Document

EX-99.2 3 afl33124-fabdocument.htm EX-99.2 Document

FINAL 5/1/2024

Financial Supplement

First Quarter 2024

This document is a statistical supplement to Aflac’s quarterly earnings release. 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.

The Company adopted the Financial Accounting Standards Board’s Accounting Standard Update 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by (i) ASU 2019-09 Financial Services - Insurance: Effective Date, and (ii) ASU 2020-11 Financial Services - Insurance: Effective Date and Early Application (collectively, “LDTI”) as of January 1, 2023. The amended guidance is applied as of the beginning of the earliest period presented in the Company’s quarterly and annual financial statements, which results in a January 1, 2021 Transition Date. In conjunction with the adoption of LDTI, the Company changed its practice of recording the change in the deferred profit liability (DPL) on products with limited-payment features from the benefits and claims, net line item to the net earned premiums line item in the consolidated statement of earnings. This change in presentation has no impact on net earnings. All quarterly and annual amounts for 2021 and 2022 presented herein reflect these changes for LDTI and DPL.


			Aflac Incorporated															Page
			Share Data															2
			Summary of Adjusted Results by Business Segment															3
			Statements of Earnings															4
			Analysis of Net Earnings and Net Earnings Per Share															5
			Balance Sheets															6
			Quarterly Financial Results															7
			Quarterly Book Value Per Share															8
			Return on Equity															9
			Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact															10
			Investment Results															11,12,13
			Long-Term Debt Data															14
			Ratings															15

			Aflac U.S.
			Statement of Pretax Adjusted Earnings															16
			Balance Sheets															17
			Quarterly Pretax Adjusted Earnings															18
			Operating Ratios															19
			Sales															20,21

			Aflac Japan
			Statement of Pretax Adjusted Earnings															22,23
			Balance Sheets															24,25
			Quarterly Pretax Adjusted Earnings															26
			Operating Ratios															27
			Sales															28,29,30
			Yen/Dollar Exchange Rates															31

			Corporate and Other
			Statement of Pretax Adjusted Earnings															32

			Non-U.S. GAAP Financial Measures															33

For more information, contact:

David Young

Phone. 706.596.3264

Aflacir@aflac.com

investors.aflac.com


Aflac Incorporated and Subsidiaries

	Share Data
	(In Thousands)


			Beginning	Shares Issued		Shares Purchased		Ending	QTD Weighted Avg. Shares			YTD Weighted Avg. Shares
			Shares	Stk. Bon.	Stk. Opt.	Treas.	Misc.	Shares	Avg.	Dilutive	Avg.	Avg.	Dilutive	Avg.
		Period	Outstanding	& DRP	& Misc.	Shares	Purch.(1)	Outstanding	Shares	Shares	Diluted	Shares	Shares	Diluted

	2022	1	652,132	259	1,308	8,007	343	645,349	649,753	3,074	652,827	649,753	3,074	652,827
		2	645,349	269	101	11,185	8	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	631,946	639,862	2,735	642,597
		4	623,868	222	120	8,938	16	615,256	619,845	3,149	622,994	634,816	2,839	637,655

	2023	1	615,256	239	1,152	10,348	347	605,952	611,205	2,745	613,950	611,205	2,745	613,950
		2	605,952	259	225	10,461	6	595,969	600,742	2,187	602,929	605,945	2,466	608,411
		3	595,969	210	115	9,390	7	586,897	591,246	2,350	593,596	600,992	2,427	603,419
		4	586,897	191	94	8,698	5	578,479	581,876	3,005	584,881	596,173	2,572	598,745

	2024	1	578,479	212	1,320	9,276	457	570,278	574,886	2,596	577,482	574,886	2,596	577,482

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


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 March 31,
																										%
		2019			2020			2021			2022			2023				2023			2024				Change

	Aflac Japan	$	3,261		$	3,263		$	3,755		$	3,281		$	3,234						$	788		$	810		2.8
	Aflac U.S.		1,272			1,268			1,356			1,359			1,501							352			356		1.1
	Corporate and other (1)		(72)			(115)			(293)			(218)			(425)							(7)			(3)
	Pretax adjusted earnings		4,461			4,416			4,819			4,422			4,310							1,133			1,163		2.6
	Income taxes (1)		1,147			864			893			808			577							180			202		12.2
	Adjusted earnings (2)		3,314			3,552			3,925			3,614			3,733							953			961		.8

	Reconciling items:
	Adjusted net investment gains (losses)		(15)			(229)			462			447			914							209			1,009
	Other and non-recurring income (loss) (3)		(1)			(28)			(73)			1			39							—			(2)
	Income tax benefit (expense) on items excluded from adjusted earnings (4)		3			72			(83)			357			(26)							26			(89)
	Tax reform adjustment (5)		4			—			—			—			—							—			—
	Tax valuation allowance release (6)		—			1,411			—			—			—							—			—
	Net earnings	$	3,304		$	4,778		$	4,231		$	4,418		$	4,659						$	1,188		$	1,879		58.2

	Effective Tax rate		25.7	%		(14.9)	%		18.7	%		9.3	%		11.5	%			11.5	%		13.4	%

	Earnings per share of common stock:
	Net earnings (basic)	$	4.45		$	6.69		$	6.28		$	6.96		$	7.81						$	1.94		$	3.27		68.6
	Net earnings (diluted)		4.43			6.67			6.25			6.93			7.78							1.94			3.25		67.5

	Adjusted earnings (basic) (2)	$	4.46		$	4.98		$	5.83		$	5.69		$	6.26						$	1.56		$	1.67		7.1
	Adjusted earnings (diluted) (2)		4.44			4.96			5.80			5.67			6.23							1.55			1.66		7.1

(1)	The change in value of federal historic rehabilitation and solar investments in partnerships of $32 and $51 for the three-month periods ended March 31, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $33 and $52 for the three-month periods ended March 31, 2024, and 2023, 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 $452 in deferred taxes in 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.


Aflac Incorporated and Subsidiaries

	Consolidated Statements of Earnings - U.S. GAAP
	(In Millions, except per-share data)

			Years Ended December 31,										3 Months Ended March 31,
																			%
			2019		2020		2021		2022		2023			2023	2024		Change
	Revenues:
		Net earned premiums
		Gross premiums	$	19,122	$	18,955	$	17,305	$	15,025	$	14,318			$	3,738	$	3,482
		Assumed (ceded)		(342)		(333)		(210)		(124)		(195)				(50)		(26)
		Total net earned premiums		18,780		18,622		17,095		14,901		14,123				3,688		3,456		(6.3)
		Net investment income		3,578		3,638		3,818		3,656		3,811				943		1,000		6.0
		Net investment gains (losses) (1)		(135)		(270)		468		363		590				123		951
		Other income (1)		84		157		173		220		177				46		29
		Total revenues		22,307		22,147		21,554		19,140		18,701				4,800		5,436		13.3

	Benefits and Claims:
		Benefits and claims, net
		Incurred claims -direct		9,279		9,364		8,949		8,271		8,005				2,215		2,277
		Incurred claims -assumed (ceded)		(372)		(296)		(147)		(108)		(177)				(41)		(16)
		Increase in FPB (2)-direct		2,952		2,707		1,819		888		594				36		(195)
		Increase in FPB (2)-assumed (ceded)		83		21		3		51		172				(7)		—
		Total net benefits and claims, excluding reserve remeasurement		N/A		N/A		10,623		9,102		8,594				2,203		2,066
		Reserve remeasurement (gain) loss		N/A		N/A		(147)		(215)		(383)				(53)		(56)
		Total net benefits and claims		11,942		11,796		10,476		8,887		8,211				2,150		2,010		(6.5)
		Acquisition and operating expenses:
		Amortization of DAC (3)		1,282		1,214		835		792		816				205		215
		Insurance commissions		1,321		1,316		1,256		1,117		1,052				280		255
		Insurance expenses		3,089		3,420		3,541		3,249		3,165				775		739
		Interest expense		228		242		238		226		195				48		47

		Total acquisition and operating expenses		5,920		6,192		5,870		5,384		5,228				1,308		1,256		(4.0)
		Total benefits and expenses		17,862		17,988		16,346		14,271		13,439				3,458		3,266		(5.6)

		Pretax earnings		4,445		4,159		5,208		4,869		5,262				1,342		2,170

		Income tax expense (benefit) (4)		1,141		(619)		977		451		603				154		291

		Net earnings	$	3,304	$	4,778	$	4,231	$	4,418	$	4,659			$	1,188	$	1,879		58.2

		(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 $452 in deferred taxes in 2022


Aflac Incorporated and Subsidiaries

Analysis of Net Earnings and Net Earnings Per Diluted Share
(In Millions, except for per-share data)


									Other and	Foreign
				Net	Other and Non-	Foreign	Net	Net	Non-Recurring	Currency
			Net	Investment	Recurring	Currency	Earnings	Investment	Items	Impact
		Period	Earnings	Gains (Losses) (1)	Items (1)(3)(4)	Impact (2)	Per Share	Gains (Losses) (1)	Per Share (1)(3)(4)	Per Share (2)

		2019	3,304	(13)	3	15	4.43	(.02)	.01	.02
		2020	4,778	(181)	1,407	31	6.67	(.25)	1.96	.04
		2021	4,231	365	(59)	(42)	6.25	.54	(.09)	(.06)
		2022	4,418	803	1	(262)	6.93	1.26	—	(.41)
		2023	4,659	896	31	(113)	7.78	1.50	.05	(.19)


	2022	1	1,047	106	(1)	(35)	1.60	.16	—	(.05)
		2	1,394	448	—	(59)	2.17	.70	—	(.09)
		3	1,781	871	1	(97)	2.82	1.38	—	(.15)
		4	196	(621)	—	(70)	.31	(1.00)	—	(.11)

	2023	1	1,188	235	—	(41)	1.94	.38	—	(.07)
		2	1,634	653	28	(25)	2.71	1.08	.05	(.04)
		3	1,569	472	2	(33)	2.64	.80	—	(.06)
		4	268	(464)	—	(14)	.46	(.79)	—	(.02)

	2024	1	1,879	920	(2)	(44)	3.25	1.59	—	(.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.


Aflac Incorporated and Subsidiaries
	Consolidated Balance Sheets
	(In Millions, except per-share data)

				December 31,											March 31,
	Assets:			2019		2020		2021		2022		2023		2023			2024

	Investments and cash:
		Securities available for sale:
		Fixed maturity securities available for sale, at fair value		$	86,950	$	101,286	$	94,206	$	71,936	$	69,578		$	74,174		$	66,452
		Fixed maturity securities available for sale - consolidated variable interest entities, at fair value			4,312		4,596		4,490		3,805		3,712			3,925			3,678
		Fixed maturity securities held to maturity, at amortized cost, net of allowance for credit losses			30,085		24,464		22,000		19,056		17,819			18,936			16,689
		Equity securities, at fair value			802		1,283		1,603		1,091		1,088			1,087			762
		Commercial mortgage and other loans, net of allowance for credit losses			9,569		10,554		11,786		13,496		12,527			13,328			12,360
		Other investments			1,477		2,429		3,842		4,070		4,530			5,241			6,677
		Cash and cash equivalents			4,896		5,141		5,051		3,943		4,306			3,809			5,098
			Total investments and cash		138,091		149,753		142,978		117,397		113,560			120,500			111,716

	Receivables, net of allowance for credit losses (1)				816		778		672		647		848			789			1,038
	Accrued investment income				772		780		737		745		731			701			693
	Deferred policy acquisition costs				10,128		10,441		9,848		9,239		9,132			9,267			8,819
	Property and equipment, net				581		601		538		530		445			528			418
	Other assets, net of allowance for credit losses (1)(2)				2,380		2,733		3,377		3,180		2,008			3,181			2,058
			Total assets	$	152,768	$	165,086	$	158,150	$	131,738	$	126,724		$	134,966		$	124,742

	Liabilities and Shareholders' Equity:
	Liabilities:
		Total policy liabilities		$	106,554	$	114,391	$	126,331	$	96,910	$	91,599		$	99,933		$	85,364
		Notes payable			6,569		7,899		7,956		7,442		7,364			7,420			7,912
		Income taxes, primarily deferred			5,370		4,661		30		698		154			647			777
		Other liabilities			5,316		4,576		6,802		6,548		5,622			7,182			7,152
			Total liabilities		123,809		131,527		141,119		111,598		104,739			115,182			101,205
	Shareholders' equity:
		Common stock			135		135		135		135		136			135			136
		Additional paid-in capital			2,313		2,410		2,529		2,641		2,771			2,665			2,806
		Retained earnings			34,291		37,984		40,963		44,367		47,993			45,555			49,872
		Accumulated other comprehensive income (loss):
			Unrealized foreign currency translation gains (losses)		(1,623)		(1,109)		(1,985)		(3,564)		(4,069)			(3,618)			(4,666)
			Unrealized gains (losses) on fixed maturity securities		8,548		10,361		9,602		(702)		1,139			1,289			1,092
			Unrealized gains (losses) on derivatives		(33)		(34)		(30)		(27)		(22)			(26)			(26)
			Effect of change in discount rate assumption(s)		N/A		N/A		(15,832)		(2,100)		(2,560)			(4,894)			(1,495)
			Pension liability adjustment		(277)		(284)		(166)		(36)		(8)			(29)			(7)
		Treasury stock			(14,395)		(15,904)		(18,185)		(20,574)		(23,395)			(21,293)			(24,175)
			Total shareholders' equity		28,959		33,559		17,031		20,140		21,985			19,784			23,537
			Total liabilities & shareholders' equity	$	152,768	$	165,086	$	158,150	$	131,738	$	126,724		$	134,966		$	124,742

(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity.

(2) Includes goodwill of $265 million in 2024, $270 million in 2023, $265 in 2022, $268 in 2021, $269 million in 2020 and $140 million in 2019


Aflac Incorporated and Subsidiaries

Quarterly Financial Results
(Dollars In Millions, except per-share data)

							Total
			Net	Net		Benefits	Acquisitions	Total			Net EPS		Adj. EPS (1)
			Earned	Inv.	Total	&	&	Pretax	Net	Adjusted
		Period	Premiums	Income	Revenues	Claims, Net	Adj. Exp.	Earn.	Earn.	Earn. (1)	Basic	Dil.	Basic	Dil.

		2019	18,780	3,578	22,307	11,942	5,920	4,445	3,304	3,314	4.45	4.43	4.46	4.44
		2020	18,622	3,638	22,147	11,796	6,192	4,159	4,778	3,552	6.69	6.67	4.98	4.96
		2021	17,095	3,818	21,554	10,476	5,870	5,208	4,231	3,925	6.28	6.25	5.83	5.80
		2022	14,901	3,656	19,140	8,887	5,384	4,869	4,418	3,614	6.96	6.93	5.69	5.67
		2023	14,123	3,811	18,701	8,211	5,228	5,262	4,659	3,733	7.81	7.78	6.26	6.23


	2022	1	4,079	903	5,173	2,483	1,396	1,294	1,047	942	1.61	1.60	1.45	1.44
		2	3,764	937	5,315	2,274	1,333	1,708	1,394	945	2.18	2.17	1.47	1.47
		3	3,535	920	4,704	2,076	1,299	1,329	1,781	910	2.83	2.82	1.45	1.44
		4	3,523	896	3,948	2,054	1,356	538	196	817	.32	.31	1.32	1.31

	2023	1	3,688	943	4,800	2,150	1,308	1,342	1,188	953	1.94	1.94	1.56	1.55
		2	3,573	999	5,172	2,098	1,249	1,825	1,634	954	2.72	2.71	1.59	1.58
		3	3,476	1,004	4,950	1,860	1,285	1,805	1,569	1,095	2.65	2.64	1.85	1.84
		4	3,385	865	3,777	2,103	1,385	289	268	732	.46	.46	1.26	1.25

	2024	1	3,456	1,000	5,436	2,010	1,256	2,170	1,879	961	3.27	3.25	1.67	1.66

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


Aflac Incorporated and Subsidiaries

Quarterly Book Value Per Share
(Dollars In Millions, except per-share data)

								Adjusted BV
							Adjusted BV	Per Share Incl
			Equity	AOCI		Adjusted BV	Per Share Incl	Foreign Currency
			BV Per	BV Per	Adjusted BV	Per Share	Foreign Currency	Translation G/(L)
		Period	Share	Share	Per Share (1)	% Change	Translation G/(L)(1)	% Change

		2019	39.84	9.10	30.74	8.9%	28.51	10.6%
		2020	48.46	12.90	35.56	15.7%	33.96	19.1%
		2021	26.12	(12.90)	39.01	9.7%	35.97	5.9%
		2022	32.73	(10.45)	43.18	10.7%	37.39	3.9%
		2023	38.00	(9.54)	47.55	10.1%	40.51	8.3%


	2022	1	27.21	(13.09)	40.31	10.1%	36.53	7.0%
		2	30.82	(11.00)	41.82	11.3%	36.75	4.6%
		3	31.97	(12.03)	44.00	14.6%	36.99	3.4%
		4	32.73	(10.45)	43.18	10.7%	37.39	3.9%

	2023	1	32.65	(12.01)	44.66	10.8%	38.69	5.9%
		2	34.30	(12.31)	46.61	11.5%	39.48	7.4%
		3	38.63	(9.81)	48.44	10.1%	40.80	10.3%
		4	38.00	(9.54)	47.55	10.1%	40.51	8.3%

	2024	1	41.27	(8.95)	50.22	12.4%	42.04	8.7%

(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.


Aflac Incorporated and Subsidiaries

	Return on Equity


				Year Ended December 31,										3 Months Ended March 31,

				2019		2020		2021 (4)		2022		2023			2023		2024
	U.S. GAAP ROE (1) - Net earnings			12.6	%	15.3	%	26.7	%	23.8	%	22.1	%		23.8	%		33.0	%

		Impact of excluding unrealized foreign currency translation gains (losses)		(1.0)		(0.9)		(1.7)		(2.5)		(3.1)			(3.2)			(5.1)
		Impact of excluding unrealized gains (losses) on securities and derivatives		3.6		6.2		10.7		4.1		0.2			0.2			1.3
		Impact of excluding effect on change in discount rate assumptions		N/A		N/A		(18.5)		(8.2)		(1.9)			(3.1)			(2.4)
		Impact of excluding pension liability adjustment		(0.1)		(0.2)		(0.2)		(0.1)		—			—			—

			Impact of excluding AOCI	2.5		5.1		(9.7)		(6.8)		(4.9)			(6.1)			(6.2)

	U.S. GAAP ROE - less AOCI			15.1		20.3		17.0		17.0		17.2			17.7			26.8

	Differences between adjusted earnings and net earnings (2)			—		(5.2)		(1.2)		(3.1)		(3.4)			(3.5)			(13.1)

	Adjusted ROE - reported (3)			15.2		15.1		15.8		13.9		13.8			14.2			13.7
















		(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
		(4)	Return on equity calculations for 2021 use beginning retained earnings and accumulated other comprehensive income adjusted for the adoption of LDTI.


Aflac Incorporated and Subsidiaries

	Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact (1)
		(Diluted Basis)

												Change
								QTD	YTD	Excluding		Excluding
								Foreign	Foreign	Foreign		Foreign
				Adjusted				Currency	Currency	Currency		Currency
			Period	EPS(1)		Growth		Impact(1)	Impact(1)	Impact(1)		Impact

			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	$	5.80	16.9	%	N/A	(.06)	$	5.86	18.1	%
			2022	$	5.67	(2.2)	%	N/A	(.41)	$	6.08	4.8	%
			2023	$	6.23	9.9	%	N/A	(.19)	$	6.43	13.4	%


		2022	1	$	1.44	.7	%	(.05)	(.05)	$	1.50	4.9	%
			2	1.47		—		(.09)	(.15)	1.56		6.1
			3	1.44		(8.3)		(.15)	(.30)	1.59		1.3
			4	1.31		(.8)		(.11)	(.41)	1.43		8.3
				$	5.67	(2.2)	%			$	6.08	4.8	%

		2023	1	$	1.55	7.6	%	(.07)	(.07)	$	1.62	12.5	%
			2	1.58		7.5		(.04)	(.11)	1.62		10.2
			3	1.84		27.8		(.06)	(.17)	1.90		31.9
			4	1.25		(4.6)		(.02)	(.19)	1.28		(2.3)
				$	6.23	9.9	%			$	6.43	13.4	%

		2024	1	$	1.66	7.1	%	(.08)	(.08)	$	1.74	12.3	%



				$	1.66	7.1	%			$	1.74	12.3	%


		(1) See non-U.S.GAAP financial measures for definition of adjusted earnings and adjusted earnings excluding current period foreign currency impact


Aflac Incorporated and Subsidiaries

	Composition of Invested Assets
	(In Millions)
			December 31,																	March 31,
			2019			2020			2021			2022			2023			2023				2024

	Fixed Maturity Securities(1)		$	109,456		$	116,056		$	107,369		$	94,525		$	88,508				$	94,242			$	84,283

	Commercial mortgage and other loans, net of allowance for credit losses (1)
	Transitional Real Estate (floating rate)			5,450			5,231			5,246			6,455			5,998					6,635				5,964
	Middle Market Loans (floating rate)			2,412			3,635			4,601			5,028			4,531					4,935				4,487
	Commercial Mortgage Loans			1,707			1,688			1,854			1,775			1,697					1,457				1,634
	Other Loans			—			—			20			238			301					301				275
		Total Commercial mortgage and other loans, net of allowance for credit losses(1)		9,569			10,554			11,721			13,496			12,527					13,328				12,360

	Equity Securities, at FV through net earnings			802			1,283			1,603			1,091			1,088					1,087				762

	Alternatives(2)			551			919			1,703			2,107			2,619					2,255				2,686

	Total Portfolio		$	120,378		$	128,812		$	122,396		$	111,219		$	104,742				$	110,912			$	100,091

	Unrealized Gains (Losses) on Invested Assets
	(In Millions)
			December 31,																	March 31,
			2019			2020			2021			2022			2023				2023				2024
	Fixed Maturity Securities
	Available For Sale - Gross Gains		$	12,266		$	14,771		$	13,566		$	4,800		$	6,050				$	5,875			$	6,038
	Available For Sale - Gross Losses			(375)			(481)			(239)			(4,528)			(3,449)					(3,082)				(3,502)
	Total Available For Sale			11,891			14,290			13,327			272			2,601					2,793				2,536

	Held to Maturity - Gross Gains			7,519			5,935			4,869			2,154			1,838					2,680				1,556
	Held to Maturity - Gross Losses			(10)			—			—			—			—					—				—
	Total Held to Maturity		$	7,509		$	5,935		$	4,869		$	2,154		$	1,838				$	2,680			$	1,556

		Credit Ratings on Fixed Maturities
		(At Amortized Cost)

			December 31,																	March 31,
		Credit Rating	2019			2020			2021			2022			2023			2023				2024
		AAA		1.1	%		1.0	%		1.0	%		1.6	%		1.6	%				1.7	%			1.6	%
		AA		4.3			4.5			5.1			5.2			5.7					5.3				6.1
		A		68.6			69.3			68.9			68.0			68.1					67.9				67.7
		BBB		23.1			21.9			22.5			23.0			22.9					23.0				23.1
		BB or Lower		2.9			3.3			2.5			2.2			1.7					2.1				1.5
				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 funds managed by Global Investments; excludes Corporate driven activity, policy loans, short-term investments, real estate owned assets and FHLB equity balances


Aflac Incorporated and Subsidiaries
			Supplemental Investment Data by Segment


																			3 Months Ended
				December 31,															March 31,
				2019			2020			2021			2022			2023			2023			2024

	Aflac Japan:
		Invested assets (in millions)(1)		¥	11,784,586		¥	11,936,087		¥	12,405,531		¥	12,617,181		¥	12,127,531		¥	12,534,653		¥	12,486,906
		Return on average invested assets(2)		2.33		%	2.38		%	2.72		%	2.78		%	2.90		%	2.57		%	3.14		%
		Portfolio book yield at end of period(3)		2.64		%	2.59		%	2.60		%	3.06		%	3.18		%	3.13		%	3.24		%
		Total purchases for period (in millions)(3)		¥	1,003,885		¥	714,124		¥	952,038		¥	716,964		¥	378,541		¥	159,440		¥	300,570
		New money yield(3)(4)		3.83		%	3.75		%	3.50		%	4.48		%	5.18		%	5.18		%	5.57		%

	Aflac U.S.:
		Invested assets (in millions)(1)		$	14,036		$	14,848		$	15,841		$	16,772		$	17,075		$	16,609		$	17,171
		Return on average invested assets(2)		5.70		%	4.90		%	4.87		%	4.72		%	4.88		%	4.74		%	4.87		%
		Portfolio book yield at end of period(3)		5.40		%	5.18		%	4.94		%	5.39		%	5.53		%	5.46		%	5.57		%
		Total purchases for period (in millions)(3)		$	1,835		$	1,050		$	2,130		$	1,701		$	907		$	242		$	519
		New money yield(3)(4)		4.51		%	3.04		%	3.41		%	5.16		%	7.56		%	7.01		%	6.66		%

	Hedge Costs/Income Metrics (5)(6)

																			3 Months Ended
				December 31,															March 31,
				2019			2020			2021			2022			2023			2023			2024
	Aflac Japan:
			FX hedged notional at end of period (in billions) - forwards (7)	$	8.8		$	6.0		$	6.4		$	4.1		$	—		$	3.7		$	—
			FX hedged notional at end of period (in billions) - put options	9.2			13.1			11.6			13.5			24.7			9.8			24.7
			Amortized hedge costs for period (in millions)	(257)			(206)			(76)			(112)			(157)			(58)			(6)
	Corporate and Other (Parent Company):
			FX hedged notional at end of period (in billions) - forwards (7)	$	4.9		$	5.0		$	5.0		$	5.0		$	2.6		$	5.0		$	2.3
			FX hedged notional at end of period (in billions) - put options	2.0			2.0			1.9			2.6			0.5			10.4			—
			Amortized hedge income (costs) for period (in millions)	89			97			57			68			122			29			28

	(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, and any impacts from hedging activities
	(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 Incorporated
	(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.
	(7) Notional is reported net of any offsetting positions within Aflac Japan or the Parent Company, respectively.


Aflac Incorporated and Subsidiaries


		Japan Segment Portfolio Allocation by Currency (1)
		(Dollars In Millions, U.S. GAAP Basis)

			December 31, 2023				March 31, 2024
			Amortized Cost (3)		Fair Value		Amortized Cost (3)		Fair Value
	JGB		$	39,151	$	40,222	$	36,641	$	37,170
	Other		19,517		20,285		17,868		18,647
	Total yen denominated		58,668		60,507		54,509		55,817

	USD Program		23,384		25,254		24,986		27,053
	Other		2,081		2,902		1,948		2,848
	US dollar denominated		25,465		28,156		26,934		29,901

	Total		$	84,133	$	88,663	$	81,443	$	85,718


		Distribution of Consolidated Fixed Maturities by Sector (2)
							March 31, 2024
	(In millions)						Amortized Cost (3)		% of Total
	Government and agencies						$	37,754	44.8		%
	Municipalities						2,392		2.8
	Mortgage- and asset-backed securities						3,169		3.8
	Public utilities						6,909		8.2
	Electric						5,704		6.8
	Natural Gas						665		.8
	Other						540		.6
	Sovereign and supranational						835		1.1
	Banks/financial institutions						8,517		10.1
	Banking						4,895		5.8
	Insurance						1,816		2.2
	Other						1,806		2.1
	Other corporate						24,707		29.2
	Basic Industry						2,121		2.5
	Capital Goods						3,011		3.6
	Communications						2,653		3.1
	Consumer Cyclical						1,945		2.3
	Consumer Non-Cyclical						5,740		6.8
	Energy						2,195		2.6
	Other						1,094		1.3
	Technology						3,153		3.7
	Transportation						2,795		3.3
	Total fixed maturity securities						$	84,283	100.0		%

	(1) The entire U.S. segment investment portfolio is U.S. dollar denominated.
	(2)In the first quarter of 2023, the Utility/Energy subsector was combined with the Natural Gas subsector to better reflect the risk characteristics of those issuers and align more closely with industry benchmarks.
	(3) Net of reserves


Aflac Incorporated and Subsidiaries

Long-Term Debt Data

Adjusted Leverage Ratios
(In Millions)

		December 31,															March 31,
			2019			2020			2021			2022			2023			2023		2024

	Notes payable	$	6,569		$	7,899		$	7,956		$	7,442		$	7,364		$	7,420	$	7,912
	50% of subordinated debentures and perpetual bonds		(408)			(432)			(389)			(337)			(315)			(335)		(295)
	Pre-funding of debt maturities		(348)			—			—			—			(211)			—		(198)
	Adjusted debt (1)		5,814			7,467			7,568			7,105			6,839			7,086		7,420

	Total Shareholders' Equity		28,959			33,559			17,031			20,140			21,985			19,784		23,537
	Accumulated other comprehensive (income) loss:
	Unrealized foreign currency translation (gains) losses		1,623			1,109			1,985			3,564			4,069			3,618		4,666
	Unrealized (gains) losses on fixed maturity securities		(8,548)			(10,361)			(9,602)			702			(1,139)			(1,289)		(1,092)
	Unrealized (gains) losses on derivatives		33			34			30			27			22			26		26
	Effect on change in discount rate assumptions		N/A			N/A			15,832			2,100			2,560			4,894		1,495
	Pension liability adjustment		277			284			166			36			8			29		7
	Adjusted book value (1)		22,344			24,625			25,442			26,569			27,505			27,062		28,639

	Adjusted capitalization ex-AOCI(1)(2)	$	28,565		$	32,524		$	33,398		$	34,011		$	34,658		$	34,482	$	36,353
	Adjusted debt to adjusted capitalization ex-AOCI		20.4	%		23.0	%		22.7	%		20.9	%		19.7	%		20.5		20.4	%

	Adjusted capitalization(1)(3)	$	26,665		$	31,131		$	31,247		$	30,411		$	30,581		$	30,835	$	31,680
	Adjusted debt to adjusted capitalization		21.8	%		24.0	%		24.2	%		23.4	%		22.4	%		23.0		23.4	%


Debt Maturities(4)
(In Millions)
March 31, 2024

		≤ 1 year		1 > 5 years		5 > 10 years		10 > 20 years		20 years +		Total

	Senior Notes	$	—	$	1,813	$	2,882	$	1,074	$	1,291	$	7,060
	Subordinated debt		—		—		—		—		793		793


	Total	$	—	$	1,813	$	2,882	$	1,074	$	2,084	$	7,853

(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.

Aflac Incorporated and Subsidiaries

Insurer Financial Strength Ratings

AM Best

Moody's

S&P

JCR

R&I

U.S. Operating Companies

Aflac of Columbus

A+

Aa3

A+

Aflac of New York

A+

Continental American Insurance Company

A+

Japan Operating Company

Aflac Life Insurance Japan Ltd.

A+

Aa3

A+

Bermuda Operating Company

Aflac Re Bermuda Ltd.

Issuer Credit Ratings

AM Best

Moody's

S&P

JCR

R&I

Aflac Incorporated

Long-term Senior Debt

A-

A+

Junior Subordinated Debt

Baa1

BBB

A-

Aflac of Columbus

Long-term Senior Debt

A+

Aflac Life Insurance Japan, Ltd.

Long-term Senior Debt

A+

Subordinated Bonds

AA-

The outlook for all ratings assigned by A.M. Best, S&P, Moody's and R&I is stable. The outlook for all ratings assigned by JCR is positive.


Aflac U.S.

	Statements of Pretax Adjusted Earnings
	(Before Management Fee)
	(In Millions)



			Years Ended December 31,										3 Months Ended March 31,
																		%
			2019		2020		2021		2022			2023		2023		2024		Change

	Revenues:
		Net earned premiums
		Gross premiums	$	5,818	$	5,762	$	5,540	$	5,467	$	5,669		$	1,420	$	1,489
		Assumed (ceded)		(11)		(4)		73		103		6			8		(14)
		Total net earned premiums		5,808		5,758		5,614		5,570		5,675			1,428		1,475		3.3
		Adjusted net investment income		720		705		754		755		820			197		206		4.6
		Other income excl. realized foreign
		exchange gains (losses)		22		102		121		161		128			35		18

		Total adjusted revenues		6,550		6,565		6,489		6,486		6,623			1,660		1,699		2.3

	Benefits and claims:
		Benefits and claims, net
		Incurred claims -direct		2,611		2,498		2,183		2,245		2,423			595		765
		Incurred claims -assumed (ceded)		(5)		(1)		89		104		17			9		(12)
		Increase in FPB -direct		268		271		463		326		280			88		(41)
		Increase in FPB -assumed (ceded)		(2)		(3)		(11)		4		(5)			(1)		2
		Total benefits and claims, net, excluding reserve remeasurement		N/A		N/A		2,724		2,679		2,715			691		715
		Reserve remeasurement (gain) loss		N/A		N/A		(85)		(124)		(283)			(40)		(30)
		Total benefits and claims, net		2,871		2,765		2,639		2,555		2,431			651		686		5.4

	Adjusted expenses:
		Amortization of deferred policy
		acquisition costs		573		570		442		455		490			119		132		10.9
		Insurance commissions		590		576		550		553		561			142		141		(.7)
		Insurance and other expenses		1,244		1,386		1,502		1,564		1,640			395		384		(2.8)
		Total adjusted expenses		2,407		2,532		2,494		2,573		2,691			657		658

		Total benefits and adjusted expenses		5,279		5,297		5,132		5,127		5,122			1,308		1,343		2.7

		Pretax adjusted earnings	$	1,272	$	1,268	$	1,356	$	1,359	$	1,501		$	352	$	356		1.1


Aflac U.S.

	Balance Sheets
	(In Millions)



			December 31,											March 31,
			2019		2020		2021		2022		2023		2023			2024
	Assets:

	Investments and cash		$	16,141	$	17,949	$	18,324	$	15,987	$	16,718		$	16,228		$	16,667
	Receivables, net of allowance for credit losses (1)			650		667		574		584		688			720			710
	Accrued investment income			174		172		169		184		183			177			186
	Deferred policy acquisition costs			3,544		3,450		3,366		3,463		3,573			3,491			3,585
	Other assets (1)			436		626		758		784		698			769			703

		Total assets	$	20,945	$	22,864	$	23,191	$	21,002	$	21,861		$	21,385		$	21,850


	Liabilities and Shareholders' Equity:

	Future policy benefits		$	9,404	$	9,674	$	14,212	$	10,870	$	11,234		$	11,199		$	10,913
	Policy and contract claims			1,779		2,010		151		200		258			225			340
	Other policy liabilities			111		126		119		117		107			118			113

	Deferred income taxes			51		235		(328)		(243)		(311)			(157)			(223)
	Other liabilities			1,803		2,016		2,010		2,080		2,062			2,017			2,091
	Shareholders' equity			7,796		8,803		7,027		7,978		8,510			7,984			8,617

		Total liabilities & shareholders' equity	$	20,945	$	22,864	$	23,191	$	21,002	$	21,861		$	21,385		$	21,850

(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on

net earnings or total shareholders' equity.


Aflac U.S.

Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Restated to conform to current classifications)
(Dollars In Millions)
		Net				Total		Benefits					Total				Pretax
		Earned	%	Adjusted	%	Adjusted	%	&	%		%	Adjusted			%	Adjusted		%
	Period	Premiums	Change	NII	Change	Revenues	Change	Claims, Net	Change	Amort.	Change	Expenses			Change	Earn.		Change

	2019	5,808	1.8	720	(1.0)	6,550	1.7	2,871	(.6)	573	7.3			2,407		6.0		1,272	(1.0)
	2020	5,758	(.9)	705	(2.1)	6,565	.2	2,765	(3.7)	570	(.5)			2,532		5.2		1,268	(.3)
	2021	5,614	(2.5)	754	7.0	6,489	(1.2)	2,639	(4.6)	442	(22.5)			2,494		(1.5)		1,356	6.9
	2022	5,570	(.8)	755	.1	6,486	—	2,555	(3.2)	455	2.9			2,573		3.2		1,359	.2
	2023	5,675	1.9	820	8.6	6,623	2.1	2,431	(4.9)	490	7.7			2,691		4.6		1,501	10.4


2022	1	1,413	(.6)	184	4.5	1,639	.7	666	(4.3)	114	2.7			640		6.7		333	.6
	2	1,394	(1.0)	193	2.1	1,628	.1	658	(4.6)	113	1.8			627		4.7		343	1.5
	3	1,375	(1.3)	185	(3.1)	1,598	(1.1)	616	4.1	114	3.6			638		3.2		345	(14.8)
	4	1,388	(.2)	192	(2.5)	1,621	.1	614	(7.0)	115	4.5			667		(1.3)		339	20.2

2023	1	1,428	1.1	197	7.1	1,660	1.3	651	(2.3)	119	4.4			657		2.7		352	5.7
	2	1,425	2.2	203	5.2	1,663	2.1	645	(2.0)	120	6.2			648		3.3		369	7.6
	3	1,419	3.2	209	13.0	1,661	3.9	510	(17.2)	122	7.0			674		5.6		478	38.6
	4	1,403	1.1	211	9.9	1,639	1.1	626	2.0	129	12.2			712		6.7		302	(10.9)

2024	1	1,475	3.3	206	4.6	1,699	2.3	686	5.4	132	10.9			658		.2		356	1.1

Aflac U.S.


Operating Ratios
(Before Management Fee)




		12-Mo. Rolling			Total Adjusted	Combined	Pretax
		Premium	Tot. Ben./	Amort./	Expenses/	Ratio/	Profit
	Period	Persistency (1)	Premium	Premium	Total Adj. Rev.	Total Adj. Rev.	Margin

	2019	77.7		49.4	9.9	36.7	80.6	19.4
	2020	79.3		48.0	9.9	38.6	80.7	19.3
	2021	79.7		47.0	7.9	38.4	79.1	20.9
	2022	77.3		45.9	8.2	39.7	79.0	21.0
	2023	78.6		42.8	8.6	40.6	77.3	22.7
	2024 YTD	78.7		46.5	8.9	38.7	79.0	21.0

2022	1	78.7		47.1	8.1	39.0	79.7	20.3
	2	78.1		47.2	8.1	38.5	78.9	21.1
	3	77.9		44.8	8.3	39.9	78.4	21.6
	4	77.3		44.2	8.3	41.1	79.1	20.9

2023	1	77.9		45.6	8.3	39.6	78.8	21.2
	2	78.2		45.3	8.4	39.0	77.8	22.2
	3	78.7		35.9	8.6	40.6	71.2	28.8
	4	78.6		44.6	9.2	43.4	81.6	18.4

2024	1	78.7		46.5	8.9	38.7	79.0	21.0





(1) Includes Network Dental & Vision, Consumer Markets, and Group Premier Life, Absence Management, and Disability Solutions products beginning in the first quarter of 2021

Aflac U.S.


Aflac U.S. Sales Results
(Dollars In Millions)

		Annl.			New Annl.
		Prem.		%	Prem.		%
	Period	In Force		Change	Sales		Change

	2019		6,301	1.1		1,580	(1.3)
	2020		6,099	(3.2)		1,093	(30.8)
	2021		6,003	(1.6)		1,278	16.9
	2022		5,967	(.6)		1,483	16.1
	2023		6,161	3.3		1,558	5.0


2022	1		5,942	(1.4)		299	19.0
	2		5,926	(1.0)		305	15.6
	3		5,889	(.7)		334	11.8
	4		5,967	(.6)		545	17.4

2023	1		6,023	1.4		315	5.3
	2		6,064	2.3		324	6.4
	3		6,062	2.9		359	7.5
	4		6,161	3.3		559	2.6

2024	1		6,211	3.1		298	(5.2)

Aflac U.S.


Aflac U.S. Product Mix
(New Annualized Premium Sales, Dollars in Millions)

				% of		% of		% of	Critical	% of	Hospital	% of	Dental/	% of
		Period	Disability	Total	Life	Total	Accident	Total	Care(1)	Total	Indemnity	Total	Vision	Total	Total
		2019	355	22.5	97	6.1	450	28.5	346	21.9	263	16.6	69	4.4	1,580
		2020	243	22.3	80	7.3	285	26.1	242	22.2	197	18.0	45	4.1	1,093
		2021	296	23.1	114	9.0	321	25.1	273	21.3	209	16.4	65	5.1	1,278
		2022	378	25.5	156	10.5	338	22.8	299	20.1	226	15.3	85	5.8	1,483
		2023	399	25.6	188	12.0	326	20.9	322	20.7	225	14.5	98	6.3	1,558


	2022	1	70	23.3	24	7.9	75	25.3	63	21.2	50	16.7	17	5.6	299
		2	77	25.2	26	8.3	75	24.6	63	20.6	45	14.9	19	6.4	305
		3	97	28.9	33	10.0	76	22.6	60	18.1	47	14.1	21	6.3	334
		4	135	24.9	73	13.4	112	20.5	112	20.6	84	15.4	28	5.2	545

	2023	1	79	25.2	26	8.3	74	23.5	64	20.5	50	15.9	21	6.6	315
		2	80	24.8	35	10.7	73	22.4	66	20.4	46	14.3	24	7.4	324
		3	101	28.2	54	15.0	72	19.9	67	18.6	45	12.6	20	5.7	359
		4	139	24.8	73	13.0	107	19.2	124	22.2	83	14.9	33	5.9	559

	2024	1	69	23.0	32	10.8	67	22.5	66	22.1	45	15.1	19	6.5	298


Aflac U.S. Sales Force Data

					Average	Productivity
					Weekly	(Production/
		Recruited Agents			Producer	Avg. Weekly
	Period	Career	Broker	Total	Equivalents	Producers)
	2019	15,227	3,603	18,830	8,184	193,120
	2020	11,826	1,861	13,687	5,918	184,706
	2021	10,641	5,445	16,086	5,993	213,235
	2022	9,550	1,500	11,050	6,186	239,786
	2023	10,103	1,463	11,566	6,239	249,663


2022	1	1,987	455	2,442	6,061	49,322
	2	2,937	391	3,328	6,067	50,264
	3	2,358	339	2,697	6,010	55,599
	4	2,268	315	2,583	6,607	82,538

2023	1	2,676	348	3,024	6,108	51,525
	2	2,801	399	3,200	6,196	52,361
	3	2,407	431	2,838	6,044	59,425
	4	2,219	285	2,504	6,608	84,645

2024	1	2,330	346	2,676	5,800	51,432

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

Aflac Japan


Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)

		Years Ended December 31,										3 Months Ended March 31,
																		%
		2019		2020		2021		2022		2023			2023	2024		Change
Revenues:
	Net earned premiums
	Gross premiums	¥	1,450,586	¥	1,409,134	¥	1,290,527	¥	1,246,657	¥	1,212,654			¥	306,739	¥	296,056
	Assumed (ceded)		(57,974)		(55,926)		(50,864)		(48,578)		(84,838)				(19,691)		(26,197)
	Total net earned premiums		1,392,612		1,353,208		1,239,663		1,198,079		1,127,816				287,048		269,859		(6.0)
	Net investment income (1)
	Yen denominated		142,473		138,397		138,513		149,449		138,073				34,749		34,351		(1.1)
	US$ denominated		157,717		167,541		202,905		215,171		247,277				53,853		62,996		17.0
	Net investment income		300,191		305,938		341,419		364,621		385,352				88,602		97,348		9.9
	Amortized hedge costs on foreign investments (2)		(28,938)		(22,816)		(8,391)		(13,155)		(19,773)				(7,671)		(796)		(89.6)
	Adjusted net investment income		271,253		283,122		333,028		351,466		365,579				80,931		96,551		19.3
	Other income excl. realized foreign
	currency gains (losses)		4,869		4,497		4,512		4,442		4,720				1,166		1,183

	Total adjusted revenues		1,668,734		1,640,827		1,577,203		1,553,988		1,498,115				369,145		367,593		(.4)

Benefits and claims:
	Benefits and claims, net
	Incurred claims -direct		727,491		734,471		743,247		788,572		781,774				215,238		224,857
	Incurred claims -assumed (ceded)		(45,657)		(37,806)		(31,798)		(36,141)		(70,748)				(16,877)		(19,407)
	Increase in FPB -direct		292,444		260,200		149,084		73,592		44,121				(7,011)		(23,025)
	Increase in FPB -assumed (ceded)		(6,497)		(11,377)		(11,425)		(5,618)		2,226				2,647		2,331
	Total benefits and claims, net, excluding reserve remeasurement		N/A		N/A		849,108		820,405		757,373				193,997		184,756
	Reserve remeasurement (gain) loss		N/A		N/A		(6,879)		(13,337)		(13,072)				(1,727)		(3,883)
	Total benefits and claims, net		967,782		945,487		842,229		807,068		744,301				192,270		180,873		(5.9)

Adjusted expenses:
	Amortization of deferred policy
	acquisition costs		77,286		68,818		43,131		44,123		45,840				11,281		12,289		8.9
	Insurance commissions		79,661		79,036		77,449		73,482		68,751				18,215		16,988		(6.7)
	Insurance and other expenses		189,203		199,606		202,586		198,493		182,364				43,129		36,880		(14.5)
	Total adjusted expenses		346,150		347,460		323,166		316,097		296,955				72,625		66,157


	Total benefits and adjusted expenses		1,313,932		1,292,947		1,165,395		1,123,165		1,041,256				264,895		247,029		(6.7)

	Pretax adjusted earnings	¥	354,802	¥	347,881	¥	411,808	¥	430,823	¥	456,859			¥	104,251	¥	120,564		15.6


	(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

Aflac Japan


Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)

		Years Ended December 31,										3 Months Ended March 31,
																		%
		2019		2020		2021		2022		2023			2023	2024		Change
Revenues:
	Net earned premiums
	Gross premiums	$	13,304	$	13,193	$	11,765	$	9,558	$	8,649			$	2,318	$	1,992
	Assumed (ceded)		(532)		(524)		(463)		(372)		(602)				(148)		(176)
	Total net earned premiums		12,772		12,670		11,301		9,186		8,047				2,170		1,816		(16.3)
	Net investment income (1)
	Yen denominated		1,307		1,296		1,262		1,140		985				263		231		(12.2)
	US$ denominated		1,446		1,569		1,845		1,641		1,755				407		424		4.2
	Net investment income		2,753		2,865		3,107		2,782		2,739				669		655		(2.1)
	Amortized hedge costs on foreign investments (2)		(257)		(206)		(76)		(112)		(157)				(58)		(6)		(89.7)
	Adjusted net investment income		2,496		2,659		3,031		2,669		2,582				611		648		6.1
	Other income excl. realized foreign
	currency gains (losses)		45		42		41		35		35				9		9

	Total adjusted revenues		15,313		15,371		14,373		11,890		10,664				2,790		2,473		(11.4)

Benefits and claims
	Benefits and claims, net
	Incurred claims -direct		6,671		6,875		6,776		6,038		5,582				1,626		1,512
	Incurred claims -assumed (ceded)		(419)		(354)		(290)		(275)		(502)				(127)		(131)
	Increase in FPB -direct		2,684		2,437		1,356		562		314				(52)		(154)
	Increase in FPB -assumed (ceded)		(60)		(107)		(104)		(43)		15				19		16
	Total benefits and claims, net, excluding reserve remeasurement		N/A		N/A		7,738		6,282		5,409				1,466		1,243
	Reserve remeasurement (gain) loss		N/A		N/A		(62)		(91)		(96)				(13)		(26)
	Total benefits and claims, net		8,877		8,851		7,675		6,191		5,313				1,453		1,217		(16.2)

Adjusted expenses:
	Amortization of deferred policy
	acquisition costs		709		644		393		338		326				85		83		(2.4)
	Insurance commissions		731		740		706		563		491				138		114		(17.4)
	Insurance and other expenses		1,734		1,873		1,843		1,517		1,299				326		248		(23.9)
	Total adjusted expenses		3,174		3,257		2,942		2,417		2,117				549		445

	Total benefits and adjusted expenses		12,051		12,108		10,618		8,609		7,430				2,002		1,663		(16.9)

	Pretax adjusted earnings	$	3,261	$	3,263	$	3,756	$	3,281	$	3,234			$	788	$	810		2.8


	(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

Aflac Japan


Balance Sheets
(In Millions)


	December 31,											March 31,
	2019		2020		2021		2022		2023		2023			2024

Assets:

Investments and cash	¥	12,847,994	¥	13,080,154	¥	13,645,902	¥	12,777,746	¥	12,566,939		¥	12,976,202		¥	12,993,051
Receivables, net of allowance for credit losses		28,219		20,782		22,439		23,138		24,848			25,467			60,415
Accrued investment income		65,485		62,722		67,493		76,489		74,666			68,075			72,487
Deferred policy acquisition costs		721,341		723,579		745,510		766,506		788,394			771,279			792,504
Other assets		308,411		320,351		386,832		387,065		946,644			682,018			948,349

Total assets	¥	13,971,450	¥	14,207,588	¥	14,868,176	¥	14,030,944	¥	14,401,491		¥	14,523,041		¥	14,866,806


Liabilities and Shareholders' Equity:

Future policy benefits	¥	8,924,868	¥	9,175,501	¥	11,755,704	¥	10,315,140	¥	10,444,044		¥	10,768,070		¥	10,299,213
Policy and contract claims		315,477		328,778		—		28		465			620			653
Unearned premiums		453,133		361,010		284,045		227,732		192,595			218,038			185,338
Other policyholders' funds		801,588		808,429		877,690		880,989		874,854			889,926			882,723
Income taxes (prim. deferred)		618,901		478,969		36,166		114,688		95,297			101,778			167,677
Other liabilities		357,135		253,219		502,633		575,554		576,879			694,739			796,972
Shareholders' equity		2,500,349		2,801,682		1,411,938		1,916,812		2,217,357			1,849,870			2,534,230

Total liabilities & shareholders' equity	¥	13,971,450	¥	14,207,588	¥	14,868,176	¥	14,030,944	¥	14,401,491		¥	14,523,041		¥	14,866,806

Aflac Japan


Balance Sheets
(In Millions)


	December 31,										March 31,
	2019		2020		2021		2022		2023			2023			2024

Assets:

Investments and cash	$	117,269	$	126,378	$	118,639	$	96,290	$	88,606			$	97,178		$	85,814
Receivables, net of allowance for credit losses		258		201		195		174		175				191			399
Accrued investment income		598		606		587		576		526				510			479
Deferred policy acquisition costs		6,584		6,991		6,482		5,776		5,559				5,776			5,234
Other assets		2,815		3,095		3,363		2,917		6,675				5,108			6,263

Total assets	$	127,523	$	137,271	$	129,266	$	105,734	$	101,541			$	108,762		$	98,189


Liabilities and Shareholders' Equity:

Future policy benefits	$	81,461	$	88,652	$	102,206	$	77,733	$	73,638			$	80,642		$	68,022
Policy and contract claims		2,879		3,177		—		—		3				5			4
Unearned premiums		4,136		3,488		2,470		1,716		1,358				1,633			1,224
Other policyholders' funds		7,316		7,811		7,631		6,639		6,169				6,665			5,830
Income taxes (prim. deferred)		5,650		4,630		314		781		619				681			1,088
Other liabilities		3,260		2,447		4,369		4,337		4,067				5,203			5,264
Shareholders' equity		22,820		27,068		12,276		14,528		15,687				13,935			16,757

Total liabilities & shareholders' equity	$	127,523	$	137,271	$	129,266	$	105,734	$	101,541			$	108,762		$	98,189

Aflac Japan


Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Yen In Millions)


		Net						Total			Benefits						Total				Pretax
		Earned		%	Adjusted		%	Adjusted		%	&		%			%	Adjusted		%		Adjusted		%
	Period	Premiums		Change	NII		Change	Revenues		Change	Claims, Net		Change	Amort.		Change	Expense		Change		Earn.		Change

	2019		1,392,612	(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
	2020		1,353,208	(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)
	2021		1,239,663	(8.4)		333,028	17.6		1,577,203	(3.9)		842,229	(10.9)		43,131	(37.3)		323,166		(7.0)		411,808		18.4
	2022		1,198,079	(3.4)		351,466	5.5		1,553,988	(1.5)		807,068	(4.2)		44,123	2.3		316,097		(2.2)		430,823		4.6
	2023		1,127,816	(5.9)		365,579	4.0		1,498,115	(3.6)		744,301	(7.8)		45,840	3.9		296,955		(6.1)		456,859		6.0


2022	1		304,884	(2.8)		79,042	5.9		385,000	(1.2)		206,890	(4.0)		10,886	3.3		77,095		(.8)		101,015		4.7
	2		302,213	(3.1)		94,004	8.4		397,358	(.5)		204,807	(3.7)		10,964	2.5		79,022		(.3)		113,529		5.5
	3		293,667	(4.5)		92,241	9.8		387,113	(1.4)		196,121	(4.8)		11,073	2.9		77,498		(4.0)		113,494		7.4
	4		297,315	(3.1)		86,180	(1.7)		384,517	(2.8)		199,250	(4.3)		11,201	.6		82,482		(3.5)		102,785		.8

2023	1		287,048	(5.9)		80,931	2.4		369,145	(4.1)		192,270	(7.1)		11,281	3.6		72,625		(5.8)		104,251		3.2
	2		283,377	(6.2)		87,963	(6.4)		372,544	(6.2)		186,310	(9.0)		11,359	3.6		72,808		(7.9)		113,426		(.1)
	3		285,305	(2.8)		98,866	7.2		385,363	(.5)		185,855	(5.2)		11,435	3.3		73,068		(5.7)		126,440		11.4
	4		272,085	(8.5)		97,819	13.5		371,063	(3.5)		179,866	(9.7)		11,766	5.0		78,454		(4.9)		112,742		9.7

2024	1		269,859	(6.0)		96,551	19.3		367,593	(.4)		180,873	(5.9)		12,289	8.9		66,157		(8.9)		120,564		15.6

Aflac Japan


Operating Ratios
(Before Management Fee)

		12-Mo. Rolling		Tot. Ben./		Tot. Adj.	Combined	Pretax
		Premium	Tot. Ben./	Premiums	Amort./	Expenses/	Ratio/	Profit
	Period	Persistency(1)	Premium	(3rd sector)	Premium	Total Adj. Rev.	Total Adj. Rev.	Margin

	2019	94.4	69.5	59.3	5.5	20.7	78.7	21.3
	2020	95.1	69.9	59.7	5.1	21.2	78.8	21.2
	2021	94.3	67.9	58.7	3.5	20.5	73.9	26.1
	2022	94.1	67.4	58.5	3.7	20.3	72.3	27.7
	2023	93.4	66.0	56.2	4.1	19.8	69.5	30.5


2022	1	94.3	67.9	58.5	3.6	20.0	73.8	26.2
	2	94.3	67.8	58.5	3.6	19.9	71.4	28.6
	3	94.3	66.8	59.4	3.8	20.0	70.7	29.3
	4	94.1	67.0	57.7	3.8	21.5	73.3	26.7

2023	1	93.9	67.0	57.7	3.9	19.7	71.8	28.2
	2	93.8	65.7	56.2	4.0	19.5	69.6	30.4
	3	93.5	65.1	54.8	4.0	19.0	67.2	32.8
	4	93.4	66.1	56.2	4.3	21.1	69.6	30.4

2024	1	93.4	67.0	57.5	4.6	18.0	67.2	32.8

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

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)		Change	Sales		Change	Premium Sales		Change

	2019		1,489.3	(2.5)		72,836	(18.0)		79,697	(16.9)
	2020		1,426.5	(4.2)		45,110	(38.1)		50,852	(36.2)
	2021		1,360.6	(4.7)		48,977	8.6		54,764	7.7
	2022		1,301.0	(4.4)		47,998	(2.0)		54,765	—
	2023		1,246.4	(4.2)		52,234	8.8		60,730	10.9



2022	1		1,345.6	(4.6)		10,679	(19.0)		11,925	(14.8)
	2		1,332.0	(4.3)		11,372	(6.2)		12,731	(6.4)
	3		1,315.7	(4.3)		12,639	12.1		13,884	10.2
	4		1,301.0	(4.4)		13,308	1.7		16,224	11.4

2023	1		1,281.4	(4.8)		10,952	2.6		13,213	10.8
	2		1,268.4	(4.8)		13,964	22.8		16,112	26.6
	3		1,257.4	(4.4)		13,606	7.7		15,600	12.4
	4		1,246.4	(4.2)		13,711	3.0		15,805	(2.6)

2024	1		1,232.6	(3.8)		10,767	(1.7)		12,534	(5.1)

Aflac Japan


Aflac Japan Product Mix
(New Annualized Premium Sales, Yen In Billions)

			% of		% of	Income	% of	Child	% of		% of	Ordinary	% of		% of
	Period	Cancer	Total	Medical	Total	Support	Total	Endowment	Total	WAYS	Total	Life Other	Total	Other	Total	Total
	2019	47.2	59.2	24.6	31.0	1.0	1.2	.2	.2	.4	.5	5.9	7.4	.4	.5	79.7
	2020	28.8	56.6	15.9	31.2	.5	1.0	.2	.4	.4	.7	4.8	9.5	.3	.6	50.9
	2021	27.0	49.2	20.4	37.2	.3	.5	.2	.3	.4	.8	4.9	9.0	1.6	3.0	54.8
	2022	30.9	56.5	14.6	26.6	.7	1.3	.2	.3	1.9	3.5	4.5	8.1	2.0	3.7	54.8
	2023	38.9	64.1	12.3	20.2	.3	.4	.2	.4	4.1	6.8	3.9	6.5	1.0	1.6	60.7


2022	1	6.4	53.0	3.8	31.4	.1	1.1	.1	.3	.1	.7	1.1	9.0	.5	4.5	11.9
	2	6.8	53.4	3.8	29.9	.3	2.2	—	.2	.1	.8	1.2	9.2	.6	4.3	12.7
	3	8.4	60.1	3.7	26.4	.2	1.2	—	.2	.1	.6	1.0	7.7	.5	3.8	13.9
	4	9.5	58.2	3.4	20.8	.1	.8	.1	.4	1.6	10.1	1.1	7.2	.4	2.5	16.2

2023	1	7.9	59.9	2.7	20.8	.1	.6	.1	.6	1.2	8.9	1.0	7.3	.2	1.9	13.2
	2	10.9	67.7	2.8	17.5	.1	.4	.1	.4	1.0	6.6	1.0	6.1	.2	1.3	16.1
	3	10.3	65.6	3.1	20.0	.1	.4	.1	.4	.9	6.0	.9	6.1	.2	1.5	15.6
	4	9.9	62.5	3.6	22.8	.1	.4	—	.3	.9	6.0	1.1	6.6	.2	1.4	15.8

2024	1	7.9	63.2	2.7	21.1	—	.3	—	.3	.7	5.3	1.0	8.1	.2	1.7	12.5

Aflac Japan


Aflac Japan Sales Force Data

			Number of Agencies by Type				Sales Contribution by Agency Type

		Period	Individual/ Independent Corporate	Affiliated Corporate	Bank	Total	Individual/ Independent Corporate	Affiliated Corporate	Bank	Licensed Sales Associates(1)	Recruited Agencies
		2019	7,683	1,343	367	9,393	45.7	50.0	4.3	109,265	77
		2020	7,231	1,312	361	8,904	52.3	42.6	5.1	111,886	48
		2021	6,779	1,283	360	8,422	51.1	43.7	5.2	111,854	62
		2022	6,159	1,239	359	7,757	49.5	46.5	4.0	110,259	38
		2023	5,751	1,203	360	7,314	46.7	50.0	3.3	113,010	24
		2024 YTD	5,659	1,191	360	7,210	48.9	48.0	3.1	112,645	12

	2022	1	6,447	1,266	360	8,073	48.9	46.5	4.6	109,873	6
		2	6,335	1,255	359	7,949	48.4	48.1	3.5	110,096	12
		3	6,260	1,246	359	7,865	49.3	46.2	4.5	110,400	12
		4	6,159	1,239	359	7,757	51.2	45.4	3.4	110,259	8

	2023	1	6,056	1,232	359	7,647	50.9	45.4	3.7	109,769	4
		2	5,947	1,219	360	7,526	44.8	52.5	2.7	112,593	5
		3	5,843	1,211	360	7,414	44.4	51.9	3.7	112,795	6
		4	5,751	1,203	360	7,314	47.7	49.2	3.1	113,010	9

	2024	1	5,659	1,191	360	7,210	48.9	48.0	3.1	112,645	12

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

Aflac Japan


Yen/Dollar Exchange Rates

				Yearly
		Closing	Qtr	Cum	%
	Period	Rate(1)	Avg	Avg	Change

	2019	109.56	N/A	109.07	1.2
	2020	103.50	N/A	106.86	2.1
	2021	115.02	N/A	109.79	(2.7)
	2022	132.70	N/A	130.17	(15.7)
	2023	141.83	N/A	140.57	(7.4)


2022	1	122.39	116.18	116.18	(8.9)
	2	136.68	129.39	122.79	(12.2)
	3	144.81	137.08	126.65	(14.3)
	4	132.70	141.87	130.17	(15.7)

2023	1	133.53	132.30	132.30	(12.2)
	2	144.99	137.53	134.97	(9.0)
	3	149.58	144.97	138.38	(8.5)
	4	141.83	148.11	140.57	(7.4)

2024	1	151.41	148.67	148.67	(11.0)









	(1) Closing rate is based on the latest available and published MUFG Bank Ltd. TTM mid-day exchange rate.

Corporate and Other


Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)

		Years Ended December 31,															3 Months Ended March 31,
																									%
		2019			2020			2021			2022			2023				2023	2024			Change
Revenues:
	Total net earned premiums		$	200		$	194		$	180		$	145		$	400				$	91		$	165		81.3
	Net investment income (1)		88			80			(73)			30			(77)					7			51			628.6
	Amortized hedge income (2)		89			97			57			68			121					29			28			(3.4)
	Adjusted net investment income		177			177			(16)			98			44					36			79			119.4
	Other income		15			13			11			24			15					2			3			50.0

	Total adjusted revenues		393			384			175			267			460					129			247			91.5

Benefits and expenses:
	Total net benefits and claims		194			180			161			141			467					46			107			132.6
	Interest expense		133			164			165			162			144					33			36			9.1
	Other adjusted expenses		137			155			142			181			273					57			107			87.7

	Total benefits and adjusted expenses		464			499			469			485			885					136			250			83.8

	Pretax adjusted earnings		$	(72)		$	(115)		$	(293)		$	(218)		$	(425)				$	(7)		$	(3)		57.1


(1)	The change in value of federal historic rehabilitation and solar investments in partnerships of $32 and $51 for the three-month periods ended March 31, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $33 and $52 for the three-month periods ended March 31, 2024, and 2023, 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

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.


•			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 are outside of management’s control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. 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 from derivatives associated with notes payable but excluding any non-recurring 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 contractual term of the derivative. 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 income/expense 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 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 income/expense 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.