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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706.323.3431
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year, if changed since last report)
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-accelerated filer
¨
(Do not check if a smaller reporting company)
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Smaller reporting company
¨
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
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||
¨
Yes
þ
No
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Class
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October 26, 2015
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Common Stock, $.10 Par Value
|
|
426,738,679
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|
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Page
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PART I.
|
|
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Item 1.
|
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||
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||
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Three Months Ended September 30, 2015, and 2014
Nine Months Ended September 30, 2015 and 2014
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Three Months Ended September 30, 2015, and 2014
Nine Months Ended September 30, 2015 and 2014
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September 30, 2015 and December 31, 2014
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Nine Months Ended September 30, 2015, and 2014
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Nine Months Ended September 30, 2015, and 2014
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Item 2.
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Item 3.
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Item 4.
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PART II.
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Item 2.
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Item 6.
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/s/ KPMG LLP
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Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||
(In millions, except for share and per-share amounts - Unaudited)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||||
Revenues:
|
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|
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|
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||||||||
Net premiums, principally supplemental health insurance
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$
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4,380
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|
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$
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4,841
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$
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13,176
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$
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14,583
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|
|
Net investment income
|
|
784
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|
|
|
841
|
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2,343
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2,511
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|
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||||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairment losses realized
|
|
(137
|
)
|
|
|
0
|
|
|
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(143
|
)
|
|
|
(31
|
)
|
|
||||
Sales and redemptions
|
|
26
|
|
|
|
33
|
|
|
|
186
|
|
|
|
171
|
|
|
||||
Derivative and other gains (losses)
|
|
(3
|
)
|
|
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(17
|
)
|
|
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(17
|
)
|
|
|
(68
|
)
|
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||||
Total realized investment gains (losses)
|
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(114
|
)
|
|
|
16
|
|
|
|
26
|
|
|
|
72
|
|
|
||||
Other income (loss)
|
|
(10
|
)
|
|
|
38
|
|
|
|
8
|
|
|
|
48
|
|
|
||||
Total revenues
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5,040
|
|
|
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5,736
|
|
|
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15,553
|
|
|
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17,214
|
|
|
||||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|
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|
||||||||
Benefits and claims, net
|
|
2,927
|
|
|
|
3,355
|
|
|
|
8,816
|
|
|
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9,868
|
|
|
||||
Acquisition and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of deferred policy acquisition costs
|
|
258
|
|
|
|
271
|
|
|
|
790
|
|
|
|
841
|
|
|
||||
Insurance commissions
|
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326
|
|
|
|
361
|
|
|
|
981
|
|
|
|
1,096
|
|
|
||||
Insurance expenses
|
|
554
|
|
|
|
566
|
|
|
|
1,634
|
|
|
|
1,637
|
|
|
||||
Interest expense
|
|
67
|
|
|
|
77
|
|
|
|
224
|
|
|
|
238
|
|
|
||||
Other expenses
|
|
44
|
|
|
|
32
|
|
|
|
356
|
|
(1)
|
|
118
|
|
|
||||
Total acquisition and operating expenses
|
|
1,249
|
|
|
|
1,307
|
|
|
|
3,985
|
|
|
|
3,930
|
|
|
||||
Total benefits and expenses
|
|
4,176
|
|
|
|
4,662
|
|
|
|
12,801
|
|
|
|
13,798
|
|
|
||||
Earnings before income taxes
|
|
864
|
|
|
|
1,074
|
|
|
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2,752
|
|
|
|
3,416
|
|
|
||||
Income taxes
|
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297
|
|
|
|
368
|
|
|
|
949
|
|
|
|
1,168
|
|
|
||||
Net earnings
|
|
$
|
567
|
|
|
|
$
|
706
|
|
|
|
$
|
1,803
|
|
|
|
$
|
2,248
|
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
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|
||||||||
Basic
|
|
$
|
1.32
|
|
|
|
$
|
1.56
|
|
|
|
$
|
4.17
|
|
|
|
$
|
4.96
|
|
|
Diluted
|
|
1.32
|
|
|
|
1.56
|
|
|
|
4.14
|
|
|
|
4.93
|
|
|
||||
Weighted-average outstanding common shares used in
computing earnings per share (In thousands): |
|
|
|
|
|
|
|
|
|
|
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|
||||||||
Basic
|
|
428,735
|
|
|
|
451,246
|
|
|
|
432,540
|
|
|
|
452,833
|
|
|
||||
Diluted
|
|
431,102
|
|
|
|
453,981
|
|
|
|
435,064
|
|
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455,674
|
|
|
||||
Cash dividends per share
|
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$
|
.39
|
|
|
|
$
|
.37
|
|
|
|
$
|
1.17
|
|
|
|
$
|
1.11
|
|
|
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||
(In millions - Unaudited)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||||
Net earnings
|
|
$
|
567
|
|
|
|
$
|
706
|
|
|
|
$
|
1,803
|
|
|
|
$
|
2,248
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized foreign currency translation gains (losses) during
period |
|
186
|
|
|
|
(904
|
)
|
|
|
25
|
|
|
|
(459
|
)
|
|
||||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains (losses) on investment securities during
period |
|
(401
|
)
|
|
|
774
|
|
|
|
(2,266
|
)
|
|
|
3,656
|
|
|
||||
Reclassification adjustment for realized (gains) losses on
investment securities included in net earnings |
|
138
|
|
|
|
(27
|
)
|
|
|
20
|
|
|
|
(18
|
)
|
|
||||
Unrealized gains (losses) on derivatives during period
|
|
(1
|
)
|
|
|
(9
|
)
|
|
|
(3
|
)
|
|
|
(8
|
)
|
|
||||
Pension liability adjustment during period
|
|
0
|
|
|
|
3
|
|
|
|
1
|
|
|
|
2
|
|
|
||||
Total other comprehensive income (loss) before income taxes
|
|
(78
|
)
|
|
|
(163
|
)
|
|
|
(2,223
|
)
|
|
|
3,173
|
|
|
||||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
(99
|
)
|
|
|
(57
|
)
|
|
|
(772
|
)
|
|
|
1,110
|
|
|
||||
Other comprehensive income (loss), net of income taxes
|
|
21
|
|
|
|
(106
|
)
|
|
|
(1,451
|
)
|
|
|
2,063
|
|
|
||||
Total comprehensive income (loss)
|
|
$
|
588
|
|
|
|
$
|
600
|
|
|
|
$
|
352
|
|
|
|
$
|
4,311
|
|
|
(In millions)
|
September 30,
2015
(Unaudited)
|
|
December 31,
2014 |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
|
|
|
||||
Securities available for sale, at fair value:
|
|
|
|
|
|
|
|
||||
Fixed maturities (amortized cost $56,363 in 2015 and $55,365 in 2014)
|
|
$
|
60,565
|
|
|
|
|
$
|
61,407
|
|
|
Fixed maturities - consolidated variable interest entities (amortized
cost $3,651 in 2015 and $3,020 in 2014) |
|
4,541
|
|
|
|
|
4,166
|
|
|
||
Perpetual securities (amortized cost $1,802 in 2015 and $2,035 in 2014)
|
|
1,897
|
|
|
|
|
2,240
|
|
|
||
Perpetual securities - consolidated variable interest entities
(amortized cost $287 in 2015 and $405 in 2014) |
|
269
|
|
|
|
|
429
|
|
|
||
Equity securities (cost $119 in 2015 and $19 in 2014)
|
|
131
|
|
|
|
|
28
|
|
|
||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
|
|
||||
Fixed maturities (fair value $36,868 in 2015 and $38,413 in 2014)
|
|
33,646
|
|
|
|
|
34,159
|
|
|
||
Fixed maturities - consolidated variable interest entities (fair value
$80 in 2015 and $84 in 2014) |
|
83
|
|
|
|
|
83
|
|
|
||
Other investments
|
|
248
|
|
|
|
|
171
|
|
|
||
Cash and cash equivalents
|
|
3,520
|
|
|
|
|
4,658
|
|
|
||
Total investments and cash
|
|
104,900
|
|
|
|
|
107,341
|
|
|
||
Receivables
|
|
762
|
|
|
|
|
842
|
|
|
||
Accrued investment income
|
|
733
|
|
|
|
|
762
|
|
|
||
Deferred policy acquisition costs
|
|
8,451
|
|
|
|
|
8,273
|
|
|
||
Property and equipment, at cost less accumulated depreciation
|
|
430
|
|
|
|
|
429
|
|
|
||
Other
(1)
|
|
2,179
|
|
|
|
|
2,120
|
|
|
||
Total assets
|
|
$
|
117,455
|
|
|
|
|
$
|
119,767
|
|
|
(In millions, except for share and per-share amounts)
|
September 30,
2015
(Unaudited)
|
|
December 31,
2014 |
||||||||
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||
Policy liabilities:
|
|
|
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
68,971
|
|
|
|
|
$
|
65,646
|
|
|
Unpaid policy claims
|
|
3,809
|
|
|
|
|
3,630
|
|
|
||
Unearned premiums
|
|
8,121
|
|
|
|
|
8,626
|
|
|
||
Other policyholders’ funds
|
|
6,284
|
|
|
|
|
6,031
|
|
|
||
Total policy liabilities
|
|
87,185
|
|
|
|
|
83,933
|
|
|
||
Income taxes
|
|
4,474
|
|
|
|
|
5,293
|
|
|
||
Payables for return of cash collateral on loaned securities
|
|
907
|
|
|
|
|
2,193
|
|
|
||
Notes payable
|
|
5,009
|
|
|
|
|
5,282
|
|
|
||
Other
(2)
|
|
2,625
|
|
|
|
|
4,719
|
|
|
||
Total liabilities
|
|
100,200
|
|
|
|
|
101,420
|
|
|
||
Commitments and contingent liabilities (Note 11)
|
|
|
|
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000
shares in 2015 and 2014; issued 669,509 shares in 2015 and 668,132 shares in 2014 |
|
67
|
|
|
|
|
67
|
|
|
||
Additional paid-in capital
|
|
1,807
|
|
|
|
|
1,711
|
|
|
||
Retained earnings
|
|
23,451
|
|
|
|
|
22,156
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Unrealized foreign currency translation gains (losses)
|
|
(2,533
|
)
|
|
|
|
(2,541
|
)
|
|
||
Unrealized gains (losses) on investment securities
|
|
3,214
|
|
|
|
|
4,672
|
|
|
||
Unrealized gains (losses) on derivatives
|
|
(28
|
)
|
|
|
|
(26
|
)
|
|
||
Pension liability adjustment
|
|
(125
|
)
|
|
|
|
(126
|
)
|
|
||
Treasury stock, at average cost
|
|
(8,598
|
)
|
|
|
|
(7,566
|
)
|
|
||
Total shareholders’ equity
|
|
17,255
|
|
|
|
|
18,347
|
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
117,455
|
|
|
|
|
$
|
119,767
|
|
|
|
Nine Months Ended
September 30, |
||||||||||
(In millions - Unaudited)
|
|
2015
|
|
|
|
2014
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
$
|
67
|
|
|
|
|
$
|
67
|
|
|
Balance, end of period
|
|
67
|
|
|
|
|
67
|
|
|
||
Additional paid-in capital:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
1,711
|
|
|
|
|
1,644
|
|
|
||
Exercise of stock options
|
|
41
|
|
|
|
|
24
|
|
|
||
Share-based compensation
|
|
27
|
|
|
|
|
27
|
|
|
||
Gain (loss) on treasury stock reissued
|
|
28
|
|
|
|
|
31
|
|
|
||
Balance, end of period
|
|
1,807
|
|
|
|
|
1,726
|
|
|
||
Retained earnings:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
22,156
|
|
|
|
|
19,885
|
|
|
||
Net earnings
|
|
1,803
|
|
|
|
|
2,248
|
|
|
||
Dividends to shareholders
|
|
(508
|
)
|
|
|
|
(505
|
)
|
|
||
Balance, end of period
|
|
23,451
|
|
|
|
|
21,628
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
1,979
|
|
|
|
|
(563
|
)
|
|
||
Unrealized foreign currency translation gains (losses) during
period, net of income taxes |
|
8
|
|
|
|
|
(300
|
)
|
|
||
Unrealized gains (losses) on investment securities during period,
net of income taxes and reclassification adjustments |
|
(1,458
|
)
|
|
|
|
2,367
|
|
|
||
Unrealized gains (losses) on derivatives during period, net of
income taxes |
|
(2
|
)
|
|
|
|
(5
|
)
|
|
||
Pension liability adjustment during period, net of income taxes
|
|
1
|
|
|
|
|
1
|
|
|
||
Balance, end of period
|
|
528
|
|
|
|
|
1,500
|
|
|
||
Treasury stock:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
(7,566
|
)
|
|
|
|
(6,413
|
)
|
|
||
Purchases of treasury stock
|
|
(1,081
|
)
|
|
|
|
(698
|
)
|
|
||
Cost of shares issued
|
|
49
|
|
|
|
|
43
|
|
|
||
Balance, end of period
|
|
(8,598
|
)
|
|
|
|
(7,068
|
)
|
|
||
Total shareholders’ equity
|
|
$
|
17,255
|
|
|
|
|
$
|
17,853
|
|
|
|
Nine Months Ended September 30,
|
||||||||||
(In millions - Unaudited)
|
2015
|
|
2014
|
||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||
Net earnings
|
|
$
|
1,803
|
|
|
|
|
$
|
2,248
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Change in receivables and advance premiums
|
|
98
|
|
|
|
|
(2
|
)
|
|
||
Increase in deferred policy acquisition costs
|
|
(152
|
)
|
|
|
|
(135
|
)
|
|
||
Increase in policy liabilities
|
|
2,696
|
|
|
|
|
2,674
|
|
|
||
Change in income tax liabilities
|
|
(43
|
)
|
|
|
|
(270
|
)
|
|
||
Realized investment (gains) losses
|
|
(26
|
)
|
|
|
|
(72
|
)
|
|
||
Other, net
|
|
394
|
|
(1)
|
|
|
134
|
|
|
||
Net cash provided (used) by operating activities
|
|
4,770
|
|
|
|
|
4,577
|
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||
Proceeds from investments sold or matured:
|
|
|
|
|
|
|
|
||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||
Fixed maturities sold
|
|
1,829
|
|
|
|
|
1,773
|
|
|
||
Fixed maturities matured or called
|
|
705
|
|
|
|
|
723
|
|
|
||
Perpetual securities sold
|
|
0
|
|
|
|
|
60
|
|
|
||
Perpetual securities matured or called
|
|
394
|
|
|
|
|
0
|
|
|
||
Equity securities sold
|
|
1
|
|
|
|
|
0
|
|
|
||
Securities held to maturity:
|
|
|
|
|
|
|
|
||||
Fixed maturities matured or called
|
|
678
|
|
|
|
|
8,456
|
|
|
||
Costs of investments acquired:
|
|
|
|
|
|
|
|
||||
Available-for-sale fixed maturities acquired
|
|
(3,919
|
)
|
|
|
|
(8,959
|
)
|
|
||
Available-for-sale equity securities acquired
|
|
(67
|
)
|
|
|
|
0
|
|
|
||
Held-to-maturity fixed maturities acquired
|
|
0
|
|
|
|
|
(3,564
|
)
|
|
||
Other investments, net
|
|
(27
|
)
|
|
|
|
(3,690
|
)
|
|
||
Settlement of derivatives, net
|
|
(2,242
|
)
|
|
|
|
(367
|
)
|
|
||
Cash received (pledged or returned) as collateral, net
|
|
(1,404
|
)
|
|
|
|
1,414
|
|
|
||
Other, net
|
|
(31
|
)
|
|
|
|
10
|
|
|
||
Net cash provided (used) by investing activities
|
|
(4,083
|
)
|
|
|
|
(4,144
|
)
|
|
||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||
Purchases of treasury stock
|
|
(1,081
|
)
|
|
|
|
(698
|
)
|
|
||
Proceeds from borrowings
|
|
998
|
|
|
|
|
0
|
|
|
||
Principal payments under debt obligations
|
|
(1,272
|
)
|
|
|
|
(335
|
)
|
|
||
Dividends paid to shareholders
|
|
(489
|
)
|
|
|
|
(486
|
)
|
|
||
Change in investment-type contracts, net
|
|
213
|
|
|
|
|
1,166
|
|
|
||
Treasury stock reissued
|
|
28
|
|
|
|
|
25
|
|
|
||
Other, net
|
|
(223
|
)
|
(1)
|
|
|
6
|
|
|
||
Net cash provided (used) by financing activities
|
|
(1,826
|
)
|
|
|
|
(322
|
)
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
1
|
|
|
|
|
12
|
|
|
||
Net change in cash and cash equivalents
|
|
(1,138
|
)
|
|
|
|
123
|
|
|
||
Cash and cash equivalents, beginning of period
|
|
4,658
|
|
|
|
|
2,543
|
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
3,520
|
|
|
|
|
$
|
2,666
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
||||
Income taxes paid
|
|
$
|
996
|
|
|
|
|
$
|
1,412
|
|
|
Interest paid
|
|
188
|
|
|
|
|
171
|
|
|
||
Noncash interest
|
|
36
|
|
|
|
|
66
|
|
|
||
Impairment losses included in realized investment losses
|
|
143
|
|
|
|
|
31
|
|
|
||
Noncash financing activities:
|
|
|
|
|
|
|
|
||||
Capital lease obligations
|
|
2
|
|
|
|
|
0
|
|
|
||
Treasury stock issued for:
|
|
|
|
|
|
|
|
||||
Associate stock bonus
|
|
26
|
|
|
|
|
26
|
|
|
||
Shareholder dividend reinvestment
|
|
19
|
|
|
|
|
19
|
|
|
||
Share-based compensation grants
|
|
4
|
|
|
|
|
4
|
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
2.
|
BUSINESS SEGMENT INFORMATION
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan:
|
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
2,980
|
|
|
$
|
3,534
|
|
|
$
|
9,036
|
|
|
$
|
10,672
|
|
|
Net investment income
|
606
|
|
|
676
|
|
|
1,824
|
|
|
2,019
|
|
|
||||
Other income
|
8
|
|
|
9
|
|
|
23
|
|
|
25
|
|
|
||||
Total Aflac Japan
|
3,594
|
|
|
4,219
|
|
|
10,883
|
|
|
12,716
|
|
|
||||
Aflac U.S.:
|
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
1,345
|
|
|
1,306
|
|
|
4,016
|
|
|
3,910
|
|
|
||||
Net investment income
|
173
|
|
|
162
|
|
|
507
|
|
|
484
|
|
|
||||
Other income
|
2
|
|
|
0
|
|
|
6
|
|
|
2
|
|
|
||||
Total Aflac U.S.
|
1,520
|
|
|
1,468
|
|
|
4,529
|
|
|
4,396
|
|
|
||||
Other business segments
|
67
|
|
|
11
|
|
|
159
|
|
|
29
|
|
|
||||
Total business segment revenues
|
5,181
|
|
|
5,698
|
|
|
15,571
|
|
|
17,141
|
|
|
||||
Realized investment gains (losses)
(1)
|
(136
|
)
|
|
6
|
|
|
(36
|
)
|
|
42
|
|
|
||||
Corporate
|
73
|
|
|
43
|
|
|
242
|
|
|
194
|
|
|
||||
Intercompany eliminations
|
(51
|
)
|
|
(38
|
)
|
|
(185
|
)
|
|
(170
|
)
|
|
||||
Other non-operating income (loss)
|
(27
|
)
|
(2)
|
27
|
|
|
(39
|
)
|
(2)
|
7
|
|
|
||||
Total revenues
|
$
|
5,040
|
|
|
$
|
5,736
|
|
|
$
|
15,553
|
|
|
$
|
17,214
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||
Pretax earnings:
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
|
$
|
789
|
|
|
$
|
828
|
|
|
$
|
2,365
|
|
|
$
|
2,688
|
|
|
Aflac U.S.
|
286
|
|
|
269
|
|
|
864
|
|
|
872
|
|
|
||||
Other business segments
|
5
|
|
|
0
|
|
|
10
|
|
|
0
|
|
|
||||
Total business segment pretax operating earnings
|
1,080
|
|
|
1,097
|
|
|
3,239
|
|
|
3,560
|
|
|
||||
Interest expense, noninsurance operations
|
(30
|
)
|
|
(49
|
)
|
|
(117
|
)
|
|
(150
|
)
|
|
||||
Corporate and eliminations
|
(23
|
)
|
|
(7
|
)
|
|
(64
|
)
|
|
(43
|
)
|
|
||||
Pretax operating earnings
|
1,027
|
|
|
1,041
|
|
|
3,058
|
|
|
3,367
|
|
|
||||
Realized investment gains (losses)
(1)
|
(136
|
)
|
|
6
|
|
|
(36
|
)
|
|
42
|
|
|
||||
Other non-operating income (loss)
|
(27
|
)
|
(2)
|
27
|
|
|
(270
|
)
|
(2),(3)
|
7
|
|
|
||||
Total earnings before income taxes
|
$
|
864
|
|
|
$
|
1,074
|
|
|
$
|
2,752
|
|
|
$
|
3,416
|
|
|
Income taxes applicable to pretax operating earnings
|
$
|
355
|
|
|
$
|
356
|
|
|
$
|
1,057
|
|
|
$
|
1,151
|
|
|
Effect of foreign currency translation on operating earnings
|
(58
|
)
|
|
(19
|
)
|
|
(175
|
)
|
|
(80
|
)
|
|
(In millions)
|
September 30,
2015 |
|
December 31,
2014 |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Aflac Japan
|
|
$
|
97,158
|
|
|
|
|
$
|
98,525
|
|
|
Aflac U.S.
|
|
18,687
|
|
|
|
|
18,383
|
|
|
||
Other business segments
|
|
176
|
|
|
|
|
128
|
|
|
||
Total business segment assets
|
|
116,021
|
|
|
|
|
117,036
|
|
|
||
Corporate
|
|
22,676
|
|
|
|
|
24,636
|
|
|
||
Intercompany eliminations
|
|
(21,242
|
)
|
|
|
|
(21,905
|
)
|
|
||
Total assets
|
|
$
|
117,455
|
|
|
|
|
$
|
119,767
|
|
|
3.
|
INVESTMENTS
|
|
September 30, 2015
|
||||||||||||||||||||||
(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
|
|
$
|
16,799
|
|
|
|
|
$
|
1,544
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
18,342
|
|
|
Municipalities
|
|
88
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
94
|
|
|
||||
Mortgage- and asset-backed securities
|
|
330
|
|
|
|
|
31
|
|
|
|
|
0
|
|
|
|
|
361
|
|
|
||||
Public utilities
|
|
1,613
|
|
|
|
|
202
|
|
|
|
|
17
|
|
|
|
|
1,798
|
|
|
||||
Sovereign and supranational
|
|
795
|
|
|
|
|
185
|
|
|
|
|
0
|
|
|
|
|
980
|
|
|
||||
Banks/financial institutions
|
|
2,463
|
|
|
|
|
271
|
|
|
|
|
118
|
|
|
|
|
2,616
|
|
|
||||
Other corporate
|
|
3,354
|
|
|
|
|
399
|
|
|
|
|
32
|
|
|
|
|
3,721
|
|
|
||||
Total yen-denominated
|
|
25,442
|
|
|
|
|
2,638
|
|
|
|
|
168
|
|
|
|
|
27,912
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
111
|
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
123
|
|
|
||||
Municipalities
|
|
927
|
|
|
|
|
154
|
|
|
|
|
9
|
|
|
|
|
1,072
|
|
|
||||
Mortgage- and asset-backed securities
|
|
201
|
|
|
|
|
29
|
|
|
|
|
0
|
|
|
|
|
230
|
|
|
||||
Public utilities
|
|
5,437
|
|
|
|
|
742
|
|
|
|
|
129
|
|
|
|
|
6,050
|
|
|
||||
Sovereign and supranational
|
|
332
|
|
|
|
|
109
|
|
|
|
|
0
|
|
|
|
|
441
|
|
|
||||
Banks/financial institutions
|
|
2,952
|
|
|
|
|
707
|
|
|
|
|
14
|
|
|
|
|
3,645
|
|
|
||||
Other corporate
|
|
24,612
|
|
|
|
|
2,016
|
|
|
|
|
995
|
|
|
|
|
25,633
|
|
|
||||
Total dollar-denominated
|
|
34,572
|
|
|
|
|
3,769
|
|
|
|
|
1,147
|
|
|
|
|
37,194
|
|
|
||||
Total fixed maturities
|
|
60,014
|
|
|
|
|
6,407
|
|
|
|
|
1,315
|
|
|
|
|
65,106
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
1,798
|
|
|
|
|
149
|
|
|
|
|
140
|
|
|
|
|
1,807
|
|
|
||||
Other corporate
|
|
184
|
|
|
|
|
18
|
|
|
|
|
0
|
|
|
|
|
202
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
107
|
|
|
|
|
51
|
|
|
|
|
1
|
|
|
|
|
157
|
|
|
||||
Total perpetual securities
|
|
2,089
|
|
|
|
|
218
|
|
|
|
|
141
|
|
|
|
|
2,166
|
|
|
||||
Equity securities
|
|
119
|
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
131
|
|
|
||||
Total securities available for sale
|
|
$
|
62,222
|
|
|
|
|
$
|
6,637
|
|
|
|
|
$
|
1,456
|
|
|
|
|
$
|
67,403
|
|
|
|
September 30, 2015
|
||||||||||||||||||||||
(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
|
|
$
|
20,115
|
|
|
|
|
$
|
2,876
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
22,991
|
|
|
Municipalities
|
|
345
|
|
|
|
|
64
|
|
|
|
|
0
|
|
|
|
|
409
|
|
|
||||
Mortgage- and asset-backed securities
|
|
38
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
40
|
|
|
||||
Public utilities
|
|
3,108
|
|
|
|
|
151
|
|
|
|
|
131
|
|
|
|
|
3,128
|
|
|
||||
Sovereign and supranational
|
|
2,569
|
|
|
|
|
164
|
|
|
|
|
47
|
|
|
|
|
2,686
|
|
|
||||
Banks/financial institutions
|
|
4,539
|
|
|
|
|
141
|
|
|
|
|
136
|
|
|
|
|
4,544
|
|
|
||||
Other corporate
|
|
3,015
|
|
|
|
|
191
|
|
|
|
|
56
|
|
|
|
|
3,150
|
|
|
||||
Total yen-denominated
|
|
33,729
|
|
|
|
|
3,589
|
|
|
|
|
370
|
|
|
|
|
36,948
|
|
|
||||
Total securities held to maturity
|
|
$
|
33,729
|
|
|
|
|
$
|
3,589
|
|
|
|
|
$
|
370
|
|
|
|
|
$
|
36,948
|
|
|
|
December 31, 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
|
|
|
|
December 31, 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
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
246
|
|
|
|
|
$
|
262
|
|
|
|
|
$
|
85
|
|
|
|
|
$
|
86
|
|
|
Due after one year through five years
|
|
2,340
|
|
|
|
|
2,722
|
|
|
|
|
641
|
|
|
|
|
717
|
|
|
||||
Due after five years through 10 years
|
|
11,299
|
|
|
|
|
11,576
|
|
|
|
|
2,033
|
|
|
|
|
2,140
|
|
|
||||
Due after 10 years
|
|
33,384
|
|
|
|
|
36,760
|
|
|
|
|
9,069
|
|
|
|
|
9,851
|
|
|
||||
Mortgage- and asset-backed securities
|
|
381
|
|
|
|
|
432
|
|
|
|
|
36
|
|
|
|
|
45
|
|
|
||||
Total fixed maturities available for sale
|
|
$
|
47,650
|
|
|
|
|
$
|
51,752
|
|
|
|
|
$
|
11,864
|
|
|
|
|
$
|
12,839
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
318
|
|
|
|
|
$
|
324
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after one year through five years
|
|
1,593
|
|
|
|
|
1,675
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after five years through 10 years
|
|
1,730
|
|
|
|
|
1,825
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
30,050
|
|
|
|
|
33,084
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Mortgage- and asset-backed securities
|
|
38
|
|
|
|
|
40
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total fixed maturities held to maturity
|
|
$
|
33,729
|
|
|
|
|
$
|
36,948
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Due in one year or less
|
|
$
|
261
|
|
|
|
|
$
|
254
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after one year through five years
|
|
449
|
|
|
|
|
453
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
1,340
|
|
|
|
|
1,401
|
|
|
|
|
39
|
|
|
|
|
58
|
|
|
||||
Total perpetual securities available for sale
|
|
$
|
2,050
|
|
|
|
|
$
|
2,108
|
|
|
|
|
$
|
39
|
|
|
|
|
$
|
58
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||
|
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
|
|
$
|
9,954
|
|
|
|
|
10
|
%
|
|
|
|
$
|
10,627
|
|
|
|
|
11
|
%
|
|
Fair value
|
|
10,805
|
|
|
|
|
10
|
|
|
|
|
11,683
|
|
|
|
|
11
|
|
|
||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Upper Tier II:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortized cost
|
|
$
|
1,337
|
|
|
|
|
1
|
%
|
|
|
|
$
|
1,554
|
|
|
|
|
2
|
%
|
|
Fair value
|
|
1,369
|
|
|
|
|
1
|
|
|
|
|
1,645
|
|
|
|
|
1
|
|
|
||
Tier I:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortized cost
|
|
568
|
|
|
|
|
1
|
|
|
|
|
703
|
|
|
|
|
1
|
|
|
||
Fair value
|
|
595
|
|
|
|
|
1
|
|
|
|
|
793
|
|
|
|
|
1
|
|
|
||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortized cost
|
|
$
|
11,859
|
|
|
|
|
12
|
%
|
|
|
|
$
|
12,884
|
|
|
|
|
14
|
%
|
|
Fair value
|
|
12,769
|
|
|
|
|
12
|
|
|
|
|
14,121
|
|
|
|
|
13
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||
Realized investment gains (losses) on securities:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
||||||||
Gross gains from sales
|
$
|
20
|
|
|
$
|
17
|
|
|
$
|
124
|
|
|
$
|
144
|
|
|
Gross losses from sales
|
(6
|
)
|
|
0
|
|
|
(6
|
)
|
|
(1
|
)
|
|
||||
Net gains (losses) from redemptions
|
12
|
|
|
16
|
|
|
38
|
|
|
27
|
|
|
||||
Other-than-temporary impairment losses
|
(136
|
)
|
|
0
|
|
|
(142
|
)
|
|
(31
|
)
|
|
||||
Held to maturity:
|
|
|
|
|
|
|
|
|
||||||||
Net gains (losses) from redemptions
|
0
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
||||
Total fixed maturities
|
(110
|
)
|
|
33
|
|
|
14
|
|
|
140
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
||||||||
Net gains (losses) from redemptions
|
0
|
|
|
0
|
|
|
30
|
|
|
0
|
|
|
||||
Total perpetual securities
|
0
|
|
|
0
|
|
|
30
|
|
|
0
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairment losses
|
(1
|
)
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
||||
Total equity securities
|
(1
|
)
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
||||
Derivatives and other:
|
|
|
|
|
|
|
|
|
||||||||
Derivative gains (losses)
|
(3
|
)
|
|
(17
|
)
|
|
(17
|
)
|
|
(67
|
)
|
|
||||
Other
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
||||
Total derivatives and other
|
(3
|
)
|
|
(17
|
)
|
|
(17
|
)
|
|
(68
|
)
|
|
||||
Total realized investment gains (losses)
|
$
|
(114
|
)
|
|
$
|
16
|
|
|
$
|
26
|
|
|
$
|
72
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||
Corporate bonds
|
$
|
5
|
|
|
$
|
0
|
|
|
$
|
7
|
|
|
$
|
31
|
|
|
Bank/financial institution bonds
|
131
|
|
|
0
|
|
|
135
|
|
|
0
|
|
|
||||
Equity securities
|
1
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
||||
Total other-than-temporary impairment losses realized
(1)
|
$
|
137
|
|
|
$
|
0
|
|
|
$
|
143
|
|
|
$
|
31
|
|
|
(In millions)
|
September 30,
2015 |
|
December 31,
2014 |
||||||||
Unrealized gains (losses) on securities available for sale
|
|
$
|
5,181
|
|
|
|
|
$
|
7,426
|
|
|
Deferred income taxes
|
|
(1,967
|
)
|
|
|
|
(2,754
|
)
|
|
||
Shareholders’ equity, unrealized gains (losses) on investment securities
|
|
$
|
3,214
|
|
|
|
|
$
|
4,672
|
|
|
|
September 30, 2015
|
||||||||||||||||||||||||||||||||||
|
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
|
|
$
|
92
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
92
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
44
|
|
|
|
|
9
|
|
|
|
|
44
|
|
|
|
|
9
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
1,955
|
|
|
|
|
129
|
|
|
|
|
1,499
|
|
|
|
|
79
|
|
|
|
|
456
|
|
|
|
|
50
|
|
|
||||||
Yen-denominated
|
|
1,451
|
|
|
|
|
148
|
|
|
|
|
1,039
|
|
|
|
|
102
|
|
|
|
|
412
|
|
|
|
|
46
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
728
|
|
|
|
|
47
|
|
|
|
|
535
|
|
|
|
|
32
|
|
|
|
|
193
|
|
|
|
|
15
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
307
|
|
|
|
|
14
|
|
|
|
|
304
|
|
|
|
|
14
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
||||||
Yen-denominated
|
|
2,809
|
|
|
|
|
254
|
|
|
|
|
1,762
|
|
|
|
|
72
|
|
|
|
|
1,047
|
|
|
|
|
182
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
12,285
|
|
|
|
|
995
|
|
|
|
|
9,940
|
|
|
|
|
597
|
|
|
|
|
2,345
|
|
|
|
|
398
|
|
|
||||||
Yen-denominated
|
|
1,237
|
|
|
|
|
88
|
|
|
|
|
437
|
|
|
|
|
5
|
|
|
|
|
800
|
|
|
|
|
83
|
|
|
||||||
Total fixed maturities
|
|
20,908
|
|
|
|
|
1,685
|
|
|
|
|
15,652
|
|
|
|
|
911
|
|
|
|
|
5,256
|
|
|
|
|
774
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
6
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
6
|
|
|
|
|
1
|
|
|
||||||
Yen-denominated
|
|
739
|
|
|
|
|
140
|
|
|
|
|
215
|
|
|
|
|
27
|
|
|
|
|
524
|
|
|
|
|
113
|
|
|
||||||
Total perpetual securities
|
|
745
|
|
|
|
|
141
|
|
|
|
|
215
|
|
|
|
|
27
|
|
|
|
|
530
|
|
|
|
|
114
|
|
|
||||||
Total
|
|
$
|
21,653
|
|
|
|
|
$
|
1,826
|
|
|
|
|
$
|
15,867
|
|
|
|
|
$
|
938
|
|
|
|
|
$
|
5,786
|
|
|
|
|
$
|
888
|
|
|
|
December 31, 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
|
|
|
|
|
September 30, 2015
|
|
|
December 31, 2014
|
|
||||||||||||||||||
(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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Public utilities
|
|
16
|
%
|
|
|
15
|
%
|
|
|
95
|
%
|
|
|
13
|
%
|
|
|
7
|
%
|
|
|
100
|
%
|
|
Sovereign and
supranational |
|
3
|
|
|
|
3
|
|
|
|
100
|
|
|
|
3
|
|
|
|
2
|
|
|
|
100
|
|
|
Banks/financial
institutions |
|
14
|
|
|
|
15
|
|
|
|
60
|
|
|
|
14
|
|
|
|
33
|
|
|
|
31
|
|
|
Other corporate
|
|
63
|
|
|
|
59
|
|
|
|
86
|
|
|
|
65
|
|
|
|
47
|
|
|
|
88
|
|
|
Total fixed
maturities |
|
96
|
%
|
|
|
92
|
%
|
|
|
|
|
|
95
|
%
|
|
|
89
|
%
|
|
|
|
|
||
Perpetual securities
|
|
4
|
|
|
|
8
|
|
|
|
100
|
|
|
|
5
|
|
|
|
11
|
|
|
|
100
|
|
|
Total
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||||||||||||
(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
|
|
|
|
|
$
|
61
|
|
|
|
|
$
|
87
|
|
|
|
|
$
|
26
|
|
|
|
BBB
|
|
|
1,112
|
|
|
|
|
1,056
|
|
|
|
|
(56
|
)
|
|
|
|
1,330
|
|
|
|
|
1,333
|
|
|
|
|
3
|
|
|
||||||
|
BB or lower
|
|
|
164
|
|
|
|
|
226
|
|
|
|
|
62
|
|
|
|
|
163
|
|
|
|
|
225
|
|
|
|
|
62
|
|
|
||||||
Total Upper Tier II
|
|
|
1,337
|
|
|
|
|
1,369
|
|
|
|
|
32
|
|
|
|
|
1,554
|
|
|
|
|
1,645
|
|
|
|
|
91
|
|
|
|||||||
Tier I:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
BBB
|
|
|
522
|
|
|
|
|
524
|
|
|
|
|
2
|
|
|
|
|
519
|
|
|
|
|
556
|
|
|
|
|
37
|
|
|
||||||
|
BB or lower
|
|
|
46
|
|
|
|
|
71
|
|
|
|
|
25
|
|
|
|
|
184
|
|
|
|
|
237
|
|
|
|
|
53
|
|
|
||||||
Total Tier I
|
|
|
|
568
|
|
|
|
|
595
|
|
|
|
|
27
|
|
|
|
|
703
|
|
|
|
|
793
|
|
|
|
|
90
|
|
|
||||||
Other subordinated
- non-banks: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
BB or lower
|
|
|
184
|
|
|
|
|
202
|
|
|
|
|
18
|
|
|
|
|
183
|
|
|
|
|
231
|
|
|
|
|
48
|
|
|
||||||
Total
|
|
|
|
$
|
2,089
|
|
|
|
|
$
|
2,166
|
|
|
|
|
$
|
77
|
|
|
|
|
$
|
2,440
|
|
|
|
|
$
|
2,669
|
|
|
|
|
$
|
229
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
3,651
|
|
|
|
|
$
|
4,541
|
|
|
|
|
$
|
3,020
|
|
|
|
|
$
|
4,166
|
|
|
Perpetual securities, available for sale
|
|
287
|
|
|
|
|
269
|
|
|
|
|
405
|
|
|
|
|
429
|
|
|
||||
Fixed maturities, held to maturity
|
|
83
|
|
|
|
|
80
|
|
|
|
|
83
|
|
|
|
|
84
|
|
|
||||
Other assets
|
|
106
|
|
|
|
|
106
|
|
|
|
|
106
|
|
|
|
|
106
|
|
|
||||
Total assets of consolidated VIEs
|
|
$
|
4,127
|
|
|
|
|
$
|
4,996
|
|
|
|
|
$
|
3,614
|
|
|
|
|
$
|
4,785
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
|
$
|
343
|
|
|
|
|
$
|
343
|
|
|
|
|
$
|
318
|
|
|
|
|
$
|
318
|
|
|
Total liabilities of consolidated VIEs
|
|
$
|
343
|
|
|
|
|
$
|
343
|
|
|
|
|
$
|
318
|
|
|
|
|
$
|
318
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
5,792
|
|
|
|
|
$
|
6,367
|
|
|
|
|
$
|
6,104
|
|
|
|
|
$
|
6,937
|
|
|
Perpetual securities, available for sale
|
|
250
|
|
|
|
|
243
|
|
|
|
|
324
|
|
|
|
|
330
|
|
|
||||
Fixed maturities, held to maturity
|
|
2,491
|
|
|
|
|
2,578
|
|
|
|
|
2,564
|
|
|
|
|
2,829
|
|
|
||||
Total investments in VIEs not consolidated
|
|
$
|
8,533
|
|
|
|
|
$
|
9,188
|
|
|
|
|
$
|
8,992
|
|
|
|
|
$
|
10,096
|
|
|
Securities Lending Transactions Accounted for as Secured Borrowings
|
||||||||||||
December 31, 2014
|
||||||||||||
Remaining Contractual Maturity of the Agreements
|
||||||||||||
(In millions)
|
Overnight
and Continuous (1) |
|
Up to 30
days |
|
|
Total
|
||||||
Securities lending transactions:
|
|
|
|
|
|
|
||||||
Japan government and agencies
|
$
|
0
|
|
|
$
|
1,720
|
|
|
|
$
|
1,720
|
|
Public utilities
|
80
|
|
|
0
|
|
|
|
80
|
|
|||
Sovereign and supranational
|
1
|
|
|
0
|
|
|
|
1
|
|
|||
Banks/financial institutions
|
64
|
|
|
0
|
|
|
|
64
|
|
|||
Other corporate
|
328
|
|
|
0
|
|
|
|
328
|
|
|||
Total borrowings
|
$
|
473
|
|
|
$
|
1,720
|
|
|
|
$
|
2,193
|
|
Gross amount of recognized liabilities for securities lending transactions
|
|
$
|
2,193
|
|
||||||||
Amounts related to agreements not included in offsetting disclosure in Note 4
|
|
$
|
0
|
|
4.
|
DERIVATIVE INSTRUMENTS
|
|
September 30, 2015
|
December 31, 2014
|
||||||||||||||||||||||||||||
(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
|
|
$
|
2,277
|
|
|
|
$
|
175
|
|
|
|
$
|
(41
|
)
|
|
|
$
|
1,098
|
|
|
|
$
|
39
|
|
|
|
$
|
(36
|
)
|
|
A
|
|
21,079
|
|
|
|
702
|
|
|
|
(343
|
)
|
|
|
22,564
|
|
|
|
763
|
|
|
|
(2,387
|
)
|
|
||||||
Total
|
|
$
|
23,356
|
|
|
|
$
|
877
|
|
|
|
$
|
(384
|
)
|
|
|
$
|
23,662
|
|
|
|
$
|
802
|
|
|
|
$
|
(2,423
|
)
|
|
|
|
September 30, 2015
|
|
||||||||||||||||||||
(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
|
|
|
|
|
$
|
(18
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(18
|
)
|
|
Total cash flow hedges
|
|
75
|
|
|
|
|
(18
|
)
|
|
|
|
0
|
|
|
|
|
(18
|
)
|
|
||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
12,714
|
|
|
|
|
239
|
|
|
|
|
248
|
|
|
|
|
(9
|
)
|
|
||||
Foreign currency options
|
|
1,250
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
||||
Total fair value hedges
|
|
13,964
|
|
|
|
|
239
|
|
|
|
|
249
|
|
|
|
|
(10
|
)
|
|
||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
1,455
|
|
|
|
|
5
|
|
|
|
|
19
|
|
|
|
|
(14
|
)
|
|
||||
Foreign currency options
|
|
168
|
|
|
|
|
(3
|
)
|
|
|
|
4
|
|
|
|
|
(7
|
)
|
|
||||
Total net investment hedge
|
|
1,623
|
|
|
|
|
2
|
|
|
|
|
23
|
|
|
|
|
(21
|
)
|
|
||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
6,604
|
|
|
|
|
270
|
|
|
|
|
604
|
|
|
|
|
(334
|
)
|
|
||||
Foreign currency forwards
|
|
1,007
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
||||
Credit default swaps
|
|
83
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total non-qualifying strategies
|
|
7,694
|
|
|
|
|
270
|
|
|
|
|
605
|
|
|
|
|
(335
|
)
|
|
||||
Total derivatives
|
|
$
|
23,356
|
|
|
|
|
$
|
493
|
|
|
|
|
$
|
877
|
|
|
|
|
$
|
(384
|
)
|
|
Balance Sheet Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
$
|
16,776
|
|
|
|
|
$
|
877
|
|
|
|
|
$
|
877
|
|
|
|
|
$
|
0
|
|
|
Other liabilities
|
|
6,580
|
|
|
|
|
(384
|
)
|
|
|
|
0
|
|
|
|
|
(384
|
)
|
|
||||
Total derivatives
|
|
$
|
23,356
|
|
|
|
|
$
|
493
|
|
|
|
|
$
|
877
|
|
|
|
|
$
|
(384
|
)
|
|
|
|
December 31, 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
|
)
|
|
||||
Foreign currency forwards
|
|
784
|
|
|
|
|
(119
|
)
|
|
|
|
0
|
|
|
|
|
(119
|
)
|
|
||||
Foreign currency options
|
|
53
|
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
(1
|
)
|
|
||||
Credit default swaps
|
|
83
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
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
|
)
|
|
(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 |
||||||||||
Three Months Ended September 30, 2015:
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency
forwards |
Fixed-maturity securities
|
|
$
|
247
|
|
|
$
|
(28
|
)
|
|
$
|
275
|
|
|
$
|
(267
|
)
|
|
$
|
8
|
|
Foreign currency
options |
Fixed-maturity securities
|
|
(1
|
)
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Nine Months Ended September 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency forwards
|
Fixed-maturity securities
|
|
$
|
17
|
|
|
$
|
(60
|
)
|
|
$
|
77
|
|
|
$
|
(62
|
)
|
|
$
|
15
|
|
Foreign currency options
|
Fixed-maturity securities
|
|
(4
|
)
|
|
3
|
|
|
(7
|
)
|
|
7
|
|
|
0
|
|
|||||
Interest rate
swaptions |
Fixed-maturity securities
|
|
(95
|
)
|
|
19
|
|
|
(114
|
)
|
|
99
|
|
|
(15
|
)
|
|||||
Three Months Ended September 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency
forwards |
Fixed-maturity securities
|
|
$
|
(1,094
|
)
|
|
$
|
(1
|
)
|
|
$
|
(1,093
|
)
|
|
$
|
1,097
|
|
|
$
|
4
|
|
Foreign currency options
|
Fixed-maturity securities
|
|
(9
|
)
|
|
(9
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Interest rate
swaptions |
Fixed-maturity securities
|
|
(34
|
)
|
|
2
|
|
|
(36
|
)
|
|
37
|
|
|
1
|
|
|||||
Nine Months Ended September 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency forwards
|
Fixed-maturity securities
|
|
$
|
(631
|
)
|
|
$
|
(36
|
)
|
|
$
|
(595
|
)
|
|
$
|
624
|
|
|
$
|
29
|
|
Foreign currency options
|
Fixed-maturity securities
|
|
(8
|
)
|
|
(8
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Interest rate
swaptions |
Fixed-maturity securities
|
|
(160
|
)
|
|
(20
|
)
|
|
(140
|
)
|
|
150
|
|
|
10
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||||||||||
|
2015
|
2014
|
2015
|
2014
|
||||||||||||||||||||||||||||||||||||
(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) |
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
||||||||||||||||||||||||||||||||
Qualifying hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow
hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign
currency swaps |
|
$
|
0
|
|
|
|
$
|
(1
|
)
|
|
|
$
|
(1
|
)
|
|
|
$
|
(9
|
)
|
|
|
$
|
0
|
|
|
|
$
|
(3
|
)
|
|
|
$
|
(2
|
)
|
|
|
$
|
(8
|
)
|
|
Total cash flow
hedges |
|
0
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
(9
|
)
|
|
|
0
|
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
(8
|
)
|
|
||||||||
Fair value
hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign
currency forwards (2) |
|
(20
|
)
|
|
|
0
|
|
|
|
3
|
|
|
|
0
|
|
|
|
(45
|
)
|
|
|
0
|
|
|
|
(7
|
)
|
|
|
0
|
|
|
||||||||
Foreign
currency options (2) |
|
(1
|
)
|
|
|
0
|
|
|
|
(9
|
)
|
|
|
0
|
|
|
|
3
|
|
|
|
0
|
|
|
|
(8
|
)
|
|
|
0
|
|
|
||||||||
Interest rate
swaptions (2) |
|
0
|
|
|
|
0
|
|
|
|
3
|
|
|
|
0
|
|
|
|
4
|
|
|
|
0
|
|
|
|
(10
|
)
|
|
|
0
|
|
|
||||||||
Total fair value
hedges |
|
(21
|
)
|
|
|
0
|
|
|
|
(3
|
)
|
|
|
0
|
|
|
|
(38
|
)
|
|
|
0
|
|
|
|
(25
|
)
|
|
|
0
|
|
|
||||||||
Net investment
hedge: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-
derivative hedging instruments |
|
0
|
|
|
|
(4
|
)
|
|
|
0
|
|
|
|
32
|
|
|
|
0
|
|
|
|
1
|
|
|
|
0
|
|
|
|
4
|
|
|
||||||||
Foreign
currency forwards |
|
0
|
|
|
|
(35
|
)
|
|
|
0
|
|
|
|
11
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
0
|
|
|
|
(2
|
)
|
|
||||||||
Foreign
currency options |
|
0
|
|
|
|
(3
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(3
|
)
|
|
|
0
|
|
|
|
(3
|
)
|
|
||||||||
Total net
investment hedge |
|
0
|
|
|
|
(42
|
)
|
|
|
0
|
|
|
|
43
|
|
|
|
0
|
|
|
|
(3
|
)
|
|
|
0
|
|
|
|
(1
|
)
|
|
||||||||
Non-qualifying
strategies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign
currency swaps |
|
2
|
|
|
|
0
|
|
|
|
44
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
48
|
|
|
|
0
|
|
|
||||||||
Foreign
currency forwards |
|
17
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
16
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||||
Credit
default swaps |
|
(1
|
)
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
2
|
|
|
|
0
|
|
|
||||||||
Interest rate
swaps |
|
0
|
|
|
|
0
|
|
|
|
(2
|
)
|
|
|
0
|
|
|
|
5
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
0
|
|
|
||||||||
Futures
|
|
0
|
|
|
|
0
|
|
|
|
(54
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(89
|
)
|
|
|
0
|
|
|
||||||||
Total non-
qualifying strategies |
|
18
|
|
|
|
0
|
|
|
|
(13
|
)
|
|
|
0
|
|
|
|
21
|
|
|
|
0
|
|
|
|
(40
|
)
|
|
|
0
|
|
|
||||||||
Total
|
|
$
|
(3
|
)
|
|
|
$
|
(43
|
)
|
|
|
$
|
(17
|
)
|
|
|
$
|
34
|
|
|
|
$
|
(17
|
)
|
|
|
$
|
(6
|
)
|
|
|
$
|
(67
|
)
|
|
|
$
|
(9
|
)
|
|
September 30, 2015
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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
|
|
$
|
604
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
604
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(331
|
)
|
|
|
|
$
|
273
|
|
|
Foreign currency forwards
|
|
268
|
|
|
|
|
0
|
|
|
|
|
268
|
|
|
|
|
0
|
|
|
|
(290
|
)
|
|
|
|
(22
|
)
|
|
||||||
Foreign currency options
|
|
5
|
|
|
|
|
0
|
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
|
4
|
|
|
||||||
Total derivative assets,
subject to a master netting arrangement or offsetting arrangement |
|
877
|
|
|
|
|
0
|
|
|
|
|
877
|
|
|
|
|
0
|
|
|
|
(622
|
)
|
(1)
|
|
|
255
|
|
|
||||||
Securities lending and
similar arrangements |
|
885
|
|
|
|
|
0
|
|
|
|
|
885
|
|
|
|
|
0
|
|
|
|
(885
|
)
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
1,762
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
1,762
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(1,507
|
)
|
|
|
|
$
|
255
|
|
|
December 31, 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
|
|
|
September 30, 2015
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
(352
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(352
|
)
|
|
|
|
$
|
0
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(352
|
)
|
|
Foreign currency forwards
|
|
(24
|
)
|
|
|
|
0
|
|
|
|
|
(24
|
)
|
|
|
|
0
|
|
|
|
5
|
|
|
|
|
(19
|
)
|
|
||||||
Foreign currency options
|
|
(8
|
)
|
|
|
|
0
|
|
|
|
|
(8
|
)
|
|
|
|
0
|
|
|
|
2
|
|
|
|
|
(6
|
)
|
|
||||||
Total derivative liabilities,
subject to a master netting arrangement or offsetting arrangement |
|
(384
|
)
|
|
|
|
0
|
|
|
|
|
(384
|
)
|
|
|
|
0
|
|
|
|
7
|
|
(1)
|
|
|
(377
|
)
|
|
||||||
Securities lending and
similar arrangements |
|
(907
|
)
|
|
|
|
0
|
|
|
|
|
(907
|
)
|
|
|
|
885
|
|
|
|
0
|
|
|
|
|
(22
|
)
|
|
||||||
Total
|
|
$
|
(1,291
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(1,291
|
)
|
|
|
|
$
|
885
|
|
|
|
$
|
7
|
|
|
|
|
$
|
(399
|
)
|
|
December 31, 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
|
)
|
|
5.
|
FAIR VALUE MEASUREMENTS
|
|
September 30, 2015
|
||||||||||||||||||||||
(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
|
|
$
|
17,920
|
|
|
|
|
$
|
545
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
18,465
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,166
|
|
|
|
|
0
|
|
|
|
|
1,166
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
371
|
|
|
|
|
220
|
|
|
|
|
591
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
7,848
|
|
|
|
|
0
|
|
|
|
|
7,848
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,421
|
|
|
|
|
0
|
|
|
|
|
1,421
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
6,235
|
|
|
|
|
26
|
|
|
|
|
6,261
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
29,354
|
|
|
|
|
0
|
|
|
|
|
29,354
|
|
|
||||
Total fixed maturities
|
|
17,920
|
|
|
|
|
46,940
|
|
|
|
|
246
|
|
|
|
|
65,106
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
1,964
|
|
|
|
|
0
|
|
|
|
|
1,964
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
202
|
|
|
|
|
0
|
|
|
|
|
202
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
2,166
|
|
|
|
|
0
|
|
|
|
|
2,166
|
|
|
||||
Equity securities
|
|
122
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|
|
131
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
498
|
|
|
|
|
106
|
|
|
|
|
604
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
268
|
|
|
|
|
0
|
|
|
|
|
268
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
|
5
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
771
|
|
|
|
|
106
|
|
|
|
|
877
|
|
|
||||
Other investments
|
|
182
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
182
|
|
|
||||
Cash and cash equivalents
|
|
3,520
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3,520
|
|
|
||||
Total assets
|
|
$
|
21,744
|
|
|
|
|
$
|
49,883
|
|
|
|
|
$
|
355
|
|
|
|
|
$
|
71,982
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
9
|
|
|
|
|
$
|
343
|
|
|
|
|
$
|
352
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
24
|
|
|
|
|
0
|
|
|
|
|
24
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
8
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
41
|
|
|
|
|
$
|
343
|
|
|
|
|
$
|
384
|
|
|
|
December 31, 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
|
|
|
|
September 30, 2015
|
|||||||||||||||||||||||||||
(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
|
|
$
|
20,115
|
|
|
|
$
|
22,991
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
22,991
|
|
|
Municipalities
|
|
345
|
|
|
|
0
|
|
|
|
|
409
|
|
|
|
|
0
|
|
|
|
|
409
|
|
|
|||||
Mortgage and asset-backed
securities |
|
38
|
|
|
|
0
|
|
|
|
|
13
|
|
|
|
|
27
|
|
|
|
|
40
|
|
|
|||||
Public utilities
|
|
3,108
|
|
|
|
0
|
|
|
|
|
3,128
|
|
|
|
|
0
|
|
|
|
|
3,128
|
|
|
|||||
Sovereign and
supranational |
|
2,569
|
|
|
|
0
|
|
|
|
|
2,686
|
|
|
|
|
0
|
|
|
|
|
2,686
|
|
|
|||||
Banks/financial institutions
|
|
4,539
|
|
|
|
0
|
|
|
|
|
4,544
|
|
|
|
|
0
|
|
|
|
|
4,544
|
|
|
|||||
Other corporate
|
|
3,015
|
|
|
|
0
|
|
|
|
|
3,150
|
|
|
|
|
0
|
|
|
|
|
3,150
|
|
|
|||||
Other investments
|
|
66
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
66
|
|
|
|
|
66
|
|
|
|||||
Total assets
|
|
$
|
33,795
|
|
|
|
$
|
22,991
|
|
|
|
|
$
|
13,930
|
|
|
|
|
$
|
93
|
|
|
|
|
$
|
37,014
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
6,284
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
6,156
|
|
|
|
|
$
|
6,156
|
|
|
Notes payable
(excluding capital leases) |
|
4,993
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
5,277
|
|
|
|
|
5,277
|
|
|
|||||
Total liabilities
|
|
$
|
11,277
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
11,433
|
|
|
|
|
$
|
11,433
|
|
|
|
December 31, 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
|
|
|
|
|
September 30, 2015
|
||||||||||||||||||||||
(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
|
|
|
$
|
17,920
|
|
|
|
|
$
|
545
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
18,465
|
|
|
Total government and agencies
|
|
|
17,920
|
|
|
|
|
545
|
|
|
|
|
0
|
|
|
|
|
18,465
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,166
|
|
|
|
|
0
|
|
|
|
|
1,166
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,166
|
|
|
|
|
0
|
|
|
|
|
1,166
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
371
|
|
|
|
|
0
|
|
|
|
|
371
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
220
|
|
|
|
|
220
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
371
|
|
|
|
|
220
|
|
|
|
|
591
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7,848
|
|
|
|
|
0
|
|
|
|
|
7,848
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
7,848
|
|
|
|
|
0
|
|
|
|
|
7,848
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,421
|
|
|
|
|
0
|
|
|
|
|
1,421
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,421
|
|
|
|
|
0
|
|
|
|
|
1,421
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
6,235
|
|
|
|
|
0
|
|
|
|
|
6,235
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
26
|
|
|
|
|
26
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
6,235
|
|
|
|
|
26
|
|
|
|
|
6,261
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
29,304
|
|
|
|
|
0
|
|
|
|
|
29,304
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
50
|
|
|
|
|
0
|
|
|
|
|
50
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
29,354
|
|
|
|
|
0
|
|
|
|
|
29,354
|
|
|
||||
Total fixed maturities
|
|
|
17,920
|
|
|
|
|
46,940
|
|
|
|
|
246
|
|
|
|
|
65,106
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,964
|
|
|
|
|
0
|
|
|
|
|
1,964
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
1,964
|
|
|
|
|
0
|
|
|
|
|
1,964
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
202
|
|
|
|
|
0
|
|
|
|
|
202
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
202
|
|
|
|
|
0
|
|
|
|
|
202
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
2,166
|
|
|
|
|
0
|
|
|
|
|
2,166
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
122
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
128
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
||||
Total equity securities
|
|
|
122
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|
|
131
|
|
|
||||
Total securities available for sale
|
|
|
$
|
18,042
|
|
|
|
|
$
|
49,112
|
|
|
|
|
$
|
249
|
|
|
|
|
$
|
67,403
|
|
|
|
|
September 30, 2015
|
||||||||||||||||||||||
(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
|
|
|
$
|
22,991
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
22,991
|
|
|
Total government and agencies
|
|
|
22,991
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
22,991
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
409
|
|
|
|
|
0
|
|
|
|
|
409
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
409
|
|
|
|
|
0
|
|
|
|
|
409
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
13
|
|
|
|
|
0
|
|
|
|
|
13
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
27
|
|
|
|
|
27
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
13
|
|
|
|
|
27
|
|
|
|
|
40
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,128
|
|
|
|
|
0
|
|
|
|
|
3,128
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
3,128
|
|
|
|
|
0
|
|
|
|
|
3,128
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,686
|
|
|
|
|
0
|
|
|
|
|
2,686
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
2,686
|
|
|
|
|
0
|
|
|
|
|
2,686
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
4,544
|
|
|
|
|
0
|
|
|
|
|
4,544
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
4,544
|
|
|
|
|
0
|
|
|
|
|
4,544
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,123
|
|
|
|
|
0
|
|
|
|
|
3,123
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
27
|
|
|
|
|
0
|
|
|
|
|
27
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
3,150
|
|
|
|
|
0
|
|
|
|
|
3,150
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
22,991
|
|
|
|
|
$
|
13,930
|
|
|
|
|
$
|
27
|
|
|
|
|
$
|
36,948
|
|
|
|
|
December 31, 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
|
|
|
|
|
December 31, 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
|
|
|
Three Months Ended
September 30, 2015 |
||||||||||||||||||||||||||||||||||||||||||||
|
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
|
$
|
214
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
25
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
0
|
|
|
$
|
(223
|
)
|
|
$
|
1
|
|
|
$
|
20
|
|
|
Realized investment gains (losses) included
in earnings |
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(13
|
)
|
|
(1
|
)
|
|
(14
|
)
|
|
|||||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
6
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
6
|
|
|
|||||||||||
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
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Settlements
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Balance, end of period
|
$
|
220
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
26
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
0
|
|
|
$
|
(237
|
)
|
|
$
|
0
|
|
|
$
|
12
|
|
|
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
|
|
|
$
|
0
|
|
|
$
|
(14
|
)
|
|
$
|
(1
|
)
|
|
$
|
(15
|
)
|
|
Three Months Ended
September 30, 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
|
$
|
266
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
25
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
(1
|
)
|
|
$
|
11
|
|
|
$
|
0
|
|
|
$
|
304
|
|
|
Realized investment gains (losses) included
in earnings |
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
(93
|
)
|
|
(1
|
)
|
|
(93
|
)
|
|
|||||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
(18
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(9
|
)
|
|
0
|
|
|
(27
|
)
|
|
|||||||||||
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
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Settlements
|
(3
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(3
|
)
|
|
|||||||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Balance, end of period
|
$
|
245
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
25
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
0
|
|
|
$
|
(91
|
)
|
|
$
|
(1
|
)
|
|
$
|
181
|
|
|
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
|
|
|
$
|
(93
|
)
|
|
$
|
(1
|
)
|
|
$
|
(93
|
)
|
|
Nine Months Ended
September 30, 2015 |
||||||||||||||||||||||||||||||||||||||||||||
|
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
|
$
|
223
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
26
|
|
|
$
|
0
|
|
|
$
|
149
|
|
|
$
|
3
|
|
|
$
|
0
|
|
|
$
|
(212
|
)
|
|
$
|
0
|
|
|
$
|
189
|
|
|
Realized investment gains (losses) included
in earnings |
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(38
|
)
|
|
0
|
|
|
(38
|
)
|
|
|||||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
(1
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
|
0
|
|
|
(3
|
)
|
|
0
|
|
|
(6
|
)
|
|
|||||||||||
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
|
|
|
(147
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(147
|
)
|
|
|||||||||||
Settlements
|
(2
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
16
|
|
|
0
|
|
|
14
|
|
|
|||||||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Balance, end of period
|
$
|
220
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
26
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
0
|
|
|
$
|
(237
|
)
|
|
$
|
0
|
|
|
$
|
12
|
|
|
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
|
|
|
$
|
0
|
|
|
$
|
(39
|
)
|
|
$
|
0
|
|
|
$
|
(39
|
)
|
|
Nine Months Ended
September 30, 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
|
)
|
|
(79
|
)
|
|
2
|
|
|
(78
|
)
|
|
|||||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
(115
|
)
|
|
0
|
|
|
0
|
|
|
2
|
|
|
0
|
|
|
8
|
|
|
0
|
|
|
0
|
|
|
(8
|
)
|
|
0
|
|
|
(113
|
)
|
|
|||||||||||
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
|
(9
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
95
|
|
|
0
|
|
|
86
|
|
|
|||||||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||||||
Balance, end of period
|
$
|
245
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
25
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
0
|
|
|
$
|
(91
|
)
|
|
$
|
(1
|
)
|
|
$
|
181
|
|
|
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
|
)
|
|
$
|
(79
|
)
|
|
$
|
2
|
|
|
$
|
(78
|
)
|
|
September 30, 2015
|
|||||||||||||
(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
|
|
|
$
|
220
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
Banks/financial institutions
|
|
|
26
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
|
Equity securities
|
|
|
3
|
|
|
|
Net asset value
|
|
Offered quotes
|
|
$1 - $680 ($7)
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
4
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.00% - 2.52%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.51% - 1.36%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
15 - 103 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.16%
|
(c)
|
||
|
|
|
102
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.00% - 2.52%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.51% - 1.36%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.16%
|
(c)
|
||
Total assets
|
|
|
$
|
355
|
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
$
|
183
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.00% - 2.52%
|
(a)
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.51% - 1.36%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
15 - 103 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.16%
|
(c)
|
||
|
|
|
142
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.00% - 2.52%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.51% - 1.36%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
67 - 251 bps
|
|
||
|
|
|
18
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.00% - 2.52%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.51% - 1.36%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.16%
|
(c)
|
||
Total liabilities
|
|
|
$
|
343
|
|
|
|
|
|
|
|
|
|
December 31, 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
|
|
|
|
|
|
|
|
|
|
December 31, 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
|
|
|
|
|
|
|
|
|
|
6.
|
REINSURANCE
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
Direct premium income
|
|
$
|
4,464
|
|
|
|
|
$
|
4,918
|
|
|
|
|
$
|
13,426
|
|
|
|
|
$
|
14,820
|
|
|
Ceded to other companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ceded Aflac Japan closed blocks
|
|
(130
|
)
|
|
|
|
(70
|
)
|
|
|
|
(352
|
)
|
|
|
|
(215
|
)
|
|
||||
Other
|
|
(10
|
)
|
|
|
|
(10
|
)
|
|
|
|
(28
|
)
|
|
|
|
(30
|
)
|
|
||||
Assumed from other companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retrocession activities
|
|
54
|
|
|
|
|
0
|
|
|
|
|
124
|
|
|
|
|
0
|
|
|
||||
Other
|
|
2
|
|
|
|
|
3
|
|
|
|
|
6
|
|
|
|
|
8
|
|
|
||||
Net premium income
|
|
$
|
4,380
|
|
|
|
|
$
|
4,841
|
|
|
|
|
$
|
13,176
|
|
|
|
|
$
|
14,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Direct benefits and claims
|
|
$
|
3,000
|
|
|
|
|
$
|
3,425
|
|
|
|
|
$
|
9,037
|
|
|
|
|
$
|
10,075
|
|
|
Ceded benefits and change in reserves for future benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ceded Aflac Japan closed blocks
|
|
(119
|
)
|
|
|
|
(63
|
)
|
|
|
|
(320
|
)
|
|
|
|
(192
|
)
|
|
||||
Other
|
|
8
|
|
|
|
|
(9
|
)
|
|
|
|
12
|
|
|
|
|
(22
|
)
|
|
||||
Assumed from other companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retrocession activities
|
|
50
|
|
|
|
|
0
|
|
|
|
|
116
|
|
|
|
|
0
|
|
|
||||
Other
|
|
(12
|
)
|
|
|
|
2
|
|
|
|
|
(29
|
)
|
|
|
|
7
|
|
|
||||
Benefits and claims, net
|
|
$
|
2,927
|
|
|
|
|
$
|
3,355
|
|
|
|
|
$
|
8,816
|
|
|
|
|
$
|
9,868
|
|
|
7.
|
NOTES PAYABLE
|
(In millions)
|
September 30, 2015
|
|
December 31, 2014
|
||||||||
3.45% senior notes paid August 2015
|
|
$
|
0
|
|
|
|
|
$
|
300
|
|
|
2.65% senior notes due February 2017
|
|
652
|
|
(1)
|
|
|
653
|
|
(1)
|
||
8.50% senior notes due May 2019
|
|
0
|
|
(2)
|
|
|
850
|
|
|
||
2.40% senior notes due March 2020
|
|
550
|
|
|
|
|
0
|
|
|
||
4.00% senior notes due February 2022
|
|
350
|
|
(3)
|
|
|
350
|
|
(3)
|
||
3.625% senior notes due June 2023
|
|
700
|
|
|
|
|
700
|
|
|
||
3.625% senior notes due November 2024
|
|
749
|
|
(3)
|
|
|
749
|
|
(3)
|
||
3.25% senior notes due March 2025
|
|
448
|
|
(3)
|
|
|
0
|
|
|
||
6.90% senior notes due December 2039
|
|
397
|
|
(3)
|
|
|
397
|
|
(3)
|
||
6.45% senior notes due August 2040
|
|
448
|
|
(3)
|
|
|
448
|
|
(3)
|
||
5.50% subordinated debentures due September 2052
|
|
500
|
|
|
|
|
500
|
|
|
||
Yen-denominated Uridashi notes:
|
|
|
|
|
|
|
|
||||
2.26% notes due September 2016 (principal amount 8 billion yen)
|
|
67
|
|
|
|
|
66
|
|
|
||
Yen-denominated Samurai notes:
|
|
|
|
|
|
|
|
||||
1.84% notes due July 2016 (principal amount 15.8 billion yen)
|
|
132
|
|
|
|
|
131
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
|
|
|
||||
3.60% loan paid July 2015 (principal amount 10 billion yen)
|
|
0
|
|
|
|
|
83
|
|
|
||
3.00% loan paid August 2015 (principal amount 5 billion yen)
|
|
0
|
|
|
|
|
41
|
|
|
||
Capitalized lease obligations payable through 2022
|
|
16
|
|
|
|
|
14
|
|
|
||
Total notes payable
|
|
$
|
5,009
|
|
|
|
|
$
|
5,282
|
|
|
8.
|
SHAREHOLDERS’ EQUITY
|
(In thousands of shares)
|
2015
|
|
2014
|
||
Common stock - issued:
|
|
|
|
||
Balance, beginning of period
|
668,132
|
|
|
667,046
|
|
Exercise of stock options and issuance of restricted shares
|
1,377
|
|
|
921
|
|
Balance, end of period
|
669,509
|
|
|
667,967
|
|
Treasury stock:
|
|
|
|
||
Balance, beginning of period
|
225,687
|
|
|
207,633
|
|
Purchases of treasury stock:
|
|
|
|
||
Open market
|
17,421
|
|
|
11,070
|
|
Other
|
241
|
|
|
132
|
|
Dispositions of treasury stock:
|
|
|
|
||
Shares issued to AFL Stock Plan
|
(919
|
)
|
|
(930
|
)
|
Exercise of stock options
|
(375
|
)
|
|
(316
|
)
|
Other
|
(113
|
)
|
|
(121
|
)
|
Balance, end of period
|
241,942
|
|
|
217,468
|
|
Shares outstanding, end of period
|
427,567
|
|
|
450,499
|
|
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|
|||||||||||||||
(In thousands)
|
2015
|
|
2014
|
2015
|
|
2014
|
||||||||||||
Anti-dilutive share-based awards
|
|
2,126
|
|
|
|
|
1,486
|
|
|
|
1,798
|
|
|
|
|
903
|
|
|
Three Months Ended
September 30, 2015 |
|||||||||||||||||||||||||||||
(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
|
|
$
|
(2,725
|
)
|
|
|
|
$
|
3,384
|
|
|
|
|
$
|
(27
|
)
|
|
|
|
$
|
(125
|
)
|
|
|
|
$
|
507
|
|
|
Other comprehensive
income before reclassification |
|
192
|
|
|
|
|
(260
|
)
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
(69
|
)
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income |
|
0
|
|
|
|
|
90
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
90
|
|
|
|||||
Net current-period other
comprehensive income |
|
192
|
|
|
|
|
(170
|
)
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
21
|
|
|
|||||
Balance, end of period
|
|
$
|
(2,533
|
)
|
|
|
|
$
|
3,214
|
|
|
|
|
$
|
(28
|
)
|
|
|
|
$
|
(125
|
)
|
|
|
|
$
|
528
|
|
|
Three Months Ended
September 30, 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
|
|
$
|
(1,216
|
)
|
|
|
|
$
|
2,915
|
|
|
|
|
$
|
(11
|
)
|
|
|
|
$
|
(82
|
)
|
|
|
|
$
|
1,606
|
|
|
Other comprehensive
income before reclassification |
|
(589
|
)
|
|
|
|
505
|
|
|
|
|
(6
|
)
|
|
|
|
1
|
|
|
|
|
(89
|
)
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income |
|
0
|
|
|
|
|
(18
|
)
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
(17
|
)
|
|
|||||
Net current-period other
comprehensive income |
|
(589
|
)
|
|
|
|
487
|
|
|
|
|
(6
|
)
|
|
|
|
2
|
|
|
|
|
(106
|
)
|
|
|||||
Balance, end of period
|
|
$
|
(1,805
|
)
|
|
|
|
$
|
3,402
|
|
|
|
|
$
|
(17
|
)
|
|
|
|
$
|
(80
|
)
|
|
|
|
$
|
1,500
|
|
|
Nine Months Ended
September 30, 2015 |
|||||||||||||||||||||||||||||
(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
|
|
$
|
(2,541
|
)
|
|
|
|
$
|
4,672
|
|
|
|
|
$
|
(26
|
)
|
|
|
|
$
|
(126
|
)
|
|
|
|
$
|
1,979
|
|
|
Other comprehensive
income before reclassification |
|
8
|
|
|
|
|
(1,471
|
)
|
|
|
|
(2
|
)
|
|
|
|
0
|
|
|
|
|
(1,465
|
)
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income |
|
0
|
|
|
|
|
13
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
14
|
|
|
|||||
Net current-period other
comprehensive income |
|
8
|
|
|
|
|
(1,458
|
)
|
|
|
|
(2
|
)
|
|
|
|
1
|
|
|
|
|
(1,451
|
)
|
|
|||||
Balance, end of period
|
|
$
|
(2,533
|
)
|
|
|
|
$
|
3,214
|
|
|
|
|
$
|
(28
|
)
|
|
|
|
$
|
(125
|
)
|
|
|
|
$
|
528
|
|
|
Nine Months Ended
September 30, 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 |
|
(300
|
)
|
|
|
|
2,379
|
|
|
|
|
(5
|
)
|
|
|
|
2
|
|
|
|
|
2,076
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income |
|
0
|
|
|
|
|
(12
|
)
|
|
|
|
0
|
|
|
|
|
(1
|
)
|
|
|
|
(13
|
)
|
|
|||||
Net current-period other
comprehensive income |
|
(300
|
)
|
|
|
|
2,367
|
|
|
|
|
(5
|
)
|
|
|
|
1
|
|
|
|
|
2,063
|
|
|
|||||
Balance, end of period
|
|
$
|
(1,805
|
)
|
|
|
|
$
|
3,402
|
|
|
|
|
$
|
(17
|
)
|
|
|
|
$
|
(80
|
)
|
|
|
|
$
|
1,500
|
|
|
(In millions)
|
Three Months Ended
September 30, 2015 |
|
||||
Details about Accumulated Other Comprehensive Income Components
|
Amount Reclassified from Accumulated Other Comprehensive Income
|
Affected Line Item in the
Statements of Earnings |
||||
Unrealized gains (losses) on available-for-sale
securities |
|
$
|
(1
|
)
|
|
Sales and redemptions
|
|
|
(137
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
(138
|
)
|
|
Total before tax
|
|
|
|
48
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(90
|
)
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(4
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
4
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
0
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
0
|
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(90
|
)
|
|
Net of tax
|
(In millions)
|
Three Months Ended
September 30, 2014 |
|
||||
Details about Accumulated Other Comprehensive Income Components
|
Amount Reclassified from Accumulated Other Comprehensive Income
|
Affected Line Item in the
Statements of Earnings |
||||
Unrealized gains (losses) on available-for-sale
securities |
|
$
|
27
|
|
|
Sales and redemptions
|
|
|
0
|
|
|
Other-than-temporary impairment
losses realized |
|
|
|
27
|
|
|
Total before tax
|
|
|
|
(9
|
)
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
18
|
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(5
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
4
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
0
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(1
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
17
|
|
|
Net of tax
|
(In millions)
|
Nine Months Ended
September 30, 2015 |
|
||||
Details about Accumulated Other Comprehensive Income Components
|
Amount Reclassified from Accumulated Other Comprehensive Income
|
Affected Line Item in the
Statements of Earnings |
||||
Unrealized gains (losses) on available-for-sale
securities |
|
$
|
123
|
|
|
Sales and redemptions
|
|
|
(143
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
(20
|
)
|
|
Total before tax
|
|
|
|
7
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(13
|
)
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(13
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
12
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
0
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(1
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(14
|
)
|
|
Net of tax
|
(In millions)
|
Nine Months Ended
September 30, 2014 |
|
||||
Details about Accumulated Other Comprehensive Income Components
|
Amount Reclassified from Accumulated Other Comprehensive Income
|
Affected Line Item in the
Statements of Earnings |
||||
Unrealized gains (losses) on available-for-sale
securities |
|
$
|
21
|
|
|
Sales and redemptions
|
|
|
(3
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
18
|
|
|
Total before tax
|
|
|
|
(6
|
)
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
12
|
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(11
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
13
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
(1
|
)
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
1
|
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
13
|
|
|
Net of tax
|
|
Stock
Option Shares (in thousands) |
|
Weighted-Average
Remaining Term (in years) |
|
Aggregate
Intrinsic Value (in millions) |
|
Weighted-Average
Exercise Price Per Share |
|||||||||||||
Outstanding
|
|
8,303
|
|
|
|
|
4.6
|
|
|
|
$
|
71
|
|
|
|
|
$
|
50.82
|
|
|
Exercisable
|
|
6,374
|
|
|
|
|
3.5
|
|
|
|
67
|
|
|
|
|
48.35
|
|
|
10.
|
BENEFIT PLANS
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||||||||||
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||
(In millions)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
Components of net periodic
benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
|
|
$
|
4
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
5
|
|
|
|
|
$
|
5
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
0
|
|
|
Interest cost
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
7
|
|
|
|
|
(4
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Expected return on plan
assets |
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(5
|
)
|
|
|
|
(5
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Amortization of net actuarial
loss |
|
|
0
|
|
|
|
|
1
|
|
|
|
|
4
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||||
Amortization of prior service
cost (credit) |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
|
||||||
Net periodic (benefit) cost
|
|
|
$
|
4
|
|
|
|
|
$
|
4
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
(1
|
)
|
|
|
|
$
|
(3
|
)
|
|
|
|
$
|
(3
|
)
|
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||||||
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||
(In millions)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||||||||||
Components of net periodic
benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
|
|
$
|
11
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
17
|
|
|
|
|
$
|
15
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
1
|
|
|
Interest cost
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
23
|
|
|
|
|
11
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||||
Expected return on plan
assets |
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
(16
|
)
|
|
|
|
(15
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Amortization of net actuarial
loss |
|
|
1
|
|
|
|
|
1
|
|
|
|
|
11
|
|
|
|
|
8
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
||||||
Amortization of prior service
cost (credit) |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(12
|
)
|
|
|
|
(13
|
)
|
|
||||||
Net periodic (benefit) cost
|
|
|
$
|
13
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
35
|
|
|
|
|
$
|
19
|
|
|
|
|
$
|
(9
|
)
|
|
|
|
$
|
(9
|
)
|
|
11.
|
COMMITMENTS AND CONTINGENT LIABILITIES
|
•
|
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
|
|
Per Diluted Share
|
|
In Millions
|
|
Per Diluted Share
|
|||||||||||||||||||||||||
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||||||||||
Operating earnings
|
$
|
672
|
|
|
$
|
685
|
|
|
$
|
1.56
|
|
|
$
|
1.51
|
|
|
$
|
2,001
|
|
|
$
|
2,216
|
|
|
$
|
4.60
|
|
|
$
|
4.86
|
|
|
Items impacting net earnings, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Securities transactions and impairments
|
(72
|
)
|
|
21
|
|
|
(.16
|
)
|
|
.05
|
|
|
28
|
|
|
91
|
|
|
.06
|
|
|
.20
|
|
|
||||||||
Impact of derivative and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Hedge costs related to foreign currency investments
|
(18
|
)
|
|
(1
|
)
|
|
(.04
|
)
|
|
.00
|
|
|
(39
|
)
|
|
(23
|
)
|
|
(.09
|
)
|
|
(.05
|
)
|
|
||||||||
Other derivative and hedging activities
|
2
|
|
(1)
|
(16
|
)
|
(1)
|
.00
|
|
|
(.04
|
)
|
|
(12
|
)
|
(1)
|
(40
|
)
|
(1)
|
(.03
|
)
|
|
(.09
|
)
|
|
||||||||
Other and non-recurring income (loss)
|
(17
|
)
|
(2)
|
17
|
|
|
(.04
|
)
|
|
.04
|
|
|
(175
|
)
|
(2)
|
4
|
|
|
(.40
|
)
|
|
.01
|
|
|
||||||||
Net earnings
|
$
|
567
|
|
|
$
|
706
|
|
|
$
|
1.32
|
|
|
$
|
1.56
|
|
|
$
|
1,803
|
|
|
$
|
2,248
|
|
|
$
|
4.14
|
|
|
$
|
4.93
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||
Corporate bonds
|
$
|
5
|
|
|
$
|
0
|
|
|
$
|
7
|
|
|
$
|
31
|
|
|
Bank/financial institution bonds
|
131
|
|
|
0
|
|
|
135
|
|
|
0
|
|
|
||||
Equity securities
|
1
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
||||
Total other-than-temporary impairment losses realized
(1)
|
$
|
137
|
|
|
$
|
0
|
|
|
$
|
143
|
|
|
$
|
31
|
|
|
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
|
)
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||
Net premium income
|
$
|
2,981
|
|
|
$
|
3,534
|
|
|
$
|
9,037
|
|
|
$
|
10,672
|
|
|
Net investment income:
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated investment income
|
299
|
|
|
367
|
|
|
924
|
|
|
1,096
|
|
|
||||
Dollar-denominated investment income
|
307
|
|
|
309
|
|
|
900
|
|
|
923
|
|
|
||||
Net investment income
|
606
|
|
|
676
|
|
|
1,824
|
|
|
2,019
|
|
|
||||
Other income (loss)
|
7
|
|
|
9
|
|
|
22
|
|
|
25
|
|
|
||||
Total operating revenues
|
3,594
|
|
|
4,219
|
|
|
10,883
|
|
|
12,716
|
|
|
||||
Benefits and claims, net
|
2,139
|
|
|
2,633
|
|
|
6,538
|
|
|
7,752
|
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of deferred policy acquisition costs
|
144
|
|
|
159
|
|
|
434
|
|
|
491
|
|
|
||||
Insurance commissions
|
178
|
|
|
212
|
|
|
540
|
|
|
654
|
|
|
||||
Insurance and other expenses
|
344
|
|
|
387
|
|
|
1,006
|
|
|
1,131
|
|
|
||||
Total operating expenses
|
666
|
|
|
758
|
|
|
1,980
|
|
|
2,276
|
|
|
||||
Total benefits and expenses
|
2,805
|
|
|
3,391
|
|
|
8,518
|
|
|
10,028
|
|
|
||||
Pretax operating earnings
(1)
|
$
|
789
|
|
|
$
|
828
|
|
|
$
|
2,365
|
|
|
$
|
2,688
|
|
|
Weighted-average yen/dollar exchange rate
|
122.15
|
|
|
103.92
|
|
|
120.81
|
|
|
102.89
|
|
|
|
In Dollars
|
In Yen
|
|||||||||||||||||||||
Percentage change over
previous period:
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
||||||||||||||||
2015
|
|
2014
|
|
2015
|
|
2014
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|||||||||
Net premium income
|
(15.7
|
)%
|
|
(5.4
|
)%
|
|
(15.3
|
)%
|
|
(6.0
|
)%
|
(.8
|
)%
|
|
(.7
|
)%
|
|
(.6
|
)%
|
|
.1
|
%
|
|
Net investment income
|
(10.4
|
)
|
|
2.7
|
|
|
(9.7
|
)
|
|
1.6
|
|
5.4
|
|
|
7.8
|
|
|
6.1
|
|
|
8.2
|
|
|
Total operating revenues
|
(14.8
|
)
|
|
(4.2
|
)
|
|
(14.4
|
)
|
|
(5.0
|
)
|
.3
|
|
|
.6
|
|
|
.5
|
|
|
1.2
|
|
|
Pretax operating
earnings
(1)
|
(4.7
|
)
|
|
(2.1
|
)
|
|
(12.0
|
)
|
|
(3.1
|
)
|
12.1
|
|
|
2.8
|
|
|
3.3
|
|
|
3.1
|
|
|
|
Including Foreign
Currency Changes |
|
|
Excluding Foreign
Currency Changes
(2)
|
|
||||||||||||||||||||
|
Three Months
|
|
|
Nine Months
|
|
Three Months
|
|
|
Nine Months
|
||||||||||||||||
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
||
Net investment income
|
5.4
|
%
|
|
7.8
|
%
|
|
6.1
|
%
|
|
8.2
|
%
|
|
(2.6
|
)
|
%
|
|
5.3
|
%
|
|
(1.7
|
)
|
%
|
|
5.2
|
%
|
Total operating revenues
|
.3
|
|
|
.6
|
|
|
.5
|
|
|
1.2
|
|
|
(1.0
|
)
|
|
|
.2
|
|
|
(.7
|
)
|
|
|
.7
|
|
Pretax operating earnings
(1)
|
12.1
|
|
|
2.8
|
|
|
3.3
|
|
|
3.1
|
|
|
5.8
|
|
|
|
.9
|
|
|
(2.3
|
)
|
|
|
1.1
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
||||||
Ratios to total revenues:
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
Benefits and claims, net
|
59.5
|
%
|
|
62.4
|
%
|
|
60.1
|
%
|
|
61.0
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred policy acquisition costs
|
4.0
|
|
|
3.8
|
|
|
4.0
|
|
|
3.9
|
|
|
Insurance commissions
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|
5.1
|
|
|
Insurance and other expenses
|
9.6
|
|
|
9.2
|
|
|
9.2
|
|
|
8.9
|
|
|
Total operating expenses
|
18.6
|
|
|
18.0
|
|
|
18.2
|
|
|
17.9
|
|
|
Pretax operating earnings
(1)
|
21.9
|
|
|
19.6
|
|
|
21.7
|
|
|
21.1
|
|
|
|
In Dollars
|
|
In Yen
|
|
|||||||||||||||||||||||
|
Three Months
|
|
Nine Months
|
|
Three Months
|
Nine Months
|
|
||||||||||||||||||||
(In millions of dollars and billions of yen)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
2015
|
|
2014
|
|
||||||||||||
New annualized premium sales
|
$
|
259
|
|
|
$
|
247
|
|
|
$
|
737
|
|
|
$
|
789
|
|
|
31.6
|
|
|
25.6
|
|
89.2
|
|
|
81.2
|
|
|
Increase (decrease) over prior period
|
5.0
|
%
|
|
(24.6
|
)%
|
|
(6.6
|
)%
|
|
(34.9
|
)%
|
|
23.4
|
%
|
|
(20.8
|
)%
|
9.9
|
%
|
|
(30.3
|
)%
|
|
|
Three Months
|
|
|
Nine Months
|
|
||||||||||
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
||||
Medical
|
28.9
|
%
|
|
|
33.6
|
%
|
|
|
26.4
|
%
|
|
|
34.7
|
%
|
|
Cancer
|
37.9
|
|
|
|
27.7
|
|
|
|
40.1
|
|
|
|
22.8
|
|
|
Ordinary life:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Child endowment
|
7.7
|
|
|
|
11.6
|
|
|
|
8.5
|
|
|
|
11.0
|
|
|
WAYS
|
18.1
|
|
|
|
15.0
|
|
|
|
16.2
|
|
|
|
15.9
|
|
|
Other ordinary life
|
5.9
|
|
|
|
8.6
|
|
|
|
6.4
|
|
|
|
9.0
|
|
|
Other
|
1.5
|
|
|
|
3.5
|
|
|
|
2.4
|
|
|
|
6.6
|
|
|
Total
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
Three Months
|
|
|
Nine Months
|
|
||||||
|
2015
|
(1)
|
|
2014
|
(1)
|
|
2015
|
(1)
|
|
2014
|
(1)
|
New money yield
|
2.76
|
%
|
|
1.91
|
%
|
|
3.23
|
%
|
|
2.13
|
%
|
Return on average invested assets, net of investment expenses
|
2.92
|
|
|
2.76
|
|
|
2.89
|
|
|
2.79
|
|
Portfolio book yield, including dollar-denominated investments, end of period
|
2.82
|
%
|
|
2.83
|
%
|
|
2.82
|
%
|
|
2.83
|
%
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
||||||||
Net premium income
|
$
|
1,346
|
|
|
$
|
1,306
|
|
|
$
|
4,016
|
|
|
$
|
3,910
|
|
|
Net investment income
|
173
|
|
|
162
|
|
|
507
|
|
|
484
|
|
|
||||
Other income
|
1
|
|
|
0
|
|
|
6
|
|
|
2
|
|
|
||||
Total operating revenues
|
1,520
|
|
|
1,468
|
|
|
4,529
|
|
|
4,396
|
|
|
||||
Benefits and claims
|
735
|
|
|
722
|
|
|
2,161
|
|
|
2,116
|
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of deferred policy acquisition costs
|
114
|
|
|
112
|
|
|
355
|
|
|
350
|
|
|
||||
Insurance commissions
|
148
|
|
|
149
|
|
|
441
|
|
|
443
|
|
|
||||
Insurance and other expenses
|
237
|
|
|
216
|
|
|
708
|
|
|
615
|
|
|
||||
Total operating expenses
|
499
|
|
|
477
|
|
|
1,504
|
|
|
1,408
|
|
|
||||
Total benefits and expenses
|
1,234
|
|
|
1,199
|
|
|
3,665
|
|
|
3,524
|
|
|
||||
Pretax operating earnings
(1)
|
$
|
286
|
|
|
$
|
269
|
|
|
$
|
864
|
|
|
$
|
872
|
|
|
Percentage change over previous period:
|
|
|
|
|
|
|
|
|
||||||||
Net premium income
|
3.0
|
|
%
|
1.1
|
|
%
|
2.7
|
|
%
|
1.1
|
|
%
|
||||
Net investment income
|
7.2
|
|
|
1.6
|
|
|
4.8
|
|
|
2.2
|
|
|
||||
Total operating revenues
|
3.6
|
|
|
1.0
|
|
|
3.0
|
|
|
1.2
|
|
|
||||
Pretax operating earnings
(1)
|
6.2
|
|
|
.3
|
|
|
(.9
|
)
|
|
4.7
|
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
||||||
Ratios to total revenues:
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Benefits and claims
|
48.4
|
%
|
|
49.2
|
%
|
|
47.7
|
%
|
|
48.1
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred policy acquisition costs
|
7.5
|
|
|
7.7
|
|
|
7.8
|
|
|
8.0
|
|
Insurance commissions
|
9.7
|
|
|
10.2
|
|
|
9.7
|
|
|
10.1
|
|
Insurance and other expenses
|
15.6
|
|
|
14.5
|
|
|
15.7
|
|
|
14.0
|
|
Total operating expenses
|
32.8
|
|
|
32.4
|
|
|
33.2
|
|
|
32.1
|
|
Pretax operating earnin
gs
(1)
|
18.8
|
|
|
18.4
|
|
|
19.1
|
|
|
19.8
|
|
|
Three Months
|
|
Nine Months
|
|
||||||||||||||||
(In millions)
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
|
|
||||||
New annualized premium sales
|
$
|
330
|
|
|
|
$
|
328
|
|
|
|
$
|
990
|
|
|
|
$
|
979
|
|
|
|
Increase (decrease) over prior period
|
.4
|
|
%
|
|
(.6
|
)
|
%
|
|
1.1
|
|
%
|
|
(4.5
|
)
|
%
|
|
|
Three Months
|
|
Nine Months
|
|
||||||||
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
Income-loss protection:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term disability
|
24.4
|
%
|
|
23.1
|
%
|
|
24.1
|
%
|
|
22.4
|
%
|
|
Life
|
5.5
|
|
|
6.0
|
|
|
5.7
|
|
|
6.2
|
|
|
Asset-loss protection:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accident
|
30.4
|
|
|
29.1
|
|
|
29.7
|
|
|
28.2
|
|
|
Critical care
(1)
|
20.4
|
|
|
20.1
|
|
|
20.8
|
|
|
20.5
|
|
|
Supplemental medical:
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital indemnity
|
13.6
|
|
|
15.3
|
|
|
14.0
|
|
|
16.2
|
|
|
Dental/vision
|
5.7
|
|
|
6.4
|
|
|
5.7
|
|
|
6.5
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
Three Months
|
|
Nine Months
|
|
|||||||
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
New money yield
|
4.65
|
%
|
|
4.36
|
%
|
|
4.38
|
%
|
|
4.34
|
%
|
Return on average invested assets, net of investment expenses
|
5.26
|
|
|
5.49
|
|
|
5.25
|
|
|
5.53
|
|
Portfolio book yield, end of period
|
5.79
|
%
|
|
5.92
|
%
|
|
5.79
|
%
|
|
5.92
|
%
|
(In millions)
|
As
Reported |
|
Exchange
Effect |
|
Net of
Exchange Effect |
||||||||||||
Yen/dollar exchange rate
(1)
|
|
119.96
|
|
|
|
|
|
|
|
|
120.55
|
|
|
||||
Investments and cash
|
|
$
|
104,900
|
|
|
|
|
$
|
314
|
|
|
|
|
$
|
104,586
|
|
|
Deferred policy acquisition costs
|
|
8,451
|
|
|
|
|
26
|
|
|
|
|
8,425
|
|
|
|||
Total assets
|
|
117,455
|
|
|
|
|
353
|
|
|
|
|
117,102
|
|
|
|||
Policy liabilities
|
|
87,185
|
|
|
|
|
379
|
|
|
|
|
86,806
|
|
|
|||
Total liabilities
|
|
100,200
|
|
|
|
|
404
|
|
|
|
|
99,796
|
|
|
|
|
Aflac Japan
|
|
|
Aflac U.S.
|
|
|||||||||||||||
(In millions)
|
September 30,
2015 |
December 31,
2014 |
September 30,
2015 |
|
December 31,
2014 |
||||||||||||||||
Securities available for sale, at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
51,752
|
|
|
|
$
|
52,196
|
|
|
|
$
|
12,839
|
|
(1)
|
|
|
$
|
12,940
|
|
(1)
|
Perpetual securities
|
|
2,108
|
|
|
|
2,609
|
|
|
|
58
|
|
|
|
|
60
|
|
|
||||
Equity securities
|
|
126
|
|
|
|
23
|
|
|
|
5
|
|
|
|
|
5
|
|
|
||||
Total available for sale
|
|
53,986
|
|
|
|
54,828
|
|
|
|
12,902
|
|
|
|
|
13,005
|
|
|
||||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
33,729
|
|
|
|
34,242
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total held to maturity
|
|
33,729
|
|
|
|
34,242
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total investment securities
|
|
$
|
87,715
|
|
|
|
$
|
89,070
|
|
|
|
$
|
12,902
|
|
|
|
|
$
|
13,005
|
|
|
(In millions)
|
September 30, 2015
|
|
December 31, 2014
|
|
||||||||||||||||||||
Yen/dollar exchange rates
|
104.96
|
|
|
119.96
(1)
|
|
|
134.96
|
|
|
105.55
|
|
|
120.55
(1)
|
|
|
135.55
|
|
|
||||||
Yen-denominated financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturities
(2)
|
$
|
30,897
|
|
|
$
|
27,033
|
|
|
$
|
24,029
|
|
|
$
|
32,178
|
|
|
$
|
28,174
|
|
|
$
|
25,056
|
|
|
Fixed maturities - consolidated variable
interest entities (3) |
1,005
|
|
|
879
|
|
|
781
|
|
|
1,273
|
|
|
1,114
|
|
|
992
|
|
|
||||||
Perpetual securities
|
2,086
|
|
|
1,827
|
|
|
1,623
|
|
|
2,458
|
|
|
2,153
|
|
|
1,914
|
|
|
||||||
Perpetual securities - consolidated
variable interest entities (3) |
208
|
|
|
182
|
|
|
162
|
|
|
390
|
|
|
341
|
|
|
304
|
|
|
||||||
Equity securities
|
137
|
|
|
120
|
|
|
107
|
|
|
19
|
|
|
17
|
|
|
15
|
|
|
||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturities
|
38,454
|
|
|
33,646
|
|
|
29,906
|
|
|
39,013
|
|
|
34,159
|
|
|
30,379
|
|
|
||||||
Fixed maturities - consolidated variable
interest entities (3) |
95
|
|
|
83
|
|
|
74
|
|
|
95
|
|
|
83
|
|
|
74
|
|
|
||||||
Cash and cash equivalents
|
255
|
|
|
223
|
|
|
198
|
|
|
370
|
|
|
324
|
|
|
288
|
|
|
||||||
Derivatives
|
2,658
|
|
|
877
|
|
|
1,141
|
|
|
596
|
|
|
802
|
|
|
1,266
|
|
|
||||||
Other financial instruments
|
175
|
|
|
153
|
|
|
136
|
|
|
159
|
|
|
139
|
|
|
124
|
|
|
||||||
Subtotal
|
75,970
|
|
|
65,023
|
|
|
58,157
|
|
|
76,551
|
|
|
67,306
|
|
|
60,412
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Notes payable
|
236
|
|
|
207
|
|
|
183
|
|
|
372
|
|
|
325
|
|
|
290
|
|
|
||||||
Derivatives
|
735
|
|
|
384
|
|
|
1,802
|
|
|
992
|
|
|
2,423
|
|
|
3,881
|
|
|
||||||
Subtotal
|
971
|
|
|
591
|
|
|
1,985
|
|
|
1,364
|
|
|
2,748
|
|
|
4,171
|
|
|
||||||
Net yen-denominated financial instruments
|
74,999
|
|
|
64,432
|
|
|
56,172
|
|
|
75,187
|
|
|
64,558
|
|
|
56,241
|
|
|
||||||
Other yen-denominated assets
|
8,160
|
|
|
7,139
|
|
|
6,346
|
|
|
8,212
|
|
|
7,190
|
|
|
6,394
|
|
|
||||||
Other yen-denominated liabilities
|
94,051
|
|
|
82,291
|
|
|
73,145
|
|
|
92,902
|
|
|
81,342
|
|
|
72,341
|
|
|
||||||
Consolidated yen-denominated net assets
(liabilities) subject to foreign currency fluctuation (2) |
$
|
(10,892
|
)
|
|
$
|
(10,720
|
)
|
|
$
|
(10,627
|
)
|
|
$
|
(9,503
|
)
|
|
$
|
(9,594
|
)
|
|
$
|
(9,706
|
)
|
|
(In millions)
|
September 30,
2015 |
|
December 31,
2014 |
|
||||||||
Effect on yen-denominated debt and perpetual securities
|
|
$
|
(8,781
|
)
|
|
|
|
$
|
(9,379
|
)
|
|
|
Effect on dollar-denominated debt and perpetual securities
|
|
(3,207
|
)
|
|
|
|
(3,427
|
)
|
|
|
||
Effect on total debt and perpetual securities
|
|
$
|
(11,988
|
)
|
|
|
|
$
|
(12,806
|
)
|
|
|
|
Nine Months Ended
September 30, 2015 |
|
Twelve Months Ended
December 31, 2014 |
|
Nine Months Ended
September 30, 2014 |
|||||||||
AAA
|
|
2.0
|
%
|
|
|
|
7.6
|
%
|
|
|
|
8.4
|
%
|
|
AA
|
|
2.6
|
|
|
|
|
74.5
|
|
|
|
|
75.6
|
|
|
A
|
|
17.3
|
|
|
|
|
8.0
|
|
|
|
|
6.4
|
|
|
BBB
|
|
31.7
|
|
|
|
|
8.3
|
|
|
|
|
8.7
|
|
|
BB or lower
|
|
46.4
|
|
|
|
|
1.6
|
|
|
|
|
.9
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
September 30, 2015
|
|
|
|
December 31, 2014
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.3
|
%
|
|
|
|
1.3
|
%
|
|
|
|
1.3
|
%
|
|
|
|
1.3
|
%
|
|
AA
|
|
5.5
|
|
|
|
|
5.6
|
|
|
|
|
5.7
|
|
|
|
|
5.8
|
|
|
A
|
|
61.8
|
|
|
|
|
63.4
|
|
|
|
|
64.1
|
|
|
|
|
65.1
|
|
|
BBB
|
|
26.5
|
|
|
|
|
25.0
|
|
|
|
|
25.0
|
|
|
|
|
23.9
|
|
|
BB or lower
|
|
4.9
|
|
|
|
|
4.7
|
|
|
|
|
3.9
|
|
|
|
|
3.9
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
September 30, 2015
|
|
|
|
December 31, 2014
|
|
||||||||||||||
(In millions)
|
Amortized
Cost |
|
Percentage
of Total |
|
Amortized
Cost |
|
Percentage
of Total |
||||||||||||||
Senior notes
|
|
$
|
90,519
|
|
|
|
|
94.4
|
%
|
|
|
|
$
|
89,308
|
|
|
|
|
93.9
|
%
|
|
Subordinated securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities (stated maturity date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Lower Tier II
|
|
2,682
|
|
|
|
|
2.8
|
|
|
|
|
2,751
|
|
|
|
|
2.9
|
|
|
||
Tier I
(1)
|
|
105
|
|
|
|
|
.1
|
|
|
|
|
131
|
|
|
|
|
.1
|
|
|
||
Surplus notes
|
|
301
|
|
|
|
|
.3
|
|
|
|
|
301
|
|
|
|
|
.3
|
|
|
||
Trust preferred - non-banks
|
|
85
|
|
|
|
|
.1
|
|
|
|
|
85
|
|
|
|
|
.1
|
|
|
||
Other subordinated - non-banks
|
|
51
|
|
|
|
|
.1
|
|
|
|
|
51
|
|
|
|
|
.1
|
|
|
||
Total fixed maturities
|
|
3,224
|
|
|
|
|
3.4
|
|
|
|
|
3,319
|
|
|
|
|
3.5
|
|
|
||
Perpetual securities (economic maturity date):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Upper Tier II
|
|
1,337
|
|
|
|
|
1.4
|
|
|
|
|
1,554
|
|
|
|
|
1.6
|
|
|
||
Tier I
|
|
568
|
|
|
|
|
.6
|
|
|
|
|
703
|
|
|
|
|
.8
|
|
|
||
Other subordinated - non-banks
|
|
184
|
|
|
|
|
.2
|
|
|
|
|
183
|
|
|
|
|
.2
|
|
|
||
Total perpetual securities
|
|
2,089
|
|
|
|
|
2.2
|
|
|
|
|
2,440
|
|
|
|
|
2.6
|
|
|
||
Total debt and perpetual securities
|
|
$
|
95,832
|
|
|
|
|
100.0
|
%
|
|
|
|
$
|
95,067
|
|
|
|
|
100.0
|
%
|
|
|
Amortized
|
|
% of
|
|
|
|
Ratings
|
|||||||
(In millions)
|
Cost
|
|
Total
|
|
Seniority
|
|
Moody’s
|
|
S&P
|
|
Fitch
|
|||
Japan National Government
(1)
|
$
|
36,527
|
|
|
38.12
|
%
|
|
Senior
|
|
A1
|
|
A+
|
|
A
|
Republic of South Africa
|
500
|
|
|
.52
|
|
|
Senior
|
|
Baa2
|
|
BBB-
|
|
BBB
|
|
Bank of America NA
|
379
|
|
|
.40
|
|
|
|
|
|
|
|
|
|
|
Bank of America Corp.
|
208
|
|
|
.23
|
|
|
Senior
|
|
Baa1
|
|
A-
|
|
A
|
|
Bank of America Corp.
|
167
|
|
|
.17
|
|
|
Lower Tier II
|
|
Baa3
|
|
BBB+
|
|
A-
|
|
Bank of America NA
|
4
|
|
|
.00
|
|
|
Senior
|
|
A1
|
|
A
|
|
A+
|
|
Bank of Tokyo-Mitsubishi UFJ Ltd.
|
375
|
|
|
.39
|
|
|
|
|
|
|
|
|
|
|
BTMU Curacao Holdings NV
|
375
|
|
|
.39
|
|
|
Lower Tier II
|
|
A2
|
|
—
|
|
A-
|
|
Investcorp SA
|
358
|
|
|
.37
|
|
|
|
|
|
|
|
|
|
|
Investcorp Capital Limited
|
358
|
|
|
.37
|
|
|
Senior
|
|
Ba2
|
|
—
|
|
BB
|
|
JP Morgan Chase & Co.
|
334
|
|
|
.35
|
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co. (including Bear Stearns Companies Inc.)
|
296
|
|
|
.31
|
|
|
Senior
|
|
A3
|
|
A
|
|
A+
|
|
JPMorgan Chase & Co. (Bank One Corp.)
|
17
|
|
|
.02
|
|
|
Lower Tier II
|
|
Baa1
|
|
A-
|
|
A
|
|
JPMorgan Chase & Co. (NBD Bank)
|
11
|
|
|
.01
|
|
|
Lower Tier II
|
|
A1
|
|
A
|
|
A
|
|
JPMorgan Chase & Co. (FNBC)
|
10
|
|
|
.01
|
|
|
Senior
|
|
Aa1
|
|
A+
|
|
—
|
|
Banobras
|
308
|
|
|
.32
|
|
|
Senior
|
|
A3
|
|
BBB+
|
|
BBB+
|
|
Sultanate of Oman
|
292
|
|
|
.30
|
|
|
Senior
|
|
A1
|
|
A-
|
|
—
|
|
Petroleos Mexicanos (Pemex)
|
292
|
|
|
.30
|
|
|
|
|
|
|
|
|
|
|
Pemex Proj FDG Master TR
|
251
|
|
|
.26
|
|
|
Senior
|
|
A3
|
|
BBB+
|
|
BBB+
|
|
Pemex Finance Ltd.
|
41
|
|
|
.04
|
|
|
Senior
|
|
A3
|
|
A
|
|
A+
|
|
Koninklijke Ahold NV
|
290
|
|
|
.30
|
|
|
|
|
|
|
|
|
|
|
Koninklijke Ahold NV
|
275
|
|
|
.28
|
|
|
Senior
|
|
Baa2
|
|
BBB
|
|
BBB
|
|
Ahold USA Lease
|
15
|
|
|
.02
|
|
|
Senior
|
|
Baa2
|
|
BBB
|
|
—
|
|
Nordea Bank AB
|
281
|
|
|
.29
|
|
|
|
|
|
|
|
|
|
|
Nordea Bank AB
|
214
|
|
|
.22
|
|
|
Tier I
|
|
Baa3
|
|
BBB
|
|
—
|
|
Nordea Bank Finland
|
66
|
|
|
.07
|
|
|
Upper Tier II
|
|
Baa2
|
|
—
|
|
—
|
|
Nordea Bank AB
|
1
|
|
|
.00
|
|
|
Senior
|
|
Aa3
|
|
AA-
|
|
AA-
|
|
German Agency Banks
|
280
|
|
|
.29
|
|
|
|
|
|
|
|
|
|
|
Landwirtschaftliche Rentenbank
|
209
|
|
|
.22
|
|
|
Lower Tier II
|
|
Aaa
|
|
AAA
|
|
AAA
|
|
KFW
|
71
|
|
|
.07
|
|
|
Senior
|
|
Aaa
|
|
AAA
|
|
AAA
|
|
AXA
|
276
|
|
|
.29
|
|
|
|
|
|
|
|
|
|
|
AXA-UAP
|
225
|
|
|
.24
|
|
|
Upper Tier II
|
|
A3
|
|
BBB
|
|
BBB
|
|
AXA
|
51
|
|
|
.05
|
|
|
CC FNB
|
|
A3
|
|
BBB
|
|
BBB+
|
|
Deutsche Teleom AG
|
272
|
|
|
.28
|
|
|
|
|
|
|
|
|
|
|
Deutsche Telekom AG
|
250
|
|
|
.26
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
BBB+
|
|
Deutsche Telekom International Finance
|
22
|
|
|
.02
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
BBB+
|
|
CFE
|
267
|
|
|
.28
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
BBB+
|
|
Subtotal
|
$
|
41,031
|
|
|
42.80
|
%
|
|
|
|
|
|
|
|
|
Total debt and perpetual securities
|
$
|
95,832
|
|
|
100.00
|
%
|
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
|
||||||||||
(In millions)
|
Amortized Cost
|
|
% of
Total |
|
Amortized Cost
|
|
% of
Total |
|
||||||
Japan
|
$
|
39,183
|
|
|
40.9
|
%
|
|
$
|
39,804
|
|
|
41.9
|
%
|
|
United States and Canada
(1)
|
31,212
|
|
|
32.6
|
|
|
28,884
|
|
|
30.4
|
|
|
||
United Kingdom
|
2,721
|
|
|
2.8
|
|
|
3,121
|
|
|
3.3
|
|
|
||
Germany
|
2,522
|
|
|
2.6
|
|
|
2,657
|
|
|
2.8
|
|
|
||
France
|
1,756
|
|
|
1.8
|
|
|
1,747
|
|
|
1.8
|
|
|
||
Peripheral Eurozone
|
2,773
|
|
|
2.9
|
|
|
2,925
|
|
|
3.1
|
|
|
||
Portugal
|
201
|
|
|
.2
|
|
|
200
|
|
|
.2
|
|
|
||
Italy
|
1,517
|
|
|
1.6
|
|
|
1,674
|
|
|
1.8
|
|
|
||
Ireland
|
333
|
|
|
.3
|
|
|
332
|
|
|
.3
|
|
|
||
Spain
|
722
|
|
|
.8
|
|
|
719
|
|
|
.8
|
|
|
||
Nordic Region
|
2,124
|
|
|
2.2
|
|
|
2,198
|
|
|
2.2
|
|
|
||
Sweden
|
894
|
|
|
.9
|
|
|
973
|
|
|
1.0
|
|
|
||
Norway
|
515
|
|
|
.5
|
|
|
513
|
|
|
.5
|
|
|
||
Denmark
|
333
|
|
|
.4
|
|
|
332
|
|
|
.3
|
|
|
||
Finland
|
382
|
|
|
.4
|
|
|
380
|
|
|
.4
|
|
|
||
Other Europe
|
2,642
|
|
|
2.8
|
|
|
2,711
|
|
|
2.8
|
|
|
||
Netherlands
|
1,503
|
|
|
1.6
|
|
|
1,497
|
|
|
1.6
|
|
|
||
Switzerland
|
228
|
|
|
.2
|
|
|
225
|
|
|
.2
|
|
|
||
Czech Republic
|
417
|
|
|
.5
|
|
|
415
|
|
|
.4
|
|
|
||
Austria
|
116
|
|
|
.1
|
|
|
184
|
|
|
.2
|
|
|
||
Belgium
|
183
|
|
|
.2
|
|
|
224
|
|
|
.2
|
|
|
||
Poland
|
167
|
|
|
.2
|
|
|
166
|
|
|
.2
|
|
|
||
Luxembourg
|
28
|
|
|
.0
|
|
|
0
|
|
|
.0
|
|
|
||
Asia excluding Japan
|
3,560
|
|
|
3.7
|
|
|
3,575
|
|
|
3.8
|
|
|
||
Africa and Middle East
|
2,131
|
|
|
2.2
|
|
|
2,121
|
|
|
2.2
|
|
|
||
Latin America
|
2,606
|
|
|
2.7
|
|
|
2,622
|
|
|
2.8
|
|
|
||
Australia
|
2,162
|
|
|
2.3
|
|
|
2,262
|
|
|
2.4
|
|
|
||
All Others
|
440
|
|
|
.5
|
|
|
440
|
|
|
.5
|
|
|
||
Total debt and perpetual securities
|
$
|
95,832
|
|
|
100.0
|
%
|
|
$
|
95,067
|
|
|
100.0
|
%
|
|
|
|
September 30, 2015
|
|
|
|
December 31, 2014
|
|
||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Publicly issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
67,622
|
|
|
|
|
$
|
73,840
|
|
|
|
|
$
|
65,830
|
|
|
|
|
$
|
74,190
|
|
|
Perpetual securities
|
|
107
|
|
|
|
|
158
|
|
|
|
|
107
|
|
|
|
|
154
|
|
|
||||
Equity securities
|
|
112
|
|
|
|
|
122
|
|
|
|
|
12
|
|
|
|
|
19
|
|
|
||||
Total publicly issued
|
|
67,841
|
|
|
|
|
74,120
|
|
|
|
|
65,949
|
|
|
|
|
74,363
|
|
|
||||
Privately issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
26,121
|
|
|
|
|
28,214
|
|
|
|
|
26,797
|
|
|
|
|
29,880
|
|
|
||||
Perpetual securities
|
|
1,982
|
|
|
|
|
2,008
|
|
|
|
|
2,333
|
|
|
|
|
2,515
|
|
|
||||
Equity securities
|
|
7
|
|
|
|
|
9
|
|
|
|
|
7
|
|
|
|
|
9
|
|
|
||||
Total privately issued
|
|
28,110
|
|
|
|
|
30,231
|
|
|
|
|
29,137
|
|
|
|
|
32,404
|
|
|
||||
Total investment securities
|
|
$
|
95,951
|
|
|
|
|
$
|
104,351
|
|
|
|
|
$
|
95,086
|
|
|
|
|
$
|
106,767
|
|
|
(Amortized cost, in millions)
|
September 30,
2015 |
|
December 31,
2014 |
||||||||
Privately issued securities as a percentage of total debt and perpetual
securities |
|
29.3
|
%
|
|
|
|
30.6
|
%
|
|
||
Privately issued securities held by Aflac Japan
|
|
$
|
25,342
|
|
|
|
|
$
|
26,468
|
|
|
Privately issued securities held by Aflac Japan as a percentage of total debt
and perpetual securities |
|
26.4
|
%
|
|
|
|
27.8
|
%
|
|
(Amortized cost, in millions)
|
September 30,
2015 |
|
December 31,
2014 |
||||||||
Privately issued reverse-dual currency securities
|
|
$
|
5,987
|
|
|
|
|
$
|
6,196
|
|
|
Publicly issued collateral structured as reverse-dual currency securities
|
|
1,310
|
|
|
|
|
1,470
|
|
|
||
Total reverse-dual currency securities
|
|
$
|
7,297
|
|
|
|
|
$
|
7,666
|
|
|
Reverse-dual currency securities as a percentage of total debt and perpetual
securities |
|
7.6
|
%
|
|
|
|
8.1
|
%
|
|
|
September 30, 2015
|
|
December 31, 2014
|
|
||||||||||||||||||||||||||||
(In millions)
|
Par
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain (Loss) |
|
Par
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain(Loss) |
|
||||||||||||||||
Investcorp Capital Limited
|
$
|
358
|
|
|
$
|
358
|
|
|
$
|
325
|
|
|
$
|
(33
|
)
|
|
$
|
357
|
|
|
$
|
357
|
|
|
$
|
332
|
|
|
$
|
(25
|
)
|
|
Commerzbank AG (includes
Dresdner Bank) |
333
|
|
|
214
|
|
|
295
|
|
|
81
|
|
|
332
|
|
|
213
|
|
|
327
|
|
|
114
|
|
|
||||||||
Republic of Tunisia
|
309
|
|
|
186
|
|
|
258
|
|
|
72
|
|
|
307
|
|
|
185
|
|
|
219
|
|
|
34
|
|
|
||||||||
Navient Corp
|
280
|
|
|
149
|
|
|
149
|
|
|
0
|
|
|
278
|
|
|
278
|
|
|
178
|
|
|
(100
|
)
|
|
||||||||
UPM-Kymmene
|
258
|
|
|
258
|
|
|
253
|
|
|
(5
|
)
|
|
257
|
|
|
257
|
|
|
251
|
|
|
(6
|
)
|
|
||||||||
KLM Royal Dutch Airlines
(1)
|
250
|
|
|
184
|
|
|
201
|
|
|
17
|
|
|
249
|
|
|
183
|
|
|
231
|
|
|
48
|
|
|
||||||||
Barclays Bank PLC
(1)
|
231
|
|
|
149
|
|
|
223
|
|
|
74
|
|
|
228
|
|
|
148
|
|
|
225
|
|
|
77
|
|
|
||||||||
Deutsche Bank AG
|
200
|
|
|
200
|
|
|
179
|
|
|
(21
|
)
|
|
378
|
|
(1)
|
332
|
|
(1)
|
354
|
|
(1)
|
22
|
|
(1)
|
||||||||
DEPFA Bank PLC
|
167
|
|
|
167
|
|
|
129
|
|
|
(38
|
)
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Telecom Italia SpA
|
167
|
|
|
167
|
|
|
210
|
|
|
43
|
|
|
332
|
|
|
332
|
|
|
352
|
|
|
20
|
|
|
||||||||
Generalitat de Catalunya
|
150
|
|
|
55
|
|
|
122
|
|
|
67
|
|
|
149
|
|
|
55
|
|
|
129
|
|
|
74
|
|
|
||||||||
IKB Deutsche Industriebank
AG
|
108
|
|
|
46
|
|
|
76
|
|
|
30
|
|
|
108
|
|
|
46
|
|
|
70
|
|
|
24
|
|
|
||||||||
Alcoa, Inc.
|
100
|
|
|
78
|
|
|
90
|
|
|
12
|
|
|
76
|
|
|
77
|
|
|
102
|
|
|
25
|
|
|
||||||||
Petrobras International
Finance Company
|
92
|
|
|
88
|
|
|
63
|
|
|
(25
|
)
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Societe Generale
(1)
|
83
|
|
|
61
|
|
|
75
|
|
|
14
|
|
|
83
|
|
|
61
|
|
|
67
|
|
|
6
|
|
|
||||||||
Teck Resources Ltd.
|
70
|
|
|
69
|
|
|
43
|
|
|
(26
|
)
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Transocean Inc.
|
68
|
|
|
71
|
|
|
44
|
|
|
(27
|
)
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Eskom Holdings Limited
|
50
|
|
|
50
|
|
|
47
|
|
|
(3
|
)
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Kommunalkredit Austria
|
25
|
|
|
16
|
|
|
20
|
|
|
4
|
|
|
108
|
|
|
84
|
|
|
88
|
|
|
4
|
|
|
||||||||
Bank of Ireland
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
166
|
|
|
166
|
|
|
125
|
|
|
(41
|
)
|
|
||||||||
Energias de Portugal SA
(EDP)
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
118
|
|
|
116
|
|
|
124
|
|
|
8
|
|
|
||||||||
Other Issuers (below $50
million in par value) (2) |
308
|
|
|
291
|
|
|
277
|
|
|
(14
|
)
|
|
361
|
|
|
378
|
|
|
394
|
|
|
16
|
|
|
||||||||
Subtotal
(3)
|
3,607
|
|
|
2,857
|
|
|
3,079
|
|
|
222
|
|
|
3,887
|
|
|
3,268
|
|
|
3,568
|
|
|
300
|
|
|
||||||||
Senior secured bank loans
(4)
|
1,297
|
|
|
1,231
|
|
|
1,285
|
|
|
54
|
|
|
504
|
|
|
501
|
|
|
579
|
|
|
78
|
|
|
||||||||
High yield corporate bonds
(5)
|
612
|
|
|
625
|
|
|
587
|
|
|
(38
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Grand Total
|
$
|
5,516
|
|
|
$
|
4,713
|
|
|
$
|
4,951
|
|
|
$
|
238
|
|
|
$
|
4,391
|
|
|
$
|
3,769
|
|
|
$
|
4,147
|
|
|
$
|
378
|
|
|
Split-Rated Securities
|
|||||||
(In millions)
|
Amortized
Cost |
|
Investment-Grade
Status |
||||
Commerzbank AG (includes Dresdner Bank)
|
|
$
|
214
|
|
|
|
Below Investment Grade
|
Deutsche Bank AG
(1)
|
|
200
|
|
|
|
Below Investment Grade
|
|
DEPFA Bank PLC
|
|
167
|
|
|
|
Below Investment Grade
|
|
Telecom Italia SpA
|
|
167
|
|
|
|
Below Investment Grade
|
|
Bank of Ireland
|
|
167
|
|
|
|
Investment Grade
|
|
Energias de Portugal SA (EDP)
|
|
117
|
|
|
|
Investment Grade
|
|
Goldman Sachs Capital I
|
|
105
|
|
|
|
Investment Grade
|
|
Barclays Bank PLC
(1)
|
|
103
|
|
|
|
Below Investment Grade
|
|
Petrobras International Finance Company
|
|
88
|
|
|
|
Below Investment Grade
|
|
Redes Energeticas Nacionais (REN)
|
|
88
|
|
|
|
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
|
|
$
|
57,557
|
|
|
|
|
$
|
62,450
|
|
|
|
|
60.0
|
%
|
|
|
|
$
|
6,121
|
|
|
|
|
$
|
1,228
|
|
|
Below-investment-grade securities
|
|
4,546
|
|
|
|
|
4,822
|
|
|
|
|
4.6
|
|
|
|
|
504
|
|
|
|
|
228
|
|
|
||||
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investment-grade securities
|
|
33,562
|
|
|
|
|
36,819
|
|
|
|
|
35.3
|
|
|
|
|
3,589
|
|
|
|
|
332
|
|
|
||||
Below-investment-grade securities
|
|
167
|
|
|
|
|
129
|
|
|
|
|
.1
|
|
|
|
|
0
|
|
|
|
|
38
|
|
|
||||
Total
|
|
$
|
95,832
|
|
|
|
|
$
|
104,220
|
|
|
|
|
100.0
|
%
|
|
|
|
$
|
10,214
|
|
|
|
|
$
|
1,826
|
|
|
(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 |
$
|
16,408
|
|
|
$
|
1,228
|
|
|
$
|
9,945
|
|
|
$
|
441
|
|
|
$
|
2,303
|
|
|
$
|
239
|
|
|
$
|
4,160
|
|
|
$
|
548
|
|
|
Below-
investment-grade securities |
1,921
|
|
|
228
|
|
|
944
|
|
|
54
|
|
|
152
|
|
|
27
|
|
|
825
|
|
|
147
|
|
|||||||||
Held-to-maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Investment-grade
securities |
4,983
|
|
|
332
|
|
|
2,790
|
|
|
127
|
|
|
667
|
|
|
50
|
|
|
1,526
|
|
|
155
|
|
|||||||||
Below-
investment-grade securities |
167
|
|
|
38
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
167
|
|
|
38
|
|
|||||||||
Total
|
$
|
23,479
|
|
|
$
|
1,826
|
|
|
$
|
13,679
|
|
|
$
|
622
|
|
|
$
|
3,122
|
|
|
$
|
316
|
|
|
$
|
6,678
|
|
|
$
|
888
|
|
(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 |
$
|
16,408
|
|
|
$
|
1,228
|
|
|
$
|
15,532
|
|
|
$
|
991
|
|
|
$
|
876
|
|
|
$
|
237
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Below-
investment-grade securities |
1,921
|
|
|
228
|
|
|
1,625
|
|
|
129
|
|
|
289
|
|
|
96
|
|
|
7
|
|
|
3
|
|
||||||||
Held-to-maturity
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment-grade
securities |
4,983
|
|
|
332
|
|
|
4,983
|
|
|
332
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||||
Below-
investment-grade securities |
167
|
|
|
38
|
|
|
0
|
|
|
0
|
|
|
167
|
|
|
38
|
|
|
0
|
|
|
0
|
|
||||||||
Total
|
$
|
23,479
|
|
|
$
|
1,826
|
|
|
$
|
22,140
|
|
|
$
|
1,452
|
|
|
$
|
1,332
|
|
|
$
|
371
|
|
|
$
|
7
|
|
|
$
|
3
|
|
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Loss |
||||||||||||||
Diamond Offshore Drilling Inc.
|
|
BBB
|
|
|
|
$
|
144
|
|
|
|
|
$
|
93
|
|
|
|
|
$
|
(51
|
)
|
|
Bank of America Corp
|
|
A
|
|
|
|
379
|
|
|
|
|
334
|
|
|
|
|
(45
|
)
|
|
|||
DEPFA Bank PLC
|
|
BB
|
|
|
|
167
|
|
|
|
|
129
|
|
|
|
|
(38
|
)
|
|
|||
Noble Holding International Ltd.
|
|
BBB
|
|
|
|
104
|
|
|
|
|
69
|
|
|
|
|
(35
|
)
|
|
|||
Bank of Ireland
|
|
BBB
|
|
|
|
167
|
|
|
|
|
133
|
|
|
|
|
(34
|
)
|
|
|||
Kommunal Lanspensjonskasse (KLP)
(1)
|
|
BBB
|
|
|
|
204
|
|
|
|
|
170
|
|
|
|
|
(34
|
)
|
|
|||
Investcorp Capital Limited
|
|
BB
|
|
|
|
358
|
|
|
|
|
325
|
|
|
|
|
(33
|
)
|
|
|||
AXA
(1)
|
|
BBB
|
|
|
|
276
|
|
|
|
|
244
|
|
|
|
|
(32
|
)
|
|
|||
CFE
|
|
BBB
|
|
|
|
267
|
|
|
|
|
239
|
|
|
|
|
(28
|
)
|
|
|||
Transocean Inc.
|
|
BB
|
|
|
|
71
|
|
|
|
|
44
|
|
|
|
|
(27
|
)
|
|
(In millions)
|
September 30, 2015
|
|
December 31, 2014
|
|
% Change
|
|||||||||||
Aflac Japan
|
|
$
|
5,340
|
|
|
|
|
$
|
5,211
|
|
|
|
|
2.5
|
%
|
(1)
|
Aflac U.S.
|
|
3,111
|
|
|
|
|
3,062
|
|
|
|
|
1.6
|
|
|
||
Total
|
|
$
|
8,451
|
|
|
|
|
$
|
8,273
|
|
|
|
|
2.2
|
%
|
|
(In millions)
|
September 30,
2015 |
|
December 31, 2014
|
|
% Change
|
|||||||||||
Aflac Japan
|
|
$
|
78,143
|
|
|
|
|
$
|
74,575
|
|
|
|
|
4.8
|
%
|
(1)
|
Aflac U.S.
|
|
9,699
|
|
|
|
|
9,356
|
|
|
|
|
3.7
|
|
|
||
Other
|
|
30
|
|
|
|
|
2
|
|
|
|
|
100.0
|
|
|
||
Intercompany eliminations
(2)
|
|
(687
|
)
|
|
|
|
0
|
|
|
|
|
(100.0
|
)
|
|
||
Total
|
|
$
|
87,185
|
|
|
|
|
$
|
83,933
|
|
|
|
|
3.9
|
%
|
|
(In millions)
|
September 30,
2015 |
|
December 31,
2014 |
||||||||
Aflac Japan net assets
|
|
$
|
13,726
|
|
|
|
|
$
|
14,665
|
|
|
Aflac Japan unhedged dollar-denominated net assets
|
|
(8,452
|
)
|
|
|
|
(8,672
|
)
|
|
||
Consolidated yen-denominated net assets (liabilities)
|
|
$
|
5,274
|
|
|
|
|
$
|
5,993
|
|
|
(In millions)
|
2015
|
|
2014
|
|
||||
Dividends declared or paid by Aflac
|
$
|
1,431
|
|
|
$
|
1,473
|
|
|
Management fees paid by Aflac
|
224
|
|
|
185
|
|
|
(In millions)
|
2015
|
|
2014
|
|
||||
Operating activities
|
$
|
4,770
|
|
|
$
|
4,577
|
|
|
Investing activities
|
(4,083
|
)
|
|
(4,144
|
)
|
|
||
Financing activities
|
(1,826
|
)
|
|
(322
|
)
|
|
||
Exchange effect on cash and cash equivalents
|
1
|
|
|
12
|
|
|
||
Net change in cash and cash equivalents
|
$
|
(1,138
|
)
|
|
$
|
123
|
|
|
(In millions)
|
2015
|
|
2014
|
|
||||
Aflac Japan
|
$
|
3,769
|
|
|
$
|
4,042
|
|
|
Aflac U.S. and other operations
|
1,001
|
|
|
535
|
|
|
||
Total
|
$
|
4,770
|
|
|
$
|
4,577
|
|
|
(In millions)
|
2015
|
|
2014
|
|
||||
Aflac Japan
|
$
|
(3,479
|
)
|
|
$
|
(4,072
|
)
|
|
Aflac U.S. and other operations
|
(604
|
)
|
|
(72
|
)
|
|
||
Total
|
$
|
(4,083
|
)
|
|
$
|
(4,144
|
)
|
|
(In millions of dollars and thousands of shares)
|
2015
|
|
2014
|
|
||||
Treasury stock purchases
|
$
|
1,081
|
|
|
$
|
698
|
|
|
Number of shares purchased:
|
|
|
|
|
||||
Open market
|
17,421
|
|
|
11,070
|
|
|
||
Other
|
241
|
|
|
132
|
|
|
||
Total shares purchased
|
17,662
|
|
|
11,202
|
|
|
(In millions of dollars and thousands of shares)
|
2015
|
|
2014
|
|
||||
Stock issued from treasury:
|
|
|
|
|
||||
Cash financing
|
$
|
28
|
|
|
$
|
25
|
|
|
Noncash financing
|
49
|
|
|
49
|
|
|
||
Total stock issued from treasury
|
$
|
77
|
|
|
$
|
74
|
|
|
Number of shares issued
|
1,407
|
|
|
1,367
|
|
|
(In millions)
|
2015
|
|
2014
|
|
||||
Dividends paid in cash
|
$
|
489
|
|
|
$
|
486
|
|
|
Dividends through issuance of treasury shares
|
19
|
|
|
19
|
|
|
||
Total dividends to shareholders
|
$
|
508
|
|
|
$
|
505
|
|
|
(In millions of dollars and billions of yen)
|
2015
|
|
2014
|
|
||||
Aflac Japan management fees paid to Parent Company
|
$
|
36
|
|
|
$
|
31
|
|
|
Expenses allocated to Aflac Japan (in dollars)
|
78
|
|
|
57
|
|
|
||
Aflac Japan profit remittances to Aflac U.S. (in dollars)
|
1,436
|
|
|
1,288
|
|
|
||
Aflac Japan profit remittances to Aflac U.S. (in yen)
|
174.0
|
|
|
131.4
|
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
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
|
3,326,084
|
|
|
$
|
58.64
|
|
|
3,325,300
|
|
|
26,224,824
|
|
|
February 1 - February 28
|
2,457,596
|
|
|
61.41
|
|
|
2,301,000
|
|
|
23,923,824
|
|
|
|
March 1 - March 31
|
4,205,408
|
|
|
62.82
|
|
|
4,201,000
|
|
|
19,722,824
|
|
|
|
April 1 - April 30
|
325,000
|
|
|
63.74
|
|
|
325,000
|
|
|
19,397,824
|
|
|
|
May 1 - May 31
|
1,990,000
|
|
|
63.07
|
|
|
1,990,000
|
|
|
17,407,824
|
|
|
|
June 1 - June 30
|
1,398,960
|
|
|
62.44
|
|
|
1,391,700
|
|
|
16,016,124
|
|
|
|
July 1 - July 31
|
110,745
|
|
|
64.15
|
|
|
110,000
|
|
|
15,906,124
|
|
|
|
August 1 - August 31
|
2,368,500
|
|
|
61.24
|
|
|
2,368,500
|
|
|
53,537,624
|
|
|
|
September 1 - September 30
|
1,410,706
|
|
|
57.52
|
|
|
1,408,300
|
|
|
52,129,324
|
|
|
|
Total
|
17,592,999
|
|
(2)
|
$
|
61.22
|
|
|
17,420,800
|
|
|
52,129,324
|
|
(1)
|
Item 6.
|
Exhibits
|
|
4.14
|
|
-
|
|
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 September 26, 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 - incorporated by reference from 2014 Form 10-K, Exhibit 10.4 (File No. 001-07434).
|
|
10.5*
|
|
-
|
|
Aflac Incorporated Executive Deferred Compensation Plan, as amended and restated, effective September 1, 2015.
|
|
10.6*
|
|
-
|
|
Aflac Incorporated 2013 Management Incentive Plan - incorporated by reference from the 2012 Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.7*
|
|
-
|
|
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).
|
|
10.8*
|
|
-
|
|
Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from the 1997 Shareholders’ Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.9*
|
|
-
|
|
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).
|
|
10.10*
|
|
-
|
|
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).
|
|
10.11*
|
|
-
|
|
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).
|
|
10.12*
|
|
-
|
|
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).
|
|
10.13*
|
|
-
|
|
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).
|
|
10.14*
|
|
-
|
|
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).
|
|
10.15*
|
|
-
|
|
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).
|
|
10.16*
|
|
-
|
|
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).
|
|
10.17*
|
|
-
|
|
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).
|
|
10.18*
|
|
-
|
|
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).
|
|
10.19*
|
|
-
|
|
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).
|
|
10.20*
|
|
-
|
|
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).
|
|
10.21*
|
|
-
|
|
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).
|
|
10.22*
|
|
-
|
|
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).
|
|
10.23*
|
|
-
|
|
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).
|
|
10.24*
|
|
-
|
|
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).
|
|
10.25*
|
|
-
|
|
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).
|
|
10.26*
|
|
-
|
|
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).
|
|
10.27*
|
|
-
|
|
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).
|
|
10.28*
|
|
-
|
|
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).
|
|
10.29*
|
|
-
|
|
Aflac Incorporated Employment Agreement with Daniel P. Amos, as amended and restated, dated August 20, 2015.
|
|
10.30*
|
|
-
|
|
Aflac Incorporated Employment Agreement with Kriss Cloninger III, as amended and restated, dated August 20, 2015.
|
|
10.31*
|
|
-
|
|
Aflac Incorporated Employment Agreement with Paul S. Amos II, as amended and restated, dated August 19, 2015.
|
|
10.32*
|
|
-
|
|
Aflac Incorporated Employment Agreement with Eric Kirsch, as amended and restated, dated August 21, 2015.
|
|
10.33*
|
|
-
|
|
Aflac Incorporated Employment Agreement with Frederick J. Crawford, effective June 30, 2015 – incorporated by reference from Form 8-K dated June 24, 2015, Exhibit 10.1 (File No. 001-07434).
|
|
11
|
|
-
|
|
Statement regarding the computation of per-share earnings for the Registrant.
|
|
12
|
|
-
|
|
Statement regarding the computation of ratio of earnings to fixed charges for the Registrant.
|
|
15
|
|
-
|
|
Letter from KPMG LLP regarding unaudited interim financial information.
|
|
31.1
|
|
-
|
|
Certification of CEO dated November 3, 2015, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
|
|
31.2
|
|
-
|
|
Certification of CFO dated November 3, 2015, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
|
|
32
|
|
-
|
|
Certification of CEO and CFO dated November 3, 2015, pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS
|
|
-
|
|
XBRL Instance Document.
(1)
|
|
101.SCH
|
|
-
|
|
XBRL Taxonomy Extension Schema.
|
|
101.CAL
|
|
-
|
|
XBRL Taxonomy Extension Calculation Linkbase.
|
|
101.DEF
|
|
-
|
|
XBRL Taxonomy Extension Definition Linkbase.
|
|
101.LAB
|
|
-
|
|
XBRL Taxonomy Extension Label Linkbase.
|
|
101.PRE
|
|
-
|
|
XBRL Taxonomy Extension Presentation Linkbase.
|
(1)
|
Includes the following materials contained in this Quarterly Report on Form 10-Q for the period ended September 30, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Earnings, (ii) Consolidated Statements of Comprehensive Income (Loss), (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, (vi) Notes to the Consolidated Financial Statements
|
|||
|
|
|
|
|
*
|
Management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 6 of this report
|
|
|
Aflac Incorporated
|
|
|
|
November 3, 2015
|
|
/s/
Frederick J. Crawford
|
|
|
(Frederick J. Crawford)
|
|
|
Executive Vice President,
Chief Financial Officer
|
|
|
|
November 3, 2015
|
|
/s/
June Howard
|
|
|
(June Howard)
Senior Vice President, Financial Services; Chief Accounting Officer
|
|
|
|
Page
|
|
|
|
|
|
|
ARTICLE I DEFINITIONS
|
1
|
|||
|
1.1
|
Account
|
1
|
|
|
1.2
|
Administrative Committee
|
1
|
|
|
1.3
|
Affiliate
|
1
|
|
|
1.4
|
Annual Bonus
|
1
|
|
|
1.5
|
Annual Bonus Contributions
|
1
|
|
|
1.6
|
Annual Bonus Election
|
1
|
|
|
1.7
|
Annual Compensation
|
1
|
|
|
1.8
|
Base Salary
|
2
|
|
|
1.9
|
Base Salary Contributions
|
2
|
|
|
1.10
|
Beneficiary
|
2
|
|
|
1.11
|
Board
|
2
|
|
|
1.12
|
Business Day
|
2
|
|
|
1.13
|
Cause
|
2
|
|
|
1.14
|
Change in Control
|
2
|
|
|
|
(a) General Definition
|
2
|
|
|
|
(b) Payment Definition Under Code Section 409A
|
3
|
|
|
1.15
|
Code
|
6
|
|
|
1.16
|
Company Stock
|
6
|
|
|
1.17
|
Company Stock Fund
|
6
|
|
|
1.18
|
Company Stock Unit
|
6
|
|
|
1.19
|
Compensation Committee
|
6
|
|
|
1.20
|
Controlling Company
|
6
|
|
|
1.21
|
Deferral Contributions
|
6
|
|
|
1.22
|
Director
|
6
|
|
|
1.23
|
Disability or Disabled
|
7
|
|
|
1.24
|
Discretionary Contributions
|
7
|
|
|
1.25
|
Effective Date
|
7
|
|
|
1.26
|
Eligible Employee
|
7
|
|
|
1.27
|
ERISA
|
7
|
|
|
1.28
|
Executive Employer Contribution
|
7
|
|
|
1.29
|
FICA Tax
|
7
|
|
|
1.30
|
Financial Hardship
|
7
|
|
|
1.31
|
Investment Election
|
8
|
|
|
1.32
|
Investment Funds
|
8
|
|
|
1.33
|
Key Employee
|
8
|
|
|
1.34
|
Matching Contributions
|
8
|
|
|
1.35
|
Participant
|
8
|
|
1.36
|
Participating Company
|
8
|
|
|
1.37
|
Payment Date
|
8
|
|
|
1.38
|
Plan
|
8
|
|
|
1.39
|
Plan Year
|
8
|
|
|
1.40
|
Post 409A Account
|
8
|
|
|
1.41
|
Pre-409A Account
|
8
|
|
|
1.42
|
Retirement Plans Investment Committee
|
9
|
|
|
1.43
|
Salary Deferral Election
|
9
|
|
|
1.44
|
Separate from Service or Separation from Service
|
9
|
|
|
|
(a) Leaves of Absence
|
9
|
|
|
|
(b) Status Change
|
9
|
|
|
|
(c) Termination of Employment
|
9
|
|
|
1.45
|
Surviving Spouse
|
10
|
|
|
1.46
|
Trust or Trust Agreement
|
10
|
|
|
1.47
|
Trust Fund
|
10
|
|
|
1.48
|
Trustee
|
10
|
|
|
1.49
|
Valuation Date
|
10
|
|
|
1.50
|
Years of Employment
|
10
|
|
|
1.51
|
Years of Participation
|
10
|
|
|
|
|
|
|
ARTICLE II ELIGIBILITY AND PARTICIPATION
|
11
|
|||
|
2.1
|
Eligibility for Deferral Contributions
|
11
|
|
|
|
(a) Annual Participation
|
11
|
|
|
|
(b) Interim Plan Year Participation
|
11
|
|
|
2.2
|
Procedure for Admission
|
11
|
|
|
2.3
|
Eligibility for Discretionary Contributions
|
11
|
|
|
2.4
|
Eligibility for Executive Employer Contributions
|
11
|
|
|
2.5
|
Cessation of Eligibility
|
11
|
|
|
|
|
|
|
ARTICLE III PARTICIPANTS’ ACCOUNTS; DEFERRALS AND CREDITING
|
13
|
|||
|
3.1
|
Participants’ Accounts
|
13
|
|
|
|
(a) Establishment of Accounts
|
13
|
|
|
|
(b) Nature of Contributions and Accounts
|
13
|
|
|
|
(c) Several Liabilities
|
13
|
|
|
|
(d) General Creditors
|
13
|
|
|
3.2
|
Deferral Contributions
|
13
|
|
|
|
(a) Effective Date
|
14
|
|
|
|
(b) Term and Irrevocability of Election
|
14
|
|
|
|
(c) Amount
|
15
|
|
|
|
(d) Crediting of Deferral Contributions
|
15
|
|
|
3.3
|
Matching Contributions
|
15
|
|
|
3.4
|
Discretionary Contributions
|
16
|
|
|
3.5
|
Executive Employer Contributions
|
16
|
|
|
3.6
|
Debiting of Distributions
|
16
|
|
|
3.7
|
Crediting of Earnings
|
16
|
|
|
|
(a) General Rule
|
16
|
|
|
|
(b) Cash Dividends
|
17
|
|
|
(c) Adjustments for Stock Dividends and Splits
|
17
|
|
|
3.8
|
Value of Account
|
17
|
|
|
|
(a) General Rule
|
17
|
|
|
|
(b) Value of Company Stock
|
17
|
|
|
3.9
|
Vesting
|
18
|
|
|
|
(a) General
|
18
|
|
|
|
(b) Executive Employer Contributions
|
18
|
|
|
|
(c) Change in Control
|
20
|
|
|
|
(d) Other Vesting Schedules
|
20
|
|
|
3.10
|
Notice to Participants of Account Balances
|
20
|
|
|
3.11
|
Good Faith Valuation Binding
|
21
|
|
|
3.12
|
Errors and Omissions in Accounts
|
21
|
|
|
|
|
|
|
ARTICLE IV INVESTMENT FUNDS
|
22
|
|||
|
4.1
|
Selection by Retirement Plans Investment Committee
|
22
|
|
|
4.2
|
Participant Direction of Deemed Investments
|
22
|
|
|
|
(a) Nature of Participant Direction
|
22
|
|
|
|
(b) Investment of Contributions
|
22
|
|
|
|
(c) Investment of Existing Account Balances
|
22
|
|
|
|
(d) Administrative Committee Discretion
|
23
|
|
|
|
|
|
|
ARTICLE V PAYMENT OF POST-409A ACCOUNT BALANCES
|
24
|
|||
|
5.1
|
Amount of Benefit Payments for Post-409A Account
|
24
|
|
|
5.2
|
Timing and Form of Distribution of Post-409A Account
|
24
|
|
|
|
(a) Timing of Distributions
|
24
|
|
|
|
(b) Form of Distribution for Post-409A Account Balances
|
24
|
|
|
|
(c) Modifications of Form and Timing
|
25
|
|
|
|
(d) Medium of Payment
|
26
|
|
|
|
(e) Order of Distribution
|
26
|
|
|
|
(f) Cash-out
|
26
|
|
|
5.3
|
Change in Control
|
27
|
|
|
5.4
|
Death Benefits
|
27
|
|
|
5.5
|
Distribution of Post-409A Account Discretionary Contributions
|
27
|
|
|
|
(a) Determination by Grantor
|
27
|
|
|
|
(b) Participant Election in Absence of Designation by Grantor
|
27
|
|
|
|
(c) Default Payment
|
28
|
|
|
5.6
|
Distribution of Executive Employer Contributions
|
28
|
|
|
|
(a) Generally
|
28
|
|
|
|
(b) Installment Election
|
28
|
|
|
|
(c) Change in Form of Payments
|
28
|
|
|
|
(d) Other Distribution Rules
|
28
|
|
|
5.7
|
Hardship Withdrawals
|
29
|
|
|
5.8
|
Taxes
|
29
|
|
|
|
(a) Amounts Payable Whether or Not Account is in Pay Status
|
29
|
|
|
|
(b) Amounts Payable Only if Account is in Pay Status
|
29
|
|
|
5.9
|
Offset of Post-409A Account by Amounts Owed to the Affiliates
|
29
|
|
|
5.10
|
No Acceleration of Post-409A Account Payments
|
30
|
ARTICLE VI PAYMENT OF PRE-409A ACCOUNT BALANCES
|
31
|
|||
|
6.1
|
Benefit Payments of Pre-409A Accounts Upon Termination of Service for
|
|
|
Reasons Other than Death
|
31
|
|||
|
|
(a) General Rule Concerning Benefit Payments
|
31
|
|
|
|
(b) Timing of Distribution
|
31
|
|
|
6.2
|
Form of Distribution for Pre-409A Account
|
32
|
|
|
|
(a) Single-Sum Payment
|
32
|
|
|
|
(b) Annual Installments
|
32
|
|
|
|
(c) Multiple Forms of Distribution
|
32
|
|
|
|
(d) Change in Control
|
32
|
|
|
|
(e) Form of Assets
|
33
|
|
|
|
(f) Order of Distribution
|
33
|
|
|
6.3
|
Death Benefits
|
33
|
|
|
6.4
|
In-Service Distributions
|
33
|
|
|
|
(a) Hardship Distributions
|
33
|
|
|
|
(b) Distributions with Forfeiture
|
33
|
|
|
6.5
|
Taxes
|
34
|
|
|
|
|
|
|
ARTICLE VII CLAIMS
|
35
|
|||
|
7.1
|
Rights
|
35
|
|
|
7.2
|
Claim Procedure
|
35
|
|
|
|
(a) Initial Claim
|
35
|
|
|
|
(b) Appeal
|
35
|
|
|
7.3
|
Satisfaction of Claims
|
36
|
|
|
|
|
|
|
ARTICLE VIII SOURCE OF FUNDS; TRUST
|
37
|
|||
|
8.1
|
Source of Funds
|
37
|
|
|
8.2
|
Trust
|
37
|
|
|
|
(a) Establishment
|
37
|
|
|
|
(b) Distributions
|
37
|
|
|
|
(c) Status of the Trust
|
37
|
|
|
|
(d) Change in Control
|
37
|
|
|
8.3
|
Funding Prohibition under Certain Circumstances
|
38
|
|
|
|
|
|
|
ARTICLE IX ADMINISTRATIVE AND RETIREMENT PLANS INVESTMENT
|
|
|||
COMMITTEES
|
39
|
|||
|
9.1
|
Action of Administrative Committee
|
39
|
|
|
9.2
|
Rights and Duties of Administrative Committee
|
39
|
|
|
9.3
|
Compensation, Indemnity and Liability
|
40
|
|
|
9.4
|
Retirement Plans Investment Committee
|
40
|
|
|
|
(a) Appointment
|
40
|
|
|
|
(b) Duties
|
40
|
|
|
9.5
|
Delegation and Discretion
|
40
|
|
|
|
(a) Delegation
|
40
|
|
|
|
(b) Discretion
|
40
|
ARTICLE X AMENDMENT AND TERMINATION
|
42
|
|||
|
10.1
|
Amendments
|
42
|
|
|
10.2
|
Termination of Plan
|
42
|
|
|
|
(a) Freezing
|
42
|
|
|
|
(b) Termination
|
42
|
|
|
|
|
|
|
ARTICLE XI MISCELLANEOUS
|
43
|
|||
|
11.1
|
Beneficiary Designation
|
43
|
|
|
|
(a) General
|
43
|
|
|
|
(b) No Designation or Designee Dead or Missing
|
43
|
|
|
11.2
|
Distribution Pursuant to Domestic Relations Order
|
43
|
|
|
11.3
|
Taxation
|
43
|
|
|
11.4
|
Elections Prior to 2009
|
44
|
|
|
11.5
|
No Employment Contract
|
44
|
|
|
11.6
|
Headings
|
44
|
|
|
11.7
|
Gender and Number
|
44
|
|
|
11.8
|
Assignment of Benefits
|
44
|
|
|
11.9
|
Legally Incompetent
|
44
|
|
|
11.10
|
Governing Law
|
45
|
EXHIBIT A
|
A-1
|
AFLAC INCORPORATED
|
||
|
|
|
By:
|
/s/ Daniel P. Amos
|
|
|
|
|
Title:
|
Chairman and CEO
|
Company Names
|
|
Effective Date
|
||
|
|
|
|
|
Communicorp, Inc.
|
|
Original Effective Date of the Plan
|
||
|
|
|
|
|
American Family Life Assurance
|
|
Original Effective Date of the Plan
|
||
Company of New York
|
|
|
|
|
|
|
|
|
|
American Family Life Assurance
|
|
Original Effective Date of the Plan
|
||
Company of Columbus
|
|
|
|
|
|
|
|
|
|
AFLAC International, Inc.
|
|
Original Effective Date of the Plan
|
||
|
|
|
|
|
Continental American Insurance
|
|
August 1, 2010
|
||
Company
|
|
|
|
|
|
|
|
|
|
Aflac Benefit Advisors, Inc.
|
|
February 2, 2012
|
||
(formerly Aflac Benefit Solutions, Inc.)
|
|
|
|
14.
|
Termination of employment
.
|
Daniel P. Amos
|
|
|
|
/s/ Daniel P. Amos
|
|
Employee
|
|
|
|
AFLAC INCORPORATED
|
|
|
|
/s/ Kriss Cloninger, III
|
|
By:
|
Kriss Cloninger, III
|
|
President and Treasurer
|
|
|
Attest: J. Matthew Loudermilk
|
|
|
|
/s/ J. Matthew Loudermilk
|
|
Vice President, Corporate Secretary
|
|
|
AFLAC INCORPORATED
|
|
|
|
|
|
/s/ Kriss Cloninger, III
|
|
BY:
|
/s/ Daniel P. Amos
|
KRISS CLONINGER, III
|
|
|
DANIEL P. AMOS
|
Employee
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
/s/ Robin L. Blackmon
|
|
ATTEST:
|
/s/ J. Matthew Loudermilk
|
Witness
|
|
|
J. MATTHEW LOUDERMILK
|
|
|
|
Vice President, Corporate Secretary
|
|
|
AMERICAN FAMILY LIFE ASSURANCE
|
|
|
|
COMPANY OF COLUMBUS (Aflac)
|
|
|
|
|
|
/s/ Paul S. Amos, II
|
|
BY:
|
/s/ Kriss Cloninger, III
|
PAUL S. AMOS, II
|
|
|
KRISS CLONINGER, III
|
Employee
|
|
|
Executive Vice President
|
|
|
|
|
/s/ Robin L. Blackmon
|
|
ATTEST:
|
/s/ J. Matthew Loudermilk
|
Witness
|
|
|
J. MATTHEW LOUDERMILK
|
|
|
|
Vice President, Corporate Secretary
|
|
|
AMERICAN FAMILY LIFE
|
||
|
|
ASSURANCE COMPANY OF
|
||
|
|
COLUMBUS (Aflac)
|
||
|
|
|
|
|
/s/ Eric Kirsch
|
|
BY:
|
/s/ Daniel P. Amos
|
|
ERIC KIRSCH
|
|
|
DANIEL P. AMOS
|
|
Employee
|
|
|
Chairman and Chief Executive Officer
|
|
|
|
|
|
|
/s/ John G. Shalhoub
|
|
ATTEST:
|
/s/ J. Matthew Loudermilk
|
|
Witness
|
|
|
J. MATTHEW LOUDERMILK
|
|
|
|
|
Vice President, Corporate Secretary
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Numerator (In millions):
|
|
|
|
|
|
|
|
||||||||
Basic and diluted: net earnings applicable to common stock
|
$
|
567
|
|
|
$
|
706
|
|
|
$
|
1,803
|
|
|
$
|
2,248
|
|
Denominator (In thousands):
|
|
|
|
|
|
|
|
||||||||
Weighted-average outstanding shares used in the
computation of earnings per share - basic |
428,735
|
|
|
451,246
|
|
|
432,540
|
|
|
452,833
|
|
||||
Dilutive effect of share-based awards
|
2,367
|
|
|
2,735
|
|
|
2,524
|
|
|
2,841
|
|
||||
Weighted-average outstanding shares used in the
computation of earnings per share - diluted |
431,102
|
|
|
453,981
|
|
|
435,064
|
|
|
455,674
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.32
|
|
|
$
|
1.56
|
|
|
$
|
4.17
|
|
|
$
|
4.96
|
|
Diluted
|
1.32
|
|
|
1.56
|
|
|
4.14
|
|
|
4.93
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In thousands)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Fixed charges:
|
|
|
|
|
|
|
|
||||||||
Interest expense
(1)
|
$
|
66,864
|
|
|
$
|
77,807
|
|
|
$
|
224,170
|
|
|
$
|
237,911
|
|
Interest on investment-type contracts
|
14,290
|
|
|
14,457
|
|
|
41,849
|
|
|
43,526
|
|
||||
Rental expense deemed interest
|
136
|
|
|
158
|
|
|
402
|
|
|
486
|
|
||||
Total fixed charges
|
$
|
81,290
|
|
|
$
|
92,422
|
|
|
$
|
266,421
|
|
|
$
|
281,923
|
|
Earnings before income tax
(1)
|
$
|
865,122
|
|
|
$
|
1,074,582
|
|
|
$
|
2,752,322
|
|
|
$
|
3,416,691
|
|
Add back:
|
|
|
|
|
|
|
|
||||||||
Total fixed charges
|
81,290
|
|
|
92,422
|
|
|
266,421
|
|
|
281,923
|
|
||||
Total earnings before income tax and fixed charges
|
$
|
946,412
|
|
|
$
|
1,167,004
|
|
|
$
|
3,018,743
|
|
|
$
|
3,698,614
|
|
Ratio of earnings to fixed charges
|
11.6x
|
|
|
12.6x
|
|
|
11.3x
|
|
|
13.1x
|
|
/s/ KPMG LLP
|
1.
|
I have reviewed this
quarterly
report on Form
10-Q
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:
|
November 3, 2015
|
|
/s/
Daniel P. Amos
|
|
|
|
Daniel P. Amos
|
|
|
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this
quarterly
report on Form
10-Q
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:
|
November 3, 2015
|
|
/s/ Frederick J. Crawford
|
|
|
|
Frederick J. Crawford
|
|
|
|
Executive Vice President, Chief Financial Officer
|
(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:
|
|
November 3, 2015
|
/s/
Frederick J. Crawford
|
||
Name:
|
|
Frederick J. Crawford
|
Title:
|
|
Chief Financial Officer
|
Date:
|
|
November 3, 2015
|