BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

BUSINESS SEGMENT INFORMATION

2.   BUSINESS SEGMENT INFORMATION

The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. Operating business segments that are not individually reportable are included in the “Other business segments” category.

We do not allocate corporate overhead expenses to business segments. We evaluate and manage our business segments using a financial performance measure called pretax operating earnings. Our definition of operating earnings excludes the following items from net earnings on an after-tax basis: realized investment gains/losses (securities transactions, impairments, and the impact of derivative and hedging activities) and nonrecurring items. We then exclude income taxes related to operations to arrive at pretax operating earnings. Information regarding operations by segment follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2011		2010		2011		2010
Revenues:
Aflac Japan:
Earned premiums	$	3,770	$	3,186	$	7,472	$	6,393
Net investment income		636		593		1,285		1,186
Other income		5		(1)		25		26
Total Aflac Japan		4,411		3,778		8,782		7,605
Aflac U.S.:
Earned premiums		1,186		1,147		2,356		2,289
Net investment income		148		135		291		267
Other income		3		3		6		5
Total Aflac U.S.		1,337		1,285		2,653		2,561
Other business segments		13		11		28		23
Total business segment revenues		5,761		5,074		11,463		10,189
Realized investment gains (losses)		(668)		(89)		(1,247)		(135)
Corporate		60		49		121		101
Intercompany eliminations		(65)		(54)		(133)		(111)
Total revenues	$	5,088	$	4,980	$	10,204	$	10,044
	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2011		2010		2011		2010
Pretax earnings:
Aflac Japan	$	931	$	798	$	1,911	$	1,619
Aflac U.S.		246		227		499		471
Other business segments		0		(1)		0		(2)
Total business segment pretax operating earnings		1,177		1,024		2,410		2,088
Interest expense, noninsurance operations		(41)		(31)		(82)		(63)
Corporate and eliminations		(15)		(15)		(29)		(27)
Pretax operating earnings		1,121		978		2,299		1,998
Realized investment gains (losses)		(668)		(89)		(1,247)		(135)
Total earnings before income taxes	$	453	$	889	$	1,052	$	1,863
Income taxes applicable to pretax operating earnings	$	388	$	339	$	795	$	693
Effect of foreign currency translation on operating earnings		51		12		99		33

Assets were as follows:

(In millions)	June 30,         2011			December 31,        2010
Assets:
Aflac Japan	$	92,290		$	87,061
Aflac U.S.		13,208			13,095
Other business segments		162			155
Total business segment assets		105,660			100,311
Corporate		14,950			14,047
Intercompany eliminations		(14,378	)		(13,319	)
Total assets	$	106,232		$	101,039