XML 35 R24.htm IDEA: XBRL DOCUMENT

BUSINESS SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2023

Reconciliation of Revenue from Segments to Consolidated

Information regarding operations by reportable segment and Corporate and other, follows:


	Three Months Ended March 31,
(In millions)		2023		2022
Revenues:
Aflac Japan:
Net earned premiums		$	2,170	$	2,625



Adjusted net investment income (1),(2)		611		680
Other income		9		9
Total adjusted revenue Aflac Japan		2,790		3,314
Aflac U.S.:
Net earned premiums		1,428		1,413







Adjusted net investment income (3)		197		184
Other income		35		42
Total adjusted revenue Aflac U.S.		1,660		1,639
Corporate and other (4),(5)		129		74
Total adjusted revenues		4,579		5,027
Net investment gains (losses) (1),(2),(3),(4)		221		146
Total revenues		$	4,800	$	5,173

(1) Amortized hedge costs of $58 and $26 for the three-month periods ended March 31, 2023, and 2022, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

(2) Net interest cash flows from derivatives associated with certain investment strategies of $(62) and $(10) for the three-month periods ended March 31, 2023, and 2022, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

(3) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $1 for the three-month periods ended March 31, 2023, and 2022, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

(4) Amortized hedge income of $29 and $11 for the three-month periods ended March 31, 2023, and 2022, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.

(5) The change in value of federal historic rehabilitation and solar investments in partnerships of $51 and $12 for the three-month periods ended March 31, 2023, and 2022, respectively, is included as a reduction to net investment income. Tax credits on these investments of $52 and $16 for the three-month periods ended March 31, 2023, and 2022, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

Reconciliation of Adjusted Profit (Loss) from Segments to Consolidated


	Three Months Ended March 31,
(In millions)		2023		2022
Pretax earnings:
Aflac Japan (1),(2)		$	788	$	870
Aflac U.S. (3)		352		333
Corporate and other (4),(5),(6)		(7)		(42)
Pretax adjusted earnings (7)		1,133		1,161
Net investment gains (losses) (1),(2),(3),(4),(5)		209		134
Other income (loss)		0		(1)
Total earnings before income taxes		$	1,342	$	1,294
Income taxes applicable to pretax adjusted earnings		$	180	$	219
Effect of foreign currency translation on after-tax adjusted earnings		(41)		(35)

(4) Amortized hedge income of $29 and $11 for the three-month periods ended March 31, 2023, and 2022, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.

(5) A gain of $12 and $13 for the three-month periods ended March 31, 2023, and 2022, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.

(6) The change in value of federal historic rehabilitation and solar investments in partnerships of $51 and $12 for the three-month periods ended March 31, 2023, and 2022, respectively, is included as a reduction to net investment income. Tax credits on these investments of $52 and $16 for the three-month periods ended March 31, 2023, and 2022, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

(7) Includes $34 and $41 for the three-month periods ended March 31, 2023, and 2022, respectively, of interest expense on debt.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

Reconciliation of Assets from Segment to Consolidated

Assets were as follows:


(In millions)	March 31, 2023			December 31, 2022
Assets:
Aflac Japan		$	108,762		$	105,734
Aflac U.S.		21,385			21,002
Corporate and other		4,819			5,002
Total assets		$	134,966		$	131,738

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.