|
FORM 10-K
|
ý
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Aflac Incorporated
|
(Exact name of registrant as specified in its charter)
|
Georgia
|
|
58-1167100
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
1932 Wynnton Road, Columbus, Georgia
|
|
31999
|
(Address of principal executive offices)
|
|
(ZIP Code)
|
Title of each class
|
|
Name of each exchange on which registered
|
Common Stock, $.10 Par Value
|
|
New York Stock Exchange
|
|
|
Tokyo Stock Exchange
|
Large accelerated filer
|
þ
|
|
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
(Do not check if smaller reporting company
|
|
Smaller reporting company
|
¨
|
|
|
|
|
Page
|
|
|
|
PART I
|
|
|
|
|
|
Item 1.
|
1
|
|
|
|
|
Item 1A.
|
12
|
|
|
|
|
Item 1B.
|
24
|
|
|
|
|
Item 2.
|
24
|
|
|
|
|
Item 3.
|
24
|
|
|
|
|
Item 4.
|
24
|
|
|
|
|
PART II
|
|
|
|
|
|
Item 5.
|
25
|
|
|
|
|
Item 6.
|
28
|
|
|
|
|
Item 7.
|
30
|
|
|
|
|
Item 7A.
|
82
|
|
|
|
|
Item 8.
|
83
|
|
|
|
|
Item 9.
|
143
|
|
|
|
|
Item 9A.
|
143
|
|
|
|
|
Item 9B.
|
143
|
|
|
|
|
PART III
|
|
|
|
|
|
Item 10.
|
144
|
|
|
|
|
Item 11.
|
144
|
|
|
|
|
Item 12.
|
144
|
|
|
|
|
Item 13.
|
144
|
|
|
|
|
Item 14.
|
144
|
|
|
|
|
PART IV
|
|
|
|
|
|
Item 15.
|
145
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||
Annualized premiums in force, beginning of year
|
$
|
22,472
|
|
|
$
|
20,380
|
|
|
$
|
17,990
|
|
New sales, including conversions
|
4,129
|
|
|
3,503
|
|
|
2,935
|
|
|||
Change in unprocessed new sales
|
183
|
|
|
35
|
|
|
(73
|
)
|
|||
Premiums lapsed and surrendered
|
(2,173
|
)
|
|
(2,204
|
)
|
|
(2,226
|
)
|
|||
Other
|
(9
|
)
|
|
(3
|
)
|
|
15
|
|
|||
Foreign currency translation adjustment
|
(1,913
|
)
|
|
761
|
|
|
1,739
|
|
|||
Annualized premiums in force, end of year
|
$
|
22,689
|
|
|
$
|
22,472
|
|
|
$
|
20,380
|
|
|
In Dollars
|
|
In Yen
|
|||||||||||||||||
(In millions of dollars and billions of yen)
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
||||||
Annualized premiums in force, beginning of year
|
$
|
17,284
|
|
|
$
|
15,408
|
|
|
$
|
13,034
|
|
|
1,344
|
|
|
1,256
|
|
|
1,200
|
|
New sales, including conversions
|
2,641
|
|
|
2,027
|
|
|
1,554
|
|
|
211
|
|
|
161
|
|
|
136
|
|
|||
Change in unprocessed new sales
|
183
|
|
|
35
|
|
|
(73
|
)
|
|
14
|
|
|
3
|
|
|
(6
|
)
|
|||
Premiums lapsed and surrendered
|
(845
|
)
|
|
(847
|
)
|
|
(766
|
)
|
|
(68
|
)
|
|
(68
|
)
|
|
(67
|
)
|
|||
Other
|
(112
|
)
|
|
(100
|
)
|
|
(80
|
)
|
|
(9
|
)
|
|
(8
|
)
|
|
(7
|
)
|
|||
Foreign currency translation adjustment
|
(1,913
|
)
|
|
761
|
|
|
1,739
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||
Annualized premiums in force, end of year
|
$
|
17,238
|
|
|
$
|
17,284
|
|
|
$
|
15,408
|
|
|
1,492
|
|
|
1,344
|
|
|
1,256
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Annualized premiums in force, beginning of year
|
|
$
|
5,188
|
|
|
|
|
$
|
4,973
|
|
|
|
|
$
|
4,956
|
|
|
New sales, including conversions
|
|
1,488
|
|
|
|
|
1,476
|
|
|
|
|
1,382
|
|
|
|||
Premiums lapsed
|
|
(1,328
|
)
|
|
|
|
(1,357
|
)
|
|
|
|
(1,460
|
)
|
|
|||
Other
|
|
103
|
|
|
|
|
96
|
|
|
|
|
95
|
|
|
|||
Annualized premiums in force, end of year
|
|
$
|
5,451
|
|
|
|
|
$
|
5,188
|
|
|
|
|
$
|
4,973
|
|
|
•
|
granting and revoking licenses to transact business
|
•
|
regulating trade and claims practices
|
•
|
licensing of insurance agents and brokers
|
•
|
approval of policy forms and premium rates
|
•
|
standards of solvency and maintenance of specified policy benefit reserves and minimum loss ratio requirements
|
•
|
capital requirements
|
•
|
limitations on dividends to shareholders
|
•
|
the nature of and limitations on investments
|
•
|
deposits of securities for the benefit of policyholders
|
•
|
filing of financial statements prepared in accordance with statutory insurance accounting practices prescribed or permitted by regulatory authorities
|
•
|
periodic examinations of the market conduct, financial, and other affairs of insurance companies
|
NAME
|
PRINCIPAL OCCUPATION
(1)
|
AGE
|
|
Daniel P. Amos
|
Chairman, Aflac Incorporated and Aflac; Chief Executive Officer, Aflac Incorporated and Aflac
|
61
|
|
|
|
|
|
Paul S. Amos II
|
President, Aflac; Chief Operating Officer, U.S. Operations, Aflac
|
37
|
|
|
|
|
|
Koji Ariyoshi
|
Executive Vice President, Director of Marketing and Sales, Aflac Japan, since January 2012; First Senior Vice President, Director of Marketing and Sales, Aflac Japan, from January 2010 until January 2012; Senior Vice President, Deputy Director of Marketing and Sales, from October 2008 until January 2010; Executive Director, AXA Life Insurance Company Ltd., until October 2008
|
59
|
|
|
|
|
|
Susan R. Blanck
|
Executive Vice President, Corporate Actuary, Aflac, since January 2011; Executive Vice President, Aflac Japan, since March 2012; First Senior Vice President, Aflac Japan, from June 2008 until March 2012; Senior Vice President, Corporate Actuary, Aflac, until January 2011
|
46
|
|
|
|
|
|
Kriss Cloninger III
|
President, Aflac Incorporated; Chief Financial Officer, Aflac Incorporated and Aflac; Treasurer, Aflac Incorporated; Executive Vice President, Aflac
|
65
|
|
|
|
|
|
Masahiko Furutani
|
Executive Vice President, Planning, Administration Management, Customer Services Promotion, Actuarial Product Development, Corporate Actuarial, Financial Management, Financial Accounting, Investment Risk Management, Investments, and Compliance Promotion, Aflac Japan, since April 2012; Executive Director, Mizuho Bank, from April 2011 until March 2012; Senior Vice President, Mizuho Bank, from April 2009 until March 2011; General Manager, Mizuho Bank, from April 2007 until March 2009
|
55
|
|
|
|
|
|
June Howard
|
Chief Accounting Officer, Aflac Incorporated and Aflac, since November 2010; Treasurer, Aflac, since February 2011; Senior Vice President, Financial Services, Aflac Incorporated and Aflac, since March 2010; Vice President, Financial Services, Aflac, from June 2009 until March 2010; Head of IFRS and U.S. GAAP for ING's U.S. operations until June 2009
|
46
|
|
|
|
|
|
Kenneth S. Janke Jr.
|
Executive Vice President, Deputy Chief Financial Officer, Aflac Incorporated, since October 2010; Senior Vice President, Investor Relations, Aflac Incorporated, until October 2010
|
54
|
|
|
|
|
|
Eric M. Kirsch
|
Executive Vice President, Global Chief Investment Officer, Aflac, since July 2012; First Senior Vice President, Global Chief Investment Officer, Aflac, from November 2011 until July 2012; Managing Director, Global Head of Insurance Asset Management, Goldman Sachs Asset Management, until November 2011
|
52
|
|
|
|
|
|
Charles D. Lake II
|
Chairman, Aflac Japan, since July 2008; Vice Chairman, Aflac Japan, until July 2008
|
51
|
|
|
|
|
|
Joey M. Loudermilk
|
Executive Vice President, General Counsel, Aflac Incorporated and Aflac; Director, Legal and Governmental Relations, Aflac; Corporate Secretary, Aflac Incorporated and Aflac, until January 2012
|
59
|
|
|
|
|
|
Audrey B. Tillman
|
Executive Vice President, Corporate Services, Aflac Incorporated, since January 2008; Senior Vice President, Corporate Services, Aflac Incorporated, until January 2008
|
48
|
|
|
|
|
|
Tohru Tonoike
|
President, Chief Operating Officer, Aflac Japan
|
62
|
|
NAME
|
PRINCIPAL OCCUPATION
(1)
|
AGE
|
Teresa L. White
|
Executive Vice President, Chief Service Officer, Aflac, since October 2012; Executive Vice President, Chief Administrative Officer, Aflac, from March 2008 until October 2012; Senior Vice President, Deputy Chief Administrative Officer, Aflac, until March 2008
|
46
|
|
|
|
Robin Y. Wilkey
|
Senior Vice President, Investor and Rating Agency Relations, Aflac Incorporated, since October 2010; Vice President, Investor Relations, Aflac Incorporated, until October 2010
|
54
|
|
|
|
Hiroshi Yamauchi
|
Executive Vice President, Planning, Government Affairs & Research, Legal, Risk Management, Human Resources, General Affairs, Infrastructure Services, User Services, System Development, IT Administration Management, and IT Strategic Project Promotion, Aflac Japan, since January 2012; First Senior Vice President, Planning, Government Affairs & Research, Legal, Risk Management, Human Resources, General Affairs, Infrastructure Services, User Services, System Development, IT Administration Management, and IT Strategic Project Promotion, Aflac Japan, from January 2011 until January 2012; First Senior Vice President, Planning, Government Affairs and Research, Legal, Risk Management, and Compliance Promotion, Aflac Japan, from January 2010 until January 2011; First Senior Vice President, Chief Administrative Officer, Aflac Japan, until January 2010
|
61
|
|
|
|
Michael W. Zuna
|
Executive Vice President, Chief Marketing and Sales Officer, Aflac, since June 2012; Senior Vice President, Chief Marketing Officer, Aflac, from October 2010 until June 2012; Vice President, Marketing, Aflac, from September 2009 until October 2010; Managing Director, Saatchi & Saatchi NY, from January 2008 until September 2009
|
44
|
•
|
standards of establishing and setting premium rates and the approval thereof
|
•
|
standards of minimum capital requirements and solvency margins, including risk-based capital measures
|
•
|
restrictions on, limitations on and required approval of certain transactions between our insurance subsidiaries and their affiliates, including management fee arrangements
|
•
|
restrictions on the nature, quality and concentration of investments
|
•
|
restrictions on the types of terms and conditions that we can include in the insurance policies offered by our primary insurance operations
|
•
|
limitations on the amount of dividends that insurance subsidiaries can pay or foreign profits that can be repatriated
|
•
|
the existence and licensing status of a company under circumstances where it is not writing new or renewal business
|
•
|
certain required methods of accounting
|
•
|
reserves for unearned premiums, losses and other purposes
|
•
|
assignment of residual market business and potential assessments for the provision of funds necessary for the settlement of covered claims under certain policies provided by impaired, insolvent or failed insurance companies
|
•
|
administrative practices requirements
|
•
|
imposition of fines and other sanctions
|
•
|
any requirement to restate financial results in the event of inappropriate application of accounting principle
|
•
|
failure of our processes to prevent and detect unethical conduct of employees
|
•
|
a significant failure of internal controls over financial reporting
|
•
|
failure of our prevention and control systems related to employee compliance with internal policies and regulatory requirements
|
•
|
failure of corporate governance policies and procedures
|
2012
|
High
|
|
Low
|
||||||||
4th Quarter
|
|
$
|
54.93
|
|
|
|
|
$
|
47.25
|
|
|
3rd Quarter
|
|
50.24
|
|
|
|
|
40.97
|
|
|
||
2nd Quarter
|
|
46.58
|
|
|
|
|
38.14
|
|
|
||
1st Quarter
|
|
50.33
|
|
|
|
|
42.30
|
|
|
2011
|
High
|
|
Low
|
||||||||
4th Quarter
|
|
$
|
47.98
|
|
|
|
|
$
|
32.74
|
|
|
3rd Quarter
|
|
47.50
|
|
|
|
|
31.25
|
|
|
||
2nd Quarter
|
|
57.39
|
|
|
|
|
44.15
|
|
|
||
1st Quarter
|
|
59.54
|
|
|
|
|
48.00
|
|
|
|
2012
|
|
2011
|
||||||||
4th Quarter
|
|
$
|
.35
|
|
|
|
|
$
|
.33
|
|
|
3rd Quarter
|
|
.33
|
|
|
|
|
.30
|
|
|
||
2nd Quarter
|
|
.33
|
|
|
|
|
.30
|
|
|
||
1st Quarter
|
|
.33
|
|
|
|
|
.30
|
|
|
|
2007
|
|
|
2008
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
Aflac Incorporated
|
100.00
|
|
|
74.52
|
|
|
77.83
|
|
|
97.20
|
|
|
76.49
|
|
|
96.65
|
|
S&P 500
|
100.00
|
|
|
63.00
|
|
|
79.67
|
|
|
91.67
|
|
|
93.61
|
|
|
108.59
|
|
S&P Life & Health Insurance
|
100.00
|
|
|
51.68
|
|
|
59.73
|
|
|
74.82
|
|
|
59.32
|
|
|
67.98
|
|
Period
|
Total
Number of Shares Purchased |
|
Average
Price Paid Per Share |
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plans or Programs |
|
|||||||||||||
January 1 - January 31
|
|
872
|
|
|
|
|
$
|
47.53
|
|
|
|
|
0
|
|
|
|
|
24,370,254
|
|
|
|
February 1 - February 29
|
|
145,086
|
|
|
|
|
48.48
|
|
|
|
|
0
|
|
|
|
|
24,370,254
|
|
|
|
|
March 1 - March 31
|
|
2,332
|
|
|
|
|
46.78
|
|
|
|
|
0
|
|
|
|
|
24,370,254
|
|
|
|
|
April 1 - April 30
|
|
628
|
|
|
|
|
45.04
|
|
|
|
|
0
|
|
|
|
|
24,370,254
|
|
|
|
|
May 1 - May 31
|
|
0
|
|
|
|
|
0.00
|
|
|
|
|
0
|
|
|
|
|
24,370,254
|
|
|
|
|
June 1 - June 30
|
|
4,782
|
|
|
|
|
38.69
|
|
|
|
|
0
|
|
|
|
|
24,370,254
|
|
|
|
|
July 1 - July 31
|
|
0
|
|
|
|
|
0.00
|
|
|
|
|
0
|
|
|
|
|
24,370,254
|
|
|
|
|
August 1 - August 31
|
|
0
|
|
|
|
|
0.00
|
|
|
|
|
0
|
|
|
|
|
24,370,254
|
|
|
|
|
September 1 - September 30
|
|
0
|
|
|
|
|
0.00
|
|
|
|
|
0
|
|
|
|
|
24,370,254
|
|
|
|
|
October 1 - October 31
|
|
250,000
|
|
|
|
|
49.63
|
|
|
|
|
250,000
|
|
|
|
|
24,120,254
|
|
|
|
|
November 1 - November 30
|
|
1,060,000
|
|
|
|
|
50.23
|
|
|
|
|
1,060,000
|
|
|
|
|
23,060,254
|
|
|
|
|
December 1 - December 31
|
|
638,050
|
|
|
|
|
53.84
|
|
|
|
|
638,050
|
|
|
|
|
22,422,204
|
|
|
|
|
Total
|
|
2,101,750
|
|
|
(2)
|
|
$
|
51.10
|
|
|
|
|
1,948,050
|
|
|
|
|
22,422,204
|
|
|
(1)
|
(In millions, except for share and
per-share amounts) |
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Premiums, principally supplemental
health insurance |
$
|
22,148
|
|
|
$
|
20,362
|
|
|
$
|
18,073
|
|
|
$
|
16,621
|
|
|
$
|
14,947
|
|
Net investment income
|
3,473
|
|
|
3,280
|
|
|
3,007
|
|
|
2,765
|
|
|
2,578
|
|
|||||
Realized investment gains (losses)
|
(349
|
)
|
|
(1,552
|
)
|
|
(422
|
)
|
|
(1,212
|
)
|
|
(1,007
|
)
|
|||||
Other income
|
92
|
|
|
81
|
|
|
74
|
|
|
80
|
|
|
36
|
|
|||||
Total revenues
|
25,364
|
|
|
22,171
|
|
|
20,732
|
|
|
18,254
|
|
|
16,554
|
|
|||||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Benefits and claims
|
15,330
|
|
|
13,749
|
|
|
12,106
|
|
|
11,308
|
|
|
10,499
|
|
|||||
Expenses
|
5,732
|
|
|
5,472
|
|
|
5,065
|
|
|
4,711
|
|
|
4,141
|
|
|||||
Total benefits and expenses
|
21,062
|
|
|
19,221
|
|
|
17,171
|
|
|
16,019
|
|
|
14,640
|
|
|||||
Pretax earnings
|
4,302
|
|
|
2,950
|
|
|
3,561
|
|
|
2,235
|
|
|
1,914
|
|
|||||
Income taxes
|
1,436
|
|
|
1,013
|
|
|
1,233
|
|
|
738
|
|
|
660
|
|
|||||
Net earnings
|
$
|
2,866
|
|
|
$
|
1,937
|
|
|
$
|
2,328
|
|
|
$
|
1,497
|
|
|
$
|
1,254
|
|
Share and Per-Share Amounts
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings (basic)
|
$
|
6.14
|
|
|
$
|
4.16
|
|
|
$
|
4.96
|
|
|
$
|
3.21
|
|
|
$
|
2.65
|
|
Net earnings (diluted)
|
6.11
|
|
|
4.12
|
|
|
4.92
|
|
|
3.19
|
|
|
2.62
|
|
|||||
Cash dividends paid
|
1.34
|
|
|
1.23
|
|
|
1.14
|
|
|
1.12
|
|
|
.96
|
|
|||||
Cash dividends declared
|
1.34
|
|
|
1.23
|
|
|
1.14
|
|
|
.84
|
|
|
1.24
|
|
|||||
Weighted-average common shares used for basic
EPS (In thousands) |
466,868
|
|
|
466,519
|
|
|
469,038
|
|
|
466,552
|
|
|
473,405
|
|
|||||
Weighted-average common shares used for diluted
EPS (In thousands) |
469,287
|
|
|
469,370
|
|
|
473,085
|
|
|
469,063
|
|
|
478,815
|
|
|||||
Supplemental Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Yen/dollar exchange rate at year-end (yen)
|
86.58
|
|
|
77.74
|
|
|
81.49
|
|
|
92.10
|
|
|
91.03
|
|
|||||
Weighted-average yen/dollar exchange rate (yen)
|
79.81
|
|
|
79.75
|
|
|
87.73
|
|
|
93.49
|
|
|
103.46
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments and cash
|
$
|
118,219
|
|
|
$
|
103,462
|
|
|
$
|
88,230
|
|
|
$
|
73,192
|
|
|
$
|
68,550
|
|
Other
|
12,875
|
|
|
12,775
|
|
|
12,013
|
|
|
10,914
|
|
|
10,781
|
|
|||||
Total assets
|
$
|
131,094
|
|
|
$
|
116,237
|
|
|
$
|
100,243
|
|
|
$
|
84,106
|
|
|
$
|
79,331
|
|
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy liabilities
|
$
|
97,949
|
|
|
$
|
94,593
|
|
|
$
|
82,456
|
|
|
$
|
69,245
|
|
|
$
|
66,219
|
|
Income taxes
|
3,858
|
|
|
2,308
|
|
|
1,689
|
|
|
1,653
|
|
|
1,201
|
|
|||||
Notes payable
|
4,352
|
|
|
3,285
|
|
|
3,038
|
|
|
2,599
|
|
|
1,721
|
|
|||||
Other liabilities
|
8,957
|
|
|
3,105
|
|
|
2,520
|
|
|
2,192
|
|
|
3,551
|
|
|||||
Shareholders’ equity
|
15,978
|
|
|
12,946
|
|
|
10,540
|
|
|
8,417
|
|
|
6,639
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
131,094
|
|
|
$
|
116,237
|
|
|
$
|
100,243
|
|
|
$
|
84,106
|
|
|
$
|
79,331
|
|
•
|
difficult conditions in global capital markets and the economy
|
•
|
governmental actions for the purpose of stabilizing the financial markets
|
•
|
defaults and credit downgrades of securities in our investment portfolio
|
•
|
impairment of financial institutions
|
•
|
credit and other risks associated with Aflac's investment in perpetual securities
|
•
|
differing judgments applied to investment valuations
|
•
|
significant valuation judgments in determination of amount of impairments taken on our investments
|
•
|
limited availability of acceptable yen-denominated investments
|
•
|
concentration of our investments in any particular single-issuer or sector
|
•
|
concentration of business in Japan
|
•
|
increased derivative activities
|
•
|
ongoing changes in our industry
|
•
|
exposure to significant financial and capital markets risk
|
•
|
fluctuations in foreign currency exchange rates
|
•
|
significant changes in investment yield rates
|
•
|
deviations in actual experience from pricing and reserving assumptions
|
•
|
subsidiaries' ability to pay dividends to Aflac Incorporated
|
•
|
changes in law or regulation by governmental authorities
|
•
|
ability to attract and retain qualified sales associates and employees
|
•
|
decreases in our financial strength or debt ratings
|
•
|
ability to continue to develop and implement improvements in information technology systems
|
•
|
interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality or privacy of sensitive data residing on such systems
|
•
|
changes in U.S. and/or Japanese accounting standards
|
•
|
failure to comply with restrictions on patient privacy and information security
|
•
|
level and outcome of litigation
|
•
|
ability to effectively manage key executive succession
|
•
|
catastrophic events including, but not necessarily limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, acts of terrorism and damage incidental to such events
|
•
|
failure of internal controls or corporate governance policies and procedures
|
•
|
Our Business
|
•
|
Performance Highlights
|
•
|
Critical Accounting Estimates
|
•
|
Results of Operations, consolidated and by segment
|
•
|
Analysis of Financial Condition, including discussion of market risks of financial instruments
|
•
|
Capital Resources and Liquidity, including discussion of availability of capital and the sources and uses of cash
|
|
Aflac Japan
|
|
Aflac U.S.
|
|
||||||||||||||||||||
(In millions)
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
|
||||||||||||
Deferred policy acquisition costs
|
$
|
6,801
|
|
|
$
|
7,102
|
|
|
$
|
6,390
|
|
|
$
|
2,857
|
|
|
$
|
2,687
|
|
|
$
|
2,549
|
|
|
Annualized premiums in force
|
17,238
|
|
|
17,284
|
|
|
15,408
|
|
|
5,451
|
|
|
5,188
|
|
|
4,973
|
|
|
||||||
Deferred policy acquisition costs as a
percentage of annualized premiums in force |
39.5
|
%
|
|
41.1
|
%
|
|
41.5
|
%
|
|
52.4
|
%
|
|
51.8
|
%
|
|
51.3
|
%
|
|
(In millions)
|
2012
|
|
2011
|
||||
Japan segment:
|
|
|
|
||||
Future policy benefits
|
$
|
69,530
|
|
|
$
|
72,792
|
|
Unpaid policy claims
|
2,756
|
|
|
2,786
|
|
||
Other policy liabilities
|
17,052
|
|
|
10,944
|
|
||
Total Japan policy liabilities
|
$
|
89,338
|
|
|
$
|
86,522
|
|
U.S. segment:
|
|
|
|
||||
Future policy benefits
|
$
|
6,931
|
|
|
$
|
6,484
|
|
Unpaid policy claims
|
1,278
|
|
|
1,195
|
|
||
Other policy liabilities
|
399
|
|
|
390
|
|
||
Total U.S. policy liabilities
|
$
|
8,608
|
|
|
$
|
8,069
|
|
Consolidated:
|
|
|
|
||||
Future policy benefits
|
$
|
76,463
|
|
|
$
|
79,278
|
|
Unpaid policy claims
|
4,034
|
|
|
3,981
|
|
||
Other policy liabilities
|
17,452
|
|
|
11,334
|
|
||
Total consolidated policy liabilities
|
$
|
97,949
|
|
|
$
|
94,593
|
|
(In millions of dollars and billions of yen)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Aflac U.S.
|
$
|
6,931
|
|
|
$
|
6,484
|
|
|
$
|
6,078
|
|
|
Growth rate
|
6.9
|
%
|
|
6.7
|
%
|
|
5.2
|
%
|
|
|||
Aflac Japan
|
$
|
69,530
|
|
|
$
|
72,792
|
|
|
$
|
66,023
|
|
|
Growth rate
|
(4.5
|
)%
|
|
10.3
|
%
|
|
18.5
|
%
|
|
|||
Consolidated
|
$
|
76,463
|
|
|
$
|
79,278
|
|
|
$
|
72,103
|
|
|
Growth rate
|
(3.6
|
)%
|
|
10.0
|
%
|
|
17.2
|
%
|
|
|||
Yen/dollar exchange rate (end of period)
|
86.58
|
|
|
77.74
|
|
|
81.49
|
|
|
|||
Aflac Japan (in yen)
|
6,020
|
|
|
5,659
|
|
|
5,380
|
|
|
|||
Growth rate
|
6.4
|
%
|
|
5.2
|
%
|
|
4.8
|
%
|
|
(In millions)
|
|
Total Severity
|
|
||||||||||||||||||||||||||
Total Frequency
|
Decrease
by 2% |
|
Decrease
by 1% |
|
Unchanged
|
|
Increase
by 1% |
|
Increase
by 2% |
||||||||||||||||||||
Increase by 2%
|
|
$
|
0
|
|
|
|
|
$
|
25
|
|
|
|
|
$
|
51
|
|
|
|
|
$
|
77
|
|
|
|
|
$
|
103
|
|
|
Increase by 1%
|
|
(25
|
)
|
|
|
|
0
|
|
|
|
|
26
|
|
|
|
|
51
|
|
|
|
|
77
|
|
|
|||||
Unchanged
|
|
(50
|
)
|
|
|
|
(25
|
)
|
|
|
|
0
|
|
|
|
|
26
|
|
|
|
|
51
|
|
|
|||||
Decrease by 1%
|
|
(75
|
)
|
|
|
|
(50
|
)
|
|
|
|
(25
|
)
|
|
|
|
0
|
|
|
|
|
25
|
|
|
|||||
Decrease by 2%
|
|
(99
|
)
|
|
|
|
(75
|
)
|
|
|
|
(50
|
)
|
|
|
|
(25
|
)
|
|
|
|
0
|
|
|
|
In Millions
|
|
Per Diluted Share
|
||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Operating earnings
|
$
|
3,097
|
|
|
$
|
2,946
|
|
|
$
|
2,602
|
|
|
$
|
6.60
|
|
|
$
|
6.27
|
|
|
$
|
5.50
|
|
Items impacting net earnings, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities transactions and impairments
|
(326
|
)
|
|
(850
|
)
|
|
(273
|
)
|
|
(.69
|
)
|
|
(1.81
|
)
|
|
(.58
|
)
|
||||||
Impact of derivative and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Hedge costs related to foreign currency
investments |
(5
|
)
|
|
0
|
|
|
0
|
|
|
(.01
|
)
|
|
.00
|
|
|
.00
|
|
||||||
Other derivative and hedging activities
|
105
|
|
|
(159
|
)
|
|
(1
|
)
|
|
.22
|
|
|
(.34
|
)
|
|
.00
|
|
||||||
Other non-operating income (loss)
|
(5
|
)
|
|
0
|
|
|
0
|
|
|
(.01
|
)
|
|
.00
|
|
|
.00
|
|
||||||
Net earnings
|
$
|
2,866
|
|
|
$
|
1,937
|
|
|
$
|
2,328
|
|
|
$
|
6.11
|
|
|
$
|
4.12
|
|
|
$
|
4.92
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Perpetual securities
|
$
|
243
|
|
|
$
|
565
|
|
|
$
|
160
|
|
|
Corporate bonds
|
345
|
|
|
1,316
|
|
|
285
|
|
|
|||
Mortgage- and asset-backed securities
|
3
|
|
|
17
|
|
|
12
|
|
|
|||
Municipalities
|
0
|
|
|
2
|
|
|
0
|
|
|
|||
Sovereign and supranational
|
386
|
|
|
0
|
|
|
0
|
|
|
|||
Equity securities
|
0
|
|
|
1
|
|
|
2
|
|
|
|||
Total other-than-temporary impairment losses realized
|
$
|
977
|
|
(1)
|
$
|
1,901
|
|
(1)
|
$
|
459
|
|
(2)
|
Weighted-Average
Yen/Dollar Exchange Rate |
|
Operating Earnings Per Diluted Share
|
|
% Growth
Over 2012 |
|
Yen Impact
|
||||||||
79.81
(2)
|
|
$6.86 - 7.06
|
|
3.9
|
|
-
|
7.0
|
%
|
|
|
$
|
.00
|
|
|
85
|
|
6.60 - 6.80
|
|
.0
|
|
-
|
3.0
|
|
|
|
(.26
|
)
|
|
|
90
|
|
6.37 - 6.57
|
|
(3.5
|
)
|
-
|
(.5
|
)
|
|
|
(.49
|
)
|
|
|
95
|
|
6.17 - 6.37
|
|
(6.5
|
)
|
-
|
(3.5
|
)
|
|
|
(.69
|
)
|
|
|
100
|
|
5.99 - 6.19
|
|
(9.2
|
)
|
-
|
(6.2
|
)
|
|
|
(.87
|
)
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||
Premium income
|
$
|
17,151
|
|
|
$
|
15,619
|
|
|
$
|
13,487
|
|
Net investment income:
|
|
|
|
|
|
||||||
Yen-denominated investment income
|
1,902
|
|
|
1,799
|
|
|
1,645
|
|
|||
Dollar-denominated investment income
|
943
|
|
|
889
|
|
|
808
|
|
|||
Net investment income
|
2,845
|
|
|
2,688
|
|
|
2,453
|
|
|||
Other income (loss)
|
57
|
|
|
46
|
|
|
37
|
|
|||
Total operating revenues
|
20,053
|
|
|
18,353
|
|
|
15,977
|
|
|||
Benefits and claims
|
12,496
|
|
|
11,037
|
|
|
9,553
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Amortization of deferred policy acquisition costs
|
716
|
|
|
650
|
|
|
563
|
|
|||
Insurance commissions
|
1,174
|
|
|
1,179
|
|
|
1,103
|
|
|||
Insurance and other expenses
|
1,763
|
|
|
1,658
|
|
|
1,498
|
|
|||
Total operating expenses
|
3,653
|
|
|
3,487
|
|
|
3,164
|
|
|||
Total benefits and expenses
|
16,149
|
|
|
14,524
|
|
|
12,717
|
|
|||
Pretax operating earnings
(1)
|
$
|
3,904
|
|
|
$
|
3,829
|
|
|
$
|
3,260
|
|
Weighted-average yen/dollar exchange rate
|
79.81
|
|
|
79.75
|
|
|
87.73
|
|
|
In Dollars
|
|
In Yen
|
||||||||||||||
Percentage change
over previous year: |
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||
Premium income
|
9.8
|
%
|
|
15.8
|
%
|
|
10.8
|
%
|
|
9.9
|
%
|
|
5.4
|
%
|
|
3.8
|
%
|
Net investment income
|
5.8
|
|
|
9.6
|
|
|
8.3
|
|
|
6.1
|
|
|
(.4
|
)
|
|
1.6
|
|
Total operating revenues
|
9.3
|
|
|
14.9
|
|
|
10.3
|
|
|
9.4
|
|
|
4.5
|
|
|
3.4
|
|
Pretax operating earnings
(1)
|
2.0
|
|
|
17.5
|
|
|
16.4
|
|
|
2.0
|
|
|
6.8
|
|
|
9.3
|
|
|
Including Foreign
Currency Changes |
|
Excluding Foreign
Currency Changes (2) |
||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||
Net investment income
|
6.1
|
%
|
|
(.4
|
)%
|
|
1.6
|
%
|
|
5.9
|
%
|
|
3.0
|
%
|
|
3.8
|
%
|
Total operating revenues
|
9.4
|
|
|
4.5
|
|
|
3.4
|
|
|
9.3
|
|
|
5.1
|
|
|
3.8
|
|
Pretax operating earnings
(1)
|
2.0
|
|
|
6.8
|
|
|
9.3
|
|
|
1.7
|
|
|
9.2
|
|
|
11.4
|
|
Ratios to total revenues:
|
2012
|
|
2011
|
|
2010
|
|
|||
Benefits and claims
|
62.3
|
%
|
|
60.1
|
%
|
|
59.8
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|||
Amortization of deferred policy acquisition costs
|
3.6
|
|
|
3.5
|
|
|
3.5
|
|
|
Insurance commissions
|
5.9
|
|
|
6.4
|
|
|
6.9
|
|
|
Insurance and other expenses
|
8.7
|
|
|
9.1
|
|
|
9.4
|
|
|
Total operating expenses
|
18.2
|
|
|
19.0
|
|
|
19.8
|
|
|
Pretax operating earnings
(1)
|
19.5
|
|
|
20.9
|
|
|
20.4
|
|
|
|
In Dollars
|
|
In Yen
|
|||||||||||||||
(In millions of dollars and billions of yen)
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
|||||||
New annualized premium sales
|
$
|
2,641
|
|
|
$2,027
|
|
$1,554
|
|
210.6
|
|
|
161.0
|
|
|
135.8
|
|
||
Increase (decrease) over prior year
|
30.3
|
%
|
|
30.5
|
%
|
|
18.6
|
%
|
|
30.8
|
%
|
|
18.6
|
%
|
|
11.0
|
%
|
|
2012
|
|
2011
|
|
2010
|
|
|||
Medical
|
17.5
|
%
|
|
22.3
|
%
|
|
34.2
|
%
|
|
Cancer
|
13.1
|
|
|
19.6
|
|
|
22.0
|
|
|
Ordinary life:
|
|
|
|
|
|
|
|||
Child endowment
|
11.6
|
|
|
17.0
|
|
|
18.6
|
|
|
WAYS
|
44.9
|
|
|
26.2
|
|
|
8.9
|
|
|
Other ordinary life
|
8.5
|
|
|
10.3
|
|
|
12.6
|
|
|
Other
|
4.4
|
|
|
4.6
|
|
|
3.7
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
2012
|
|
2011
|
|
2010
|
|
|||
Debt security purchases, at cost:
|
|
|
|
|
|
|
|||
Banks/financial institutions
|
2.3
|
%
|
|
3.9
|
%
|
|
8.5
|
%
|
|
Government and agencies
|
73.8
|
|
|
83.7
|
|
|
55.1
|
|
|
Municipalities
|
.0
|
|
|
.7
|
|
|
2.5
|
|
|
Public utilities
|
3.4
|
|
|
2.4
|
|
|
11.4
|
|
|
Sovereign and supranational
|
.1
|
|
|
.5
|
|
|
5.8
|
|
|
Mortgage- and asset-backed securities
|
.0
|
|
|
.0
|
|
|
2.3
|
|
|
Other corporate
|
20.4
|
|
|
8.8
|
|
|
14.4
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
2012
|
|
2011
|
|
2010
|
|||
AAA
|
.3
|
%
|
|
6.9
|
%
|
|
.8
|
%
|
AA
|
74.9
|
|
|
79.3
|
|
|
68.9
|
|
A
|
8.5
|
|
|
7.5
|
|
|
18.5
|
|
BBB
|
15.1
|
|
|
5.7
|
|
|
11.8
|
|
BB or Lower
|
1.2
|
|
|
.6
|
|
|
.0
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
2012
(1)
|
|
2011
|
|
2010
|
|||
New money yield
|
2.40
|
%
|
|
2.48
|
%
|
|
2.63
|
%
|
Return on average invested assets, net of investment expenses
|
2.89
|
|
|
3.18
|
|
|
3.48
|
|
Portfolio yield, including dollar-denominated investments, end of year
|
2.87
|
|
|
3.29
|
|
|
3.56
|
|
|
|
2012
|
|
|
|
2011
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.6
|
%
|
|
|
|
1.7
|
%
|
|
|
|
2.0
|
%
|
|
|
|
2.1
|
%
|
|
AA
|
|
49.8
|
|
|
|
|
49.6
|
|
|
|
|
41.9
|
|
|
|
|
43.2
|
|
|
A
|
|
20.6
|
|
|
|
|
21.2
|
|
|
|
|
28.3
|
|
|
|
|
28.7
|
|
|
BBB
|
|
23.3
|
|
|
|
|
23.0
|
|
|
|
|
21.8
|
|
|
|
|
20.8
|
|
|
BB or lower
|
|
4.7
|
|
|
|
|
4.5
|
|
|
|
|
6.0
|
|
|
|
|
5.2
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||
Premium income
|
$
|
4,996
|
|
|
$
|
4,743
|
|
|
$
|
4,586
|
|
Net investment income
|
613
|
|
|
588
|
|
|
549
|
|
|||
Other income
|
19
|
|
|
10
|
|
|
11
|
|
|||
Total operating revenues
|
5,628
|
|
|
5,341
|
|
|
5,146
|
|
|||
Benefits and claims
|
2,834
|
|
|
2,713
|
|
|
2,553
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Amortization of deferred policy acquisition costs
|
400
|
|
|
383
|
|
|
395
|
|
|||
Insurance commissions
|
570
|
|
|
546
|
|
|
534
|
|
|||
Insurance and other expenses
|
827
|
|
|
795
|
|
|
742
|
|
|||
Total operating expenses
|
1,797
|
|
|
1,724
|
|
|
1,671
|
|
|||
Total benefits and expenses
|
4,631
|
|
|
4,437
|
|
|
4,224
|
|
|||
Pretax operating earnings
(1)
|
$
|
997
|
|
|
$
|
904
|
|
|
$
|
922
|
|
Percentage change over previous year:
|
|
|
|
|
|
||||||
Premium income
|
5.4
|
%
|
|
3.4
|
%
|
|
3.2
|
%
|
|||
Net investment income
|
4.2
|
|
|
7.1
|
|
|
9.9
|
|
|||
Total operating revenues
|
5.4
|
|
|
3.8
|
|
|
3.9
|
|
|||
Pretax operating earnings
(1)
|
10.3
|
|
|
(1.9
|
)
|
|
18.9
|
|
Ratios to total revenues:
|
2012
|
|
2011
|
|
2010
|
|
|||
Benefits and claims
|
50.3
|
%
|
|
50.8
|
%
|
|
49.6
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|||
Amortization of deferred policy acquisition costs
|
7.1
|
|
|
7.2
|
|
|
7.7
|
|
|
Insurance commissions
|
10.1
|
|
|
10.2
|
|
|
10.4
|
|
|
Insurance and other expenses
|
14.8
|
|
|
14.9
|
|
|
14.4
|
|
|
Total operating expenses
|
32.0
|
|
|
32.3
|
|
|
32.5
|
|
|
Pretax operating earnings
(1)
|
17.7
|
|
|
16.9
|
|
|
17.9
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
|
||||||
New annualized premium sales
|
$
|
1,488
|
|
|
$
|
1,476
|
|
|
$
|
1,382
|
|
|
Increase (decrease) over prior year
|
.8
|
%
|
|
6.8
|
%
|
|
(4.9
|
)%
|
|
|
2012
|
|
2011
|
|
2010
|
|
|||
Income-loss protection:
|
|
|
|
|
|
|
|||
Short-term disability
|
20.3
|
%
|
|
18.0
|
%
|
|
17.1
|
%
|
|
Life
|
5.4
|
|
|
5.7
|
|
|
6.0
|
|
|
Asset-loss protection:
|
|
|
|
|
|
|
|||
Accident
|
29.5
|
|
|
30.0
|
|
|
30.5
|
|
|
Critical care
(1)
|
23.1
|
|
|
24.1
|
|
|
23.2
|
|
|
Supplemental medical:
|
|
|
|
|
|
|
|||
Hospital indemnity
|
15.3
|
|
|
15.7
|
|
|
17.8
|
|
|
Dental/vision
|
6.1
|
|
|
6.5
|
|
|
5.4
|
|
|
Other
|
.3
|
|
|
.0
|
|
|
.0
|
|
|
Total
|
100.0
|
%
|
|
100.0%
|
|
100.0
|
%
|
|
|
2012
|
|
2011
|
|
2010
|
|
|||
Debt security purchases, at cost:
|
|
|
|
|
|
|
|||
Banks/financial institutions
|
8.5
|
%
|
|
4.5
|
%
|
|
4.2
|
%
|
|
Government and agencies
|
4.7
|
|
|
.0
|
|
|
.0
|
|
|
Municipalities
|
.8
|
|
|
12.8
|
|
|
19.0
|
|
|
Public utilities
|
23.5
|
|
|
16.6
|
|
|
21.6
|
|
|
Sovereign and supranational
|
.9
|
|
|
.0
|
|
|
.6
|
|
|
Other corporate
|
61.6
|
|
|
66.1
|
|
|
54.6
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
2012
|
|
2011
|
|
2010
|
|
|||
New money yield
|
3.96
|
%
|
|
5.67
|
%
|
|
5.81
|
%
|
|
Return on average invested assets, net of investment expenses
|
6.25
|
|
|
6.41
|
|
|
6.37
|
|
|
Portfolio yield, end of year
|
6.28
|
|
|
6.67
|
|
|
6.88
|
|
|
|
|
2012
|
|
|
|
2011
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.1
|
%
|
|
|
|
1.0
|
%
|
|
|
|
.6
|
%
|
|
|
|
.6
|
%
|
|
AA
|
|
9.6
|
|
|
|
|
10.1
|
|
|
|
|
10.3
|
|
|
|
|
10.8
|
|
|
A
|
|
44.3
|
|
|
|
|
45.2
|
|
|
|
|
43.4
|
|
|
|
|
45.4
|
|
|
BBB
|
|
40.0
|
|
|
|
|
39.1
|
|
|
|
|
41.2
|
|
|
|
|
39.4
|
|
|
BB or lower
|
|
5.0
|
|
|
|
|
4.6
|
|
|
|
|
4.5
|
|
|
|
|
3.8
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
(In millions)
|
As
Reported |
|
Exchange
Effect |
|
Net of
Exchange Effect |
||||||||||||
Yen/dollar exchange rate
(1)
|
|
86.58
|
|
|
|
|
|
|
|
|
77.74
|
|
|
||||
Investments and cash
|
|
$
|
118,219
|
|
|
|
|
$
|
(9,898
|
)
|
|
|
|
$
|
128,117
|
|
|
Deferred policy acquisition costs
|
|
9,658
|
|
|
|
|
(773
|
)
|
|
|
|
10,431
|
|
|
|||
Total assets
|
|
131,094
|
|
|
|
|
(10,861
|
)
|
|
|
|
141,955
|
|
|
|||
Policy liabilities
|
|
97,949
|
|
|
|
|
(10,159
|
)
|
|
|
|
108,108
|
|
|
|||
Total liabilities
|
|
115,116
|
|
|
|
|
(11,441
|
)
|
|
|
|
126,557
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
|
||||||||||||
(In millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
||||||||
Securities available for sale, at fair value:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
45,472
|
|
|
$
|
37,473
|
|
|
$
|
11,625
|
|
(1)
|
$
|
9,961
|
|
(1)
|
Perpetual securities
|
4,127
|
|
|
6,271
|
|
|
175
|
|
|
168
|
|
|
||||
Equity securities
|
23
|
|
|
25
|
|
|
0
|
|
|
0
|
|
|
||||
Total available for sale
|
49,622
|
|
|
43,769
|
|
|
11,800
|
|
|
10,129
|
|
|
||||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
54,426
|
|
|
47,009
|
|
|
0
|
|
|
0
|
|
|
||||
Total held to maturity
|
54,426
|
|
|
47,009
|
|
|
0
|
|
|
0
|
|
|
||||
Total investment securities
|
$
|
104,048
|
|
|
$
|
90,778
|
|
|
$
|
11,800
|
|
|
$
|
10,129
|
|
|
(In millions)
|
2012
|
|
2011
|
|
||||||||||||||||||||
Yen/dollar exchange rates
|
71.58
|
|
|
86.58
(1)
|
|
|
101.58
|
|
|
62.74
|
|
|
77.74
(1)
|
|
|
92.74
|
|
|
||||||
Yen-denominated financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturities
(2)
|
$
|
30,649
|
|
|
$
|
25,339
|
|
|
$
|
21,597
|
|
|
$
|
31,405
|
|
|
$
|
25,345
|
|
|
$
|
21,246
|
|
|
Fixed maturities - consolidated variable
interest entities (3) |
3,272
|
|
|
2,705
|
|
|
2,306
|
|
|
3,402
|
|
|
2,746
|
|
|
2,302
|
|
|
||||||
Perpetual securities
|
4,270
|
|
|
3,530
|
|
|
3,009
|
|
|
6,117
|
|
|
4,937
|
|
|
4,138
|
|
|
||||||
Perpetual securities - consolidated
variable interest entities (3) |
592
|
|
|
489
|
|
|
417
|
|
|
1,477
|
|
|
1,192
|
|
|
999
|
|
|
||||||
Equity securities
|
21
|
|
|
18
|
|
|
15
|
|
|
24
|
|
|
19
|
|
|
16
|
|
|
||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturities
|
65,481
|
|
|
54,137
|
|
|
46,143
|
|
|
57,451
|
|
|
46,366
|
|
|
38,867
|
|
|
||||||
Fixed maturities - consolidated variable
interest entities (3) |
349
|
|
|
289
|
|
|
246
|
|
|
797
|
|
|
643
|
|
|
539
|
|
|
||||||
Cash and cash equivalents
|
463
|
|
|
383
|
|
|
326
|
|
|
1,737
|
|
|
1,402
|
|
|
1,175
|
|
|
||||||
Derivatives
|
248
|
|
|
205
|
|
|
175
|
|
|
51
|
|
|
41
|
|
|
34
|
|
|
||||||
Other financial instruments
|
186
|
|
|
153
|
|
|
131
|
|
|
183
|
|
|
147
|
|
|
124
|
|
|
||||||
Subtotal
|
105,531
|
|
|
87,248
|
|
|
74,365
|
|
|
102,644
|
|
|
82,838
|
|
|
69,440
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Notes payable
|
1,030
|
|
|
852
|
|
|
726
|
|
|
1,599
|
|
|
1,291
|
|
|
1,082
|
|
|
||||||
Japanese policyholder protection corporation
|
28
|
|
|
23
|
|
|
20
|
|
|
88
|
|
|
71
|
|
|
60
|
|
|
||||||
Derivatives
|
864
|
|
|
715
|
|
|
609
|
|
|
465
|
|
|
375
|
|
|
315
|
|
|
||||||
Subtotal
|
1,922
|
|
|
1,590
|
|
|
1,355
|
|
|
2,152
|
|
|
1,737
|
|
|
1,457
|
|
|
||||||
Net yen-denominated financial instruments
|
103,609
|
|
|
85,658
|
|
|
73,010
|
|
|
100,492
|
|
|
81,101
|
|
|
67,983
|
|
|
||||||
Other yen-denominated assets
|
10,189
|
|
|
8,423
|
|
|
7,179
|
|
|
10,655
|
|
|
8,599
|
|
|
7,209
|
|
|
||||||
Other yen-denominated liabilities
|
119,778
|
|
|
99,026
|
|
|
84,403
|
|
|
112,094
|
|
|
90,465
|
|
|
75,833
|
|
|
||||||
Consolidated yen-denominated net assets
(liabilities) subject to foreign currency fluctuation (2) |
$
|
(5,980
|
)
|
|
$
|
(4,945
|
)
|
|
$
|
(4,214
|
)
|
|
$
|
(947
|
)
|
|
$
|
(765
|
)
|
|
$
|
(641
|
)
|
|
|
2012
|
|
2011
|
||||||||||||
(In millions)
|
Fair
Value |
|
+100
Basis Points |
|
Fair
Value |
|
+100
Basis Points |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Debt and perpetual securities:
|
|
|
|
|
|
|
|
||||||||
Fixed-maturity securities:
|
|
|
|
|
|
|
|
||||||||
Yen-denominated
|
$
|
82,885
|
|
|
$
|
72,617
|
|
|
$
|
74,474
|
|
|
$
|
65,219
|
|
Dollar-denominated
|
29,209
|
|
|
26,319
|
|
|
19,481
|
|
|
17,600
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
||||||||
Yen-denominated
|
4,019
|
|
|
3,728
|
|
|
6,129
|
|
|
5,669
|
|
||||
Dollar-denominated
|
283
|
|
|
264
|
|
|
310
|
|
|
291
|
|
||||
Total debt and perpetual securities
|
$
|
116,396
|
|
|
$
|
102,928
|
|
|
$
|
100,394
|
|
|
$
|
88,779
|
|
Derivatives
|
$
|
343
|
|
|
$
|
306
|
|
|
$
|
375
|
|
|
$
|
212
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Notes payable
(1)
|
$
|
4,992
|
|
|
$
|
4,658
|
|
|
$
|
3,536
|
|
|
$
|
3,334
|
|
Derivatives
|
867
|
|
|
970
|
|
|
401
|
|
|
563
|
|
||||
Japanese policyholder protection corporation
|
23
|
|
|
23
|
|
|
71
|
|
|
71
|
|
(In years)
|
2012
|
|
2011
|
|
||
Yen-denominated debt and perpetual securities
|
13
|
|
|
13
|
|
|
Policy benefits and related expenses to be paid in future years
|
14
|
|
|
14
|
|
|
Premiums to be received in future years on policies in force
|
10
|
|
|
10
|
|
|
(In years)
|
2012
|
|
2011
|
|
||
Dollar-denominated debt and perpetual securities
|
11
|
|
|
11
|
|
|
Policy benefits and related expenses to be paid in future years
|
7
|
|
|
7
|
|
|
Premiums to be received in future years on policies in force
|
6
|
|
|
6
|
|
|
|
|
2012
|
|
|
2011
|
|
2010
|
|||||||||||||||||
|
U.S.
|
Japan
(1)
|
U.S.
|
Japan
(1)
|
U.S.
|
Japan
(1)
|
||||||||||||||||||
Policies issued during year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Required interest on policy reserves
|
|
3.75
|
%
|
|
|
2.00
|
%
|
|
|
4.75
|
%
|
|
|
2.25
|
%
|
|
|
5.50
|
%
|
|
|
2.39
|
%
|
|
New money yield on investments
|
|
3.90
|
|
|
|
2.24
|
|
|
|
5.64
|
|
|
|
2.42
|
|
|
|
5.78
|
|
|
|
2.44
|
|
|
Policies in force at year-end:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Required interest on policy reserves
|
|
5.95
|
|
|
|
4.00
|
|
|
|
5.99
|
|
|
|
4.02
|
|
|
|
6.03
|
|
|
|
4.40
|
|
|
Return on average invested assets
|
|
6.25
|
|
|
|
2.89
|
|
|
|
6.41
|
|
|
|
3.18
|
|
|
|
6.37
|
|
|
|
3.48
|
|
|
|
2012
|
|
2011
|
|
2010
|
|
|||
AAA
|
.5
|
%
|
|
6.6
|
%
|
|
1.0
|
%
|
|
AA
|
72.1
|
|
|
75.4
|
|
|
60.7
|
|
|
A
|
10.3
|
|
|
9.7
|
|
|
24.5
|
|
|
BBB
|
15.9
|
|
|
7.8
|
|
|
13.8
|
|
|
BB or lower
|
1.2
|
|
|
.5
|
|
|
.0
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
2012
|
|
|
|
2011
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.5
|
%
|
|
|
|
1.6
|
%
|
|
|
|
1.8
|
%
|
|
|
|
1.9
|
%
|
|
AA
|
|
46.2
|
|
|
|
|
45.6
|
|
|
|
|
39.1
|
|
|
|
|
39.9
|
|
|
A
|
|
22.8
|
|
|
|
|
23.7
|
|
|
|
|
29.7
|
|
|
|
|
30.4
|
|
|
BBB
|
|
24.8
|
|
|
|
|
24.6
|
|
|
|
|
23.6
|
|
|
|
|
22.7
|
|
|
BB or lower
|
|
4.7
|
|
|
|
|
4.5
|
|
|
|
|
5.8
|
|
|
|
|
5.1
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
2012
|
|
|
|
2011
|
|
||||||||||||||
(In millions)
|
Amortized
Cost |
|
Percentage
of Total |
|
Amortized
Cost |
|
Percentage
of Total |
||||||||||||||
Senior notes
|
|
$
|
102,978
|
|
|
|
|
91.9
|
%
|
|
|
|
$
|
85,544
|
|
|
|
|
86.2
|
%
|
|
Subordinated securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities (stated maturity date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Lower Tier II
|
|
3,985
|
|
|
|
|
3.6
|
|
|
|
|
5,795
|
|
|
|
|
5.8
|
|
|
||
Tier I
(1)
|
|
405
|
|
|
|
|
.3
|
|
|
|
|
555
|
|
|
|
|
.6
|
|
|
||
Surplus notes
|
|
335
|
|
|
|
|
.3
|
|
|
|
|
335
|
|
|
|
|
.3
|
|
|
||
Trust preferred - non-banks
|
|
85
|
|
|
|
|
.1
|
|
|
|
|
85
|
|
|
|
|
.1
|
|
|
||
Other subordinated - non-banks
|
|
51
|
|
|
|
|
.0
|
|
|
|
|
51
|
|
|
|
|
.1
|
|
|
||
Total fixed maturities
|
|
4,861
|
|
|
|
|
4.3
|
|
|
|
|
6,821
|
|
|
|
|
6.9
|
|
|
||
Perpetual securities (economic maturity date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Upper Tier II
|
|
2,825
|
|
|
|
|
2.5
|
|
|
|
|
4,285
|
|
|
|
|
4.3
|
|
|
||
Tier I
|
|
1,079
|
|
|
|
|
1.0
|
|
|
|
|
2,268
|
|
|
|
|
2.3
|
|
|
||
Other subordinated - non-banks
|
|
309
|
|
|
|
|
.3
|
|
|
|
|
344
|
|
|
|
|
.3
|
|
|
||
Total perpetual securities
|
|
4,213
|
|
|
|
|
3.8
|
|
|
|
|
6,897
|
|
|
|
|
6.9
|
|
|
||
Total debt and perpetual securities
|
|
$
|
112,052
|
|
|
|
|
100.0
|
%
|
|
|
|
$
|
99,262
|
|
|
|
|
100.0
|
%
|
|
|
Amortized
|
|
% of
|
|
|
|
Ratings
|
|||||||
(In millions)
|
Cost
|
|
Total
|
|
Seniority
|
|
Moody’s
|
|
S&P
|
|
Fitch
|
|||
Japan National Government
(1)
|
$
|
44,081
|
|
|
39.3
|
%
|
|
Senior
|
|
Aa3
|
|
AA-
|
|
A+
|
Israel Electric Corp.
|
748
|
|
|
.7
|
|
|
Senior
|
|
Baa3
|
|
BB+
|
|
—
|
|
Republic of South Africa
|
704
|
|
|
.6
|
|
|
Senior
|
|
Baa1
|
|
BBB
|
|
BBB+
|
|
Bank of America Corp. (includes Merrill Lynch)
|
520
|
|
|
.5
|
|
|
|
|
|
|
|
|
|
|
Merrill Lynch & Co. Inc.
|
289
|
|
|
.3
|
|
|
Senior
|
|
Baa2
|
|
A-
|
|
A
|
|
Bank of America Corp.
|
231
|
|
|
.2
|
|
|
Lower Tier II
|
|
Baa3
|
|
BBB+
|
|
BBB
|
|
Bank of Tokyo-Mitsubishi UFJ Ltd.
|
520
|
|
|
.5
|
|
|
|
|
|
|
|
|
|
|
Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU Curacao Holdings NV)
|
520
|
|
|
.5
|
|
|
Lower Tier II
|
|
A1
|
|
A
|
|
BBB+
|
|
Republic of Tunisia
|
496
|
|
|
.4
|
|
|
Senior
|
|
Baa3
|
|
BB
|
|
BB+
|
|
Investcorp SA
|
477
|
|
|
.4
|
|
|
|
|
|
|
|
|
|
|
Investcorp Capital Limited
|
477
|
|
|
.4
|
|
|
Senior
|
|
Ba2
|
|
—
|
|
BB
|
|
National Grid PLC
|
462
|
|
|
.4
|
|
|
|
|
|
|
|
|
|
|
National Grid Gas PLC
|
231
|
|
|
.2
|
|
|
Senior
|
|
A3
|
|
A-
|
|
A
|
|
National Grid Electricity Transmission PLC
|
231
|
|
|
.2
|
|
|
Senior
|
|
A3
|
|
A-
|
|
A
|
|
Sumitomo Mitsui Financial Group Inc.
|
462
|
|
|
.4
|
|
|
|
|
|
|
|
|
|
|
Sumitomo Mitsui Banking Corporation
|
115
|
|
|
.1
|
|
|
Lower Tier II
|
|
A1
|
|
A
|
|
—
|
|
Sumitomo Mitsui Banking Corporation (includes SMBC
International Finance) |
347
|
|
|
.3
|
|
|
Upper Tier II
|
|
A2
|
|
BBB+
|
|
—
|
|
Telecom Italia SpA
|
462
|
|
|
.4
|
|
|
|
|
|
|
|
|
|
|
Telecom Italia Finance SA
|
462
|
|
|
.4
|
|
|
Senior
|
|
Baa2
|
|
BBB
|
|
BBB
|
|
Deutsche Bank AG
|
460
|
|
|
.4
|
|
|
|
|
|
|
|
|
|
|
Deutsche Postbank AG
|
277
|
|
|
.2
|
|
|
Lower Tier II
|
|
Baa3
|
|
BBB+
|
|
A-
|
|
Deutsche Bank Capital Trust II
|
167
|
|
|
.2
|
|
|
Tier I
|
|
Ba2
|
|
BBB
|
|
BBB-
|
|
Deutsche BK CAP FDG Capital Trust I
|
16
|
|
|
.0
|
|
|
Tier I
|
|
Ba2
|
|
BBB
|
|
BBB-
|
|
Citigroup Inc.
|
456
|
|
|
.4
|
|
|
|
|
|
|
|
|
|
|
Citigroup Inc. (includes Citigroup Global Markets Holdings Inc.)
|
455
|
|
|
.4
|
|
|
Senior
|
|
Baa2
|
|
A-
|
|
A
|
|
Citigroup Inc. (Citicorp)
|
1
|
|
|
.0
|
|
|
Lower Tier II
|
|
Baa3
|
|
BBB+
|
|
BBB+
|
|
JP Morgan Chase & Co. (including Bear Stearns)
|
455
|
|
|
.4
|
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co. (including Bear Stearns Companies Inc.)
|
404
|
|
|
.4
|
|
|
Senior
|
|
A2
|
|
A
|
|
A+
|
|
JPMorgan Chase & Co. (FNBC)
|
23
|
|
|
.0
|
|
|
Senior
|
|
Aa1
|
|
A+
|
|
—
|
|
JPMorgan Chase & Co. (Bank One Corp.)
|
17
|
|
|
.0
|
|
|
Lower Tier II
|
|
A3
|
|
A-
|
|
A
|
|
JPMorgan Chase & Co. (NBD Bank)
|
11
|
|
|
.0
|
|
|
Lower Tier II
|
|
A1
|
|
A
|
|
A
|
|
Metlife Inc.
|
454
|
|
|
.4
|
|
|
|
|
|
|
|
|
|
|
Metlife Inc.
|
165
|
|
|
.2
|
|
|
Senior
|
|
A3
|
|
A-
|
|
A-
|
|
Metropolitan Life Global Funding I
|
289
|
|
|
.2
|
|
|
Senior
|
|
Aa3
|
|
AA-
|
|
A+
|
|
Banobras
|
427
|
|
|
.4
|
|
|
Senior
|
|
Baa1
|
|
BBB
|
|
BBB
|
|
Unique Zurich Airport
|
427
|
|
|
.4
|
|
|
Senior
|
|
—
|
|
A
|
|
—
|
|
Gas Natural SDG (Union Fenosa)
|
427
|
|
|
.4
|
|
|
|
|
|
|
|
|
|
|
Union Fenosa Finance B.V.
|
427
|
|
|
.4
|
|
|
Senior
|
|
Baa2
|
|
BBB
|
|
BBB+
|
|
General Electric Co.
|
415
|
|
|
.4
|
|
|
|
|
|
|
|
|
|
|
GE Capital Corporation
|
363
|
|
|
.3
|
|
|
Senior
|
|
A1
|
|
AA+
|
|
—
|
|
Security Capital Group
|
37
|
|
|
.1
|
|
|
Senior
|
|
A1
|
|
AA+
|
|
—
|
|
Susa Partnership LP
|
9
|
|
|
.0
|
|
|
Senior
|
|
A1
|
|
AA+
|
|
—
|
|
GE Capital Services Inc.
|
6
|
|
|
.0
|
|
|
Lower Tier II
|
|
Aa3
|
|
AA+
|
|
—
|
|
Sultanate of Oman
|
404
|
|
|
.4
|
|
|
Senior
|
|
A1
|
|
A
|
|
—
|
|
Deutsche Telekom AG
|
401
|
|
|
.3
|
|
|
|
|
|
|
|
|
|
|
Deutsche Telekom AG
|
347
|
|
|
.3
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
BBB+
|
|
Deutsche Telekom International Finance
|
54
|
|
|
.0
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
BBB+
|
|
Subtotal
|
$
|
53,258
|
|
|
47.5
|
%
|
|
|
|
|
|
|
|
|
Total debt and perpetual securities
|
$
|
112,052
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
||||||||||
(In millions)
|
Amortized Cost
|
|
% of Total
|
|
Amortized Cost
|
|
% of Total
|
|
||||||
Japan
|
$
|
48,598
|
|
|
43.4
|
%
|
|
$
|
34,942
|
|
|
35.2
|
%
|
|
United States and Canada
|
24,512
|
|
|
22.0
|
|
|
17,221
|
|
|
17.4
|
|
|
||
United Kingdom
|
4,025
|
|
|
3.6
|
|
|
5,031
|
|
|
5.1
|
|
|
||
Germany
|
3,965
|
|
|
3.5
|
|
|
4,877
|
|
|
4.9
|
|
|
||
France
|
2,500
|
|
|
2.2
|
|
|
2,723
|
|
|
2.7
|
|
|
||
PIIGS
|
4,550
|
|
|
4.1
|
|
|
6,066
|
|
|
6.1
|
|
|
||
Portugal
|
272
|
|
|
.3
|
|
|
308
|
|
|
.3
|
|
|
||
Italy
|
2,327
|
|
|
2.1
|
|
|
2,588
|
|
|
2.6
|
|
|
||
Ireland
|
492
|
|
|
.4
|
|
|
544
|
|
|
.6
|
|
|
||
Spain
|
1,459
|
|
|
1.3
|
|
|
2,626
|
|
|
2.6
|
|
|
||
Other Central Europe
|
3,626
|
|
|
3.2
|
|
|
5,812
|
|
|
5.9
|
|
|
||
Netherlands
|
2,259
|
|
|
2.0
|
|
|
2,496
|
|
|
2.5
|
|
|
||
Switzerland
|
688
|
|
|
.6
|
|
|
1,357
|
|
|
1.4
|
|
|
||
Austria
|
386
|
|
|
.3
|
|
|
1,143
|
|
|
1.2
|
|
|
||
Belgium
|
293
|
|
|
.3
|
|
|
816
|
|
|
.8
|
|
|
||
Nordic Region
|
3,407
|
|
|
3.0
|
|
|
4,126
|
|
|
4.2
|
|
|
||
Sweden
|
1,513
|
|
|
1.3
|
|
|
1,863
|
|
|
1.9
|
|
|
||
Norway
|
814
|
|
|
.7
|
|
|
1,051
|
|
|
1.1
|
|
|
||
Denmark
|
551
|
|
|
.5
|
|
|
614
|
|
|
.6
|
|
|
||
Finland
|
529
|
|
|
.5
|
|
|
598
|
|
|
.6
|
|
|
||
Eastern Europe
|
815
|
|
|
.7
|
|
|
907
|
|
|
.9
|
|
|
||
Czech Republic
|
577
|
|
|
.5
|
|
|
643
|
|
|
.6
|
|
|
||
Poland
|
238
|
|
|
.2
|
|
|
264
|
|
|
.3
|
|
|
||
Asia excluding Japan
|
5,397
|
|
|
4.8
|
|
|
5,690
|
|
|
5.7
|
|
|
||
Africa and Middle East
|
3,611
|
|
|
3.2
|
|
|
4,197
|
|
|
4.2
|
|
|
||
Latin America
|
3,381
|
|
|
3.0
|
|
|
3,771
|
|
|
3.8
|
|
|
||
Australia
|
2,982
|
|
|
2.7
|
|
|
3,159
|
|
|
3.2
|
|
|
||
All Others
|
683
|
|
|
.6
|
|
|
740
|
|
|
.7
|
|
|
||
Total debt and perpetual securities
|
$
|
112,052
|
|
|
100.0
|
%
|
|
$
|
99,262
|
|
|
100.0
|
%
|
|
2012
|
||||||||||||||||||||||||||||||||
|
One to Five Years
|
Five to Ten Years
|
After Ten Years
|
Total
|
||||||||||||||||||||||||||||
|
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
||||||||||||||||||||||||
(In millions)
|
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
||||||||||||||||||||||||
Available-for-sale
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ireland:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Banks/financial
institutions |
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
261
|
|
|
$
|
183
|
|
|
$
|
261
|
|
|
$
|
183
|
|
Italy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Public utilities
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
15
|
|
|
17
|
|
|
15
|
|
|
17
|
|
||||||||
Other corporate
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
360
|
|
|
387
|
|
|
360
|
|
|
387
|
|
||||||||
Portugal:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Public utilities
|
|
0
|
|
|
0
|
|
|
156
|
|
|
155
|
|
|
116
|
|
|
100
|
|
|
272
|
|
|
255
|
|
||||||||
Spain:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
76
|
|
|
91
|
|
|
76
|
|
|
91
|
|
||||||||
Banks/financial
institutions |
|
34
|
|
|
36
|
|
|
0
|
|
|
0
|
|
|
64
|
|
|
66
|
|
|
98
|
|
|
102
|
|
||||||||
Public utilities
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
427
|
|
|
420
|
|
|
427
|
|
|
420
|
|
||||||||
Other corporate
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
223
|
|
|
217
|
|
|
223
|
|
|
217
|
|
||||||||
Held-to-maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ireland:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Banks/financial
institutions |
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
231
|
|
|
197
|
|
|
231
|
|
|
197
|
|
||||||||
Italy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
289
|
|
|
263
|
|
|
289
|
|
|
263
|
|
||||||||
Banks/financial
institutions |
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
173
|
|
|
157
|
|
|
173
|
|
|
157
|
|
||||||||
Public utilities
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
855
|
|
|
845
|
|
|
855
|
|
|
845
|
|
||||||||
Other corporate
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
635
|
|
|
594
|
|
|
635
|
|
|
594
|
|
||||||||
Spain:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Public utilities
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
404
|
|
|
380
|
|
|
404
|
|
|
380
|
|
||||||||
Other corporate
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
231
|
|
|
224
|
|
|
231
|
|
|
224
|
|
||||||||
Total gross and net
funded exposure |
|
$
|
34
|
|
|
$
|
36
|
|
|
$
|
156
|
|
|
$
|
155
|
|
|
$
|
4,360
|
|
|
$
|
4,141
|
|
|
$
|
4,550
|
|
|
$
|
4,332
|
|
2011
|
||||||||||||||||||||||||||||||||
|
One to Five Years
|
Five to Ten Years
|
After Ten Years
|
Total
|
||||||||||||||||||||||||||||
|
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
||||||||||||||||||||||||
(In millions)
|
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
||||||||||||||||||||||||
Available-for-sale
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ireland:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Banks/financial
institutions |
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
287
|
|
|
$
|
170
|
|
|
$
|
287
|
|
|
$
|
170
|
|
Italy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Public utilities
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
15
|
|
|
14
|
|
|
15
|
|
|
14
|
|
||||||||
Other corporate
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
399
|
|
|
392
|
|
|
399
|
|
|
392
|
|
||||||||
Portugal:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Public utilities
|
|
10
|
|
|
10
|
|
|
40
|
|
|
33
|
|
|
129
|
|
|
105
|
|
|
179
|
|
|
148
|
|
||||||||
Spain:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
|
0
|
|
|
0
|
|
|
148
|
|
|
162
|
|
|
0
|
|
|
0
|
|
|
148
|
|
|
162
|
|
||||||||
Banks/financial
institutions |
|
34
|
|
|
35
|
|
|
0
|
|
|
0
|
|
|
45
|
|
|
45
|
|
|
79
|
|
|
80
|
|
||||||||
Public utilities
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
476
|
|
|
422
|
|
|
476
|
|
|
422
|
|
||||||||
Other corporate
|
|
34
|
|
|
33
|
|
|
0
|
|
|
0
|
|
|
243
|
|
|
212
|
|
|
277
|
|
|
245
|
|
||||||||
Held-to-maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Ireland:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Banks/financial
institutions |
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
257
|
|
|
209
|
|
|
257
|
|
|
209
|
|
||||||||
Italy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
322
|
|
|
303
|
|
|
322
|
|
|
303
|
|
||||||||
Banks/financial
institutions |
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
193
|
|
|
181
|
|
|
193
|
|
|
181
|
|
||||||||
Public utilities
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
952
|
|
|
914
|
|
|
952
|
|
|
914
|
|
||||||||
Other corporate
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
707
|
|
|
661
|
|
|
707
|
|
|
661
|
|
||||||||
Portugal:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Public utilities
|
|
0
|
|
|
0
|
|
|
129
|
|
|
135
|
|
|
0
|
|
|
0
|
|
|
129
|
|
|
135
|
|
||||||||
Spain:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
489
|
|
|
470
|
|
|
489
|
|
|
470
|
|
||||||||
Banks/financial
institutions |
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
450
|
|
|
356
|
|
|
450
|
|
|
356
|
|
||||||||
Public utilities
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
450
|
|
|
447
|
|
|
450
|
|
|
447
|
|
||||||||
Other corporate
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
257
|
|
|
241
|
|
|
257
|
|
|
241
|
|
||||||||
Total gross and net
funded exposure |
|
$
|
78
|
|
|
$
|
78
|
|
|
$
|
317
|
|
|
$
|
330
|
|
|
$
|
5,671
|
|
|
$
|
5,142
|
|
|
$
|
6,066
|
|
|
$
|
5,550
|
|
|
|
2012
|
|
|
|
2011
|
|
||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Publicly issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
67,116
|
|
|
|
|
$
|
70,026
|
|
|
|
|
$
|
45,475
|
|
|
|
|
$
|
48,163
|
|
|
Perpetual securities
|
|
128
|
|
|
|
|
146
|
|
|
|
|
195
|
|
|
|
|
178
|
|
|
||||
Equity securities
|
|
11
|
|
|
|
|
13
|
|
|
|
|
13
|
|
|
|
|
15
|
|
|
||||
Total publicly issued
|
|
67,255
|
|
|
|
|
70,185
|
|
|
|
|
45,683
|
|
|
|
|
48,356
|
|
|
||||
Privately issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
40,723
|
|
|
|
|
42,068
|
|
|
|
|
46,890
|
|
|
|
|
45,792
|
|
|
||||
Perpetual securities
|
|
4,085
|
|
|
|
|
4,156
|
|
|
|
|
6,702
|
|
|
|
|
6,261
|
|
|
||||
Equity securities
|
|
9
|
|
|
|
|
10
|
|
|
|
|
9
|
|
|
|
|
10
|
|
|
||||
Total privately issued
|
|
44,817
|
|
|
|
|
46,234
|
|
|
|
|
53,601
|
|
|
|
|
52,063
|
|
|
||||
Total investment securities
|
|
$
|
112,072
|
|
|
|
|
$
|
116,419
|
|
|
|
|
$
|
99,284
|
|
|
|
|
$
|
100,419
|
|
|
(Amortized cost, in millions)
|
2012
|
|
2011
|
||||
Privately issued securities as a percentage of total debt and perpetual
securities |
40.0
|
%
|
|
54.0
|
%
|
||
Privately issued securities held by Aflac Japan
|
$
|
41,624
|
|
|
$
|
50,819
|
|
Privately issued securities held by Aflac Japan as a percentage of total debt
and perpetual securities |
37.1
|
%
|
|
51.2
|
%
|
(Amortized cost, in millions)
|
2012
|
|
2011
|
||||
Privately issued reverse-dual currency securities
|
$
|
9,916
|
|
|
$
|
12,655
|
|
Publicly issued collateral structured as reverse-dual currency securities
|
2,781
|
|
|
2,958
|
|
||
Total reverse-dual currency securities
|
$
|
12,697
|
|
|
$
|
15,613
|
|
Reverse-dual currency securities as a percentage of total debt and perpetual
securities |
11.3
|
%
|
|
15.7
|
%
|
|
2012
|
|
2011
|
||||||||||||||||||||||||||||
(In millions)
|
Par
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain (Loss) |
|
Par
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain(Loss) |
||||||||||||||||
Israel Electric Corporation Limited
|
$
|
797
|
|
|
$
|
748
|
|
|
$
|
716
|
|
|
$
|
(32
|
)
|
|
$
|
888
|
|
|
$
|
847
|
|
|
$
|
805
|
|
|
$
|
(42
|
)
|
Republic of Tunisia
|
739
|
|
|
496
|
|
|
496
|
|
|
0
|
|
|
823
|
|
|
823
|
|
|
877
|
|
|
54
|
|
||||||||
Investcorp Capital Limited
|
477
|
|
|
477
|
|
|
418
|
|
|
(59
|
)
|
|
526
|
|
|
526
|
|
|
441
|
|
|
(85
|
)
|
||||||||
Commerzbank AG (includes Dresdner
Bank) |
462
|
|
|
297
|
|
|
394
|
|
|
97
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||
UPM-Kymmene
|
358
|
|
|
358
|
|
|
263
|
|
|
(95
|
)
|
|
399
|
|
|
399
|
|
|
235
|
|
|
(164
|
)
|
||||||||
UniCredit Bank AG (HVB Funding Trust I,
III, & VI) |
341
|
|
|
257
|
|
|
257
|
|
|
0
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||
Lloyds Banking Group PLC
|
328
|
|
|
292
|
|
|
351
|
|
|
59
|
|
|
408
|
|
|
360
|
|
|
312
|
|
|
(48
|
)
|
||||||||
Societe Generale
(3)
|
289
|
|
|
288
|
|
|
302
|
|
|
14
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||
CSAV (Tollo Shipping Co. S.A.)
|
277
|
|
|
117
|
|
|
145
|
|
|
28
|
|
|
309
|
|
|
130
|
|
|
130
|
|
|
0
|
|
||||||||
Bank of Ireland
|
231
|
|
|
231
|
|
|
153
|
|
|
(78
|
)
|
|
257
|
|
|
257
|
|
|
140
|
|
|
(117
|
)
|
||||||||
Generalitat de Catalunya
|
208
|
|
|
76
|
|
|
91
|
|
|
15
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||
Tokyo Electric Power Co., Inc.
|
199
|
|
|
201
|
|
|
203
|
|
|
2
|
|
|
232
|
|
|
235
|
|
|
211
|
|
|
(24
|
)
|
||||||||
Bankia SA (Bancaja Emisiones SA
Unipersonal) |
173
|
|
|
64
|
|
|
66
|
|
|
2
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||
Energias de Portugal SA (EDP)
|
158
|
|
|
156
|
|
|
155
|
|
|
(1
|
)
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||
IKB Deutsche Industriebank AG
|
150
|
|
|
78
|
|
|
96
|
|
|
18
|
|
|
167
|
|
|
87
|
|
|
87
|
|
|
0
|
|
||||||||
Redes Energeticas Nacionais SGPS,S.A.
(REN) |
116
|
|
|
116
|
|
|
100
|
|
|
(16
|
)
|
|
129
|
|
|
129
|
|
|
105
|
|
|
(24
|
)
|
||||||||
Finance For Danish Industry (FIH)
|
116
|
|
|
90
|
|
|
100
|
|
|
10
|
|
|
129
|
|
|
100
|
|
|
100
|
|
|
0
|
|
||||||||
Barclays Bank PLC
(3)
|
65
|
|
|
48
|
|
|
62
|
|
|
14
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||
Nextera Energy Inc. (FPL Marcus Hook,
White Pine Hydro) |
64
|
|
|
59
|
|
|
65
|
|
|
6
|
|
|
40
|
|
|
40
|
|
|
44
|
|
|
4
|
|
||||||||
Sparebanken Vest
(3)
|
60
|
|
|
60
|
|
|
60
|
|
|
0
|
|
|
60
|
|
|
60
|
|
|
59
|
|
|
(1
|
)
|
||||||||
Dexia SA (includes Dexia Bank Belgium &
Dexia Overseas)
(3)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
579
|
|
|
190
|
|
|
190
|
|
|
0
|
|
||||||||
Erste Group Bank (Erste Finance Jersey
Ltd. 3 & 5)
(3)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
450
|
|
|
424
|
|
|
253
|
|
|
(171
|
)
|
||||||||
Ford Motor Credit Company
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
386
|
|
|
386
|
|
|
388
|
|
|
2
|
|
||||||||
Swedbank AB
(3)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
180
|
|
|
139
|
|
|
106
|
|
|
(33
|
)
|
||||||||
Bawag Capital Finance Jersey
(3)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
180
|
|
|
77
|
|
|
77
|
|
|
0
|
|
||||||||
Hypo Vorarlberg Capital Finance
(3)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
141
|
|
|
83
|
|
|
86
|
|
|
3
|
|
||||||||
Other Issuers (below $50
million in par value) (4) |
384
|
|
|
360
|
|
|
364
|
|
|
4
|
|
|
408
|
|
|
378
|
|
|
339
|
|
|
(39
|
)
|
||||||||
Total
|
$
|
5,992
|
|
|
$
|
4,869
|
|
|
$
|
4,857
|
|
|
$
|
(12
|
)
|
|
$
|
6,691
|
|
|
$
|
5,670
|
|
|
$
|
4,985
|
|
|
$
|
(685
|
)
|
(In millions)
|
Amortized
Cost |
|
Investment-Grade
Status |
||||
Israel Electric Corp. Ltd.
|
|
$
|
748
|
|
|
|
Below Investment Grade
|
Republic of Tunisia
|
|
496
|
|
|
|
Below Investment Grade
|
|
SLM Corp.
|
|
376
|
|
|
|
Investment Grade
|
|
Ford Motor Credit Company
|
|
347
|
|
|
|
Investment Grade
|
|
Commerzbank AG (includes Dresdner Bank)
|
|
297
|
|
|
|
Below Investment Grade
|
|
Societe Generale
(1)
|
|
288
|
|
|
|
Below Investment Grade
|
|
Bank of Ireland
|
|
231
|
|
|
|
Below Investment Grade
|
|
Barclays Bank PLC
(1)(2)
|
|
190
|
|
|
|
Below Investment Grade / Investment Grade
|
|
Deutsche Bank Capital Trust II and Capital Funding Trust I
(1)
|
|
183
|
|
|
|
Investment Grade
|
|
Energias de Portugal SA (EDP)
|
|
156
|
|
|
|
Below Investment Grade
|
(In millions)
|
Total
Amortized Cost |
|
Total
Fair Value |
|
Percentage
of Total Fair Value |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|||||||||||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investment-grade securities
|
|
$
|
52,361
|
|
|
|
|
$
|
56,299
|
|
|
|
|
48.4
|
%
|
|
|
|
$
|
4,408
|
|
|
|
|
$
|
470
|
|
|
Below-investment-grade securities
|
|
5,265
|
|
|
|
|
5,256
|
|
|
|
|
4.5
|
|
|
|
|
304
|
|
|
|
|
313
|
|
|
||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investment-grade securities
|
|
54,426
|
|
|
|
|
54,841
|
|
|
|
|
47.1
|
|
|
|
|
1,213
|
|
|
|
|
798
|
|
|
||||
Total
|
|
$
|
112,052
|
|
|
|
|
$
|
116,396
|
|
|
|
|
100.0
|
%
|
|
|
|
$
|
5,925
|
|
|
|
|
$
|
1,581
|
|
|
(In millions)
|
Total
Amortized Cost |
|
Total
Unrealized Loss |
|
Less than Six Months
|
|
Six Months to Less
than 12 Months |
|
12 Months
or Longer |
|||||||||||||||||||||||
Amortized
Cost |
|
Unrealized
Loss |
|
Amortized
Cost |
|
Unrealized
Loss |
|
Amortized
Cost |
|
Unrealized
Loss |
||||||||||||||||||||||
Available-for-sale
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Investment-grade
securities |
$
|
17,605
|
|
|
$
|
470
|
|
|
$
|
12,810
|
|
|
$
|
200
|
|
|
$
|
80
|
|
|
$
|
1
|
|
|
$
|
4,715
|
|
|
$
|
269
|
|
|
Below-
investment-grade securities |
2,086
|
|
|
313
|
|
|
103
|
|
|
3
|
|
|
77
|
|
|
0
|
|
|
1,906
|
|
|
310
|
|
|||||||||
Held-to-maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Investment-grade
securities |
22,591
|
|
|
798
|
|
|
15,447
|
|
|
164
|
|
|
0
|
|
|
0
|
|
|
7,144
|
|
|
634
|
|
|||||||||
Total
|
$
|
42,282
|
|
|
$
|
1,581
|
|
|
$
|
28,360
|
|
|
$
|
367
|
|
|
$
|
157
|
|
|
$
|
1
|
|
|
$
|
13,765
|
|
|
$
|
1,213
|
|
(In millions)
|
Total
Amortized Cost |
|
Total
Unrealized Loss |
|
Less than 20%
|
|
20% to 50%
|
|
Greater than 50%
|
||||||||||||||||||||||
Amortized
Cost |
|
Unrealized
Loss |
|
Amortized
Cost |
|
Unrealized
Loss |
|
Amortized
Cost |
|
Unrealized
Loss |
|||||||||||||||||||||
Available-for-sale
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment-grade
securities |
$
|
17,605
|
|
|
$
|
470
|
|
|
$
|
17,407
|
|
|
$
|
412
|
|
|
$
|
198
|
|
|
$
|
58
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Below-
investment-grade securities |
2,086
|
|
|
313
|
|
|
1,489
|
|
|
138
|
|
|
597
|
|
|
175
|
|
|
0
|
|
|
0
|
|
||||||||
Held-to-maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment-grade
securities |
22,591
|
|
|
798
|
|
|
22,244
|
|
|
700
|
|
|
347
|
|
|
98
|
|
|
0
|
|
|
0
|
|
||||||||
Total
|
$
|
42,282
|
|
|
$
|
1,581
|
|
|
$
|
41,140
|
|
|
$
|
1,250
|
|
|
$
|
1,142
|
|
|
$
|
331
|
|
|
$
|
0
|
|
|
$
|
0
|
|
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Loss |
||||||||||||||
SLM Corp.
|
|
BBB
|
|
|
|
$
|
376
|
|
|
|
|
$
|
278
|
|
|
|
|
$
|
(98
|
)
|
|
UPM-Kymmene
|
|
BB
|
|
|
|
358
|
|
|
|
|
263
|
|
|
|
|
(95
|
)
|
|
|||
Bank of Ireland
|
|
BB
|
|
|
|
231
|
|
|
|
|
153
|
|
|
|
|
(78
|
)
|
|
|||
Investcorp Capital Limited
|
|
BB
|
|
|
|
477
|
|
|
|
|
418
|
|
|
|
|
(59
|
)
|
|
|||
Svenska Handelsbanken AB
(1)
|
|
BBB
|
|
|
|
205
|
|
|
|
|
160
|
|
|
|
|
(45
|
)
|
|
|||
Bank of America Corp. (includes Merrill Lynch)
|
|
A
|
|
|
|
520
|
|
|
|
|
477
|
|
|
|
|
(43
|
)
|
|
|||
Republic of Poland
|
|
A
|
|
|
|
238
|
|
|
|
|
196
|
|
|
|
|
(42
|
)
|
|
|||
Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU
Curacao Holdings N.V.)
|
|
A
|
|
|
|
520
|
|
|
|
|
484
|
|
|
|
|
(36
|
)
|
|
|||
DEPFA Bank PLC
|
|
BBB
|
|
|
|
261
|
|
|
|
|
227
|
|
|
|
|
(34
|
)
|
|
|||
Atlantia SPA
|
|
BBB
|
|
|
|
231
|
|
|
|
|
198
|
|
|
|
|
(33
|
)
|
|
(In millions)
|
2012
|
|
2011
|
|
% Change
|
|
|||||
Aflac Japan
|
$
|
6,801
|
|
|
$
|
7,102
|
|
|
(4.2
|
)%
|
(1)
|
Aflac U.S.
|
2,857
|
|
|
2,687
|
|
|
6.3
|
|
|
||
Total
|
$
|
9,658
|
|
|
$
|
9,789
|
|
|
(1.3
|
)%
|
|
(In millions)
|
2012
|
|
2011
|
|
% Change
|
|
|||||
Aflac Japan
|
$
|
89,338
|
|
|
$
|
86,522
|
|
|
3.3
|
%
|
(1)
|
Aflac U.S.
|
8,608
|
|
|
8,069
|
|
|
6.7
|
|
|
||
Other
|
3
|
|
|
2
|
|
|
50.0
|
|
|
||
Total
|
$
|
97,949
|
|
|
$
|
94,593
|
|
|
3.5
|
%
|
|
(In millions)
|
2012
|
|
2011
|
||||
Aflac Japan net assets
|
$
|
13,580
|
|
|
$
|
10,596
|
|
Aflac Japan dollar-denominated net assets
|
(8,317
|
)
|
|
(7,341
|
)
|
||
Aflac Japan yen-denominated net assets
|
5,263
|
|
|
3,255
|
|
||
Parent Company yen-denominated net liabilities
|
(850
|
)
|
|
(1,258
|
)
|
||
Consolidated yen-denominated net assets (liabilities) subject to foreign currency
translation fluctuations |
$
|
4,413
|
|
|
$
|
1,997
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Dividends declared or paid by Aflac
|
$
|
0
|
|
|
$
|
282
|
|
|
$
|
370
|
|
|
Management fees paid by Aflac
|
249
|
|
|
230
|
|
|
205
|
|
|
(In millions)
|
Total
Liability (1) |
|
Total
Payments |
|
Less
Than One Year |
|
One to
Three Years
|
|
Four to
Five Years |
|
After
Five Years |
||||||||||||
Future policy benefits liability
(Note 7)
(2)
|
$
|
76,463
|
|
|
$
|
319,545
|
|
|
$
|
10,250
|
|
|
$
|
20,049
|
|
|
$
|
19,644
|
|
|
$
|
269,602
|
|
Unpaid policy claims liability
(Note 7)
(3)
|
4,034
|
|
|
4,034
|
|
|
3,016
|
|
|
620
|
|
|
231
|
|
|
167
|
|
||||||
Long-term debt – principal
(Note 8)
|
4,343
|
|
|
4,343
|
|
|
0
|
|
|
869
|
|
|
924
|
|
|
2,550
|
|
||||||
Long-term debt – interest
(Note 8)
|
35
|
|
|
3,370
|
|
|
215
|
|
|
415
|
|
|
364
|
|
|
2,376
|
|
||||||
Cash collateral on loaned securities
(Note 3)
|
6,277
|
|
|
6,277
|
|
|
6,277
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
Policyholder protection corporation
(Note 2)
|
23
|
|
|
23
|
|
|
23
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
Operating service agreements
(Note 14)
|
N/A
|
|
(4)
|
431
|
|
|
130
|
|
|
252
|
|
|
49
|
|
|
0
|
|
||||||
Operating lease obligations
(Note 14)
|
N/A
|
|
(4)
|
131
|
|
|
61
|
|
|
39
|
|
|
27
|
|
|
4
|
|
||||||
Capitalized lease obligations
(Note 8)
|
9
|
|
|
9
|
|
|
3
|
|
|
4
|
|
|
2
|
|
|
0
|
|
||||||
Total contractual obligations
|
$
|
91,184
|
|
|
$
|
338,163
|
|
|
$
|
19,975
|
|
|
$
|
22,248
|
|
|
$
|
21,241
|
|
|
$
|
274,699
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Operating activities
|
$
|
14,952
|
|
|
$
|
10,842
|
|
|
$
|
6,989
|
|
|
Investing activities
|
(16,952
|
)
|
|
(10,829
|
)
|
|
(7,432
|
)
|
|
|||
Financing activities
|
1,945
|
|
|
64
|
|
|
161
|
|
|
|||
Exchange effect on cash and cash equivalents
|
(153
|
)
|
|
51
|
|
|
80
|
|
|
|||
Net change in cash and cash equivalents
|
$
|
(208
|
)
|
|
$
|
128
|
|
|
$
|
(202
|
)
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Aflac Japan
|
$
|
13,949
|
|
|
$
|
10,246
|
|
|
$
|
6,327
|
|
|
Aflac U.S. and other operations
|
1,003
|
|
|
596
|
|
|
662
|
|
|
|||
Total
|
$
|
14,952
|
|
|
$
|
10,842
|
|
|
$
|
6,989
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Aflac Japan
|
$
|
(15,823
|
)
|
|
$
|
(10,246
|
)
|
|
$
|
(6,221
|
)
|
|
Aflac U.S. and other operations
|
(1,129
|
)
|
|
(583
|
)
|
|
(1,211
|
)
|
|
|||
Total
|
$
|
(16,952
|
)
|
|
$
|
(10,829
|
)
|
|
$
|
(7,432
|
)
|
|
(In millions of dollars and thousands of shares)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Treasury stock purchases
|
$
|
118
|
|
|
$
|
308
|
|
|
$
|
121
|
|
|
Number of shares purchased:
|
|
|
|
|
|
|
||||||
Open market
|
1,948
|
|
|
6,000
|
|
|
2,000
|
|
|
|||
Other
|
360
|
|
|
182
|
|
|
192
|
|
|
|||
Total shares purchased
|
2,308
|
|
|
6,182
|
|
|
2,192
|
|
|
(In millions of dollars and thousands of shares)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Stock issued from treasury:
|
|
|
|
|
|
|
||||||
Cash financing
|
$
|
32
|
|
|
$
|
26
|
|
|
$
|
45
|
|
|
Noncash financing
|
63
|
|
|
57
|
|
|
2
|
|
|
|||
Total stock issued from treasury
|
$
|
95
|
|
|
$
|
83
|
|
|
$
|
47
|
|
|
Number of shares issued
|
2,184
|
|
|
1,852
|
|
|
1,834
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Dividends paid in cash
|
$
|
603
|
|
|
$
|
552
|
|
|
$
|
535
|
|
|
Dividends through issuance of treasury shares
|
24
|
|
|
23
|
|
|
0
|
|
|
|||
Total dividends to shareholders
|
$
|
627
|
|
|
$
|
575
|
|
|
$
|
535
|
|
|
(In millions of dollars and billions of yen)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Aflac Japan management fees paid to Parent Company
|
$
|
30
|
|
|
$
|
28
|
|
|
$
|
30
|
|
|
Expenses allocated to Aflac Japan
|
58
|
|
|
43
|
|
|
37
|
|
|
|||
Aflac Japan profit remittances to Aflac U.S. in dollars
|
422
|
|
(1)
|
143
|
|
|
317
|
|
|
|||
Aflac Japan profit remittances to Aflac U.S. in yen
|
33.1
|
|
(1)
|
11.0
|
|
|
28.7
|
|
|
(In millions, except for share and per-share amounts)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Premiums, principally supplemental health insurance
|
|
$
|
22,148
|
|
|
|
|
$
|
20,362
|
|
|
|
|
$
|
18,073
|
|
|
Net investment income
|
|
3,473
|
|
|
|
|
3,280
|
|
|
|
|
3,007
|
|
|
|||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other-than-temporary impairment losses realized
|
|
(977
|
)
|
|
|
|
(1,901
|
)
|
|
|
|
(459
|
)
|
|
|||
Sales and redemptions
|
|
474
|
|
|
|
|
594
|
|
|
|
|
38
|
|
|
|||
Derivative and other gains (losses)
|
|
154
|
|
|
|
|
(245
|
)
|
|
|
|
(1
|
)
|
|
|||
Total realized investment gains (losses)
|
|
(349
|
)
|
|
|
|
(1,552
|
)
|
|
|
|
(422
|
)
|
|
|||
Other income
|
|
92
|
|
|
|
|
81
|
|
|
|
|
74
|
|
|
|||
Total revenues
|
|
25,364
|
|
|
|
|
22,171
|
|
|
|
|
20,732
|
|
|
|||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Benefits and claims
|
|
15,330
|
|
|
|
|
13,749
|
|
|
|
|
12,106
|
|
|
|||
Acquisition and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of deferred policy acquisition costs
|
|
1,117
|
|
|
|
|
1,033
|
|
|
|
|
958
|
|
|
|||
Insurance commissions
|
|
1,744
|
|
|
|
|
1,725
|
|
|
|
|
1,637
|
|
|
|||
Insurance expenses
|
|
2,415
|
|
|
|
|
2,336
|
|
|
|
|
2,159
|
|
|
|||
Interest expense
|
|
261
|
|
|
|
|
196
|
|
|
|
|
149
|
|
|
|||
Other operating expenses
|
|
195
|
|
|
|
|
182
|
|
|
|
|
162
|
|
|
|||
Total acquisition and operating expenses
|
|
5,732
|
|
|
|
|
5,472
|
|
|
|
|
5,065
|
|
|
|||
Total benefits and expenses
|
|
21,062
|
|
|
|
|
19,221
|
|
|
|
|
17,171
|
|
|
|||
Earnings before income taxes
|
|
4,302
|
|
|
|
|
2,950
|
|
|
|
|
3,561
|
|
|
|||
Income tax expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
816
|
|
|
|
|
891
|
|
|
|
|
862
|
|
|
|||
Deferred
|
|
620
|
|
|
|
|
122
|
|
|
|
|
371
|
|
|
|||
Total income taxes
|
|
1,436
|
|
|
|
|
1,013
|
|
|
|
|
1,233
|
|
|
|||
Net earnings
|
|
$
|
2,866
|
|
|
|
|
$
|
1,937
|
|
|
|
|
$
|
2,328
|
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
6.14
|
|
|
|
|
$
|
4.16
|
|
|
|
|
$
|
4.96
|
|
|
Diluted
|
|
6.11
|
|
|
|
|
4.12
|
|
|
|
|
4.92
|
|
|
|||
Weighted-average outstanding common shares used in
computing earnings per share (In thousands): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
466,868
|
|
|
|
|
466,519
|
|
|
|
|
469,038
|
|
|
|||
Diluted
|
|
469,287
|
|
|
|
|
469,370
|
|
|
|
|
473,085
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Net earnings
|
|
$
|
2,866
|
|
|
|
|
$
|
1,937
|
|
|
|
|
$
|
2,328
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses) during
period |
|
(287
|
)
|
|
|
|
(18
|
)
|
|
|
|
90
|
|
|
|||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on investment securities during
period |
|
1,660
|
|
|
|
|
566
|
|
|
|
|
370
|
|
|
|||
Reclassification adjustment for realized (gains) losses on
investment securities included in net earnings |
|
497
|
|
|
|
|
1,154
|
|
|
|
|
421
|
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
(22
|
)
|
|
|
|
(33
|
)
|
|
|
|
51
|
|
|
|||
Pension liability adjustment during period
|
|
(20
|
)
|
|
|
|
(65
|
)
|
|
|
|
(32
|
)
|
|
|||
Total other comprehensive income (loss) before income taxes
|
|
1,828
|
|
|
|
|
1,604
|
|
|
|
|
900
|
|
|
|||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
1,078
|
|
|
|
|
392
|
|
|
|
|
(32
|
)
|
|
|||
Other comprehensive income (loss), net of income taxes
|
|
750
|
|
|
|
|
1,212
|
|
|
|
|
932
|
|
|
|||
Total comprehensive income (loss)
|
|
$
|
3,616
|
|
|
|
|
$
|
3,149
|
|
|
|
|
$
|
3,260
|
|
|
(In millions)
|
2012
|
|
2011
|
|
||||
Assets:
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
||||
Securities available for sale, at fair value:
|
|
|
|
|
||||
Fixed maturities (amortized cost $48,355 in 2012 and $40,534 in 2011)
|
$
|
51,466
|
|
|
$
|
42,222
|
|
|
Fixed maturities - consolidated variable interest entities (amortized
cost $5,058 in 2012 and $4,822 in 2011) |
5,787
|
|
|
5,350
|
|
|
||
Perpetual securities (amortized cost $3,654 in 2012 and $5,365 in 2011)
|
3,728
|
|
|
5,149
|
|
|
||
Perpetual securities - consolidated variable interest entities
(amortized cost $559 in 2012 and $1,532 in 2011) |
574
|
|
|
1,290
|
|
|
||
Equity securities (cost $20 in 2012 and $22 in 2011)
|
23
|
|
|
25
|
|
|
||
Securities held to maturity, at amortized cost:
|
|
|
|
|
||||
Fixed maturities (fair value $54,554 in 2012 and $45,817 in 2011)
|
54,137
|
|
|
46,366
|
|
|
||
Fixed maturities - consolidated variable interest entities (fair value
$287 in 2012 and $566 in 2011) |
289
|
|
|
643
|
|
|
||
Other investments
|
174
|
|
|
168
|
|
|
||
Cash and cash equivalents
|
2,041
|
|
|
2,249
|
|
|
||
Total investments and cash
|
118,219
|
|
|
103,462
|
|
|
||
Receivables
|
976
|
|
|
680
|
|
|
||
Accrued investment income
|
842
|
|
|
802
|
|
|
||
Deferred policy acquisition costs
|
9,658
|
|
|
9,789
|
|
|
||
Property and equipment, at cost less accumulated depreciation
|
564
|
|
|
617
|
|
|
||
Other
|
835
|
|
(1)
|
887
|
|
(1)
|
||
Total assets
|
$
|
131,094
|
|
|
$
|
116,237
|
|
|
(In millions, except for share and per-share amounts)
|
2012
|
|
2011
|
|
||||
Liabilities and shareholders’ equity:
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Policy liabilities:
|
|
|
|
|
||||
Future policy benefits
|
$
|
76,463
|
|
|
$
|
79,278
|
|
|
Unpaid policy claims
|
4,034
|
|
|
3,981
|
|
|
||
Unearned premiums
|
2,158
|
|
|
1,704
|
|
|
||
Other policyholders’ funds
|
15,294
|
|
|
9,630
|
|
|
||
Total policy liabilities
|
97,949
|
|
|
94,593
|
|
|
||
Income taxes
|
3,858
|
|
|
2,308
|
|
|
||
Payables for return of cash collateral on loaned securities
|
6,277
|
|
|
838
|
|
|
||
Notes payable
|
4,352
|
|
|
3,285
|
|
|
||
Other
|
2,680
|
|
(2)
|
2,267
|
|
(2)
|
||
Commitments and contingent liabilities (Note 14)
|
|
|
|
|
||||
Total liabilities
|
115,116
|
|
|
103,291
|
|
|
||
Shareholders’ equity:
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000
shares in 2012 and 2011; issued 665,239 shares in 2012 and 663,639 shares in 2011 |
67
|
|
|
66
|
|
|
||
Additional paid-in capital
|
1,505
|
|
|
1,408
|
|
|
||
Retained earnings
|
17,387
|
|
|
15,148
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
||||
Unrealized foreign currency translation gains
|
333
|
|
|
984
|
|
|
||
Unrealized gains (losses) on investment securities
|
2,570
|
|
|
1,143
|
|
|
||
Unrealized gains (losses) on derivatives
|
(5
|
)
|
|
9
|
|
|
||
Pension liability adjustment
|
(183
|
)
|
|
(171
|
)
|
|
||
Treasury stock, at average cost
|
(5,696
|
)
|
|
(5,641
|
)
|
|
||
Total shareholders’ equity
|
15,978
|
|
|
12,946
|
|
|
||
Total liabilities and shareholders’ equity
|
$
|
131,094
|
|
|
$
|
116,237
|
|
|
(In millions, except for per-share amounts)
|
2012
|
|
2011
|
|
2010
|
||||||
Common stock:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
$
|
66
|
|
|
$
|
66
|
|
|
$
|
66
|
|
Exercise of stock options
|
1
|
|
|
0
|
|
|
0
|
|
|||
Balance, end of period
|
67
|
|
|
66
|
|
|
66
|
|
|||
Additional paid-in capital:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
1,408
|
|
|
1,320
|
|
|
1,228
|
|
|||
Exercise of stock options
|
31
|
|
|
21
|
|
|
59
|
|
|||
Share-based compensation
|
34
|
|
|
37
|
|
|
37
|
|
|||
Gain (loss) on treasury stock reissued
|
32
|
|
|
30
|
|
|
(4
|
)
|
|||
Balance, end of period
|
1,505
|
|
|
1,408
|
|
|
1,320
|
|
|||
Retained earnings:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
15,148
|
|
|
13,787
|
|
|
12,019
|
|
|||
Cumulative effect of change in accounting principle, net of income taxes
|
0
|
|
|
0
|
|
|
(25
|
)
|
|||
Net earnings
|
2,866
|
|
|
1,937
|
|
|
2,328
|
|
|||
Dividends to shareholders ($1.34 per share in 2012, $1.23 per share
in 2011, and $1.14 per share in 2010) |
(627
|
)
|
|
(576
|
)
|
|
(535
|
)
|
|||
Balance, end of period
|
17,387
|
|
|
15,148
|
|
|
13,787
|
|
|||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
||||||
Balance, beginning of period
|
1,965
|
|
|
753
|
|
|
(38
|
)
|
|||
Unrealized foreign currency translation gains (losses) during
period, net of income taxes: |
|
|
|
|
|
||||||
Cumulative effect of change in accounting principle, net of
income taxes |
0
|
|
|
0
|
|
|
(320
|
)
|
|||
Change in unrealized foreign currency translation gains (losses)
during period, net of income taxes |
(651
|
)
|
|
167
|
|
|
428
|
|
|||
Unrealized gains (losses) on investment securities during period,
net of income taxes and reclassification adjustments: |
|
|
|
|
|
||||||
Cumulative effect of change in accounting principle, net of
income taxes |
0
|
|
|
0
|
|
|
180
|
|
|||
Change in unrealized gains (losses) on investment securities
not other-than-temporarily impaired, net of income taxes |
1,427
|
|
|
1,107
|
|
|
478
|
|
|||
Change in unrealized gains (losses) on other-than-temporarily
impaired investment securities, net of income taxes |
0
|
|
|
3
|
|
|
13
|
|
|||
Unrealized gains (losses) on derivatives during period, net of
income taxes |
(14
|
)
|
|
(22
|
)
|
|
33
|
|
|||
Pension liability adjustment during period, net of income taxes
|
(12
|
)
|
|
(43
|
)
|
|
(21
|
)
|
|||
Balance, end of period
|
2,715
|
|
|
1,965
|
|
|
753
|
|
|||
Treasury stock:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
(5,641
|
)
|
|
(5,386
|
)
|
|
(5,316
|
)
|
|||
Purchases of treasury stock
|
(118
|
)
|
|
(308
|
)
|
|
(121
|
)
|
|||
Cost of shares issued
|
63
|
|
|
53
|
|
|
51
|
|
|||
Balance, end of period
|
(5,696
|
)
|
|
(5,641
|
)
|
|
(5,386
|
)
|
|||
Total shareholders’ equity
|
$
|
15,978
|
|
|
$
|
12,946
|
|
|
$
|
10,540
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings
|
|
$
|
2,866
|
|
|
|
|
$
|
1,937
|
|
|
|
|
$
|
2,328
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in receivables and advance premiums
|
|
5,669
|
|
|
|
|
2,940
|
|
|
|
|
1,078
|
|
|
|||
Increase in deferred policy acquisition costs
|
|
(643
|
)
|
|
|
|
(505
|
)
|
|
|
|
(327
|
)
|
|
|||
Increase in policy liabilities
|
|
6,033
|
|
|
|
|
4,685
|
|
|
|
|
3,448
|
|
|
|||
Change in income tax liabilities
|
|
712
|
|
|
|
|
266
|
|
|
|
|
137
|
|
|
|||
Realized investment (gains) losses
|
|
349
|
|
|
|
|
1,552
|
|
|
|
|
422
|
|
|
|||
Other, net
|
|
(34
|
)
|
|
|
|
(33
|
)
|
|
|
|
(97
|
)
|
|
|||
Net cash provided (used) by operating activities
|
|
14,952
|
|
|
|
|
10,842
|
|
|
|
|
6,989
|
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Proceeds from investments sold or matured:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities sold
|
|
7,385
|
|
|
|
|
14,385
|
|
|
|
|
2,724
|
|
|
|||
Fixed maturities matured or called
|
|
1,959
|
|
|
|
|
170
|
|
|
|
|
1,243
|
|
|
|||
Perpetual securities sold
|
|
1,599
|
|
|
|
|
690
|
|
|
|
|
700
|
|
|
|||
Perpetual securities matured or called
|
|
376
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Equity securities sold
|
|
0
|
|
|
|
|
0
|
|
|
|
|
328
|
|
|
|||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities matured or called
|
|
1,859
|
|
|
|
|
728
|
|
|
|
|
196
|
|
|
|||
Costs of investments acquired:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities acquired
|
|
(19,533
|
)
|
|
|
|
(8,392
|
)
|
|
|
|
(9,943
|
)
|
|
|||
Equity securities acquired
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(330
|
)
|
|
|||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities acquired
|
|
(16,550
|
)
|
|
|
|
(18,995
|
)
|
|
|
|
(2,010
|
)
|
|
|||
Cash received as collateral on loaned securities, net
|
|
5,439
|
|
|
|
|
647
|
|
|
|
|
(312
|
)
|
|
|||
Other, net
|
|
514
|
|
|
|
|
(62
|
)
|
|
|
|
(28
|
)
|
|
|||
Net cash provided (used) by investing activities
|
|
(16,952
|
)
|
|
|
|
(10,829
|
)
|
|
|
|
(7,432
|
)
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of treasury stock
|
|
(118
|
)
|
|
|
|
(308
|
)
|
|
|
|
(121
|
)
|
|
|||
Proceeds from borrowings
|
|
1,506
|
|
|
|
|
620
|
|
|
|
|
748
|
|
|
|||
Principal payments under debt obligations
|
|
(341
|
)
|
|
|
|
(462
|
)
|
|
|
|
(451
|
)
|
|
|||
Dividends paid to shareholders
|
|
(603
|
)
|
|
|
|
(552
|
)
|
|
|
|
(535
|
)
|
|
|||
Change in investment-type contracts, net
|
|
1,457
|
|
|
|
|
733
|
|
|
|
|
419
|
|
|
|||
Treasury stock reissued
|
|
32
|
|
|
|
|
26
|
|
|
|
|
45
|
|
|
|||
Other, net
|
|
12
|
|
|
|
|
7
|
|
|
|
|
56
|
|
|
|||
Net cash provided (used) by financing activities
|
|
1,945
|
|
|
|
|
64
|
|
|
|
|
161
|
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
(153
|
)
|
|
|
|
51
|
|
|
|
|
80
|
|
|
|||
Net change in cash and cash equivalents
|
|
(208
|
)
|
|
|
|
128
|
|
|
|
|
(202
|
)
|
|
|||
Cash and cash equivalents, beginning of period
|
|
2,249
|
|
|
|
|
2,121
|
|
|
|
|
2,323
|
|
|
|||
Cash and cash equivalents, end of period
|
|
$
|
2,041
|
|
|
|
|
$
|
2,249
|
|
|
|
|
$
|
2,121
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income taxes paid
|
|
$
|
788
|
|
|
|
|
$
|
828
|
|
|
|
|
$
|
1,017
|
|
|
Interest paid
|
|
178
|
|
|
|
|
164
|
|
|
|
|
125
|
|
|
|||
Noncash interest
|
|
83
|
|
(1)
|
|
|
32
|
|
(1)
|
|
|
24
|
|
|
|||
Impairment losses included in realized investment losses
|
|
977
|
|
|
|
|
1,901
|
|
|
|
|
459
|
|
|
|||
Noncash financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capitalized lease obligations
|
|
4
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|||
Treasury stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Associate stock bonus
|
|
35
|
|
|
|
|
32
|
|
|
|
|
0
|
|
|
|||
Shareholder dividend reinvestment
|
|
24
|
|
|
|
|
23
|
|
|
|
|
0
|
|
|
|||
Share-based compensation grants
|
|
4
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
2.
|
BUSINESS SEGMENT AND FOREIGN INFORMATION
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earned premiums:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cancer
|
|
$
|
7,537
|
|
|
|
|
$
|
7,541
|
|
|
|
|
$
|
6,852
|
|
|
Medical and other health
|
|
5,244
|
|
|
|
|
5,158
|
|
|
|
|
4,574
|
|
|
|||
Life insurance
|
|
4,370
|
|
|
|
|
2,920
|
|
|
|
|
2,061
|
|
|
|||
Net investment income
|
|
2,845
|
|
|
|
|
2,688
|
|
|
|
|
2,453
|
|
|
|||
Other income
|
|
57
|
|
|
|
|
46
|
|
|
|
|
37
|
|
|
|||
Total Aflac Japan
|
|
20,053
|
|
|
|
|
18,353
|
|
|
|
|
15,977
|
|
|
|||
Aflac U.S.:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earned premiums:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accident/disability
|
|
2,213
|
|
|
|
|
2,194
|
|
|
|
|
2,104
|
|
|
|||
Cancer
|
|
1,282
|
|
|
|
|
1,258
|
|
|
|
|
1,239
|
|
|
|||
Other health
|
|
1,259
|
|
|
|
|
1,061
|
|
|
|
|
1,026
|
|
|
|||
Life insurance
|
|
242
|
|
|
|
|
230
|
|
|
|
|
217
|
|
|
|||
Net investment income
|
|
613
|
|
|
|
|
588
|
|
|
|
|
549
|
|
|
|||
Other income
|
|
19
|
|
|
|
|
10
|
|
|
|
|
11
|
|
|
|||
Total Aflac U.S.
|
|
5,628
|
|
|
|
|
5,341
|
|
|
|
|
5,146
|
|
|
|||
Other business segments
|
|
46
|
|
|
|
|
54
|
|
|
|
|
51
|
|
|
|||
Total business segment revenues
|
|
25,727
|
|
|
|
|
23,748
|
|
|
|
|
21,174
|
|
|
|||
Realized investment gains (losses)
|
|
(349
|
)
|
|
|
|
(1,552
|
)
|
|
|
|
(422
|
)
|
|
|||
Corporate
|
|
262
|
|
|
|
|
241
|
|
|
|
|
217
|
|
|
|||
Intercompany eliminations
|
|
(276
|
)
|
|
|
|
(266
|
)
|
|
|
|
(237
|
)
|
|
|||
Total revenues
|
|
$
|
25,364
|
|
|
|
|
$
|
22,171
|
|
|
|
|
$
|
20,732
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Pretax earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
3,904
|
|
|
|
|
$
|
3,829
|
|
|
|
|
$
|
3,260
|
|
|
Aflac U.S.
|
|
997
|
|
|
|
|
904
|
|
|
|
|
922
|
|
|
|||
Other business segments
|
|
(3
|
)
|
|
|
|
1
|
|
|
|
|
(2
|
)
|
|
|||
Total business segment pretax operating earnings
|
|
4,898
|
|
|
|
|
4,734
|
|
|
|
|
4,180
|
|
|
|||
Interest expense, noninsurance operations
|
|
(184
|
)
|
|
|
|
(168
|
)
|
|
|
|
(140
|
)
|
|
|||
Corporate and eliminations
|
|
(56
|
)
|
|
|
|
(64
|
)
|
|
|
|
(57
|
)
|
|
|||
Pretax operating earnings
|
|
4,658
|
|
|
|
|
4,502
|
|
|
|
|
3,983
|
|
|
|||
Realized investment gains (losses)
|
|
(349
|
)
|
|
|
|
(1,552
|
)
|
|
|
|
(422
|
)
|
|
|||
Other non-operating income (loss)
|
|
(7
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Total earnings before income taxes
|
|
$
|
4,302
|
|
|
|
|
$
|
2,950
|
|
|
|
|
$
|
3,561
|
|
|
Income taxes applicable to pretax operating earnings
|
|
$
|
1,561
|
|
|
|
|
$
|
1,556
|
|
|
|
|
$
|
1,381
|
|
|
Effect of foreign currency translation on operating earnings
|
|
8
|
|
|
|
|
169
|
|
|
|
|
90
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
113,678
|
|
|
|
|
$
|
101,692
|
|
|
|
|
$
|
86,487
|
|
|
Aflac U.S.
|
|
16,122
|
|
|
|
|
13,942
|
|
|
|
|
12,874
|
|
|
|||
Other business segments
|
|
154
|
|
|
|
|
160
|
|
|
|
|
155
|
|
|
|||
Total business segment assets
|
|
129,954
|
|
|
|
|
115,794
|
|
|
|
|
99,516
|
|
|
|||
Corporate
|
|
20,318
|
|
|
|
|
16,182
|
|
|
|
|
13,538
|
|
|
|||
Intercompany eliminations
|
|
(19,178
|
)
|
|
|
|
(15,739
|
)
|
|
|
|
(12,811
|
)
|
|
|||
Total assets
|
|
$
|
131,094
|
|
|
|
|
$
|
116,237
|
|
|
|
|
$
|
100,243
|
|
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Statements of Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average yen/dollar exchange rate
|
|
79.81
|
|
|
|
|
79.75
|
|
|
|
|
87.73
|
|
|
|||
Yen percent strengthening (weakening)
|
|
(.1
|
)%
|
|
|
|
10.0
|
%
|
|
|
|
6.6
|
%
|
|
|||
Exchange effect on net earnings (in millions)
|
|
|
$38
|
|
|
|
|
|
$160
|
|
|
|
|
|
$189
|
|
|
|
2012
|
|
2011
|
||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
||||
Yen/dollar exchange rate at December 31
|
|
86.58
|
|
|
|
|
77.74
|
|
|
||
Yen percent strengthening (weakening)
|
|
(10.2
|
)%
|
|
|
|
4.8
|
%
|
|
||
Exchange effect on total assets (in millions)
|
|
$
|
(10,861
|
)
|
|
|
|
$
|
4,208
|
|
|
Exchange effect on total liabilities (in millions)
|
|
(11,441
|
)
|
|
|
|
4,210
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Management fees
|
|
$
|
30
|
|
|
|
|
$
|
28
|
|
|
|
|
$
|
30
|
|
|
Allocated expenses
|
|
58
|
|
|
|
|
43
|
|
|
|
|
37
|
|
|
|||
Profit repatriation
|
|
422
|
|
|
|
|
143
|
|
|
|
|
317
|
|
|
|||
Total transfers from Aflac Japan
|
|
$
|
510
|
|
|
|
|
$
|
214
|
|
|
|
|
$
|
384
|
|
|
(In millions)
|
2012
|
|
2011
|
||||||||
Property and equipment:
|
|
|
|
|
|
|
|
||||
Land
|
|
$
|
161
|
|
|
|
|
$
|
176
|
|
|
Buildings
|
|
535
|
|
|
|
|
575
|
|
|
||
Equipment
|
|
326
|
|
|
|
|
312
|
|
|
||
Total property and equipment
|
|
1,022
|
|
|
|
|
1,063
|
|
|
||
Less accumulated depreciation
|
|
458
|
|
|
|
|
446
|
|
|
||
Net property and equipment
|
|
$
|
564
|
|
|
|
|
$
|
617
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Fixed-maturity securities
|
|
$
|
3,248
|
|
|
|
|
$
|
3,026
|
|
|
|
|
$
|
2,695
|
|
|
Perpetual securities
|
|
253
|
|
|
|
|
274
|
|
|
|
|
328
|
|
|
|||
Equity securities and other
|
|
17
|
|
|
|
|
5
|
|
|
|
|
4
|
|
|
|||
Short-term investments and cash equivalents
|
|
2
|
|
|
|
|
4
|
|
|
|
|
6
|
|
|
|||
Gross investment income
|
|
3,520
|
|
|
|
|
3,309
|
|
|
|
|
3,033
|
|
|
|||
Less investment expenses
|
|
47
|
|
|
|
|
29
|
|
|
|
|
26
|
|
|
|||
Net investment income
|
|
$
|
3,473
|
|
|
|
|
$
|
3,280
|
|
|
|
|
$
|
3,007
|
|
|
|
2012
|
||||||||||||||||||||||
(In millions)
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||||||||||
Securities available for sale, carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Japan government and agencies
|
|
$
|
12,612
|
|
|
|
|
$
|
349
|
|
|
|
|
$
|
81
|
|
|
|
|
$
|
12,880
|
|
|
Mortgage- and asset-backed securities
|
|
746
|
|
|
|
|
40
|
|
|
|
|
1
|
|
|
|
|
785
|
|
|
||||
Public utilities
|
|
3,608
|
|
|
|
|
116
|
|
|
|
|
72
|
|
|
|
|
3,652
|
|
|
||||
Sovereign and supranational
|
|
1,404
|
|
|
|
|
71
|
|
|
|
|
0
|
|
|
|
|
1,475
|
|
|
||||
Banks/financial institutions
|
|
3,455
|
|
|
|
|
233
|
|
|
|
|
180
|
|
|
|
|
3,508
|
|
|
||||
Other corporate
|
|
5,656
|
|
|
|
|
241
|
|
|
|
|
153
|
|
|
|
|
5,744
|
|
|
||||
Total yen-denominated
|
|
27,481
|
|
|
|
|
1,050
|
|
|
|
|
487
|
|
|
|
|
28,044
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
93
|
|
|
|
|
24
|
|
|
|
|
0
|
|
|
|
|
117
|
|
|
||||
Municipalities
|
|
1,045
|
|
|
|
|
156
|
|
|
|
|
6
|
|
|
|
|
1,195
|
|
|
||||
Mortgage- and asset-backed securities
|
|
188
|
|
|
|
|
58
|
|
|
|
|
0
|
|
|
|
|
246
|
|
|
||||
Public utilities
|
|
4,204
|
|
|
|
|
658
|
|
|
|
|
17
|
|
|
|
|
4,845
|
|
|
||||
Sovereign and supranational
|
|
476
|
|
|
|
|
123
|
|
|
|
|
2
|
|
|
|
|
597
|
|
|
||||
Banks/financial institutions
|
|
3,626
|
|
|
|
|
506
|
|
|
|
|
6
|
|
|
|
|
4,126
|
|
|
||||
Other corporate
|
|
16,300
|
|
|
|
|
1,878
|
|
|
|
|
95
|
|
|
|
|
18,083
|
|
|
||||
Total dollar-denominated
|
|
25,932
|
|
|
|
|
3,403
|
|
|
|
|
126
|
|
|
|
|
29,209
|
|
|
||||
Total fixed maturities
|
|
53,413
|
|
|
|
|
4,453
|
|
|
|
|
613
|
|
|
|
|
57,253
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
3,635
|
|
|
|
|
193
|
|
|
|
|
161
|
|
|
|
|
3,667
|
|
|
||||
Other corporate
|
|
309
|
|
|
|
|
43
|
|
|
|
|
0
|
|
|
|
|
352
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
269
|
|
|
|
|
23
|
|
|
|
|
9
|
|
|
|
|
283
|
|
|
||||
Total perpetual securities
|
|
4,213
|
|
|
|
|
259
|
|
|
|
|
170
|
|
|
|
|
4,302
|
|
|
||||
Equity securities
|
|
20
|
|
|
|
|
4
|
|
|
|
|
1
|
|
|
|
|
23
|
|
|
||||
Total securities available for sale
|
|
$
|
57,646
|
|
|
|
|
$
|
4,716
|
|
|
|
|
$
|
784
|
|
|
|
|
$
|
61,578
|
|
|
|
2012
|
||||||||||||||||||||||
(In millions)
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||||||||||
Securities held to maturity, carried at amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Japan government and agencies
|
|
$
|
32,043
|
|
|
|
|
$
|
356
|
|
|
|
|
$
|
67
|
|
|
|
|
$
|
32,332
|
|
|
Municipalities
|
|
492
|
|
|
|
|
30
|
|
|
|
|
2
|
|
|
|
|
520
|
|
|
||||
Mortgage- and asset-backed securities
|
|
90
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|
|
94
|
|
|
||||
Public utilities
|
|
4,924
|
|
|
|
|
233
|
|
|
|
|
106
|
|
|
|
|
5,051
|
|
|
||||
Sovereign and supranational
|
|
3,209
|
|
|
|
|
192
|
|
|
|
|
84
|
|
|
|
|
3,317
|
|
|
||||
Banks/financial institutions
|
|
9,211
|
|
|
|
|
211
|
|
|
|
|
431
|
|
|
|
|
8,991
|
|
|
||||
Other corporate
|
|
4,457
|
|
|
|
|
187
|
|
|
|
|
108
|
|
|
|
|
4,536
|
|
|
||||
Total yen-denominated
|
|
54,426
|
|
|
|
|
1,213
|
|
|
|
|
798
|
|
|
|
|
54,841
|
|
|
||||
Total securities held to maturity
|
|
$
|
54,426
|
|
|
|
|
$
|
1,213
|
|
|
|
|
$
|
798
|
|
|
|
|
$
|
54,841
|
|
|
|
2011
|
||||||||||||||||||||||
(In millions)
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||||||||||
Securities available for sale, carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Japan government and agencies
|
|
$
|
11,108
|
|
|
|
|
$
|
670
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
11,778
|
|
|
Mortgage- and asset-backed securities
|
|
912
|
|
|
|
|
43
|
|
|
|
|
1
|
|
|
|
|
954
|
|
|
||||
Public utilities
|
|
3,850
|
|
|
|
|
59
|
|
|
|
|
226
|
|
|
|
|
3,683
|
|
|
||||
Sovereign and supranational
|
|
1,704
|
|
|
|
|
87
|
|
|
|
|
16
|
|
|
|
|
1,775
|
|
|
||||
Banks/financial institutions
|
|
4,312
|
|
|
|
|
74
|
|
|
|
|
359
|
|
|
|
|
4,027
|
|
|
||||
Other corporate
|
|
6,213
|
|
|
|
|
120
|
|
|
|
|
459
|
|
|
|
|
5,874
|
|
|
||||
Total yen-denominated
|
|
28,099
|
|
|
|
|
1,053
|
|
|
|
|
1,061
|
|
|
|
|
28,091
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
31
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|
|
35
|
|
|
||||
Municipalities
|
|
1,060
|
|
|
|
|
107
|
|
|
|
|
8
|
|
|
|
|
1,159
|
|
|
||||
Mortgage- and asset-backed securities
|
|
310
|
|
|
|
|
74
|
|
|
|
|
0
|
|
|
|
|
384
|
|
|
||||
Public utilities
|
|
3,052
|
|
|
|
|
517
|
|
|
|
|
27
|
|
|
|
|
3,542
|
|
|
||||
Sovereign and supranational
|
|
449
|
|
|
|
|
89
|
|
|
|
|
5
|
|
|
|
|
533
|
|
|
||||
Banks/financial institutions
|
|
3,324
|
|
|
|
|
223
|
|
|
|
|
121
|
|
|
|
|
3,426
|
|
|
||||
Other corporate
|
|
9,031
|
|
|
|
|
1,433
|
|
|
|
|
62
|
|
|
|
|
10,402
|
|
|
||||
Total dollar-denominated
|
|
17,257
|
|
|
|
|
2,447
|
|
|
|
|
223
|
|
|
|
|
19,481
|
|
|
||||
Total fixed maturities
|
|
45,356
|
|
|
|
|
3,500
|
|
|
|
|
1,284
|
|
|
|
|
47,572
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
6,217
|
|
|
|
|
155
|
|
|
|
|
604
|
|
|
|
|
5,768
|
|
|
||||
Other corporate
|
|
344
|
|
|
|
|
17
|
|
|
|
|
0
|
|
|
|
|
361
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
336
|
|
|
|
|
3
|
|
|
|
|
29
|
|
|
|
|
310
|
|
|
||||
Total perpetual securities
|
|
6,897
|
|
|
|
|
175
|
|
|
|
|
633
|
|
|
|
|
6,439
|
|
|
||||
Equity securities
|
|
22
|
|
|
|
|
4
|
|
|
|
|
1
|
|
|
|
|
25
|
|
|
||||
Total securities available for sale
|
|
$
|
52,275
|
|
|
|
|
$
|
3,679
|
|
|
|
|
$
|
1,918
|
|
|
|
|
$
|
54,036
|
|
|
|
2011
|
||||||||||||||||||||||
(In millions)
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||||||||||
Securities held to maturity, carried at amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Japan government and agencies
|
|
$
|
18,775
|
|
|
|
|
$
|
297
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
19,071
|
|
|
Municipalities
|
|
553
|
|
|
|
|
35
|
|
|
|
|
4
|
|
|
|
|
584
|
|
|
||||
Mortgage- and asset-backed securities
|
|
129
|
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
|
134
|
|
|
||||
Public utilities
|
|
5,615
|
|
|
|
|
188
|
|
|
|
|
166
|
|
|
|
|
5,637
|
|
|
||||
Sovereign and supranational
|
|
4,200
|
|
|
|
|
148
|
|
|
|
|
183
|
|
|
|
|
4,165
|
|
|
||||
Banks/financial institutions
|
|
12,389
|
|
|
|
|
170
|
|
|
|
|
1,079
|
|
|
|
|
11,480
|
|
|
||||
Other corporate
|
|
5,348
|
|
|
|
|
149
|
|
|
|
|
185
|
|
|
|
|
5,312
|
|
|
||||
Total yen-denominated
|
|
47,009
|
|
|
|
|
992
|
|
|
|
|
1,618
|
|
|
|
|
46,383
|
|
|
||||
Total securities held to maturity
|
|
$
|
47,009
|
|
|
|
|
$
|
992
|
|
|
|
|
$
|
1,618
|
|
|
|
|
$
|
46,383
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
1,503
|
|
|
|
|
$
|
1,521
|
|
|
|
|
$
|
109
|
|
|
|
|
$
|
113
|
|
|
Due after one year through five years
|
|
2,195
|
|
|
|
|
2,300
|
|
|
|
|
292
|
|
|
|
|
330
|
|
|
||||
Due after five years through 10 years
|
|
7,079
|
|
|
|
|
7,457
|
|
|
|
|
1,183
|
|
|
|
|
1,399
|
|
|
||||
Due after 10 years
|
|
31,767
|
|
|
|
|
33,218
|
|
|
|
|
8,219
|
|
|
|
|
9,728
|
|
|
||||
Mortgage- and asset-backed securities
|
|
892
|
|
|
|
|
976
|
|
|
|
|
43
|
|
|
|
|
55
|
|
|
||||
Total fixed maturities available for sale
|
|
$
|
43,436
|
|
|
|
|
$
|
45,472
|
|
|
|
|
$
|
9,846
|
|
|
|
|
$
|
11,625
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
5,830
|
|
|
|
|
$
|
5,833
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after one year through five years
|
|
679
|
|
|
|
|
736
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after five years through 10 years
|
|
3,003
|
|
|
|
|
3,370
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
44,824
|
|
|
|
|
44,808
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Mortgage- and asset-backed securities
|
|
90
|
|
|
|
|
94
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total fixed maturities held to maturity
|
|
$
|
54,426
|
|
|
|
|
$
|
54,841
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Due in one year or less
|
|
$
|
289
|
|
|
|
|
$
|
292
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after one year through five years
|
|
1,239
|
|
|
|
|
1,316
|
|
|
|
|
5
|
|
|
|
|
5
|
|
|
||||
Due after five years through 10 years
|
|
309
|
|
|
|
|
352
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
2,212
|
|
|
|
|
2,167
|
|
|
|
|
159
|
|
|
|
|
170
|
|
|
||||
Total perpetual securities available for sale
|
|
$
|
4,049
|
|
|
|
|
$
|
4,127
|
|
|
|
|
$
|
164
|
|
|
|
|
$
|
175
|
|
|
|
2012
|
|
2011
|
||||||||
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
Japan National Government
|
AA
|
|
$44,081
|
|
$44,580
|
|
AA
|
|
$29,244
|
|
$30,145
|
|
2012
|
|
2011
|
||||||||||||||||||
|
Total Investments in
Banks and Financial Institutions Sector (in millions) |
|
Percentage of
Total Investment Portfolio |
|
Total Investments in
Banks and Financial Institutions Sector (in millions) |
|
Percentage of
Total Investment Portfolio |
||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortized cost
|
|
$
|
16,292
|
|
|
|
|
14
|
%
|
|
|
|
$
|
20,025
|
|
|
|
|
20
|
%
|
|
Fair value
|
|
16,625
|
|
|
|
|
14
|
|
|
|
|
18,933
|
|
|
|
|
19
|
|
|
||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Upper Tier II:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortized cost
|
|
$
|
2,825
|
|
|
|
|
3
|
%
|
|
|
|
$
|
4,285
|
|
|
|
|
5
|
%
|
|
Fair value
|
|
2,919
|
|
|
|
|
3
|
|
|
|
|
4,244
|
|
|
|
|
4
|
|
|
||
Tier I:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortized cost
|
|
1,079
|
|
|
|
|
1
|
|
|
|
|
2,268
|
|
|
|
|
2
|
|
|
||
Fair value
|
|
1,031
|
|
|
|
|
1
|
|
|
|
|
1,834
|
|
|
|
|
2
|
|
|
||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortized cost
|
|
$
|
20,196
|
|
|
|
|
18
|
%
|
|
|
|
$
|
26,578
|
|
|
|
|
27
|
%
|
|
Fair value
|
|
20,575
|
|
|
|
|
18
|
|
|
|
|
25,011
|
|
|
|
|
25
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||
Realized investment gains (losses) on securities:
|
|
|
|
|
|
||||||
Fixed maturities:
|
|
|
|
|
|
||||||
Available for sale:
|
|
|
|
|
|
||||||
Gross gains from sales
|
$
|
427
|
|
|
$
|
992
|
|
|
$
|
117
|
|
Gross losses from sales
|
(48
|
)
|
|
(465
|
)
|
|
(212
|
)
|
|||
Net gains (losses) from redemptions
|
2
|
|
|
69
|
|
|
1
|
|
|||
Other-than-temporary impairment losses
|
(734
|
)
|
|
(1,335
|
)
|
|
(297
|
)
|
|||
Held to maturity:
|
|
|
|
|
|
||||||
Net gains (losses) from redemptions
|
4
|
|
|
0
|
|
|
2
|
|
|||
Total fixed maturities
|
(349
|
)
|
|
(739
|
)
|
|
(389
|
)
|
|||
Perpetual securities:
|
|
|
|
|
|
||||||
Available for sale:
|
|
|
|
|
|
||||||
Gross gains from sales
|
127
|
|
|
102
|
|
|
133
|
|
|||
Gross losses from sales
|
(98
|
)
|
|
(109
|
)
|
|
0
|
|
|||
Net gains (losses) from redemptions
|
60
|
|
|
0
|
|
|
0
|
|
|||
Other-than-temporary impairment losses
|
(243
|
)
|
|
(565
|
)
|
|
(160
|
)
|
|||
Total perpetual securities
|
(154
|
)
|
|
(572
|
)
|
|
(27
|
)
|
|||
Equity securities:
|
|
|
|
|
|
||||||
Gross losses from sales
|
0
|
|
|
0
|
|
|
(2
|
)
|
|||
Other-than-temporary impairment losses
|
0
|
|
|
(1
|
)
|
|
(2
|
)
|
|||
Total equity securities
|
0
|
|
|
(1
|
)
|
|
(4
|
)
|
|||
Derivatives and other:
|
|
|
|
|
|
||||||
Derivative gains (losses)
|
151
|
|
|
(257
|
)
|
|
(1
|
)
|
|||
Other
|
3
|
|
|
17
|
|
|
(1
|
)
|
|||
Total derivatives and other
|
154
|
|
|
(240
|
)
|
|
(2
|
)
|
|||
Total realized investment gains (losses)
|
$
|
(349
|
)
|
|
$
|
(1,552
|
)
|
|
$
|
(422
|
)
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
|
||||||
Perpetual securities
|
$
|
243
|
|
|
$
|
565
|
|
|
$
|
160
|
|
|
Corporate bonds
|
345
|
|
|
1,316
|
|
|
285
|
|
|
|||
Mortgage- and asset-backed securities
|
3
|
|
|
17
|
|
|
12
|
|
|
|||
Municipalities
|
0
|
|
|
2
|
|
|
0
|
|
|
|||
Sovereign and supranational
|
386
|
|
|
0
|
|
|
0
|
|
|
|||
Equity securities
|
0
|
|
|
1
|
|
|
2
|
|
|
|||
Total other-than-temporary impairment losses realized
|
$
|
977
|
|
(1)
|
$
|
1,901
|
|
(1)
|
$
|
459
|
|
(2)
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Changes in unrealized gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available for sale
|
|
$
|
1,624
|
|
|
|
|
$
|
1,963
|
|
|
|
|
$
|
1,105
|
|
|
Transferred to held to maturity
|
|
(14
|
)
|
|
|
|
(101
|
)
|
|
|
|
(12
|
)
|
|
|||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available for sale
|
|
547
|
|
|
|
|
(143
|
)
|
|
|
|
(24
|
)
|
|
|||
Equity securities
|
|
0
|
|
|
|
|
2
|
|
|
|
|
(1
|
)
|
|
|||
Total change in unrealized gains (losses)
|
|
$
|
2,157
|
|
|
|
|
$
|
1,721
|
|
|
|
|
$
|
1,068
|
|
|
(In millions)
|
2012
|
|
2011
|
||||||||
Unrealized gains (losses) on securities available for sale
|
|
$
|
3,932
|
|
|
|
|
$
|
1,761
|
|
|
Unamortized unrealized gains on securities transferred to held to maturity
|
|
20
|
|
|
|
|
34
|
|
|
||
Deferred income taxes
|
|
(1,382
|
)
|
|
|
|
(652
|
)
|
|
||
Shareholders’ equity, unrealized gains (losses) on investment securities
|
|
$
|
2,570
|
|
|
|
|
$
|
1,143
|
|
|
|
2012
|
||||||||||||||||||||||||||||||||||
|
Total
|
|
Less than 12 months
|
|
12 months or longer
|
||||||||||||||||||||||||||||||
(In millions)
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||||||||||||||
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Japan government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
$
|
17,342
|
|
|
|
|
$
|
148
|
|
|
|
|
$
|
17,342
|
|
|
|
|
$
|
148
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
34
|
|
|
|
|
6
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
33
|
|
|
|
|
6
|
|
|
||||||
Yen-denominated
|
|
56
|
|
|
|
|
2
|
|
|
|
|
56
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Mortgage- and asset- backed
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
10
|
|
|
|
|
0
|
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Yen-denominated
|
|
136
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
136
|
|
|
|
|
1
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
736
|
|
|
|
|
17
|
|
|
|
|
736
|
|
|
|
|
17
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Yen-denominated
|
|
3,920
|
|
|
|
|
178
|
|
|
|
|
1,339
|
|
|
|
|
31
|
|
|
|
|
2,581
|
|
|
|
|
147
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
31
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
31
|
|
|
|
|
2
|
|
|
||||||
Yen-denominated
|
|
1,244
|
|
|
|
|
84
|
|
|
|
|
507
|
|
|
|
|
13
|
|
|
|
|
737
|
|
|
|
|
71
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
276
|
|
|
|
|
6
|
|
|
|
|
180
|
|
|
|
|
3
|
|
|
|
|
96
|
|
|
|
|
3
|
|
|
||||||
Yen-denominated
|
|
6,918
|
|
|
|
|
611
|
|
|
|
|
1,935
|
|
|
|
|
28
|
|
|
|
|
4,983
|
|
|
|
|
583
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
4,534
|
|
|
|
|
95
|
|
|
|
|
4,404
|
|
|
|
|
86
|
|
|
|
|
130
|
|
|
|
|
9
|
|
|
||||||
Yen-denominated
|
|
4,013
|
|
|
|
|
261
|
|
|
|
|
1,635
|
|
|
|
|
40
|
|
|
|
|
2,378
|
|
|
|
|
221
|
|
|
||||||
Total fixed maturities
|
|
39,250
|
|
|
|
|
1,411
|
|
|
|
|
28,145
|
|
|
|
|
368
|
|
|
|
|
11,105
|
|
|
|
|
1,043
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
136
|
|
|
|
|
9
|
|
|
|
|
120
|
|
|
|
|
0
|
|
|
|
|
16
|
|
|
|
|
9
|
|
|
||||||
Yen-denominated
|
|
1,315
|
|
|
|
|
161
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
1,315
|
|
|
|
|
161
|
|
|
||||||
Total perpetual securities
|
|
1,451
|
|
|
|
|
170
|
|
|
|
|
120
|
|
|
|
|
0
|
|
|
|
|
1,331
|
|
|
|
|
170
|
|
|
||||||
Equity securities
|
|
6
|
|
|
|
|
1
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
1
|
|
|
||||||
Total
|
|
$
|
40,707
|
|
|
|
|
$
|
1,582
|
|
|
|
|
$
|
28,268
|
|
|
|
|
$
|
368
|
|
|
|
|
$
|
12,439
|
|
|
|
|
$
|
1,214
|
|
|
|
2011
|
||||||||||||||||||||||||||||||||||
|
Total
|
|
Less than 12 months
|
|
12 months or longer
|
||||||||||||||||||||||||||||||
(In millions)
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||||||||||||||
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Japan government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
$
|
940
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
859
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
81
|
|
|
|
|
$
|
0
|
|
|
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
54
|
|
|
|
|
8
|
|
|
|
|
22
|
|
|
|
|
1
|
|
|
|
|
32
|
|
|
|
|
7
|
|
|
||||||
Yen-denominated
|
|
60
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
60
|
|
|
|
|
4
|
|
|
||||||
Mortgage- and asset- backed
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
151
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
151
|
|
|
|
|
1
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
295
|
|
|
|
|
27
|
|
|
|
|
110
|
|
|
|
|
3
|
|
|
|
|
185
|
|
|
|
|
24
|
|
|
||||||
Yen-denominated
|
|
4,995
|
|
|
|
|
392
|
|
|
|
|
2,404
|
|
|
|
|
141
|
|
|
|
|
2,591
|
|
|
|
|
251
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
66
|
|
|
|
|
5
|
|
|
|
|
34
|
|
|
|
|
2
|
|
|
|
|
32
|
|
|
|
|
3
|
|
|
||||||
Yen-denominated
|
|
2,349
|
|
|
|
|
199
|
|
|
|
|
749
|
|
|
|
|
62
|
|
|
|
|
1,600
|
|
|
|
|
137
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
770
|
|
|
|
|
121
|
|
|
|
|
391
|
|
|
|
|
56
|
|
|
|
|
379
|
|
|
|
|
65
|
|
|
||||||
Yen-denominated
|
|
10,175
|
|
|
|
|
1,438
|
|
|
|
|
1,639
|
|
|
|
|
46
|
|
|
|
|
8,536
|
|
|
|
|
1,392
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
834
|
|
|
|
|
62
|
|
|
|
|
639
|
|
|
|
|
27
|
|
|
|
|
195
|
|
|
|
|
35
|
|
|
||||||
Yen-denominated
|
|
6,106
|
|
|
|
|
644
|
|
|
|
|
2,523
|
|
|
|
|
110
|
|
|
|
|
3,583
|
|
|
|
|
534
|
|
|
||||||
Total fixed maturities
|
|
26,795
|
|
|
|
|
2,902
|
|
|
|
|
9,370
|
|
|
|
|
449
|
|
|
|
|
17,425
|
|
|
|
|
2,453
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
217
|
|
|
|
|
29
|
|
|
|
|
109
|
|
|
|
|
4
|
|
|
|
|
108
|
|
|
|
|
25
|
|
|
||||||
Yen-denominated
|
|
2,290
|
|
|
|
|
604
|
|
|
|
|
630
|
|
|
|
|
69
|
|
|
|
|
1,660
|
|
|
|
|
535
|
|
|
||||||
Total perpetual securities
|
|
2,507
|
|
|
|
|
633
|
|
|
|
|
739
|
|
|
|
|
73
|
|
|
|
|
1,768
|
|
|
|
|
560
|
|
|
||||||
Equity securities
|
|
8
|
|
|
|
|
1
|
|
|
|
|
6
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
29,310
|
|
|
|
|
$
|
3,536
|
|
|
|
|
$
|
10,115
|
|
|
|
|
$
|
523
|
|
|
|
|
$
|
19,195
|
|
|
|
|
$
|
3,013
|
|
|
|
2012
|
|
2011
|
||||||||||||||||
|
Percentage of
Total Investments in an Unrealized Loss Position |
|
Percentage of
Total Unrealized Losses |
|
Percentage of
Total Investments in an Unrealized Loss Position |
|
Percentage of
Total Unrealized Losses |
||||||||||||
Fixed maturities
|
|
18
|
%
|
|
|
|
39
|
%
|
|
|
|
37
|
%
|
|
|
|
44
|
%
|
|
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Upper Tier II
|
|
2
|
|
|
|
|
4
|
|
|
|
|
4
|
|
|
|
|
6
|
|
|
Tier I
|
|
2
|
|
|
|
|
7
|
|
|
|
|
5
|
|
|
|
|
12
|
|
|
Total perpetual
securities |
|
4
|
|
|
|
|
11
|
|
|
|
|
9
|
|
|
|
|
18
|
|
|
Total
|
|
22
|
%
|
|
|
|
50
|
%
|
|
|
|
46
|
%
|
|
|
|
62
|
%
|
|
|
|
|
2012
|
|
2011
|
||||||||||||||||||||||||||||||||
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain (Loss) |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain (Loss) |
||||||||||||||||||||||||
Upper Tier II:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
AA
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
196
|
|
|
|
|
$
|
204
|
|
|
|
|
$
|
8
|
|
|
|
A
|
|
|
460
|
|
|
|
|
488
|
|
|
|
|
28
|
|
|
|
|
2,108
|
|
|
|
|
2,046
|
|
|
|
|
(62
|
)
|
|
||||||
|
BBB
|
|
|
2,077
|
|
|
|
|
2,129
|
|
|
|
|
52
|
|
|
|
|
1,791
|
|
|
|
|
1,804
|
|
|
|
|
13
|
|
|
||||||
|
BB or lower
|
|
|
288
|
|
|
|
|
302
|
|
|
|
|
14
|
|
|
|
|
190
|
|
|
|
|
190
|
|
|
|
|
0
|
|
|
||||||
Total Upper Tier II
|
|
|
|
2,825
|
|
|
|
|
2,919
|
|
|
|
|
94
|
|
|
|
|
4,285
|
|
|
|
|
4,244
|
|
|
|
|
(41
|
)
|
|
||||||
Tier I:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
A
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
|
BBB
|
|
|
966
|
|
|
|
|
904
|
|
|
|
|
(62
|
)
|
|
|
|
1,684
|
|
|
|
|
1,417
|
|
|
|
|
(267
|
)
|
|
||||||
|
BB or lower
|
|
|
113
|
|
|
|
|
127
|
|
|
|
|
14
|
|
|
|
|
584
|
|
|
|
|
417
|
|
|
|
|
(167
|
)
|
|
||||||
Total Tier I
|
|
|
|
1,079
|
|
|
|
|
1,031
|
|
|
|
|
(48
|
)
|
|
|
|
2,268
|
|
|
|
|
1,834
|
|
|
|
|
(434
|
)
|
|
||||||
Other subordinated
- non-banks |
BBB
|
|
|
309
|
|
|
|
|
352
|
|
|
|
|
43
|
|
|
|
|
344
|
|
|
|
|
361
|
|
|
|
|
17
|
|
|
||||||
Total
|
|
|
|
$
|
4,213
|
|
|
|
|
$
|
4,302
|
|
|
|
|
$
|
89
|
|
|
|
|
$
|
6,897
|
|
|
|
|
$
|
6,439
|
|
|
|
|
$
|
(458
|
)
|
|
|
2012
|
|
2011
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
5,058
|
|
|
|
|
$
|
5,787
|
|
|
|
|
$
|
4,822
|
|
|
|
|
$
|
5,350
|
|
|
Perpetual securities, available for sale
|
|
559
|
|
|
|
|
574
|
|
|
|
|
1,532
|
|
|
|
|
1,290
|
|
|
||||
Fixed maturities, held to maturity
|
|
289
|
|
|
|
|
287
|
|
|
|
|
643
|
|
|
|
|
566
|
|
|
||||
Other assets
|
|
191
|
|
|
|
|
191
|
|
|
|
|
375
|
|
|
|
|
375
|
|
|
||||
Total assets of consolidated VIEs
|
|
$
|
6,097
|
|
|
|
|
$
|
6,839
|
|
|
|
|
$
|
7,372
|
|
|
|
|
$
|
7,581
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
|
$
|
399
|
|
|
|
|
$
|
399
|
|
|
|
|
$
|
531
|
|
|
|
|
$
|
531
|
|
|
Total liabilities of consolidated VIEs
|
|
$
|
399
|
|
|
|
|
$
|
399
|
|
|
|
|
$
|
531
|
|
|
|
|
$
|
531
|
|
|
|
2012
|
|
2011
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
7,738
|
|
|
|
|
$
|
8,350
|
|
|
|
|
$
|
7,190
|
|
|
|
|
$
|
7,239
|
|
|
Perpetual securities, available for sale
|
|
736
|
|
|
|
|
751
|
|
|
|
|
1,315
|
|
|
|
|
1,364
|
|
|
||||
Fixed maturities, held to maturity
|
|
3,829
|
|
|
|
|
3,922
|
|
|
|
|
5,248
|
|
|
|
|
5,111
|
|
|
||||
Total investments in VIEs not consolidated
|
|
$
|
12,303
|
|
|
|
|
$
|
13,023
|
|
|
|
|
$
|
13,753
|
|
|
|
|
$
|
13,714
|
|
|
(In millions)
|
2012
|
|
2011
|
||||||||
Security loans outstanding, fair value
|
|
$
|
6,122
|
|
|
|
|
$
|
812
|
|
|
Cash collateral on loaned securities
|
|
6,277
|
|
|
|
|
838
|
|
|
|
2012
|
2011
|
2010
|
|||||||||||||||||||||||||||||
(In millions)
|
|
Realized
Investment Gains (Losses) |
|
Other
Comprehensive Income (Loss) |
Realized
Investment Gains (Losses) |
Other
Comprehensive Income (Loss) |
Realized
Investment Gains (Losses) |
Other
Comprehensive Income (Loss) |
||||||||||||||||||||||||
Qualifying hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate
swaps |
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
$
|
0
|
|
|
|
$
|
2
|
|
|
|
$
|
0
|
|
|
|
$
|
1
|
|
|
Foreign currency
swaps |
|
|
(3
|
)
|
|
|
|
(22
|
)
|
|
|
0
|
|
|
|
(35
|
)
|
|
|
20
|
|
|
|
50
|
|
|
||||||
Total cash flow
hedges |
|
|
(3
|
)
|
|
|
|
(22
|
)
|
|
|
0
|
|
|
|
(33
|
)
|
|
|
20
|
|
|
|
51
|
|
|
||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency
forwards (1) |
|
|
(7
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Total fair value
hedges |
|
|
(7
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Net investment
hedge: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-derivative
hedging instruments |
|
|
0
|
|
|
|
|
96
|
|
|
|
0
|
|
|
|
(54
|
)
|
|
|
0
|
|
|
|
(129
|
)
|
|
||||||
Total net
investment hedge |
|
|
0
|
|
|
|
|
96
|
|
|
|
0
|
|
|
|
(54
|
)
|
|
|
0
|
|
|
|
(129
|
)
|
|
||||||
Non-qualifying
strategies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate
swaps |
|
|
(14
|
)
|
|
|
|
0
|
|
|
|
(33
|
)
|
|
|
0
|
|
|
|
7
|
|
|
|
0
|
|
|
||||||
Foreign currency
swaps |
|
|
111
|
|
|
|
|
0
|
|
|
|
(160
|
)
|
|
|
0
|
|
|
|
3
|
|
|
|
0
|
|
|
||||||
Credit default
swaps |
|
|
64
|
|
|
|
|
0
|
|
|
|
(64
|
)
|
|
|
0
|
|
|
|
(31
|
)
|
|
|
0
|
|
|
||||||
Total
non-qualifying strategies |
|
|
161
|
|
|
|
|
0
|
|
|
|
(257
|
)
|
|
|
0
|
|
|
|
(21
|
)
|
|
|
0
|
|
|
||||||
Total
|
|
|
|
$151
|
|
|
|
|
$
|
74
|
|
|
|
$
|
(257
|
)
|
|
|
$
|
(87
|
)
|
|
|
$
|
(1
|
)
|
|
|
$
|
(78
|
)
|
|
|
2012
|
|
2011
|
||||||||||||||||||||
|
Fair Value
|
|
Notional Amount
|
|
Fair Value
|
|
Notional Amount
|
||||||||||||||||
(In millions)
|
of Swaps
|
|
of Swaps
|
|
of Swaps
|
|
of Swaps
|
||||||||||||||||
Counterparties' credit rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
AA
|
|
$
|
(1
|
)
|
|
|
|
$
|
161
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
A
|
|
(588
|
)
|
|
|
|
13,209
|
|
|
|
|
(156
|
)
|
|
|
|
5,491
|
|
|
||||
Total
|
|
$
|
(589
|
)
|
|
|
|
$
|
13,370
|
|
|
|
|
$
|
(156
|
)
|
|
|
|
$
|
5,491
|
|
|
2012
|
||||||||||||||||||||||||||||||||||||||||
|
|
Less than
one year |
|
One to
three years |
|
Three to
five years |
|
Five to
ten years |
|
Total
|
||||||||||||||||||||||||||||||
(In millions)
|
Credit
Rating |
Maximum
potential risk |
|
Estimated
fair value |
|
Maximum
potential risk |
|
Estimated
fair value |
|
Maximum
potential risk |
|
Estimated
fair value |
|
Maximum
potential risk |
|
Estimated
fair value |
|
Maximum
potential risk |
|
Estimated
fair value |
||||||||||||||||||||
Index exposure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Corporate bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
A
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(133
|
)
|
|
$
|
2
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(133
|
)
|
|
$
|
2
|
|
|
BB or lower
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(106
|
)
|
|
(47
|
)
|
|
(116
|
)
|
|
(20
|
)
|
|
(222
|
)
|
|
(67
|
)
|
||||||||||
Total
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(133
|
)
|
|
$
|
2
|
|
|
$
|
(106
|
)
|
|
$
|
(47
|
)
|
|
$
|
(116
|
)
|
|
$
|
(20
|
)
|
|
$
|
(355
|
)
|
|
$
|
(65
|
)
|
2011
|
||||||||||||||||||||||||||||||||||||||||
|
|
Less than
one year |
|
One to
three years |
|
Three to
five years |
|
Five to
ten years |
|
Total
|
||||||||||||||||||||||||||||||
(In millions)
|
Credit
Rating |
Maximum
potential risk |
|
Estimated
fair value |
|
Maximum
potential risk |
|
Estimated
fair value |
|
Maximum
potential risk |
|
Estimated
fair value |
|
Maximum
potential risk |
|
Estimated
fair value |
|
Maximum
potential risk |
|
Estimated
fair value |
||||||||||||||||||||
Index exposure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Corporate bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
A
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(146
|
)
|
|
$
|
(17
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(146
|
)
|
|
$
|
(17
|
)
|
|
BB or lower
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(235
|
)
|
|
(113
|
)
|
|
(235
|
)
|
|
(113
|
)
|
||||||||||
Total
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(146
|
)
|
|
$
|
(17
|
)
|
|
$
|
(235
|
)
|
|
$
|
(113
|
)
|
|
$
|
(381
|
)
|
|
$
|
(130
|
)
|
|
2012
|
||||||||||||||||||||||
(In millions)
|
Net Derivatives
|
|
Asset
Derivatives |
|
Liability
Derivatives |
||||||||||||||||||
Hedge Designation/ Derivative Type
|
Notional
Amount |
|
Fair Value
|
|
Fair Value
|
|
Fair Value
|
||||||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
$
|
64
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Foreign currency swaps
|
|
75
|
|
|
|
|
14
|
|
|
|
|
14
|
|
|
|
|
0
|
|
|
||||
Total cash flow hedges
|
|
139
|
|
|
|
|
14
|
|
|
|
|
14
|
|
|
|
|
0
|
|
|
||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
6,944
|
|
|
|
|
(535
|
)
|
|
|
|
0
|
|
|
|
|
(535
|
)
|
|
||||
Total fair value hedges
|
|
6,944
|
|
|
|
|
(535
|
)
|
|
|
|
0
|
|
|
|
|
(535
|
)
|
|
||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
355
|
|
|
|
|
29
|
|
|
|
|
32
|
|
|
|
|
(3
|
)
|
|
||||
Foreign currency swaps
|
|
5,577
|
|
|
|
|
(32
|
)
|
|
|
|
297
|
|
|
|
|
(329
|
)
|
|
||||
Credit default swaps
|
|
355
|
|
|
|
|
(65
|
)
|
|
|
|
2
|
|
|
|
|
(67
|
)
|
|
||||
Total non-qualifying strategies
|
|
6,287
|
|
|
|
|
(68
|
)
|
|
|
|
331
|
|
|
|
|
(399
|
)
|
|
||||
Total derivatives
|
|
$
|
13,370
|
|
|
|
|
$
|
(589
|
)
|
|
|
|
$
|
345
|
|
|
|
|
$
|
(934
|
)
|
|
Balance Sheet Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
$
|
2,585
|
|
|
|
|
$
|
345
|
|
|
|
|
$
|
345
|
|
|
|
|
$
|
0
|
|
|
Other liabilities
|
|
10,785
|
|
|
|
|
(934
|
)
|
|
|
|
0
|
|
|
|
|
(934
|
)
|
|
||||
Total derivatives
|
|
$
|
13,370
|
|
|
|
|
$
|
(589
|
)
|
|
|
|
$
|
345
|
|
|
|
|
$
|
(934
|
)
|
|
|
2011
|
||||||||||||||||||||||
(In millions)
|
Net Derivatives
|
|
Asset
Derivatives |
|
Liability
Derivatives |
||||||||||||||||||
Hedge Designation/ Derivative Type
|
Notional
Amount |
|
Fair Value
|
|
Fair Value
|
|
Fair Value
|
||||||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
$
|
71
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Foreign currency swaps
|
|
75
|
|
|
|
|
36
|
|
|
|
|
36
|
|
|
|
|
0
|
|
|
||||
Total cash flow hedges
|
|
146
|
|
|
|
|
36
|
|
|
|
|
36
|
|
|
|
|
0
|
|
|
||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
381
|
|
|
|
|
30
|
|
|
|
|
34
|
|
|
|
|
(4
|
)
|
|
||||
Foreign currency swaps
|
|
4,583
|
|
|
|
|
(92
|
)
|
|
|
|
305
|
|
|
|
|
(397
|
)
|
|
||||
Credit default swaps
|
|
381
|
|
|
|
|
(130
|
)
|
|
|
|
0
|
|
|
|
|
(130
|
)
|
|
||||
Total non-qualifying strategies
|
|
5,345
|
|
|
|
|
(192
|
)
|
|
|
|
339
|
|
|
|
|
(531
|
)
|
|
||||
Total derivatives
|
|
$
|
5,491
|
|
|
|
|
$
|
(156
|
)
|
|
|
|
$
|
375
|
|
|
|
|
$
|
(531
|
)
|
|
Balance Sheet Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
$
|
1,794
|
|
|
|
|
$
|
375
|
|
|
|
|
$
|
375
|
|
|
|
|
$
|
0
|
|
|
Other liabilities
|
|
3,697
|
|
|
|
|
(531
|
)
|
|
|
|
0
|
|
|
|
|
(531
|
)
|
|
||||
Total derivatives
|
|
$
|
5,491
|
|
|
|
|
$
|
(156
|
)
|
|
|
|
$
|
375
|
|
|
|
|
$
|
(531
|
)
|
|
(In millions)
|
Derivative Gain (Loss)
Recognized in Other Comprehensive Income (Effective Portion) |
|
Derivative Gains (Losses)
Recognized in Income (Ineffective Portion) |
||||||||
2012:
|
|
|
|
|
|
|
|
||||
Interest rate swaps
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Foreign currency swaps
|
|
(22
|
)
|
|
|
|
(3
|
)
|
|
||
Total
|
|
$
|
(22
|
)
|
|
|
|
$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
||||
2011:
|
|
|
|
|
|
|
|
||||
Interest rate swaps
|
|
$
|
2
|
|
|
|
|
$
|
0
|
|
|
Foreign currency swaps
|
|
(35
|
)
|
|
|
|
0
|
|
|
||
Total
|
|
$
|
(33
|
)
|
|
|
|
$
|
0
|
|
|
|
|
|
|
|
|
|
|
||||
2010:
|
|
|
|
|
|
|
|
||||
Interest rate swaps
|
|
$
|
1
|
|
|
|
|
$
|
0
|
|
|
Foreign currency swaps
|
|
50
|
|
|
|
|
20
|
|
|
||
Total
|
|
$
|
51
|
|
|
|
|
$
|
20
|
|
|
(In millions)
|
|
|
|
Hedging Derivatives
|
|
Hedged Items
|
|
|
||||||||||||||
Hedging Derivatives
|
Hedged Items
|
|
|
Total
Gains (Losses) |
|
Gains (Losses)
Excluded from Effectiveness Testing |
|
Gains (Losses)
Included in Effectiveness Testing |
|
Foreign Currency Gains (Losses)
|
|
Ineffectiveness
Recognized for Fair Value Hedge |
||||||||||
2012:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency
forwards |
Fixed-maturity securities
|
|
|
$
|
(535
|
)
|
|
$
|
(8
|
)
|
|
$
|
(527
|
)
|
|
$
|
528
|
|
|
$
|
1
|
|
|
Derivative Gains (Losses) Recognized in Income
|
||||||||||||||||
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Interest rate swaps
|
|
$
|
(14
|
)
|
|
|
|
$
|
(33
|
)
|
|
|
|
$
|
7
|
|
|
Foreign currency swaps
|
|
111
|
|
|
|
|
(160
|
)
|
|
|
|
3
|
|
|
|||
Credit default swaps
|
|
64
|
|
|
|
|
(64
|
)
|
|
|
|
(31
|
)
|
|
|||
Total
|
|
$
|
161
|
|
|
|
|
$
|
(257
|
)
|
|
|
|
$
|
(21
|
)
|
|
5.
|
FAIR VALUE MEASUREMENTS
|
|
2012
|
||||||||||||||||||||||
(In millions)
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
Fair Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale, carried at
fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies
|
|
$
|
12,265
|
|
|
|
|
$
|
732
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
12,997
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,195
|
|
|
|
|
0
|
|
|
|
|
1,195
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
693
|
|
|
|
|
338
|
|
|
|
|
1,031
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
8,077
|
|
|
|
|
420
|
|
|
|
|
8,497
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,654
|
|
|
|
|
418
|
|
|
|
|
2,072
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
6,610
|
|
|
|
|
1,024
|
|
|
|
|
7,634
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
22,841
|
|
|
|
|
986
|
|
|
|
|
23,827
|
|
|
||||
Total fixed maturities
|
|
12,265
|
|
|
|
|
41,802
|
|
|
|
|
3,186
|
|
|
|
|
57,253
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
3,735
|
|
|
|
|
215
|
|
|
|
|
3,950
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
352
|
|
|
|
|
0
|
|
|
|
|
352
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
4,087
|
|
|
|
|
215
|
|
|
|
|
4,302
|
|
|
||||
Equity securities
|
|
13
|
|
|
|
|
6
|
|
|
|
|
4
|
|
|
|
|
23
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
32
|
|
|
|
|
32
|
|
|
||||
Foreign currency swaps
|
|
0
|
|
|
|
|
154
|
|
|
|
|
157
|
|
|
|
|
311
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
154
|
|
|
|
|
191
|
|
|
|
|
345
|
|
|
||||
Cash and cash equivalents
|
|
2,041
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
2,041
|
|
|
||||
Total assets
|
|
$
|
14,319
|
|
|
|
|
$
|
46,049
|
|
|
|
|
$
|
3,596
|
|
|
|
|
$
|
63,964
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
3
|
|
|
Foreign currency swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
329
|
|
|
|
|
329
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
535
|
|
|
|
|
0
|
|
|
|
|
535
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
67
|
|
|
|
|
67
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
535
|
|
|
|
|
$
|
399
|
|
|
|
|
$
|
934
|
|
|
|
2011
|
||||||||||||||||||||||
(In millions)
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
Fair Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale, carried at
fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies
|
|
$
|
11,092
|
|
|
|
|
$
|
721
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
11,813
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,159
|
|
|
|
|
0
|
|
|
|
|
1,159
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
944
|
|
|
|
|
394
|
|
|
|
|
1,338
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
6,803
|
|
|
|
|
422
|
|
|
|
|
7,225
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,874
|
|
|
|
|
434
|
|
|
|
|
2,308
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
6,379
|
|
|
|
|
1,074
|
|
|
|
|
7,453
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
15,171
|
|
|
|
|
1,105
|
|
|
|
|
16,276
|
|
|
||||
Total fixed maturities
|
|
11,092
|
|
|
|
|
33,051
|
|
|
|
|
3,429
|
|
|
|
|
47,572
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
5,552
|
|
|
|
|
526
|
|
|
|
|
6,078
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
361
|
|
|
|
|
0
|
|
|
|
|
361
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
5,913
|
|
|
|
|
526
|
|
|
|
|
6,439
|
|
|
||||
Equity securities
|
|
15
|
|
|
|
|
6
|
|
|
|
|
4
|
|
|
|
|
25
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
34
|
|
|
|
|
34
|
|
|
||||
Foreign currency swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
341
|
|
|
|
|
341
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
0
|
|
|
|
|
375
|
|
|
|
|
375
|
|
|
||||
Cash and cash equivalents
|
|
2,249
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
2,249
|
|
|
||||
Total assets
|
|
$
|
13,356
|
|
|
|
|
$
|
38,970
|
|
|
|
|
$
|
4,334
|
|
|
|
|
$
|
56,660
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
4
|
|
|
|
|
$
|
4
|
|
|
Foreign currency swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
397
|
|
|
|
|
397
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
130
|
|
|
|
|
130
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
531
|
|
|
|
|
$
|
531
|
|
|
|
2012
|
|||||||||||||||||||||||||||
(In millions)
|
Carrying
Value |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
Total
Fair Value |
|
||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities held to maturity,
carried at amortized cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agencies
|
|
$
|
32,043
|
|
|
|
$
|
32,332
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
32,332
|
|
|
Municipalities
|
|
492
|
|
|
|
0
|
|
|
|
|
520
|
|
|
|
|
0
|
|
|
|
|
520
|
|
|
|||||
Mortgage- and
asset-backed securities |
|
90
|
|
|
|
0
|
|
|
|
|
30
|
|
|
|
|
64
|
|
|
|
|
94
|
|
|
|||||
Public utilities
|
|
4,924
|
|
|
|
0
|
|
|
|
|
5,051
|
|
|
|
|
0
|
|
|
|
|
5,051
|
|
|
|||||
Sovereign and
supranational |
|
3,209
|
|
|
|
0
|
|
|
|
|
3,317
|
|
|
|
|
0
|
|
|
|
|
3,317
|
|
|
|||||
Banks/financial institutions
|
|
9,211
|
|
|
|
0
|
|
|
|
|
8,991
|
|
|
|
|
0
|
|
|
|
|
8,991
|
|
|
|||||
Other corporate
|
|
4,457
|
|
|
|
0
|
|
|
|
|
4,536
|
|
|
|
|
0
|
|
|
|
|
4,536
|
|
|
|||||
Total assets
|
|
$
|
54,426
|
|
|
|
$
|
32,332
|
|
|
|
|
$
|
22,445
|
|
|
|
|
$
|
64
|
|
|
|
|
$
|
54,841
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Notes payable
(excluding capital leases) |
|
$
|
4,343
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
4,992
|
|
|
|
|
$
|
4,992
|
|
|
Obligation to Japanese
policyholder protection corporation |
|
23
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
23
|
|
|
|
|
23
|
|
|
|||||
Total liabilities
|
|
$
|
4,366
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
5,015
|
|
|
|
|
$
|
5,015
|
|
|
|
|
|
|
2011
|
||||||||||||||||||||||||
(In millions)
|
Carrying
Value |
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
Fair Value |
||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities held to maturity,
carried at amortized cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agencies
|
|
$
|
18,775
|
|
|
|
$
|
19,071
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
19,071
|
|
|
Municipalities
|
|
553
|
|
|
|
0
|
|
|
|
|
584
|
|
|
|
|
0
|
|
|
|
|
584
|
|
|
|||||
Mortgage- and
asset-backed securities |
|
129
|
|
|
|
0
|
|
|
|
|
39
|
|
|
|
|
95
|
|
|
|
|
134
|
|
|
|||||
Public utilities
|
|
5,615
|
|
|
|
0
|
|
|
|
|
5,637
|
|
|
|
|
0
|
|
|
|
|
5,637
|
|
|
|||||
Sovereign and
supranational |
|
4,200
|
|
|
|
0
|
|
|
|
|
4,165
|
|
|
|
|
0
|
|
|
|
|
4,165
|
|
|
|||||
Banks/financial institutions
|
|
12,389
|
|
|
|
0
|
|
|
|
|
11,480
|
|
|
|
|
0
|
|
|
|
|
11,480
|
|
|
|||||
Other corporate
|
|
5,348
|
|
|
|
0
|
|
|
|
|
5,312
|
|
|
|
|
0
|
|
|
|
|
5,312
|
|
|
|||||
Total assets
|
|
$
|
47,009
|
|
|
|
$
|
19,071
|
|
|
|
|
$
|
27,217
|
|
|
|
|
$
|
95
|
|
|
|
|
$
|
46,383
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Notes payable
(excluding capital leases) |
|
$
|
3,275
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
3,536
|
|
|
|
|
$
|
3,536
|
|
|
Obligation to Japanese
policyholder protection corporation |
|
71
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
71
|
|
|
|
|
71
|
|
|
|||||
Total liabilities
|
|
$
|
3,346
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
3,607
|
|
|
|
|
$
|
3,607
|
|
|
|
|
2012
|
||||||||||||||||||||||
(In millions)
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
|
Total
Fair Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Securities available for sale, carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
$
|
12,265
|
|
|
|
|
$
|
685
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
12,950
|
|
|
DCF pricing model
|
|
|
0
|
|
|
|
|
47
|
|
|
|
|
0
|
|
|
|
|
47
|
|
|
||||
Total government and agencies
|
|
|
12,265
|
|
|
|
|
732
|
|
|
|
|
0
|
|
|
|
|
12,997
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,177
|
|
|
|
|
0
|
|
|
|
|
1,177
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
18
|
|
|
|
|
0
|
|
|
|
|
18
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,195
|
|
|
|
|
0
|
|
|
|
|
1,195
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
682
|
|
|
|
|
0
|
|
|
|
|
682
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
11
|
|
|
|
|
0
|
|
|
|
|
11
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
338
|
|
|
|
|
338
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
693
|
|
|
|
|
338
|
|
|
|
|
1,031
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
5,144
|
|
|
|
|
0
|
|
|
|
|
5,144
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
2,908
|
|
|
|
|
420
|
|
|
|
|
3,328
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
25
|
|
|
|
|
0
|
|
|
|
|
25
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
8,077
|
|
|
|
|
420
|
|
|
|
|
8,497
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
540
|
|
|
|
|
0
|
|
|
|
|
540
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
619
|
|
|
|
|
418
|
|
|
|
|
1,037
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
495
|
|
|
|
|
0
|
|
|
|
|
495
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,654
|
|
|
|
|
418
|
|
|
|
|
2,072
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
4,257
|
|
|
|
|
0
|
|
|
|
|
4,257
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
2,136
|
|
|
|
|
444
|
|
|
|
|
2,580
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
217
|
|
|
|
|
580
|
|
|
|
|
797
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
6,610
|
|
|
|
|
1,024
|
|
|
|
|
7,634
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
18,093
|
|
|
|
|
0
|
|
|
|
|
18,093
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
4,747
|
|
|
|
|
575
|
|
|
|
|
5,322
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
411
|
|
|
|
|
412
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
22,841
|
|
|
|
|
986
|
|
|
|
|
23,827
|
|
|
||||
Total fixed maturities
|
|
|
12,265
|
|
|
|
|
41,802
|
|
|
|
|
3,186
|
|
|
|
|
57,253
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
283
|
|
|
|
|
0
|
|
|
|
|
283
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
3,452
|
|
|
|
|
215
|
|
|
|
|
3,667
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
3,735
|
|
|
|
|
215
|
|
|
|
|
3,950
|
|
|
(In millions)
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
|
Total
Fair Value |
||||||||||||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
DCF pricing model
|
|
|
0
|
|
|
|
|
352
|
|
|
|
|
0
|
|
|
|
|
352
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
352
|
|
|
|
|
0
|
|
|
|
|
352
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
4,087
|
|
|
|
|
215
|
|
|
|
|
4,302
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
13
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
13
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
6
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4
|
|
|
|
|
4
|
|
|
||||
Total equity securities
|
|
|
13
|
|
|
|
|
6
|
|
|
|
|
4
|
|
|
|
|
23
|
|
|
||||
Total securities available for sale
|
|
|
$
|
12,278
|
|
|
|
|
$
|
45,895
|
|
|
|
|
$
|
3,405
|
|
|
|
|
$
|
61,578
|
|
|
|
|
|
2012
|
|
||||||||||||||||||||
(In millions)
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
|
Significant Observable Inputs
(Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
|
Total
Fair Value |
||||||||||||||||
Securities held to maturity, carried at amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
$
|
32,332
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
32,332
|
|
|
Total government and agencies
|
|
|
32,332
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
32,332
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
464
|
|
|
|
|
0
|
|
|
|
|
464
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
56
|
|
|
|
|
0
|
|
|
|
|
56
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
520
|
|
|
|
|
0
|
|
|
|
|
520
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
30
|
|
|
|
|
0
|
|
|
|
|
30
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
64
|
|
|
|
|
64
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
30
|
|
|
|
|
64
|
|
|
|
|
94
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
58
|
|
|
|
|
0
|
|
|
|
|
58
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
4,993
|
|
|
|
|
0
|
|
|
|
|
4,993
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
5,051
|
|
|
|
|
0
|
|
|
|
|
5,051
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
370
|
|
|
|
|
0
|
|
|
|
|
370
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
2,947
|
|
|
|
|
0
|
|
|
|
|
2,947
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
3,317
|
|
|
|
|
0
|
|
|
|
|
3,317
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
254
|
|
|
|
|
0
|
|
|
|
|
254
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
8,737
|
|
|
|
|
0
|
|
|
|
|
8,737
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
8,991
|
|
|
|
|
0
|
|
|
|
|
8,991
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
122
|
|
|
|
|
0
|
|
|
|
|
122
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
4,414
|
|
|
|
|
0
|
|
|
|
|
4,414
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
4,536
|
|
|
|
|
0
|
|
|
|
|
4,536
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
32,332
|
|
|
|
|
$
|
22,445
|
|
|
|
|
$
|
64
|
|
|
|
|
$
|
54,841
|
|
|
|
|
2011
|
||||||||||||||||||||||
(In millions)
|
|
Quoted Prices in Active Markets
for Identical Assets (Level 1) |
|
Significant Observable
Inputs (Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
|
Total
Fair Value |
||||||||||||||||
Securities available for sale, carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
$
|
11,092
|
|
|
|
|
$
|
721
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
11,813
|
|
|
Total government and agencies
|
|
|
11,092
|
|
|
|
|
721
|
|
|
|
|
0
|
|
|
|
|
11,813
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,142
|
|
|
|
|
0
|
|
|
|
|
1,142
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
17
|
|
|
|
|
0
|
|
|
|
|
17
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,159
|
|
|
|
|
0
|
|
|
|
|
1,159
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
932
|
|
|
|
|
0
|
|
|
|
|
932
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
12
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
394
|
|
|
|
|
394
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
944
|
|
|
|
|
394
|
|
|
|
|
1,338
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,908
|
|
|
|
|
0
|
|
|
|
|
3,908
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
2,895
|
|
|
|
|
422
|
|
|
|
|
3,317
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
6,803
|
|
|
|
|
422
|
|
|
|
|
7,225
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
491
|
|
|
|
|
0
|
|
|
|
|
491
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
1,383
|
|
|
|
|
434
|
|
|
|
|
1,817
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,874
|
|
|
|
|
434
|
|
|
|
|
2,308
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,612
|
|
|
|
|
0
|
|
|
|
|
3,612
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
2,722
|
|
|
|
|
552
|
|
|
|
|
3,274
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
45
|
|
|
|
|
522
|
|
|
|
|
567
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
6,379
|
|
|
|
|
1,074
|
|
|
|
|
7,453
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
10,351
|
|
|
|
|
0
|
|
|
|
|
10,351
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
4,763
|
|
|
|
|
605
|
|
|
|
|
5,368
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
57
|
|
|
|
|
500
|
|
|
|
|
557
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
15,171
|
|
|
|
|
1,105
|
|
|
|
|
16,276
|
|
|
||||
Total fixed maturities
|
|
|
11,092
|
|
|
|
|
33,051
|
|
|
|
|
3,429
|
|
|
|
|
47,572
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
292
|
|
|
|
|
0
|
|
|
|
|
292
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
5,260
|
|
|
|
|
317
|
|
|
|
|
5,577
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
209
|
|
|
|
|
209
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
5,552
|
|
|
|
|
526
|
|
|
|
|
6,078
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
DCF pricing model
|
|
|
0
|
|
|
|
|
361
|
|
|
|
|
0
|
|
|
|
|
361
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
361
|
|
|
|
|
0
|
|
|
|
|
361
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
5,913
|
|
|
|
|
526
|
|
|
|
|
6,439
|
|
|
(In millions)
|
|
Quoted Prices in Active Markets
for Identical Assets (Level 1) |
|
Significant Observable
Inputs (Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
|
Total
Fair Value |
||||||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
15
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
15
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
6
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4
|
|
|
|
|
4
|
|
|
||||
Total equity securities
|
|
|
15
|
|
|
|
|
6
|
|
|
|
|
4
|
|
|
|
|
25
|
|
|
||||
Total securities available for sale
|
|
|
$
|
11,107
|
|
|
|
|
$
|
38,970
|
|
|
|
|
$
|
3,959
|
|
|
|
|
$
|
54,036
|
|
|
|
|
|
2011
|
|
||||||||||||||||||||
(In millions)
|
|
Quoted Prices in Active Markets
for Identical Assets (Level 1) |
|
Significant Observable
Inputs (Level 2) |
|
Significant Unobservable Inputs
(Level 3) |
|
Total
Fair Value |
||||||||||||||||
Securities held to maturity, carried at amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
$
|
19,071
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
19,071
|
|
|
Total government and agencies
|
|
|
19,071
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
19,071
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
524
|
|
|
|
|
0
|
|
|
|
|
524
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
60
|
|
|
|
|
0
|
|
|
|
|
60
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
584
|
|
|
|
|
0
|
|
|
|
|
584
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
39
|
|
|
|
|
0
|
|
|
|
|
39
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
95
|
|
|
|
|
95
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
39
|
|
|
|
|
95
|
|
|
|
|
134
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
65
|
|
|
|
|
0
|
|
|
|
|
65
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
5,572
|
|
|
|
|
0
|
|
|
|
|
5,572
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
5,637
|
|
|
|
|
0
|
|
|
|
|
5,637
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
257
|
|
|
|
|
0
|
|
|
|
|
257
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
3,772
|
|
|
|
|
0
|
|
|
|
|
3,772
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
136
|
|
|
|
|
0
|
|
|
|
|
136
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
4,165
|
|
|
|
|
0
|
|
|
|
|
4,165
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
285
|
|
|
|
|
0
|
|
|
|
|
285
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
11,195
|
|
|
|
|
0
|
|
|
|
|
11,195
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
11,480
|
|
|
|
|
0
|
|
|
|
|
11,480
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
116
|
|
|
|
|
0
|
|
|
|
|
116
|
|
|
||||
DCF pricing model
|
|
|
0
|
|
|
|
|
5,176
|
|
|
|
|
0
|
|
|
|
|
5,176
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
20
|
|
|
|
|
0
|
|
|
|
|
20
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
5,312
|
|
|
|
|
0
|
|
|
|
|
5,312
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
19,071
|
|
|
|
|
$
|
27,217
|
|
|
|
|
$
|
95
|
|
|
|
|
$
|
46,383
|
|
|
2012
|
|||||||||||||||||||||||||||||||||||||||||||
|
Fixed Maturities
|
|
Perpetual
Securities |
|
Equity
Securities |
|
Derivatives
(1)
|
|
|
||||||||||||||||||||||||||||||||||
(In millions)
|
Mortgage-
and Asset- Backed Securities |
|
Public
Utilities |
|
Sovereign
and Supranational |
|
Banks/
Financial Institutions |
|
Other
Corporate |
|
Banks/
Financial Institutions |
|
|
|
Interest
Rate Swaps |
|
Foreign
Currency Swaps |
|
Credit
Default Swaps |
|
Total
|
||||||||||||||||||||||
Balance, beginning of period
|
$
|
394
|
|
|
$
|
422
|
|
|
$
|
434
|
|
|
$
|
1,074
|
|
|
$
|
1,105
|
|
|
$
|
526
|
|
|
$
|
4
|
|
|
$
|
30
|
|
|
$
|
(56
|
)
|
|
$
|
(130
|
)
|
|
$
|
3,803
|
|
Realized investment gains (losses) included
in earnings |
(3
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2
|
|
|
49
|
|
|
0
|
|
|
(1
|
)
|
|
(61
|
)
|
|
65
|
|
|
51
|
|
|||||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
(33
|
)
|
|
(2
|
)
|
|
(16
|
)
|
|
70
|
|
|
(87
|
)
|
|
33
|
|
|
0
|
|
|
0
|
|
|
(22
|
)
|
|
0
|
|
|
(57
|
)
|
|||||||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Purchases
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||||||
Sales
|
0
|
|
|
0
|
|
|
0
|
|
|
(326
|
)
|
|
(34
|
)
|
|
(393
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(753
|
)
|
|||||||||||
Settlements
|
(20
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(33
|
)
|
|
0
|
|
|
(53
|
)
|
|||||||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
206
|
|
(2)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
206
|
|
|||||||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||||||
Balance, end of period
|
$
|
338
|
|
|
$
|
420
|
|
|
$
|
418
|
|
|
$
|
1,024
|
|
|
$
|
986
|
|
|
$
|
215
|
|
|
$
|
4
|
|
|
$
|
29
|
|
|
$
|
(172
|
)
|
|
$
|
(65
|
)
|
|
$
|
3,197
|
|
Changes in unrealized gains (losses) relating
to Level 3 assets and liabilities still held at the end of the period included in realized investment gains (losses) |
$
|
(3
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(1
|
)
|
|
$
|
(61
|
)
|
|
$
|
65
|
|
|
$
|
0
|
|
2011
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Fixed Maturities
|
|
Perpetual
Securities |
|
Equity
Securities |
|
Derivatives
(1)
|
|
|
||||||||||||||||||||||||||||||||||||||
(In millions)
|
Mortgage-
and Asset- Backed Securities |
|
Public
Utilities |
|
Collateralized
Debt Obligations |
|
Sovereign
and Supranational |
|
Banks/
Financial Institutions |
|
Other
Corporate |
|
Banks/
Financial Institutions |
|
|
|
Interest
Rate Swaps |
|
Foreign
Currency Swaps |
|
Credit
Default Swaps |
|
Total
|
||||||||||||||||||||||||
Balance, beginning of period
|
$
|
267
|
|
|
$
|
0
|
|
|
$
|
5
|
|
|
$
|
0
|
|
|
$
|
386
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
4
|
|
|
$
|
0
|
|
|
$
|
241
|
|
|
$
|
(343
|
)
|
|
$
|
560
|
|
Realized investment gains
(losses) included in earnings |
(16
|
)
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(33
|
)
|
|
(160
|
)
|
|
(64
|
)
|
|
(274
|
)
|
||||||||||||
Unrealized gains (losses)
included in other comprehensive income (loss) |
18
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
15
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(33
|
)
|
|
0
|
|
|
0
|
|
||||||||||||
Purchases, issuances, sales
and settlements: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Purchases
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(6
|
)
|
|
0
|
|
|
(6
|
)
|
||||||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||||||||
Sales
|
0
|
|
|
0
|
|
|
(3
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
15
|
|
|
12
|
|
||||||||||||
Settlements
|
(10
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4
|
|
|
(8
|
)
|
|
262
|
|
|
248
|
|
||||||||||||
Transfers into Level 3
(2)
|
139
|
|
|
422
|
|
|
0
|
|
|
434
|
|
|
1,048
|
|
|
1,105
|
|
|
526
|
|
|
0
|
|
|
59
|
|
|
(90
|
)
|
|
0
|
|
|
3,643
|
|
||||||||||||
Transfers out of Level 3
(3)
|
(4
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(376
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(380
|
)
|
||||||||||||
Balance, end of period
|
$
|
394
|
|
|
$
|
422
|
|
|
$
|
0
|
|
|
$
|
434
|
|
|
$
|
1,074
|
|
|
$
|
1,105
|
|
|
$
|
526
|
|
|
$
|
4
|
|
|
$
|
30
|
|
|
$
|
(56
|
)
|
|
$
|
(130
|
)
|
|
$
|
3,803
|
|
Changes in unrealized gains
(losses) relating to Level 3 assets and liabilities still held at the end of the period included in realized investment gains (losses) |
$
|
(16
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(33
|
)
|
|
$
|
(160
|
)
|
|
$
|
(64
|
)
|
|
$
|
(272
|
)
|
Interest Rates
|
|
Credit Spreads
|
|
Interest Rate Volatility
|
||||||||||||||||||||||||
Factor
Change |
|
Change in
fair value (in millions) |
|
Factor
change |
|
Change in
fair value (in millions) |
|
Factor
change |
|
Change in
fair value (in millions) |
||||||||||||||||||
|
+50 bps
|
|
|
|
$
|
(825
|
)
|
|
|
|
+50 bps
|
|
|
|
$
|
(820
|
)
|
|
|
|
+50 %
|
|
|
|
$
|
(12
|
)
|
|
|
-50 bps
|
|
|
|
864
|
|
|
|
|
-50 bps
|
|
|
|
843
|
|
|
|
|
-50 %
|
|
|
|
25
|
|
|
Interest Rates
|
|
Credit Spreads
|
|
Interest Rate Volatility
|
||||||||||||||||||||||||
Factor
Change |
|
Change in
fair value (in millions) |
|
Factor
change |
|
Change in
fair value (in millions) |
|
Factor
change |
|
Change in
fair value (in millions) |
||||||||||||||||||
|
+50 bps
|
|
|
|
$
|
(1,308
|
)
|
|
|
|
+50 bps
|
|
|
|
$
|
(1,223
|
)
|
|
|
|
+50 %
|
|
|
|
$
|
(110
|
)
|
|
|
-50 bps
|
|
|
|
1,287
|
|
|
|
|
-50 bps
|
|
|
|
1,203
|
|
|
|
|
-50 %
|
|
|
|
117
|
|
|
December 31, 2012
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Securities available for sale, carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Mortgage- and asset-backed securities
|
|
|
$
|
338
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(e)
|
Public utilities
|
|
|
420
|
|
|
|
Discounted cash flow
|
|
Historical volatility
|
|
7.36%
|
|
|
Sovereign and supranational
|
|
|
418
|
|
|
|
Discounted cash flow
|
|
Historical volatility
|
|
7.36%
|
|
|
Banks/financial institutions
|
|
|
444
|
|
|
|
Discounted cash flow
|
|
Historical volatility
|
|
7.36%
|
|
|
|
|
|
580
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(e)
|
|
Other corporate
|
|
|
575
|
|
|
|
Discounted cash flow
|
|
Historical volatility
|
|
7.36%
|
|
|
|
|
|
411
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(e)
|
|
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Banks/financial institutions
|
|
|
215
|
|
|
|
Discounted cash flow
|
|
Historical volatility
|
|
7.36%
|
|
|
Equity securities
|
|
|
4
|
|
|
|
Net asset value
|
|
Offered quotes
|
|
$2-$943 ($8)
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate swaps
|
|
|
32
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
49% - 50%
|
(a)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
91 - 152 bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
37.00%
|
|
||
Foreign currency swaps
|
|
|
51
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.84% - 2.84%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.84% - 2.05%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
12 - 117 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.65%
|
(d)
|
||
|
|
|
4
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.84% - 2.84%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.84% - 2.05%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
12 - 126 bps
|
|
||
|
|
|
102
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.84% - 2.84%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.84% - 2.05%
|
(c)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.65%
|
(d)
|
||
Credit default swaps
|
|
|
2
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
49% - 50%
|
(a)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
91 - 152 bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
37.00%
|
|
||
Total assets
|
|
|
$
|
3,596
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate swaps
|
|
|
$
|
3
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
49% - 50%
|
(a)
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
91 - 152 bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
37.00%
|
|
||
Foreign currency swaps
|
|
|
118
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.84% - 2.84%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.84% - 2.05%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
22 - 141 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.65%
|
(d)
|
||
|
|
|
60
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.84% - 2.84%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.84% - 2.05%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
25 - 186 bps
|
|
||
|
|
|
151
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.84% - 2.84%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.84% - 2.05%
|
(c)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.65%
|
(d)
|
||
Credit default swaps
|
|
|
67
|
|
|
|
Discounted cash flow
|
|
Base correlations
|
|
49% - 50%
|
(a)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
91 - 152 bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
37.00%
|
|
||
Total liabilities
|
|
|
$
|
399
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
||||||||||||||||||||
(In millions)
|
Japan
|
|
U.S.
|
|
Japan
|
|
U.S.
|
||||||||||||||||
Deferred policy acquisition costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of year
|
|
$
|
7,102
|
|
|
|
|
$
|
2,687
|
|
|
|
|
$
|
6,390
|
|
|
|
|
$
|
2,548
|
|
|
Capitalization
|
|
1,177
|
|
|
|
|
570
|
|
|
|
|
1,043
|
|
|
|
|
522
|
|
|
||||
Amortization
|
|
(716
|
)
|
|
|
|
(400
|
)
|
|
|
|
(650
|
)
|
|
|
|
(383
|
)
|
|
||||
Foreign currency translation and other
|
|
(762
|
)
|
|
|
|
0
|
|
|
|
|
319
|
|
|
|
|
0
|
|
|
||||
Balance, end of year
|
|
$
|
6,801
|
|
|
|
|
$
|
2,857
|
|
|
|
|
$
|
7,102
|
|
|
|
|
$
|
2,687
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Advertising expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
127
|
|
|
|
|
$
|
128
|
|
|
|
|
$
|
112
|
|
|
Aflac U.S.
|
|
127
|
|
|
|
|
130
|
|
|
|
|
116
|
|
|
|||
Total advertising expense
|
|
$
|
254
|
|
|
|
|
$
|
258
|
|
|
|
|
$
|
228
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Depreciation expense
|
|
$
|
60
|
|
|
|
|
$
|
59
|
|
|
|
|
$
|
60
|
|
|
Other amortization expense
|
|
7
|
|
|
|
|
5
|
|
|
|
|
22
|
|
|
|||
Total depreciation and other amortization expense
(1)
|
|
$
|
67
|
|
|
|
|
$
|
64
|
|
|
|
|
$
|
82
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Lease and rental expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
71
|
|
|
|
|
$
|
73
|
|
|
|
|
$
|
68
|
|
|
Aflac U.S.
|
|
9
|
|
|
|
|
8
|
|
|
|
|
8
|
|
|
|||
Other
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|||
Total lease and rental expense
|
|
$
|
81
|
|
|
|
|
$
|
82
|
|
|
|
|
$
|
77
|
|
|
|
|
|
Liability Amounts
|
|
|
Interest Rates
|
||||||||||
(In millions)
|
Policy
Issue Year |
|
2012
|
|
2011
|
|
|
Year of
Issue |
|
In 20
Years |
||||||
Health insurance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Japan:
|
1974 - 2012
|
|
$
|
7,142
|
|
|
$
|
2,441
|
|
|
|
1.5 - 2.75
|
%
|
|
1.5 - 2.75
|
%
|
|
1998 - 2012
|
|
13,685
|
|
|
18,777
|
|
|
|
3.0
|
|
|
3.0
|
|
||
|
1997 - 1999
|
|
3,482
|
|
|
3,885
|
|
|
|
3.5
|
|
|
3.5
|
|
||
|
1994 - 1996
|
|
4,261
|
|
|
4,749
|
|
|
|
4.0 - 4.5
|
|
|
4.0 - 4.5
|
|
||
|
1987 - 1994
|
|
21,866
|
|
|
24,607
|
|
|
|
5.25 - 5.5
|
|
|
5.25 - 5.5
|
|
||
|
1978 - 1986
|
|
5,009
|
|
|
5,761
|
|
|
|
6.5 - 6.75
|
|
|
5.5
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S.:
|
2012
|
|
127
|
|
|
0
|
|
|
|
3.75
|
|
|
3.8
|
|
||
|
2005 - 2011
|
|
2,977
|
|
|
2,713
|
|
|
|
4.75 - 5.5
|
|
|
4.75 - 5.5
|
|
||
|
1998 - 2004
|
|
1,200
|
|
|
1,148
|
|
|
|
7.0
|
|
|
7.0
|
|
||
|
1988 - 2004
|
|
748
|
|
|
777
|
|
|
|
8.0
|
|
|
6.0
|
|
||
|
1986 - 2004
|
|
1,317
|
|
|
1,328
|
|
|
|
6.0
|
|
|
6.0
|
|
||
|
1985 - 1986
|
|
23
|
|
|
23
|
|
|
|
6.5
|
|
|
6.5
|
|
||
|
1981 - 1986
|
|
175
|
|
|
181
|
|
|
|
7.0
|
|
|
5.5
|
|
||
|
Other
|
|
23
|
|
|
24
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Life insurance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Japan:
|
2001 - 2012
|
|
2,238
|
|
|
1,501
|
|
|
|
1.65 - 1.85
|
|
|
1.65 - 1.85
|
|
||
|
2011 - 2012
|
|
733
|
|
|
122
|
|
|
|
2.0
|
|
|
2.0
|
|
||
|
2009 - 2011
|
|
1,374
|
|
|
823
|
|
|
|
2.25
|
|
|
2.25
|
|
||
|
2005 - 2011
|
|
1,231
|
|
|
1,079
|
|
|
|
2.5
|
|
|
2.5
|
|
||
|
1985 - 2006
|
|
2,791
|
|
|
0
|
|
|
|
2.7
|
|
|
2.25
|
|
||
|
2007 - 2011
|
|
1,049
|
|
|
896
|
|
|
|
2.75
|
|
|
2.75
|
|
||
|
1999 - 2011
|
|
2,547
|
|
|
5,795
|
|
|
|
3.0
|
|
|
3.0
|
|
||
|
1996 - 2009
|
|
872
|
|
|
962
|
|
|
|
3.5
|
|
|
3.5
|
|
||
|
1994 - 1996
|
|
1,250
|
|
|
1,395
|
|
|
|
4.0 - 4.5
|
|
|
4.0 - 4.5
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S.:
|
1956 - 2012
|
|
343
|
|
|
291
|
|
|
|
4.0 - 6.0
|
|
|
4.0 - 6.0
|
|
||
Total
|
|
|
76,463
|
|
|
79,278
|
|
|
|
|
|
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Unpaid supplemental health claims, beginning of year
|
|
$
|
3,749
|
|
|
|
|
$
|
3,524
|
|
|
|
|
$
|
3,105
|
|
|
Add claims incurred during the year related to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current year
|
|
8,013
|
|
|
|
|
7,703
|
|
|
|
|
7,262
|
|
|
|||
Prior years
|
|
(173
|
)
|
|
|
|
(256
|
)
|
|
|
|
(332
|
)
|
|
|||
Total incurred
|
|
7,840
|
|
|
|
|
7,447
|
|
|
|
|
6,930
|
|
|
|||
Less claims paid during the year on claims incurred during:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current year
|
|
5,453
|
|
|
|
|
5,401
|
|
|
|
|
5,003
|
|
|
|||
Prior years
|
|
2,082
|
|
|
|
|
1,944
|
|
|
|
|
1,787
|
|
|
|||
Total paid
|
|
7,535
|
|
|
|
|
7,345
|
|
|
|
|
6,790
|
|
|
|||
Effect of foreign exchange rate changes on unpaid claims
|
|
(283
|
)
|
|
|
|
123
|
|
|
|
|
279
|
|
|
|||
Reinsurance recoverables
|
|
10
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Unpaid supplemental health claims, end of year
|
|
3,781
|
|
|
|
|
3,749
|
|
|
|
|
3,524
|
|
|
|||
Unpaid life claims, end of year
|
|
253
|
|
|
|
|
232
|
|
|
|
|
195
|
|
|
|||
Total liability for unpaid policy claims
|
|
$
|
4,034
|
|
|
|
|
$
|
3,981
|
|
|
|
|
$
|
3,719
|
|
|
(In millions)
|
2012
|
|
|
2011
|
|
|
||
8.50% senior notes due May 2019
|
$
|
850
|
|
|
$
|
850
|
|
|
6.45% senior notes due August 2040
|
448
|
|
(1)
|
448
|
|
(1)
|
||
6.90% senior notes due December 2039
|
396
|
|
(2)
|
396
|
|
(2)
|
||
3.45% senior notes due August 2015
|
300
|
|
|
300
|
|
|
||
2.65% senior notes due February 2017
|
657
|
|
(3)
|
0
|
|
|
||
4.00% senior notes due February 2022
|
349
|
|
(4)
|
0
|
|
|
||
5.50% subordinated debentures due September 2052
|
500
|
|
|
0
|
|
|
||
Yen-denominated Uridashi notes:
|
|
|
|
|
||||
2.26% notes due September 2016 (principal amount 8 billion yen)
|
92
|
|
|
103
|
|
|
||
Yen-denominated Samurai notes:
|
|
|
|
|
||||
1.47% notes due July 2014 (principal amount 28.7 billion yen)
|
331
|
|
|
369
|
|
|
||
1.87% notes paid June 2012 (principal amount 26.6 billion yen)
|
0
|
|
|
342
|
|
|
||
1.84% notes due July 2016 (principal amount 15.8 billion yen)
|
182
|
|
|
203
|
|
|
||
Variable interest rate notes due July 2014 (1.34% in 2012 and
2011, principal amount 5.5 billion yen) |
64
|
|
|
71
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
||||
3.60% loan due July 2015 (principal amount 10 billion yen)
|
116
|
|
|
129
|
|
|
||
3.00% loan due August 2015 (principal amount 5 billion yen)
|
58
|
|
|
64
|
|
|
||
Capitalized lease obligations payable through 2022
|
9
|
|
|
10
|
|
|
||
Total notes payable
|
$
|
4,352
|
|
|
$
|
3,285
|
|
|
(In millions)
|
Long-term
Debt |
|
Capitalized
Lease Obligations |
|
Total
Notes Payable |
||||||||||||
2013
|
|
$
|
0
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
3
|
|
|
2014
|
|
395
|
|
|
|
|
2
|
|
|
|
|
397
|
|
|
|||
2015
|
|
474
|
|
|
|
|
2
|
|
|
|
|
476
|
|
|
|||
2016
|
|
274
|
|
|
|
|
1
|
|
|
|
|
275
|
|
|
|||
2017
|
|
650
|
|
|
|
|
1
|
|
|
|
|
651
|
|
|
|||
Thereafter
|
|
2,550
|
|
|
|
|
0
|
|
|
|
|
2,550
|
|
|
|||
Total
|
|
$
|
4,343
|
|
|
|
|
$
|
9
|
|
|
|
|
$
|
4,352
|
|
|
(In millions)
|
Japan
|
|
U.S.
|
|
Total
|
||||||||||||
2012:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
513
|
|
|
|
|
$
|
303
|
|
|
|
|
$
|
816
|
|
|
Deferred
|
|
950
|
|
|
|
|
(330
|
)
|
|
|
|
620
|
|
|
|||
Total income tax expense
|
|
$
|
1,463
|
|
|
|
|
$
|
(27
|
)
|
|
|
|
$
|
1,436
|
|
|
2011:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
358
|
|
|
|
|
$
|
533
|
|
|
|
|
$
|
891
|
|
|
Deferred
|
|
(301
|
)
|
|
|
|
423
|
|
|
|
|
122
|
|
|
|||
Total income tax expense
|
|
$
|
57
|
|
|
|
|
$
|
956
|
|
|
|
|
$
|
1,013
|
|
|
2010:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
513
|
|
|
|
|
$
|
349
|
|
|
|
|
$
|
862
|
|
|
Deferred
|
|
538
|
|
|
|
|
(167
|
)
|
|
|
|
371
|
|
|
|||
Total income tax expense
|
|
$
|
1,051
|
|
|
|
|
$
|
182
|
|
|
|
|
$
|
1,233
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Income taxes based on U.S. statutory rates
|
|
$
|
1,506
|
|
|
|
|
$
|
1,032
|
|
|
|
|
$
|
1,247
|
|
|
Utilization of foreign tax credit
|
|
(53
|
)
|
|
|
|
(36
|
)
|
|
|
|
(31
|
)
|
|
|||
Nondeductible expenses
|
|
8
|
|
|
|
|
10
|
|
|
|
|
10
|
|
|
|||
Other, net
|
|
(25
|
)
|
|
|
|
7
|
|
|
|
|
7
|
|
|
|||
Income tax expense
|
|
$
|
1,436
|
|
|
|
|
$
|
1,013
|
|
|
|
|
$
|
1,233
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Statements of earnings
|
|
$
|
1,436
|
|
|
|
|
$
|
1,013
|
|
|
|
|
$
|
1,233
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses) during period
|
|
363
|
|
|
|
|
(185
|
)
|
|
|
|
(339
|
)
|
|
|||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on investment
securities during period |
|
904
|
|
|
|
|
1,016
|
|
|
|
|
447
|
|
|
|||
Reclassification adjustment for realized (gains) losses
on investment securities included in net earnings |
|
(174
|
)
|
|
|
|
(404
|
)
|
|
|
|
(147
|
)
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
(8
|
)
|
|
|
|
(12
|
)
|
|
|
|
18
|
|
|
|||
Pension liability adjustment during period
|
|
(7
|
)
|
|
|
|
(23
|
)
|
|
|
|
(11
|
)
|
|
|||
Total income tax expense (benefit) related to items of
other comprehensive income (loss) |
|
1,078
|
|
|
|
|
392
|
|
|
|
|
(32
|
)
|
|
|||
Additional paid-in capital (exercise of stock options)
|
|
(12
|
)
|
|
|
|
(7
|
)
|
|
|
|
(31
|
)
|
|
|||
Cumulative effect of change in accounting principle
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(89
|
)
|
|
|||
Total income taxes
|
|
$
|
2,502
|
|
|
|
|
$
|
1,398
|
|
|
|
|
$
|
1,081
|
|
|
(In millions)
|
2012
|
|
2011
|
||||||||
Deferred income tax liabilities:
|
|
|
|
|
|
|
|
||||
Deferred policy acquisition costs
|
|
$
|
2,731
|
|
|
|
|
$
|
2,799
|
|
|
Unrealized gains on investment securities
|
|
1,522
|
|
|
|
|
397
|
|
|
||
Policyholder protection corporation obligation
|
|
10
|
|
|
|
|
0
|
|
|
||
Difference in tax basis of investment in Aflac Japan
|
|
288
|
|
|
|
|
0
|
|
|
||
Premiums receivable
|
|
164
|
|
|
|
|
153
|
|
|
||
Policy benefit reserves
|
|
1,995
|
|
|
|
|
1,896
|
|
|
||
Total deferred income tax liabilities
|
|
6,710
|
|
|
|
|
5,245
|
|
|
||
Deferred income tax assets:
|
|
|
|
|
|
|
|
||||
Depreciation
|
|
124
|
|
|
|
|
134
|
|
|
||
Policyholder protection corporation obligation
|
|
0
|
|
|
|
|
5
|
|
|
||
Difference in tax basis of investment in Aflac Japan
|
|
0
|
|
|
|
|
47
|
|
|
||
Other basis differences in investment securities
|
|
1,471
|
|
|
|
|
1,363
|
|
|
||
Unfunded retirement benefits
|
|
45
|
|
|
|
|
44
|
|
|
||
Other accrued expenses
|
|
60
|
|
|
|
|
64
|
|
|
||
Policy and contract claims
|
|
67
|
|
|
|
|
106
|
|
|
||
Unrealized exchange loss on yen-denominated notes payable
|
|
36
|
|
|
|
|
124
|
|
|
||
Deferred compensation
|
|
203
|
|
|
|
|
201
|
|
|
||
Capital loss carryforwards
|
|
716
|
|
|
|
|
784
|
|
|
||
Other
|
|
438
|
|
|
|
|
405
|
|
|
||
Total deferred income tax assets
|
|
3,160
|
|
|
|
|
3,277
|
|
|
||
Net deferred income tax liability
|
|
3,550
|
|
|
|
|
1,968
|
|
|
||
Current income tax liability
|
|
308
|
|
|
|
|
340
|
|
|
||
Total income tax liability
|
|
$
|
3,858
|
|
|
|
|
$
|
2,308
|
|
|
(In millions)
|
|
2012
|
|
|
2011
|
|
||||
Balance, beginning of year
|
|
$
|
31
|
|
(1)
|
|
$
|
24
|
|
(1)
|
Additions for tax positions of prior years
|
|
7
|
|
|
|
7
|
|
|
||
Settlements
|
|
(3
|
)
|
|
|
0
|
|
|
||
Reductions for tax positions of prior years
|
|
(14
|
)
|
|
|
0
|
|
|
||
Balance, end of year
|
|
$
|
21
|
|
(1)
|
|
$
|
31
|
|
(1)
|
10.
|
SHAREHOLDERS' EQUITY
|
(In thousands of shares)
|
2012
|
|
2011
|
|
2010
|
Common stock - issued:
|
|
|
|
|
|
Balance, beginning of period
|
663,639
|
|
662,660
|
|
661,209
|
Exercise of stock options and issuance of restricted shares
|
1,600
|
|
979
|
|
1,451
|
Balance, end of period
|
665,239
|
|
663,639
|
|
662,660
|
Treasury stock:
|
|
|
|
|
|
Balance, beginning of period
|
197,329
|
|
192,999
|
|
192,641
|
Purchases of treasury stock:
|
|
|
|
|
|
Open market
|
1,948
|
|
6,000
|
|
2,000
|
Other
|
360
|
|
182
|
|
192
|
Dispositions of treasury stock:
|
|
|
|
|
|
Shares issued to AFL Stock Plan
|
(1,670)
|
|
(1,690)
|
|
0
|
Exercise of stock options
|
(387)
|
|
(88)
|
|
(1,752)
|
Other
|
(127)
|
|
(74)
|
|
(82)
|
Balance, end of period
|
197,453
|
|
197,329
|
|
192,999
|
Shares outstanding, end of period
|
467,786
|
|
466,310
|
|
469,661
|
(In thousands)
|
2012
|
|
2011
|
|
2010
|
|||||||||
Anti-dilutive share-based awards
|
|
5,880
|
|
|
|
|
6,145
|
|
|
|
|
3,252
|
|
|
(In thousands of shares)
|
2012
|
|
2011
|
|
2010
|
|||
Weighted-average outstanding shares used for calculating basic EPS
|
466,868
|
|
|
466,519
|
|
|
469,038
|
|
Dilutive effect of share-based awards
|
2,419
|
|
|
2,851
|
|
|
4,047
|
|
Weighted-average outstanding shares used for calculating diluted EPS
|
469,287
|
|
|
469,370
|
|
|
473,085
|
|
(In millions, except for per-share amounts)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Impact on earnings from continuing operations
|
|
$
|
37
|
|
|
|
|
$
|
39
|
|
|
|
|
$
|
39
|
|
|
Impact on earnings before income taxes
|
|
37
|
|
|
|
|
39
|
|
|
|
|
39
|
|
|
|||
Impact on net earnings
|
|
26
|
|
|
|
|
27
|
|
|
|
|
27
|
|
|
|||
Impact on net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
.06
|
|
|
|
|
$
|
.06
|
|
|
|
|
$
|
.06
|
|
|
Diluted
|
|
.06
|
|
|
|
|
.06
|
|
|
|
|
.06
|
|
|
|
2012
|
|
2011
|
|
2010
|
||||||
Expected term (years)
|
|
6.5
|
|
|
|
6.9
|
|
|
|
6.9
|
|
Expected volatility
|
|
38.0
|
%
|
|
|
30.0
|
%
|
|
|
36.0
|
%
|
Annual forfeiture rate
|
|
1.6
|
|
|
|
1.6
|
|
|
|
1.8
|
|
Risk-free interest rate
|
|
2.1
|
|
|
|
3.4
|
|
|
|
3.1
|
|
Dividend yield
|
|
1.3
|
|
|
|
1.3
|
|
|
|
1.3
|
|
(In thousands of shares)
|
Stock
Option Shares |
|
Weighted-Average
Exercise Price Per Share |
|||||||
Outstanding at December 31, 2009
|
|
16,417
|
|
|
|
|
$
|
37.89
|
|
|
Granted in 2010
|
|
1,342
|
|
|
|
|
48.41
|
|
|
|
Canceled in 2010
|
|
(187
|
)
|
|
|
|
36.77
|
|
|
|
Exercised in 2010
|
|
(3,066
|
)
|
|
|
|
27.55
|
|
|
|
Outstanding at December 31, 2010
|
|
14,506
|
|
|
|
|
41.06
|
|
|
|
Granted in 2011
|
|
1,216
|
|
|
|
|
52.32
|
|
|
|
Canceled in 2011
|
|
(151
|
)
|
|
|
|
41.43
|
|
|
|
Exercised in 2011
|
|
(1,008
|
)
|
|
|
|
30.00
|
|
|
|
Outstanding at December 31, 2011
|
|
14,563
|
|
|
|
|
42.76
|
|
|
|
Granted in 2012
|
|
784
|
|
|
|
|
47.25
|
|
|
|
Canceled in 2012
|
|
(134
|
)
|
|
|
|
48.59
|
|
|
|
Exercised in 2012
|
|
(2,476
|
)
|
|
|
|
32.27
|
|
|
|
Outstanding at December 31, 2012
|
|
12,737
|
|
|
|
|
$
|
45.00
|
|
|
(In thousands of shares)
|
2012
|
|
2011
|
|
2010
|
|||||||||
Shares exercisable, end of year
|
|
10,635
|
|
|
|
|
11,246
|
|
|
|
|
10,720
|
|
|
(In thousands of shares)
|
|
|
Options Outstanding
|
|
Options Exercisable
|
|||||||||||||||||||||||||||||
|
Range of
Exercise Prices Per Share |
|
|
Stock Option
Shares Outstanding |
|
Wgtd.-Avg.
Remaining Contractual Life (Yrs.) |
|
Wgtd.-Avg.
Exercise Price Per Share |
|
Stock Option
Shares Exercisable |
|
Wgtd.-Avg.
Exercise Price Per Share |
||||||||||||||||||||||
|
$
|
14.99
|
|
-
|
$
|
39.61
|
|
|
|
|
2,593
|
|
|
|
|
4.1
|
|
|
|
$
|
31.29
|
|
|
|
|
2,529
|
|
|
|
|
$
|
31.15
|
|
|
|
39.73
|
|
-
|
43.07
|
|
|
|
|
2,599
|
|
|
|
|
3.1
|
|
|
|
41.11
|
|
|
|
|
2,442
|
|
|
|
|
41.11
|
|
|
||||
|
43.28
|
|
-
|
47.25
|
|
|
|
|
3,169
|
|
|
|
|
4.7
|
|
|
|
45.74
|
|
|
|
|
2,424
|
|
|
|
|
45.45
|
|
|
||||
|
47.33
|
|
-
|
57.90
|
|
|
|
|
3,169
|
|
|
|
|
6.6
|
|
|
|
52.16
|
|
|
|
|
2,033
|
|
|
|
|
51.60
|
|
|
||||
|
61.81
|
|
-
|
67.67
|
|
|
|
|
1,207
|
|
|
|
|
5.1
|
|
|
|
62.08
|
|
|
|
|
1,207
|
|
|
|
|
62.08
|
|
|
||||
|
$
|
14.99
|
|
-
|
$
|
67.67
|
|
|
|
|
12,737
|
|
|
|
|
4.8
|
|
|
|
$
|
45.00
|
|
|
|
|
10,635
|
|
|
|
|
$
|
44.11
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Total intrinsic value of options exercised
|
|
$
|
41
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
68
|
|
|
Cash received from options exercised
|
|
35
|
|
|
|
|
18
|
|
|
|
|
73
|
|
|
|||
Tax benefit realized as a result of options exercised and
restricted stock releases |
|
24
|
|
|
|
|
14
|
|
|
|
|
30
|
|
|
(In thousands of shares)
|
Shares
|
|
Weighted-Average
Grant-Date Fair Value Per Share |
|||||||
Restricted stock at December 31, 2009
|
|
1,219
|
|
|
|
|
$
|
39.81
|
|
|
Granted in 2010
|
|
468
|
|
|
|
|
47.53
|
|
|
|
Canceled in 2010
|
|
(41
|
)
|
|
|
|
41.31
|
|
|
|
Vested in 2010
|
|
(372
|
)
|
|
|
|
47.80
|
|
|
|
Restricted stock at December 31, 2010
|
|
1,274
|
|
|
|
|
40.26
|
|
|
|
Granted in 2011
|
|
405
|
|
|
|
|
56.22
|
|
|
|
Canceled in 2011
|
|
(35
|
)
|
|
|
|
42.44
|
|
|
|
Vested in 2011
|
|
(294
|
)
|
|
|
|
59.02
|
|
|
|
Restricted stock at December 31, 2011
|
|
1,350
|
|
|
|
|
40.92
|
|
|
|
Granted in 2012
|
|
637
|
|
|
|
|
48.18
|
|
|
|
Canceled in 2012
|
|
(56
|
)
|
|
|
|
48.22
|
|
|
|
Vested in 2012
|
|
(568
|
)
|
|
|
|
26.13
|
|
|
|
Restricted stock at December 31, 2012
|
|
1,363
|
|
|
|
|
$
|
50.19
|
|
|
•
|
Aflac has reported as admitted assets the refundable lease deposits on the leases of commercial office space which house Aflac Japan's sales operations. These lease deposits are unique and part of the ordinary course of doing business in the country of Japan; these assets would be non-admitted under SAP.
|
•
|
Aflac utilized book value accounting for certain guaranteed separate account funding agreements instead of fair value accounting as required by SAP. The underlying separate account assets had an unrealized gain of
$46 million
as of
December 31, 2012
, compared with an unrealized gain of
$45 million
as of
December 31, 2011
.
|
(In millions)
|
2012
|
|
2011
|
||||||||
Capital and surplus, Nebraska state basis
|
|
$
|
8,892
|
|
|
|
|
$
|
6,371
|
|
|
State Permitted Practice:
|
|
|
|
|
|
|
|
||||
Refundable lease deposits – Japan
|
|
(49
|
)
|
|
|
|
(53
|
)
|
|
||
Separate Account Funding Agreements
|
|
46
|
|
|
|
|
45
|
|
|
||
Capital and surplus, NAIC basis
|
|
$
|
8,889
|
|
|
|
|
$
|
6,363
|
|
|
|
In Dollars
|
|
In Yen
|
|||||||||||||||||||||||||||||
(In millions of dollars and billions of yen)
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
|||||||||||||||||||||
Profit repatriation
|
|
$
|
422
|
|
|
|
|
$
|
143
|
|
|
|
|
$
|
317
|
|
|
|
|
33.1
|
|
|
|
|
11.0
|
|
|
|
|
28.7
|
|
|
|
|
Pension Benefits
|
|
Other
|
|||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
|||||||||||||||||||||||||||
(In millions)
|
|
2012
|
2011
|
|
2012
|
2011
|
|
2012
|
2011
|
||||||||||||||||||||||||
Projected benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation, beginning of year
|
|
|
$
|
329
|
|
|
|
$
|
297
|
|
|
|
|
$
|
525
|
|
|
|
$
|
454
|
|
|
|
|
$
|
83
|
|
|
|
$
|
67
|
|
|
Service cost
|
|
|
18
|
|
|
|
17
|
|
|
|
|
18
|
|
|
|
14
|
|
|
|
|
6
|
|
|
|
4
|
|
|
||||||
Interest cost
|
|
|
7
|
|
|
|
12
|
|
|
|
|
24
|
|
|
|
28
|
|
|
|
|
4
|
|
|
|
3
|
|
|
||||||
Plan amendments
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
2
|
|
|
|
0
|
|
|
||||||
Actuarial (gain) loss
|
|
|
3
|
|
|
|
0
|
|
|
|
|
60
|
|
|
|
42
|
|
|
|
|
5
|
|
|
|
10
|
|
|
||||||
Benefits and expenses paid
|
|
|
(8
|
)
|
|
|
(10
|
)
|
|
|
|
(14
|
)
|
|
|
(13
|
)
|
|
|
|
(2
|
)
|
|
|
(1
|
)
|
|
||||||
Effect of foreign exchange
rate changes |
|
|
(36
|
)
|
|
|
13
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Benefit obligation, end of year
|
|
|
313
|
|
|
|
329
|
|
|
|
|
613
|
|
|
|
525
|
|
|
|
|
98
|
|
|
|
83
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets,
beginning of year |
|
|
171
|
|
|
|
147
|
|
|
|
|
224
|
|
|
|
209
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Actual return on plan assets
|
|
|
17
|
|
|
|
(2
|
)
|
|
|
|
31
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Employer contributions
|
|
|
27
|
|
|
|
29
|
|
|
|
|
20
|
|
|
|
28
|
|
|
|
|
2
|
|
|
|
1
|
|
|
||||||
Benefits and expenses paid
|
|
|
(8
|
)
|
|
|
(10
|
)
|
|
|
|
(14
|
)
|
|
|
(13
|
)
|
|
|
|
(2
|
)
|
|
|
(1
|
)
|
|
||||||
Effect of foreign exchange
rate changes |
|
|
(20
|
)
|
|
|
7
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Fair value of plan assets, end of year
|
|
|
187
|
|
|
|
171
|
|
|
|
|
261
|
|
|
|
224
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Funded status of the plans
(1)
|
|
|
$
|
(126
|
)
|
|
|
$
|
(158
|
)
|
|
|
|
$
|
(352
|
)
|
|
|
$
|
(301
|
)
|
|
|
|
$
|
(98
|
)
|
|
|
$
|
(83
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in accumulated other
comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial (gain) loss
|
|
|
$
|
57
|
|
|
|
$
|
77
|
|
|
|
|
$
|
185
|
|
|
|
$
|
151
|
|
|
|
|
$
|
34
|
|
|
|
$
|
30
|
|
|
Prior service (credit) cost
|
|
|
(3
|
)
|
|
|
(4
|
)
|
|
|
|
0
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
0
|
|
|
||||||
Transition obligation
|
|
|
1
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Total included in accumulated
other comprehensive income |
|
|
$
|
55
|
|
|
|
$
|
74
|
|
|
|
|
$
|
185
|
|
|
|
$
|
152
|
|
|
|
|
$
|
36
|
|
|
|
$
|
30
|
|
|
Accumulated benefit obligation
|
|
|
$
|
276
|
|
|
|
$
|
295
|
|
|
|
|
$
|
516
|
|
|
|
$
|
448
|
|
|
|
|
N/A
|
|
(2)
|
|
N/A
|
|
(2)
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||
|
Japan
|
|
|
U.S.
|
|
|
Postretirement Benefits
|
||||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
|
2012
|
|
2011
|
|
2010
|
|
|
2012
|
|
2011
|
|
2010
|
|
|||||||||
Weighted-average actuarial assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Discount rate - net periodic benefit cost
|
2.25
|
%
|
|
2.25
|
%
|
|
2.50
|
%
|
|
|
4.75
|
%
|
|
5.50
|
%
|
|
5.75
|
%
|
|
|
4.75
|
%
|
|
5.50
|
%
|
|
5.75
|
%
|
|
Discount rate - benefit obligations
|
2.25
|
|
|
2.25
|
|
|
2.25
|
|
|
|
4.25
|
|
|
4.75
|
|
|
5.50
|
|
|
|
4.25
|
|
|
4.75
|
|
|
5.50
|
|
|
Expected long-term return on plan assets
|
2.50
|
|
|
2.50
|
|
|
2.50
|
|
|
|
7.50
|
|
|
7.50
|
|
|
7.50
|
|
|
|
N/A
|
(1)
|
N/A
|
(1)
|
N/A
|
(1)
|
|||
Rate of compensation increase
|
N/A
|
(1)
|
N/A
|
(1)
|
N/A
|
(1)
|
|
4.00
|
|
|
4.00
|
|
|
4.00
|
|
|
|
N/A
|
(1)
|
N/A
|
(1)
|
N/A
|
(1)
|
||||||
Health care cost trend rates
|
N/A
|
(1)
|
N/A
|
(1)
|
N/A
|
(1)
|
|
N/A
|
(1)
|
N/A
|
(1)
|
N/A
|
(1)
|
|
5.70
|
|
(2)
|
7.30
|
|
(2)
|
7.50
|
|
(2)
|
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
Japan
|
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||||||||||||||||||
(In millions)
|
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||||||||||||||||||||||||||
Service cost
|
|
|
$
|
18
|
|
|
|
|
$
|
17
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
18
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
13
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
4
|
|
|
|
|
$
|
3
|
|
|
Interest cost
|
|
|
7
|
|
|
|
|
12
|
|
|
|
|
12
|
|
|
|
|
24
|
|
|
|
|
28
|
|
|
|
|
26
|
|
|
|
|
4
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|||||||||
Expected return on plan
assets |
|
|
(4
|
)
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
|
|
|
(16
|
)
|
|
|
|
(14
|
)
|
|
|
|
(12
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||||||||
Amortization of net actuarial
loss |
|
|
3
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
11
|
|
|
|
|
6
|
|
|
|
|
5
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|||||||||
Net periodic (benefit) cost
|
|
|
$
|
24
|
|
|
|
|
$
|
28
|
|
|
|
|
$
|
25
|
|
|
|
|
$
|
37
|
|
|
|
|
$
|
34
|
|
|
|
|
$
|
32
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
7
|
|
|
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||||||||||||||||||||
(In millions)
|
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain)
|
|
|
$
|
(10
|
)
|
|
|
|
$
|
5
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
45
|
|
|
|
|
$
|
57
|
|
|
|
|
$
|
13
|
|
|
|
|
$
|
5
|
|
|
|
|
$
|
10
|
|
|
|
|
$
|
8
|
|
|
Amortization of net actuarial loss
|
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
(11
|
)
|
|
|
|
(6
|
)
|
|
|
|
(5
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|||||||||
Prior service cost (credit)
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||||||||
Total
|
|
|
$
|
(13
|
)
|
|
|
|
$
|
2
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
33
|
|
|
|
|
$
|
51
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
9
|
|
|
|
|
$
|
7
|
|
|
|
|
Pension Benefits
|
|
Other
|
|||||||||||||
(In millions)
|
|
Japan
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||
2013
|
|
|
$
|
10
|
|
|
|
$
|
19
|
|
|
|
|
$
|
2
|
|
|
2014
|
|
|
8
|
|
|
|
20
|
|
|
|
|
2
|
|
|
|||
2015
|
|
|
9
|
|
|
|
21
|
|
|
|
|
3
|
|
|
|||
2016
|
|
|
10
|
|
|
|
28
|
|
|
|
|
3
|
|
|
|||
2017
|
|
|
10
|
|
|
|
29
|
|
|
|
|
4
|
|
|
|||
2018-2022
|
|
|
68
|
|
|
|
171
|
|
|
|
|
25
|
|
|
|
|
Japan Pension
|
|
U.S. Pension
|
||||||
Domestic equities
|
|
|
7
|
%
|
|
|
|
43
|
%
|
|
International equities
|
|
|
19
|
|
|
|
|
22
|
|
|
Fixed income securities
|
|
|
59
|
|
|
|
|
35
|
|
|
Other
|
|
|
15
|
|
|
|
|
0
|
|
|
Total
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
(In millions)
|
2012
|
|
2011
|
||||||||
Japan pension plan assets:
|
|
|
|
|
|
|
|
||||
Equities:
|
|
|
|
|
|
|
|
||||
Japanese equity securities
|
|
$
|
15
|
|
|
|
|
$
|
11
|
|
|
International equity securities
|
|
42
|
|
|
|
|
34
|
|
|
||
Fixed income securities:
|
|
|
|
|
|
|
|
||||
Japanese bonds
|
|
62
|
|
|
|
|
60
|
|
|
||
International bonds
|
|
44
|
|
|
|
|
42
|
|
|
||
Insurance contracts
|
|
24
|
|
|
|
|
24
|
|
|
||
Total
|
|
$
|
187
|
|
|
|
|
$
|
171
|
|
|
(In millions)
|
2012
|
|
2011
|
||||||||
U.S. pension plan assets:
|
|
|
|
|
|
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
||||
Large cap equity funds
|
|
$
|
87
|
|
|
|
|
$
|
77
|
|
|
Mid cap equity funds
|
|
16
|
|
|
|
|
13
|
|
|
||
Real estate equity funds
|
|
8
|
|
|
|
|
7
|
|
|
||
International equity funds
|
|
59
|
|
|
|
|
45
|
|
|
||
Fixed income bond funds
|
|
88
|
|
|
|
|
79
|
|
|
||
Aflac Incorporated common stock
|
|
3
|
|
|
|
|
3
|
|
|
||
Total
|
|
$
|
261
|
|
|
|
|
$
|
224
|
|
|
(In millions)
|
|
||
2013
|
$
|
61
|
|
2014
|
24
|
|
|
2015
|
15
|
|
|
2016
|
15
|
|
|
2017
|
12
|
|
|
Thereafter
|
4
|
|
|
Total future minimum lease payments
|
$
|
131
|
|
(In millions, except for per-share amounts)
|
March 31,
2012 |
|
June 30,
2012 |
|
September 30,
2012 |
|
December 31,
2012 |
||||||||||||||||
Premium income
|
|
$
|
5,378
|
|
|
|
|
$
|
5,467
|
|
|
|
|
$
|
5,660
|
|
|
|
|
$
|
5,643
|
|
|
Net investment income
|
|
882
|
|
|
|
|
845
|
|
|
|
|
869
|
|
|
|
|
876
|
|
|
||||
Realized investment gains (losses)
|
|
(45
|
)
|
|
|
|
(418
|
)
|
|
|
|
286
|
|
|
|
|
(171
|
)
|
|
||||
Other income
|
|
25
|
|
|
|
|
8
|
|
|
|
|
32
|
|
|
|
|
27
|
|
|
||||
Total revenues
|
|
6,240
|
|
|
|
|
5,902
|
|
|
|
|
6,847
|
|
|
|
|
6,375
|
|
|
||||
Total benefits and expenses
|
|
5,038
|
|
|
|
|
5,161
|
|
|
|
|
5,367
|
|
|
|
|
5,495
|
|
|
||||
Earnings before income taxes
|
|
1,202
|
|
|
|
|
741
|
|
|
|
|
1,480
|
|
|
|
|
880
|
|
|
||||
Total income tax
|
|
417
|
|
|
|
|
258
|
|
|
|
|
463
|
|
|
|
|
299
|
|
|
||||
Net earnings
|
|
$
|
785
|
|
|
|
|
$
|
483
|
|
|
|
|
$
|
1,017
|
|
|
|
|
$
|
581
|
|
|
Net earnings per basic share
|
|
$
|
1.68
|
|
|
|
|
$
|
1.04
|
|
|
|
|
$
|
2.17
|
|
|
|
|
$
|
1.24
|
|
|
Net earnings per diluted share
|
|
1.68
|
|
|
|
|
1.03
|
|
|
|
|
2.16
|
|
|
|
|
1.24
|
|
|
||||
Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding.
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(In millions, except for per-share amounts)
|
March 31,
2011 |
|
June 30,
2011 |
|
September 30,
2011 |
|
December 31,
2011 |
||||||||||||||||
Premium income
|
|
$
|
4,872
|
|
|
|
|
$
|
4,956
|
|
|
|
|
$
|
5,210
|
|
|
|
|
$
|
5,324
|
|
|
Net investment income
|
|
794
|
|
|
|
|
784
|
|
|
|
|
843
|
|
|
|
|
858
|
|
|
||||
Realized investment gains (losses)
|
|
(579
|
)
|
|
|
|
(668
|
)
|
|
|
|
(83
|
)
|
|
|
|
(223
|
)
|
|
||||
Other income
|
|
30
|
|
|
|
|
16
|
|
|
|
|
17
|
|
|
|
|
20
|
|
|
||||
Total revenues
|
|
5,117
|
|
|
|
|
5,088
|
|
|
|
|
5,987
|
|
|
|
|
5,979
|
|
|
||||
Total benefits and expenses
|
|
4,526
|
|
|
|
|
4,644
|
|
|
|
|
4,895
|
|
|
|
|
5,157
|
|
|
||||
Earnings before income taxes
|
|
591
|
|
|
|
|
444
|
|
|
|
|
1,092
|
|
|
|
|
822
|
|
|
||||
Total income tax
|
|
202
|
|
|
|
|
170
|
|
|
|
|
356
|
|
|
|
|
284
|
|
|
||||
Net earnings
|
|
$
|
389
|
|
|
|
|
$
|
274
|
|
|
|
|
$
|
736
|
|
|
|
|
$
|
538
|
|
|
Net earnings per basic share
|
|
$
|
.83
|
|
|
|
|
$
|
.59
|
|
|
|
|
$
|
1.58
|
|
|
|
|
$
|
1.16
|
|
|
Net earnings per diluted share
|
|
.83
|
|
|
|
|
.58
|
|
|
|
|
1.57
|
|
|
|
|
1.15
|
|
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
Director Compensation; The Compensation Committee; Compensation Committee Report; Compensation Discussion and Analysis; 2012 Summary Compensation Table; 2012 Grants of Plan-Based Awards; 2012 Outstanding Equity Awards at Fiscal Year-End; 2012 Option Exercises and Stock Vested; Pension Benefits; Nonqualified Deferred Compensation; Potential Payments Upon Termination or Change-In-Control; and Compensation Committee Interlocks and Insider Participation
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Principal Shareholders; 1. Election of Directors; Security Ownership of Management; and Equity Compensation Plan Information
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
Related Person Transactions; and Director Independence
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
3. Ratification of Appointment of Independent Registered Public Accounting Firm; and The Audit Committee
|
•
|
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
|
•
|
have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
|
•
|
may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and
|
•
|
were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.
|
(b)
|
EXHIBIT INDEX
(1)
|
|||
|
3.0
|
-
|
|
Articles of Incorporation, as amended – incorporated by reference from Form 10-Q for June 30, 2008, Exhibit 3.0 (File No. 001-07434).
|
|
3.1
|
-
|
|
Bylaws of the Corporation, as amended – incorporated by reference from Form 10-Q for March 31, 2010, Exhibit 3.1 (File No. 001-07434).
|
|
4.0
|
-
|
|
There are no instruments with respect to long-term debt not being registered in which the total amount of securities authorized exceeds 10% of the total assets of Aflac Incorporated and its subsidiaries on a consolidated basis. We agree to furnish a copy of any long-term debt instrument to the Securities and Exchange Commission upon request.
|
|
4.1
|
-
|
|
Indenture, dated as of May 21, 2009, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee – incorporated by reference from Form 8-K dated May 21, 2009, Exhibit 4.1 (File No. 001-07434).
|
|
4.2
|
-
|
|
First Supplemental Indenture, dated as of May 21, 2009, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 8.500% Senior Note due 2019) – incorporated by reference from Form 8-K dated May 21, 2009, Exhibit 4.2 (File No. 001-07434).
|
|
4.3
|
-
|
|
Second Supplemental Indenture, dated as of December 17, 2009, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 6.900% Senior Note due 2039) – incorporated by reference from Form 8-K dated December 14, 2009, Exhibit 4.1 (File No. 001-07434).
|
|
4.4
|
-
|
|
Third Supplemental Indenture, dated as of August 9, 2010, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 6.45% Senior Note due 2040) - incorporated by reference from Form 8-K dated August 4, 2010, Exhibit 4.1 (File No. 001-07434).
|
|
4.5
|
-
|
|
Fourth Supplemental Indenture, dated as of August 9, 2010, between Aflac Incorporated and The Bank of New York and Mellon Trust Company, N.A., as trustee (including the form of 3.45% Senior Note due 2015) – incorporated by reference from Form 8-K dated August 4, 2010, Exhibit 4.2 (File No. 001-07434).
|
|
4.6
|
-
|
|
Fifth Supplemental Indenture, dated as of February 10, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 2.65% Senior Note due 2017) - incorporated by reference from Form 8-K dated February 8, 2012, Exhibit 4.1 (File No. 001-07434).
|
|
4.7
|
-
|
|
Sixth Supplemental Indenture, dated as of February 10, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 4.00% Senior Note due 2022) - incorporated by reference from Form 8-K dated February 8, 2012, Exhibit 4.2 (File No. 001-07434).
|
|
4.8
|
-
|
|
Seventh Supplemental Indenture, dated as of July 31, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 2.65% Senior Note due 2017) - incorporated by reference from Form 8-K dated July 27, 2012, Exhibit 4.1 (File No. 001-07434).
|
|
4.9
|
-
|
|
Subordinated Indenture, dated as of September 26, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee - incorporated by reference from Form 8-K dated October 1, 2012, Exhibit 4.1 (File No. 001-07434).
|
|
4.10
|
-
|
|
First Supplemental Indenture, dated as of September 26, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 5.50% Subordinated Debenture due 2052) - incorporated by reference from Form 8-K dated October 1, 2012, Exhibit 4.2 (File No. 001-07434).
|
|
10.0*
|
-
|
|
American Family Corporation Retirement Plan for Senior Officers, as amended and restated October 1, 1989 – incorporated by reference from 1993 Form 10-K, Exhibit 10.2 (File No. 001-07434).
|
|
10.1*
|
-
|
|
Amendment to American Family Corporation Retirement Plan for Senior Officers, dated December 8, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.1 (File No. 001-07434).
|
|
10.2*
|
-
|
|
Aflac Incorporated Supplemental Executive Retirement Plan, as amended and restated January 1, 2009 – incorporated by reference from 2008 Form 10-K, Exhibit 10.5 (File No. 001-07434).
|
|
10.3*
|
-
|
|
First Amendment to the Aflac Incorporated Supplemental Executive Retirement Plan, as amended and restated January 1, 2009.
|
|
10.4*
|
-
|
|
Aflac Incorporated Executive Deferred Compensation Plan, as amended and restated, effective January 1, 2009 – incorporated by reference from 2008 Form 10-K, Exhibit 10.9 (File No. 001-07434).
|
|
10.5*
|
-
|
|
First Amendment to the Aflac Incorporated Executive Deferred Compensation Plan dated June 1, 2009 – incorporated by reference from Form 10-Q for June 30, 2009, Exhibit 10.4 (File No. 001-07434).
|
|
10.6*
|
-
|
|
Aflac Incorporated Amended and Restated 2009 Management Incentive Plan – incorporated by reference from the 2008 Shareholders’ Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.7*
|
-
|
|
First Amendment to the Aflac Incorporated Amended and Restated 2009 Management Incentive Plan, dated December 19, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.11 (File No. 001-07434).
|
|
10.8*
|
-
|
|
Aflac Incorporated 2013 Management Incentive Plan - incorporated by reference from the 2012 Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.9*
|
-
|
|
Aflac Incorporated Sales Incentive Plan – incorporated by reference from 2007 Form 10-K, Exhibit 10.8 (File No. 001-07434).
|
|
10.10*
|
-
|
|
1999 Aflac Associate Stock Bonus Plan, as amended, dated February 11, 2003 – incorporated by reference from 2002 Form 10-K, Exhibit 99.2 (File No. 001-07434).
|
|
10.11*
|
-
|
|
Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from the 1997 Shareholders’ Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.12*
|
-
|
|
Form of Officer Stock Option Agreement (Non-Qualifying Stock Option) under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.5 (File No. 001-07434).
|
|
10.13*
|
-
|
|
Form of Officer Stock Option Agreement (Incentive Stock Option) under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.6 (File No. 001-07434).
|
|
10.14*
|
-
|
|
Notice of grant of stock options and stock option agreement to officers under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.7 (File No. 001-07434).
|
|
10.15*
|
-
|
|
2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from the 2012 Proxy Statement, Appendix A (File No. 001-07434).
|
|
10.16*
|
-
|
|
Form of Non-Employee Director Stock Option Agreement (NQSO) under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.1 (File No. 001-07434).
|
|
10.17*
|
-
|
|
Notice of grant of stock options to non-employee director under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.2 (File No. 001-07434).
|
|
10.18*
|
-
|
|
Form of Non-Employee Director Restricted Stock Award Agreement under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.3 (File No. 001-07434).
|
|
10.19*
|
-
|
|
Notice of restricted stock award to non-employee director under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.4 (File No. 001-07434).
|
|
10.20*
|
-
|
|
Form of Officer Restricted Stock Award Agreement under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.1 (File No. 001-07434).
|
|
10.21*
|
-
|
|
Notice of restricted stock award to officers under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.2 (File No. 001-07434).
|
|
10.22*
|
-
|
|
Form of Officer Stock Option Agreement (Non-Qualifying Stock Option) under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.3 (File No. 001-07434).
|
|
10.23*
|
-
|
|
Form of Officer Stock Option Agreement (Incentive Stock Option) under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.4 (File No. 001-07434).
|
|
10.24*
|
-
|
|
Notice of grant of stock options to officers under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.5 (File No. 001-07434).
|
|
10.25*
|
-
|
|
Aflac Incorporated Retirement Plan for Directors Emeritus, as amended and restated, dated February 9, 2010 – incorporated by reference from 2009 Form 10-K, Exhibit 10.26 (File No. 001-07434).
|
|
10.26*
|
-
|
|
Amendment to Aflac Incorporated Retirement Plan for Directors Emeritus, as amended and restated, dated August 10, 2010 – incorporated by reference from Form 10-Q for September 30, 2010, Exhibit 10.27 (File No. 001-07434).
|
|
10.27*
|
-
|
|
Aflac Incorporated Employment Agreement with Daniel P. Amos, dated August 1, 1993 – incorporated by reference from 1993 Form 10-K, Exhibit 10.4 (File No. 001-07434).
|
|
10.28*
|
-
|
|
Amendment to Aflac Incorporated Employment Agreement with Daniel P. Amos, dated December 8, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.32 (File No. 001-07434).
|
|
10.29*
|
-
|
|
Aflac Incorporated Employment Agreement with Kriss Cloninger III, dated February 14, 1992, and as amended November 12, 1993 – incorporated by reference from 1993 Form 10-K, Exhibit 10.6 (File No. 001-07434).
|
|
10.30*
|
-
|
|
Amendment to Aflac Incorporated Employment Agreement with Kriss Cloninger III, dated November 3, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.34 (File No. 001-07434).
|
|
10.31*
|
-
|
|
Amendment to Aflac Incorporated Employment Agreement with Kriss Cloninger III, dated December 19, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.35 (File No. 001-07434).
|
|
10.32*
|
-
|
|
Amendment to Aflac Incorporated Employment Agreement with Kriss Cloninger III, dated March 15, 2011 – incorporated by reference from Form 10-Q for March 31, 2011, Exhibit 10.33 (File No. 001-07434).
|
|
10.33*
|
-
|
|
Aflac Incorporated Employment Agreement with Paul S. Amos II, dated January 1, 2005 – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.2 (File No. 001-07434).
|
|
10.34*
|
-
|
|
Amendment to Aflac Incorporated Employment Agreement with Paul S. Amos II, dated December 19, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.39 (File No. 001-07434).
|
|
10.35*
|
-
|
|
Amendment to Aflac Incorporated Employment Agreement with Paul S. Amos II, dated March 7, 2012 - incorporated by reference from Form 10-Q for March 31, 2012, Exhibit 10.36 (File No. 001-07434).
|
|
10.36*
|
-
|
|
Aflac Incorporated Employment Agreement with Joey Loudermilk, dated September 12, 1994 and as amended December 10, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.40 (File No. 001-07434).
|
|
10.37*
|
-
|
|
Amendment to Aflac Incorporated Employee Agreement with Joey Loudermilk, dated December 14, 2011 - incorporated by reference from 2011 Form 10-K, Exhibit 10.37 (File No. 001-07434).
|
|
10.38*
|
-
|
|
Aflac Incorporated Employment Agreement with Tohru Tonoike, effective February 1, 2007 – incorporated by reference from 2008 Form 10-K, Exhibit 10.41 (File No. 001-07434).
|
|
10.39*
|
-
|
|
Amendment to Aflac Incorporated Employment Agreement with Tohru Tonoike, dated February 9, 2010 – incorporated by reference from 2009 Form 10-K, Exhibit 10.36 (File No. 001-07434).
|
|
10.40*
|
-
|
|
Amendment to Aflac Incorporated Employment Agreement with Tohru Tonoike, dated October 8, 2012
|
|
10.41*
|
-
|
|
Aflac Retirement Agreement with E. Stephen Purdom, dated February 15, 2000 – incorporated by reference from 2000 Form 10-K, Exhibit 10.13 (File No. 001-07434).
|
|
10.42*
|
-
|
|
Senior unsecured revolving credit facility agreement, dated June 28, 2012 – incorporated by reference from Form 10-Q for June 30, 2012, Exhibit 10.40 (File No. 001-07434).
|
|
11
|
-
|
|
Statement regarding the computation of per-share earnings for the Registrant.
|
|
12
|
-
|
|
Statement regarding the computation of ratio of earnings to fixed charges for the Registrant.
|
|
21
|
-
|
|
Subsidiaries.
|
|
23
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-8 Registration Statement No. 333-158969 with respect to the Aflac Incorporated 401(k) Savings and Profit Sharing Plan.
|
|
|
-
|
|
Consent of independent registered public accounting firm KPMG LLP, to Form S-8 Registration Statement No. 333-27883 with respect to the Aflac Incorporated 1997 Stock Option Plan.
|
|
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-8 Registration Statement Nos. 333-135327 and 333-161269 with respect to the Aflac Incorporated Executive Deferred Compensation Plan.
|
|
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-8 Registration Statement No. 333-115105 with respect to the 2004 Aflac Incorporated Long-Term Incentive Plan.
|
|
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-3 Registration Statement No. 333-176178 with respect to the AFL Stock Plan.
|
|
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-3 Registration Statement No. 333-181089 with respect to the Aflac Incorporated shelf registration statement.
|
(c)
|
FINANCIAL STATEMENT SCHEDULES
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividends from subsidiaries
(1)
|
|
$
|
0
|
|
|
|
|
$
|
282
|
|
|
|
|
$
|
370
|
|
|
Management and service fees from subsidiaries
(1)
|
|
249
|
|
|
|
|
230
|
|
|
|
|
206
|
|
|
|||
Net investment income
|
|
20
|
|
|
|
|
10
|
|
|
|
|
11
|
|
|
|||
Interest from subsidiaries
(1)
|
|
7
|
|
|
|
|
8
|
|
|
|
|
8
|
|
|
|||
Realized investment gains (losses)
|
|
1
|
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|||
Change in fair value of the cross-currency interest rate swaps
|
|
154
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Other income (loss)
|
|
(7
|
)
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|||
Total revenues
|
|
424
|
|
|
|
|
530
|
|
|
|
|
596
|
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense
|
|
184
|
|
|
|
|
168
|
|
|
|
|
140
|
|
|
|||
Other operating expenses
|
|
72
|
|
|
|
|
69
|
|
|
|
|
66
|
|
|
|||
Total operating expenses
|
|
256
|
|
|
|
|
237
|
|
|
|
|
206
|
|
|
|||
Earnings before income taxes and equity in undistributed earnings of
subsidiaries |
|
168
|
|
|
|
|
293
|
|
|
|
|
390
|
|
|
|||
Income tax expense (benefit):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
1
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Deferred
|
|
50
|
|
|
|
|
(2
|
)
|
|
|
|
(3
|
)
|
|
|||
Total income taxes
|
|
51
|
|
|
|
|
(2
|
)
|
|
|
|
(3
|
)
|
|
|||
Earnings before equity in undistributed earnings of subsidiaries
|
|
117
|
|
|
|
|
295
|
|
|
|
|
393
|
|
|
|||
Equity in undistributed earnings of subsidiaries
(1)
|
|
2,749
|
|
|
|
|
1,642
|
|
|
|
|
1,935
|
|
|
|||
Net earnings
|
|
$
|
2,866
|
|
|
|
|
$
|
1,937
|
|
|
|
|
$
|
2,328
|
|
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Net earnings
|
|
$
|
2,866
|
|
|
|
|
$
|
1,937
|
|
|
|
|
$
|
2,328
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses)
during period - parent only |
|
95
|
|
|
|
|
(54
|
)
|
|
|
|
(127
|
)
|
|
|||
Equity in unrealized foreign currency translation gains (losses) of
subsidiaries during period |
|
(382
|
)
|
|
|
|
36
|
|
|
|
|
217
|
|
|
|||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on investment securities
during period - parent only |
|
15
|
|
|
|
|
11
|
|
|
|
|
7
|
|
|
|||
Equity in unrealized holding gains (losses) on investment securities
held by subsidiaries during period |
|
1,645
|
|
|
|
|
555
|
|
|
|
|
363
|
|
|
|||
Equity in reclassification adjustment for realized (gains) losses of
subsidiaries included in net earnings |
|
497
|
|
|
|
|
1,154
|
|
|
|
|
421
|
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
(22
|
)
|
|
|
|
(33
|
)
|
|
|
|
51
|
|
|
|||
Pension liability adjustment during period
|
|
(20
|
)
|
|
|
|
(65
|
)
|
|
|
|
(32
|
)
|
|
|||
Total other comprehensive income (loss) before
income taxes |
|
1,828
|
|
|
|
|
1,604
|
|
|
|
|
900
|
|
|
|||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
1,078
|
|
|
|
|
392
|
|
|
|
|
(32
|
)
|
|
|||
Other comprehensive income (loss), net of income taxes
|
|
750
|
|
|
|
|
1,212
|
|
|
|
|
932
|
|
|
|||
Total comprehensive income (loss)
|
|
$
|
3,616
|
|
|
|
|
$
|
3,149
|
|
|
|
|
$
|
3,260
|
|
|
|
December 31,
|
||||||||||
(In millions, except for share and per-share amounts)
|
2012
|
|
2011
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
|
|
|
||||
Fixed maturity securities available for sale, at fair value
(amortized cost $131 in 2012 and $120 in 2011) |
|
$
|
156
|
|
|
|
|
$
|
138
|
|
|
Investments in subsidiaries
(1)
|
|
19,001
|
|
|
|
|
15,531
|
|
|
||
Other investments
|
|
14
|
|
|
|
|
15
|
|
|
||
Cash and cash equivalents
|
|
830
|
|
|
|
|
385
|
|
|
||
Total investments and cash
|
|
20,001
|
|
|
|
|
16,069
|
|
|
||
Due from subsidiaries
(1)
|
|
156
|
|
|
|
|
134
|
|
|
||
Other assets
|
|
257
|
|
|
|
|
79
|
|
|
||
Total assets
|
|
$
|
20,414
|
|
|
|
|
$
|
16,282
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||
Notes payable
|
|
$
|
4,367
|
|
|
|
|
$
|
3,345
|
|
|
Employee benefit plans
|
|
255
|
|
|
|
|
175
|
|
|
||
Income taxes
|
|
(232
|
)
|
|
|
|
(311
|
)
|
|
||
Other liabilities
|
|
46
|
|
|
|
|
127
|
|
|
||
Total liabilities
|
|
4,436
|
|
|
|
|
3,336
|
|
|
||
Shareholders' equity:
|
|
|
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in
2012 and 2011; issued 665,239 shares in 2012 and 663,639 shares in 2011 |
|
67
|
|
|
|
|
66
|
|
|
||
Additional paid-in capital
|
|
1,505
|
|
|
|
|
1,408
|
|
|
||
Retained earnings
|
|
17,387
|
|
|
|
|
15,148
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Unrealized foreign currency translation gains
|
|
333
|
|
|
|
|
984
|
|
|
||
Unrealized gains (losses) on investment securities
|
|
2,570
|
|
|
|
|
1,143
|
|
|
||
Unrealized gains (losses) on derivatives
|
|
(5
|
)
|
|
|
|
9
|
|
|
||
Pension liability adjustment
|
|
(183
|
)
|
|
|
|
(171
|
)
|
|
||
Treasury stock, at average cost
|
|
(5,696
|
)
|
|
|
|
(5,641
|
)
|
|
||
Total shareholders' equity
|
|
15,978
|
|
|
|
|
12,946
|
|
|
||
Total liabilities and shareholders' equity
|
|
$
|
20,414
|
|
|
|
|
$
|
16,282
|
|
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings
|
|
$
|
2,866
|
|
|
|
|
$
|
1,937
|
|
|
|
|
$
|
2,328
|
|
|
Adjustments to reconcile net earnings to net cash provided from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity in undistributed earnings of subsidiaries
(1)
|
|
(2,749
|
)
|
|
|
|
(1,642
|
)
|
|
|
|
(1,935
|
)
|
|
|||
Change in income tax liabilities
|
|
111
|
|
|
|
|
(52
|
)
|
|
|
|
(77
|
)
|
|
|||
Other, net
|
|
(242
|
)
|
|
|
|
145
|
|
|
|
|
153
|
|
|
|||
Net cash provided (used) by operating activities
|
|
(14
|
)
|
|
|
|
388
|
|
|
|
|
469
|
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities sold
|
|
13
|
|
|
|
|
4
|
|
|
|
|
12
|
|
|
|||
Fixed maturity securities purchased
|
|
(26
|
)
|
|
|
|
(10
|
)
|
|
|
|
(8
|
)
|
|
|||
Other investments sold (purchased)
|
|
(3
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Purchase of subsidiary
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Additional capitalization of subsidiaries
(1)
|
|
0
|
|
|
|
|
(40
|
)
|
|
|
|
0
|
|
|
|||
Other, net
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Net cash provided (used) by investing activities
|
|
(16
|
)
|
|
|
|
(46
|
)
|
|
|
|
4
|
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of treasury stock
|
|
(118
|
)
|
|
|
|
(308
|
)
|
|
|
|
(121
|
)
|
|
|||
Proceeds from borrowings
|
|
1,506
|
|
|
|
|
620
|
|
|
|
|
748
|
|
|
|||
Principal payments under debt obligations
|
|
(380
|
)
|
|
|
|
(459
|
)
|
|
|
|
(447
|
)
|
|
|||
Dividends paid to shareholders
|
|
(603
|
)
|
|
|
|
(552
|
)
|
|
|
|
(535
|
)
|
|
|||
Treasury stock reissued
|
|
70
|
|
|
|
|
26
|
|
|
|
|
45
|
|
|
|||
Proceeds from exercise of stock options
|
|
21
|
|
|
|
|
14
|
|
|
|
|
27
|
|
|
|||
Net change in amount due to/from subsidiaries
(1)
|
|
(21
|
)
|
|
|
|
9
|
|
|
|
|
5
|
|
|
|||
Net cash provided (used) by financing activities
|
|
475
|
|
|
|
|
(650
|
)
|
|
|
|
(278
|
)
|
|
|||
Net change in cash and cash equivalents
|
|
445
|
|
|
|
|
(308
|
)
|
|
|
|
195
|
|
|
|||
Cash and cash equivalents, beginning of period
|
|
385
|
|
|
|
|
693
|
|
|
|
|
498
|
|
|
|||
Cash and cash equivalents, end of period
|
|
$
|
830
|
|
|
|
|
$
|
385
|
|
|
|
|
$
|
693
|
|
|
(In millions)
|
2012
|
|
2011
|
|
||||||||
8.50% senior notes due May 2019
|
|
$
|
850
|
|
|
|
|
$
|
850
|
|
|
|
6.45% senior notes dues August 2040
|
|
448
|
|
(1)
|
|
|
448
|
|
(1)
|
|
||
6.90% senior notes due December 2039
|
|
396
|
|
(2)
|
|
|
396
|
|
(2)
|
|
||
3.45% senior notes due August 2015
|
|
300
|
|
|
|
|
300
|
|
|
|
||
2.65% senior notes due February 2017
|
|
657
|
|
(3)
|
|
|
0
|
|
|
|
||
4.00% senior notes due February 2022
|
|
349
|
|
(4)
|
|
|
0
|
|
|
|
||
5.50% subordinated debentures due September 2052
|
|
500
|
|
|
|
|
0
|
|
|
|
||
Yen-denominated Uridashi notes:
|
|
|
|
|
|
|
|
|
||||
2.26% notes due September 2016 (principal amount 10 billion yen)
|
|
116
|
|
|
|
|
129
|
|
|
|
||
Yen-denominated Samurai notes:
|
|
|
|
|
|
|
|
|
||||
1.47% notes due July 2014 (principal amount 28.7 billion yen)
|
|
331
|
|
|
|
|
369
|
|
|
|
||
1.87% notes paid June 2012 (principal amount 30 billion yen)
|
|
0
|
|
|
|
|
386
|
|
|
|
||
1.84% notes due July 2016 (principal amount 15.8 billion yen)
|
|
182
|
|
|
|
|
203
|
|
|
|
||
Variable interest rate notes due July 2014 (1.34% in 2012 and 2011, principal
amount 5.5 billion yen) |
|
64
|
|
|
|
|
71
|
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
|
|
|
|
||||
3.60% loan due July 2015 (principal amount 10 billion yen)
|
|
116
|
|
|
|
|
129
|
|
|
|
||
3.00% loan due August 2015 (principal amount 5 billion yen)
|
|
58
|
|
|
|
|
64
|
|
|
|
||
Total notes payable
|
|
$
|
4,367
|
|
|
|
|
$
|
3,345
|
|
|
|
(In millions)
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Interest paid
|
|
$
|
181
|
|
|
|
|
$
|
163
|
|
|
|
|
$
|
124
|
|
|
Noncash financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Treasury stock issued for shareholder dividend reinvestment
|
|
25
|
|
|
|
|
23
|
|
|
|
|
0
|
|
|
(In millions)
|
Deferred Policy
Acquisition Costs |
|
Future Policy
Benefits & Unpaid Policy Claims |
|
Unearned
Premiums |
|
Other
Policyholders' Funds |
||||||||||||||||
2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
|
|
$
|
6,801
|
|
|
|
|
$
|
72,286
|
|
|
|
|
$
|
2,057
|
|
|
|
|
$
|
14,995
|
|
|
Aflac U.S.
|
|
2,857
|
|
|
|
|
8,209
|
|
|
|
|
101
|
|
|
|
|
298
|
|
|
||||
All other
|
|
0
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||
Total
|
|
$
|
9,658
|
|
|
|
|
$
|
80,497
|
|
|
|
|
$
|
2,158
|
|
|
|
|
$
|
15,294
|
|
|
2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
|
|
$
|
7,102
|
|
|
|
|
$
|
75,578
|
|
|
|
|
$
|
1,602
|
|
|
|
|
$
|
9,342
|
|
|
Aflac U.S.
|
|
2,687
|
|
|
|
|
7,679
|
|
|
|
|
102
|
|
|
|
|
288
|
|
|
||||
All other
|
|
0
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total
|
|
$
|
9,789
|
|
|
|
|
$
|
83,259
|
|
|
|
|
$
|
1,704
|
|
|
|
|
$
|
9,630
|
|
|
(In millions)
|
Premium
Revenue |
|
Net
Investment Income |
|
Benefits and
Claims |
|
Amortization of
Deferred Policy Acquisition Costs |
|
Other
Operating Expenses |
|
Premiums
Written |
||||||||||||||||||||
2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aflac Japan
|
$
|
17,151
|
|
|
|
$
|
2,845
|
|
|
|
|
$
|
12,496
|
|
|
|
|
$
|
716
|
|
|
|
|
$
|
2,937
|
|
|
|
$
|
23,662
|
|
Aflac U.S.
|
4,996
|
|
|
|
613
|
|
|
|
|
2,834
|
|
|
|
|
400
|
|
|
|
|
1,397
|
|
|
|
4,988
|
|
||||||
All other
|
1
|
|
|
|
15
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
281
|
|
|
|
0
|
|
||||||
Total
|
$
|
22,148
|
|
|
|
$
|
3,473
|
|
|
|
|
$
|
15,330
|
|
|
|
|
$
|
1,117
|
|
|
|
|
$
|
4,615
|
|
|
|
$
|
28,650
|
|
2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aflac Japan
|
$
|
15,619
|
|
|
|
$
|
2,688
|
|
|
|
|
$
|
11,037
|
|
|
|
|
$
|
650
|
|
|
|
|
$
|
2,837
|
|
|
|
$
|
19,034
|
|
Aflac U.S.
|
4,743
|
|
|
|
588
|
|
|
|
|
2,713
|
|
|
|
|
383
|
|
|
|
|
1,341
|
|
|
|
4,733
|
|
||||||
All other
|
0
|
|
|
|
4
|
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
261
|
|
|
|
0
|
|
||||||
Total
|
$
|
20,362
|
|
|
|
$
|
3,280
|
|
|
|
|
$
|
13,749
|
|
|
|
|
$
|
1,033
|
|
|
|
|
$
|
4,439
|
|
|
|
$
|
23,767
|
|
2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aflac Japan
|
$
|
13,487
|
|
|
|
$
|
2,453
|
|
|
|
|
$
|
9,553
|
|
|
|
|
$
|
563
|
|
|
|
|
$
|
2,601
|
|
|
|
$
|
14,586
|
|
Aflac U.S.
|
4,586
|
|
|
|
549
|
|
|
|
|
2,553
|
|
|
|
|
395
|
|
|
|
|
1,276
|
|
|
|
4,568
|
|
||||||
All other
|
0
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
230
|
|
|
|
0
|
|
||||||
Total
|
$
|
18,073
|
|
|
|
$
|
3,007
|
|
|
|
|
$
|
12,106
|
|
|
|
|
$
|
958
|
|
|
|
|
$
|
4,107
|
|
|
|
$
|
19,154
|
|
(In millions)
|
Gross
Amount |
|
Ceded to
Other Companies |
|
Assumed
from Other companies |
|
Net
Amount |
|
Percentage
of Amount Assumed to Net |
|||||||||||||||
2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
173,791
|
|
|
|
$
|
3,867
|
|
|
|
|
$
|
0
|
|
|
|
$
|
169,924
|
|
|
|
0
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health insurance
|
$
|
17,541
|
|
|
|
$
|
19
|
|
|
|
|
$
|
14
|
|
|
|
$
|
17,536
|
|
|
|
0
|
%
|
|
Life insurance
|
4,626
|
|
|
|
14
|
|
|
|
|
0
|
|
|
|
4,612
|
|
|
|
0
|
|
|
||||
Total earned premiums
|
$
|
22,167
|
|
|
|
$
|
33
|
|
|
|
|
$
|
14
|
|
|
|
$
|
22,148
|
|
|
|
0
|
%
|
|
2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
168,355
|
|
|
|
$
|
4,159
|
|
|
|
|
$
|
3
|
|
|
|
$
|
164,199
|
|
|
|
0
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health insurance
|
$
|
17,210
|
|
|
|
$
|
14
|
|
|
|
|
$
|
12
|
|
|
|
$
|
17,208
|
|
|
|
0
|
%
|
|
Life insurance
|
3,163
|
|
|
|
13
|
|
|
|
|
4
|
|
|
|
3,154
|
|
|
|
0
|
|
|
||||
Total earned premiums
|
$
|
20,373
|
|
|
|
$
|
27
|
|
|
|
|
$
|
16
|
|
|
|
$
|
20,362
|
|
|
|
0
|
%
|
|
2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
149,045
|
|
|
|
$
|
4,000
|
|
|
|
|
$
|
2
|
|
|
|
$
|
145,047
|
|
|
|
0
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health insurance
|
$
|
15,784
|
|
|
|
$
|
9
|
|
|
|
|
$
|
18
|
|
|
|
$
|
15,793
|
|
|
|
0
|
%
|
|
Life insurance
|
2,291
|
|
|
|
12
|
|
|
|
|
1
|
|
|
|
2,280
|
|
|
|
0
|
|
|
||||
Total earned premiums
|
$
|
18,075
|
|
|
|
$
|
21
|
|
|
|
|
$
|
19
|
|
|
|
$
|
18,073
|
|
|
|
0
|
%
|
|
Aflac Incorporated
|
|
|
||
By:
|
|
/s/ Daniel P. Amos
|
|
February 26, 2013
|
|
|
(Daniel P. Amos)
|
|
|
|
|
Chief Executive Officer,
|
|
|
|
|
Chairman of the Board of Directors
|
|
|
/s/
Daniel P. Amos
|
|
|
Chief Executive Officer,
|
|
February 26, 2013
|
(Daniel P. Amos)
|
|
|
Chairman of the Board of Directors
|
|
|
|
|
|
|
|
|
/s/
Kriss Cloninger III
|
|
|
President, Chief Financial Officer,
|
|
February 26, 2013
|
(Kriss Cloninger III)
|
|
|
Treasurer and Director
|
|
|
|
|
|
|
|
|
/s/
June Howard
|
|
|
Senior Vice President, Financial Services;
|
|
February 26, 2013
|
(June Howard)
|
|
|
Chief Accounting Officer
|
|
|
/s/
J. Shelby Amos II
|
|
|
|
Director
|
|
February 26, 2013
|
(J. Shelby Amos II)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Paul S. Amos II
|
|
|
|
Director
|
|
February 26, 2013
|
(Paul S. Amos II)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Elizabeth J. Hudson
|
|
|
|
Director
|
|
February 26, 2013
|
(Elizabeth J. Hudson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Douglas W. Johnson
|
|
|
|
Director
|
|
February 26, 2013
|
(Douglas W. Johnson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Robert B. Johnson
|
|
|
|
Director
|
|
February 26, 2013
|
(Robert B. Johnson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Charles B. Knapp
|
|
|
|
Director
|
|
February 26, 2013
|
(Charles B. Knapp)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
E. Stephen Purdom
|
|
|
|
Director
|
|
February 26, 2013
|
(E. Stephen Purdom)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Barbara K. Rimer
|
|
|
|
Director
|
|
February 26, 2013
|
(Barbara K. Rimer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Marvin R. Schuster
|
|
|
|
Director
|
|
February 26, 2013
|
(Marvin R. Schuster)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Melvin T. Stith
|
|
|
|
Director
|
|
February 26, 2013
|
(Melvin T. Stith)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
David G. Thompson
|
|
|
|
Director
|
|
February 26, 2013
|
(David G. Thompson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Takuro Yoshida
|
|
|
|
Director
|
|
February 26, 2013
|
(Takuro Yoshida)
|
|
|
|
|
|
|
1.
|
Section 1.4 of the Plan hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
2.
|
A new Section 1.16A is added to read as follows:
|
3.
|
Section 1.7 hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
4.
|
Section 1.23 of the Plan hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
5.
|
Section 2.3 hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
6.
|
Section 3.1 hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
7.
|
Section 4.4 hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
8.
|
Section 4.6(b) hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
9.
|
Section 5.1 hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
10.
|
The introductory paragraph to Section 5.3 hereby is amended by deleting such introductory paragraph in its entirety and by substituting in lieu thereof the following:
|
11.
|
Section 5.4 hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
12.
|
Section 6.1(b) hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
13.
|
Section 7.1 hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
14.
|
Section 7.2(b) is hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
15.
|
Section 8.1 hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
16.
|
Section 8.2(b) hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
17.
|
Section 9.1 hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
18.
|
Section 9.7 hereby is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
19.
|
The amendments made in paragraphs 1 and 4 hereof shall be effective as of January 1, 2012, for all compensation paid after December 31, 2011. The amendments made by all other paragraphs hereof shall be effective as of January 1, 2013.
|
20.
|
Except as amended herein, the Plan shall continue in full force and effect.
|
Employee
|
|
|
American Family Life Assurance Company of Columbus (Aflac)
|
|
|
|
|
/s/ Tohru Tonoike
|
|
By:
|
/s/ Daniel P. Amos
|
Tohru Tonoike
|
|
|
Daniel P. Amos
Chairman and Chief Executive Officer
|
|
|
|
|
|
|
Attest:
|
/s/ Joey M. Loudermilk
|
|
|
|
Joey M. Loudermilk
Corporate Secretary
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Numerator (In millions):
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted: net earnings applicable to
common stock |
$
|
2,866
|
|
|
$
|
1,937
|
|
|
$
|
2,328
|
|
|
$
|
1,497
|
|
|
$
|
1,254
|
|
Denominator (In thousands):
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average outstanding shares used in the
computation of earnings per share – basic |
466,868
|
|
|
466,519
|
|
|
469,038
|
|
|
466,552
|
|
|
473,405
|
|
|||||
Dilutive effect of share-based awards
|
2,419
|
|
|
2,851
|
|
|
4,047
|
|
|
2,511
|
|
|
5,410
|
|
|||||
Weighted-average outstanding shares used in the
computation of earnings per share – diluted |
469,287
|
|
|
469,370
|
|
|
473,085
|
|
|
469,063
|
|
|
478,815
|
|
|||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
6.14
|
|
|
$
|
4.16
|
|
|
$
|
4.96
|
|
|
$
|
3.21
|
|
|
$
|
2.65
|
|
Diluted
|
6.11
|
|
|
4.12
|
|
|
4.92
|
|
|
3.19
|
|
|
2.62
|
|
(In thousands)
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
(1)
|
$
|
261,405
|
|
|
$
|
195,536
|
|
|
$
|
149,056
|
|
|
$
|
72,429
|
|
|
$
|
29,114
|
|
Interest on investment–type contracts
|
57,679
|
|
|
50,075
|
|
|
40,412
|
|
|
34,352
|
|
|
22,421
|
|
|||||
Rental expense deemed interest
|
892
|
|
|
1,028
|
|
|
946
|
|
|
1,360
|
|
|
1,394
|
|
|||||
Total fixed charges
|
$
|
319,976
|
|
|
$
|
246,639
|
|
|
$
|
190,414
|
|
|
$
|
108,141
|
|
|
$
|
52,928
|
|
Earnings before income tax
(1)
|
$
|
4,302,108
|
|
|
$
|
2,950,452
|
|
|
$
|
3,560,097
|
|
|
$
|
2,235,657
|
|
|
$
|
1,914,878
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total fixed charges
|
319,976
|
|
|
246,639
|
|
|
190,414
|
|
|
108,141
|
|
|
52,928
|
|
|||||
Total earnings before income tax
and fixed charges |
$
|
4,622,084
|
|
|
$
|
3,197,091
|
|
|
$
|
3,750,511
|
|
|
$
|
2,343,798
|
|
|
$
|
1,967,806
|
|
Ratio of earnings to fixed charges
|
14.4x
|
|
|
13.0x
|
|
|
19.7x
|
|
|
21.7x
|
|
|
37.2x
|
|
Company
|
Jurisdiction
|
American Family Life Assurance Company of Columbus (Aflac)
|
Nebraska
|
American Family Life Assurance Company of New York
(1)
|
New York
|
Communicorp, Incorporated
|
Georgia
|
Aflac Information Technology, Incorporated
|
Georgia
|
Aflac International, Incorporated
|
Georgia
|
Aflac Insurance Services Company, Limited
(2)
|
Japan
|
Aflac Payment Services Company, Limited
(2)
|
Japan
|
Aflac Technology Services Company, Limited
(2)
|
Japan
|
Aflac Heartful Services Company, Limited
(4)
|
Japan
|
Continental American Insurance Company
|
South Carolina
|
Continental American Group, LLC
(3)
|
Georgia
|
Aflac Benefit Solutions
|
Georgia
|
1.
|
I have reviewed this annual report on Form 10-K of Aflac Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
|
|
Date:
|
February 26, 2013
|
|
/s/
Daniel P. Amos
|
|
|
|
Daniel P. Amos
|
|
|
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 10-K of Aflac Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
|
|
Date:
|
February 26, 2013
|
|
/s/ Kriss Cloninger III
|
|
|
|
Kriss Cloninger III
|
|
|
|
President, Chief Financial Officer and Treasurer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/
Daniel P. Amos
|
||
Name:
|
|
Daniel P. Amos
|
Title:
|
|
Chief Executive Officer
|
Date:
|
|
February 26, 2013
|
/s/
Kriss Cloninger III
|
||
Name:
|
|
Kriss Cloninger III
|
Title:
|
|
Chief Financial Officer
|
Date:
|
|
February 26, 2013
|