EX-99.2 3 afl93022-fabdocument.htm EX-99.2 Document

FINAL                    10/31/2022

aflaclogoa01a01a01a33.jpg

Financial Analysts Briefing Supplement
Third Quarter 2022
This document is a statistical supplement to the Financial Analysts Briefing book. 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.

For more information, contact:
David Young
Phone. 706.596.3264
Aflacir@aflac.com
investors.aflac.com



Aflac Incorporated and Subsidiaries
Share Data
(In Thousands)
BeginningShares IssuedShares PurchasedEndingQTD Weighted Avg. SharesYTD Weighted Avg. Shares
SharesStk. Bon.Stk. Opt.Treas.Misc.SharesAvg.DilutiveAvg.Avg.DilutiveAvg.
PeriodOutstanding& DRP& Misc.Shares
Purch.(1)
OutstandingSharesSharesDilutedSharesSharesDiluted
2020726,793 468 1,613 9,984 508 718,382 724,366 3,146 727,512 724,366 3,146 727,512 
718,382 648 100 5,209 13 713,908 717,889 1,875 719,764 721,128 2,510 723,638 
713,908 468 134 10,916 20 703,574 711,698 2,095 713,793 717,962 2,372 720,333 
703,574 437 235 11,791 692,454 701,016 2,843 703,859 713,702 2,490 716,192 
2021692,454 387 1,684 13,440 378 680,707 688,938 3,002 691,940 688,938 3,002 691,940 
680,707 330 130 9,174 671,990 678,050 2,871 680,921 683,464 2,936 686,400 
671,990 250 188 9,572 39 662,817 668,762 3,163 671,925 678,509 3,012 681,521 
662,817 249 224 11,140 18 652,132 659,100 3,412 662,512 673,617 3,112 676,729 
2022652,132 259 1,308 8,007 343 645,349 649,753 3,074 652,827 649,753 3,074 652,827 
645,349 269 101 11,185 634,526 640,707 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 
















(1) Includes previously owned shares used to purchase options (swapped shares) and/or shares purchased for deferred compensation program
2


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 September 30,9 Months Ended September 30,
%%
2017201820192020202120212022Change20212022Change
Aflac Japan$3,054 $3,208 $3,261 $3,263 $3,754 $976 $630 (35.5)$2,867 $2,351 (18.0)
Aflac U.S.1,245 1,285 1,272 1,268 1,478 358 309 (13.7)1,217 984 (19.1)
Corporate and other (1)
(214)(139)(72)(115)(298)(41)(59)(144)(179)
Pretax adjusted earnings4,086 4,354 4,461 4,416 4,934 1,293 880 (31.9)3,940 3,156 (19.9)
Income taxes (1)
1,370 1,129 1,147 864 915 262 156 (40.5)771 565 (26.7)
Adjusted earnings (2)
2,716 3,226 3,314 3,552 4,019 1,031 725 (29.7)3,169 2,591 (18.2)
Reconciling items:
Adjusted net investment gains (losses)— (297)(15)(229)462 (172)222 216 923 
Other and non-recurring income (loss) (3)
(69)(75)(1)(28)(73)(8)1 (67)1 
Income tax benefit (expense) on items excluded from adjusted earnings (4)
24 83 72 (83)(37)648 (32)501 
Tax reform adjustment (5)
1,933 (18)— — —  —  
Tax valuation allowance release (6)
— — — 1,411 — —  —  
Net earnings$4,604 $2,920 $3,304 $4,778 $4,325 $888 $1,596 79.7 $3,286 $4,016 22.2 
Effective Tax rate(14.6)%26.7 %25.7 %(14.9)%18.7 %20.2 %(44.7)%19.7 %1.6 %
Earnings per share of common stock:
Net earnings (basic)$5.81 $3.79 $4.45 $6.69 $6.42 $1.33 $2.54 91.0 $4.84 $6.28 29.8 
Net earnings (diluted)5.77 3.77 4.43 6.67 6.39 1.32 2.53 91.7 4.82 6.25 29.7 
Adjusted earnings (basic) (2)
$3.43 $4.20 $4.46 $4.98 $5.97 $1.54 $1.15 (25.3)$4.67 $4.05 (13.3)
Adjusted earnings (diluted) (2)
3.40 4.16 4.44 4.96 5.94 1.53 1.15 (24.8)4.65 4.03 (13.3)
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $19 and $5 for the three-month periods and $61 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively is included as a reduction to net investment income. Tax credits on these investments of $19 and $10 for the three-month period and $63 and $35 for the nine-month periods ended September 30, 2022, and 2021, 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 $695 in deferred taxes in the third quarter of 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.
3


Aflac Incorporated and Subsidiaries
Consolidated Statements of Earnings - U.S. GAAP
(In Millions, except per-share data)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2017201820192020202120212022Change20212022Change
Revenues:
Net earned premiums
  Gross premiums$18,875 $19,018 $19,122 $18,955 $17,857 $4,426 $3,681 $13,567 $11,772 
  Assumed (ceded)(345)(341)(342)(333)(210)(54)(30)(162)(93)
    Total net earned premiums18,531 18,677 18,780 18,622 17,647 4,372 3,651 (16.5)13,406 11,679 (12.9)
Net investment income3,220 3,442 3,578 3,638 3,818 991 920 (7.2)2,908 2,760 (5.1)
Net investment gains (losses) (1)
(151)(430)(135)(270)468 (171)199 224 885 
Other income (1)
67 69 84 157 173 45 50 132 168 
     Total revenues21,667 21,758 22,307 22,147 22,106 5,237 4,820 (8.0)16,670 15,492 (7.1)
Benefits and Expenses:
Benefits and claims, net
  Incurred claims -direct8,853 9,121 9,279 9,364 8,947 2,186 2,107 6,747 6,443 
  Incurred claims -assumed (ceded)(446)(421)(372)(296)(148)(43)(47)(124)(89)
  Increase in FPB (2)-direct
3,628 3,167 2,952 2,707 1,759 461 276 1,358 757 
  Increase in FPB (2)-assumed (ceded)
146 133 83 21 18 5 14 14 
    Total net benefits and claims12,181 12,000 11,942 11,796 10,576 2,609 2,340 (10.3)7,996 7,125 (10.9)
Acquisition and operating expenses:
   Amortization of DAC (3)
1,132 1,245 1,282 1,214 1,170 278 268 869 858 
   Insurance commissions1,316 1,320 1,321 1,316 1,256 311 267 952 846 
   Insurance expenses2,780 2,988 3,089 3,420 3,544 869 783 2,582 2,412 
   Interest expense240 222 228 242 238 57 59 181 171 
   Other expenses— — — — — —  —  
     Total acquisition and operating expenses5,468 5,775 5,920 6,192 6,208 1,515 1,377 (9.1)4,584 4,287 (6.5)
     Total benefits and expenses17,649 17,775 17,862 17,988 16,784 4,124 3,717 (9.9)12,580 11,412 (9.3)
     Pretax earnings4,018 3,983 4,445 4,159 5,322 1,113 1,103 4,090 4,080 
Income tax expense (benefit) (4)
(586)1,063 1,141 (619)997 225 (493)804 64 
     Net earnings$4,604 $2,920 $3,304 $4,778 $4,325 $888 $1,596 79.7 $3,286 $4,016 22.2 
(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 $695 in deferred taxes in the third quarter of 2022
4


Aflac Incorporated and Subsidiaries
Analysis of Net Earnings and Net Earnings Per Diluted Share
(In Millions, except for per-share data)
Other andForeign
NetOther and Non-ForeignNetNetNon-RecurringCurrency
NetInvestmentRecurringCurrencyEarningsInvestmentItemsImpact
PeriodEarnings
Gains (Losses) (1)
Items (1)(3)(4)
Impact (2)
Per Share
Gains (Losses) (1)
Per Share (1)(3)(4)
Per Share (2)
20174,604 — 1,888 (41)5.77 — 2.37 (.05)
20182,920 (230)(76)28 3.77 (.30)(.09).04 
20193,304 (13)15 4.43 (.02).01 .02 
20204,778 (181)1,407 31 6.67 (.25)1.96 .04 
20214,325 365 (59)(38)6.39 .54 (.09)(.06)
20201566 (322).78 (.44).01 .01 
2805 (116)— 1.12 (.16)— .01 
32,456 45 1,418 3.44 .06 1.99 — 
4951 212 (15)14 1.35 .30 (.02).02 
202111,293 240 (5)13 1.87 .35 (.01).02 
21,105 67 (42)(6)1.62 .10 (.06)(.01)
3888 (136)(7)(14)1.32 (.20)(.01)(.02)
41,039 194 (5)(30)1.57 .29 (.01)(.05)
202211,032 106 (1)(37)1.58 .16 — (.06)
21,388 448 — (57)2.16 .70 — (.09)
31,596 871 1 (53)2.53 1.38  (.08)
(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.

5


Aflac Incorporated and Subsidiaries
Consolidated Balance Sheets
(In Millions, except per-share data)
December 31,September 30,
Assets:2017201820192020202120212022
Investments and cash:
Securities available for sale:
Fixed maturity securities available for sale, at fair value$78,804 $78,429 $86,950 $101,286 $94,206 $96,285 $70,026 
Fixed maturity securities available for sale - consolidated variable interest entities, at fair value5,509 4,466 4,312 4,596 4,490 4,437 3,617 
Fixed maturity securities held to maturity, at amortized cost, net of allowance for credit losses31,430 30,318 30,085 24,464 22,000 22,613 17,466 
Equity securities, at fair value1,023 987 802 1,283 1,603 1,461 1,064 
Commercial mortgage and other loans, net of allowance for credit losses3,002 6,919 9,569 10,554 11,786 11,388 13,459 
Other investments400 787 1,477 2,429 3,842 3,612 4,186 
Cash and cash equivalents3,491 4,337 4,896 5,141 5,051 6,208 4,710 
   Total investments and cash123,659 126,243 138,091 149,753 142,978 146,004 114,528 
Receivables, net of allowance for credit losses827 851 828 796 693 787 655 
Accrued investment income769 773 772 780 737 701 684 
Deferred policy acquisition costs9,505 9,875 10,128 10,441 9,525 9,714 8,155 
Property and equipment, net434 443 581 601 538 542 488 
Other assets, net of allowance for credit losses (1)
2,023 2,221 2,368 2,715 3,071 2,849 3,590 
Total assets$137,217 $140,406 $152,768 $165,086 $157,542 $160,597 $128,100 
Liabilities and Shareholders' Equity:
Liabilities:
Total policy liabilities$99,147 $103,188 $106,554 $114,391 $105,072 $107,443 $86,540 
Notes payable5,289 5,778 6,569 7,899 7,956 8,066 7,518 
Income taxes, primarily deferred4,745 4,020 5,370 4,661 4,339 4,577 1,888 
Other liabilities3,438 3,958 5,316 4,576 6,922 6,959 8,002 
Total liabilities112,619 116,944 123,809 131,527 124,289 127,045 103,948 
Shareholders' equity:
Common stock135 135 135 135 135 135 135 
Additional paid-in capital2,052 2,177 2,313 2,410 2,529 2,491 2,615 
Retained earnings29,895 31,788 34,291 37,984 41,381 40,830 44,892 
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains (losses)(1,750)(1,847)(1,623)(1,109)(2,013)(1,760)(4,455)
Unrealized gains (losses) on fixed maturity securities5,964 4,234 8,548 10,361 9,602 9,731 1,131 
Unrealized gains (losses) on derivatives(23)(24)(33)(34)(30)(31)(29)
Pension liability adjustment(163)(212)(277)(284)(166)(278)(158)
Treasury stock(11,512)(12,789)(14,395)(15,904)(18,185)(17,566)(19,979)
Total shareholders' equity24,598 23,462 28,959 33,559 33,253 33,552 24,152 
Total liabilities & shareholders' equity$137,217 $140,406 $152,768 $165,086 $157,542 $160,597 $128,100 
(1) Includes goodwill of $269 million in 2022, $268 in 2021, $269 in 2020, $140 million in 2019, $67 million in 2018 and $67 million in 2017

6


Aflac Incorporated and Subsidiaries
Quarterly Financial Results
(Dollars In Millions, except per-share data)
Total
NetNetBenefitsAcquisitionsTotalNet EPS
Adj. EPS (1)
EarnedInv.Total&&PretaxNetAdjusted
PeriodPremiumsIncomeRevenuesClaimsAdj. Exp.Earn.Earn.
Earn. (1)
BasicDil.BasicDil.
201718,531 3,220 21,667 12,181 5,468 4,018 4,604 2,716 5.81 5.77 3.43 3.40 
201818,677 3,442 21,758 12,000 5,775 3,983 2,920 3,226 3.79 3.77 4.20 4.16 
201918,780 3,578 22,307 11,942 5,920 4,445 3,304 3,314 4.45 4.43 4.46 4.44 
202018,622 3,638 22,147 11,796 6,192 4,159 4,778 3,552 6.69 6.67 4.98 4.96 
202117,647 3,818 22,106 10,576 6,208 5,322 4,325 4,019 6.42 6.39 5.97 5.94 
202014,681 904 5,162 2,939 1,503 720 566 882 .78 .78 1.22 1.21 
24,664 870 5,407 2,897 1,440 1,070 805 921 1.12 1.12 1.28 1.28 
34,623 896 5,665 2,985 1,527 1,153 2,456 994 3.45 3.44 1.40 1.39 
44,653 968 5,913 2,974 1,723 1,216 951 755 1.36 1.35 1.08 1.07 
202114,593 925 5,869 2,735 1,531 1,603 1,293 1,058 1.88 1.87 1.54 1.53 
24,441 993 5,564 2,653 1,538 1,373 1,105 1,080 1.63 1.62 1.59 1.59 
34,372 991 5,237 2,609 1,515 1,113 888 1,031 1.33 1.32 1.54 1.53 
44,242 910 5,433 2,581 1,619 1,233 1,039 850 1.58 1.57 1.29 1.28 
202214,178 903 5,272 2,487 1,509 1,276 1,032 927 1.59 1.58 1.43 1.42 
23,849 937 5,400 2,298 1,401 1,701 1,388 939 2.17 2.16 1.47 1.46 
33,651 920 4,820 2,340 1,377 1,103 1,596 725 2.54 2.53 1.15 1.15 


















(1) See non-U.S. GAAP financial measures for definition of adjusted earnings.
7


Aflac Incorporated and Subsidiaries
Quarterly Book Value Per Share
(Dollars In Millions, except per-share data)
Adjusted BV
Adjusted BVPer Share Incl
EquityAOCIAdjusted BVPer Share InclForeign Currency
BV PerBV PerAdjusted BVPer ShareForeign CurrencyTranslation G/(L)
PeriodShareShare
Per Share (1)
% Change
Translation G/(L)(1)
% Change
201731.505.1626.3419.7%24.1023.3%
201831.062.8528.227.1%25.776.9%
201939.849.1030.748.9%28.5110.6%
202048.4612.9035.5615.7%33.9619.1%
202150.9911.3439.6511.5%36.577.7%
2020136.755.8330.927.0%28.778.9%
241.219.4531.757.5%29.707.7%
346.1611.2534.9115.7%33.0817.4%
448.4612.9035.5615.7%33.9619.1%
2021147.1610.0037.1620.2%34.7020.6%
250.2011.9338.2720.5%35.8020.5%
350.6211.5639.0611.9%36.4110.1%
450.9911.3439.6511.5%36.577.7%
2022145.754.8240.9310.1%37.086.9%
241.59(0.86)42.4510.9%37.274.1%
338.71(5.63)44.3413.5%37.202.2%














(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.
8


Aflac Incorporated and Subsidiaries
Return on Equity
Year Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
201720182019202020212021202220212022
U.S. GAAP ROE (1) - Net earnings
20.4 %12.2 %12.6 %15.3 %12.9 %10.6 %25.3 %13.1 %18.7 %
Impact of excluding unrealized foreign currency translation gains (losses)(2.0)(1.0)(1.0)(0.9)(0.8)(0.7)(3.6)(0.7)(2.3)
Impact of excluding unrealized gains (losses) on securities and derivatives5.8 3.0 3.6 6.2 5.1 4.0 1.9 5.2 3.8 
Impact of excluding pension liability adjustment(0.2)(0.1)(0.1)(0.2)(0.1)(0.1)(0.1)(0.1)(0.1)
Impact of excluding AOCI3.6 1.8 2.5 5.1 4.2 3.2 (1.9)4.3 1.4 
U.S. GAAP ROE - less AOCI24.0 13.9 15.1 20.3 17.1 13.8 23.4 17.3 20.0 
Differences between adjusted earnings and net earnings (2)
(9.8)1.5 0.0 (5.2)(1.2)2.2 (12.8)(0.6)(7.1)
Adjusted ROE - reported (3)
14.2 15.4 15.2 15.1 15.9 16.0 10.6 16.7 12.9 
(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
9


Aflac Incorporated and Subsidiaries
Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact (1)
(Diluted Basis)
Change
QTDYTDExcludingExcluding
ForeignForeignForeignForeign
AdjustedCurrencyCurrencyCurrencyCurrency
Period
EPS(1)
Growth
Impact(1)
Impact(1)
Impact(1)
Impact
2017$3.40 4.6 %N/A(.05)$3.45 6.2 %
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$5.94 19.8 %N/A(.06)$6.00 21.0 %
20201$1.21 8.0 %.01 .01 $1.20 7.1 %
21.28 13.3 .01 .02 1.27 12.4 
31.39 19.8 — .02 1.39 19.8 
41.07 3.9 .02 .04 1.05 1.9 
$4.96 11.7 %$4.92 10.8 %
20211$1.53 26.4 %.02 .02 $1.51 24.8 %
21.59 24.2 (.01).01 1.59 24.2 
31.53 10.1 (.02)(.01)1.56 12.2 
41.28 19.6 (.05)(.06)1.33 24.3 
$5.94 19.8 %$6.00 21.0 %
20221$1.42 (7.2)%(.06)(.06)$1.48 (3.3)%
21.46 (8.2)(.09)— 1.55 (2.5)
31.15 (24.8)(.08)(.23)1.23 (19.6)
$4.03 (13.3)%$4.26 (8.4)%
(1) See non-U.S.GAAP financial measures for definition of adjusted earnings and adjusted earnings excluding current period foreign currency impact
10


Aflac Incorporated and Subsidiaries
Composition of Invested Assets
(In Millions)
December 31,September 30,
2017201820192020202120212022
Fixed Maturity Securities(1)
$106,562 $107,174 $109,456 $116,056 $107,369 $109,841 $88,501 
Commercial mortgage and other loans, net of allowance for credit losses (1)
Transitional Real Estate (floating rate)1,235 4,378 5,450 5,231 5,246 5,147 6,447 
Middle Market Loans (floating rate)859 1,478 2,412 3,635 4,601 4,391 4,995 
Commercial Mortgage Loans908 1,063 1,707 1,688 1,874 1,838 2,017 
Total Commercial mortgage and other loans, net of allowance for credit losses(1)
3,002 6,919 9,569 10,554 11,721 11,376 13,459 
Equity Securities, at FV through net earnings846 987 802 1,283 1,603 1,461 1,064 
Alternatives(2)
113 370 551 919 1,703 1,403 2,004 
Total Portfolio$110,523 $115,450 $120,378 $128,812 $122,396 $124,081 $105,028 
Unrealized Gains (Losses) on Invested Assets
(In Millions)
December 31,September 30,
2017201820192020202120212022
Fixed Maturity Securities
     Available For Sale - Gross Gains$9,985 $7,733 $12,266 $14,771 $13,566 $13,729 $6,162 
     Available For Sale - Gross Losses(804)(1,694)(375)(481)(239)(235)(3,554)
     Total Available For Sale9,181 6,039 11,891 14,290 13,327 13,494 2,608 
     Held to Maturity - Gross Gains6,651 6,470 7,519 5,935 4,869 5,135 2,619 
     Held to Maturity - Gross Losses(9)(66)(10)— — —  
     Total Held to Maturity$6,642 $6,404 $7,509 $5,935 $4,869 $5,135 $2,619 
Credit Ratings on Fixed Maturities
(At Amortized Cost)
December 31,
September 30,
Credit Rating2017201820192020202120212022
AAA1.0 %1.0 %1.1 %1.0 %1.0 %1.0 %1.6 %
AA3.9 3.9 4.3 4.5 5.1 5.0 5.4 
A65.8 67.9 68.6 69.3 68.9 69.4 67.6 
BBB24.0 23.2 23.1 21.9 22.5 21.9 23.0 
BB or Lower5.3 4.0 2.9 3.3 2.5 2.7 2.4 
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
11


Aflac Incorporated and Subsidiaries
Supplemental Investment Data by Segment
3 Months Ended9 Months Ended
December 31,September 30,September 30,
201720182019202020212021202220212022
Aflac Japan:
   Invested assets (in millions)(1)
¥11,017,560 ¥11,442,444 ¥11,784,586 ¥11,936,087 ¥12,405,531 ¥12,399,257 ¥12,920,895 ¥12,399,257 ¥12,920,895 
   Return on average invested assets(2)
2.31 %2.33 %2.33 %2.38 %2.72 %2.72 %2.87 %2.68 %2.79 %
   Portfolio book yield at end of period(3)
2.56 %2.61 %2.64 %2.59 %2.60 %2.60 %2.91 %2.60 %2.91 %
   Total purchases for period (in millions)(3)
¥1,078,586 ¥1,298,376 ¥1,003,885 ¥714,124 ¥952,038 ¥165,621 ¥142,844 ¥689,728 ¥637,747 
   New money yield(3)(4)
1.98 %3.06 %3.83 %3.75 %3.50 %3.99 %5.73 %3.38 %4.16 %
Aflac U.S.:
   Invested assets (in millions)(1)
$13,764 $13,798 $14,036 $14,848 $15,841 $15,883 $16,472 $15,883 $16,472 
   Return on average invested assets(2)
5.07 %5.16 %5.70 %4.90 %4.87 %4.88 %4.57 %4.84 %4.74 %
   Portfolio book yield at end of period(3)
5.52 %5.55 %5.40 %5.18 %4.94 %5.04 %5.21 %5.04 %5.21 %
   Total purchases for period (in millions)(3)
$1,434 $2,155 $1,835 $1,050 $2,130 $430 $427 $1,348 $1,394 
   New money yield(3)(4)
4.49 %4.55 %4.51 %3.04 %3.41 %3.87 %6.24 %3.59 %4.90 %
Hedge Costs/Income Metrics (5)(6)
3 Months Ended9 Months Ended
December 31,September 30,September 30,
201720182019202020212021202220212022
Aflac Japan:
FX hedged notional at end of period (in billions)(7)
$9.3 $9.9 $8.8 $6.0 $6.4 $6.4 $4.1 $6.4 $4.1 
Weighted average remaining tenor (in months)(8)
27.7 21.4 8.5 13.0 2.6 3.7 3.7 3.7 3.7 
Amortized hedge costs for period (in millions)$(228)$(236)$(257)$(206)$(76)$(20)$(28)$(55)$(84)
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 $5.0 
Weighted average remaining tenor (in months)(8)
— 16.1 13.7 12.1 11.5 12.2 11.9 12.2 11.9 
Amortized hedge income (costs) for period (in millions)$— $36 $89 $97 $57 $13 $19 $45 $44 
(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
(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 September 30, 2022, Aflac Japan caps and put options notional amount was $13.5 billion with a weighted average remaining tenor of 3.2 months. At September 30, 2022, the Parent Company caps notional amount was $1.7 billion with a weighted average remaining tenor of 6.1 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
12


Aflac Incorporated and Subsidiaries
Japan Segment Portfolio Allocation by Currency (1)
(Dollars In Millions, U.S. GAAP Basis)
December 31, 2021September 30, 2022
Amortized
Cost
(2)
Fair
Value
Amortized
Cost
(2)
Fair
Value
JGB$50,186 $57,862 $39,106 $41,927 
Other23,661 27,684 19,156 20,126 
Total yen denominated73,847 85,546 58,262 62,053 
USD Program28,913 31,946 26,594 28,342 
Other2,236 3,328 2,015 2,689 
US dollar denominated31,149 35,274 28,609 31,031 
Total$104,996 $120,820 $86,871 $93,084 
Distribution of Consolidated Fixed Maturities by Sector
September 30, 2022
(In millions)
Amortized Cost (2)
% of
Total
Government and agencies$40,260 45.4 %
Municipalities2,463 2.8 
Mortgage- and asset-backed securities1,963 2.2 
Public utilities7,037 8.0 
Electric5,718 6.5 
Natural Gas229 .3 
Other532 .6 
Utility/Energy558 .6 
Sovereign and Supranational1,206 1.3 
Banks/financial institutions8,815 10.0 
Banking5,196 5.9 
Insurance1,702 1.9 
Other1,917 2.2 
Other corporate26,757 30.3 
Basic Industry2,358 2.7 
Capital Goods3,147 3.6 
Communications2,711 3.1 
Consumer Cyclical2,174 2.5 
Consumer Non-Cyclical5,988 6.7 
Energy2,550 2.9 
Other1,263 1.4 
Technology3,573 4.0 
Transportation2,993 3.4 
        Total fixed maturity securities$88,501 100.0 %
(1) The entire U.S. segment investment portfolio is U.S. dollar denominated.
(2) Net of reserves
13


Aflac Incorporated and Subsidiaries
Long-Term Debt Data
Adjusted Leverage Ratios
(In Millions)
December 31,September 30,
2017201820192020202120212022
Notes payable$5,289 $5,778 $6,569 $7,899 $7,956 $8,066 $7,518 
50% of subordinated debentures and perpetual bonds(263)(268)(408)(432)(389)(400)(309)
Pre-funding of debt maturities— — (348)— — — (448)
Adjusted debt (1)
5,026 5,510 5,814 7,467 7,568 7,667 6,762 
Total Shareholders' Equity24,598 23,462 28,959 33,559 33,253 33,552 24,152 
Accumulated other comprehensive (income) loss:
Unrealized foreign currency translation (gains) losses1,750 1,847 1,623 1,109 2,013 1,760 4,455 
Unrealized (gains) losses on fixed maturity securities(5,964)(4,234)(8,548)(10,361)(9,602)(9,731)(1,131)
Unrealized (gains) losses on derivatives23 24 33 34 30 31 29 
Pension liability adjustment163 212 277 284 166 278 158 
Adjusted book value (1)
20,570 21,311 22,344 24,625 25,860 25,890 27,663 
Adjusted capitalization ex-AOCI (1) (2)
$25,859 $27,089 $28,565 $32,524 $33,816 $33,956 $34,733 
Adjusted debt to adjusted capitalization ex-AOCI19.4 %20.3 %20.4 %23.0 %22.4 %22.6 %19.5 %
Adjusted capitalization (1) (3)
$23,946 $25,030 $26,665 $31,131 $31,637 $31,918 $30,120 
Adjusted debt to adjusted capitalization21.0 %22.0 %21.8 %24.0 %23.9 %24.0 %22.4 %
Debt Maturities(4)
(In Millions)
September 30, 2022
≤ 1 year1 > 5 years5 > 10 years10 > 20 years20 years +Total
Senior Notes$— $1,732 $2,837 $1,092 $1,168 $6,829 
Subordinated debt— — — — 621 621 
Total$— $1,732 $2,837 $1,092 $1,789 $7,450 

(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.
14


Aflac Incorporated and Subsidiaries

Insurer Financial Strength Ratings
AM BestMoody'sS&PJCRR&I
U.S. Operating Companies
Aflac of ColumbusA+Aa3A+AAAA
Aflac of New YorkA+_A+__
Continental American Insurance CompanyA+____
Japan Operating Company
Aflac Life Insurance Japan Ltd.A+Aa3A+AAAA
Issuer Credit Ratings
AM BestMoody'sS&PJCRR&I
Aflac Incorporated
Long-term Senior DebtaA3A-A+A+
Junior Subordinated Debta-Baa1BBB_A-
Aflac of Columbus
Long-term Senior Debtaa_A+AA_
Aflac Life Insurance Japan, Ltd.
Long-term Senior Debtaa_A+AA_
Subordinated Bonds___AA-_
The outlook for all ratings assigned by A.M. Best, S&P, Moody's, JCR and R&I is stable.

15


Aflac U.S.
Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2017201820192020202120212022Change20212022Change
Revenues:
Net earned premiums
  Gross premiums$5,563 $5,711 $5,818 $5,762 $5,540 $1,377 $1,353 $4,169 $4,101 
  Assumed (ceded)— (3)(11)(4)73 16 22 54 81 
    Total net earned premiums5,563 5,708 5,808 5,758 5,614 1,393 1,375 (1.3)4,223 4,182 (1.0)
Adjusted net investment income
721 727 720 705 754 191 185 (3.1)557 563 1.1 
Other income excl. realized foreign
     exchange gains (losses)22 102 121 32 38 90 120 
     Total adjusted revenues6,289 6,443 6,550 6,565 6,489 1,616 1,598 (1.1)4,870 4,865 (.1)
Benefits and claims:
Benefits and claims, net
  Incurred claims -direct2,526 2,560 2,611 2,498 2,174 559 564 1,576 1,721 
  Incurred claims -assumed (ceded)(4)(4)(5)(1)89 15 17 56 84 
  Increase in FPB -direct363 331 268 271 187 55 40 167 72 
  Increase in FPB -assumed (ceded)— (1)(2)(3)(3)(1) (2)(1)
    Total net benefits and claims2,885 2,887 2,871 2,765 2,447 628 621 (1.1)1,798 1,876 4.3 
Adjusted expenses:
Amortization of deferred policy
     acquisition costs502 534 573 570 517 123 144 17.1 373 443 18.8 
Insurance commissions580 585 590 576 550 136 135 (.7)411 411 — 
Insurance and other expenses1,077 1,152 1,244 1,386 1,498 370390 5.4 1,071 1,152 7.6 
Total adjusted expenses 2,159 2,271 2,407 2,532 2,564 629668 1,855 2,006 
     Total benefits and adjusted expenses5,044 5,158 5,279 5,297 5,011 1,257 1,289 2.5 3,653 3,882 6.3 
     Pretax adjusted earnings$1,245 $1,285 $1,272 $1,268 $1,478 $358 $309 (13.7)$1,217 $984 (19.1)

16


Aflac U.S.
Balance Sheets
(In Millions)
December 31,September 30,
2017201820192020202120212022
Assets:
Investments and cash$15,488 $14,518 $16,141 $17,949 $18,324 $18,481 $15,459 
Receivables, net of allowance for credit losses505 568 662 685 595 654 608 
Accrued investment income184 178 174 172 169 166 174 
Deferred policy acquisition costs3,355 3,491 3,544 3,450 3,292 3,296 3,224 
Other assets361 345 424 608 726 707 748 
Total assets$19,893 $19,100 $20,945 $22,864 $23,106 $23,304 $20,212 
Liabilities and Shareholders' Equity:
Future policy benefits$8,806 $9,137 $9,404 $9,674 $9,865 $9,846 $9,938 
Policy and contract claims1,700 1,727 1,779 2,010 1,933 1,904 2,011 
Other policy liabilities119 116 111 126 119 132 113 
Deferred income taxes982 (397)51 235 187 206 (622)
Other liabilities1,625 1,577 1,803 2,016 2,034 2,093 2,110 
Shareholders' equity6,661 6,939 7,796 8,803 8,968 9,123 6,663 
Total liabilities & shareholders' equity$19,893 $19,100 $20,945 $22,864 $23,106 $23,304 $20,212 

17


Aflac U.S.
Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Restated to conform to current classifications)
(Dollars In Millions)
NetTotalTotalPretax
Earned%Adjusted%Adjusted%Total%%Adjusted%Adjusted%
PeriodPremiumsChangeNII ChangeRevenues ChangeBenefitsChangeAmort.ChangeExpensesChangeEarn.Change
20175,563 2.0 721 2.6 6,289 2.0 2,885 .6 502 1.0 2,159 3.3 1,245 3.1 
20185,708 2.6 727 .8 6,443 2.4 2,887 .1 534 6.4 2,271 5.2 1,285 3.2 
20195,808 1.8 720 (1.0)6,550 1.7 2,871 (.6)573 7.3 2,407 6.0 1,272 (1.0)
20205,758 (.9)705 (2.1)6,565 .2 2,765 (3.7)570 (.5)2,532 5.2 1,268 (.3)
20215,614 (2.5)754 7.0 6,489 (1.2)2,447 (11.5)517 (9.3)2,564 1.3 1,478 16.6 
202011,483 1.5 177 — 1,687 2.9 713 (1.1)160 .6 648 8.7 326 .9 
21,458 (.1)172 (4.4)1,656 .9 646 (11.7)134 2.3 584 2.3 426 26.0 
31,407 (2.6)175 (4.4)1,606 (1.5)679 (4.4)141 1.4 597 2.1 329 (1.8)
41,410 (2.3)182 1.1 1,617 (1.3)727 2.5 135 (6.3)703 7.5 187 (32.0)
202111,422 (4.1)176 (.6)1,628 (3.5)556 (22.0)139 (13.1)626 (3.4)445 36.5 
21,408 (3.4)189 9.9 1,627 (1.8)613 (5.1)111 (17.2)601 2.9 413 (3.1)
31,393 (1.0)191 9.1 1,616 .6 628 (7.5)123 (12.8)629 5.4 358 8.8 
41,391 (1.3)197 8.2 1,619 .1 649 (10.7)143 5.9 709 .9 261 39.6 
202211,413 (.6)184 4.5 1,639 .7 622 11.9 168 20.9 692 10.5 325 (27.0)
21,394 (1.0)193 2.1 1,628 .1 633 3.3 131 18.0 645 7.3 349 (15.5)
31,375 (1.3)185 (3.1)1,598 (1.1)621 (1.1)144 17.1 668 6.2 309 (13.7)














18


Aflac U.S.
Operating Ratios
(Before Management Fee)
12-Mo. RollingTotal AdjustedCombinedPretax
PremiumTot. Ben./Amort./Expenses/Ratio/Profit
 PeriodPersistencyPremiumPremiumTotal Adj. Rev.Total Adj. Rev.Margin
201778.4 51.9 9.0 34.3 80.2 19.8 
201878.7 50.6 9.4 35.2 80.1 19.9 
201977.7 49.4 9.9 36.7 80.6 19.4 
202079.3 48.0 9.9 38.6 80.7 19.3 
202179.6 43.6 9.2 39.5 77.2 22.8 
2022 YTD77.6 44.9 10.6 41.2 79.8 20.2 
2020177.6 48.1 10.8 38.4 80.7 19.3 
278.3 44.3 9.2 35.3 74.3 25.7 
378.8 48.3 10.0 37.2 79.5 20.5 
479.3 51.6 9.6 43.5 88.4 11.6 
2021180.0 39.1 9.8 38.5 72.6 27.3 
280.1 43.5 7.9 36.9 74.6 25.4 
379.9 45.1 8.8 38.9 77.8 22.2 
479.6 46.7 10.3 43.8 83.9 16.1 
2022178.5 44.0 11.9 42.2 80.2 19.8 
277.9 45.4 9.4 39.6 78.5 21.4 
377.6 45.2 10.5 41.8 80.7 19.3 











19


Aflac U.S.
Aflac U.S. Sales Results
(Dollars In Millions)
Annl.New Annl.
Prem.%Prem.%
PeriodIn ForceChangeSalesChange
20176,052 2.6 1,552 4.7 
20186,231 3.0 1,601 3.2 
20196,301 1.1 1,580 (1.3)
20206,099 (3.2)1,093 (30.8)
20216,003 (1.6)1,278 16.9 
202016,224 .7 323 (5.2)
26,079 (1.7)161 (55.6)
35,969 (2.9)221 (35.7)
46,099 (3.2)388 (27.2)
202116,027 (3.2)251 (22.1)
25,988 (1.5)264 64.1 
35,929 (.7)299 35.0 
46,003 (1.6)464 19.6 
202215,942 (1.4)299 19.0 
25,926 (1.0)305 15.6 
35,889 (.7)334 11.8 



20


Aflac U.S.
Aflac U.S. Product Mix
(New Annualized Premium Sales, Dollars in Millions)
% of% of% ofCritical% ofHospital% ofDental/% of
PeriodDisabilityTotalLife TotalAccident Total
Care(1)
TotalIndemnityTotalVisionTotalTotal
2017356 22.9 78 5.0 456 29.4 354 22.8 229 14.8 79 5.1 1,552
2018363 22.7 88 5.5 468 29.2 354 22.1 253 15.8 75 4.7 1,601
2019355 22.5 97 6.1 450 28.5 346 21.9 263 16.6 69 4.4 1,580
2020243 22.3 80 7.3 285 26.1 242 22.2 197 18.0 45 4.1 1,093
2021296 23.1 114 9.0 321 25.1 273 21.3 209 16.4 65 5.1 1,278
2020173 22.6 25 7.7 88 27.3 68 21.1 55 16.9 14 4.4 323
238 23.9 14 8.6 41 25.7 33 20.6 28 17.1 4.1 161
354 24.2 16 7.1 58 26.4 45 20.5 37 16.8 11 5.0 221
479 20.4 26 6.6 98 25.2 95 24.5 77 20.0 13 3.3 388
2021158 23.1 17 6.7 66 26.3 57 22.6 42 16.7 11 4.6 251
260 22.7 19 7.3 72 27.2 56 21.0 43 16.4 14 5.4 264
379 26.2 27 9.2 76 25.5 57 19.1 45 15.1 15 4.9 299
4100 21.4 51 11.0 107 23.1 104 22.3 79 17.0 24 5.2 464
2022170 23.3 24 7.9 75 25.3 63 21.2 50 16.7 17 5.6 299
277 25.2 26 8.3 75 24.6 63 20.6 45 14.9 19 6.4 305 
397 28.9 33 10.0 76 22.6 60 18.1 47 14.1 21 6.3 334 
Aflac U.S. Sales Force Data
 AverageProductivity
Weekly(Production/
Recruited AgentsProducerAvg. Weekly
PeriodCareerBrokerTotalEquivalentsProducers)
201716,817 3,073 19,890 8,808 176,183 
201815,774 3,380 19,154 8,531 187,720 
201915,227 3,603 18,830 8,184 193,120 
202011,826 1,861 13,687 5,918 184,706 
202110,641 5,445 16,086 5,993 213,235 
202013,436 494 3,930 7,411 43,517 
22,190 381 2,571 4,252 37,814 
33,136 486 3,622 5,485 40,367 
43,064 500 3,564 6,523 59,533 
202112,890 1,063 3,953 5,643 44,530 
22,754 1,355 4,109 5,925 44,540 
32,502 1,615 4,117 5,926 50,448 
42,495 1,412 3,907 6,477 71,723 
202211,987 455 2,442 6,061 49,322 
22,937 391 3,328 6,067 50,264 
32,358 339 2,697 6,010 55,599 


(1) Includes cancer, critical illness, and hospital intensive care prod
21


Aflac Japan
Aflac Japan
Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2017201820192020202120212022Change20212022Change
Revenues:
Net earned premiums
  Gross premiums¥1,493,299 ¥1,468,894 ¥1,450,586 ¥1,409,134 ¥1,350,945 ¥335,737 ¥321,911 ¥1,019,046 ¥976,080 
  Assumed (ceded)(62,873)(60,198)(57,974)(55,926)(50,864)(12,666)(12,034)(38,309)(36,588)
    Total net earned premiums1,430,426 1,408,697 1,392,612 1,353,208 1,300,082 323,072 309,877 (4.1)980,738 939,492 (4.2)
Net investment income (1)
   Yen denominated145,114 141,575 142,473 138,397 138,513 34,951 46,205 32.2 104,192 115,178 10.5 
   US$ denominated131,168 149,801 157,717 167,541 202,905 51,230 49,323 (3.7)147,238 159,785 8.5 
Net investment income276,282 291,377 300,191 305,938 341,419 86,181 95,528 10.8 251,431 274,964 9.4 
Amortized hedge costs on foreign investments (2)
(24,528)(25,858)(28,938)(22,816)(8,391)(2,146)(3,288)53.2 (6,094)(9,677)58.8 
Adjusted net investment income 251,754 265,519 271,253 283,122 333,028 84,035 92,241 9.8 245,337 265,287 8.1 
Other income excl. realized foreign
currency gains (losses)4,640 4,636 4,869 4,497 4,512 1,078 1,205 3,441 3,420 
     Total adjusted revenues1,686,820 1,678,852 1,668,734 1,640,827 1,637,621 408,185 403,323 (1.2)1,229,516 1,208,199 (1.7)
Benefits and claims:
Benefits and claims, net
  Incurred claims -direct710,251 724,556 727,491 734,471 743,610 179,383 214,466 561,121 603,746 
  Incurred claims -assumed (ceded)(55,691)(51,892)(45,657)(37,806)(31,801)(7,916)(12,157)(23,689)(28,965)
  Increase in FPB -direct366,376 313,343 292,444 260,200 172,525 44,702 32,525 129,235 88,372 
  Increase in FPB -assumed (ceded)(1,557)(2,000)(6,497)(11,377)(11,132)(2,739)(2,457)(8,481)(7,478)
    Total net benefits and claims1,019,378 984,007 967,782 945,487 873,202 213,430 232,378 8.9 658,186 655,675 (.4)
Adjusted expenses:
Amortization of deferred policy
    acquisition costs70,670 78,459 77,286 68,818 71,657 17,011 17,192 1.1 53,777 52,821 (1.8)
Insurance commissions82,495 81,045 79,661 79,036 77,449 19,300 18,326 (5.0)58,653 55,327 (5.7)
Insurance and other expenses170,636 181,139 189,203 199,606 203,169 50,924 48,503 (4.8)147,624 145,583 (1.4)
Total adjusted expenses323,801 340,643 346,150 347,460 352,275 87,234 84,021 260,054 253,732 
     Total benefits and adjusted expenses1,343,180 1,324,651 1,313,932 1,292,947 1,225,477 300,665 316,399 5.2 918,240 909,407 (1.0)
Pretax adjusted earnings ¥343,640 ¥354,201 ¥354,802 ¥347,881 ¥412,144 ¥107,521 ¥86,924 (19.2)¥311,276 ¥298,791 (4.0)
(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
22


Aflac Japan
Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2017201820192020202120212022Change20212022Change
Revenues:
Net earned premiums
  Gross premiums$13,312 $13,307 $13,304 $13,193 $12,317 $3,049 $2,328 $9,398 $7,671 
  Assumed (ceded)(561)(546)(532)(524)(463)(115)(87)(353)(287)
    Total net earned premiums12,752 12,762 12,772 12,670 11,853 2,934 2,241 (23.6)9,045 7,384 (18.4)
Net investment income (1)
   Yen denominated1,294 1,283 1,307 1,296 1,262 317 335 5.7 960 898 (6.5)
   US$ denominated1,169 1,356 1,446 1,569 1,845 465 357 (23.2)1,355 1,251 (7.7)
      Net investment income2,463 2,639 2,753 2,865 3,107 783 692 (11.6)2,315 2,149 (7.2)
Amortized hedge costs on foreign investments (2)
   
(228)(236)(257)(206)(76)(20)(28)40.0 (55)(84)52.7 
Adjusted net investment income 2,235 2,403 2,496 2,659 3,031 763 663 (13.1)2,260 2,066 (8.6)
Other income excl. realized foreign
currency gains (losses)41 41 45 42 41 10 9 32 26 
     Total adjusted revenues15,028 15,206 15,313 15,371 14,925 3,707 2,913 (21.4)11,337 9,476 (16.4)
Benefits and claims
Benefits and claims, net
  Incurred claims -direct6,332 6,566 6,671 6,875 6,783 1,629 1,546 5,178 4,731 
  Incurred claims -assumed (ceded)(497)(471)(419)(354)(290)(72)(87)(218)(224)
  Increase in FPB -direct3,265 2,836 2,684 2,437 1,572 406 236 1,191 686 
  Increase in FPB -assumed (ceded)(14)(18)(60)(107)(102)(25)(18)(78)(59)
    Total net benefits and claims9,087 8,913 8,877 8,851 7,963 1,938 1,676 (13.5)6,072 5,133 (15.5)
Adjusted expenses:
Amortization of deferred policy
    acquisition costs630 710 709 644 653 154 124 (19.5)496 415 (16.3)
Insurance commissions 736 735 731 740 706 175 132 (24.6)541 435 (19.6)
Insurance and other expenses1,521 1,640 1,734 1,873 1,849 462 350 (24.2)1,360 1,142 (16.0)
Total adjusted expenses2,887 3,085 3,174 3,257 3,208 792 607 2,397 1,991 
     Total benefits and adjusted expenses11,974 11,998 12,051 12,108 11,171 2,731 2,283 (16.4)8,469 7,125 (15.9)
     Pretax adjusted earnings $3,054 $3,208 $3,261 $3,263 $3,754 $976 $630 (35.5)$2,867 $2,351 (18.0)
(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
23


Aflac Japan    

        
Balance Sheets
(In Millions)
December 31,September 30,
2017201820192020202120212022
Assets:
Investments and cash¥11,854,224 ¥12,031,549 ¥12,847,994 ¥13,080,154 ¥13,645,902 ¥13,614,574 ¥13,468,243 
Receivables, net of allowance for credit losses37,692 37,083 28,219 20,782 22,439 24,643 22,386 
Accrued investment income64,439 66,350 65,485 62,722 67,493 59,094 74,789 
Deferred policy acquisition costs695,025 708,638 721,341 723,579 716,984 718,263 714,008 
Other assets276,050 292,335 308,411 320,351 331,449 317,780 391,442 
   Total assets¥12,927,431 ¥13,135,956 ¥13,971,450 ¥14,207,588 ¥14,784,268 ¥14,734,354 ¥14,670,869 
Liabilities and Shareholders' Equity:
Future policy benefits¥8,323,560 ¥8,637,152 ¥8,924,868 ¥9,175,501 ¥9,336,894 ¥9,296,352 ¥9,417,217 
Policy and contract claims304,248 317,043 315,477 328,778 333,900 336,273 362,669 
Unearned premiums659,977 552,419 453,133 361,010 284,045 301,690 240,184 
Other policyholders' funds784,117 793,148 801,588 808,429 812,512 814,405 814,887 
Income taxes (prim. deferred)431,949 510,528 618,901 478,969 467,877 484,807 323,200 
Other liabilities150,143 194,949 357,135 253,219 513,580 538,673 777,585 
Shareholders' equity2,273,438 2,130,718 2,500,349 2,801,682 3,035,460 2,962,154 2,735,128 
   Total liabilities & shareholders' equity¥12,927,431 ¥13,135,956 ¥13,971,450 ¥14,207,588 ¥14,784,268 ¥14,734,354 ¥14,670,869 

24


Aflac Japan

        
        
Balance Sheets
(In Millions)
December 31,September 30,
2017201820192020202120212022
Assets:
Investments and cash$104,905 $108,392 $117,269 $126,378 $118,639 $121,646 $93,006 
Receivables, net of allowance for credit losses334 334 258 201 195 220 155 
Accrued investment income570 598 598 606 587 528 516 
Deferred policy acquisition costs6,150 6,384 6,584 6,991 6,233 6,418 4,931 
Other assets2,443 2,634 2,815 3,095 2,882 2,839 2,703 
   Total assets$114,402 $118,342 $127,523 $137,271 $128,536 $131,651 $101,311 
Liabilities and Shareholders' Equity:
Future policy benefits$73,661 $77,812 $81,461 $88,652 $81,176 $83,062 $65,032 
Policy and contract claims2,692 2,856 2,879 3,177 2,903 3,005 2,504 
Unearned premiums5,840 4,977 4,136 3,488 2,469 2,696 1,659 
Other policyholders' funds6,939 7,145 7,316 7,811 7,064 7,277 5,627 
Income taxes (prim. deferred)3,823 4,601 5,650 4,630 4,067 4,335 2,163 
Other liabilities1,328 1,756 3,260 2,447 4,465 4,813 5,370 
Shareholders' equity20,119 19,194 22,820 27,068 26,391 26,463 18,957 
   Total liabilities & shareholders' equity$114,402 $118,342 $127,523 $137,271 $128,536 $131,651 $101,311 

25


Aflac Japan
Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Yen In Millions)
NetTotalTotalPretax
Earned%Adjusted%Adjusted%Total%%Adjusted%Adjusted%
PeriodPremiumsChangeNII ChangeRevenues ChangeBenefitsChangeAmort.ChangeExpenseChangeEarn. Change
20171,430,426 (2.7)251,754 (2.0)1,686,820 (2.5)1,019,378 (4.5)70,670 1.2 323,801 .5 343,640 .6 
20181,408,697 (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 
20191,392,612 (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 
20201,353,208 (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)
20211,300,082 (3.9)333,028 17.6 1,637,621 (.2)873,202 (7.6)71,657 4.1 352,275 1.4 412,144 18.5 
20201343,054 (2.1)69,812 4.0 414,045 (1.1)238,148 (1.7)18,842 (5.9)82,939 (2.0)92,958 1.2 
2339,891 (2.5)68,036 2.0 409,126 (1.8)237,328 (1.2)16,697 (14.3)81,648 (4.1)90,150 (1.2)
3336,488 (3.3)70,219 (.2)407,874 (2.8)240,025 (1.4)16,001 (16.5)88,661 2.5 79,188 (11.6)
4333,775 (3.5)75,054 11.9 409,782 (1.0)229,986 (4.9)17,277 (7.2)94,211 4.9 85,585 4.2 
20211330,595 (3.6)74,621 6.9 406,505 (1.8)225,965 (5.1)18,225 (3.3)86,732 4.6 93,808 .9 
2327,071 (3.8)86,681 27.4 414,825 1.4 218,791 (7.8)18,541 11.0 86,088 5.4 109,947 22.0 
3323,072 (4.0)84,035 19.7 408,185 .1 213,430 (11.1)17,011 6.3 87,234 (1.6)107,521 35.8 
4319,344 (4.3)87,690 16.8 408,105 (.4)215,016 (6.5)17,880 3.5 92,221 (2.1)100,868 17.9 
20221316,429 (4.3)79,042 5.9 396,545 (2.5)212,182 (6.1)17,882 (1.9)84,208 (2.9)100,154 6.8 
2313,186 (4.2)94,004 8.4 408,331 (1.6)211,115 (3.5)17,747 (4.3)85,502 (.7)111,714 1.6 
3309,877 (4.1)92,241 9.8 403,323 (1.2)232,378 8.9 17,192 1.1 84,021 (3.7)86,924 (19.2)




















26


Aflac Japan
Operating Ratios
(Before Management Fee)
12-Mo. RollingTot. Ben./Tot. Adj.CombinedPretax
PremiumTot. Ben./PremiumsAmort./Expenses/Ratio/Profit
 Period
Persistency(1)
Premium(3rd sector)PremiumTotal Adj. Rev.Total Adj. Rev.Margin
201794.971.360.54.919.279.620.4
201894.169.959.25.620.378.921.1
201994.469.559.35.520.778.721.3
202095.169.959.75.121.278.821.2
202194.367.256.65.521.574.825.2
2022 YTD94.369.860.35.621.075.324.7
2020194.569.459.05.520.077.522.5
294.869.859.64.920.078.022.0
395.071.361.74.821.780.619.4
495.168.958.65.223.079.120.9
2021195.068.458.05.521.376.923.1
294.766.956.55.720.873.526.5
394.566.155.05.321.473.726.3
494.367.357.05.622.675.324.7
2022194.367.156.45.721.274.725.3
294.367.457.55.720.972.627.4
394.375.067.25.520.878.421.6















(1) Premium persistency presented on a 12-month rolling basis for all periods, rather than year to date

27


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)ChangeSalesChangePremium SalesChange
20171,552.2 (3.4)87,417 4.1 94,851 (16.6)
20181,527.1 (1.6)88,813 1.6 95,894 1.1 
20191,489.3 (2.5)72,836 (18.0)79,697 (16.9)
20201,426.5 (4.2)45,110 (38.1)50,852 (36.2)
20211,360.0 (4.7)48,977 8.6 54,764 7.7 
202011,474.3 (2.8)12,486 (26.7)14,021 (25.4)
21,457.7 (3.4)8,656 (60.9)9,827 (58.8)
31,441.9 (.5)11,167 (33.7)12,601 (32.0)
41,426.5 (4.2)12,801 (23.8)14,404 (22.2)
202111,410.0 (4.4)12,492 — 13,998 (.2)
21,391.7 (4.5)12,125 40.1 13,602 38.4 
31,375.0 (4.6)11,275 1.0 12,605 — 
41,360.0 (4.7)13,084 2.2 14,559 1.1 
202211,345.6 (4.6)10,679 (19.0)11,925 (14.8)
21,332.0 (4.3)11,372 (6.2)12,731 (6.4)
31,315.7 (4.3)12,639 12.1 13,884 10.2 

28


Aflac Japan
Aflac Japan Product Mix
(New Annualized Premium Sales, Yen In Billions)
% of% ofIncome   % ofChild   % of% ofOrdinary% of% of
PeriodCancerTotalMedicalTotalSupportTotalEndowmentTotalWAYSTotalLife OtherTotalOtherTotalTotal
201753.0 55.8 32.4 34.1 2.2 2.3 .5 .5 .6 .6 5.6 6.0 .6 .7 94.9 
201863.1 65.8 23.9 25.0 1.7 1.8 .3 .3 .5 .5 5.9 6.1 .5 .5 95.9 
201947.2 59.2 24.6 31.0 1.0 1.2 .2 .2 .4 .5 5.9 7.4 .4 .5 79.7 
202028.8 56.6 15.9 31.2 .5 1.0 .2 .4 .4 .7 4.8 9.5 .3 .6 50.9 
202127.0 49.2 20.4 37.2 .3 .5 .2 .3 .4 .8 4.9 9.0 1.6 3.0 54.8 
202017.8 55.5 4.5 32.4 .2 1.2 — .3 .1 .6 1.3 9.3 .1 .7 14.0 
25.4 54.7 3.2 32.5 .1 .9 — .4 .1 .8 1.0 10.0 — .7 9.8 
37.0 55.7 4.0 32.0 .1 .9 .1 .4 .1 .8 1.2 9.6 .1 .6 12.6 
48.6 59.7 4.1 28.4 .1 .8 .1 .3 .1 .8 1.3 9.3 .1 .7 14.4 
202116.4 45.4 6.1 43.3 .1 .6 — .3 .1 .7 1.2 8.9 .1 .8 14.0 
26.7 48.9 5.4 39.7 .1 .6 — .4 .1 .8 1.2 8.9 .1 .7 13.6 
36.3 49.9 4.6 36.3 .1 .5 — .3 .1 .7 1.1 9.0 .4 3.3 12.6 
47.7 52.7 4.4 29.9 .1 .4 — .3 .1 .8 1.2 8.6 1.1 7.3 14.6 
202216.4 53.0 3.8 31.4 .1 1.1 — .3 .1 .7 1.1 9.0 .5 4.5 11.9 
26.8 53.4 3.8 29.9 .3 2.2 — .2 .1 .8 1.2 9.2 .6 4.3 12.7 
38.4 60.1 3.7 26.4 .2 1.2  .2 .1 .6 1.0 7.7 .5 3.8 13.9 


















29



Aflac Japan

Aflac Japan Sales Force Data
Number of Agencies by TypeSales Contribution by Agency Type
Period Individual/ Independent CorporateAffiliated
Corporate
BankTotal Individual/ Independent CorporateAffiliated
Corporate
Bank
Licensed Sales
Associates
(1)
Recruited
Agencies
20179,492 1,455 374 11,321 42.8 52.0 5.2 109,197 174 
20188,453 1,392 371 10,216 40.1 55.3 4.6 109,482 85 
20197,683 1,343 367 9,393 45.7 50.0 4.3 109,265 77 
20207,231 1,312 361 8,904 52.3 42.6 5.1 111,886 48 
20216,779 1,283 360 8,422 51.1 43.7 5.2 111,854 62 
202017,537 1,332 364 9,233 52.8 42.7 4.5 110,129 17 
27,426 1,329 364 9,119 53.8 42.8 3.4 109,850 
37,312 1,317 364 8,993 51.7 41.4 6.9 111,016 19 
47,231 1,312 361 8,904 51.3 43.4 5.3 111,886 
202117,142 1,308 360 8,810 54.3 40.6 5.1 112,252 13 
27,055 1,305 359 8,719 51.1 44.0 4.9 113,259 22 
36,898 1,299 360 8,557 49.9 43.8 6.3 112,100 13 
46,779 1,283 360 8,422 49.2 46.3 4.5 111,854 14 
202216,447 1,266 360 8,073 48.9 46.5 4.6 109,873 
26,335 1,255 359 7,949 48.4 48.1 3.5 110,096 12 
36,260 1,246 359 7,865 49.3 46.2 4.5 110,400 12 













(1) Excludes Dai-ichi Life, banks, Japan Post Group and Daido Life
30



Aflac Japan
Yen/Dollar Exchange Rates
Yearly
ClosingQtrCum%
Period
Rate(1)
AvgAvgChange
2017113.00 N/A112.16 (3.1)
2018111.00 N/A110.39 1.6 
2019109.56 N/A109.07 1.2 
2020103.50 N/A106.86 2.1 
2021115.02 N/A109.79 (2.7)
20201108.83 108.84 108.84 1.3 
2107.74 107.65 108.25 1.7 
3105.80 106.23 107.63 1.4 
4103.50 104.57 106.86 2.1 
20211110.71 105.88 105.88 2.8 
2110.58 109.48 107.79 .4 
3111.92 110.11 108.58 (.9)
4115.02 113.70 109.79 (2.7)
20221122.39 116.18 116.18 (8.9)
2136.68 129.39 122.79 (12.2)
3144.81 137.08 126.65 (14.3)
(1) Closing rate is based on the latest available and published MUFG Bank Ltd. TTM mid-day exchange rate.
31


Corporate and Other

Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)
Years Ended December 31,3 Months Ended September 30,9 Months Ended September 30,
%%
2017201820192020202120212022Change20212022Change
Revenues:
Total net earned premiums$216 $208 $200 $194 $180 $45 $35 (22.2)$138 $112 (18.8)
Net investment income (1)
35 77 88 80 (73)11 16 45.5 14 11 (21.4)
    Amortized hedge income (2)
— 36 89 97 57 13 19 46.2 45 44 (2.2)
Adjusted net investment income 35 113 177 177 (16)24 35 45.8 59 55 (6.8)
Other income21 18 15 13 11 3 — 22 175.0 
     Total adjusted revenues272 339 393 384 175 72 73 1.4 205 189 (7.8)
Benefits and expenses:
Total net benefits and claims209 199 194 180 166 42 43 2.4 126 116 (7.9)
Interest expense122 120 133 164 165 39 44 12.8 126 123 (2.4)
Other adjusted expenses154 159 137 155 142 32 45 40.6 97 129 33.0 
     Total benefits and adjusted expenses486 478 464 499 473 113 132 16.8 349 368 5.4 
     Pretax adjusted earnings $(214)$(139)$(72)$(115)$(298)$(41)$(59)(43.9)$(144)$(179)(24.3)
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $19 and $5 for the three-month periods and $61 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively is included as a reduction to net investment income. Tax credits on these investments of $19 and $10 for the three-month period and $63 and $35 for the nine-month periods ended September 30, 2022, and 2021, 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


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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 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.
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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.

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