afl-20221031

News Release

Aflac Incorporated Announces Third Quarter Results,

Reports Third Quarter Net Earnings of $1.6 Billion,

Declares Fourth Quarter Cash Dividend

COLUMBUS, Ga. - October 31, 2022 - Aflac Incorporated (NYSE: AFL) today reported its third quarter results.

Total revenues were $4.8 billion in the third quarter of 2022, compared with $5.2 billion in the third quarter of 2021. Net earnings were $1.6 billion, or $2.53 per diluted share, compared with $888 million, or $1.32 per diluted share a year ago, reflecting a release of $695 million in deferred taxes in the third quarter.

Net earnings in the third quarter of 2022 included net investment gains of $199 million, or $0.31 per diluted share, compared with net investment losses of $171 million, or $0.25 per diluted share a year ago. The net investment gains were driven by net gains from certain derivatives and foreign currency activities of $173 million and net gains from sales and redemptions of $59 million, both driven by foreign exchange. These net investment gains included a decrease of $22 million in the fair value of equity securities. These gains were partially offset by an increase in the allowance associated with the company's estimate of current expected credit losses (CECL) and impairments of $11 million.

Adjusted earnings* in the third quarter were $725 million, compared with $1.0 billion in the third quarter of 2021, reflecting a decrease of 29.7%. Adjusted earnings per diluted share* decreased 24.8% to $1.15 in the quarter. Adjusted earnings included a variable investment income loss of $40 million from alternative investments, which was $0.11 per share below return expectations. Additionally, adjusted earnings reflects $70 million, or $0.11 per share, of net investment income for a make-whole call of a security in the Japan segment. The weaker yen/dollar exchange rate impacted adjusted earnings per share by $0.08.

The average yen/dollar exchange rate in the third quarter of 2022 was 137.08, or 19.7% weaker than the average rate of 110.11 in the third quarter of 2021. For the first nine months, the average exchange rate was 126.65, or 14.3% weaker than the rate of 108.58 a year ago.

Total investments and cash at the end of September 2022 were $114.5 billion, compared with $146.0 billion at September 30, 2021. The decline in the portfolio is principally driven by the weaker yen and higher interest rates.

Shareholders’ equity was $24.2 billion, or $38.71 per share, at September 30, 2022, compared with $33.6 billion, or $50.62 per share, at September 30, 2021. Shareholders’ equity at the end of the third quarter included a net unrealized gain on investment securities and derivatives of $1.1 billion, compared with a net unrealized gain of $9.7 billion at September 30, 2021. Shareholders’ equity at the end of the third quarter also included an unrealized foreign currency translation loss of $4.5 billion, compared with an unrealized foreign currency translation loss of $1.8 billion at September 30, 2021. The annualized return on average shareholders’ equity in the third quarter was 25.3%.

For the first nine months of 2022, total revenues were down 7.1% to $15.5 billion, compared with $16.7 billion in the first nine months of 2021. Net earnings were $4.0 billion, or $6.25 per diluted share, compared with $3.3 billion, or $4.82 per diluted share, for the first nine months of 2021. Adjusted earnings for the first nine months of 2022 were $2.6 billion, or $4.03 per diluted share, compared with $3.2 billion, or $4.65 per diluted share, in 2021. Excluding the negative impact of $0.23 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share decreased 8.4% to $4.26 for the first nine months of 2022.

Shareholders’ equity excluding AOCI (or adjusted book value*) was $27.7 billion, or $44.34 per share at September 30, 2022, compared with $25.9 billion, or $39.06 per share, at September 30, 2021. The annualized adjusted return on equity excluding foreign currency impact* in the third quarter was 11.4%.

AFLAC JAPAN

In yen terms, Aflac Japan's net earned premiums were ¥309.9 billion for the quarter, or 4.1% lower than a year ago, mainly due to limited pay products reaching paid-up status and constrained sales from the impact of pandemic conditions. Adjusted net investment income increased 9.8% to ¥92.2 billion, mainly due to a weaker yen on the dollar-denominated investment income. Total adjusted revenues in yen declined 1.2% to ¥403.3 billion. Pretax adjusted earnings in yen for the quarter declined 19.2% on a reported basis to ¥86.9 billion, primarily due to a 940 basis point increase in the benefit ratio resulting from a wider scope of "deemed hospitalization" that was in effect through most of the third quarter. Pretax adjusted earnings decreased 27.9% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment decreased to 21.6%, compared with 26.3% a year ago.

For the first nine months, net earned premiums in yen were ¥939.5 billion, or 4.2% lower than a year ago. Adjusted net investment income increased 8.1% to ¥265.3 billion. Total adjusted revenues in yen were down 1.7% to ¥1.2 trillion. Pretax adjusted earnings were ¥298.8 billion, or 4.0% lower than a year ago.

In dollar terms, net earned premiums decreased 23.6% to $2.2 billion in the third quarter. Adjusted net investment income decreased 13.1% to $663 million. Total adjusted revenues declined by 21.4% to $2.9 billion. Pretax adjusted earnings declined 35.5% to $630 million.

For the first nine months, net earned premiums in dollars were $7.4 billion, or 18.4% lower than a year ago. Adjusted net investment income decreased 8.6% to $2.1 billion. Total adjusted revenues were down 16.4% to $9.5 billion. Pretax adjusted earnings were $2.4 billion, or 18.0% lower than a year ago.

For the quarter, total new annualized premium sales (sales) increased 10.2% to ¥13.9 billion, or $100 million, reflecting the August launch of a new cancer product through the agency channel. For the first nine months, total new sales decreased 4.1% to ¥38.5 billion, or $301 million.

AFLAC U.S.

Aflac U.S. net earned premiums declined 1.3% to $1.4 billion in the third quarter, impacted by lower year-to-date persistency. Adjusted net investment income decreased 3.1% to $185 million. Total adjusted revenues were down 1.1% to $1.6 billion. Pretax adjusted earnings were $309 million, 13.7% lower than a year ago, which was driven by elevated general expenses reflecting, in part, platform and growth investments, as well as the amortization of deferred acquisition costs driven by a slight drop in persistency. The pretax adjusted profit margin for the U.S. segment was 19.3%, compared with 22.2% a year ago.

For the first nine months, net earned premiums declined 1.0% to $4.2 billion. Adjusted net investment income increased 1.1% to $563 million. Total adjusted revenues were down 0.1% to $4.9 billion. Pretax adjusted earnings were $984 million, or 19.1% lower than a year ago.

Aflac U.S. sales increased 11.8% in the quarter to $334 million, reflecting continued improvement from investment in growth initiatives as well as productivity gains. For the first nine months of the year, total new sales increased 15.2% to $938 million.

CORPORATE AND OTHER

For the quarter, total adjusted revenues increased 1.4% to $73 million, primarily due to higher adjusted net investment income from higher interest rates and an increase in amortized hedge income, partially offset by higher tax credits expense and a reduction in total premiums as a result of significant yen weakening. Pretax adjusted earnings were a loss of $59 million, compared with a loss of $41 million a year ago, resulting from higher other adjusted expenses, interest expense, and benefits and claims (including the impact from "deemed hospitalization" benefits), partially offset by slightly higher total adjusted revenue.

For the first nine months, total adjusted revenues decreased 7.8% to $189 million. Pretax adjusted earnings were a loss of $179 million, compared with a loss of $144 million a year ago.

DIVIDEND AND CAPITAL RETURNED TO SHAREHOLDERS

The board of directors declared the fourth quarter dividend of $0.40 per share, payable on December 1, 2022 to shareholders of record at the close of business on November 16, 2022.

In the third quarter, Aflac Incorporated deployed $650 million in capital to repurchase 11.1 million of its common shares. At the end of September 2022, the company had 25.6 million remaining shares authorized for repurchase.

OUTLOOK

Commenting on the company’s results, Chairman and Chief Executive Officer Daniel P. Amos stated: "The company generated solid earnings for the first nine months, despite the weakening yen. Pandemic conditions in Japan and the U.S. continued to move toward normalcy, contributing to positive sales growth in both segments in the third quarter and momentum into the fourth quarter.

"Looking at our operations in Japan, sales continued to improve in the quarter with the launch of our new cancer insurance product through agencies in August, generating an increase of 10.2%. Persistency remained strong in the third quarter. We continue to monitor evolving pandemic conditions, as this impacts our ability to meet face-to-face with customers, which continues to be key to a recovery in sales. We believe our benefit ratio will normalize in the fourth quarter given the narrowed scope for "deemed hospitalization" introduced toward the end of the third quarter. Taking these factors into account, we continue to expect stronger sales in the fourth quarter, assuming that productivity continues to improve at Japan Post and that we execute on our product introduction and refreshment plans.

"In the U.S., I am encouraged by the continued improvement in the productivity of our agents and brokers as we enter what is typically our strongest quarter of the year. This led to a strong third quarter that produced an 11.8% increase in sales. We continue to work toward reinforcing our leading position and generating stronger sales for the fourth quarter.

"As always, we are committed to prudent liquidity and capital management. We continue to generate strong investment results while remaining in a defensive position as we monitor evolving economic conditions. In addition, we have taken proactive steps in recent years to defend cash flow and deployable capital against a weakening yen. With the fourth quarter's declaration, 2022 will mark the 40th consecutive year of dividend increases. We treasure our track record of dividend growth and remain committed to extending it, supported by the strength of our capital and cash flows. At the same time, we remain in the market repurchasing shares with a tactical approach, focused on integrating the growth investments we have made in our platform to improve our strength and leadership position."

*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) is a Fortune 500 company helping provide protection to more than 50 million people through its subsidiaries in Japan and the U.S., paying cash fast when policyholders get sick or injured. For more than six decades, insurance policies of Aflac Incorporated's subsidiaries have given policyholders the opportunity to focus on recovery, not financial stress. In the U.S., Aflac is the number one provider of supplemental health insurance products1. Aflac Life Insurance Japan is the leading provider of medical and cancer insurance in Japan, where it insures 1 in 4 households. In 2021, Aflac Incorporated was proud to be included as one of the World's Most Ethical Companies by Ethisphere for the 16th consecutive year. Also in 2021, the company was included in the Dow Jones Sustainability North America Index and became a signatory of the Principles for Responsible Investment (PRI). In 2022, Aflac Incorporated was included on Fortune's list of World's Most Admired Companies for the 21st time and Bloomberg's Gender-Equality Index for the third consecutive year. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/español. Investors may learn more about Aflac Incorporated and its commitment to ESG and social responsibility at investors.aflac.com under "Sustainability."

1 LIMRA 2021 U.S. Supplemental Health Insurance Total Market Report

A copy of Aflac’s Financial Analysts Briefing (FAB) 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 Tuesday, November 1, 2022.

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


AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)

THREE MONTHS ENDED SEPTEMBER 30,	2022		2021		% Change
Total revenues	$	4,820	$	5,237	(8.0)	%
Benefits and claims, net	2,340		2,609		(10.3)
Total acquisition and operating expenses	1,377		1,515		(9.1)
Earnings before income taxes	1,103		1,113		(0.9)
Income taxes	(493)		225
Net earnings	$	1,596	$	888	79.7	%
Net earnings per share – basic	$	2.54	$	1.33	91.0	%
Net earnings per share – diluted	2.53		1.32		91.7
Shares used to compute earnings per share (000):
Basic	629,350		668,762		(5.9)	%
Diluted	631,946		671,925		(5.9)
Dividends paid per share	$	0.40	$	0.33	21.2	%


AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)

NINE MONTHS ENDED SEPTEMBER 30,	2022		2021		% Change
Total revenues	$	15,492	$	16,670	(7.1)	%
Benefits and claims, net	7,125		7,996		(10.9)
Total acquisition and operating expenses	4,287		4,584		(6.5)
Earnings before income taxes	4,080		4,090		(0.2)
Income taxes	64		804
Net earnings	$	4,016	$	3,286	22.2	%
Net earnings per share – basic	$	6.28	$	4.84	29.8	%
Net earnings per share – diluted	6.25		4.82		29.7
Shares used to compute earnings per share (000):
Basic	639,862		678,509		(5.7)	%
Diluted	642,597		681,521		(5.7)
Dividends paid per share	$	1.20	$	0.99	21.2	%


AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)

SEPTEMBER 30,	2022		2021		% Change
Assets:
Total investments and cash	$	114,528	$	146,004	(21.6)	%
Deferred policy acquisition costs	8,155		9,714		(16.0)
Other assets	5,417		4,879		11.0
Total assets	$	128,100	$	160,597	(20.2)	%
Liabilities and shareholders’ equity:
Policy liabilities	$	86,540	$	107,443	(19.5)	%
Notes payable and lease obligations	7,518		8,066		(6.8)
Other liabilities	9,890		11,536		(14.3)
Shareholders’ equity	24,152		33,552		(28.0)
Total liabilities and shareholders’ equity	$	128,100	$	160,597	(20.2)	%
Shares outstanding at end of period (000)	623,868		662,817		(5.9)	%

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 cannot be predicted or that are outside management’s control. 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 cash flows from derivatives associated with notes payable but excluding any nonrecurring 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 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 term of the hedge. 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 cash flows 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 cash flows 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 cash flows from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management’s control, while excluding the components that are within management’s control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses.


RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)

THREE MONTHS ENDED SEPTEMBER 30,	2022		2021		% Change

Net earnings	$	1,596	$	888	79.7	%

Items impacting net earnings:
Adjusted net investment (gains) losses	(222)		172




Other and non-recurring (income) loss	(1)		8
Income tax (benefit) expense on items excluded from adjusted earnings 1	(648)		(37)



Adjusted earnings	725		1,031		(29.7)	%
Current period foreign currency impact 2	53		N/A
Adjusted earnings excluding current period foreign currency impact 3	$	778	$	1,031	(24.5)	%

Net earnings per diluted share	$	2.53	$	1.32	91.7	%

Items impacting net earnings:
Adjusted net investment (gains) losses	(0.35)		0.26
Other and non-recurring (income) loss	—		0.01
Income tax (benefit) expense on items excluded from adjusted earnings 1	(1.03)		(0.06)



Adjusted earnings per diluted share	1.15		1.53		(24.8)	%
Current period foreign currency impact 2	0.08		N/A
Adjusted earnings per diluted share excluding current period foreign currency impact 3	$	1.23	$	1.53	(19.6)	%

1 Primarily reflects release of $695 million in deferred taxes in the third quarter.

2 Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.

3 Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.


RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)

NINE MONTHS ENDED SEPTEMBER 30,	2022		2021		% Change

Net earnings	$	4,016	$	3,286	22.2	%

Items impacting net earnings:
Adjusted net investment (gains) losses	(923)		(216)




Other and non-recurring (income) loss	(1)		67
Income tax (benefit) expense on items excluded from adjusted earnings 1	(501)		32



Adjusted earnings	2,591		3,169		(18.2)	%
Current period foreign currency impact 2	147		N/A
Adjusted earnings excluding current period foreign currency impact 3	$	2,738	$	3,169	(13.6)	%

Net earnings per diluted share	$	6.25	$	4.82	29.7	%

Items impacting net earnings:
Adjusted net investment (gains) losses	(1.44)		(0.32)
Other and non-recurring (income) loss	—		0.10
Income tax (benefit) expense on items excluded from adjusted earnings 1	(0.78)		0.05



Adjusted earnings per diluted share	4.03		4.65		(13.3)	%
Current period foreign currency impact 2	0.23		N/A
Adjusted earnings per diluted share excluding current period foreign currency impact 3	$	4.26	$	4.65	(8.4)	%

1 Primarily reflects release of $695 million in deferred taxes in the third quarter.

2 Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.


RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)

THREE MONTHS ENDED SEPTEMBER 30,	2022		2021		% Change

Net investment (gains) losses	$	(199)	$	171	(216.4)	%

Items impacting net investment (gains) losses:
Amortized hedge costs	(28)		(20)
Amortized hedge income	19		13
Net interest cash flows from derivatives associated with certain investment strategies	(26)		(6)
Interest rate component of the change in fair value of foreign currency swaps on notes payable1	13		14

Adjusted net investment (gains) losses	$	(222)	$	172	(229.1)	%

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 SEPTEMBER 30,	2022		2021		% Change

Net investment income	$	920	$	991	(7.2)	%

Items impacting net investment income:
Amortized hedge costs	(28)		(20)
Amortized hedge income	19		13
Net interest cash flows from derivatives associated with certain investment strategies	(26)		(6)

Adjusted net investment income	$	885	$	978	(9.5)	%


RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)

NINE MONTHS ENDED SEPTEMBER 30,	2022		2021		% Change

Net investment (gains) losses	$	(885)	$	(224)	295.1	%

Items impacting net investment (gains) losses:
Amortized hedge costs	(84)		(55)
Amortized hedge income	44		45
Net interest cash flows from derivatives associated with certain investment strategies	(36)		(23)
Interest rate component of the change in fair value of foreign currency swaps on notes payable1	38		41

Adjusted net investment (gains) losses	$	(923)	$	(216)	327.3	%

1 Amounts are included with interest expenses that are a component of adjusted expenses.


RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED – IN MILLIONS)

NINE MONTHS ENDED SEPTEMBER 30,	2022		2021		% Change

Net investment income	$	2,760	$	2,908	(5.1)	%

Items impacting net investment income:
Amortized hedge costs	(84)		(55)
Amortized hedge income	44		45
Net interest cash flows from derivatives associated with certain investment strategies	(36)		(23)

Adjusted net investment income	$	2,684	$	2,875	(6.6)	%


RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE
(UNAUDITED - IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)

SEPTEMBER 30,	2022		2021		% Change
U.S. GAAP book value	$	24,152	$	33,552
Less:
Unrealized foreign currency translation gains (losses)	(4,455)		(1,760)
Unrealized gains (losses) on securities and derivatives	1,102		9,700
Pension liability adjustment	(158)		(278)
Total AOCI	(3,511)		7,662
Adjusted book value	$	27,663	$	25,890
Add:
Unrealized foreign currency translation gains (losses)	(4,455)		(1,760)
Adjusted book value including unrealized foreign currency translation gains (losses)	$	23,208	$	24,130

Number of outstanding shares at end of period (000)	623,868		662,817

U.S. GAAP book value per common share	$	38.71	$	50.62	(23.5)	%
Less:
Unrealized foreign currency translation gains (losses) per common share	(7.14)		(2.66)
Unrealized gains (losses) on securities and derivatives per common share	1.77		14.63
Pension liability adjustment per common share	(0.25)		(0.42)
Total AOCI per common share	(5.63)		11.56
Adjusted book value per common share	$	44.34	$	39.06	13.5	%
Add:
Unrealized foreign currency translation gains (losses) per common share	(7.14)		(2.66)
Adjusted book value including unrealized foreign currency translation gains (losses) per common share	$	37.20	$	36.41	2.2	%


RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)

THREE MONTHS ENDED SEPTEMBER 30,	2022		2021
U.S. GAAP ROE - Net earnings1	25.3	%	10.6	%
Impact of excluding unrealized foreign currency translation gains (losses)	(3.6)		(0.7)
Impact of excluding unrealized gains (losses) on securities and derivatives	1.9		4.0
Impact of excluding pension liability adjustment	(0.1)		(0.1)
Impact of excluding AOCI	(1.9)		3.2
U.S. GAAP ROE - less AOCI	23.4		13.8
Differences between adjusted earnings and net earnings2	(12.8)		2.2
Adjusted ROE - reported	10.6		16.0
Less: Impact of foreign currency3	(0.8)		N/A
Adjusted ROE, excluding impact of foreign currency	11.4		16.0

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.


RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)

NINE MONTHS ENDED SEPTEMBER 30,	2022		2021
U.S. GAAP ROE - Net earnings1	18.7	%	13.1	%
Impact of excluding unrealized foreign currency translation gains (losses)	(2.3)		(0.7)
Impact of excluding unrealized gains (losses) on securities and derivatives	3.8		5.2
Impact of excluding pension liability adjustment	(0.1)		(0.1)
Impact of excluding AOCI	1.4		4.3
U.S. GAAP ROE - less AOCI	20.0		17.3
Differences between adjusted earnings and net earnings2	(7.1)		(0.6)
Adjusted ROE - reported	12.9		16.7
Less: Impact of foreign currency3	(0.7)		N/A
Adjusted ROE, excluding impact of foreign currency	13.6		16.7

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.


EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES, UNAUDITED)

THREE MONTHS ENDED SEPTEMBER 30, 2022	Including Currency Changes		Excluding Currency Changes2
Net earned premiums3	(16.5)	%	(3.2)	%
Adjusted net investment income4	(9.5)	%	(0.8)
Total benefits and expenses	(9.8)		4.9
Adjusted earnings	(29.7)		(24.5)
Adjusted earnings per diluted share	(24.8)		(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)

NINE MONTHS ENDED SEPTEMBER 30, 2022	Including Currency Changes		Excluding Currency Changes2
Net earned premiums3	(12.9)	%	(3.3)	%
Adjusted net investment income4	(6.6)	%	(1.0)
Total benefits and expenses	(8.8)		1.4
Adjusted earnings	(18.2)		(13.6)
Adjusted earnings per diluted share	(13.3)		(8.4)

1Refer to previously defined adjusted earnings and adjusted earnings per diluted share.

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 those caused by COVID-19

•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 judgments 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

•concentration of the Company's investments in any particular single-issuer or sector

•the effects of COVID-19 and its variants (both known and emerging), and any resulting economic effects and government interventions, on the Company's business and financial results

•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

•interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security,

confidentiality 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 (such as COVID-19), tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, 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

•allegations or determinations of worker misclassification in the United States

Analyst and investor contact - David A. Young, 706.596.3264 or 800.235.2667 or [email protected]

Media contact - Ines Gutzmer, 762.207.7601 or [email protected]

FINAL 10/31/2022

Financial Analysts Briefing Supplement

Third Quarter 2022

This document is a statistical supplement to the Financial Analysts Briefing book. 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.


			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

[email protected]

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

	2020	1	726,793	468	1,613	9,984	508	718,382	724,366	3,146	727,512	724,366	3,146	727,512
		2	718,382	648	100	5,209	13	713,908	717,889	1,875	719,764	721,128	2,510	723,638
		3	713,908	468	134	10,916	20	703,574	711,698	2,095	713,793	717,962	2,372	720,333
		4	703,574	437	235	11,791	1	692,454	701,016	2,843	703,859	713,702	2,490	716,192

	2021	1	692,454	387	1,684	13,440	378	680,707	688,938	3,002	691,940	688,938	3,002	691,940
		2	680,707	330	130	9,174	3	671,990	678,050	2,871	680,921	683,464	2,936	686,400
		3	671,990	250	188	9,572	39	662,817	668,762	3,163	671,925	678,509	3,012	681,521
		4	662,817	249	224	11,140	18	652,132	659,100	3,412	662,512	673,617	3,112	676,729

	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	631,947	639,862	2,735	642,597

(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)

		Years Ended December 31,															3 Months Ended September 30,							9 Months Ended September 30,
																							%							%
		2017			2018			2019			2020			2021			2021			2022			Change	2021			2022			Change

	Aflac Japan	$	3,054		$	3,208		$	3,261		$	3,263		$	3,754		$	976		$	630		(35.5)	$	2,867		$	2,351		(18.0)
	Aflac U.S.		1,245			1,285			1,272			1,268			1,478			358			309		(13.7)		1,217			984		(19.1)
	Corporate and other (1)		(214)			(139)			(72)			(115)			(298)			(41)			(59)				(144)			(179)
	Pretax adjusted earnings		4,086			4,354			4,461			4,416			4,934			1,293			880		(31.9)		3,940			3,156		(19.9)
	Income taxes (1)		1,370			1,129			1,147			864			915			262			156		(40.5)		771			565		(26.7)
	Adjusted earnings (2)		2,716			3,226			3,314			3,552			4,019			1,031			725		(29.7)		3,169			2,591		(18.2)

	Reconciling items:
	Adjusted net investment gains (losses)		—			(297)			(15)			(229)			462			(172)			222				216			923
	Other and non-recurring income (loss) (3)		(69)			(75)			(1)			(28)			(73)			(8)			1				(67)			1
	Income tax benefit (expense) on items excluded from adjusted earnings (4)		24			83			3			72			(83)			(37)			648				(32)			501
	Tax reform adjustment (5)		1,933			(18)			4			—			—			—			—				—			—
	Tax valuation allowance release (6)		—			—			—			1,411			—			—			—				—			—
	Net earnings	$	4,604		$	2,920		$	3,304		$	4,778		$	4,325		$	888		$	1,596		79.7	$	3,286		$	4,016		22.2

	Effective Tax rate		(14.6)	%		26.7	%		25.7	%		(14.9)	%		18.7	%		20.2	%		(44.7)	%			19.7	%		1.6	%

	Earnings per share of common stock:
	Net earnings (basic)	$	5.81		$	3.79		$	4.45		$	6.69		$	6.42		$	1.33		$	2.54		91.0	$	4.84		$	6.28		29.8
	Net earnings (diluted)		5.77			3.77			4.43			6.67			6.39			1.32			2.53		91.7		4.82			6.25		29.7

	Adjusted earnings (basic) (2)	$	3.43		$	4.20		$	4.46		$	4.98		$	5.97		$	1.54		$	1.15		(25.3)	$	4.67		$	4.05		(13.3)
	Adjusted earnings (diluted) (2)		3.40			4.16			4.44			4.96			5.94			1.53			1.15		(24.8)		4.65			4.03		(13.3)

	(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $19 and $5 for the three-month periods and $61 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively is included as a reduction to net investment income. Tax credits on these investments of $19 and $10 for the three-month period and $63 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings.
	(2) See non-U.S. GAAP financial measures for definition of adjusted earnings.
	(3) Foreign currency gains and losses for all periods have been reclassified from Other and non-recurring income (loss) to Net investment gains and losses.
	(4) Primarily reflects release of $695 in deferred taxes in the third quarter of 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.


Aflac Incorporated and Subsidiaries

	Consolidated Statements of Earnings - U.S. GAAP
	(In Millions, except per-share data)

			Years Ended December 31,										3 Months Ended September 30,					9 Months Ended September 30,
																	%					%
			2017		2018		2019		2020		2021		2021		2022		Change	2021		2022		Change
	Revenues:
		Net earned premiums
		Gross premiums	$	18,875	$	19,018	$	19,122	$	18,955	$	17,857	$	4,426	$	3,681		$	13,567	$	11,772
		Assumed (ceded)		(345)		(341)		(342)		(333)		(210)		(54)		(30)			(162)		(93)
		Total net earned premiums		18,531		18,677		18,780		18,622		17,647		4,372		3,651	(16.5)		13,406		11,679	(12.9)
		Net investment income		3,220		3,442		3,578		3,638		3,818		991		920	(7.2)		2,908		2,760	(5.1)
		Net investment gains (losses) (1)		(151)		(430)		(135)		(270)		468		(171)		199			224		885
		Other income (1)		67		69		84		157		173		45		50			132		168
		Total revenues		21,667		21,758		22,307		22,147		22,106		5,237		4,820	(8.0)		16,670		15,492	(7.1)

	Benefits and Expenses:
		Benefits and claims, net
		Incurred claims -direct		8,853		9,121		9,279		9,364		8,947		2,186		2,107			6,747		6,443
		Incurred claims -assumed (ceded)		(446)		(421)		(372)		(296)		(148)		(43)		(47)			(124)		(89)
		Increase in FPB (2)-direct		3,628		3,167		2,952		2,707		1,759		461		276			1,358		757
		Increase in FPB (2)-assumed (ceded)		146		133		83		21		18		5		5			14		14
		Total net benefits and claims		12,181		12,000		11,942		11,796		10,576		2,609		2,340	(10.3)		7,996		7,125	(10.9)
		Acquisition and operating expenses:
		Amortization of DAC (3)		1,132		1,245		1,282		1,214		1,170		278		268			869		858
		Insurance commissions		1,316		1,320		1,321		1,316		1,256		311		267			952		846
		Insurance expenses		2,780		2,988		3,089		3,420		3,544		869		783			2,582		2,412
		Interest expense		240		222		228		242		238		57		59			181		171
		Other expenses		—		—		—		—		—		—		—			—		—
		Total acquisition and operating expenses		5,468		5,775		5,920		6,192		6,208		1,515		1,377	(9.1)		4,584		4,287	(6.5)
		Total benefits and expenses		17,649		17,775		17,862		17,988		16,784		4,124		3,717	(9.9)		12,580		11,412	(9.3)

		Pretax earnings		4,018		3,983		4,445		4,159		5,322		1,113		1,103			4,090		4,080

		Income tax expense (benefit) (4)		(586)		1,063		1,141		(619)		997		225		(493)			804		64

		Net earnings	$	4,604	$	2,920	$	3,304	$	4,778	$	4,325	$	888	$	1,596	79.7	$	3,286	$	4,016	22.2


		(1) 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.
		(2) Future policy benefits
		(3) Deferred acquisition costs
		(4) Primarily reflects release of $695 in deferred taxes in the third quarter of 2022


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)

		2017	4,604	—	1,888	(41)	5.77	—	2.37	(.05)
		2018	2,920	(230)	(76)	28	3.77	(.30)	(.09)	.04
		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	4,325	365	(59)	(38)	6.39	.54	(.09)	(.06)


	2020	1	566	(322)	5	9	.78	(.44)	.01	.01
		2	805	(116)	—	5	1.12	(.16)	—	.01
		3	2,456	45	1,418	3	3.44	.06	1.99	—
		4	951	212	(15)	14	1.35	.30	(.02)	.02

	2021	1	1,293	240	(5)	13	1.87	.35	(.01)	.02
		2	1,105	67	(42)	(6)	1.62	.10	(.06)	(.01)
		3	888	(136)	(7)	(14)	1.32	(.20)	(.01)	(.02)
		4	1,039	194	(5)	(30)	1.57	.29	(.01)	(.05)

	2022	1	1,032	106	(1)	(37)	1.58	.16	—	(.06)
		2	1,388	448	—	(57)	2.16	.70	—	(.09)
		3	1,596	871	1	(53)	2.53	1.38	—	(.08)





	(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,										September 30,
	Assets:			2017		2018		2019		2020		2021			2021			2022

	Investments and cash:
		Securities available for sale:
		Fixed maturity securities available for sale, at fair value		$	78,804	$	78,429	$	86,950	$	101,286	$	94,206			$	96,285		$	70,026
		Fixed maturity securities available for sale - consolidated variable interest entities, at fair value			5,509		4,466		4,312		4,596		4,490				4,437			3,617




		Fixed maturity securities held to maturity, at amortized cost, net of allowance for credit losses			31,430		30,318		30,085		24,464		22,000				22,613			17,466


		Equity securities, at fair value			1,023		987		802		1,283		1,603				1,461			1,064
		Commercial mortgage and other loans, net of allowance for credit losses			3,002		6,919		9,569		10,554		11,786				11,388			13,459
		Other investments			400		787		1,477		2,429		3,842				3,612			4,186
		Cash and cash equivalents			3,491		4,337		4,896		5,141		5,051				6,208			4,710
			Total investments and cash		123,659		126,243		138,091		149,753		142,978				146,004			114,528

	Receivables, net of allowance for credit losses				827		851		828		796		693				787			655
	Accrued investment income				769		773		772		780		737				701			684
	Deferred policy acquisition costs				9,505		9,875		10,128		10,441		9,525				9,714			8,155
	Property and equipment, net				434		443		581		601		538				542			488
	Other assets, net of allowance for credit losses (1)				2,023		2,221		2,368		2,715		3,071				2,849			3,590
			Total assets	$	137,217	$	140,406	$	152,768	$	165,086	$	157,542			$	160,597		$	128,100

	Liabilities and Shareholders' Equity:
	Liabilities:
		Total policy liabilities		$	99,147	$	103,188	$	106,554	$	114,391	$	105,072			$	107,443		$	86,540
		Notes payable			5,289		5,778		6,569		7,899		7,956				8,066			7,518
		Income taxes, primarily deferred			4,745		4,020		5,370		4,661		4,339				4,577			1,888
		Other liabilities			3,438		3,958		5,316		4,576		6,922				6,959			8,002
			Total liabilities		112,619		116,944		123,809		131,527		124,289				127,045			103,948
	Shareholders' equity:
		Common stock			135		135		135		135		135				135			135
		Additional paid-in capital			2,052		2,177		2,313		2,410		2,529				2,491			2,615
		Retained earnings			29,895		31,788		34,291		37,984		41,381				40,830			44,892
		Accumulated other comprehensive income (loss):
			Unrealized foreign currency translation gains (losses)		(1,750)		(1,847)		(1,623)		(1,109)		(2,013)				(1,760)			(4,455)
			Unrealized gains (losses) on fixed maturity securities		5,964		4,234		8,548		10,361		9,602				9,731			1,131
			Unrealized gains (losses) on derivatives		(23)		(24)		(33)		(34)		(30)				(31)			(29)
			Pension liability adjustment		(163)		(212)		(277)		(284)		(166)				(278)			(158)
		Treasury stock			(11,512)		(12,789)		(14,395)		(15,904)		(18,185)				(17,566)			(19,979)
			Total shareholders' equity		24,598		23,462		28,959		33,559		33,253				33,552			24,152
			Total liabilities & shareholders' equity	$	137,217	$	140,406	$	152,768	$	165,086	$	157,542			$	160,597		$	128,100

(1) Includes goodwill of $269 million in 2022, $268 in 2021, $269 in 2020, $140 million in 2019, $67 million in 2018 and $67 million in 2017


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	Adj. Exp.	Earn.	Earn.	Earn. (1)	Basic	Dil.	Basic	Dil.

		2017	18,531	3,220	21,667	12,181	5,468	4,018	4,604	2,716	5.81	5.77	3.43	3.40
		2018	18,677	3,442	21,758	12,000	5,775	3,983	2,920	3,226	3.79	3.77	4.20	4.16
		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	17,647	3,818	22,106	10,576	6,208	5,322	4,325	4,019	6.42	6.39	5.97	5.94


	2020	1	4,681	904	5,162	2,939	1,503	720	566	882	.78	.78	1.22	1.21
		2	4,664	870	5,407	2,897	1,440	1,070	805	921	1.12	1.12	1.28	1.28
		3	4,623	896	5,665	2,985	1,527	1,153	2,456	994	3.45	3.44	1.40	1.39
		4	4,653	968	5,913	2,974	1,723	1,216	951	755	1.36	1.35	1.08	1.07

	2021	1	4,593	925	5,869	2,735	1,531	1,603	1,293	1,058	1.88	1.87	1.54	1.53
		2	4,441	993	5,564	2,653	1,538	1,373	1,105	1,080	1.63	1.62	1.59	1.59
		3	4,372	991	5,237	2,609	1,515	1,113	888	1,031	1.33	1.32	1.54	1.53
		4	4,242	910	5,433	2,581	1,619	1,233	1,039	850	1.58	1.57	1.29	1.28

	2022	1	4,178	903	5,272	2,487	1,509	1,276	1,032	927	1.59	1.58	1.43	1.42
		2	3,849	937	5,400	2,298	1,401	1,701	1,388	939	2.17	2.16	1.47	1.46
		3	3,651	920	4,820	2,340	1,377	1,103	1,596	725	2.54	2.53	1.15	1.15

(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

		2017	31.50	5.16	26.34	19.7%	24.10	23.3%
		2018	31.06	2.85	28.22	7.1%	25.77	6.9%
		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	50.99	11.34	39.65	11.5%	36.57	7.7%


	2020	1	36.75	5.83	30.92	7.0%	28.77	8.9%
		2	41.21	9.45	31.75	7.5%	29.70	7.7%
		3	46.16	11.25	34.91	15.7%	33.08	17.4%
		4	48.46	12.90	35.56	15.7%	33.96	19.1%

	2021	1	47.16	10.00	37.16	20.2%	34.70	20.6%
		2	50.20	11.93	38.27	20.5%	35.80	20.5%
		3	50.62	11.56	39.06	11.9%	36.41	10.1%
		4	50.99	11.34	39.65	11.5%	36.57	7.7%

	2022	1	45.75	4.82	40.93	10.1%	37.08	6.9%
		2	41.59	(0.86)	42.45	10.9%	37.27	4.1%
		3	38.71	(5.63)	44.34	13.5%	37.20	2.2%

(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

	Return on Equity


				Year Ended December 31,										3 Months Ended September 30,						9 Months Ended September 30,

				2017		2018		2019		2020		2021		2021			2022			2021			2022
	U.S. GAAP ROE (1) - Net earnings			20.4	%	12.2	%	12.6	%	15.3	%	12.9	%		10.6	%		25.3	%		13.1	%		18.7	%

		Impact of excluding unrealized foreign currency translation gains (losses)		(2.0)		(1.0)		(1.0)		(0.9)		(0.8)			(0.7)			(3.6)			(0.7)			(2.3)
		Impact of excluding unrealized gains (losses) on securities and derivatives		5.8		3.0		3.6		6.2		5.1			4.0			1.9			5.2			3.8
		Impact of excluding pension liability adjustment		(0.2)		(0.1)		(0.1)		(0.2)		(0.1)			(0.1)			(0.1)			(0.1)			(0.1)

			Impact of excluding AOCI	3.6		1.8		2.5		5.1		4.2			3.2			(1.9)			4.3			1.4

	U.S. GAAP ROE - less AOCI			24.0		13.9		15.1		20.3		17.1			13.8			23.4			17.3			20.0

	Differences between adjusted earnings and net earnings (2)			(9.8)		1.5		0.0		(5.2)		(1.2)			2.2			(12.8)			(0.6)			(7.1)

	Adjusted ROE - reported (3)			14.2		15.4		15.2		15.1		15.9			16.0			10.6			16.7			12.9






















		(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)	See non-U.S. GAAP financial measures for definition of adjusted return on equity


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

			2017	$	3.40	4.6	%	N/A	(.05)	$	3.45	6.2	%
			2018	$	4.16	22.4	%	N/A	.04	$	4.13	21.5	%
			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	$	5.94	19.8	%	N/A	(.06)	$	6.00	21.0	%


		2020	1	$	1.21	8.0	%	.01	.01	$	1.20	7.1	%
			2	1.28		13.3		.01	.02	1.27		12.4
			3	1.39		19.8		—	.02	1.39		19.8
			4	1.07		3.9		.02	.04	1.05		1.9
				$	4.96	11.7	%			$	4.92	10.8	%

		2021	1	$	1.53	26.4	%	.02	.02	$	1.51	24.8	%
			2	1.59		24.2		(.01)	.01	1.59		24.2
			3	1.53		10.1		(.02)	(.01)	1.56		12.2
			4	1.28		19.6		(.05)	(.06)	1.33		24.3
				$	5.94	19.8	%			$	6.00	21.0	%

		2022	1	$	1.42	(7.2)	%	(.06)	(.06)	$	1.48	(3.3)	%
			2	1.46		(8.2)		(.09)	—	1.55		(2.5)
			3	1.15		(24.8)		(.08)	(.23)	1.23		(19.6)

				$	4.03	(13.3)	%			$	4.26	(8.4)	%


		(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,																	September 30,
			2017			2018			2019			2020			2021			2021				2022

	Fixed Maturity Securities(1)		$	106,562		$	107,174		$	109,456		$	116,056		$	107,369				$	109,841			$	88,501

	Commercial mortgage and other loans, net of allowance for credit losses (1)
	Transitional Real Estate (floating rate)			1,235			4,378			5,450			5,231			5,246					5,147				6,447
	Middle Market Loans (floating rate)			859			1,478			2,412			3,635			4,601					4,391				4,995
	Commercial Mortgage Loans			908			1,063			1,707			1,688			1,874					1,838				2,017
		Total Commercial mortgage and other loans, net of allowance for credit losses(1)		3,002			6,919			9,569			10,554			11,721					11,376				13,459

	Equity Securities, at FV through net earnings			846			987			802			1,283			1,603					1,461				1,064

	Alternatives(2)			113			370			551			919			1,703					1,403				2,004

	Total Portfolio		$	110,523		$	115,450		$	120,378		$	128,812		$	122,396				$	124,081			$	105,028

	Unrealized Gains (Losses) on Invested Assets
	(In Millions)

			December 31,																	September 30,
			2017			2018			2019			2020			2021				2021				2022
	Fixed Maturity Securities
	Available For Sale - Gross Gains		$	9,985		$	7,733		$	12,266		$	14,771		$	13,566				$	13,729			$	6,162
	Available For Sale - Gross Losses			(804)			(1,694)			(375)			(481)			(239)					(235)				(3,554)
	Total Available For Sale			9,181			6,039			11,891			14,290			13,327					13,494				2,608

	Held to Maturity - Gross Gains			6,651			6,470			7,519			5,935			4,869					5,135				2,619
	Held to Maturity - Gross Losses			(9)			(66)			(10)			—			—					—				—
	Total Held to Maturity		$	6,642		$	6,404		$	7,509		$	5,935		$	4,869				$	5,135			$	2,619

		Credit Ratings on Fixed Maturities
		(At Amortized Cost)
			December 31,
																				September 30,
		Credit Rating	2017			2018			2019			2020			2021			2021				2022
		AAA		1.0	%		1.0	%		1.1	%		1.0	%		1.0	%				1.0	%			1.6	%
		AA		3.9			3.9			4.3			4.5			5.1					5.0				5.4
		A		65.8			67.9			68.6			69.3			68.9					69.4				67.6
		BBB		24.0			23.2			23.1			21.9			22.5					21.9				23.0
		BB or Lower		5.3			4.0			2.9			3.3			2.5					2.7				2.4
				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%				100.0	%			100.0	%

	(1) Presented at amortized cost, net of reserves beginning in 2020
	(2) Presented at carrying value; includes asset classes such as private equity and real estate managed by Global Investments; excludes Corporate driven activity


Aflac Incorporated and Subsidiaries
			Supplemental Investment Data by Segment

																				3 Months Ended						9 Months Ended

				December 31,															September 30,				September 30,
				2017			2018			2019			2020			2021				2021			2022			2021			2022

	Aflac Japan:
		Invested assets (in millions)(1)		¥	11,017,560		¥	11,442,444		¥	11,784,586		¥	11,936,087		¥	12,405,531			¥	12,399,257		¥	12,920,895		¥	12,399,257		¥	12,920,895
		Return on average invested assets(2)		2.31		%	2.33		%	2.33		%	2.38		%	2.72		%		2.72		%	2.87		%	2.68		%	2.79		%
		Portfolio book yield at end of period(3)		2.56		%	2.61		%	2.64		%	2.59		%	2.60		%		2.60		%	2.91		%	2.60		%	2.91		%
		Total purchases for period (in millions)(3)		¥	1,078,586		¥	1,298,376		¥	1,003,885		¥	714,124		¥	952,038			¥	165,621		¥	142,844		¥	689,728		¥	637,747
		New money yield(3)(4)		1.98		%	3.06		%	3.83		%	3.75		%	3.50		%		3.99		%	5.73		%	3.38		%	4.16		%

	Aflac U.S.:
		Invested assets (in millions)(1)		$	13,764		$	13,798		$	14,036		$	14,848		$	15,841			$	15,883		$	16,472		$	15,883		$	16,472
		Return on average invested assets(2)		5.07		%	5.16		%	5.70		%	4.90		%	4.87		%		4.88		%	4.57		%	4.84		%	4.74		%
		Portfolio book yield at end of period(3)		5.52		%	5.55		%	5.40		%	5.18		%	4.94		%		5.04		%	5.21		%	5.04		%	5.21		%
		Total purchases for period (in millions)(3)		$	1,434		$	2,155		$	1,835		$	1,050		$	2,130			$	430		$	427		$	1,348		$	1,394
		New money yield(3)(4)		4.49		%	4.55		%	4.51		%	3.04		%	3.41		%		3.87		%	6.24		%	3.59		%	4.90		%

	Hedge Costs/Income Metrics (5)(6)

																				3 Months Ended						9 Months Ended
				December 31,															September 30,				September 30,
				2017			2018			2019			2020			2021				2021			2022			2021			2022
	Aflac Japan:
			FX hedged notional at end of period (in billions)(7)	$	9.3		$	9.9		$	8.8		$	6.0		$	6.4			$	6.4		$	4.1		$	6.4		$	4.1
			Weighted average remaining tenor (in months)(8)	27.7			21.4			8.5			13.0			2.6				3.7			3.7			3.7			3.7
			Amortized hedge costs for period (in millions)	$	(228)		$	(236)		$	(257)		$	(206)		$	(76)			$	(20)		$	(28)		$	(55)		$	(84)
	Corporate and Other (Parent Company):
			FX hedged notional at end of period (in billions)(7)	$	—		$	2.5		$	4.9		$	5.0		$	5.0			$	5.0		$	5.0		$	5.0		$	5.0
			Weighted average remaining tenor (in months)(8)	—			16.1			13.7			12.1			11.5				12.2			11.9			12.2			11.9
			Amortized hedge income (costs) for period (in millions)	$	—		$	36		$	89		$	97		$	57			$	13		$	19		$	45		$	44

	(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
	(4) Reported on a gross yield basis; excludes investment expenses, external management fees, and amortized hedge costs
	(5) See non-U.S. GAAP financial measures for definition of amortized hedge costs/income. Further, the metrics in this table are split to show the hedging of the market value of a portion of the USD investments in Japan Segment’s "USD Program" in the "Japan Segment Portfolio Allocation by Currency" table on page 13 of this supplement as well as the corporate hedging activities at Aflac Inc.
	(6) Aflac Japan and the Parent Company utilize foreign currency forwards and options to hedge foreign currency exchange rate risk. The hedge cost/income on the table above reflects our FX forward protection of the hedged USD portfolio, and hedge costs on one sided options used as caps, and on tail-risk put options. The table does not include the notional amount and weighted average remaining tenor for these options. At September 30, 2022, Aflac Japan caps and put options notional amount was $13.5 billion with a weighted average remaining tenor of 3.2 months. At September 30, 2022, the Parent Company caps notional amount was $1.7 billion with a weighted average remaining tenor of 6.1 months.
	(7) Notional is reported net of any offsetting positions within Aflac Japan or the Parent Company, respectively.
	(8) Tenor based on period reporting date to settlement date


Aflac Incorporated and Subsidiaries


		Japan Segment Portfolio Allocation by Currency (1)
		(Dollars In Millions, U.S. GAAP Basis)

			December 31, 2021				September 30, 2022
			Amortized Cost (2)		Fair Value		Amortized Cost (2)		Fair Value
	JGB		$	50,186	$	57,862	$	39,106	$	41,927
	Other		23,661		27,684		19,156		20,126
	Total yen denominated		73,847		85,546		58,262		62,053

	USD Program		28,913		31,946		26,594		28,342
	Other		2,236		3,328		2,015		2,689
	US dollar denominated		31,149		35,274		28,609		31,031

	Total		$	104,996	$	120,820	$	86,871	$	93,084


		Distribution of Consolidated Fixed Maturities by Sector
							September 30, 2022
	(In millions)						Amortized Cost (2)		% of Total
	Government and agencies						$	40,260	45.4		%
	Municipalities						2,463		2.8
	Mortgage- and asset-backed securities						1,963		2.2
	Public utilities						7,037		8.0
	Electric						5,718		6.5
	Natural Gas						229		.3
	Other						532		.6
	Utility/Energy						558		.6
	Sovereign and Supranational						1,206		1.3
	Banks/financial institutions						8,815		10.0
	Banking						5,196		5.9
	Insurance						1,702		1.9
	Other						1,917		2.2
	Other corporate						26,757		30.3
	Basic Industry						2,358		2.7
	Capital Goods						3,147		3.6
	Communications						2,711		3.1
	Consumer Cyclical						2,174		2.5
	Consumer Non-Cyclical						5,988		6.7
	Energy						2,550		2.9
	Other						1,263		1.4
	Technology						3,573		4.0
	Transportation						2,993		3.4
	Total fixed maturity securities						$	88,501	100.0		%

	(1) The entire U.S. segment investment portfolio is U.S. dollar denominated.
	(2) Net of reserves


Aflac Incorporated and Subsidiaries

Long-Term Debt Data

Adjusted Leverage Ratios
(In Millions)

		December 31,															September 30,
			2017			2018			2019			2020			2021				2021		2022

	Notes payable	$	5,289		$	5,778		$	6,569		$	7,899		$	7,956			$	8,066	$	7,518
	50% of subordinated debentures and perpetual bonds		(263)			(268)			(408)			(432)			(389)				(400)		(309)
	Pre-funding of debt maturities		—			—			(348)			—			—				—		(448)
	Adjusted debt (1)		5,026			5,510			5,814			7,467			7,568				7,667		6,762

	Total Shareholders' Equity		24,598			23,462			28,959			33,559			33,253				33,552		24,152
	Accumulated other comprehensive (income) loss:
	Unrealized foreign currency translation (gains) losses		1,750			1,847			1,623			1,109			2,013				1,760		4,455
	Unrealized (gains) losses on fixed maturity securities		(5,964)			(4,234)			(8,548)			(10,361)			(9,602)				(9,731)		(1,131)
	Unrealized (gains) losses on derivatives		23			24			33			34			30				31		29
	Pension liability adjustment		163			212			277			284			166				278		158
	Adjusted book value (1)		20,570			21,311			22,344			24,625			25,860				25,890		27,663

	Adjusted capitalization ex-AOCI (1) (2)	$	25,859		$	27,089		$	28,565		$	32,524		$	33,816			$	33,956	$	34,733
	Adjusted debt to adjusted capitalization ex-AOCI		19.4	%		20.3	%		20.4	%		23.0	%		22.4	%		22.6	%	19.5	%

	Adjusted capitalization (1) (3)	$	23,946		$	25,030		$	26,665		$	31,131		$	31,637			$	31,918	$	30,120
	Adjusted debt to adjusted capitalization		21.0	%		22.0	%		21.8	%		24.0	%		23.9	%		24.0	%	22.4	%


Debt Maturities(4)
(In Millions)
September 30, 2022

		≤ 1 year		1 > 5 years		5 > 10 years		10 > 20 years		20 years +		Total

	Senior Notes	$	—	$	1,732	$	2,837	$	1,092	$	1,168	$	6,829
	Subordinated debt		—		—		—		—		621		621


	Total	$	—	$	1,732	$	2,837	$	1,092	$	1,789	$	7,450

(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+

Aflac of New York

A+

Continental American Insurance Company

A+

Japan Operating Company

Aflac Life Insurance Japan Ltd.

A+

Aa3

A+

Issuer Credit Ratings

AM Best

Moody's

S&P

JCR

R&I

Aflac Incorporated

Long-term Senior Debt

A-

A+

Junior Subordinated Debt

Baa1

BBB

A-

Aflac of Columbus

Long-term Senior Debt

A+

Aflac Life Insurance Japan, Ltd.

Long-term Senior Debt

A+

Subordinated Bonds

AA-

The outlook for all ratings assigned by A.M. Best, S&P, Moody's, JCR and R&I is stable.


Aflac U.S.

	Statements of Pretax Adjusted Earnings
	(Before Management Fee)
	(In Millions)



			Years Ended December 31,										3 Months Ended September 30,					9 Months Ended September 30,
																	%					%
			2017		2018		2019		2020			2021		2021		2022	Change		2021		2022	Change

	Revenues:
		Net earned premiums
		Gross premiums	$	5,563	$	5,711	$	5,818	$	5,762	$	5,540	$	1,377	$	1,353		$	4,169	$	4,101
		Assumed (ceded)		—		(3)		(11)		(4)		73		16		22			54		81
		Total net earned premiums		5,563		5,708		5,808		5,758		5,614		1,393		1,375	(1.3)		4,223		4,182	(1.0)
		Adjusted net investment income		721		727		720		705		754		191		185	(3.1)		557		563	1.1
		Other income excl. realized foreign
		exchange gains (losses)		5		8		22		102		121		32		38			90		120

		Total adjusted revenues		6,289		6,443		6,550		6,565		6,489		1,616		1,598	(1.1)		4,870		4,865	(.1)

	Benefits and claims:
		Benefits and claims, net
		Incurred claims -direct		2,526		2,560		2,611		2,498		2,174		559		564			1,576		1,721
		Incurred claims -assumed (ceded)		(4)		(4)		(5)		(1)		89		15		17			56		84
		Increase in FPB -direct		363		331		268		271		187		55		40			167		72
		Increase in FPB -assumed (ceded)		—		(1)		(2)		(3)		(3)		(1)		—			(2)		(1)
		Total net benefits and claims		2,885		2,887		2,871		2,765		2,447		628		621	(1.1)		1,798		1,876	4.3

	Adjusted expenses:
		Amortization of deferred policy
		acquisition costs		502		534		573		570		517		123		144	17.1		373		443	18.8
		Insurance commissions		580		585		590		576		550		136		135	(.7)		411		411	—
		Insurance and other expenses		1,077		1,152		1,244		1,386		1,498		370		390	5.4		1,071		1,152	7.6
		Total adjusted expenses		2,159		2,271		2,407		2,532		2,564		629		668			1,855		2,006

		Total benefits and adjusted expenses		5,044		5,158		5,279		5,297		5,011		1,257		1,289	2.5		3,653		3,882	6.3

		Pretax adjusted earnings	$	1,245	$	1,285	$	1,272	$	1,268	$	1,478	$	358	$	309	(13.7)	$	1,217	$	984	(19.1)


Aflac U.S.

	Balance Sheets
	(In Millions)



			December 31,										September 30,

			2017		2018		2019		2020		2021			2021			2022
	Assets:

	Investments and cash		$	15,488	$	14,518	$	16,141	$	17,949	$	18,324			$	18,481		$	15,459
	Receivables, net of allowance for credit losses			505		568		662		685		595				654			608
	Accrued investment income			184		178		174		172		169				166			174
	Deferred policy acquisition costs			3,355		3,491		3,544		3,450		3,292				3,296			3,224
	Other assets			361		345		424		608		726				707			748

		Total assets	$	19,893	$	19,100	$	20,945	$	22,864	$	23,106			$	23,304		$	20,212


	Liabilities and Shareholders' Equity:

	Future policy benefits		$	8,806	$	9,137	$	9,404	$	9,674	$	9,865			$	9,846		$	9,938
	Policy and contract claims			1,700		1,727		1,779		2,010		1,933				1,904			2,011
	Other policy liabilities			119		116		111		126		119				132			113

	Deferred income taxes			982		(397)		51		235		187				206			(622)
	Other liabilities			1,625		1,577		1,803		2,016		2,034				2,093			2,110
	Shareholders' equity			6,661		6,939		7,796		8,803		8,968				9,123			6,663

		Total liabilities & shareholders' equity	$	19,893	$	19,100	$	20,945	$	22,864	$	23,106			$	23,304		$	20,212


Aflac U.S.

Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Restated to conform to current classifications)
(Dollars In Millions)
		Net				Total							Total				Pretax
		Earned	%	Adjusted	%	Adjusted	%	Total	%		%	Adjusted			%	Adjusted		%
	Period	Premiums	Change	NII	Change	Revenues	Change	Benefits	Change	Amort.	Change	Expenses			Change	Earn.		Change

	2017	5,563	2.0	721	2.6	6,289	2.0	2,885	.6	502	1.0			2,159		3.3		1,245	3.1
	2018	5,708	2.6	727	.8	6,443	2.4	2,887	.1	534	6.4			2,271		5.2		1,285	3.2
	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)	2,447	(11.5)	517	(9.3)			2,564		1.3		1,478	16.6


2020	1	1,483	1.5	177	—	1,687	2.9	713	(1.1)	160	.6			648		8.7		326	.9
	2	1,458	(.1)	172	(4.4)	1,656	.9	646	(11.7)	134	2.3			584		2.3		426	26.0
	3	1,407	(2.6)	175	(4.4)	1,606	(1.5)	679	(4.4)	141	1.4			597		2.1		329	(1.8)
	4	1,410	(2.3)	182	1.1	1,617	(1.3)	727	2.5	135	(6.3)			703		7.5		187	(32.0)

2021	1	1,422	(4.1)	176	(.6)	1,628	(3.5)	556	(22.0)	139	(13.1)			626		(3.4)		445	36.5
	2	1,408	(3.4)	189	9.9	1,627	(1.8)	613	(5.1)	111	(17.2)			601		2.9		413	(3.1)
	3	1,393	(1.0)	191	9.1	1,616	.6	628	(7.5)	123	(12.8)			629		5.4		358	8.8
	4	1,391	(1.3)	197	8.2	1,619	.1	649	(10.7)	143	5.9			709		.9		261	39.6

2022	1	1,413	(.6)	184	4.5	1,639	.7	622	11.9	168	20.9			692		10.5		325	(27.0)
	2	1,394	(1.0)	193	2.1	1,628	.1	633	3.3	131	18.0			645		7.3		349	(15.5)
	3	1,375	(1.3)	185	(3.1)	1,598	(1.1)	621	(1.1)	144	17.1			668		6.2		309	(13.7)

Aflac U.S.


Operating Ratios
(Before Management Fee)




		12-Mo. Rolling			Total Adjusted	Combined	Pretax
		Premium	Tot. Ben./	Amort./	Expenses/	Ratio/	Profit
	Period	Persistency	Premium	Premium	Total Adj. Rev.	Total Adj. Rev.	Margin

	2017	78.4		51.9	9.0	34.3	80.2	19.8
	2018	78.7		50.6	9.4	35.2	80.1	19.9
	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	79.6		43.6	9.2	39.5	77.2	22.8
	2022 YTD	77.6		44.9	10.6	41.2	79.8	20.2

2020	1	77.6		48.1	10.8	38.4	80.7	19.3
	2	78.3		44.3	9.2	35.3	74.3	25.7
	3	78.8		48.3	10.0	37.2	79.5	20.5
	4	79.3		51.6	9.6	43.5	88.4	11.6

2021	1	80.0		39.1	9.8	38.5	72.6	27.3
	2	80.1		43.5	7.9	36.9	74.6	25.4
	3	79.9		45.1	8.8	38.9	77.8	22.2
	4	79.6		46.7	10.3	43.8	83.9	16.1

2022	1	78.5		44.0	11.9	42.2	80.2	19.8
	2	77.9		45.4	9.4	39.6	78.5	21.4
	3	77.6		45.2	10.5	41.8	80.7	19.3

Aflac U.S.


Aflac U.S. Sales Results
(Dollars In Millions)

		Annl.			New Annl.
		Prem.		%	Prem.		%
	Period	In Force		Change	Sales		Change

	2017		6,052	2.6		1,552	4.7
	2018		6,231	3.0		1,601	3.2
	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


2020	1		6,224	.7		323	(5.2)
	2		6,079	(1.7)		161	(55.6)
	3		5,969	(2.9)		221	(35.7)
	4		6,099	(3.2)		388	(27.2)

2021	1		6,027	(3.2)		251	(22.1)
	2		5,988	(1.5)		264	64.1
	3		5,929	(.7)		299	35.0
	4		6,003	(1.6)		464	19.6

2022	1		5,942	(1.4)		299	19.0
	2		5,926	(1.0)		305	15.6
	3		5,889	(.7)		334	11.8

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
		2017	356	22.9	78	5.0	456	29.4	354	22.8	229	14.8	79	5.1	1,552
		2018	363	22.7	88	5.5	468	29.2	354	22.1	253	15.8	75	4.7	1,601
		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


	2020	1	73	22.6	25	7.7	88	27.3	68	21.1	55	16.9	14	4.4	323
		2	38	23.9	14	8.6	41	25.7	33	20.6	28	17.1	7	4.1	161
		3	54	24.2	16	7.1	58	26.4	45	20.5	37	16.8	11	5.0	221
		4	79	20.4	26	6.6	98	25.2	95	24.5	77	20.0	13	3.3	388

	2021	1	58	23.1	17	6.7	66	26.3	57	22.6	42	16.7	11	4.6	251
		2	60	22.7	19	7.3	72	27.2	56	21.0	43	16.4	14	5.4	264
		3	79	26.2	27	9.2	76	25.5	57	19.1	45	15.1	15	4.9	299
		4	100	21.4	51	11.0	107	23.1	104	22.3	79	17.0	24	5.2	464

	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


Aflac U.S. Sales Force Data

					Average	Productivity
					Weekly	(Production/
		Recruited Agents			Producer	Avg. Weekly
	Period	Career	Broker	Total	Equivalents	Producers)
	2017	16,817	3,073	19,890	8,808	176,183
	2018	15,774	3,380	19,154	8,531	187,720
	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


2020	1	3,436	494	3,930	7,411	43,517
	2	2,190	381	2,571	4,252	37,814
	3	3,136	486	3,622	5,485	40,367
	4	3,064	500	3,564	6,523	59,533

2021	1	2,890	1,063	3,953	5,643	44,530
	2	2,754	1,355	4,109	5,925	44,540
	3	2,502	1,615	4,117	5,926	50,448
	4	2,495	1,412	3,907	6,477	71,723

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

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

Aflac Japan


Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)

		Years Ended December 31,										3 Months Ended September 30,					9 Months Ended September 30,
																%					%
		2017		2018		2019		2020		2021		2021		2022		Change	2021		2022		Change
Revenues:
	Net earned premiums
	Gross premiums	¥	1,493,299	¥	1,468,894	¥	1,450,586	¥	1,409,134	¥	1,350,945	¥	335,737	¥	321,911		¥	1,019,046	¥	976,080
	Assumed (ceded)		(62,873)		(60,198)		(57,974)		(55,926)		(50,864)		(12,666)		(12,034)			(38,309)		(36,588)
	Total net earned premiums		1,430,426		1,408,697		1,392,612		1,353,208		1,300,082		323,072		309,877	(4.1)		980,738		939,492	(4.2)
	Net investment income (1)
	Yen denominated		145,114		141,575		142,473		138,397		138,513		34,951		46,205	32.2		104,192		115,178	10.5
	US$ denominated		131,168		149,801		157,717		167,541		202,905		51,230		49,323	(3.7)		147,238		159,785	8.5
	Net investment income		276,282		291,377		300,191		305,938		341,419		86,181		95,528	10.8		251,431		274,964	9.4
	Amortized hedge costs on foreign investments (2)		(24,528)		(25,858)		(28,938)		(22,816)		(8,391)		(2,146)		(3,288)	53.2		(6,094)		(9,677)	58.8
	Adjusted net investment income		251,754		265,519		271,253		283,122		333,028		84,035		92,241	9.8		245,337		265,287	8.1
	Other income excl. realized foreign
	currency gains (losses)		4,640		4,636		4,869		4,497		4,512		1,078		1,205			3,441		3,420

	Total adjusted revenues		1,686,820		1,678,852		1,668,734		1,640,827		1,637,621		408,185		403,323	(1.2)		1,229,516		1,208,199	(1.7)

Benefits and claims:
	Benefits and claims, net
	Incurred claims -direct		710,251		724,556		727,491		734,471		743,610		179,383		214,466			561,121		603,746
	Incurred claims -assumed (ceded)		(55,691)		(51,892)		(45,657)		(37,806)		(31,801)		(7,916)		(12,157)			(23,689)		(28,965)
	Increase in FPB -direct		366,376		313,343		292,444		260,200		172,525		44,702		32,525			129,235		88,372
	Increase in FPB -assumed (ceded)		(1,557)		(2,000)		(6,497)		(11,377)		(11,132)		(2,739)		(2,457)			(8,481)		(7,478)
	Total net benefits and claims		1,019,378		984,007		967,782		945,487		873,202		213,430		232,378	8.9		658,186		655,675	(.4)

Adjusted expenses:
	Amortization of deferred policy
	acquisition costs		70,670		78,459		77,286		68,818		71,657		17,011		17,192	1.1		53,777		52,821	(1.8)
	Insurance commissions		82,495		81,045		79,661		79,036		77,449		19,300		18,326	(5.0)		58,653		55,327	(5.7)
	Insurance and other expenses		170,636		181,139		189,203		199,606		203,169		50,924		48,503	(4.8)		147,624		145,583	(1.4)
	Total adjusted expenses		323,801		340,643		346,150		347,460		352,275		87,234		84,021			260,054		253,732


	Total benefits and adjusted expenses		1,343,180		1,324,651		1,313,932		1,292,947		1,225,477		300,665		316,399	5.2		918,240		909,407	(1.0)

	Pretax adjusted earnings	¥	343,640	¥	354,201	¥	354,802	¥	347,881	¥	412,144	¥	107,521	¥	86,924	(19.2)	¥	311,276	¥	298,791	(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 the definition of amortized hedge costs/income

Aflac Japan


Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)

		Years Ended December 31,										3 Months Ended September 30,					9 Months Ended September 30,
																%					%
		2017		2018		2019		2020		2021		2021		2022		Change	2021		2022		Change
Revenues:
	Net earned premiums
	Gross premiums	$	13,312	$	13,307	$	13,304	$	13,193	$	12,317	$	3,049	$	2,328		$	9,398	$	7,671
	Assumed (ceded)		(561)		(546)		(532)		(524)		(463)		(115)		(87)			(353)		(287)
	Total net earned premiums		12,752		12,762		12,772		12,670		11,853		2,934		2,241	(23.6)		9,045		7,384	(18.4)
	Net investment income (1)
	Yen denominated		1,294		1,283		1,307		1,296		1,262		317		335	5.7		960		898	(6.5)
	US$ denominated		1,169		1,356		1,446		1,569		1,845		465		357	(23.2)		1,355		1,251	(7.7)
	Net investment income		2,463		2,639		2,753		2,865		3,107		783		692	(11.6)		2,315		2,149	(7.2)
	Amortized hedge costs on foreign investments (2)		(228)		(236)		(257)		(206)		(76)		(20)		(28)	40.0		(55)		(84)	52.7
	Adjusted net investment income		2,235		2,403		2,496		2,659		3,031		763		663	(13.1)		2,260		2,066	(8.6)
	Other income excl. realized foreign
	currency gains (losses)		41		41		45		42		41		10		9			32		26

	Total adjusted revenues		15,028		15,206		15,313		15,371		14,925		3,707		2,913	(21.4)		11,337		9,476	(16.4)

Benefits and claims
	Benefits and claims, net
	Incurred claims -direct		6,332		6,566		6,671		6,875		6,783		1,629		1,546			5,178		4,731
	Incurred claims -assumed (ceded)		(497)		(471)		(419)		(354)		(290)		(72)		(87)			(218)		(224)
	Increase in FPB -direct		3,265		2,836		2,684		2,437		1,572		406		236			1,191		686
	Increase in FPB -assumed (ceded)		(14)		(18)		(60)		(107)		(102)		(25)		(18)			(78)		(59)
	Total net benefits and claims		9,087		8,913		8,877		8,851		7,963		1,938		1,676	(13.5)		6,072		5,133	(15.5)

Adjusted expenses:
	Amortization of deferred policy
	acquisition costs		630		710		709		644		653		154		124	(19.5)		496		415	(16.3)
	Insurance commissions		736		735		731		740		706		175		132	(24.6)		541		435	(19.6)
	Insurance and other expenses		1,521		1,640		1,734		1,873		1,849		462		350	(24.2)		1,360		1,142	(16.0)
	Total adjusted expenses		2,887		3,085		3,174		3,257		3,208		792		607			2,397		1,991

	Total benefits and adjusted expenses		11,974		11,998		12,051		12,108		11,171		2,731		2,283	(16.4)		8,469		7,125	(15.9)

	Pretax adjusted earnings	$	3,054	$	3,208	$	3,261	$	3,263	$	3,754	$	976	$	630	(35.5)	$	2,867	$	2,351	(18.0)

	(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

Aflac Japan


Balance Sheets
(In Millions)


	December 31,										September 30,
	2017		2018		2019		2020		2021			2021			2022

Assets:

Investments and cash	¥	11,854,224	¥	12,031,549	¥	12,847,994	¥	13,080,154	¥	13,645,902			¥	13,614,574		¥	13,468,243
Receivables, net of allowance for credit losses		37,692		37,083		28,219		20,782		22,439				24,643			22,386
Accrued investment income		64,439		66,350		65,485		62,722		67,493				59,094			74,789
Deferred policy acquisition costs		695,025		708,638		721,341		723,579		716,984				718,263			714,008
Other assets		276,050		292,335		308,411		320,351		331,449				317,780			391,442

Total assets	¥	12,927,431	¥	13,135,956	¥	13,971,450	¥	14,207,588	¥	14,784,268			¥	14,734,354		¥	14,670,869


Liabilities and Shareholders' Equity:

Future policy benefits	¥	8,323,560	¥	8,637,152	¥	8,924,868	¥	9,175,501	¥	9,336,894			¥	9,296,352		¥	9,417,217
Policy and contract claims		304,248		317,043		315,477		328,778		333,900				336,273			362,669
Unearned premiums		659,977		552,419		453,133		361,010		284,045				301,690			240,184
Other policyholders' funds		784,117		793,148		801,588		808,429		812,512				814,405			814,887
Income taxes (prim. deferred)		431,949		510,528		618,901		478,969		467,877				484,807			323,200
Other liabilities		150,143		194,949		357,135		253,219		513,580				538,673			777,585
Shareholders' equity		2,273,438		2,130,718		2,500,349		2,801,682		3,035,460				2,962,154			2,735,128

Total liabilities & shareholders' equity	¥	12,927,431	¥	13,135,956	¥	13,971,450	¥	14,207,588	¥	14,784,268			¥	14,734,354		¥	14,670,869

Aflac Japan


Balance Sheets
(In Millions)


	December 31,										September 30,
	2017		2018		2019		2020		2021			2021			2022

Assets:

Investments and cash	$	104,905	$	108,392	$	117,269	$	126,378	$	118,639			$	121,646		$	93,006
Receivables, net of allowance for credit losses		334		334		258		201		195				220			155
Accrued investment income		570		598		598		606		587				528			516
Deferred policy acquisition costs		6,150		6,384		6,584		6,991		6,233				6,418			4,931
Other assets		2,443		2,634		2,815		3,095		2,882				2,839			2,703

Total assets	$	114,402	$	118,342	$	127,523	$	137,271	$	128,536			$	131,651		$	101,311


Liabilities and Shareholders' Equity:

Future policy benefits	$	73,661	$	77,812	$	81,461	$	88,652	$	81,176			$	83,062		$	65,032
Policy and contract claims		2,692		2,856		2,879		3,177		2,903				3,005			2,504
Unearned premiums		5,840		4,977		4,136		3,488		2,469				2,696			1,659
Other policyholders' funds		6,939		7,145		7,316		7,811		7,064				7,277			5,627
Income taxes (prim. deferred)		3,823		4,601		5,650		4,630		4,067				4,335			2,163
Other liabilities		1,328		1,756		3,260		2,447		4,465				4,813			5,370
Shareholders' equity		20,119		19,194		22,820		27,068		26,391				26,463			18,957

Total liabilities & shareholders' equity	$	114,402	$	118,342	$	127,523	$	137,271	$	128,536			$	131,651		$	101,311

Aflac Japan


Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Yen In Millions)


		Net						Total									Total				Pretax
		Earned		%	Adjusted		%	Adjusted		%	Total		%			%	Adjusted		%		Adjusted		%
	Period	Premiums		Change	NII		Change	Revenues		Change	Benefits		Change	Amort.		Change	Expense		Change		Earn.		Change

	2017		1,430,426	(2.7)		251,754	(2.0)		1,686,820	(2.5)		1,019,378	(4.5)		70,670	1.2		323,801		.5		343,640		.6
	2018		1,408,697	(1.5)		265,519	5.5		1,678,852	(.5)		984,007	(3.5)		78,460	11.0		340,642		5.2		354,201		3.1
	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		1,300,082	(3.9)		333,028	17.6		1,637,621	(.2)		873,202	(7.6)		71,657	4.1		352,275		1.4		412,144		18.5


2020	1		343,054	(2.1)		69,812	4.0		414,045	(1.1)		238,148	(1.7)		18,842	(5.9)		82,939		(2.0)		92,958		1.2
	2		339,891	(2.5)		68,036	2.0		409,126	(1.8)		237,328	(1.2)		16,697	(14.3)		81,648		(4.1)		90,150		(1.2)
	3		336,488	(3.3)		70,219	(.2)		407,874	(2.8)		240,025	(1.4)		16,001	(16.5)		88,661		2.5		79,188		(11.6)
	4		333,775	(3.5)		75,054	11.9		409,782	(1.0)		229,986	(4.9)		17,277	(7.2)		94,211		4.9		85,585		4.2

2021	1		330,595	(3.6)		74,621	6.9		406,505	(1.8)		225,965	(5.1)		18,225	(3.3)		86,732		4.6		93,808		.9
	2		327,071	(3.8)		86,681	27.4		414,825	1.4		218,791	(7.8)		18,541	11.0		86,088		5.4		109,947		22.0
	3		323,072	(4.0)		84,035	19.7		408,185	.1		213,430	(11.1)		17,011	6.3		87,234		(1.6)		107,521		35.8
	4		319,344	(4.3)		87,690	16.8		408,105	(.4)		215,016	(6.5)		17,880	3.5		92,221		(2.1)		100,868		17.9

2022	1		316,429	(4.3)		79,042	5.9		396,545	(2.5)		212,182	(6.1)		17,882	(1.9)		84,208		(2.9)		100,154		6.8
	2		313,186	(4.2)		94,004	8.4		408,331	(1.6)		211,115	(3.5)		17,747	(4.3)		85,502		(.7)		111,714		1.6
	3		309,877	(4.1)		92,241	9.8		403,323	(1.2)		232,378	8.9		17,192	1.1		84,021		(3.7)		86,924		(19.2)

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

	2017	94.9	71.3	60.5	4.9	19.2	79.6	20.4
	2018	94.1	69.9	59.2	5.6	20.3	78.9	21.1
	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	67.2	56.6	5.5	21.5	74.8	25.2
	2022 YTD	94.3	69.8	60.3	5.6	21.0	75.3	24.7

2020	1	94.5	69.4	59.0	5.5	20.0	77.5	22.5
	2	94.8	69.8	59.6	4.9	20.0	78.0	22.0
	3	95.0	71.3	61.7	4.8	21.7	80.6	19.4
	4	95.1	68.9	58.6	5.2	23.0	79.1	20.9

2021	1	95.0	68.4	58.0	5.5	21.3	76.9	23.1
	2	94.7	66.9	56.5	5.7	20.8	73.5	26.5
	3	94.5	66.1	55.0	5.3	21.4	73.7	26.3
	4	94.3	67.3	57.0	5.6	22.6	75.3	24.7

2022	1	94.3	67.1	56.4	5.7	21.2	74.7	25.3
	2	94.3	67.4	57.5	5.7	20.9	72.6	27.4
	3	94.3	75.0	67.2	5.5	20.8	78.4	21.6

(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

	2017		1,552.2	(3.4)		87,417	4.1		94,851	(16.6)
	2018		1,527.1	(1.6)		88,813	1.6		95,894	1.1
	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		1,360.0	(4.7)		48,977	8.6		54,764	7.7



2020	1		1,474.3	(2.8)		12,486	(26.7)		14,021	(25.4)
	2		1,457.7	(3.4)		8,656	(60.9)		9,827	(58.8)
	3		1,441.9	(.5)		11,167	(33.7)		12,601	(32.0)
	4		1,426.5	(4.2)		12,801	(23.8)		14,404	(22.2)

2021	1		1,410.0	(4.4)		12,492	—		13,998	(.2)
	2		1,391.7	(4.5)		12,125	40.1		13,602	38.4
	3		1,375.0	(4.6)		11,275	1.0		12,605	—
	4		1,360.0	(4.7)		13,084	2.2		14,559	1.1

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

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
	2017	53.0	55.8	32.4	34.1	2.2	2.3	.5	.5	.6	.6	5.6	6.0	.6	.7	94.9
	2018	63.1	65.8	23.9	25.0	1.7	1.8	.3	.3	.5	.5	5.9	6.1	.5	.5	95.9
	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


2020	1	7.8	55.5	4.5	32.4	.2	1.2	—	.3	.1	.6	1.3	9.3	.1	.7	14.0
	2	5.4	54.7	3.2	32.5	.1	.9	—	.4	.1	.8	1.0	10.0	—	.7	9.8
	3	7.0	55.7	4.0	32.0	.1	.9	.1	.4	.1	.8	1.2	9.6	.1	.6	12.6
	4	8.6	59.7	4.1	28.4	.1	.8	.1	.3	.1	.8	1.3	9.3	.1	.7	14.4

2021	1	6.4	45.4	6.1	43.3	.1	.6	—	.3	.1	.7	1.2	8.9	.1	.8	14.0
	2	6.7	48.9	5.4	39.7	.1	.6	—	.4	.1	.8	1.2	8.9	.1	.7	13.6
	3	6.3	49.9	4.6	36.3	.1	.5	—	.3	.1	.7	1.1	9.0	.4	3.3	12.6
	4	7.7	52.7	4.4	29.9	.1	.4	—	.3	.1	.8	1.2	8.6	1.1	7.3	14.6

2022	1	6.4	53.0	3.8	31.4	.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

Aflac Japan


Aflac Japan Sales Force Data

			Number of Agencies by Type				Sales Contribution by Agency Type

		Period	Individual/ Independent Corporate	Affiliated Corporate	Bank	Total	Individual/ Independent Corporate	Affiliated Corporate	Bank	Licensed Sales Associates(1)	Recruited Agencies
		2017	9,492	1,455	374	11,321	42.8	52.0	5.2	109,197	174
		2018	8,453	1,392	371	10,216	40.1	55.3	4.6	109,482	85
		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


	2020	1	7,537	1,332	364	9,233	52.8	42.7	4.5	110,129	17
		2	7,426	1,329	364	9,119	53.8	42.8	3.4	109,850	5
		3	7,312	1,317	364	8,993	51.7	41.4	6.9	111,016	19
		4	7,231	1,312	361	8,904	51.3	43.4	5.3	111,886	7

	2021	1	7,142	1,308	360	8,810	54.3	40.6	5.1	112,252	13
		2	7,055	1,305	359	8,719	51.1	44.0	4.9	113,259	22
		3	6,898	1,299	360	8,557	49.9	43.8	6.3	112,100	13
		4	6,779	1,283	360	8,422	49.2	46.3	4.5	111,854	14

	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

(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

	2017	113.00	N/A	112.16	(3.1)
	2018	111.00	N/A	110.39	1.6
	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)


2020	1	108.83	108.84	108.84	1.3
	2	107.74	107.65	108.25	1.7
	3	105.80	106.23	107.63	1.4
	4	103.50	104.57	106.86	2.1

2021	1	110.71	105.88	105.88	2.8
	2	110.58	109.48	107.79	.4
	3	111.92	110.11	108.58	(.9)
	4	115.02	113.70	109.79	(2.7)

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)







	(1) Closing rate is based on the latest available and published MUFG Bank Ltd. TTM mid-day exchange rate.

Corporate and Other


Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)

		Years Ended December 31,															3 Months Ended September 30,							9 Months Ended September 30,
																							%							%
		2017			2018			2019			2020			2021			2021			2022			Change	2021			2022			Change
Revenues:
	Total net earned premiums		$	216		$	208		$	200		$	194		$	180		$	45		$	35	(22.2)		$	138		$	112	(18.8)
	Net investment income (1)		35			77			88			80			(73)			11			16		45.5		14			11		(21.4)
	Amortized hedge income (2)		—			36			89			97			57			13			19		46.2		45			44		(2.2)
	Adjusted net investment income		35			113			177			177			(16)			24			35		45.8		59			55		(6.8)
	Other income		21			18			15			13			11			3			3		—		8			22		175.0

	Total adjusted revenues		272			339			393			384			175			72			73		1.4		205			189		(7.8)

Benefits and expenses:
	Total net benefits and claims		209			199			194			180			166			42			43		2.4		126			116		(7.9)
	Interest expense		122			120			133			164			165			39			44		12.8		126			123		(2.4)
	Other adjusted expenses		154			159			137			155			142			32			45		40.6		97			129		33.0

	Total benefits and adjusted expenses		486			478			464			499			473			113			132		16.8		349			368		5.4

	Pretax adjusted earnings		$	(214)		$	(139)		$	(72)		$	(115)		$	(298)		$	(41)		$	(59)	(43.9)		$	(144)		$	(179)	(24.3)


	(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $19 and $5 for the three-month periods and $61 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively is included as a reduction to net investment income. Tax credits on these investments of $19 and $10 for the three-month period and $63 and $35 for the nine-month periods ended September 30, 2022, and 2021, 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

Non-U.S. GAAP Financial Measures

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 cannot be predicted or that are outside management’s control. 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 cash flows from derivatives associated with notes payable but excluding any nonrecurring 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 term of the hedge. 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 cash flows 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 cash flows 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 cash flows 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.

Third Quarter 2022

Earnings Call

Video Update

Max K. Brodén

October 31, 2022

For more information contact:

Investor and Rating Agency Relations

800.235.2667

[email protected]

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.