AFLAC INCAFL
AFLAC INC Segments Disclosure
BUSINESS SEGMENT INFORMATION AND SELECTED FOREIGN CURRENCY TRANSLATION ITEMS
The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. In addition, the Parent Company, other operating business units that are not individually reportable, reinsurance activities, including internal reinsurance activity with Aflac Re, and other business activities not included in Aflac Japan or Aflac U.S., as well as intercompany eliminations, are included in Corporate and other. The Company does not allocate corporate overhead expenses to business segments.
The Company’s reportable segments are regularly reviewed by the Company's CODM, Senior Executive Vice President and Chief Financial Officer, in deciding how to allocate resources and in assessing performance. The Company's CODM reviews and approves the annual budget and operating forecast, which allocates resources to segments and serves as a key benchmark for tracking performance and accountability of each segment's operating results. The Company’s CODM evaluates the performance of the segments using, in comparison to the annual budget, operating forecast and historical results, a financial performance measure called pretax adjusted earnings and believes this financial performance measure to be vitally important for understanding the underlying profitability drivers and trends of the Company’s insurance business.
•Pretax adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that are outside management's control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. The Company excludes income taxes related to operations to arrive at pretax adjusted earnings.
◦Adjusted revenues are U.S. GAAP total revenues excluding net investment gains and losses, except for amortized hedge costs/income related to foreign currency exposure management strategies and net interest income/expense from derivatives associated with certain investment strategies, which are reclassified from net investment gains (losses) and included in adjusted earnings as a component of adjusted net investment income when analyzing operations.
◦Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company’s underlying business performance.
Aflac Japan's adjusted revenues accounted for 53% of the Company's total adjusted revenues in 2025, compared with 55% in 2024 and 60% in 2023. The percentage of the Company's total assets attributable to Aflac Japan was 76% at December 31, 2025, compared with 77% at December 31, 2024.
Information regarding operations by reportable segment and Corporate and other for the years ended December 31 is presented in the following tables.
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Aflac Japan: | |||||||||||||||||||||||||||||||||||
Net earned premiums (1) | $ | 6,744 | $ | 6,930 | $ | 8,047 | |||||||||||||||||||||||||||||
| Adjusted net investment income | 2,581 | 2,701 | 2,582 | ||||||||||||||||||||||||||||||||
| Other income | 32 | 28 | 35 | ||||||||||||||||||||||||||||||||
| Total adjusted revenue Aflac Japan | 9,357 | 9,659 | 10,664 | ||||||||||||||||||||||||||||||||
| Aflac U.S.: | |||||||||||||||||||||||||||||||||||
| Net earned premiums | 5,999 | 5,829 | 5,675 | ||||||||||||||||||||||||||||||||
| Adjusted net investment income | 830 | 847 | 820 | ||||||||||||||||||||||||||||||||
| Other income | 74 | 63 | 128 | ||||||||||||||||||||||||||||||||
| Total adjusted revenue Aflac U.S. | 6,903 | 6,739 | 6,623 | ||||||||||||||||||||||||||||||||
Corporate and other (2) | 1,277 | 1,007 | 460 | ||||||||||||||||||||||||||||||||
| Total adjusted revenues | 17,537 | 17,405 | 17,747 | ||||||||||||||||||||||||||||||||
| Net investment gains (losses) | (572) | 1,271 | 590 | ||||||||||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||||||||
| Amortized hedge costs | 45 | 26 | 157 | ||||||||||||||||||||||||||||||||
| Amortized hedge income | (98) | (113) | (121) | ||||||||||||||||||||||||||||||||
| Net interest (income) expense from derivatives associated with certain investment strategies | 252 | 338 | 328 | ||||||||||||||||||||||||||||||||
| Total revenues | $ | 17,164 | $ | 18,927 | $ | 18,701 | |||||||||||||||||||||||||||||
(1) Includes a gain (loss) of $(52), $(81) and $20 in 2025, 2024 and 2023, respectively, related to remeasurement of the deferred profit liability for limited-payment contracts.
(2) The change in value of federal historic rehabilitation and solar investments in partnerships of $65, $165 and $343 in 2025, 2024 and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $69, $164 and $334 in 2025, 2024 and 2023, respectively, have been reported as an income tax benefit in the consolidated statements of earnings. See Note 1 for additional information on these investments.
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
| Adjusted revenues: | |||||||||||||||||||||||||||||||||||
Aflac Japan (1) | $ | 9,357 | $ | 9,659 | $ | 10,664 | |||||||||||||||||||||||||||||
| Aflac U.S. | 6,903 | 6,739 | 6,623 | ||||||||||||||||||||||||||||||||
Corporate and other (2) | 1,277 | 1,007 | 460 | ||||||||||||||||||||||||||||||||
| Total adjusted revenues | 17,537 | 17,405 | 17,747 | ||||||||||||||||||||||||||||||||
| Benefits and adjusted expenses: | |||||||||||||||||||||||||||||||||||
| Aflac Japan: | |||||||||||||||||||||||||||||||||||
| Benefits and claims, excluding reserve remeasurement | 4,528 | 4,761 | 5,409 | ||||||||||||||||||||||||||||||||
| Reserve remeasurement (gains) losses | (529) | (444) | (96) | ||||||||||||||||||||||||||||||||
| Total benefits and claims, net | 3,999 | 4,317 | 5,313 | ||||||||||||||||||||||||||||||||
| Adjusted expenses: | |||||||||||||||||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 323 | 321 | 326 | ||||||||||||||||||||||||||||||||
| Insurance commissions | 427 | 435 | 491 | ||||||||||||||||||||||||||||||||
| Insurance and other expenses | 1,168 | 1,092 | 1,300 | ||||||||||||||||||||||||||||||||
| Total benefits and adjusted expenses Aflac Japan | 5,917 | 6,165 | 7,430 | ||||||||||||||||||||||||||||||||
| Aflac U.S.: | |||||||||||||||||||||||||||||||||||
| Benefits and claims, excluding reserve remeasurement | 2,969 | 2,821 | 2,715 | ||||||||||||||||||||||||||||||||
| Reserve remeasurement (gains) losses | (132) | (95) | (284) | ||||||||||||||||||||||||||||||||
| Total benefits and claims, net | 2,837 | 2,726 | 2,431 | ||||||||||||||||||||||||||||||||
| Adjusted expenses: | |||||||||||||||||||||||||||||||||||
| Amortization of deferred policy acquisition costs | 551 | 530 | 490 | ||||||||||||||||||||||||||||||||
| Insurance commissions | 564 | 563 | 561 | ||||||||||||||||||||||||||||||||
| Insurance and other expenses | 1,530 | 1,501 | 1,640 | ||||||||||||||||||||||||||||||||
| Total benefits and adjusted expenses Aflac U.S. | 5,482 | 5,320 | 5,122 | ||||||||||||||||||||||||||||||||
| Corporate and other | 1,176 | 975 | 885 | ||||||||||||||||||||||||||||||||
| Total adjusted expenses | $ | 12,575 | $ | 12,460 | $ | 13,437 | |||||||||||||||||||||||||||||
| Pretax earnings: | |||||||||||||||||||||||||||||||||||
Aflac Japan (1) | $ | 3,440 | $ | 3,494 | $ | 3,234 | |||||||||||||||||||||||||||||
| Aflac U.S. | 1,421 | 1,419 | 1,501 | ||||||||||||||||||||||||||||||||
Corporate and other (2) | 101 | 32 | (425) | ||||||||||||||||||||||||||||||||
| Pretax adjusted earnings | 4,962 | 4,945 | 4,310 | ||||||||||||||||||||||||||||||||
| Other income (loss) | (54) | (23) | 39 | ||||||||||||||||||||||||||||||||
| Net investment gains (losses) | (572) | 1,271 | 590 | ||||||||||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||||||||
| Amortized hedge costs | 45 | 26 | 157 | ||||||||||||||||||||||||||||||||
| Amortized hedge income | (98) | (113) | (121) | ||||||||||||||||||||||||||||||||
| Net interest (income) expense from derivatives associated with certain investment strategies | 252 | 338 | 328 | ||||||||||||||||||||||||||||||||
| Impact of interest from derivatives associated with notes payable | (2) | (27) | (41) | ||||||||||||||||||||||||||||||||
| Total earnings before income taxes | $ | 4,533 | $ | 6,417 | $ | 5,262 | |||||||||||||||||||||||||||||
| Income taxes applicable to pretax adjusted earnings | $ | 954 | $ | 873 | $ | 577 | |||||||||||||||||||||||||||||
| Effect of foreign currency translation on after-tax adjusted earnings | 19 | (103) | (113) | ||||||||||||||||||||||||||||||||
(1) Includes a gain (loss) of $(52), $(81) and $20 for 2025, 2024 and 2023, respectively, related to remeasurement of the deferred profit liability for limited-payment contracts.
(2) The change in value of federal historic rehabilitation and solar investments in partnerships of $65, $165 and $343 in 2025, 2024 and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $69, $164 and $334 in 2025, 2024 and 2023, respectively, have been reported as an income tax benefit in the consolidated statements of earnings. See Note 1 for additional information on these investments.
Internal Reinsurance: Aflac Re is a Bermuda domiciled insurer that reinsures certain policies issued by Aflac Japan and is reported as a part of Corporate and other. Under these internal reinsurance transactions, Aflac Japan's net earned premiums are reduced by the amount of premiums ceded to Aflac Re. Aflac Re recorded net earned premiums of $692 million in 2025, $568 million in 2024 and $258 million in 2023 related to these reinsurance transactions with Aflac Japan. These internal reinsurance transactions have no financial statement impact on a consolidated basis, except for the effect of foreign currency accounting. For additional information on these internal reinsurance transactions, see Note 8.
Transfers of funds from Aflac Japan: Aflac Japan makes payments to the Parent Company for management fees and remittances of earnings. Information on transfers for each of the years ended December 31 is shown below. See Note 14 for information concerning restrictions on transfers from Aflac Japan.
| (In millions) | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
| Management fees | $ | 73 | $ | 69 | $ | 67 | |||||||||||||||||||||||||||||
| Profit remittances | 2,681 | 2,865 | 2,623 | ||||||||||||||||||||||||||||||||
| Total transfers from Aflac Japan | $ | 2,754 | $ | 2,934 | $ | 2,690 | |||||||||||||||||||||||||||||
Total Assets: The Company's total assets as of December 31 were as follows:
| (In millions) | 2025 | 2024 | ||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Aflac Japan | $ | 88,537 | $ | 90,210 | ||||||||||||||||||||||
| Aflac U.S. | 22,317 | 21,930 | ||||||||||||||||||||||||
| Corporate and other | 5,616 | 5,426 | ||||||||||||||||||||||||
| Total assets | $ | 116,470 | $ | 117,566 | ||||||||||||||||||||||
Receivables: Receivables consist primarily of monthly insurance premiums due from individual policyholders or their employers for payroll deduction of premiums, net of allowance for credit losses. Total receivables were $835 million and $779 million as of December 31, 2025 and 2024, respectively. The allowance for credit losses related to premiums receivable was $107 million and $108 million as of December 31, 2025 and 2024, respectively. At December 31, 2025, $167 million, or 20.0% of total receivables, were related to Aflac Japan's operations, compared with $197 million, or 25.3%, at December 31, 2024.
Selected Foreign Currency Translation Items
Japanese Yen-Translation Effects: The following table shows the Japanese yen/U.S. dollar (yen/dollar) exchange rates used for or during the periods ended December 31. For comparison, exchange effects for the current year were calculated using the yen/dollar exchange rate that was used in the prior year.
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Statements of Earnings: | |||||||||||||||||||||||||||||||||||
Weighted-average yen/dollar exchange rate (1) | 149.32 | 150.97 | 140.57 | ||||||||||||||||||||||||||||||||
| Yen percent strengthening (weakening) | 1.1 | % | (6.9) | % | (7.4) | % | |||||||||||||||||||||||||||||
| Exchange effect on pretax adjusted earnings (in millions) | $ | 24 | $ | (125) | $ | (131) | |||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Balance Sheets: | |||||||||||||||||||||||
Yen/dollar exchange rate at December 31(1) | 156.56 | 158.18 | |||||||||||||||||||||
| Yen percent strengthening (weakening) | 1.0 | % | (10.3) | % | |||||||||||||||||||
| Exchange effect on total assets (in millions) | $ | 878 | $ | (6,127) | |||||||||||||||||||
| Exchange effect on total liabilities (in millions) | (2,159) | (9,624) | |||||||||||||||||||||
(1) Rates are based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.