Aflac Incorporated Announces Third Quarter 2026 Results,
COLUMBUS, Ga. - November 4, 2026 - Aflac Incorporated (NYSE: AFL) today reported its third quarter results.
• Net earnings were $303 million, or $0.61 per diluted share, compared with $1.6 billion, or $3.08 per diluted share a year ago.
• Adjusted earnings* were $1.2 billion, compared with $1.3 billion a year ago, reflecting a decrease of 8.5%.
• Annualized adjusted return on equity excluding foreign currency remeasurement* was 23.7%.
• The Company returned $1.1 billion to shareholders, consisting of $804 million in share repurchase and $305 million in dividends.
• Aflac Incorporated reached the milestone of 44 consecutive years of dividend increases with the fourth quarter declaration of $0.61.
• Aflac Japan ceded approximately ¥500 billion of reserves on an FSA basis associated with cancer insurance policies to Aflac Re Bermuda.
Commenting on the company’s results, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos stated: "Aflac delivered solid adjusted earnings for the quarter and for the first nine months. These results demonstrate our drive to execute our strategy and create long-term value for our shareholders. In Japan, we have continued to address our customers' needs at different life stages through products including Anshin Palette (medical insurance), Miraito (cancer insurance) and Tsumitasu (savings-type life insurance). In addition, the Aflac Japan results reflect the impact of our reinsurance strategy on the income statement included within Corporate and Other results, where Aflac Re Bermuda is consolidated. In the U.S., our focus remains on meeting the evolving needs of employers and their employees with supplemental health products and related benefits.
"We remain focused on more profitable growth and the tactical, opportunistic deployment of capital. We treasure our 2026 milestone of 44 consecutive years of dividend increases. We continue to deploy our balanced approach of investing in growth and driving long-term value while being there for our policyholders when they need us most." 1
Total revenues were $3.3 billion in the third quarter of 2026, compared with $4.7 billion in the third quarter of 2025. Net earnings were $303 million, or $0.61 per diluted share, compared with $1.6 billion, or $3.08 per diluted share a year ago, primarily due to realized losses associated with the strategic repositioning of the portfolio during the third quarter. In addition, net earnings in the third quarter of 2026 included a $51 million, or $0.10 per diluted share, tax capital loss valuation allowance established against a portion of the Company's deferred tax assets associated with tax capital loss carryforwards. Net earnings in the third quarter of 2026 also included net investment losses of $1.1 billion, or $2.15 per diluted share, compared with net investment gains of $275 million, or $0.52 per diluted share a year ago. These net investment losses include net losses from sales and redemptions of $842 million; net losses of $146 million on certain derivatives and foreign currency activities; $102 million of current expected credit losses (CECL); and impairments of $1 million; offset by a $19 million gain from an increase in the fair value of equity securities.
Adjusted earnings* in the third quarter were $1.2 billion, compared with $1.3 billion in the third quarter of 2025, reflecting a decrease of 8.5%. Adjusted earnings per diluted share* decreased 2.4% to $2.43 in the quarter. The average yen/dollar exchange rate in the third quarter of 2026 was 158.49, or 6.8% weaker than the average rate of 147.68 in the third quarter of 2025. The weaker yen/dollar exchange rate had a negative $0.03 impact on adjusted earnings per share.
Shareholders’ equity was $29.3 billion, or $59.08 per share, at September 30, 2026, compared with $28.7 billion, or $54.57 per share, at September 30, 2025. Shareholders’ equity at the end of the third quarter included a cumulative increase of $12.3 billion for the effect of the change in discount rate assumptions on insurance reserves, co mpared with a corresponding cumulative increase of $6.8 billion at September 30, 2025 and a net unrealized loss on investment securities and derivatives of $5.0 billion, compared with a net unrealized loss of $1.7 billion at September 30, 2025 . Shareholders’ equity at the end of the third quarter also included an unrealized foreign currency translation loss of $4.9 billion, compared with an unrealized foreign currency translation loss of $4.5 billion at September 30, 2025.
For the first nine months of 2026, total revenues were down 4.6% to $11.7 billion, compared with $12.3 billion in the first nine months of 2025. Net earnings were $2.1 billion, or $4.24 per diluted share, compared with $2.3 billion, or $4.21 per diluted share, for the first nine months of 2025. Adjusted earnings for the first nine months of 2026 were $3.0 billion, or $5.92 per diluted share, compared with $3.2 billion, or $5.92 per diluted share, in 2025. For the first nine months, the average exchange rate was 158.28, or 6.5% weaker than the rate of 148.03 a year ago. Excluding the negative impact of $0.10 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share increased 1.7% to $6.02 for the first nine months of 2026.
Shareholders’ equity excluding accumulated other comprehensive income (AOCI), or adjusted book value,* was $26.9 billion, or $54.21 per share at September 30, 2026, compared with $28.0 billion, or $53.33 per share, at September 30, 2025. Adjusted book value excluding foreign currency remeasurement* was $20.2 billion, or $40.73 per share at September 30, 2026, compared with $22.9 billion, or $43.52 per share, at September 30, 2025. The annualized adjusted return on equity excluding foreign currency remeasurement* in the third quarter was 23.7%. 2
In yen terms, Aflac Japan's net earned premiums were ¥240.3 billion for the quarter, or 2.0% lower than a year ago, mainly due to the combined impact of an external reinsurance transaction effective during the first quarter and an internal reinsurance transaction on blocks of cancer insurance effective during the third quarter, as well as limited pay products reaching paid-up status. Adjusted net investment income increased 3.7% to ¥101.6 billion, primarily due to higher fixed-rate income and higher income on U.S. dollar-denominated assets from the weakening yen; offset by lower floating-rate income and higher expenses. Total adjusted revenues in yen declined 0.3% to ¥343.2 billion. Pretax adjusted earnings in yen for the quarter declined 15.2% on a reported basis to ¥152.3 billion, primarily driven by higher benefits due to lower reserve remeasurement gains as a result of unlocking actuarial assumptions, compared to the previous year. Pretax adjusted earnings decreased 17.9% on a currency- neutral basis. The pretax adjusted profit margin for the Japan segment was 44.4%, compared with 52.2% a year ago.
For the first nine months, net earned premiums in yen were ¥732.1 billion, or 3.2% lower than a year ago. Adjusted net investment income increased 1.5% to ¥292.7 billion. Total adjusted revenues in yen were down 1.9% to ¥1.0 trillion. Pretax adjusted earnings were ¥389.7 billion, or 3.5% lower than a year ago. As a result, the pretax adjusted profit margin for the Japan segment was 37.9%, compared with 38.5% a year ago.
In dollar terms, net earned premiums decreased 9.3% to $1.5 billion in the third quarter. Adjusted net investment income decreased 3.9% to $639 million. Total adjusted revenues declined by 7.7% to $2.2 billion. Pretax adjusted earnings declined 21.0% to $961 million.
For the first nine months, net earned premiums in dollars were $4.6 billion, or 9.5% lower than a year ago. Adjusted net investment income decreased 5.3% to $1.8 billion. Total adjusted revenues were down 8.3% to $6.5 billion. Pretax adjusted earnings were $2.5 billion, or 9.8% lower than a year ago.
For the quarter, total new annualized premium sales (sales) decreased 4.0% to ¥18.8 billion, or $118 million, reflecting high prior-year sales for Miraito cancer insurance following its launch in March 2025, partially offset by solid growth in the Tsumitasu savings-type life insurance refreshed in the second quarter of 2026 and Anshin Palette, the medical insurance product launched in December 2025. For the first nine months, sales increased 3.0% to ¥56.1 billion, or $354 million. 3
AFLAC U.S. SELECTED OPERATING RESULTS FOR THE QUARTER (IN MILLIONS OF DOLLARS) 3Q26 3Q25 % Change ────────────────────────────────────────────────────────────────────────────── Total net earned $ 1,544 $ 1,495 3.3 % premiums Adjusted net investment 212 214 -0.9 % income Total adjusted 1,781 1,728 3.1 % revenues Total benefits and claims, 629 681 -7.6 % net Total adjusted 659 672 -1.9 % expenses Pretax adjusted 493 375 31.5 % earnings Change in bps Premium persistency 79.7 % 79.0 % 70 (12-mo. rolling) Total benefits and claims, net / Total 40.7 % 45.6 % -490 net earned premiums Total adjusted expenses / 37.0 % 38.9 % -190 Total adjusted revenues Pretax adjusted earnings / 27.7 % 21.7 % 600 Total adjusted revenues
Aflac U.S. net earned premiums increased 3.3% to $1.5 billion in the third quarter compared to the prior year, reflecting improved sales and strong persistency. Adjusted net investment income decreased 0.9% to $212 million. Total adjusted revenues were up 3.1% to $1.8 billion. Pretax adjusted earnings were $493 million, 31.5% higher than a year ago, primarily driven by lower benefits from higher reserve remeasurement gains as a result of unlocking actuarial assumptions and higher premiums as well as lower expenses. The pretax adjusted profit margin for the U.S. segment was 27.7%, compared with 21.7% a year ago.
For the first nine months, net earned premiums increased 3.0% to $4.6 billion. Adjusted net investment income remained relatively flat at $621 million. Total adjusted revenues were up 3.0% to $5.3 billion. Pretax adjusted earnings were $1.2 billion, 9.4% higher than a year ago. As a result, the pretax adjusted profit margin for the U.S. segment was 23.0%, compared with 21.7% a year ago.
Aflac U.S. sales increased 3.5% in the quarter to $403 million, primarily benefiting from sales of network dental as well as group life and disability products. For the first nine months, total new sales increased 3.1% to $1.1 billion. 4
CORPORATE AND OTHER SELECTED OPERATING RESULTS (IN MILLIONS OF DOLLARS) 3Q26 3Q25 % Change ────────────────────────────────────────────────────────────────────────────── Total net earned premiums $ 252 $ 214 17.8 % Adjusted net investment income 106 130 -18.5 % Total adjusted revenues 360 343 5.0 % Total benefits and claims, net 73 99 -26.3 % Interest expense 67 55 21.8 % Other adjusted expenses 148 120 23.3 % Total benefits and adjusted expenses 288 274 5.1 % Pretax adjusted earnings 72 69 4.3 %
For the quarter, total adjusted revenues increased 5.0% to $360 million. Pretax adjusted earnings were $72 million, compared with $69 million last year, primarily driven by higher reserve remeasurement gains as a result of unlocking actuarial assumptions and new reinsurance transactions. These earnings results were impacted by higher total adjusted expenses, as well as lower adjusted net investment income from reduced short-term asset balances and a smaller hedge program.
For the first nine months, total adjusted revenues decreased 6.2% to $943 million. Pretax adjusted earnings were $62 million, compared with $132 million a year ago.
The board of directors declared the fourth quarter dividend of $0.61 per share, payable on December 1, 2026 to shareholders of record at the close of business on November 18, 2026.
*See Non-U.S. GAAP Financial Measures section for an explanation of foreign exchange and its impact on the financial statements and definitions of the non-U.S. GAAP financial measures used in this earnings release, as well as a reconciliation of such non-U.S. GAAP financial measures to the most comparable U.S. GAAP financial measures. 5
Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products. 1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force. 2 The company takes pride in being there for its policyholders when they need us most, as well as being included in the World’s Most Ethical Companies by Ethisphere for 20 consecutive years (2026) and Fortune’s World’s Most Admired Companies for 25 years (2026). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol. 1 LIMRA 2025 U.S. Supplemental Health Insurance Total Market Report
2 As of March 31, 2025, Aflac estimates based on company data Aflac Incorporated periodically provides information for investors on its corporate website, investors.aflac.com, including information regarding its commitment to corporate social responsibility and sustainability, press releases, financial information, SEC filings, corporate governance materials, annual meeting information, and other information that may be important to investors.
A copy of Aflac’s financial supplement for the quarter can be found at investors.aflac.com.
Aflac Incorporated will webcast its third quarter 2026 earnings conference call on Thursday, November 5, 2026 at 8:00 a.m. (ET).
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 Japanese yen weakens, translating Japanese yen into U.S. dollars results in fewer U.S. dollars being reported. When the Japanese yen strengthens, translating Japanese yen into U.S. dollars results in more U.S. dollars being reported. Consequently, Japanese yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while Japanese 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 Japanese yen and never converted into U.S. dollars but translated into U.S. 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 earnings release as follows:
• 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 exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign 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.
• Adjusted return on equity is annualized adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income. 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 accumulated other comprehensive income, 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 equity as determined using annualized net earnings and average total shareholders’ equity.
• Adjusted return on equity excluding foreign currency remeasurement is annualized adjusted earnings divided by average shareholders’ equity, excluding both accumulated other comprehensive income and the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The Company considers adjusted return on equity excluding foreign currency remeasurement important because it excludes both accumulated other comprehensive income and the cumulative foreign currency remeasurement gains/losses, 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 excluding foreign currency remeasurement is return on equity as determined using annualized net earnings and average total shareholders’ equity. 10 • Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign currency exchange risks. 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 book value is the U.S. GAAP book value (representing total shareholders’ equity), less accumulated other comprehensive income 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 accumulated other comprehensive income, 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 excluding foreign currency remeasurement is the U.S. GAAP book value (representing total shareholders’ equity), less accumulated other comprehensive income as recorded on the U.S. GAAP balance sheet and excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. Adjusted book value excluding foreign currency remeasurement per common share is adjusted book value excluding foreign currency remeasurement at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value excluding foreign currency remeasurement and adjusted book value excluding foreign currency remeasurement per common share important as they exclude both accumulated other comprehensive income and the cumulative foreign currency remeasurement gains/losses, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measures for adjusted book value excluding foreign currency remeasurement and adjusted book value excluding foreign currency remeasurement per common share are total book value and total book value per common share, respectively.
• 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 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. 11
RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS (UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS) THREE MONTHS ENDED SEPTEMBER 30, 2026 2025 % Change ────────────────────────────────────────────────────────────────────────────── Net earnings $ 303 $ 1,639 -81.5 % Items impacting net earnings: Adjusted net investment (gains) 1,026 -335 losses Other and non-recurring — 1 (income) loss Income tax (benefit) expense on items excluded -166 22 from adjusted earnings Tax valuation 51 — allowance Adjusted earnings 1,214 1,327 -8.5 % Current period foreign currency 14 N/A impact1 Adjusted earnings excluding current period $ 1,228 $ 1,327 -7.5 % foreigncurrency impact2 Net earnings per $ 0.61 $ 3.08 -80.2 % diluted share Items impacting net earnings: Adjusted net investment (gains) 2.06 -0.63 losses Other and non-recurring — — (income) loss Income tax (benefit) expense on items excluded -0.33 0.04 from adjusted earnings Tax valuation 0.10 — allowance Adjusted earnings 2.43 2.49 -2.4 % per diluted share Current period foreign currency 0.03 N/A impact1 Adjusted earnings per diluted share excludingcurrent $ 2.46 $ 2.49 -1.2 % period foreign currency impact2
1 Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.
2 Amounts 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. 12
RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS (UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS) NINE MONTHS ENDED SEPTEMBER 30, 2026 2025 % Change ────────────────────────────────────────────────────────────────────────────── Net earnings $ 2,147 $ 2,267 -5.3 % Items impacting net earnings: Adjusted net investment (gains) 1,029 966 losses Other and non-recurring — 54 (income) loss Income tax (benefit) expense on items excluded -229 -97 from adjusted earnings Tax valuation 51 — allowance Adjusted earnings 2,998 3,190 -6.0 % Current period foreign currency 49 N/A impact1 Adjusted earnings excluding current period $ 3,047 $ 3,190 -4.5 % foreigncurrency impact2 Net earnings per $ 4.24 $ 4.21 0.7 % diluted share Items impacting net earnings: Adjusted net investment (gains) 2.03 1.79 losses Other and non-recurring — 0.10 (income) loss Income tax (benefit) expense on items excluded -0.45 -0.18 from adjusted earnings Tax valuation 0.10 — allowance Adjusted earnings 5.92 5.92 — % per diluted share Current period foreign currency 0.10 N/A impact1 Adjusted earnings per diluted share excludingcurrent $ 6.02 $ 5.92 1.7 % period foreign currency impact2
1 Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.
2 Amounts 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. 13
RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES (UNAUDITED – IN MILLIONS) THREE MONTHS ENDED SEPTEMBER 30, 2026 2025 % Change ────────────────────────────────────────────────────────────────────────────── Net investment (gains) $ 1,072 $ -275 489.8 % losses Items impacting net investment (gains) losses: Amortized hedge costs -11 -13 Amortized hedge income 14 20 Net interest income (expense) from derivatives associated -49 -66 with certain investment strategies Impact of interest from derivatives associated — -1 with notes payable1 Adjusted net investment $ 1,026 $ -335 406.3 % (gains) losses
1 Amounts are included with interest expenses that are a component of adjusted expenses.
RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME (UNAUDITED – IN MILLIONS) THREE MONTHS ENDED SEPTEMBER 30, 2026 2025 % Change ────────────────────────────────────────────────────────────────────────────── Net investment income $ 1,003 $ 1,067 -6.0 % Items impacting net investment income: Amortized hedge costs -11 -13 Amortized hedge income 14 20 Net interest income (expense) from derivatives associated -49 -66 with certain investment strategies Adjusted net investment $ 957 $ 1,008 -5.1 % income
RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES (UNAUDITED – IN MILLIONS) NINE MONTHS ENDED SEPTEMBER 30, 2026 2025 % Change ────────────────────────────────────────────────────────────────────────────── Net investment (gains) $ 1,176 $ 1,109 6.0 % losses Items impacting net investment (gains) losses: Amortized hedge costs -38 -31 Amortized hedge income 51 80 Net interest income (expense) from derivatives associated -160 -195 with certain investment strategies Impact of interest from derivatives associated — 3 with notes payable1 Adjusted net investment $ 1,029 $ 966 6.5 % (gains) losses
1 Amounts are included with interest expenses that are a component of adjusted expenses.
RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME (UNAUDITED – IN MILLIONS) NINE MONTHS ENDED SEPTEMBER 30, 2026 2025 % Change ────────────────────────────────────────────────────────────────────────────── Net investment income $ 2,943 $ 3,103 -5.2 % Items impacting net investment income: Amortized hedge costs -38 -31 Amortized hedge income 51 80 Net interest income (expense) from derivatives associated -160 -195 with certain investment strategies Adjusted net investment $ 2,796 $ 2,957 -5.4 % income
RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE (EXCLUDING FOREIGN CURRENCY REMEASUREMENT) (UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS) SEPTEMBER 30, 2026 2025 % Change U.S. GAAP book value $ 29,283 $ 28,688 Less: Unrealized foreign currency translation -4,925 -4,504 gains (losses) Unrealized gains (losses) on -5,011 -1,717 securities and derivatives Effect of changes in discount rate 12,264 6,832 assumptions Pension liability 85 42 adjustment Total AOCI 2,413 653 Adjusted book value $ 26,870 $ 28,035 Less: Foreign currency remeasurement gains 6,681 5,157 (losses) Adjusted book value excluding foreign $ 20,189 $ 22,878 currency remeasurement Number of outstanding shares at end of 495,651 525,710 period (000) U.S. GAAP book value $ 59.08 $ 54.57 8.3 % per common share Less: Unrealized foreign currency translation -9.94 -8.57 gains (losses) per common share Unrealized gains (losses) on securities -10.11 -3.27 and derivatives per common share Effect of changes in discount rate 24.74 13.00 assumptions per common share Pension liability adjustment per common 0.17 0.08 share Total AOCI per common 4.87 1.24 share Adjusted book value $ 54.21 $ 53.33 1.7 % per common share Less: Foreign currency remeasurement gains 13.48 9.81 (losses) per common share Adjusted book value excluding foreign currency $ 40.73 $ 43.52 -6.4 % remeasurement per common share
RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE (EXCLUDING IMPACT OF FOREIGN CURRENCY) THREE MONTHS ENDED SEPTEMBER 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── U.S. GAAP ROE - Net earnings1 4.1 % 23.5 % Impact of excluding unrealized foreign -0.8 -5.4 currency translation gains (losses) Impact of excluding unrealized gains -0.6 -2.2 (losses) on securities and derivatives Impact of excluding effect of changes in 1.8 7.7 discount rate assumptions Impact of excluding pension liability — 0.1 adjustment Impact of excluding AOCI 0.4 0.1 U.S. GAAP ROE - less AOCI 4.4 23.5 Differences between adjusted earnings 13.4 -4.5 and net earnings2 Adjusted ROE - reported 17.8 19.1 Impact of excluding gains (losses) associated with foreign currency 5.9 4.0 remeasurement3 Adjusted ROE, excluding foreign currency 23.7 23.1 remeasurement
1 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
2 See separate reconciliation of net earnings to adjusted earnings. 3 Impact of gains/losses associated with foreign currency remeasurement is calculated by excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The impact is the difference of adjusted return on equity - reported compared with adjusted return on equity, excluding from shareholders' equity, gains/losses associated with foreign currency remeasurement. 17
RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE (EXCLUDING IMPACT OF FOREIGN CURRENCY) NINE MONTHS ENDED SEPTEMBER 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── U.S. GAAP ROE - Net earnings1 9.7 % 11.0 % Impact of excluding unrealized foreign -1.8 -1.6 currency translation gains (losses) Impact of excluding unrealized gains -1.2 -0.3 (losses) on securities and derivatives Impact of excluding effect of changes in 3.7 1.5 discount rate assumptions Impact of excluding pension liability — — adjustment Impact of excluding AOCI 0.7 -0.4 U.S. GAAP ROE - less AOCI 10.4 10.6 Differences between adjusted earnings 4.1 4.3 and net earnings2 Adjusted ROE - reported 14.6 14.9 Impact of excluding gains (losses) associated with foreign currency 4.3 3.5 remeasurement3 Adjusted ROE, excluding foreign currency 18.9 18.4 remeasurement
1 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
2 See separate reconciliation of net earnings to adjusted earnings. 3 Impact of gains/losses associated with foreign currency remeasurement is calculated by excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The impact is the difference of adjusted return on equity - reported compared with adjusted return on equity, excluding from shareholders' equity, gains/losses associated with foreign currency remeasurement. 18
EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1 (SELECTED PERCENTAGE CHANGES, UNAUDITED) Including Excluding THREE MONTHS ENDED SEPTEMBER 30, Currency Currency 2026 Changes Changes2 ────────────────────────────────────────────────────────────────────────────── Net earned premiums3 -2.0 % 2.1 % Adjusted net investment income -5.1 -3.3 Total benefits and expenses 0.9 6.0 Adjusted earnings -8.5 -7.5 Adjusted earnings per diluted -2.4 -1.2 share
1 Refer to previously defined adjusted earnings, adjusted earnings per diluted share, and adjusted net investment income.
2 Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.
EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1 (SELECTED PERCENTAGE CHANGES, UNAUDITED) Including Excluding NINE MONTHS ENDED SEPTEMBER 30, Currency Currency 2026 Changes Changes2 ────────────────────────────────────────────────────────────────────────────── Net earned premiums3 -3.5 % 0.1 % Adjusted net investment income -5.4 -4.0 Total benefits and expenses -2.9 0.9 Adjusted earnings -6.0 -4.5 Adjusted earnings per diluted 0.0 1.7 share
1 Refer to previously defined adjusted earnings and adjusted earnings per diluted share, and adjusted net investment income.
2 Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.
The Company defines the operational measures included in this document as follows:
• Operating ratios are used to evaluate the Company's financial condition and profitability. Examples include: (1) Ratios to total adjusted revenues, which present expenses as percentage of total revenues and (2) Ratios to total premium, including benefit ratio. Operating ratios include: Benefit Ratio and Expense Ratio.
• New annualized premium sales are sometimes referred to as new sales or sales. An operating measure that is not reflected on the Company's financial statements. New annualized premium sales generally represent annual premiums on policies and riders the Company sold and incremental increases from policy conversions that would be collected over a 12-month period assuming the policies remain in force for that entire period. For Aflac Japan, new annualized premium sales are determined by applications submitted during the reporting period. For Aflac U.S., new annualized premium sales are determined by applications that are issued during the reporting period. Policy conversions are defined as the positive difference in the annualized premium when a policy upgrades in the current reporting period. The Company believes that this metric is a key indicator of the Company's future source of earnings.
• Premium persistency is the percentage of premiums remaining in force at the end of a period, usually one year, and presented on a trailing 12-month average basis. For example, 95% persistency would mean that 95% of the premiums in force at the beginning of a period are still in force at the end of the period. The Company believes that this metric is a key driver of in force levels, which is a key measure of the size of the Company's business and future sources of earnings. 20
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward- looking statements. Aflac Incorporated (the Parent Company) and its subsidiaries (collectively with the Parent Company, the Company) desire to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by Company officials in communications with the financial community and contained in documents filed with or furnished to the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward- looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” "strategy," “may,” “should,” “estimate,” “intend,” “project,” "future," “will,” “assume,” “potential,” “target,” "outlook," "continue" or similar words as well as specific projections of future results, generally qualify as forward-looking. The Company undertakes no obligation to update such forward-looking statements, except as may be required by law.
The Company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:
• difficult conditions in global capital markets and the economy, including inflation
• global fluctuations in interest rates and exposure to significant interest rate risk
• significant valuation judgments in determination of expected credit losses recorded on the Company's investments
• the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners
• ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives
• interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems, and uncertainty regarding the impact of the
• failure to comply with restrictions on policyholder privacy and information security
• extensive regulation and changes in law or regulation by governmental authorities
• competitive environment and ability to anticipate and respond to market trends
• catastrophic events, including, but not limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events
• allegations or determinations of worker misclassification in the United States
Analyst and investor contact - David A. Young, 706.596.3264; 800.235.2667 or aflacir@aflac.com Media contact - Ines Gutzmer, 762.207.7601 or igutzmer@aflac.com 21
Full text with the tables
Aflac Incorporated Announces Third Quarter 2026 Results,
Declares Fourth Quarter Dividend
COLUMBUS, Ga. - November 4, 2026 - Aflac Incorporated (NYSE: AFL) today reported
its third quarter results.
For the Quarter
• Net earnings were $303 million, or $0.61 per diluted share, compared with $1.6
billion, or $3.08 per diluted share a year ago.
• Adjusted earnings* were $1.2 billion, compared with $1.3 billion a year ago,
reflecting a decrease of 8.5%.
• Adjusted earnings per diluted share* decreased 2.4% to $2.43.
• Adjusted earnings benefited from reserve remeasurement gains of $453 million.
• Annualized return on average shareholders’ equity was 4.1%.
• Annualized adjusted return on equity excluding foreign currency remeasurement*
was 23.7%.
• The Company returned $1.1 billion to shareholders, consisting of $804 million
in share repurchase and $305 million in dividends.
• Aflac Incorporated reached the milestone of 44 consecutive years of dividend
increases with the fourth quarter declaration of $0.61.
• Aflac Japan ceded approximately ¥500 billion of reserves on an FSA basis
associated with cancer insurance policies to Aflac Re Bermuda.
Commenting on the company’s results, Aflac Incorporated Chairman and Chief
Executive Officer Daniel P. Amos stated: "Aflac delivered solid adjusted
earnings for the quarter and for the first nine months. These results
demonstrate our drive to execute our strategy and create long-term value for our
shareholders. In Japan, we have continued to address our customers' needs at
different life stages through products including Anshin Palette (medical
insurance), Miraito (cancer insurance) and Tsumitasu (savings-type life
insurance). In addition, the Aflac Japan results reflect the impact of our
reinsurance strategy on the income statement included within Corporate and Other
results, where Aflac Re Bermuda is consolidated. In the U.S., our focus remains
on meeting the evolving needs of employers and their employees with supplemental
health products and related benefits.
"We remain focused on more profitable growth and the tactical, opportunistic
deployment of capital. We treasure our 2026 milestone of 44 consecutive years of
dividend increases. We continue to deploy our balanced approach of investing in
growth and driving long-term value while being there for our policyholders when
they need us most."
1
AFLAC INCORPORATED CONSOLIDATED RESULTS
AFLAC INCORPORATED SELECTED
OPERATING RESULTS FOR THE
QUARTER
(IN MILLIONS, EXCEPT FOR
PER-SHARE AMOUNTS) 3Q26 3Q25 % Change
──────────────────────────────────────────────────────────────────────────────
Total revenues $ 3,271 $ 4,740 -31.0 %
Net earnings 303 1,639 -81.5 %
Adjusted earnings* 1,214 1,327 -8.5 %
Net earnings per share 0.61 3.08 -80.2 %
(diluted)
Adjusted earnings per share 2.43 2.49 -2.4 %
(diluted)*
Total shareholders' equity 29,283 28,688 2.1 %
Total liabilities and
shareholders' 113,511 122,306 -7.2 %
equity
Total revenues were $3.3 billion in the third quarter of 2026, compared with
$4.7 billion in the third quarter of 2025. Net earnings were $303 million, or
$0.61 per diluted share, compared with $1.6 billion, or $3.08 per diluted share
a year ago, primarily due to realized losses associated with the strategic
repositioning of the portfolio during the third quarter. In addition, net
earnings in the third quarter of 2026 included a $51 million, or $0.10 per
diluted share, tax capital loss valuation allowance established against a
portion of the Company's deferred tax assets associated with tax capital loss
carryforwards. Net earnings in the third quarter of 2026 also included net
investment losses of $1.1 billion, or $2.15 per diluted share, compared with net
investment gains of $275 million, or $0.52 per diluted share a year ago. These
net investment losses include net losses from sales and redemptions of $842
million; net losses of $146 million on certain derivatives and foreign currency
activities; $102 million of current expected credit losses (CECL); and
impairments of $1 million; offset by a $19 million gain from an increase in the
fair value of equity securities.
Adjusted earnings* in the third quarter were $1.2 billion, compared with $1.3
billion in the third quarter of 2025, reflecting a decrease of 8.5%. Adjusted
earnings per diluted share* decreased 2.4% to $2.43 in the quarter. The average
yen/dollar exchange rate in the third quarter of 2026 was 158.49, or 6.8% weaker
than the average rate of 147.68 in the third quarter of 2025. The weaker
yen/dollar exchange rate had a negative $0.03 impact on adjusted earnings per
share.
Shareholders’ equity was $29.3 billion, or $59.08 per share, at September 30,
2026, compared with $28.7 billion, or $54.57 per share, at September 30, 2025.
Shareholders’ equity at the end of the third quarter included a cumulative
increase of $12.3 billion for the effect of the change in discount rate
assumptions on insurance reserves, co mpared with a corresponding cumulative
increase of $6.8 billion at September 30, 2025 and a net unrealized loss on
investment securities and derivatives of $5.0 billion, compared with a net
unrealized loss of $1.7 billion at September 30, 2025 . Shareholders’ equity at
the end of the third quarter also included an unrealized foreign currency
translation loss of $4.9 billion, compared with an unrealized foreign currency
translation loss of $4.5 billion at September 30, 2025.
For the first nine months of 2026, total revenues were down 4.6% to $11.7
billion, compared with $12.3 billion in the first nine months of 2025. Net
earnings were $2.1 billion, or $4.24 per diluted share, compared with $2.3
billion, or $4.21 per diluted share, for the first nine months of 2025. Adjusted
earnings for the first nine months of 2026 were $3.0 billion, or $5.92 per
diluted share, compared with $3.2 billion, or $5.92 per diluted share, in 2025.
For the first nine months, the average exchange rate was 158.28, or 6.5% weaker
than the rate of 148.03 a year ago. Excluding the negative impact of $0.10 per
share from the weaker yen/dollar exchange rate, adjusted earnings per diluted
share increased 1.7% to $6.02 for the first nine months of 2026.
Shareholders’ equity excluding accumulated other comprehensive income (AOCI), or
adjusted book value,* was $26.9 billion, or $54.21 per share at September 30,
2026, compared with $28.0 billion, or $53.33 per share, at September 30, 2025.
Adjusted book value excluding foreign currency remeasurement* was $20.2 billion,
or $40.73 per share at September 30, 2026, compared with $22.9 billion, or
$43.52 per share, at September 30, 2025. The annualized adjusted return on
equity excluding foreign currency remeasurement* in the third quarter was 23.7%.
2
AFLAC JAPAN
A…
J…
S…
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F…
T…
Q…
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B…
OF
Y…
A…
M…
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D… 3Q… 3Q… Ch… 3Q… 3Q25 Ch…
──────────────────────────────────────────────────────────────────────────────
T…
n… ¥ 240 ¥ 245 -2… % $ 1,… $ 1,6… -9… %
e…
p…
Y…
i… 33 32 2.2 % 205 217 -5… %
i…
U…
d… 71 68 4.0 % 445 461 -3… %
i…
i…
A…
n… 102 98 3.7 % 639 665 -3… %
i…
i…
T…
a… 343 344 -0… % 2,… 2,3… -7… %
r…
T…
b…
a… 118 96 22… % 737 656 12… %
c…
n…
T…
a… 73 68 6.6 % 458 463 -1… %
e…
P…
a… 152 180 -1… % 961 1,2… -2… %
e…
Ch…
in
bps
P…
p… 92… % 93… % -40
(…
r…
T…
b…
a…
c…
n… 49… % 39… % 990
/
T…
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/ 21… % 19… % 140
T…
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In yen terms, Aflac Japan's net earned premiums were ¥240.3 billion for the
quarter, or 2.0% lower than a year ago, mainly due to the combined impact of an
external reinsurance transaction effective during the first quarter and an
internal reinsurance transaction on blocks of cancer insurance effective during
the third quarter, as well as limited pay products reaching paid-up status.
Adjusted net investment income increased 3.7% to ¥101.6 billion, primarily due
to higher fixed-rate income and higher income on U.S. dollar-denominated assets
from the weakening yen; offset by lower floating-rate income and higher
expenses. Total adjusted revenues in yen declined 0.3% to ¥343.2 billion. Pretax
adjusted earnings in yen for the quarter declined 15.2% on a reported basis to
¥152.3 billion, primarily driven by higher benefits due to lower reserve
remeasurement gains as a result of unlocking actuarial assumptions, compared to
the previous year. Pretax adjusted earnings decreased 17.9% on a currency-
neutral basis. The pretax adjusted profit margin for the Japan segment was
44.4%, compared with 52.2% a year ago.
For the first nine months, net earned premiums in yen were ¥732.1 billion, or
3.2% lower than a year ago. Adjusted net investment income increased 1.5% to
¥292.7 billion. Total adjusted revenues in yen were down 1.9% to ¥1.0 trillion.
Pretax adjusted earnings were ¥389.7 billion, or 3.5% lower than a year ago. As
a result, the pretax adjusted profit margin for the Japan segment was 37.9%,
compared with 38.5% a year ago.
In dollar terms, net earned premiums decreased 9.3% to $1.5 billion in the third
quarter. Adjusted net investment income decreased 3.9% to $639 million. Total
adjusted revenues declined by 7.7% to $2.2 billion. Pretax adjusted earnings
declined 21.0% to $961 million.
For the first nine months, net earned premiums in dollars were $4.6 billion, or
9.5% lower than a year ago. Adjusted net investment income decreased 5.3% to
$1.8 billion. Total adjusted revenues were down 8.3% to $6.5 billion. Pretax
adjusted earnings were $2.5 billion, or 9.8% lower than a year ago.
For the quarter, total new annualized premium sales (sales) decreased 4.0% to
¥18.8 billion, or $118 million, reflecting high prior-year sales for Miraito
cancer insurance following its launch in March 2025, partially offset by solid
growth in the Tsumitasu savings-type life insurance refreshed in the second
quarter of 2026 and Anshin Palette, the medical insurance product launched in
December 2025. For the first nine months, sales increased 3.0% to ¥56.1 billion,
or $354 million.
3
AFLAC U.S.
AFLAC U.S.
SELECTED
OPERATING
RESULTS FOR
THE QUARTER
(IN MILLIONS
OF DOLLARS) 3Q26 3Q25 % Change
──────────────────────────────────────────────────────────────────────────────
Total net
earned $ 1,544 $ 1,495 3.3 %
premiums
Adjusted net
investment 212 214 -0.9 %
income
Total adjusted 1,781 1,728 3.1 %
revenues
Total benefits
and claims, 629 681 -7.6 %
net
Total adjusted 659 672 -1.9 %
expenses
Pretax
adjusted 493 375 31.5 %
earnings
Change
in bps
Premium
persistency 79.7 % 79.0 % 70
(12-mo.
rolling)
Total benefits
and claims,
net / Total 40.7 % 45.6 % -490
net earned
premiums
Total adjusted
expenses / 37.0 % 38.9 % -190
Total adjusted
revenues
Pretax
adjusted
earnings / 27.7 % 21.7 % 600
Total
adjusted
revenues
Aflac U.S. net earned premiums increased 3.3% to $1.5 billion in the third
quarter compared to the prior year, reflecting improved sales and strong
persistency. Adjusted net investment income decreased 0.9% to $212 million.
Total adjusted revenues were up 3.1% to $1.8 billion. Pretax adjusted earnings
were $493 million, 31.5% higher than a year ago, primarily driven by lower
benefits from higher reserve remeasurement gains as a result of unlocking
actuarial assumptions and higher premiums as well as lower expenses. The pretax
adjusted profit margin for the U.S. segment was 27.7%, compared with 21.7% a
year ago.
For the first nine months, net earned premiums increased 3.0% to $4.6 billion.
Adjusted net investment income remained relatively flat at $621 million. Total
adjusted revenues were up 3.0% to $5.3 billion. Pretax adjusted earnings were
$1.2 billion, 9.4% higher than a year ago. As a result, the pretax adjusted
profit margin for the U.S. segment was 23.0%, compared with 21.7% a year ago.
Aflac U.S. sales increased 3.5% in the quarter to $403 million, primarily
benefiting from sales of network dental as well as group life and disability
products. For the first nine months, total new sales increased 3.1% to $1.1
billion.
4
CORPORATE AND OTHER
CORPORATE AND OTHER SELECTED
OPERATING RESULTS
(IN MILLIONS OF DOLLARS) 3Q26 3Q25 % Change
──────────────────────────────────────────────────────────────────────────────
Total net earned premiums $ 252 $ 214 17.8 %
Adjusted net investment income 106 130 -18.5 %
Total adjusted revenues 360 343 5.0 %
Total benefits and claims, net 73 99 -26.3 %
Interest expense 67 55 21.8 %
Other adjusted expenses 148 120 23.3 %
Total benefits and adjusted expenses 288 274 5.1 %
Pretax adjusted earnings 72 69 4.3 %
For the quarter, total adjusted revenues increased 5.0% to $360 million. Pretax
adjusted earnings were $72 million, compared with $69 million last year,
primarily driven by higher reserve remeasurement gains as a result of unlocking
actuarial assumptions and new reinsurance transactions. These earnings results
were impacted by higher total adjusted expenses, as well as lower adjusted net
investment income from reduced short-term asset balances and a smaller hedge
program.
For the first nine months, total adjusted revenues decreased 6.2% to $943
million. Pretax adjusted earnings were $62 million, compared with $132 million a
year ago.
SHAREHOLDER DIVIDEND
The board of directors declared the fourth quarter dividend of $0.61 per share,
payable on December 1, 2026 to shareholders of record at the close of business
on November 18, 2026.
*See Non-U.S. GAAP Financial Measures section for an explanation of foreign
exchange and its impact on the financial statements and definitions of the
non-U.S. GAAP financial measures used in this earnings release, as well as a
reconciliation of such non-U.S. GAAP financial measures to the most comparable
U.S. GAAP financial measures.
5
ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide
financial protection and peace of mind for more than seven decades to millions
of policyholders and customers through its subsidiaries in the U.S. and Japan.
In the U.S., Aflac is the No. 1 provider of supplemental health insurance
products. 1 In Japan, Aflac Life Insurance Japan is the leading provider of
cancer and medical insurance in terms of policies in force. 2 The company takes
pride in being there for its policyholders when they need us most, as well as
being included in the World’s Most Ethical Companies by Ethisphere for 20
consecutive years (2026) and Fortune’s World’s Most Admired Companies for 25
years (2026). In addition, the company became a signatory of the Principles for
Responsible Investment (PRI) in 2021. To find out how to get help with expenses
health insurance doesn't cover, get to know us at aflac.com or
aflac.com/espanol.
1 LIMRA 2025 U.S. Supplemental Health Insurance Total Market Report
2 As of March 31, 2025, Aflac estimates based on company data
Aflac Incorporated periodically provides information for investors on its
corporate website, investors.aflac.com, including information regarding its
commitment to corporate social responsibility and sustainability, press
releases, financial information, SEC filings, corporate governance materials,
annual meeting information, and other information that may be important to
investors.
A copy of Aflac’s financial supplement for the quarter can be found at
investors.aflac.com.
Aflac Incorporated will webcast its third quarter 2026 earnings conference call
on Thursday, November 5, 2026 at 8:00 a.m. (ET).
Note: Tables within this document may not foot due to rounding.
6
AFLAC INCORPORATED
AND SUBSIDIARIES
CONDENSED INCOME
STATEMENT
(UNAUDITED – IN
MILLIONS, EXCEPT FOR
SHARE AND PER-SHARE
AMOUNTS)
THREE MONTHS ENDED
SEPTEMBER 30, 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Total revenues $ 3,271 $ 4,740 -31.0 %
Benefits and claims, 1,439 1,436 0.2
net
Total acquisition
and operating 1,332 1,310 1.7
expenses
Earnings before 500 1,994 -74.9
income taxes
Income taxes 197 355
Net earnings $ 303 $ 1,639 -81.5 %
Net earnings per $ 0.61 $ 3.09 -80.3 %
share – basic
Net earnings per 0.61 3.08 -80.2
share – diluted
Shares used to
compute earnings per
share (000):
Basic 496,976 530,050 -6.2 %
Diluted 498,684 532,015 -6.3
Dividends paid per $ 0.61 $ 0.58 5.2 %
share
7
AFLAC INCORPORATED
AND SUBSIDIARIES
CONDENSED INCOME
STATEMENT
(UNAUDITED – IN
MILLIONS, EXCEPT FOR
SHARE AND PER-SHARE
AMOUNTS)
NINE MONTHS ENDED
SEPTEMBER 30, 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Total revenues $ 11,734 $ 12,298 -4.6 %
Benefits and claims, 5,123 5,391 -5.0
net
Total acquisition and 3,891 3,946 -1.4
operating expenses
Earnings before 2,720 2,961 -8.1
income taxes
Income taxes 573 694
Net earnings $ 2,147 $ 2,267 -5.3 %
Net earnings per $ 4.25 $ 4.22 0.7 %
share – basic
Net earnings per 4.24 4.21 0.7
share – diluted
Shares used to
compute earnings per
share (000):
Basic 504,664 537,095 -6.0 %
Diluted 506,285 539,052 -6.1
Dividends paid per $ 1.83 $ 1.74 5.2 %
share
8
AFLAC INCORPORATED
AND SUBSIDIARIES
CONDENSED BALANCE
SHEET
(UNAUDITED – IN
MILLIONS, EXCEPT FOR
SHARE AMOUNTS)
SEPTEMBER 30, 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Assets:
Total investments $ 100,433 $ 109,516 -8.3 %
and cash
Deferred policy 9,186 9,216 -0.3
acquisition costs
Other assets 3,892 3,574 8.9
Total assets $ 113,511 $ 122,306 -7.2 %
Liabilities and
shareholders’
equity:
Policy liabilities $ 63,517 $ 74,737 -15.0 %
Notes payable and 8,900 8,685 2.5
lease obligations
Other liabilities 11,811 10,196 15.8
Shareholders’ equity 29,283 28,688 2.1
Total liabilities
and shareholders’ $ 113,511 $ 122,306 -7.2 %
equity
Shares outstanding
at end of period 495,651 525,710 -5.7 %
(000)
9
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 Japanese yen weakens, translating
Japanese yen into U.S. dollars results in fewer U.S. dollars being reported.
When the Japanese yen strengthens, translating Japanese yen into U.S. dollars
results in more U.S. dollars being reported. Consequently, Japanese yen
weakening has the effect of suppressing current period results in relation to
the comparable prior period, while Japanese 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 Japanese yen and
never converted into U.S. dollars but translated into U.S. 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
earnings release as follows:
• 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 exchange rate for the comparable prior-year
period, which eliminates fluctuations driven solely by foreign 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.
• Adjusted return on equity is annualized adjusted earnings divided by average
shareholders’ equity, excluding accumulated other comprehensive income.
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 accumulated other comprehensive income,
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 equity as determined using annualized net earnings and average total
shareholders’ equity.
• Adjusted return on equity excluding foreign currency remeasurement is
annualized adjusted earnings divided by average shareholders’ equity, excluding
both accumulated other comprehensive income and the cumulative (beginning
January 1, 2021) foreign currency gains/losses associated with i) foreign
currency remeasurement and ii) sales and redemptions of invested assets. The
Company considers adjusted return on equity excluding foreign currency
remeasurement important because it excludes both accumulated other comprehensive
income and the cumulative foreign currency remeasurement gains/losses, 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
excluding foreign currency remeasurement is return on equity as determined using
annualized net earnings and average total shareholders’ equity.
10
• Amortized hedge costs/income represent costs/income incurred or recognized as
a result of using foreign currency derivatives to hedge certain foreign currency
exchange risks. 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 book value is the U.S. GAAP book value (representing total
shareholders’ equity), less accumulated other comprehensive income 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 accumulated other
comprehensive income, 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 excluding foreign currency remeasurement is the U.S. GAAP
book value (representing total shareholders’ equity), less accumulated other
comprehensive income as recorded on the U.S. GAAP balance sheet and excluding
the cumulative (beginning January 1, 2021) foreign currency gains/losses
associated with i) foreign currency remeasurement and ii) sales and redemptions
of invested assets. Adjusted book value excluding foreign currency remeasurement
per common share is adjusted book value excluding foreign currency remeasurement
at the period end divided by the ending outstanding common shares for the period
presented. The Company considers adjusted book value excluding foreign currency
remeasurement and adjusted book value excluding foreign currency remeasurement
per common share important as they exclude both accumulated other comprehensive
income and the cumulative foreign currency remeasurement gains/losses, which
fluctuate due to market movements that are outside management's control. The
most comparable U.S. GAAP financial measures for adjusted book value excluding
foreign currency remeasurement and adjusted book value excluding foreign
currency remeasurement per common share are total book value and total book
value per common share, respectively.
• 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 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.
11
RECONCILIATION OF
NET EARNINGS TO
ADJUSTED EARNINGS
(UNAUDITED – IN
MILLIONS, EXCEPT
FOR PER-SHARE
AMOUNTS)
THREE MONTHS ENDED
SEPTEMBER 30, 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Net earnings $ 303 $ 1,639 -81.5 %
Items impacting net
earnings:
Adjusted net
investment (gains) 1,026 -335
losses
Other and
non-recurring — 1
(income) loss
Income tax
(benefit) expense
on items excluded -166 22
from adjusted
earnings
Tax valuation 51 —
allowance
Adjusted earnings 1,214 1,327 -8.5 %
Current period
foreign currency 14 N/A
impact1
Adjusted earnings
excluding current
period $ 1,228 $ 1,327 -7.5 %
foreigncurrency
impact2
Net earnings per $ 0.61 $ 3.08 -80.2 %
diluted share
Items impacting net
earnings:
Adjusted net
investment (gains) 2.06 -0.63
losses
Other and
non-recurring — —
(income) loss
Income tax
(benefit) expense
on items excluded -0.33 0.04
from adjusted
earnings
Tax valuation 0.10 —
allowance
Adjusted earnings 2.43 2.49 -2.4 %
per diluted share
Current period
foreign currency 0.03 N/A
impact1
Adjusted earnings
per diluted share
excludingcurrent $ 2.46 $ 2.49 -1.2 %
period foreign
currency
impact2
1 Prior period foreign currency impact reflected as “N/A” to isolate change for
current period only.
2 Amounts 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.
12
RECONCILIATION OF
NET EARNINGS TO
ADJUSTED EARNINGS
(UNAUDITED – IN
MILLIONS, EXCEPT FOR
PER-SHARE AMOUNTS)
NINE MONTHS ENDED
SEPTEMBER 30, 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Net earnings $ 2,147 $ 2,267 -5.3 %
Items impacting net
earnings:
Adjusted net
investment (gains) 1,029 966
losses
Other and
non-recurring — 54
(income) loss
Income tax (benefit)
expense on items
excluded -229 -97
from adjusted
earnings
Tax valuation 51 —
allowance
Adjusted earnings 2,998 3,190 -6.0 %
Current period
foreign currency 49 N/A
impact1
Adjusted earnings
excluding current
period $ 3,047 $ 3,190 -4.5 %
foreigncurrency
impact2
Net earnings per $ 4.24 $ 4.21 0.7 %
diluted share
Items impacting net
earnings:
Adjusted net
investment (gains) 2.03 1.79
losses
Other and
non-recurring — 0.10
(income) loss
Income tax (benefit)
expense on items
excluded -0.45 -0.18
from adjusted
earnings
Tax valuation 0.10 —
allowance
Adjusted earnings 5.92 5.92 — %
per diluted share
Current period
foreign currency 0.10 N/A
impact1
Adjusted earnings
per diluted share
excludingcurrent $ 6.02 $ 5.92 1.7 %
period foreign
currency
impact2
1 Prior period foreign currency impact reflected as “N/A” to isolate change for
current period only.
2 Amounts 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.
13
RECONCILIATION OF NET
INVESTMENT (GAINS) LOSSES
TO ADJUSTED NET
INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED
SEPTEMBER 30, 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Net investment (gains) $ 1,072 $ -275 489.8 %
losses
Items impacting net
investment (gains)
losses:
Amortized hedge costs -11 -13
Amortized hedge income 14 20
Net interest income
(expense) from
derivatives associated -49 -66
with certain investment
strategies
Impact of interest from
derivatives associated — -1
with
notes payable1
Adjusted net investment $ 1,026 $ -335 406.3 %
(gains) losses
1 Amounts are included with interest expenses that are a component of adjusted
expenses.
RECONCILIATION OF NET
INVESTMENT INCOME TO
ADJUSTED NET INVESTMENT
INCOME
(UNAUDITED – IN MILLIONS)
THREE MONTHS ENDED
SEPTEMBER 30, 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Net investment income $ 1,003 $ 1,067 -6.0 %
Items impacting net
investment income:
Amortized hedge costs -11 -13
Amortized hedge income 14 20
Net interest income
(expense) from
derivatives associated -49 -66
with certain investment
strategies
Adjusted net investment $ 957 $ 1,008 -5.1 %
income
14
RECONCILIATION OF NET
INVESTMENT (GAINS) LOSSES
TO ADJUSTED NET INVESTMENT
(GAINS) LOSSES
(UNAUDITED – IN MILLIONS)
NINE MONTHS ENDED
SEPTEMBER 30, 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Net investment (gains) $ 1,176 $ 1,109 6.0 %
losses
Items impacting net
investment (gains)
losses:
Amortized hedge costs -38 -31
Amortized hedge income 51 80
Net interest income
(expense) from derivatives
associated -160 -195
with certain investment
strategies
Impact of interest from
derivatives associated — 3
with
notes payable1
Adjusted net investment $ 1,029 $ 966 6.5 %
(gains) losses
1 Amounts are included with interest expenses that are a component of adjusted
expenses.
RECONCILIATION OF NET
INVESTMENT INCOME TO
ADJUSTED NET INVESTMENT
INCOME
(UNAUDITED – IN MILLIONS)
NINE MONTHS ENDED
SEPTEMBER 30, 2026 2025 % Change
──────────────────────────────────────────────────────────────────────────────
Net investment income $ 2,943 $ 3,103 -5.2 %
Items impacting net
investment income:
Amortized hedge costs -38 -31
Amortized hedge income 51 80
Net interest income
(expense) from
derivatives associated -160 -195
with certain investment
strategies
Adjusted net investment $ 2,796 $ 2,957 -5.4 %
income
15
RECONCILIATION OF
U.S. GAAP BOOK VALUE
TO ADJUSTED BOOK
VALUE
(EXCLUDING FOREIGN
CURRENCY
REMEASUREMENT)
(UNAUDITED – IN
MILLIONS, EXCEPT FOR
SHARE AND PER-SHARE
AMOUNTS)
SEPTEMBER 30, 2026 2025 % Change
U.S. GAAP book value $ 29,283 $ 28,688
Less:
Unrealized foreign
currency translation -4,925 -4,504
gains (losses)
Unrealized gains
(losses) on -5,011 -1,717
securities
and derivatives
Effect of changes in
discount rate 12,264 6,832
assumptions
Pension liability 85 42
adjustment
Total AOCI 2,413 653
Adjusted book value $ 26,870 $ 28,035
Less:
Foreign currency
remeasurement gains 6,681 5,157
(losses)
Adjusted book value
excluding foreign $ 20,189 $ 22,878
currency
remeasurement
Number of outstanding
shares at end of 495,651 525,710
period (000)
U.S. GAAP book value $ 59.08 $ 54.57 8.3 %
per common share
Less:
Unrealized foreign
currency translation -9.94 -8.57
gains (losses) per
common share
Unrealized gains
(losses) on
securities -10.11 -3.27
and derivatives per
common share
Effect of changes in
discount rate 24.74 13.00
assumptions
per common share
Pension liability
adjustment per common 0.17 0.08
share
Total AOCI per common 4.87 1.24
share
Adjusted book value $ 54.21 $ 53.33 1.7 %
per common share
Less:
Foreign currency
remeasurement gains 13.48 9.81
(losses) per common
share
Adjusted book value
excluding foreign
currency $ 40.73 $ 43.52 -6.4 %
remeasurement per
common share
16
RECONCILIATION OF U.S. GAAP RETURN ON
EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)
THREE MONTHS ENDED SEPTEMBER 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
U.S. GAAP ROE - Net earnings1 4.1 % 23.5 %
Impact of excluding unrealized foreign -0.8 -5.4
currency translation gains (losses)
Impact of excluding unrealized gains -0.6 -2.2
(losses) on securities and derivatives
Impact of excluding effect of changes in 1.8 7.7
discount rate assumptions
Impact of excluding pension liability — 0.1
adjustment
Impact of excluding AOCI 0.4 0.1
U.S. GAAP ROE - less AOCI 4.4 23.5
Differences between adjusted earnings 13.4 -4.5
and net earnings2
Adjusted ROE - reported 17.8 19.1
Impact of excluding gains (losses)
associated with foreign currency 5.9 4.0
remeasurement3
Adjusted ROE, excluding foreign currency 23.7 23.1
remeasurement
1 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average
shareholders' equity.
2 See separate reconciliation of net earnings to adjusted earnings.
3 Impact of gains/losses associated with foreign currency remeasurement is
calculated by excluding the cumulative (beginning January 1, 2021) foreign
currency gains/losses associated with i) foreign currency remeasurement and ii)
sales and redemptions of invested assets. The impact is the difference of
adjusted return on equity - reported compared with adjusted return on equity,
excluding from shareholders' equity, gains/losses associated with foreign
currency remeasurement.
17
RECONCILIATION OF U.S. GAAP RETURN ON
EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)
NINE MONTHS ENDED SEPTEMBER 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
U.S. GAAP ROE - Net earnings1 9.7 % 11.0 %
Impact of excluding unrealized foreign -1.8 -1.6
currency translation gains (losses)
Impact of excluding unrealized gains -1.2 -0.3
(losses) on securities and derivatives
Impact of excluding effect of changes in 3.7 1.5
discount rate assumptions
Impact of excluding pension liability — —
adjustment
Impact of excluding AOCI 0.7 -0.4
U.S. GAAP ROE - less AOCI 10.4 10.6
Differences between adjusted earnings 4.1 4.3
and net earnings2
Adjusted ROE - reported 14.6 14.9
Impact of excluding gains (losses)
associated with foreign currency 4.3 3.5
remeasurement3
Adjusted ROE, excluding foreign currency 18.9 18.4
remeasurement
1 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average
shareholders' equity.
2 See separate reconciliation of net earnings to adjusted earnings.
3 Impact of gains/losses associated with foreign currency remeasurement is
calculated by excluding the cumulative (beginning January 1, 2021) foreign
currency gains/losses associated with i) foreign currency remeasurement and ii)
sales and redemptions of invested assets. The impact is the difference of
adjusted return on equity - reported compared with adjusted return on equity,
excluding from shareholders' equity, gains/losses associated with foreign
currency remeasurement.
18
EFFECT OF FOREIGN CURRENCY ON
ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES,
UNAUDITED) Including Excluding
THREE MONTHS ENDED SEPTEMBER 30, Currency Currency
2026 Changes Changes2
──────────────────────────────────────────────────────────────────────────────
Net earned premiums3 -2.0 % 2.1 %
Adjusted net investment income -5.1 -3.3
Total benefits and expenses 0.9 6.0
Adjusted earnings -8.5 -7.5
Adjusted earnings per diluted -2.4 -1.2
share
1 Refer to previously defined adjusted earnings, adjusted earnings per diluted
share, and adjusted net investment income.
2 Amounts excluding currency changes were determined using the same foreign
currency exchange rate for the current period as the comparable period in the
prior year, which eliminates dollar-based fluctuations driven solely from
currency rate changes.
3 Net of reinsurance
19
EFFECT OF FOREIGN CURRENCY ON
ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES,
UNAUDITED) Including Excluding
NINE MONTHS ENDED SEPTEMBER 30, Currency Currency
2026 Changes Changes2
──────────────────────────────────────────────────────────────────────────────
Net earned premiums3 -3.5 % 0.1 %
Adjusted net investment income -5.4 -4.0
Total benefits and expenses -2.9 0.9
Adjusted earnings -6.0 -4.5
Adjusted earnings per diluted 0.0 1.7
share
1 Refer to previously defined adjusted earnings and adjusted earnings per
diluted share, and adjusted net investment income.
2 Amounts excluding currency changes were determined using the same foreign
currency exchange rate for the current period as the comparable period in the
prior year, which eliminates dollar-based fluctuations driven solely from
currency rate changes.
3 Net of reinsurance
GLOSSARY OF OPERATIONAL MEASURES
The Company defines the operational measures included in this document as
follows:
• Operating ratios are used to evaluate the Company's financial condition and
profitability. Examples include: (1) Ratios to total adjusted revenues, which
present expenses as percentage of total revenues and (2) Ratios to total
premium, including benefit ratio. Operating ratios include: Benefit Ratio and
Expense Ratio.
• New annualized premium sales are sometimes referred to as new sales or sales.
An operating measure that is not reflected on the Company's financial
statements. New annualized premium sales generally represent annual premiums on
policies and riders the Company sold and incremental increases from policy
conversions that would be collected over a 12-month period assuming the policies
remain in force for that entire period. For Aflac Japan, new annualized premium
sales are determined by applications submitted during the reporting period. For
Aflac U.S., new annualized premium sales are determined by applications that are
issued during the reporting period. Policy conversions are defined as the
positive difference in the annualized premium when a policy upgrades in the
current reporting period. The Company believes that this metric is a key
indicator of the Company's future source of earnings.
• Premium persistency is the percentage of premiums remaining in force at the
end of a period, usually one year, and presented on a trailing 12-month average
basis. For example, 95% persistency would mean that 95% of the premiums in force
at the beginning of a period are still in force at the end of the period. The
Company believes that this metric is a key driver of in force levels, which is a
key measure of the size of the Company's business and future sources of
earnings.
20
FORWARD-LOOKING INFORMATION
The Private Securities Litigation
Reform Act of 1995 provides a “safe
harbor” to encourage companies to
provide prospective information, so
long as those informational statements
are identified as forward-looking and
are accompanied by meaningful
cautionary statements identifying
important factors that could cause
actual results to differ materially
from those included in the forward-
looking statements. Aflac Incorporated
(the Parent Company) and its
subsidiaries (collectively with the
Parent Company, the Company) desire to
take advantage of these provisions.
This document contains cautionary
statements identifying important
factors that could cause actual results
to differ materially from those
projected herein, and in any other
statements made by Company officials in
communications with the financial
community and contained in documents
filed with or furnished to the
Securities and Exchange Commission
(SEC). Forward-looking statements are
not based on historical information and
relate to future operations,
strategies, financial results or other
developments. Furthermore, forward-
looking information is subject to
numerous assumptions, risks and
uncertainties. In particular,
statements containing words such as
“expect,” “anticipate,” “believe,”
“goal,” “objective,” "strategy," “may,”
“should,” “estimate,” “intend,”
“project,” "future," “will,” “assume,”
“potential,” “target,” "outlook,"
"continue" or similar words as well as
specific projections of future results,
generally qualify as forward-looking.
The Company undertakes no obligation to
update such forward-looking statements,
except as may be required by law.
The Company cautions readers that the
following factors, in addition to other
factors mentioned from time to time,
could cause actual results to differ
materially from those contemplated by
the forward-looking statements:
• difficult conditions in global
capital markets and the economy,
including inflation
• defaults and credit downgrades of
investments
• global fluctuations in interest rates
and exposure to significant interest
rate risk
• concentration of business in Japan
• limited availability of acceptable
Japanese yen-denominated investments
• foreign currency fluctuations in the
yen/dollar exchange rate
• differing interpretations applied to
investment valuations
• significant valuation judgments in
determination of expected credit losses
recorded on the Company's investments
• decreases in the Company's financial
strength or debt ratings
• decline in creditworthiness of other
financial institutions
• the Company's ability to attract and
retain qualified sales associates,
brokers, employees, and distribution
partners
• deviations in actual experience from
pricing and reserving assumptions
• ability to continue to develop and
implement improvements in information
technology systems and on successful
execution of revenue growth and expense
management initiatives
• interruption in telecommunication,
information technology and other
operational systems, or a failure to
maintain the security, confidentiality,
integrity or privacy of sensitive data
residing on such systems, and
uncertainty regarding the impact of the
incident involving unauthorized access
to the Company’s network in June 2025
• subsidiaries' ability to pay
dividends to the Parent Company
• inherent limitations to risk
management policies and procedures
• operational risks of third-party
vendors
• tax rates applicable to the Company
may change
• failure to comply with restrictions
on policyholder privacy and information
security
• extensive regulation and changes in
law or regulation by governmental
authorities
• competitive environment and ability
to anticipate and respond to market
trends
• catastrophic events, including, but
not limited to, epidemics, pandemics,
tornadoes, hurricanes, earthquakes,
tsunamis, war or other military action,
major public health issues, terrorism
or other acts of violence, and damage
incidental to such events
• ability to protect the Aflac brand
and the Company's reputation
• ability to effectively manage key
executive succession
• changes in accounting standards
• level and outcome of litigation or
regulatory inquiries
• allegations or determinations of
worker misclassification in the United
States
Analyst and investor contact - David A.
Young, 706.596.3264; 800.235.2667 or
aflacir@aflac.com
Media contact - Ines Gutzmer, 762.207.7601 or igutzmer@aflac.com
21