INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2015

Available-for-sale Securities

	December 31, 2014
(In millions)	Cost or Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair   Value
Securities available for sale, carried at fair value:
Fixed maturities:
Yen-denominated:
Japan government and agencies		$	17,341		$	1,740		$	0		$	19,081
Municipalities		88			9			0			97
Mortgage- and asset-backed securities		351			35			0			386
Public utilities		1,691			226			5			1,912
Sovereign and supranational		799			163			0			962
Banks/financial institutions		2,752			325			189			2,888
Other corporate		3,479			531			48			3,962
Total yen-denominated		26,501			3,029			242			29,288
Dollar-denominated:
U.S. government and agencies		100			17			0			117
Municipalities		961			201			2			1,160
Mortgage- and asset-backed securities		185			31			0			216
Public utilities		5,061			960			36			5,985
Sovereign and supranational		343			111			0			454
Banks/financial institutions		2,943			775			8			3,710
Other corporate		22,291			2,682			330			24,643
Total dollar-denominated		31,884			4,777			376			36,285
Total fixed maturities		58,385			7,806			618			65,573
Perpetual securities:
Yen-denominated:
Banks/financial institutions		2,132			223			92			2,263
Other corporate		183			48			0			231
Dollar-denominated:
Banks/financial institutions		125			50			0			175
Total perpetual securities		2,440			321			92			2,669
Equity securities		19			9			0			28
Total securities available for sale		$	60,844		$	8,136		$	710		$	68,270

The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments are shown in the following tables.

	June 30, 2015
(In millions)	Cost or Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair   Value
Securities available for sale, carried at fair value:
Fixed maturities:
Yen-denominated:
Japan government and agencies		$	16,315		$	1,289		$	6		$	17,598
Municipalities		86			5			0			91
Mortgage- and asset-backed securities		329			29			0			358
Public utilities		1,581			225			3			1,803
Sovereign and supranational		779			210			0			989
Banks/financial institutions		2,642			282			184			2,740
Other corporate		3,286			453			26			3,713
Total yen-denominated		25,018			2,493			219			27,292
Dollar-denominated:
U.S. government and agencies		108			11			0			119
Municipalities		924			150			10			1,064
Mortgage- and asset-backed securities		209			30			0			239
Public utilities		5,331			760			118			5,973
Sovereign and supranational		338			110			0			448
Banks/financial institutions		2,954			715			20			3,649
Other corporate		24,248			2,192			782			25,658
Total dollar-denominated		34,112			3,968			930			37,150
Total fixed maturities		59,130			6,461			1,149			64,442
Perpetual securities:
Yen-denominated:
Banks/financial institutions		1,802			156			110			1,848
Other corporate		180			23			0			203
Dollar-denominated:
Banks/financial institutions		111			52			0			163
Total perpetual securities		2,093			231			110			2,214
Equity securities		19			10			0			29
Total securities available for sale		$	61,242		$	6,702		$	1,259		$	66,685

Held-to-maturity Securities

	December 31, 2014
(In millions)	Cost or Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies		$	20,023		$	3,195		$	0		$	23,218
Municipalities		346			71			0			417
Mortgage- and asset-backed securities		43			3			0			46
Public utilities		3,342			281			20			3,603
Sovereign and supranational		2,556			272			14			2,814
Banks/financial institutions		4,932			231			78			5,085
Other corporate		3,000			326			12			3,314
Total yen-denominated		34,242			4,379			124			38,497
Total securities held to maturity		$	34,242		$	4,379		$	124		$	38,497

	June 30, 2015
(In millions)	Cost or Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair   Value
Securities held to maturity, carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies		$	19,708		$	2,541		$	0		$	22,249
Municipalities		339			58			0			397
Mortgage- and asset-backed securities		39			2			0			41
Public utilities		3,209			158			72			3,295
Sovereign and supranational		2,516			193			21			2,688
Banks/financial institutions		4,528			143			121			4,550
Other corporate		2,954			225			34			3,145
Total yen-denominated		33,293			3,320			248			36,365
Total securities held to maturity		$	33,293		$	3,320		$	248		$	36,365

Investments Classified by Contractual Maturity Date

The contractual maturities of our investments in fixed maturities at June 30, 2015, were as follows:

	Aflac Japan						Aflac U.S.
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair   Value
Available for sale:
Due in one year or less		$	232		$	259		$	77		$	79
Due after one year through five years		2,137			2,547			645			736
Due after five years through 10 years		11,191			11,613			1,787			1,873
Due after 10 years		33,030			36,366			9,126			9,991
Mortgage- and asset-backed securities		380			431			36			44
Total fixed maturities available for sale		$	46,970		$	51,216		$	11,671		$	12,723
Held to maturity:
Due in one year or less		$	271		$	278		$	0		$	0
Due after one year through five years		1,430			1,529			0			0
Due after five years through 10 years		1,866			2,003			0			0
Due after 10 years		29,687			32,514			0			0
Mortgage- and asset-backed securities		39			41			0			0
Total fixed maturities held to maturity		$	33,293		$	36,365		$	0		$	0

Economic Maturities of Investments in Perpetual Securities

The economic maturities of our investments in perpetual securities, which were all reported as available for sale at June 30, 2015, were as follows:

	Aflac Japan						Aflac U.S.
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair   Value
Due in one year or less		$	237		$	219		$	5		$	5
Due after one year through five years		500			531			0			0
Due after 10 years		1,312			1,402			39			57
Total perpetual securities available for sale		$	2,049		$	2,152		$	44		$	62

Bank and Financial Institution Investments

Our total investments in the bank and financial institution sector, including those classified as perpetual securities, were as follows:

	June 30, 2015						December 31, 2014
	Total Investments in Banks and Financial Institutions Sector (in millions)			Percentage of Total Investment Portfolio			Total Investments in Banks and Financial Institutions Sector (in millions)			Percentage of Total Investment     Portfolio
Fixed maturities:
Amortized cost		$	10,124		11	%		$	10,627		11	%
Fair value		10,939			11			11,683			11
Perpetual securities:
Upper Tier II:
Amortized cost		$	1,351		1	%		$	1,554		2	%
Fair value		1,421			1			1,645			1
Tier I:
Amortized cost		562			1			703			1
Fair value		590			1			793			1
Total:
Amortized cost		$	12,037		13	%		$	12,884		14	%
Fair value		12,950			13			14,121			13

Gain (Loss) on Investments

Information regarding pretax realized gains and losses from investments is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
(In millions)	2015		2014			2015			2014
Realized investment gains (losses) on securities:
Fixed maturities:
Available for sale:
Gross gains from sales	$	55	$	92		$	104		$	127
Gross losses from sales	0		0			0			(1		)
Net gains (losses) from redemptions	7		4			26			11
Other-than-temporary impairment losses	0		(28		)	(6		)	(31		)
Held to maturity:
Net gains (losses) from redemptions	0		1			0			1
Total fixed maturities	62		69			124			107
Perpetual securities:
Available for sale:
Net gains (losses) from redemptions	30		0			30			0
Total perpetual securities	30		0			30			0
Derivatives and other:
Derivative gains (losses)	35		33			(14		)	(50		)
Other	0		0			0			(1		)
Total derivatives and other	35		33			(14		)	(51		)
Total realized investment gains (losses)	$	127	$	102		$	140		$	56

Other Than Temporary Impairment Losses on Investment Securities

The following table details our pretax other-than-temporary impairment losses by investment category that resulted from our impairment evaluation process.

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2015		2014		2015		2014
Corporate bonds	$	0	$	28	$	2	$	31
Bank/financial institution bonds	0		0		4		0
Total other-than-temporary impairment losses realized (1)	$	0	$	28	$	6	$	31

⁽¹⁾ Includes an immaterial amount and $28 for the three-month periods and $6 and $31 for the six-month periods ended June 30, 2015 and 2014, respectively, from change in intent to sell securities

Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities

The net effect on shareholders’ equity of unrealized gains and losses from investment securities was as follows:

(In millions)	June 30, 2015				December 31, 2014
Unrealized gains (losses) on securities available for sale		$	5,443			$	7,426
Deferred income taxes		(2,059		)		(2,754		)
Shareholders’ equity, unrealized gains (losses) on investment securities		$	3,384			$	4,672

Investments Gross Unrealized Loss Aging

The following tables show the fair values and gross unrealized losses of our available-for-sale and held-to-maturity investments that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	June 30, 2015
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed Maturities:
Japan government and agencies:
Yen-denominated		$	494		$	6		$	494		$	6		$	0		$	0
Municipalities:
Dollar-denominated		92			10			77			9			15			1
Public utilities:
Dollar-denominated		2,033			118			1,657			90			376			28
Yen-denominated		1,429			75			1,110			43			319			32
Sovereign and supranational:
Yen-denominated		346			21			159			4			187			17
Banks/financial institutions:
Dollar-denominated		347			20			345			20			2			0
Yen-denominated		3,063			305			1,872			47			1,191			258
Other corporate:
Dollar-denominated		12,187			782			9,933			531			2,254			251
Yen-denominated		1,075			60			387			5			688			55
Total fixed maturities		21,066			1,397			16,034			755			5,032			642
Perpetual securities:
Yen-denominated		751			110			184			12			567			98
Total perpetual securities		751			110			184			12			567			98
Total		$	21,817		$	1,507		$	16,218		$	767		$	5,599		$	740

	December 31, 2014
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed Maturities:
Municipalities:
Dollar-denominated		$	75		$	2		$	53		$	1		$	22		$	1
Public utilities:
Dollar-denominated		1,001			36			164			7			837			29
Yen-denominated		805			25			98			1			707			24
Sovereign and supranational:
Yen-denominated		359			14			0			0			359			14
Banks/financial institutions:
Dollar-denominated		205			8			53			5			152			3
Yen-denominated		1,828			267			166			0			1,662			267
Other corporate:
Dollar-denominated		8,072			330			1,901			62			6,171			268
Yen-denominated		1,151			60			122			2			1,029			58
Total fixed maturities		13,496			742			2,557			78			10,939			664
Perpetual securities:
Yen-denominated		783			92			194			5			589			87
Total perpetual securities		783			92			194			5			589			87
Total		$	14,279		$	834		$	2,751		$	83		$	11,528		$	751

Investments in Unrealized Loss Position

The following table provides more information on our unrealized loss positions.

		June 30, 2015									December 31, 2014
(In millions)	Investments in an Unrealized Loss Position			Gross Unrealized Losses			Gross Unrealized Losses that are Investment Grade			Investments in an Unrealized Loss Position			Gross Unrealized Losses			Gross Unrealized Losses that are Investment Grade
Fixed Maturities:
Public utilities		16	%		13	%		99	%		13	%		7	%		100	%
Sovereign and supranational		3			2			100			3			2			100
Banks/financial institutions		16			22			45			14			33			31
Other corporate		61			56			94			65			47			88
Total fixed maturities		96	%		93	%					95	%		89	%
Perpetual securities		4			7			100			5			11			100
Total		100	%		100	%					100	%		100	%

Securities Lending Transactions Accounted for as Secured Borrowings

Securities Lending Transactions Accounted for as Secured Borrowings
June 30, 2015
Remaining Contractual Maturity of the Agreements
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Japan government and agencies	$	188	$	448	$	636
Public utilities	73		0		73
Sovereign and supranational	3		0		3
Banks/financial institutions	14		0		14
Other corporate	297		0		297
Total borrowings	$	575	$	448	$	1,023
Gross amount of recognized liabilities for securities lending transactions					$	1,023
Amounts related to agreements not included in offsetting disclosure in Note 4					$	0

⁽¹⁾ These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.

Securities Lending Transactions Accounted for as Secured Borrowings
December 31, 2014
Remaining Contractual Maturity of the Agreements
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Japan government and agencies	$	0	$	1,720	$	1,720
Public utilities	80		0		80
Sovereign and supranational	1		0		1
Banks/financial institutions	64		0		64
Other corporate	328		0		328
Total borrowings	$	473	$	1,720	$	2,193
Gross amount of recognized liabilities for securities lending transactions					$	2,193
Amounts related to agreements not included in offsetting disclosure in Note 4					$	0

⁽¹⁾ These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.

Variable Interest Entity, Consolidated

Investments in Variable Interest Entities

The following table presents the amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported.

Investments in Consolidated Variable Interest Entities

	June 30, 2015						December 31, 2014
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturities, available for sale		$	3,446		$	4,440		$	3,020		$	4,166
Perpetual securities, available for sale		281			272			405			429
Fixed maturities, held to maturity		82			80			83			84
Other assets		100			100			106			106
Total assets of consolidated VIEs		$	3,909		$	4,892		$	3,614		$	4,785
Liabilities:
Other liabilities		$	322		$	322		$	318		$	318
Total liabilities of consolidated VIEs		$	322		$	322		$	318		$	318

Variable Interest Entity, Not Consolidated

Investments in Variable Interest Entities

VIEs-Not Consolidated

The table below reflects the amortized cost, fair value and balance sheet caption in which our investment in VIEs not consolidated are reported.

Investments in Variable Interest Entities Not Consolidated

	June 30, 2015						December 31, 2014
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturities, available for sale		$	5,880		$	6,627		$	6,104		$	6,937
Perpetual securities, available for sale		291			293			324			330
Fixed maturities, held to maturity		2,441			2,583			2,564			2,829
Total investments in VIEs not consolidated		$	8,612		$	9,503		$	8,992		$	10,096

Perpetual securities:

Schedule of Available-for-sale Securities Reconciliation

Details of our holdings of perpetual securities were as follows:

Perpetual Securities

		June 30, 2015										December 31, 2014
(In millions)	Credit Rating	Amortized Cost			Fair Value			Unrealized Gain (Loss)				Amortized Cost			Fair Value			Unrealized Gain (Loss)
Upper Tier II:
	A		$	60		$	89		$	29			$	61		$	87		$	26
	BBB		1,130			1,107			(23		)		1,330			1,333			3
	BB or lower		161			225			64				163			225			62
Total Upper Tier II			1,351			1,421			70				1,554			1,645			91
Tier I:
	BBB		511			516			5				519			556			37
	BB or lower		51			74			23				184			237			53
Total Tier I			562			590			28				703			793			90
Other subordinated - non-banks:
	BB or lower		180			203			23				183			231			48
Total			$	2,093		$	2,214		$	121			$	2,440		$	2,669		$	229