8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT


PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934


DATE OF REPORT (Date of earliest event reported) July 27, 2004

AFLAC INCORPORATED

(Exact name of Registrant as specified in its charter)

Commission File No. 1-7434

GEORGIA	58-1167100
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)
1932 Wynnton Road, Columbus, Georgia	31999
(Address of principal executive offices)	(Zip Code)

706-323-3431

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

ITEM 9.  REGULATION FD DISCLOSURE

ITEM 12.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

     AFLAC Incorporated is providing its press release dated July 27, 2004 in which it reported its second quarter results and also its Second Quarter Report to Shareholders herein as Exhibits 99.1 and 99.2 for reporting under Items 9 and 12.

1

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AFLAC INCORPORATED
/s/ Ralph A. Rogers, Jr.	July 27, 2004
(Ralph A. Rogers, Jr.)
Senior Vice President, Financial Services
Chief Accounting Officer

2

EXHIBITS FILED WITH CURRENT FORM 8-K:

99.1	-	Press release of AFLAC Incorporated dated July 27, 2004
99.2	-	Second Quarter Report to Shareholders 2004

3

EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

AFLAC INCORPORATED ANNOUNCES SECOND QUARTER RESULTS,
DECLARES THIRD QUARTER CASH DIVIDEND

COLUMBUS, Georgia - July 27, 2004 -- AFLAC Incorporated today reported its second quarter results. Total revenues, which reflected a stronger average yen/dollar exchange rate, were $3.2 billion in the second quarter, or 13.0% higher than a year ago. Net earnings were $265 million, or $.51 per diluted share, compared with $248 million, or $.48 per diluted share, a year ago. Net earnings in the second quarter of 2004 included a loss of $23 million, or $.04 per diluted share, from the change in fair value of the interest rate component of the cross-currency swaps related to the company's senior notes as required by SFAS 133. In the second quarter of 2003, net earnings benefited by $13 million, or $.03 per diluted share, from the effect of SFAS 133. Realized investment losses were $.01 per diluted share in the second quarters of 2004 and 2003.

We believe that an analysis of operating earnings, a non-GAAP financial measure, is vitally important to an understanding of AFLAC's underlying profitability drivers. We define operating earnings as the profits we derive from our operations before realized investment gains and losses, the change in the fair value of the interest rate component of cross-currency swaps as required by SFAS 133, and nonrecurring items.

Management uses operating earnings to evaluate the financial performance of AFLAC's insurance operations because realized gains and losses, the impact of SFAS 133 and nonrecurring items tend to be driven by general economic conditions and events and therefore obscure the underlying fundamentals and trends in AFLAC's insurance operations.

Operating earnings in the second quarter were $291 million, compared with $240 million a year ago. On a per-share basis, operating earnings rose 21.7% to $.56 per diluted share, compared with $.46 per share in the second quarter of 2003. Excluding the benefit of $.02 per share from the stronger yen to the dollar, operating earnings per share increased 17.4% for the quarter.

For the six months of 2004, total revenues rose 14.9% to $6.5 billion. Net earnings were $581 million, or $1.12 per diluted share, compared with $486 million, or $.93 per share, for the first six months of 2003. Operating earnings for the six months were $587 million, or $1.13 per diluted share, compared with $483 million, or $.92 per share, in 2003.

The board of directors declared the third quarter cash dividend. The third quarter dividend of $.095 per share is payable on September 1, 2004, to shareholders of record at the close of business on August 13, 2004.

Commenting on the company's second quarter and first-half results, Chairman and Chief Executive Officer Daniel P. Amos stated: "Overall, we are pleased with our results so far in 2004. We are especially pleased that operating earnings per share growth before currency translation was in line with our annual target of a 17% increase.

"AFLAC U.S. produced total new annualized premium sales in the second quarter of $281 million, or 6.4% above the second quarter of 2003. Accident/disability remained the principal contributor to new sales in the quarter, accounting for approximately 52% of second quarter sales. For the six months, new sales were up 10.0% to $573 million. Our first-half sales results were in line with our annual sales target of a 10% to 12% increase. And we believe the changes we made to our coordinator base and training in past quarters will enable us to achieve our target for the full year.

"AFLAC Japan's total new annualized premium sales in the second quarter declined 2.3% from a year ago to 32.2 billion yen, or $294 million. For the six months, total new annualized premium sales were up .9% to 60.5 billion yen, or $557 million. Sales growth continued to be impacted by significant declines in Rider MAX conversions and sales from Dai-ichi Mutual Life, compared with 2003. Excluding conversions and the contribution from Dai-ichi, sales were up 2.5% for the quarter and 5.8% for the first six months. We indicated in the first quarter that we expect better sales growth in the second half of the year. We continue to believe that our sales growth will improve. However, based on our first-half sales results, it appears that sales will likely be up 3% to 7% for the full year.

"Although we are disappointed that our sales results were not better in Japan, we are convinced that we will see better growth in the second half of the year. EVER continues to be the best-selling stand-alone medical product in Japan's life insurance industry and we will introduce two new products in August. We are also encouraged that investment yields in Japan have risen significantly this year, which should benefit future investment income growth. And the persistency of our Japanese business has improved to its highest level since the end of 2001. Even though we view 2004 as a transition year for AFLAC U.S., we still expect to see double-digit sales growth for the year. With the significant changes we made to our sales force infrastructure and training programs last year, and a renewed focus on new agent recruiting this year, we believe we are positioning AFLAC U.S. for even faster sales growth in 2005.

"Our goal for 2004 is to increase operating earnings per diluted share 17% excluding the impact of the yen. For 2005, our objective is to increase operating earnings per diluted share 15% excluding the impact of foreign currency translation. And in May we established a 2006 objective of a 15% increase in operating earnings per diluted share before the effect of currency. We believe our earnings objectives reflect the opportunities we see for continued growth and our strong competitive position in the United States and Japan. More importantly, we believe our objectives are achievable."

AFLAC Incorporated (NYSE - AFL) is an international holding company. A Fortune 500^® company, AFLAC insures more than 40 million people worldwide. It is a leading writer of insurance products marketed at the worksite in the United States, offering policies to employees at more than 307,600 payroll accounts. The company insures one out of four Japanese households and is the largest life insurer in Japan in terms of individual insurance policies in force. In January 2004, AFLAC was included in Fortune magazine's list of "The 100 Best Companies to Work for" for the sixth consecutive year. Also in January 2004, AFLAC was named to Forbes magazine's "Platinum 400 List of Best Big Companies in America" for the fifth consecutive year. In March 2004, Fortune magazine included AFLAC in its annual listing of "America's Most Admired Companies." AFLAC's Internet address is aflac.com.

A copy of AFLAC's second quarter report to shareholders can be found on the investor relations page of aflac.com.

AFLAC Incorporated will webcast its second quarter conference call on the investor relations page of aflac.com at 9:00 a.m. (EDT), Wednesday, July 28.

AFLAC INCORPORATED AND SUBSIDIARIES CONSOLIDATED SUMMARY OF EARNINGS
(UNAUDITED-IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)

THREE MONTHS ENDED JUNE 30,				2004			2003		% Change
Total revenues			$	3,233		$	2,861		13.0	%
Operating earnings				291			240		21.5
	Reconciling items, net of tax:
		Realized investment gains (losses)		(3	)		(5	)
		SFAS 133		(23	)		13
Net earnings				265			248		6.7
Operating earnings per share - diluted				.56			.46		21.7
	Reconciling items, net of tax:
		Realized investment gains (losses)		(.01	)		(.01	)
		SFAS 133		(.04	)		.03
Net earnings per share - diluted				.51			.48		6.3
Net earnings per share - basic				.52			.48		8.3
Cash dividends paid per share				.095			.07		35.7
Shares used to compute earnings per share (000):
	Basic			508,353			513,728		(1.0	)
	Diluted			517,860			522,713		(1.0	)
SIX MONTHS ENDED JUNE 30,
Total revenues			$	6,513		$	5,669		14.9	%
Operating earnings				587			483		21.4
	Reconciling items, net of tax:
		Realized investment gains (losses)		3			(10	)
		SFAS 133		(12	)		13
		Japan pension obligation transfer		3			-
Net earnings				581			486		19.5
Operating earnings per share - diluted				1.13			.92		22.8
	Reconciling items, net of tax:
		Realized investment gains (losses)		-			(.02	)
		SFAS 133		(.02	)		.03
		Japan pension obligation transfer		.01			-
Net earnings per share - diluted				1.12			.93		20.4
Net earnings per share - basic				1.14			.94		21.3
Cash dividends paid per share				.19			.14		35.7
Shares used to compute earnings per share (000):
	Basic			509,138			514,144		(1.0	)
	Diluted			518,607			523,588		(1.0	)

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 discussed. We desire 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 oral discussions 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," 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.

We caution readers that the following factors, in addition to other factors mentioned from time to time in our reports filed with the SEC, could cause actual results to differ materially from those contemplated by the forward-looking statements: legislative and regulatory developments; assessments for insurance company insolvencies; competitive conditions in the United States and Japan; new product development; ability to attract and retain qualified sales associates; ability to repatriate profits from Japan; changes in U.S. and/or Japanese tax laws or accounting requirements; credit and other risks associated with AFLAC's investment activities; significant changes in interest rates; fluctuations in foreign currency rates; deviations in actual experience from pricing and reserving assumptions; level and outcome of litigation; downgrades in the company's credit rating; changes in rating agency policies or practices; subsidiary's ability to pay dividends to parent company; and general economic conditions in the United States and Japan.

Analyst and investor contact - Kenneth S. Janke Jr., (800) 235-2667 - option 3, FAX: (706) 324-6330, or kjanke@aflac.com

Media contact - Laura Kane, (706) 596-3493, FAX: (706) 320-2288, or lkane@aflac.com

EX-99.2

EXHIBIT 99.2

Second


Quarter


Report


To


Shareholders


2004

Six Months Ended


June 30, 2004

ASK ABOUT IT AT WORK

HIGHLIGHTS

• Operating earnings per share on a diluted basis increased 17.4% for the second quarter excluding the effect of foreign currency translation (including the effect of the yen, operating earnings per share were up 21.7%).
• We purchased 1.3 million of AFLAC's shares in the second quarter.
• In May we established a target for increasing operating earnings per diluted share 15% in 2006 before the effect of currency translation.

TO OUR SHAREHOLDERS:

     With the first half of the year complete, we remain very pleased with the financial performance of AFLAC U.S. and AFLAC Japan. Most importantly, we believe we are well-positioned to achieve our primary financial objective for 2004 of a 17% increase in operating earnings per share before the impact of currency translation.

SECOND QUARTER RESULTS

     The stronger yen/dollar exchange rate enhanced the growth rates of our financial results in the second quarter. Total revenues rose 13.0% to $3.2 billion. Net earnings were $265 million, or $.51 per diluted share, compared with $248 million, or $.48 per share, a year ago. Net earnings in the second quarter of 2004 included realized investment losses of $3 million, or $.01 per share, compared with realized investment losses of $5 million, or $.01 per diluted share, a year ago. Net earnings in the second quarter also included a loss of $23 million, or $.04 per diluted share, from the change in fair value of the interest rate component of the cross-currency swaps related to the company's senior notes, as required by SFAS 133. In the second quarter of 2003, SFAS 133 benefited net earnings by $13 million, or $.03 per diluted share.

     We believe that an analysis of operating earnings, a non-GAAP financial measure, is vitally important to an understanding of AFLAC's underlying profitability drivers. We define operating earnings as the profits we derive from our operations before realized investment gains and losses, the change in the fair value of the interest rate component of cross-currency swaps as required by SFAS 133, and nonrecurring items.

     Management uses operating earnings to evaluate the financial performance of AFLAC's insurance operations because realized gains and losses, the impact of SFAS 133 and nonrecurring items tend to be driven by general economic conditions and events and therefore can obscure the underlying fundamentals and trends in AFLAC's insurance operations. A reconciliation of operating earnings to net earnings appears on page six.

     Furthermore, because a significant portion of our business is in Japan, we believe it is equally important to understand the impact on operating earnings from translating Japanese yen into U.S. dollars. We translate AFLAC Japan's yen-denominated income statement from yen into dollars using an average exchange rate for the reporting period, and we translate the balance sheet using the exchange rate at the end of the period. However, except for a limited number of transactions, we do not actually convert yen into dollars. As a result, we view foreign currency translation as a financial reporting issue for AFLAC and not an economic event to our company or shareholders. Because the effect of translating yen into dollars distorts the rate of growth of our insurance operations, we also encourage readers of our financial statements to evaluate our financial performance excluding the impact of foreign currency translation. The chart on page four compares selected income statemen t items with and without foreign currency changes to illustrate the effect of the yen.

1

     Operating earnings in the second quarter of 2004 were $291 million, compared with $240 million in the second quarter of 2003. Operating earnings per diluted share rose 21.7% to $.56, compared with $.46 in the second quarter of 2003. The stronger yen/dollar exchange rate increased operating earnings per share by $.02 during the quarter. Excluding the impact of the stronger yen, operating earnings per share increased 17.4%, which was in line with our stated annual objective for operating earnings per share growth in 2004.

     During the second quarter, we acquired 1.3 million shares of AFLAC stock. As of June 30, 2004, we had approximately 33 million shares available for purchase under current repurchase authorizations from the board of directors.

SIX MONTH RESULTS

     Benefiting from the stronger yen, total revenues advanced 14.9% to $6.5 billion in the first half of 2004. Net earnings were $581 million, or $1.12 per diluted share, compared with $486 million, or $.93 per share, a year ago. Net earnings in the first half of 2004 included realized investment gains of $3 million, or nil per diluted share, compared with realized investment losses of $10 million, or $.02 per share, a year ago. Net earnings also included a loss of $12 million, or $.02 per diluted share, from the effect of SFAS 133, compared with a gain of $13 million, or $.03 per share for the first six months of 2003. In addition, net earnings in 2004 reflected a one-time gain of $3 million, or $.01 per diluted share, as a result of the transfer of certain AFLAC Japan pension obligations to the Japanese government.

     Operating earnings for the six months were $587 million, or $1.13 per diluted share, compared with $483 million, or $.92 per share in 2003. Excluding the $.05 per share benefit from the stronger yen, operating earnings per diluted share rose 17.4%.

AFLAC JAPAN

     AFLAC Japan's premium income in yen increased 6.8% in the quarter. Net investment income was up 2.4%. Investment income growth in yen terms was restrained by the stronger yen/dollar exchange rate because approximately 31% of AFLAC Japan's investment income is dollar-denominated. Total revenues rose 6.0%. During the second quarter, we temporarily stopped development of AFLAC Japan's new administrative system to evaluate the future direction and scope of the project. In doing so, we determined it was appropriate to write down 2.85 billion yen, or $26 million before taxes, in previously capitalized systems development costs. Despite these additional expenses, the pretax operating profit margin expanded from 13.3% to 14.2% due to continued improvement in the benefit ratio. As a result, pretax operating earnings increased 13.1% in the second quarter. For the six months in yen, premium income increased 6.6%, while net investment income rose .9%. Total revenues were up 5.6% and pretax operating earnings grew 11.7%.

     The average yen/dollar exchange rate of 109.73 in the second quarter was 8.0% stronger than the average rate of 118.49 in the second quarter of 2003. For the six months, the average exchange rate was 108.52, or 9.4% stronger than the rate of 118.71 a year ago. The strengthening of the yen for the quarter and the first half of the year magnified the growth rates of AFLAC Japan as reported in dollars.

     Benefiting from the stronger yen, second-quarter premium income in dollars increased 15.3% to $2.0 billion. Net investment income was up 10.6% to $385 million. Total revenues rose 14.5% to $2.4 billion. Pretax operating earnings were $344 million, an increase of 22.1% from a year ago. For the six months, premium income rose 16.7% to $4.1 billion. Net investment income was up 10.4% to $761 million. Total revenues increased 15.5% to $4.9 billion. Pretax operating earnings were $693 million, or 22.2% higher than a year ago.

2

     Investment yields in Japan improved in the second quarter of 2004. For example, the yield of a composite index of 20-year Japanese government bonds rose from an average of 1.87% in the first quarter to an average of 2.18% in the second quarter. By the end of June, the yield on the 20-year Japanese government bond index was at its highest level since the fourth quarter of 2000. During the second quarter, we purchased yen-denominated investments at an average yield of 3.51%. Including dollar-denominated securities, our new money yield for the quarter was 3.63%. As of July 23, 2004, we had invested, or committed to invest, approximately 75% of our expected 2004 cash flow at an average yield of 3.21%.

     AFLAC Japan's total new annualized premium sales in the second quarter declined 2.3% from a year ago to 32.2 billion yen, or $294 million. For the six months, total new annualized premium sales were up .9% to 60.5 billion yen, or $557 million. As we expected, sales growth continued to be impacted by significant declines in Rider MAX conversions and sales from Dai-ichi Mutual Life, compared with 2003. Excluding conversions and the contribution from Dai-ichi, sales were up 2.5% for the quarter and 5.8% for the first six months. Our stand-alone supplemental medical policy, EVER, remained the number one medical product in the life insurance industry in terms of policy sales during the quarter. And it was the top contributor to our sales in the quarter. Stand-alone medical sales represented 30% of total new annualized premium sales and increased 12% over the second quarter of 2003. We indicated in the first quarter that we expect better sales growth in the second half of th e year. We continue to believe that sales growth will improve. However, based on our first-half sales results, it appears that sales will likely be up 3% to 7% for the full year.

AFLAC U.S.

     AFLAC U.S. produced premium income of $726 million in the second quarter, an increase of 14.0% over a year ago. Net investment income rose 12.7% to $98 million. Total revenues increased 13.8% to $827 million. Pretax operating earnings were up 16.8% to $121 million. For the six months, premium income rose 13.9% to $1.4 billion, and net investment income was up 11.7% to $195 million. Total revenues increased 13.6% to $1.6 billion. Pretax operating earnings climbed 15.6% to $244 million.

     AFLAC U.S. produced total new annualized premium sales in the second quarter of $281 million, or 6.4% above the second quarter of 2003. Accident/disability remained the principal contributor to new sales, accounting for approximately 52% of second quarter sales. For the six months, new sales were up 10.0% to $573 million. Our first-half sales results were in line with our annual sales target of a 10% to 12% increase. And we believe the changes we made to our coordinator base and training in past quarters will enable us to achieve our target for the full year.

     With our sales management infrastructure expanded and new training programs in place, our focus is to now stimulate recruiting. Recruitment of new sales associates declined 5.2% in the second quarter, compared with a year ago. However, we did add more than 6,000 new sales associates in the quarter, which was higher than the number recruited in the first quarter. At the end of the second quarter, AFLAC U.S. was represented by 58,400 licensed sales associates, which was 2.3% higher than a year ago. We expect to see better growth in the number of sales associates as the year progresses.

DIVIDEND

     The board of directors declared the third quarter cash dividend. The third quarter dividend of $.095 per share is payable on September 1, 2004, to shareholders of record at the close of business on August 13, 2004.

3

OUTLOOK

     Overall, we are pleased with our results so far in 2004. We are especially pleased that operating earnings per share growth before currency translation was in line with this year's target of a 17% increase. Although we are disappointed that our sales results were not better in Japan, we are convinced that we will see better growth in the second half of the year. EVER continues to be the best-selling stand-alone medical product in Japan's life insurance industry and we will introduce two new products in August. We are also encouraged that investment yields in Japan have risen significantly this year, which should benefit future investment income growth. And the persistency of our Japanese business has improved to its highest level since the end of 2001. Even though we view 2004 as a transition year for AFLAC U.S., we still expect to see double-digit sales growth for the year. With the significant changes we made to our sales force infrastructure and training programs la st year, and a renewed focus on new agent recruiting this year, we believe we are positioning AFLAC U.S. for even faster sales growth in 2005.

     Our goal for 2004 is to increase operating earnings per diluted share 17% excluding the impact of the yen. For 2005, our objective is to increase operating earnings per diluted share 15% excluding the impact of foreign currency translation. And in May we established a 2006 objective of a 15% increase in operating earnings per diluted share before the effect of currency. We believe our earnings objectives reflect the opportunities we see for continued growth and our strong competitive position in both the United States and Japan. More importantly, we believe our objectives are achievable.

/s/ Daniel P. Amos

Daniel P. Amos

Chairman and Chief Executive Officer

July 27, 2004

Foreign Currency Translation			Three Months Results				Six Months Results
Effect on Operating Results			Including		Excluding		Including		Excluding
			Currency		Currency		Currency		Currency
Selected Percentage Changes (1)			Changes		Changes(2)		Changes		Changes(2)
(For the periods ended		Premium income	15.0	%	8.7	%	15.9	%	8.5	%
June 30, 2004 - unaudited)
		Net investment income	11.0		6.5		10.6		5.3
1	The numbers in this table are
	presented on an operating basis,	Total benefits and
	which is described on page 1.	expenses	13.2		7.0		14.1		6.8
2	Amounts excluding foreign	Operating earnings	21.5		17.1		21.4		16.1
	currency changes were
	determined using the same yen/	Operating earnings per
	dollar exchange rate for the	diluted share	21.7		17.4		22.8		17.4
	current period as the comparable
	period in the prior year.

4

Consolidated Statements of Earnings											AFLAC Incorporated and Subsidiaries
(In millions, except for share
and per-share amounts - unaudited)				Three Months Ended June 30,										Six Months Ended June 30,
					2004			2003		% Change				2004		2003		% Change
Revenues:
	Premiums, principally
	supplemental health insurance			$	2,768		$	2,407		15.0		%	$	5,541	$	4,779		15.9	%
	Net investment income				484			436		11.0				958		866		10.6
	Realized investment gains (losses)				(5	)		(6	)					1		(13	)
	Other income (losses)				(14	)		24						13		37
			Total revenues		3,233			2,861		13.0				6,513		5,669		14.9
Benefits and expenses:
	Benefits and claims				2,068			1,827		13.2				4,146		3,627		14.3
	Acquisition and operating
	expenses:
		Amortization of deferred
		policy acquisition costs			127			115						258		228
		Insurance commissions			308			282						619		555
		Insurance expenses			283			233						540		460
		Interest expense			6			5						11		11
		Other operating expenses			21			22						41		41
			Total acquisition and
			operating expenses		745			657		13.4				1,469		1,295		13.5
			Total benefits and expenses		2,813			2,484		13.2				5,615		4,922		14.1
			Earnings before income taxes		420			377		11.5				898		747		20.2
Income taxes					155			129						317		261
			Net earnings	$	265		$	248		6.7		%	$	581	$	486		19.5	%
Net earnings per share:
	Basic			$	.52		$	.48		8.3		%	$	1.14	$	.94		21.3	%
	Diluted				.51			.48		6.3				1.12		.93		20.4
Common shares used in computing EPS (In thousands):
	Basic			508,353			513,728			(1.0		)%		509,138	514,144			(1.0	)%
	Diluted			517,860			522,713			(1.0		)		518,607	523,588			(1.0	)
Cash dividends per share				$	.095		$	.07		35.7		%	$	.19	$	.14		35.7	%

5

Reconciliation of Operating to Net Earnings										AFLAC Incorporated and Subsidiaries
(In millions, except for per-share
amounts - unaudited)			Three Months Ended June 30,									Six Months Ended June 30,
				2004			2003		% Change				2004			2003		% Change
Operating earnings			$	291		$	240		21.5		%	$	587		$	483		21.4	%
	Reconciling items, net of tax:
		Realized investment gains (losses)		(3	)		(5	)					3			(10	)
		SFAS 133		(23	)		13						(12	)		13
		Japan pension obligation transfer		-			-						3			-
Net Earnings			$	265		$	248		6.7		%	$	581		$	486		19.5	%
Operating earnings per share - diluted			$	.56		$	.46		21.7		%	$	1.13		$	.92		22.8	%
	Reconciling items, net of tax:
		Realized investment gains (losses)		(.01	)		(.01	)					-			(.02	)
		SFAS 133		(.04	)		.03						(.02	)		.03
		Japan pension obligation transfer		-			-						.01			-
Net earnings per share - diluted			$	.51		$	.48		6.3		%	$	1.12		$	.93		20.4	%

6

Consolidated Balance Sheets				AFLAC Incorporated and Subsidiaries
(In millions, except for share and per-share amounts - unaudited) June 30,					2004			2003
Assets:
Investments and cash:
	Securities available for sale, at fair value:
		Fixed maturities		$	26,270		$	24,172
		Perpetual debentures			3,439			3,402
		Equity securities			74			130
	Securities held to maturity, at amortized cost:
		Fixed maturities			9,885			8,332
		Perpetual debentures			4,359			3,856
	Other investments				39			29
	Cash and cash equivalents				1,072			1,735
			Total investments and cash		45,138			41,656
Receivables, primarily premiums					470			463
Accrued investment income					481			436
Deferred policy acquisition costs					5,212			4,460
Property and equipment, net					505			472
Other					324			343
			Total assets	$	52,130		$	47,830
Liabilities and Shareholders' equity:
Liabilities:
	Policy liabilities:
		Future policy benefits		$	36,534		$	30,941
		Unpaid policy claims			2,191			1,839
		Unearned premiums			542			454
		Other policyholders' funds			1,081			785
	Notes payable				1,395			1,312
	Income taxes				2,096			2,750
	Payables for security transactions				55			6
	Payables for return of cash collateral on loaned securities				978			1,257
	Other				1,079			919
			Total liabilities		45,951			40,263
Shareholders' equity:
	Common stock				65			65
	Additional paid-in capital				447			392
	Retained earnings				6,369			5,658
	Accumulated other comprehensive income:
		Unrealized foreign currency translation gains			217			238
		Unrealized gains on investment securities			1,470			3,265
		Minimum pension liability adjustment			(25	)		(11	)
	Treasury stock				(2,364	)		(2,040	)
			Total shareholders' equity		6,179			7,567
			Total liabilities and shareholders' equity	$	52,130		$	47,830
Shareholders' equity per share				$	12.16		$	14.73
Shares outstanding at end of period (In thousands)					508,049			513,594

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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 discussed. We desire 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 oral discussions 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 uncertainti es. In particular, statements containing words such as "expect," "anticipate," "believe," "goal," "objective," "may," "should," "estimate," "intends," "projects," 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.

We caution readers that the following factors, in addition to other factors mentioned from time to time in our reports filed with the SEC, could cause actual results to differ materially from those contemplated by the forward-looking statements: legislative and regulatory developments; assessments for insurance company insolvencies; competitive conditions in the United States and Japan; new product development; ability to attract and retain qualified sales associates; ability to repatriate profits from Japan; changes in U.S. and/or Japanese tax laws or accounting requirements; credit and other risks associated with AFLAC's investment activities; significant changes in interest rates; fluctuations in foreign currency rates; deviations in actual experience from pricing and reserving assumptions; level and outcome of litigation; downgrades in the company's credit rating; changes in rating agency policies or practices; subsidiary's ability to pay dividends to parent company, and general economic conditions in t he United States and Japan.

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AFLAC Incorporated

     Worldwide Headquarters
     1932 Wynnton Road
     Columbus, Georgia 31999
     Tel: (706) 323-3431
     aflac.com

Customer Service

     Policyholders and claimants needing assistance
may call (800) 99-AFLAC or (800) 992-3522.
Sales associates should call (800) 462-3522.

Shareholder and Investor Inquiries

     If you have questions about AFLAC, call our toll-free
telephone number, (800) 235-2667, and use the
following menu items.
     Press 1 to receive financial information by mail.
     Press 2 to speak to a Shareholder Services
representative regarding your AFLAC stock account.
     Press 3 to speak to an Investor Relations
representative regarding AFLAC's financial
performance or other investor related issues.

Contact:

     Kenneth S. Janke Jr.
     Senior Vice President, Investor Relations
     (800) 235-2667 or (706) 596-3264
     Fax: (706) 324-6330
     kjanke@aflac.com

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