BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
(In millions)	2011		2010		2011		2010
Revenues:
Aflac Japan:
Earned premiums	$	4,018	$	3,456	$	11,490	$	9,849
Net investment income		695		624		1,980		1,810
Other income		7		5		33		31
Total Aflac Japan		4,720		4,085		13,503		11,690
Aflac U.S.:
Earned premiums		1,192		1,150		3,547		3,438
Net investment income		147		138		439		404
Other income		3		2		8		9
Total Aflac U.S.		1,342		1,290		3,994		3,851
Other business segments		13		12		40		35
Total business segment revenues		6,075		5,387		17,537		15,576
Realized investment gains (losses)		(83)		9		(1,330)		(127)
Corporate		62		58		183		159
Intercompany eliminations		(67)		(60)		(198)		(170)
Total revenues	$	5,987	$	5,394	$	16,192	$	15,438

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2011		2010		2011		2010
Pretax earnings:
Aflac Japan	$	1,027	$	866	$	2,937	$	2,485
Aflac U.S.		220		228		719		699
Other business segments		(1)		0		1		(3)
Total business segment pretax operating earnings		1,246		1,094		3,657		3,181
Interest expense, noninsurance operations		(44)		(37)		(126)		(99)
Corporate and eliminations		(14)		(11)		(43)		(37)
Pretax operating earnings		1,188		1,046		3,488		3,045
Realized investment gains (losses)		(83)		9		(1,330)		(127)
Total earnings before income taxes	$	1,105	$	1,055	$	2,158	$	2,918
Income taxes applicable to pretax operating earnings	$	410	$	362	$	1,206	$	1,055
Effect of foreign currency translation on operating earnings		45		32		144		65

Assets were as follows:

	September 30,			December 31,
(In millions)	2011			2010
Assets:
Aflac Japan	$	99,903		$	87,061
Aflac U.S.		14,030			13,095
Other business segments		170			155
Total business segment assets		114,103			100,311
Corporate		15,969			14,047
Intercompany eliminations		(15,352	)		(13,319	)
Total assets	$	114,720		$	101,039