afl-20230426

News Release

Aflac Incorporated Announces First Quarter Results,

Reports First Quarter Net Earnings of $1.2 Billion,

Declares Second Quarter Cash Dividend

COLUMBUS, Ga. - April 26, 2023 - Aflac Incorporated (NYSE: AFL) today reported its first quarter results.

Total revenues were $4.8 billion in the first quarter of 2023, compared with $5.2 billion in the first quarter of 2022. Net earnings were $1.2 billion, or $1.94 per diluted share, compared with $1.0 billion, or $1.60 per diluted share a year ago.

Net earnings in the first quarter of 2023 included net investment gains of $123 million, or $0.20 per diluted share, compared with net investment gains of $122 million, or $0.19 per diluted share a year ago. These net investment gains were driven by net gains on certain derivatives and foreign currency activities of $99 million and $57 million of net gains from sales and redemptions, both of which were largely driven by changes in exchange rates. Net investment losses also included a $3 million loss from a decrease in the fair value of equity securities and a $30 million increase in the company's current expected credit losses (CECL) reserves and impairments.

Adjusted earnings* in the first quarter were $953 million, compared with $942 million in the first quarter of 2022, reflecting an increase of 1.2%. Adjusted earnings per diluted share* increased 7.6% to $1.55 in the quarter. Variable investment income ran $39 million, or $0.05 per share, below the company's long-term return expectations. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per share by $0.07.

The average yen/dollar exchange rate in the first quarter of 2023 was 132.30, or 12.2% weaker than the average rate of 116.18 in the first quarter of 2022.

Total investments and cash at the end of March 2023 were $120.5 billion, compared with $132.6 billion at March 31, 2022. The decline in the carrying amount of the portfolio is principally driven by the weaker yen and higher interest rates.

Shareholders’ equity was $19.8 billion, or $32.65 per share, at March 31, 2023, compared with $17.6 billion, or $27.21 per share, at March 31, 2022. Shareholders’ equity at the end of the first quarter included a cumulative decrease of $4.9 billion for the effect of the change in discount rate assumptions on insurance reserves, driven by the adoption of the new accounting guidance for long-duration insurance contracts, compared with a corresponding cumulative decrease of $11.6 billion at March 31, 2022 and a net unrealized gain on investment securities and derivatives of $1.3 billion, compared with a net unrealized gain of $5.8 billion at March 31, 2022. Shareholders’ equity at the end of the first quarter also included an unrealized foreign currency translation loss of $3.6 billion, compared with an unrealized foreign currency translation loss of $2.4 billion at March 31, 2022. The annualized return on average shareholders’ equity in the first quarter was 23.8%.

Shareholders’ equity excluding AOCI (or adjusted book value*) was $27.1 billion, or $44.66 per share at March 31, 2023, compared with $26.0 billion, or $40.31 per share, at March 31, 2022. The annualized adjusted return on equity excluding foreign currency impact* in the first quarter was 14.8%.

AFLAC JAPAN

In yen terms, Aflac Japan's net earned premiums were ¥287.0 billion for the quarter, or 5.9% lower than a year ago, mainly due to limited pay products reaching paid-up status and the implementation of our global reinsurance strategy. Adjusted net investment income increased 2.4% to ¥80.9 billion, mainly due to the impact of foreign exchange on dollar-denominated investments offset by higher hedge costs. Total adjusted revenues in yen declined 4.1% to ¥369.1 billion. Pretax adjusted earnings in yen for the quarter increased 3.2% on a reported basis to ¥104.3 billion, primarily due to lower benefits and expenses offset by decreased revenues during the quarter. Pretax adjusted earnings decreased 3.0% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment increased to 28.2%, compared with 26.2% a year ago.

In dollar terms, net earned premiums decreased 17.3% to $2.2 billion in the first quarter. Adjusted net investment income decreased 10.1% to $611 million. Total adjusted revenues declined by 15.8% to $2.8 billion. Pretax adjusted earnings declined 9.4% to $788 million.

For the quarter, total new annualized premium sales (sales) increased 10.8% to ¥13.2 billion, or $100 million, primarily reflecting the continued rollout of the new cancer product and refreshed first sector products.

AFLAC U.S.

Aflac U.S. net earned premiums rose 1.1% to $1.4 billion in the first quarter compared to the prior year. Adjusted net investment income increased 7.1% to $197 million, largely due to higher floating rate income. Total adjusted revenues were up 1.3% to $1.7 billion. Pretax adjusted earnings were $352 million, 5.7% higher than a year ago, primarily due to lower benefits and higher revenues offset by higher expenses. The pretax adjusted profit margin for the U.S. segment was 21.2%, compared with 20.3% a year ago.

Aflac U.S. sales increased 5.3% in the quarter to $315 million, reflecting continued improvement from investment in growth initiatives as well as productivity gains.

CORPORATE AND OTHER

For the quarter, total adjusted revenues increased 74.3% to $129 million compared to the prior year, primarily due to higher total premiums from our global reinsurance strategy and an increase in adjusted net investment income. Pretax adjusted earnings were a loss of $7 million, compared with a loss of $42 million a year ago, reflecting the increase in adjusted revenue, partially offset by higher other adjusted expenses, net benefits and claims.

DIVIDEND AND CAPITAL RETURNED TO SHAREHOLDERS

The board of directors declared the second quarter dividend of $0.42 per share, payable on June 1, 2023 to shareholders of record at the close of business on May 17, 2023.

In the first quarter, Aflac Incorporated deployed $700 million in capital to repurchase 10.3 million of its common shares. At the end of March 2023, the company had 106.3 million remaining shares authorized for repurchase.

OUTLOOK

Commenting on the company’s results, Chairman and Chief Executive Officer Daniel P. Amos stated: "When taking a material weakening of the yen into account, Aflac delivered another quarter of solid earnings results, and the first quarter marked a good start to the year. As noted last quarter, we are actively focused on numerous initiatives in the U.S. and Japan around new products and distribution strategies that present challenges but also offer opportunities, while setting the stage for future growth.

"Looking at our operations in Japan, we are encouraged by the planned May reclassification of COVID-19 that will bring it to the same level as influenza as Japan emerges from the pandemic. I am pleased with the continued sales improvements, which reflect the ongoing rollout of our cancer insurance policy initially sold through associates and Daido Life, followed by Dai-ichi Life and financial institutions. I am also encouraged by the fact that Japan Post Company and Japan Post Insurance began selling our new cancer insurance product earlier this month. First quarter sales also reflected refreshed first sector product updates. We are focused on creating new customers through products like WAYS and Child Endowment to increase opportunities to sell our third sector products, including our cancer and medical products.

"In the U.S., while the first quarter tends to generate the lowest sales of the year, I am encouraged by the continued improvement in the productivity of our agents and brokers as well as contribution from the buildout of our acquired platforms, namely network dental and vision and group life and disability. We continue to work toward reinforcing our leading position and building our momentum.

"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. We treasure our track record of dividend growth, highlighted by 2022 marking the 40th consecutive year of dividend increases. We remain committed to extending this track record, 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 the growth investments we have made in our platform to improve our strength and leadership position."

All relevant prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

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

ABOUT AFLAC INCORPORATED

Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than 67 years to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance policies in force. In 2021, the company became a signatory of the Principles for Responsible Investment (PRI). In 2022, the company was included in the Dow Jones Sustainability North America Index for the ninth year, the World's Most Ethical Companies by Ethisphere for the 17th consecutive year, Fortune's World's Most Admired Companies for the 22nd time and Bloomberg's Gender-Equality Index for the fourth 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/espanol. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under “Sustainability.”

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

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

Aflac Incorporated will webcast its quarterly conference call via the “Investors” page of aflac.com at 8:00 a.m. (ET) on Thursday, April 27, 2023.

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 MARCH 31,	2023		2022		% Change
Total revenues	$	4,800	$	5,173	(7.2)	%
Benefits and claims, net	2,150		2,483		(13.4)
Total acquisition and operating expenses	1,308		1,396		(6.3)
Earnings before income taxes	1,342		1,294		3.7
Income taxes	154		247
Net earnings	$	1,188	$	1,047	13.5	%
Net earnings per share – basic	$	1.94	$	1.61	20.5	%
Net earnings per share – diluted	1.94		1.60		21.3
Shares used to compute earnings per share (000):
Basic	611,205		649,753		(5.9)	%
Diluted	613,950		652,827		(6.0)
Dividends paid per share	$	0.42	$	0.40	5.0	%

All relevant prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration

insurance contracts.


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

MARCH 31,	2023		2022		% Change
Assets:
Total investments and cash	$	120,500	$	132,599	(9.1)	%
Deferred policy acquisition costs	9,267		9,502		(2.5)
Other assets	5,199		5,595		(7.1)
Total assets	$	134,966	$	147,696	(8.6)	%
Liabilities and shareholders’ equity:
Policy liabilities	$	99,933	$	115,551	(13.5)	%
Notes payable and lease obligations	7,420		7,768		(4.5)
Other liabilities	7,829		6,816		14.9
Shareholders’ equity	19,784		17,560		12.7
Total liabilities and shareholders’ equity	$	134,966	$	147,696	(8.6)	%
Shares outstanding at end of period (000)	605,952		645,349		(6.1)	%

All relevant prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration

insurance contracts.

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 MARCH 31,	2023		2022		% Change

Net earnings	$	1,188	$	1,047	13.5	%

Items impacting net earnings:
Adjusted net investment (gains) losses	(209)		(134)




Other and non-recurring (income) loss	—		—
Income tax (benefit) expense on items excluded from adjusted earnings	(26)		28



Adjusted earnings	953		942		1.2	%
Current period foreign currency impact 1	41		N/A
Adjusted earnings excluding current period foreign currency impact 2	$	994	$	942	5.5	%

Net earnings per diluted share	$	1.94	$	1.60	21.3	%

Items impacting net earnings:
Adjusted net investment (gains) losses	(0.34)		(0.21)
Other and non-recurring (income) loss	—		—
Income tax (benefit) expense on items excluded from adjusted earnings	(0.04)		0.04



Adjusted earnings per diluted share	1.55		1.44		7.6	%
Current period foreign currency impact 1	0.07		N/A
Adjusted earnings per diluted share excluding current period foreign currency impact 2	$	1.62	$	1.44	12.5	%

All relevant prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration

insurance contracts.

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

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


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

THREE MONTHS ENDED MARCH 31,	2023		2022		% Change

Net investment (gains) losses	$	(123)	$	(122)	0.8	%

Items impacting net investment (gains) losses:
Amortized hedge costs	(58)		(26)
Amortized hedge income	29		11
Net interest cash flows from derivatives associated with certain investment strategies	(69)		(9)
Interest rate component of the change in fair value of foreign currency swaps on notes payable1	12		13

Adjusted net investment (gains) losses	$	(209)	$	(134)	56.0	%

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 MARCH 31,	2023		2022		% Change

Net investment income	$	943	$	903	4.4	%

Items impacting net investment income:
Amortized hedge costs	(58)		(26)
Amortized hedge income	29		11
Net interest cash flows from derivatives associated with certain investment strategies	(69)		(9)

Adjusted net investment income	$	845	$	879	(3.9)	%


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

MARCH 31,	2023		2022		% Change
U.S. GAAP book value	$	19,784	$	17,561
Less:
Unrealized foreign currency translation gains (losses)	(3,618)		(2,437)
Unrealized gains (losses) on securities and derivatives	1,263		5,758
Effect of changes in discount rate assumptions	(4,894)		(11,608)
Pension liability adjustment	(29)		(163)
Total AOCI	(7,278)		(8,450)
Adjusted book value	$	27,062	$	26,011
Add:
Unrealized foreign currency translation gains (losses)	(3,618)		(2,437)
Adjusted book value including unrealized foreign currency translation gains (losses)	$	23,444	$	23,574

Number of outstanding shares at end of period (000)	605,952		645,349

U.S. GAAP book value per common share	$	32.65	$	27.21	20.0	%
Less:
Unrealized foreign currency translation gains (losses) per common share	(5.97)		(3.78)
Unrealized gains (losses) on securities and derivatives per common share	2.08		8.92
Effect of changes in discount rate assumptions per common share	(8.08)		(17.99)
Pension liability adjustment per common share	(0.05)		(0.25)
Total AOCI per common share	(12.01)		(13.09)
Adjusted book value per common share	$	44.66	$	40.31	10.8	%
Add:
Unrealized foreign currency translation gains (losses) per common share	(5.97)		(3.78)
Adjusted book value including unrealized foreign currency translation gains (losses) per common share	$	38.69	$	36.53	5.9	%

All relevant prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration

insurance contracts.


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

THREE MONTHS ENDED MARCH 31,	2023		2022
U.S. GAAP ROE - Net earnings1	23.8	%	24.2	%
Impact of excluding unrealized foreign currency translation gains (losses)	(3.2)		(2.1)
Impact of excluding unrealized gains (losses) on securities and derivatives	0.2		7.2
Impact of excluding effect of changes in discount rate assumptions	(3.1)		(12.9)
Impact of excluding pension liability adjustment	—		(0.2)
Impact of excluding AOCI	(6.1)		(7.9)
U.S. GAAP ROE - less AOCI	17.7		16.3
Differences between adjusted earnings and net earnings2	(3.5)		(1.6)
Adjusted ROE - reported	14.2		14.6
Less: Impact of foreign currency3	(0.6)		N/A
Adjusted ROE, excluding impact of foreign currency	14.8		14.6

All relevant prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration

insurance contracts.

1 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.

2 See separate reconciliation of net income to adjusted earnings.

3 Impact of foreign currency is calculated by restating all foreign currency components of the income statement to the weighted average foreign currency exchange rate for the comparable prior year period. The impact is the difference of the restated adjusted earnings compared to reported adjusted earnings. For comparative purposes, only current period income is restated using the weighted average prior period exchange rate, which eliminates the foreign currency impact for the current period. This allows for equal comparison of this financial measure.


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

THREE MONTHS ENDED MARCH 31, 2023	Including Currency Changes		Excluding Currency Changes2
Net earned premiums3	(9.6)	%	(1.9)	%
Adjusted net investment income4	(3.9)		0.3
Total benefits and expenses	(10.8)		(3.0)
Adjusted earnings	1.2		5.5
Adjusted earnings per diluted share	7.6		12.5

All relevant prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration

insurance contracts.

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

2Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.

3Net of reinsurance

4Refer to previously defined adjusted net investment income.

FORWARD-LOOKING INFORMATION

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

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

•difficult conditions in global capital markets and the economy, including inflation and the continued effects 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 interpretations applied to investment valuations

•significant valuation judgments in determination of expected credit losses recorded on the Company's investments

•decreases in the Company's financial strength or debt ratings

•decline in creditworthiness of other financial institutions

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

•major public health issues, including COVID-19 and any resulting or coincidental economic effects, 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 and on successful execution of revenue growth and expense management initiatives

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

confidentiality 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; 800.235.2667 or [email protected]

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

FINAL 4/26/2023

Financial Supplement

First Quarter 2023

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

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


			Aflac Incorporated															Page
			Share Data															2
			Summary of Adjusted Results by Business Segment															3
			Statements of Earnings															4
			Analysis of Net Earnings and Net Earnings Per Share															5
			Balance Sheets															6
			Quarterly Financial Results															7
			Quarterly Book Value Per Share															8
			Return on Equity															9
			Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact															10
			Investment Results															11,12,13
			Long-Term Debt Data															14
			Ratings															15

			Aflac U.S.
			Statement of Pretax Adjusted Earnings															16
			Balance Sheets															17
			Quarterly Pretax Adjusted Earnings															18
			Operating Ratios															19
			Sales															20,21

			Aflac Japan
			Statement of Pretax Adjusted Earnings															22,23
			Balance Sheets															24,25
			Quarterly Pretax Adjusted Earnings															26
			Operating Ratios															27
			Sales															28,29,30
			Yen/Dollar Exchange Rates															31

			Corporate and Other
			Statement of Pretax Adjusted Earnings															32

			Non-U.S. GAAP Financial Measures															33

For more information, contact:

David Young

Phone. 706.596.3264

[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

	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
		4	623,868	222	120	8,938	16	615,256	619,845	3,149	622,994	634,816	2,839	637,655

	2023	1	615,256	239	1,152	10,348	347	605,952	611,205	2,745	613,950	611,205	2,745	613,950

(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 March 31,
																										%
		2018			2019			2020			2021			2022				2022			2023				Change

	Aflac Japan	$	3,208		$	3,261		$	3,263		$	3,755		$	3,281						$	870		$	788		(9.4)
	Aflac U.S.		1,285			1,272			1,268			1,356			1,359							333			352		5.7
	Corporate and other (1)		(139)			(72)			(115)			(293)			(218)							(42)			(7)
	Pretax adjusted earnings		4,354			4,461			4,416			4,819			4,422							1,161			1,133		(2.4)
	Income taxes (1)		1,129			1,147			864			893			808							219			180		(17.8)
	Adjusted earnings (2)		3,226			3,314			3,552			3,925			3,614							942			953		1.2

	Reconciling items:
	Adjusted net investment gains (losses)		(297)			(15)			(229)			462			447							134			209
	Other and non-recurring income (loss) (3)		(75)			(1)			(28)			(73)			1							—			—
	Income tax benefit (expense) on items excluded from adjusted earnings (4)		83			3			72			(83)			357							(28)			26
	Tax reform adjustment (5)		(18)			4			—			—			—							—			—
	Tax valuation allowance release (6)		—			—			1,411			—			—							—			—
	Net earnings	$	2,920		$	3,304		$	4,778		$	4,231		$	4,418						$	1,047		$	1,188		13.5

	Effective Tax rate		26.7	%		25.7	%		(14.9)	%		18.7	%		9.3	%			19.1	%		11.5	%

	Earnings per share of common stock:
	Net earnings (basic)	$	3.79		$	4.45		$	6.69		$	6.28		$	6.96						$	1.61		$	1.94		20.5
	Net earnings (diluted)		3.77			4.43			6.67			6.25			6.93							1.60			1.94		21.3

	Adjusted earnings (basic) (2)	$	4.20		$	4.46		$	4.98		$	5.83		$	5.69						$	1.45		$	1.56		7.6
	Adjusted earnings (diluted) (2)		4.16			4.44			4.96			5.80			5.67							1.44			1.55		7.6

	(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $51 and $12 for the three-month periods ended March 31, 2023, and 2022, respectively, is included as a reduction to net investment income. Tax credits on these investments of $52 and $16 for the three-month periods ended March 31, 2023, and 2022, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings.
	(2) See non-U.S. GAAP financial measures for definition of adjusted earnings.
	(3) Foreign currency gains and losses for all periods have been reclassified from Other and non-recurring income (loss) to Net investment gains and losses.
	(4) Primarily reflects release of $452 in deferred taxes in 2022
	(5) The impact of Tax Reform was adjusted in 2018 for return-to-provision adjustments, various amended returns filed by the Company, and final true-ups of deferred tax liabilities. Further impacts were recorded in 2019 as a result of additional guidance released by the IRS.
	(6) Tax benefit recognized in 2020 represents the release of valuation allowances on deferred tax benefits related to foreign tax credits.


Aflac Incorporated and Subsidiaries

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

			Years Ended December 31,										3 Months Ended March 31,
																			%
			2018		2019		2020		2021		2022			2022	2023		Change
	Revenues:
		Net earned premiums
		Gross premiums	$	19,018	$	19,122	$	18,955	$	17,305	$	15,025			$	4,115	$	3,738
		Assumed (ceded)		(341)		(342)		(333)		(210)		(124)				(36)		(50)
		Total net earned premiums		18,677		18,780		18,622		17,095		14,901				4,079		3,688		(9.6)
		Net investment income		3,442		3,578		3,638		3,818		3,656				903		943		4.4
		Net investment gains (losses) (1)		(430)		(135)		(270)		468		363				122		123
		Other income (1)		69		84		157		173		220				69		46
		Total revenues		21,758		22,307		22,147		21,554		19,140				5,173		4,800		(7.2)

	Benefits and Claims:
		Benefits and claims, net
		Incurred claims -direct		9,121		9,279		9,364		8,949		8,271				2,339		2,215
		Incurred claims -assumed (ceded)		(421)		(372)		(296)		(147)		(108)				(24)		(41)
		Increase in FPB (2)-direct		3,167		2,952		2,707		1,819		888				196		36
		Increase in FPB (2)-assumed (ceded)		133		83		21		3		51				5		(7)
		Total net benefits and claims, excluding reserve remeasurement		N/A		N/A		N/A		10,623		9,102				2,517		2,203
		Reserve remeasurement (gain) loss		N/A		N/A		N/A		(147)		(215)				(34)		(53)
		Total net benefits and claims		12,000		11,942		11,796		10,476		8,887				2,483		2,150		(13.4)
		Acquisition and operating expenses:
		Amortization of DAC (3)		1,245		1,282		1,214		835		792				207		205
		Insurance commissions		1,320		1,321		1,316		1,256		1,117				300		280
		Insurance expenses		2,988		3,089		3,420		3,541		3,249				832		775
		Interest expense		222		228		242		238		226				56		48
		Other expenses		—		—		—		—		—				1		—
		Total acquisition and operating expenses		5,775		5,920		6,192		5,870		5,384				1,396		1,308		(6.3)
		Total benefits and expenses		17,775		17,862		17,988		16,346		14,271				3,879		3,458		(10.9)

		Pretax earnings		3,983		4,445		4,159		5,208		4,869				1,294		1,342

		Income tax expense (benefit) (4)		1,063		1,141		(619)		977		451				247		154

		Net earnings	$	2,920	$	3,304	$	4,778	$	4,231	$	4,418			$	1,047	$	1,188		13.5

		(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 $452 in deferred taxes in 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)

		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	4,231	365	(59)	(42)	6.25	.54	(.09)	(.06)
		2022	4,418	803	1	(262)	6.93	1.26	—	(.41)


	2021	1	1,224	240	(5)	5	1.77	.35	(.01)	.01
		2	1,027	67	(42)	(6)	1.51	.10	(.06)	(.01)
		3	915	(136)	(7)	(12)	1.36	(.20)	(.01)	(.02)
		4	1,065	194	(5)	(29)	1.61	.29	(.01)	(.04)

	2022	1	1,047	106	(1)	(35)	1.60	.16	—	(.05)
		2	1,394	448	—	(59)	2.17	.70	—	(.09)
		3	1,781	871	1	(97)	2.82	1.38	—	(.15)
		4	196	(621)	—	(70)	.31	(1.00)	—	(.11)

	2023	1	1,188	235	—	(41)	1.94	.38	—	(.07)







	(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,										March 31,
	Assets:			2018		2019		2020		2021		2022			2022			2023

	Investments and cash:
		Securities available for sale:
		Fixed maturity securities available for sale, at fair value		$	78,429	$	86,950	$	101,286	$	94,206	$	71,936			$	85,795		$	74,174
		Fixed maturity securities available for sale - consolidated variable interest entities, at fair value			4,466		4,312		4,596		4,490		3,805				4,170			3,925
		Fixed maturity securities held to maturity, at amortized cost, net of allowance for credit losses			30,318		30,085		24,464		22,000		19,056				20,672			18,936
		Equity securities, at fair value			987		802		1,283		1,603		1,091				1,415			1,087
		Commercial mortgage and other loans, net of allowance for credit losses			6,919		9,569		10,554		11,786		13,496				12,312			13,328
		Other investments			787		1,477		2,429		3,842		4,070				3,960			5,241
		Cash and cash equivalents			4,337		4,896		5,141		5,051		3,943				4,275			3,809
			Total investments and cash		126,243		138,091		149,753		142,978		117,397				132,599			120,500

	Receivables, net of allowance for credit losses (1)				844		816		778		672		647				709			789
	Accrued investment income				773		772		780		737		745				683			701
	Deferred policy acquisition costs				9,875		10,128		10,441		9,848		9,239				9,502			9,267
	Property and equipment, net				443		581		601		538		530				538			528
	Other assets, net of allowance for credit losses (1)(2)				2,228		2,380		2,733		3,377		3,180				3,665			3,181
			Total assets	$	140,406	$	152,768	$	165,086	$	158,150	$	131,738			$	147,696		$	134,966

	Liabilities and Shareholders' Equity:
	Liabilities:
		Total policy liabilities		$	103,188	$	106,554	$	114,391	$	126,331	$	96,910			$	115,551		$	99,933
		Notes payable			5,778		6,569		7,899		7,956		7,442				7,768			7,420
		Income taxes, primarily deferred			4,020		5,370		4,661		30		698				324			647
		Other liabilities			3,958		5,316		4,576		6,802		6,548				6,491			7,182
			Total liabilities		116,944		123,809		131,527		141,119		111,598				130,135			115,182
	Shareholders' equity:
		Common stock			135		135		135		135		135				135			135
		Additional paid-in capital			2,177		2,313		2,410		2,529		2,641				2,560			2,665
		Retained earnings			31,788		34,291		37,984		40,963		44,367				42,010			45,555
		Accumulated other comprehensive income (loss):
			Unrealized foreign currency translation gains (losses)		(1,847)		(1,623)		(1,109)		(1,985)		(3,564)				(2,438)			(3,618)
			Unrealized gains (losses) on fixed maturity securities		4,234		8,548		10,361		9,602		(702)				5,787			1,289
			Unrealized gains (losses) on derivatives		(24)		(33)		(34)		(30)		(27)				(29)			(26)
			Effect on change in discount rate assumption(s)		N/A		N/A		N/A		(15,832)		(2,100)				(11,608)			(4,894)
			Pension liability adjustment		(212)		(277)		(284)		(166)		(36)				(163)			(29)
		Treasury stock			(12,789)		(14,395)		(15,904)		(18,185)		(20,574)				(18,694)			(21,293)
			Total shareholders' equity		23,462		28,959		33,559		17,031		20,140				17,560			19,784
			Total liabilities & shareholders' equity	$	140,406	$	152,768	$	165,086	$	158,150	$	131,738			$	147,696		$	134,966

(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity.

(2) Includes goodwill of $270 million in 2023, $265 million in 2022, $268 in 2021, $269 in 2020, $140 million in 2019 and $67 million in 2018


Aflac Incorporated and Subsidiaries

Quarterly Financial Results
(Dollars In Millions, except per-share data)

							Total
			Net	Net		Benefits	Acquisitions	Total			Net EPS		Adj. EPS (1)
			Earned	Inv.	Total	&	&	Pretax	Net	Adjusted
		Period	Premiums	Income	Revenues	Claims, Net	Adj. Exp.	Earn.	Earn.	Earn. (1)	Basic	Dil.	Basic	Dil.

		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	17,095	3,818	21,554	10,476	5,870	5,208	4,231	3,925	6.28	6.25	5.83	5.80
		2022	14,901	3,656	19,140	8,887	5,384	4,869	4,418	3,614	6.96	6.93	5.69	5.67


	2021	1	4,434	925	5,710	2,771	1,420	1,519	1,224	989	1.78	1.77	1.44	1.43
		2	4,301	993	5,424	2,672	1,474	1,277	1,027	1,002	1.51	1.51	1.48	1.47
		3	4,229	991	5,098	2,503	1,450	1,146	915	1,058	1.37	1.36	1.58	1.57
		4	4,132	910	5,322	2,529	1,527	1,266	1,065	875	1.62	1.61	1.33	1.32

	2022	1	4,079	903	5,173	2,483	1,396	1,294	1,047	942	1.61	1.60	1.45	1.44
		2	3,764	937	5,315	2,274	1,333	1,707	1,394	945	2.18	2.17	1.47	1.47
		3	3,535	920	4,704	2,076	1,299	1,329	1,781	910	2.83	2.82	1.45	1.44
		4	3,523	896	3,948	2,054	1,356	538	196	817	.32	.31	1.32	1.31

	2023	1	3,688	943	4,800	2,150	1,308	1,342	1,188	953	1.94	1.94	1.56	1.55

(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

		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	26.12	(12.90)	39.01	9.7%	35.97	5.9%
		2022	32.73	(10.45)	43.18	10.7%	37.39	3.9%


	2021	1	22.98	(13.60)	36.59	18.3%	34.15	18.7%
		2	24.39	(13.18)	37.57	18.3%	35.12	18.2%
		3	25.19	(13.20)	38.39	10.0%	35.77	8.1%
		4	26.12	(12.90)	39.01	9.7%	35.97	5.9%

	2022	1	27.21	(13.09)	40.31	10.1%	36.53	7.0%
		2	30.82	(11.00)	41.82	11.3%	36.75	4.6%
		3	31.97	(12.03)	44.00	14.6%	36.99	3.4%
		4	32.73	(10.45)	43.18	10.7%	37.39	3.9%

	2023	1	32.65	(12.01)	44.66	10.8%	38.69	5.9%

(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 March 31,

				2018		2019		2020		2021 (4)		2022			2022	2023
	U.S. GAAP ROE (1) - Net earnings			12.2	%	12.6	%	15.3	%	26.7	%	23.8	%			24.2	%	23.8	%

		Impact of excluding unrealized foreign currency translation gains (losses)		(1.0)		(1.0)		(0.9)		(1.7)		(2.5)				(2.1)		(3.2)
		Impact of excluding unrealized gains (losses) on securities and derivatives		3.0		3.6		6.2		10.7		4.1				7.2		0.2
		Impact of excluding effect on change in discount rate assumptions		N/A		N/A		N/A		(18.5)		(8.2)				(12.9)		(3.1)
		Impact of excluding pension liability adjustment		(0.1)		(0.1)		(0.2)		(0.2)		(0.1)				(0.2)		—

			Impact of excluding AOCI	1.8		2.5		5.1		(9.7)		(6.8)				(7.9)		(6.1)

	U.S. GAAP ROE - less AOCI			13.9		15.1		20.3		17.0		17.0				16.3		17.7

	Differences between adjusted earnings and net earnings (2)			1.5		0.0		(5.2)		(1.2)		(3.1)				(1.6)		(3.5)

	Adjusted ROE - reported (3)			15.4		15.2		15.1		15.8		13.9				14.6		14.2
















		(1)	U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
		(2)	See separate reconciliation of net income to adjusted earnings.




		(3)	See non-U.S. GAAP financial measures for definition of adjusted return on equity
		(4)	Return on equity calculations for 2021 use beginning retained earnings and accumulated other comprehensive income adjusted for the adoption of LDTI.


Aflac Incorporated and Subsidiaries

	Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact (1)
		(Diluted Basis)

												Change
								QTD	YTD	Excluding		Excluding
								Foreign	Foreign	Foreign		Foreign
				Adjusted				Currency	Currency	Currency		Currency
			Period	EPS(1)		Growth		Impact(1)	Impact(1)	Impact(1)		Impact

			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	$	5.80	16.9	%	N/A	(.06)	$	5.86	18.1	%
			2022	$	5.67	(2.2)	%	N/A	(.41)	$	6.08	4.8	%


		2021	1	$	1.43	18.2	%	.01	.01	$	1.42	17.4	%
			2	1.47		14.8		(.01)	—	1.48		15.6
			3	1.57		12.9		(.02)	(.02)	1.59		14.4
			4	1.32		23.4		(.04)	(.06)	1.36		27.1
				$	5.80	16.9	%			$	5.86	18.1	%

		2022	1	$	1.44	.7	%	(.05)	(.05)	$	1.50	4.9	%
			2	1.47		—		(.09)	(.15)	1.56		6.1
			3	1.44		(8.3)		(.15)	(.30)	1.59		1.3
			4	1.31		(.8)		(.11)	(.41)	1.43		8.3
				$	5.67	(2.2)	%			$	6.08	4.8	%

		2023	1	$	1.55	7.6	%	(.07)	(.07)	$	1.62	12.5	%



				$	1.55	7.6	%			$	1.62	12.5	%


		(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,															March 31,
			2018			2019			2020			2021			2022					2022				2023

	Fixed Maturity Securities(1)		$	107,174		$	109,456		$	116,056		$	107,369		$	94,525						$	102,136			$	94,242

	Commercial mortgage and other loans, net of allowance for credit losses (1)
	Transitional Real Estate (floating rate)			4,378			5,450			5,231			5,246			6,455							5,430				6,635
	Middle Market Loans (floating rate)			1,478			2,412			3,635			4,601			5,028							4,902				4,935
	Commercial Mortgage Loans			1,063			1,707			1,688			1,874			2,013							1,853				1,758
		Total Commercial mortgage and other loans, net of allowance for credit losses(1)		6,919			9,569			10,554			11,721			13,496							12,185				13,328

	Equity Securities, at FV through net earnings			987			802			1,283			1,603			1,091							1,415				1,087

	Alternatives(2)			370			551			919			1,703			2,107							1,801				2,255

	Total Portfolio		$	115,450		$	120,378		$	128,812		$	122,396		$	111,219						$	117,537			$	110,912

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

			December 31,																March 31,
			2018			2019			2020			2021			2022						2022				2023
	Fixed Maturity Securities
	Available For Sale - Gross Gains		$	7,733		$	12,266		$	14,771		$	13,566		$	4,800						$	9,438			$	5,875
	Available For Sale - Gross Losses			(1,694)			(375)			(481)			(239)			(4,528)							(937)				(3,082)
	Total Available For Sale			6,039			11,891			14,290			13,327			272							8,501				2,793

	Held to Maturity - Gross Gains			6,470			7,519			5,935			4,869			2,154							3,913				2,680
	Held to Maturity - Gross Losses			(66)			(10)			—			—			—							—				—
	Total Held to Maturity		$	6,404		$	7,509		$	5,935		$	4,869		$	2,154						$	3,913			$	2,680

		Credit Ratings on Fixed Maturities
		(At Amortized Cost)

			December 31,															March 31,
		Credit Rating	2018			2019			2020			2021			2022					2022				2023
		AAA		1.0	%		1.1	%		1.0	%		1.0	%		1.6	%						1.0	%			1.7	%
		AA		3.9			4.3			4.5			5.1			5.2							5.2				5.3
		A		67.9			68.6			69.3			68.9			68.0							68.5				67.9
		BBB		23.2			23.1			21.9			22.5			23.0							22.9				23.0
		BB or Lower		4.0			2.9			3.3			2.5			2.2							2.4				2.1
				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
	Supplemental Investment Data by Segment

																				3 Months Ended
				December 31,															March 31,
				2018			2019			2020			2021			2022				2022			2023

	Aflac Japan:
		Invested assets (in millions)(1)		¥	11,442,444		¥	11,784,586		¥	11,936,087		¥	12,405,531		¥	12,617,181			¥	12,510,655		¥	12,534,653
		Return on average invested assets(2)		2.33		%	2.33		%	2.38		%	2.72		%	2.78		%		2.54		%	2.57		%
		Portfolio book yield at end of period(3)		2.61		%	2.64		%	2.59		%	2.60		%	3.06		%		2.62		%	3.13		%
		Total purchases for period (in millions)(3)		¥	1,298,376		¥	1,003,885		¥	714,124		¥	952,038		¥	716,964			¥	156,697		¥	159,440
		New money yield(3)(4)		3.06		%	3.83		%	3.75		%	3.50		%	4.48		%		3.90		%	5.18		%

	Aflac U.S.:
		Invested assets (in millions)(1)		$	13,798		$	14,036		$	14,848		$	15,841		$	16,772			$	16,098		$	16,609
		Return on average invested assets(2)		5.16		%	5.70		%	4.90		%	4.87		%	4.72		%		4.61		%	4.74		%
		Portfolio book yield at end of period(3)		5.55		%	5.40		%	5.18		%	4.94		%	5.39		%		4.95		%	5.46		%
		Total purchases for period (in millions)(3)		$	2,155		$	1,835		$	1,050		$	2,130		$	1,701			$	523		$	242
		New money yield(3)(4)		4.55		%	4.51		%	3.04		%	3.41		%	5.16		%		4.60		%	7.01		%

	Hedge Costs/Income Metrics (5)(6)

																				3 Months Ended
				December 31,															March 31,
				2018			2019			2020			2021			2022				2022			2023
	Aflac Japan:
			FX hedged notional at end of period (in billions)(7)	$	9.9		$	8.8		$	6.0		$	6.4		$	4.1			$	4.5		$	3.7
			Weighted average remaining tenor (in months)(8)	21.4			8.5			13.0			2.6			.7				9.9			9.8
			Amortized hedge costs for period (in millions)	$	(236)		$	(257)		$	(206)		$	(76)		$	(112)			$	(26)		$	(58)
	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
			Weighted average remaining tenor (in months)(8)	16.1			13.7			12.1			11.5			10.8				10.9			10.4
			Amortized hedge income (costs) for period (in millions)	$	36		$	89		$	97		$	57		$	68			$	11		$	29

	(1) Invested assets, including cash and short term investments, are stated at amortized cost; except for equities, which are at fair value.
	(2) Net of investment expenses and amortized hedge costs, year-to-date number reflected on a quarterly average basis
	(3) Includes fixed maturity securities, commercial mortgage and other loans, equity securities, and excludes alternative investments in limited partnerships, and any impacts from hedging activities
	(4) Reported on a gross yield basis; excludes investment expenses, external management fees, and amortized hedge costs
	(5) See non-U.S. GAAP financial measures for definition of amortized hedge costs/income. Further, the metrics in this table are split to show the hedging of the market value of a portion of the USD investments in Japan Segment’s "USD Program" in the "Japan Segment Portfolio Allocation by Currency" table on page 13 of this supplement as well as the corporate hedging activities at Aflac 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 March 31, 2023, Aflac Japan caps and put options notional amount was $13.5 billion with a weighted average remaining tenor of 7.4 months. At March 31, 2023, the Parent Company caps notional amount was $2.2 billion with a weighted average remaining tenor of 7.4 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, 2022				March 31, 2023
			Amortized Cost (2)		Fair Value		Amortized Cost (2)		Fair Value
	JGB		$	42,618	$	44,178	$	42,355	$	45,299
	Other		20,930		21,277		20,548		21,543
	Total yen denominated		63,548		65,455		62,903		66,842

	USD Program		27,212		27,885		25,768		26,930
	Other		2,209		2,795		2,236		2,928
	US dollar denominated		29,421		30,680		28,004		29,858

	Total		$	92,969	$	96,135	$	90,907	$	96,700


		Distribution of Consolidated Fixed Maturities by Sector (2)
							March 31, 2023
	(In millions)						Amortized Cost (3)		% of Total
	Government and agencies						$	43,595	46.3		%
	Municipalities						2,593		2.8
	Mortgage- and asset-backed securities						2,545		2.7
	Public utilities						7,495		7.9
	Electric						6,074		6.4
	Natural Gas						844		.9
	Other						577		.6
	Sovereign and supranational						1,118		1.2
	Banks/financial institutions						9,279		9.8
	Banking						5,571		5.9
	Insurance						1,716		1.8
	Other						1,992		2.1
	Other corporate						27,617		29.3
	Basic Industry						2,444		2.6
	Capital Goods						3,275		3.5
	Communications						2,906		3.1
	Consumer Cyclical						2,136		2.3
	Consumer Non-Cyclical						6,148		6.5
	Energy						2,556		2.7
	Other						1,343		1.4
	Technology						3,701		3.9
	Transportation						3,108		3.3
	Total fixed maturity securities						$	94,242	100.0		%

	(1) The entire U.S. segment investment portfolio is U.S. dollar denominated.
	(2)In the first quarter of 2023, the Utility/Energy subsector was combined with the Natural Gas subsector to better reflect the risk characteristics of those issuers and align more closely with industry benchmarks.
	(2) Net of reserves


Aflac Incorporated and Subsidiaries

Long-Term Debt Data

Adjusted Leverage Ratios
(In Millions)

		December 31,															March 31,
			2018			2019			2020			2021			2022			2022		2023

	Notes payable	$	5,778		$	6,569		$	7,899		$	7,956		$	7,442		$	7,768	$	7,420
	50% of subordinated debentures and perpetual bonds		(268)			(408)			(432)			(389)			(337)			(337)		(335)
	Pre-funding of debt maturities		—			(348)			—			—			—			—		—
	Adjusted debt (1)		5,510			5,814			7,467			7,568			7,105			7,431		7,086

	Total Shareholders' Equity		23,462			28,959			33,559			17,031			20,140			17,560		19,784
	Accumulated other comprehensive (income) loss:
	Unrealized foreign currency translation (gains) losses		1,847			1,623			1,109			1,985			3,564			2,438		3,618
	Unrealized (gains) losses on fixed maturity securities		(4,234)			(8,548)			(10,361)			(9,602)			702			(5,787)		(1,289)
	Unrealized (gains) losses on derivatives		24			33			34			30			27			29		26
	Effect on change in discount rate assumptions		N/A			N/A			N/A			15,832			2,100			11,608		4,894
	Pension liability adjustment		212			277			284			166			36			163		29
	Adjusted book value (1)		21,311			22,344			24,625			25,442			26,569			26,011		27,062

	Adjusted capitalization ex-AOCI(1)(2)	$	27,089		$	28,565		$	32,524		$	33,398		$	34,011		$	33,779	$	34,482
	Adjusted debt to adjusted capitalization ex-AOCI		20.3	%		20.4	%		23.0	%		22.7	%		20.9	%		22.0		20.5	%

	Adjusted capitalization(1)(3)	$	25,030		$	26,665		$	31,131		$	31,247		$	30,411		$	31,178	$	30,835
	Adjusted debt to adjusted capitalization		22.0	%		21.8	%		24.0	%		24.2	%		23.4	%		23.8		23.0	%


Debt Maturities(4)
(In Millions)
March 31, 2023

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

	Senior Notes	$	—	$	1,330	$	3,188	$	946	$	1,190	$	6,654
	Subordinated debt		—		—		—		—		674		674


	Total	$	—	$	1,330	$	3,188	$	946	$	1,864	$	7,328

(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+

Bermuda Operating Company

Aflac Re Bermuda Ltd.

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 March 31,
																		%
			2018		2019		2020		2021			2022		2022		2023		Change

	Revenues:
		Net earned premiums
		Gross premiums	$	5,711	$	5,818	$	5,762	$	5,540	$	5,467		$	1,384	$	1,420
		Assumed (ceded)		(3)		(11)		(4)		73		103			29		8
		Total net earned premiums		5,708		5,808		5,758		5,613		5,570			1,413		1,428		1.1
		Adjusted net investment income		727		720		705		754		755			184		197		7.1
		Other income excl. realized foreign
		exchange gains (losses)		8		22		102		121		161			42		35

		Total adjusted revenues		6,443		6,550		6,565		6,489		6,486			1,639		1,660		1.3

	Benefits and claims:
		Benefits and claims, net
		Incurred claims -direct		2,560		2,611		2,498		2,183		2,245			589		595
		Incurred claims -assumed (ceded)		(4)		(5)		(1)		89		104			37		9
		Increase in FPB -direct		331		268		271		463		326			60		88
		Increase in FPB -assumed (ceded)		(1)		(2)		(3)		(11)		4			(1)		(1)
		Total benefits and claims, net, excluding reserve remeasurement		N/A		N/A		N/A		2,724		2,679			686		691
		Reserve remeasurement (gain) loss		N/A		N/A		N/A		(85)		(124)			(20)		(40)
		Total benefits and claims, net		2,887		2,871		2,765		2,639		2,555			666		651		(2.3)

	Adjusted expenses:
		Amortization of deferred policy
		acquisition costs		534		573		570		442		455			114		119		4.4
		Insurance commissions		585		590		576		550		553			140		142		1.4
		Insurance and other expenses		1,152		1,244		1,386		1,502		1,564			387		395		2.1
		Total adjusted expenses		2,271		2,407		2,532		2,494		2,573			640		657

		Total benefits and adjusted expenses		5,158		5,279		5,297		5,132		5,127			1,306		1,308		.2

		Pretax adjusted earnings	$	1,285	$	1,272	$	1,268	$	1,356	$	1,359		$	333	$	352		5.7


Aflac U.S.

	Balance Sheets
	(In Millions)



			December 31,										March 31,

			2018		2019		2020		2021		2022			2022			2023
	Assets:

	Investments and cash		$	14,518	$	16,141	$	17,949	$	18,324	$	15,987			$	17,204		$	16,228
	Receivables, net of allowance for credit losses (1)			561		650		667		574		584				572			720
	Accrued investment income			178		174		172		169		184				166			177
	Deferred policy acquisition costs			3,491		3,544		3,450		3,366		3,463				3,369			3,491
	Other assets (1)			352		436		626		758		784				771			769

		Total assets	$	19,100	$	20,945	$	22,864	$	23,191	$	21,002			$	22,082		$	21,385


	Liabilities and Shareholders' Equity:

	Future policy benefits		$	9,137	$	9,404	$	9,674	$	14,212	$	10,870			$	12,803		$	11,199
	Policy and contract claims			1,727		1,779		2,010		151		200				170			225
	Other policy liabilities			116		111		126		119		117				140			118

	Deferred income taxes			(397)		51		235		(328)		(243)				(249)			(157)
	Other liabilities			1,577		1,803		2,016		2,010		2,080				2,050			2,017
	Shareholders' equity			6,939		7,796		8,803		7,027		7,978				7,168			7,984

		Total liabilities & shareholders' equity	$	19,100	$	20,945	$	22,864	$	23,191	$	21,002			$	22,082		$	21,385

(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on

net earnings or total shareholders' equity.


Aflac U.S.

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

	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)	2,639	(4.6)	442	(22.5)			2,494		(1.5)		1,356	6.9
	2022	5,570	(.8)	755	.1	6,486	—	2,555	(3.2)	455	2.9			2,573		3.2		1,359	.2


2021	1	1,422	(4.1)	176	(.6)	1,628	(3.5)	696	(2.4)	111	(30.6)			600		(7.4)		331	1.5
	2	1,408	(3.4)	189	9.9	1,627	(1.8)	690	6.8	111	(17.2)			599		2.6		338	(20.7)
	3	1,393	(1.0)	191	9.1	1,616	.6	592	(12.8)	110	(22.0)			618		3.5		405	23.1
	4	1,391	(1.3)	197	8.2	1,619	.1	660	(9.2)	110	(18.5)			676		(3.8)		282	50.8

2022	1	1,413	(.6)	184	4.5	1,639	.7	666	(4.3)	114	2.7			640		6.7		333	.6
	2	1,394	(1.0)	193	2.1	1,628	.1	658	(4.6)	113	1.8			627		4.7		343	1.5
	3	1,375	(1.3)	185	(3.1)	1,599	(1.1)	616	4.1	114	3.6			638		3.2		345	(14.8)
	4	1,388	(.2)	192	(2.5)	1,621	.1	614	(7.0)	115	4.5			667		(1.3)		339	20.2

2023	1	1,428	1.1	197	7.1	1,660	1.3	651	(2.3)	119	4.4			657		2.7		352	5.7

Aflac U.S.


Operating Ratios
(Before Management Fee)




		12-Mo. Rolling			Total Adjusted	Combined	Pretax
		Premium	Tot. Ben./	Amort./	Expenses/	Ratio/	Profit
	Period	Persistency (1)	Premium	Premium	Total Adj. Rev.	Total Adj. Rev.	Margin

	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	79.7		47.0	7.9	38.4	79.1	20.9
	2022	77.3		45.9	8.2	39.7	79.0	21.0
	2023 YTD	77.9		45.6	8.3	39.6	78.8	21.2

2021	1	80.0		48.9	7.8	36.9	79.6	20.3
	2	80.1		49.0	7.9	36.8	79.2	20.8
	3	80.0		42.5	7.9	38.2	74.9	25.1
	4	79.7		47.4	7.9	41.8	82.6	17.4

2022	1	78.7		47.1	8.1	39.0	79.7	20.3
	2	78.1		47.2	8.1	38.5	78.9	21.1
	3	77.9		44.8	8.3	39.9	78.4	21.6
	4	77.3		44.2	8.3	41.1	79.1	20.9

2023	1	77.9		45.6	8.3	39.6	78.8	21.2





(1) Includes Network Dental & Vision, Consumer Markets, and Group Premier Life, Absence Management, and Disability Solutions products beginning in the first quarter of 2021

Aflac U.S.


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

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

	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
	2022		5,697	(.6)		1,483	16.1


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
	4		5,967	(.6)		545	17.4

2023	1		6,023	1.4		315	5.3

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
		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
		2022	378	25.5	156	10.5	338	22.8	299	20.1	226	15.3	85	5.8	1,483


	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
		4	135	24.9	73	13.4	112	20.5	112	20.6	84	15.4	28	5.2	545

	2023	1	79	25.2	26	8.3	74	23.5	64	20.5	50	15.9	21	6.6	315


Aflac U.S. Sales Force Data

					Average	Productivity
					Weekly	(Production/
		Recruited Agents			Producer	Avg. Weekly
	Period	Career	Broker	Total	Equivalents	Producers)
	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
	2022	9,550	1,500	11,050	6,186	239,786


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
	4	2,268	315	2,583	6,607	82,538

2023	1	2,676	348	3,024	6,108	51,525

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

Aflac Japan


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

		Years Ended December 31,										3 Months Ended March 31,
																		%
		2018		2019		2020		2021		2022			2022	2023		Change
Revenues:
	Net earned premiums
	Gross premiums	¥	1,468,894	¥	1,450,586	¥	1,409,134	¥	1,290,527	¥	1,246,657			¥	317,249	¥	306,739
	Assumed (ceded)		(60,198)		(57,974)		(55,926)		(50,864)		(48,578)				(12,365)		(19,691)
	Total net earned premiums		1,408,697		1,392,612		1,353,208		1,239,663		1,198,079				304,884		287,048		(5.9)
	Net investment income (1)
	Yen denominated		141,575		142,473		138,397		138,513		149,449				34,818		34,749		(.2)
	US$ denominated		149,801		157,717		167,541		202,905		215,171				47,170		53,853		14.2
	Net investment income		291,377		300,191		305,938		341,419		364,621				81,988		88,602		8.1
	Amortized hedge costs on foreign investments (2)		(25,858)		(28,938)		(22,816)		(8,391)		(13,155)				(2,946)		(7,671)		160.4
	Adjusted net investment income		265,519		271,253		283,122		333,028		351,466				79,042		80,931		2.4
	Other income excl. realized foreign
	currency gains (losses)		4,636		4,869		4,497		4,512		4,442				1,074		1,166

	Total adjusted revenues		1,678,852		1,668,734		1,640,827		1,577,203		1,553,988				385,000		369,145		(4.1)

Benefits and claims:
	Benefits and claims, net
	Incurred claims -direct		724,556		727,491		734,471		743,247		788,602				203,355		215,238
	Incurred claims -assumed (ceded)		(51,892)		(45,657)		(37,806)		(31,798)		(36,170)				(8,290)		(16,877)
	Increase in FPB -direct		313,343		292,444		260,200		149,084		73,592				15,788		(7,011)
	Increase in FPB -assumed (ceded)		(2,000)		(6,497)		(11,377)		(11,425)		(5,618)				(2,260)		2,647
	Total benefits and claims, net, excluding reserve remeasurement		N/A		N/A		N/A		849,108		820,405				208,593		193,997
	Reserve remeasurement (gain) loss		N/A		N/A		N/A		(6,879)		(13,337)				(1,703)		(1,727)
	Total benefits and claims, net		984,007		967,782		945,487		842,229		807,068				206,890		192,270		(7.1)

Adjusted expenses:
	Amortization of deferred policy
	acquisition costs		78,459		77,286		68,818		43,131		44,123				10,886		11,281		3.6
	Insurance commissions		81,045		79,661		79,036		77,449		73,482				18,650		18,215		(2.3)
	Insurance and other expenses		181,139		189,203		199,606		202,586		198,493				47,559		43,129		(9.3)
	Total adjusted expenses		340,643		346,150		347,460		323,166		316,097				77,095		72,625


	Total benefits and adjusted expenses		1,324,651		1,313,932		1,292,947		1,165,395		1,123,165				283,985		264,895		(6.7)

	Pretax adjusted earnings	¥	354,201	¥	354,802	¥	347,881	¥	411,808	¥	430,823			¥	101,015	¥	104,251		3.2


	(1) Includes the net interest cash flows from derivatives associated with certain investment strategies
	(2) See non-U.S. GAAP financial measures for the definition of amortized hedge costs/income

Aflac Japan


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

		Years Ended December 31,										3 Months Ended March 31,
																		%
		2018		2019		2020		2021		2022			2022	2023		Change
Revenues:
	Net earned premiums
	Gross premiums	$	13,307	$	13,304	$	13,193	$	11,765	$	9,558			$	2,731	$	2,318
	Assumed (ceded)		(546)		(532)		(524)		(463)		(372)				(106)		(148)
	Total net earned premiums		12,762		12,772		12,670		11,301		9,186				2,625		2,170		(17.3)
	Net investment income (1)
	Yen denominated		1,283		1,307		1,296		1,262		1,140				299		263		(12.0)
	US$ denominated		1,356		1,446		1,569		1,845		1,641				406		407		.2
	Net investment income		2,639		2,753		2,865		3,107		2,782				705		669		(5.1)
	Amortized hedge costs on foreign investments (2)		(236)		(257)		(206)		(76)		(112)				(26)		(58)		123.1
	Adjusted net investment income		2,403		2,496		2,659		3,031		2,669				680		611		(10.1)
	Other income excl. realized foreign
	currency gains (losses)		41		45		42		41		35				9		9

	Total adjusted revenues		15,206		15,313		15,371		14,373		11,889				3,314		2,790		(15.8)

Benefits and claims
	Benefits and claims, net
	Incurred claims -direct		6,566		6,671		6,875		6,776		6,038				1,748		1,626
	Incurred claims -assumed (ceded)		(471)		(419)		(354)		(290)		(275)				(71)		(127)
	Increase in FPB -direct		2,836		2,684		2,437		1,356		562				136		(52)
	Increase in FPB -assumed (ceded)		(18)		(60)		(107)		(104)		(43)				(19)		19
	Total benefits and claims, net, excluding reserve remeasurement		N/A		N/A		N/A		7,738		6,282				1,794		1,466
	Reserve remeasurement (gain) loss		N/A		N/A		N/A		(62)		(91)				(14)		(13)
	Total benefits and claims, net		8,913		8,877		8,851		7,675		6,191				1,779		1,453		(18.3)

Adjusted expenses:
	Amortization of deferred policy
	acquisition costs		710		709		644		393		338				94		85		(9.6)
	Insurance commissions		735		731		740		706		563				161		138		(14.3)
	Insurance and other expenses		1,640		1,734		1,873		1,843		1,517				409		326		(20.3)
	Total adjusted expenses		3,085		3,174		3,257		2,942		2,417				664		549

	Total benefits and adjusted expenses		11,998		12,051		12,108		10,618		8,609				2,443		2,002		(18.1)

	Pretax adjusted earnings	$	3,208	$	3,261	$	3,263	$	3,755	$	3,281			$	870	$	788		(9.4)


	(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,											March 31,
	2018		2019		2020		2021		2022		2022			2023

Assets:

Investments and cash	¥	12,031,549	¥	12,847,994	¥	13,080,154	¥	13,645,902	¥	12,777,746		¥	13,419,598		¥	12,976,202
Receivables, net of allowance for credit losses		37,083		28,219		20,782		22,439		23,138			27,184			25,467
Accrued investment income		66,350		65,485		62,722		67,493		76,489			64,048			68,075
Deferred policy acquisition costs		708,638		721,341		723,579		745,510		766,506			750,554			771,279
Other assets		292,335		308,411		320,351		386,832		387,065			418,935			682,018

Total assets	¥	13,135,956	¥	13,971,450	¥	14,207,588	¥	14,868,176	¥	14,030,944		¥	14,680,319		¥	14,523,041


Liabilities and Shareholders' Equity:

Future policy benefits	¥	8,637,152	¥	8,924,868	¥	9,175,501	¥	11,755,704	¥	10,315,140		¥	11,435,723		¥	10,768,070
Policy and contract claims		317,043		315,477		328,778		—		28			—			620
Unearned premiums		552,419		453,133		361,010		284,045		227,732			268,004			218,038
Other policyholders' funds		793,148		801,588		808,429		877,690		880,989			885,236			889,926
Income taxes (prim. deferred)		510,528		618,901		478,969		36,166		114,688			53,639			101,778
Other liabilities		194,949		357,135		253,219		502,633		575,554			513,983			694,739
Shareholders' equity		2,130,718		2,500,349		2,801,682		1,411,938		1,916,812			1,523,733			1,849,870

Total liabilities & shareholders' equity	¥	13,135,956	¥	13,971,450	¥	14,207,588	¥	14,868,176	¥	14,030,944		¥	14,680,319		¥	14,523,041

Aflac Japan


Balance Sheets
(In Millions)


	December 31,										March 31,
	2018		2019		2020		2021		2022			2022			2023

Assets:

Investments and cash	$	108,392	$	117,269	$	126,378	$	118,639	$	96,290			$	109,646		$	97,178
Receivables, net of allowance for credit losses		334		258		201		195		174				222			191
Accrued investment income		598		598		606		587		576				523			510
Deferred policy acquisition costs		6,384		6,584		6,991		6,482		5,776				6,132			5,776
Other assets		2,634		2,815		3,095		3,363		2,917				3,423			5,108

Total assets	$	118,342	$	127,523	$	137,271	$	129,266	$	105,734			$	119,947		$	108,762


Liabilities and Shareholders' Equity:

Future policy benefits	$	77,812	$	81,461	$	88,652	$	102,206	$	77,733			$	93,437		$	80,642
Policy and contract claims		2,856		2,879		3,177		—		—				—			5
Unearned premiums		4,977		4,136		3,488		2,470		1,716				2,190			1,633
Other policyholders' funds		7,145		7,316		7,811		7,631		6,639				7,233			6,665
Income taxes (prim. deferred)		4,601		5,650		4,630		314		781				427			681
Other liabilities		1,756		3,260		2,447		4,369		4,337				4,200			5,203
Shareholders' equity		19,194		22,820		27,068		12,276		14,528				12,461			13,935

Total liabilities & shareholders' equity	$	118,342	$	127,523	$	137,271	$	129,266	$	105,734			$	119,947		$	108,762

Aflac Japan


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


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

	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		1,239,663	(8.4)		333,028	17.6		1,577,203	(3.9)		842,229	(10.9)		43,131	(37.3)		323,166		(7.0)		411,808		18.4
	2022		1,198,079	(3.4)		351,466	5.5		1,553,988	(1.5)		807,068	(4.2)		44,123	2.3		316,097		(2.2)		430,823		4.6


2021	1		313,769	(8.5)		74,621	6.9		389,679	(5.9)		215,445	(9.5)		10,534	(44.1)		77,715		(6.3)		96,519		3.8
	2		311,733	(8.3)		86,681	27.4		399,488	(2.4)		212,617	(10.4)		10,700	(35.9)		79,234		(3.0)		107,637		19.4
	3		307,350	(8.7)		84,035	19.7		392,463	(3.8)		206,023	(14.2)		10,762	(32.7)		80,760		(8.9)		105,680		33.5
	4		306,812	(8.1)		87,690	16.8		395,573	(3.5)		208,143	(9.5)		11,134	(35.6)		85,457		(9.3)		101,973		19.1

2022	1		304,884	(2.8)		79,042	5.9		385,000	(1.2)		206,890	(4.0)		10,886	3.3		77,095		(.8)		101,015		4.7
	2		302,213	(3.1)		94,004	8.4		397,358	(.5)		204,807	(3.7)		10,964	2.5		79,022		(.3)		113,529		5.5
	3		293,667	(4.5)		92,241	9.8		387,113	(1.4)		196,121	(4.8)		11,073	2.9		77,498		(4.0)		113,494		7.4
	4		297,315	(3.1)		86,180	(1.7)		384,517	(2.8)		199,250	(4.3)		11,201	.6		82,482		(3.5)		102,785		.8

2023	1		287,048	(5.9)		80,931	2.4		369,145	(4.1)		192,270	(7.1)		11,281	3.6		72,625		(5.8)		104,251		3.2

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

	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	67.9	58.7	3.5	20.5	73.9	26.1
	2022	94.1	67.4	58.5	3.7	20.3	72.3	27.7
	2023 YTD	93.9	67.0	—	3.9	19.7	71.8	28.2

2021	1	95.0	68.7	59.6	3.4	19.9	75.2	24.8
	2	94.7	68.2	59.0	3.4	19.8	73.1	26.9
	3	94.5	67.0	57.8	3.5	20.6	73.1	26.9
	4	94.3	67.8	58.4	3.6	21.6	74.2	25.8

2022	1	94.3	67.9	58.5	3.6	20.0	73.8	26.2
	2	94.3	67.8	58.5	3.6	19.9	71.4	28.6
	3	94.3	66.8	59.4	3.8	20.0	70.7	29.3
	4	94.1	67.0	57.7	3.8	21.5	73.3	26.7

2023	1	93.9	67.0	57.7	3.9	19.7	71.8	28.2

(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

	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		1,360.6	(4.7)		48,977	8.6		54,764	7.7
	2022		1,301.0	(4.4)		47,998	(2.0)		54,765	—



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		1,360.6	(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
	4		1,301.0	(4.4)		13,308	1.7		16,224	11.4

2023	1		1,281.4	(4.8)		10,952	2.6		13,213	10.8

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
	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
	2022	30.9	56.5	14.6	26.6	.7	1.3	.2	.3	1.9	3.5	4.5	8.1	2.0	3.7	54.8


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	.1	.3	.1	.7	1.1	9.0	.5	4.5	11.9
	2	6.8	53.4	3.8	29.9	.3	2.2	—	.2	.1	.8	1.2	9.2	.6	4.3	12.7
	3	8.4	60.1	3.7	26.4	.2	1.2	—	.2	.1	.6	1.0	7.7	.5	3.8	13.9
	4	9.5	58.2	3.4	20.8	.1	.8	.1	.4	1.6	10.1	1.1	7.2	.4	2.5	16.2

2023	1	7.9	59.9	2.7	20.8	.1	.6	.1	.6	1.2	8.9	1.0	7.3	.2	1.9	13.2

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
		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
		2022	6,159	1,239	359	7,757	49.5	46.5	4.0	110,259	38
		2023 YTD	6,056	1,232	359	7,647	50.9	45.4	3.7	109,769	4

	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
		4	6,159	1,239	359	7,757	51.2	45.4	3.4	110,259	8

	2023	1	6,056	1,232	359	7,647	50.9	45.4	3.7	109,769	4

(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

	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)
	2022	132.70	N/A	130.17	(15.7)


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)
	4	132.70	141.87	130.17	(15.7)

2023	1	133.53	132.30	132.30	(12.2)









	(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 March 31,
																									%
		2018			2019			2020			2021			2022				2022	2023			Change
Revenues:
	Total net earned premiums		$	208		$	200		$	194		$	180		$	145				$	41		$	91		122.0
	Net investment income (1)		77			88			80			(73)			30					4			7			75.0
	Amortized hedge income (2)		36			89			97			57			68					11			29			163.6
	Adjusted net investment income		113			177			177			(16)			98					15			36			140.0
	Other income		18			15			13			11			24					18			2			(88.9)

	Total adjusted revenues		339			393			384			175			267					74			129			74.3

Benefits and expenses:
	Total net benefits and claims		199			194			180			161			141					37			46			24.3
	Interest expense		120			133			164			165			162					40			33			(17.5)
	Other adjusted expenses		159			137			155			142			181					40			57			42.5

	Total benefits and adjusted expenses		478			464			499			469			485					116			136			17.2

	Pretax adjusted earnings		$	(139)		$	(72)		$	(115)		$	(293)		$	(218)				$	(42)		$	(7)		83.3


	(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $51 and $12 for the three-month periods ended March 31, 2023, and 2022, respectively, is included as a reduction to net investment income. Tax credits on these investments of $52 and $16 for the three-month periods ended March 31, 2023, and 2022, 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.

First Quarter 2023

Earnings Call

Video Update

Max K. Brodén

April 26, 2023

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.