10-K 0001628280-26-011402 (2026-02-25) vs 10-K 0000004977-25-000047 (2025-02-26)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 11,620 |
10.0% |
| MD&A | Item 7 | 19,356 |
16.4% |
| Legal Proceedings | Item 3 | 180 |
not compared |
| Accounting Policies | Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 7,619 |
35.6% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Accounting Policies 270 words changed in this paragraph; it is 34% similar to last year's version.
The Company has investments in variable interest entities (VIEs). Criteria for evaluating VIEs for consolidation focus on determining VIEs, which consist of fixed maturity securities, loan receivables, limited partnerships and derivative instruments. The Company is the primary beneficiary of the VIE if the Company has (1) the power to direct the activities of the VIE that most significantly impact the entity's economic performance and (1) (2) the obligation to absorb losses of the VIE or (2) the right to receive benefits from the VIE. The If the Company determines that it is the primary beneficiary of certain VIEs, and therefore the VIE, it consolidates these entities in its consolidated financial statements. While the consolidated Consolidated VIEs generally operate within a defined set of contractual terms, there are certain powers that are retained by the Company that are considered significant in the conclusion that the Company is the primary beneficiary. These powers vary by structure but generally include the initial selection of the underlying collateral; the ability to obtain the underlying collateral in the event of default; and, the ability to appoint or dismiss key parties in the structure. In particular, the Company's powers surrounding the underlying collateral were considered to be the most significant powers because these most significantly impact the economics of the VIE. The Company has no obligation to provide any continuing financial support to any of the entities in which it is the primary beneficiary. The Company's maximum loss is limited to its original investment and, in certain cases, to any unfunded commitment held in the VIE. Neither the Company nor any of its creditors have the ability to obtain the underlying collateral, nor does the Company have control over the instruments held in the VIEs, unless there is an event of default. For those entities where the Company is the primary beneficiary, the consolidated entity's assets are segregated on the balance sheet by the caption "consolidated variable interest entities," and consist of fixed maturity securities, loan receivables, limited partnerships and derivative instruments. entities" in the consolidated balance sheets.
Source: Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001628280-26-011402 vs Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000004977-25-000047
Risk Factors 217 words changed in this paragraph; it is 51% similar to last year's version.
Due to the size of Aflac Japan, where functional currency is the Japanese yen, fluctuations in the foreign exchange rate between the Japanese yen and the U.S. dollar can have had, and may continue to have, a significant effect on the Company's reported financial position and results of operations. Aflac Japan's premiums and a significant portion of its investment income are received in Japanese yen, and its claims and almost all expenses are paid in Japanese yen. Aflac Japan purchases In accordance with U.S. GAAP, the Company translates its Japanese yen-denominated assets and U.S. dollar-denominated assets, which may be hedged to yen, to support yen-denominated policy liabilities. Certain unhedged U.S. dollar denominated assets and liabilities held by Aflac Japan are re-measured to yen with the volatility reported in earnings. Furthermore, the yen-denominated balance sheet of Aflac Japan is translated financial statement accounts into U.S. dollars for financial reporting purposes with the resulting foreign exchange impact reflected currency translation adjustments included in equity. Accordingly, fluctuations in the yen/dollar exchange rate can have a significant effect on the Company's reported financial position and results of operations. Yen Japanese yen weakening has the effect of suppressing current year results in relation to the prior year, while including the resulting negative impact on equity. Japanese yen strengthening has the effect of magnifying current year results in relation to the prior year. In addition, year, including the weakening of the yen relative to the U.S. dollar will generally adversely affect the value of the Company's yen-denominated investments in U.S. dollar terms. When the yen strengthens in relation to the U.S. dollar, the yen value of Aflac Japan's unhedged U.S. dollar-denominated investments decreases, resulting in a decrease in Aflac Japan regulatory capital. Further, unhedged U.S. dollar-denominated securities held by Aflac Japan are exposed to foreign exchange fluctuations, which also positive impact Aflac Japan regulatory capital. As a result, periods of unusually volatile currency exchange rates could result in limitations on dividends available to the Parent Company. equity.
Source: Item 1A, 10-K 0001628280-26-011402 vs Item 1A, 10-K 0000004977-25-000047
MD&A 177 words changed in this paragraph; it is 35% similar to last year's version.
Discount rates used to calculate net premiums are locked in at policy inception and represent the basis to recognize interest expense accreted on insurance reserves included in benefits and claims, excluding reserve remeasurement in the consolidated statements of earnings. Discount rates used to measure the carrying value of LFPB in the consolidated balance sheets are updated each reporting period, and the differences between the liability balances calculated using the These locked-in discount rates and the updated discount rates are recognized in accumulated other comprehensive income (loss). The determined separately for each issue-year cohort as a single discount rate methodology is designed to prioritize observable inputs based on market data available in that reflects the local debt markets where duration characteristics of the respective policies were issued in corresponding insurance contracts and will remain unchanged after the currency in which the policies are denominated. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company uses various estimation techniques consistent with the fair value guidance in ASC 820 - Fair Value Measurement, which include, but are not limited to: (i) for tenors where there is less observable market data and/or the observable market data is available for similar instruments, estimating tenor-specific single-A credit spreads and calendar year of issue.
Source: Item 7, 10-K 0001628280-26-011402 vs Item 7, 10-K 0000004977-25-000047
Every change, by type
Sentences and paragraphs of AFL's Risk Factors and MD&A, 10-K 2026-02-25 against 10-K 2025-02-26.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
Also in accordance with U.S. GAAP, U.S. dollar denominated assets and liabilities held by Aflac Japan are remeasured to Japanese yen and Japanese yen-denominated assets and liabilities held by Aflac Re are remeasured to U.S. dollar with the resulting foreign currency remeasurement for certain of these assets and liabilities included in earnings. Consequently, fluctuations in the yen/dollar exchange rate have resulted and could continue to result in significant earnings volatility. Japanese yen weakening in relation to the U.S. dollar increases the Japanese yen value on U.S. dollar denominated asset, while Japanese yen strengthening decreases the Japanese yen value of the U.S. dollar denominated assets.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedRisk Factors
In addition, differences between interest rates in Japan and the U.S. can lead to weakening of the Japanese yen relative to the U.S. dollar and could suppress the Company's reported financial position and results of operations relative to the comparable prior period.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedRisk Factors
pay dividends to the Parent Company. The Company has historically maintained and currently maintains the size of the unhedged portfolio at levels below the economic equity surplus in Aflac Japan, but this strategy may not be successful.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedRisk Factors
These hedging activities are limited in scope and the strategies may not be successful.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedRisk Factors
regularly reviewed by the Company and may be revised if future expectations change. These experience deviations and assumption updates could have a material adverse effect on the Company's business, results of operations and financial condition.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedRisk Factors
The Company could also be subject to legal risk, including government enforcement action and civil litigation, related to cyber-attacks and security breaches, which could adversely affect the Company’s business, reputation, financial condition or results of operations. In addition, the Company may be adversely impacted by reputational harm or a loss of confidence in the security and integrity of its information technology systems among customers, beneficiaries, employees, agents, and others.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedRisk Factors
the Company holds. Further, the Company cannot predict the effects that any legal or regulatory changes made in response to climate change concerns or major public health issues would have on the Company's business.
Read it in 10-K 2026-02-25 at sec.gov ↗
RemovedRisk Factors
corresponding dividends and capital deployment. The Company is also subject to the risk that any collateral providing credit enhancement to the Company's investments could deteriorate.
Read it in 10-K 2025-02-26 at sec.gov ↗
RemovedRisk Factors
complexity of models the Company utilizes expands, increasing the Company's exposure to error in the design, implementation or use of models, including the associated input data and assumptions.
Read it in 10-K 2025-02-26 at sec.gov ↗
RewordedRisk Factors
Although the minor data leakage issues the Company has experienced to experienced, as of the date of this report, have not had been determined to have a reasonably likely material effect impact on its business, there is no assurance that the Company's financial condition or results of operations, the Company's security systems or processes will may not prevent or mitigate future break-ins, tampering, security breaches or other cyber-related attacks.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
Economic uncertainty is also driven impacted by potential policy changes from a new presidential administration in the U.S. U.S., including proposals to impose proposed domestic regulations focused on consumer pricing, trade tariffs and the potential for retaliatory tariffs from other countries, as well as increasing trade restrictions driven by security concerns. concerns and broader geopolitical tensions.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
The Additionally, the Parent Company utilizes forward contracts as part of its Enterprise Corporate Hedging Program to accomplish a dual objective protect the economic value of Aflac Japan in U.S. dollar terms by hedging foreign currency exchange rate risk related to dividend payments by Aflac Japan, and reducing enterprise-wide hedge costs. Japan.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
Some of the U.S. dollar-denominated asset classes that the Company has added, and anticipates continuing to add, have less liquidity than investment-grade corporate bonds. bonds and in periods of market stress, certain of these U.S. dollar-denominated asset classes may experience significantly reduced liquidity, increased valuation uncertainty or wider bid-ask spreads.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
Yen weakening has the effect of suppressing current year results in relation to the prior year, while Japanese yen strengthening has the effect of magnifying current year results in relation to the prior year. year, including the resulting positive impact on equity.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
Government actions to stimulate the economy affect the value of the Company's existing holdings, its reinvestment rate on new investments in JGBs or other Japanese yen-denominated assets, and consumer behavior relative to the Company's suite of insurance products.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
Furthermore, GAAP, the Company translates its Japanese yen-denominated balance sheet of Aflac Japan is translated financial statement accounts into U.S. dollars for financial reporting purposes with the resulting foreign exchange impact reflected currency translation adjustments included in equity.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
Yen Japanese yen weakening has the effect of suppressing current year results in relation to the prior year, while yen strengthening has including the effect of magnifying current year results in relation to the prior year. resulting negative impact on equity.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
Under these criteria, dividend capacity at the Japan subsidiary will be is defined as retained earnings plus other total equity excluding common stock and capital reserve less reserves but reduced for net after-tax net unrealized losses on available-for-sale securities.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
The settlement of the foreign exchange currency derivatives is reported included in settlement of derivatives, net in the investing activities section of the Company’s consolidated statements of cash flows in the line item settlement of derivatives, net. flows.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
In addition to a security, or an asset class, or issuer-specific credit fundamentals, it considers relevant historical information (e.g. loss statistics), current market conditions and reasonable and supportable micro and macroeconomic forecasts.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedRisk Factors
In addition to a security, or an asset class, or issuer-specific credit fundamentals, it considers relevant historical information (e.g. loss statistics), current market conditions and reasonable and supportable micro and macroeconomic forecasts.
Read it in 10-K 2026-02-25 at sec.gov ↗
Quiet changesRisk Factors
However, if If the markets experience a significant strengthening of Japanese yen, this could cause cash strain at the Parent Company as a result of cash collateral and potentially cash settlement requirements.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedMD&A
As previously disclosed, the Company identified an incident involving unauthorized access to a limited number of its systems in the U.S. on June 12, 2025. The Company promptly initiated its cybersecurity incident response protocols and believes it contained the unauthorized access within hours. The Company's systems were not affected by ransomware, and the Company remained able to serve its policyholders and underwrite policies, review claims, and otherwise service customers as usual.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedMD&A
The Company is aware of the exfiltration of certain data including claims information, health information, social security numbers and/or other personal information relating to a substantial number of customers, beneficiaries, employees, agents, and other individuals in the Company’s U.S. business. In December 2025, the Company completed a detailed review of the potentially impacted files and determined that personal information associated with approximately 22.65 million individuals was involved, and began notifying impacted individuals and regulatory authorities as required by applicable laws.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedMD&A
Based on the information currently available, as of the date of this report, the Company does not believe that the incident is reasonably likely to have a material impact on the Company’s financial condition or results of operations. The Company continues to assess the financial impact of the cybersecurity incident, including how much of the financial impact will be covered by insurance. As a result of the cybersecurity incident, the Company has incurred certain costs and may,
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedMD&A
depending on future developments, incur additional costs, including but not limited to: costs to provide credit monitoring, identity theft protection, and Medical Shield to impacted individuals and maintain a call center related to the provision of such services; incident response costs; expenses arising from potential litigation, governmental investigations, or enforcement actions; expenses related to compliance, finance, and legal advisory services; elevated cybersecurity insurance premiums; and costs incurred in meeting evolving legal and regulatory requirements concerning cybersecurity governance, monitoring, and disclosure. The costs associated with the incident to date, including the cost to investigate and respond to the incident as well as related legal and other professional services, resulted in a slight increase to the Company's expenses and are recorded in the insurance and other expenses line in the consolidated statement of earnings.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedMD&A
Customer demographics continue to shift, generating new opportunities across various consumer groups, including millennials and diverse cultural communities. As customer expectations and preferences change, trends indicate that both existing and potential customers seek affordable options that are easily understood and accessible via digital platforms. Furthermore, the insurance industry continues to be impacted by the financial security requirements and healthcare demands of the aging baby boomer generation.
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedMD&A
The Company's objectives in 2026 include preserving solid pretax profit margins with increased sales production achieved through the ongoing promotional efforts for products launched in 2025 in Aflac Japan and continued growth initiatives across both its Aflac Japan and Aflac U.S. segments. The Company believes this strategy positions it for future growth
Read it in 10-K 2026-02-25 at sec.gov ↗
AddedMD&A
and efficiency while defending and leveraging its market-leading position, powerful brand recognition and varied distribution in Japan and the U.S.
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AddedMD&A
•foreign currency swaps used to economically hedge the foreign currency exchange risk associated with certain investments denominated in other foreign currencies held by Aflac Japan;
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AddedMD&A
•foreign currency forwards used to economically hedge the foreign currency exchange risk associated with certain investments denominated in other foreign currencies held by Aflac Japan;
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AddedMD&A
As of December 31, 2025, Aflac Japan exceeded 22 million individual policies in force in Japan, with approximately 14 million cancer policies in force in Japan.
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AddedMD&A
•Aflac Japan economically hedges the foreign currency exchange risk on certain of its investments that are denominated in other foreign currencies.
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AddedMD&A
In addition to the U.S. dollar Program, Aflac Japan utilizes foreign currency forwards to economically hedge the foreign currency exchange risk on certain of its variable-rate investments denominated in other foreign currencies. As of December 31, 2025, the Company had foreign currency forwards on other foreign currency-denominated investments with a fair value of $135 million.
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RemovedMD&A
Customer demographics continue to evolve and new opportunities present themselves in different customer segments such as the millennial and multicultural markets. Customer expectations and preferences are changing. Trends indicate existing customers and potential customers seek cost-effective solutions that are easily understood and can be accessed through technology-enabled devices. Additionally, income protection and the health needs of retiring baby boomers are continuing to shape the insurance industry.
Read it in 10-K 2025-02-26 at sec.gov ↗
RemovedMD&A
The Company's objectives in 2025 include maintaining strong pretax margins with increased sales production through product refreshments and growth initiatives in both its Aflac Japan and Aflac U.S. segments. For Aflac Japan, this includes continuing to focus on third sector products as well as introducing policies to new and younger customers. For Aflac U.S., this includes continuing to focus on realizing benefits from its buy to build initiatives and other platform investments, maintaining strong expense management discipline and strengthening the number of career agents for Aflac U.S. The Company believes that its strategy of positioning itself for future growth and efficiency while defending and leveraging its market-leading position, powerful brand recognition and varied distribution in Japan and the U.S. will provide support toward these objectives.
Read it in 10-K 2025-02-26 at sec.gov ↗
RemovedMD&A
In 2023, other items excluded from adjusted earnings included an impairment for certain finite-lived intangible assets of approximately $11 million as a result of the Company exiting the third-party administration business acquired in connection with the purchase of Aflac Benefits Solutions, Inc. in 2019. The impairment of these intangible assets was not related to the ongoing operations of the business and occurs infrequently; therefore, the Company excluded the impairment from adjusted earnings.
Read it in 10-K 2025-02-26 at sec.gov ↗
RemovedMD&A
•Adjusted net investment income increased primarily due to higher variable net investment income of ¥18 billion, the weakening of the yen on U.S. dollar investments of ¥17 billion and lower amortized hedge cost of ¥16 billion.
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RemovedMD&A
•Total adjusted expenses decreased primarily due to internal reinsurance activity.
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RemovedMD&A
Aflac Japan continues to promote digital and web-based sales to groups and use of its system that enables smart device-based insurance application by allowing the customer and an Aflac Japan operator to see the same screen through their smart devices. Further, Aflac Japan continues to utilize its virtual sales tool that enables online consultations and policy applications to be completed entirely online.
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RemovedMD&A
•Net earned premiums increased primarily due to higher net earned premiums from growth initiatives including group life and disability and consumer markets businesses.
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RemovedMD&A
•Total adjusted expenses decreased primarily due to improved expense efficiency.
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RemovedMD&A
Derivatives are designed to reduce risk on an economic basis while minimizing the impact on financial results. The Company’s derivatives programs vary depending on the type of risk being hedged. See Note 4 of the Notes to the Consolidated Financial Statements for:
Read it in 10-K 2025-02-26 at sec.gov ↗
RemovedMD&A
In April 2024, ALIJ redeemed ¥30.0 billion of its .963% subordinated bonds due April 2049.
Read it in 10-K 2025-02-26 at sec.gov ↗
RemovedMD&A
In March 2024, the Parent Company issued five series of senior notes totaling ¥75.0 billion through a private placement. The first series, which totaled ¥18.3 billion, bears interest at a fixed rate of 1.600% per annum, payable semi-annually, and will mature in March 2034. The second series, which totaled ¥15.0 billion, bears interest at a fixed rate of 1.740% per annum, payable semi-annually, and will mature in March 2036. The third series, which totaled ¥16.5 billion, bears interest at a fixed rate of 1.920% per annum, payable semi-annually, and will mature in March 2039. The fourth series, which totaled ¥5.7 billion, bears interest at a fixed rate of 2.160% per annum, payable semi-annually, and will mature in March 2044. The fifth series, which totaled ¥19.5 billion, bears interest at a fixed rate of 2.400% per annum, payable semi-annually, and will mature in March 2054. These notes are redeemable at the Parent Company's option (i) in whole at any time or (ii) in part from time to time in an amount not less than 5% of the aggregate principal amount then outstanding of the notes to be redeemed.
Read it in 10-K 2025-02-26 at sec.gov ↗
RemovedMD&A
In March 2024, the Parent Company issued three series of senior notes totaling ¥48.6 billion through a public debt offering under its U.S. shelf registration statement. The first series, which totaled ¥13.0 billion, bears interest at a fixed rate of 1.048% per annum, payable semi-annually, and will mature in March 2029. The second series, which totaled ¥27.9 billion, bears interest at a fixed rate of 1.412% per annum, payable semi-annually, and will mature in March 2031. The third series, which totaled ¥7.7 billion, bears interest at a fixed rate of 1.682% per annum, payable semi-annually, and will mature in March 2034. These notes are redeemable at the Parent Company’s option at any time, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance. In addition, the notes maturing in March 2029, March 2031 and March 2034 are redeemable at the Parent Company's option, in whole or in part from time to time, on or after December 21, 2028, December 31, 2030 and September 21, 2033, respectively, at a redemption price equal to the aggregate principal amount of the applicable series to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption.
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RewordedMD&A
(In millions) Par Amortized Fair Unrealized Cost (1) Value Value Gain (Loss) 2024 2025 Investcorp Capital Limited $ 221 222 $ 221 222 $ 206 224 $ (15) 2 Hella KG Hueck and Co. 141 140 139 139 140 1 (1) KLM Royal Dutch Airlines 126 126 90 (36) 128 127 88 (39) Telecom Italia SpA 126 126 170 44 Thames Water Utility 126 126 113 (13) 128 128 163 35 IKB Deutsche Industriebank AG 82 44 72 28 Generalitat de Catalunya 51 22 49 27 Hawaiian Electric Industries Inc 35 35 29 (6) 83 46 69 23 Amarok Parent LLC 25 23 25 2 CPI Property Group SA 19 19 18 (1) Tralka Spa (Chadwick) 18 18 16 (2) Hawaiian Electric Industries Inc. 13 13 11 (2) Other Issuers 23 25 24 (1) 18 18 18 0 Subtotal (2) 948 883 911 28 795 754 771 17 High yield corporate bonds 545 416 508 92 510 403 500 97 Middle market loans 4,176 4,007 3,953 (54) 4,133 3,969 3,885 (84) Grand Total $ 5,669 5,438 $ 5,306 5,126 $ 5,372 5,156 $ 66 30
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedMD&A
Policy loans 168 35 172 38 0 203 210 Short-term investments (2) 484 366 749 1,599 596 223 554 1,373 Limited partnerships 2,861 306 268 3,435 3,273 536 300 4,109 Real estate owned 570 112 777 125 0 682 902 Other 0 39 28 0 39 28 Investment in affiliate (3) 0 638 (638) 1,164 (1,164) 0 Total investments 75,171 15,765 7,922 98,858 74,248 16,261 7,006 97,515 Cash and cash equivalents 2,062 1,010 3,157 6,229 2,025 829 3,391 6,245 Total investments and cash $ 77,233 76,273 $ 16,775 17,090 $ 11,079 10,397 $ 105,087 103,760
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedMD&A
The Company's consolidated Japanese yen-denominated net asset position was partially hedged at $6.8 billion as of December 31, 2025, with hedging instruments comprised of $5.0 billion of Japanese yen-denominated debt and $1.8 billion of foreign currency forwards, compared with $5.9 billion as of December 31, 2024, with hedging instruments comprised of $4.1 billion of Japanese yen-denominated debt and $1.8 billion of foreign currency forwards, compared with $6.8 billion as of December 31, 2023, with hedging instruments comprised of $3.7 billion of yen-denominated debt and $3.1 billion of foreign currency forwards and options. forwards.
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RewordedMD&A
Net investment gains losses in 2024 2025 included an increase in credit loss allowances of $256 million; $1.1 billion $467 million of net gains losses from certain derivative and foreign currency gains or losses; $140 an increase in credit loss allowances of $191 million and $6 million of net gains on impairments; offset by a $72 million gain from an increase in the fair value of equity securities; securities and $259 $20 million of net gains from sales and redemptions.
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RewordedMD&A
GAAP and Actuarial Standards of Practice and Incurred claims represent claims that are expected to occur in the future and already incurred claims (which represent claims that have been incurred and are in the process of payment as well as an estimate of those claims that have been incurred but have not yet been reported to the Company) and are measured using the net level premium method. Company.
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RewordedMD&A
In 2024, 2025, the increase in new annualized premium sales on a Japanese yen basis was driven primarily driven by continued strong sales of Aflac Japan's the new life cancer insurance product, Tsumitasu, that was launched in June 2024 and offers an asset formation component and a nursing care option. Miraito, as well as sales of Tsumitasu.
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RewordedMD&A
Corporate and Other Total 2024 Available-for-sale, fixed 2025 Fixed maturity securities, securities available-for-sale, at $ 45,970 44,782 $ 12,296 12,426 $ 7,003 6,913 $ 65,269 at 64,121 fair value Held-to-maturity, fixed Fixed maturity securities, 15,966 securities held-to-maturity, at 16,120 0 0 15,966 at 16,120 amortized cost (1) Equity securities 458 632 2 336 796 253 887 Commercial mortgage and other loans:
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedMD&A
If interest rates decreased by 100 basis points, the Company's LFPB balance as of December 31, 2024 would increase by $9.6 billion, and Likewise, if interest rates increased by 100 basis points, the Company's LFPB balance as of December 31, 2024 2025 would decrease by $7.6 billion. $5.9 billion, assuming all other factors remain constant.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedMD&A
The Company uses foreign currency forwards to hedge foreign currency exchange risk on certain U.S. dollar-denominated investments held by Aflac Japan and one-sided foreign currency put options to mitigate the settlement risk on of a decline in the value of U.S. dollar-denominated assets (in Japanese yen terms) related to extreme foreign currency exchange rate changes.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedMD&A
For the 2025 through 2027 period, 2026, the Company expects Aflac U.S. to generate a benefit ratio in the range of 48% to 52% driven by growth in life, disability, and an expense ratio in the range dental and vision insurance products, all of 36% to 39%. which typically carry higher benefit ratios.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedMD&A
If interest rates decreased by 100 basis points, the Company's LFPB balance as of December 31, 2024 2025 would increase by $9.6 $7.4 billion, and if interest rates increased by 100 basis points, the Company's LFPB balance as of December 31, 2024 would decrease by $7.6 billion. assuming all other factors remain constant.
Read it in 10-K 2026-02-25 at sec.gov ↗
RewordedMD&A
Net earnings were $3.6 billion, or $6.82 per diluted share, for the full year of 2025, compared with $5.4 billion, or $9.63 per diluted share, for the full year of 2024, compared with $4.7 billion, or $7.78 per diluted share, for the full year of 2023. 2024.
Read it in 10-K 2026-02-25 at sec.gov ↗
Quiet changesMD&A
The majority Substantially all of the supplemental health and life insurance policies the Company issues are classified as long-duration contracts.
Read it in 10-K 2026-02-25 at sec.gov ↗
