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 27, 2016
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Common Stock, $.10 Par Value
|
|
408,102,088
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|
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Page
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PART I.
|
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Item 1.
|
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||
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Three Months Ended September 30, 2016, and 2015
Nine Months Ended September 30, 2016 and 2015
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Three Months Ended September 30, 2016, and 2015
Nine Months Ended September 30, 2016 and 2015
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September 30, 2016 and December 31, 2015
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Nine Months Ended September 30, 2016, and 2015
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Nine Months Ended September 30, 2016, and 2015
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Item 2.
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Item 3.
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Item 4.
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PART II.
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Item 2.
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Item 6.
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/s/ KPMG LLP
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Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|
|||||||||||||||||
(In millions, except for share and per-share amounts - Unaudited)
|
2016
|
2015
|
2016
|
2015
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|
|||||||||||||||
Revenues:
|
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|
|
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|
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|
||||||||
Net premiums, principally supplemental health insurance
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$
|
5,022
|
|
|
|
$
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4,380
|
|
|
|
$
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14,447
|
|
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$
|
13,176
|
|
|
Net investment income
|
|
842
|
|
|
|
784
|
|
|
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2,465
|
|
|
|
2,343
|
|
|
||||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairment losses realized
|
|
(22
|
)
|
|
|
(137
|
)
|
|
|
(69
|
)
|
|
|
(143
|
)
|
|
||||
Sales and redemptions
|
|
(17
|
)
|
|
|
26
|
|
|
|
87
|
|
|
|
186
|
|
|
||||
Derivative and other gains (losses)
|
|
(107
|
)
|
|
|
(3
|
)
|
|
|
(278
|
)
|
|
|
(17
|
)
|
|
||||
Total realized investment gains (losses)
|
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(146
|
)
|
|
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(114
|
)
|
|
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(260
|
)
|
|
|
26
|
|
|
||||
Other income (loss)
|
|
(2
|
)
|
|
|
(10
|
)
|
|
|
(48
|
)
|
|
|
8
|
|
|
||||
Total revenues
|
|
5,716
|
|
|
|
5,040
|
|
|
|
16,604
|
|
|
|
15,553
|
|
|
||||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Benefits and claims, net
|
|
3,378
|
|
|
|
2,927
|
|
|
|
9,657
|
|
|
|
8,816
|
|
|
||||
Acquisition and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of deferred policy acquisition costs
|
|
282
|
|
|
|
258
|
|
|
|
858
|
|
|
|
790
|
|
|
||||
Insurance commissions
|
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353
|
|
|
|
326
|
|
|
|
1,031
|
|
|
|
981
|
|
|
||||
Insurance expenses
|
|
625
|
|
|
|
554
|
|
|
|
1,801
|
|
|
|
1,634
|
|
|
||||
Interest expense
|
|
65
|
|
|
|
67
|
|
|
|
196
|
|
|
|
224
|
|
|
||||
Other expenses
|
|
50
|
|
|
|
44
|
|
|
|
147
|
|
|
|
356
|
|
(1)
|
||||
Total acquisition and operating expenses
|
|
1,375
|
|
|
|
1,249
|
|
|
|
4,033
|
|
|
|
3,985
|
|
|
||||
Total benefits and expenses
|
|
4,753
|
|
|
|
4,176
|
|
|
|
13,690
|
|
|
|
12,801
|
|
|
||||
Earnings before income taxes
|
|
963
|
|
|
|
864
|
|
|
|
2,914
|
|
|
|
2,752
|
|
|
||||
Income taxes
|
|
334
|
|
|
|
297
|
|
|
|
1,006
|
|
|
|
949
|
|
|
||||
Net earnings
|
|
$
|
629
|
|
|
|
$
|
567
|
|
|
|
$
|
1,908
|
|
|
|
$
|
1,803
|
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|
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||||||||
Basic
|
|
$
|
1.54
|
|
|
|
$
|
1.32
|
|
|
|
$
|
4.62
|
|
|
|
$
|
4.17
|
|
|
Diluted
|
|
1.53
|
|
|
|
1.32
|
|
|
|
4.59
|
|
|
|
4.14
|
|
|
||||
Weighted-average outstanding common shares used in
computing earnings per share (In thousands): |
|
|
|
|
|
|
|
|
|
|
|
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||||||||
Basic
|
|
408,519
|
|
|
|
428,735
|
|
|
|
413,023
|
|
|
|
432,540
|
|
|
||||
Diluted
|
|
411,140
|
|
|
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431,102
|
|
|
|
415,446
|
|
|
|
435,064
|
|
|
||||
Cash dividends per share
|
|
$
|
.41
|
|
|
|
$
|
.39
|
|
|
|
$
|
1.23
|
|
|
|
$
|
1.17
|
|
|
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||
(In millions - Unaudited)
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||
Net earnings
|
|
$
|
629
|
|
|
|
$
|
567
|
|
|
|
$
|
1,908
|
|
|
|
$
|
1,803
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized foreign currency translation gains (losses) during
period |
|
195
|
|
|
|
186
|
|
|
|
1,783
|
|
|
|
25
|
|
|
||||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains (losses) on investment securities during
period |
|
(527
|
)
|
|
|
(401
|
)
|
|
|
4,855
|
|
|
|
(2,266
|
)
|
|
||||
Reclassification adjustment for realized (gains) losses on
investment securities included in net earnings |
|
33
|
|
|
|
138
|
|
|
|
(33
|
)
|
|
|
20
|
|
|
||||
Unrealized gains (losses) on derivatives during period
|
|
0
|
|
|
|
(1
|
)
|
|
|
11
|
|
|
|
(3
|
)
|
|
||||
Pension liability adjustment during period
|
|
0
|
|
|
|
0
|
|
|
|
(6
|
)
|
|
|
1
|
|
|
||||
Total other comprehensive income (loss) before income taxes
|
|
(299
|
)
|
|
|
(78
|
)
|
|
|
6,610
|
|
|
|
(2,223
|
)
|
|
||||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
(231
|
)
|
|
|
(99
|
)
|
|
|
1,871
|
|
|
|
(772
|
)
|
|
||||
Other comprehensive income (loss), net of income taxes
|
|
(68
|
)
|
|
|
21
|
|
|
|
4,739
|
|
|
|
(1,451
|
)
|
|
||||
Total comprehensive income (loss)
|
|
$
|
561
|
|
|
|
$
|
588
|
|
|
|
$
|
6,647
|
|
|
|
$
|
352
|
|
|
(In millions)
|
September 30,
2016
(Unaudited)
|
|
December 31,
2015 |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
|
|
|
||||
Securities available for sale, at fair value:
|
|
|
|
|
|
|
|
||||
Fixed maturities (amortized cost $66,059 in 2016 and $56,903 in 2015)
|
|
$
|
75,033
|
|
|
|
|
$
|
60,795
|
|
|
Fixed maturities - consolidated variable interest entities (amortized
cost $4,870 in 2016 and $3,739 in 2015) |
|
5,494
|
|
|
|
|
4,554
|
|
|
||
Perpetual securities (amortized cost $1,677 in 2016 and $1,586 in 2015)
|
|
1,775
|
|
|
|
|
1,719
|
|
|
||
Perpetual securities - consolidated variable interest entities
(amortized cost $273 in 2016 and $255 in 2015) |
|
219
|
|
|
|
|
228
|
|
|
||
Equity securities (cost $233 in 2016 and $117 in 2015)
|
|
264
|
|
|
|
|
135
|
|
|
||
Equity securities - consolidated variable interest entities
(cost $1,036 in 2016 and $363 in 2015) |
|
1,014
|
|
|
|
|
363
|
|
|
||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
|
|
||||
Fixed maturities (fair value $47,937 in 2016 and $37,520 in 2015)
|
|
38,772
|
|
|
|
|
33,459
|
|
|
||
Other investments
|
|
1,094
|
|
|
|
|
294
|
|
|
||
Cash and cash equivalents
|
|
5,270
|
|
|
|
|
4,350
|
|
|
||
Total investments and cash
|
|
128,935
|
|
|
|
|
105,897
|
|
|
||
Receivables
|
|
689
|
|
|
|
|
705
|
|
|
||
Accrued investment income
|
|
776
|
|
|
|
|
768
|
|
|
||
Deferred policy acquisition costs
|
|
9,759
|
|
|
|
|
8,511
|
|
|
||
Property and equipment, at cost less accumulated depreciation
|
|
476
|
|
|
|
|
427
|
|
|
||
Other
(1)
|
|
3,466
|
|
|
|
|
1,948
|
|
|
||
Total assets
|
|
$
|
144,101
|
|
|
|
|
$
|
118,256
|
|
|
(In millions, except for share and per-share amounts)
|
September 30,
2016 (Unaudited) |
|
December 31,
2015 |
||||||||
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||
Policy liabilities:
|
|
|
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
85,163
|
|
|
|
|
$
|
69,687
|
|
|
Unpaid policy claims
|
|
4,346
|
|
|
|
|
3,802
|
|
|
||
Unearned premiums
|
|
8,401
|
|
|
|
|
7,857
|
|
|
||
Other policyholders’ funds
|
|
7,646
|
|
|
|
|
6,285
|
|
|
||
Total policy liabilities
|
|
105,556
|
|
|
|
|
87,631
|
|
|
||
Income taxes
|
|
6,247
|
|
|
|
|
4,340
|
|
|
||
Payables for return of cash collateral on loaned securities
|
|
1,053
|
|
|
|
|
941
|
|
|
||
Notes payable
|
|
5,765
|
|
|
|
|
4,971
|
|
|
||
Other
(2)
|
|
2,695
|
|
|
|
|
2,665
|
|
|
||
Total liabilities
|
|
121,316
|
|
|
|
|
100,548
|
|
|
||
Commitments and contingent liabilities (Note 11)
|
|
|
|
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000
shares in 2016 and 2015; issued 670,984 shares in 2016 and 669,723 shares in 2015 |
|
67
|
|
|
|
|
67
|
|
|
||
Additional paid-in capital
|
|
1,936
|
|
|
|
|
1,828
|
|
|
||
Retained earnings
|
|
25,404
|
|
|
|
|
24,007
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Unrealized foreign currency translation gains (losses)
|
|
(594
|
)
|
|
|
|
(2,196
|
)
|
|
||
Unrealized gains (losses) on investment securities
|
|
6,120
|
|
|
|
|
2,986
|
|
|
||
Unrealized gains (losses) on derivatives
|
|
(19
|
)
|
|
|
|
(26
|
)
|
|
||
Pension liability adjustment
|
|
(143
|
)
|
|
|
|
(139
|
)
|
|
||
Treasury stock, at average cost
|
|
(9,986
|
)
|
|
|
|
(8,819
|
)
|
|
||
Total shareholders’ equity
|
|
22,785
|
|
|
|
|
17,708
|
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
144,101
|
|
|
|
|
$
|
118,256
|
|
|
|
Nine Months Ended
September 30, |
||||||||||
(In millions - Unaudited)
|
|
2016
|
|
|
|
2015
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
$
|
67
|
|
|
|
|
$
|
67
|
|
|
Balance, end of period
|
|
67
|
|
|
|
|
67
|
|
|
||
Additional paid-in capital:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
1,828
|
|
|
|
|
1,711
|
|
|
||
Exercise of stock options
|
|
38
|
|
|
|
|
41
|
|
|
||
Share-based compensation
|
|
41
|
|
|
|
|
27
|
|
|
||
Gain (loss) on treasury stock reissued
|
|
29
|
|
|
|
|
28
|
|
|
||
Balance, end of period
|
|
1,936
|
|
|
|
|
1,807
|
|
|
||
Retained earnings:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
24,007
|
|
|
|
|
22,156
|
|
|
||
Net earnings
|
|
1,908
|
|
|
|
|
1,803
|
|
|
||
Dividends to shareholders
|
|
(511
|
)
|
|
|
|
(508
|
)
|
|
||
Balance, end of period
|
|
25,404
|
|
|
|
|
23,451
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
625
|
|
|
|
|
1,979
|
|
|
||
Unrealized foreign currency translation gains (losses) during
period, net of income taxes |
|
1,602
|
|
|
|
|
8
|
|
|
||
Unrealized gains (losses) on investment securities during period,
net of income taxes and reclassification adjustments |
|
3,134
|
|
|
|
|
(1,458
|
)
|
|
||
Unrealized gains (losses) on derivatives during period, net of
income taxes |
|
7
|
|
|
|
|
(2
|
)
|
|
||
Pension liability adjustment during period, net of income taxes
|
|
(4
|
)
|
|
|
|
1
|
|
|
||
Balance, end of period
|
|
5,364
|
|
|
|
|
528
|
|
|
||
Treasury stock:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
(8,819
|
)
|
|
|
|
(7,566
|
)
|
|
||
Purchases of treasury stock
|
|
(1,222
|
)
|
|
|
|
(1,081
|
)
|
|
||
Cost of shares issued
|
|
55
|
|
|
|
|
49
|
|
|
||
Balance, end of period
|
|
(9,986
|
)
|
|
|
|
(8,598
|
)
|
|
||
Total shareholders’ equity
|
|
$
|
22,785
|
|
|
|
|
$
|
17,255
|
|
|
|
Nine Months Ended September 30,
|
||||||||||
(In millions - Unaudited)
|
2016
|
|
2015
|
||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||
Net earnings
|
|
$
|
1,908
|
|
|
|
|
$
|
1,803
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Change in receivables and advance premiums
|
|
41
|
|
|
|
|
98
|
|
|
||
Increase in deferred policy acquisition costs
|
|
(186
|
)
|
|
|
|
(152
|
)
|
|
||
Increase in policy liabilities
|
|
2,329
|
|
|
|
|
2,696
|
|
|
||
Change in income tax liabilities
|
|
(365
|
)
|
|
|
|
(43
|
)
|
|
||
Realized investment (gains) losses
|
|
260
|
|
|
|
|
(26
|
)
|
|
||
Other, net
|
|
133
|
|
|
|
|
394
|
|
(1)
|
||
Net cash provided (used) by operating activities
|
|
4,120
|
|
|
|
|
4,770
|
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||
Proceeds from investments sold or matured:
|
|
|
|
|
|
|
|
||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||
Fixed maturities sold
|
|
978
|
|
|
|
|
1,829
|
|
|
||
Fixed maturities matured or called
|
|
774
|
|
|
|
|
705
|
|
|
||
Perpetual securities matured or called
|
|
234
|
|
|
|
|
394
|
|
|
||
Equity securities sold
|
|
173
|
|
|
|
|
1
|
|
|
||
Securities held to maturity:
|
|
|
|
|
|
|
|
||||
Fixed maturities matured or called
|
|
946
|
|
|
|
|
678
|
|
|
||
Costs of investments acquired:
|
|
|
|
|
|
|
|
||||
Available-for-sale fixed maturities acquired
|
|
(4,871
|
)
|
|
|
|
(3,919
|
)
|
|
||
Equity securities acquired
|
|
(868
|
)
|
|
|
|
(67
|
)
|
|
||
Other investments, net
|
|
(801
|
)
|
|
|
|
(27
|
)
|
|
||
Settlement of derivatives, net
|
|
1,203
|
|
|
|
|
(2,242
|
)
|
|
||
Cash received (pledged or returned) as collateral, net
|
|
(350
|
)
|
|
|
|
(1,404
|
)
|
|
||
Other, net
|
|
(56
|
)
|
|
|
|
(31
|
)
|
|
||
Net cash provided (used) by investing activities
|
|
(2,638
|
)
|
|
|
|
(4,083
|
)
|
|
||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||
Purchases of treasury stock
|
|
(1,222
|
)
|
|
|
|
(1,081
|
)
|
|
||
Proceeds from borrowings
|
|
988
|
|
|
|
|
998
|
|
|
||
Principal payments under debt obligations
|
|
(232
|
)
|
|
|
|
(1,272
|
)
|
|
||
Dividends paid to shareholders
|
|
(492
|
)
|
|
|
|
(489
|
)
|
|
||
Change in investment-type contracts, net
|
|
117
|
|
|
|
|
213
|
|
|
||
Treasury stock reissued
|
|
37
|
|
|
|
|
28
|
|
|
||
Other, net
|
|
(31
|
)
|
|
|
|
(223
|
)
|
(1)
|
||
Net cash provided (used) by financing activities
|
|
(835
|
)
|
|
|
|
(1,826
|
)
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
273
|
|
|
|
|
1
|
|
|
||
Net change in cash and cash equivalents
|
|
920
|
|
|
|
|
(1,138
|
)
|
|
||
Cash and cash equivalents, beginning of period
|
|
4,350
|
|
|
|
|
4,658
|
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
5,270
|
|
|
|
|
$
|
3,520
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
||||
Income taxes paid
|
|
$
|
1,594
|
|
|
|
|
$
|
996
|
|
|
Interest paid
|
|
155
|
|
|
|
|
188
|
|
|
||
Noncash interest
|
|
41
|
|
|
|
|
36
|
|
|
||
Impairment losses included in realized investment losses
|
|
69
|
|
|
|
|
143
|
|
|
||
Noncash financing activities:
|
|
|
|
|
|
|
|
||||
Capital lease obligations
|
|
2
|
|
|
|
|
2
|
|
|
||
Treasury stock issued for:
|
|
|
|
|
|
|
|
||||
Associate stock bonus
|
|
24
|
|
|
|
|
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)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan:
|
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
3,596
|
|
|
$
|
2,980
|
|
|
$
|
10,177
|
|
|
$
|
9,036
|
|
|
Net investment income
|
661
|
|
|
606
|
|
|
1,925
|
|
|
1,824
|
|
|
||||
Other income
|
11
|
|
|
8
|
|
|
29
|
|
|
23
|
|
|
||||
Total Aflac Japan
|
4,268
|
|
|
3,594
|
|
|
12,131
|
|
|
10,883
|
|
|
||||
Aflac U.S.:
|
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
1,365
|
|
|
1,345
|
|
|
4,093
|
|
|
4,016
|
|
|
||||
Net investment income
|
176
|
|
|
173
|
|
|
526
|
|
|
507
|
|
|
||||
Other income
|
1
|
|
|
2
|
|
|
5
|
|
|
6
|
|
|
||||
Total Aflac U.S.
|
1,542
|
|
|
1,520
|
|
|
4,624
|
|
|
4,529
|
|
|
||||
Other business segments
|
70
|
|
|
67
|
|
|
206
|
|
|
159
|
|
|
||||
Total business segment revenues
|
5,880
|
|
|
5,181
|
|
|
16,961
|
|
|
15,571
|
|
|
||||
Realized investment gains (losses)
(1)
|
(166
|
)
|
|
(136
|
)
|
|
(324
|
)
|
|
(36
|
)
|
|
||||
Corporate
|
72
|
|
|
73
|
|
|
209
|
|
|
242
|
|
|
||||
Intercompany eliminations
|
(52
|
)
|
|
(51
|
)
|
|
(145
|
)
|
|
(185
|
)
|
|
||||
Other non-operating income (loss)
|
(18
|
)
|
|
(27
|
)
|
(2)
|
(97
|
)
|
|
(39
|
)
|
(2)
|
||||
Total revenues
|
$
|
5,716
|
|
|
$
|
5,040
|
|
|
$
|
16,604
|
|
|
$
|
15,553
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Pretax earnings:
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
|
$
|
882
|
|
|
$
|
789
|
|
|
$
|
2,559
|
|
|
$
|
2,365
|
|
|
Aflac U.S.
|
323
|
|
|
286
|
|
|
946
|
|
|
864
|
|
|
||||
Other business segments
|
4
|
|
|
5
|
|
|
12
|
|
|
10
|
|
|
||||
Total business segment pretax operating earnings
|
1,209
|
|
|
1,080
|
|
|
3,517
|
|
|
3,239
|
|
|
||||
Interest expense, noninsurance operations
|
(31
|
)
|
|
(30
|
)
|
|
(90
|
)
|
|
(117
|
)
|
|
||||
Corporate and eliminations
|
(31
|
)
|
|
(23
|
)
|
|
(91
|
)
|
|
(64
|
)
|
|
||||
Pretax operating earnings
|
1,147
|
|
|
1,027
|
|
|
3,336
|
|
|
3,058
|
|
|
||||
Realized investment gains (losses)
(1)
|
(166
|
)
|
|
(136
|
)
|
|
(324
|
)
|
|
(36
|
)
|
|
||||
Other non-operating income (loss)
|
(18
|
)
|
|
(27
|
)
|
(2)
|
(98
|
)
|
|
(270
|
)
|
(2),(3)
|
||||
Total earnings before income taxes
|
$
|
963
|
|
|
$
|
864
|
|
|
$
|
2,914
|
|
|
$
|
2,752
|
|
|
Income taxes applicable to pretax operating earnings
|
$
|
399
|
|
|
$
|
355
|
|
|
$
|
1,154
|
|
|
$
|
1,057
|
|
|
Effect of foreign currency translation on after-tax operating
earnings |
61
|
|
|
(58
|
)
|
|
110
|
|
|
(175
|
)
|
|
(In millions)
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Aflac Japan
|
|
$
|
121,677
|
|
|
|
|
$
|
97,646
|
|
|
Aflac U.S.
|
|
20,126
|
|
|
|
|
18,537
|
|
|
||
Other business segments
|
|
270
|
|
|
|
|
188
|
|
|
||
Total business segment assets
|
|
142,073
|
|
|
|
|
116,371
|
|
|
||
Corporate
|
|
29,617
|
|
|
|
|
23,375
|
|
|
||
Intercompany eliminations
|
|
(27,589
|
)
|
|
|
|
(21,490
|
)
|
|
||
Total assets
|
|
$
|
144,101
|
|
|
|
|
$
|
118,256
|
|
|
3.
|
INVESTMENTS
|
|
September 30, 2016
|
||||||||||||||||||||||
(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
|
|
$
|
22,563
|
|
|
|
|
$
|
4,700
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
27,240
|
|
|
Municipalities
|
|
223
|
|
|
|
|
44
|
|
|
|
|
2
|
|
|
|
|
265
|
|
|
||||
Mortgage- and asset-backed securities
|
|
969
|
|
|
|
|
45
|
|
|
|
|
3
|
|
|
|
|
1,011
|
|
|
||||
Public utilities
|
|
1,667
|
|
|
|
|
371
|
|
|
|
|
0
|
|
|
|
|
2,038
|
|
|
||||
Sovereign and supranational
|
|
943
|
|
|
|
|
205
|
|
|
|
|
0
|
|
|
|
|
1,148
|
|
|
||||
Banks/financial institutions
|
|
2,752
|
|
|
|
|
411
|
|
|
|
|
99
|
|
|
|
|
3,064
|
|
|
||||
Other corporate
|
|
4,072
|
|
|
|
|
686
|
|
|
|
|
43
|
|
|
|
|
4,715
|
|
|
||||
Total yen-denominated
|
|
33,189
|
|
|
|
|
6,462
|
|
|
|
|
170
|
|
|
|
|
39,481
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
150
|
|
|
|
|
16
|
|
|
|
|
0
|
|
|
|
|
166
|
|
|
||||
Municipalities
|
|
929
|
|
|
|
|
162
|
|
|
|
|
3
|
|
|
|
|
1,088
|
|
|
||||
Mortgage- and asset-backed securities
|
|
202
|
|
|
|
|
15
|
|
|
|
|
0
|
|
|
|
|
217
|
|
|
||||
Public utilities
|
|
5,721
|
|
|
|
|
804
|
|
|
|
|
54
|
|
|
|
|
6,471
|
|
|
||||
Sovereign and supranational
|
|
355
|
|
|
|
|
95
|
|
|
|
|
0
|
|
|
|
|
450
|
|
|
||||
Banks/financial institutions
|
|
2,754
|
|
|
|
|
537
|
|
|
|
|
11
|
|
|
|
|
3,280
|
|
|
||||
Other corporate
|
|
27,629
|
|
|
|
|
2,424
|
|
|
|
|
679
|
|
|
|
|
29,374
|
|
|
||||
Total dollar-denominated
|
|
37,740
|
|
|
|
|
4,053
|
|
|
|
|
747
|
|
|
|
|
41,046
|
|
|
||||
Total fixed maturities
|
|
70,929
|
|
|
|
|
10,515
|
|
|
|
|
917
|
|
|
|
|
80,527
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
1,679
|
|
|
|
|
138
|
|
|
|
|
126
|
|
|
|
|
1,691
|
|
|
||||
Other corporate
|
|
218
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
226
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
53
|
|
|
|
|
24
|
|
|
|
|
0
|
|
|
|
|
77
|
|
|
||||
Total perpetual securities
|
|
1,950
|
|
|
|
|
170
|
|
|
|
|
126
|
|
|
|
|
1,994
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Yen-denominated
|
|
724
|
|
|
|
|
32
|
|
|
|
|
42
|
|
|
|
|
714
|
|
|
||||
Dollar-denominated
|
|
545
|
|
|
|
|
28
|
|
|
|
|
9
|
|
|
|
|
564
|
|
|
||||
Total equity securities
|
|
1,269
|
|
|
|
|
60
|
|
|
|
|
51
|
|
|
|
|
1,278
|
|
|
||||
Total securities available for sale
|
|
$
|
74,148
|
|
|
|
|
$
|
10,745
|
|
|
|
|
$
|
1,094
|
|
|
|
|
$
|
83,799
|
|
|
|
September 30, 2016
|
||||||||||||||||||||||
(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
|
|
$
|
23,852
|
|
|
|
|
$
|
7,241
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
31,093
|
|
|
Municipalities
|
|
404
|
|
|
|
|
145
|
|
|
|
|
0
|
|
|
|
|
549
|
|
|
||||
Mortgage- and asset-backed securities
|
|
37
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
39
|
|
|
||||
Public utilities
|
|
3,687
|
|
|
|
|
525
|
|
|
|
|
14
|
|
|
|
|
4,198
|
|
|
||||
Sovereign and supranational
|
|
2,998
|
|
|
|
|
402
|
|
|
|
|
6
|
|
|
|
|
3,394
|
|
|
||||
Banks/financial institutions
|
|
4,544
|
|
|
|
|
271
|
|
|
|
|
25
|
|
|
|
|
4,790
|
|
|
||||
Other corporate
|
|
3,250
|
|
|
|
|
634
|
|
|
|
|
10
|
|
|
|
|
3,874
|
|
|
||||
Total yen-denominated
|
|
38,772
|
|
|
|
|
9,220
|
|
|
|
|
55
|
|
|
|
|
47,937
|
|
|
||||
Total securities held to maturity
|
|
$
|
38,772
|
|
|
|
|
$
|
9,220
|
|
|
|
|
$
|
55
|
|
|
|
|
$
|
47,937
|
|
|
|
December 31, 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
|
|
$
|
17,293
|
|
|
|
|
$
|
1,862
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
19,155
|
|
|
Municipalities
|
|
128
|
|
|
|
|
9
|
|
|
|
|
0
|
|
|
|
|
137
|
|
|
||||
Mortgage- and asset-backed securities
|
|
322
|
|
|
|
|
33
|
|
|
|
|
0
|
|
|
|
|
355
|
|
|
||||
Public utilities
|
|
1,400
|
|
|
|
|
210
|
|
|
|
|
10
|
|
|
|
|
1,600
|
|
|
||||
Sovereign and supranational
|
|
791
|
|
|
|
|
180
|
|
|
|
|
0
|
|
|
|
|
971
|
|
|
||||
Banks/financial institutions
|
|
2,321
|
|
|
|
|
325
|
|
|
|
|
105
|
|
|
|
|
2,541
|
|
|
||||
Other corporate
|
|
3,337
|
|
|
|
|
448
|
|
|
|
|
33
|
|
|
|
|
3,752
|
|
|
||||
Total yen-denominated
|
|
25,592
|
|
|
|
|
3,067
|
|
|
|
|
148
|
|
|
|
|
28,511
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
110
|
|
|
|
|
11
|
|
|
|
|
0
|
|
|
|
|
121
|
|
|
||||
Municipalities
|
|
926
|
|
|
|
|
151
|
|
|
|
|
6
|
|
|
|
|
1,071
|
|
|
||||
Mortgage- and asset-backed securities
|
|
200
|
|
|
|
|
27
|
|
|
|
|
0
|
|
|
|
|
227
|
|
|
||||
Public utilities
|
|
5,464
|
|
|
|
|
636
|
|
|
|
|
221
|
|
|
|
|
5,879
|
|
|
||||
Sovereign and supranational
|
|
331
|
|
|
|
|
105
|
|
|
|
|
0
|
|
|
|
|
436
|
|
|
||||
Banks/financial institutions
|
|
2,865
|
|
|
|
|
634
|
|
|
|
|
21
|
|
|
|
|
3,478
|
|
|
||||
Other corporate
|
|
25,154
|
|
|
|
|
1,774
|
|
|
|
|
1,302
|
|
|
|
|
25,626
|
|
|
||||
Total dollar-denominated
|
|
35,050
|
|
|
|
|
3,338
|
|
|
|
|
1,550
|
|
|
|
|
36,838
|
|
|
||||
Total fixed maturities
|
|
60,642
|
|
|
|
|
6,405
|
|
|
|
|
1,698
|
|
|
|
|
65,349
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
1,581
|
|
|
|
|
143
|
|
|
|
|
93
|
|
|
|
|
1,631
|
|
|
||||
Other corporate
|
|
183
|
|
|
|
|
22
|
|
|
|
|
0
|
|
|
|
|
205
|
|
|
||||
Dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
77
|
|
|
|
|
35
|
|
|
|
|
1
|
|
|
|
|
111
|
|
|
||||
Total perpetual securities
|
|
1,841
|
|
|
|
|
200
|
|
|
|
|
94
|
|
|
|
|
1,947
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated
|
|
472
|
|
|
|
|
19
|
|
|
|
|
4
|
|
|
|
|
487
|
|
|
||||
Dollar-denominated
|
|
8
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
11
|
|
|
||||
Total equity securities
|
|
480
|
|
|
|
|
22
|
|
|
|
|
4
|
|
|
|
|
498
|
|
|
||||
Total securities available for sale
|
|
$
|
62,963
|
|
|
|
|
$
|
6,627
|
|
|
|
|
$
|
1,796
|
|
|
|
|
$
|
67,794
|
|
|
|
December 31, 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
|
|
$
|
20,004
|
|
|
|
|
$
|
3,387
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
23,391
|
|
|
Municipalities
|
|
341
|
|
|
|
|
74
|
|
|
|
|
0
|
|
|
|
|
415
|
|
|
||||
Mortgage- and asset-backed securities
|
|
36
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
38
|
|
|
||||
Public utilities
|
|
3,092
|
|
|
|
|
205
|
|
|
|
|
94
|
|
|
|
|
3,203
|
|
|
||||
Sovereign and supranational
|
|
2,555
|
|
|
|
|
182
|
|
|
|
|
26
|
|
|
|
|
2,711
|
|
|
||||
Banks/financial institutions
|
|
4,431
|
|
|
|
|
168
|
|
|
|
|
53
|
|
|
|
|
4,546
|
|
|
||||
Other corporate
|
|
3,000
|
|
|
|
|
260
|
|
|
|
|
44
|
|
|
|
|
3,216
|
|
|
||||
Total yen-denominated
|
|
33,459
|
|
|
|
|
4,278
|
|
|
|
|
217
|
|
|
|
|
37,520
|
|
|
||||
Total securities held to maturity
|
|
$
|
33,459
|
|
|
|
|
$
|
4,278
|
|
|
|
|
$
|
217
|
|
|
|
|
$
|
37,520
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
393
|
|
|
|
|
$
|
403
|
|
|
|
|
$
|
88
|
|
|
|
|
$
|
91
|
|
|
Due after one year through five years
|
|
3,808
|
|
|
|
|
3,882
|
|
|
|
|
686
|
|
|
|
|
754
|
|
|
||||
Due after five years through 10 years
|
|
12,340
|
|
|
|
|
12,616
|
|
|
|
|
2,644
|
|
|
|
|
2,900
|
|
|
||||
Due after 10 years
|
|
40,610
|
|
|
|
|
47,945
|
|
|
|
|
8,700
|
|
|
|
|
10,191
|
|
|
||||
Mortgage- and asset-backed securities
|
|
1,025
|
|
|
|
|
1,076
|
|
|
|
|
34
|
|
|
|
|
40
|
|
|
||||
Total fixed maturities available for sale
|
|
$
|
58,176
|
|
|
|
|
$
|
65,922
|
|
|
|
|
$
|
12,152
|
|
|
|
|
$
|
13,976
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due after one year through five years
|
|
$
|
2,314
|
|
|
|
|
$
|
2,454
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after five years through 10 years
|
|
1,825
|
|
|
|
|
2,030
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
34,596
|
|
|
|
|
43,414
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Mortgage- and asset-backed securities
|
|
37
|
|
|
|
|
39
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total fixed maturities held to maturity
|
|
$
|
38,772
|
|
|
|
|
$
|
47,937
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Due in one year or less
|
|
$
|
154
|
|
|
|
|
$
|
117
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after one year through five years
|
|
384
|
|
|
|
|
409
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
1,373
|
|
|
|
|
1,411
|
|
|
|
|
39
|
|
|
|
|
57
|
|
|
||||
Total perpetual securities available for sale
|
|
$
|
1,911
|
|
|
|
|
$
|
1,937
|
|
|
|
|
$
|
39
|
|
|
|
|
$
|
57
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
Japan National Government
(1)
|
A
|
|
$45,808
|
|
$57,547
|
|
A
|
|
$36,859
|
|
$42,025
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
||||||||
Gross gains from sales
|
$
|
2
|
|
|
$
|
20
|
|
(1)
|
$
|
10
|
|
|
$
|
124
|
|
|
Gross losses from sales
|
(20
|
)
|
(1)
|
(6
|
)
|
|
(36
|
)
|
(1)
|
(6
|
)
|
|
||||
Net gains (losses) from redemptions
|
(4
|
)
|
(1)
|
12
|
|
(1)
|
74
|
|
(1)
|
38
|
|
|
||||
Other-than-temporary impairment losses
|
(1
|
)
|
(1)
|
(136
|
)
|
|
(22
|
)
|
(1)
|
(142
|
)
|
|
||||
Total fixed maturities
|
(23
|
)
|
|
(110
|
)
|
|
26
|
|
|
14
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
||||||||
Net gains (losses) from redemptions
|
0
|
|
|
0
|
|
|
40
|
|
|
30
|
|
|
||||
Other-than-temporary impairment losses
|
0
|
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
|
||||
Total perpetual securities
|
0
|
|
|
0
|
|
|
38
|
|
|
30
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Gross gains from sales
|
5
|
|
|
0
|
|
|
10
|
|
|
0
|
|
|
||||
Gross losses from sales
|
0
|
|
|
0
|
|
|
(11
|
)
|
|
0
|
|
|
||||
Other-than-temporary impairment losses
|
(21
|
)
|
|
(1
|
)
|
|
(45
|
)
|
|
(1
|
)
|
|
||||
Total equity securities
|
(16
|
)
|
|
(1
|
)
|
|
(46
|
)
|
|
(1
|
)
|
|
||||
Derivatives and other:
|
|
|
|
|
|
|
|
|
||||||||
Derivative gains (losses)
|
(107
|
)
|
|
(3
|
)
|
|
(278
|
)
|
|
(17
|
)
|
|
||||
Total derivatives and other
|
(107
|
)
|
|
(3
|
)
|
|
(278
|
)
|
|
(17
|
)
|
|
||||
Total realized investment gains (losses)
|
$
|
(146
|
)
|
|
$
|
(114
|
)
|
|
$
|
(260
|
)
|
|
$
|
26
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Perpetual securities
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
2
|
|
|
$
|
0
|
|
|
Corporate bonds
|
1
|
|
|
5
|
|
|
22
|
|
|
7
|
|
|
||||
Bank/financial institution bonds
|
0
|
|
|
131
|
|
|
0
|
|
|
135
|
|
|
||||
Equity securities
|
21
|
|
|
1
|
|
|
45
|
|
|
1
|
|
|
||||
Total other-than-temporary impairment losses realized
(1)
|
$
|
22
|
|
|
$
|
137
|
|
|
$
|
69
|
|
|
$
|
143
|
|
|
(In millions)
|
September 30, 2016
|
|
December 31,
2015 |
||||||||
Unrealized gains (losses) on securities available for sale
|
|
$
|
9,651
|
|
|
|
|
$
|
4,831
|
|
|
Deferred income taxes
|
|
(3,531
|
)
|
|
|
|
(1,845
|
)
|
|
||
Shareholders’ equity, unrealized gains (losses) on investment securities
|
|
$
|
6,120
|
|
|
|
|
$
|
2,986
|
|
|
|
September 30, 2016
|
||||||||||||||||||||||||||||||||||
|
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
|
|
$
|
689
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
689
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
50
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
50
|
|
|
|
|
3
|
|
|
||||||
Yen-denominated
|
|
62
|
|
|
|
|
2
|
|
|
|
|
62
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Mortgage- and asset-
backed securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
413
|
|
|
|
|
3
|
|
|
|
|
413
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
1,199
|
|
|
|
|
54
|
|
|
|
|
448
|
|
|
|
|
13
|
|
|
|
|
751
|
|
|
|
|
41
|
|
|
||||||
Yen-denominated
|
|
648
|
|
|
|
|
14
|
|
|
|
|
313
|
|
|
|
|
3
|
|
|
|
|
335
|
|
|
|
|
11
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
242
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
242
|
|
|
|
|
6
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
150
|
|
|
|
|
11
|
|
|
|
|
85
|
|
|
|
|
4
|
|
|
|
|
65
|
|
|
|
|
7
|
|
|
||||||
Yen-denominated
|
|
1,415
|
|
|
|
|
124
|
|
|
|
|
324
|
|
|
|
|
4
|
|
|
|
|
1,091
|
|
|
|
|
120
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
7,752
|
|
|
|
|
679
|
|
|
|
|
4,058
|
|
|
|
|
236
|
|
|
|
|
3,694
|
|
|
|
|
443
|
|
|
||||||
Yen-denominated
|
|
897
|
|
|
|
|
53
|
|
|
|
|
364
|
|
|
|
|
13
|
|
|
|
|
533
|
|
|
|
|
40
|
|
|
||||||
Total fixed maturities
|
|
13,517
|
|
|
|
|
972
|
|
|
|
|
6,756
|
|
|
|
|
301
|
|
|
|
|
6,761
|
|
|
|
|
671
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
630
|
|
|
|
|
126
|
|
|
|
|
97
|
|
|
|
|
1
|
|
|
|
|
533
|
|
|
|
|
125
|
|
|
||||||
Total perpetual securities
|
|
630
|
|
|
|
|
126
|
|
|
|
|
97
|
|
|
|
|
1
|
|
|
|
|
533
|
|
|
|
|
125
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
183
|
|
|
|
|
9
|
|
|
|
|
183
|
|
|
|
|
9
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Yen-denominated
|
|
382
|
|
|
|
|
42
|
|
|
|
|
382
|
|
|
|
|
42
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total equity securities
|
|
565
|
|
|
|
|
51
|
|
|
|
|
565
|
|
|
|
|
51
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
14,712
|
|
|
|
|
$
|
1,149
|
|
|
|
|
$
|
7,418
|
|
|
|
|
$
|
353
|
|
|
|
|
$
|
7,294
|
|
|
|
|
$
|
796
|
|
|
|
December 31, 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
$
|
80
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
80
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
2,127
|
|
|
|
|
221
|
|
|
|
|
1,689
|
|
|
|
|
132
|
|
|
|
|
438
|
|
|
|
|
89
|
|
|
||||||
Yen-denominated
|
|
1,487
|
|
|
|
|
104
|
|
|
|
|
1,062
|
|
|
|
|
73
|
|
|
|
|
425
|
|
|
|
|
31
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
580
|
|
|
|
|
26
|
|
|
|
|
385
|
|
|
|
|
13
|
|
|
|
|
195
|
|
|
|
|
13
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
366
|
|
|
|
|
21
|
|
|
|
|
348
|
|
|
|
|
11
|
|
|
|
|
18
|
|
|
|
|
10
|
|
|
||||||
Yen-denominated
|
|
2,350
|
|
|
|
|
158
|
|
|
|
|
1,147
|
|
|
|
|
14
|
|
|
|
|
1,203
|
|
|
|
|
144
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
13,430
|
|
|
|
|
1,302
|
|
|
|
|
11,068
|
|
|
|
|
770
|
|
|
|
|
2,362
|
|
|
|
|
532
|
|
|
||||||
Yen-denominated
|
|
1,151
|
|
|
|
|
77
|
|
|
|
|
343
|
|
|
|
|
5
|
|
|
|
|
808
|
|
|
|
|
72
|
|
|
||||||
Total fixed maturities
|
|
21,571
|
|
|
|
|
1,915
|
|
|
|
|
16,122
|
|
|
|
|
1,024
|
|
|
|
|
5,449
|
|
|
|
|
891
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar-denominated
|
|
6
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
6
|
|
|
|
|
1
|
|
|
||||||
Yen-denominated
|
|
645
|
|
|
|
|
93
|
|
|
|
|
216
|
|
|
|
|
12
|
|
|
|
|
429
|
|
|
|
|
81
|
|
|
||||||
Total perpetual securities
|
|
651
|
|
|
|
|
94
|
|
|
|
|
216
|
|
|
|
|
12
|
|
|
|
|
435
|
|
|
|
|
82
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
191
|
|
|
|
|
4
|
|
|
|
|
191
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total equity securities
|
|
191
|
|
|
|
|
4
|
|
|
|
|
191
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
22,413
|
|
|
|
|
$
|
2,013
|
|
|
|
|
$
|
16,529
|
|
|
|
|
$
|
1,040
|
|
|
|
|
$
|
5,884
|
|
|
|
|
$
|
973
|
|
|
|
|
September 30, 2016
|
|
|
December 31, 2015
|
|
||||||||||||||||||
(In millions)
|
Investments
in an Unrealized
Loss Position
|
Gross
Unrealized Losses |
Gross
Unrealized Losses that are Investment Grade |
Investments
in an Unrealized
Loss Position
|
Gross
Unrealized Losses |
Gross
Unrealized Losses that are Investment Grade |
||||||||||||||||||
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Japan government and
agencies |
|
4
|
%
|
|
|
2
|
%
|
|
|
100
|
%
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
0
|
%
|
|
Municipalities
|
|
1
|
|
|
|
1
|
|
|
|
100
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
Mortgage- and asset-
backed securities |
|
3
|
|
|
|
0
|
|
|
|
100
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
Public utilities
|
|
12
|
|
|
|
6
|
|
|
|
88
|
|
|
|
16
|
|
|
|
16
|
|
|
|
93
|
|
|
Sovereign and
supranational |
|
2
|
|
|
|
1
|
|
|
|
100
|
|
|
|
3
|
|
|
|
1
|
|
|
|
100
|
|
|
Banks/financial
institutions |
|
11
|
|
|
|
12
|
|
|
|
38
|
|
|
|
12
|
|
|
|
9
|
|
|
|
59
|
|
|
Other corporate
|
|
59
|
|
|
|
63
|
|
|
|
47
|
|
|
|
66
|
|
|
|
69
|
|
|
|
86
|
|
|
Total fixed
maturities |
|
92
|
|
|
|
85
|
|
|
|
|
|
|
97
|
|
|
|
95
|
|
|
|
|
|
||
Perpetual securities
|
|
4
|
|
|
|
11
|
|
|
|
100
|
|
|
|
3
|
|
|
|
5
|
|
|
|
100
|
|
|
Equity securities
|
|
4
|
|
|
|
4
|
|
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
|
||
Total
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(In millions)
|
Cost or Amortized
Cost |
|
Fair
Value |
|
Cost or Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
4,870
|
|
|
|
|
$
|
5,494
|
|
|
|
|
$
|
3,739
|
|
|
|
|
$
|
4,554
|
|
|
Perpetual securities, available for sale
|
|
273
|
|
|
|
|
219
|
|
|
|
|
255
|
|
|
|
|
228
|
|
|
||||
Equity securities
|
|
1,036
|
|
|
|
|
1,014
|
|
|
|
|
363
|
|
|
|
|
363
|
|
|
||||
Other investments
|
|
489
|
|
|
|
|
494
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Other assets
|
|
168
|
|
|
|
|
168
|
|
|
|
|
102
|
|
|
|
|
102
|
|
|
||||
Total assets of consolidated VIEs
|
|
$
|
6,836
|
|
|
|
|
$
|
7,389
|
|
|
|
|
$
|
4,459
|
|
|
|
|
$
|
5,247
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
|
$
|
124
|
|
|
|
|
$
|
124
|
|
|
|
|
$
|
293
|
|
|
|
|
$
|
293
|
|
|
Total liabilities of consolidated VIEs
|
|
$
|
124
|
|
|
|
|
$
|
124
|
|
|
|
|
$
|
293
|
|
|
|
|
$
|
293
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
5,241
|
|
|
|
|
$
|
5,814
|
|
|
|
|
$
|
4,731
|
|
|
|
|
$
|
5,093
|
|
|
Perpetual securities, available for sale
|
|
297
|
|
|
|
|
312
|
|
|
|
|
249
|
|
|
|
|
253
|
|
|
||||
Fixed maturities, held to maturity
|
|
2,953
|
|
|
|
|
3,489
|
|
|
|
|
2,477
|
|
|
|
|
2,636
|
|
|
||||
Total investments in VIEs not consolidated
|
|
$
|
8,491
|
|
|
|
|
$
|
9,615
|
|
|
|
|
$
|
7,457
|
|
|
|
|
$
|
7,982
|
|
|
Securities Lending Transactions Accounted for as Secured Borrowings
|
||||||||||||
December 31, 2015
|
||||||||||||
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
|
|
|
$
|
499
|
|
|
|
$
|
499
|
|
Public utilities
|
108
|
|
|
0
|
|
|
|
108
|
|
|||
Banks/financial institutions
|
13
|
|
|
0
|
|
|
|
13
|
|
|||
Other corporate
|
321
|
|
|
0
|
|
|
|
321
|
|
|||
Total borrowings
|
$
|
442
|
|
|
$
|
499
|
|
|
|
$
|
941
|
|
Gross amount of recognized liabilities for securities lending transactions
|
|
$
|
941
|
|
||||||||
Amounts related to agreements not included in offsetting disclosure in Note 4
|
|
$
|
0
|
|
4.
|
DERIVATIVE INSTRUMENTS
|
|
September 30, 2016
|
December 31, 2015
|
||||||||||||||||||||||||||||
(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
|
|
$
|
4,193
|
|
|
|
$
|
123
|
|
|
|
$
|
(110
|
)
|
|
|
$
|
2,187
|
|
|
|
$
|
166
|
|
|
|
$
|
(35
|
)
|
|
A
|
|
33,946
|
|
|
|
1,482
|
|
|
|
(425
|
)
|
|
|
19,940
|
|
|
|
510
|
|
|
|
(336
|
)
|
|
||||||
BBB
|
|
1,099
|
|
|
|
57
|
|
|
|
(66
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
39,238
|
|
|
|
$
|
1,662
|
|
|
|
$
|
(601
|
)
|
|
|
$
|
22,127
|
|
|
|
$
|
676
|
|
|
|
$
|
(371
|
)
|
|
|
|
September 30, 2016
|
|
||||||||||||||||||||
(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
|
|
|
|
|
$
|
(1
|
)
|
|
|
|
$
|
1
|
|
|
|
|
$
|
(2
|
)
|
|
Total cash flow hedges
|
|
75
|
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
|
|
|
(2
|
)
|
|
||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
15,579
|
|
|
|
|
586
|
|
|
|
|
627
|
|
|
|
|
(41
|
)
|
|
||||
Foreign currency options
|
|
2,115
|
|
|
|
|
2
|
|
|
|
|
4
|
|
|
|
|
(2
|
)
|
|
||||
Total fair value hedges
|
|
17,694
|
|
|
|
|
588
|
|
|
|
|
631
|
|
|
|
|
(43
|
)
|
|
||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
292
|
|
|
|
|
(37
|
)
|
|
|
|
0
|
|
|
|
|
(37
|
)
|
|
||||
Foreign currency options
|
|
826
|
|
|
|
|
(48
|
)
|
|
|
|
6
|
|
|
|
|
(54
|
)
|
|
||||
Total net investment hedge
|
|
1,118
|
|
|
|
|
(85
|
)
|
|
|
|
6
|
|
|
|
|
(91
|
)
|
|
||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
6,687
|
|
|
|
|
25
|
|
|
|
|
459
|
|
|
|
|
(434
|
)
|
|
||||
Foreign currency forwards
|
|
13,565
|
|
|
|
|
531
|
|
|
|
|
562
|
|
|
|
|
(31
|
)
|
|
||||
Credit default swaps
|
|
99
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
||||
Total non-qualifying strategies
|
|
20,351
|
|
|
|
|
559
|
|
|
|
|
1,024
|
|
|
|
|
(465
|
)
|
|
||||
Total derivatives
|
|
$
|
39,238
|
|
|
|
|
$
|
1,061
|
|
|
|
|
$
|
1,662
|
|
|
|
|
$
|
(601
|
)
|
|
Balance Sheet Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
$
|
25,019
|
|
|
|
|
$
|
1,662
|
|
|
|
|
$
|
1,662
|
|
|
|
|
$
|
0
|
|
|
Other liabilities
|
|
14,219
|
|
|
|
|
(601
|
)
|
|
|
|
0
|
|
|
|
|
(601
|
)
|
|
||||
Total derivatives
|
|
$
|
39,238
|
|
|
|
|
$
|
1,061
|
|
|
|
|
$
|
1,662
|
|
|
|
|
$
|
(601
|
)
|
|
|
|
December 31, 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
|
|
|
|
|
$
|
(15
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(15
|
)
|
|
Total cash flow hedges
|
|
75
|
|
|
|
|
(15
|
)
|
|
|
|
0
|
|
|
|
|
(15
|
)
|
|
||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
13,080
|
|
|
|
|
45
|
|
|
|
|
88
|
|
|
|
|
(43
|
)
|
|
||||
Foreign currency options
|
|
1,250
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total fair value hedges
|
|
14,330
|
|
|
|
|
45
|
|
|
|
|
88
|
|
|
|
|
(43
|
)
|
|
||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
|
|
763
|
|
|
|
|
13
|
|
|
|
|
19
|
|
|
|
|
(6
|
)
|
|
||||
Foreign currency options
|
|
266
|
|
|
|
|
(3
|
)
|
|
|
|
5
|
|
|
|
|
(8
|
)
|
|
||||
Total net investment hedge
|
|
1,029
|
|
|
|
|
10
|
|
|
|
|
24
|
|
|
|
|
(14
|
)
|
|
||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
6,599
|
|
|
|
|
264
|
|
|
|
|
563
|
|
|
|
|
(299
|
)
|
|
||||
Foreign currency forwards
|
|
11
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Credit default swaps
|
|
83
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
||||
Total non-qualifying strategies
|
|
6,693
|
|
|
|
|
265
|
|
|
|
|
564
|
|
|
|
|
(299
|
)
|
|
||||
Total derivatives
|
|
$
|
22,127
|
|
|
|
|
$
|
305
|
|
|
|
|
$
|
676
|
|
|
|
|
$
|
(371
|
)
|
|
Balance Sheet Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other assets
|
|
$
|
11,413
|
|
|
|
|
$
|
676
|
|
|
|
|
$
|
676
|
|
|
|
|
$
|
0
|
|
|
Other liabilities
|
|
10,714
|
|
|
|
|
(371
|
)
|
|
|
|
0
|
|
|
|
|
(371
|
)
|
|
||||
Total derivatives
|
|
$
|
22,127
|
|
|
|
|
$
|
305
|
|
|
|
|
$
|
676
|
|
|
|
|
$
|
(371
|
)
|
|
(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, 2016:
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency
forwards |
Fixed-maturity securities and equity securities
|
|
$
|
90
|
|
|
$
|
(186
|
)
|
|
$
|
276
|
|
|
$
|
(288
|
)
|
|
$
|
(12
|
)
|
Foreign currency
options |
Fixed-maturity securities
|
|
(4
|
)
|
|
(4
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Nine Months Ended September 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency forwards
|
Fixed-maturity securities and equity securities
|
|
$
|
2,103
|
|
|
$
|
(278
|
)
|
|
$
|
2,381
|
|
|
$
|
(2,406
|
)
|
|
$
|
(25
|
)
|
Foreign currency options
|
Fixed-maturity securities
|
|
2
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
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,
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||||||||||||||||||||||
(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
|
|
|
|
$
|
0
|
|
|
|
$
|
0
|
|
|
|
$
|
(1
|
)
|
|
|
$
|
1
|
|
|
|
$
|
11
|
|
|
|
$
|
0
|
|
|
|
$
|
(3
|
)
|
|
Total cash flow
hedges
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
11
|
|
|
|
0
|
|
|
|
(3
|
)
|
|
||||||||
Fair value
hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign
currency
forwards
(2)
|
|
(198
|
)
|
|
|
0
|
|
|
|
(20
|
)
|
|
|
0
|
|
|
|
(303
|
)
|
|
|
0
|
|
|
|
(45
|
)
|
|
|
0
|
|
|
||||||||
Foreign
currency
options
(2)
|
|
(4
|
)
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
0
|
|
|
|
2
|
|
|
|
0
|
|
|
|
3
|
|
|
|
0
|
|
|
||||||||
Interest rate
swaptions
(2)
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
4
|
|
|
|
0
|
|
|
||||||||
Total fair value
hedges
|
|
(202
|
)
|
|
|
0
|
|
|
|
(21
|
)
|
|
|
0
|
|
|
|
(301
|
)
|
|
|
0
|
|
|
|
(38
|
)
|
|
|
0
|
|
|
||||||||
Net investment
hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-
derivative
hedging
instruments
|
|
0
|
|
|
|
(2
|
)
|
|
|
0
|
|
|
|
(4
|
)
|
|
|
0
|
|
|
|
(39
|
)
|
|
|
0
|
|
|
|
1
|
|
|
||||||||
Foreign
currency
forwards
|
|
0
|
|
|
|
(28
|
)
|
|
|
0
|
|
|
|
(35
|
)
|
|
|
0
|
|
|
|
(161
|
)
|
|
|
0
|
|
|
|
(1
|
)
|
|
||||||||
Foreign
currency
options
|
|
0
|
|
|
|
31
|
|
|
|
0
|
|
|
|
(3
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(3
|
)
|
|
||||||||
Total net
investment
hedge
|
|
0
|
|
|
|
1
|
|
|
|
0
|
|
|
|
(42
|
)
|
|
|
0
|
|
|
|
(200
|
)
|
|
|
0
|
|
|
|
(3
|
)
|
|
||||||||
Non-qualifying
strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign
currency
swaps
|
|
(51
|
)
|
|
|
0
|
|
|
|
2
|
|
|
|
0
|
|
|
|
(145
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||||
Foreign
currency
forwards
|
|
144
|
|
|
|
0
|
|
|
|
17
|
|
|
|
0
|
|
|
|
165
|
|
|
|
0
|
|
|
|
16
|
|
|
|
0
|
|
|
||||||||
Credit
default
swaps
|
|
2
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
0
|
|
|
|
2
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||||
Interest rate
swaps
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
5
|
|
|
|
0
|
|
|
||||||||
Total non-
qualifying
strategies
|
|
95
|
|
|
|
0
|
|
|
|
18
|
|
|
|
0
|
|
|
|
22
|
|
|
|
0
|
|
|
|
21
|
|
|
|
0
|
|
|
||||||||
Total
|
|
$
|
(107
|
)
|
|
|
$
|
1
|
|
|
|
$
|
(3
|
)
|
|
|
$
|
(43
|
)
|
|
|
$
|
(278
|
)
|
|
|
$
|
(189
|
)
|
|
|
$
|
(17
|
)
|
|
|
$
|
(6
|
)
|
|
September 30, 2016
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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
|
|
$
|
460
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
460
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(142
|
)
|
|
|
|
$
|
318
|
|
|
Foreign currency forwards
|
|
1,189
|
|
|
|
|
0
|
|
|
|
|
1,189
|
|
|
|
|
0
|
|
|
|
(1,134
|
)
|
|
|
|
55
|
|
|
||||||
Foreign currency options
|
|
10
|
|
|
|
|
0
|
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
|
9
|
|
|
||||||
Credit default swaps
|
|
3
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
3
|
|
|
||||||
Total derivative assets,
subject to a master netting arrangement or offsetting arrangement |
|
1,662
|
|
|
|
|
0
|
|
|
|
|
1,662
|
|
|
|
|
0
|
|
|
|
(1,277
|
)
|
(1)
|
|
|
385
|
|
|
||||||
Securities lending and
similar arrangements |
|
1,029
|
|
|
|
|
0
|
|
|
|
|
1,029
|
|
|
|
|
0
|
|
|
|
(1,029
|
)
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
2,691
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
2,691
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(2,306
|
)
|
|
|
|
$
|
385
|
|
|
December 31, 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
|
|
$
|
563
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
563
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(313
|
)
|
|
|
|
$
|
250
|
|
|
Foreign currency forwards
|
|
107
|
|
|
|
|
0
|
|
|
|
|
107
|
|
|
|
|
0
|
|
|
|
(96
|
)
|
|
|
|
11
|
|
|
||||||
Foreign currency options
|
|
5
|
|
|
|
|
0
|
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
(3
|
)
|
|
|
|
2
|
|
|
||||||
Credit default swaps
|
|
1
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||||
Total derivative assets,
subject to a master netting arrangement or offsetting arrangement |
|
676
|
|
|
|
|
0
|
|
|
|
|
676
|
|
|
|
|
0
|
|
|
|
(412
|
)
|
(1)
|
|
|
264
|
|
|
||||||
Securities lending and
similar arrangements |
|
921
|
|
|
|
|
0
|
|
|
|
|
921
|
|
|
|
|
0
|
|
|
|
(921
|
)
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
1,597
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
1,597
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(1,333
|
)
|
|
|
|
$
|
264
|
|
|
September 30, 2016
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
(436
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(436
|
)
|
|
|
|
$
|
0
|
|
|
|
$
|
168
|
|
|
|
|
$
|
(268
|
)
|
|
Foreign currency forwards
|
|
(109
|
)
|
|
|
|
0
|
|
|
|
|
(109
|
)
|
|
|
|
0
|
|
|
|
37
|
|
|
|
|
(72
|
)
|
|
||||||
Foreign currency options
|
|
(56
|
)
|
|
|
|
0
|
|
|
|
|
(56
|
)
|
|
|
|
0
|
|
|
|
54
|
|
|
|
|
(2
|
)
|
|
||||||
Total derivative liabilities,
subject to a master netting arrangement or offsetting arrangement |
|
(601
|
)
|
|
|
|
0
|
|
|
|
|
(601
|
)
|
|
|
|
0
|
|
|
|
259
|
|
(1)
|
|
|
(342
|
)
|
|
||||||
Securities lending and
similar arrangements |
|
(1,053
|
)
|
|
|
|
0
|
|
|
|
|
(1,053
|
)
|
|
|
|
1,029
|
|
|
|
0
|
|
|
|
|
(24
|
)
|
|
||||||
Total
|
|
$
|
(1,654
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(1,654
|
)
|
|
|
|
$
|
1,029
|
|
|
|
$
|
259
|
|
|
|
|
$
|
(366
|
)
|
|
December 31, 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
|
|
$
|
(314
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(314
|
)
|
|
|
|
$
|
0
|
|
|
|
$
|
1
|
|
|
|
|
$
|
(313
|
)
|
|
Foreign currency forwards
|
|
(49
|
)
|
|
|
|
0
|
|
|
|
|
(49
|
)
|
|
|
|
0
|
|
|
|
18
|
|
|
|
|
(31
|
)
|
|
||||||
Foreign currency options
|
|
(8
|
)
|
|
|
|
0
|
|
|
|
|
(8
|
)
|
|
|
|
0
|
|
|
|
1
|
|
|
|
|
(7
|
)
|
|
||||||
Total derivative liabilities,
subject to a master netting arrangement or offsetting arrangement |
|
(371
|
)
|
|
|
|
0
|
|
|
|
|
(371
|
)
|
|
|
|
0
|
|
|
|
20
|
|
(1)
|
|
|
(351
|
)
|
|
||||||
Securities lending and
similar arrangements |
|
(941
|
)
|
|
|
|
0
|
|
|
|
|
(941
|
)
|
|
|
|
921
|
|
|
|
0
|
|
|
|
|
(20
|
)
|
|
||||||
Total
|
|
$
|
(1,312
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(1,312
|
)
|
|
|
|
$
|
921
|
|
|
|
$
|
20
|
|
|
|
|
$
|
(371
|
)
|
|
5.
|
FAIR VALUE MEASUREMENTS
|
|
September 30, 2016
|
||||||||||||||||||||||
(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
|
|
$
|
26,537
|
|
|
|
|
$
|
869
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
27,406
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,353
|
|
|
|
|
0
|
|
|
|
|
1,353
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
988
|
|
|
|
|
240
|
|
|
|
|
1,228
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
8,509
|
|
|
|
|
0
|
|
|
|
|
8,509
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,598
|
|
|
|
|
0
|
|
|
|
|
1,598
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
6,318
|
|
|
|
|
26
|
|
|
|
|
6,344
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
34,089
|
|
|
|
|
0
|
|
|
|
|
34,089
|
|
|
||||
Total fixed maturities
|
|
26,537
|
|
|
|
|
53,724
|
|
|
|
|
266
|
|
|
|
|
80,527
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
1,768
|
|
|
|
|
0
|
|
|
|
|
1,768
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
226
|
|
|
|
|
0
|
|
|
|
|
226
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
1,994
|
|
|
|
|
0
|
|
|
|
|
1,994
|
|
|
||||
Equity securities
|
|
1,269
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|
|
1,278
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
295
|
|
|
|
|
165
|
|
|
|
|
460
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
1,189
|
|
|
|
|
0
|
|
|
|
|
1,189
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|
|
10
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
1,494
|
|
|
|
|
168
|
|
|
|
|
1,662
|
|
|
||||
Other investments
|
|
299
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
299
|
|
|
||||
Cash and cash equivalents
|
|
5,270
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
5,270
|
|
|
||||
Total assets
|
|
$
|
33,375
|
|
|
|
|
$
|
57,218
|
|
|
|
|
$
|
437
|
|
|
|
|
$
|
91,030
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
312
|
|
|
|
|
$
|
124
|
|
|
|
|
$
|
436
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
109
|
|
|
|
|
0
|
|
|
|
|
109
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
56
|
|
|
|
|
0
|
|
|
|
|
56
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
477
|
|
|
|
|
$
|
124
|
|
|
|
|
$
|
601
|
|
|
|
December 31, 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
|
|
$
|
18,669
|
|
|
|
|
$
|
607
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
19,276
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,208
|
|
|
|
|
0
|
|
|
|
|
1,208
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
362
|
|
|
|
|
220
|
|
|
|
|
582
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
7,479
|
|
|
|
|
0
|
|
|
|
|
7,479
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,407
|
|
|
|
|
0
|
|
|
|
|
1,407
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
5,993
|
|
|
|
|
26
|
|
|
|
|
6,019
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
29,378
|
|
|
|
|
0
|
|
|
|
|
29,378
|
|
|
||||
Total fixed maturities
|
|
18,669
|
|
|
|
|
46,434
|
|
|
|
|
246
|
|
|
|
|
65,349
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
1,742
|
|
|
|
|
0
|
|
|
|
|
1,742
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
205
|
|
|
|
|
0
|
|
|
|
|
205
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
1,947
|
|
|
|
|
0
|
|
|
|
|
1,947
|
|
|
||||
Equity securities
|
|
489
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|
|
498
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
462
|
|
|
|
|
101
|
|
|
|
|
563
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
107
|
|
|
|
|
0
|
|
|
|
|
107
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
|
5
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
574
|
|
|
|
|
102
|
|
|
|
|
676
|
|
|
||||
Other investments
|
|
176
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
176
|
|
|
||||
Cash and cash equivalents
|
|
4,350
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4,350
|
|
|
||||
Total assets
|
|
$
|
23,684
|
|
|
|
|
$
|
48,961
|
|
|
|
|
$
|
351
|
|
|
|
|
$
|
72,996
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
21
|
|
|
|
|
$
|
293
|
|
|
|
|
$
|
314
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
49
|
|
|
|
|
0
|
|
|
|
|
49
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
8
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
78
|
|
|
|
|
$
|
293
|
|
|
|
|
$
|
371
|
|
|
|
September 30, 2016
|
|||||||||||||||||||||||||||
(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
|
|
$
|
23,852
|
|
|
|
$
|
31,093
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
31,093
|
|
|
Municipalities
|
|
404
|
|
|
|
0
|
|
|
|
|
549
|
|
|
|
|
0
|
|
|
|
|
549
|
|
|
|||||
Mortgage and asset-backed
securities |
|
37
|
|
|
|
0
|
|
|
|
|
12
|
|
|
|
|
27
|
|
|
|
|
39
|
|
|
|||||
Public utilities
|
|
3,687
|
|
|
|
0
|
|
|
|
|
4,198
|
|
|
|
|
0
|
|
|
|
|
4,198
|
|
|
|||||
Sovereign and
supranational |
|
2,998
|
|
|
|
0
|
|
|
|
|
3,394
|
|
|
|
|
0
|
|
|
|
|
3,394
|
|
|
|||||
Banks/financial institutions
|
|
4,544
|
|
|
|
0
|
|
|
|
|
4,790
|
|
|
|
|
0
|
|
|
|
|
4,790
|
|
|
|||||
Other corporate
|
|
3,250
|
|
|
|
0
|
|
|
|
|
3,874
|
|
|
|
|
0
|
|
|
|
|
3,874
|
|
|
|||||
Other investments
|
|
795
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
801
|
|
|
|
|
801
|
|
|
|||||
Total assets
|
|
$
|
39,567
|
|
|
|
$
|
31,093
|
|
|
|
|
$
|
16,817
|
|
|
|
|
$
|
828
|
|
|
|
|
$
|
48,738
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
7,646
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
7,377
|
|
|
|
|
$
|
7,377
|
|
|
Notes payable
(excluding capital leases) |
|
5,743
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
5,994
|
|
|
|
|
5,994
|
|
|
|||||
Total liabilities
|
|
$
|
13,389
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
13,371
|
|
|
|
|
$
|
13,371
|
|
|
|
December 31, 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
|
|
$
|
20,004
|
|
|
|
$
|
23,391
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
23,391
|
|
|
Municipalities
|
|
341
|
|
|
|
0
|
|
|
|
|
415
|
|
|
|
|
0
|
|
|
|
|
415
|
|
|
|||||
Mortgage and asset-backed
securities |
|
36
|
|
|
|
0
|
|
|
|
|
12
|
|
|
|
|
26
|
|
|
|
|
38
|
|
|
|||||
Public utilities
|
|
3,092
|
|
|
|
0
|
|
|
|
|
3,203
|
|
|
|
|
0
|
|
|
|
|
3,203
|
|
|
|||||
Sovereign and
supranational |
|
2,555
|
|
|
|
0
|
|
|
|
|
2,711
|
|
|
|
|
0
|
|
|
|
|
2,711
|
|
|
|||||
Banks/financial institutions
|
|
4,431
|
|
|
|
0
|
|
|
|
|
4,546
|
|
|
|
|
0
|
|
|
|
|
4,546
|
|
|
|||||
Other corporate
|
|
3,000
|
|
|
|
0
|
|
|
|
|
3,216
|
|
|
|
|
0
|
|
|
|
|
3,216
|
|
|
|||||
Other investments
|
|
118
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
118
|
|
|
|
|
118
|
|
|
|||||
Total assets
|
|
$
|
33,577
|
|
|
|
$
|
23,391
|
|
|
|
|
$
|
14,103
|
|
|
|
|
$
|
144
|
|
|
|
|
$
|
37,638
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
6,285
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
6,160
|
|
|
|
|
$
|
6,160
|
|
|
Notes payable
(excluding capital leases) |
|
4,991
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
5,285
|
|
|
|
|
5,285
|
|
|
|||||
Total liabilities
|
|
$
|
11,276
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
11,445
|
|
|
|
|
$
|
11,445
|
|
|
|
|
September 30, 2016
|
||||||||||||||||||||||
(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
|
|
|
$
|
26,537
|
|
|
|
|
$
|
869
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
27,406
|
|
|
Total government and agencies
|
|
|
26,537
|
|
|
|
|
869
|
|
|
|
|
0
|
|
|
|
|
27,406
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,353
|
|
|
|
|
0
|
|
|
|
|
1,353
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,353
|
|
|
|
|
0
|
|
|
|
|
1,353
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
988
|
|
|
|
|
0
|
|
|
|
|
988
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
240
|
|
|
|
|
240
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
988
|
|
|
|
|
240
|
|
|
|
|
1,228
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
8,509
|
|
|
|
|
0
|
|
|
|
|
8,509
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
8,509
|
|
|
|
|
0
|
|
|
|
|
8,509
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,598
|
|
|
|
|
0
|
|
|
|
|
1,598
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,598
|
|
|
|
|
0
|
|
|
|
|
1,598
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
6,318
|
|
|
|
|
0
|
|
|
|
|
6,318
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
26
|
|
|
|
|
26
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
6,318
|
|
|
|
|
26
|
|
|
|
|
6,344
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
34,089
|
|
|
|
|
0
|
|
|
|
|
34,089
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
34,089
|
|
|
|
|
0
|
|
|
|
|
34,089
|
|
|
||||
Total fixed maturities
|
|
|
26,537
|
|
|
|
|
53,724
|
|
|
|
|
266
|
|
|
|
|
80,527
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,768
|
|
|
|
|
0
|
|
|
|
|
1,768
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
1,768
|
|
|
|
|
0
|
|
|
|
|
1,768
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
226
|
|
|
|
|
0
|
|
|
|
|
226
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
226
|
|
|
|
|
0
|
|
|
|
|
226
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
1,994
|
|
|
|
|
0
|
|
|
|
|
1,994
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
1,269
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
1,275
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
||||
Total equity securities
|
|
|
1,269
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|
|
1,278
|
|
|
||||
Total securities available for sale
|
|
|
$
|
27,806
|
|
|
|
|
$
|
55,724
|
|
|
|
|
$
|
269
|
|
|
|
|
$
|
83,799
|
|
|
|
|
September 30, 2016
|
||||||||||||||||||||||
(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
|
|
|
$
|
31,093
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
31,093
|
|
|
Total government and agencies
|
|
|
31,093
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
31,093
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
549
|
|
|
|
|
0
|
|
|
|
|
549
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
549
|
|
|
|
|
0
|
|
|
|
|
549
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
12
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
27
|
|
|
|
|
27
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
12
|
|
|
|
|
27
|
|
|
|
|
39
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
4,198
|
|
|
|
|
0
|
|
|
|
|
4,198
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
4,198
|
|
|
|
|
0
|
|
|
|
|
4,198
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,394
|
|
|
|
|
0
|
|
|
|
|
3,394
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
3,394
|
|
|
|
|
0
|
|
|
|
|
3,394
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
4,642
|
|
|
|
|
0
|
|
|
|
|
4,642
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
148
|
|
|
|
|
0
|
|
|
|
|
148
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
4,790
|
|
|
|
|
0
|
|
|
|
|
4,790
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,775
|
|
|
|
|
0
|
|
|
|
|
3,775
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
99
|
|
|
|
|
0
|
|
|
|
|
99
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
3,874
|
|
|
|
|
0
|
|
|
|
|
3,874
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
31,093
|
|
|
|
|
$
|
16,817
|
|
|
|
|
$
|
27
|
|
|
|
|
$
|
47,937
|
|
|
|
|
December 31, 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
|
|
|
$
|
18,669
|
|
|
|
|
$
|
607
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
19,276
|
|
|
Total government and agencies
|
|
|
18,669
|
|
|
|
|
607
|
|
|
|
|
0
|
|
|
|
|
19,276
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,208
|
|
|
|
|
0
|
|
|
|
|
1,208
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,208
|
|
|
|
|
0
|
|
|
|
|
1,208
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
362
|
|
|
|
|
0
|
|
|
|
|
362
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
220
|
|
|
|
|
220
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
362
|
|
|
|
|
220
|
|
|
|
|
582
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7,479
|
|
|
|
|
0
|
|
|
|
|
7,479
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
7,479
|
|
|
|
|
0
|
|
|
|
|
7,479
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,407
|
|
|
|
|
0
|
|
|
|
|
1,407
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,407
|
|
|
|
|
0
|
|
|
|
|
1,407
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
5,993
|
|
|
|
|
0
|
|
|
|
|
5,993
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
26
|
|
|
|
|
26
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
5,993
|
|
|
|
|
26
|
|
|
|
|
6,019
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
29,378
|
|
|
|
|
0
|
|
|
|
|
29,378
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
29,378
|
|
|
|
|
0
|
|
|
|
|
29,378
|
|
|
||||
Total fixed maturities
|
|
|
18,669
|
|
|
|
|
46,434
|
|
|
|
|
246
|
|
|
|
|
65,349
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,742
|
|
|
|
|
0
|
|
|
|
|
1,742
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
1,742
|
|
|
|
|
0
|
|
|
|
|
1,742
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
205
|
|
|
|
|
0
|
|
|
|
|
205
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
205
|
|
|
|
|
0
|
|
|
|
|
205
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
1,947
|
|
|
|
|
0
|
|
|
|
|
1,947
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
489
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
495
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
||||
Total equity securities
|
|
|
489
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|
|
498
|
|
|
||||
Total securities available for sale
|
|
|
$
|
19,158
|
|
|
|
|
$
|
48,387
|
|
|
|
|
$
|
249
|
|
|
|
|
$
|
67,794
|
|
|
|
|
December 31, 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
|
|
|
$
|
23,391
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
23,391
|
|
|
Total government and agencies
|
|
|
23,391
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
23,391
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
415
|
|
|
|
|
0
|
|
|
|
|
415
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
415
|
|
|
|
|
0
|
|
|
|
|
415
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
12
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
26
|
|
|
|
|
26
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
12
|
|
|
|
|
26
|
|
|
|
|
38
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,203
|
|
|
|
|
0
|
|
|
|
|
3,203
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
3,203
|
|
|
|
|
0
|
|
|
|
|
3,203
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,711
|
|
|
|
|
0
|
|
|
|
|
2,711
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
2,711
|
|
|
|
|
0
|
|
|
|
|
2,711
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
4,546
|
|
|
|
|
0
|
|
|
|
|
4,546
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
4,546
|
|
|
|
|
0
|
|
|
|
|
4,546
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,189
|
|
|
|
|
0
|
|
|
|
|
3,189
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
27
|
|
|
|
|
0
|
|
|
|
|
27
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
3,216
|
|
|
|
|
0
|
|
|
|
|
3,216
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
23,391
|
|
|
|
|
$
|
14,103
|
|
|
|
|
$
|
26
|
|
|
|
|
$
|
37,520
|
|
|
Three Months Ended
September 30, 2016 |
|||||||||||||||||||||||||
|
Fixed Maturities
|
|
Equity
Securities |
|
Derivatives
(1)
|
|
|
|
|||||||||||||||||
(In millions)
|
Mortgage-
and Asset- Backed Securities |
|
Banks/
Financial Institutions |
|
|
|
|
Foreign
Currency Swaps |
|
Credit
Default Swaps |
|
Total
|
|
||||||||||||
Balance, beginning of period
|
$
|
252
|
|
|
$
|
26
|
|
|
|
$
|
3
|
|
|
$
|
59
|
|
|
$
|
1
|
|
|
$
|
341
|
|
|
Realized investment gains (losses) included in earnings
|
0
|
|
|
0
|
|
|
|
0
|
|
|
(18
|
)
|
|
2
|
|
|
(16
|
)
|
|
||||||
Unrealized gains (losses) included in other comprehensive income (loss)
|
1
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Issuances
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Sales
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Settlements
|
(13
|
)
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(13
|
)
|
|
||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Balance, end of period
|
$
|
240
|
|
|
$
|
26
|
|
|
|
$
|
3
|
|
|
$
|
41
|
|
|
$
|
3
|
|
|
$
|
313
|
|
|
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
|
|
|
$
|
(18
|
)
|
|
$
|
2
|
|
|
$
|
(16
|
)
|
|
Three Months Ended
September 30, 2015 |
|||||||||||||||||||||||||
|
Fixed Maturities
|
|
|
Equity
Securities |
|
Derivatives
(1)
|
|
|
|
||||||||||||||||
(In millions)
|
Mortgage-
and Asset- Backed Securities |
|
Banks/
Financial Institutions |
|
|
|
|
Foreign
Currency Swaps |
|
Credit
Default Swaps |
|
Total
|
|
||||||||||||
Balance, beginning of period
|
$
|
214
|
|
|
$
|
25
|
|
|
|
$
|
3
|
|
|
$
|
(223
|
)
|
|
$
|
1
|
|
|
$
|
20
|
|
|
Realized investment gains (losses) included in earnings
|
0
|
|
|
0
|
|
|
|
0
|
|
|
(13
|
)
|
|
(1
|
)
|
|
(14
|
)
|
|
||||||
Unrealized gains (losses) included in other comprehensive income (loss)
|
6
|
|
|
1
|
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
6
|
|
|
||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Issuances
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Sales
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Settlements
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||
Balance, end of period
|
$
|
220
|
|
|
$
|
26
|
|
|
|
$
|
3
|
|
|
$
|
(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
|
|
|
$
|
(14
|
)
|
|
$
|
(1
|
)
|
|
$
|
(15
|
)
|
|
Nine Months Ended
September 30, 2016 |
|||||||||||||||||||||||||||||
|
Fixed Maturities
|
|
Perpetual
Securities |
|
Equity
Securities |
|
Derivatives
(1)
|
|
|
|
|||||||||||||||||||
(In millions)
|
Mortgage-
and Asset- Backed Securities |
|
Banks/
Financial Institutions |
|
|
Banks/
Financial Institutions |
|
|
|
Foreign
Currency Swaps |
|
Credit
Default Swaps |
|
Total
|
|
||||||||||||||
Balance, beginning of period
|
$
|
220
|
|
|
$
|
26
|
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
(192
|
)
|
|
$
|
1
|
|
|
$
|
58
|
|
|
Realized investment gains (losses) included in earnings
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
250
|
|
|
2
|
|
|
252
|
|
|
|||||||
Unrealized gains (losses) included in other comprehensive income (loss)
|
48
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
(16
|
)
|
|
0
|
|
|
32
|
|
|
|||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Purchases
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||
Issuances
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||
Sales
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||
Settlements
|
(28
|
)
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
(29
|
)
|
|
|||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||
Balance, end of period
|
$
|
240
|
|
|
$
|
26
|
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
41
|
|
|
$
|
3
|
|
|
$
|
313
|
|
|
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
|
|
|
$
|
250
|
|
|
$
|
2
|
|
|
$
|
252
|
|
|
Nine Months Ended
September 30, 2015 |
|||||||||||||||||||||||||||||
|
Fixed Maturities
|
|
Perpetual
Securities |
|
Equity
Securities |
|
Derivatives
(1)
|
|
|
|
|||||||||||||||||||
(In millions)
|
Mortgage-
and Asset- Backed Securities |
|
Banks/
Financial Institutions |
|
|
Banks/
Financial Institutions |
|
|
|
Foreign
Currency Swaps |
|
Credit
Default Swaps |
|
Total
|
|
||||||||||||||
Balance, beginning of period
|
$
|
223
|
|
|
$
|
26
|
|
|
|
$
|
149
|
|
|
$
|
3
|
|
|
$
|
(212
|
)
|
|
$
|
0
|
|
|
$
|
189
|
|
|
Realized investment gains (losses) included in earnings
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
(38
|
)
|
|
0
|
|
|
(38
|
)
|
|
|||||||
Unrealized gains (losses) included in other comprehensive income (loss)
|
(1
|
)
|
|
0
|
|
|
|
(2
|
)
|
|
0
|
|
|
(3
|
)
|
|
0
|
|
|
(6
|
)
|
|
|||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Purchases
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||
Issuances
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||
Sales
|
0
|
|
|
0
|
|
|
|
(147
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(147
|
)
|
|
|||||||
Settlements
|
(2
|
)
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
16
|
|
|
0
|
|
|
14
|
|
|
|||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
|||||||
Balance, end of period
|
$
|
220
|
|
|
$
|
26
|
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
(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
|
|
|
$
|
(39
|
)
|
|
$
|
0
|
|
|
$
|
(39
|
)
|
|
September 30, 2016
|
|||||||||||||
(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
|
|
|
$
|
240
|
|
|
|
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 - $807 ($9)
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
40
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.46% - 1.78%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.05% - .46%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
14 - 173 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.97%
|
(c)
|
||
|
|
|
58
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.46% - 1.78%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.05% - .46%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
39 - 221 bps
|
|
||
|
|
|
67
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.46% - 1.78%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.05% - .46%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.97%
|
(c)
|
||
Credit default swaps
|
|
|
3
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
50.35% - 55.79%
|
(e)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
63 bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
36.60%
|
|
||
Total assets
|
|
|
$
|
437
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
$
|
106
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.46% - 1.78%
|
(a)
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.05% - .46%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
14 - 173 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.97%
|
(c)
|
||
|
|
|
16
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.46% - 1.78%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.05% - .46%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
25 - 234 bps
|
|
||
|
|
|
2
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.46% - 1.78%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.05% - .46%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.97%
|
(c)
|
||
Total liabilities
|
|
|
$
|
124
|
|
|
|
|
|
|
|
|
|
December 31, 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-$677 ($7)
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
7
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.20% - 2.62%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.42% - 1.22%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
32 - 147 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.05%
|
(c)
|
||
|
|
|
94
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.20% - 2.62%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.42% - 1.22%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.05%
|
(c)
|
||
Credit default swaps
|
|
|
1
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
53.26% - 58.40%
|
(e)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
123 bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
36.87%
|
|
||
Total assets
|
|
|
$
|
351
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
$
|
158
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.20% - 2.62%
|
(a)
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.42% - 1.22%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
32 - 147 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.05%
|
(c)
|
||
|
|
|
120
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.20% - 2.62%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.42% - 1.22%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
35 - 213 bps
|
|
||
|
|
|
15
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.20% - 2.62%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.42% - 1.22%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
20.05%
|
(c)
|
||
Total liabilities
|
|
|
$
|
293
|
|
|
|
|
|
|
|
|
|
6.
|
REINSURANCE
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||||||||||
(In millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
Direct premium income
|
|
$
|
5,119
|
|
|
|
|
$
|
4,464
|
|
|
|
|
$
|
14,724
|
|
|
|
|
$
|
13,426
|
|
|
Ceded to other companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ceded Aflac Japan closed blocks
|
|
(148
|
)
|
|
|
|
(130
|
)
|
|
|
|
(423
|
)
|
|
|
|
(352
|
)
|
|
||||
Other
|
|
(13
|
)
|
|
|
|
(10
|
)
|
|
|
|
(37
|
)
|
|
|
|
(28
|
)
|
|
||||
Assumed from other companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retrocession activities
|
|
62
|
|
|
|
|
54
|
|
|
|
|
177
|
|
|
|
|
124
|
|
|
||||
Other
|
|
2
|
|
|
|
|
2
|
|
|
|
|
6
|
|
|
|
|
6
|
|
|
||||
Net premium income
|
|
$
|
5,022
|
|
|
|
|
$
|
4,380
|
|
|
|
|
$
|
14,447
|
|
|
|
|
$
|
13,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Direct benefits and claims
|
|
$
|
3,463
|
|
|
|
|
$
|
3,000
|
|
|
|
|
$
|
9,898
|
|
|
|
|
$
|
9,037
|
|
|
Ceded benefits and change in reserves for future benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ceded Aflac Japan closed blocks
|
|
(135
|
)
|
|
|
|
(119
|
)
|
|
|
|
(385
|
)
|
|
|
|
(320
|
)
|
|
||||
Eliminations
|
|
16
|
|
|
|
|
14
|
|
|
|
|
44
|
|
|
|
|
32
|
|
|
||||
Other
|
|
(10
|
)
|
|
|
|
(6
|
)
|
|
|
|
(26
|
)
|
|
|
|
(20
|
)
|
|
||||
Assumed from other companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retrocession activities
|
|
59
|
|
|
|
|
50
|
|
|
|
|
168
|
|
|
|
|
116
|
|
|
||||
Eliminations
|
|
(16
|
)
|
|
|
|
(14
|
)
|
|
|
|
(44
|
)
|
|
|
|
(32
|
)
|
|
||||
Other
|
|
1
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
||||
Benefits and claims, net
|
|
$
|
3,378
|
|
|
|
|
$
|
2,927
|
|
|
|
|
$
|
9,657
|
|
|
|
|
$
|
8,816
|
|
|
7.
|
NOTES PAYABLE
|
(In millions)
|
September 30, 2016
|
|
December 31, 2015
|
||||||||
2.65% senior notes due February 2017
|
|
$
|
650
|
|
|
|
|
$
|
651
|
|
|
2.40% senior notes due March 2020
|
|
547
|
|
|
|
|
546
|
|
|
||
4.00% senior notes due February 2022
|
|
348
|
|
|
|
|
348
|
|
|
||
3.625% senior notes due June 2023
|
|
696
|
|
|
|
|
696
|
|
|
||
3.625% senior notes due November 2024
|
|
745
|
|
|
|
|
744
|
|
|
||
3.25% senior notes due March 2025
|
|
445
|
|
|
|
|
445
|
|
|
||
2.875% senior notes due October 2026
|
|
298
|
|
|
|
|
0
|
|
|
||
6.90% senior notes due December 2039
|
|
394
|
|
|
|
|
393
|
|
|
||
6.45% senior notes due August 2040
|
|
445
|
|
|
|
|
445
|
|
|
||
4.00% senior notes due October 2046
|
|
393
|
|
|
|
|
0
|
|
|
||
5.50% subordinated debentures due September 2052
|
|
486
|
|
|
|
|
486
|
|
|
||
Yen-denominated Uridashi notes:
|
|
|
|
|
|
|
|
||||
2.26% notes paid September 2016 (principal amount 8 billion yen)
|
|
0
|
|
|
|
|
66
|
|
|
||
Yen-denominated Samurai notes:
|
|
|
|
|
|
|
|
||||
1.84% notes paid July 2016 (principal amount 15.8 billion yen)
|
|
0
|
|
|
|
|
131
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
|
|
|
||||
Variable interest rate loan due September 2021 (.31% in 2016, principal amount 5.0 billion yen)
|
|
49
|
|
|
|
|
0
|
|
|
||
Variable interest rate loan due September 2023 (.46% in 2016, principal amount 25.0 billion yen)
|
|
247
|
|
|
|
|
0
|
|
|
||
Capitalized lease obligations payable through 2023
|
|
22
|
|
|
|
|
20
|
|
|
||
Total notes payable
|
|
$
|
5,765
|
|
|
|
|
$
|
4,971
|
|
|
8.
|
SHAREHOLDERS’ EQUITY
|
(In thousands of shares)
|
2016
|
|
2015
|
||
Common stock - issued:
|
|
|
|
||
Balance, beginning of period
|
669,723
|
|
|
668,132
|
|
Exercise of stock options and issuance of restricted shares
|
1,261
|
|
|
1,377
|
|
Balance, end of period
|
670,984
|
|
|
669,509
|
|
Treasury stock:
|
|
|
|
||
Balance, beginning of period
|
245,343
|
|
|
225,687
|
|
Purchases of treasury stock:
|
|
|
|
||
Open market
|
18,774
|
|
|
17,421
|
|
Other
|
329
|
|
|
241
|
|
Dispositions of treasury stock:
|
|
|
|
||
Shares issued to AFL Stock Plan
|
(822
|
)
|
|
(919
|
)
|
Exercise of stock options
|
(554
|
)
|
|
(375
|
)
|
Other
|
(107
|
)
|
|
(113
|
)
|
Balance, end of period
|
262,963
|
|
|
241,942
|
|
Shares outstanding, end of period
|
408,021
|
|
|
427,567
|
|
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|
|||||||||||||||
(In thousands)
|
2016
|
|
2015
|
2016
|
|
2015
|
||||||||||||
Anti-dilutive share-based awards
|
|
109
|
|
|
|
|
2,126
|
|
|
|
1,162
|
|
|
|
|
1,798
|
|
|
Three Months Ended
September 30, 2016 |
|||||||||||||||||||||||||||||
(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
|
|
$
|
(847
|
)
|
|
|
|
$
|
6,441
|
|
|
|
|
$
|
(19
|
)
|
|
|
|
$
|
(143
|
)
|
|
|
|
$
|
5,432
|
|
|
Other comprehensive
income (loss) before reclassification |
|
253
|
|
|
|
|
(342
|
)
|
|
|
|
0
|
|
|
|
|
(1
|
)
|
|
|
|
(90
|
)
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
21
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
22
|
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
253
|
|
|
|
|
(321
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(68
|
)
|
|
|||||
Balance, end of period
|
|
$
|
(594
|
)
|
|
|
|
$
|
6,120
|
|
|
|
|
$
|
(19
|
)
|
|
|
|
$
|
(143
|
)
|
|
|
|
$
|
5,364
|
|
|
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 (loss) before reclassification |
|
192
|
|
|
|
|
(260
|
)
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
(69
|
)
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
90
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
90
|
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
192
|
|
|
|
|
(170
|
)
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
|
21
|
|
|
|||||
Balance, end of period
|
|
$
|
(2,533
|
)
|
|
|
|
$
|
3,214
|
|
|
|
|
$
|
(28
|
)
|
|
|
|
$
|
(125
|
)
|
|
|
|
$
|
528
|
|
|
Nine Months Ended
September 30, 2016 |
|||||||||||||||||||||||||||||
(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
|
|
$
|
(2,196
|
)
|
|
|
|
$
|
2,986
|
|
|
|
|
$
|
(26
|
)
|
|
|
|
$
|
(139
|
)
|
|
|
|
$
|
625
|
|
|
Other comprehensive
income (loss) before reclassification |
|
1,602
|
|
|
|
|
3,155
|
|
|
|
|
7
|
|
|
|
|
(7
|
)
|
|
|
|
4,757
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
(21
|
)
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
(18
|
)
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
1,602
|
|
|
|
|
3,134
|
|
|
|
|
7
|
|
|
|
|
(4
|
)
|
|
|
|
4,739
|
|
|
|||||
Balance, end of period
|
|
$
|
(594
|
)
|
|
|
|
$
|
6,120
|
|
|
|
|
$
|
(19
|
)
|
|
|
|
$
|
(143
|
)
|
|
|
|
$
|
5,364
|
|
|
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 (loss) before reclassification |
|
8
|
|
|
|
|
(1,471
|
)
|
|
|
|
(2
|
)
|
|
|
|
0
|
|
|
|
|
(1,465
|
)
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
13
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
14
|
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
8
|
|
|
|
|
(1,458
|
)
|
|
|
|
(2
|
)
|
|
|
|
1
|
|
|
|
|
(1,451
|
)
|
|
|||||
Balance, end of period
|
|
$
|
(2,533
|
)
|
|
|
|
$
|
3,214
|
|
|
|
|
$
|
(28
|
)
|
|
|
|
$
|
(125
|
)
|
|
|
|
$
|
528
|
|
|
(In millions)
|
Three Months Ended
September 30, 2016 |
|
||||
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 |
|
$
|
(11
|
)
|
|
Sales and redemptions
|
|
|
(22
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
(33
|
)
|
|
Total before tax
|
|
|
|
12
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(21
|
)
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(4
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
2
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
1
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(1
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(22
|
)
|
|
Net of tax
|
(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)
|
Nine Months Ended
September 30, 2016 |
|
||||
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 |
|
$
|
102
|
|
|
Sales and redemptions
|
|
|
(69
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
33
|
|
|
Total before tax
|
|
|
|
(12
|
)
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
21
|
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(12
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
8
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
1
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(3
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
18
|
|
|
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
|
|
Stock
Option Shares (in thousands) |
|
Weighted-Average
Remaining Term (in years) |
|
Aggregate
Intrinsic Value (in millions) |
|
Weighted-Average
Exercise Price Per Share |
|||||||||||||
Outstanding
|
|
6,564
|
|
|
|
|
4.8
|
|
|
|
$
|
129
|
|
|
|
|
$
|
52.29
|
|
|
Exercisable
|
|
4,675
|
|
|
|
|
3.3
|
|
|
|
109
|
|
|
|
|
48.56
|
|
|
10.
|
BENEFIT PLANS
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||||||||||||||
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||
(In millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||||||
Components of net periodic
benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
|
|
$
|
4
|
|
|
|
|
$
|
4
|
|
|
|
|
$
|
5
|
|
|
|
|
$
|
5
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
1
|
|
|
Interest cost
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
8
|
|
|
|
|
7
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Expected return on plan
assets |
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(6
|
)
|
|
|
|
(5
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Amortization of net actuarial
loss |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4
|
|
|
|
|
4
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Amortization of prior service
cost (credit) |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(2
|
)
|
|
|
|
(4
|
)
|
|
||||||
Net periodic (benefit) cost
|
|
|
$
|
5
|
|
|
|
|
$
|
4
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
(3
|
)
|
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||||||
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||
(In millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||||||
Components of net periodic
benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
|
|
$
|
12
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
17
|
|
|
|
|
$
|
17
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
1
|
|
|
Interest cost
|
|
|
5
|
|
|
|
|
4
|
|
|
|
|
24
|
|
|
|
|
23
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||||
Expected return on plan
assets |
|
|
(3
|
)
|
|
|
|
(3
|
)
|
|
|
|
(17
|
)
|
|
|
|
(16
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Amortization of net actuarial
loss |
|
|
1
|
|
|
|
|
1
|
|
|
|
|
10
|
|
|
|
|
11
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||||
Amortization of prior service
cost (credit) |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(8
|
)
|
|
|
|
(12
|
)
|
|
||||||
Net periodic (benefit) cost
|
|
|
$
|
15
|
|
|
|
|
$
|
13
|
|
|
|
|
$
|
34
|
|
|
|
|
$
|
35
|
|
|
|
|
$
|
(6
|
)
|
|
|
|
$
|
(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 interest rate risk
|
•
|
concentration of business in Japan
|
•
|
limited availability of acceptable yen-denominated investments
|
•
|
failure to comply with restrictions on patient privacy and information security
|
•
|
foreign currency fluctuations in the yen/dollar exchange rate
|
•
|
deviations in actual experience from pricing and reserving assumptions
|
•
|
subsidiaries' ability to pay dividends to Aflac Incorporated
|
•
|
ability to continue to develop and implement improvements in information technology systems
|
•
|
concentration of our investments in any particular single-issuer or sector
|
•
|
decline in creditworthiness of other financial institutions
|
•
|
ability to attract and retain qualified sales associates and employees
|
•
|
differing judgments applied to investment valuations
|
•
|
significant valuation judgments in determination of amount of impairments taken on our investments
|
•
|
credit and other risks associated with Aflac's investment in perpetual securities
|
•
|
decreases in our financial strength or debt ratings
|
•
|
inherent limitations to risk management policies and procedures
|
•
|
extensive regulation and changes in law or regulation by governmental authorities
|
•
|
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
|
•
|
catastrophic events including, but not necessarily limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, acts of terrorism and damage incidental to such events
|
•
|
changes in U.S. and/or Japanese accounting standards
|
•
|
ability to effectively manage key executive succession
|
•
|
level and outcome of litigation
|
•
|
increased expenses and reduced profitability resulting from changes in assumptions for pension and other postretirement benefit plans
|
•
|
ongoing changes in our industry
|
•
|
loss of consumer trust resulting from events external to our operations
|
•
|
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,
|
|||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||||||||||
Operating earnings
|
$
|
748
|
|
|
$
|
672
|
|
|
$
|
1.82
|
|
|
$
|
1.56
|
|
|
$
|
2,182
|
|
|
$
|
2,001
|
|
|
$
|
5.25
|
|
|
$
|
4.60
|
|
|
Items impacting net earnings, net of tax:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Securities transactions and impairments
|
(25
|
)
|
|
(72
|
)
|
|
(.06
|
)
|
|
(.16
|
)
|
|
12
|
|
|
28
|
|
|
.03
|
|
|
.06
|
|
|
||||||||
Impact of derivative and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Hedge costs related to foreign currency investments
|
(122
|
)
|
|
(18
|
)
|
|
(.30
|
)
|
|
(.04
|
)
|
|
(182
|
)
|
|
(39
|
)
|
|
(.44
|
)
|
|
(.09
|
)
|
|
||||||||
Other derivative and hedging activities
|
40
|
|
(2)
|
2
|
|
(2)
|
.10
|
|
|
.00
|
|
|
(40
|
)
|
(2)
|
(12
|
)
|
(2)
|
(.10
|
)
|
|
(.03
|
)
|
|
||||||||
Other and non-recurring income (loss)
|
(12
|
)
|
|
(17
|
)
|
(3)
|
(.03
|
)
|
|
(.04
|
)
|
|
(64
|
)
|
|
(175
|
)
|
(3)
|
(.15
|
)
|
|
(.40
|
)
|
|
||||||||
Net earnings
|
$
|
629
|
|
|
$
|
567
|
|
|
$
|
1.53
|
|
|
$
|
1.32
|
|
|
$
|
1,908
|
|
|
$
|
1,803
|
|
|
$
|
4.59
|
|
|
$
|
4.14
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Perpetual securities
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
2
|
|
|
$
|
0
|
|
|
Corporate bonds
|
1
|
|
|
5
|
|
|
22
|
|
|
7
|
|
|
||||
Bank/financial institution bonds
|
0
|
|
|
131
|
|
|
0
|
|
|
135
|
|
|
||||
Equity securities
|
21
|
|
|
1
|
|
|
45
|
|
|
1
|
|
|
||||
Total other-than-temporary impairment losses realized
(1)
|
$
|
22
|
|
|
$
|
137
|
|
|
$
|
69
|
|
|
$
|
143
|
|
|
Weighted-Average
Yen/Dollar Exchange Rate |
|
Operating Earnings
Per Diluted Share |
|
% Growth
Over 2015 |
|
|
Yen Impact
|
||||||||||
|
100
|
|
|
|
$7.24 - 7.44
|
|
|
17.5
|
-
|
20.8
|
%
|
|
|
$
|
.84
|
|
|
|
105
|
|
|
|
6.94 - 7.14
|
|
|
12.7
|
-
|
15.9
|
|
|
|
|
.54
|
|
|
|
110
|
|
|
|
6.75 - 6.95
|
|
|
9.6
|
-
|
12.8
|
|
|
|
|
.35
|
|
|
|
120.99
(2)
|
|
|
|
6.40 - 6.60
|
|
|
3.9
|
-
|
7.1
|
|
|
|
|
.00
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Net premium income
|
$
|
3,596
|
|
|
$
|
2,981
|
|
|
$
|
10,177
|
|
|
$
|
9,037
|
|
|
Net investment income:
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated investment income
|
356
|
|
|
299
|
|
|
1,015
|
|
|
924
|
|
|
||||
Dollar-denominated investment income
|
305
|
|
|
307
|
|
|
910
|
|
|
900
|
|
|
||||
Net investment income
|
661
|
|
|
606
|
|
|
1,925
|
|
|
1,824
|
|
|
||||
Other income (loss)
|
11
|
|
|
7
|
|
|
29
|
|
|
22
|
|
|
||||
Total operating revenues
|
4,268
|
|
|
3,594
|
|
|
12,131
|
|
|
10,883
|
|
|
||||
Benefits and claims, net
|
2,603
|
|
|
2,139
|
|
|
7,341
|
|
|
6,538
|
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of deferred policy acquisition costs
|
166
|
|
|
144
|
|
|
484
|
|
|
434
|
|
|
||||
Insurance commissions
|
208
|
|
|
178
|
|
|
593
|
|
|
540
|
|
|
||||
Insurance and other expenses
|
409
|
|
|
344
|
|
|
1,154
|
|
|
1,006
|
|
|
||||
Total operating expenses
|
783
|
|
|
666
|
|
|
2,231
|
|
|
1,980
|
|
|
||||
Total benefits and expenses
|
3,386
|
|
|
2,805
|
|
|
9,572
|
|
|
8,518
|
|
|
||||
Pretax operating earnings
(1)
|
$
|
882
|
|
|
$
|
789
|
|
|
$
|
2,559
|
|
|
$
|
2,365
|
|
|
Weighted-average yen/dollar exchange rate
|
102.37
|
|
|
122.15
|
|
|
108.58
|
|
|
120.81
|
|
|
|
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, |
|
||||||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|||||||||
Net premium income
|
20.6
|
%
|
|
(15.7
|
)%
|
|
12.6
|
%
|
|
(15.3
|
)%
|
1.1
|
%
|
|
(.8
|
)%
|
|
1.0
|
%
|
|
(.6
|
)%
|
|
Net investment income
|
9.1
|
|
|
(10.4
|
)
|
|
5.6
|
|
|
(9.7
|
)
|
(8.6
|
)
|
|
5.4
|
|
|
(5.2
|
)
|
|
6.1
|
|
|
Total operating revenues
|
18.7
|
|
|
(14.8
|
)
|
|
11.5
|
|
|
(14.4
|
)
|
(.5
|
)
|
|
.3
|
|
|
.0
|
|
|
.5
|
|
|
Pretax operating
earnings
(1)
|
11.7
|
|
|
(4.7
|
)
|
|
8.2
|
|
|
(12.0
|
)
|
(6.4
|
)
|
|
12.1
|
|
|
(2.8
|
)
|
|
3.3
|
|
|
|
Including Foreign
Currency Changes |
|
|
Excluding Foreign
Currency Changes
(2)
|
|||||||||||||||||||||||||
|
Three Months
|
|
|
Nine Months
|
|
Three Months
|
|
|
Nine Months
|
||||||||||||||||||||
|
2016
|
|
|
|
2015
|
|
|
2016
|
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|||
Net investment income
|
(8.6
|
)
|
%
|
|
5.4
|
%
|
|
(5.2
|
)
|
%
|
|
6.1
|
%
|
|
(.4
|
)
|
%
|
|
(2.6
|
)
|
%
|
|
(.2
|
)
|
%
|
|
(1.7
|
)
|
%
|
Total operating revenues
|
(.5
|
)
|
|
|
.3
|
|
|
.0
|
|
|
|
.5
|
|
|
.9
|
|
|
|
(1.0
|
)
|
|
|
.8
|
|
|
|
(.7
|
)
|
|
Pretax operating earnings
(1)
|
(6.4
|
)
|
|
|
12.1
|
|
|
(2.8
|
)
|
|
|
3.3
|
|
|
(.4
|
)
|
|
|
5.8
|
|
|
|
.9
|
|
|
|
(2.3
|
)
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
||||||
Ratios to total revenues:
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
Benefits and claims, net
|
61.0
|
%
|
|
59.5
|
%
|
|
60.5
|
%
|
|
60.1
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred policy acquisition costs
|
3.9
|
|
|
4.0
|
|
|
4.0
|
|
|
4.0
|
|
|
Insurance commissions
|
4.9
|
|
|
5.0
|
|
|
4.9
|
|
|
5.0
|
|
|
Insurance and other expenses
|
9.5
|
|
|
9.6
|
|
|
9.5
|
|
|
9.2
|
|
|
Total operating expenses
|
18.3
|
|
|
18.6
|
|
|
18.4
|
|
|
18.2
|
|
|
Pretax operating earnings
(1)
|
20.7
|
|
|
21.9
|
|
|
21.1
|
|
|
21.7
|
|
|
|
In Dollars
|
|
In Yen
|
|
|||||||||||||||||||||||
|
Three Months
|
|
Nine Months
|
|
Three Months
|
Nine Months
|
|
||||||||||||||||||||
(In millions of dollars and billions of yen)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
2016
|
|
2015
|
|
||||||||||||
New annualized premium sales
|
$
|
259
|
|
|
$
|
259
|
|
|
$
|
809
|
|
|
$
|
737
|
|
|
26.5
|
|
|
31.6
|
|
87.9
|
|
|
89.2
|
|
|
Increase (decrease) over prior period
|
(.1
|
)%
|
|
5.0
|
%
|
|
9.8
|
%
|
|
(6.6
|
)%
|
|
(16.2
|
)%
|
|
23.4
|
%
|
(1.4
|
)%
|
|
9.9
|
%
|
|
|
Three Months
|
|
|
Nine Months
|
|
||||||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
||||
Medical
|
26.2
|
%
|
|
|
28.9
|
%
|
|
|
25.7
|
%
|
|
|
26.4
|
%
|
|
Cancer
|
52.9
|
|
|
|
37.9
|
|
|
|
44.3
|
|
|
|
40.1
|
|
|
Ordinary life:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Child endowment
|
4.5
|
|
|
|
7.7
|
|
|
|
6.3
|
|
|
|
8.5
|
|
|
WAYS
|
5.7
|
|
|
|
18.1
|
|
|
|
15.3
|
|
|
|
16.2
|
|
|
Other ordinary life
|
6.4
|
|
|
|
5.9
|
|
|
|
5.9
|
|
|
|
6.4
|
|
|
Other
|
4.3
|
|
|
|
1.5
|
|
|
|
2.5
|
|
|
|
2.4
|
|
|
Total
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
Three Months
|
|
|
Nine Months
|
|
||||||
|
2016
|
(1)
|
|
2015
|
(1)
|
|
2016
|
(1)
|
|
2015
|
(1)
|
New money yield
(2)
|
2.22
|
%
|
|
3.27
|
%
|
|
1.96
|
%
|
|
3.75
|
%
|
Return on average invested assets, net of investment expenses
(3)
|
2.61
|
|
|
2.92
|
|
|
2.70
|
|
|
2.89
|
|
Portfolio book yield, including dollar-denominated investments, end of period
(2)
|
2.71
|
%
|
|
2.82
|
%
|
|
2.71
|
%
|
|
2.82
|
%
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
||||||||||||
(In millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Net premium income
|
$
|
1,365
|
|
|
$
|
1,346
|
|
|
$
|
4,093
|
|
|
$
|
4,016
|
|
|
Net investment income
|
176
|
|
|
173
|
|
|
526
|
|
|
507
|
|
|
||||
Other income
|
1
|
|
|
1
|
|
|
5
|
|
|
6
|
|
|
||||
Total operating revenues
|
1,542
|
|
|
1,520
|
|
|
4,624
|
|
|
4,529
|
|
|
||||
Benefits and claims
|
715
|
|
|
735
|
|
|
2,148
|
|
|
2,161
|
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of deferred policy acquisition costs
|
116
|
|
|
114
|
|
|
373
|
|
|
355
|
|
|
||||
Insurance commissions
|
145
|
|
|
148
|
|
|
439
|
|
|
441
|
|
|
||||
Insurance and other expenses
|
243
|
|
|
237
|
|
|
718
|
|
|
708
|
|
|
||||
Total operating expenses
|
504
|
|
|
499
|
|
|
1,530
|
|
|
1,504
|
|
|
||||
Total benefits and expenses
|
1,219
|
|
|
1,234
|
|
|
3,678
|
|
|
3,665
|
|
|
||||
Pretax operating earnings
(1)
|
$
|
323
|
|
|
$
|
286
|
|
|
$
|
946
|
|
|
$
|
864
|
|
|
Percentage change over previous period:
|
|
|
|
|
|
|
|
|
||||||||
Net premium income
|
1.4
|
|
%
|
3.0
|
|
%
|
1.9
|
|
%
|
2.7
|
|
%
|
||||
Net investment income
|
1.7
|
|
|
7.2
|
|
|
3.7
|
|
|
4.8
|
|
|
||||
Total operating revenues
|
1.4
|
|
|
3.6
|
|
|
2.1
|
|
|
3.0
|
|
|
||||
Pretax operating earnings
(1)
|
12.4
|
|
|
6.2
|
|
|
9.5
|
|
|
(.9
|
)
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
||||||
Ratios to total revenues:
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Benefits and claims
|
46.4
|
%
|
|
48.4
|
%
|
|
46.5
|
%
|
|
47.7
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred policy acquisition costs
|
7.5
|
|
|
7.5
|
|
|
8.1
|
|
|
7.8
|
|
Insurance commissions
|
9.4
|
|
|
9.7
|
|
|
9.5
|
|
|
9.7
|
|
Insurance and other expenses
|
15.8
|
|
|
15.6
|
|
|
15.4
|
|
|
15.7
|
|
Total operating expenses
|
32.7
|
|
|
32.8
|
|
|
33.0
|
|
|
33.2
|
|
Pretax operating earnin
gs
(1)
|
20.9
|
|
|
18.8
|
|
|
20.5
|
|
|
19.1
|
|
|
Three Months
|
|
Nine Months
|
|
||||||||||||||||
(In millions)
|
2016
|
|
|
2015
|
|
|
|
2016
|
|
|
2015
|
|
|
|
||||||
New annualized premium sales
|
$
|
324
|
|
|
|
$
|
330
|
|
|
|
$
|
999
|
|
|
|
$
|
990
|
|
|
|
Increase (decrease) over prior period
|
(1.8
|
)
|
%
|
|
.4
|
|
%
|
|
.9
|
|
%
|
|
1.1
|
|
%
|
|
|
Three Months
|
|
Nine Months
|
|
||||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
Income-loss protection:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term disability
|
25.0
|
%
|
|
24.4
|
%
|
|
23.9
|
%
|
|
24.1
|
%
|
|
Life
|
5.4
|
|
|
5.5
|
|
|
5.5
|
|
|
5.7
|
|
|
Asset-loss protection:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accident
|
29.9
|
|
|
30.4
|
|
|
30.0
|
|
|
29.7
|
|
|
Critical care
(1)
|
19.9
|
|
|
20.4
|
|
|
20.9
|
|
|
20.8
|
|
|
Supplemental medical:
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital indemnity
|
14.1
|
|
|
13.6
|
|
|
14.1
|
|
|
14.0
|
|
|
Dental/vision
|
5.7
|
|
|
5.7
|
|
|
5.6
|
|
|
5.7
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
Three Months
|
|
Nine Months
|
|
|||||||
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
New money yield
(1)
|
3.28
|
%
|
|
4.65
|
%
|
|
3.93
|
%
|
|
4.38
|
%
|
Return on average invested assets, net of investment expenses
(2)
|
5.06
|
|
|
5.26
|
|
|
5.04
|
|
|
5.25
|
|
Portfolio book yield, end of period
(1)
|
5.65
|
%
|
|
5.79
|
%
|
|
5.65
|
%
|
|
5.79
|
%
|
(In millions)
|
As
Reported |
|
Exchange
Effect |
|
Net of
Exchange Effect (1) |
||||||||||||
Yen/dollar exchange rate
(2)
|
|
101.12
|
|
|
|
|
|
|
|
|
120.61
|
|
|
||||
Investments and cash
|
|
$
|
128,935
|
|
|
|
|
$
|
13,376
|
|
|
|
|
$
|
115,559
|
|
|
Deferred policy acquisition costs
|
|
9,759
|
|
|
|
|
1,062
|
|
|
|
|
8,697
|
|
|
|||
Policy liabilities
|
|
105,556
|
|
|
|
|
15,423
|
|
|
|
|
90,133
|
|
|
|
|
Aflac Japan
|
|
|
Aflac U.S.
|
|
|||||||||||||||
(In millions)
|
September 30,
2016 |
December 31,
2015 |
September 30,
2016 |
|
December 31,
2015 |
||||||||||||||||
Securities available for sale, at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
65,922
|
|
|
|
$
|
52,304
|
|
|
|
$
|
13,976
|
|
|
|
|
$
|
12,522
|
|
|
Perpetual securities
|
|
1,937
|
|
|
|
1,890
|
|
|
|
57
|
|
|
|
|
57
|
|
|
||||
Equity securities
|
|
1,170
|
|
|
|
493
|
|
|
|
108
|
|
|
|
|
5
|
|
|
||||
Total available for sale
|
|
69,029
|
|
|
|
54,687
|
|
|
|
14,141
|
|
|
|
|
12,584
|
|
|
||||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
38,772
|
|
|
|
33,459
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total held to maturity
|
|
38,772
|
|
|
|
33,459
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total investment securities
|
|
$
|
107,801
|
|
|
|
$
|
88,146
|
|
|
|
$
|
14,141
|
|
|
|
|
$
|
12,584
|
|
|
(In millions)
|
September 30, 2016
|
|
December 31, 2015
|
|
||||||||||||||||||||
Yen/dollar exchange rates
|
86.12
|
|
|
101.12
(1)
|
|
|
116.12
|
|
|
105.61
|
|
|
120.61
(1)
|
|
|
135.61
|
|
|
||||||
Yen-denominated financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturities
(2)
|
$
|
45,085
|
|
|
$
|
38,397
|
|
|
$
|
33,437
|
|
|
$
|
31,544
|
|
|
$
|
27,621
|
|
|
$
|
24,566
|
|
|
Fixed maturities - consolidated variable
interest entities (3) |
1,272
|
|
|
1,084
|
|
|
944
|
|
|
1,016
|
|
|
890
|
|
|
792
|
|
|
||||||
Perpetual securities
|
2,002
|
|
|
1,705
|
|
|
1,485
|
|
|
1,883
|
|
|
1,649
|
|
|
1,466
|
|
|
||||||
Perpetual securities - consolidated
variable interest entities (3) |
250
|
|
|
212
|
|
|
185
|
|
|
214
|
|
|
187
|
|
|
167
|
|
|
||||||
Equity securities
|
177
|
|
|
151
|
|
|
131
|
|
|
408
|
|
|
357
|
|
|
318
|
|
|
||||||
Equity securities - consolidated variable
interest entities |
662
|
|
|
563
|
|
|
491
|
|
|
149
|
|
|
130
|
|
|
116
|
|
|
||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturities
|
45,525
|
|
|
38,772
|
|
|
33,764
|
|
|
38,212
|
|
|
33,459
|
|
|
29,758
|
|
|
||||||
Cash and cash equivalents
|
1,986
|
|
|
1,691
|
|
|
1,473
|
|
|
730
|
|
|
640
|
|
|
569
|
|
|
||||||
Derivatives
|
5,980
|
|
|
1,662
|
|
|
1,537
|
|
|
2,416
|
|
|
676
|
|
|
968
|
|
|
||||||
Other financial instruments
|
237
|
|
|
202
|
|
|
176
|
|
|
179
|
|
|
156
|
|
|
139
|
|
|
||||||
Subtotal
|
103,176
|
|
|
84,439
|
|
|
73,623
|
|
|
76,751
|
|
|
65,765
|
|
|
58,859
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Notes payable
|
359
|
|
|
305
|
|
|
266
|
|
|
234
|
|
|
205
|
|
|
183
|
|
|
||||||
Derivatives
|
2,237
|
|
|
601
|
|
|
2,544
|
|
|
545
|
|
|
371
|
|
|
1,901
|
|
|
||||||
Subtotal
|
2,596
|
|
|
906
|
|
|
2,810
|
|
|
779
|
|
|
576
|
|
|
2,084
|
|
|
||||||
Net yen-denominated financial instruments
|
100,580
|
|
|
83,533
|
|
|
70,813
|
|
|
75,972
|
|
|
65,189
|
|
|
56,775
|
|
|
||||||
Other yen-denominated assets
|
10,188
|
|
|
8,677
|
|
|
7,556
|
|
|
8,195
|
|
|
7,176
|
|
|
6,382
|
|
|
||||||
Other yen-denominated liabilities
|
119,913
|
|
|
102,125
|
|
|
88,933
|
|
|
94,775
|
|
|
82,988
|
|
|
73,808
|
|
|
||||||
Consolidated yen-denominated net assets
(liabilities) subject to foreign currency fluctuation (2) |
$
|
(9,145
|
)
|
|
$
|
(9,915
|
)
|
|
$
|
(10,564
|
)
|
|
$
|
(10,608
|
)
|
|
$
|
(10,623
|
)
|
|
$
|
(10,651
|
)
|
|
(In millions)
|
September 30,
2016 |
|
December 31,
2015 |
|
||||||||
Effect on yen-denominated debt and perpetual securities
|
|
$
|
(11,830
|
)
|
|
|
|
$
|
(8,693
|
)
|
|
|
Effect on dollar-denominated debt and perpetual securities
|
|
(3,452
|
)
|
|
|
|
(4,482
|
)
|
|
|
||
Effect on total debt and perpetual securities
|
|
$
|
(15,282
|
)
|
|
|
|
$
|
(13,175
|
)
|
|
|
|
Nine Months Ended
September 30, 2016 |
|
Twelve Months Ended
December 31, 2015 |
|
Nine Months Ended
September 30, 2015 |
|||||||||
AAA
|
|
15.1
|
%
|
|
|
|
1.4
|
%
|
|
|
|
2.0
|
%
|
|
AA
|
|
1.5
|
|
|
|
|
1.6
|
|
|
|
|
2.6
|
|
|
A
|
|
44.6
|
|
|
|
|
39.3
|
|
|
|
|
17.3
|
|
|
BBB
|
|
19.3
|
|
|
|
|
25.7
|
|
|
|
|
31.7
|
|
|
BB or lower
|
|
19.5
|
|
|
|
|
32.0
|
|
|
|
|
46.4
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
September 30, 2016
|
|
|
|
December 31, 2015
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.8
|
%
|
|
|
|
1.6
|
%
|
|
|
|
1.3
|
%
|
|
|
|
1.3
|
%
|
|
AA
|
|
5.1
|
|
|
|
|
5.0
|
|
|
|
|
5.7
|
|
|
|
|
5.7
|
|
|
A
|
|
61.6
|
|
|
|
|
64.7
|
|
|
|
|
61.0
|
|
|
|
|
63.0
|
|
|
BBB
|
|
26.2
|
|
|
|
|
24.2
|
|
|
|
|
26.9
|
|
|
|
|
25.1
|
|
|
BB or lower
|
|
5.3
|
|
|
|
|
4.5
|
|
|
|
|
5.1
|
|
|
|
|
4.9
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
Amortized
|
|
% of
|
|
|
|
Ratings
|
|||||||
(In millions)
|
Cost
|
|
Total
|
|
Seniority
|
|
Moody’s
|
|
S&P
|
|
Fitch
|
|||
Japan National Government
(1)
|
$
|
45,808
|
|
|
41.03
|
%
|
|
Senior
|
|
A1
|
|
A+
|
|
A
|
Japan Housing Finance Agency
|
773
|
|
|
.69
|
|
|
|
|
|
|
|
|
|
|
Japan Housing Finance Agency
|
709
|
|
|
.63
|
|
|
Senior
|
|
—
|
|
AAA
|
|
—
|
|
Government Housing Loan Co.
|
64
|
|
|
.06
|
|
|
Senior
|
|
—
|
|
AAA
|
|
—
|
|
Republic of South Africa
|
593
|
|
|
.53
|
|
|
Senior
|
|
Baa2
|
|
BBB-
|
|
BBB-
|
|
Bank of America NA
|
447
|
|
|
.40
|
|
|
|
|
|
|
|
|
|
|
Bank of America Corp.
|
247
|
|
|
.22
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
A
|
|
Bank of America Corp.
|
198
|
|
|
.18
|
|
|
Lower Tier II
|
|
Baa3
|
|
BBB
|
|
A-
|
|
Bank of America NA
|
2
|
|
|
.00
|
|
|
Senior
|
|
A1
|
|
A
|
|
A+
|
|
Bank of Tokyo-Mitsubishi UFJ Ltd.
|
445
|
|
|
.40
|
|
|
|
|
|
|
|
|
|
|
BTMU Curacao Holdings NV
|
445
|
|
|
.40
|
|
|
Lower Tier II
|
|
A2
|
|
—
|
|
A-
|
|
Investcorp SA
|
416
|
|
|
.37
|
|
|
|
|
|
|
|
|
|
|
Investcorp Capital Limited
|
366
|
|
|
.33
|
|
|
Senior
|
|
Ba2
|
|
—
|
|
BB
|
|
Investcorp Capital Limited
|
50
|
|
|
.04
|
|
|
Senior
|
|
Ba2
|
|
—
|
|
—
|
|
JP Morgan Chase & Co.
|
383
|
|
|
.34
|
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase & Co. (including Bear Stearns Companies Inc.)
|
348
|
|
|
.30
|
|
|
Senior
|
|
A3
|
|
A-
|
|
A+
|
|
JPMorgan Chase & Co. (Bank One Corp.)
|
17
|
|
|
.02
|
|
|
Lower Tier II
|
|
Baa1
|
|
BBB+
|
|
A
|
|
JPMorgan Chase & Co. (NBD Bank)
|
11
|
|
|
.01
|
|
|
Lower Tier II
|
|
A1
|
|
A-
|
|
A
|
|
JPMorgan Chase & Co. (FNBC)
|
7
|
|
|
.01
|
|
|
Senior
|
|
Aa1
|
|
A+
|
|
—
|
|
Banobras
|
366
|
|
|
.33
|
|
|
Senior
|
|
A3
|
|
BBB+
|
|
BBB+
|
|
Sultanate of Oman
|
346
|
|
|
.31
|
|
|
Senior
|
|
Baa1
|
|
BBB-
|
|
—
|
|
Koninklijke Ahold NV
|
341
|
|
|
.31
|
|
|
|
|
|
|
|
|
|
|
Koninklijke Ahold NV
|
326
|
|
|
.30
|
|
|
Senior
|
|
Baa2
|
|
BBB
|
|
BBB
|
|
Ahold USA Lease
|
15
|
|
|
.01
|
|
|
Senior
|
|
Baa2
|
|
BBB
|
|
—
|
|
Nordea Bank AB
|
333
|
|
|
.30
|
|
|
|
|
|
|
|
|
|
|
Nordea Bank AB
|
255
|
|
|
.23
|
|
|
Tier I
|
|
Baa3
|
|
BBB
|
|
—
|
|
Nordea Bank Finland
|
78
|
|
|
.07
|
|
|
Upper Tier II
|
|
Baa2
|
|
—
|
|
—
|
|
Petroleos Mexicanos (Pemex)
|
325
|
|
|
.29
|
|
|
|
|
|
|
|
|
|
|
Pemex Proj FDG Master TR
|
296
|
|
|
.26
|
|
|
Senior
|
|
Baa3
|
|
BBB+
|
|
BBB+
|
|
Pemex Finance Ltd.
|
29
|
|
|
.03
|
|
|
Senior
|
|
Baa3
|
|
A
|
|
A+
|
|
Deutsche Telekom AG
|
318
|
|
|
.28
|
|
|
|
|
|
|
|
|
|
|
Deutsche Telekom AG
|
297
|
|
|
.26
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
BBB+
|
|
Deutsche Telekom International Finance
|
21
|
|
|
.02
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
BBB+
|
|
AXA
|
318
|
|
|
.28
|
|
|
|
|
|
|
|
|
|
|
AXA-UAP
|
267
|
|
|
.24
|
|
|
Upper Tier II
|
|
A3
|
|
BBB
|
|
BBB
|
|
AXA
|
51
|
|
|
.04
|
|
|
CC FNB
|
|
A3
|
|
BBB
|
|
BBB+
|
|
CFE
|
316
|
|
|
.28
|
|
|
Senior
|
|
Baa1
|
|
BBB+
|
|
BBB+
|
|
Subtotal
|
$
|
51,528
|
|
|
46.14
|
%
|
|
|
|
|
|
|
|
|
Total debt and perpetual securities
|
$
|
111,651
|
|
|
100.00
|
%
|
|
|
|
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
|
||||||||||
(In millions)
|
Amortized Cost
|
|
% of
Total |
|
Amortized Cost
|
|
% of
Total |
|
||||||
Japan
|
$
|
49,908
|
|
|
44.7
|
%
|
|
$
|
39,593
|
|
|
41.3
|
%
|
|
United States and Canada
(1)
|
34,280
|
|
|
30.7
|
|
|
31,622
|
|
|
33.0
|
|
|
||
United Kingdom
|
2,688
|
|
|
2.4
|
|
|
2,697
|
|
|
2.8
|
|
|
||
Germany
|
2,926
|
|
|
2.6
|
|
|
2,558
|
|
|
2.7
|
|
|
||
France
|
2,077
|
|
|
1.9
|
|
|
1,755
|
|
|
1.8
|
|
|
||
Peripheral Eurozone
|
2,976
|
|
|
2.7
|
|
|
2,762
|
|
|
2.9
|
|
|
||
Portugal
|
232
|
|
|
.2
|
|
|
200
|
|
|
.2
|
|
|
||
Italy
|
1,806
|
|
|
1.7
|
|
|
1,514
|
|
|
1.6
|
|
|
||
Ireland
|
131
|
|
|
.1
|
|
|
364
|
|
|
.4
|
|
|
||
Spain
|
807
|
|
|
.7
|
|
|
684
|
|
|
.7
|
|
|
||
Nordic Region
|
2,079
|
|
|
1.8
|
|
|
1,906
|
|
|
1.9
|
|
|
||
Sweden
|
808
|
|
|
.7
|
|
|
682
|
|
|
.7
|
|
|
||
Norway
|
594
|
|
|
.5
|
|
|
512
|
|
|
.5
|
|
|
||
Denmark
|
297
|
|
|
.3
|
|
|
332
|
|
|
.3
|
|
|
||
Finland
|
380
|
|
|
.3
|
|
|
380
|
|
|
.4
|
|
|
||
Other Europe
|
2,896
|
|
|
2.6
|
|
|
2,502
|
|
|
2.6
|
|
|
||
Netherlands
|
1,623
|
|
|
1.5
|
|
|
1,367
|
|
|
1.4
|
|
|
||
Switzerland
|
277
|
|
|
.3
|
|
|
246
|
|
|
.3
|
|
|
||
Czech Republic
|
494
|
|
|
.4
|
|
|
415
|
|
|
.4
|
|
|
||
Austria
|
138
|
|
|
.1
|
|
|
115
|
|
|
.1
|
|
|
||
Belgium
|
166
|
|
|
.1
|
|
|
182
|
|
|
.2
|
|
|
||
Poland
|
198
|
|
|
.2
|
|
|
166
|
|
|
.2
|
|
|
||
Luxembourg
|
0
|
|
|
.0
|
|
|
11
|
|
|
.0
|
|
|
||
Asia excluding Japan
|
3,889
|
|
|
3.5
|
|
|
3,325
|
|
|
3.5
|
|
|
||
Africa and Middle East
|
2,917
|
|
|
2.6
|
|
|
2,478
|
|
|
2.6
|
|
|
||
Latin America
|
2,459
|
|
|
2.2
|
|
|
2,172
|
|
|
2.3
|
|
|
||
Australia
|
2,047
|
|
|
1.8
|
|
|
2,135
|
|
|
2.2
|
|
|
||
All Others
|
509
|
|
|
.5
|
|
|
437
|
|
|
.4
|
|
|
||
Total debt and perpetual securities
|
$
|
111,651
|
|
|
100.0
|
%
|
|
$
|
95,942
|
|
|
100.0
|
%
|
|
|
September 30, 2016
|
|||||||||||||||||||||
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||||||||
|
|
|
|
|||||||||||||||||||
(In millions)
|
|
|
|
|||||||||||||||||||
Securities available for sale,
carried at fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Independent exploration and production
|
|
$
|
1,338
|
|
|
|
|
$
|
76
|
|
|
|
|
$
|
46
|
|
|
|
|
$
|
1,368
|
|
Integrated energy
|
|
645
|
|
|
|
|
56
|
|
|
|
|
34
|
|
|
|
|
667
|
|
||||
Midstream
|
|
1,296
|
|
|
|
|
120
|
|
|
|
|
35
|
|
|
|
|
1,381
|
|
||||
Oil field services
|
|
1,107
|
|
|
|
|
27
|
|
|
|
|
199
|
|
|
|
|
935
|
|
||||
Refiners
|
|
472
|
|
|
|
|
26
|
|
|
|
|
9
|
|
|
|
|
489
|
|
||||
Government owned - energy related
|
|
982
|
|
|
|
|
213
|
|
|
|
|
13
|
|
|
|
|
1,182
|
|
||||
Natural gas utilities
|
|
377
|
|
|
|
|
108
|
|
|
|
|
0
|
|
|
|
|
485
|
|
||||
Total fixed maturities
|
|
6,217
|
|
|
|
|
626
|
|
|
|
|
336
|
|
|
|
|
6,507
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Integrated energy
|
|
21
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
21
|
|
||||
Midstream
|
|
8
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
11
|
|
||||
Refiners
|
|
7
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
7
|
|
||||
Total equity securities
|
|
36
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
39
|
|
||||
Total securities available for sale
|
|
6,253
|
|
|
|
|
629
|
|
|
|
|
336
|
|
|
|
|
6,546
|
|
||||
Securities held to maturity,
carried at amortized cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Integrated energy
|
|
257
|
|
|
|
|
20
|
|
|
|
|
0
|
|
|
|
|
277
|
|
||||
Government owned - energy related
|
|
297
|
|
|
|
|
14
|
|
|
|
|
0
|
|
|
|
|
311
|
|
||||
Natural gas utilities
|
|
247
|
|
|
|
|
35
|
|
|
|
|
0
|
|
|
|
|
282
|
|
||||
Total fixed maturities
|
|
801
|
|
|
|
|
69
|
|
|
|
|
0
|
|
|
|
|
870
|
|
||||
Total securities held to maturity
|
|
801
|
|
|
|
|
69
|
|
|
|
|
0
|
|
|
|
|
870
|
|
||||
Total securities available for sale
and held to maturity |
|
$
|
7,054
|
|
|
|
|
$
|
698
|
|
|
|
|
$
|
336
|
|
|
|
|
$
|
7,416
|
|
|
December 31, 2015
|
|||||||||||||||||||||
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
|||||||||||||||
|
|
|
|
|||||||||||||||||||
(In millions)
|
|
|
|
|||||||||||||||||||
Securities available for sale,
carried at fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Independent exploration and production
|
|
$
|
1,270
|
|
|
|
|
$
|
73
|
|
|
|
|
$
|
139
|
|
|
|
|
$
|
1,204
|
|
Integrated energy
|
|
575
|
|
|
|
|
55
|
|
|
|
|
27
|
|
|
|
|
603
|
|
||||
Midstream
|
|
1,246
|
|
|
|
|
76
|
|
|
|
|
144
|
|
|
|
|
1,178
|
|
||||
Oil field services
|
|
1,155
|
|
|
|
|
27
|
|
|
|
|
228
|
|
|
|
|
954
|
|
||||
Refiners
|
|
460
|
|
|
|
|
6
|
|
|
|
|
30
|
|
|
|
|
436
|
|
||||
Government owned - energy related
|
|
887
|
|
|
|
|
182
|
|
|
|
|
25
|
|
|
|
|
1,044
|
|
||||
Natural gas utilities
|
|
344
|
|
|
|
|
53
|
|
|
|
|
1
|
|
|
|
|
396
|
|
||||
Total fixed maturities
|
|
5,937
|
|
|
|
|
472
|
|
|
|
|
594
|
|
|
|
|
5,815
|
|
||||
Equity securities
|
|
3
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3
|
|
||||
Total securities available for sale
|
|
5,940
|
|
|
|
|
472
|
|
|
|
|
594
|
|
|
|
|
5,818
|
|
||||
Securities held to maturity,
carried at amortized cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Integrated energy
|
|
242
|
|
|
|
|
9
|
|
|
|
|
0
|
|
|
|
|
251
|
|
||||
Government owned - energy related
|
|
249
|
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
|
254
|
|
||||
Natural gas utilities
|
|
207
|
|
|
|
|
18
|
|
|
|
|
0
|
|
|
|
|
225
|
|
||||
Total fixed maturities
|
|
698
|
|
|
|
|
32
|
|
|
|
|
0
|
|
|
|
|
730
|
|
||||
Total securities held to maturity
|
|
698
|
|
|
|
|
32
|
|
|
|
|
0
|
|
|
|
|
730
|
|
||||
Total securities available for sale
and held to maturity |
|
$
|
6,638
|
|
|
|
|
$
|
504
|
|
|
|
|
$
|
594
|
|
|
|
|
$
|
6,548
|
|
|
|
September 30, 2016
|
|
|
|
December 31, 2015
|
|
||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Publicly issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
81,391
|
|
|
|
|
$
|
96,133
|
|
|
|
|
$
|
68,528
|
|
|
|
|
$
|
74,933
|
|
|
Perpetual securities
|
|
53
|
|
|
|
|
77
|
|
|
|
|
77
|
|
|
|
|
111
|
|
|
||||
Equity securities
|
|
1,261
|
|
|
|
|
1,269
|
|
|
|
|
473
|
|
|
|
|
489
|
|
|
||||
Total publicly issued
|
|
82,705
|
|
|
|
|
97,479
|
|
|
|
|
69,078
|
|
|
|
|
75,533
|
|
|
||||
Privately issued securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
28,310
|
|
|
|
|
32,331
|
|
|
|
|
25,573
|
|
|
|
|
27,936
|
|
|
||||
Perpetual securities
|
|
1,897
|
|
|
|
|
1,917
|
|
|
|
|
1,764
|
|
|
|
|
1,836
|
|
|
||||
Equity securities
|
|
8
|
|
|
|
|
9
|
|
|
|
|
7
|
|
|
|
|
9
|
|
|
||||
Total privately issued
|
|
30,215
|
|
|
|
|
34,257
|
|
|
|
|
27,344
|
|
|
|
|
29,781
|
|
|
||||
Total investment securities
|
|
$
|
112,920
|
|
|
|
|
$
|
131,736
|
|
|
|
|
$
|
96,422
|
|
|
|
|
$
|
105,314
|
|
|
(Amortized cost, in millions)
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Privately issued securities as a percentage of total investment securities
|
|
26.8
|
%
|
|
|
|
28.4
|
%
|
|
||
Privately issued securities held by Aflac Japan
|
|
$
|
27,493
|
|
|
|
|
$
|
24,602
|
|
|
Privately issued securities held by Aflac Japan as a percentage of total
investment securities |
|
24.3
|
%
|
|
|
|
25.5
|
%
|
|
(Amortized cost, in millions)
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Privately issued reverse-dual currency securities
|
|
$
|
6,484
|
|
|
|
|
$
|
5,372
|
|
|
Publicly issued collateral structured as reverse-dual currency securities
|
|
1,554
|
|
|
|
|
1,303
|
|
|
||
Total reverse-dual currency securities
|
|
$
|
8,038
|
|
|
|
|
$
|
6,675
|
|
|
Reverse-dual currency securities as a percentage of total investment
securities |
|
7.1
|
%
|
|
|
|
6.9
|
%
|
|
|
September 30, 2016
|
|
December 31, 2015
|
|
||||||||||||||||||||||||||||
(In millions)
|
Par
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain (Loss) |
|
Par
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain(Loss) |
|
||||||||||||||||
Investcorp Capital
Limited |
$
|
416
|
|
|
$
|
416
|
|
|
$
|
412
|
|
|
$
|
(4
|
)
|
|
$
|
357
|
|
|
$
|
357
|
|
|
$
|
324
|
|
|
$
|
(33
|
)
|
|
Republic of Tunisia
|
366
|
|
|
221
|
|
|
301
|
|
|
80
|
|
|
307
|
|
|
185
|
|
|
243
|
|
|
58
|
|
|
||||||||
Navient Corp.
|
326
|
|
|
173
|
|
|
208
|
|
|
35
|
|
|
279
|
|
|
148
|
|
|
155
|
|
|
7
|
|
|
||||||||
UPM-Kymmene
|
307
|
|
|
302
|
|
|
292
|
|
|
(10
|
)
|
|
257
|
|
|
257
|
|
|
252
|
|
|
(5
|
)
|
|
||||||||
KLM Royal Dutch Airlines
(1)
|
296
|
|
|
218
|
|
|
226
|
|
|
8
|
|
|
249
|
|
|
183
|
|
|
205
|
|
|
22
|
|
|
||||||||
Barclays Bank PLC
(1)
|
262
|
|
|
169
|
|
|
236
|
|
|
67
|
|
|
230
|
|
|
148
|
|
|
228
|
|
|
80
|
|
|
||||||||
Deutsche Postbank AG
|
237
|
|
|
237
|
|
|
179
|
|
|
(58
|
)
|
|
199
|
|
|
199
|
|
|
175
|
|
|
(24
|
)
|
|
||||||||
Telecom Italia SpA
|
198
|
|
|
198
|
|
|
237
|
|
|
39
|
|
|
166
|
|
|
166
|
|
|
214
|
|
|
48
|
|
|
||||||||
Generalitat de
Catalunya |
178
|
|
|
65
|
|
|
139
|
|
|
74
|
|
|
149
|
|
|
55
|
|
|
126
|
|
|
71
|
|
|
||||||||
Diamond Offshore
Drilling Inc. |
129
|
|
|
152
|
|
|
101
|
|
|
(51
|
)
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
IKB Deutsche
Industriebank AG |
129
|
|
|
54
|
|
|
103
|
|
|
49
|
|
|
108
|
|
|
46
|
|
|
79
|
|
|
33
|
|
|
||||||||
Noble Holdings
International Ltd. |
104
|
|
|
112
|
|
|
64
|
|
|
(48
|
)
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Alcoa, Inc.
|
100
|
|
|
92
|
|
|
101
|
|
|
9
|
|
|
100
|
|
|
77
|
|
|
81
|
|
|
4
|
|
|
||||||||
Societe Generale
(1)
|
99
|
|
|
72
|
|
|
98
|
|
|
26
|
|
|
83
|
|
|
61
|
|
|
73
|
|
|
12
|
|
|
||||||||
Petrobras International
Finance Company |
91
|
|
|
96
|
|
|
84
|
|
|
(12
|
)
|
|
91
|
|
|
88
|
|
|
64
|
|
|
(24
|
)
|
|
||||||||
Cenovus Energy Inc.
|
75
|
|
|
81
|
|
|
69
|
|
|
(12
|
)
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Teck Resources Ltd.
|
70
|
|
|
75
|
|
|
64
|
|
|
(11
|
)
|
|
70
|
|
|
69
|
|
|
32
|
|
|
(37
|
)
|
|
||||||||
Transocean Inc.
|
68
|
|
|
75
|
|
|
48
|
|
|
(27
|
)
|
|
68
|
|
|
71
|
|
|
38
|
|
|
(33
|
)
|
|
||||||||
Weatherford Bermuda
|
59
|
|
|
60
|
|
|
43
|
|
|
(17
|
)
|
|
94
|
|
|
92
|
|
|
70
|
|
|
(22
|
)
|
|
||||||||
EMC Corp.
|
50
|
|
|
51
|
|
|
46
|
|
|
(5
|
)
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Eskom Holdings
Limited |
50
|
|
|
50
|
|
|
50
|
|
|
0
|
|
|
50
|
|
|
50
|
|
|
43
|
|
|
(7
|
)
|
|
||||||||
Votorantim Overseas
Trading IV Ltd. |
50
|
|
|
50
|
|
|
53
|
|
|
3
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Commerzbank AG
(includes Dresdner Bank) |
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
332
|
|
|
213
|
|
|
321
|
|
|
108
|
|
|
||||||||
DEPFA Bank PLC
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
166
|
|
|
166
|
|
|
166
|
|
|
0
|
|
|
||||||||
Other Issuers (below $50
million in par value) (2) |
306
|
|
|
309
|
|
|
293
|
|
|
(16
|
)
|
|
333
|
|
|
306
|
|
|
277
|
|
|
(29
|
)
|
|
||||||||
Subtotal
(3)
|
3,966
|
|
|
3,328
|
|
|
3,447
|
|
|
119
|
|
|
3,688
|
|
|
2,937
|
|
|
3,166
|
|
|
229
|
|
|
||||||||
Senior secured bank loans
(4)
|
1,782
|
|
|
1,933
|
|
|
1,776
|
|
|
(157
|
)
|
|
1,400
|
|
|
1,327
|
|
|
1,362
|
|
|
35
|
|
|
||||||||
High yield corporate bonds
(5)
|
620
|
|
|
638
|
|
|
630
|
|
|
(8
|
)
|
|
609
|
|
|
621
|
|
|
581
|
|
|
(40
|
)
|
|
||||||||
Grand Total
|
$
|
6,368
|
|
|
$
|
5,899
|
|
|
$
|
5,853
|
|
|
$
|
(46
|
)
|
|
$
|
5,697
|
|
|
$
|
4,885
|
|
|
$
|
5,109
|
|
|
$
|
224
|
|
|
Split-Rated Securities
|
|||||||
(In millions)
|
Amortized
Cost |
|
Investment-Grade
Status |
||||
Commerzbank AG (includes Dresdner Bank)
|
|
$
|
255
|
|
|
|
Investment Grade
|
Telecom Italia SpA
|
|
198
|
|
|
|
Below Investment Grade
|
|
Alberta Energy Company LTD.
|
|
173
|
|
|
|
Investment Grade
|
|
Vale SA
|
|
167
|
|
|
|
Investment Grade
|
|
Diamond Offshore Drilling Inc.
|
|
152
|
|
|
|
Below Investment Grade
|
|
Devon Energy Corp.
|
|
141
|
|
|
|
Investment Grade
|
|
Marathon Oil Corp.
|
|
139
|
|
|
|
Investment Grade
|
|
Energias de Portugal SA (EDP)
|
|
133
|
|
|
|
Investment Grade
|
|
Barclays Bank PLC
(1)
|
|
122
|
|
|
|
Below Investment Grade
|
|
Time Warner Cable Inc.
|
|
118
|
|
|
|
Investment Grade
|
(In millions)
|
Total
Amortized Cost |
|
Total
Fair Value |
|
Percentage
of Total Fair Value |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|||||||||||||||||||
Available-for-sale fixed maturities and
perpetual securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investment-grade securities
|
|
$
|
66,980
|
|
|
|
|
$
|
76,668
|
|
|
|
|
58.2
|
%
|
|
|
|
$
|
10,252
|
|
|
|
|
$
|
564
|
|
|
Below-investment-grade securities
|
|
5,899
|
|
|
|
|
5,853
|
|
|
|
|
4.4
|
|
|
|
|
433
|
|
|
|
|
479
|
|
|
||||
Held-to-maturity fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investment-grade securities
|
|
38,772
|
|
|
|
|
47,937
|
|
|
|
|
36.4
|
|
|
|
|
9,220
|
|
|
|
|
55
|
|
|
||||
Equity securities
|
|
1,269
|
|
|
|
|
1,278
|
|
|
|
|
1.0
|
|
|
|
|
60
|
|
|
|
|
51
|
|
|
||||
Total
|
|
$
|
112,920
|
|
|
|
|
$
|
131,736
|
|
|
|
|
100.0
|
%
|
|
|
|
$
|
19,965
|
|
|
|
|
$
|
1,149
|
|
|
(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 fixed
maturities and
perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Investment-grade
securities |
$
|
9,576
|
|
|
$
|
564
|
|
|
$
|
3,842
|
|
|
$
|
87
|
|
|
$
|
527
|
|
|
$
|
33
|
|
|
$
|
5,207
|
|
|
$
|
444
|
|
|
Below-
investment-grade securities |
3,939
|
|
|
479
|
|
|
774
|
|
|
40
|
|
|
1,322
|
|
|
130
|
|
|
1,843
|
|
|
309
|
|
|||||||||
Held-to-maturity
fixed maturities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Investment-grade
securities |
1,730
|
|
|
55
|
|
|
692
|
|
|
12
|
|
|
0
|
|
|
0
|
|
|
1,038
|
|
|
43
|
|
|||||||||
Equity securities
|
616
|
|
|
51
|
|
|
311
|
|
|
15
|
|
|
305
|
|
|
36
|
|
|
0
|
|
|
0
|
|
|||||||||
Total
|
$
|
15,861
|
|
|
$
|
1,149
|
|
|
$
|
5,619
|
|
|
$
|
154
|
|
|
$
|
2,154
|
|
|
$
|
199
|
|
|
$
|
8,088
|
|
|
$
|
796
|
|
(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 fixed
maturities and perpetual securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment-grade
securities |
$
|
9,576
|
|
|
$
|
564
|
|
|
$
|
9,142
|
|
|
$
|
460
|
|
|
$
|
434
|
|
|
$
|
104
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Below-
investment-grade securities |
3,939
|
|
|
479
|
|
|
3,204
|
|
|
250
|
|
|
735
|
|
|
229
|
|
|
0
|
|
|
0
|
|
||||||||
Held-to-maturity
fixed maturities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Investment-grade
securities |
1,730
|
|
|
55
|
|
|
1,730
|
|
|
55
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||||
Equity securities
|
616
|
|
|
51
|
|
|
616
|
|
|
51
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||||
Total
|
$
|
15,861
|
|
|
$
|
1,149
|
|
|
$
|
14,692
|
|
|
$
|
816
|
|
|
$
|
1,169
|
|
|
$
|
333
|
|
|
$
|
0
|
|
|
$
|
0
|
|
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Loss |
||||||||||||||
Deutsche Postbank AG
|
|
BB
|
|
|
|
$
|
237
|
|
|
|
|
$
|
179
|
|
|
|
|
$
|
(58
|
)
|
|
Diamond Offshore Drilling Inc.
|
|
BB
|
|
|
|
152
|
|
|
|
|
101
|
|
|
|
|
(51
|
)
|
|
|||
Noble Holdings International Ltd.
|
|
B
|
|
|
|
112
|
|
|
|
|
64
|
|
|
|
|
(48
|
)
|
|
|||
AXA
(1)
|
|
BBB
|
|
|
|
318
|
|
|
|
|
276
|
|
|
|
|
(42
|
)
|
|
|||
Kommunal Lanspensjonskasse (KLP)
(1)
|
|
BBB
|
|
|
|
242
|
|
|
|
|
210
|
|
|
|
|
(32
|
)
|
|
|||
Koninklijke Ahold NV
|
|
BBB
|
|
|
|
341
|
|
|
|
|
312
|
|
|
|
|
(29
|
)
|
|
|||
Transocean Inc.
|
|
B
|
|
|
|
75
|
|
|
|
|
48
|
|
|
|
|
(27
|
)
|
|
|||
National Oilwell Vacro Inc.
|
|
BBB
|
|
|
|
117
|
|
|
|
|
95
|
|
|
|
|
(22
|
)
|
|
|||
Abbey National
|
|
BBB
|
|
|
|
49
|
|
|
|
|
30
|
|
|
|
|
(19
|
)
|
|
|||
Weatherford Bermuda
|
|
B
|
|
|
|
60
|
|
|
|
|
43
|
|
|
|
|
(17
|
)
|
|
(In millions)
|
September 30, 2016
|
|
December 31, 2015
|
|
% Change
|
|||||||||||
Aflac Japan
|
|
$
|
6,569
|
|
|
|
|
$
|
5,370
|
|
|
|
|
22.3
|
%
|
(1)
|
Aflac U.S.
|
|
3,190
|
|
|
|
|
3,141
|
|
|
|
|
1.6
|
|
|
||
Total
|
|
$
|
9,759
|
|
|
|
|
$
|
8,511
|
|
|
|
|
14.7
|
%
|
|
(In millions)
|
September 30, 2016
|
|
December 31, 2015
|
|
% Change
|
|||||||||||
Aflac Japan
|
|
$
|
96,179
|
|
|
|
|
$
|
78,460
|
|
|
|
|
22.6
|
%
|
(1)
|
Aflac U.S.
|
|
10,112
|
|
|
|
|
9,815
|
|
|
|
|
3.0
|
|
|
||
Other
|
|
93
|
|
|
|
|
43
|
|
|
|
|
100.0
|
|
|
||
Intercompany eliminations
(2)
|
|
(828
|
)
|
|
|
|
(687
|
)
|
|
|
|
20.5
|
|
|
||
Total
|
|
$
|
105,556
|
|
|
|
|
$
|
87,631
|
|
|
|
|
20.5
|
%
|
|
(In millions)
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Aflac Japan net assets
|
|
$
|
18,556
|
|
|
|
|
$
|
13,558
|
|
|
Aflac Japan unhedged dollar-denominated net assets
|
|
(9,934
|
)
|
|
|
|
(8,111
|
)
|
|
||
Consolidated yen-denominated net assets (liabilities)
|
|
$
|
8,622
|
|
|
|
|
$
|
5,447
|
|
|
(In millions)
|
2016
|
|
2015
|
|
||||
Dividends declared or paid by Aflac
|
$
|
1,311
|
|
|
$
|
1,431
|
|
|
Management fees paid by Aflac
|
192
|
|
|
224
|
|
|
(In millions)
|
2016
|
|
2015
|
|
||||
Operating activities
|
$
|
4,120
|
|
|
$
|
4,770
|
|
|
Investing activities
|
(2,638
|
)
|
|
(4,083
|
)
|
|
||
Financing activities
|
(835
|
)
|
|
(1,826
|
)
|
|
||
Exchange effect on cash and cash equivalents
|
273
|
|
|
1
|
|
|
||
Net change in cash and cash equivalents
|
$
|
920
|
|
|
$
|
(1,138
|
)
|
|
(In millions)
|
2016
|
|
2015
|
|
||||
Aflac Japan
|
$
|
3,081
|
|
|
$
|
3,769
|
|
|
Aflac U.S. and other operations
|
1,039
|
|
|
1,001
|
|
|
||
Total
|
$
|
4,120
|
|
|
$
|
4,770
|
|
|
(In millions)
|
2016
|
|
2015
|
|
||||
Aflac Japan
|
$
|
(1,396
|
)
|
|
$
|
(3,479
|
)
|
|
Aflac U.S. and other operations
|
(1,242
|
)
|
|
(604
|
)
|
|
||
Total
|
$
|
(2,638
|
)
|
|
$
|
(4,083
|
)
|
|
(In millions of dollars and thousands of shares)
|
2016
|
|
2015
|
|
||||
Treasury stock purchases
|
$
|
1,222
|
|
|
$
|
1,081
|
|
|
Number of shares purchased:
|
|
|
|
|
||||
Open market
|
18,774
|
|
|
17,421
|
|
|
||
Other
|
329
|
|
|
241
|
|
|
||
Total shares purchased
|
19,103
|
|
|
17,662
|
|
|
(In millions of dollars and thousands of shares)
|
2016
|
|
2015
|
|
||||
Stock issued from treasury:
|
|
|
|
|
||||
Cash financing
|
$
|
37
|
|
|
$
|
28
|
|
|
Noncash financing
|
47
|
|
|
49
|
|
|
||
Total stock issued from treasury
|
$
|
84
|
|
|
$
|
77
|
|
|
Number of shares issued
|
1,483
|
|
|
1,407
|
|
|
(In millions)
|
2016
|
|
2015
|
|
||||
Dividends paid in cash
|
$
|
492
|
|
|
$
|
489
|
|
|
Dividends through issuance of treasury shares
|
19
|
|
|
19
|
|
|
||
Total dividends to shareholders
|
$
|
511
|
|
|
$
|
508
|
|
|
(In millions of dollars and billions of yen)
|
2016
|
|
2015
|
|
||||
Aflac Japan management fees paid to Parent Company
|
$
|
53
|
|
|
$
|
36
|
|
|
Expenses allocated to Aflac Japan (in dollars)
|
80
|
|
|
78
|
|
|
||
Aflac Japan profit remittances to Aflac U.S. (in dollars)
|
1,084
|
|
|
1,436
|
|
|
||
Aflac Japan profit remittances to Aflac U.S. (in yen)
|
115.2
|
|
|
174.0
|
|
|
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
|
3,492,400
|
|
|
$
|
57.29
|
|
|
3,492,400
|
|
|
44,879,158
|
|
|
February 1 - February 29
|
3,584,566
|
|
|
58.20
|
|
|
3,435,930
|
|
|
41,443,228
|
|
|
|
March 1 - March 31
|
3,229,684
|
|
|
62.07
|
|
|
3,224,000
|
|
|
38,219,228
|
|
|
|
April 1 - April 30
|
2,028,224
|
|
|
66.15
|
|
|
2,026,445
|
|
|
36,192,783
|
|
|
|
May 1 - May 31
|
1,929,098
|
|
|
68.97
|
|
|
1,929,098
|
|
|
34,263,685
|
|
|
|
June 1 - June 30
|
1,925,149
|
|
|
69.36
|
|
|
1,918,479
|
|
|
32,345,206
|
|
|
|
July 1 - July 31
|
918,411
|
|
|
72.99
|
|
|
918,300
|
|
|
31,426,906
|
|
|
|
August 1 - August 31
|
1,001,959
|
|
|
72.79
|
|
|
920,700
|
|
|
30,506,206
|
|
|
|
September 1 - September 30
|
911,184
|
|
|
72.68
|
|
|
908,600
|
|
|
29,597,606
|
|
|
|
Total
|
19,020,675
|
|
(2)
|
$
|
63.94
|
|
|
18,773,952
|
|
|
29,597,606
|
|
(1)
|
Item 6.
|
Exhibits
|
|
4.14
|
|
|
|
Thirteenth Supplemental Indenture, dated as of September 19, 2016, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 4.000% Senior Note due 2046) - incorporated by reference from Form 8-K dated September 19, 2016, Exhibit 4.2 (File No. 001-07434).
|
|
4.15
|
|
-
|
|
Subordinated Indenture, dated as of September 26, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee - incorporated by reference from Form 8-K dated September 26, 2012, Exhibit 4.1 (File No. 001-07434).
|
|
4.16
|
|
-
|
|
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*
|
|
|
|
Second Amendment to the American Family Corporation Retirement Plan for Senior Officers, dated November 16, 2012.
|
|
10.3*
|
|
|
|
Third Amendment to the American Family Corporation Retirement Plan for Senior Officers, dated October 18, 2016.
|
|
10.4*
|
|
-
|
|
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).
|
|
10.5*
|
|
-
|
|
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).
|
|
10.6*
|
|
-
|
|
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).
|
|
10.7*
|
|
-
|
|
Aflac Incorporated Executive Deferred Compensation Plan, as amended and restated, effective September 1, 2015 – incorporated by reference from Form 10-Q for September 30, 2015, Exhibit 10.5 (File No. 001-07434).
|
|
10.8*
|
|
-
|
|
First Amendment to the Aflac Incorporated Executive Deferred Compensation Plan, as amended and restated, effective September 1, 2015, dated October 7, 2016.
|
|
10.9*
|
|
-
|
|
Aflac Incorporated 2013 Management Incentive Plan - incorporated by reference from the 2012 Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.10*
|
|
-
|
|
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).
|
|
10.11*
|
|
-
|
|
Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from the 1997 Shareholders’ Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.12*
|
|
-
|
|
Form of Officer Stock Option Agreement (Non-Qualifying Stock Option) under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.5 (File No. 001-07434).
|
|
10.13*
|
|
-
|
|
Form of Officer Stock Option Agreement (Incentive Stock Option) under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.6 (File No. 001-07434).
|
|
10.14*
|
|
-
|
|
Notice of grant of stock options and stock option agreement to officers under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.7 (File No. 001-07434).
|
|
10.15*
|
|
-
|
|
2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from the 2012 Proxy Statement, Appendix A (File No. 001-07434).
|
|
10.16*
|
|
-
|
|
Form of Non-Employee Director Stock Option Agreement (NQSO) under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 - incorporated by reference from Form 10-Q for March 31, 2016, Exhibit 10.13 (File No. 001-07434).
|
|
10.17*
|
|
-
|
|
Notice of grant of stock options to non-employee director under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 - incorporated by reference from Form 10-Q for March 31, 2016, Exhibit 10.14 (File No. 001-07434).
|
|
10.18*
|
|
-
|
|
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 March 31, 2016, Exhibit 10.15 (File No. 001-07434).
|
|
10.19*
|
|
-
|
|
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 March 31, 2016, Exhibit 10.16 (File No. 001-07434).
|
|
10.20*
|
|
-
|
|
U.S. Form of Employee 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 March 31, 2016, Exhibit 10.17 (File No. 001-07434).
|
|
10.21*
|
|
-
|
|
Japan Form of Employee 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 March 31, 2016, Exhibit 10.18 (File No. 001-07434).
|
|
10.22*
|
|
-
|
|
Notice of time based restricted stock award 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).
|
|
10.23*
|
|
-
|
|
Notice of performance based restricted stock award under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 - incorporated by reference from Form 10-Q for March 31, 2016, Exhibit 10.20 (File No. 001-07434).
|
|
10.24*
|
|
-
|
|
U.S. Form of Employee 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 March 31, 2016, Exhibit 10.21 (File No. 001-07434).
|
|
10.25*
|
|
-
|
|
Japan Form of Employee 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 March 31, 2016, Exhibit 10.22 (File No. 001-07434).
|
|
10.26*
|
|
-
|
|
U.S. Form of Employee 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 March 31, 2016, Exhibit 10.23 (File No. 001-07434).
|
|
10.27*
|
|
-
|
|
U.S. Notice of grant of stock options 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).
|
|
10.28*
|
|
-
|
|
Japan Notice of grant of stock options 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).
|
|
10.29*
|
|
-
|
|
Japan Form of Restricted Stock Unit 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 March 31, 2016, Exhibit 10.26 (File No. 001-07434).
|
|
10.30*
|
|
-
|
|
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).
|
|
10.31*
|
|
-
|
|
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).
|
|
10.32*
|
|
-
|
|
Aflac Incorporated Employment Agreement with Daniel P. Amos, as amended and restated, dated August 20, 2015 - incorporated by reference from Form 10-Q for September 30, 2015, Exhibit 10.29 (File No. 001-07434).
|
|
10.33*
|
|
-
|
|
Aflac Incorporated Employment Agreement with Kriss Cloninger III, as amended and restated, dated August 20, 2015 - incorporated by reference from Form 10-Q for September 30, 2015, Exhibit 10.30 (File No. 001-07434).
|
|
10.34*
|
|
-
|
|
Aflac Employment Agreement with Paul S. Amos II, as amended and restated, dated August 19, 2015 - incorporated by reference from Form 10-Q for September 30, 2015, Exhibit 10.31 (File No. 001-07434).
|
|
10.35*
|
|
-
|
|
Aflac Employment Agreement with Eric M. Kirsch, as amended and restated, dated December 1, 2015 - incorporated by reference from Form 8-K dated December 1, 2015, Exhibit 10.1 (File No. 001-07434).
|
|
10.36*
|
|
-
|
|
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 4, 2016, 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 4, 2016, 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 4, 2016, 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.
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101.DEF
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-
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XBRL Taxonomy Extension Definition Linkbase.
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101.LAB
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-
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XBRL Taxonomy Extension Label Linkbase.
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101.PRE
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-
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XBRL Taxonomy Extension Presentation Linkbase.
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(1)
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Includes the following materials contained in this Quarterly Report on Form 10-Q for the period ended September 30, 2016, 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
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*
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Management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 6 of this report
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Aflac Incorporated
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November 4, 2016
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/s/
Frederick J. Crawford
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(Frederick J. Crawford)
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Executive Vice President,
Chief Financial Officer
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November 4, 2016
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/s/
June Howard
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(June Howard)
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Senior Vice President, Financial Services; Chief Accounting Officer
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1.
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The first paragraph of Section IV.A of the Plan hereby is amended by adding to said paragraph, immediately following the language therein, the following:
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2.
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Section IV.A(1) of the Plan hereby is amended by deleting clause (ii) thereof and by substituting in lieu thereof, the following:
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4.
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Except as specifically amended hereby, the Plan shall remain in full force and effect.
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AFLAC INCORPORATED
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By:
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/s/ Audrey B. Tillman
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Date:
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November 16, 2012
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1.
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Section IV.A(1) of the Plan hereby is amended by deleting the first sentence thereof and by substituting in lieu thereof, the following:
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3.
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Except as specifically amended hereby, the Plan shall remain in full force and effect.
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AFLAC INCORPORATED
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Date:
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October 18, 2016
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By:
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/s/ Audrey B. Tillman
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AFLAC INCORPORATED
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By:
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/s/ Matthew D. Owenby
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Date:
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October 7, 2016
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2016
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2015
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2016
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2015
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Numerator (In millions):
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Basic and diluted: net earnings applicable to common stock
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$
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629
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$
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567
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$
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1,908
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$
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1,803
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Denominator (In thousands):
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Weighted-average outstanding shares used in the
computation of earnings per share - basic |
408,519
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428,735
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413,023
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432,540
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Dilutive effect of share-based awards
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2,621
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2,367
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2,423
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2,524
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Weighted-average outstanding shares used in the
computation of earnings per share - diluted |
411,140
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431,102
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415,446
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435,064
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Earnings per share:
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Basic
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$
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1.54
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$
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1.32
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$
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4.62
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$
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4.17
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Diluted
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1.53
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1.32
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4.59
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4.14
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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(In thousands)
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2016
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2015
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2016
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2015
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Fixed charges:
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Interest expense
(1)
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$
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65,515
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$
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66,864
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$
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196,405
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$
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224,170
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Interest on investment-type contracts
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19,265
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14,290
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52,927
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41,849
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Rental expense deemed interest
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133
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136
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396
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402
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Total fixed charges
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$
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84,913
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$
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81,290
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$
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249,728
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$
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266,421
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Earnings before income tax
(1)
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$
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962,203
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$
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865,122
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$
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2,913,569
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$
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2,752,322
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Add back:
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Total fixed charges
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84,913
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81,290
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249,728
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266,421
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Total earnings before income tax and fixed charges
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$
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1,047,116
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$
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946,412
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$
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3,163,297
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$
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3,018,743
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Ratio of earnings to fixed charges
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12.3x
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11.6x
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12.7x
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11.3x
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/s/ KPMG LLP
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1.
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I have reviewed this
quarterly
report on Form
10-Q
of Aflac Incorporated;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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Date:
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November 4, 2016
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/s/
Daniel P. Amos
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Daniel P. Amos
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Chairman and Chief Executive Officer
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1.
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I have reviewed this
quarterly
report on Form
10-Q
of Aflac Incorporated;
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2.
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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;
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3.
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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;
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4.
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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:
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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
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5.
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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):
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a)
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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
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b)
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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.
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Date:
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November 4, 2016
|
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/s/ Frederick J. Crawford
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Frederick J. Crawford
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Executive Vice President, Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/
Daniel P. Amos
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Name:
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Daniel P. Amos
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Title:
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Chief Executive Officer
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Date:
|
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November 4, 2016
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/s/
Frederick J. Crawford
|
||
Name:
|
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Frederick J. Crawford
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Title:
|
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Chief Financial Officer
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Date:
|
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November 4, 2016
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