DEFERRED POLICY ACQUISITION COSTS

3 Months Ended

Mar. 31, 2024

The following tables present a rollforward of deferred policy acquisition costs by reporting segment and disaggregated by product type.


	March 31, 2024
	Aflac Japan								Aflac U.S.
(In millions)	Cancer		Medical and Other Health		Life Insurance		Other		Accident		Disability		Critical Care		Hospital Indemnity		Dental/Vision		Life Insurance		Other		Total
Deferred policy acquisition costs:
Balance at December 31, 2023	$	2,971	$	2,041	$	491	$	56	$	917	$	625	$	1,336	$	436	$	86	$	172	$	1	$	9,132
Capitalization	72		29		9		0		32		29		39		19		4		19		2		254
Amortization expense	(49)		(25)		(8)		(1)		(36)		(29)		(38)		(18)		(4)		(7)		0		(215)

Foreign currency translation and other	(189)		(129)		(32)		(2)		0		0		0		0		0		0		0		(352)
Balance at March 31, 2024	$	2,805	$	1,916	$	460	$	53	$	913	$	625	$	1,337	$	437	$	86	$	184	$	3	$	8,819


	December 31, 2023
	Aflac Japan								Aflac U.S.
(In millions)	Cancer		Medical and Other Health		Life Insurance		Other		Accident		Disability		Critical Care		Hospital Indemnity		Dental/Vision		Life Insurance		Other		Total
Deferred policy acquisition costs:
Balance at December 31, 2022	$	3,035	$	2,161	$	525	$	55	$	904	$	613	$	1,304	$	418	$	88	$	135	$	1	$	9,239
Capitalization	317		123		33		8		151		125		173		84		10		61		1		1,086
Amortization expense	(184)		(105)		(34)		(3)		(138)		(113)		(141)		(66)		(12)		(24)		4		(816)

Foreign currency translation and other	(197)		(138)		(33)		(4)		0		0		0		0		0		0		(5)		(377)
Balance at December 31, 2023	$	2,971	$	2,041	$	491	$	56	$	917	$	625	$	1,336	$	436	$	86	$	172	$	1	$	9,132

The Company uses the following constant level bases to amortize deferred policy acquisition costs:


Policy Type						Constant-level Basis
Life Products (U.S.)						Face Amount
Health Products (U.S.)						Number of Policies in Force
Health & Life Products (Japan)						Units in Force

Face amount is the stated dollar amount that the policy’s beneficiaries receive upon the death of the insured. For life and health products issued in Japan, the constant-level basis used is units in force, which is a proxy for face amount and insurance in force, respectively. Future DAC amortization is impacted by persistency.

There were no changes to the inputs, judgments, assumptions and methods used to determine amortization amounts during the three-month periods ended March 31, 2024 and 2023. For additional information on deferred policy acquisition costs, see Notes 1 and 6 of the Notes to the Consolidated Financial Statements in the 2023 Annual Report.