INVESTMENTS (Tables)

9 Months Ended

Sep. 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.

	September 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		$	16,799		$	1,544		$	1		$	18,342
Municipalities		88			6			0			94
Mortgage- and asset-backed securities		330			31			0			361
Public utilities		1,613			202			17			1,798
Sovereign and supranational		795			185			0			980
Banks/financial institutions		2,463			271			118			2,616
Other corporate		3,354			399			32			3,721
Total yen-denominated		25,442			2,638			168			27,912
Dollar-denominated:
U.S. government and agencies		111			12			0			123
Municipalities		927			154			9			1,072
Mortgage- and asset-backed securities		201			29			0			230
Public utilities		5,437			742			129			6,050
Sovereign and supranational		332			109			0			441
Banks/financial institutions		2,952			707			14			3,645
Other corporate		24,612			2,016			995			25,633
Total dollar-denominated		34,572			3,769			1,147			37,194
Total fixed maturities		60,014			6,407			1,315			65,106
Perpetual securities:
Yen-denominated:
Banks/financial institutions		1,798			149			140			1,807
Other corporate		184			18			0			202
Dollar-denominated:
Banks/financial institutions		107			51			1			157
Total perpetual securities		2,089			218			141			2,166
Equity securities		119			12			0			131
Total securities available for sale		$	62,222		$	6,637		$	1,456		$	67,403

Held-to-maturity Securities

	September 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		$	20,115		$	2,876		$	0		$	22,991
Municipalities		345			64			0			409
Mortgage- and asset-backed securities		38			2			0			40
Public utilities		3,108			151			131			3,128
Sovereign and supranational		2,569			164			47			2,686
Banks/financial institutions		4,539			141			136			4,544
Other corporate		3,015			191			56			3,150
Total yen-denominated		33,729			3,589			370			36,948
Total securities held to maturity		$	33,729		$	3,589		$	370		$	36,948

	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

Investments Classified by Contractual Maturity Date

The contractual maturities of our investments in fixed maturities at September 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		$	246		$	262		$	85		$	86
Due after one year through five years		2,340			2,722			641			717
Due after five years through 10 years		11,299			11,576			2,033			2,140
Due after 10 years		33,384			36,760			9,069			9,851
Mortgage- and asset-backed securities		381			432			36			45
Total fixed maturities available for sale		$	47,650		$	51,752		$	11,864		$	12,839
Held to maturity:
Due in one year or less		$	318		$	324		$	0		$	0
Due after one year through five years		1,593			1,675			0			0
Due after five years through 10 years		1,730			1,825			0			0
Due after 10 years		30,050			33,084			0			0
Mortgage- and asset-backed securities		38			40			0			0
Total fixed maturities held to maturity		$	33,729		$	36,948		$	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 September 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		$	261		$	254		$	0		$	0
Due after one year through five years		449			453			0			0
Due after 10 years		1,340			1,401			39			58
Total perpetual securities available for sale		$	2,050		$	2,108		$	39		$	58

Bank and Financial Institution Investments

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

	September 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		$	9,954		10	%		$	10,627		11	%
Fair value		10,805			10			11,683			11
Perpetual securities:
Upper Tier II:
Amortized cost		$	1,337		1	%		$	1,554		2	%
Fair value		1,369			1			1,645			1
Tier I:
Amortized cost		568			1			703			1
Fair value		595			1			793			1
Total:
Amortized cost		$	11,859		12	%		$	12,884		14	%
Fair value		12,769			12			14,121			13

Gain (Loss) on Investments

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

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2015			2014			2015			2014
Realized investment gains (losses) on securities:
Fixed maturities:
Available for sale:
Gross gains from sales	$	20		$	17		$	124		$	144
Gross losses from sales	(6		)	0			(6		)	(1		)
Net gains (losses) from redemptions	12			16			38			27
Other-than-temporary impairment losses	(136		)	0			(142		)	(31		)
Held to maturity:
Net gains (losses) from redemptions	0			0			0			1
Total fixed maturities	(110		)	33			14			140
Perpetual securities:
Available for sale:
Net gains (losses) from redemptions	0			0			30			0
Total perpetual securities	0			0			30			0
Equity securities:
Other-than-temporary impairment losses	(1		)	0			(1		)	0
Total equity securities	(1		)	0			(1		)	0
Derivatives and other:
Derivative gains (losses)	(3		)	(17		)	(17		)	(67		)
Other	0			0			0			(1		)
Total derivatives and other	(3		)	(17		)	(17		)	(68		)
Total realized investment gains (losses)	$	(114	)	$	16		$	26		$	72

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 September 30,				Nine Months Ended September 30,
(In millions)	2015		2014		2015		2014
Corporate bonds	$	5	$	0	$	7	$	31
Bank/financial institution bonds	131		0		135		0
Equity securities	1		0		1		0
Total other-than-temporary impairment losses realized (1)	$	137	$	0	$	143	$	31

⁽¹⁾ Includes $6 and $0 for the three-month periods and $12 and $31 for the nine-month periods ended September 30, 2015 and 2014, respectively, from change in intent to sell securities; and $131 for the three- and nine-month periods ended September 30, 2015, for credit-related impairments

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)	September 30, 2015				December 31, 2014
Unrealized gains (losses) on securities available for sale		$	5,181			$	7,426
Deferred income taxes		(1,967		)		(2,754		)
Shareholders’ equity, unrealized gains (losses) on investment securities		$	3,214			$	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.

	September 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		$	92		$	1		$	92		$	1		$	0		$	0
Municipalities:
Dollar-denominated		44			9			44			9			0			0
Public utilities:
Dollar-denominated		1,955			129			1,499			79			456			50
Yen-denominated		1,451			148			1,039			102			412			46
Sovereign and supranational:
Yen-denominated		728			47			535			32			193			15
Banks/financial institutions:
Dollar-denominated		307			14			304			14			3			0
Yen-denominated		2,809			254			1,762			72			1,047			182
Other corporate:
Dollar-denominated		12,285			995			9,940			597			2,345			398
Yen-denominated		1,237			88			437			5			800			83
Total fixed maturities		20,908			1,685			15,652			911			5,256			774
Perpetual securities:
Dollar-denominated		6			1			0			0			6			1
Yen-denominated		739			140			215			27			524			113
Total perpetual securities		745			141			215			27			530			114
Total		$	21,653		$	1,826		$	15,867		$	938		$	5,786		$	888

	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.

		September 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	%		15	%		95	%		13	%		7	%		100	%
Sovereign and supranational		3			3			100			3			2			100
Banks/financial institutions		14			15			60			14			33			31
Other corporate		63			59			86			65			47			88
Total fixed maturities		96	%		92	%					95	%		89	%
Perpetual securities		4			8			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
September 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	$	145	$	309	$	454
Public utilities	119		0		119
Sovereign and supranational	3		0		3
Banks/financial institutions	13		0		13
Other corporate	318		0		318
Total borrowings	$	598	$	309	$	907
Gross amount of recognized liabilities for securities lending transactions					$	907
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

	September 30, 2015						December 31, 2014
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturities, available for sale		$	3,651		$	4,541		$	3,020		$	4,166
Perpetual securities, available for sale		287			269			405			429
Fixed maturities, held to maturity		83			80			83			84
Other assets		106			106			106			106
Total assets of consolidated VIEs		$	4,127		$	4,996		$	3,614		$	4,785
Liabilities:
Other liabilities		$	343		$	343		$	318		$	318
Total liabilities of consolidated VIEs		$	343		$	343		$	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

	September 30, 2015						December 31, 2014
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturities, available for sale		$	5,792		$	6,367		$	6,104		$	6,937
Perpetual securities, available for sale		250			243			324			330
Fixed maturities, held to maturity		2,491			2,578			2,564			2,829
Total investments in VIEs not consolidated		$	8,533		$	9,188		$	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

		September 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		$	61		$	87		$	26			$	61		$	87		$	26
	BBB		1,112			1,056			(56		)		1,330			1,333			3
	BB or lower		164			226			62				163			225			62
Total Upper Tier II			1,337			1,369			32				1,554			1,645			91
Tier I:
	BBB		522			524			2				519			556			37
	BB or lower		46			71			25				184			237			53
Total Tier I			568			595			27				703			793			90
Other subordinated - non-banks:
	BB or lower		184			202			18				183			231			48
Total			$	2,089		$	2,166		$	77			$	2,440		$	2,669		$	229