:00 a.m. (ET) on October 31, 2024.

Note: Tables within this document may not foot due to rounding.


    



AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
THREE MONTHS ENDED SEPTEMBER 30,20242023% Change
Total revenues$2,949 $4,950 (40.4)%
Benefits and claims, net1,595 1,860 (14.2)
Total acquisition and operating expenses1,262 1,285 (1.8)
Earnings before income taxes92 1,805 (94.9)
Income taxes185 236 
Net earnings$(93)$1,569 (105.9)%
Net earnings per share – basic$(0.17)$2.65 (106.4)%
Net earnings per share – diluted(0.17)2.64 (106.4)
Shares used to compute earnings per share (000):
Basic557,899 591,246 (5.6)%
Diluted560,414 593,596 (5.6)
Dividends paid per share$0.50 $0.42 19.0 %






    



AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
NINE MONTHS ENDED SEPTEMBER 30,20242023% Change
Total revenues$13,524 $14,923 (9.4)%
Benefits and claims, net5,527 6,108 (9.5)
Total acquisition and operating expenses3,715 3,843 (3.3)
Earnings before income taxes4,282 4,972 (13.9)
Income taxes741 581 
Net earnings$3,541 $4,391 (19.4)%
Net earnings per share – basic$6.26 $7.31 (14.4)%
Net earnings per share – diluted6.23 7.28 (14.4)
Shares used to compute earnings per share (000):
Basic565,757 600,991 (5.9)%
Diluted568,216 603,419 (5.8)
Dividends paid per share$1.50 $1.26 19.0 %



    



AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)
SEPTEMBER 30,20242023% Change
Assets:
Total investments and cash$115,601 $111,306 3.9 %
Deferred policy acquisition costs9,232 8,771 5.3 
Other assets3,609 5,034 (28.3)
Total assets$128,442 $125,111 2.7 %
Liabilities and shareholders’ equity:
Policy liabilities$87,554 $86,028 1.8 %
Notes payable and lease obligations7,978 6,961 14.6 
Other liabilities8,080 9,453 (14.5)
Shareholders’ equity24,830 22,669 9.5 
Total liabilities and shareholders’ equity$128,442 $125,111 2.7 %
Shares outstanding at end of period (000)556,717 586,897 (5.1)%




    



NON-U.S. GAAP FINANCIAL MEASURES

This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).

The company defines the non-U.S. GAAP financial measures included in this earnings release as follows:

•Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management’s control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively.

•Adjusted earnings excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management’s control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively.

•Adjusted return on equity is adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income (AOCI). Management uses adjusted return on equity to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The Company considers adjusted return on equity important as it excludes components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity.

•Adjusted return on equity excluding foreign currency impact is adjusted earnings excluding the current period foreign currency impact divided by average shareholders’ equity, excluding AOCI. The Company considers adjusted return on equity excluding foreign currency impact important as it excludes changes in foreign currency and components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity excluding foreign currency impact is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity.

•Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign exchange risks in the Company's Japan segment or in Corporate and other. These amortized hedge costs/income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the contractual term of the derivative. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an


    



important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income.

•Adjusted book value is the U.S. GAAP book value (representing total shareholders’ equity), less AOCI as recorded on the U.S. GAAP balance sheet. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude AOCI, which fluctuates due to market movements that are outside management’s control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively.

•Adjusted book value including unrealized foreign currency translation gains and losses is adjusted book value plus unrealized foreign currency translation gains and losses. Adjusted book value including unrealized foreign currency translation gains and losses per common share is adjusted book value plus unrealized foreign currency translation gains and losses at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value including unrealized foreign currency translation gains and losses, and its related per share financial measure, important as they exclude certain components of AOCI, which fluctuate due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measures for adjusted book value including unrealized foreign currency translation gains and losses and adjusted book value including unrealized foreign currency translation gains and losses per common share are total book value and total book value per common share, respectively.

•Adjusted net investment income is net investment income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, and ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and losses to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company’s investments and related hedging strategies. The most comparable U.S. GAAP financial measure for adjusted net investment income is net investment income.

•Adjusted net investment gains and losses are net investment gains and losses adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are both reclassified to net investment income, and iii) the impact of interest from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management’s control, while excluding the components that are within management’s control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses.




    



RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
THREE MONTHS ENDED SEPTEMBER 30,20242023% Change
Net earnings$(93)$1,569 (105.9)%
Items impacting net earnings:
Adjusted net investment (gains) losses1,347 (504)
Other and non-recurring (income) loss
— (3)
Income tax (benefit) expense on items excluded
from adjusted earnings 		(43)33 
Adjusted earnings 1,211 1,095 10.6 %
Current period foreign currency impact 1
16 N/A
Adjusted earnings excluding current period foreign
currency impact 2
$1,228 $1,095 12.1 %
Net earnings per diluted share$(0.17)$2.64 (106.4)%
Items impacting net earnings:
Adjusted net investment (gains) losses2.40 (0.85)
Other and non-recurring (income) loss
— (0.01)
Income tax (benefit) expense on items excluded
from adjusted earnings 		(0.08)0.06 
Adjusted earnings per diluted share2.16 1.84 17.4 %
Current period foreign currency impact 1
0.03 N/A
Adjusted earnings per diluted share excluding
current period foreign currency impact 2
$2.19 $1.84 19.0 %
1    Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.
2    Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.



    



RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
NINE MONTHS ENDED SEPTEMBER 30,20242023% Change
Net earnings$3,541 $4,391 (19.4)%
Items impacting net earnings:
Adjusted net investment (gains) losses(411)(1,363)
Other and non-recurring (income) loss
1 (38)
Income tax (benefit) expense on items excluded
from adjusted earnings		76 12 
Adjusted earnings 3,207 3,001 6.9 %
Current period foreign currency impact 1
97 N/A
Adjusted earnings excluding current period foreign
currency impact 2
$3,304 $3,001 10.1 %
Net earnings per diluted share$6.23 $7.28 (14.4)%
Items impacting net earnings:
Adjusted net investment (gains) losses(0.72)(2.26)
Other and non-recurring (income) loss
— (0.06)
Income tax (benefit) expense on items excluded
from adjusted earnings		0.13 0.02 
Adjusted earnings per diluted share5.64 4.97 13.5 %
Current period foreign currency impact 1
0.17 N/A
Adjusted earnings excluding current period foreign
currency impact 2
$5.81 $4.97 16.9 %
1 Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.
2    Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.


    



RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED SEPTEMBER 30,20242023% Change
Net investment (gains) losses$1,408 $(423)(432.9)%
Items impacting net investment (gains) losses:
Amortized hedge costs(7)(26)
Amortized hedge income25 25 
Net interest income (expense) from derivatives associated
     with certain investment strategies
(88)(90)
Impact of interest from derivatives associated with
     notes payable1
8 10 
Adjusted net investment (gains) losses$1,347 $(504)(367.3)%
1    Amounts are included with interest expenses that are a component of adjusted expenses.



RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED SEPTEMBER 30,20242023% Change
Net investment income$1,006 $1,004 0.2 %
Items impacting net investment income:
Amortized hedge costs(7)(26)
Amortized hedge income25 25 
Net interest income (expense) from derivatives associated
     with certain investment strategies
(88)(90)
Adjusted net investment income$936 $915 2.3 %



    



RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)
NINE MONTHS ENDED SEPTEMBER 30,20242023% Change
Net investment (gains) losses$(239)$(1,101)(78.3)%
Items impacting net investment (gains) losses:
Amortized hedge costs(19)(148)
Amortized hedge income87 92 
Net interest income (expense) from derivatives associated
     with certain investment strategies
(265)(239)
Impact of interest from derivatives associated with
     notes payable1
25 33 
Adjusted net investment (gains) losses$(411)$(1,363)(69.8)%
1    Amounts are included with interest expenses that are a component of adjusted expenses.


RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED – IN MILLIONS)
NINE MONTHS ENDED SEPTEMBER 30,20242023% Change
Net investment income$3,100 $2,946 5.2 %
Items impacting net investment income:
Amortized hedge costs(19)(148)
Amortized hedge income87 92 
Net interest income (expense) from derivatives associated
     with certain investment strategies
(265)(239)
Adjusted net investment income$2,903 $2,651 9.5 %


    



RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE
(UNAUDITED - IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
SEPTEMBER 30,20242023% Change
U.S. GAAP book value $24,830 $22,669 
Less:
Unrealized foreign currency translation gains (losses)
(4,139)(4,484)
Unrealized gains (losses) on securities and derivatives
537 (427)
Effect of changes in discount rate assumptions(67)(866)
Pension liability adjustment
(8)17 
Total AOCI
(3,677)(5,760)
Adjusted book value$28,507 $28,429 
Add:
Unrealized foreign currency translation gains (losses)
(4,139)(4,484)
Adjusted book value including unrealized foreign currency translation gains (losses)$24,368 $23,945 
Number of outstanding shares at end of period (000)556,717 586,897 
U.S. GAAP book value per common share $44.60 $38.63 15.5 %
Less:
Unrealized foreign currency translation gains (losses) per common share
(7.43)(7.64)
Unrealized gains (losses) on securities and derivatives per common share
0.96 (0.73)
Effect of changes in discount rate assumptions
     per common share		(0.12)(1.48)
Pension liability adjustment per common share
(0.01)0.03 
Total AOCI per common share
(6.60)(9.81)
Adjusted book value per common share$51.21 $48.44 5.7 %
Add:
Unrealized foreign currency translation gains (losses) per common share
(7.43)(7.64)
Adjusted book value including unrealized foreign currency translation gains (losses) per common share$43.77 $40.80 7.3 %



    



RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)
THREE MONTHS ENDED SEPTEMBER 30,20242023
U.S. GAAP ROE - Net earnings1
(1.5)%29.1 %
Impact of excluding unrealized foreign currency translation gains (losses)
0.3 (4.5)
Impact of excluding unrealized gains (losses) on securities and derivatives
— 0.8 
Impact of excluding effect of changes in discount rate assumptions— (3.1)
Impact of excluding pension liability adjustment
— — 
Impact of excluding AOCI
0.2 (6.8)
U.S. GAAP ROE - less AOCI(1.3)22.3 
Differences between adjusted earnings and net earnings2
18.0 (6.7)
Adjusted ROE - reported16.7 15.6 
Less: Impact of foreign currency3
(0.2)N/A
Adjusted ROE, excluding impact of foreign currency17.0 15.6 
1    U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
2    See separate reconciliation of net income to adjusted earnings.
3    Impact of foreign currency is calculated by restating all foreign currency components of the income statement to the weighted average foreign currency exchange rate for the comparable prior year period. The impact is the difference of the restated adjusted earnings compared to reported adjusted earnings. For comparative purposes, only current period income is restated using the weighted average prior period exchange rate, which eliminates the foreign currency impact for the current period. This allows for equal comparison of this financial measure.



    



RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)
NINE MONTHS ENDED SEPTEMBER 30,20242023
U.S. GAAP ROE - Net earnings1
20.2 %27.4 %
Impact of excluding unrealized foreign currency translation gains (losses)
(2.9)(4.0)
Impact of excluding unrealized gains (losses) on securities and derivatives
0.6 (0.6)
Impact of excluding effect of changes in discount rate assumptions(0.9)(1.5)
Impact of excluding pension liability adjustment
— — 
Impact of excluding AOCI
(3.3)(6.1)
U.S. GAAP ROE - less AOCI16.9 21.3 
Differences between adjusted earnings and net earnings2
(1.6)(6.7)
Adjusted ROE - reported15.3 14.6 
Less: Impact of foreign currency3
(0.5)N/A
Adjusted ROE, excluding impact of foreign currency15.7 14.6 
1    U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
2    See separate reconciliation of net income to adjusted earnings.
3    Impact of foreign currency is calculated by restating all foreign currency components of the income statement to the weighted average foreign currency exchange rate for the comparable prior year period. The impact is the difference of the restated adjusted earnings compared to reported adjusted earnings. For comparative purposes, only current period income is restated using the weighted average prior period exchange rate, which eliminates the foreign currency impact for the current period. This allows for equal comparison of this financial measure.



    



EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES, UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, 2024Including
Currency
Changes
Excluding
Currency
Changes2
Net earned premiums3
(4.3)%(3.1)%
Adjusted net investment income4
2.3 2.7 
Total benefits and expenses(9.2)(8.3)
Adjusted earnings10.6 12.1 
Adjusted earnings per diluted share17.4 19.0 
1Refer to previously defined adjusted earnings and adjusted earnings per diluted share.
2Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.
3Net of reinsurance
4Refer to previously defined adjusted net investment income.



    



EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES, UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, 2024Including
Currency
Changes
Excluding
Currency
Changes2
Net earned premiums3
(5.8)%(0.9)%
Adjusted net investment income4
9.5 11.9 
Total benefits and expenses(7.4)(2.6)
Adjusted earnings6.9 10.1 
Adjusted earnings per diluted share13.5 16.9 
1Refer to previously defined adjusted earnings and adjusted earnings per diluted share.
2Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.
3Net of reinsurance
4Refer to previously defined adjusted net investment income.



    



FORWARD-LOOKING INFORMATION

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. The company desires to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” “may,” “should,” “estimate,” “intends,” “projects,” “will,” “assumes,” “potential,” “target,” "outlook" or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements.

The company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:

•difficult conditions in global capital markets and the economy, including inflation
•defaults and credit downgrades of investments
•global fluctuations in interest rates and exposure to significant interest rate risk
•concentration of business in Japan
•limited availability of acceptable yen-denominated investments
•foreign currency fluctuations in the yen/dollar exchange rate
•differing interpretations applied to investment valuations
•significant valuation judgments in determination of expected credit losses recorded on the Company's investments
•decreases in the Company's financial strength or debt ratings
•decline in creditworthiness of other financial institutions
•the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners
•deviations in actual experience from pricing and reserving assumptions
•ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives
•interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems
•subsidiaries' ability to pay dividends to the Parent Company
•inherent limitations to risk management policies and procedures
•operational risks of third-party vendors
•tax rates applicable to the Company may change
•failure to comply with restrictions on policyholder privacy and information security
•extensive regulation and changes in law or regulation by governmental authorities
•competitive environment and ability to anticipate and respond to market trends
•catastrophic events, including, but not limited to, as a result of climate change, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events
•ability to protect the Aflac brand and the Company's reputation
•ability to effectively manage key executive succession
•changes in accounting standards
•level and outcome of litigation or regulatory inquiries
•allegations or determinations of worker misclassification in the United States



Analyst and investor contact - David A. Young, 706.596.3264; 800.235.2667 or dyoung@aflac.com

Media contact - Ines Gutzmer, 762.207.7601 or igutzmer@aflac.com



FINAL                     10/30/2024
aflaclogoa01a01a01a33.jpg

Financial Supplement
Third Quarter 2024

This document is a statistical supplement to Aflac’s quarterly earnings release. Throughout the presentation, amounts presented may not foot due to rounding. As you review the supplement, please note the non-U.S. GAAP financial measures and definitions found at the back of this document.

The Company adopted the Financial Accounting Standards Board’s Accounting Standard Update 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by (i) ASU 2019-09 Financial Services - Insurance: Effective Date, and (ii) ASU 2020-11 Financial Services - Insurance: Effective Date and Early Application (collectively, “LDTI”) as of January 1, 2023. The amended guidance is applied as of the beginning of the earliest period presented in the Company’s quarterly and annual financial statements, which results in a January 1, 2021 Transition Date. In conjunction with the adoption of LDTI, the Company changed its practice of recording the change in the deferred profit liability (DPL) on products with limited-payment features from the benefits and claims, net line item to the net earned premiums line item in the consolidated statement of earnings. This change in presentation has no impact on net earnings. All quarterly and annual amounts for 2021 and 2022 presented herein reflect these changes for LDTI and DPL.
For more information, contact:
David Young
Phone. 706.596.3264
Aflacir@aflac.com
investors.aflac.com


Aflac Incorporated and Subsidiaries
Share Data
(In Thousands)
BeginningShares IssuedShares PurchasedEndingQTD Weighted Avg. SharesYTD Weighted Avg. Shares
SharesStk. Bon.Stk. Opt.Treas.Misc.SharesAvg.DilutiveAvg.Avg.DilutiveAvg.
PeriodOutstanding& DRP& Misc.Shares
Purch.(1)
OutstandingSharesSharesDilutedSharesSharesDiluted
20221 652,132 259 1,308 8,007 343 645,349 649,753 3,074 652,827 649,753 3,074 652,827 
2 645,349 269 101 11,185 8 634,526 640,707 2,536 643,243 645,205 2,805 648,010 
3 634,526 258 144 11,057 3 623,868 629,350 2,597 631,946 639,862 2,735 642,597 
4 623,868 222 120 8,938 16 615,256 619,845 3,149 622,994 634,816 2,839 637,655 
20231 615,256 239 1,152 10,348 347 605,952 611,205 2,745 613,950 611,205 2,745 613,950 
2 605,952 259 225 10,461 6 595,969 600,742 2,187 602,929 605,945 2,466 608,411 
3 595,969 210 115 9,390 7 586,897 591,246 2,350 593,596 600,991 2,427 603,419 
4 586,897 191 94 8,698 5 578,479 581,876 3,005 584,881 596,173 2,572 598,745 
20241 578,479 212 1,320 9,276 457 570,278 574,886 2,596 577,482 574,886 2,596 577,482 
2 570,278 217 186 9,288 24 561,369 564,573 2,265 566,838 569,730 2,430 572,160 
3 561,369 165 75 4,882 10 556,717 557,899 2,515 560,414 565,757 2,459 568,216 
















(1) Includes previously owned shares used to purchase options (swapped shares) and/or shares purchased for deferred compensation program
2

Aflac Incorporated and Subsidiaries
Summary of Adjusted Results by Business Segment
(In Millions, except per-share data and where noted)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2019202020212022202320232024Change20232024Change
Aflac Japan$3,261 $3,263 $3,755 $3,281 $3,234 $869 $1,073 23.5 $2,479 $2,747 10.8 
Aflac U.S.1,272 1,268 1,356 1,359 1,501 478 350 (26.8)1,199 1,089 (9.2)
Corporate and other (1)
(72)(115)(293)(218)(425)(49)15 (107)36 
Pretax adjusted earnings4,461 4,416 4,819 4,422 4,310 1,298 1,438 10.8 3,571 3,872 8.4 
Income taxes (1)
1,147 864 893 808 577 203 227 11.8 570 665 16.7 
Adjusted earnings (2)
3,314 3,552 3,925 3,614 3,733 1,095 1,211 10.6 3,001 3,207 6.9 
Reconciling items:
Adjusted net investment gains (losses)(15)(229)462 447 914 504 (1,347)1,363 411 
Other and non-recurring income (loss) (3)
(1)(28)(73)1 39 3 — 38 (1)
Income tax benefit (expense) on items excluded from adjusted earnings (4)
3 72 (83)357 (26)(33)43 (12)(76)
Tax reform adjustment (5)
4 — — — — — — — — 
Tax valuation allowance release (6)
— 1,411 — — — — — — — 
Net earnings$3,304 $4,778 $4,231 $4,418 $4,659 $1,569 $(93)(105.9)$4,391 $3,541 (19.4)
Effective Tax rate25.7 %(14.9)%18.7 %9.3 %11.5 %13.1 %201.8 %11.7 %17.3 %
Earnings per share of common stock:
Net earnings (basic)$4.45 $6.69 $6.28 $6.96 $7.81 $2.65 $(0.17)(106.4)$7.31 $6.26 (14.4)
Net earnings (diluted)4.43 6.67 6.25 6.93 7.78 2.64 (0.17)(106.4)7.28 6.23 (14.4)
Adjusted earnings (basic) (2)
$4.46 $4.98 $5.83 $5.69 $6.26 $1.85 $2.17 17.3 $4.99 $5.67 13.6 
Adjusted earnings (diluted) (2)
4.44 4.96 5.80 5.67 6.23 1.84 2.16 17.4 4.97 5.64 13.5 
(1)
The change in value of federal historic rehabilitation and solar investments in partnerships of $57 and $64 for the three-month periods and $119 and $169 for the nine-month periods ended September 30, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $78 and $63 for the three-month periods and $142 and $171 for the nine-month periods ended September 30, 2024, and 2023, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings.
(2)
See non-U.S. GAAP financial measures for definition of adjusted earnings.
(3)
Foreign currency gains and losses for all periods have been reclassified from Other and non-recurring income (loss) to Net investment gains and losses.
(4)
Primarily reflects release of $695 in deferred taxes in 2022
(5)
The impact of Tax Reform was adjusted in 2018 for return-to-provision adjustments, various amended returns filed by the Company, and final true-ups of deferred tax liabilities. Further impacts were recorded in 2019 as a result of additional guidance released by the IRS.
(6)
Tax benefit recognized in 2020 represents the release of valuation allowances on deferred tax benefits related to foreign tax credits.
3

Aflac Incorporated and Subsidiaries
Consolidated Statements of Earnings - U.S. GAAP
(In Millions, except per-share data)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2019202020212022202320232024Change20232024Change
Revenues:
Net earned premiums
  Gross premiums$19,122 $18,955 $17,305 $15,025 $14,318 $3,524 $3,360 $10,885 $10,193 
  Assumed (ceded)(342)(333)(210)(124)(195)(48)(32)(148)(84)
    Total net earned premiums (1)
18,780 18,622 17,095 14,901 14,123 3,476 3,328 (4.3)10,737 10,109 (5.8)
Net investment income3,578 3,638 3,818 3,656 3,811 1,004 1,006 .2 2,946 3,100 5.2 
Net investment gains (losses) (2)
(135)(270)468 363 590 423 (1,408)1,101 239 
Other income (2)
84 157 173 220 177 47 23 139 76 
     Total revenues22,307 22,147 21,554 19,140 18,701 4,950 2,949 (40.4)14,923 13,524 (9.4)
Benefits and Claims:
Benefits and claims, net
  Incurred claims -direct9,279 9,364 8,949 8,271 8,005 1,871 2,064 6,034 6,248 
  Incurred claims -assumed (ceded)(372)(296)(147)(108)(177)(33)(22)(114)(57)
  Increase in FPB (3)-direct
2,952 2,707 1,819 888 594 231 (40)499 (147)
  Increase in FPB (3)-assumed (ceded)
83 21 3 51 172 (4)1 1 (2)
Total net benefits and claims, excluding
  reserve remeasurement		N/AN/A10,623 9,102 8,594 2,065 2,003 6,420 6,042 
Reserve remeasurement (gain) lossN/AN/A(147)(215)(383)(205)(408)(312)(515)
    Total net benefits and claims11,942 11,796 10,476 8,887 8,211 1,860 1,595 (14.2)6,108 5,527 (9.5)
Acquisition and operating expenses:
   Amortization of DAC (4)
1,282 1,214 835 792 816 201 214 608 638 
   Insurance commissions1,321 1,316 1,256 1,117 1,052 250 251 797 751 
   Insurance expenses3,089 3,420 3,541 3,249 3,165 785 747 2,290 2,179 
   Interest expense228 242 238 226 195 49 50 148 147 
     Total acquisition and operating expenses5,920 6,192 5,870 5,384 5,228 1,285 1,262 (1.8)3,843 3,715 (3.3)
     Total benefits and expenses17,862 17,988 16,346 14,271 13,439 3,145 2,857 (9.2)9,951 9,242 (7.1)
     Pretax earnings4,445 4,159 5,208 4,869 5,262 1,805 92 4,972 4,282 
Income tax expense (benefit) (5)
1,141 (619)977 451 603 236 185 581 741 
     Net earnings$3,304 $4,778 $4,231 $4,418 $4,659 $1,569 $(93)(105.9)$4,391 $3,541 (19.4)
(1) Includes a gain (loss) of $(75) and $22 for the three-month periods and $(80) and $22 for the nine-month periods ended September 30, 2024 and 2023, respectively, related to remeasurement of the deferred profit liability for limited-payment contracts.
(2) Foreign currency gains and losses for all periods have been reclassified from Other income to Net investment gains and losses for consistency with current period presentation.
(3) Future policy benefits
(4) Deferred acquisition costs
(5) Primarily reflects release of $695 in deferred taxes in 2022
4

Aflac Incorporated and Subsidiaries
Analysis of Net Earnings and Net Earnings Per Diluted Share
(In Millions, except for per-share data)
Other andForeign
NetOther and Non-ForeignNetNetNon-RecurringCurrency
NetInvestmentRecurringCurrencyEarningsInvestmentItemsImpact
PeriodEarnings
Gains (Losses) (1)
Items (1)(3)(4)
Impact (2)
Per Share
Gains (Losses) (1)
Per Share (1)(3)(4)
Per Share (2)
20193,304 (13)3 15 4.43 (.02).01 .02 
20204,778 (181)1,407 31 6.67 (.25)1.96 .04 
20214,231 365 (59)(42)6.25 .54 (.09)(.06)
20224,418 803 1 (262)6.93 1.26 — (.41)
20234,659 896 31 (113)7.78 1.50 .05 (.19)
202211,047 106 (1)(35)1.60 .16 — (.05)
21,394 448 — (59)2.17 .70 — (.09)
31,781 871 1 (97)2.82 1.38 — (.15)
4196 (621)— (70).31 (1.00)— (.11)
202311,188 235 — (41)1.94 .38 — (.07)
21,634 653 28 (25)2.71 1.08 .05 (.04)
31,569 472 2 (33)2.64 .80 — (.06)
4268 (464)— (14).46 (.79)— (.02)
202411,879 920 (2)(44)3.25 1.59 — (.08)
21,755 720 — (37)3.10 1.27 — (.07)
3(93)(1,304)— (16)(.17)(2.33)— (.03)
(1) Items are presented net of tax.
(2) See non-U.S. GAAP financial measures for definition of adjusted earnings excluding current period foreign currency impact
(3) Foreign currency gains and losses and amortized hedge costs/income for all periods have been reclassified from Other income to Net investment gains and losses for consistency with current period presentation.
(4 )Tax benefit recognized in the third quarter of 2020 represents the release of valuation allowances on deferred tax benefits related to foreign tax credits.

5

Aflac Incorporated and Subsidiaries
Consolidated Balance Sheets
(In Millions, except per-share data)
December 31,September 30,
Assets:2019202020212022202320232024
Investments and cash:
Securities available for sale:
Fixed maturity securities available for sale, at fair value$86,950 $101,286 $94,206 $71,936 $69,578 $66,369 $68,261 
Fixed maturity securities available for sale - consolidated variable interest entities, at fair value4,312 4,596 4,490 3,805 3,712 3,432 4,031 
Fixed maturity securities held to maturity, at amortized cost, net of allowance for credit losses30,085 24,464 22,000 19,056 17,819 16,899 17,698 
Equity securities, at fair value802 1,283 1,603 1,091 1,088 990 808 
Commercial mortgage and other loans, net of allowance for credit losses9,569 10,554 11,786 13,496 12,527 12,873 11,544 
Other investments1,477 2,429 3,842 4,070 4,530 5,241 7,647 
Cash and cash equivalents4,896 5,141 5,051 3,943 4,306 5,502 5,612 
   Total investments and cash138,091 149,753 142,978 117,397 113,560 111,306 115,601 
Receivables, net of allowance for credit losses (1)
816 778 672 647 848 712 814 
Accrued investment income772 780 737 745 731 687 696 
Deferred policy acquisition costs10,128 10,441 9,848 9,239 9,132 8,771 9,232 
Property and equipment, net581 601 538 530 445 445 421 
Other assets, net of allowance for credit losses (1)(2)
2,380 2,733 3,377 3,180 2,008 3,190 1,678 
Total assets$152,768 $165,086 $158,150 $131,738 $126,724 $125,111 $128,442 
Liabilities and Shareholders' Equity:
Liabilities:
Total policy liabilities$106,554 $114,391 $126,331 $96,910 $91,599 $86,028 $87,554 
Notes payable6,569 7,899 7,956 7,442 7,364 6,961 7,978 
Income taxes, primarily deferred5,370 4,661 30 698 154 869 454 
Other liabilities5,316 4,576 6,802 6,548 5,622 8,584 7,626 
Total liabilities123,809 131,527 141,119 111,598 104,739 102,442 103,612 
Shareholders' equity:
Common stock135 135 135 135 136 136 136 
Additional paid-in capital2,313 2,410 2,529 2,641 2,771 2,729 2,876 
Retained earnings34,291 37,984 40,963 44,367 47,993 48,257 50,972 
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains (losses)(1,623)(1,109)(1,985)(3,564)(4,069)(4,484)(4,139)
Unrealized gains (losses) on fixed maturity securities8,548 10,361 9,602 (702)1,139 (403)557 
Unrealized gains (losses) on derivatives(33)(34)(30)(27)(22)(24)(20)
Effect of change in discount rate assumption(s)N/AN/A(15,832)(2,100)(2,560)(866)(67)
Pension liability adjustment(277)(284)(166)(36)(8)17 (8)
Treasury stock(14,395)(15,904)(18,185)(20,574)(23,395)(22,693)(25,477)
Total shareholders' equity28,959 33,559 17,031 20,140 21,985 22,669 24,830 
Total liabilities & shareholders' equity$152,768 $165,086 $158,150 $131,738 $126,724 $125,111 $128,442 
(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity.
(2) Includes goodwill of $265 million in 2024, $269 million in 2023, $265 in 2022, $268 in 2021, $269 million in 2020 and $140 million in 2019
6

Aflac Incorporated and Subsidiaries
Quarterly Financial Results
(Dollars In Millions, except per-share data)
Total
NetNetBenefitsAcquisitionsTotalNet EPS
Adj. EPS (1)
EarnedInv.Total&&PretaxNetAdjusted
PeriodPremiumsIncomeRevenuesClaims, NetAdj. Exp.Earn.Earn.
Earn. (1)
BasicDil.BasicDil.
201918,780 3,578 22,307 11,942 5,920 4,445 3,304 3,314 4.45 4.43 4.46 4.44 
202018,622 3,638 22,147 11,796 6,192 4,159 4,778 3,552 6.69 6.67 4.98 4.96 
202117,095 3,818 21,554 10,476 5,870 5,208 4,231 3,925 6.28 6.25 5.83 5.80 
202214,901 3,656 19,140 8,887 5,384 4,869 4,418 3,614 6.96 6.93 5.69 5.67 
202314,123 3,811 18,701 8,211 5,228 5,262 4,659 3,733 7.81 7.78 6.26 6.23 
202214,079 903 5,173 2,483 1,396 1,294 1,047 942 1.61 1.60 1.45 1.44 
23,764 937 5,315 2,274 1,333 1,708 1,394 945 2.18 2.17 1.47 1.47 
33,535 920 4,704 2,076 1,299 1,329 1,781 910 2.83 2.82 1.45 1.44 
43,523 896 3,948 2,054 1,356 538 196 817 .32 .31 1.32 1.31 
202313,688 943 4,800 2,150 1,308 1,342 1,188 953 1.94 1.94 1.56 1.55 
23,573 999 5,172 2,098 1,249 1,825 1,634 954 2.72 2.71 1.59 1.58 
33,476 1,004 4,950 1,860 1,285 1,805 1,569 1,095 2.65 2.64 1.85 1.84 
43,385 865 3,777 2,103 1,385 289 268 732 .46 .46 1.26 1.25 
202413,456 1,000 5,436 2,010 1,256 2,170 1,879 961 3.27 3.25 1.67 1.66 
23,325 1,095 5,138 1,921 1,198 2,019 1,755 1,035 3.11 3.10 1.83 1.83 
33,328 1,006 2,949 1,595 1,262 92 (93)1,211 (0.17)(0.17)2.17 2.16 


















(1) See non-U.S. GAAP financial measures for definition of adjusted earnings.
7

Aflac Incorporated and Subsidiaries
Quarterly Book Value Per Share
(Dollars In Millions, except per-share data)
Adjusted BV
Adjusted BVPer Share Incl
EquityAOCIAdjusted BVPer Share InclForeign Currency
BV PerBV PerAdjusted BVPer ShareForeign CurrencyTranslation G/(L)
PeriodShareShare
Per Share (1)
% Change
Translation G/(L)(1)
% Change
201939.849.1030.748.9%28.5110.6%
202048.4612.9035.5615.7%33.9619.1%
202126.12(12.90)39.019.7%35.975.9%
202232.73(10.45)43.1810.7%37.393.9%
202338.00(9.54)47.5510.1%40.518.3%
2022127.21(13.09)40.3110.1%36.537.0%
230.82(11.00)41.8211.3%36.754.6%
331.97(12.03)44.0014.6%36.993.4%
432.73(10.45)43.1810.7%37.393.9%
2023132.65(12.01)44.6610.8%38.695.9%
234.30(12.31)46.6111.5%39.487.4%
338.63(9.81)48.4410.1%40.8010.3%
438.00(9.54)47.5510.1%40.518.3%
2024141.27(8.95)50.2212.4%42.048.7%
246.40(5.86)52.2612.1%43.199.4%
344.60(6.60)51.215.7%43.777.3%














(1) See non-U.S. GAAP financial measures for definition of adjusted book value and adjusted book value including unrealized
foreign currency translation gains and losses.
8

Aflac Incorporated and Subsidiaries
Return on Equity
Year Ended December 31,3 Months Ended September 30, 9 Months Ended September 30,
20192020
2021 (4)
202220232023202420232024
U.S. GAAP ROE (1) - Net earnings
12.6 %15.3 %26.7 %23.8 %22.1 %29.1 %(1.5)%27.4 %20.2 %
Impact of excluding unrealized foreign currency translation gains (losses)(1.0)(0.9)(1.7)(2.5)(3.1)(4.5)0.3 (4.0)(2.9)
Impact of excluding unrealized gains (losses) on securities and derivatives3.6 6.2 10.7 4.1 0.2 0.8 — (0.6)0.6 
Impact of excluding effect on change in discount rate assumptionsN/AN/A(18.5)(8.2)(1.9)(3.1)— (1.5)(0.9)
Impact of excluding pension liability adjustment(0.1)(0.2)(0.2)(0.1)— — — — — 
Impact of excluding AOCI2.5 5.1 (9.7)(6.8)(4.9)(6.8)0.2 (6.1)(3.3)
U.S. GAAP ROE - less AOCI15.1 20.3 17.0 17.0 17.2 22.3 (1.3)21.3 16.9 
Differences between adjusted earnings and net earnings (2)
— (5.2)(1.2)(3.1)(3.4)(6.7)18.0 (6.7)(1.6)
Adjusted ROE - reported (3)
15.2 15.1 15.8 13.9 13.8 15.6 16.7 14.6 15.3 
(1)U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
(2)See separate reconciliation of net income to adjusted earnings.
(3)See non-U.S. GAAP financial measures for definition of adjusted return on equity
(4)Return on equity calculations for 2021 use beginning retained earnings and accumulated other comprehensive income adjusted for the adoption of LDTI.
9

Aflac Incorporated and Subsidiaries
Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact (1)
(Diluted Basis)
Change
QTDYTDExcludingExcluding
ForeignForeignForeignForeign
AdjustedCurrencyCurrencyCurrencyCurrency
Period
EPS(1)
Growth
Impact(1)
Impact(1)
Impact(1)
Impact
2019$4.44 6.7 %N/A.02 $4.42 6.3 %
2020$4.96 11.7 %N/A.04 $4.92 10.8 %
2021$5.80 16.9 %N/A(.06)$5.86 18.1 %
2022$5.67 (2.2)%N/A(.41)$6.08 4.8 %
2023$6.23 9.9 %N/A(.19)$6.43 13.4 %
20221$1.44 .7 %(.05)(.05)$1.50 4.9 %
21.47 — (.09)(.15)1.56 6.1 
31.44 (8.3)(.15)(.30)1.59 1.3 
41.31 (.8)(.11)(.41)1.43 8.3 
$5.67 (2.2)%$6.08 4.8 %
20231$1.55 7.6 %(.07)(.07)$1.62 12.5 %
21.58 7.5 (.04)(.11)1.62 10.2 
31.84 27.8 (.06)(.17)1.90 31.9 
41.25 (4.6)(.02)(.19)1.28 (2.3)
$6.23 9.9 %$6.43 13.4 %
20241$1.66 7.1 %(.08)(.08)$1.74 12.3 %
21.83 15.8 (.07)(.14)1.89 19.6 
32.16 0.17 (.03)(.17)2.19 0.19 
$5.64 13.5 %$5.81 16.9 %
(1) See non-U.S.GAAP financial measures for definition of adjusted earnings and adjusted earnings excluding current period foreign currency impact
10

Aflac Incorporated and Subsidiaries
Composition of Invested Assets
(In Millions)
December 31,September 30,
2019202020212022202320232024
Fixed Maturity Securities(1)
$109,456 $116,056 $107,369 $94,525 $88,508 $86,060 $88,117 
Commercial mortgage and other loans, net of allowance for credit losses (1)
Transitional Real Estate (floating rate)5,450 5,231 5,246 6,455 5,998 6,439 5,249 
Middle Market Loans (floating rate)2,412 3,635 4,601 5,028 4,531 4,712 4,408 
Commercial Mortgage Loans1,707 1,688 1,854 1,775 1,697 1,422 1,545 
Other Loans— — 20 238 301 300 342 
Total Commercial mortgage and other loans, net of allowance for credit losses(1)
9,569 10,554 11,721 13,496 12,527 12,873 11,544 
Equity Securities, at FV through net earnings802 1,283 1,603 1,091 1,088 990 808 
Alternatives(2)
551 919 1,703 2,107 2,619 2,498 2,967 
Total Portfolio$120,378 $128,812 $122,396 $111,219 $104,742 $102,421 $103,436 
Unrealized Gains (Losses) on Invested Assets
(In Millions)
December 31,September 30,
2019202020212022202320232024
Fixed Maturity Securities
     Available For Sale - Gross Gains$12,266 $14,771 $13,566 $4,800 $6,050 $5,061 $5,748 
     Available For Sale - Gross Losses(375)(481)(239)(4,528)(3,449)(4,421)(3,875)
     Total Available For Sale11,891 14,290 13,327 272 2,601 640 1,873 
     Held to Maturity - Gross Gains7,519 5,935 4,869 2,154 1,838 1,561 1,277 
     Held to Maturity - Gross Losses(10)— — — — — — 
     Total Held to Maturity$7,509 $5,935 $4,869 $2,154 $1,838 $1,561 $1,277 
Credit Ratings on Fixed Maturities
(At Amortized Cost)
December 31, September 30,
Credit Rating2019202020212022202320232024
AAA1.1 %1.0 %1.0 %1.6 %1.6 %1.5 %1.4 %
AA4.3 4.5 5.1 5.2 5.7 5.7 6.0 
A68.6 69.3 68.9 68.0 68.1 68.0 68.5 
BBB23.1 21.9 22.5 23.0 22.9 22.8 22.7 
BB or Lower2.9 3.3 2.5 2.2 1.7 2.0 1.4 
100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
(1) Presented at amortized cost, net of reserves beginning in 2020

(2) Presented at carrying value; includes asset classes such as private equity and real estate funds managed by Global Investments; excludes Corporate driven activity, policy loans, short-term investments, real estate owned assets and FHLB equity balances
11

Aflac Incorporated and Subsidiaries
Supplemental Investment Data by Segment
3 Months Ended9 Months Ended
December 31,September 30,September 30,
201920202021202220232023202420232024
Aflac Japan:
   Invested assets (in millions)(1)
¥11,784,586 ¥11,936,087 ¥12,405,531 ¥12,617,181 ¥12,127,531 ¥12,945,618 ¥12,367,665 ¥12,945,618 ¥12,367,665 
   Return on average invested assets(2)
2.33 %2.38 %2.72 %2.78 %2.90 %3.07 %3.16 %2.80 %3.31 %
   Portfolio book yield at end of period(3)
2.64 %2.59 %2.60 %3.06 %3.18 %3.19 %3.21 %3.19 %3.21 %
   Total purchases for period (in millions)(3)
¥1,003,885 ¥714,124 ¥952,038 ¥716,964 ¥378,541 ¥70,531 ¥190,132 ¥317,355 ¥647,176 
   New money yield(3)(4)
3.83 %3.75 %3.50 %4.48 %5.18 %4.28 %6.21 %4.84 %5.85 %
Aflac U.S.:
   Invested assets (in millions)(1)
$14,036 $14,848 $15,841 $16,772 $17,075 $16,861 $17,337 $16,861 $17,337 
   Return on average invested assets(2)
5.70 %4.90 %4.87 %4.72 %4.88 %5.04 %4.94 %4.84 %5.00 %
   Portfolio book yield at end of period(3)
5.40 %5.18 %4.94 %5.39 %5.53 %5.52 %5.63 %5.52 %5.63 %
   Total purchases for period (in millions)(3)
$1,835 $1,050 $2,130 $1,701 $907 $217 $158 $748 $886 
   New money yield(3)(4)
4.51 %3.04 %3.41 %5.16 %7.56 %7.21 %6.00 %7.38 %6.76 %
Hedge Costs/Income Metrics (5)(6)
3 Months Ended9 Months Ended
December 31,September 30,September 30,
201920202021202220232023202420232024
Aflac Japan:
FX hedged notional at end of period (in billions) - forwards (7)
$8.8 $6.0 $6.4 $4.1 $— $— $— $— $— 
FX hedged notional at end of period (in billions) - put options9.2 13.1 11.6 13.5 24.7 24.4 24.7 24.4 24.7 
Amortized hedge costs for period (in millions)(257)(206)(76)(112)(157)(26)(7)(148)(19)
Corporate and Other (Parent Company):
FX hedged notional at end of period (in billions) - forwards (7)
$4.9 $5.0 $5.0 $5.0 $2.6 $2.4 $1.9 $2.4 $1.9 
FX hedged notional at end of period (in billions) - put options2.0 2.0 1.9 2.6 0.5 0.9 — 0.9 — 
Amortized hedge income (costs) for period (in millions)89 97 57 68 122 25 25 92 87 
(1) Invested assets, including cash and short term investments, are stated at amortized cost; except for equities, which are at fair value.
(2) Net of investment expenses and amortized hedge costs, year-to-date number reflected on a quarterly average basis
(3) Includes fixed maturity securities, commercial mortgage and other loans, equity securities, and excludes alternative investments in limited partnerships, and any impacts from hedging activities
(4) Reported on a gross yield basis; excludes investment expenses, external management fees, and amortized hedge costs
(5) See non-U.S. GAAP financial measures for definition of amortized hedge costs/income. Further, the metrics in this table are split to show the hedging of the market value of a portion of the USD investments in Japan
     Segment’s "USD Program" in the "Japan Segment Portfolio Allocation by Currency" table on page 13 of this supplement as well as the corporate hedging activities at Aflac Incorporated
(6) Aflac Japan and the Parent Company utilize foreign currency forwards and options to hedge foreign currency exchange rate risk. The hedge cost/income on the table above reflects our FX forward protection of the hedged
    USD portfolio, and hedge costs on one sided options used as caps, and on tail-risk put options.
(7) Notional is reported net of any offsetting positions within Aflac Japan or the Parent Company, respectively.
12

Aflac Incorporated and Subsidiaries
Japan Segment Portfolio Allocation by Currency (1)
(Dollars In Millions, U.S. GAAP Basis)
December 31, 2023September 30, 2024
Amortized
Cost (3)
Fair
Value
Amortized
Cost (3)
Fair
Value
JGB$39,151 $40,222 $38,280 $37,942 
Other19,517 20,285 18,691 19,155 
Total yen denominated58,668 60,507 56,971 57,097 
USD Program23,384 25,254 25,632 27,363 
Other2,081 2,902 2,063 2,957 
US dollar denominated25,465 28,156 27,695 30,320 
Total$84,133 $88,663 $84,666 $87,417 
Distribution of Consolidated Fixed Maturities by Sector (2)
September 30, 2024
(In millions)
Amortized Cost (3)
% of
Total
Government and agencies$39,471 44.8 %
Municipalities2,443 2.8 
Mortgage- and asset-backed securities3,595 4.1 
Public utilities7,060 8.0 
Electric5,631 6.4 
Natural Gas889 1.0 
Other540 .6 
Sovereign and supranational862 1.1 
Banks/financial institutions9,391 10.6 
Banking5,589 6.3 
Insurance1,886 2.1 
Other1,916 2.2 
Other corporate25,295 28.6 
Basic Industry2,156 2.4 
Capital Goods3,001 3.4 
Communications2,723 3.1 
Consumer Cyclical1,996 2.3 
Consumer Non-Cyclical5,861 6.7 
Energy2,233 2.5 
Other1,176 1.3 
Technology3,216 3.6 
Transportation2,933 3.3 
        Total fixed maturity securities$88,117 100.0 %
(1) The entire U.S. segment investment portfolio is U.S. dollar denominated.
(2)In the first quarter of 2023, the Utility/Energy subsector was combined with the Natural Gas subsector to better reflect the risk characteristics of those issuers and align more closely with industry
  benchmarks.
(3) Net of reserves
13

Aflac Incorporated and Subsidiaries
Long-Term Debt Data
Adjusted Leverage Ratios
(In Millions)
December 31,September 30,
2019202020212022202320232024
Notes payable$6,569 $7,899 $7,956 $7,442 $7,364 $6,961 $7,978 
50% of subordinated debentures and perpetual bonds(408)(432)(389)(337)(315)(299)(313)
Pre-funding of debt maturities(348)— — — (211)— — 
Adjusted debt (1)
5,814 7,467 7,568 7,105 6,839 6,663 7,666 

Total Shareholders' Equity28,959 33,559 17,031 20,140 21,985 22,669 24,830 
Accumulated other comprehensive (income) loss:
Unrealized foreign currency translation (gains) losses1,623 1,109 1,985 3,564 4,069 4,484 4,139 
Unrealized (gains) losses on fixed maturity securities(8,548)(10,361)(9,602)702 (1,139)403 (557)
Unrealized (gains) losses on derivatives33 34 30 27 22 24 20 
Effect on change in discount rate assumptions N/AN/A15,832 2,100 2,560 866 67 
Pension liability adjustment277 284 166 36 8 (17)8 
Adjusted book value (1)
22,344 24,625 25,442 26,569 27,505 28,429 28,507 
Adjusted capitalization ex-AOCI(1)(2)
$28,565 $32,524 $33,398 $34,011 $34,658 $35,390 $36,485 
Adjusted debt to adjusted capitalization ex-AOCI20.4 %23.0 %22.7 %20.9 %19.7 %18.8 21.0 %
Adjusted capitalization(1)(3)
$26,665 $31,131 $31,247 $30,411 $30,581 $30,923 $32,338 
Adjusted debt to adjusted capitalization21.8 %24.0 %24.2 %23.4 %22.4 %21.5 23.7 %
Debt Maturities(4)
(In Millions)
September 30, 2024
≤ 1 year1 > 5 years5 > 10 years10 > 20 years20 years +Total
Senior Notes$— $1,880 $2,995 $1,107 $1,310 $7,292 
Subordinated debt— — — — 631 631 
Total$— $1,880 $2,995 $1,107 $1,941 $7,923 

(1) See non-U.S. GAAP financial measures for definition of: adjusted debt; adjusted book value; adjusted debt, including 50% of subordinated debentures and perpetual bonds; and adjusted book value, including unrealized foreign currency translation gains and losses and pension liability adjustment
(2) Adjusted capitalization ex-AOCI is the sum of adjusted debt, including 50% of subordinated debentures and perpetual bonds, plus adjusted book value
(3)Adjusted capitalization is sum of adjusted debt, including 50% of subordinated debentures and perpetual bonds, plus adjusted book value, including unrealized foreign currency translation gains and losses and pension liability adjustment
(4) Debt maturity amounts do not include discounts, premiums, deferred charges, or capital lease obligations.
14

Aflac Incorporated and Subsidiaries

Insurer Financial Strength Ratings
AM BestMoody'sS&PJCRR&I
U.S. Operating Companies
Aflac of ColumbusA+Aa3A+AAAA
Aflac of New YorkA+_A+__
Continental American Insurance CompanyA+____
Japan Operating Company
Aflac Life Insurance Japan Ltd.A+Aa3A+AAAA
Bermuda Operating Company
Aflac Re Bermuda Ltd.___AA_
Issuer Credit Ratings
AM BestMoody'sS&PJCRR&I
Aflac Incorporated
Long-term Senior DebtaA3A-A+A+
Junior Subordinated Debta-Baa1BBB_A-
Aflac of Columbus
Long-term Senior Debtaa_A+AA_
Aflac Life Insurance Japan, Ltd.
Long-term Senior Debtaa_A+AA_
Subordinated Bonds___AA-_
The outlook for all ratings assigned by A.M. Best, S&P, Moody's and R&I is stable. The outlook for all ratings assigned by JCR is positive.

15

Aflac U.S.
Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2019202020212022202320232024Change20232024Change
Revenues:
Net earned premiums
  Gross premiums$5,818 $5,762 $5,540 $5,467 $5,669 $1,418 $1,480 $4,256 $4,440 
  Assumed (ceded)(11)(4)73 103 6 1 (21)16 (51)
    Total net earned premiums5,808 5,758 5,614 5,570 5,675 1,419 1,459 2.8 4,272 4,388 2.7 
Adjusted net investment income720 705 754 755 820 209 210 .5 609 634 4.1 
Other income excl. realized foreign
     exchange gains (losses)22 102 121 161 128 33 15 102 46 
     Total adjusted revenues6,550 6,565 6,489 6,486 6,623 1,661 1,684 1.4 4,983 5,068 1.7 
Benefits and claims:
Benefits and claims, net
  Incurred claims -direct2,611 2,498 2,183 2,245 2,423 602 744 1,796 2,164 
  Incurred claims -assumed (ceded)(5)(1)89 104 17 6 (17)20 (42)
  Increase in FPB -direct268 271 463 326 280 74 (18)234 6 
  Increase in FPB -assumed (ceded)(2)(3)(11)4 (5)(1)2 (3)3 
Total benefits and claims, net, excluding
  reserve remeasurement		N/AN/A2,724 2,679 2,715 682 711 2,048 2,130 
 Reserve remeasurement (gain) lossN/AN/A(85)(124)(283)(172)(17)(242)(71)
        Total benefits and claims, net2,871 2,765 2,639 2,555 2,431 510 694 36.1 1,805 2,059 14.1 
Adjusted expenses:
Amortization of deferred policy
     acquisition costs573 570 442 455 490 122 132 8.2 361 396 9.7 
Insurance commissions590 576 550 553 561 138 141 2.2 420 422 .5 
Insurance and other expenses1,244 1,386 1,502 1,564 1,640 414 367 (11.4)1,198 1,102 (8.0)
Total adjusted expenses 2,407 2,532 2,494 2,573 2,691 674 640 1,979 1,920 
     Total benefits and adjusted expenses5,279 5,297 5,132 5,127 5,122 1,183 1,334 12.8 3,784 3,979 5.2 
     Pretax adjusted earnings$1,272 $1,268 $1,356 $1,359 $1,501 $478 $350 (26.8)$1,199 $1,089 (9.2)
l
16

Aflac U.S.
Balance Sheets
(In Millions)
December 31,September 30,
2019202020212022202320232024
Assets:
Investments and cash$16,141 $17,949 $18,324 $15,987 $16,718 $15,641 $17,336 
Receivables, net of allowance for credit losses (1)
650 667 574 584 688 681 728 
Accrued investment income174 172 169 184 183 181 180 
Deferred policy acquisition costs3,544 3,450 3,366 3,463 3,573 3,530 3,616 
Other assets (1)
436 626 758 784 698 718 641 
Total assets$20,945 $22,864 $23,191 $21,002 $21,861 $20,751 $22,501 
Liabilities and Shareholders' Equity:
Future policy benefits$9,404 $9,674 $14,212 $10,870 $11,234 $10,319 $11,266 
Policy and contract claims1,779 2,010 151 200 258 246 376 
Other policy liabilities111 126 119 117 107 111 106 
Deferred income taxes51 235 (328)(243)(311)(226)(342)
Other liabilities1,803 2,016 2,010 2,080 2,062 1,845 2,030 
Shareholders' equity7,796 8,803 7,027 7,978 8,510 8,457 9,065 
Total liabilities & shareholders' equity$20,945 $22,864 $23,191 $21,002 $21,861 $20,751 $22,501 
(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity.

17

Aflac U.S.
Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Restated to conform to current classifications)
(Dollars In Millions)
NetTotalBenefits TotalPretax
Earned%Adjusted%Adjusted%&%%Adjusted%Adjusted%
PeriodPremiumsChangeNII ChangeRevenues ChangeClaims, NetChangeAmort.ChangeExpensesChangeEarn.Change
20195,808 1.8 720 (1.0)6,550 1.7 2,871 (.6)573 7.3 2,407 6.0 1,272 (1.0)
20205,758 (.9)705 (2.1)6,565 .2 2,765 (3.7)570 (.5)2,532 5.2 1,268 (.3)
20215,614 (2.5)754 7.0 6,489 (1.2)2,639 (4.6)442 (22.5)2,494 (1.5)1,356 6.9 
20225,570 (.8)755 .1 6,486 — 2,555 (3.2)455 2.9 2,573 3.2 1,359 .2 
20235,675 1.9 820 8.6 6,623 2.1 2,431 (4.9)490 7.7 2,691 4.6 1,501 10.4 
202211,413 (.6)184 4.5 1,639 .7 666 (4.3)114 2.7 640 6.7 333 .6 
21,394 (1.0)193 2.1 1,628 .1 658 (4.6)113 1.8 627 4.7 343 1.5 
31,375 (1.3)185 (3.1)1,598 (1.1)616 4.1 114 3.6 638 3.2 345 (14.8)
41,388 (.2)192 (2.5)1,621 .1 614 (7.0)115 4.5 667 (1.3)339 20.2 
202311,428 1.1 197 7.1 1,660 1.3 651 (2.3)119 4.4 657 2.7 352 5.7 
21,425 2.2 203 5.2 1,663 2.1 645 (2.0)120 6.2 648 3.3 369 7.6 
31,419 3.2 209 13.0 1,661 3.9 510 (17.2)122 7.0 674 5.6 478 38.6 
41,403 1.1 211 9.9 1,639 1.1 626 2.0 129 12.2 712 6.7 302 (10.9)
202411,475 3.3 206 4.6 1,699 2.3 686 5.4 132 10.9 658 .2 356 1.1 
21,455 2.1 218 7.4 1,684 1.3 680 5.4 132 10.0 621 (4.2)383 3.8 
31,459 2.8 210 .5 1,684 1.4 694 36.1 132 8.2 640 (5.0)350 (26.8)














18

Aflac U.S.
Operating Ratios
(Before Management Fee)
12-Mo. RollingTotal AdjustedCombinedPretax
PremiumTot. Ben./Amort./Expenses/Ratio/Profit
 Period
Persistency (1)
PremiumPremiumTotal Adj. Rev.Total Adj. Rev.Margin
201977.7 49.4 9.9 36.7 80.6 19.4 
202079.3 48.0 9.9 38.6 80.7 19.3 
202179.7 47.0 7.9 38.4 79.1 20.9 
202277.3 45.9 8.2 39.7 79.0 21.0 
202378.6 42.8 8.6 40.6 77.3 22.7 
2024 YTD78.9 46.9 9.0 37.9 78.5 21.5 
2022178.7 47.1 8.1 39.0 79.7 20.3 
278.1 47.2 8.1 38.5 78.9 21.1 
377.9 44.8 8.3 39.9 78.4 21.6 
477.3 44.2 8.3 41.1 79.1 20.9 
2023177.9 45.6 8.3 39.6 78.8 21.2 
278.2 45.3 8.4 39.0 77.8 22.2 
378.7 35.9 8.6 40.6 71.2 28.8 
478.6 44.6 9.2 43.4 81.6 18.4 
2024178.7 46.5 8.9 38.7 79.0 21.0 
278.7 46.7 9.1 36.9 77.3 22.7 
378.9 47.6 9.0 38.0 79.2 20.8 
(1) Includes Network Dental & Vision, Consumer Markets, and Group Premier Life, Absence Management, and Disability Solutions products
   beginning in the first quarter of 2021











19

Aflac U.S.
Aflac U.S. Sales Results
(Dollars In Millions)
Annl.New Annl.
Prem.%Prem.%
PeriodIn ForceChangeSalesChange
20196,301 1.1 1,580 (1.3)
20206,099 (3.2)1,093 (30.8)
20216,003 (1.6)1,278 16.9 
20225,967 (.6)1,483 16.1 
20236,161 3.3 1,558 5.0 
202215,942 (1.4)299 19.0 
25,926 (1.0)305 15.6 
35,889 (.7)334 11.8 
45,967 (.6)545 17.4 
202316,023 1.4 315 5.3 
26,064 2.3 324 6.4 
36,062 2.9 359 7.5 
46,161 3.3 559 2.6 
202416,211 3.1 298 (5.2)
26,239 2.9 331 2.0 
36,265 3.3 379 5.5 




20

Aflac U.S.
Aflac U.S. Product Mix
(New Annualized Premium Sales, Dollars in Millions)
% of% of% ofCritical% ofHospital% ofDental/% of
PeriodDisabilityTotalLife TotalAccident Total
Care(1)
TotalIndemnityTotalVisionTotalTotal
2019355 22.5 97 6.1 450 28.5 346 21.9 263 16.6 69 4.4 1,580
2020243 22.3 80 7.3 285 26.1 242 22.2 197 18.0 45 4.1 1,093
2021296 23.1 114 9.0 321 25.1 273 21.3 209 16.4 65 5.1 1,278
2022378 25.5 156 10.5 338 22.8 299 20.1 226 15.3 85 5.8 1,483
2023399 25.6 188 12.0 326 20.9 322 20.7 225 14.5 98 6.3 1,558
2022170 23.3 24 7.9 75 25.3 63 21.2 50 16.7 17 5.6 299
277 25.2 26 8.3 75 24.6 63 20.6 45 14.9 19 6.4 305
397 28.9 33 10.0 76 22.6 60 18.1 47 14.1 21 6.3 334
4135 24.9 73 13.4 112 20.5 112 20.6 84 15.4 28 5.2 545
2023179 25.2 26 8.3 74 23.5 64 20.5 50 15.9 21 6.6 315
280 24.8 35 10.7 73 22.4 66 20.4 46 14.3 24 7.4 324
3101 28.2 54 15.0 72 19.9 67 18.6 45 12.6 20 5.7 359
4139 24.8 73 13.0 107 19.2 124 22.2 83 14.9 33 5.9 559
2024169 23.0 32 10.8 67 22.5 66 22.1 45 15.1 19 6.5 298
285 25.7 41 12.4 70 21.2 70 21.1 45 13.7 19 5.9 331 
3109 28.8 69 18.3 67 17.7 71 18.6 45 11.9 18 4.7 379 
Aflac U.S. Sales Force Data
 AverageProductivity
Weekly(Production/
Recruited AgentsProducerAvg. Weekly
PeriodCareerBrokerTotalEquivalentsProducers)
201915,227 3,603 18,830 8,184 193,120 
202011,826 1,861 13,687 5,918 184,706 
202110,641 5,445 16,086 5,993 213,235 
20229,550 1,500 11,050 6,186 239,786 
202310,103 1,463 11,566 6,239 249,663 
202211,987 455 2,442 6,061 49,322 
22,937 391 3,328 6,067 50,264 
32,358 339 2,697 6,010 55,599 
42,268 315 2,583 6,607 82,538 
202312,676 348 3,024 6,108 51,525 
22,801 399 3,200 6,196 52,361 
32,407 431 2,838 6,044 59,425 
42,219 285 2,504 6,608 84,645 
202412,330 346 2,676 5,800 51,432 
23,113 422 3,535 6,098 54,262 
32,553 335 2,888 5,890 64,336 

(1) Includes cancer, critical illness, and hospital intensive care products
21

Aflac Japan
Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2019202020212022202320232024Change20232024Change
Revenues:
Net earned premiums
  Gross premiums¥1,450,586 ¥1,409,134 ¥1,290,527 ¥1,246,657 ¥1,212,654 ¥304,456 ¥280,795 ¥913,996 ¥869,962 
  Assumed (ceded)(57,974)(55,926)(50,864)(48,578)(84,838)(19,151)(25,398)(58,265)(77,387)
    Total net earned premiums1,392,612 1,353,208 1,239,663 1,198,079 1,127,816 285,305 255,397 (10.5)855,731 792,575 (7.4)
Net investment income (1)
   Yen denominated142,473 138,397 138,513 149,449 138,073 35,175 32,110 (8.7)104,158 101,787 (2.3)
   US$ denominated157,717 167,541 202,905 215,171 247,277 67,001 67,816 1.2 182,941 209,442 14.5 
Net investment income300,191 305,938 341,419 364,621 385,352 102,176 99,953 (2.2)287,100 311,258 8.4 
Amortized hedge costs on foreign investments (2)
(28,938)(22,816)(8,391)(13,155)(19,773)(3,310)(984)(70.3)(19,340)(2,751)(85.8)
Adjusted net investment income271,253 283,122 333,028 351,466 365,579 98,866 98,969 .1 267,760 308,507 15.2 
Other income excl. realized foreign
currency gains (losses)4,869 4,497 4,512 4,442 4,720 1,192 966 3,561 3,024 
     Total adjusted revenues1,668,734 1,640,827 1,577,203 1,553,988 1,498,115 385,363 355,332 (7.8)1,127,052 1,104,106 (2.0)
Benefits and claims:
Benefits and claims, net
  Incurred claims -direct727,491 734,471 743,247 788,572 781,774 184,015 196,886 584,820 617,063 
  Incurred claims -assumed (ceded)(45,657)(37,806)(31,798)(36,141)(70,748)(14,754)(18,570)(47,148)(56,754)
  Increase in FPB -direct292,444 260,200 149,084 73,592 44,121 22,311 (2,445)36,954 (22,084)
  Increase in FPB -assumed (ceded)(6,497)(11,377)(11,425)(5,618)2,226 (690)3,389 (681)8,573 
   Total benefits and claims, net, excluding reserve
      remeasurement		N/AN/A849,108 820,405 757,373 190,881 179,260 573,945 546,798 
   Reserve remeasurement (gain) lossN/AN/A(6,879)(13,337)(13,072)(5,027)(53,712)(9,510)(61,474)
            Total benefits and claims, net967,782 945,487 842,229 807,068 744,301 185,855 125,548 (32.4)564,435 485,325 (14.0)
Adjusted expenses:
Amortization of deferred policy
    acquisition costs77,286 68,818 43,131 44,123 45,840 11,435 12,257 7.2 34,074 36,541 7.2 
Insurance commissions79,661 79,036 77,449 73,482 68,751 16,113 16,372 1.6 51,934 49,784 (4.1)
Insurance and other expenses189,203 199,606 202,586 198,493 182,364 45,521 42,410 (6.8)132,493 118,626 (10.5)
Total adjusted expenses346,150 347,460 323,166 316,097 296,955 73,068 71,039 218,501 204,950 
      Total benefits and adjusted expenses1,313,932 1,292,947 1,165,395 1,123,165 1,041,256 258,923 196,587 (24.1)782,935 690,274 (11.8)
Pretax adjusted earnings¥354,802 ¥347,881 ¥411,808 ¥430,823 ¥456,859 ¥126,440 ¥158,745 25.5 ¥344,117 ¥413,832 20.3 
(1) Includes the net interest cash flows from derivatives associated with certain investment strategies
(2) See non-U.S. GAAP financial measures for the definition of amortized hedge costs/income
22

Aflac Japan
Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2019202020212022202320232024Change20232024Change
Revenues:
Net earned premiums
  Gross premiums$13,304 $13,193 $11,765 $9,558 $8,649 $2,105 $1,880 $6,629 $5,753 
  Assumed (ceded)(532)(524)(463)(372)(602)(132)(171)(422)(512)
    Total net earned premiums12,772 12,670 11,301 9,186 8,047 1,973 1,709 (13.4)6,207 5,241 (15.6)
Net investment income (1)
   Yen denominated1,307 1,296 1,262 1,140 985 243 215 (11.5)755 673 (10.9)
   US$ denominated1,446 1,569 1,845 1,641 1,755 462 453 (1.9)1,320 1,382 4.7 
      Net investment income2,753 2,865 3,107 2,782 2,739 705 668 (5.2)2,075 2,055 (1.0)
Amortized hedge costs on foreign investments (2)
(257)(206)(76)(112)(157)(26)(7)(73.1)(148)(19)(87.2)
Adjusted net investment income2,496 2,659 3,031 2,669 2,582 679 662 (2.5)1,927 2,036 5.7 
Other income excl. realized foreign
currency gains (losses)45 42 41 35 35 8 7 26 20 
     Total adjusted revenues15,313 15,371 14,373 11,890 10,664 2,660 2,378 (10.6)8,160 7,297 (10.6)
Benefits and claims
Benefits and claims, net
  Incurred claims -direct6,671 6,875 6,776 6,038 5,582 1,273 1,319 4,250 4,085 
  Incurred claims -assumed (ceded)(419)(354)(290)(275)(502)(102)(124)(342)(376)
  Increase in FPB -direct2,684 2,437 1,356 562 314 157 (22)265 (153)
  Increase in FPB -assumed (ceded)(60)(107)(104)(43)15 (9)24 (9)58 
Total benefits and claims, net, excluding reserve
      remeasurement		N/AN/A7,738 6,282 5,409 1,319 1,197 4,164 3,614 
Reserve remeasurement (gain) lossN/AN/A(62)(91)(96)(33)(369)(68)(421)
Total benefits and claims, net8,877 8,851 7,675 6,191 5,313 1,286 828 (35.6)4,097 3,193 (22.1)
Adjusted expenses:
Amortization of deferred policy
    acquisition costs709 644 393 338 326 79 82 3.8 247 242 (2.0)
Insurance commissions 731 740 706 563 491 112 110 (1.8)377 330 (12.5)
Insurance and other expenses1,734 1,873 1,843 1,517 1,299 315 285 (9.5)960 785 (18.2)
Total adjusted expenses3,174 3,257 2,942 2,417 2,117 506 477 1,585 1,357 
     Total benefits and adjusted expenses12,051 12,108 10,618 8,609 7,430 1,791 1,305 (27.1)5,682 4,550 (19.9)
     Pretax adjusted earnings$3,261 $3,263 $3,756 $3,281 $3,234 $869 $1,073 23.5 $2,479 $2,747 10.8 
(1) Includes the net interest cash flows from derivatives associated with certain investment strategies
(2) See non-U.S. GAAP financial measures for definition of amortized hedge costs/income
23

Aflac Japan    

        
Balance Sheets
(In Millions)
December 31,September 30,
2019202020212022202320232024
Assets:
Investments and cash¥12,847,994 ¥13,080,154 ¥13,645,902 ¥12,777,746 ¥12,566,939 ¥13,282,202 ¥12,658,627 
Receivables, net of allowance for credit losses28,219 20,782 22,439 23,138 24,848 21,270 25,916 
Accrued investment income65,485 62,722 67,493 76,489 74,666 73,446 69,705 
Deferred policy acquisition costs721,341 723,579 745,510 766,506 788,394 783,890 801,575 
Other assets308,411 320,351 386,832 387,065 946,644 708,507 878,775 
   Total assets¥13,971,450 ¥14,207,588 ¥14,868,176 ¥14,030,944 ¥14,401,491 ¥14,869,316 ¥14,434,598 
Liabilities and Shareholders' Equity:
Future policy benefits¥8,924,868 ¥9,175,501 ¥11,755,704 ¥10,315,140 ¥10,444,044 ¥10,264,585 ¥9,921,238 
Policy and contract claims315,477 328,778 — 28 465 433 679 
Unearned premiums453,133 361,010 284,045 227,732 192,595 200,677 187,927 
Other policyholders' funds801,588 808,429 877,690 880,989 874,854 879,922 869,954 
Income taxes (prim. deferred)618,901 478,969 36,166 114,688 95,297 136,978 149,851 
Other liabilities357,135 253,219 502,633 575,554 576,879 1,010,041 785,070 
Shareholders' equity2,500,349 2,801,682 1,411,938 1,916,812 2,217,357 2,376,680 2,519,880 
   Total liabilities & shareholders' equity¥13,971,450 ¥14,207,588 ¥14,868,176 ¥14,030,944 ¥14,401,491 ¥14,869,316 ¥14,434,598 

24

Aflac Japan

        
        
Balance Sheets
(In Millions)
December 31,September 30,
2019202020212022202320232024
Assets:
Investments and cash$117,269 $126,378 $118,639 $96,290 $88,606 $88,797 $88,689 
Receivables, net of allowance for credit losses258 201 195 174 175 142 182 
Accrued investment income598 606 587 576 526 491 488 
Deferred policy acquisition costs6,584 6,991 6,482 5,776 5,559 5,241 5,616 
Other assets2,815 3,095 3,363 2,917 6,675 4,737 6,157 
   Total assets$127,523 $137,271 $129,266 $105,734 $101,541 $99,407 $101,132 
Liabilities and Shareholders' Equity:
Future policy benefits$81,461 $88,652 $102,206 $77,733 $73,638 $68,623 $69,511 
Policy and contract claims2,879 3,177 — — 3 3 5 
Unearned premiums4,136 3,488 2,470 1,716 1,358 1,341 1,317 
Other policyholders' funds7,316 7,811 7,631 6,639 6,169 5,883 6,095 
Income taxes (prim. deferred)5,650 4,630 314 781 619 876 1,009 
Other liabilities3,260 2,447 4,369 4,337 4,067 6,753 5,500 
Shareholders' equity22,820 27,068 12,276 14,528 15,687 15,929 17,696 
   Total liabilities & shareholders' equity$127,523 $137,271 $129,266 $105,734 $101,541 $99,407 $101,132 

25

Aflac Japan
Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Yen In Millions)
NetTotalBenefitsTotalPretax
Earned%Adjusted%Adjusted%&%%Adjusted%Adjusted%
PeriodPremiumsChangeNII ChangeRevenues ChangeClaims, NetChangeAmort.ChangeExpenseChangeEarn. Change
20191,392,612 (1.1)271,253 2.2 1,668,734 (.6)967,782 (1.6)77,286 (1.5)346,150 1.6 354,802 .2 
20201,353,208 (2.8)283,122 4.4 1,640,827 (1.7)945,487 (2.3)68,818 (11.0)347,459 .4 347,881 (2.0)
20211,239,663 (8.4)333,028 17.6 1,577,203 (3.9)842,229 (10.9)43,131 (37.3)323,166 (7.0)411,808 18.4 
20221,198,079 (3.4)351,466 5.5 1,553,988 (1.5)807,068 (4.2)44,123 2.3 316,097 (2.2)430,823 4.6 
20231,127,816 (5.9)365,579 4.0 1,498,115 (3.6)744,301 (7.8)45,840 3.9 296,955 (6.1)456,859 6.0 
20221304,884 (2.8)79,042 5.9 385,000 (1.2)206,890 (4.0)10,886 3.3 77,095 (.8)101,015 4.7 
2302,213 (3.1)94,004 8.4 397,358 (.5)204,807 (3.7)10,964 2.5 79,022 (.3)113,529 5.5 
3293,667 (4.5)92,241 9.8 387,113 (1.4)196,121 (4.8)11,073 2.9 77,498 (4.0)113,494 7.4 
4297,315 (3.1)86,180 (1.7)384,517 (2.8)199,250 (4.3)11,201 .6 82,482 (3.5)102,785 .8 
20231287,048 (5.9)80,931 2.4 369,145 (4.1)192,270 (7.1)11,281 3.6 72,625 (5.8)104,251 3.2 
2283,377 (6.2)87,963 (6.4)372,544 (6.2)186,310 (9.0)11,359 3.6 72,808 (7.9)113,426 (.1)
3285,305 (2.8)98,866 7.2 385,363 (.5)185,855 (5.2)11,435 3.3 73,068 (5.7)126,440 11.4 
4272,085 (8.5)97,819 13.5 371,063 (3.5)179,866 (9.7)11,766 5.0 78,454 (4.9)112,742 9.7 
20241269,859 (6.0)96,551 19.3 367,593 (.4)180,873 (5.9)12,289 8.9 66,157 (8.9)120,564 15.6 
2267,319 (5.7)112,987 28.4 381,181 2.3 178,904 (4.0)11,995 5.6 67,754 (6.9)134,523 18.6 
3255,397 (10.5)98,969 .1 355,332 (7.8)125,548 (32.4)12,257 7.2 71,039 (2.8)158,745 25.5 




















26

Aflac Japan
Operating Ratios
(Before Management Fee)
12-Mo. RollingTot. Ben./Tot. Adj.CombinedPretax
PremiumTot. Ben./PremiumsAmort./Expenses/Ratio/Profit
 Period
Persistency(1)
Premium(3rd sector)PremiumTotal Adj. Rev.Total Adj. Rev.Margin
201994.469.559.35.520.778.721.3
202095.169.959.75.121.278.821.2
202194.367.958.73.520.573.926.1
202294.167.458.53.720.372.327.7
202393.466.056.24.119.869.530.5
202493.361.252.44.618.662.537.5
2022194.367.958.53.620.073.826.2
294.367.858.53.619.971.428.6
394.366.859.43.820.070.729.3
494.167.057.73.821.573.326.7
2023193.967.057.73.919.771.828.2
293.865.756.24.019.569.630.4
393.565.154.84.019.067.232.8
493.466.156.24.321.169.630.4
2024193.467.057.54.618.067.232.8
293.366.957.84.517.864.735.3
393.349.241.84.820.055.344.7















(1) Premium persistency presented on a 12-month rolling basis for all periods, rather than year to date

27

Aflac Japan

Aflac Japan Sales Results
(Yen In Millions, unless otherwise noted)
Annl.Third Sector
Prem.New Annl.Total
In Force%Prem.%New Annual.%
Period(Billions)ChangeSalesChangePremium SalesChange
20191,489.3 (2.5)72,836 (18.0)79,697 (16.9)
20201,426.5 (4.2)45,110 (38.1)50,852 (36.2)
20211,360.6 (4.7)48,977 8.6 54,764 7.7 
20221,301.0 (4.4)47,998 (2.0)54,765 — 
20231,246.4 (4.2)52,234 8.8 60,730 10.9 
202211,345.6 (4.6)10,679 (19.0)11,925 (14.8)
21,332.0 (4.3)11,372 (6.2)12,731 (6.4)
31,315.7 (4.3)12,639 12.1 13,884 10.2 
41,301.0 (4.4)13,308 1.7 16,224 11.4 
202311,281.4 (4.8)10,952 2.6 13,213 10.8 
21,268.4 (4.8)13,964 22.8 16,112 26.6 
31,257.4 (4.4)13,606 7.7 15,600 12.4 
41,246.4 (4.2)13,711 3.0 15,805 (2.6)
202411,232.6 (3.8)10,767 (1.7)12,534 (5.1)
21,222.5 (3.6)12,712 (9.0)16,833 4.5 
31,216.7 (3.2)11,925 (12.4)17,522 12.3 

28

Aflac Japan
Aflac Japan Product Mix
(New Annualized Premium Sales, Yen In Billions)
% of% ofIncome   % ofChild   % of% ofOrdinary% of% of
PeriodCancerTotalMedicalTotalSupportTotalEndowmentTotalWAYSTotalLife OtherTotalOtherTotalTotal
201947.2 59.2 24.6 31.0 1.0 1.2 .2 .2 .4 .5 5.9 7.4 .4 .5 79.7 
202028.8 56.6 15.9 31.2 .5 1.0 .2 .4 .4 .7 4.8 9.5 .3 .6 50.9 
202127.0 49.2 20.4 37.2 .3 .5 .2 .3 .4 .8 4.9 9.0 1.6 3.0 54.8 
202230.9 56.5 14.6 26.6 .7 1.3 .2 .3 1.9 3.5 4.5 8.1 2.0 3.7 54.8 
202338.9 64.1 12.3 20.2 .3 .4 .2 .4 4.1 6.8 3.9 6.5 1.0 1.6 60.7 
202216.4 53.0 3.8 31.4 .1 1.1 .1 .3 .1 .7 1.1 9.0 .5 4.5 11.9 
26.8 53.4 3.8 29.9 .3 2.2 — .2 .1 .8 1.2 9.2 .6 4.3 12.7 
38.4 60.1 3.7 26.4 .2 1.2 — .2 .1 .6 1.0 7.7 .5 3.8 13.9 
49.5 58.2 3.4 20.8 .1 .8 .1 .4 1.6 10.1 1.1 7.2 .4 2.5 16.2 
202317.9 59.9 2.7 20.8 .1 .6 .1 .6 1.2 8.9 1.0 7.3 .2 1.9 13.2 
210.9 67.7 2.8 17.5 .1 .4 .1 .4 1.0 6.6 1.0 6.1 .2 1.3 16.1 
310.3 65.6 3.1 20.0 .1 .4 .1 .4 .9 6.0 .9 6.1 .2 1.5 15.6 
49.9 62.5 3.6 22.8 .1 .4 — .3 .9 6.0 1.1 6.6 .2 1.4 15.8 
202417.9 63.2 2.7 21.1 — .3 — .3 .7 5.3 1.0 8.1 .2 1.7 12.5 
29.9 58.8 2.7 15.8 — .2 — .2 .4 2.3 3.7 21.8 .1 .9 16.8 
39.7 55.1 2.2 12.2 — .2 — .1 .1 .8 5.4 30.8 .1 .8 17.5 


















29


Aflac Japan

Aflac Japan Sales Force Data
Number of Agencies by TypeSales Contribution by Agency Type
Period Individual/ Independent CorporateAffiliated
Corporate		BankTotal Individual/ Independent CorporateAffiliated
Corporate		Bank
Licensed Sales
Associates(1)
Recruited
Agencies
20197,683 1,343 367 9,393 45.7 50.0 4.3 109,265 77 
20207,231 1,312 361 8,904 52.3 42.6 5.1 111,886 48 
20216,779 1,283 360 8,422 51.1 43.7 5.2 111,854 62 
20226,159 1,239 359 7,757 49.5 46.5 4.0 110,259 38 
20235,751 1,203 360 7,314 46.7 50.0 3.3 113,010 24 
202216,447 1,266 360 8,073 48.9 46.5 4.6 109,873 6 
26,335 1,255 359 7,949 48.4 48.1 3.5 110,096 12 
36,260 1,246 359 7,865 49.3 46.2 4.5 110,400 12 
46,159 1,239 359 7,757 51.2 45.4 3.4 110,259 8 
202316,056 1,232 359 7,647 50.9 45.4 3.7 109,769 4 
25,947 1,219 360 7,526 44.8 52.5 2.7 112,593 5 
35,843 1,211 360 7,414 44.4 51.9 3.7 112,795 6 
45,751 1,203 360 7,314 47.7 49.2 3.1 113,010 9 
202415,659 1,191 360 7,210 48.9 48.0 3.1 112,645 12 
25,542 1,180 360 7,082 49.5 48.4 2.1 114,424 12 
35,464 1,176 360 7,000 46.2 50.2 3.6 114,473 19 















(1) Excludes Dai-ichi Life, banks, Japan Post Group and Daido Life
30


Aflac Japan
Yen/Dollar Exchange Rates
Yearly
ClosingQtrCum%
Period
Rate(1)
AvgAvgChange
2019109.56 N/A109.07 1.2 
2020103.50 N/A106.86 2.1 
2021115.02 N/A109.79 (2.7)
2022132.70 N/A130.17 (15.7)
2023141.83 N/A140.57 (7.4)
20221122.39 116.18 116.18 (8.9)
2136.68 129.39 122.79 (12.2)
3144.81 137.08 126.65 (14.3)
4132.70 141.87 130.17 (15.7)
20231133.53 132.30 132.30 (12.2)
2144.99 137.53 134.97 (9.0)
3149.58 144.97 138.38 (8.5)
4141.83 148.11 140.57 (7.4)
20241151.41 148.67 148.67 (11.0)
2161.07 155.70 152.30 (11.4)
3142.73 147.95 150.60 (8.1)
(1) Closing rate is based on the latest available and published MUFG Bank
    Ltd. TTM mid-day exchange rate.
31

Corporate and Other

Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2019202020212022202320232024Change20232024Change
Revenues:
Total net earned premiums$200 $194 $180 $145 $400 $83 $160 92.8 $258 $479 85.7 
Net investment income (1)
88 80 (73)30 (77)2 39 1,850.0 24 146 508.3 
    Amortized hedge income (2)
89 97 57 68 121 25 25 — 92 87 (5.4)
Adjusted net investment income 177 177 (16)98 44 27 64 137.0 116 233 100.9 
Other income15 13 11 24 15 4 1 (75.0)9 11 22.2 
     Total adjusted revenues393 384 175 267 460 115 225 95.7 384 723 88.3 
Benefits and expenses:
Total net benefits and claims194 180 161 141 467 65 74 13.8 206 275 33.5 
Interest expense133 164 165 162 144 39 39 — 109 113 3.7 
Other adjusted expenses137 155 142 181 273 59 97 64.4 176 299 69.9 
     Total benefits and adjusted expenses464 499 469 485 885 163 210 28.8 490 687 40.2 
     Pretax adjusted earnings $(72)$(115)$(293)$(218)$(425)$(49)$15 130.6 $(107)$36 133.6 
(1)
The change in value of federal historic rehabilitation and solar investments in partnerships of $57 and $64 for the three-month periods and $119 and $169 for the nine-month periods ended September 30, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $78 and $63 for the three-month periods and $142 and $171 for the nine-month periods ended September 30, 2024, and 2023, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings.
(2)
See non-U.S. GAAP financial measures for the definition of amortized hedge cost/income


32

Non-U.S. GAAP Financial Measures

This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).

The Company defines the non-U.S. GAAP financial measures included in this document as follows:

•
Adjusted book value is the U.S. GAAP book value (representing total shareholders’ equity), less AOCI as recorded on the U.S. GAAP balance sheet. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude AOCI, which fluctuates due to market movements that are outside management’s control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively.
•
Adjusted book value including unrealized foreign currency translation gains and losses is adjusted book value plus unrealized foreign currency translation gains and losses. Adjusted book value including unrealized foreign currency translation gains and losses per common share is adjusted book value plus unrealized foreign currency translation gains and losses at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value including unrealized foreign currency translation gains and losses, and its related per share financial measure, important as they exclude certain components of AOCI, which fluctuate due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measures for adjusted book value including unrealized foreign currency translation gains and losses and adjusted book value including unrealized foreign currency translation gains and losses per common share are total book value and total book value per common share, respectively.
•
Adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is adjusted book value plus unrealized foreign currency translation gains and losses and pension liability adjustment. The Company considers adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment important as it excludes certain components of AOCI, which fluctuates due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measure for adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is total book value.

•
Adjusted debt is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding 50% of subordinated debentures and perpetual bonds and all pre-funding of debt maturities. The Company considers adjusted debt important as it measures outstanding debt consistently with expectations of the Company’s rating agency stakeholders. The most comparable U.S. GAAP financial measure for adjusted debt is notes payable.
•
Adjusted debt including 50% of subordinated debentures and perpetual bonds is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding pre-funding of debt maturities. The Company considers adjusted debt including 50% of subordinated debentures and perpetual bonds important as it measures outstanding debt consistently with expectations of the Company’s rating agency stakeholders. The most comparable U.S. GAAP financial measure for adjusted debt including 50% of subordinated debentures and perpetual bonds is notes payable.
33

•
Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management’s control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively.
•
Adjusted earnings excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management’s control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively.
•
Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign exchange risks in the Company's Japan segment or in Corporate and other. These amortized hedge costs/income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the contractual term of the derivative. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income.
•
Adjusted net investment gains and losses are net investment gains and losses adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are both reclassified to net investment income, and iii) the impact of interest from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management’s control, while excluding the components that are within management’s control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses.
•
Adjusted net investment income is net investment income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, and ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and losses to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company’s investments and related hedging strategies. The most comparable U.S. GAAP financial measure for adjusted net investment income is net investment income.
•
Adjusted return on equity is adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income (AOCI). Management uses adjusted return on equity to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The Company considers adjusted return on equity important as it excludes components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity.

34






aflac-incorporatedx4xpro.jpg






Third Quarter 2024
Earnings Call
Video Update
Max K. Brodén







October 30, 2024



For more information contact:
Investor and Rating Agency Relations
800.235.2667
aflacir@aflac.com
Aflac Worldwide Headquarters
1932 Wynnton Road
Columbus, GA 31999
1

Preliminary note: Forward-Looking Information and Non-U.S. GAAP Financial Measures

Forward-Looking Information

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. The company desires to take advantage of these provisions. This transcript contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” “may,” “should,” “estimate,” “intends,” “projects,” “will,” “assumes,” “potential,” “target,” "outlook" or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements.

The company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:

•difficult conditions in global capital markets and the economy, including inflation
•defaults and credit downgrades of investments
•global fluctuations in interest rates and exposure to significant interest rate risk
•concentration of business in Japan
•limited availability of acceptable yen-denominated investments
•foreign currency fluctuations in the yen/dollar exchange rate
•differing interpretations applied to investment valuations
•significant valuation judgments in determination of expected credit losses recorded on the Company's investments
•decreases in the Company's financial strength or debt ratings
•decline in creditworthiness of other financial institutions
•the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners
•deviations in actual experience from pricing and reserving assumptions
•ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives
•interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems
•subsidiaries' ability to pay dividends to the Parent Company
•inherent limitations to risk management policies and procedures
•operational risks of third-party vendors
•tax rates applicable to the Company may change
•failure to comply with restrictions on policyholder privacy and information security
•extensive regulation and changes in law or regulation by governmental authorities
•competitive environment and ability to anticipate and respond to market trends
•catastrophic events, including, but not limited to, as a result of climate change, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events
•ability to protect the Aflac brand and the Company's reputation
•ability to effectively manage key executive succession
•changes in accounting standards
•level and outcome of litigation or regulatory inquiries
•allegations or determinations of worker misclassification in the United States

Non-U.S. GAAP Financial Measures and Reconciliations

This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial


measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Definitions of the Company’s non-U.S. GAAP financial measures and applicable reconciliations to the most comparable U.S. GAAP measures are provided in the presentation slides that accompany this transcript.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).




Max K. Brodén
Q3 2024 CFO Video Update
October 30, 2024

Thank you for joining me as I provide a financial update on Aflac Incorporated's results for the third quarter of 2024.

For the quarter, adjusted earnings per diluted share increased 17.4% year over year to $2.16, with a $0.03 negative impact from FX in the quarter. In this quarter, remeasurement gains on reserves totaled $408 million reducing benefits while an offsetting unlock of the deferred profit liability in Japan reduced earned premium by $75 million. Variable investment income ran $27 million below our long-term return expectations.

Adjusted book value per share including foreign currency translation gains and losses increased 7.3%, and the adjusted ROE was 16.7%, an acceptable spread to our cost of capital. Overall, we view these results in the quarter as solid.

Starting with our Japan segment, net earned premiums for the quarter declined 10.5%. This decline reflects a ¥7.3 billion negative impact from an internal cancer reinsurance transaction1 executed in fourth quarter 2023 and ¥4.6 billion negative impact from paid up policies. In addition, there is a ¥13.3 billion negative impact from deferred profit liability, the majority of which is a one-time impact from unlocking of LDTI assumptions. At the same time, policies in force declined 2.3%.

Japan’s total benefit ratio came in at 49.2% for the quarter, down 15.9 percentage points year over year and the third sector benefit ratio was 41.8%, down approximately 13 percentage points year over year. We estimate the impact from remeasurement gains to be approximately 18 percentage points favorable to the benefit ratio in Q3 2024. Long-term experience trends, as it relates to treatments of cancer and hospitalization, continue to be in place, leading to continued favorable underwriting experience. Given the impact from unlocking, we now expect the full year benefit ratio to end up in the range of 62% to 63%.

Persistency remained solid with a rate of 93.3%, which was down 20 basis points year over year. This change in persistency is in line with our expectations.

Our expense ratio in Japan was 20.0%, up 100 basis points year over year, driven primarily by decline in revenues.

Adjusted net investment income in yen terms was up 0.1%, as the benefits from lower hedge costs and favorable impact from foreign currency on USD investments in yen terms were largely offset by lower floating rate income and lower volume as we have continued to shift assets from Aflac Japan to Aflac Re Bermuda.

The pretax margin for Japan in the quarter was 44.7%, up 11.9 percentage points year over year; a very good result. For the full year, we now expect the pretax margin to be in the range of 35% to 36%.

Turning to U.S. results, net earned premium was up 2.8%. Persistency increased 20 basis points year over year to 78.9%. Considering our year to date results, we now expect full year net earned premiums to be towards the lower end of our guidance range of 3% to 5%.

Our total benefit ratio came in at 47.6%, 11.7 percentage points higher than Q3 2023, driven by lower remeasurement gains than a year ago. We estimate that remeasurement gains impacted the benefit ratio by approximately 120 basis points in the quarter. Claims utilization has rebounded from depressed levels during the pandemic and are now more in line with our long term expectations. For the full year we would expect the benefit ratio to be towards the higher end of our guidance range of 45% to 47%.
1 Excludes the impact from reinsurance novated to Aflac Re Bermuda in December 2023 whereby Aflac Re Bermuda assumed the duties, obligations and liabilities through a reinsurance of business ALIJ previously ceded to an external reinsurer.



Our expense ratio in the U.S. was 38.0%, down 260 basis points year over year, primarily driven by platforms improving scale and strong expense management. Given business seasonality, we would expect an uptick in the expense ratio for Q4, but to remain within our guidance range of 38% to 40% for the full year.

Our growth initiatives – group life & disability, network dental and vision and direct to consumer – increased our total expense ratio by 100 basis points. This is in line with our expectations, and we would expect this impact to decrease going forward as these businesses grow to scale and improve their profitability.

Adjusted net investment income in the U.S. was up 0.5%, mainly driven by higher fixed rate income.

Profitability in the U.S. segment was solid, with a pretax margin of 20.8%, also a good result.

Our total commercial real estate loan watchlist remains approximately $1.0 billion, with less than $250 million in process of foreclosure currently. As a result of these current low valuation marks, we increased our CECL reserves associated with these loans by $3 million in this quarter net of charge offs. We had one loan foreclosure moved into real estate owned. We continue to believe that the current distressed market does not reflect the true intrinsic value of our portfolio, which is why we are confident in our ability to take ownership of these assets, manage them through this cycle and maximize our recoveries.

Our portfolio of first lien senior secured middle market loans continued to perform well, with losses below our expectations for this point in the cycle.

In our corporate segment, we recorded a pretax gain of $15 million. Adjusted net investment income was $37 million higher than last year due to a combination of higher rates and asset balances, which included the impact of reinsurance transactions in Q4 2023, as well as continued lower volume of tax credit investments. These tax credit investments impacted the corporate net investment income line for U.S. GAAP purposes negatively by $57 million in the quarter with an associated credit to the tax line. The net impact to our bottom line was a positive $5 million in the quarter. To date, these investments are performing well and in line with our expectations.

We are continuing to build out our internal reinsurance platform, and I am pleased with the outcome and performance. In the fourth quarter, we intend to execute another tranche with similar structure and economics in yen terms to our October 2023 transaction.

Our capital position remains strong, and we ended the quarter with an SMR above 1,100%, and our combined RBC, while not finalized, we estimate to be greater than 650%. These are strong capital ratios, which we actively monitor, stress and manage to withstand credit cycles as well as external shocks. U.S. statutory impairments were $58 million, and there were no additional Japan FSA impairments in Q3. This is well within our expectations and with limited impact to both earnings and capital.

As we hold approximately 60% of our debt in yen, our leverage increased to 21.0%, as a result of the move in the yen/dollar exchange rate – well within our target range of 20% to 25%. Our leverage will fluctuate with movements in the yen/dollar rate. This is intentional and part of our enterprise hedging program – protecting the economic value of Aflac Japan in U.S. dollar terms.

Unencumbered holding company liquidity stood at $3.9 billion, $2.1 billion above our minimum balance.

We repurchased $500 million of our own stock and paid dividends of $280 million in Q3, offering good relative IRR on these capital deployments. We will continue to be flexible and tactical in how we manage the balance sheet and deploy capital in order to drive strong risk-adjusted ROE with a meaningful spread to our cost of capital.

Thank you, and I look forward to discussing our results in further detail on tomorrow's earnings call.



 
Forward-Looking Statements and Non-GAAP Financial Measures The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. The company desires to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” “may,” “should,” “estimate,” “e,” “intends,” “projects,” “will,” “assumes,” “potential,” “target,” "outlook" or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements. The company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements: Non-U.S. GAAP Financial Measures and Reconciliations This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations. Definitions of the Company’s non-U.S. GAAP financial measures and applicable reconciliations to the most comparable U.S. GAAP measures are provided as appropriate. Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM). • difficult conditions in global capital markets and the economy, including inflation • defaults and credit downgrades of investments • global fluctuations in interest rates and exposure to significant interest rate risk • concentration of business in Japan • limited availability of acceptable yen-denominated investments • foreign currency fluctuations in the yen/dollar exchange rate • differing interpretations applied to investment valuations • significant valuation judgments in determination of expected credit losses recorded on the Company's investments • decreases in the Company's financial strength or debt ratings • decline in creditworthiness of other financial institutions • the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners • deviations in actual experience from pricing and reserving assumptions • ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives • interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems • subsidiaries' ability to pay dividends to the Parent Company • inherent limitations to risk management policies and procedures • operational risks of third-party vendors • tax rates applicable to the Company may change • failure to comply with restrictions on policyholder privacy and information security • extensive regulation and changes in law or regulation by governmental authorities • competitive environment and ability to anticipate and respond to market trends • catastrophic events, including, but not limited to, as a result of climate change, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events • ability to protect the Aflac brand and the Company's reputation • ability to effectively manage key executive succession • changes in accounting standards • level and outcome of litigation or regulatory inquiries • allegations or determinations of worker misclassification in the United States 2

 
Max K. Brodén Executive Vice President CFO, Aflac Incorporated

 
3Q24 Earnings Per Share $2.64 $(0.17) 3Q23 3Q24 Net EPS (diluted) (106.4)% $1.84 $2.16 3Q23 3Q24 Adjusted EPS (diluted)* +17.4% $1.84 $2.19 3Q23 3Q24 Adjusted EPS ex-FX* +19.0% *Non-GAAP financial measure. See appendix for information about this measure. 4

 
ROE View 29.1% (1.5)% 15.6% 16.7% ROE (%) Adjusted ROE* (%) 3Q23 3Q24 *Non-GAAP financial measure. See appendix for information about this measure. 5

 
Aflac Japan Maintains Solid Persistency 93.5% 93.4% 93.4% 93.3% 93.3% 3Q23 4Q23 1Q24 2Q24 3Q24 6

 
Aflac Japan 3Q24: Favorable experience leading to better than expected margin Benefit Ratio % 63 62 Expense Ratio % 21 19 Pretax Profit Margin % 36 35 49.2% 20.0% 44.7% 2024 Revised Outlook Ranges QTD Actual Operating Ratios 7

 
Aflac U.S. Maintains Solid Persistency 78.7% 78.6% 78.7% 78.7% 78.9% 3Q23 4Q23 1Q24 2Q24 3Q24 8

 
Aflac U.S. 3Q24: Providing customers value, scaling growth and solid margin Benefit Ratio % 47 45 Expense Ratio % 40 38 Pretax Profit Ratio % 21 19 47.6% 38.0% 20.8% 2024 Outlook Ranges QTD Actual Operating Ratios 9

 
Strong Capital Ratios Solvency Margin Ratio (Fiscal year ending March 31,%) 881 917 941 889 1136 2020 2021 2022 2023 2024 9/24e Combined Risk-Based Capital Ratio1 (Fiscal year ending December 31,%) 531 550 659 732 710 2019 2020 2021 2022 2023 9/24e >650 1Combined RBC ratio is the aggregated ratio of four subsidiaries: American Family Life Assurance Company of Columbus (Aflac); Continental American Insurance Company (CAIC), branded as Aflac Group Insurance (AGI); American Family Life Assurance Company of New York (Aflac New York); and Tier One Insurance Company (TOIC) >1100 10

 
Adjusted Leverage Ratio*: Within the 20-25% range 18.8% 19.7% 20.4% 19.5% 21.0% 3Q23 4Q23 1Q24 2Q24 3Q24 *Adjusted Leverage ratio is computed as: Adjusted debt to Adjusted capitalization ex-AOCI. See appendix for information about this measure. 11

 
Continued Tactical Capital Deployment 248 245 288 283 280 700 700 750 800 500 Dividends Repurchase 3Q23 4Q23 1Q24 2Q24 3Q24 Dividends and Share Repurchase ($ millions) 12

 

 
Appendix

 
Glossary of Non-U.S. GAAP Measures The Company defines these non-U.S. GAAP financial measures as follows: • Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management’s control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non- recurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively. • Adjusted earnings excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management’s control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively. • Adjusted book value including unrealized foreign currency translation gains and losses is adjusted book value plus unrealized foreign currency translation gains and losses. Adjusted book value including unrealized foreign currency translation gains and losses per common share is adjusted book value plus unrealized foreign currency translation gains and losses at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value including unrealized foreign currency translation gains and losses, and its related per share financial measure, important as they exclude certain components of AOCI, which fluctuate due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measures for adjusted book value including unrealized foreign currency translation gains and losses and adjusted book value including unrealized foreign currency translation gains and losses per common share are total book value and total book value per common share, respectively. • Adjusted return on equity is adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income (AOCI). Management uses adjusted return on equity to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The Company considers adjusted return on equity important as it excludes components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity. 15

 
Glossary of Non-U.S. GAAP Measures (cont’d) The Company defines these non-U.S. GAAP financial measures as follows: • Adjusted return on equity excluding foreign currency impact is adjusted earnings excluding the current period foreign currency impact divided by average shareholders’ equity, excluding AOCI. The Company considers adjusted return on equity excluding foreign currency impact important as it excludes changes in foreign currency and components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity excluding foreign currency impact is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity. • Adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is adjusted book value plus unrealized foreign currency translation gains and losses and pension liability adjustment. The Company considers adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment important as it excludes certain components of AOCI, which fluctuates due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measure for adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is total book value. • Adjusted debt is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding 50% of subordinated debentures and perpetual bonds and all pre-funding of debt maturities. The Company considers adjusted debt important as it measures outstanding debt consistently with expectations of the Company’s rating agency stakeholders. The most comparable U.S. GAAP financial measure for adjusted debt is notes payable. • Adjusted debt including 50% of subordinated debentures and perpetual bonds is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding pre-funding of debt maturities. The Company considers adjusted debt including 50% of subordinated debentures and perpetual bonds important as it measures outstanding debt consistently with expectations of the Company’s rating agency stakeholders. The most comparable U.S. GAAP financial measure for adjusted debt including 50% of subordinated debentures and perpetual bonds is notes payable. • Adjusted book value is the U.S. GAAP book value (representing total shareholders’ equity), less AOCI as recorded on the U.S. GAAP balance sheet. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude AOCI, which fluctuates due to market movements that are outside management’s control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively. 16

 
Reconciliation of Net Earnings Per Diluted Share to Adjusted Earnings per Diluted Share Three Months Ended September 30 2024 2023 %Change Net Earnings per diluted share $(0.17) $2.64 (106.4)% Items impacting net earnings Adjusted net investment (gains) losses 2.40 (0.85) Other and non-recurring (income) loss — (0.01) Income tax (benefit) expense on items excluded from adjusted earnings (0.08) 0.06 Adjusted earnings per diluted share 2.16 1.84 17.4% Current period foreign currency impact1 0.03 N/A Adjusted earnings per diluted share excluding current period foreign currency impact2 $2.19 $1.84 19.0% 1Prior period foreign currency impact reflected as “N/A” to isolate change for current period only 2 Amounts excluding current period foreign currency impacts are computed using the average foreign currency exchange rate for the comparable prior year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. 17

 
1Prior period foreign currency impact reflected as “N/A” to isolate change for current period only 2 Amounts excluding current period foreign currency impacts are computed using the average foreign currency exchange rate for the comparable prior year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Reconciliation of Net Earnings to Adjusted Earnings1 Three Months Ended September 30, in millions of Dollars 2024 2023 %Change Net Earnings $(93) $1,569 (105.9)% Items impacting net earnings Adjusted net investment (gains) losses 1,347 (504) Other and non-recurring (income) loss — (3) Income tax (benefit) expense on items excluded from adjusted earnings (43) 33 Adjusted earnings 1,211 1,095 10.6% Current period foreign currency impact1 16 N/A Adjusted earnings excluding current period foreign currency impact2 $1,228 $1,095 12.1% 18

 
Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE1 Three Months Ended September 30, in millions of Dollars 1Amounts presented may not foot due to rounding 2 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders’ equity 3See separate reconciliation of net income to adjusted earnings 4Impact of foreign currency is calculated by restating all foreign currency components of the income statement to the weighted average foreign currency exchange rate for the comparable prior year period. The impact is the difference of the restated adjusted earnings compared to reported adjusted earnings. For comparative purposes, only current period income is restated using the weighted average prior period exchange rate, which eliminates the foreign currency impact for the current period. This allows for equal comparison of this financial measure 2024 2023 U.S. GAAP ROE - Net earnings2 (1.5)% 29.1% Impact of excluding unrealized foreign currency translation gains (losses) 0.3 (4.5) Impact of excluding unrealized gains (losses) on securities and derivatives — 0.8 Impact of excluding effect of changes in discount rate assumptions — (3.1) Impact of excluding pension liability adjustment — — Impact of excluding AOCI 0.2 (6.8) U.S. GAAP ROE - less AOCI (1.3) 22.3 Differences between adjusted earnings and net earnings3 18.0 (6.7) Adjusted ROE - reported 16.7 15.6 Less: Impact of foreign currency4 (0.2) N/A Adjusted ROE, excluding impact of foreign currency 17.0 15.6 19

 
1Amounts may not foot due to rounding 2 Adjusted book value in the U.S. GAAP book value (representing total shareholder’s equity), excluding AOCI (as recorded on the U.S. GAAP balance sheet). 3Adjusted book value including unrealized foreign currency translation gains (losses) is adjusted book value plus unrealized foreign currency translation gains (losses). Reconciliation of U.S. GAAP Book Value per Share1 Three Months Ended September 30, in millions of Dollars 2024 2023 %Change U.S. GAAP book value per common share $44.60 $38.63 15.5% Less: Unrealized foreign currency translation gains (losses) per common share (7.43) (7.64) Unrealized gains (losses) on securities and derivatives per common share 0.96 (0.73) Effect of changes in discount rate assumptions per common share (0.12) (1.48) Pension liability adjustment per common share (0.01) 0.03 Total AOCI per common share (6.60) (9.81) Adjusted book value per common share2 $51.21 $48.44 5.7% Add: Unrealized foreign currency translation gains (losses) per common share (7.43) (7.64) Adjusted book value including unrealized foreign currency translation gains (losses) per common share3 $43.77 $40.80 7.3% 20

 
Adjusted Leverage Ratios (In millions) 2024 2023 Notes Payable $7,978 $6,961 50% of subordinated debentures and perpetual bonds (313) (299) Pre-funding of debt maturities — — Adjusted debt1 7,666 6,663 Total Shareholders’ Equity 24,830 22,669 Accumulated other comprehensive (income)loss: Unrealized foreign currency translation (gains) losses 4,139 4,484 Unrealized (gains) losses on fixed maturity securities (557) 403 Unrealized (gains) losses on derivatives 20 24 Effect on change in discount rate assumptions 67 866 Pension liability adjustment 8 (17) Adjusted book value1 28,507 28,429 Adjusted capitalization ex-AOCI2 $36,485 $35,390 Adjusted debt to adjusted capitalization ex-AOCI 21.0% 18.8% 1) See non-U.S. GAAP financial measures for definition of: adjusted debt; adjusted book value; adjusted debt, including 50% of subordinated debentures and perpetual bonds; adjusted book value, including unrealized foreign currency translation gains and losses and pension liability adjustment 2) Adjusted capitalization ex-AOCI is the sum of adjusted debt, including 50% of subordinated debentures and perpetual bonds, plus adjusted book value 21

 
v3.24.3
Document and Entity Information Document
Oct. 30, 2024
Entity Central Index Key 0000004977
Document Type 8-K
Document Period End Date Oct. 30, 2024
Entity Registrant Name Aflac Incorporated
Entity Incorporation, State or Country Code GA
Entity File Number 001-07434
Entity Tax Identification Number 58-1167100
Entity Address, Address Line One 1932 Wynnton Road
Entity Address, City or Town Columbus
Entity Address, State or Province GA
Entity Address, Postal Zip Code 31999
City Area Code 706
Local Phone Number 323.3431
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
NEW YORK STOCK EXCHANGE, INC. [Member]  
Title of 12(b) Security Common Stock, $.10 Par Value
Trading Symbol AFL
Security Exchange Name NYSE
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