Skip to main content
Equibles

8-K

Aflac Inc (AFL)

8-K 2024-07-31 For: 2024-07-31
View Original
Added on April 11, 2026

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) July 31, 2024

g247539tx_pg36.jpg

Aflac Incorporated

_________________________________________________________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Georgia 001-07434 58-1167100
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1932 Wynnton Road Columbus Georgia 31999
(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 class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $.10 Par Value AFL New 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 July 31, 2024, Aflac Incorporated (the "Company") issued a press release dated July 31, 2024 in which it reported the Company's 2024 second 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 second 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 July 31, 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 second 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 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number Exhibit Title or Description
99.1 Press release of Aflac Incorporated dated July 31, 2024
99.2 Financial Supplement for Second Quarter 2024
99.3 Transcript of comments in video presentation by Max Brodén, Executive Vice President and Chief Financial Officer of Aflac Incorporated.
99.4 Slides referenced in video presentation by Max Brodén, Executive Vice President and Chief Financial Officer of Aflac Incorporated.
104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

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
July 31, 2024 /s/ Robin L. Blackmon
(Robin L. Blackmon)
Senior Vice President, Financial Services
Chief Accounting Officer

2

Document

g247539tx_pg36a.jpg

News Release

Aflac Incorporated Announces Second Quarter Results,

Reports Second Quarter Net Earnings of $1.8 Billion,

Declares Third Quarter Cash Dividend

COLUMBUS, Ga. - July 31, 2024 - Aflac Incorporated (NYSE: AFL) today reported its second quarter results.

Total revenues were $5.1 billion in the second quarter of 2024, compared with $5.2 billion in the second quarter of 2023. Net earnings were $1.8 billion, or $3.10 per diluted share, compared with $1.6 billion, or $2.71 per diluted share a year ago.

Net earnings in the second quarter of 2024 included net investment gains of $696 million, or $1.23 per diluted share, compared with net investment gains of $555 million, or $0.92 per diluted share a year ago. These net investment gains were driven by net gains of $649 million on certain derivatives and foreign currency activities; net gains from sales and redemptions of $55 million; and an $11 million gain from an increase in the fair value of equity securities, offset by a $19 million net increase in credit losses.

Adjusted earnings* in the second quarter were $1.0 billion, compared with $954 million in the second quarter of 2023, reflecting an increase of 8.5%. Adjusted earnings per diluted share* increased 15.8% to $1.83 in the quarter. Variable investment income ran nearly $1 million above the company's long-term return expectations. Net investment income included $20 million, or $0.03 per share, from a make-whole call of a security in the Japan segment. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per share by $0.07.

The average yen/dollar exchange rate in the second quarter of 2024 was 155.70, or 11.7% weaker than the average rate of 137.53 in the second quarter of 2023. For the first six months, the average exchange rate was 152.30, or 11.4% weaker than the rate of 134.97 a year ago.

Shareholders’ equity was $26.0 billion, or $46.40 per share, at June 30, 2024, compared with $20.4 billion, or $34.30 per share, at June 30, 2023. Shareholders’ equity at the end of the second quarter included a cumulative increase of $1.4 billion for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative decrease of $5.1 billion at June 30, 2023 and a net unrealized gain on investment securities and derivatives of $379 million, compared with a net unrealized gain of $2.0 billion at June 30, 2023. Shareholders’ equity at the end of the second quarter also included an unrealized foreign currency translation loss of $5.1 billion, compared with an unrealized foreign currency translation loss of $4.2 billion at June 30, 2023. The annualized return on average shareholders’ equity in the second quarter was 28.3%.

For the first six months of 2024, total revenues were up 6.0% to $10.6 billion, compared with $10.0 billion in the first half of 2023. Net earnings were $3.6 billion, or $6.35 per diluted share, compared with $2.8 billion, or $4.64 per diluted share, for the first six months of 2023. Adjusted earnings for the first half of 2024 were $2.0 billion, or $3.49 per diluted share, compared with $1.9 billion, or $3.13 per diluted share, in 2023. Excluding the negative impact of $0.14 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share increased 16.0% to $3.63 for the first six months of 2024.

Shareholders’ equity excluding AOCI (or adjusted book value*) was $29.3 billion, or $52.26 per share at June 30, 2024, compared with $27.8 billion, or $46.61 per share, at June 30, 2023. The annualized adjusted return on equity excluding foreign currency impact* in the second quarter was 14.8%.

AFLAC JAPAN

In yen terms, Aflac Japan's net earned premiums were ¥267.3 billion for the quarter, or 5.7% lower than a year ago, mainly due to the prior year reinsurance transactions and limited-pay policies reaching paid-up status. Adjusted net investment income increased 28.4% to ¥113.0 billion, mainly due to the favorable impact of the weakening yen on U.S. dollar investments, lower hedge costs, higher variable investment income and call income. Total adjusted revenues in yen increased 2.3% to ¥381.2 billion. Pretax adjusted earnings in yen for the quarter increased 18.6% on a reported basis to ¥134.5 billion, primarily due to higher net investment income, as well as lower benefits and expenses during the quarter, partially offset by lower net earned premiums. Pretax adjusted earnings increased 10.6% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment increased to 35.3%, compared with 30.4% a year ago.

For the first six months, net earned premiums in yen were ¥537.2 billion, or 5.8% lower than a year ago. Adjusted net investment income increased 24.1% to ¥209.5 billion. Total adjusted revenues in yen were up 1.0% to ¥748.8 billion. Pretax adjusted earnings were ¥255.1 billion, or 17.2% higher than a year ago.

In dollar terms, net earned premiums decreased 16.9% to $1.7 billion in the second quarter. Adjusted net investment income increased 13.8% to $725 million. Total adjusted revenues declined by 9.7% to $2.4 billion. Pretax adjusted earnings increased 5.1% to $864 million.

For the first six months, net earned premiums in dollars were $3.5 billion, or 16.6% lower than a year ago. Adjusted net investment income increased 10.1% to $1.4 billion. Total adjusted revenues were down 10.6% to $4.9 billion. Pretax adjusted earnings were $1.7 billion, or 4.0% higher than a year ago.

For the quarter, total new annualized premium sales (sales) increased 4.5% to ¥16.8 billion, or $108 million, primarily reflecting sales of the new first sector product. For the first six months, total new sales increased 0.1% to ¥29.4 billion, or $192 million.

AFLAC U.S.

Aflac U.S. net earned premiums increased 2.1% to $1.5 billion in the second quarter compared to the prior year, reflecting continued improvement in persistency. Adjusted net investment income increased 7.4% to $218 million, largely due to a shift to higher-yielding fixed-income investments and higher variable investment income. Total adjusted revenues were up 1.3% to $1.7 billion. Pretax adjusted earnings were $383 million, 3.8% higher than a year ago, primarily due to higher revenue and lower expenses offset by higher benefits. The pretax adjusted profit margin for the U.S. segment was 22.7%, compared with 22.2% a year ago.

For the first six months, net earned premiums increased 2.7% to $2.9 billion. Adjusted net investment income increased 6.0% to $424 million. Total adjusted revenues were up 1.8% to $3.4 billion. Pretax adjusted earnings were $739 million, or 2.5% higher than a year ago.

Aflac U.S. sales increased 2.0% in the quarter to $331 million, largely driven by premier group life, absence management and disability products as well as improved sales in individual voluntary benefits. For the first half of the year, total new sales decreased 1.6% to $629 million.

CORPORATE AND OTHER

For the quarter, total adjusted revenues increased 77.9% to $249 million compared to the prior year primarily due to reinsurance transactions in the fourth quarter of 2023 resulting in an increase to both total net earned premiums and adjusted net investment income, which also increased due to a lower volume of tax credit investments. Total benefits and adjusted expenses increased $35 million compared to the prior year primarily as a result of the increased reinsurance activity. Pretax adjusted earnings were a gain of $23 million, compared with a loss of $52 million a year ago.

For the first six months, total adjusted revenues increased 85.4% to $497 million. Pretax adjusted earnings were a gain of $21 million, compared with a loss of $58 million a year ago.

DIVIDEND AND CAPITAL RETURNED TO SHAREHOLDERS

The board of directors declared the third quarter dividend of $0.50 per share, payable on September 2, 2024 to shareholders of record at the close of business on August 21, 2024.

In the second quarter, Aflac Incorporated deployed $800 million in capital to repurchase 9.3 million of its common shares. At the end of June 2024, the company had 59.2 million remaining shares authorized for repurchase.

OUTLOOK

Commenting on the company’s results, Aflac Incorporated Chairman, Chief Executive Officer and President Daniel P. Amos stated: "Aflac delivered very solid earnings for the quarter and the first six 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 4.5% sales increase for the quarter and put us back on track for the year, along with sales campaigns celebrating our 50 years in Japan. This approach is in line with our strategy of connecting with younger customers to meet their financial protection needs through different life stages.

"In the U.S., we achieved 2% sales growth for the quarter, which is a welcome result as we enter the second half of the year, which tends to be the heaviest enrollment period. At the same time, we continue to focus on more profitable growth by exercising a stronger underwriting discipline. As a result, we are seeing improvement in both net earned premiums and persistency. 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 investment portfolio's performance, as it continues to produce strong net investment income with minimal losses and impairments. We treasure our track record of 41 consecutive years of dividend growth and remain committed to extending it, supported by our financial strength. In the quarter, we repurchased a record $800 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 more than 68 years 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 August 1, 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 JUNE 30, 2024 2023 % Change
Total revenues $ 5,138 $ 5,172 (0.7) %
Benefits and claims, net 1,921 2,098 (8.4)
Total acquisition and operating expenses 1,198 1,249 (4.1)
Earnings before income taxes 2,019 1,825 10.6
Income taxes 264 191
Net earnings $ 1,755 $ 1,634 7.4 %
Net earnings per share – basic $ 3.11 $ 2.72 14.3 %
Net earnings per share – diluted 3.10 2.71 14.4
Shares used to compute earnings per share (000):
Basic 564,573 600,742 (6.0) %
Diluted 566,838 602,929 (6.0)
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)
SIX MONTHS ENDED JUNE 30, 2024 2023 % Change
Total revenues $ 10,575 $ 9,972 6.0 %
Benefits and claims, net 3,932 4,247 (7.4)
Total acquisition and operating expenses 2,453 2,558 (4.1)
Earnings before income taxes 4,190 3,167 32.3
Income taxes 556 345
Net earnings $ 3,634 $ 2,822 28.8 %
Net earnings per share – basic $ 6.38 $ 4.66 36.9 %
Net earnings per share – diluted 6.35 4.64 36.9
Shares used to compute earnings per share (000):
Basic 569,730 605,945 (6.0) %
Diluted 572,160 608,411 (6.0)
Dividends paid per share $ 1.00 $ 0.84 19.0 %
AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET
--- --- --- --- --- --- ---
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)
JUNE 30, 2024 2023 % Change
Assets:
Total investments and cash $ 107,629 $ 116,463 (7.6) %
Deferred policy acquisition costs 8,550 8,860 (3.5)
Other assets 3,989 5,303 (24.8)
Total assets $ 120,168 $ 130,626 (8.0) %
Liabilities and shareholders’ equity:
Policy liabilities $ 77,353 $ 93,807 (17.5) %
Notes payable and lease obligations 7,430 7,087 4.8
Other liabilities 9,338 9,293 0.5
Shareholders’ equity 26,047 20,439 27.4
Total liabilities and shareholders’ equity $ 120,168 $ 130,626 (8.0) %
Shares outstanding at end of period (000) 561,369 595,969 (5.8) %

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 JUNE 30, 2024 2023 % Change
Net earnings $ 1,755 $ 1,634 7.4 %
Items impacting net earnings:
Adjusted net investment (gains) losses (749) (651)
Other and non-recurring (income) loss — (35)
Income tax (benefit) expense on items excluded <br>from adjusted earnings 29 5
Adjusted earnings 1,035 954 8.5 %
Current period foreign currency impact 1 37 N/A
Adjusted earnings excluding current period foreign <br> currency impact 2 $ 1,072 $ 954 12.4 %
Net earnings per diluted share $ 3.10 $ 2.71 14.4 %
Items impacting net earnings:
Adjusted net investment (gains) losses (1.32) (1.08)
Other and non-recurring (income) loss — (0.06)
Income tax (benefit) expense on items excluded <br>from adjusted earnings 0.05 0.01
Adjusted earnings per diluted share 1.83 1.58 15.8 %
Current period foreign currency impact 1 0.07 N/A
Adjusted earnings per diluted share excluding <br> current period foreign currency impact 2 $ 1.89 $ 1.58 19.6 %

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)
SIX MONTHS ENDED JUNE 30, 2024 2023 % Change
Net earnings $ 3,634 $ 2,822 28.8 %
Items impacting net earnings:
Adjusted net investment (gains) losses (1,758) (859)
Other and non-recurring (income) loss 2 (35)
Income tax (benefit) expense on items excluded <br>from adjusted earnings 118 (21)
Adjusted earnings 1,996 1,907 4.7 %
Current period foreign currency impact 1 81 N/A
Adjusted earnings excluding current period foreign <br> currency impact 2 $ 2,077 $ 1,907 8.9 %
Net earnings per diluted share $ 6.35 $ 4.64 36.9 %
Items impacting net earnings:
Adjusted net investment (gains) losses (3.07) (1.41)
Other and non-recurring (income) loss — (0.06)
Income tax (benefit) expense on items excluded <br>from adjusted earnings 0.21 (0.03)
Adjusted earnings per diluted share 3.49 3.13 11.5 %
Current period foreign currency impact 1 0.14 N/A
Adjusted earnings excluding current period foreign <br> currency impact 2 $ 3.63 $ 3.13 16.0 %

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 INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED JUNE 30, 2024 2023 % Change
Net investment (gains) losses $ (696) $ (555) 25.4 %
Items impacting net investment (gains) losses:
Amortized hedge costs (7) (63)
Amortized hedge income 34 38
Net interest income (expense) from derivatives associated<br><br>with certain investment strategies (89) (79)
Impact of interest from derivatives associated with<br><br>notes payable1 9 8
Adjusted net investment (gains) losses $ (749) $ (651) 15.1 %

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 JUNE 30, 2024 2023 % Change
Net investment income $ 1,095 $ 999 9.6 %
Items impacting net investment income:
Amortized hedge costs (7) (63)
Amortized hedge income 34 38
Net interest income (expense) from derivatives associated<br><br>with certain investment strategies (89) (79)
Adjusted net investment income $ 1,033 $ 892 15.8 %
RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
--- --- --- --- --- --- ---
(UNAUDITED – IN MILLIONS)
SIX MONTHS ENDED JUNE 30, 2024 2023 % Change
Net investment (gains) losses $ (1,647) $ (678) 142.9 %
Items impacting net investment (gains) losses:
Amortized hedge costs (13) (122)
Amortized hedge income 62 67
Net interest income (expense) from derivatives associated<br><br>with certain investment strategies (177) (148)
Impact of interest from derivatives associated with<br><br>notes payable1 17 22
Adjusted net investment (gains) losses $ (1,758) $ (859) 104.7 %

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)
SIX MONTHS ENDED JUNE 30, 2024 2023 % Change
Net investment income $ 2,095 $ 1,942 7.9 %
Items impacting net investment income:
Amortized hedge costs (13) (122)
Amortized hedge income 62 67
Net interest income (expense) from derivatives associated<br><br>with certain investment strategies (177) (148)
Adjusted net investment income $ 1,967 $ 1,736 13.3 %
RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE
--- --- --- --- --- --- ---
(UNAUDITED - IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
JUNE 30, 2024 2023 % Change
U.S. GAAP book value $ 26,047 $ 20,439
Less:
Unrealized foreign currency translation gains (losses) (5,091) (4,249)
Unrealized gains (losses) on securities and derivatives 379 1,953
Effect of changes in discount rate assumptions 1,425 (5,059)
Pension liability adjustment (5) 17
Total AOCI (3,292) (7,338)
Adjusted book value $ 29,339 $ 27,777
Add:
Unrealized foreign currency translation gains (losses) (5,091) (4,249)
Adjusted book value including unrealized foreign currency translation gains (losses) $ 24,248 $ 23,528
Number of outstanding shares at end of period (000) 561,369 595,969
U.S. GAAP book value per common share $ 46.40 $ 34.30 35.3 %
Less:
Unrealized foreign currency translation gains (losses) per common share (9.07) (7.13)
Unrealized gains (losses) on securities and derivatives per common share 0.68 3.28
Effect of changes in discount rate assumptions <br>     per common share 2.54 (8.49)
Pension liability adjustment per common share (0.01) 0.03
Total AOCI per common share (5.86) (12.31)
Adjusted book value per common share $ 52.26 $ 46.61 12.1 %
Add:
Unrealized foreign currency translation gains (losses) per common share (9.07) (7.13)
Adjusted book value including unrealized foreign currency translation gains (losses) per common share $ 43.19 $ 39.48 9.4 %
RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
--- --- --- --- ---
(EXCLUDING IMPACT OF FOREIGN CURRENCY)
THREE MONTHS ENDED JUNE 30, 2024 2023
U.S. GAAP ROE - Net earnings1 28.3 % 32.5 %
Impact of excluding unrealized foreign currency translation gains (losses) (4.8) (4.7)
Impact of excluding unrealized gains (losses) on securities and derivatives 0.7 1.9
Impact of excluding effect of changes in discount rate assumptions — (5.9)
Impact of excluding pension liability adjustment — —
Impact of excluding AOCI (4.1) (8.7)
U.S. GAAP ROE - less AOCI 24.2 23.8
Differences between adjusted earnings and net earnings2 (9.9) (9.9)
Adjusted ROE - reported 14.3 13.9
Less: Impact of foreign currency3 (0.5) N/A
Adjusted ROE, excluding impact of foreign currency 14.8 13.9

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)
SIX MONTHS ENDED JUNE 30, 2024 2023
U.S. GAAP ROE - Net earnings1 30.3 % 27.8 %
Impact of excluding unrealized foreign currency translation gains (losses) (4.9) (4.0)
Impact of excluding unrealized gains (losses) on securities and derivatives 0.8 0.6
Impact of excluding effect of changes in discount rate assumptions (0.6) (3.6)
Impact of excluding pension liability adjustment — —
Impact of excluding AOCI (4.7) (7.0)
U.S. GAAP ROE - less AOCI 25.6 20.8
Differences between adjusted earnings and net earnings2 (11.5) (6.7)
Adjusted ROE - reported 14.0 14.0
Less: Impact of foreign currency3 (0.6) N/A
Adjusted ROE, excluding impact of foreign currency 14.6 14.0

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 JUNE 30, 2024 Including<br>Currency<br>Changes Excluding<br><br>Currency<br><br>Changes2
Net earned premiums3 (6.9) % (0.1) %
Adjusted net investment income4 15.8 19.3
Total benefits and expenses (7.8) (1.0)
Adjusted earnings 8.5 12.4
Adjusted earnings per diluted share 15.8 19.6

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)
SIX MONTHS ENDED JUNE 30, 2024 Including<br>Currency<br>Changes Excluding<br><br>Currency<br><br>Changes2
Net earned premiums3 (6.6) % 0.1 %
Adjusted net investment income4 13.3 16.7
Total benefits and expenses (6.6) —
Adjusted earnings 4.7 8.9
Adjusted earnings per diluted share 11.5 16.0

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.

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

Document

FINAL                     7/31/2024

aflaclogoa01a01a01a33a.jpg

Financial Supplement

Second 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.

Aflac Incorporated Page
Share Data 2
Summary of Adjusted Results by Business Segment 3
Statements of Earnings 4
Analysis of Net Earnings and Net Earnings Per Share 5
Balance Sheets 6
Quarterly Financial Results 7
Quarterly Book Value Per Share 8
Return on Equity 9
Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact 10
Investment Results 11,12,13
Long-Term Debt Data 14
Ratings 15
Aflac U.S.
Statement of Pretax Adjusted Earnings 16
Balance Sheets 17
Quarterly Pretax Adjusted Earnings 18
Operating Ratios 19
Sales 20,21
Aflac Japan
Statement of Pretax Adjusted Earnings 22,23
Balance Sheets 24,25
Quarterly Pretax Adjusted Earnings 26
Operating Ratios 27
Sales 28,29,30
Yen/Dollar Exchange Rates 31
Corporate and Other
Statement of Pretax Adjusted Earnings 32
Non-U.S. GAAP Financial Measures 33

For more information, contact:

David Young

Phone. 706.596.3264

Aflacir@aflac.com

investors.aflac.com

Aflac Incorporated and Subsidiaries
Share Data
(In Thousands)
Beginning Shares Issued Shares Purchased Ending QTD Weighted Avg. Shares YTD Weighted Avg. Shares
Shares Stk. Bon. Stk. Opt. Treas. Misc. Shares Avg. Dilutive Avg. Avg. Dilutive Avg.
Period Outstanding & DRP & Misc. Shares Purch.(1) Outstanding Shares Shares Diluted Shares Shares Diluted
2022 1 652,132 259 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
2023 1 615,256 239 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 2,350 593,596 600,992 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
2024 1 578,479 212 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

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

Aflac Incorporated and Subsidiaries
Summary of Adjusted Results by Business Segment
(In Millions, except per-share data and where noted)
3 Months Ended June 30, 6 Months Ended June 30,
% %
2020 2021 2022 2023 2023 2024 Change 2023 2024 Change
Aflac Japan 3,261 $ 3,263 $ 3,755 $ 3,281 $ 3,234 $ 822 $ 864 5.1 $ 1,610 $ 1,674 4.0
Aflac U.S. 1,272 1,268 1,356 1,359 1,501 369 383 3.8 721 739 2.5
Corporate and other (1) (72) (115) (293) (218) (425) (52) 23 (58) 21
Pretax adjusted earnings 4,461 4,416 4,819 4,422 4,310 1,139 1,270 11.5 2,273 2,434 7.1
Income taxes (1) 1,147 864 893 808 577 186 235 26.3 366 438 19.7
Adjusted earnings (2) 3,314 3,552 3,925 3,614 3,733 954 1,035 8.5 1,907 1,996 4.7
Reconciling items:
Adjusted net investment gains (losses) (15) (229) 462 447 914 651 749 859 1,758
Other and non-recurring income (loss) (3) (1) (28) (73) 1 39 35 — 35 (2)
Income tax benefit (expense) on items excluded from adjusted earnings (4) 3 72 (83) 357 (26) (5) (29) 21 (118)
Tax reform adjustment (5) 4 — — — — — — — —
Tax valuation allowance release (6) — 1,411 — — — — — — —
Net earnings 3,304 $ 4,778 $ 4,231 $ 4,418 $ 4,659 $ 1,634 $ 1,755 7.4 $ 2,822 $ 3,634 28.8
Effective Tax rate 25.7 % (14.9) % 18.7 % 9.3 % 11.5 % 10.4 % 13.1 % 10.9 % 13.3 %
Earnings per share of common stock:
Net earnings (basic) 4.45 $ 6.69 $ 6.28 $ 6.96 $ 7.81 $ 2.72 $ 3.11 14.3 $ 4.66 $ 6.38 36.9
Net earnings (diluted) 4.43 6.67 6.25 6.93 7.78 2.71 3.10 14.4 4.64 6.35 36.9
Adjusted earnings (basic) (2) 4.46 $ 4.98 $ 5.83 $ 5.69 $ 6.26 $ 1.59 $ 1.83 15.1 $ 3.15 $ 3.50 11.1
Adjusted earnings (diluted) (2) 4.44 4.96 5.80 5.67 6.23 1.58 1.83 15.8 3.13 3.49 11.5
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of 30 and 53 for the three-month periods and 62 and 105 for the six-month periods ended June 30, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of 31 and 56 for the three-month periods and 64 and 108 for the six-months period ended June 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 452 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.

All values are in US Dollars.

Aflac Incorporated and Subsidiaries
Consolidated Statements of Earnings - U.S. GAAP
(In Millions, except per-share data)
3 Months Ended June 30, 6 Months Ended June 30,
% %
2020 2021 2022 2023 2023 2024 Change 2023 2024 Change
Revenues:
Net earned premiums
Gross premiums 19,122 $ 18,955 $ 17,305 $ 15,025 $ 14,318 $ 3,623 $ 3,352 $ 7,361 $ 6,833
Assumed (ceded) (342) (333) (210) (124) (195) (50) (26) (99) (52)
Total net earned premiums (1) 18,780 18,622 17,095 14,901 14,123 3,573 3,325 (6.9) 7,262 6,781 (6.6)
Net investment income 3,578 3,638 3,818 3,656 3,811 999 1,095 9.6 1,942 2,095 7.9
Net investment gains (losses) (2) (135) (270) 468 363 590 555 696 678 1,647
Other income (2) 84 157 173 220 177 45 22 90 52
Total revenues 22,307 22,147 21,554 19,140 18,701 5,172 5,138 (.7) 9,972 10,575 6.0
Benefits and Claims:
Benefits and claims, net
Incurred claims -direct 9,279 9,364 8,949 8,271 8,005 1,948 1,907 4,163 4,185
Incurred claims -assumed (ceded) (372) (296) (147) (108) (177) (40) (19) (82) (35)
Increase in FPB (3)-direct 2,952 2,707 1,819 888 594 232 87 268 (108)
Increase in FPB (3)-assumed (ceded) 83 21 3 51 172 12 (3) 7 (3)
Total net benefits and claims, excluding   reserve remeasurement N/A N/A 10,623 9,102 8,594 2,152 1,972 4,354 4,039
Reserve remeasurement (gain) loss N/A N/A (147) (215) (383) (54) (51) (107) (107)
Total net benefits and claims 11,942 11,796 10,476 8,887 8,211 2,098 1,921 (8.4) 4,247 3,932 (7.4)
Acquisition and operating expenses:
Amortization of DAC (4) 1,282 1,214 835 792 816 202 208 407 424
Insurance commissions 1,321 1,316 1,256 1,117 1,052 268 246 547 501
Insurance expenses 3,089 3,420 3,541 3,249 3,165 728 694 1,505 1,431
Interest expense 228 242 238 226 195 51 50 99 97
Total acquisition and operating expenses 5,920 6,192 5,870 5,384 5,228 1,249 1,198 (4.1) 2,558 2,453 (4.1)
Total benefits and expenses 17,862 17,988 16,346 14,271 13,439 3,347 3,119 (6.8) 6,805 6,385 (6.2)
Pretax earnings 4,445 4,159 5,208 4,869 5,262 1,825 2,019 3,167 4,190
Income tax expense (benefit) (5) 1,141 (619) 977 451 603 191 264 345 556
Net earnings 3,304 $ 4,778 $ 4,231 $ 4,418 $ 4,659 $ 1,634 $ 1,755 7.4 $ 2,822 $ 3,634 28.8
(1) Includes a gain (loss) of (2) and (1) for the three-month periods and (5) and (1) for the six-month periods ended June 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 452 in deferred taxes in 2022

All values are in US Dollars.

Aflac Incorporated and Subsidiaries
Analysis of Net Earnings and Net Earnings Per Diluted Share
(In Millions, except for per-share data)
Other and Foreign
Net Other and Non- Foreign Net Net Non-Recurring Currency
Net Investment Recurring Currency Earnings Investment Items Impact
Period Earnings Gains (Losses) (1) Items (1)(3)(4) Impact (2) Per Share Gains (Losses) (1) Per Share (1)(3)(4) Per Share (2)
2019 3,304 (13) 3 15 4.43 (.02) .01 .02
2020 4,778 (181) 1,407 31 6.67 (.25) 1.96 .04
2021 4,231 365 (59) (42) 6.25 .54 (.09) (.06)
2022 4,418 803 1 (262) 6.93 1.26 — (.41)
2023 4,659 896 31 (113) 7.78 1.50 .05 (.19)
2022 1 1,047 106 (1) (35) 1.60 .16 — (.05)
2 1,394 448 — (59) 2.17 .70 — (.09)
3 1,781 871 1 (97) 2.82 1.38 — (.15)
4 196 (621) — (70) .31 (1.00) — (.11)
2023 1 1,188 235 — (41) 1.94 .38 — (.07)
2 1,634 653 28 (25) 2.71 1.08 .05 (.04)
3 1,569 472 2 (33) 2.64 .80 — (.06)
4 268 (464) — (14) .46 (.79) — (.02)
2024 1 1,879 920 (2) (44) 3.25 1.59 — (.08)
2 1,755 720 — (37) 3.10 1.27 — (.07)
(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.
Aflac Incorporated and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Consolidated Balance Sheets
(In Millions, except per-share data)
December 31, June 30,
Assets: 2019 2020 2021 2022 2023 2023 2024
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 $ 70,739 $ 62,582
Fixed maturity securities available for sale - consolidated variable interest entities, at fair value 4,312 4,596 4,490 3,805 3,712 3,766 3,677
Fixed maturity securities held to maturity, at amortized cost, net of allowance for credit losses 30,085 24,464 22,000 19,056 17,819 17,436 15,685
Equity securities, at fair value 802 1,283 1,603 1,091 1,088 965 728
Commercial mortgage and other loans, net of allowance for credit losses 9,569 10,554 11,786 13,496 12,527 13,346 11,795
Other investments 1,477 2,429 3,842 4,070 4,530 5,491 7,102
Cash and cash equivalents 4,896 5,141 5,051 3,943 4,306 4,720 6,060
Total investments and cash 138,091 149,753 142,978 117,397 113,560 116,463 107,629
Receivables, net of allowance for credit losses (1) 816 778 672 647 848 755 880
Accrued investment income 772 780 737 745 731 719 726
Deferred policy acquisition costs 10,128 10,441 9,848 9,239 9,132 8,860 8,550
Property and equipment, net 581 601 538 530 445 500 398
Other assets, net of allowance for credit losses (1)(2) 2,380 2,733 3,377 3,180 2,008 3,329 1,985
Total assets $ 152,768 $ 165,086 $ 158,150 $ 131,738 $ 126,724 $ 130,626 $ 120,168
Liabilities and Shareholders' Equity:
Liabilities:
Total policy liabilities $ 106,554 $ 114,391 $ 126,331 $ 96,910 $ 91,599 $ 93,807 $ 77,353
Notes payable 6,569 7,899 7,956 7,442 7,364 7,087 7,430
Income taxes, primarily deferred 5,370 4,661 30 698 154 343 752
Other liabilities 5,316 4,576 6,802 6,548 5,622 8,950 8,586
Total liabilities 123,809 131,527 141,119 111,598 104,739 110,187 94,121
Shareholders' equity:
Common stock 135 135 135 135 136 136 136
Additional paid-in capital 2,313 2,410 2,529 2,641 2,771 2,697 2,835
Retained earnings 34,291 37,984 40,963 44,367 47,993 46,937 51,345
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains (losses) (1,623) (1,109) (1,985) (3,564) (4,069) (4,249) (5,091)
Unrealized gains (losses) on fixed maturity securities 8,548 10,361 9,602 (702) 1,139 1,978 401
Unrealized gains (losses) on derivatives (33) (34) (30) (27) (22) (25) (22)
Effect of change in discount rate assumption(s) N/A N/A (15,832) (2,100) (2,560) (5,059) 1,425
Pension liability adjustment (277) (284) (166) (36) (8) 17 (5)
Treasury stock (14,395) (15,904) (18,185) (20,574) (23,395) (21,993) (24,977)
Total shareholders' equity 28,959 33,559 17,031 20,140 21,985 20,439 26,047
Total liabilities & shareholders' equity $ 152,768 $ 165,086 $ 158,150 $ 131,738 $ 126,724 $ 130,626 $ 120,168

(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 $264 million in 2024, $270 million in 2023, $265 in 2022, $268 in 2021, $269 million in 2020 and $140 million in 2019

Aflac Incorporated and Subsidiaries
Quarterly Financial Results
(Dollars In Millions, except per-share data)
Total
Net Net Benefits Acquisitions Total Net EPS Adj. EPS (1)
Earned Inv. Total & & Pretax Net Adjusted
Period Premiums Income Revenues Claims, Net Adj. Exp. Earn. Earn. Earn. (1) Basic Dil. Basic Dil.
2019 18,780 3,578 22,307 11,942 5,920 4,445 3,304 3,314 4.45 4.43 4.46 4.44
2020 18,622 3,638 22,147 11,796 6,192 4,159 4,778 3,552 6.69 6.67 4.98 4.96
2021 17,095 3,818 21,554 10,476 5,870 5,208 4,231 3,925 6.28 6.25 5.83 5.80
2022 14,901 3,656 19,140 8,887 5,384 4,869 4,418 3,614 6.96 6.93 5.69 5.67
2023 14,123 3,811 18,701 8,211 5,228 5,262 4,659 3,733 7.81 7.78 6.26 6.23
2022 1 4,079 903 5,173 2,483 1,396 1,294 1,047 942 1.61 1.60 1.45 1.44
2 3,764 937 5,315 2,274 1,333 1,708 1,394 945 2.18 2.17 1.47 1.47
3 3,535 920 4,704 2,076 1,299 1,329 1,781 910 2.83 2.82 1.45 1.44
4 3,523 896 3,948 2,054 1,356 538 196 817 .32 .31 1.32 1.31
2023 1 3,688 943 4,800 2,150 1,308 1,342 1,188 953 1.94 1.94 1.56 1.55
2 3,573 999 5,172 2,098 1,249 1,825 1,634 954 2.72 2.71 1.59 1.58
3 3,476 1,004 4,950 1,860 1,285 1,805 1,569 1,095 2.65 2.64 1.85 1.84
4 3,385 865 3,777 2,103 1,385 289 268 732 .46 .46 1.26 1.25
2024 1 3,456 1,000 5,436 2,010 1,256 2,170 1,879 961 3.27 3.25 1.67 1.66
2 3,325 1,095 5,138 1,921 1,198 2,019 1,755 1,035 3.11 3.10 1.83 1.83

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

Aflac Incorporated and Subsidiaries
Quarterly Book Value Per Share
(Dollars In Millions, except per-share data)
Adjusted BV
Adjusted BV Per Share Incl
Equity AOCI Adjusted BV Per Share Incl Foreign Currency
BV Per BV Per Adjusted BV Per Share Foreign Currency Translation G/(L)
Period Share Share Per Share (1) % Change Translation G/(L)(1) % Change
2019 39.84 9.10 30.74 8.9% 28.51 10.6%
2020 48.46 12.90 35.56 15.7% 33.96 19.1%
2021 26.12 (12.90) 39.01 9.7% 35.97 5.9%
2022 32.73 (10.45) 43.18 10.7% 37.39 3.9%
2023 38.00 (9.54) 47.55 10.1% 40.51 8.3%
2022 1 27.21 (13.09) 40.31 10.1% 36.53 7.0%
2 30.82 (11.00) 41.82 11.3% 36.75 4.6%
3 31.97 (12.03) 44.00 14.6% 36.99 3.4%
4 32.73 (10.45) 43.18 10.7% 37.39 3.9%
2023 1 32.65 (12.01) 44.66 10.8% 38.69 5.9%
2 34.30 (12.31) 46.61 11.5% 39.48 7.4%
3 38.63 (9.81) 48.44 10.1% 40.80 10.3%
4 38.00 (9.54) 47.55 10.1% 40.51 8.3%
2024 1 41.27 (8.95) 50.22 12.4% 42.04 8.7%
2 46.40 (5.86) 52.26 12.1% 43.19 9.4%

(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.

Aflac Incorporated and Subsidiaries Aflac Incorporated and Subsidiaries
Return on Equity
Year Ended December 31, 3 Months Ended June 30, 6 Months Ended June 30,
2019 2020 2021 (4) 2022 2023 2023 2024 2023 2024
U.S. GAAP ROE (1) - Net earnings 12.6 % 15.3 % 26.7 % 23.8 % 22.1 % 32.5 % 28.3 % 27.8 % 30.3 %
Impact of excluding unrealized foreign currency translation gains (losses) (1.0) (0.9) (1.7) (2.5) (3.1) (4.7) (4.8) (4.0) (4.9)
Impact of excluding unrealized gains (losses) on securities and derivatives 3.6 6.2 10.7 4.1 0.2 1.9 0.7 0.6 0.8
Impact of excluding effect on change in discount rate assumptions N/A N/A (18.5) (8.2) (1.9) (5.9) — (3.6) (0.6)
Impact of excluding pension liability adjustment (0.1) (0.2) (0.2) (0.1) — — — — —
Impact of excluding AOCI 2.5 5.1 (9.7) (6.8) (4.9) (8.7) (4.1) (7.0) (4.7)
U.S. GAAP ROE - less AOCI 15.1 20.3 17.0 17.0 17.2 23.8 24.2 20.8 25.6
Differences between adjusted earnings and net earnings (2) — (5.2) (1.2) (3.1) (3.4) (9.9) (9.9) (6.7) (11.5)
Adjusted ROE - reported (3) 15.2 15.1 15.8 13.9 13.8 13.9 14.3 14.0 14.0
(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.
Aflac Incorporated and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact (1)
(Diluted Basis)
Change
QTD YTD Excluding Excluding
Foreign Foreign Foreign Foreign
Adjusted Currency Currency Currency Currency
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 %
2022 1 $ 1.44 .7 % (.05) (.05) $ 1.50 4.9 %
2 1.47 — (.09) (.15) 1.56 6.1
3 1.44 (8.3) (.15) (.30) 1.59 1.3
4 1.31 (.8) (.11) (.41) 1.43 8.3
$ 5.67 (2.2) % $ 6.08 4.8 %
2023 1 $ 1.55 7.6 % (.07) (.07) $ 1.62 12.5 %
2 1.58 7.5 (.04) (.11) 1.62 10.2
3 1.84 27.8 (.06) (.17) 1.90 31.9
4 1.25 (4.6) (.02) (.19) 1.28 (2.3)
$ 6.23 9.9 % $ 6.43 13.4 %
2024 1 $ 1.66 7.1 % (.08) (.08) $ 1.74 12.3 %
2 1.83 15.8 % (.07) (.14) 1.89 19.6 %
$ 3.49 11.5 % $ 3.63 16.0 %
(1) See non-U.S.GAAP financial measures for definition of adjusted earnings and adjusted earnings excluding current period foreign currency impact
Aflac Incorporated and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Composition of Invested Assets
(In Millions)
December 31, June 30,
2019 2020 2021 2022 2023 2023 2024
Fixed Maturity Securities(1) $ 109,456 $ 116,056 $ 107,369 $ 94,525 $ 88,508 $ 88,285 $ 80,288
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 6,699 5,546
Middle Market Loans (floating rate) 2,412 3,635 4,601 5,028 4,531 4,900 4,391
Commercial Mortgage Loans 1,707 1,688 1,854 1,775 1,697 1,438 1,591
Other Loans — — 20 238 301 309 267
Total Commercial mortgage and other loans, net of allowance for credit losses(1) 9,569 10,554 11,721 13,496 12,527 13,346 11,795
Equity Securities, at FV through net earnings 802 1,283 1,603 1,091 1,088 965 728
Alternatives(2) 551 919 1,703 2,107 2,619 2,379 2,828
Total Portfolio $ 120,378 $ 128,812 $ 122,396 $ 111,219 $ 104,742 $ 104,975 $ 95,639
Unrealized Gains (Losses) on Invested Assets
(In Millions)
December 31, June 30,
2019 2020 2021 2022 2023 2023 2024
Fixed Maturity Securities
Available For Sale - Gross Gains $ 12,266 $ 14,771 $ 13,566 $ 4,800 $ 6,050 $ 6,462 $ 5,971
Available For Sale - Gross Losses (375) (481) (239) (4,528) (3,449) (2,806) (4,315)
Total Available For Sale 11,891 14,290 13,327 272 2,601 3,656 1,656
Held to Maturity - Gross Gains 7,519 5,935 4,869 2,154 1,838 2,502 890
Held to Maturity - Gross Losses (10) — — — — — (5)
Total Held to Maturity $ 7,509 $ 5,935 $ 4,869 $ 2,154 $ 1,838 $ 2,502 $ 885
Credit Ratings on Fixed Maturities
(At Amortized Cost)
December 31, June 30,
Credit Rating 2019 2020 2021 2022 2023 2023 2024
AAA 1.1 % 1.0 % 1.0 % 1.6 % 1.6 % 1.7 % 1.6 %
AA 4.3 4.5 5.1 5.2 5.7 5.5 6.2
A 68.6 69.3 68.9 68.0 68.1 68.2 67.6
BBB 23.1 21.9 22.5 23.0 22.9 22.7 23.1
BB or Lower 2.9 3.3 2.5 2.2 1.7 1.9 1.5
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
Aflac Incorporated and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Supplemental Investment Data by Segment
3 Months Ended 6 Months Ended
December 31, June 30, June 30,
2019 2020 2021 2022 2023 2023 2024 2023 2024
Aflac Japan:
¥ 11,784,586 ¥ 11,936,087 ¥ 12,405,531 ¥ 12,617,181 ¥ 12,127,531 ¥ 12,839,288 ¥ 12,661,415 ¥ 12,839,288 ¥ 12,661,415
2.33 % 2.38 % 2.72 % 2.78 % 2.90 % 2.77 % 3.59 % 2.67 % 3.37 %
2.64 % 2.59 % 2.60 % 3.06 % 3.18 % 3.19 % 3.32 % 3.19 % 3.32 %
¥ 1,003,885 ¥ 714,124 ¥ 952,038 ¥ 716,964 ¥ 378,541 ¥ 87,385 ¥ 156,496 ¥ 246,825 ¥ 457,066
3.83 % 3.75 % 3.50 % 4.48 % 5.18 % 4.75 % 5.96 % 5.03 % 5.71 %
Aflac U.S.:
$ 14,036 $ 14,848 $ 15,841 $ 16,772 $ 17,075 $ 16,419 $ 17,242 $ 16,419 $ 17,242
5.70 % 4.90 % 4.87 % 4.72 % 4.88 % 4.91 % 5.13 % 4.77 % 5.01 %
5.40 % 5.18 % 4.94 % 5.39 % 5.53 % 5.49 % 5.63 % 5.49 % 5.63 %
$ 1,835 $ 1,050 $ 2,130 $ 1,701 $ 907 $ 288 $ 209 $ 529 $ 727
4.51 % 3.04 % 3.41 % 5.16 % 7.56 % 7.75 % 7.60 % 7.41 % 6.96 %
Hedge Costs/Income Metrics (5)(6)
3 Months Ended 6 Months Ended
December 31, June 30, June 30,
2019 2020 2021 2022 2023 2023 2024 2023 2024
Aflac Japan:
FX hedged notional at end of period (in billions) - forwards (7) $ 8.8 $ 6.0 $ 6.4 $ 4.1 $ — $ 3.7 $ — $ 3.7 $ —
FX hedged notional at end of period (in billions) - put options 9.2 13.1 11.6 13.5 24.7 6.7 24.7 6.7 24.7
Amortized hedge costs for period (in millions) (257) (206) (76) (112) (157) (63) (7) (122) (13)
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 $ 5.0 $ 2.0 $ 5.0 $ 2.0
FX hedged notional at end of period (in billions) - put options 2.0 2.0 1.9 2.6 0.5 11.1 — 11.1 —
Amortized hedge income (costs) for period (in millions) 89 97 57 68 122 38 34 67 62
(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 investments in Japan      Segment’s " 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      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.

All values are in US Dollars.

Aflac Incorporated and Subsidiaries
December 31, 2023 June 30, 2024
Amortized<br>Cost (3) Fair <br>Value Amortized<br>Cost (3) Fair <br>Value
JGB $ 39,151 $ 40,222 $ 34,111 $ 33,114
Other 19,517 20,285 16,667 17,103
Total yen denominated 58,668 60,507 50,778 50,217
Program 23,384 25,254 24,254 26,788
Other 2,081 2,902 1,830 2,806
US dollar denominated 25,465 28,156 26,084 29,594
Total $ 84,133 $ 88,663 $ 76,862 $ 79,811
June 30, 2024
(In millions) Amortized Cost (3) % of <br>Total
Government and agencies $ 35,174 43.8 %
Municipalities 2,291 2.9
Mortgage- and asset-backed securities 3,409 4.2
Public utilities 6,455 8.0
Electric 5,214 6.5
Natural Gas 724 .9
Other 517 .6
Sovereign and supranational 787 1.1
Banks/financial institutions 8,348 10.4
Banking 4,846 6.0
Insurance 1,811 2.3
Other 1,691 2.1
Other corporate 23,824 29.6
Basic Industry 2,046 2.5
Capital Goods 3,007 3.7
Communications 2,504 3.1
Consumer Cyclical 1,883 2.3
Consumer Non-Cyclical 5,585 7.0
Energy 2,072 2.6
Other 1,050 1.3
Technology 3,013 3.8
Transportation 2,664 3.3
Total fixed maturity securities $ 80,288 100.0 %
(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

All values are in US Dollars.

Aflac Incorporated and Subsidiaries
Long-Term Debt Data
Adjusted Leverage Ratios
(In Millions)
December 31, June 30,
2019 2020 2021 2022 2023 2023 2024
Notes payable $ 6,569 $ 7,899 $ 7,956 $ 7,442 $ 7,364 $ 7,087 $ 7,430
50% of subordinated debentures and perpetual bonds (408) (432) (389) (337) (315) (308) (277)
Pre-funding of debt maturities (348) — — — (211) — —
Adjusted debt (1) 5,814 7,467 7,568 7,105 6,839 6,779 7,154
Total Shareholders' Equity 28,959 33,559 17,031 20,140 21,985 20,439 26,047
Accumulated other comprehensive (income) loss:
Unrealized foreign currency translation (gains) losses 1,623 1,109 1,985 3,564 4,069 4,249 5,091
Unrealized (gains) losses on fixed maturity securities (8,548) (10,361) (9,602) 702 (1,139) (1,978) (401)
Unrealized (gains) losses on derivatives 33 34 30 27 22 25 22
Effect on change in discount rate assumptions N/A N/A 15,832 2,100 2,560 5,059 (1,425)
Pension liability adjustment 277 284 166 36 8 (17) 5
Adjusted book value (1) 22,344 24,625 25,442 26,569 27,505 27,777 29,339
Adjusted capitalization ex-AOCI(1)(2) $ 28,565 $ 32,524 $ 33,398 $ 34,011 $ 34,658 $ 34,864 $ 36,769
Adjusted debt to adjusted capitalization ex-AOCI 20.4 % 23.0 % 22.7 % 20.9 % 19.7 % 19.4 19.5 %
Adjusted capitalization(1)(3) $ 26,665 $ 31,131 $ 31,247 $ 30,411 $ 30,581 $ 30,632 $ 31,673
Adjusted debt to adjusted capitalization 21.8 % 24.0 % 24.2 % 23.4 % 22.4 % 22.1 22.6 % Debt Maturities(4)
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
(In Millions)
June 30, 2024
≤ 1 year 1 > 5 years 5 > 10 years 10 > 20 years 20 years + Total
Senior Notes $ — $ 1,746 $ 2,768 $ 1,036 $ 1,269 $ 6,819
Subordinated debt — — — — 559 559
Total $ — $ 1,746 $ 2,768 $ 1,036 $ 1,828 $ 7,378

(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.

Aflac Incorporated and Subsidiaries

Insurer Financial Strength Ratings
AM Best Moody's S&P JCR R&I
U.S. Operating Companies
Aflac of Columbus A+ Aa3 A+ AA AA
Aflac of New York A+ _ A+ _ _
Continental American Insurance Company A+ _ _ _ _
Japan Operating Company
Aflac Life Insurance Japan Ltd. A+ Aa3 A+ AA AA
Bermuda Operating Company
Aflac Re Bermuda Ltd. _ _ _ AA _
Issuer Credit Ratings
AM Best Moody's S&P JCR R&I
Aflac Incorporated
Long-term Senior Debt a A3 A- A+ A+
Junior Subordinated Debt a- Baa1 BBB _ A-
Aflac of Columbus
Long-term Senior Debt aa _ A+ AA _
Aflac Life Insurance Japan, Ltd.
Long-term Senior Debt aa _ 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.
Aflac U.S.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
Years Ended December 31, 3 Months Ended June 30, 6 Months Ended June 30,
% %
2019 2020 2021 2022 2023 2023 2024 Change 2023 2024 Change
Revenues:
Net earned premiums
Gross premiums $ 5,818 $ 5,762 $ 5,540 $ 5,467 $ 5,669 $ 1,418 $ 1,471 $ 2,837 $ 2,960
Assumed (ceded) (11) (4) 73 103 6 7 (16) 15 (30)
Total net earned premiums 5,808 5,758 5,614 5,570 5,675 1,425 1,455 2.1 2,853 2,930 2.7
Adjusted net investment income 720 705 754 755 820 203 218 7.4 400 424 6.0
Other income excl. realized foreign
exchange gains (losses) 22 102 121 161 128 35 11 70 30
Total adjusted revenues 6,550 6,565 6,489 6,486 6,623 1,663 1,684 1.3 3,323 3,384 1.8
Benefits and claims:
Benefits and claims, net
Incurred claims -direct 2,611 2,498 2,183 2,245 2,423 599 654 1,194 1,419
Incurred claims -assumed (ceded) (5) (1) 89 104 17 5 (14) 14 (25)
Increase in FPB -direct 268 271 463 326 280 72 64 160 24
Increase in FPB -assumed (ceded) (2) (3) (11) 4 (5) (1) (1) (2) 1
Total benefits and claims, net, excluding <br>  reserve remeasurement N/A N/A 2,724 2,679 2,715 675 704 1,366 1,419
Reserve remeasurement (gain) loss N/A N/A (85) (124) (283) (30) (24) (70) (54)
Total benefits and claims, net 2,871 2,765 2,639 2,555 2,431 645 680 5.4 1,296 1,365 5.3
Adjusted expenses:
Amortization of deferred policy
acquisition costs 573 570 442 455 490 120 132 10.0 239 264 10.5
Insurance commissions 590 576 550 553 561 140 140 — 282 281 (.4)
Insurance and other expenses 1,244 1,386 1,502 1,564 1,640 389 350 (10.0) 785 734 (6.5)
Total adjusted expenses 2,407 2,532 2,494 2,573 2,691 648 621 1,305 1,279
Total benefits and adjusted expenses 5,279 5,297 5,132 5,127 5,122 1,294 1,301 .5 2,601 2,644 1.7
Pretax adjusted earnings $ 1,272 $ 1,268 $ 1,356 $ 1,359 $ 1,501 $ 369 $ 383 3.8 $ 721 $ 739 2.5
Aflac U.S.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Balance Sheets
(In Millions)
December 31, June 30,
2019 2020 2021 2022 2023 2023 2024
Assets:
Investments and cash $ 16,141 $ 17,949 $ 18,324 $ 15,987 $ 16,718 $ 15,819 $ 16,588
Receivables, net of allowance for credit losses (1) 650 667 574 584 688 676 710
Accrued investment income 174 172 169 184 183 178 186
Deferred policy acquisition costs 3,544 3,450 3,366 3,463 3,573 3,508 3,599
Other assets (1) 436 626 758 784 698 751 672
Total assets $ 20,945 $ 22,864 $ 23,191 $ 21,002 $ 21,861 $ 20,932 $ 21,755
Liabilities and Shareholders' Equity:
Future policy benefits $ 9,404 $ 9,674 $ 14,212 $ 10,870 $ 11,234 $ 11,087 $ 10,657
Policy and contract claims 1,779 2,010 151 200 258 240 356
Other policy liabilities 111 126 119 117 107 118 112
Deferred income taxes 51 235 (328) (243) (311) (246) (307)
Other liabilities 1,803 2,016 2,010 2,080 2,062 1,817 2,145
Shareholders' equity 7,796 8,803 7,027 7,978 8,510 7,915 8,793
Total liabilities & shareholders' equity $ 20,945 $ 22,864 $ 23,191 $ 21,002 $ 21,861 $ 20,932 $ 21,755

(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.

Aflac U.S.
Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Restated to conform to current classifications)
(Dollars In Millions)
Net Total Benefits Total Pretax
Earned % Adjusted % Adjusted % & % % Adjusted % Adjusted %
Period Premiums Change NII Change Revenues Change Claims, Net Change Amort. Change Expenses Change Earn. Change
2019 5,808 1.8 720 (1.0) 6,550 1.7 2,871 (.6) 573 7.3 2,407 6.0 1,272 (1.0)
2020 5,758 (.9) 705 (2.1) 6,565 .2 2,765 (3.7) 570 (.5) 2,532 5.2 1,268 (.3)
2021 5,614 (2.5) 754 7.0 6,489 (1.2) 2,639 (4.6) 442 (22.5) 2,494 (1.5) 1,356 6.9
2022 5,570 (.8) 755 .1 6,486 — 2,555 (3.2) 455 2.9 2,573 3.2 1,359 .2
2023 5,675 1.9 820 8.6 6,623 2.1 2,431 (4.9) 490 7.7 2,691 4.6 1,501 10.4
2022 1 1,413 (.6) 184 4.5 1,639 .7 666 (4.3) 114 2.7 640 6.7 333 .6
2 1,394 (1.0) 193 2.1 1,628 .1 658 (4.6) 113 1.8 627 4.7 343 1.5
3 1,375 (1.3) 185 (3.1) 1,598 (1.1) 616 4.1 114 3.6 638 3.2 345 (14.8)
4 1,388 (.2) 192 (2.5) 1,621 .1 614 (7.0) 115 4.5 667 (1.3) 339 20.2
2023 1 1,428 1.1 197 7.1 1,660 1.3 651 (2.3) 119 4.4 657 2.7 352 5.7
2 1,425 2.2 203 5.2 1,663 2.1 645 (2.0) 120 6.2 648 3.3 369 7.6
3 1,419 3.2 209 13.0 1,661 3.9 510 (17.2) 122 7.0 674 5.6 478 38.6
4 1,403 1.1 211 9.9 1,639 1.1 626 2.0 129 12.2 712 6.7 302 (10.9)
2024 1 1,475 3.3 206 4.6 1,699 2.3 686 5.4 132 10.9 658 .2 356 1.1
2 1,455 2.1 218 7.4 1,684 1.3 680 5.4 132 10.0 621 (4.2) 383 3.8

Aflac U.S.

Operating Ratios
(Before Management Fee)
12-Mo. Rolling Total Adjusted Combined Pretax
Premium Tot. Ben./ Amort./ Expenses/ Ratio/ Profit
Period Persistency (1) Premium Premium Total Adj. Rev. Total Adj. Rev. Margin
2019 77.7 49.4 9.9 36.7 80.6 19.4
2020 79.3 48.0 9.9 38.6 80.7 19.3
2021 79.7 47.0 7.9 38.4 79.1 20.9
2022 77.3 45.9 8.2 39.7 79.0 21.0
2023 78.6 42.8 8.6 40.6 77.3 22.7
2024 YTD 78.7 46.6 9.0 37.8 78.1 21.8
2022 1 78.7 47.1 8.1 39.0 79.7 20.3
2 78.1 47.2 8.1 38.5 78.9 21.1
3 77.9 44.8 8.3 39.9 78.4 21.6
4 77.3 44.2 8.3 41.1 79.1 20.9
2023 1 77.9 45.6 8.3 39.6 78.8 21.2
2 78.2 45.3 8.4 39.0 77.8 22.2
3 78.7 35.9 8.6 40.6 71.2 28.8
4 78.6 44.6 9.2 43.4 81.6 18.4
2024 1 78.7 46.5 8.9 38.7 79.0 21.0
2 78.7 46.7 9.1 36.9 77.3 22.7
(1) Includes Network Dental & Vision, Consumer Markets, and Group Premier Life, Absence Management, and Disability Solutions products<br><br>beginning in the first quarter of 2021

Aflac U.S.

Aflac U.S. Sales Results
(Dollars In Millions)
Annl. New Annl.
Prem. % Prem. %
Period In Force Change Sales Change
2019 6,301 1.1 1,580 (1.3)
2020 6,099 (3.2) 1,093 (30.8)
2021 6,003 (1.6) 1,278 16.9
2022 5,967 (.6) 1,483 16.1
2023 6,161 3.3 1,558 5.0
2022 1 5,942 (1.4) 299 19.0
2 5,926 (1.0) 305 15.6
3 5,889 (.7) 334 11.8
4 5,967 (.6) 545 17.4
2023 1 6,023 1.4 315 5.3
2 6,064 2.3 324 6.4
3 6,062 2.9 359 7.5
4 6,161 3.3 559 2.6
2024 1 6,211 3.1 298 (5.2)
2 6,239 2.9 331 2.0

Aflac U.S.

Aflac U.S. Product Mix
(New Annualized Premium Sales, Dollars in Millions)
% of % of % of Critical % of Hospital % of Dental/ % of
Period Disability Total Life Total Accident Total Care(1) Total Indemnity Total Vision Total Total
2019 355 22.5 97 6.1 450 28.5 346 21.9 263 16.6 69 4.4 1,580
2020 243 22.3 80 7.3 285 26.1 242 22.2 197 18.0 45 4.1 1,093
2021 296 23.1 114 9.0 321 25.1 273 21.3 209 16.4 65 5.1 1,278
2022 378 25.5 156 10.5 338 22.8 299 20.1 226 15.3 85 5.8 1,483
2023 399 25.6 188 12.0 326 20.9 322 20.7 225 14.5 98 6.3 1,558
2022 1 70 23.3 24 7.9 75 25.3 63 21.2 50 16.7 17 5.6 299
2 77 25.2 26 8.3 75 24.6 63 20.6 45 14.9 19 6.4 305
3 97 28.9 33 10.0 76 22.6 60 18.1 47 14.1 21 6.3 334
4 135 24.9 73 13.4 112 20.5 112 20.6 84 15.4 28 5.2 545
2023 1 79 25.2 26 8.3 74 23.5 64 20.5 50 15.9 21 6.6 315
2 80 24.8 35 10.7 73 22.4 66 20.4 46 14.3 24 7.4 324
3 101 28.2 54 15.0 72 19.9 67 18.6 45 12.6 20 5.7 359
4 139 24.8 73 13.0 107 19.2 124 22.2 83 14.9 33 5.9 559
2024 1 69 23.0 32 10.8 67 22.5 66 22.1 45 15.1 19 6.5 298
2 85 25.7 41 12.4 70 21.2 70 21.1 45 13.7 19 5.9 331 Aflac U.S. Sales Force Data
--- --- --- --- --- --- ---
Average Productivity
Weekly (Production/
Recruited Agents Producer Avg. Weekly
Period Career Broker Total Equivalents Producers)
2019 15,227 3,603 18,830 8,184 193,120
2020 11,826 1,861 13,687 5,918 184,706
2021 10,641 5,445 16,086 5,993 213,235
2022 9,550 1,500 11,050 6,186 239,786
2023 10,103 1,463 11,566 6,239 249,663
2022 1 1,987 455 2,442 6,061 49,322
2 2,937 391 3,328 6,067 50,264
3 2,358 339 2,697 6,010 55,599
4 2,268 315 2,583 6,607 82,538
2023 1 2,676 348 3,024 6,108 51,525
2 2,801 399 3,200 6,196 52,361
3 2,407 431 2,838 6,044 59,425
4 2,219 285 2,504 6,608 84,645
2024 1 2,330 346 2,676 5,800 51,432
2 3,113 422 3,535 6,098 54,262

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

Aflac Japan

Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
3 Months Ended June 30, 6 Months Ended June 30,
% %
2020 2021 2022 2023 2023 2024 Change 2023 2024 Change
Revenues:
Net earned premiums
Gross premiums 1,450,586 ¥ 1,409,134 ¥ 1,290,527 ¥ 1,246,657 ¥ 1,212,654 ¥ 302,801 ¥ 293,110 ¥ 609,540 ¥ 589,167
Assumed (ceded) (57,974) (55,926) (50,864) (48,578) (84,838) (19,423) (25,792) (39,114) (51,989)
Total net earned premiums 1,392,612 1,353,208 1,239,663 1,198,079 1,127,816 283,377 267,319 (5.7) 570,426 537,178 (5.8)
Net investment income (1)
Yen denominated 142,473 138,397 138,513 149,449 138,073 34,234 35,327 3.2 68,983 69,679 1.0
US denominated 157,717 167,541 202,905 215,171 247,277 62,086 78,629 26.6 115,940 141,626 22.2
Net investment income 300,191 305,938 341,419 364,621 385,352 96,322 113,957 18.3 184,924 211,305 14.3
Amortized hedge costs on foreign investments (2) (28,938) (22,816) (8,391) (13,155) (19,773) (8,359) (970) (88.4) (16,030) (1,767) (89.0)
Adjusted net investment income 271,253 283,122 333,028 351,466 365,579 87,963 112,987 28.4 168,895 209,538 24.1
Other income excl. realized foreign
currency gains (losses) 4,869 4,497 4,512 4,442 4,720 1,203 875 2,369 2,058
Total adjusted revenues 1,668,734 1,640,827 1,577,203 1,553,988 1,498,115 372,544 381,181 2.3 741,689 748,774 1.0
Benefits and claims:
Benefits and claims, net
Incurred claims -direct 727,491 734,471 743,247 788,572 781,774 185,568 195,320 400,806 420,177
Incurred claims -assumed (ceded) (45,657) (37,806) (31,798) (36,141) (70,748) (15,517) (18,777) (32,394) (38,184)
Increase in FPB -direct 292,444 260,200 149,084 73,592 44,121 21,684 3,386 14,643 (19,639)
Increase in FPB -assumed (ceded) (6,497) (11,377) (11,425) (5,618) 2,226 (2,669) 2,853 9 5,184
Total benefits and claims, net, excluding reserve       remeasurement N/A N/A 849,108 820,405 757,373 189,066 182,782 383,063 367,538
Reserve remeasurement (gain) loss N/A N/A (6,879) (13,337) (13,072) (2,756) (3,878) (4,483) (7,762)
Total benefits and claims, net 967,782 945,487 842,229 807,068 744,301 186,310 178,904 (4.0) 378,580 359,776 (5.0)
Adjusted expenses:
Amortization of deferred policy
acquisition costs 77,286 68,818 43,131 44,123 45,840 11,359 11,995 5.6 22,639 24,284 7.3
Insurance commissions 79,661 79,036 77,449 73,482 68,751 17,607 16,424 (6.7) 35,821 33,412 (6.7)
Insurance and other expenses 189,203 199,606 202,586 198,493 182,364 43,842 39,335 (10.3) 86,972 76,215 (12.4)
Total adjusted expenses 346,150 347,460 323,166 316,097 296,955 72,808 67,754 145,433 133,911
Total benefits and adjusted expenses 1,313,932 1,292,947 1,165,395 1,123,165 1,041,256 259,118 246,658 (4.8) 524,013 493,687 (5.8)
Pretax adjusted earnings 354,802 ¥ 347,881 ¥ 411,808 ¥ 430,823 ¥ 456,859 ¥ 113,426 ¥ 134,523 18.6 ¥ 217,677 ¥ 255,087 17.2
(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

All values are in US Dollars.

Aflac Japan

Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
3 Months Ended June 30, 6 Months Ended June 30,
% %
2020 2021 2022 2023 2023 2024 Change 2023 2024 Change
Revenues:
Net earned premiums
Gross premiums 13,304 $ 13,193 $ 11,765 $ 9,558 $ 8,649 $ 2,206 $ 1,881 $ 4,524 $ 3,873
Assumed (ceded) (532) (524) (463) (372) (602) (141) (165) (290) (342)
Total net earned premiums 12,772 12,670 11,301 9,186 8,047 2,064 1,715 (16.9) 4,234 3,531 (16.6)
Net investment income (1)
Yen denominated 1,307 1,296 1,262 1,140 985 249 227 (8.8) 512 458 (10.5)
US denominated 1,446 1,569 1,845 1,641 1,755 451 505 12.0 858 929 8.3
Net investment income 2,753 2,865 3,107 2,782 2,739 700 732 4.6 1,370 1,387 1.2
Amortized hedge costs on foreign investments (2) (257) (206) (76) (112) (157) (63) (7) (88.9) (122) (13) (89.3)
Adjusted net investment income 2,496 2,659 3,031 2,669 2,582 637 725 13.8 1,248 1,374 10.1
Other income excl. realized foreign
currency gains (losses) 45 42 41 35 35 9 7 18 14
Total adjusted revenues 15,313 15,371 14,373 11,890 10,664 2,710 2,447 (9.7) 5,500 4,919 (10.6)
Benefits and claims
Benefits and claims, net
Incurred claims -direct 6,671 6,875 6,776 6,038 5,582 1,352 1,253 2,977 2,765
Incurred claims -assumed (ceded) (419) (354) (290) (275) (502) (113) (120) (240) (251)
Increase in FPB -direct 2,684 2,437 1,356 562 314 163 23 108 (131)
Increase in FPB -assumed (ceded) (60) (107) (104) (43) 15 (19) 18 1 34
Total benefits and claims, net, excluding reserve       remeasurement N/A N/A 7,738 6,282 5,409 1,379 1,174 2,845 2,417
Reserve remeasurement (gain) loss N/A N/A (62) (91) (96) (22) (26) (34) (52)
Total benefits and claims, net 8,877 8,851 7,675 6,191 5,313 1,358 1,148 (15.5) 2,811 2,365 (15.9)
Adjusted expenses:
Amortization of deferred policy
acquisition costs 709 644 393 338 326 83 77 (7.2) 168 160 (4.8)
Insurance commissions 731 740 706 563 491 128 105 (18.0) 266 220 (17.3)
Insurance and other expenses 1,734 1,873 1,843 1,517 1,299 319 252 (21.0) 645 501 (22.3)
Total adjusted expenses 3,174 3,257 2,942 2,417 2,117 530 435 1,079 880
Total benefits and adjusted expenses 12,051 12,108 10,618 8,609 7,430 1,888 1,583 (16.2) 3,890 3,245 (16.6)
Pretax adjusted earnings 3,261 $ 3,263 $ 3,756 $ 3,281 $ 3,234 $ 822 $ 864 5.1 $ 1,610 $ 1,674 4.0
(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

All values are in US Dollars.

Aflac Japan

Balance Sheets
(In Millions)
December 31, June 30,
2019 2020 2021 2022 2023 2023 2024
Assets:
Investments and cash ¥ 12,847,994 ¥ 13,080,154 ¥ 13,645,902 ¥ 12,777,746 ¥ 12,566,939 ¥ 13,488,208 ¥ 13,115,407
Receivables, net of allowance for credit losses 28,219 20,782 22,439 23,138 24,848 28,085 32,133
Accrued investment income 65,485 62,722 67,493 76,489 74,666 77,958 83,439
Deferred policy acquisition costs 721,341 723,579 745,510 766,506 788,394 776,027 797,500
Other assets 308,411 320,351 386,832 387,065 946,644 704,605 904,100
Total assets ¥ 13,971,450 ¥ 14,207,588 ¥ 14,868,176 ¥ 14,030,944 ¥ 14,401,491 ¥ 15,074,884 ¥ 14,932,579
Liabilities and Shareholders' Equity:
Future policy benefits ¥ 8,924,868 ¥ 9,175,501 ¥ 11,755,704 ¥ 10,315,140 ¥ 10,444,044 ¥ 10,922,302 ¥ 9,772,638
Policy and contract claims 315,477 328,778 — 28 465 611 605
Unearned premiums 453,133 361,010 284,045 227,732 192,595 207,831 180,459
Other policyholders' funds 801,588 808,429 877,690 880,989 874,854 886,267 875,931
Income taxes (prim. deferred) 618,901 478,969 36,166 114,688 95,297 53,975 165,623
Other liabilities 357,135 253,219 502,633 575,554 576,879 1,026,978 1,012,671
Shareholders' equity 2,500,349 2,801,682 1,411,938 1,916,812 2,217,357 1,976,920 2,924,652
Total liabilities & shareholders' equity ¥ 13,971,450 ¥ 14,207,588 ¥ 14,868,176 ¥ 14,030,944 ¥ 14,401,491 ¥ 15,074,884 ¥ 14,932,579

Aflac Japan

Balance Sheets
(In Millions)
December 31, June 30,
2019 2020 2021 2022 2023 2023 2024
Assets:
Investments and cash $ 117,269 $ 126,378 $ 118,639 $ 96,290 $ 88,606 $ 93,029 $ 81,427
Receivables, net of allowance for credit losses 258 201 195 174 175 194 199
Accrued investment income 598 606 587 576 526 538 518
Deferred policy acquisition costs 6,584 6,991 6,482 5,776 5,559 5,352 4,951
Other assets 2,815 3,095 3,363 2,917 6,675 4,860 5,613
Total assets $ 127,523 $ 137,271 $ 129,266 $ 105,734 $ 101,541 $ 103,972 $ 92,708
Liabilities and Shareholders' Equity:
Future policy benefits $ 81,461 $ 88,652 $ 102,206 $ 77,733 $ 73,638 $ 75,332 $ 60,673
Policy and contract claims 2,879 3,177 — — 3 4 4
Unearned premiums 4,136 3,488 2,470 1,716 1,358 1,433 1,120
Other policyholders' funds 7,316 7,811 7,631 6,639 6,169 6,113 5,438
Income taxes (prim. deferred) 5,650 4,630 314 781 619 322 1,040
Other liabilities 3,260 2,447 4,369 4,337 4,067 7,083 6,287
Shareholders' equity 22,820 27,068 12,276 14,528 15,687 13,685 18,146
Total liabilities & shareholders' equity $ 127,523 $ 137,271 $ 129,266 $ 105,734 $ 101,541 $ 103,972 $ 92,708

Aflac Japan

Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Yen In Millions)
Net Total Benefits Total Pretax
Earned % Adjusted % Adjusted % & % % Adjusted % Adjusted %
Period Premiums Change NII Change Revenues Change Claims, Net Change Amort. Change Expense Change Earn. Change
2019 1,392,612 (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
2020 1,353,208 (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)
2021 1,239,663 (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
2022 1,198,079 (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
2023 1,127,816 (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
2022 1 304,884 (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
2 302,213 (3.1) 94,004 8.4 397,358 (.5) 204,807 (3.7) 10,964 2.5 79,022 (.3) 113,529 5.5
3 293,667 (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
4 297,315 (3.1) 86,180 (1.7) 384,517 (2.8) 199,250 (4.3) 11,201 .6 82,482 (3.5) 102,785 .8
2023 1 287,048 (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
2 283,377 (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)
3 285,305 (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
4 272,085 (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
2024 1 269,859 (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
2 267,319 (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

Aflac Japan

Operating Ratios
(Before Management Fee)
12-Mo. Rolling Tot. Ben./ Tot. Adj. Combined Pretax
Premium Tot. Ben./ Premiums Amort./ Expenses/ Ratio/ Profit
Period Persistency(1) Premium (3rd sector) Premium Total Adj. Rev. Total Adj. Rev. Margin
2019 94.4 69.5 59.3 5.5 20.7 78.7 21.3
2020 95.1 69.9 59.7 5.1 21.2 78.8 21.2
2021 94.3 67.9 58.7 3.5 20.5 73.9 26.1
2022 94.1 67.4 58.5 3.7 20.3 72.3 27.7
2023 93.4 66.0 56.2 4.1 19.8 69.5 30.5
2024 93.3 67.0 57.7 4.5 17.9 65.9 34.1
2022 1 94.3 67.9 58.5 3.6 20.0 73.8 26.2
2 94.3 67.8 58.5 3.6 19.9 71.4 28.6
3 94.3 66.8 59.4 3.8 20.0 70.7 29.3
4 94.1 67.0 57.7 3.8 21.5 73.3 26.7
2023 1 93.9 67.0 57.7 3.9 19.7 71.8 28.2
2 93.8 65.7 56.2 4.0 19.5 69.6 30.4
3 93.5 65.1 54.8 4.0 19.0 67.2 32.8
4 93.4 66.1 56.2 4.3 21.1 69.6 30.4
2024 1 93.4 67.0 57.5 4.6 18.0 67.2 32.8
2 93.3 66.9 57.8 4.5 17.8 64.7 35.3

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

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) Change Sales Change Premium Sales Change
2019 1,489.3 (2.5) 72,836 (18.0) 79,697 (16.9)
2020 1,426.5 (4.2) 45,110 (38.1) 50,852 (36.2)
2021 1,360.6 (4.7) 48,977 8.6 54,764 7.7
2022 1,301.0 (4.4) 47,998 (2.0) 54,765 —
2023 1,246.4 (4.2) 52,234 8.8 60,730 10.9
2022 1 1,345.6 (4.6) 10,679 (19.0) 11,925 (14.8)
2 1,332.0 (4.3) 11,372 (6.2) 12,731 (6.4)
3 1,315.7 (4.3) 12,639 12.1 13,884 10.2
4 1,301.0 (4.4) 13,308 1.7 16,224 11.4
2023 1 1,281.4 (4.8) 10,952 2.6 13,213 10.8
2 1,268.4 (4.8) 13,964 22.8 16,112 26.6
3 1,257.4 (4.4) 13,606 7.7 15,600 12.4
4 1,246.4 (4.2) 13,711 3.0 15,805 (2.6)
2024 1 1,232.6 (3.8) 10,767 (1.7) 12,534 (5.1)
2 1,222.5 (3.6) 12,712 (9.0) 16,833 4.5

Aflac Japan

Aflac Japan Product Mix
(New Annualized Premium Sales, Yen In Billions)
% of % of Income % of Child % of % of Ordinary % of % of
Period Cancer Total Medical Total Support Total Endowment Total WAYS Total Life Other Total Other Total Total
2019 47.2 59.2 24.6 31.0 1.0 1.2 .2 .2 .4 .5 5.9 7.4 .4 .5 79.7
2020 28.8 56.6 15.9 31.2 .5 1.0 .2 .4 .4 .7 4.8 9.5 .3 .6 50.9
2021 27.0 49.2 20.4 37.2 .3 .5 .2 .3 .4 .8 4.9 9.0 1.6 3.0 54.8
2022 30.9 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
2023 38.9 64.1 12.3 20.2 .3 .4 .2 .4 4.1 6.8 3.9 6.5 1.0 1.6 60.7
2022 1 6.4 53.0 3.8 31.4 .1 1.1 .1 .3 .1 .7 1.1 9.0 .5 4.5 11.9
2 6.8 53.4 3.8 29.9 .3 2.2 — .2 .1 .8 1.2 9.2 .6 4.3 12.7
3 8.4 60.1 3.7 26.4 .2 1.2 — .2 .1 .6 1.0 7.7 .5 3.8 13.9
4 9.5 58.2 3.4 20.8 .1 .8 .1 .4 1.6 10.1 1.1 7.2 .4 2.5 16.2
2023 1 7.9 59.9 2.7 20.8 .1 .6 .1 .6 1.2 8.9 1.0 7.3 .2 1.9 13.2
2 10.9 67.7 2.8 17.5 .1 .4 .1 .4 1.0 6.6 1.0 6.1 .2 1.3 16.1
3 10.3 65.6 3.1 20.0 .1 .4 .1 .4 .9 6.0 .9 6.1 .2 1.5 15.6
4 9.9 62.5 3.6 22.8 .1 .4 — .3 .9 6.0 1.1 6.6 .2 1.4 15.8
2024 1 7.9 63.2 2.7 21.1 — .3 — .3 .7 5.3 1.0 8.1 .2 1.7 12.5
2 9.9 58.8 2.7 15.8 — .2 — .2 .4 2.3 3.7 21.8 .1 .9 16.8

Aflac Japan

Aflac Japan Sales Force Data
Number of Agencies by Type Sales Contribution by Agency Type
Period Individual/ Independent Corporate Affiliated<br>Corporate Bank Total Individual/ Independent Corporate Affiliated<br>Corporate Bank Licensed Sales<br>Associates(1) Recruited<br>Agencies
2019 7,683 1,343 367 9,393 45.7 50.0 4.3 109,265 77
2020 7,231 1,312 361 8,904 52.3 42.6 5.1 111,886 48
2021 6,779 1,283 360 8,422 51.1 43.7 5.2 111,854 62
2022 6,159 1,239 359 7,757 49.5 46.5 4.0 110,259 38
2023 5,751 1,203 360 7,314 46.7 50.0 3.3 113,010 24
2022 1 6,447 1,266 360 8,073 48.9 46.5 4.6 109,873 6
2 6,335 1,255 359 7,949 48.4 48.1 3.5 110,096 12
3 6,260 1,246 359 7,865 49.3 46.2 4.5 110,400 12
4 6,159 1,239 359 7,757 51.2 45.4 3.4 110,259 8
2023 1 6,056 1,232 359 7,647 50.9 45.4 3.7 109,769 4
2 5,947 1,219 360 7,526 44.8 52.5 2.7 112,593 5
3 5,843 1,211 360 7,414 44.4 51.9 3.7 112,795 6
4 5,751 1,203 360 7,314 47.7 49.2 3.1 113,010 9
2024 1 5,659 1,191 360 7,210 48.9 48.0 3.1 112,645 12
2 5,542 1,180 360 7,082 49.5 48.4 2.1 114,424 12

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

Aflac Japan

Yen/Dollar Exchange Rates
Yearly
Closing Qtr Cum %
Period Rate(1) Avg Avg Change
2019 109.56 N/A 109.07 1.2
2020 103.50 N/A 106.86 2.1
2021 115.02 N/A 109.79 (2.7)
2022 132.70 N/A 130.17 (15.7)
2023 141.83 N/A 140.57 (7.4)
2022 1 122.39 116.18 116.18 (8.9)
2 136.68 129.39 122.79 (12.2)
3 144.81 137.08 126.65 (14.3)
4 132.70 141.87 130.17 (15.7)
2023 1 133.53 132.30 132.30 (12.2)
2 144.99 137.53 134.97 (9.0)
3 149.58 144.97 138.38 (8.5)
4 141.83 148.11 140.57 (7.4)
2024 1 151.41 148.67 148.67 (11.0)
2 161.07 155.70 152.30 (11.4)
(1) Closing rate is based on the latest available and published MUFG Bank<br><br>Ltd. TTM mid-day exchange rate.

Corporate and Other

Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
3 Months Ended June 30, 6 Months Ended June 30,
% %
2020 2021 2022 2023 2023 2024 Change 2023 2024 Change
Revenues:
Total net earned premiums $ 200 $ 194 $ 180 $ 145 $ 400 $ 84 $ 155 84.5 $ 175 $ 320 82.9
Net investment income (1) 88 80 (73) 30 (77) 14 57 307.1 21 107 409.5
Amortized hedge income (2) 89 97 57 68 121 38 34 (10.5) 67 62 (7.5)
Adjusted net investment income 177 177 (16) 98 44 52 91 75.0 88 169 92.0
Other income 15 13 11 24 15 3 5 66.7 5 8 60.0
Total adjusted revenues 393 384 175 267 460 140 249 77.9 268 497 85.4
Benefits and expenses:
Total net benefits and claims 194 180 161 141 467 95 94 (1.1) 141 201 42.6
Interest expense 133 164 165 162 144 37 38 2.7 70 74 5.7
Other adjusted expenses 137 155 142 181 273 60 95 58.3 117 202 72.6
Total benefits and adjusted expenses 464 499 469 485 885 192 227 18.2 328 477 45.4
Pretax adjusted earnings $ (72) $ (115) $ (293) $ (218) $ (425) $ (52) $ 23 144.2 $ (58) $ 21 136.2
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of 30 and 53 for the three-month periods and 62 and 105 for the six-month periods ended June 30, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of 31 and 56 for the three-month periods and 64 and 108 for the six-months period ended June 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

All values are in US Dollars.

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.
• 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

Document

aflac-incorporatedx4xpro.jpg

Second Quarter 2024

Earnings Call

Video Update

Max K. Brodén

July 31, 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

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

Q2 2024 CFO Video Update

July 31, 2024

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

For the quarter, adjusted earnings per diluted share increased 15.8% year over year to $1.83, with a $0.07 negative impact from FX in the quarter. In this quarter, remeasurement gains on reserves totaled $51 million, and variable investment income ran $1 million above our long-term return expectations. We also received a make whole payment adding approximately $20 million, or $0.03 per share, to our adjusted earnings.

Adjusted book value per share including foreign currency translation gains and losses increased 9.4%, and the adjusted ROE was 14.3%, 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 5.7%. This decline reflects a ¥7.4 billion negative impact from an internal reinsurance transaction1 executed in fourth quarter 2023 and ¥4.8 billion negative impact from paid up policies. In addition, there is a ¥1.2 billion positive impact from deferred profit liability. Lapses were somewhat elevated, but within our expectations. At the same time, policies in force declined 2.4%.

Japan’s total benefit ratio came in at 66.9% for the quarter, up 120 basis points year over year and the third sector benefit ratio was 57.8%, up approximately 160 basis points year over year. We estimate the impact from remeasurement gains to be 140 basis points favorable to the benefit ratio in Q2 2024. Long-term experience trends, as it relates to treatment of cancer and hospitalization, continue to be in place, leading to continued favorable underwriting experience.

Persistency remained solid with a rate of 93.3%, which was down 50 basis points year over year. This change in persistency is in line with our expectations.

Our expense ratio in Japan was 17.8%, down 170 basis points year over year, driven primarily by the expense allowance from reinsurance transactions and continued disciplined expense management.

Adjusted net investment income in yen terms was up 28.4%, mainly by favorable impact from FX on U.S. dollar investments in yen terms, lower hedge costs, higher return on our alternatives portfolio compared to second quarter 2023 and call income.

The pretax margin for Japan in the quarter was 35.3%, up 490 basis points year over year; a very good result.

Turning to U.S. results, net earned premium was up 2.1%. Persistency increased 50 basis points year over year to 78.7%. We are encouraged by early signs from our persistency efforts and will remain focused on driving profitable growth.

Our total benefit ratio came in at 46.7%, 140 basis points higher than Q2 2023, driven by product mix and lower remeasurement gains than a year ago. We estimate that remeasurement gains impacted the benefit ratio by 170 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.

Our expense ratio in the U.S. was 36.9%, down 210 basis points year over year, primarily driven by platforms improving scale and strong expense management. We tend to benefit from seasonality in the first half and would expect expenses in the second half to increase.

1 Excludes the impact from reinsurance novated to Aflac Re in December 2023 whereby Aflac Re assumed the duties, obligations and liabilities through a reinsurance of business ALIJ previously ceded to an external reinsurer.

Our growth initiatives – group life & disability, network dental and vision and direct to consumer – increased our total expense ratio by 230 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 7.4%, mainly driven by higher yields on both our alternatives and fixed-rate portfolios.

Profitability in the U.S. segment was solid, with a pretax margin of 22.7%, also a very good result.

Our total commercial real estate loan watchlist stands at $1.0 billion, with less than $300 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 $14 million in this quarter net of charge offs. We had six loan foreclosures and moved nine properties 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 $23 million. Adjusted net investment income was $39 million higher than last year due to lower volume of tax credit investments at Aflac Inc. and higher volume of investable assets at Aflac Re. These tax credit investments impacted the corporate net investment income line for U.S. GAAP purposes negatively by $30 million with an associated credit to the tax line. The net impact to our bottom line was a positive $4 million in the quarter. To date, these investments are performing well and in line with expectations.

We are continuing to build out our reinsurance platform, and I am pleased with the outcome and performance.

Our capital position remains strong, and we ended the quarter with an SMR above 1,100% in Japan, and our combined RBC, while not finalized, we estimate to be greater than 650%. Unencumbered holding company liquidity stood at $4.1 billion, $2.3 billion above our minimum balance. 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 a release of $7 million, and Japan FSA impairments were ¥10.4 billion, or roughly $67 million in Q2. This is well within our expectations and with limited impact to both earnings and capital.

Adjusted leverage is 19.5% and below our leverage corridor of 20% to 25%. As we hold approximately 60% of our debt denominated in yen, 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.

We repurchased $800 million of our own stock and paid dividends of $283 million in Q2, 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.

a2q24maxsteleconferencep

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

2Q24 - Another Solid Quarter $2.71 $3.10 2Q23 2Q24 Net EPS (diluted) +14.4% $1.58 $1.83 2Q23 2Q24 Adjusted EPS (diluted)* +15.8% $1.58 $1.89 2Q23 2Q24 Adjusted EPS ex-FX* +19.6% *Non-GAAP financial measure. See appendix for information about this measure. 4

Strong ROE 32.5% 28.3% 13.9% 14.3% ROE (%) Adjusted ROE* (%) 2Q23 2Q24 *Non-GAAP financial measure. See appendix for information about this measure. 5

Aflac Japan Maintains Solid Persistency 93.8% 93.5% 93.4% 93.4% 93.3 2Q23 3Q23 4Q23 1Q24 2Q24 6

Aflac Japan 2Q24: Favorable experience, good expense control and strong margin Benefit Ratio % 68 66 Expense Ratio % 21 19 Pretax Profit Margin % 31 29 66.9% 17.8% 35.3% 2024 Outlook Ranges QTD Actual Operating Ratios 7

Aflac U.S Improving Persistency 78.2% 78.7% 78.6% 78.7% 78.7% 2Q23 3Q23 4Q23 1Q24 2Q24 8

Aflac U.S. 2Q24: Providing customers value, scaling growth and solid margin Benefit Ratio % 47 45 Expense Ratio % 40 38 Pretax Profit Ratio % 21 19 46.7% 36.9% 22.7% 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 6/24e 0 200 400 600 800 1000 1200 1400 Combined Risk-Based Capital Ratio1 (Fiscal year ending December 31,%) 531 550 659 732 710 2019 2020 2021 2022 2023 6/24e 0 200 400 600 800 >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*: Below the lower end of 20-25%range 19.4% 18.8% 19.7% 20.4% 19.5% 2Q23 3Q23 4Q23 1Q24 2Q24 15.0% 20.0% 25.0% *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 252 248 245 288 283 700 700 700 750 800 Dividends Repurchase 2Q23 3Q23 4Q23 1Q24 2Q24 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 June 30 2024 2023 %Change Net Earnings per diluted share $3.10 $2.71 14.4% Items impacting net earnings Adjusted net investment (gains) losses (1.32) (1.08) Other and non-recurring (income) loss — (0.06) Income tax (benefit) expense on items excluded from adjusted earnings 0.05 0.01 Adjusted earnings per diluted share 1.83 1.58 15.8% Current period foreign currency impact1 0.07 N/A Adjusted earnings per diluted share excluding current period foreign currency impact2 $1.89 $1.58 19.6% 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 June 30, in millions of Dollars 2024 2023 %Change Net Earnings $1,755 $1,634 7.4% Items impacting net earnings Adjusted net investment (gains) losses (749) (651) Other and non-recurring (income) loss — (35) Income tax (benefit) expense on items excluded from adjusted earnings 29 5 Adjusted earnings 1,035 954 8.5% Current period foreign currency impact1 37 N/A Adjusted earnings excluding current period foreign currency impact2 $1,072 $954 12.4% 18

Reconciliation of U.S. GAAP Return on Equity to Adjusted ROE1 Three Months Ended June 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 28.3% 32.5% Impact of excluding unrealized foreign currency translation gains (losses) (4.8) (4.7) Impact of excluding unrealized gains (losses) on securities and derivatives 0.7 1.9 Impact of excluding effect of changes in discount rate assumptions — (5.9) Impact of excluding pension liability adjustment — — Impact of excluding AOCI (4.1) (8.7) U.S. GAAP ROE - less AOCI 24.2 23.8 Differences between adjusted earnings and net earnings3 (9.9) (9.9) Adjusted ROE - reported 14.3 13.9 Less: Impact of foreign currency4 (0.5) N/A Adjusted ROE, excluding impact of foreign currency 14.8 13.9 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 June 30, in millions of Dollars 2024 2023 %Change U.S. GAAP book value per common share $46.40 $34.30 35.3% Less: Unrealized foreign currency translation gains (losses) per common share (9.07) (7.13) Unrealized gains (losses) on securities and derivatives per common share 0.68 3.28 Effect of changes in discount rate assumptions per common share 2.54 (8.49) Pension liability adjustment per common share (0.01) 0.03 Total AOCI per common share (5.86) (12.31) Adjusted book value per common share2 $52.26 $46.61 12.1% Add: Unrealized foreign currency translation gains (losses) per common share (9.07) (7.13) Adjusted book value including unrealized foreign currency translation gains (losses) per common share3 $43.19 $39.48 9.4% 20

Adjusted Leverage Ratios (In millions) 2024 2023 Notes Payable $7,430 $7,087 50% of subordinated debentures and perpetual bonds (277) (308) Pre-funding of debt maturities — — Adjusted debt1 7,154 6,779 Total Shareholders’ Equity 26,047 20,439 Accumulated other comprehensive (income)loss: Unrealized foreign currency translation (gains) losses 5,091 4,249 Unrealized (gains) losses on fixed maturity securities (401) (1,978) Unrealized (gains) losses on derivatives 22 25 Effect on change in discount rate assumptions (1,425) 5,059 Pension liability adjustment 5 (17) Adjusted book value1 29,339 27,777 Adjusted capitalization ex-AOCI2 $36,769 $34,864 Adjusted debt to adjusted capitalization ex-AOCI 19.5% 19.4% 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

Report a Problem

Category
Description
Email (optional, for follow-up)