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FORM 10-K
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ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Aflac Incorporated
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(Exact name of registrant as specified in its charter)
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Georgia
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58-1167100
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1932 Wynnton Road, Columbus, Georgia
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31999
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(Address of principal executive offices)
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(ZIP Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $.10 Par Value
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New York Stock Exchange
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Tokyo Stock Exchange
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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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(Do not check if smaller reporting company
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Smaller reporting company
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¨
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Page
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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(In millions)
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2014
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2013
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|
2012
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||||||
Annualized premiums in force, beginning of year
|
$
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20,440
|
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$
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22,689
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$
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22,472
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New sales, including conversions
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2,513
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2,963
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4,129
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|||
Change in unprocessed new sales
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13
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66
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183
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|||
Premiums lapsed and surrendered
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(2,146
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)
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(2,154
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)
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(2,173
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)
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Other
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(29
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)
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17
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(9
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)
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|||
Foreign currency translation adjustment
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(1,897
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)
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(3,141
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)
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(1,913
|
)
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|||
Annualized premiums in force, end of year
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$
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18,894
|
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$
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20,440
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$
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22,689
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In Dollars
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In Yen
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|||||||||||||||||
(In millions of dollars and billions of yen)
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2014
|
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2013
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2012
|
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2014
|
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2013
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|
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2012
|
|
||||||
Annualized premiums in force, beginning of year
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$
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14,870
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|
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$
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17,238
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|
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$
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17,284
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1,567
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1,492
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1,344
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New sales, including conversions
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1,080
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1,539
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2,641
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115
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149
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|
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211
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|||
Change in unprocessed new sales
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13
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66
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183
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1
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6
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14
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Premiums lapsed and surrendered
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(695
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)
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(717
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)
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(845
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)
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(74
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)
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(70
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)
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(68
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)
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Other
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(145
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)
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(115
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)
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(112
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)
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(15
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)
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(10
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)
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(9
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)
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|||
Foreign currency translation adjustment
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(1,897
|
)
|
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(3,141
|
)
|
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(1,913
|
)
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0
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0
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0
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Annualized premiums in force, end of year
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$
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13,226
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$
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14,870
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$
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17,238
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1,594
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1,567
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1,492
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(In millions)
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2014
|
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2013
|
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2012
|
||||||||||||
Annualized premiums in force, beginning of year
|
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$
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5,570
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$
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5,451
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$
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5,188
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New sales, including conversions
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1,433
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1,424
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1,488
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|||
Premiums lapsed
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(1,451
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)
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(1,437
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)
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(1,328
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)
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Other
|
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116
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132
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103
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|||
Annualized premiums in force, end of year
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$
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5,668
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|
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$
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5,570
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|
|
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$
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5,451
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|
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•
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granting and revoking licenses to transact business
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•
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regulating trade and claims practices
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•
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licensing of insurance agents and brokers
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•
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approval of policy forms and premium rates
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•
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standards of solvency and maintenance of specified policy benefit reserves and minimum loss ratio requirements
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•
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capital requirements
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•
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limitations on dividends to shareholders
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•
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the nature of and limitations on investments
|
•
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deposits of securities for the benefit of policyholders
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•
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filing of financial statements prepared in accordance with statutory insurance accounting practices prescribed or permitted by regulatory authorities
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•
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periodic examinations of the market conduct, financial, and other affairs of insurance companies
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NAME
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PRINCIPAL OCCUPATION
(1)
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AGE
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Daniel P. Amos
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Chairman, Aflac Incorporated and Aflac, since 2001; Chief Executive Officer, Aflac Incorporated and Aflac, since 1990
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63
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Paul S. Amos II
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President, Aflac, since 2007; Chief Operating Officer, U.S. Operations, Aflac, from 2006 until 2013
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39
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|
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Koji Ariyoshi
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Executive Vice President, Director of Marketing and Sales, Aflac Japan, since 2012; First Senior Vice President, Director of Marketing and Sales, Aflac Japan, from 2010 until 2011
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61
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Susan R. Blanck
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Executive Vice President, Aflac Japan, since 2012; Executive Vice President, Corporate Actuary, Aflac, since 2011; First Senior Vice President, Aflac Japan, from 2008 until 2012; Senior Vice President, Corporate Actuary, Aflac, from 2004 until 2011
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48
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Kriss Cloninger III
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President, Aflac Incorporated, since 2001; Chief Financial Officer, Aflac Incorporated and Aflac, since 1992; Treasurer, Aflac Incorporated, since 2001; Executive Vice President, Aflac, since 1993
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67
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June Howard
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Chief Accounting Officer, Aflac Incorporated and Aflac, since 2010; Treasurer, Aflac, since 2011; Senior Vice President, Financial Services, Aflac Incorporated and Aflac, since 2010; Vice President, Financial Services, Aflac, from 2009 until 2010
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48
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Kenneth S. Janke
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Executive Vice President, Deputy Chief Financial Officer, Aflac Incorporated, since 2010; President, Aflac U.S., from 2013 until 2014; Senior Vice President, Investor Relations, Aflac Incorporated, from 1993 until 2010
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56
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Eric M. Kirsch
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Executive Vice President, Global Chief Investment Officer, Aflac, since 2012; First Senior Vice President, Global Chief Investment Officer, Aflac, from 2011 until 2012; Managing Director, Global Head of Insurance Asset Management, Goldman Sachs Asset Management, from 2007 until 2011
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54
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Charles D. Lake II
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President, Aflac International, since 2014; Chairman, Aflac Japan, since 2008
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53
|
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Audrey B. Tillman
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Executive Vice President, General Counsel, Aflac Incorporated and Aflac, since 2014; Executive Vice President, Corporate Services, Aflac Incorporated, from 2008 until 2014
|
50
|
|
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Teresa L. White
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President, Aflac U.S., since 2014; Executive Vice President, Chief Operating Officer, Aflac, from 2013 until 2014; Executive Vice President, Chief Service Officer, Aflac, from 2012 until 2013; Executive Vice President, Chief Administrative Officer, Aflac, from 2008 until 2013
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48
|
|
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Robin Y. Wilkey
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Senior Vice President, Investor and Rating Agency Relations, Aflac Incorporated, since 2010; Vice President, Investor Relations, Aflac Incorporated, from 2003 until 2010
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56
|
|
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Hiroshi Yamauchi
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President, Chief Operating Officer, Aflac Japan, effective 2015; Executive Vice President, Aflac Japan, from 2012 until 2014; First Senior Vice President, Aflac Japan, from 2002 until 2011
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63
|
|
•
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standards of establishing and setting premium rates and the approval thereof
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•
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standards of minimum capital requirements and solvency margins, including risk-based capital measures
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•
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restrictions on, limitations on and required approval of certain transactions between our insurance subsidiaries and their affiliates, including management fee arrangements
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•
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restrictions on the nature, quality and concentration of investments
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•
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restrictions on the types of terms and conditions that we can include in the insurance policies offered by our primary insurance operations
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•
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limitations on the amount of dividends that insurance subsidiaries can pay or foreign profits that can be repatriated
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•
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the existence and licensing status of a company under circumstances where it is not writing new or renewal business
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•
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certain required methods of accounting
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•
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reserves for unearned premiums, losses and other purposes
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•
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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
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•
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imposition of fines and other sanctions
|
•
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any requirement to restate financial results in the event of inappropriate application of accounting principle
|
•
|
failure to appropriately maintain controls over models used to generate significant inputs to the Company’s financial statements
|
•
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a significant failure of internal controls over financial reporting
|
•
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failure of our prevention and control systems related to employee compliance with internal policies and regulatory requirements
|
•
|
failure of corporate governance policies and procedures
|
2014
|
High
|
|
Low
|
||||||||
4th Quarter
|
|
$
|
62.46
|
|
|
|
|
$
|
54.99
|
|
|
3rd Quarter
|
|
64.20
|
|
|
|
|
57.70
|
|
|
||
2nd Quarter
|
|
64.47
|
|
|
|
|
60.60
|
|
|
||
1st Quarter
|
|
66.69
|
|
|
|
|
60.45
|
|
|
2013
|
High
|
|
Low
|
||||||||
4th Quarter
|
|
$
|
67.62
|
|
|
|
|
$
|
61.96
|
|
|
3rd Quarter
|
|
63.63
|
|
|
|
|
56.08
|
|
|
||
2nd Quarter
|
|
58.75
|
|
|
|
|
48.54
|
|
|
||
1st Quarter
|
|
54.44
|
|
|
|
|
48.17
|
|
|
|
2014
|
|
2013
|
||||||||
4th Quarter
|
|
$
|
.39
|
|
|
|
|
$
|
.37
|
|
|
3rd Quarter
|
|
.37
|
|
|
|
|
.35
|
|
|
||
2nd Quarter
|
|
.37
|
|
|
|
|
.35
|
|
|
||
1st Quarter
|
|
.37
|
|
|
|
|
.35
|
|
|
|
2009
|
|
|
2010
|
|
|
2011
|
|
|
2012
|
|
|
2013
|
|
|
2014
|
|
Aflac Incorporated
|
100.00
|
|
|
124.89
|
|
|
98.27
|
|
|
124.18
|
|
|
160.09
|
|
|
150.03
|
|
S&P 500
|
100.00
|
|
|
115.06
|
|
|
117.49
|
|
|
136.30
|
|
|
180.44
|
|
|
205.14
|
|
S&P Life & Health Insurance
|
100.00
|
|
|
125.25
|
|
|
99.31
|
|
|
113.80
|
|
|
186.04
|
|
|
189.67
|
|
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
|
|
3,218,667
|
|
|
|
|
$
|
64.24
|
|
|
|
|
3,217,000
|
|
|
|
|
45,993,020
|
|
|
|
February 1 - February 28
|
|
3,113,966
|
|
|
|
|
62.45
|
|
|
|
|
3,008,016
|
|
|
|
|
42,985,004
|
|
|
|
|
March 1 - March 31
|
|
311,944
|
|
|
|
|
64.60
|
|
|
|
|
310,000
|
|
|
|
|
42,675,004
|
|
|
|
|
April 1 - April 30
|
|
20,000
|
|
|
|
|
62.73
|
|
|
|
|
20,000
|
|
|
|
|
42,655,004
|
|
|
|
|
May 1 - May 31
|
|
865,548
|
|
|
|
|
62.12
|
|
|
|
|
865,000
|
|
|
|
|
41,790,004
|
|
|
|
|
June 1 - June 30
|
|
723,697
|
|
|
|
|
62.37
|
|
|
|
|
722,480
|
|
|
|
|
41,067,524
|
|
|
|
|
July 1 - July 31
|
|
135,969
|
|
|
|
|
60.71
|
|
|
|
|
135,000
|
|
|
|
|
40,932,524
|
|
|
|
|
August 1 - August 31
|
|
683,577
|
|
|
|
|
60.04
|
|
|
|
|
682,700
|
|
|
|
|
40,249,824
|
|
|
|
|
September 1 - September 30
|
|
2,112,414
|
|
|
|
|
59.66
|
|
|
|
|
2,110,700
|
|
|
|
|
38,139,124
|
|
|
|
|
October 1 - October 31
|
|
700,000
|
|
|
|
|
59.81
|
|
|
|
|
700,000
|
|
|
|
|
37,439,124
|
|
|
|
|
November 1 - November 30
|
|
3,570,000
|
|
|
|
|
59.32
|
|
|
|
|
3,570,000
|
|
|
|
|
33,869,124
|
|
|
|
|
December 1 - December 31
|
|
4,320,676
|
|
|
|
|
59.46
|
|
|
|
|
4,319,000
|
|
|
|
|
29,550,124
|
|
|
|
|
Total
|
|
19,776,458
|
|
|
(2)
|
|
$
|
61.05
|
|
|
|
|
19,659,896
|
|
|
|
|
29,550,124
|
|
|
(1)
|
(In millions, except for share and per-share amounts)
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums, principally supplemental
health insurance |
$
|
19,072
|
|
|
$
|
20,135
|
|
|
$
|
22,148
|
|
|
$
|
20,362
|
|
|
$
|
18,073
|
|
Net investment income
|
3,319
|
|
|
3,293
|
|
|
3,473
|
|
|
3,280
|
|
|
3,007
|
|
|||||
Realized investment gains (losses)
|
215
|
|
|
399
|
|
|
(349
|
)
|
|
(1,552
|
)
|
|
(422
|
)
|
|||||
Other income
|
122
|
|
|
112
|
|
|
92
|
|
|
81
|
|
|
74
|
|
|||||
Total revenues
|
22,728
|
|
|
23,939
|
|
|
25,364
|
|
|
22,171
|
|
|
20,732
|
|
|||||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Benefits and claims, net
|
12,937
|
|
|
13,813
|
|
|
15,330
|
|
|
13,749
|
|
|
12,106
|
|
|||||
Expenses
|
5,300
|
|
|
5,310
|
|
|
5,732
|
|
|
5,472
|
|
|
5,065
|
|
|||||
Total benefits and expenses
|
18,237
|
|
|
19,123
|
|
|
21,062
|
|
|
19,221
|
|
|
17,171
|
|
|||||
Pretax earnings
|
4,491
|
|
|
4,816
|
|
|
4,302
|
|
|
2,950
|
|
|
3,561
|
|
|||||
Income taxes
|
1,540
|
|
|
1,658
|
|
|
1,436
|
|
|
1,013
|
|
|
1,233
|
|
|||||
Net earnings
|
$
|
2,951
|
|
|
$
|
3,158
|
|
|
$
|
2,866
|
|
|
$
|
1,937
|
|
|
$
|
2,328
|
|
Share and Per-Share Amounts
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings (basic)
|
$
|
6.54
|
|
|
$
|
6.80
|
|
|
$
|
6.14
|
|
|
$
|
4.16
|
|
|
$
|
4.96
|
|
Net earnings (diluted)
|
6.50
|
|
|
6.76
|
|
|
6.11
|
|
|
4.12
|
|
|
4.92
|
|
|||||
Cash dividends paid
|
1.50
|
|
|
1.42
|
|
|
1.34
|
|
|
1.23
|
|
|
1.14
|
|
|||||
Cash dividends declared
|
1.50
|
|
|
1.42
|
|
|
1.34
|
|
|
1.23
|
|
|
1.14
|
|
|||||
Weighted-average common shares used for basic
EPS (In thousands) |
451,204
|
|
|
464,502
|
|
|
466,868
|
|
|
466,519
|
|
|
469,038
|
|
|||||
Weighted-average common shares used for diluted
EPS (In thousands) |
454,000
|
|
|
467,408
|
|
|
469,287
|
|
|
469,370
|
|
|
473,085
|
|
|||||
Supplemental Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Yen/dollar exchange rate at year-end (yen)
|
120.55
|
|
|
105.39
|
|
|
86.58
|
|
|
77.74
|
|
|
81.49
|
|
|||||
Weighted-average yen/dollar exchange rate (yen)
|
105.46
|
|
|
97.54
|
|
|
79.81
|
|
|
79.75
|
|
|
87.73
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments and cash
|
$
|
107,341
|
|
|
$
|
108,459
|
|
|
$
|
118,219
|
|
|
$
|
103,462
|
|
|
$
|
88,230
|
|
Other
|
12,426
|
|
|
12,848
|
|
|
12,875
|
|
|
12,775
|
|
|
12,013
|
|
|||||
Total assets
|
$
|
119,767
|
|
|
$
|
121,307
|
|
|
$
|
131,094
|
|
|
$
|
116,237
|
|
|
$
|
100,243
|
|
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy liabilities
|
$
|
83,933
|
|
|
$
|
89,402
|
|
|
$
|
97,720
|
|
|
$
|
94,239
|
|
|
$
|
82,310
|
|
Income taxes
|
5,293
|
|
|
3,718
|
|
|
3,858
|
|
|
2,308
|
|
|
1,689
|
|
|||||
Notes payable
|
5,282
|
|
|
4,897
|
|
|
4,352
|
|
|
3,285
|
|
|
3,038
|
|
|||||
Other liabilities
|
6,912
|
|
|
8,670
|
|
|
9,186
|
|
|
3,459
|
|
|
2,666
|
|
|||||
Shareholders’ equity
|
18,347
|
|
|
14,620
|
|
|
15,978
|
|
|
12,946
|
|
|
10,540
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
119,767
|
|
|
$
|
121,307
|
|
|
$
|
131,094
|
|
|
$
|
116,237
|
|
|
$
|
100,243
|
|
•
|
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
|
•
|
exposure to significant financial and capital markets risk
|
•
|
fluctuations in foreign currency exchange rates
|
•
|
significant changes in investment yield rates
|
•
|
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
|
•
|
decline in creditworthiness of other financial institutions
|
•
|
deviations in actual experience from pricing and reserving assumptions
|
•
|
subsidiaries' ability to pay dividends to Aflac Incorporated
|
•
|
ineffective risk management policies and procedures
|
•
|
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
|
•
|
ongoing changes in our industry
|
•
|
events that damage our reputation
|
•
|
increased expenses for pension and other postretirement plans
|
•
|
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
|
(In millions)
|
2014
|
|
2013
|
||||
Japan segment:
|
|
|
|
||||
Future policy benefits
|
$
|
57,916
|
|
|
$
|
61,780
|
|
Unpaid policy claims
|
2,120
|
|
|
2,342
|
|
||
Other policy liabilities
|
14,539
|
|
|
16,180
|
|
||
Total Japan policy liabilities
|
$
|
74,575
|
|
|
$
|
80,302
|
|
U.S. segment:
|
|
|
|
||||
Future policy benefits
|
$
|
7,728
|
|
|
$
|
7,354
|
|
Unpaid policy claims
|
1,511
|
|
|
1,421
|
|
||
Other policy liabilities
|
117
|
|
|
323
|
|
||
Total U.S. policy liabilities
|
$
|
9,356
|
|
|
$
|
9,098
|
|
Consolidated:
|
|
|
|
||||
Future policy benefits
|
$
|
65,646
|
|
|
$
|
69,136
|
|
Unpaid policy claims
|
3,630
|
|
|
3,763
|
|
||
Other policy liabilities
|
14,657
|
|
|
16,503
|
|
||
Total consolidated policy liabilities
|
$
|
83,933
|
|
|
$
|
89,402
|
|
(In millions of dollars and billions of yen)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Aflac U.S.
|
$
|
7,728
|
|
|
$
|
7,354
|
|
|
$
|
6,931
|
|
|
Growth rate
|
5.1
|
%
|
|
6.1
|
%
|
|
6.9
|
%
|
|
|||
Aflac Japan
|
$
|
57,916
|
|
|
$
|
61,780
|
|
|
$
|
69,530
|
|
|
Growth rate
|
(6.3
|
)%
|
|
(11.1
|
)%
|
|
(4.5
|
)%
|
|
|||
Consolidated
|
$
|
65,646
|
|
|
$
|
69,136
|
|
|
$
|
76,463
|
|
|
Growth rate
|
(5.0
|
)%
|
|
(9.6
|
)%
|
|
(3.6
|
)%
|
|
|||
Yen/dollar exchange rate (end of period)
|
120.55
|
|
|
105.39
|
|
|
86.58
|
|
|
|||
Aflac Japan (in yen)
|
6,982
|
|
|
6,511
|
|
|
6,020
|
|
|
|||
Growth rate
|
7.2
|
%
|
|
8.2
|
%
|
|
6.4
|
%
|
|
(In millions)
|
|
Total Severity
|
|
||||||||||||||||||||||||||
Total Frequency
|
Decrease
by 2% |
|
Decrease
by 1% |
|
Unchanged
|
|
Increase
by 1% |
|
Increase
by 2% |
||||||||||||||||||||
Increase by 2%
|
|
$
|
0
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
47
|
|
|
|
|
$
|
70
|
|
|
|
|
$
|
94
|
|
|
Increase by 1%
|
|
(23
|
)
|
|
|
|
0
|
|
|
|
|
23
|
|
|
|
|
47
|
|
|
|
|
70
|
|
|
|||||
Unchanged
|
|
(46
|
)
|
|
|
|
(23
|
)
|
|
|
|
0
|
|
|
|
|
23
|
|
|
|
|
47
|
|
|
|||||
Decrease by 1%
|
|
(68
|
)
|
|
|
|
(46
|
)
|
|
|
|
(23
|
)
|
|
|
|
0
|
|
|
|
|
23
|
|
|
|||||
Decrease by 2%
|
|
(91
|
)
|
|
|
|
(68
|
)
|
|
|
|
(46
|
)
|
|
|
|
(23
|
)
|
|
|
|
0
|
|
|
|
In Millions
|
|
Per Diluted Share
|
||||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Operating earnings
|
$
|
2,797
|
|
|
$
|
2,887
|
|
|
$
|
3,097
|
|
|
$
|
6.16
|
|
|
$
|
6.18
|
|
|
$
|
6.60
|
|
Items impacting net earnings, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities transactions and impairments
|
119
|
|
|
41
|
|
|
(326
|
)
|
|
.26
|
|
|
.09
|
|
|
(.69
|
)
|
||||||
Impact of derivative and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Hedge costs related to foreign currency
investments |
(24
|
)
|
|
(17
|
)
|
|
(5
|
)
|
|
(.05
|
)
|
|
(.04
|
)
|
|
(.01
|
)
|
||||||
Other derivative and hedging activities
|
16
|
|
(1)
|
229
|
|
(1)
|
105
|
|
|
.03
|
|
|
.49
|
|
|
.22
|
|
||||||
Other and non-recurring income (loss)
|
43
|
|
|
18
|
|
|
(5
|
)
|
|
.10
|
|
|
.04
|
|
|
(.01
|
)
|
||||||
Net earnings
|
$
|
2,951
|
|
|
$
|
3,158
|
|
|
$
|
2,866
|
|
|
$
|
6.50
|
|
|
$
|
6.76
|
|
|
$
|
6.11
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Perpetual securities
|
$
|
0
|
|
|
$
|
70
|
|
|
$
|
243
|
|
|
Corporate bonds
|
31
|
|
|
102
|
|
|
345
|
|
|
|||
Mortgage- and asset-backed securities
|
0
|
|
|
0
|
|
|
3
|
|
|
|||
Sovereign and supranational
|
0
|
|
|
26
|
|
|
386
|
|
|
|||
Equity securities
|
0
|
|
|
1
|
|
|
0
|
|
|
|||
Total other-than-temporary impairment losses realized
(1)
|
$
|
31
|
|
|
$
|
199
|
|
|
$
|
977
|
|
|
Weighted-Average
Yen/Dollar Exchange Rate |
|
Operating Earnings Per Diluted Share
|
|
% Growth
Over 2014 |
|
Yen Impact
|
|||||||
100
|
|
$6.47 - 6.77
|
|
5.0
|
|
-
|
9.9%
|
|
|
$
|
.18
|
|
|
105.46
(2)
|
|
6.29 - 6.59
|
|
2.1
|
|
-
|
7.0
|
|
|
.00
|
|
|
|
115
|
|
6.01 - 6.31
|
|
(2.4
|
)
|
-
|
2.4
|
|
|
(.28
|
)
|
|
|
125
|
|
5.77 - 6.07
|
|
(6.3
|
)
|
-
|
(1.5)
|
|
|
(.52
|
)
|
|
|
135
|
|
5.56 - 5.86
|
|
(9.7
|
)
|
-
|
(4.9)
|
|
|
(.73
|
)
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||
Net premium income
|
$
|
13,861
|
|
|
$
|
14,982
|
|
|
$
|
17,151
|
|
Net investment income:
|
|
|
|
|
|
||||||
Yen-denominated investment income
|
1,429
|
|
|
1,497
|
|
|
1,902
|
|
|||
Dollar-denominated investment income
|
1,233
|
|
|
1,154
|
|
|
943
|
|
|||
Net investment income
|
2,662
|
|
|
2,651
|
|
|
2,845
|
|
|||
Other income (loss)
|
32
|
|
|
55
|
|
|
57
|
|
|||
Total operating revenues
|
16,555
|
|
|
17,688
|
|
|
20,053
|
|
|||
Benefits and claims, net
|
10,084
|
|
|
10,924
|
|
|
12,496
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Amortization of deferred policy acquisition costs
|
649
|
|
|
641
|
|
|
716
|
|
|||
Insurance commissions
|
845
|
|
|
944
|
|
|
1,174
|
|
|||
Insurance and other expenses
|
1,519
|
|
|
1,551
|
|
|
1,763
|
|
|||
Total operating expenses
|
3,013
|
|
|
3,136
|
|
|
3,653
|
|
|||
Total benefits and expenses
|
13,097
|
|
|
14,060
|
|
|
16,149
|
|
|||
Pretax operating earnings
(1)
|
$
|
3,458
|
|
|
$
|
3,628
|
|
|
$
|
3,904
|
|
Weighted-average yen/dollar exchange rate
|
105.46
|
|
|
97.54
|
|
|
79.81
|
|
|
In Dollars
|
|
In Yen
|
||||||||||||||
Percentage change over previous period:
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net premium income
|
(7.5
|
)%
|
|
(12.7
|
)%
|
|
9.8
|
%
|
|
.1
|
%
|
|
6.8
|
%
|
|
9.9
|
%
|
Net investment income
|
.4
|
|
|
(6.8
|
)
|
|
5.8
|
|
|
8.8
|
|
|
13.9
|
|
|
6.1
|
|
Total operating revenues
|
(6.4
|
)
|
|
(11.8
|
)
|
|
9.3
|
|
|
1.3
|
|
|
7.8
|
|
|
9.4
|
|
Pretax operating earnings
(1)
|
(4.7
|
)
|
|
(7.1
|
)
|
|
2.0
|
|
|
3.1
|
|
|
13.6
|
|
|
2.0
|
|
|
Including Foreign
Currency Changes |
|
Excluding Foreign
Currency Changes (2) |
|||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|||||
Net investment income
|
8.8
|
%
|
|
13.9
|
%
|
|
6.1
|
%
|
|
4.8
|
%
|
|
4.7
|
%
|
5.9
|
%
|
Total operating revenues
|
1.3
|
|
|
7.8
|
|
|
9.4
|
|
|
.7
|
|
|
6.4
|
|
9.3
|
|
Pretax operating earnings
(1)
|
3.1
|
|
|
13.6
|
|
|
2.0
|
|
|
.3
|
|
|
7.0
|
|
1.7
|
|
Ratios to total revenues:
|
2014
|
|
2013
|
|
2012
|
|
|||
Benefits and claims, net
|
60.9
|
%
|
|
61.7
|
%
|
|
62.3
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|||
Amortization of deferred policy acquisition costs
|
3.9
|
|
|
3.6
|
|
|
3.6
|
|
|
Insurance commissions
|
5.1
|
|
|
5.3
|
|
|
5.9
|
|
|
Insurance and other expenses
|
9.2
|
|
|
8.9
|
|
|
8.7
|
|
|
Total operating expenses
|
18.2
|
|
|
17.8
|
|
|
18.2
|
|
|
Pretax operating earnings
(1)
|
20.9
|
|
|
20.5
|
|
|
19.5
|
|
|
|
In Dollars
|
|
In Yen
|
|||||||||||||||||
(In millions of dollars and billions of yen)
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|||||||||
New annualized premium sales
|
$
|
1,080
|
|
|
$
|
1,539
|
|
|
$
|
2,641
|
|
|
114.5
|
|
|
149.3
|
|
|
210.6
|
|
Increase (decrease) over prior period
|
(29.8
|
)%
|
|
(41.7
|
)%
|
|
30.3
|
%
|
|
(23.3
|
)%
|
|
(29.1
|
)%
|
|
30.8
|
%
|
|
2014
|
|
2013
|
|
2012
|
|
|||
Medical
|
31.8
|
%
|
|
27.9
|
%
|
|
17.5
|
%
|
|
Cancer
|
30.3
|
|
|
17.0
|
|
|
13.1
|
|
|
Ordinary life:
|
|
|
|
|
|
|
|||
Child endowment
|
10.2
|
|
|
11.7
|
|
|
11.6
|
|
|
WAYS
|
14.0
|
|
|
27.5
|
|
|
44.9
|
|
|
Other ordinary life
|
8.3
|
|
|
10.3
|
|
|
8.5
|
|
|
Other
|
5.4
|
|
|
5.6
|
|
|
4.4
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
2014
|
|
2013
|
|
2012
|
|
|||
Debt security purchases, at cost:
|
|
|
|
|
|
|
|||
Banks/financial institutions
|
.4
|
%
|
|
.4
|
%
|
|
2.3
|
%
|
|
Government and agencies
|
74.1
|
|
|
76.2
|
|
|
73.8
|
|
|
Municipalities
|
1.0
|
|
|
.0
|
|
|
.0
|
|
|
Public utilities
|
2.6
|
|
|
3.3
|
|
|
3.4
|
|
|
Sovereign and supranational
|
.0
|
|
|
.0
|
|
|
.1
|
|
|
Other corporate
|
21.9
|
|
|
20.1
|
|
|
20.4
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
2014
|
|
2013
|
|
2012
|
|||
AAA
|
7.7
|
%
|
|
.3
|
%
|
|
.3
|
%
|
AA
|
78.6
|
|
|
77.7
|
|
|
74.9
|
|
A
|
5.4
|
|
|
10.9
|
|
|
8.5
|
|
BBB
|
6.6
|
|
|
9.4
|
|
|
15.1
|
|
BB or Lower
|
1.7
|
|
|
1.7
|
|
|
1.2
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
2014
(1)
|
|
2013
(1)
|
|
2012
(1)
|
|||
New money yield
|
2.16
|
%
|
|
2.48
|
%
|
|
2.40
|
%
|
Return on average invested assets, net of investment expenses
|
2.80
|
|
|
2.86
|
|
|
2.89
|
|
Portfolio book yield, including dollar-denominated investments, end of period
|
2.83
|
|
|
2.80
|
|
|
2.87
|
|
|
|
2014
|
|
|
|
2013
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.3
|
%
|
|
|
|
1.2
|
%
|
|
|
|
1.4
|
%
|
|
|
|
1.4
|
%
|
|
AA
|
|
5.3
|
|
|
|
|
5.4
|
|
|
|
|
51.3
|
|
|
|
|
52.2
|
|
|
A
|
|
66.4
|
|
|
|
|
67.4
|
|
|
|
|
20.7
|
|
|
|
|
20.9
|
|
|
BBB
|
|
23.0
|
|
|
|
|
22.0
|
|
|
|
|
22.5
|
|
|
|
|
21.6
|
|
|
BB or lower
|
|
4.0
|
|
|
|
|
4.0
|
|
|
|
|
4.1
|
|
|
|
|
3.9
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||
Premium income
|
$
|
5,211
|
|
|
$
|
5,153
|
|
|
$
|
4,996
|
|
Net investment income
|
645
|
|
|
632
|
|
|
613
|
|
|||
Other income
|
3
|
|
|
6
|
|
|
19
|
|
|||
Total operating revenues
|
5,859
|
|
|
5,791
|
|
|
5,628
|
|
|||
Benefits and claims
|
2,853
|
|
|
2,889
|
|
|
2,834
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Amortization of deferred policy acquisition costs
|
459
|
|
|
433
|
|
|
400
|
|
|||
Insurance commissions
|
590
|
|
|
583
|
|
|
570
|
|
|||
Insurance and other expenses
|
884
|
|
|
848
|
|
|
827
|
|
|||
Total operating expenses
|
1,933
|
|
|
1,864
|
|
|
1,797
|
|
|||
Total benefits and expenses
|
4,786
|
|
|
4,753
|
|
|
4,631
|
|
|||
Pretax operating earnings
(1)
|
$
|
1,073
|
|
|
$
|
1,038
|
|
|
$
|
997
|
|
Percentage change over previous period:
|
|
|
|
|
|
||||||
Premium income
|
1.1
|
%
|
|
3.1
|
%
|
|
5.4
|
%
|
|||
Net investment income
|
2.1
|
|
|
3.2
|
|
|
4.2
|
|
|||
Total operating revenues
|
1.2
|
|
|
2.9
|
|
|
5.4
|
|
|||
Pretax operating earnings
(1)
|
3.3
|
|
|
4.1
|
|
|
10.3
|
|
Ratios to total revenues:
|
2014
|
|
2013
|
|
2012
|
|
|||
Benefits and claims
|
48.7
|
%
|
|
49.9
|
%
|
|
50.3
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|||
Amortization of deferred policy acquisition costs
|
7.8
|
|
|
7.5
|
|
|
7.1
|
|
|
Insurance commissions
|
10.1
|
|
|
10.1
|
|
|
10.1
|
|
|
Insurance and other expenses
|
15.1
|
|
|
14.6
|
|
|
14.8
|
|
|
Total operating expenses
|
33.0
|
|
|
32.2
|
|
|
32.0
|
|
|
Pretax operating earnings
(1)
|
18.3
|
|
|
17.9
|
|
|
17.7
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
|
||||||
New annualized premium sales
|
$
|
1,433
|
|
|
$
|
1,424
|
|
|
$
|
1,488
|
|
|
Increase (decrease) over prior period
|
.7
|
%
|
|
(4.3
|
)%
|
|
.8
|
%
|
|
|
2014
|
|
2013
|
|
2012
|
|
|||
Income-loss protection:
|
|
|
|
|
|
|
|||
Short-term disability
|
22.4
|
%
|
|
21.2
|
%
|
|
20.3
|
%
|
|
Life
|
5.8
|
|
|
5.3
|
|
|
5.4
|
|
|
Asset-loss protection:
|
|
|
|
|
|
|
|||
Accident
|
28.1
|
|
|
27.3
|
|
|
29.5
|
|
|
Critical care
(1)
|
21.4
|
|
|
20.8
|
|
|
23.1
|
|
|
Supplemental medical:
|
|
|
|
|
|
|
|||
Hospital indemnity
|
16.4
|
|
|
16.9
|
|
|
15.3
|
|
|
Dental/vision
|
5.9
|
|
|
6.2
|
|
|
6.1
|
|
|
Other
|
.0
|
|
|
2.3
|
|
|
.3
|
|
|
Total
|
100.0
|
%
|
|
100.0%
|
|
100.0
|
%
|
|
|
2014
|
|
2013
|
|
2012
|
|
|||
Debt security purchases, at cost:
|
|
|
|
|
|
|
|||
Banks/financial institutions
|
3.3
|
%
|
|
4.8
|
%
|
|
8.5
|
%
|
|
Government and agencies
|
1.0
|
|
|
.1
|
|
|
4.7
|
|
|
Municipalities
|
.1
|
|
|
.0
|
|
|
.8
|
|
|
Public utilities
|
14.8
|
|
|
11.9
|
|
|
23.5
|
|
|
Sovereign and supranational
|
.2
|
|
|
.0
|
|
|
.9
|
|
|
Mortgage- and asset-backed securities
|
5.0
|
|
|
4.5
|
|
|
.0
|
|
|
Other corporate
|
75.6
|
|
|
78.7
|
|
|
61.6
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
2014
|
|
2013
|
|
2012
|
|
|||
New money yield
|
4.32
|
%
|
|
4.06
|
%
|
|
3.96
|
%
|
|
Return on average invested assets, net of investment expenses
|
5.46
|
|
|
5.70
|
|
|
6.25
|
|
|
Portfolio book yield, end of period
|
5.89
|
|
|
6.01
|
|
|
6.28
|
|
|
|
|
2014
|
|
|
|
2013
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.0
|
%
|
|
|
|
.9
|
%
|
|
|
|
1.0
|
%
|
|
|
|
1.0
|
%
|
|
AA
|
|
8.1
|
|
|
|
|
8.4
|
|
|
|
|
8.4
|
|
|
|
|
8.9
|
|
|
A
|
|
47.8
|
|
|
|
|
48.8
|
|
|
|
|
45.9
|
|
|
|
|
46.4
|
|
|
BBB
|
|
39.8
|
|
|
|
|
38.7
|
|
|
|
|
40.7
|
|
|
|
|
39.9
|
|
|
BB or lower
|
|
3.3
|
|
|
|
|
3.2
|
|
|
|
|
4.0
|
|
|
|
|
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)
|
|
120.55
|
|
|
|
|
|
|
|
|
105.39
|
|
|
||||
Investments and cash
|
|
$
|
107,341
|
|
|
|
|
$
|
(9,567
|
)
|
|
|
|
$
|
116,908
|
|
|
Deferred policy acquisition costs
|
|
8,273
|
|
|
|
|
(750
|
)
|
|
|
|
9,023
|
|
|
|||
Total assets
|
|
119,767
|
|
|
|
|
(10,706
|
)
|
|
|
|
130,473
|
|
|
|||
Policy liabilities
|
|
83,933
|
|
|
|
|
(10,727
|
)
|
|
|
|
94,660
|
|
|
|||
Total liabilities
|
|
101,420
|
|
|
|
|
(12,024
|
)
|
|
|
|
113,444
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
|
||||||||||||
(In millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
||||||||
Securities available for sale, at fair value:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
52,196
|
|
|
$
|
46,448
|
|
|
$
|
12,940
|
|
(1)
|
$
|
11,290
|
|
(1)
|
Perpetual securities
|
2,609
|
|
|
2,839
|
|
|
60
|
|
|
108
|
|
|
||||
Equity securities
|
23
|
|
|
21
|
|
|
5
|
|
|
0
|
|
|
||||
Total available for sale
|
54,828
|
|
|
49,308
|
|
|
13,005
|
|
|
11,398
|
|
|
||||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
34,242
|
|
|
44,415
|
|
|
0
|
|
|
0
|
|
|
||||
Total held to maturity
|
34,242
|
|
|
44,415
|
|
|
0
|
|
|
0
|
|
|
||||
Total investment securities
|
$
|
89,070
|
|
|
$
|
93,723
|
|
|
$
|
13,005
|
|
|
$
|
11,398
|
|
|
(In millions)
|
2014
|
|
2013
|
|
||||||||||||||||||||
Yen/dollar exchange rates
|
105.55
|
|
|
120.55
(1)
|
|
|
135.55
|
|
|
90.39
|
|
|
105.39
(1)
|
|
|
120.39
|
|
|
||||||
Yen-denominated financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturities
(2)
|
$
|
32,178
|
|
|
$
|
28,174
|
|
|
$
|
25,056
|
|
|
$
|
27,893
|
|
|
$
|
23,923
|
|
|
$
|
20,942
|
|
|
Fixed maturities - consolidated variable
interest entities (3) |
1,273
|
|
|
1,114
|
|
|
992
|
|
|
2,419
|
|
|
2,075
|
|
|
1,816
|
|
|
||||||
Perpetual securities
|
2,458
|
|
|
2,153
|
|
|
1,914
|
|
|
2,734
|
|
|
2,345
|
|
|
2,053
|
|
|
||||||
Perpetual securities - consolidated
variable interest entities (3) |
390
|
|
|
341
|
|
|
304
|
|
|
443
|
|
|
380
|
|
|
333
|
|
|
||||||
Equity securities
|
19
|
|
|
17
|
|
|
15
|
|
|
20
|
|
|
17
|
|
|
15
|
|
|
||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturities
|
39,013
|
|
|
34,159
|
|
|
30,379
|
|
|
51,509
|
|
|
44,178
|
|
|
38,673
|
|
|
||||||
Fixed maturities - consolidated variable
interest entities (3) |
95
|
|
|
83
|
|
|
74
|
|
|
277
|
|
|
237
|
|
|
208
|
|
|
||||||
Cash and cash equivalents
|
370
|
|
|
324
|
|
|
288
|
|
|
479
|
|
|
411
|
|
|
360
|
|
|
||||||
Derivatives
|
596
|
|
|
802
|
|
|
1,266
|
|
|
1,467
|
|
|
488
|
|
|
737
|
|
|
||||||
Other financial instruments
|
159
|
|
|
139
|
|
|
124
|
|
|
166
|
|
|
143
|
|
|
125
|
|
|
||||||
Subtotal
|
76,551
|
|
|
67,306
|
|
|
60,412
|
|
|
87,407
|
|
|
74,197
|
|
|
65,262
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Notes payable
|
372
|
|
|
325
|
|
|
290
|
|
|
814
|
|
|
699
|
|
|
611
|
|
|
||||||
Derivatives
|
992
|
|
|
2,423
|
|
|
3,881
|
|
|
489
|
|
|
837
|
|
|
2,504
|
|
|
||||||
Subtotal
|
1,364
|
|
|
2,748
|
|
|
4,171
|
|
|
1,303
|
|
|
1,536
|
|
|
3,115
|
|
|
||||||
Net yen-denominated financial instruments
|
75,187
|
|
|
64,558
|
|
|
56,241
|
|
|
86,104
|
|
|
72,661
|
|
|
62,147
|
|
|
||||||
Other yen-denominated assets
|
8,212
|
|
|
7,190
|
|
|
6,394
|
|
|
9,327
|
|
|
8,000
|
|
|
7,003
|
|
|
||||||
Other yen-denominated liabilities
|
92,902
|
|
|
81,342
|
|
|
72,341
|
|
|
104,704
|
|
|
89,801
|
|
|
78,613
|
|
|
||||||
Consolidated yen-denominated net assets
(liabilities) subject to foreign currency fluctuation (2) |
$
|
(9,503
|
)
|
|
$
|
(9,594
|
)
|
|
$
|
(9,706
|
)
|
|
$
|
(9,273
|
)
|
|
$
|
(9,140
|
)
|
|
$
|
(9,463
|
)
|
|
|
2014
|
|
2013
|
||||||||||||||||||
(In millions)
|
Fair
Value |
+100
Basis Points |
|
Fair
Value |
+100
Basis Points |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt and perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated
|
|
$
|
67,785
|
|
|
|
$
|
58,596
|
|
|
|
|
$
|
71,844
|
|
|
|
$
|
62,708
|
|
|
Dollar-denominated
|
|
36,285
|
|
|
|
32,865
|
|
|
|
|
32,072
|
|
|
|
29,061
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated
|
|
2,494
|
|
|
|
2,304
|
|
|
|
|
2,725
|
|
|
|
2,524
|
|
|
||||
Dollar-denominated
|
|
175
|
|
|
|
168
|
|
|
|
|
222
|
|
|
|
212
|
|
|
||||
Total debt and perpetual securities
|
|
$
|
106,739
|
|
|
|
$
|
93,933
|
|
|
|
|
$
|
106,863
|
|
|
|
$
|
94,505
|
|
|
Derivatives
|
|
$
|
802
|
|
|
|
$
|
692
|
|
|
|
|
$
|
487
|
|
|
|
$
|
809
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notes payable
(1)
|
|
$
|
5,835
|
|
|
|
$
|
5,450
|
|
|
|
|
$
|
5,241
|
|
|
|
$
|
4,908
|
|
|
Derivatives
|
|
2,423
|
|
|
|
2,101
|
|
|
|
|
833
|
|
|
|
800
|
|
|
(In years)
|
2014
|
|
2013
|
|
||
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)
|
2014
|
|
2013
|
|
||
Dollar-denominated debt and perpetual securities
|
11
|
|
|
10
|
|
|
Policy benefits and related expenses to be paid in future years
|
8
|
|
|
8
|
|
|
Premiums to be received in future years on policies in force
|
6
|
|
|
6
|
|
|
|
2014
|
2013
|
2012
|
|||||||||||||||||||||
|
U.S.
|
Japan
|
U.S.
|
Japan
|
U.S.
|
Japan
(1)
|
||||||||||||||||||
Policies issued during year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Required interest on policy reserves
|
|
3.65
|
%
|
|
|
1.87
|
%
|
(1)
|
|
3.65
|
%
|
|
|
2.00
|
%
|
(1)
|
|
3.75
|
%
|
|
|
2.00
|
%
|
|
New money yield on investments
|
|
4.16
|
|
|
|
2.09
|
|
|
|
3.93
|
|
|
|
2.40
|
|
|
|
3.90
|
|
|
|
2.24
|
|
|
Policies in force at year-end:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Required interest on policy reserves
|
|
5.69
|
|
|
|
3.76
|
|
(1)
|
|
5.84
|
|
|
|
3.91
|
|
(1)
|
|
5.95
|
|
|
|
4.00
|
|
|
Portfolio book yield, end of period
|
|
5.73
|
|
|
|
2.76
|
|
|
|
5.88
|
|
|
|
2.72
|
|
|
|
6.22
|
|
|
|
2.83
|
|
|
|
2014
|
|
2013
|
|
2012
|
|
|||
AAA
|
7.6
|
%
|
|
.6
|
%
|
|
.5
|
%
|
|
AA
|
74.5
|
|
|
74.2
|
|
|
72.1
|
|
|
A
|
8.0
|
|
|
12.6
|
|
|
10.3
|
|
|
BBB
|
8.3
|
|
|
11.0
|
|
|
15.9
|
|
|
BB or lower
|
1.6
|
|
|
1.6
|
|
|
1.2
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
2014
|
|
|
|
2013
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.3
|
%
|
|
|
|
1.3
|
%
|
|
|
|
1.4
|
%
|
|
|
|
1.4
|
%
|
|
AA
|
|
5.7
|
|
|
|
|
5.8
|
|
|
|
|
46.7
|
|
|
|
|
47.5
|
|
|
A
|
|
64.1
|
|
|
|
|
65.1
|
|
|
|
|
23.4
|
|
|
|
|
23.7
|
|
|
BBB
|
|
25.0
|
|
|
|
|
23.9
|
|
|
|
|
24.4
|
|
|
|
|
23.6
|
|
|
BB or lower
|
|
3.9
|
|
|
|
|
3.9
|
|
|
|
|
4.1
|
|
|
|
|
3.8
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
2014
|
|
|
|
2013
|
|
||||||||||||||
(In millions)
|
Amortized
Cost |
|
Percentage
of Total |
|
Amortized
Cost |
|
Percentage
of Total |
||||||||||||||
Senior notes
|
|
$
|
89,308
|
|
|
|
|
93.9
|
%
|
|
|
|
$
|
97,165
|
|
|
|
|
93.5
|
%
|
|
Subordinated securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities (stated maturity date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Lower Tier II
|
|
2,751
|
|
|
|
|
2.9
|
|
|
|
|
3,156
|
|
|
|
|
3.1
|
|
|
||
Tier I
(1)
|
|
131
|
|
|
|
|
.1
|
|
|
|
|
139
|
|
|
|
|
.1
|
|
|
||
Surplus notes
|
|
301
|
|
|
|
|
.3
|
|
|
|
|
330
|
|
|
|
|
.3
|
|
|
||
Trust preferred - non-banks
|
|
85
|
|
|
|
|
.1
|
|
|
|
|
85
|
|
|
|
|
.1
|
|
|
||
Other subordinated - non-banks
|
|
51
|
|
|
|
|
.1
|
|
|
|
|
51
|
|
|
|
|
.0
|
|
|
||
Total fixed maturities
|
|
3,319
|
|
|
|
|
3.5
|
|
|
|
|
3,761
|
|
|
|
|
3.6
|
|
|
||
Perpetual securities (economic maturity date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Upper Tier II
|
|
1,554
|
|
|
|
|
1.6
|
|
|
|
|
1,920
|
|
|
|
|
1.9
|
|
|
||
Tier I
|
|
703
|
|
|
|
|
.8
|
|
|
|
|
858
|
|
|
|
|
.8
|
|
|
||
Other subordinated - non-banks
|
|
183
|
|
|
|
|
.2
|
|
|
|
|
209
|
|
|
|
|
.2
|
|
|
||
Total perpetual securities
|
|
2,440
|
|
|
|
|
2.6
|
|
|
|
|
2,987
|
|
|
|
|
2.9
|
|
|
||
Total debt and perpetual securities
|
|
$
|
95,067
|
|
|
|
|
100.0
|
%
|
|
|
|
$
|
103,913
|
|
|
|
|
100.0
|
%
|
|
|
Amortized
|
|
% of
|
|
|
|
Ratings
|
|||||||
(In millions)
|
Cost
|
|
Total
|
|
Seniority
|
|
Moody’s
|
|
S&P
|
|
Fitch
|
|||
Japan National Government
(1)
|
$
|
37,021
|
|
|
38.94
|
%
|
|
Senior
|
|
A1
|
|
AA-
|
|
A+
|
Republic of South Africa
|
498
|
|
|
.52
|
|
|
Senior
|
|
Baa2
|
|
BBB-
|
|
BBB
|
|
Bank of America NA
|
377
|
|
|
.40
|
|
|
|
|
|
|
|
|
|
|
Bank of America Corp.
|
207
|
|
|
.22
|
|
|
Senior
|
|
Baa2
|
|
A-
|
|
A
|
|
Bank of America Corp.
|
166
|
|
|
.18
|
|
|
Lower Tier II
|
|
Baa3
|
|
BBB+
|
|
BBB+
|
|
Bank of America NA
|
4
|
|
|
.00
|
|
|
Senior
|
|
A2
|
|
A
|
|
A
|
|
Bank of Tokyo-Mitsubishi UFJ Ltd.
|
373
|
|
|
.39
|
|
|
|
|
|
|
|
|
|
|
BTMU Curacao Holdings NV
|
373
|
|
|
.39
|
|
|
Lower Tier II
|
|
A2
|
|
—
|
|
A-
|
|
Investcorp SA
|
357
|
|
|
.38
|
|
|
|
|
|
|
|
|
|
|
Investcorp Capital Limited
|
357
|
|
|
.38
|
|
|
Senior
|
|
Ba2
|
|
—
|
|
BB
|
|
JP Morgan Chase & Co.
|
336
|
|
|
.35
|
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co. (including Bear Stearns Companies Inc.)
|
295
|
|
|
.31
|
|
|
Senior
|
|
A3
|
|
A
|
|
A+
|
|
JPMorgan Chase & Co. (Bank One Corp.)
|
17
|
|
|
.02
|
|
|
Lower Tier II
|
|
Baa1
|
|
A-
|
|
A
|
|
JPMorgan Chase & Co. (FNBC)
|
13
|
|
|
.01
|
|
|
Senior
|
|
Aa1
|
|
A+
|
|
—
|
|
JPMorgan Chase & Co. (NBD Bank)
|
11
|
|
|
.01
|
|
|
Lower Tier II
|
|
A2
|
|
A
|
|
A
|
|
Deutsche Bank AG
|
332
|
|
|
.35
|
|
|
|
|
|
|
|
|
|
|
Deutsche Postbank AG
|
199
|
|
|
.21
|
|
|
Lower Tier II
|
|
Ba1
|
|
—
|
|
A-
|
|
Deutsche Bank Capital Trust II
|
120
|
|
|
.13
|
|
|
Tier I
|
|
Ba3
|
|
BB
|
|
BBB-
|
|
Deutsche BK CAP FDG Capital Trust I
|
13
|
|
|
.01
|
|
|
Tier I
|
|
Ba3
|
|
BB
|
|
BBB-
|
|
Sumitomo Mitsui Financial Group Inc.
|
332
|
|
|
.35
|
|
|
|
|
|
|
|
|
|
|
Sumitomo Mitsui Banking Corporation (includes SMBC
International Finance) |
207
|
|
|
.22
|
|
|
Upper Tier II
|
|
A3
|
|
BBB+
|
|
—
|
|
Sumitomo Mitsui Banking Corporation
|
83
|
|
|
.09
|
|
|
Lower Tier II
|
|
A2
|
|
A
|
|
—
|
|
Sumitomo Mitsui Banking Corporation
|
42
|
|
|
.04
|
|
|
Upper Tier II
|
|
A3
|
|
BBB+
|
|
—
|
|
National Grid PLC
|
332
|
|
|
.35
|
|
|
|
|
|
|
|
|
|
|
National Grid Gas PLC
|
166
|
|
|
.18
|
|
|
Senior
|
|
A3
|
|
A-
|
|
A
|
|
National Grid Electricity Transmission PLC
|
166
|
|
|
.17
|
|
|
Senior
|
|
A3
|
|
A-
|
|
A
|
|
Telecom Italia SpA
|
332
|
|
|
.35
|
|
|
|
|
|
|
|
|
|
|
Telecom Italia Finance SA
|
166
|
|
|
.18
|
|
|
Senior
|
|
Ba1
|
|
BB+
|
|
BBB-
|
|
Olivetti Finance NV
|
166
|
|
|
.17
|
|
|
Senior
|
|
Ba1
|
|
BB+
|
|
BBB-
|
|
Citigroup Inc.
|
311
|
|
|
.33
|
|
|
|
|
|
|
|
|
|
|
Citigroup Inc. (includes Citigroup Global Markets Holdings Inc.)
|
249
|
|
|
.26
|
|
|
Senior
|
|
Baa2
|
|
A-
|
|
A
|
|
Citigroup Inc. (Citicorp)
|
61
|
|
|
.07
|
|
|
Senior
|
|
Baa2
|
|
A-
|
|
A
|
|
Citigroup Inc. (Citicorp)
|
1
|
|
|
.00
|
|
|
Lower Tier II
|
|
Baa3
|
|
BBB+
|
|
A-
|
|
Banobras
|
307
|
|
|
.32
|
|
|
Senior
|
|
A3
|
|
BBB+
|
|
BBB+
|
|
Petroleos Mexicanos (Pemex)
|
300
|
|
|
.32
|
|
|
|
|
|
|
|
|
|
|
Pemex Proj FDG Master TR
|
249
|
|
|
.26
|
|
|
Senior
|
|
A3
|
|
BBB+
|
|
BBB+
|
|
Pemex Finance LTD
|
51
|
|
|
.06
|
|
|
Senior
|
|
A3
|
|
A-
|
|
A+
|
|
Sultanate of Oman
|
290
|
|
|
.31
|
|
|
Senior
|
|
A1
|
|
A
|
|
—
|
|
Koninklijke Ahold NV
|
288
|
|
|
.30
|
|
|
|
|
|
|
|
|
|
|
Koninklijke Ahold NV
|
274
|
|
|
.28
|
|
|
Senior
|
|
Baa3
|
|
BBB
|
|
BBB
|
|
Ahold USA Lease
|
14
|
|
|
.02
|
|
|
Senior
|
|
Baa3
|
|
BBB
|
|
—
|
|
Nordea Bank AB
|
280
|
|
|
.29
|
|
|
|
|
|
|
|
|
|
|
Nordea Bank AB
|
213
|
|
|
.22
|
|
|
Tier I
|
|
Baa3
|
|
BBB
|
|
BBB+
|
|
Nordea Bank Finland
|
66
|
|
|
.07
|
|
|
Upper Tier II
|
|
Baa2
|
|
—
|
|
—
|
|
Nordea Bank AB
|
1
|
|
|
.00
|
|
|
Senior
|
|
Aa3
|
|
AA-
|
|
AA-
|
|
German Agency Banks
|
278
|
|
|
.29
|
|
|
|
|
|
|
|
|
|
|
Landwirtschaftliche Rentenbank
|
207
|
|
|
.22
|
|
|
Lower Tier II
|
|
Aaa
|
|
AAA
|
|
AAA
|
|
KFW
|
71
|
|
|
.07
|
|
|
Senior
|
|
Aaa
|
|
AAA
|
|
AAA
|
|
Navient Corp
|
278
|
|
|
.29
|
|
|
Senior
|
|
Ba3
|
|
BB
|
|
BB
|
|
AXA
|
275
|
|
|
.29
|
|
|
|
|
|
|
|
|
|
|
AXA-UAP
|
224
|
|
|
.24
|
|
|
Upper Tier II
|
|
A3
|
|
BBB
|
|
BBB
|
|
AXA
|
51
|
|
|
.05
|
|
|
CC FNB
|
|
A3
|
|
BBB
|
|
BBB
|
|
Deutsche Telekom AG
|
270
|
|
|
.28
|
|
|
|
|
|
|
|
|
|
|
Deutsche Telekom AG
|
249
|
|
|
.26
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
BBB+
|
|
Deutsche Telekom International Finance
|
21
|
|
|
.02
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
BBB+
|
|
Subtotal
|
$
|
43,167
|
|
|
45.40
|
%
|
|
|
|
|
|
|
|
|
Total debt and perpetual securities
|
$
|
95,067
|
|
|
100.00
|
%
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
||||||||||
(In millions)
|
Amortized Cost
|
|
% of
Total |
|
Amortized Cost
|
|
% of
Total |
|
||||||
Japan
|
$
|
39,804
|
|
|
41.9
|
%
|
|
$
|
45,224
|
|
|
43.5
|
%
|
|
United States and Canada
|
28,884
|
|
|
30.4
|
|
|
28,167
|
|
|
27.1
|
|
|
||
United Kingdom
|
3,121
|
|
|
3.3
|
|
|
3,385
|
|
|
3.3
|
|
|
||
Germany
|
2,657
|
|
|
2.8
|
|
|
3,070
|
|
|
2.9
|
|
|
||
France
|
1,747
|
|
|
1.8
|
|
|
2,085
|
|
|
2.0
|
|
|
||
Peripheral Eurozone
|
2,925
|
|
|
3.1
|
|
|
3,365
|
|
|
3.2
|
|
|
||
Portugal
|
200
|
|
|
.2
|
|
|
230
|
|
|
.2
|
|
|
||
Italy
|
1,674
|
|
|
1.8
|
|
|
1,914
|
|
|
1.8
|
|
|
||
Ireland
|
332
|
|
|
.3
|
|
|
410
|
|
|
.4
|
|
|
||
Spain
|
719
|
|
|
.8
|
|
|
811
|
|
|
.8
|
|
|
||
Nordic Region
|
2,198
|
|
|
2.2
|
|
|
2,564
|
|
|
2.5
|
|
|
||
Sweden
|
973
|
|
|
1.0
|
|
|
1,109
|
|
|
1.1
|
|
|
||
Norway
|
513
|
|
|
.5
|
|
|
641
|
|
|
.6
|
|
|
||
Denmark
|
332
|
|
|
.3
|
|
|
380
|
|
|
.4
|
|
|
||
Finland
|
380
|
|
|
.4
|
|
|
434
|
|
|
.4
|
|
|
||
Other Europe
|
2,711
|
|
|
2.8
|
|
|
3,313
|
|
|
3.2
|
|
|
||
Netherlands
|
1,497
|
|
|
1.6
|
|
|
1,838
|
|
|
1.8
|
|
|
||
Switzerland
|
225
|
|
|
.2
|
|
|
236
|
|
|
.2
|
|
|
||
Czech Republic
|
415
|
|
|
.4
|
|
|
474
|
|
|
.5
|
|
|
||
Austria
|
184
|
|
|
.2
|
|
|
315
|
|
|
.3
|
|
|
||
Belgium
|
224
|
|
|
.2
|
|
|
254
|
|
|
.2
|
|
|
||
Poland
|
166
|
|
|
.2
|
|
|
196
|
|
|
.2
|
|
|
||
Asia excluding Japan
|
3,575
|
|
|
3.8
|
|
|
4,163
|
|
|
4.0
|
|
|
||
Africa and Middle East
|
2,121
|
|
|
2.2
|
|
|
2,579
|
|
|
2.5
|
|
|
||
Latin America
|
2,622
|
|
|
2.8
|
|
|
2,911
|
|
|
2.8
|
|
|
||
Australia
|
2,262
|
|
|
2.4
|
|
|
2,594
|
|
|
2.5
|
|
|
||
All Others
|
440
|
|
|
.5
|
|
|
493
|
|
|
.5
|
|
|
||
Total debt and perpetual securities
|
$
|
95,067
|
|
|
100.0
|
%
|
|
$
|
103,913
|
|
|
100.0
|
%
|
|
|
|
2014
|
|
|
|
2013
|
|
||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Publicly issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
65,830
|
|
|
|
|
$
|
74,190
|
|
|
|
|
$
|
69,934
|
|
|
|
|
$
|
72,179
|
|
|
Perpetual securities
|
|
107
|
|
|
|
|
154
|
|
|
|
|
117
|
|
|
|
|
150
|
|
|
||||
Equity securities
|
|
12
|
|
|
|
|
19
|
|
|
|
|
9
|
|
|
|
|
14
|
|
|
||||
Total publicly issued
|
|
65,949
|
|
|
|
|
74,363
|
|
|
|
|
70,060
|
|
|
|
|
72,343
|
|
|
||||
Privately issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
26,797
|
|
|
|
|
29,880
|
|
|
|
|
30,992
|
|
|
|
|
31,737
|
|
|
||||
Perpetual securities
|
|
2,333
|
|
|
|
|
2,515
|
|
|
|
|
2,870
|
|
|
|
|
2,797
|
|
|
||||
Equity securities
|
|
7
|
|
|
|
|
9
|
|
|
|
|
8
|
|
|
|
|
7
|
|
|
||||
Total privately issued
|
|
29,137
|
|
|
|
|
32,404
|
|
|
|
|
33,870
|
|
|
|
|
34,541
|
|
|
||||
Total investment securities
|
|
$
|
95,086
|
|
|
|
|
$
|
106,767
|
|
|
|
|
$
|
103,930
|
|
|
|
|
$
|
106,884
|
|
|
(Amortized cost, in millions)
|
2014
|
|
2013
|
||||
Privately issued securities as a percentage of total debt and perpetual
securities |
30.6
|
%
|
|
32.6
|
%
|
||
Privately issued securities held by Aflac Japan
|
$
|
26,468
|
|
|
$
|
31,040
|
|
Privately issued securities held by Aflac Japan as a percentage of total debt
and perpetual securities |
27.8
|
%
|
|
29.9
|
%
|
(Amortized cost, in millions)
|
2014
|
|
2013
|
||||
Privately issued reverse-dual currency securities
|
$
|
6,196
|
|
|
$
|
7,087
|
|
Publicly issued collateral structured as reverse-dual currency securities
|
1,470
|
|
|
2,348
|
|
||
Total reverse-dual currency securities
|
$
|
7,666
|
|
|
$
|
9,435
|
|
Reverse-dual currency securities as a percentage of total debt and perpetual
securities |
8.1
|
%
|
|
9.1
|
%
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||||
(In millions)
|
Par
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Unrealized
Gain
(Loss)
|
|
Par
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Unrealized
Gain(Loss)
|
||||||||||||||||
Deutsche Bank AG
(2)
|
$
|
378
|
|
|
$
|
332
|
|
|
$
|
354
|
|
|
$
|
22
|
|
|
$ *
|
|
|
$ *
|
|
|
$ *
|
|
|
$ *
|
|
||||
Investcorp Capital Limited
|
357
|
|
|
357
|
|
|
332
|
|
|
(25
|
)
|
|
401
|
|
|
401
|
|
|
327
|
|
|
(74
|
)
|
||||||||
Telecom Italia SpA
|
332
|
|
|
332
|
|
|
352
|
|
|
20
|
|
|
380
|
|
|
380
|
|
|
328
|
|
|
(52
|
)
|
||||||||
Commerzbank AG (includes
Dresdner Bank) |
332
|
|
|
213
|
|
|
327
|
|
|
114
|
|
|
380
|
|
|
244
|
|
|
336
|
|
|
92
|
|
||||||||
Republic of Tunisia
|
307
|
|
|
185
|
|
|
219
|
|
|
34
|
|
|
446
|
|
|
275
|
|
|
284
|
|
|
9
|
|
||||||||
Navient Corp
|
278
|
|
|
278
|
|
|
178
|
|
|
(100
|
)
|
|
314
|
|
|
314
|
|
|
227
|
|
|
(87
|
)
|
||||||||
UPM-Kymmene
|
257
|
|
|
257
|
|
|
251
|
|
|
(6
|
)
|
|
294
|
|
|
294
|
|
|
233
|
|
|
(61
|
)
|
||||||||
KLM Royal Dutch Airlines
(2)
|
249
|
|
|
183
|
|
|
231
|
|
|
48
|
|
|
285
|
|
|
209
|
|
|
209
|
|
|
0
|
|
||||||||
Barclays Bank PLC
(2)
|
228
|
|
|
148
|
|
|
225
|
|
|
77
|
|
|
64
|
|
|
47
|
|
|
62
|
|
|
15
|
|
||||||||
Bank of Ireland
|
166
|
|
|
166
|
|
|
125
|
|
|
(41
|
)
|
|
190
|
|
|
190
|
|
|
134
|
|
|
(56
|
)
|
||||||||
Generalitat de Catalunya
|
149
|
|
|
55
|
|
|
129
|
|
|
74
|
|
|
171
|
|
|
63
|
|
|
113
|
|
|
50
|
|
||||||||
Energias de Portugal SA (EDP)
|
118
|
|
|
116
|
|
|
124
|
|
|
8
|
|
|
137
|
|
|
135
|
|
|
142
|
|
|
7
|
|
||||||||
Kommunalkredit Austria
|
108
|
|
|
84
|
|
|
88
|
|
|
4
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||
IKB Deutsche Industriebank AG
|
108
|
|
|
46
|
|
|
70
|
|
|
24
|
|
|
123
|
|
|
55
|
|
|
55
|
|
|
0
|
|
||||||||
Societe Generale
(2)
|
83
|
|
|
61
|
|
|
67
|
|
|
6
|
|
|
237
|
|
|
212
|
|
|
198
|
|
|
(14
|
)
|
||||||||
Alcoa, Inc.
|
76
|
|
|
77
|
|
|
102
|
|
|
25
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
||||||||
Tokyo Electric Power Co., Inc.
|
25
|
|
|
25
|
|
|
26
|
|
|
1
|
|
|
163
|
|
|
164
|
|
|
166
|
|
|
2
|
|
||||||||
Israel Electric Corporation Limited
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
417
|
|
|
316
|
|
|
316
|
|
|
0
|
|
||||||||
Redes Energeticas Nacionais
SGPS,S.A. (REN) |
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
95
|
|
|
95
|
|
|
89
|
|
|
(6
|
)
|
||||||||
Sparebanken Vest
(2)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
60
|
|
|
60
|
|
|
52
|
|
|
(8
|
)
|
||||||||
Other Issuers (below $50
million in par value) (3) |
336
|
|
|
353
|
|
|
368
|
|
|
15
|
|
|
367
|
|
|
359
|
|
|
354
|
|
|
(5
|
)
|
||||||||
Total
|
$
|
3,887
|
|
|
$
|
3,268
|
|
|
$
|
3,568
|
|
|
$
|
300
|
|
|
$
|
4,524
|
|
|
$
|
3,813
|
|
|
$
|
3,625
|
|
|
$
|
(188
|
)
|
(In millions)
|
Amortized
Cost |
|
Investment-Grade
Status |
||||
Deutsche Bank AG
(1)
|
|
$
|
332
|
|
|
|
Below Investment Grade
|
Telecom Italia SpA
|
|
332
|
|
|
|
Below Investment Grade
|
|
Commerzbank AG (includes Dresdner Bank)
|
|
213
|
|
|
|
Below Investment Grade
|
|
Santander UK PLC (Abbey National)
(1)
|
|
207
|
|
|
|
Investment Grade
|
|
Bank of Ireland
|
|
166
|
|
|
|
Below Investment Grade
|
|
Energias de Portugal SA (EDP)
|
|
116
|
|
|
|
Below Investment Grade
|
|
Goldman Sachs Capital I
|
|
105
|
|
|
|
Investment Grade
|
|
Barclays Bank PLC
(1)
|
|
102
|
|
|
|
Below Investment Grade
|
|
Kommunalkredit Austria
|
|
84
|
|
|
|
Below Investment Grade
|
|
BNP Paribas Fortis Funding
(1)
|
|
83
|
|
|
|
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
|
|
$
|
57,080
|
|
|
|
|
$
|
64,125
|
|
|
|
|
60.0
|
%
|
|
|
|
$
|
7,517
|
|
|
|
|
$
|
472
|
|
|
Below-investment-grade securities
|
|
3,745
|
|
|
|
|
4,117
|
|
|
|
|
3.9
|
|
|
|
|
610
|
|
|
|
|
238
|
|
|
||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investment-grade securities
|
|
34,242
|
|
|
|
|
38,497
|
|
|
|
|
36.1
|
|
|
|
|
4,379
|
|
|
|
|
124
|
|
|
||||
Total
|
|
$
|
95,067
|
|
|
|
|
$
|
106,739
|
|
|
|
|
100.0
|
%
|
|
|
|
$
|
12,506
|
|
|
|
|
$
|
834
|
|
|
(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 |
$
|
11,136
|
|
|
$
|
472
|
|
|
$
|
2,356
|
|
|
$
|
73
|
|
|
$
|
26
|
|
|
$
|
0
|
|
|
$
|
8,754
|
|
|
$
|
399
|
|
|
Below-
investment-grade securities |
1,339
|
|
|
238
|
|
|
59
|
|
|
6
|
|
|
3
|
|
|
0
|
|
|
1,277
|
|
|
232
|
|
|||||||||
Held-to-maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Investment-grade
securities |
2,638
|
|
|
124
|
|
|
390
|
|
|
4
|
|
|
0
|
|
|
0
|
|
|
2,248
|
|
|
120
|
|
|||||||||
Total
|
$
|
15,113
|
|
|
$
|
834
|
|
|
$
|
2,805
|
|
|
$
|
83
|
|
|
$
|
29
|
|
|
$
|
0
|
|
|
$
|
12,279
|
|
|
$
|
751
|
|
(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 |
$
|
11,136
|
|
|
$
|
472
|
|
|
$
|
11,005
|
|
|
$
|
438
|
|
|
$
|
131
|
|
|
$
|
34
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Below-
investment-grade securities |
1,339
|
|
|
238
|
|
|
903
|
|
|
92
|
|
|
436
|
|
|
146
|
|
|
0
|
|
|
0
|
|
||||||||
Held-to-maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment-grade
securities |
2,638
|
|
|
124
|
|
|
2,472
|
|
|
86
|
|
|
166
|
|
|
38
|
|
|
0
|
|
|
0
|
|
||||||||
Total
|
$
|
15,113
|
|
|
$
|
834
|
|
|
$
|
14,380
|
|
|
$
|
616
|
|
|
$
|
733
|
|
|
$
|
218
|
|
|
$
|
0
|
|
|
$
|
0
|
|
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Loss |
||||||||||||||
Navient Corp
|
|
BB
|
|
|
|
$
|
278
|
|
|
|
|
$
|
178
|
|
|
|
|
$
|
(100
|
)
|
|
Bank of Ireland
|
|
BB
|
|
|
|
166
|
|
|
|
|
125
|
|
|
|
|
(41
|
)
|
|
|||
DEPFA Bank PLC
|
|
BBB
|
|
|
|
166
|
|
|
|
|
128
|
|
|
|
|
(38
|
)
|
|
|||
Investcorp Capital Limited
|
|
BB
|
|
|
|
357
|
|
|
|
|
332
|
|
|
|
|
(25
|
)
|
|
|||
Diamond Offshore Drilling Inc.
|
|
A
|
|
|
|
144
|
|
|
|
|
122
|
|
|
|
|
(22
|
)
|
|
|||
AXA
(1)
|
|
BBB
|
|
|
|
275
|
|
|
|
|
253
|
|
|
|
|
(22
|
)
|
|
|||
Kommunal Lanspensjonskasse (KLP)
(1)
|
|
BBB
|
|
|
|
203
|
|
|
|
|
183
|
|
|
|
|
(20
|
)
|
|
|||
Bank of America Corp
|
|
A
|
|
|
|
377
|
|
|
|
|
359
|
|
|
|
|
(18
|
)
|
|
|||
Republic of Italy
|
|
BBB
|
|
|
|
207
|
|
|
|
|
194
|
|
|
|
|
(13
|
)
|
|
|||
Baker Hughes Inc.
|
|
A
|
|
|
|
118
|
|
|
|
|
108
|
|
|
|
|
(10
|
)
|
|
(In millions)
|
2014
|
|
2013
|
|
% Change
|
|
|||||
Aflac Japan
|
$
|
5,211
|
|
|
$
|
5,819
|
|
|
(10.4
|
)%
|
(1)
|
Aflac U.S.
|
3,062
|
|
|
2,979
|
|
|
2.8
|
|
|
||
Total
|
$
|
8,273
|
|
|
$
|
8,798
|
|
|
(6.0
|
)%
|
|
(In millions)
|
2014
|
|
2013
|
|
% Change
|
|
|||||
Aflac Japan
|
$
|
74,575
|
|
|
$
|
80,302
|
|
|
(7.1
|
)%
|
(1)
|
Aflac U.S.
|
9,356
|
|
|
9,098
|
|
|
2.8
|
|
|
||
Other
|
2
|
|
|
2
|
|
|
.0
|
|
|
||
Total
|
$
|
83,933
|
|
|
$
|
89,402
|
|
|
(6.1
|
)%
|
|
(In millions)
|
2014
|
|
2013
|
||||||||
Aflac Japan net assets
|
|
$
|
14,665
|
|
|
|
|
$
|
12,315
|
|
|
Aflac Japan unhedged dollar-denominated net assets
|
|
(8,672
|
)
|
|
|
|
(7,621
|
)
|
|
||
Consolidated yen-denominated net assets (liabilities)
|
|
$
|
5,993
|
|
|
|
|
$
|
4,694
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Dividends declared or paid by Aflac
|
$
|
1,473
|
|
|
$
|
962
|
|
|
$
|
0
|
|
|
Management fees paid by Aflac
|
267
|
|
|
292
|
|
|
249
|
|
|
(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)
|
$
|
65,646
|
|
|
$
|
237,568
|
|
|
$
|
7,765
|
|
|
$
|
15,202
|
|
|
$
|
15,204
|
|
|
$
|
199,397
|
|
Unpaid policy claims liability
(Note 7)
(3)
|
3,630
|
|
|
3,630
|
|
|
2,685
|
|
|
583
|
|
|
214
|
|
|
148
|
|
||||||
Other policyholders' funds
(Note 7)
(3)
|
6,031
|
|
|
9,568
|
|
|
327
|
|
|
335
|
|
|
377
|
|
|
8,529
|
|
||||||
Long-term debt – principal
(Note 9)
|
5,268
|
|
|
5,271
|
|
|
424
|
|
|
847
|
|
|
850
|
|
|
3,150
|
|
||||||
Long-term debt – interest
(Note 9)
|
47
|
|
|
3,422
|
|
|
253
|
|
|
468
|
|
|
402
|
|
|
2,299
|
|
||||||
Cash collateral on loaned securities
(Note 3)
|
2,193
|
|
|
2,193
|
|
|
2,193
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
Operating service agreements
(Note 15)
|
N/A
|
|
(4)
|
177
|
|
|
126
|
|
|
51
|
|
|
0
|
|
|
0
|
|
||||||
Operating lease obligations
(Note 15)
|
N/A
|
|
(4)
|
129
|
|
|
55
|
|
|
48
|
|
|
18
|
|
|
8
|
|
||||||
Capitalized lease obligations
(Note 9)
|
14
|
|
|
14
|
|
|
4
|
|
|
7
|
|
|
3
|
|
|
0
|
|
||||||
Total contractual obligations
|
$
|
82,829
|
|
|
$
|
261,972
|
|
|
$
|
13,832
|
|
|
$
|
17,541
|
|
|
$
|
17,068
|
|
|
$
|
213,531
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Operating activities
|
$
|
6,550
|
|
|
$
|
10,547
|
|
|
$
|
14,952
|
|
|
Investing activities
|
(4,241
|
)
|
|
(11,091
|
)
|
|
(16,952
|
)
|
|
|||
Financing activities
|
(147
|
)
|
|
1,136
|
|
|
1,945
|
|
|
|||
Exchange effect on cash and cash equivalents
|
(47
|
)
|
|
(90
|
)
|
|
(153
|
)
|
|
|||
Net change in cash and cash equivalents
|
$
|
2,115
|
|
|
$
|
502
|
|
|
$
|
(208
|
)
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Aflac Japan
|
$
|
5,711
|
|
|
$
|
9,410
|
|
|
$
|
13,949
|
|
|
Aflac U.S. and other operations
|
839
|
|
|
1,137
|
|
|
1,003
|
|
|
|||
Total
|
$
|
6,550
|
|
|
$
|
10,547
|
|
|
$
|
14,952
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Aflac Japan
|
$
|
(4,129
|
)
|
|
$
|
(10,293
|
)
|
|
$
|
(15,823
|
)
|
|
Aflac U.S. and other operations
|
(112
|
)
|
|
(798
|
)
|
|
(1,129
|
)
|
|
|||
Total
|
$
|
(4,241
|
)
|
|
$
|
(11,091
|
)
|
|
$
|
(16,952
|
)
|
|
(In millions of dollars and thousands of shares)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Treasury stock purchases
|
$
|
1,210
|
|
|
$
|
813
|
|
|
$
|
118
|
|
|
Number of shares purchased:
|
|
|
|
|
|
|
||||||
Open market
|
19,660
|
|
|
13,212
|
|
|
1,948
|
|
|
|||
Other
|
157
|
|
|
222
|
|
|
360
|
|
|
|||
Total shares purchased
|
19,817
|
|
|
13,434
|
|
|
2,308
|
|
|
(In millions of dollars and thousands of shares)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Stock issued from treasury:
|
|
|
|
|
|
|
||||||
Cash financing
|
$
|
33
|
|
|
$
|
88
|
|
|
$
|
32
|
|
|
Noncash financing
|
65
|
|
|
65
|
|
|
63
|
|
|
|||
Total stock issued from treasury
|
$
|
98
|
|
|
$
|
153
|
|
|
$
|
95
|
|
|
Number of shares issued
|
1,763
|
|
|
3,254
|
|
|
2,184
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Dividends paid in cash
|
$
|
654
|
|
|
$
|
635
|
|
|
$
|
603
|
|
|
Dividends through issuance of treasury shares
|
26
|
|
|
25
|
|
|
24
|
|
|
|||
Total dividends to shareholders
|
$
|
680
|
|
|
$
|
660
|
|
|
$
|
627
|
|
|
(In millions of dollars and billions of yen)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Aflac Japan management fees paid to Parent Company
|
$
|
39
|
|
|
$
|
37
|
|
|
$
|
30
|
|
|
Expenses allocated to Aflac Japan
|
71
|
|
|
74
|
|
|
58
|
|
|
|||
Aflac Japan profit remittances to Aflac U.S. in dollars
|
1,704
|
|
|
771
|
|
|
442
|
|
(1)
|
|||
Aflac Japan profit remittances to Aflac U.S. in yen
|
181.4
|
|
|
76.8
|
|
|
33.1
|
|
(1)
|
(In millions, except for share and per-share amounts)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net premiums, principally supplemental health insurance
|
|
$
|
19,072
|
|
|
|
|
$
|
20,135
|
|
|
|
|
$
|
22,148
|
|
|
Net investment income
|
|
3,319
|
|
|
|
|
3,293
|
|
|
|
|
3,473
|
|
|
|||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other-than-temporary impairment losses realized
|
|
(31
|
)
|
|
|
|
(199
|
)
|
|
|
|
(977
|
)
|
|
|||
Sales and redemptions
|
|
215
|
|
|
|
|
262
|
|
|
|
|
474
|
|
|
|||
Derivative and other gains (losses)
|
|
31
|
|
|
|
|
336
|
|
|
|
|
154
|
|
|
|||
Total realized investment gains (losses)
|
|
215
|
|
|
|
|
399
|
|
|
|
|
(349
|
)
|
|
|||
Other income
|
|
122
|
|
|
|
|
112
|
|
|
|
|
92
|
|
|
|||
Total revenues
|
|
22,728
|
|
|
|
|
23,939
|
|
|
|
|
25,364
|
|
|
|||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Benefits and claims, net
|
|
12,937
|
|
|
|
|
13,813
|
|
|
|
|
15,330
|
|
|
|||
Acquisition and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of deferred policy acquisition costs
|
|
1,108
|
|
|
|
|
1,074
|
|
|
|
|
1,117
|
|
|
|||
Insurance commissions
|
|
1,436
|
|
|
|
|
1,528
|
|
|
|
|
1,744
|
|
|
|||
Insurance expenses
|
|
2,261
|
|
|
|
|
2,222
|
|
|
|
|
2,415
|
|
|
|||
Interest expense
|
|
317
|
|
|
|
|
293
|
|
|
|
|
261
|
|
|
|||
Other operating expenses
|
|
178
|
|
|
|
|
193
|
|
|
|
|
195
|
|
|
|||
Total acquisition and operating expenses
|
|
5,300
|
|
|
|
|
5,310
|
|
|
|
|
5,732
|
|
|
|||
Total benefits and expenses
|
|
18,237
|
|
|
|
|
19,123
|
|
|
|
|
21,062
|
|
|
|||
Earnings before income taxes
|
|
4,491
|
|
|
|
|
4,816
|
|
|
|
|
4,302
|
|
|
|||
Income tax expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
1,079
|
|
|
|
|
1,236
|
|
|
|
|
816
|
|
|
|||
Deferred
|
|
461
|
|
|
|
|
422
|
|
|
|
|
620
|
|
|
|||
Income taxes
|
|
1,540
|
|
|
|
|
1,658
|
|
|
|
|
1,436
|
|
|
|||
Net earnings
|
|
$
|
2,951
|
|
|
|
|
$
|
3,158
|
|
|
|
|
$
|
2,866
|
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
6.54
|
|
|
|
|
$
|
6.80
|
|
|
|
|
$
|
6.14
|
|
|
Diluted
|
|
6.50
|
|
|
|
|
6.76
|
|
|
|
|
6.11
|
|
|
|||
Weighted-average outstanding common shares used in
computing earnings per share (In thousands): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
451,204
|
|
|
|
|
464,502
|
|
|
|
|
466,868
|
|
|
|||
Diluted
|
|
454,000
|
|
|
|
|
467,408
|
|
|
|
|
469,287
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Net earnings
|
|
$
|
2,951
|
|
|
|
|
$
|
3,158
|
|
|
|
|
$
|
2,866
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses) during
period |
|
(1,455
|
)
|
|
|
|
(1,588
|
)
|
|
|
|
(287
|
)
|
|
|||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on investment securities during
period |
|
5,947
|
|
|
|
|
(2,362
|
)
|
|
|
|
1,660
|
|
|
|||
Reclassification adjustment for realized (gains) losses on
investment securities included in net earnings |
|
(54
|
)
|
|
|
|
(56
|
)
|
|
|
|
497
|
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
(17
|
)
|
|
|
|
(10
|
)
|
|
|
|
(22
|
)
|
|
|||
Pension liability adjustment during period
|
|
(76
|
)
|
|
|
|
157
|
|
|
|
|
(20
|
)
|
|
|||
Total other comprehensive income (loss) before income taxes
|
|
4,345
|
|
|
|
|
(3,859
|
)
|
|
|
|
1,828
|
|
|
|||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
1,803
|
|
|
|
|
(581
|
)
|
|
|
|
1,078
|
|
|
|||
Other comprehensive income (loss), net of income taxes
|
|
2,542
|
|
|
|
|
(3,278
|
)
|
|
|
|
750
|
|
|
|||
Total comprehensive income (loss)
|
|
$
|
5,493
|
|
|
|
|
$
|
(120
|
)
|
|
|
|
$
|
3,616
|
|
|
(In millions)
|
2014
|
|
2013
|
|
||||
Assets:
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
||||
Securities available for sale, at fair value:
|
|
|
|
|
||||
Fixed maturities (amortized cost $55,365 in 2014 and $52,402 in 2013)
|
$
|
61,407
|
|
|
$
|
53,227
|
|
|
Fixed maturities - consolidated variable interest entities (amortized
cost $3,020 in 2014 and $4,109 in 2013) |
4,166
|
|
|
4,843
|
|
|
||
Perpetual securities (amortized cost $2,035 in 2014 and $2,524 in 2013)
|
2,240
|
|
|
2,479
|
|
|
||
Perpetual securities - consolidated variable interest entities
(amortized cost $405 in 2014 and $463 in 2013) |
429
|
|
|
468
|
|
|
||
Equity securities (cost $19 in 2014 and $17 in 2013)
|
28
|
|
|
21
|
|
|
||
Securities held to maturity, at amortized cost:
|
|
|
|
|
||||
Fixed maturities (fair value $38,413 in 2014 and $45,610 in 2013)
|
34,159
|
|
|
44,178
|
|
|
||
Fixed maturities - consolidated variable interest entities (fair value
$84 in 2014 and $236 in 2013) |
83
|
|
|
237
|
|
|
||
Other investments
|
171
|
|
|
463
|
|
|
||
Cash and cash equivalents
|
4,658
|
|
|
2,543
|
|
|
||
Total investments and cash
|
107,341
|
|
|
108,459
|
|
|
||
Receivables
|
842
|
|
|
1,165
|
|
|
||
Accrued investment income
|
762
|
|
|
798
|
|
|
||
Deferred policy acquisition costs
|
8,273
|
|
|
8,798
|
|
|
||
Property and equipment, at cost less accumulated depreciation
|
429
|
|
|
481
|
|
|
||
Other
(1)
|
2,120
|
|
|
1,606
|
|
|
||
Total assets
|
$
|
119,767
|
|
|
$
|
121,307
|
|
|
(In millions, except for share and per-share amounts)
|
2014
|
|
2013
|
|
||||
Liabilities and shareholders’ equity:
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Policy liabilities:
|
|
|
|
|
||||
Future policy benefits
|
$
|
65,646
|
|
|
$
|
69,136
|
|
|
Unpaid policy claims
|
3,630
|
|
|
3,763
|
|
|
||
Unearned premiums
|
8,626
|
|
|
10,642
|
|
|
||
Other policyholders’ funds
|
6,031
|
|
|
5,861
|
|
|
||
Total policy liabilities
|
83,933
|
|
|
89,402
|
|
|
||
Income taxes
|
5,293
|
|
|
3,718
|
|
|
||
Payables for return of cash collateral on loaned securities
|
2,193
|
|
|
5,820
|
|
|
||
Notes payable
|
5,282
|
|
|
4,897
|
|
|
||
Other
(2)
|
4,719
|
|
|
2,850
|
|
|
||
Commitments and contingent liabilities (Note 15)
|
|
|
|
|
||||
Total liabilities
|
101,420
|
|
|
106,687
|
|
|
||
Shareholders’ equity:
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000
shares in 2014 and 2013; issued 668,132 shares in 2014 and 667,046 shares in 2013 |
67
|
|
|
67
|
|
|
||
Additional paid-in capital
|
1,711
|
|
|
1,644
|
|
|
||
Retained earnings
|
22,156
|
|
|
19,885
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
||||
Unrealized foreign currency translation gains (losses)
|
(2,541
|
)
|
|
(1,505
|
)
|
|
||
Unrealized gains (losses) on investment securities
|
4,672
|
|
|
1,035
|
|
|
||
Unrealized gains (losses) on derivatives
|
(26
|
)
|
|
(12
|
)
|
|
||
Pension liability adjustment
|
(126
|
)
|
|
(81
|
)
|
|
||
Treasury stock, at average cost
|
(7,566
|
)
|
|
(6,413
|
)
|
|
||
Total shareholders’ equity
|
18,347
|
|
|
14,620
|
|
|
||
Total liabilities and shareholders’ equity
|
$
|
119,767
|
|
|
$
|
121,307
|
|
|
(In millions, except for per-share amounts)
|
2014
|
|
2013
|
|
2012
|
||||||
Common stock:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
$
|
67
|
|
|
$
|
67
|
|
|
$
|
66
|
|
Exercise of stock options
|
0
|
|
|
0
|
|
|
1
|
|
|||
Balance, end of period
|
67
|
|
|
67
|
|
|
67
|
|
|||
Additional paid-in capital:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
1,644
|
|
|
1,505
|
|
|
1,408
|
|
|||
Exercise of stock options
|
29
|
|
|
50
|
|
|
31
|
|
|||
Share-based compensation
|
(3
|
)
|
|
32
|
|
|
34
|
|
|||
Gain (loss) on treasury stock reissued
|
41
|
|
|
57
|
|
|
32
|
|
|||
Balance, end of period
|
1,711
|
|
|
1,644
|
|
|
1,505
|
|
|||
Retained earnings:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
19,885
|
|
|
17,387
|
|
|
15,148
|
|
|||
Net earnings
|
2,951
|
|
|
3,158
|
|
|
2,866
|
|
|||
Dividends to shareholders ($1.50 per share in 2014, $1.42 per share in 2013, and $1.34 per share in 2012)
|
(680
|
)
|
|
(660
|
)
|
|
(627
|
)
|
|||
Balance, end of period
|
22,156
|
|
|
19,885
|
|
|
17,387
|
|
|||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
||||||
Balance, beginning of period
|
(563
|
)
|
|
2,715
|
|
|
1,965
|
|
|||
Unrealized foreign currency translation gains (losses) during
period, net of income taxes |
(1,036
|
)
|
|
(1,838
|
)
|
|
(651
|
)
|
|||
Unrealized gains (losses) on investment securities during period,
net of income taxes and reclassification adjustments |
3,637
|
|
|
(1,535
|
)
|
|
1,427
|
|
|||
Unrealized gains (losses) on derivatives during period, net of
income taxes |
(14
|
)
|
|
(7
|
)
|
|
(14
|
)
|
|||
Pension liability adjustment during period, net of income taxes
|
(45
|
)
|
|
102
|
|
|
(12
|
)
|
|||
Balance, end of period
|
1,979
|
|
|
(563
|
)
|
|
2,715
|
|
|||
Treasury stock:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
(6,413
|
)
|
|
(5,696
|
)
|
|
(5,641
|
)
|
|||
Purchases of treasury stock
|
(1,210
|
)
|
|
(813
|
)
|
|
(118
|
)
|
|||
Cost of shares issued
|
57
|
|
|
96
|
|
|
63
|
|
|||
Balance, end of period
|
(7,566
|
)
|
|
(6,413
|
)
|
|
(5,696
|
)
|
|||
Total shareholders’ equity
|
$
|
18,347
|
|
|
$
|
14,620
|
|
|
$
|
15,978
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings
|
|
$
|
2,951
|
|
|
|
|
$
|
3,158
|
|
|
|
|
$
|
2,866
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in receivables and advance premiums
|
|
(7
|
)
|
|
|
|
(8
|
)
|
|
|
|
(199
|
)
|
|
|||
Increase in deferred policy acquisition costs
|
|
(225
|
)
|
|
|
|
(404
|
)
|
|
|
|
(643
|
)
|
|
|||
Increase in policy liabilities
|
|
3,614
|
|
|
|
|
6,806
|
|
|
|
|
12,005
|
|
|
|||
Change in income tax liabilities
|
|
123
|
|
|
|
|
993
|
|
|
|
|
712
|
|
|
|||
Realized investment (gains) losses
|
|
(215
|
)
|
|
|
|
(399
|
)
|
|
|
|
349
|
|
|
|||
Other, net
|
|
309
|
|
|
|
|
401
|
|
|
|
|
(138
|
)
|
|
|||
Net cash provided (used) by operating activities
|
|
6,550
|
|
|
|
|
10,547
|
|
|
|
|
14,952
|
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Proceeds from investments sold or matured:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities sold
|
|
4,178
|
|
|
|
|
9,631
|
|
|
|
|
7,385
|
|
|
|||
Fixed maturities matured or called
|
|
1,001
|
|
|
|
|
2,907
|
|
|
|
|
1,959
|
|
|
|||
Perpetual securities sold
|
|
0
|
|
|
|
|
264
|
|
|
|
|
1,599
|
|
|
|||
Perpetual securities matured or called
|
|
203
|
|
|
|
|
256
|
|
|
|
|
376
|
|
|
|||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities matured or called
|
|
8,475
|
|
|
|
|
6,515
|
|
|
|
|
1,859
|
|
|
|||
Costs of investments acquired:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available-for-sale fixed maturities acquired
|
|
(10,978
|
)
|
|
|
|
(22,967
|
)
|
|
|
|
(19,533
|
)
|
|
|||
Available-for-sale equity securities acquired
|
|
(5
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Held-to-maturity fixed maturities acquired
|
|
(3,564
|
)
|
|
|
|
(6,756
|
)
|
|
|
|
(16,550
|
)
|
|
|||
Other investments, net
|
|
272
|
|
|
|
|
(319
|
)
|
|
|
|
(6
|
)
|
|
|||
Settlement of derivatives, net
|
|
(636
|
)
|
|
|
|
(1,624
|
)
|
|
|
|
0
|
|
|
|||
Cash received (pledged or returned) as collateral, net
|
|
(3,217
|
)
|
|
|
|
1,037
|
|
|
|
|
5,439
|
|
|
|||
Other, net
|
|
30
|
|
|
|
|
(35
|
)
|
|
|
|
520
|
|
|
|||
Net cash provided (used) by investing activities
|
|
(4,241
|
)
|
|
|
|
(11,091
|
)
|
|
|
|
(16,952
|
)
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of treasury stock
|
|
(1,210
|
)
|
|
|
|
(813
|
)
|
|
|
|
(118
|
)
|
|
|||
Proceeds from borrowings
|
|
750
|
|
|
|
|
700
|
|
|
|
|
1,506
|
|
|
|||
Principal payments under debt obligations
|
|
(335
|
)
|
|
|
|
0
|
|
|
|
|
(341
|
)
|
|
|||
Dividends paid to shareholders
|
|
(654
|
)
|
|
|
|
(635
|
)
|
|
|
|
(603
|
)
|
|
|||
Change in investment-type contracts, net
|
|
1,253
|
|
|
|
|
1,790
|
|
|
|
|
1,457
|
|
|
|||
Treasury stock reissued
|
|
33
|
|
|
|
|
88
|
|
|
|
|
32
|
|
|
|||
Other, net
|
|
16
|
|
|
|
|
6
|
|
|
|
|
12
|
|
|
|||
Net cash provided (used) by financing activities
|
|
(147
|
)
|
|
|
|
1,136
|
|
|
|
|
1,945
|
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
(47
|
)
|
|
|
|
(90
|
)
|
|
|
|
(153
|
)
|
|
|||
Net change in cash and cash equivalents
|
|
2,115
|
|
|
|
|
502
|
|
|
|
|
(208
|
)
|
|
|||
Cash and cash equivalents, beginning of period
|
|
2,543
|
|
|
|
|
2,041
|
|
|
|
|
2,249
|
|
|
|||
Cash and cash equivalents, end of period
|
|
$
|
4,658
|
|
|
|
|
$
|
2,543
|
|
|
|
|
$
|
2,041
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income taxes paid
|
|
$
|
1,416
|
|
|
|
|
$
|
754
|
|
|
|
|
$
|
788
|
|
|
Interest paid
|
|
241
|
|
|
|
|
210
|
|
|
|
|
178
|
|
|
|||
Noncash interest
(1)
|
|
76
|
|
|
|
|
82
|
|
|
|
|
83
|
|
|
|||
Impairment losses included in realized investment losses
|
|
31
|
|
|
|
|
199
|
|
|
|
|
977
|
|
|
|||
Noncash financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capitalized lease obligations
|
|
9
|
|
|
|
|
0
|
|
|
|
|
4
|
|
|
|||
Treasury stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Associate stock bonus
|
|
35
|
|
|
|
|
36
|
|
|
|
|
35
|
|
|
|||
Shareholder dividend reinvestment
|
|
26
|
|
|
|
|
25
|
|
|
|
|
24
|
|
|
|||
Share-based compensation grants
|
|
4
|
|
|
|
|
4
|
|
|
|
|
4
|
|
|
2.
|
BUSINESS SEGMENT AND FOREIGN INFORMATION
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earned premiums:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cancer
|
|
$
|
5,596
|
|
|
|
|
$
|
6,123
|
|
|
|
|
$
|
7,537
|
|
|
Medical and other health
|
|
3,770
|
|
|
|
|
4,282
|
|
|
|
|
5,244
|
|
|
|||
Life insurance
|
|
4,495
|
|
|
|
|
4,577
|
|
|
|
|
4,370
|
|
|
|||
Net investment income
|
|
2,662
|
|
|
|
|
2,651
|
|
|
|
|
2,845
|
|
|
|||
Other income
|
|
32
|
|
|
|
|
55
|
|
|
|
|
57
|
|
|
|||
Total Aflac Japan
|
|
16,555
|
|
|
|
|
17,688
|
|
|
|
|
20,053
|
|
|
|||
Aflac U.S.:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earned premiums:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accident/disability
|
|
2,303
|
|
|
|
|
2,284
|
|
|
|
|
2,213
|
|
|
|||
Cancer
|
|
1,279
|
|
|
|
|
1,283
|
|
|
|
|
1,282
|
|
|
|||
Other health
|
|
1,371
|
|
|
|
|
1,334
|
|
|
|
|
1,259
|
|
|
|||
Life insurance
|
|
258
|
|
|
|
|
252
|
|
|
|
|
242
|
|
|
|||
Net investment income
|
|
645
|
|
|
|
|
632
|
|
|
|
|
613
|
|
|
|||
Other income
|
|
3
|
|
|
|
|
6
|
|
|
|
|
19
|
|
|
|||
Total Aflac U.S.
|
|
5,859
|
|
|
|
|
5,791
|
|
|
|
|
5,628
|
|
|
|||
Other business segments
|
|
43
|
|
|
|
|
49
|
|
|
|
|
46
|
|
|
|||
Total business segment revenues
|
|
22,457
|
|
|
|
|
23,528
|
|
|
|
|
25,727
|
|
|
|||
Realized investment gains (losses)
|
|
171
|
|
(1)
|
|
|
389
|
|
(1)
|
|
|
(349
|
)
|
|
|||
Corporate
|
|
281
|
|
|
|
|
302
|
|
|
|
|
269
|
|
|
|||
Intercompany eliminations
|
|
(248
|
)
|
|
|
|
(308
|
)
|
|
|
|
(276
|
)
|
|
|||
Other non-operating income (loss)
|
|
67
|
|
|
|
|
28
|
|
|
|
|
(7
|
)
|
|
|||
Total revenues
|
|
$
|
22,728
|
|
|
|
|
$
|
23,939
|
|
|
|
|
$
|
25,364
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Pretax earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
3,458
|
|
|
|
|
$
|
3,628
|
|
|
|
|
$
|
3,904
|
|
|
Aflac U.S.
|
|
1,073
|
|
|
|
|
1,038
|
|
|
|
|
997
|
|
|
|||
Other business segments
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
|
|
(3
|
)
|
|
|||
Total business segment pretax operating earnings
|
|
4,529
|
|
|
|
|
4,665
|
|
|
|
|
4,898
|
|
|
|||
Interest expense, noninsurance operations
|
|
(198
|
)
|
|
|
|
(198
|
)
|
|
|
|
(184
|
)
|
|
|||
Corporate and eliminations
|
|
(78
|
)
|
|
|
|
(68
|
)
|
|
|
|
(56
|
)
|
|
|||
Pretax operating earnings
|
|
4,253
|
|
|
|
|
4,399
|
|
|
|
|
4,658
|
|
|
|||
Realized investment gains (losses)
|
|
171
|
|
(1)
|
|
|
389
|
|
(1)
|
|
|
(349
|
)
|
|
|||
Other non-operating income (loss)
|
|
67
|
|
|
|
|
28
|
|
|
|
|
(7
|
)
|
|
|||
Total earnings before income taxes
|
|
$
|
4,491
|
|
|
|
|
$
|
4,816
|
|
|
|
|
$
|
4,302
|
|
|
Income taxes applicable to pretax operating earnings
|
|
$
|
1,456
|
|
|
|
|
$
|
1,512
|
|
|
|
|
$
|
1,561
|
|
|
Effect of foreign currency translation on operating earnings
|
|
(117
|
)
|
|
|
|
(357
|
)
|
|
|
|
8
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
98,525
|
|
|
|
|
$
|
102,973
|
|
|
|
|
$
|
113,678
|
|
|
Aflac U.S.
|
|
18,383
|
|
|
|
|
16,112
|
|
|
|
|
16,122
|
|
|
|||
Other business segments
|
|
128
|
|
|
|
|
155
|
|
|
|
|
154
|
|
|
|||
Total business segment assets
|
|
117,036
|
|
|
|
|
119,240
|
|
|
|
|
129,954
|
|
|
|||
Corporate
|
|
24,636
|
|
|
|
|
19,909
|
|
|
|
|
20,318
|
|
|
|||
Intercompany eliminations
|
|
(21,905
|
)
|
|
|
|
(17,842
|
)
|
|
|
|
(19,178
|
)
|
|
|||
Total assets
|
|
$
|
119,767
|
|
|
|
|
$
|
121,307
|
|
|
|
|
$
|
131,094
|
|
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Statements of Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average yen/dollar exchange rate
|
|
105.46
|
|
|
|
|
97.54
|
|
|
|
|
79.81
|
|
|
|||
Yen percent strengthening (weakening)
|
|
(7.5
|
)%
|
|
|
|
(18.2
|
)%
|
|
|
|
(.1
|
)%
|
|
|||
Exchange effect on pretax operating earnings (in millions)
|
|
$
|
(180
|
)
|
|
|
|
$
|
(534
|
)
|
|
|
|
$
|
11
|
|
|
|
2014
|
|
2013
|
||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
||||
Yen/dollar exchange rate at December 31
|
|
120.55
|
|
|
|
|
105.39
|
|
|
||
Yen percent strengthening (weakening)
|
|
(12.6
|
)%
|
|
|
|
(17.8
|
)%
|
|
||
Exchange effect on total assets (in millions)
|
|
$
|
(10,706
|
)
|
|
|
|
$
|
(17,836
|
)
|
|
Exchange effect on total liabilities (in millions)
|
|
(12,025
|
)
|
|
|
|
(19,806
|
)
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Management fees
|
|
$
|
39
|
|
|
|
|
$
|
37
|
|
|
|
|
$
|
30
|
|
|
Allocated expenses
|
|
71
|
|
|
|
|
74
|
|
|
|
|
58
|
|
|
|||
Profit repatriation
|
|
1,704
|
|
|
|
|
771
|
|
|
|
|
422
|
|
|
|||
Total transfers from Aflac Japan
|
|
$
|
1,814
|
|
|
|
|
$
|
882
|
|
|
|
|
$
|
510
|
|
|
(In millions)
|
2014
|
|
2013
|
||||||||
Property and equipment:
|
|
|
|
|
|
|
|
||||
Land
|
|
$
|
168
|
|
|
|
|
$
|
168
|
|
|
Buildings
|
|
393
|
|
|
|
|
444
|
|
|
||
Equipment and furniture
|
|
305
|
|
|
|
|
329
|
|
|
||
Total property and equipment
|
|
866
|
|
|
|
|
941
|
|
|
||
Less accumulated depreciation
|
|
437
|
|
|
|
|
460
|
|
|
||
Net property and equipment
|
|
$
|
429
|
|
|
|
|
$
|
481
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Fixed-maturity securities
|
|
$
|
3,249
|
|
|
|
|
$
|
3,210
|
|
|
|
|
$
|
3,248
|
|
|
Perpetual securities
|
|
141
|
|
|
|
|
153
|
|
|
|
|
253
|
|
|
|||
Equity securities and other
|
|
7
|
|
|
|
|
7
|
|
|
|
|
17
|
|
|
|||
Short-term investments and cash equivalents
|
|
2
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|||
Gross investment income
|
|
3,399
|
|
|
|
|
3,371
|
|
|
|
|
3,520
|
|
|
|||
Less investment expenses
|
|
80
|
|
|
|
|
78
|
|
|
|
|
47
|
|
|
|||
Net investment income
|
|
$
|
3,319
|
|
|
|
|
$
|
3,293
|
|
|
|
|
$
|
3,473
|
|
|
|
2014
|
||||||||||||||||||||||
(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
|
|
$
|
17,341
|
|
|
|
|
$
|
1,740
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
19,081
|
|
|
Municipalities
|
|
88
|
|
|
|
|
9
|
|
|
|
|
0
|
|
|
|
|
97
|
|
|
||||
Mortgage- and asset-backed securities
|
|
351
|
|
|
|
|
35
|
|
|
|
|
0
|
|
|
|
|
386
|
|
|
||||
Public utilities
|
|
1,691
|
|
|
|
|
226
|
|
|
|
|
5
|
|
|
|
|
1,912
|
|
|
||||
Sovereign and supranational
|
|
799
|
|
|
|
|
163
|
|
|
|
|
0
|
|
|
|
|
962
|
|
|
||||
Banks/financial institutions
|
|
2,752
|
|
|
|
|
325
|
|
|
|
|
189
|
|
|
|
|
2,888
|
|
|
||||
Other corporate
|
|
3,479
|
|
|
|
|
531
|
|
|
|
|
48
|
|
|
|
|
3,962
|
|
|
||||
Total yen-denominated
|
|
26,501
|
|
|
|
|
3,029
|
|
|
|
|
242
|
|
|
|
|
29,288
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
100
|
|
|
|
|
17
|
|
|
|
|
0
|
|
|
|
|
117
|
|
|
||||
Municipalities
|
|
961
|
|
|
|
|
201
|
|
|
|
|
2
|
|
|
|
|
1,160
|
|
|
||||
Mortgage- and asset-backed securities
|
|
185
|
|
|
|
|
31
|
|
|
|
|
0
|
|
|
|
|
216
|
|
|
||||
Public utilities
|
|
5,061
|
|
|
|
|
960
|
|
|
|
|
36
|
|
|
|
|
5,985
|
|
|
||||
Sovereign and supranational
|
|
343
|
|
|
|
|
111
|
|
|
|
|
0
|
|
|
|
|
454
|
|
|
||||
Banks/financial institutions
|
|
2,943
|
|
|
|
|
775
|
|
|
|
|
8
|
|
|
|
|
3,710
|
|
|
||||
Other corporate
|
|
22,291
|
|
|
|
|
2,682
|
|
|
|
|
330
|
|
|
|
|
24,643
|
|
|
||||
Total dollar-denominated
|
|
31,884
|
|
|
|
|
4,777
|
|
|
|
|
376
|
|
|
|
|
36,285
|
|
|
||||
Total fixed maturities
|
|
58,385
|
|
|
|
|
7,806
|
|
|
|
|
618
|
|
|
|
|
65,573
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
2,132
|
|
|
|
|
223
|
|
|
|
|
92
|
|
|
|
|
2,263
|
|
|
||||
Other corporate
|
|
183
|
|
|
|
|
48
|
|
|
|
|
0
|
|
|
|
|
231
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
125
|
|
|
|
|
50
|
|
|
|
|
0
|
|
|
|
|
175
|
|
|
||||
Total perpetual securities
|
|
2,440
|
|
|
|
|
321
|
|
|
|
|
92
|
|
|
|
|
2,669
|
|
|
||||
Equity securities
|
|
19
|
|
|
|
|
9
|
|
|
|
|
0
|
|
|
|
|
28
|
|
|
||||
Total securities available for sale
|
|
$
|
60,844
|
|
|
|
|
$
|
8,136
|
|
|
|
|
$
|
710
|
|
|
|
|
$
|
68,270
|
|
|
|
2014
|
||||||||||||||||||||||
(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
|
|
$
|
20,023
|
|
|
|
|
$
|
3,195
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
23,218
|
|
|
Municipalities
|
|
346
|
|
|
|
|
71
|
|
|
|
|
0
|
|
|
|
|
417
|
|
|
||||
Mortgage- and asset-backed securities
|
|
43
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
46
|
|
|
||||
Public utilities
|
|
3,342
|
|
|
|
|
281
|
|
|
|
|
20
|
|
|
|
|
3,603
|
|
|
||||
Sovereign and supranational
|
|
2,556
|
|
|
|
|
272
|
|
|
|
|
14
|
|
|
|
|
2,814
|
|
|
||||
Banks/financial institutions
|
|
4,932
|
|
|
|
|
231
|
|
|
|
|
78
|
|
|
|
|
5,085
|
|
|
||||
Other corporate
|
|
3,000
|
|
|
|
|
326
|
|
|
|
|
12
|
|
|
|
|
3,314
|
|
|
||||
Total yen-denominated
|
|
34,242
|
|
|
|
|
4,379
|
|
|
|
|
124
|
|
|
|
|
38,497
|
|
|
||||
Total securities held to maturity
|
|
$
|
34,242
|
|
|
|
|
$
|
4,379
|
|
|
|
|
$
|
124
|
|
|
|
|
$
|
38,497
|
|
|
|
2013
|
||||||||||||||||||||||
(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
|
|
$
|
14,936
|
|
|
|
|
$
|
431
|
|
|
|
|
$
|
33
|
|
|
|
|
$
|
15,334
|
|
|
Mortgage- and asset-backed securities
|
|
558
|
|
|
|
|
29
|
|
|
|
|
0
|
|
|
|
|
587
|
|
|
||||
Public utilities
|
|
2,261
|
|
|
|
|
100
|
|
|
|
|
18
|
|
|
|
|
2,343
|
|
|
||||
Sovereign and supranational
|
|
978
|
|
|
|
|
85
|
|
|
|
|
28
|
|
|
|
|
1,035
|
|
|
||||
Banks/financial institutions
|
|
2,799
|
|
|
|
|
220
|
|
|
|
|
242
|
|
|
|
|
2,777
|
|
|
||||
Other corporate
|
|
3,956
|
|
|
|
|
151
|
|
|
|
|
185
|
|
|
|
|
3,922
|
|
|
||||
Total yen-denominated
|
|
25,488
|
|
|
|
|
1,016
|
|
|
|
|
506
|
|
|
|
|
25,998
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
92
|
|
|
|
|
10
|
|
|
|
|
4
|
|
|
|
|
98
|
|
|
||||
Municipalities
|
|
992
|
|
|
|
|
71
|
|
|
|
|
12
|
|
|
|
|
1,051
|
|
|
||||
Mortgage- and asset-backed securities
|
|
163
|
|
|
|
|
21
|
|
|
|
|
0
|
|
|
|
|
184
|
|
|
||||
Public utilities
|
|
4,931
|
|
|
|
|
471
|
|
|
|
|
183
|
|
|
|
|
5,219
|
|
|
||||
Sovereign and supranational
|
|
404
|
|
|
|
|
85
|
|
|
|
|
1
|
|
|
|
|
488
|
|
|
||||
Banks/financial institutions
|
|
3,318
|
|
|
|
|
447
|
|
|
|
|
33
|
|
|
|
|
3,732
|
|
|
||||
Other corporate
|
|
21,123
|
|
|
|
|
1,347
|
|
|
|
|
1,170
|
|
|
|
|
21,300
|
|
|
||||
Total dollar-denominated
|
|
31,023
|
|
|
|
|
2,452
|
|
|
|
|
1,403
|
|
|
|
|
32,072
|
|
|
||||
Total fixed maturities
|
|
56,511
|
|
|
|
|
3,468
|
|
|
|
|
1,909
|
|
|
|
|
58,070
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
2,582
|
|
|
|
|
151
|
|
|
|
|
217
|
|
|
|
|
2,516
|
|
|
||||
Other corporate
|
|
209
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
209
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
196
|
|
|
|
|
35
|
|
|
|
|
9
|
|
|
|
|
222
|
|
|
||||
Total perpetual securities
|
|
2,987
|
|
|
|
|
186
|
|
|
|
|
226
|
|
|
|
|
2,947
|
|
|
||||
Equity securities
|
|
17
|
|
|
|
|
5
|
|
|
|
|
1
|
|
|
|
|
21
|
|
|
||||
Total securities available for sale
|
|
$
|
59,515
|
|
|
|
|
$
|
3,659
|
|
|
|
|
$
|
2,136
|
|
|
|
|
$
|
61,038
|
|
|
|
2013
|
||||||||||||||||||||||
(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
|
|
$
|
27,362
|
|
|
|
|
$
|
1,347
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
28,708
|
|
|
Municipalities
|
|
399
|
|
|
|
|
41
|
|
|
|
|
0
|
|
|
|
|
440
|
|
|
||||
Mortgage- and asset-backed securities
|
|
58
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
61
|
|
|
||||
Public utilities
|
|
3,900
|
|
|
|
|
150
|
|
|
|
|
122
|
|
|
|
|
3,928
|
|
|
||||
Sovereign and supranational
|
|
2,941
|
|
|
|
|
171
|
|
|
|
|
72
|
|
|
|
|
3,040
|
|
|
||||
Banks/financial institutions
|
|
6,310
|
|
|
|
|
146
|
|
|
|
|
328
|
|
|
|
|
6,128
|
|
|
||||
Other corporate
|
|
3,445
|
|
|
|
|
183
|
|
|
|
|
87
|
|
|
|
|
3,541
|
|
|
||||
Total yen-denominated
|
|
44,415
|
|
|
|
|
2,041
|
|
|
|
|
610
|
|
|
|
|
45,846
|
|
|
||||
Total securities held to maturity
|
|
$
|
44,415
|
|
|
|
|
$
|
2,041
|
|
|
|
|
$
|
610
|
|
|
|
|
$
|
45,846
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
369
|
|
|
|
|
$
|
390
|
|
|
|
|
$
|
65
|
|
|
|
|
$
|
69
|
|
|
Due after one year through five years
|
|
1,519
|
|
|
|
|
1,771
|
|
|
|
|
628
|
|
|
|
|
724
|
|
|
||||
Due after five years through 10 years
|
|
10,351
|
|
|
|
|
10,979
|
|
|
|
|
1,472
|
|
|
|
|
1,561
|
|
|
||||
Due after 10 years
|
|
34,018
|
|
|
|
|
38,595
|
|
|
|
|
9,103
|
|
|
|
|
10,540
|
|
|
||||
Mortgage- and asset-backed securities
|
|
405
|
|
|
|
|
461
|
|
|
|
|
36
|
|
|
|
|
46
|
|
|
||||
Total fixed maturities available for sale
|
|
$
|
46,662
|
|
|
|
|
$
|
52,196
|
|
|
|
|
$
|
11,304
|
|
|
|
|
$
|
12,940
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due after one year through five years
|
|
1,520
|
|
|
|
|
1,631
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after five years through 10 years
|
|
1,937
|
|
|
|
|
2,130
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
30,742
|
|
|
|
|
34,690
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Mortgage- and asset-backed securities
|
|
43
|
|
|
|
|
46
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total fixed maturities held to maturity
|
|
$
|
34,242
|
|
|
|
|
$
|
38,497
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Due in one year or less
|
|
$
|
306
|
|
|
|
|
$
|
300
|
|
|
|
|
$
|
5
|
|
|
|
|
$
|
5
|
|
|
Due after one year through five years
|
|
624
|
|
|
|
|
674
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
1,466
|
|
|
|
|
1,635
|
|
|
|
|
39
|
|
|
|
|
55
|
|
|
||||
Total perpetual securities available for sale
|
|
$
|
2,396
|
|
|
|
|
$
|
2,609
|
|
|
|
|
$
|
44
|
|
|
|
|
$
|
60
|
|
|
|
2014
|
|
2013
|
||||||||
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
Japan National Government
(1)
|
A
|
|
$37,021
|
|
$41,878
|
|
AA
|
|
$41,924
|
|
$43,619
|
|
2014
|
|
2013
|
||||||||||||||||||
|
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
|
|
$
|
10,627
|
|
|
|
|
11
|
%
|
|
|
|
$
|
12,427
|
|
|
|
|
12
|
%
|
|
Fair value
|
|
11,683
|
|
|
|
|
11
|
|
|
|
|
12,637
|
|
|
|
|
12
|
|
|
||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Upper Tier II:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortized cost
|
|
$
|
1,554
|
|
|
|
|
2
|
%
|
|
|
|
$
|
1,920
|
|
|
|
|
2
|
%
|
|
Fair value
|
|
1,645
|
|
|
|
|
1
|
|
|
|
|
1,913
|
|
|
|
|
2
|
|
|
||
Tier I:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortized cost
|
|
703
|
|
|
|
|
1
|
|
|
|
|
858
|
|
|
|
|
1
|
|
|
||
Fair value
|
|
793
|
|
|
|
|
1
|
|
|
|
|
825
|
|
|
|
|
1
|
|
|
||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortized cost
|
|
$
|
12,884
|
|
|
|
|
14
|
%
|
|
|
|
$
|
15,205
|
|
|
|
|
15
|
%
|
|
Fair value
|
|
14,121
|
|
|
|
|
13
|
|
|
|
|
15,375
|
|
|
|
|
15
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||
Realized investment gains (losses) on securities:
|
|
|
|
|
|
||||||
Fixed maturities:
|
|
|
|
|
|
||||||
Available for sale:
|
|
|
|
|
|
||||||
Gross gains from sales
|
$
|
192
|
|
|
$
|
316
|
|
|
$
|
427
|
|
Gross losses from sales
|
(12
|
)
|
|
(87
|
)
|
|
(48
|
)
|
|||
Net gains (losses) from redemptions
|
34
|
|
|
34
|
|
|
2
|
|
|||
Other-than-temporary impairment losses
|
(31
|
)
|
|
(128
|
)
|
|
(734
|
)
|
|||
Held to maturity:
|
|
|
|
|
|
||||||
Net gains (losses) from redemptions
|
1
|
|
|
0
|
|
|
4
|
|
|||
Total fixed maturities
|
184
|
|
|
135
|
|
|
(349
|
)
|
|||
Perpetual securities:
|
|
|
|
|
|
||||||
Available for sale:
|
|
|
|
|
|
||||||
Gross gains from sales
|
0
|
|
|
0
|
|
|
127
|
|
|||
Gross losses from sales
|
0
|
|
|
(1
|
)
|
|
(98
|
)
|
|||
Net gains (losses) from redemptions
|
0
|
|
|
0
|
|
|
60
|
|
|||
Other-than-temporary impairment losses
|
0
|
|
|
(70
|
)
|
|
(243
|
)
|
|||
Total perpetual securities
|
0
|
|
|
(71
|
)
|
|
(154
|
)
|
|||
Equity securities:
|
|
|
|
|
|
||||||
Other-than-temporary impairment losses
|
0
|
|
|
(1
|
)
|
|
0
|
|
|||
Total equity securities
|
0
|
|
|
(1
|
)
|
|
0
|
|
|||
Derivatives and other:
|
|
|
|
|
|
||||||
Derivative gains (losses)
|
31
|
|
|
326
|
|
|
151
|
|
|||
Other
|
0
|
|
|
10
|
|
|
3
|
|
|||
Total derivatives and other
|
31
|
|
|
336
|
|
|
154
|
|
|||
Total realized investment gains (losses)
|
$
|
215
|
|
|
$
|
399
|
|
|
$
|
(349
|
)
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
|
||||||
Perpetual securities
|
$
|
0
|
|
|
$
|
70
|
|
|
$
|
243
|
|
|
Corporate bonds
|
31
|
|
|
102
|
|
|
345
|
|
|
|||
Mortgage- and asset-backed securities
|
0
|
|
|
0
|
|
|
3
|
|
|
|||
Sovereign and supranational
|
0
|
|
|
26
|
|
|
386
|
|
|
|||
Equity securities
|
0
|
|
|
1
|
|
|
0
|
|
|
|||
Total other-than-temporary impairment losses realized
(1)
|
$
|
31
|
|
|
$
|
199
|
|
|
$
|
977
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Changes in unrealized gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available for sale
|
|
$
|
5,629
|
|
|
|
|
$
|
(2,281
|
)
|
|
|
|
$
|
1,624
|
|
|
Transferred to held to maturity
|
|
(10
|
)
|
|
|
|
(9
|
)
|
|
|
|
(14
|
)
|
|
|||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available for sale
|
|
269
|
|
|
|
|
(129
|
)
|
|
|
|
547
|
|
|
|||
Equity securities
|
|
5
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|||
Total change in unrealized gains (losses)
|
|
$
|
5,893
|
|
|
|
|
$
|
(2,418
|
)
|
|
|
|
$
|
2,157
|
|
|
(In millions)
|
2014
|
|
2013
|
||||||||
Unrealized gains (losses) on securities available for sale
|
|
$
|
7,426
|
|
|
|
|
$
|
1,523
|
|
|
Unamortized unrealized gains on securities transferred to held to maturity
|
|
0
|
|
|
|
|
11
|
|
|
||
Deferred income taxes
|
|
(2,754
|
)
|
|
|
|
(499
|
)
|
|
||
Shareholders’ equity, unrealized gains (losses) on investment securities
|
|
$
|
4,672
|
|
|
|
|
$
|
1,035
|
|
|
|
2014
|
||||||||||||||||||||||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
75
|
|
|
|
|
2
|
|
|
|
|
53
|
|
|
|
|
1
|
|
|
|
|
22
|
|
|
|
|
1
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
1,001
|
|
|
|
|
36
|
|
|
|
|
164
|
|
|
|
|
7
|
|
|
|
|
837
|
|
|
|
|
29
|
|
|
||||||
Yen-denominated
|
|
805
|
|
|
|
|
25
|
|
|
|
|
98
|
|
|
|
|
1
|
|
|
|
|
707
|
|
|
|
|
24
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
359
|
|
|
|
|
14
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
359
|
|
|
|
|
14
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
205
|
|
|
|
|
8
|
|
|
|
|
53
|
|
|
|
|
5
|
|
|
|
|
152
|
|
|
|
|
3
|
|
|
||||||
Yen-denominated
|
|
1,828
|
|
|
|
|
267
|
|
|
|
|
166
|
|
|
|
|
0
|
|
|
|
|
1,662
|
|
|
|
|
267
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
8,072
|
|
|
|
|
330
|
|
|
|
|
1,901
|
|
|
|
|
62
|
|
|
|
|
6,171
|
|
|
|
|
268
|
|
|
||||||
Yen-denominated
|
|
1,151
|
|
|
|
|
60
|
|
|
|
|
122
|
|
|
|
|
2
|
|
|
|
|
1,029
|
|
|
|
|
58
|
|
|
||||||
Total fixed maturities
|
|
13,496
|
|
|
|
|
742
|
|
|
|
|
2,557
|
|
|
|
|
78
|
|
|
|
|
10,939
|
|
|
|
|
664
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
783
|
|
|
|
|
92
|
|
|
|
|
194
|
|
|
|
|
5
|
|
|
|
|
589
|
|
|
|
|
87
|
|
|
||||||
Total perpetual securities
|
|
783
|
|
|
|
|
92
|
|
|
|
|
194
|
|
|
|
|
5
|
|
|
|
|
589
|
|
|
|
|
87
|
|
|
||||||
Total
|
|
$
|
14,279
|
|
|
|
|
$
|
834
|
|
|
|
|
$
|
2,751
|
|
|
|
|
$
|
83
|
|
|
|
|
$
|
11,528
|
|
|
|
|
$
|
751
|
|
|
|
2013
|
||||||||||||||||||||||||||||||||||
|
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
|
|
$
|
8,869
|
|
|
|
|
$
|
34
|
|
|
|
|
$
|
8,869
|
|
|
|
|
$
|
34
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
177
|
|
|
|
|
12
|
|
|
|
|
145
|
|
|
|
|
8
|
|
|
|
|
32
|
|
|
|
|
4
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
2,023
|
|
|
|
|
183
|
|
|
|
|
1,740
|
|
|
|
|
143
|
|
|
|
|
283
|
|
|
|
|
40
|
|
|
||||||
Yen-denominated
|
|
2,519
|
|
|
|
|
140
|
|
|
|
|
1,816
|
|
|
|
|
54
|
|
|
|
|
703
|
|
|
|
|
86
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
12
|
|
|
|
|
1
|
|
|
|
|
12
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Yen-denominated
|
|
1,152
|
|
|
|
|
100
|
|
|
|
|
791
|
|
|
|
|
34
|
|
|
|
|
361
|
|
|
|
|
66
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
547
|
|
|
|
|
33
|
|
|
|
|
454
|
|
|
|
|
23
|
|
|
|
|
93
|
|
|
|
|
10
|
|
|
||||||
Yen-denominated
|
|
4,533
|
|
|
|
|
570
|
|
|
|
|
2,322
|
|
|
|
|
107
|
|
|
|
|
2,211
|
|
|
|
|
463
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
11,588
|
|
|
|
|
1,170
|
|
|
|
|
8,504
|
|
|
|
|
733
|
|
|
|
|
3,084
|
|
|
|
|
437
|
|
|
||||||
Yen-denominated
|
|
3,372
|
|
|
|
|
272
|
|
|
|
|
2,296
|
|
|
|
|
152
|
|
|
|
|
1,076
|
|
|
|
|
120
|
|
|
||||||
U.S. government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
36
|
|
|
|
|
4
|
|
|
|
|
36
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total fixed maturities
|
|
34,828
|
|
|
|
|
2,519
|
|
|
|
|
26,985
|
|
|
|
|
1,293
|
|
|
|
|
7,843
|
|
|
|
|
1,226
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
59
|
|
|
|
|
9
|
|
|
|
|
52
|
|
|
|
|
8
|
|
|
|
|
7
|
|
|
|
|
1
|
|
|
||||||
Yen-denominated
|
|
1,322
|
|
|
|
|
217
|
|
|
|
|
748
|
|
|
|
|
74
|
|
|
|
|
574
|
|
|
|
|
143
|
|
|
||||||
Total perpetual securities
|
|
1,381
|
|
|
|
|
226
|
|
|
|
|
800
|
|
|
|
|
82
|
|
|
|
|
581
|
|
|
|
|
144
|
|
|
||||||
Equity securities
|
|
5
|
|
|
|
|
1
|
|
|
|
|
5
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
36,214
|
|
|
|
|
$
|
2,746
|
|
|
|
|
$
|
27,790
|
|
|
|
|
$
|
1,376
|
|
|
|
|
$
|
8,424
|
|
|
|
|
$
|
1,370
|
|
|
|
2014
|
2013
|
||||||||||||||||||||||
(In millions)
|
Investments
in an Unrealized Loss Position |
Gross
Unrealized Losses |
Gross
Unrealized Losses that are Investment Grade |
Investments
in an Unrealized Loss Position |
Gross
Unrealized Losses |
Gross
Unrealized Losses that are Investment Grade |
||||||||||||||||||
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Japan government
and agencies
|
|
0
|
%
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
25
|
%
|
|
|
1
|
%
|
|
|
100
|
%
|
|
Public utilities
|
|
13
|
|
|
|
7
|
|
|
|
100
|
|
|
|
13
|
|
|
|
12
|
|
|
|
98
|
|
|
Sovereign and
supranational
|
|
3
|
|
|
|
2
|
|
|
|
100
|
|
|
|
3
|
|
|
|
4
|
|
|
|
100
|
|
|
Banks/financial
institutions
|
|
14
|
|
|
|
33
|
|
|
|
31
|
|
|
|
14
|
|
|
|
22
|
|
|
|
64
|
|
|
Other corporate
|
|
65
|
|
|
|
47
|
|
|
|
88
|
|
|
|
41
|
|
|
|
53
|
|
|
|
91
|
|
|
Total fixed
maturities
|
|
95
|
%
|
|
|
89
|
%
|
|
|
|
|
|
96
|
%
|
|
|
92
|
%
|
|
|
|
|
||
Perpetual securities
|
|
5
|
|
|
|
11
|
|
|
|
100
|
|
|
|
4
|
|
|
|
8
|
|
|
|
90
|
|
|
Total
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||||||||
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain (Loss) |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain (Loss) |
||||||||||||||||||||||||
Upper Tier II:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
A
|
|
|
$
|
61
|
|
|
|
|
$
|
87
|
|
|
|
|
$
|
26
|
|
|
|
|
$
|
145
|
|
|
|
|
$
|
183
|
|
|
|
|
$
|
38
|
|
|
|
BBB
|
|
|
1,330
|
|
|
|
|
1,333
|
|
|
|
|
3
|
|
|
|
|
1,563
|
|
|
|
|
1,532
|
|
|
|
|
(31
|
)
|
|
||||||
|
BB or lower
|
|
|
163
|
|
|
|
|
225
|
|
|
|
|
62
|
|
|
|
|
212
|
|
|
|
|
198
|
|
|
|
|
(14
|
)
|
|
||||||
Total Upper Tier II
|
|
|
|
1,554
|
|
|
|
|
1,645
|
|
|
|
|
91
|
|
|
|
|
1,920
|
|
|
|
|
1,913
|
|
|
|
|
(7
|
)
|
|
||||||
Tier I:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
BBB
|
|
|
519
|
|
|
|
|
556
|
|
|
|
|
37
|
|
|
|
|
746
|
|
|
|
|
706
|
|
|
|
|
(40
|
)
|
|
||||||
|
BB or lower
|
|
|
184
|
|
|
|
|
237
|
|
|
|
|
53
|
|
|
|
|
112
|
|
|
|
|
119
|
|
|
|
|
7
|
|
|
||||||
Total Tier I
|
|
|
|
703
|
|
|
|
|
793
|
|
|
|
|
90
|
|
|
|
|
858
|
|
|
|
|
825
|
|
|
|
|
(33
|
)
|
|
||||||
Other subordinated
- non-banks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
BB or lower
|
|
|
183
|
|
|
|
|
231
|
|
|
|
|
48
|
|
|
|
|
209
|
|
|
|
|
209
|
|
|
|
|
0
|
|
|
||||||
Total
|
|
|
|
$
|
2,440
|
|
|
|
|
$
|
2,669
|
|
|
|
|
$
|
229
|
|
|
|
|
$
|
2,987
|
|
|
|
|
$
|
2,947
|
|
|
|
|
$
|
(40
|
)
|
|
|
2014
|
|
2013
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
3,020
|
|
|
|
|
$
|
4,166
|
|
|
|
|
$
|
4,109
|
|
|
|
|
$
|
4,843
|
|
|
Perpetual securities, available for sale
|
|
405
|
|
|
|
|
429
|
|
|
|
|
463
|
|
|
|
|
468
|
|
|
||||
Fixed maturities, held to maturity
|
|
83
|
|
|
|
|
84
|
|
|
|
|
237
|
|
|
|
|
236
|
|
|
||||
Other assets
|
|
106
|
|
|
|
|
106
|
|
|
|
|
106
|
|
|
|
|
106
|
|
|
||||
Total assets of consolidated VIEs
|
|
$
|
3,614
|
|
|
|
|
$
|
4,785
|
|
|
|
|
$
|
4,915
|
|
|
|
|
$
|
5,653
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
|
$
|
318
|
|
|
|
|
$
|
318
|
|
|
|
|
$
|
207
|
|
|
|
|
$
|
207
|
|
|
Total liabilities of consolidated VIEs
|
|
$
|
318
|
|
|
|
|
$
|
318
|
|
|
|
|
$
|
207
|
|
|
|
|
$
|
207
|
|
|
|
2014
|
|
2013
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
6,104
|
|
|
|
|
$
|
6,937
|
|
|
|
|
$
|
6,724
|
|
|
|
|
$
|
6,916
|
|
|
Perpetual securities, available for sale
|
|
324
|
|
|
|
|
330
|
|
|
|
|
370
|
|
|
|
|
378
|
|
|
||||
Fixed maturities, held to maturity
|
|
2,564
|
|
|
|
|
2,829
|
|
|
|
|
2,949
|
|
|
|
|
3,039
|
|
|
||||
Total investments in VIEs not consolidated
|
|
$
|
8,992
|
|
|
|
|
$
|
10,096
|
|
|
|
|
$
|
10,043
|
|
|
|
|
$
|
10,333
|
|
|
(In millions)
|
|
2014
|
|
|
|
|
2013
|
|
|
||
Security loans outstanding, fair value
|
|
$
|
2,149
|
|
|
|
|
$
|
5,656
|
|
|
Cash collateral on loaned securities
|
|
2,193
|
|
|
|
|
5,820
|
|
|
|
2014
|
2013
|
||||||||||||||||||||||||||||
(In millions)
|
Notional Amount
of Derivatives |
Asset Derivatives
Fair Value |
Liability Derivatives
Fair Value |
Notional Amount
of Derivatives |
Asset Derivatives
Fair Value |
Liability Derivatives
Fair Value |
||||||||||||||||||||||||
Counterparties' credit rating:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
AA
|
|
$
|
1,098
|
|
|
|
$
|
39
|
|
|
|
$
|
(36
|
)
|
|
|
$
|
161
|
|
|
|
$
|
1
|
|
|
|
$
|
(7
|
)
|
|
A
|
|
22,564
|
|
|
|
763
|
|
|
|
(2,387
|
)
|
|
|
22,314
|
|
|
|
487
|
|
|
|
(830
|
)
|
|
||||||
Total
|
|
$
|
23,662
|
|
|
|
$
|
802
|
|
|
|
$
|
(2,423
|
)
|
|
|
$
|
22,475
|
|
|
|
$
|
488
|
|
|
|
$
|
(837
|
)
|
|
2014
|
||||||||||||||||||||||||||||||||||||||||
|
|
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
|
|
|
$
|
(83
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(83
|
)
|
|
$
|
0
|
|
Total
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(83
|
)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(83
|
)
|
|
$
|
0
|
|
2013
|
||||||||||||||||||||||||||||||||||||||||
|
|
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
|
|
|
$
|
(112
|
)
|
|
$
|
1
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(112
|
)
|
|
$
|
1
|
|
|
BBB
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(95
|
)
|
|
(4
|
)
|
|
(95
|
)
|
|
(4
|
)
|
||||||||||
Total
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(112
|
)
|
|
$
|
1
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(95
|
)
|
|
$
|
(4
|
)
|
|
$
|
(207
|
)
|
|
$
|
(3
|
)
|
|
2014
|
||||||||||||||||||||||
(In millions)
|
Net Derivatives
|
|
Asset
Derivatives |
|
Liability
Derivatives |
||||||||||||||||||
Hedge Designation/ Derivative Type
|
Notional
Amount |
|
Fair Value
|
|
Fair Value
|
|
Fair Value
|
||||||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
75
|
|
|
|
|
$
|
(15
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(15
|
)
|
|
Total cash flow hedges
|
|
75
|
|
|
|
|
(15
|
)
|
|
|
|
0
|
|
|
|
|
(15
|
)
|
|
||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
12,388
|
|
|
|
|
(1,791
|
)
|
|
|
|
0
|
|
|
|
|
(1,791
|
)
|
|
||||
Foreign currency options
|
|
697
|
|
|
|
|
(32
|
)
|
|
|
|
0
|
|
|
|
|
(32
|
)
|
|
||||
Interest rate swaptions
|
|
2,502
|
|
|
|
|
(159
|
)
|
|
|
|
0
|
|
|
|
|
(159
|
)
|
|
||||
Total fair value hedges
|
|
15,587
|
|
|
|
|
(1,982
|
)
|
|
|
|
0
|
|
|
|
|
(1,982
|
)
|
|
||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
1,307
|
|
|
|
|
54
|
|
|
|
|
56
|
|
|
|
|
(2
|
)
|
|
||||
Total net investment hedge
|
|
1,307
|
|
|
|
|
54
|
|
|
|
|
56
|
|
|
|
|
(2
|
)
|
|
||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
5,765
|
|
|
|
|
443
|
|
|
|
|
746
|
|
|
|
|
(303
|
)
|
|
||||
Credit default swaps
|
|
83
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Foreign currency forwards
|
|
784
|
|
|
|
|
(119
|
)
|
|
|
|
0
|
|
|
|
|
(119
|
)
|
|
||||
Foreign currency options
|
|
53
|
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
(1
|
)
|
|
||||
Interest rate swaptions
|
|
8
|
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
(1
|
)
|
|
||||
Total non-qualifying strategies
|
|
6,693
|
|
|
|
|
322
|
|
|
|
|
746
|
|
|
|
|
(424
|
)
|
|
||||
Total derivatives
|
|
$
|
23,662
|
|
|
|
|
$
|
(1,621
|
)
|
|
|
|
$
|
802
|
|
|
|
|
$
|
(2,423
|
)
|
|
Balance Sheet Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
$
|
6,531
|
|
|
|
|
$
|
802
|
|
|
|
|
$
|
802
|
|
|
|
|
$
|
0
|
|
|
Other liabilities
|
|
17,131
|
|
|
|
|
(2,423
|
)
|
|
|
|
0
|
|
|
|
|
(2,423
|
)
|
|
||||
Total derivatives
|
|
$
|
23,662
|
|
|
|
|
$
|
(1,621
|
)
|
|
|
|
$
|
802
|
|
|
|
|
$
|
(2,423
|
)
|
|
|
2013
|
||||||||||||||||||||||
(In millions)
|
Net Derivatives
|
|
Asset
Derivatives |
|
Liability
Derivatives |
||||||||||||||||||
Hedge Designation/ Derivative Type
|
Notional
Amount |
|
Fair Value
|
|
Fair Value
|
|
Fair Value
|
||||||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
75
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
0
|
|
|
Interest rate swaps
|
|
52
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total cash flow hedges
|
|
127
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
11,249
|
|
|
|
|
(582
|
)
|
|
|
|
0
|
|
|
|
|
(582
|
)
|
|
||||
Interest rate swaptions
|
|
4,500
|
|
|
|
|
(12
|
)
|
|
|
|
20
|
|
|
|
|
(32
|
)
|
|
||||
Total fair value hedges
|
|
15,749
|
|
|
|
|
(594
|
)
|
|
|
|
20
|
|
|
|
|
(614
|
)
|
|
||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
356
|
|
|
|
|
17
|
|
|
|
|
17
|
|
|
|
|
0
|
|
|
||||
Foreign currency options
|
|
95
|
|
|
|
|
3
|
|
|
|
|
4
|
|
|
|
|
(1
|
)
|
|
||||
Total net investment hedge
|
|
451
|
|
|
|
|
20
|
|
|
|
|
21
|
|
|
|
|
(1
|
)
|
|
||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
5,829
|
|
|
|
|
224
|
|
|
|
|
442
|
|
|
|
|
(218
|
)
|
|
||||
Credit default swaps
|
|
207
|
|
|
|
|
(3
|
)
|
|
|
|
1
|
|
|
|
|
(4
|
)
|
|
||||
Interest rate swaps
|
|
112
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
||||
Total non-qualifying strategies
|
|
6,148
|
|
|
|
|
222
|
|
|
|
|
444
|
|
|
|
|
(222
|
)
|
|
||||
Total derivatives
|
|
$
|
22,475
|
|
|
|
|
$
|
(349
|
)
|
|
|
|
$
|
488
|
|
|
|
|
$
|
(837
|
)
|
|
Balance Sheet Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
$
|
5,308
|
|
|
|
|
$
|
488
|
|
|
|
|
$
|
488
|
|
|
|
|
$
|
0
|
|
|
Other liabilities
|
|
17,167
|
|
|
|
|
(837
|
)
|
|
|
|
0
|
|
|
|
|
(837
|
)
|
|
||||
Total derivatives
|
|
$
|
22,475
|
|
|
|
|
$
|
(349
|
)
|
|
|
|
$
|
488
|
|
|
|
|
$
|
(837
|
)
|
|
(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 |
|
Gains (Losses)
|
|
Ineffectiveness
Recognized for Fair Value Hedge |
||||||||||
2014:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency forwards
|
Fixed-maturity securities
|
|
$
|
(1,835
|
)
|
|
$
|
(38
|
)
|
|
$
|
(1,797
|
)
|
|
$
|
1,819
|
|
|
$
|
22
|
|
Foreign currency options
|
Fixed-maturity securities
|
|
(41
|
)
|
|
(4
|
)
|
|
(37
|
)
|
|
38
|
|
|
1
|
|
|||||
Interest rate
swaptions |
Fixed-maturity securities
|
|
(318
|
)
|
|
(36
|
)
|
|
(282
|
)
|
|
316
|
|
|
34
|
|
|||||
2013:
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency
forwards |
Fixed-maturity securities
|
|
$
|
(1,735
|
)
|
|
$
|
(25
|
)
|
|
$
|
(1,710
|
)
|
|
$
|
1,700
|
|
|
$
|
(10
|
)
|
Interest rate
swaptions |
Fixed-maturity securities
|
|
17
|
|
|
17
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
2012:
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency
forwards |
Fixed-maturity securities
|
|
$
|
(535
|
)
|
|
$
|
(8
|
)
|
|
$
|
(527
|
)
|
|
$
|
528
|
|
|
$
|
1
|
|
|
2014
|
2013
|
2012
|
|||||||||||||||||||||||||||
(In millions)
|
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
Realized
Investment Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
||||||||||||||||||||||||
Qualifying hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
$
|
(2
|
)
|
|
|
$
|
(17
|
)
|
|
|
$
|
(2
|
)
|
|
|
$
|
(10
|
)
|
|
|
$
|
(3
|
)
|
|
|
$
|
(22
|
)
|
|
Total cash flow hedges
|
|
(2
|
)
|
|
|
(17
|
)
|
|
|
(2
|
)
|
|
|
(10
|
)
|
|
|
(3
|
)
|
|
|
(22
|
)
|
|
||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forwards
(2)
|
|
(16
|
)
|
|
|
0
|
|
|
|
(35
|
)
|
|
|
0
|
|
|
|
(7
|
)
|
|
|
0
|
|
|
||||||
Foreign currency options
(
2)
|
|
(3
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Interest rate swaptions
(2)
|
|
(2
|
)
|
|
|
0
|
|
|
|
17
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Total fair value hedges
|
|
(21
|
)
|
|
|
0
|
|
|
|
(18
|
)
|
|
|
0
|
|
|
|
(7
|
)
|
|
|
0
|
|
|
||||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-derivative hedging
instruments |
|
0
|
|
|
|
39
|
|
|
|
0
|
|
|
|
155
|
|
|
|
0
|
|
|
|
96
|
|
|
||||||
Foreign currency swaps
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(104
|
)
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Foreign currency forwards
|
|
0
|
|
|
|
89
|
|
|
|
0
|
|
|
|
24
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Foreign currency options
|
|
0
|
|
|
|
(3
|
)
|
|
|
0
|
|
|
|
4
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Total net investment hedge
|
|
0
|
|
|
|
125
|
|
|
|
0
|
|
|
|
79
|
|
|
|
0
|
|
|
|
96
|
|
|
||||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
151
|
|
|
|
0
|
|
|
|
346
|
|
|
|
0
|
|
|
|
111
|
|
|
|
0
|
|
|
||||||
Foreign currency forwards
|
|
(11
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Foreign currency options
|
|
0
|
|
|
|
0
|
|
|
|
11
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Credit default swaps
|
|
3
|
|
|
|
0
|
|
|
|
31
|
|
|
|
0
|
|
|
|
64
|
|
|
|
0
|
|
|
||||||
Interest rate swaps
|
|
(1
|
)
|
|
|
0
|
|
|
|
(8
|
)
|
|
|
0
|
|
|
|
(14
|
)
|
|
|
0
|
|
|
||||||
Interest rate swaptions
|
|
1
|
|
|
|
0
|
|
|
|
(29
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Futures
|
|
(89
|
)
|
|
|
0
|
|
|
|
(5
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Total non- qualifying strategies
|
|
54
|
|
|
|
0
|
|
|
|
346
|
|
|
|
0
|
|
|
|
161
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
31
|
|
|
|
$
|
108
|
|
|
|
$
|
326
|
|
|
|
$
|
69
|
|
|
|
$
|
151
|
|
|
|
$
|
74
|
|
|
2014
|
||||||||||||||||||||||||||||||||||
|
|
|
Gross Amounts Not Offset
in Balance Sheet |
|
|
|||||||||||||||||||||||||||||
(In millions)
|
Gross Amount of Recognized Assets
|
|
Gross Amount
Offset in
Balance Sheet
|
|
Net Amount of Assets Presented in Balance Sheet
|
|
Carrying Value of Financial Instruments
|
Collateral Received
|
|
Net Amount
|
||||||||||||||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
$
|
746
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
746
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(568
|
)
|
|
|
|
$
|
178
|
|
|
Foreign currency forwards
|
|
56
|
|
|
|
|
0
|
|
|
|
|
56
|
|
|
|
|
0
|
|
|
|
(51
|
)
|
|
|
|
5
|
|
|
||||||
Total derivative assets,
subject to a master
netting arrangement
or offsetting
arrangement
|
|
802
|
|
|
|
|
0
|
|
|
|
|
802
|
|
|
|
|
0
|
|
|
|
(619
|
)
|
(1)
|
|
|
183
|
|
|
||||||
Securities lending and
similar arrangements
|
|
2,149
|
|
|
|
|
0
|
|
|
|
|
2,149
|
|
|
|
|
0
|
|
|
|
(2,149
|
)
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
2,951
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
2,951
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(2,768
|
)
|
|
|
|
$
|
183
|
|
|
2013
|
||||||||||||||||||||||||||||||||||
|
|
|
Gross Amounts Not Offset
in Balance Sheet |
|
|
|||||||||||||||||||||||||||||
(In millions)
|
Gross Amount of Recognized Assets
|
|
Gross Amount Offset in Balance Sheet
|
|
Net Amount of Assets Presented in Balance Sheet
|
|
Carrying Value of Financial Instruments
|
Collateral Received
|
|
Net Amount
|
||||||||||||||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
$
|
445
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
445
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(276
|
)
|
|
|
|
$
|
169
|
|
|
Foreign currency forwards
|
|
17
|
|
|
|
|
0
|
|
|
|
|
17
|
|
|
|
|
0
|
|
|
|
(16
|
)
|
|
|
|
1
|
|
|
||||||
Foreign currency options
|
|
4
|
|
|
|
|
0
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|
(3
|
)
|
|
|
|
1
|
|
|
||||||
Credit default swaps
|
|
1
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||||
Interest rate swaps
|
|
1
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||||
Interest rate swaptions
|
|
20
|
|
|
|
|
0
|
|
|
|
|
20
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
20
|
|
|
||||||
Total derivative assets,
subject to a master
netting arrangement
or offsetting
arrangement
|
|
488
|
|
|
|
|
0
|
|
|
|
|
488
|
|
|
|
|
0
|
|
|
|
(295
|
)
|
(1)
|
|
|
193
|
|
|
||||||
Securities lending and
similar arrangements
|
|
5,656
|
|
|
|
|
0
|
|
|
|
|
5,656
|
|
|
|
|
0
|
|
|
|
(5,656
|
)
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
6,144
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
6,144
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(5,951
|
)
|
|
|
|
$
|
193
|
|
|
2014
|
||||||||||||||||||||||||||||||||||
|
|
|
Gross Amounts Not Offset
in Balance Sheet
|
|
|
|||||||||||||||||||||||||||||
(In millions)
|
Gross Amount of Recognized Liabilities
|
|
Gross Amount Offset in Balance Sheet
|
|
Net Amount of Liabilities Presented in Balance Sheet
|
|
Carrying Value of Financial Instruments
|
Collateral Pledged
|
|
Net Amount
|
||||||||||||||||||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
$
|
(318
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(318
|
)
|
|
|
|
$
|
0
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(318
|
)
|
|
Foreign currency forwards
|
|
(1,912
|
)
|
|
|
|
0
|
|
|
|
|
(1,912
|
)
|
|
|
|
0
|
|
|
|
1,439
|
|
|
|
|
(473
|
)
|
|
||||||
Foreign currency options
|
|
(33
|
)
|
|
|
|
0
|
|
|
|
|
(33
|
)
|
|
|
|
0
|
|
|
|
24
|
|
|
|
|
(9
|
)
|
|
||||||
Interest rate swaptions
|
|
(160
|
)
|
|
|
|
0
|
|
|
|
|
(160
|
)
|
|
|
|
0
|
|
|
|
158
|
|
|
|
|
(2
|
)
|
|
||||||
Total derivative liabilities,
subject to a master
netting arrangement
or offsetting
arrangement
|
|
(2,423
|
)
|
|
|
|
0
|
|
|
|
|
(2,423
|
)
|
|
|
|
0
|
|
|
|
1,621
|
|
(1)
|
|
|
(802
|
)
|
|
||||||
Securities lending and
similar arrangements
|
|
(2,193
|
)
|
|
|
|
0
|
|
|
|
|
(2,193
|
)
|
|
|
|
2,149
|
|
|
|
0
|
|
|
|
|
(44
|
)
|
|
||||||
Total
|
|
$
|
(4,616
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(4,616
|
)
|
|
|
|
$
|
2,149
|
|
|
|
$
|
1,621
|
|
|
|
|
$
|
(846
|
)
|
|
2013
|
||||||||||||||||||||||||||||||||||
|
|
|
Gross Amounts Not Offset
in Balance Sheet |
|
|
|||||||||||||||||||||||||||||
(In millions)
|
Gross Amount of Recognized Liabilities
|
|
Gross Amount Offset in Balance Sheet
|
|
Net Amount of Liabilities Presented in Balance Sheet
|
|
Carrying Value of Financial Instruments
|
Collateral Pledged
|
|
Net Amount
|
||||||||||||||||||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
$
|
(218
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(218
|
)
|
|
|
|
$
|
0
|
|
|
|
$
|
1
|
|
|
|
|
$
|
(217
|
)
|
|
Foreign currency forwards
|
|
(582
|
)
|
|
|
|
0
|
|
|
|
|
(582
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
(582
|
)
|
|
||||||
Foreign currency options
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
(1
|
)
|
|
||||||
Credit default swaps
|
|
(4
|
)
|
|
|
|
0
|
|
|
|
|
(4
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
(4
|
)
|
|
||||||
Interest rate swaptions
|
|
(32
|
)
|
|
|
|
0
|
|
|
|
|
(32
|
)
|
|
|
|
0
|
|
|
|
7
|
|
|
|
|
(25
|
)
|
|
||||||
Total derivative liabilities,
subject to a master
netting arrangement
or offsetting
arrangement
|
|
(837
|
)
|
|
|
|
0
|
|
|
|
|
(837
|
)
|
|
|
|
0
|
|
|
|
8
|
|
(1)
|
|
|
(829
|
)
|
|
||||||
Securities lending and
similar arrangements
|
|
(5,820
|
)
|
|
|
|
0
|
|
|
|
|
(5,820
|
)
|
|
|
|
5,656
|
|
|
|
0
|
|
|
|
|
(164
|
)
|
|
||||||
Total
|
|
$
|
(6,657
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(6,657
|
)
|
|
|
|
$
|
5,656
|
|
|
|
$
|
8
|
|
|
|
|
$
|
(993
|
)
|
|
5.
|
FAIR VALUE MEASUREMENTS
|
|
2014
|
||||||||||||||||||||||
(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
|
|
$
|
18,683
|
|
|
|
|
$
|
515
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
19,198
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,257
|
|
|
|
|
0
|
|
|
|
|
1,257
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
379
|
|
|
|
|
223
|
|
|
|
|
602
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
7,897
|
|
|
|
|
0
|
|
|
|
|
7,897
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,416
|
|
|
|
|
0
|
|
|
|
|
1,416
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
6,572
|
|
|
|
|
26
|
|
|
|
|
6,598
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
28,605
|
|
|
|
|
0
|
|
|
|
|
28,605
|
|
|
||||
Total fixed maturities
|
|
18,683
|
|
|
|
|
46,641
|
|
|
|
|
249
|
|
|
|
|
65,573
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
2,289
|
|
|
|
|
149
|
|
|
|
|
2,438
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
231
|
|
|
|
|
0
|
|
|
|
|
231
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
2,520
|
|
|
|
|
149
|
|
|
|
|
2,669
|
|
|
||||
Equity securities
|
|
19
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|
|
28
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
640
|
|
|
|
|
106
|
|
|
|
|
746
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
56
|
|
|
|
|
0
|
|
|
|
|
56
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
696
|
|
|
|
|
106
|
|
|
|
|
802
|
|
|
||||
Other investments
|
|
171
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
171
|
|
|
||||
Cash and cash equivalents
|
|
4,658
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4,658
|
|
|
||||
Total assets
|
|
$
|
23,531
|
|
|
|
|
$
|
49,863
|
|
|
|
|
$
|
507
|
|
|
|
|
$
|
73,901
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
318
|
|
|
|
|
$
|
318
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
1,912
|
|
|
|
|
0
|
|
|
|
|
1,912
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
33
|
|
|
|
|
0
|
|
|
|
|
33
|
|
|
||||
Interest rate swaptions
|
|
0
|
|
|
|
|
160
|
|
|
|
|
0
|
|
|
|
|
160
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
2,105
|
|
|
|
|
$
|
318
|
|
|
|
|
$
|
2,423
|
|
|
|
2013
|
||||||||||||||||||||||
(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
|
|
$
|
14,928
|
|
|
|
|
$
|
504
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
15,432
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,051
|
|
|
|
|
0
|
|
|
|
|
1,051
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
402
|
|
|
|
|
369
|
|
|
|
|
771
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
7,562
|
|
|
|
|
0
|
|
|
|
|
7,562
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,523
|
|
|
|
|
0
|
|
|
|
|
1,523
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
6,486
|
|
|
|
|
23
|
|
|
|
|
6,509
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
25,222
|
|
|
|
|
0
|
|
|
|
|
25,222
|
|
|
||||
Total fixed maturities
|
|
14,928
|
|
|
|
|
42,750
|
|
|
|
|
392
|
|
|
|
|
58,070
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
2,686
|
|
|
|
|
52
|
|
|
|
|
2,738
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
209
|
|
|
|
|
0
|
|
|
|
|
209
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
2,895
|
|
|
|
|
52
|
|
|
|
|
2,947
|
|
|
||||
Equity securities
|
|
14
|
|
|
|
|
4
|
|
|
|
|
3
|
|
|
|
|
21
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
341
|
|
|
|
|
104
|
|
|
|
|
445
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
17
|
|
|
|
|
0
|
|
|
|
|
17
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|
|
4
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||
Interest rate swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||
Interest rate swaptions
|
|
0
|
|
|
|
|
20
|
|
|
|
|
0
|
|
|
|
|
20
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
382
|
|
|
|
|
106
|
|
|
|
|
488
|
|
|
||||
Other investments
|
|
463
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
463
|
|
|
||||
Cash and cash equivalents
|
|
2,543
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
2,543
|
|
|
||||
Total assets
|
|
$
|
17,948
|
|
|
|
|
$
|
46,031
|
|
|
|
|
$
|
553
|
|
|
|
|
$
|
64,532
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
15
|
|
|
|
|
$
|
203
|
|
|
|
|
$
|
218
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
582
|
|
|
|
|
0
|
|
|
|
|
582
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4
|
|
|
|
|
4
|
|
|
||||
Interest rate swaptions
|
|
0
|
|
|
|
|
32
|
|
|
|
|
0
|
|
|
|
|
32
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
630
|
|
|
|
|
$
|
207
|
|
|
|
|
$
|
837
|
|
|
|
2014
|
|||||||||||||||||||||||||||
(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
|
|
$
|
20,023
|
|
|
|
$
|
23,218
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
23,218
|
|
|
Municipalities
|
|
346
|
|
|
|
0
|
|
|
|
|
417
|
|
|
|
|
0
|
|
|
|
|
417
|
|
|
|||||
Mortgage and asset-backed
securities |
|
43
|
|
|
|
0
|
|
|
|
|
15
|
|
|
|
|
31
|
|
|
|
|
46
|
|
|
|||||
Public utilities
|
|
3,342
|
|
|
|
0
|
|
|
|
|
3,603
|
|
|
|
|
0
|
|
|
|
|
3,603
|
|
|
|||||
Sovereign and
supranational |
|
2,556
|
|
|
|
0
|
|
|
|
|
2,814
|
|
|
|
|
0
|
|
|
|
|
2,814
|
|
|
|||||
Banks/financial institutions
|
|
4,932
|
|
|
|
0
|
|
|
|
|
5,085
|
|
|
|
|
0
|
|
|
|
|
5,085
|
|
|
|||||
Other corporate
|
|
3,000
|
|
|
|
0
|
|
|
|
|
3,314
|
|
|
|
|
0
|
|
|
|
|
3,314
|
|
|
|||||
Total assets
|
|
$
|
34,242
|
|
|
|
$
|
23,218
|
|
|
|
|
$
|
15,248
|
|
|
|
|
$
|
31
|
|
|
|
|
$
|
38,497
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
6,031
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
5,905
|
|
|
|
|
$
|
5,905
|
|
|
Notes payable
(excluding capital leases) |
|
5,268
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
5,835
|
|
|
|
|
5,835
|
|
|
|||||
Total liabilities
|
|
$
|
11,299
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
11,740
|
|
|
|
|
$
|
11,740
|
|
|
|
|
|
|
2013
|
||||||||||||||||||||||||
(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
|
|
$
|
27,362
|
|
|
|
$
|
28,708
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
28,708
|
|
|
Municipalities
|
|
399
|
|
|
|
0
|
|
|
|
|
440
|
|
|
|
|
0
|
|
|
|
|
440
|
|
|
|||||
Mortgage and asset-backed
securities |
|
58
|
|
|
|
0
|
|
|
|
|
20
|
|
|
|
|
41
|
|
|
|
|
61
|
|
|
|||||
Public utilities
|
|
3,900
|
|
|
|
0
|
|
|
|
|
3,928
|
|
|
|
|
0
|
|
|
|
|
3,928
|
|
|
|||||
Sovereign and
supranational |
|
2,941
|
|
|
|
0
|
|
|
|
|
3,040
|
|
|
|
|
0
|
|
|
|
|
3,040
|
|
|
|||||
Banks/financial institutions
|
|
6,310
|
|
|
|
0
|
|
|
|
|
6,128
|
|
|
|
|
0
|
|
|
|
|
6,128
|
|
|
|||||
Other corporate
|
|
3,445
|
|
|
|
0
|
|
|
|
|
3,541
|
|
|
|
|
0
|
|
|
|
|
3,541
|
|
|
|||||
Total assets
|
|
$
|
44,415
|
|
|
|
$
|
28,708
|
|
|
|
|
$
|
17,097
|
|
|
|
|
$
|
41
|
|
|
|
|
$
|
45,846
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
5,861
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
5,715
|
|
|
|
|
$
|
5,715
|
|
|
Notes payable
(excluding capital leases) |
|
4,891
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
5,241
|
|
|
|
|
5,241
|
|
|
|||||
Total liabilities
|
|
$
|
10,752
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
10,956
|
|
|
|
|
$
|
10,956
|
|
|
|
|
2014
|
||||||||||||||||||||||
(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
|
|
|
$
|
18,683
|
|
|
|
|
$
|
515
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
19,198
|
|
|
Total government and agencies
|
|
|
18,683
|
|
|
|
|
515
|
|
|
|
|
0
|
|
|
|
|
19,198
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,257
|
|
|
|
|
0
|
|
|
|
|
1,257
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,257
|
|
|
|
|
0
|
|
|
|
|
1,257
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
379
|
|
|
|
|
0
|
|
|
|
|
379
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
223
|
|
|
|
|
223
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
379
|
|
|
|
|
223
|
|
|
|
|
602
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7,897
|
|
|
|
|
0
|
|
|
|
|
7,897
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
7,897
|
|
|
|
|
0
|
|
|
|
|
7,897
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,416
|
|
|
|
|
0
|
|
|
|
|
1,416
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,416
|
|
|
|
|
0
|
|
|
|
|
1,416
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
6,514
|
|
|
|
|
0
|
|
|
|
|
6,514
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
58
|
|
|
|
|
26
|
|
|
|
|
84
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
6,572
|
|
|
|
|
26
|
|
|
|
|
6,598
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
28,605
|
|
|
|
|
0
|
|
|
|
|
28,605
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
28,605
|
|
|
|
|
0
|
|
|
|
|
28,605
|
|
|
||||
Total fixed maturities
|
|
|
18,683
|
|
|
|
|
46,641
|
|
|
|
|
249
|
|
|
|
|
65,573
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,289
|
|
|
|
|
0
|
|
|
|
|
2,289
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
149
|
|
|
|
|
149
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
2,289
|
|
|
|
|
149
|
|
|
|
|
2,438
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
231
|
|
|
|
|
0
|
|
|
|
|
231
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
231
|
|
|
|
|
0
|
|
|
|
|
231
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
2,520
|
|
|
|
|
149
|
|
|
|
|
2,669
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
19
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
25
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
||||
Total equity securities
|
|
|
19
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|
|
28
|
|
|
||||
Total securities available for sale
|
|
|
$
|
18,702
|
|
|
|
|
$
|
49,167
|
|
|
|
|
$
|
401
|
|
|
|
|
$
|
68,270
|
|
|
|
|
2014
|
||||||||||||||||||||||
(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
|
|
|
$
|
23,218
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
23,218
|
|
|
Total government and agencies
|
|
|
23,218
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
23,218
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
417
|
|
|
|
|
0
|
|
|
|
|
417
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
417
|
|
|
|
|
0
|
|
|
|
|
417
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
15
|
|
|
|
|
0
|
|
|
|
|
15
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
31
|
|
|
|
|
31
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
15
|
|
|
|
|
31
|
|
|
|
|
46
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,603
|
|
|
|
|
0
|
|
|
|
|
3,603
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
3,603
|
|
|
|
|
0
|
|
|
|
|
3,603
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,814
|
|
|
|
|
0
|
|
|
|
|
2,814
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
2,814
|
|
|
|
|
0
|
|
|
|
|
2,814
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
5,085
|
|
|
|
|
0
|
|
|
|
|
5,085
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
5,085
|
|
|
|
|
0
|
|
|
|
|
5,085
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,287
|
|
|
|
|
0
|
|
|
|
|
3,287
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
27
|
|
|
|
|
0
|
|
|
|
|
27
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
3,314
|
|
|
|
|
0
|
|
|
|
|
3,314
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
23,218
|
|
|
|
|
$
|
15,248
|
|
|
|
|
$
|
31
|
|
|
|
|
$
|
38,497
|
|
|
|
|
2013
|
||||||||||||||||||||||
(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
|
|
|
$
|
14,928
|
|
|
|
|
$
|
504
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
15,432
|
|
|
Total government and agencies
|
|
|
14,928
|
|
|
|
|
504
|
|
|
|
|
0
|
|
|
|
|
15,432
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,051
|
|
|
|
|
0
|
|
|
|
|
1,051
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,051
|
|
|
|
|
0
|
|
|
|
|
1,051
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
402
|
|
|
|
|
0
|
|
|
|
|
402
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
369
|
|
|
|
|
369
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
402
|
|
|
|
|
369
|
|
|
|
|
771
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7,562
|
|
|
|
|
0
|
|
|
|
|
7,562
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
7,562
|
|
|
|
|
0
|
|
|
|
|
7,562
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,523
|
|
|
|
|
0
|
|
|
|
|
1,523
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,523
|
|
|
|
|
0
|
|
|
|
|
1,523
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
6,486
|
|
|
|
|
0
|
|
|
|
|
6,486
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
23
|
|
|
|
|
23
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
6,486
|
|
|
|
|
23
|
|
|
|
|
6,509
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
25,220
|
|
|
|
|
0
|
|
|
|
|
25,220
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
2
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
25,222
|
|
|
|
|
0
|
|
|
|
|
25,222
|
|
|
||||
Total fixed maturities
|
|
|
14,928
|
|
|
|
|
42,750
|
|
|
|
|
392
|
|
|
|
|
58,070
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,686
|
|
|
|
|
52
|
|
|
|
|
2,738
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
2,686
|
|
|
|
|
52
|
|
|
|
|
2,738
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
209
|
|
|
|
|
0
|
|
|
|
|
209
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
209
|
|
|
|
|
0
|
|
|
|
|
209
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
2,895
|
|
|
|
|
52
|
|
|
|
|
2,947
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
14
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|
|
18
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
||||
Total equity securities
|
|
|
14
|
|
|
|
|
4
|
|
|
|
|
3
|
|
|
|
|
21
|
|
|
||||
Total securities available for sale
|
|
|
$
|
14,942
|
|
|
|
|
$
|
45,649
|
|
|
|
|
$
|
447
|
|
|
|
|
$
|
61,038
|
|
|
|
|
2013
|
||||||||||||||||||||||
(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
|
|
|
$
|
28,708
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
28,708
|
|
|
Total government and agencies
|
|
|
28,708
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
28,708
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
440
|
|
|
|
|
0
|
|
|
|
|
440
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
440
|
|
|
|
|
0
|
|
|
|
|
440
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
20
|
|
|
|
|
0
|
|
|
|
|
20
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
41
|
|
|
|
|
41
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
20
|
|
|
|
|
41
|
|
|
|
|
61
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,928
|
|
|
|
|
0
|
|
|
|
|
3,928
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
3,928
|
|
|
|
|
0
|
|
|
|
|
3,928
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,040
|
|
|
|
|
0
|
|
|
|
|
3,040
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
3,040
|
|
|
|
|
0
|
|
|
|
|
3,040
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
6,128
|
|
|
|
|
0
|
|
|
|
|
6,128
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
6,128
|
|
|
|
|
0
|
|
|
|
|
6,128
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,509
|
|
|
|
|
0
|
|
|
|
|
3,509
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
32
|
|
|
|
|
0
|
|
|
|
|
32
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
3,541
|
|
|
|
|
0
|
|
|
|
|
3,541
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
28,708
|
|
|
|
|
$
|
17,097
|
|
|
|
|
$
|
41
|
|
|
|
|
$
|
45,846
|
|
|
2014
|
|||||||||||||||||||||||||||||||||||||||||||
|
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
|
$
|
369
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
23
|
|
|
$
|
0
|
|
|
$
|
52
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
(99
|
)
|
|
$
|
(3
|
)
|
|
$
|
346
|
|
Realized investment gains (losses) included
in earnings |
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
(191
|
)
|
|
3
|
|
|
(189
|
)
|
|||||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
(134
|
)
|
|
0
|
|
|
0
|
|
|
3
|
|
|
0
|
|
|
8
|
|
|
0
|
|
|
0
|
|
|
(17
|
)
|
|
0
|
|
|
(140
|
)
|
|||||||||||
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
|
|
|
0
|
|
|
0
|
|
|
(60
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(60
|
)
|
|||||||||||
Settlements
|
(12
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
95
|
|
|
0
|
|
|
83
|
|
|||||||||||
Transfers into Level 3
(2)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
149
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
149
|
|
|||||||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||||||
Balance, end of period
|
$
|
223
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
26
|
|
|
$
|
0
|
|
|
$
|
149
|
|
|
$
|
3
|
|
|
$
|
0
|
|
|
$
|
(212
|
)
|
|
$
|
0
|
|
|
$
|
189
|
|
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) |
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(1
|
)
|
|
$
|
(191
|
)
|
|
$
|
3
|
|
|
$
|
(189
|
)
|
2013
|
|||||||||||||||||||||||||||||||||||||||||||
|
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
|
$
|
338
|
|
|
$
|
420
|
|
|
$
|
418
|
|
|
$
|
1,024
|
|
|
$
|
986
|
|
|
$
|
215
|
|
|
$
|
4
|
|
|
$
|
29
|
|
|
$
|
(172
|
)
|
|
$
|
(65
|
)
|
|
$
|
3,197
|
|
Realized investment gains (losses) included
in earnings |
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(8
|
)
|
|
84
|
|
|
29
|
|
|
105
|
|
|||||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
(72
|
)
|
|
(20
|
)
|
|
0
|
|
|
(4
|
)
|
|
0
|
|
|
3
|
|
|
(1
|
)
|
|
0
|
|
|
(11
|
)
|
|
0
|
|
|
(105
|
)
|
|||||||||||
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
|
|
|
(400
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(20
|
)
|
|
0
|
|
|
33
|
|
|
(387
|
)
|
|||||||||||
Settlements
|
(13
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(13
|
)
|
|||||||||||
Transfers into Level 3
(2)
|
125
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
49
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
174
|
|
|||||||||||
Transfers out of Level 3
(3)
|
(9
|
)
|
|
0
|
|
|
(418
|
)
|
|
(997
|
)
|
|
(986
|
)
|
|
(215
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(2,625
|
)
|
|||||||||||
Balance, end of period
|
$
|
369
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
23
|
|
|
$
|
0
|
|
|
$
|
52
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
(99
|
)
|
|
$
|
(3
|
)
|
|
$
|
346
|
|
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) |
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(8
|
)
|
|
$
|
84
|
|
|
$
|
29
|
|
|
$
|
105
|
|
2014
|
|||||||||||||
(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
|
|
|
$
|
223
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
Banks/financial institutions
|
|
|
26
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
|
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Banks/financial institutions
|
|
|
149
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
|
Equity securities
|
|
|
3
|
|
|
|
Net asset value
|
|
Offered quotes
|
|
$1 - $677 ($6)
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
8
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.28% - 2.70%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.53% - 1.34%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
16 - 105 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.50%
|
(c)
|
||
|
|
|
98
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.28% - 2.70%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.53% - 1.34%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.50%
|
(c)
|
||
Total assets
|
|
|
$
|
507
|
|
|
|
|
|
|
|
|
|
2014
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
$
|
176
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.28% - 2.70%
|
(a)
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.53% - 1.34%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
16 - 105 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.50%
|
(c)
|
||
|
|
|
111
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.28% - 2.70%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.53% - 1.34%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
13 - 145 bps
|
|
||
|
|
|
31
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.28% - 2.70%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.53% - 1.34%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.50%
|
(c)
|
||
Total liabilities
|
|
|
$
|
318
|
|
|
|
|
|
|
|
|
|
2013
|
|||||||||||||
(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
|
|
|
$
|
369
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(e)
|
Banks/financial institutions
|
|
|
23
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(e)
|
|
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Banks/financial institutions
|
|
|
52
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(e)
|
|
Equity securities
|
|
|
3
|
|
|
|
Net asset value
|
|
Offered quotes
|
|
$1-$774 ($7)
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
30
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
3.09% - 3.96%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.93% - 2.02%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
16 - 141 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.16%
|
(d)
|
||
|
|
|
9
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
3.09% - 3.96%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.93% - 2.02%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
17 - 149 bps
|
|
||
|
|
|
65
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
3.09% - 3.96%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.93% - 2.02%
|
(c)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.16%
|
(d)
|
||
Credit default swaps
|
|
|
1
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
65% - 76% (72%)
|
(a)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
65 - 106 (92) bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
37.00%
|
|
||
Interest rate swaps
|
|
|
1
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
65% - 76% (72%)
|
(a)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
65 - 106 (92) bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
37.00%
|
|
||
Total assets
|
|
|
$
|
553
|
|
|
|
|
|
|
|
|
|
2013
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
$
|
99
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
3.09% - 3.96%
|
(b)
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.93% - 2.02%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
16 - 141 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.16%
|
(d)
|
||
|
|
|
24
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
3.09% - 3.96%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.93% - 2.02%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
11 - 189 bps
|
|
||
|
|
|
80
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
3.09% - 3.96%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.93% - 2.02%
|
(c)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.16%
|
(d)
|
||
Credit default swaps
|
|
|
4
|
|
|
|
Discounted cash flow
|
|
Base correlations
|
|
65% - 76% (72%)
|
(a)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
65 - 106 (92) bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
37.00%
|
|
||
Total liabilities
|
|
|
$
|
207
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
||||||||||||||||||||
(In millions)
|
Japan
|
|
U.S.
|
|
Japan
|
|
U.S.
|
||||||||||||||||
Deferred policy acquisition costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of year
|
|
$
|
5,819
|
|
|
|
|
$
|
2,979
|
|
|
|
|
$
|
6,801
|
|
|
|
|
$
|
2,857
|
|
|
Capitalization
|
|
790
|
|
|
|
|
548
|
|
|
|
|
893
|
|
|
|
|
555
|
|
|
||||
Amortization
|
|
(649
|
)
|
|
|
|
(459
|
)
|
|
|
|
(641
|
)
|
|
|
|
(433
|
)
|
|
||||
Foreign currency translation and other
|
|
(749
|
)
|
|
|
|
(6
|
)
|
|
|
|
(1,234
|
)
|
|
|
|
0
|
|
|
||||
Balance, end of year
|
|
$
|
5,211
|
|
|
|
|
$
|
3,062
|
|
|
|
|
$
|
5,819
|
|
|
|
|
$
|
2,979
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Advertising expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
103
|
|
|
|
|
$
|
112
|
|
|
|
|
$
|
127
|
|
|
Aflac U.S.
|
|
126
|
|
|
|
|
128
|
|
|
|
|
127
|
|
|
|||
Total advertising expense
|
|
$
|
229
|
|
|
|
|
$
|
240
|
|
|
|
|
$
|
254
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Depreciation expense
|
|
$
|
47
|
|
|
|
|
$
|
56
|
|
|
|
|
$
|
60
|
|
|
Other amortization expense
|
|
8
|
|
|
|
|
13
|
|
|
|
|
7
|
|
|
|||
Total depreciation and other amortization expense
|
|
$
|
55
|
|
|
|
|
$
|
69
|
|
|
|
|
$
|
67
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Lease and rental expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
52
|
|
|
|
|
$
|
55
|
|
|
|
|
$
|
71
|
|
|
Aflac U.S.
|
|
15
|
|
|
|
|
10
|
|
|
|
|
9
|
|
|
|||
Other
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|||
Total lease and rental expense
|
|
$
|
68
|
|
|
|
|
$
|
66
|
|
|
|
|
$
|
81
|
|
|
|
|
|
Liability Amounts
|
|
|
Interest Rates
|
||||||||||
(In millions)
|
Policy
Issue Year |
|
2014
|
|
2013
|
|
|
Year of
Issue |
|
In 20
Years |
||||||
Health insurance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Japan:
|
2002 - 2014
|
|
$
|
3,900
|
|
|
$
|
3,370
|
|
|
|
1.25 - 2.5
|
%
|
|
1.25 - 2.5
|
%
|
|
1974 - 2013
|
|
3,449
|
|
|
3,889
|
|
|
|
2.7 - 2.75
|
|
|
2.25 - 2.75
|
|
||
|
1998 - 2014
|
|
10,641
|
|
|
11,763
|
|
|
|
3.0
|
|
|
3.0
|
|
||
|
1997 - 1999
|
|
2,461
|
|
|
2,842
|
|
|
|
3.5
|
|
|
3.5
|
|
||
|
1994 - 1996
|
|
3,023
|
|
|
3,483
|
|
|
|
4.0 - 4.5
|
|
|
4.0 - 4.5
|
|
||
|
1987 - 1994
|
|
14,394
|
|
|
16,727
|
|
|
|
5.5
|
|
|
5.5
|
|
||
|
1985 - 1991
|
|
1,923
|
|
|
2,262
|
|
|
|
5.25 - 6.75
|
|
|
5.25 - 5.5
|
|
||
|
1978 - 1984
|
|
2,260
|
|
|
2,699
|
|
|
|
6.5
|
|
|
5.5
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S.:
|
2012 - 2014
|
|
588
|
|
|
345
|
|
|
|
3.0 - 3.75
|
|
|
3.0 - 3.75
|
|
||
|
2011
|
|
276
|
|
|
243
|
|
|
|
4.75
|
|
|
4.75
|
|
||
|
2005 - 2010
|
|
2,951
|
|
|
2,897
|
|
|
|
5.5
|
|
|
5.5
|
|
||
|
1988 - 2004
|
|
706
|
|
|
725
|
|
|
|
8.0
|
|
|
6.0
|
|
||
|
1986 - 2004
|
|
1,293
|
|
|
1,301
|
|
|
|
6.0
|
|
|
6.0
|
|
||
|
1981 - 1986
|
|
183
|
|
|
190
|
|
|
|
6.5 - 7.0
|
|
|
5.5 - 6.5
|
|
||
|
1998 - 2004
|
|
1,260
|
|
|
1,237
|
|
|
|
7.0
|
|
|
7.0
|
|
||
|
Other
|
|
21
|
|
|
22
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Life insurance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Japan:
|
2013 - 2014
|
|
312
|
|
|
59
|
|
|
|
1.5 - 1.75
|
|
|
1.5 - 1.75
|
|
||
|
2001 - 2013
|
|
3,674
|
|
|
3,009
|
|
|
|
1.65 - 1.85
|
|
|
1.65 - 1.85
|
|
||
|
2011 - 2014
|
|
2,298
|
|
|
1,584
|
|
|
|
2.0
|
|
|
2.0
|
|
||
|
2009 - 2011
|
|
1,890
|
|
|
1,648
|
|
|
|
2.25
|
|
|
2.25
|
|
||
|
2005 - 2011
|
|
1,214
|
|
|
1,211
|
|
|
|
2.5
|
|
|
2.5
|
|
||
|
1985 - 2006
|
|
2,006
|
|
|
2,303
|
|
|
|
2.7
|
|
|
2.25
|
|
||
|
2007 - 2011
|
|
1,010
|
|
|
1,025
|
|
|
|
2.75
|
|
|
2.75
|
|
||
|
1999 - 2011
|
|
1,944
|
|
|
2,164
|
|
|
|
3.0
|
|
|
3.0
|
|
||
|
1996 - 2009
|
|
633
|
|
|
721
|
|
|
|
3.5
|
|
|
3.5
|
|
||
|
1994 - 1996
|
|
884
|
|
|
1,021
|
|
|
|
4.0 - 4.5
|
|
|
4.0 - 4.5
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S.:
|
1956 - 2014
|
|
452
|
|
|
396
|
|
|
|
3.5 - 6.0
|
|
|
3.5 - 6.0
|
|
||
Total
|
|
|
$
|
65,646
|
|
|
$
|
69,136
|
|
|
|
|
|
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Unpaid supplemental health claims, beginning of year
|
|
$
|
3,537
|
|
|
|
|
$
|
3,781
|
|
|
|
|
$
|
3,749
|
|
|
Less reinsurance recoverables
|
|
9
|
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|||
Net balance, beginning of year
|
|
3,528
|
|
|
|
|
3,771
|
|
|
|
|
3,749
|
|
|
|||
Add claims incurred during the year related to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current year
|
|
6,866
|
|
|
|
|
7,215
|
|
|
|
|
8,013
|
|
|
|||
Prior years
|
|
(301
|
)
|
|
|
|
(236
|
)
|
|
|
|
(173
|
)
|
|
|||
Total incurred
|
|
6,565
|
|
|
|
|
6,979
|
|
|
|
|
7,840
|
|
|
|||
Less claims paid during the year on claims incurred during:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current year
|
|
4,532
|
|
|
|
|
4,834
|
|
|
|
|
5,453
|
|
|
|||
Prior years
|
|
1,873
|
|
|
|
|
1,931
|
|
|
|
|
2,082
|
|
|
|||
Total paid
|
|
6,405
|
|
|
|
|
6,765
|
|
|
|
|
7,535
|
|
|
|||
Effect of foreign exchange rate changes on unpaid claims
|
|
(283
|
)
|
|
|
|
(457
|
)
|
|
|
|
(283
|
)
|
|
|||
Net balance, end of year
|
|
3,405
|
|
|
|
|
3,528
|
|
|
|
|
3,771
|
|
|
|||
Add reinsurance recoverables
|
|
7
|
|
|
|
|
9
|
|
|
|
|
10
|
|
|
|||
Unpaid supplemental health claims, end of year
|
|
3,412
|
|
|
|
|
3,537
|
|
|
|
|
3,781
|
|
|
|||
Unpaid life claims, end of year
|
|
218
|
|
|
|
|
226
|
|
|
|
|
253
|
|
|
|||
Total liability for unpaid policy claims
|
|
$
|
3,630
|
|
|
|
|
$
|
3,763
|
|
|
|
|
$
|
4,034
|
|
|
(In millions)
|
2014
|
2013
|
||||||||
Direct premium income
|
|
$
|
19,412
|
|
|
|
$
|
20,233
|
|
|
Ceded to other companies:
|
|
|
|
|
|
|
||||
Ceded Aflac Japan closed medical block
|
|
(311
|
)
|
|
|
(76
|
)
|
|
||
Other
|
|
(39
|
)
|
|
|
(34
|
)
|
|
||
Assumed from other companies
|
|
10
|
|
|
|
12
|
|
|
||
Net premium income
|
|
$
|
19,072
|
|
|
|
$
|
20,135
|
|
|
|
|
|
|
|
|
|
||||
Direct benefits and claims
|
|
$
|
13,235
|
|
|
|
$
|
13,903
|
|
|
Ceded benefits and change in reserves for future benefits:
|
|
|
|
|
|
|
||||
Ceded Aflac Japan closed medical block
|
|
(276
|
)
|
|
|
(67
|
)
|
|
||
Other
|
|
(27
|
)
|
|
|
(31
|
)
|
|
||
Assumed from other companies
|
|
5
|
|
|
|
8
|
|
|
||
Benefits and claims, net
|
|
$
|
12,937
|
|
|
|
$
|
13,813
|
|
|
(In millions)
|
2014
|
|
2013
|
||||||||
3.45% senior notes due August 2015
|
|
$
|
300
|
|
|
|
|
$
|
300
|
|
|
2.65% senior notes due February 2017
|
|
653
|
|
(1)
|
|
|
655
|
|
(1)
|
||
8.50% senior notes due May 2019
|
|
850
|
|
|
|
|
850
|
|
|
||
4.00% senior notes due February 2022
|
|
350
|
|
(2)
|
|
|
349
|
|
(2)
|
||
3.625% senior notes due June 2023
|
|
700
|
|
|
|
|
700
|
|
|
||
3.625% senior notes due November 2024
|
|
749
|
|
(2)
|
|
|
0
|
|
|
||
6.90% senior notes due December 2039
|
|
397
|
|
(2)
|
|
|
396
|
|
(2)
|
||
6.45% senior notes due August 2040
|
|
448
|
|
(2)
|
|
|
448
|
|
(2)
|
||
5.50% subordinated debentures due September 2052
|
|
500
|
|
|
|
|
500
|
|
|
||
Yen-denominated Uridashi notes:
|
|
|
|
|
|
|
|
||||
2.26% notes due September 2016 (principal amount 8 billion yen)
|
|
66
|
|
|
|
|
76
|
|
|
||
Yen-denominated Samurai notes:
|
|
|
|
|
|
|
|
||||
1.47% notes paid July 2014 (principal amount 28.7 billion yen)
|
|
0
|
|
|
|
|
272
|
|
|
||
1.84% notes due July 2016 (principal amount 15.8 billion yen)
|
|
131
|
|
|
|
|
150
|
|
|
||
Variable interest rate notes paid July 2014 (1.30% in 2013, principal amount
5.5 billion yen) |
|
0
|
|
|
|
|
52
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
|
|
|
||||
3.60% loan due July 2015 (principal amount 10 billion yen)
|
|
83
|
|
|
|
|
95
|
|
|
||
3.00% loan due August 2015 (principal amount 5 billion yen)
|
|
41
|
|
|
|
|
48
|
|
|
||
Capitalized lease obligations payable through 2019
|
|
14
|
|
|
|
|
6
|
|
|
||
Total notes payable
|
|
$
|
5,282
|
|
|
|
|
$
|
4,897
|
|
|
(In millions)
|
Long-term
Debt |
|
Capitalized
Lease Obligations |
|
Total
Notes Payable |
||||||||||||
2015
|
|
$
|
424
|
|
|
|
|
$
|
4
|
|
|
|
|
$
|
428
|
|
|
2016
|
|
197
|
|
|
|
|
4
|
|
|
|
|
201
|
|
|
|||
2017
|
|
650
|
|
|
|
|
3
|
|
|
|
|
653
|
|
|
|||
2018
|
|
0
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|||
2019
|
|
850
|
|
|
|
|
1
|
|
|
|
|
851
|
|
|
|||
Thereafter
|
|
3,150
|
|
|
|
|
0
|
|
|
|
|
3,150
|
|
|
|||
Total
|
|
$
|
5,271
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
5,285
|
|
|
(In millions)
|
Foreign
|
|
U.S.
|
|
Total
|
||||||||||||
2014:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
995
|
|
|
|
|
$
|
84
|
|
|
|
|
$
|
1,079
|
|
|
Deferred
|
|
125
|
|
|
|
|
336
|
|
|
|
|
461
|
|
|
|||
Total income tax expense
|
|
$
|
1,120
|
|
|
|
|
$
|
420
|
|
|
|
|
$
|
1,540
|
|
|
2013:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
934
|
|
|
|
|
$
|
302
|
|
|
|
|
$
|
1,236
|
|
|
Deferred
|
|
299
|
|
|
|
|
123
|
|
|
|
|
422
|
|
|
|||
Total income tax expense
|
|
$
|
1,233
|
|
|
|
|
$
|
425
|
|
|
|
|
$
|
1,658
|
|
|
2012:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
513
|
|
|
|
|
$
|
303
|
|
|
|
|
$
|
816
|
|
|
Deferred
|
|
950
|
|
|
|
|
(330
|
)
|
|
|
|
620
|
|
|
|||
Total income tax expense
|
|
$
|
1,463
|
|
|
|
|
$
|
(27
|
)
|
|
|
|
$
|
1,436
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Income taxes based on U.S. statutory rates
|
|
$
|
1,572
|
|
|
|
|
$
|
1,685
|
|
|
|
|
$
|
1,506
|
|
|
Utilization of foreign tax credit
|
|
(32
|
)
|
|
|
|
(37
|
)
|
|
|
|
(53
|
)
|
|
|||
Nondeductible expenses
|
|
5
|
|
|
|
|
6
|
|
|
|
|
8
|
|
|
|||
Other, net
|
|
(5
|
)
|
|
|
|
4
|
|
|
|
|
(25
|
)
|
|
|||
Income tax expense
|
|
$
|
1,540
|
|
|
|
|
$
|
1,658
|
|
|
|
|
$
|
1,436
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Statements of earnings
|
|
$
|
1,540
|
|
|
|
|
$
|
1,658
|
|
|
|
|
$
|
1,436
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses) during period
|
|
(419
|
)
|
|
|
|
253
|
|
|
|
|
363
|
|
|
|||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on investment
securities during period |
|
2,237
|
|
|
|
|
(904
|
)
|
|
|
|
904
|
|
|
|||
Reclassification adjustment for realized (gains) losses
on investment securities included in net earnings |
|
19
|
|
|
|
|
19
|
|
|
|
|
(174
|
)
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
(3
|
)
|
|
|
|
(4
|
)
|
|
|
|
(8
|
)
|
|
|||
Pension liability adjustment during period
|
|
(31
|
)
|
|
|
|
55
|
|
|
|
|
(7
|
)
|
|
|||
Total income tax expense (benefit) related to items of
other comprehensive income (loss) |
|
1,803
|
|
|
|
|
(581
|
)
|
|
|
|
1,078
|
|
|
|||
Additional paid-in capital (exercise of stock options)
|
|
(7
|
)
|
|
|
|
(8
|
)
|
|
|
|
(12
|
)
|
|
|||
Total income taxes
|
|
$
|
3,336
|
|
|
|
|
$
|
1,069
|
|
|
|
|
$
|
2,502
|
|
|
(In millions)
|
2014
|
|
2013
|
||||||||
Deferred income tax liabilities:
|
|
|
|
|
|
|
|
||||
Deferred policy acquisition costs
|
|
$
|
2,209
|
|
|
|
|
$
|
2,406
|
|
|
Unrealized gains on investment securities
|
|
2,584
|
|
|
|
|
533
|
|
|
||
Premiums receivable
|
|
139
|
|
|
|
|
134
|
|
|
||
Policy benefit reserves
|
|
1,376
|
|
|
|
|
1,451
|
|
|
||
Depreciation
|
|
51
|
|
|
|
|
54
|
|
|
||
Other
|
|
20
|
|
|
|
|
22
|
|
|
||
Total deferred income tax liabilities
|
|
6,379
|
|
|
|
|
4,600
|
|
|
||
Deferred income tax assets:
|
|
|
|
|
|
|
|
||||
Other basis differences in investment securities
|
|
1,331
|
|
|
|
|
1,129
|
|
|
||
Unfunded retirement benefits
|
|
16
|
|
|
|
|
16
|
|
|
||
Other accrued expenses
|
|
4
|
|
|
|
|
23
|
|
|
||
Policy and contract claims
|
|
99
|
|
|
|
|
111
|
|
|
||
Foreign currency loss on Japan branch
|
|
327
|
|
|
|
|
189
|
|
|
||
Deferred compensation
|
|
226
|
|
|
|
|
182
|
|
|
||
Capital loss carryforwards
|
|
26
|
|
|
|
|
514
|
|
|
||
Total deferred income tax assets
|
|
2,029
|
|
|
|
|
2,164
|
|
|
||
Net deferred income tax liability
|
|
4,350
|
|
|
|
|
2,436
|
|
|
||
Current income tax liability
|
|
943
|
|
|
|
|
1,282
|
|
|
||
Total income tax liability
|
|
$
|
5,293
|
|
|
|
|
$
|
3,718
|
|
|
(In millions)
|
|
2014
|
|
|
2013
|
|
||||
Balance, beginning of year
|
|
$
|
328
|
|
|
|
$
|
401
|
|
|
Additions for tax positions of prior years
|
|
2
|
|
|
|
1
|
|
|
||
Reductions for tax positions of prior years
|
|
(21
|
)
|
|
|
(74
|
)
|
|
||
Balance, end of year
|
|
$
|
309
|
|
|
|
$
|
328
|
|
|
11.
|
SHAREHOLDERS' EQUITY
|
(In thousands of shares)
|
2014
|
|
2013
|
|
2012
|
Common stock - issued:
|
|
|
|
|
|
Balance, beginning of period
|
667,046
|
|
665,239
|
|
663,639
|
Exercise of stock options and issuance of restricted shares
|
1,086
|
|
1,807
|
|
1,600
|
Balance, end of period
|
668,132
|
|
667,046
|
|
665,239
|
Treasury stock:
|
|
|
|
|
|
Balance, beginning of period
|
207,633
|
|
197,453
|
|
197,329
|
Purchases of treasury stock:
|
|
|
|
|
|
Open market
|
19,660
|
|
13,212
|
|
1,948
|
Other
|
157
|
|
222
|
|
360
|
Dispositions of treasury stock:
|
|
|
|
|
|
Shares issued to AFL Stock Plan
|
(1,251)
|
|
(1,365)
|
|
(1,670)
|
Exercise of stock options
|
(391)
|
|
(1,734)
|
|
(387)
|
Other
|
(121)
|
|
(155)
|
|
(127)
|
Balance, end of period
|
225,687
|
|
207,633
|
|
197,453
|
Shares outstanding, end of period
|
442,445
|
|
459,413
|
|
467,786
|
(In thousands)
|
2014
|
|
2013
|
|
2012
|
|||||||||
Anti-dilutive share-based awards
|
|
1,215
|
|
|
|
|
2,198
|
|
|
|
|
5,880
|
|
|
(In thousands of shares)
|
2014
|
|
2013
|
|
2012
|
|||
Weighted-average outstanding shares used for calculating basic EPS
|
451,204
|
|
|
464,502
|
|
|
466,868
|
|
Dilutive effect of share-based awards
|
2,796
|
|
|
2,906
|
|
|
2,419
|
|
Weighted-average outstanding shares used for calculating diluted EPS
|
454,000
|
|
|
467,408
|
|
|
469,287
|
|
2014
|
|||||||||||||||||||||||||||||
(In millions)
|
Unrealized Foreign
Currency Translation Gains (Losses) |
|
Unrealized
Gains (Losses) on Investment Securities |
|
Unrealized
Gains (Losses) on Derivatives |
|
Pension
Liability Adjustment |
|
Total
|
||||||||||||||||||||
Balance, beginning of period
|
|
$
|
(1,505
|
)
|
|
|
|
$
|
1,035
|
|
|
|
|
$
|
(12
|
)
|
|
|
|
$
|
(81
|
)
|
|
|
|
$
|
(563
|
)
|
|
Other comprehensive
income before reclassification |
|
(1,036
|
)
|
|
|
|
3,672
|
|
|
|
|
(14
|
)
|
|
|
|
(44
|
)
|
|
|
|
2,578
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income |
|
0
|
|
|
|
|
(35
|
)
|
|
|
|
0
|
|
|
|
|
(1
|
)
|
|
|
|
(36
|
)
|
|
|||||
Net current-period other
comprehensive income |
|
(1,036
|
)
|
|
|
|
3,637
|
|
|
|
|
(14
|
)
|
|
|
|
(45
|
)
|
|
|
|
2,542
|
|
|
|||||
Balance, end of period
|
|
$
|
(2,541
|
)
|
|
|
|
$
|
4,672
|
|
|
|
|
$
|
(26
|
)
|
|
|
|
$
|
(126
|
)
|
|
|
|
$
|
1,979
|
|
|
2013
|
|||||||||||||||||||||||||||||
(In millions)
|
Unrealized Foreign
Currency Translation Gains (Losses) |
|
Unrealized
Gains (Losses) on Investment Securities |
|
Unrealized
Gains (Losses) on Derivatives |
|
Pension Liability Adjustment
|
|
Total
|
||||||||||||||||||||
Balance, beginning of period
|
|
$
|
333
|
|
|
|
|
$
|
2,570
|
|
|
|
|
$
|
(5
|
)
|
|
|
|
$
|
(183
|
)
|
|
|
|
$
|
2,715
|
|
|
Other comprehensive
income before
reclassification
|
|
(1,833
|
)
|
|
|
|
(1,499
|
)
|
|
|
|
(7
|
)
|
|
|
|
92
|
|
|
|
|
(3,247
|
)
|
|
|||||
Amounts reclassified from
accumulated other
comprehensive income
|
|
(5
|
)
|
|
|
|
(36
|
)
|
|
|
|
0
|
|
|
|
|
10
|
|
|
|
|
(31
|
)
|
|
|||||
Net current-period other
comprehensive
income
|
|
(1,838
|
)
|
|
|
|
(1,535
|
)
|
|
|
|
(7
|
)
|
|
|
|
102
|
|
|
|
|
(3,278
|
)
|
|
|||||
Balance, end of period
|
|
$
|
(1,505
|
)
|
|
|
|
$
|
1,035
|
|
|
|
|
$
|
(12
|
)
|
|
|
|
$
|
(81
|
)
|
|
|
|
$
|
(563
|
)
|
|
(In millions)
|
2013
|
|
||||
Details about Accumulated Other Comprehensive Income Components
|
Amount Reclassified from Accumulated Other Comprehensive Income
|
Affected Line Item in the
Statements of Earnings |
||||
Unrealized foreign currency translation gains
(losses) |
|
$
|
7
|
|
|
Sales and redemptions
|
|
|
(2
|
)
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
5
|
|
|
Net of tax
|
Unrealized gains (losses) on available-for-sale
securities |
|
$
|
255
|
|
|
Sales and redemptions
|
|
|
(199
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
56
|
|
|
Total before tax
|
|
|
|
(20
|
)
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
36
|
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(19
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
4
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
5
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(10
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
31
|
|
|
Net of tax
|
(In millions, except for per-share amounts)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Impact on earnings from continuing operations
|
|
$
|
41
|
|
|
|
|
$
|
37
|
|
|
|
|
$
|
37
|
|
|
Impact on earnings before income taxes
|
|
41
|
|
|
|
|
37
|
|
|
|
|
37
|
|
|
|||
Impact on net earnings
|
|
28
|
|
|
|
|
25
|
|
|
|
|
26
|
|
|
|||
Impact on net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
.06
|
|
|
|
|
$
|
.05
|
|
|
|
|
$
|
.06
|
|
|
Diluted
|
|
.06
|
|
|
|
|
.05
|
|
|
|
|
.06
|
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
Expected term (years)
|
|
6.3
|
|
|
|
6.6
|
|
|
|
6.5
|
|
Expected volatility
|
|
30.0
|
%
|
|
|
34.0
|
%
|
|
|
38.0
|
%
|
Annual forfeiture rate
|
|
2.7
|
|
|
|
1.6
|
|
|
|
1.6
|
|
Risk-free interest rate
|
|
2.8
|
|
|
|
1.8
|
|
|
|
2.1
|
|
Dividend yield
|
|
2.3
|
|
|
|
2.6
|
|
|
|
1.3
|
|
(In thousands of shares)
|
Stock
Option Shares |
|
Weighted-Average
Exercise Price Per Share |
|||||||
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
|
|
|
|
Granted in 2013
|
|
703
|
|
|
|
|
52.86
|
|
|
|
Canceled in 2013
|
|
(179
|
)
|
|
|
|
44.79
|
|
|
|
Exercised in 2013
|
|
(3,281
|
)
|
|
|
|
40.52
|
|
|
|
Outstanding at December 31, 2013
|
|
9,980
|
|
|
|
|
47.03
|
|
|
|
Granted in 2014
|
|
678
|
|
|
|
|
61.81
|
|
|
|
Canceled in 2014
|
|
(115
|
)
|
|
|
|
52.01
|
|
|
|
Exercised in 2014
|
|
(1,236
|
)
|
|
|
|
41.04
|
|
|
|
Outstanding at December 31, 2014
|
|
9,307
|
|
|
|
|
$
|
48.84
|
|
|
(In thousands of shares)
|
2014
|
|
2013
|
|
2012
|
|||||||||
Shares exercisable, end of year
|
|
7,497
|
|
|
|
|
8,042
|
|
|
|
|
10,635
|
|
|
(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
|
|
-
|
$
|
43.07
|
|
|
|
|
2,028
|
|
|
|
|
3.8
|
|
|
|
$
|
34.46
|
|
|
|
|
1,945
|
|
|
|
|
$
|
34.20
|
|
|
|
43.28
|
|
-
|
47.25
|
|
|
|
|
2,144
|
|
|
|
|
3.1
|
|
|
|
45.93
|
|
|
|
|
2,046
|
|
|
|
|
45.93
|
|
|
||||
|
47.33
|
|
-
|
51.91
|
|
|
|
|
1,883
|
|
|
|
|
5.4
|
|
|
|
48.97
|
|
|
|
|
1,109
|
|
|
|
|
48.86
|
|
|
||||
|
52.14
|
|
-
|
61.81
|
|
|
|
|
2,479
|
|
|
|
|
4.5
|
|
|
|
58.65
|
|
|
|
|
2,296
|
|
|
|
|
58.79
|
|
|
||||
|
61.84
|
|
-
|
67.67
|
|
|
|
|
773
|
|
|
|
|
8.5
|
|
|
|
62.85
|
|
|
|
|
101
|
|
|
|
|
64.63
|
|
|
||||
|
$
|
14.99
|
|
-
|
$
|
67.67
|
|
|
|
|
9,307
|
|
|
|
|
4.5
|
|
|
|
$
|
48.84
|
|
|
|
|
7,497
|
|
|
|
|
$
|
47.51
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Total intrinsic value of options exercised
|
|
$
|
25
|
|
|
|
|
$
|
66
|
|
|
|
|
$
|
41
|
|
|
Cash received from options exercised
|
|
39
|
|
|
|
|
113
|
|
|
|
|
35
|
|
|
|||
Tax benefit realized as a result of options exercised and
restricted stock releases |
|
17
|
|
|
|
|
30
|
|
|
|
|
24
|
|
|
(In thousands of shares)
|
Shares
|
|
Weighted-Average
Grant-Date Fair Value Per Share |
|||||||
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
|
|
|
|
Granted in 2013
|
|
782
|
|
|
|
|
52.77
|
|
|
|
Canceled in 2013
|
|
(56
|
)
|
|
|
|
48.63
|
|
|
|
Vested in 2013
|
|
(418
|
)
|
|
|
|
47.49
|
|
|
|
Restricted stock at December 31, 2013
|
|
1,671
|
|
|
|
|
52.12
|
|
|
|
Granted in 2014
|
|
584
|
|
|
|
|
62.12
|
|
|
|
Canceled in 2014
|
|
(27
|
)
|
|
|
|
52.66
|
|
|
|
Vested in 2014
|
|
(348
|
)
|
|
|
|
56.95
|
|
|
|
Restricted stock at December 31, 2014
|
|
1,880
|
|
|
|
|
$
|
54.33
|
|
|
•
|
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
$35 million
as of
December 31, 2013
. In June 2014, the guaranteed separate account funding agreements were settled and at that time, Aflac's separate account assets were transferred to the general account.
|
(In millions)
|
2014
|
|
2013
|
||||||||
Capital and surplus, Nebraska state basis
|
|
$
|
10,839
|
|
|
|
|
$
|
9,630
|
|
|
State Permitted Practice:
|
|
|
|
|
|
|
|
||||
Refundable lease deposits – Japan
|
|
(36
|
)
|
|
|
|
(41
|
)
|
|
||
Separate Account Funding Agreements
|
|
0
|
|
|
|
|
35
|
|
|
||
Capital and surplus, NAIC basis
|
|
$
|
10,803
|
|
|
|
|
$
|
9,624
|
|
|
|
In Dollars
|
|
In Yen
|
|||||||||||||||||||||||||||||
(In millions of dollars and billions of yen)
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||||
Profit repatriation
|
|
$
|
1,704
|
|
|
|
|
$
|
771
|
|
|
|
|
$
|
422
|
|
|
|
|
181.4
|
|
|
|
|
76.8
|
|
|
|
|
33.1
|
|
|
|
|
Pension Benefits
|
|
Other
|
|||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
|||||||||||||||||||||||||||
(In millions)
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
2013
|
||||||||||||||||||||||||
Projected benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation, beginning of year
|
|
|
$
|
270
|
|
|
|
$
|
313
|
|
|
|
|
$
|
601
|
|
|
|
$
|
613
|
|
|
|
|
$
|
46
|
|
|
|
$
|
98
|
|
|
Service cost
|
|
|
15
|
|
|
|
16
|
|
|
|
|
20
|
|
|
|
22
|
|
|
|
|
1
|
|
|
|
5
|
|
|
||||||
Interest cost
|
|
|
9
|
|
|
|
10
|
|
|
|
|
38
|
|
|
|
23
|
|
|
|
|
2
|
|
|
|
3
|
|
|
||||||
Plan amendments
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
(4
|
)
|
|
|
|
0
|
|
|
|
(51
|
)
|
|
||||||
Actuarial (gain) loss
|
|
|
21
|
|
|
|
(3
|
)
|
|
|
|
74
|
|
|
|
(37
|
)
|
|
|
|
(3
|
)
|
|
|
(7
|
)
|
|
||||||
Benefits and expenses paid
|
|
|
(9
|
)
|
|
|
(8
|
)
|
|
|
|
(16
|
)
|
|
|
(16
|
)
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
||||||
Effect of foreign exchange
rate changes |
|
|
(39
|
)
|
|
|
(58
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Benefit obligation, end of year
|
|
|
267
|
|
|
|
270
|
|
|
|
|
717
|
|
|
|
601
|
|
|
|
|
44
|
|
|
|
46
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets,
beginning of year |
|
|
182
|
|
|
|
187
|
|
|
|
|
313
|
|
|
|
261
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Actual return on plan assets
|
|
|
12
|
|
|
|
13
|
|
|
|
|
26
|
|
|
|
39
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Employer contributions
|
|
|
24
|
|
|
|
26
|
|
|
|
|
18
|
|
|
|
29
|
|
|
|
|
2
|
|
|
|
2
|
|
|
||||||
Benefits and expenses paid
|
|
|
(9
|
)
|
|
|
(8
|
)
|
|
|
|
(16
|
)
|
|
|
(16
|
)
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
||||||
Effect of foreign exchange
rate changes |
|
|
(26
|
)
|
|
|
(36
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Fair value of plan assets, end of year
|
|
|
183
|
|
|
|
182
|
|
|
|
|
341
|
|
|
|
313
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Funded status of the plans
(1)
|
|
|
$
|
(84
|
)
|
|
|
$
|
(88
|
)
|
|
|
|
$
|
(376
|
)
|
|
|
$
|
(288
|
)
|
|
|
|
$
|
(44
|
)
|
|
|
$
|
(46
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in accumulated other
comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial (gain) loss
|
|
|
$
|
40
|
|
|
|
$
|
33
|
|
|
|
|
$
|
167
|
|
|
|
$
|
111
|
|
|
|
|
$
|
19
|
|
|
|
$
|
25
|
|
|
Prior service (credit) cost
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
|
|
(28
|
)
|
|
|
(45
|
)
|
|
||||||
Transition obligation
|
|
|
0
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Total included in accumulated
other comprehensive income |
|
|
$
|
38
|
|
|
|
$
|
32
|
|
|
|
|
$
|
163
|
|
|
|
$
|
107
|
|
|
|
|
$
|
(9
|
)
|
|
|
$
|
(20
|
)
|
|
Accumulated benefit obligation
|
|
|
$
|
235
|
|
|
|
$
|
239
|
|
|
|
|
$
|
611
|
|
|
|
$
|
514
|
|
|
|
|
N/A
|
|
(2)
|
|
N/A
|
|
(2)
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||
|
Japan
|
|
|
U.S.
|
|
|
Postretirement Benefits
|
||||||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
|
2014
|
|
2013
|
|
2012
|
|
|
2014
|
|
2013
|
|
2012
|
|
|||||||||
Weighted-average actuarial assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Discount rate - net periodic benefit cost
|
2.25
|
%
|
|
2.25
|
%
|
|
2.25
|
%
|
|
|
4.75
|
%
|
|
4.25
|
%
|
|
4.75
|
%
|
|
|
4.75
|
%
|
|
4.25
|
%
|
|
4.75
|
%
|
|
Discount rate - benefit obligations
|
1.75
|
|
|
2.25
|
|
|
2.25
|
|
|
|
4.50
|
|
|
4.75
|
|
|
4.25
|
|
|
|
4.50
|
|
|
4.75
|
|
|
4.25
|
|
|
Expected long-term return on plan assets
|
2.00
|
|
|
2.00
|
|
|
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)
|
6.40
|
|
(2)
|
5.70
|
|
(2)
|
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
Japan
|
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||||||||||||||||||
(In millions)
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||||||||||||||||||||
Service cost
|
|
|
$
|
15
|
|
|
|
|
$
|
16
|
|
|
|
|
$
|
18
|
|
|
|
|
$
|
20
|
|
|
|
|
$
|
22
|
|
|
|
|
$
|
18
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
5
|
|
|
|
|
$
|
6
|
|
|
Interest cost
|
|
|
9
|
|
|
|
|
10
|
|
|
|
|
7
|
|
|
|
|
38
|
|
|
|
|
23
|
|
|
|
|
24
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
4
|
|
|
|||||||||
Expected return on plan
assets |
|
|
(4
|
)
|
|
|
|
(3
|
)
|
|
|
|
(4
|
)
|
|
|
|
(20
|
)
|
|
|
|
(17
|
)
|
|
|
|
(16
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||||||||
Amortization of net actuarial
loss |
|
|
1
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
11
|
|
|
|
|
15
|
|
|
|
|
11
|
|
|
|
|
3
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|||||||||
Amortization of prior service
cost (credit) |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(17
|
)
|
|
|
|
(4
|
)
|
|
|
|
0
|
|
|
|||||||||
Net periodic (benefit) cost
|
|
|
$
|
21
|
|
|
|
|
$
|
25
|
|
|
|
|
$
|
24
|
|
|
|
|
$
|
49
|
|
|
|
|
$
|
43
|
|
|
|
|
$
|
37
|
|
|
|
|
$
|
(11
|
)
|
|
|
|
$
|
6
|
|
|
|
|
$
|
11
|
|
|
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||||||||||||||||||||
(In millions)
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain)
|
|
|
$
|
12
|
|
|
|
|
$
|
(14
|
)
|
|
|
|
$
|
(10
|
)
|
|
|
|
$
|
67
|
|
|
|
|
$
|
(59
|
)
|
|
|
|
$
|
45
|
|
|
|
|
$
|
(3
|
)
|
|
|
|
$
|
(7
|
)
|
|
|
|
$
|
5
|
|
|
Amortization of net actuarial loss
|
|
|
(1
|
)
|
|
|
|
(2
|
)
|
|
|
|
(3
|
)
|
|
|
|
(11
|
)
|
|
|
|
(15
|
)
|
|
|
|
(11
|
)
|
|
|
|
(3
|
)
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
|||||||||
Prior service cost (credit)
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(4
|
)
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
(51
|
)
|
|
|
|
2
|
|
|
|||||||||
Amortization of prior
service cost |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
17
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|||||||||
Total
|
|
|
$
|
11
|
|
|
|
|
$
|
(16
|
)
|
|
|
|
$
|
(13
|
)
|
|
|
|
$
|
56
|
|
|
|
|
$
|
(78
|
)
|
|
|
|
$
|
33
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
(56
|
)
|
|
|
|
$
|
6
|
|
|
|
|
Pension Benefits
|
|
Other
|
|||||||||||||
(In millions)
|
|
Japan
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||
2015
|
|
|
$
|
7
|
|
|
|
$
|
20
|
|
|
|
|
$
|
2
|
|
|
2016
|
|
|
11
|
|
|
|
21
|
|
|
|
|
2
|
|
|
|||
2017
|
|
|
8
|
|
|
|
28
|
|
|
|
|
3
|
|
|
|||
2018
|
|
|
7
|
|
|
|
26
|
|
|
|
|
3
|
|
|
|||
2019
|
|
|
9
|
|
|
|
27
|
|
|
|
|
4
|
|
|
|||
2020-2024
|
|
|
63
|
|
|
|
159
|
|
|
|
|
22
|
|
|
|
|
Japan Pension
|
|
U.S. Pension
|
||||||
Domestic equities
|
|
|
0
|
%
|
|
|
|
40
|
%
|
|
International equities
|
|
|
15
|
|
|
|
|
20
|
|
|
Fixed income securities
|
|
|
70
|
|
|
|
|
40
|
|
|
Other
|
|
|
15
|
|
|
|
|
0
|
|
|
Total
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
(In millions)
|
2014
|
|
2013
|
||||||||
Japan pension plan assets:
|
|
|
|
|
|
|
|
||||
International equity securities
|
|
$
|
34
|
|
|
|
|
$
|
34
|
|
|
Fixed income securities:
|
|
|
|
|
|
|
|
||||
Japanese bonds
|
|
72
|
|
|
|
|
60
|
|
|
||
International bonds
|
|
44
|
|
|
|
|
43
|
|
|
||
Mutual funds
|
|
0
|
|
|
|
|
21
|
|
|
||
Insurance contracts
|
|
22
|
|
|
|
|
24
|
|
|
||
Cash and cash equivalents
|
|
11
|
|
|
|
|
0
|
|
|
||
Total
|
|
$
|
183
|
|
|
|
|
$
|
182
|
|
|
(In millions)
|
2014
|
|
2013
|
||||||||
U.S. pension plan assets:
|
|
|
|
|
|
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
||||
Large cap equity funds
|
|
$
|
116
|
|
|
|
|
$
|
110
|
|
|
Mid cap equity funds
|
|
14
|
|
|
|
|
19
|
|
|
||
Real estate equity funds
|
|
10
|
|
|
|
|
9
|
|
|
||
International equity funds
|
|
61
|
|
|
|
|
68
|
|
|
||
Fixed income bond funds
|
|
136
|
|
|
|
|
103
|
|
|
||
Aflac Incorporated common stock
|
|
4
|
|
|
|
|
4
|
|
|
||
Total
|
|
$
|
341
|
|
|
|
|
$
|
313
|
|
|
(In millions)
|
|
||
2015
|
$
|
55
|
|
2016
|
29
|
|
|
2017
|
19
|
|
|
2018
|
11
|
|
|
2019
|
7
|
|
|
Thereafter
|
8
|
|
|
Total future minimum lease payments
|
$
|
129
|
|
(In millions, except for per-share amounts)
|
March 31,
2014 |
|
June 30,
2014 |
|
September 30,
2014 |
|
December 31,
2014 |
||||||||||||||||
Net premium income
|
|
$
|
4,854
|
|
|
|
|
$
|
4,888
|
|
|
|
|
$
|
4,841
|
|
|
|
|
$
|
4,489
|
|
|
Net investment income
|
|
827
|
|
|
|
|
843
|
|
|
|
|
841
|
|
|
|
|
808
|
|
|
||||
Realized investment gains (losses)
|
|
(46
|
)
|
|
|
|
102
|
|
|
|
|
16
|
|
|
|
|
143
|
|
|
||||
Other income
|
|
5
|
|
|
|
|
5
|
|
|
|
|
38
|
|
|
|
|
74
|
|
|
||||
Total revenues
|
|
5,640
|
|
|
|
|
5,838
|
|
|
|
|
5,736
|
|
|
|
|
5,514
|
|
|
||||
Total benefits and expenses
|
|
4,536
|
|
|
|
|
4,600
|
|
|
|
|
4,662
|
|
|
|
|
4,439
|
|
|
||||
Earnings before income taxes
|
|
1,104
|
|
|
|
|
1,238
|
|
|
|
|
1,074
|
|
|
|
|
1,075
|
|
|
||||
Total income tax
|
|
372
|
|
|
|
|
428
|
|
|
|
|
368
|
|
|
|
|
372
|
|
|
||||
Net earnings
|
|
$
|
732
|
|
|
|
|
$
|
810
|
|
|
|
|
$
|
706
|
|
|
|
|
$
|
703
|
|
|
Net earnings per basic share
|
|
$
|
1.61
|
|
|
|
|
$
|
1.79
|
|
|
|
|
$
|
1.56
|
|
|
|
|
$
|
1.57
|
|
|
Net earnings per diluted share
|
|
1.60
|
|
|
|
|
1.78
|
|
|
|
|
1.56
|
|
|
|
|
1.57
|
|
|
||||
Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding.
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(In millions, except for per-share amounts)
|
March 31,
2013 |
|
June 30,
2013 |
|
September 30,
2013 |
|
December 31,
2013 |
||||||||||||||||
Net premium income
|
|
$
|
5,184
|
|
|
|
|
$
|
5,013
|
|
|
|
|
$
|
5,028
|
|
|
|
|
$
|
4,910
|
|
|
Net investment income
|
|
833
|
|
|
|
|
813
|
|
|
|
|
821
|
|
|
|
|
826
|
|
|
||||
Realized investment gains (losses)
|
|
156
|
|
|
|
|
201
|
|
|
|
|
22
|
|
|
|
|
20
|
|
|
||||
Other income
|
|
35
|
|
|
|
|
17
|
|
|
|
|
15
|
|
|
|
|
45
|
|
|
||||
Total revenues
|
|
6,208
|
|
|
|
|
6,044
|
|
|
|
|
5,886
|
|
|
|
|
5,801
|
|
|
||||
Total benefits and expenses
|
|
4,847
|
|
|
|
|
4,686
|
|
|
|
|
4,817
|
|
|
|
|
4,773
|
|
|
||||
Earnings before income taxes
|
|
1,361
|
|
|
|
|
1,358
|
|
|
|
|
1,069
|
|
|
|
|
1,028
|
|
|
||||
Total income tax
|
|
469
|
|
|
|
|
469
|
|
|
|
|
367
|
|
|
|
|
353
|
|
|
||||
Net earnings
|
|
$
|
892
|
|
|
|
|
$
|
889
|
|
|
|
|
$
|
702
|
|
|
|
|
$
|
675
|
|
|
Net earnings per basic share
|
|
$
|
1.91
|
|
|
|
|
$
|
1.91
|
|
|
|
|
$
|
1.51
|
|
|
|
|
$
|
1.46
|
|
|
Net earnings per diluted share
|
|
1.90
|
|
|
|
|
1.90
|
|
|
|
|
1.50
|
|
|
|
|
1.45
|
|
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
Director Compensation; The Compensation Committee; Compensation Committee Report; Compensation Discussion and Analysis; 2014 Summary Compensation Table; 2014 Grants of Plan-Based Awards; 2014 Outstanding Equity Awards at Fiscal Year-End; 2014 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; Election of Directors (Proposal 1); 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
|
Ratification of Appointment of Independent Registered Public Accounting Firm (Proposal 3); 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
|
|
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
|
-
|
|
Eighth Supplemental Indenture, dated as of June 10, 2013, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 3.625% Senior Note due 2023) - incorporated by reference from Form 8-K dated June 10, 2013, Exhibit 4.1 (File No. 001-07434).
|
|
4.10
|
-
|
|
Ninth Supplemental Indenture, dated as of November 7, 2014, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 3.625% Senior Note due 2024) - incorporated by reference from Form 8-K dated November 7, 2014, Exhibit 4.1 (File No. 001-07434)
|
|
4.11
|
-
|
|
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).
|
|
4.12
|
-
|
|
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 – incorporated by reference from 2012 Form 10-K, Exhibit 10.3 (File No. 001-07434).
|
|
10.4*
|
-
|
|
Second Amendment to the Aflac Incorporated Supplemental Executive Retirement Plan, as amended and restated January 1, 2009
|
|
10.5*
|
-
|
|
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).
|
|
10.6*
|
-
|
|
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).
|
|
10.7*
|
-
|
|
Second Amendment to the Aflac Incorporated Executive Deferred Compensation Plan dated June 1, 2009 - incorporated by reference from Form 10-Q for March 31, 2014, Exhibit 10.6 (File No. 001-07434).
|
|
10.8*
|
-
|
|
Third Amendment to the Aflac Incorporated Executive Deferred Compensation Plan effective
July 1, 2014 - incorporated by reference from Form 10-Q for September 30, 2014, Exhibit 10.7 (File No. 001-07434).
|
|
10.9*
|
-
|
|
Aflac Incorporated Amended and Restated 2009 Management Incentive Plan – incorporated by reference from the 2008 Shareholders’ Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.10*
|
-
|
|
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).
|
|
10.11*
|
-
|
|
Aflac Incorporated 2013 Management Incentive Plan - incorporated by reference from the 2012 Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.12*
|
-
|
|
1999 Aflac Associate Stock Bonus Plan, amended and restated as of January 1, 2013 - incorporated by reference from Form 10-Q for March 31, 2013, Exhibit 10.10 (File No. 001-07434).
|
|
10.13*
|
-
|
|
Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from the 1997 Shareholders’ Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.14*
|
-
|
|
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).
|
|
10.15*
|
-
|
|
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).
|
|
10.16*
|
-
|
|
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).
|
|
10.17*
|
-
|
|
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).
|
|
10.18*
|
-
|
|
Form of Non-Employee Director Stock Option Agreement (NQSO) under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.16 (File No. 001-07434).
|
|
10.19*
|
-
|
|
Notice of grant of stock options to non-employee director under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.17 (File No. 001-07434).
|
|
10.20*
|
-
|
|
Form of Non-Employee Director Restricted Stock Award Agreement under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.18 (File No. 001-07434).
|
|
10.21*
|
-
|
|
Notice of restricted stock award to non-employee director under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.19 (File No. 001-07434).
|
|
10.22*
|
-
|
|
U.S. Form of Officer Restricted Stock Award Agreement under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.20 (File No. 001-07434).
|
|
10.23*
|
-
|
|
Japan Form of Officer Restricted Stock Award Agreement under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.21 (File No. 001-07434).
|
|
10.24*
|
-
|
|
Notice of time based restricted stock award to officers under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.22 (File No. 001-07434).
|
|
10.25*
|
-
|
|
Notice of performance based restricted stock award to officers under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.23 (File No. 001-07434).
|
|
10.26*
|
-
|
|
U.S. Form of Officer Stock Option Agreement (Non-Qualifying Stock Option) under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.24 (File No. 001-07434).
|
|
10.27*
|
-
|
|
Japan Form of Officer Stock Option Agreement (Non-Qualifying Stock Option) under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.25 (File No. 001-07434).
|
|
10.28*
|
-
|
|
U.S. Form of Officer Stock Option Agreement (Incentive Stock Option) under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.26 (File No. 001-07434).
|
|
10.29*
|
-
|
|
Japan Form of Officer Stock Option Agreement (Incentive Stock Option) under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.27 (File No. 001-07434).
|
|
10.30*
|
-
|
|
U.S. Notice of grant of stock options to officers under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.28 (File No. 001-07434).
|
|
10.31*
|
-
|
|
Japan Notice of grant of stock options to officers under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from Form 10-Q for June 30, 2013, Exhibit 10.29 (File No. 001-07434).
|
|
10.32*
|
-
|
|
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).
|
|
10.33*
|
-
|
|
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).
|
|
10.34*
|
-
|
|
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).
|
|
10.35*
|
-
|
|
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).
|
|
10.36*
|
-
|
|
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).
|
|
10.37*
|
-
|
|
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).
|
|
10.38*
|
-
|
|
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).
|
|
10.39*
|
-
|
|
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).
|
|
10.40*
|
-
|
|
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).
|
|
10.41*
|
-
|
|
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).
|
|
10.42*
|
-
|
|
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).
|
|
10.43*
|
-
|
|
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).
|
|
10.44*
|
-
|
|
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).
|
|
10.45*
|
-
|
|
Amendment to Aflac Incorporated Employment Agreement with Tohru Tonoike, dated October 8, 2012 – incorporated by reference from 2012 Form 10-K, Exhibit 10.40 (File No. 001-07434).
|
|
10.46*
|
-
|
|
Aflac Incorporated Employment Agreement with Eric Kirsch, effective November 1, 2011 - incorporated by reference from Form 10-Q for March 31, 2014, Exhibit 10.47 (File No. 001-07434).
|
(c)
|
FINANCIAL STATEMENT SCHEDULES
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividends from subsidiaries
(1)
|
|
$
|
1,483
|
|
|
|
|
$
|
962
|
|
|
|
|
$
|
0
|
|
|
Management and service fees from subsidiaries
(1)
|
|
272
|
|
|
|
|
292
|
|
|
|
|
249
|
|
|
|||
Net investment income
|
|
13
|
|
|
|
|
11
|
|
|
|
|
20
|
|
|
|||
Interest from subsidiaries
(1)
|
|
6
|
|
|
|
|
7
|
|
|
|
|
7
|
|
|
|||
Realized investment gains (losses)
|
|
45
|
|
|
|
|
10
|
|
|
|
|
1
|
|
|
|||
Change in fair value of the cross-currency interest rate swaps
|
|
314
|
|
|
|
|
274
|
|
|
|
|
154
|
|
|
|||
Other income (loss)
|
|
(11
|
)
|
|
|
|
1
|
|
|
|
|
(7
|
)
|
|
|||
Total revenues
|
|
2,122
|
|
|
|
|
1,557
|
|
|
|
|
424
|
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense
|
|
243
|
|
|
|
|
208
|
|
|
|
|
184
|
|
|
|||
Other operating expenses
|
|
88
|
|
|
|
|
79
|
|
|
|
|
72
|
|
|
|||
Total operating expenses
|
|
331
|
|
|
|
|
287
|
|
|
|
|
256
|
|
|
|||
Earnings before income taxes and equity in undistributed earnings of
subsidiaries |
|
1,791
|
|
|
|
|
1,270
|
|
|
|
|
168
|
|
|
|||
Income tax expense (benefit):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
1
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|||
Deferred
|
|
120
|
|
|
|
|
98
|
|
|
|
|
50
|
|
|
|||
Total income taxes
|
|
121
|
|
|
|
|
98
|
|
|
|
|
51
|
|
|
|||
Earnings before equity in undistributed earnings of subsidiaries
|
|
1,670
|
|
|
|
|
1,172
|
|
|
|
|
117
|
|
|
|||
Equity in undistributed earnings of subsidiaries
(1)
|
|
1,281
|
|
|
|
|
1,986
|
|
|
|
|
2,749
|
|
|
|||
Net earnings
|
|
$
|
2,951
|
|
|
|
|
$
|
3,158
|
|
|
|
|
$
|
2,866
|
|
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Net earnings
|
|
$
|
2,951
|
|
|
|
|
$
|
3,158
|
|
|
|
|
$
|
2,866
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses)
during period - parent only |
|
39
|
|
|
|
|
48
|
|
|
|
|
95
|
|
|
|||
Equity in unrealized foreign currency translation gains (losses) of
subsidiaries during period |
|
(1,494
|
)
|
|
|
|
(1,636
|
)
|
|
|
|
(382
|
)
|
|
|||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on investment securities
during period - parent only |
|
9
|
|
|
|
|
(12
|
)
|
|
|
|
15
|
|
|
|||
Equity in unrealized holding gains (losses) on investment securities
held by subsidiaries during period |
|
5,938
|
|
|
|
|
(2,350
|
)
|
|
|
|
1,645
|
|
|
|||
Equity in reclassification adjustment for realized (gains) losses of
subsidiaries included in net earnings |
|
(54
|
)
|
|
|
|
(56
|
)
|
|
|
|
497
|
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
(17
|
)
|
|
|
|
(10
|
)
|
|
|
|
(22
|
)
|
|
|||
Pension liability adjustment during period
|
|
(76
|
)
|
|
|
|
157
|
|
|
|
|
(20
|
)
|
|
|||
Total other comprehensive income (loss) before
income taxes |
|
4,345
|
|
|
|
|
(3,859
|
)
|
|
|
|
1,828
|
|
|
|||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
1,803
|
|
|
|
|
(581
|
)
|
|
|
|
1,078
|
|
|
|||
Other comprehensive income (loss), net of income taxes
|
|
2,542
|
|
|
|
|
(3,278
|
)
|
|
|
|
750
|
|
|
|||
Total comprehensive income (loss)
|
|
$
|
5,493
|
|
|
|
|
$
|
(120
|
)
|
|
|
|
$
|
3,616
|
|
|
|
December 31,
|
||||||||||
(In millions, except for share and per-share amounts)
|
2014
|
|
2013
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
|
|
|
||||
Fixed maturity securities available for sale, at fair value
(amortized cost $419 in 2014 and $322 in 2013) |
|
$
|
437
|
|
|
|
|
$
|
332
|
|
|
Investments in subsidiaries
(1)
|
|
21,430
|
|
|
|
|
17,678
|
|
|
||
Other investments
|
|
24
|
|
|
|
|
313
|
|
|
||
Cash and cash equivalents
|
|
1,638
|
|
|
|
|
1,081
|
|
|
||
Total investments and cash
|
|
23,529
|
|
|
|
|
19,404
|
|
|
||
Due from subsidiaries
(1)
|
|
116
|
|
|
|
|
128
|
|
|
||
Other assets
|
|
766
|
|
|
|
|
464
|
|
|
||
Total assets
|
|
$
|
24,411
|
|
|
|
|
$
|
19,996
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||
Income taxes
|
|
$
|
6
|
|
|
|
|
$
|
(120
|
)
|
|
Employee benefit plans
|
|
282
|
|
|
|
|
246
|
|
|
||
Notes payable
|
|
5,285
|
|
|
|
|
4,910
|
|
|
||
Other liabilities
|
|
491
|
|
|
|
|
340
|
|
|
||
Total liabilities
|
|
6,064
|
|
|
|
|
5,376
|
|
|
||
Shareholders' equity:
|
|
|
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in
2014 and 2013; issued 668,132 shares in 2014 and 667,046 shares in 2013 |
|
67
|
|
|
|
|
67
|
|
|
||
Additional paid-in capital
|
|
1,711
|
|
|
|
|
1,644
|
|
|
||
Retained earnings
|
|
22,156
|
|
|
|
|
19,885
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Unrealized foreign currency translation gains
|
|
(2,541
|
)
|
|
|
|
(1,505
|
)
|
|
||
Unrealized gains (losses) on investment securities
|
|
4,672
|
|
|
|
|
1,035
|
|
|
||
Unrealized gains (losses) on derivatives
|
|
(26
|
)
|
|
|
|
(12
|
)
|
|
||
Pension liability adjustment
|
|
(126
|
)
|
|
|
|
(81
|
)
|
|
||
Treasury stock, at average cost
|
|
(7,566
|
)
|
|
|
|
(6,413
|
)
|
|
||
Total shareholders' equity
|
|
18,347
|
|
|
|
|
14,620
|
|
|
||
Total liabilities and shareholders' equity
|
|
$
|
24,411
|
|
|
|
|
$
|
19,996
|
|
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings
|
|
$
|
2,951
|
|
|
|
|
$
|
3,158
|
|
|
|
|
$
|
2,866
|
|
|
Adjustments to reconcile net earnings to net cash provided from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity in undistributed earnings of subsidiaries
(1)
|
|
(1,281
|
)
|
|
|
|
(1,986
|
)
|
|
|
|
(2,749
|
)
|
|
|||
Change in income tax liabilities
|
|
115
|
|
|
|
|
155
|
|
|
|
|
111
|
|
|
|||
Other, net
|
|
(72
|
)
|
|
|
|
11
|
|
|
|
|
(242
|
)
|
|
|||
Net cash provided (used) by operating activities
|
|
1,713
|
|
|
|
|
1,338
|
|
|
|
|
(14
|
)
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities sold
|
|
38
|
|
|
|
|
8
|
|
|
|
|
13
|
|
|
|||
Fixed maturity securities purchased
|
|
(105
|
)
|
|
|
|
(206
|
)
|
|
|
|
(26
|
)
|
|
|||
Other investments sold (purchased)
|
|
290
|
|
|
|
|
(298
|
)
|
|
|
|
(3
|
)
|
|
|||
Net cash provided (used) by investing activities
|
|
223
|
|
|
|
|
(496
|
)
|
|
|
|
(16
|
)
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of treasury stock
|
|
(1,210
|
)
|
|
|
|
(813
|
)
|
|
|
|
(118
|
)
|
|
|||
Proceeds from borrowings
|
|
750
|
|
|
|
|
700
|
|
|
|
|
1,506
|
|
|
|||
Principal payments under debt obligations
|
|
(335
|
)
|
|
|
|
0
|
|
|
|
|
(380
|
)
|
|
|||
Dividends paid to shareholders
|
|
(654
|
)
|
|
|
|
(635
|
)
|
|
|
|
(603
|
)
|
|
|||
Treasury stock reissued
|
|
33
|
|
|
|
|
88
|
|
|
|
|
70
|
|
|
|||
Proceeds from exercise of stock options
|
|
23
|
|
|
|
|
41
|
|
|
|
|
21
|
|
|
|||
Net change in amount due to/from subsidiaries
(1)
|
|
14
|
|
|
|
|
28
|
|
|
|
|
(21
|
)
|
|
|||
Net cash provided (used) by financing activities
|
|
(1,379
|
)
|
|
|
|
(591
|
)
|
|
|
|
475
|
|
|
|||
Net change in cash and cash equivalents
|
|
557
|
|
|
|
|
251
|
|
|
|
|
445
|
|
|
|||
Cash and cash equivalents, beginning of period
|
|
1,081
|
|
|
|
|
830
|
|
|
|
|
385
|
|
|
|||
Cash and cash equivalents, end of period
|
|
$
|
1,638
|
|
|
|
|
$
|
1,081
|
|
|
|
|
$
|
830
|
|
|
(In millions)
|
2014
|
|
2013
|
|
||||||||
3.45% senior notes due August 2015
|
|
$
|
300
|
|
|
|
|
$
|
300
|
|
|
|
2.65% senior notes due February 2017
|
|
653
|
|
(1)
|
|
|
655
|
|
(1)
|
|
||
8.50% senior notes due May 2019
|
|
850
|
|
|
|
|
850
|
|
|
|
||
4.00% senior notes due February 2022
|
|
350
|
|
(2)
|
|
|
349
|
|
(2)
|
|
||
3.625% senior notes due June 2023
|
|
700
|
|
|
|
|
700
|
|
|
|
||
3.625% senior notes due November 2024
|
|
749
|
|
|
|
|
0
|
|
|
|
||
6.90% senior notes due December 2039
|
|
397
|
|
(2)
|
|
|
396
|
|
(2)
|
|
||
6.45% senior notes due August 2040
|
|
448
|
|
(2)
|
|
|
448
|
|
(2)
|
|
||
5.50% subordinated debentures due September 2052
|
|
500
|
|
|
|
|
500
|
|
|
|
||
Yen-denominated Uridashi notes:
|
|
|
|
|
|
|
|
|
||||
2.26% notes due September 2016 (principal amount 10 billion yen)
|
|
83
|
|
|
|
|
95
|
|
|
|
||
Yen-denominated Samurai notes:
|
|
|
|
|
|
|
|
|
||||
1.47% notes paid July 2014 (principal amount 28.7 billion yen)
|
|
0
|
|
|
|
|
272
|
|
|
|
||
1.84% notes due July 2016 (principal amount 15.8 billion yen)
|
|
131
|
|
|
|
|
150
|
|
|
|
||
Variable interest rate notes paid July 2014 (1.30% in 2013, principal amount
5.5 billion yen) |
|
0
|
|
|
|
|
52
|
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
|
|
|
|
||||
3.60% loan due July 2015 (principal amount 10 billion yen)
|
|
83
|
|
|
|
|
95
|
|
|
|
||
3.00% loan due August 2015 (principal amount 5 billion yen)
|
|
41
|
|
|
|
|
48
|
|
|
|
||
Total notes payable
|
|
$
|
5,285
|
|
|
|
|
$
|
4,910
|
|
|
|
(In millions)
|
2014
|
|
2013
|
|
2012
|
||||||||||||
Interest paid
|
|
$
|
241
|
|
|
|
|
$
|
205
|
|
|
|
|
$
|
181
|
|
|
Noncash financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Treasury stock issued for shareholder dividend reinvestment
|
|
26
|
|
|
|
|
25
|
|
|
|
|
25
|
|
|
(In millions)
|
Deferred Policy
Acquisition Costs |
|
Future Policy
Benefits & Unpaid Policy Claims |
|
Unearned
Premiums |
|
Other
Policyholders' Funds |
||||||||||||||||
2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
|
|
$
|
5,211
|
|
|
|
|
$
|
60,036
|
|
|
|
|
$
|
8,509
|
|
|
|
|
$
|
6,030
|
|
|
Aflac U.S.
|
|
3,062
|
|
|
|
|
9,239
|
|
|
|
|
117
|
|
|
|
|
0
|
|
|
||||
All other
|
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||
Total
|
|
$
|
8,273
|
|
|
|
|
$
|
69,276
|
|
|
|
|
$
|
8,626
|
|
|
|
|
$
|
6,031
|
|
|
2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
|
|
$
|
5,819
|
|
|
|
|
$
|
64,122
|
|
|
|
|
$
|
10,520
|
|
|
|
|
$
|
5,660
|
|
|
Aflac U.S.
|
|
2,979
|
|
|
|
|
8,775
|
|
|
|
|
122
|
|
|
|
|
201
|
|
|
||||
All other
|
|
0
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total
|
|
$
|
8,798
|
|
|
|
|
$
|
72,899
|
|
|
|
|
$
|
10,642
|
|
|
|
|
$
|
5,861
|
|
|
(In millions)
|
Net
Premium Revenue |
|
Net
Investment Income |
|
Benefits and
Claims, net |
|
Amortization of
Deferred Policy Acquisition Costs |
|
Other
Operating Expenses |
|
Premiums
Written |
||||||||||||||||||||
2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aflac Japan
|
$
|
13,861
|
|
|
|
$
|
2,662
|
|
|
|
|
$
|
10,084
|
|
|
|
|
$
|
649
|
|
|
|
|
$
|
2,364
|
|
|
|
$
|
13,352
|
|
Aflac U.S.
|
5,211
|
|
|
|
645
|
|
|
|
|
2,853
|
|
|
|
|
459
|
|
|
|
|
1,474
|
|
|
|
5,198
|
|
||||||
All other
|
0
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
354
|
|
|
|
0
|
|
||||||
Total
|
$
|
19,072
|
|
|
|
$
|
3,319
|
|
|
|
|
$
|
12,937
|
|
|
|
|
$
|
1,108
|
|
|
|
|
$
|
4,192
|
|
|
|
$
|
18,550
|
|
2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aflac Japan
|
$
|
14,982
|
|
|
|
$
|
2,651
|
|
|
|
|
$
|
10,924
|
|
|
|
|
$
|
641
|
|
|
|
|
$
|
2,495
|
|
|
|
$
|
15,960
|
|
Aflac U.S.
|
5,153
|
|
|
|
632
|
|
|
|
|
2,889
|
|
|
|
|
433
|
|
|
|
|
1,431
|
|
|
|
5,144
|
|
||||||
All other
|
0
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
310
|
|
|
|
0
|
|
||||||
Total
|
$
|
20,135
|
|
|
|
$
|
3,293
|
|
|
|
|
$
|
13,813
|
|
|
|
|
$
|
1,074
|
|
|
|
|
$
|
4,236
|
|
|
|
$
|
21,104
|
|
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
|
|
(In millions)
|
Gross
Amount |
|
Ceded to
Other Companies |
|
Assumed
from Other companies |
|
Net
Amount |
|
Percentage
of Amount Assumed to Net |
|||||||||||||||
2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
144,374
|
|
|
|
$
|
3,298
|
|
|
|
|
$
|
0
|
|
|
|
$
|
141,076
|
|
|
|
0
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health insurance
|
$
|
14,648
|
|
|
|
$
|
339
|
|
|
|
|
$
|
10
|
|
|
|
$
|
14,319
|
|
|
|
0
|
%
|
|
Life insurance
|
4,764
|
|
|
|
11
|
|
|
|
|
0
|
|
|
|
4,753
|
|
|
|
0
|
|
|
||||
Total earned premiums
|
$
|
19,412
|
|
|
|
$
|
350
|
|
|
|
|
$
|
10
|
|
|
|
$
|
19,072
|
|
|
|
0
|
%
|
|
2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
157,022
|
|
|
|
$
|
3,245
|
|
|
|
|
$
|
0
|
|
|
|
$
|
153,777
|
|
|
|
0
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health insurance
|
$
|
15,393
|
|
|
|
$
|
98
|
|
|
|
|
$
|
12
|
|
|
|
$
|
15,307
|
|
|
|
0
|
%
|
|
Life insurance
|
4,840
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
4,828
|
|
|
|
0
|
|
|
||||
Total earned premiums
|
$
|
20,233
|
|
|
|
$
|
110
|
|
|
|
|
$
|
12
|
|
|
|
$
|
20,135
|
|
|
|
0
|
%
|
|
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
|
%
|
|
Aflac Incorporated
|
|
|
||
By:
|
|
/s/ Daniel P. Amos
|
|
February 26, 2015
|
|
|
(Daniel P. Amos)
|
|
|
|
|
Chief Executive Officer,
|
|
|
|
|
Chairman of the Board of Directors
|
|
|
/s/
Daniel P. Amos
|
|
|
Chief Executive Officer,
|
|
February 26, 2015
|
(Daniel P. Amos)
|
|
|
Chairman of the Board of Directors
|
|
|
|
|
|
|
|
|
/s/
Kriss Cloninger III
|
|
|
President, Chief Financial Officer,
|
|
February 26, 2015
|
(Kriss Cloninger III)
|
|
|
Treasurer and Director
|
|
|
|
|
|
|
|
|
/s/
June Howard
|
|
|
Senior Vice President, Financial Services;
|
|
February 26, 2015
|
(June Howard)
|
|
|
Chief Accounting Officer
|
|
|
/s/
Paul S. Amos II
|
|
|
|
Director
|
|
February 26, 2015
|
(Paul S. Amos II)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
W. Paul Bowers
|
|
|
|
Director
|
|
February 26, 2015
|
(W. Paul Bowers)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Elizabeth J. Hudson
|
|
|
|
Director
|
|
February 26, 2015
|
(Elizabeth J. Hudson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Douglas W. Johnson
|
|
|
|
Director
|
|
February 26, 2015
|
(Douglas W. Johnson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Robert B. Johnson
|
|
|
|
Director
|
|
February 26, 2015
|
(Robert B. Johnson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Thomas J. Kenny
|
|
|
|
Director
|
|
February 26, 2015
|
(Thomas J. Kenny)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Charles B. Knapp
|
|
|
|
Director
|
|
February 26, 2015
|
(Charles B. Knapp)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Barbara K. Rimer
|
|
|
|
Director
|
|
February 26, 2015
|
(Barbara K. Rimer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Melvin T. Stith
|
|
|
|
Director
|
|
February 26, 2015
|
(Melvin T. Stith)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
David G. Thompson
|
|
|
|
Director
|
|
February 26, 2015
|
(David G. Thompson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Takuro Yoshida
|
|
|
|
Director
|
|
February 26, 2015
|
(Takuro Yoshida)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
Section 2.1 of the Plan is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
Employee
|
|
|
American Family Life Assurance Company of Columbus (Aflac)
|
/s/ Eric Kirsch
|
|
By:
|
/s/ Daniel P. Amos
|
Eric Kirsch
|
|
|
Daniel P. Amos
Chairman and Chief Executive Officer
|
|
|
|
|
|
|
Attest:
|
/s/ J. Matthew Loudermilk
|
|
|
|
J. Matthew Loudermilk
VP, Corporate Secretary
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Numerator (In millions):
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted: net earnings applicable to common stock
|
$
|
2,951
|
|
|
$
|
3,158
|
|
|
$
|
2,866
|
|
|
$
|
1,937
|
|
|
$
|
2,328
|
|
Denominator (In thousands):
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average outstanding shares used in the
computation of earnings per share - basic |
451,204
|
|
|
464,502
|
|
|
466,868
|
|
|
466,519
|
|
|
469,038
|
|
|||||
Dilutive effect of share-based awards
|
2,796
|
|
|
2,906
|
|
|
2,419
|
|
|
2,851
|
|
|
4,047
|
|
|||||
Weighted-average outstanding shares used in the
computation of earnings per share - diluted |
454,000
|
|
|
467,408
|
|
|
469,287
|
|
|
469,370
|
|
|
473,085
|
|
|||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
6.54
|
|
|
$
|
6.80
|
|
|
$
|
6.14
|
|
|
$
|
4.16
|
|
|
$
|
4.96
|
|
Diluted
|
6.50
|
|
|
6.76
|
|
|
$
|
6.11
|
|
|
4.12
|
|
|
4.92
|
|
(In thousands)
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
(1)
|
$
|
317,428
|
|
|
$
|
292,637
|
|
|
$
|
261,405
|
|
|
$
|
195,536
|
|
|
$
|
149,056
|
|
Interest on investment-type contracts
|
57,363
|
|
|
54,839
|
|
|
57,679
|
|
|
50,075
|
|
|
40,412
|
|
|||||
Rental expense deemed interest
|
629
|
|
|
693
|
|
|
892
|
|
|
1,028
|
|
|
946
|
|
|||||
Total fixed charges
|
$
|
375,420
|
|
|
$
|
348,169
|
|
|
$
|
319,976
|
|
|
$
|
246,639
|
|
|
$
|
190,414
|
|
Earnings before income tax
(1)
|
$
|
4,490,604
|
|
|
$
|
4,815,619
|
|
|
$
|
4,302,108
|
|
|
$
|
2,950,452
|
|
|
$
|
3,560,097
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total fixed charges
|
375,420
|
|
|
348,169
|
|
|
319,976
|
|
|
246,639
|
|
|
190,414
|
|
|||||
Total earnings before income tax and fixed charges
|
$
|
4,866,024
|
|
|
$
|
5,163,788
|
|
|
$
|
4,622,084
|
|
|
$
|
3,197,091
|
|
|
$
|
3,750,511
|
|
Ratio of earnings to fixed charges
|
13.0x
|
|
|
14.8x
|
|
|
14.4x
|
|
|
13.0x
|
|
|
19.7x
|
|
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 Benefits Advisors, Incorporated
|
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, 2015
|
|
/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, 2015
|
|
/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, 2015
|
/s/
Kriss Cloninger III
|
||
Name:
|
|
Kriss Cloninger III
|
Title:
|
|
Chief Financial Officer
|
Date:
|
|
February 26, 2015
|