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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Emerging growth company
¨
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Class
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April 25, 2017
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Common Stock, $.10 Par Value
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|
396,846,578
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Page
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PART I.
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Item 1.
|
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||
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Three Months Ended March 31, 2017, and 2016
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Three Months Ended March 31, 2017, and 2016
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March 31, 2017 and December 31, 2016
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Three Months Ended March 31, 2017, and 2016
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Three Months Ended March 31, 2017, and 2016
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Item 2.
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Item 3.
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Item 4.
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PART II.
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Item 2.
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Item 6.
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/s/ KPMG LLP
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Three Months Ended
March 31, |
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|||||||
(In millions, except for share and per-share amounts - Unaudited)
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2017
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2016
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|
||||||
Revenues:
|
|
|
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|
|
||||
Net premiums, principally supplemental health insurance
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$
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4,638
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|
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$
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4,602
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Net investment income
|
794
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|
|
|
801
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|
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||
Realized investment gains (losses):
|
|
|
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|
|
||||
Other-than-temporary impairment losses realized
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(10
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)
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(14
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)
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||
Sales and redemptions
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(7
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)
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91
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|
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||
Derivative and other gains (losses)
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(123
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)
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(47
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)
|
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||
Total realized investment gains (losses)
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(140
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)
|
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30
|
|
|
||
Other income (loss)
|
17
|
|
|
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18
|
|
|
||
Total revenues
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5,309
|
|
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5,451
|
|
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||
Benefits and expenses:
|
|
|
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|
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||||
Benefits and claims, net
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3,052
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|
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3,025
|
|
|
||
Acquisition and operating expenses:
|
|
|
|
|
|
||||
Amortization of deferred policy acquisition costs
|
294
|
|
|
|
292
|
|
|
||
Insurance commissions
|
328
|
|
|
|
333
|
|
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||
Insurance expenses
|
614
|
|
|
|
563
|
|
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||
Interest expense
|
62
|
|
|
|
65
|
|
|
||
Other expenses
|
61
|
|
|
|
56
|
|
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||
Total acquisition and operating expenses
|
1,359
|
|
|
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1,309
|
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||
Total benefits and expenses
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4,411
|
|
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4,334
|
|
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Earnings before income taxes
|
898
|
|
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1,117
|
|
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||
Income taxes
|
306
|
|
|
|
386
|
|
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Net earnings
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$
|
592
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|
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$
|
731
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Net earnings per share:
|
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||||
Basic
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$
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1.48
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$
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1.75
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Diluted
|
1.47
|
|
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1.74
|
|
|
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Weighted-average outstanding common shares used in
computing earnings per share (In thousands): |
|
|
|
|
|
||||
Basic
|
401,130
|
|
|
|
418,748
|
|
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Diluted
|
404,069
|
|
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420,920
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Cash dividends per share
|
$
|
.43
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$
|
.41
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Three Months Ended
March 31, |
|||||||||
(In millions - Unaudited)
|
2017
|
2016
|
||||||||
Net earnings
|
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$
|
592
|
|
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$
|
731
|
|
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Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
||||
Unrealized foreign currency translation gains (losses) during
period |
|
375
|
|
|
|
689
|
|
|
||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
||||
Unrealized holding gains (losses) on investment securities during
period |
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(526
|
)
|
|
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2,689
|
|
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||
Reclassification adjustment for realized (gains) losses on
investment securities included in net earnings |
|
16
|
|
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(77
|
)
|
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Unrealized gains (losses) on derivatives during period
|
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2
|
|
|
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3
|
|
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||
Pension liability adjustment during period
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(2
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)
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(2
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)
|
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Total other comprehensive income (loss) before income taxes
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(135
|
)
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3,302
|
|
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Income tax expense (benefit) related to items of other comprehensive
income (loss) |
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(137
|
)
|
|
|
991
|
|
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Other comprehensive income (loss), net of income taxes
|
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2
|
|
|
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2,311
|
|
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||
Total comprehensive income (loss)
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$
|
594
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$
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3,042
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(In millions)
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March 31,
2017 (Unaudited) |
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December 31,
2016 |
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Assets:
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||||
Investments and cash:
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||||
Securities available for sale, at fair value:
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Fixed maturities (amortized cost $66,118 in 2017 and $62,195 in 2016)
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$
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72,113
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$
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68,778
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Fixed maturities - consolidated variable interest entities (amortized
cost $4,143 in 2017 and $4,168 in 2016) |
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4,964
|
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4,982
|
|
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Perpetual securities (amortized cost $1,317 in 2017 and $1,269 in 2016)
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1,555
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|
1,425
|
|
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||
Perpetual securities - consolidated variable interest entities
(amortized cost $246 in 2017 and $237 in 2016) |
|
215
|
|
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208
|
|
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||
Equity securities (cost $239 in 2017 and $231 in 2016)
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271
|
|
|
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265
|
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||
Equity securities - consolidated variable interest entities
(cost $1,013 in 2017 and $972 in 2016) |
|
1,078
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1,044
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Securities held to maturity, at amortized cost:
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Fixed maturities (fair value $40,923 in 2017 and $40,021 in 2016)
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34,401
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33,350
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Other investments
(1)
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1,701
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1,450
|
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Cash and cash equivalents
|
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4,205
|
|
|
|
|
4,859
|
|
|
||
Total investments and cash
|
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120,503
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|
|
|
|
116,361
|
|
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Receivables
|
|
618
|
|
|
|
|
669
|
|
|
||
Accrued investment income
|
|
723
|
|
|
|
|
754
|
|
|
||
Deferred policy acquisition costs
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|
9,255
|
|
|
|
|
8,993
|
|
|
||
Property and equipment, at cost less accumulated depreciation
|
|
444
|
|
|
|
|
433
|
|
|
||
Other
(2)
|
|
2,107
|
|
|
|
|
2,609
|
|
|
||
Total assets
|
|
$
|
133,650
|
|
|
|
|
$
|
129,819
|
|
|
(In millions, except for share and per-share amounts)
|
March 31,
2017 (Unaudited) |
|
December 31,
2016 |
||||||||
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||
Policy liabilities:
|
|
|
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
79,624
|
|
|
|
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$
|
76,106
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|
|
Unpaid policy claims
|
|
4,230
|
|
|
|
|
4,045
|
|
|
||
Unearned premiums
|
|
6,825
|
|
|
|
|
6,916
|
|
|
||
Other policyholders’ funds
|
|
6,945
|
|
|
|
|
6,659
|
|
|
||
Total policy liabilities
|
|
97,624
|
|
|
|
|
93,726
|
|
|
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Income taxes
|
|
5,626
|
|
|
|
|
5,387
|
|
|
||
Payables for return of cash collateral on loaned securities
|
|
1,482
|
|
|
|
|
526
|
|
|
||
Notes payable
|
|
5,250
|
|
|
|
|
5,360
|
|
|
||
Other
(3)
|
|
3,328
|
|
|
|
|
4,338
|
|
|
||
Total liabilities
|
|
113,310
|
|
|
|
|
109,337
|
|
|
||
Commitments and contingent liabilities (Note 12)
|
|
|
|
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000
shares in 2017 and 2016; issued 671,683 shares in 2017 and 671,249 shares in 2016 |
|
67
|
|
|
|
|
67
|
|
|
||
Additional paid-in capital
|
|
2,008
|
|
|
|
|
1,976
|
|
|
||
Retained earnings
|
|
26,400
|
|
|
|
|
25,981
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Unrealized foreign currency translation gains (losses)
|
|
(1,650
|
)
|
|
|
|
(1,983
|
)
|
|
||
Unrealized gains (losses) on investment securities
|
|
4,474
|
|
|
|
|
4,805
|
|
|
||
Unrealized gains (losses) on derivatives
|
|
(22
|
)
|
|
|
|
(24
|
)
|
|
||
Pension liability adjustment
|
|
(170
|
)
|
|
|
|
(168
|
)
|
|
||
Treasury stock, at average cost
|
|
(10,767
|
)
|
|
|
|
(10,172
|
)
|
|
||
Total shareholders’ equity
|
|
20,340
|
|
|
|
|
20,482
|
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
133,650
|
|
|
|
|
$
|
129,819
|
|
|
|
Three Months Ended
March 31, |
||||||||||
(In millions - Unaudited)
|
|
2017
|
|
|
|
2016
|
|
||||
Common stock:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
$
|
67
|
|
|
|
|
$
|
67
|
|
|
Balance, end of period
|
|
67
|
|
|
|
|
67
|
|
|
||
Additional paid-in capital:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
1,976
|
|
|
|
|
1,828
|
|
|
||
Exercise of stock options
|
|
10
|
|
|
|
|
10
|
|
|
||
Share-based compensation
|
|
12
|
|
|
|
|
21
|
|
|
||
Gain (loss) on treasury stock reissued
|
|
10
|
|
|
|
|
7
|
|
|
||
Balance, end of period
|
|
2,008
|
|
|
|
|
1,866
|
|
|
||
Retained earnings:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
25,981
|
|
|
|
|
24,007
|
|
|
||
Net earnings
|
|
592
|
|
|
|
|
731
|
|
|
||
Dividends to shareholders
|
|
(173
|
)
|
|
|
|
(173
|
)
|
|
||
Balance, end of period
|
|
26,400
|
|
|
|
|
24,565
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
2,630
|
|
|
|
|
625
|
|
|
||
Unrealized foreign currency translation gains (losses) during
period, net of income taxes |
|
333
|
|
|
|
|
612
|
|
|
||
Unrealized gains (losses) on investment securities during period,
net of income taxes and reclassification adjustments |
|
(331
|
)
|
|
|
|
1,698
|
|
|
||
Unrealized gains (losses) on derivatives during period, net of
income taxes |
|
2
|
|
|
|
|
2
|
|
|
||
Pension liability adjustment during period, net of income taxes
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
||
Balance, end of period
|
|
2,632
|
|
|
|
|
2,936
|
|
|
||
Treasury stock:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
(10,172
|
)
|
|
|
|
(8,819
|
)
|
|
||
Purchases of treasury stock
|
|
(610
|
)
|
|
|
|
(612
|
)
|
|
||
Cost of shares issued
|
|
15
|
|
|
|
|
18
|
|
|
||
Balance, end of period
|
|
(10,767
|
)
|
|
|
|
(9,413
|
)
|
|
||
Total shareholders’ equity
|
|
$
|
20,340
|
|
|
|
|
$
|
20,021
|
|
|
|
Three Months Ended March 31,
|
||||||||||
(In millions - Unaudited)
|
2017
|
|
2016
|
||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||
Net earnings
|
|
$
|
592
|
|
|
|
|
$
|
731
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Change in receivables and advance premiums
|
|
106
|
|
|
|
|
32
|
|
|
||
Increase in deferred policy acquisition costs
|
|
(41
|
)
|
|
|
|
(37
|
)
|
|
||
Increase in policy liabilities
|
|
666
|
|
|
|
|
919
|
|
|
||
Change in income tax liabilities
|
|
271
|
|
|
|
|
(367
|
)
|
|
||
Realized investment (gains) losses
|
|
140
|
|
|
|
|
(30
|
)
|
|
||
Other, net
|
|
23
|
|
|
|
|
83
|
|
|
||
Net cash provided (used) by operating activities
|
|
1,757
|
|
|
|
|
1,331
|
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||
Proceeds from investments sold or matured:
|
|
|
|
|
|
|
|
||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||
Fixed maturities sold
|
|
1,385
|
|
|
|
|
266
|
|
|
||
Fixed maturities matured or called
|
|
204
|
|
|
|
|
408
|
|
|
||
Perpetual securities matured or called
|
|
0
|
|
|
|
|
35
|
|
|
||
Equity securities sold
|
|
155
|
|
|
|
|
0
|
|
|
||
Securities held to maturity:
|
|
|
|
|
|
|
|
||||
Fixed maturities matured or called
|
|
228
|
|
|
|
|
277
|
|
|
||
Costs of investments acquired:
|
|
|
|
|
|
|
|
||||
Available-for-sale fixed maturities acquired
|
|
(3,726
|
)
|
|
|
|
(1,911
|
)
|
|
||
Available-for-sale equity securities acquired
|
|
(157
|
)
|
|
|
|
(364
|
)
|
|
||
Other investments, net
|
|
(203
|
)
|
|
|
|
(123
|
)
|
|
||
Settlement of derivatives, net
|
|
(44
|
)
|
|
|
|
273
|
|
|
||
Cash received (pledged or returned) as collateral, net
|
|
654
|
|
|
|
|
(189
|
)
|
|
||
Other, net
|
|
(23
|
)
|
|
|
|
(159
|
)
|
|
||
Net cash provided (used) by investing activities
|
|
(1,527
|
)
|
|
|
|
(1,487
|
)
|
|
||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||
Purchases of treasury stock
|
|
(610
|
)
|
|
|
|
(612
|
)
|
|
||
Proceeds from borrowings
|
|
524
|
|
|
|
|
0
|
|
|
||
Principal payments under debt obligations
|
|
(654
|
)
|
|
|
|
0
|
|
|
||
Dividends paid to shareholders
|
|
(166
|
)
|
|
|
|
(167
|
)
|
|
||
Change in investment-type contracts, net
|
|
18
|
|
|
|
|
45
|
|
|
||
Treasury stock reissued
|
|
11
|
|
|
|
|
7
|
|
|
||
Other, net
|
|
1
|
|
|
|
|
(39
|
)
|
|
||
Net cash provided (used) by financing activities
|
|
(876
|
)
|
|
|
|
(766
|
)
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
(8
|
)
|
|
|
|
21
|
|
|
||
Net change in cash and cash equivalents
|
|
(654
|
)
|
|
|
|
(901
|
)
|
|
||
Cash and cash equivalents, beginning of period
|
|
4,859
|
|
|
|
|
4,350
|
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
4,205
|
|
|
|
|
$
|
3,449
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
||||
Income taxes paid
|
|
$
|
58
|
|
|
|
|
$
|
779
|
|
|
Interest paid
|
|
47
|
|
|
|
|
54
|
|
|
||
Noncash interest
|
|
15
|
|
|
|
|
12
|
|
|
||
Impairment losses included in realized investment losses
|
|
10
|
|
|
|
|
14
|
|
|
||
Noncash financing activities:
|
|
|
|
|
|
|
|
||||
Capital lease obligations
|
|
2
|
|
|
|
|
1
|
|
|
||
Treasury stock issued for:
|
|
|
|
|
|
|
|
||||
Associate stock bonus
|
|
6
|
|
|
|
|
8
|
|
|
||
Shareholder dividend reinvestment
|
|
7
|
|
|
|
|
6
|
|
|
||
Share-based compensation grants
|
|
1
|
|
|
|
|
4
|
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
2.
|
BUSINESS SEGMENT INFORMATION
|
|
Three Months Ended
March 31, |
|
||||||
(In millions)
|
2017
|
|
2016
|
|
||||
Revenues:
|
|
|
|
|
||||
Aflac Japan:
|
|
|
|
|
||||
Net earned premiums
|
$
|
3,194
|
|
|
$
|
3,179
|
|
|
Net investment income, less amortized hedge costs
(1)
|
557
|
|
|
590
|
|
|
||
Other income
|
10
|
|
|
8
|
|
|
||
Total Aflac Japan
|
3,761
|
|
|
3,777
|
|
|
||
Aflac U.S.:
|
|
|
|
|
||||
Net earned premiums
|
1,390
|
|
|
1,367
|
|
|
||
Net investment income
|
178
|
|
|
174
|
|
|
||
Other income
|
1
|
|
|
3
|
|
|
||
Total Aflac U.S.
|
1,569
|
|
|
1,544
|
|
|
||
Other business segments
|
67
|
|
|
65
|
|
|
||
Total business segment revenues
|
5,397
|
|
|
5,386
|
|
|
||
Realized investment gains (losses)
(1), (2), (3)
|
(109
|
)
|
|
40
|
|
|
||
Corporate
|
87
|
|
|
67
|
|
|
||
Intercompany eliminations and other
|
(66
|
)
|
|
(42
|
)
|
|
||
Total revenues
|
$
|
5,309
|
|
|
$
|
5,451
|
|
|
|
Three Months Ended
March 31, |
|
||||||
(In millions)
|
2017
|
|
2016
|
|
||||
Pretax earnings:
|
|
|
|
|
||||
Aflac Japan
(1)
|
$
|
769
|
|
|
$
|
806
|
|
|
Aflac U.S.
|
310
|
|
|
332
|
|
|
||
Other business segments
|
0
|
|
|
3
|
|
|
||
Total business segment pretax operating earnings
|
1,079
|
|
|
1,141
|
|
|
||
Interest expense, noninsurance operations
|
(29
|
)
|
|
(29
|
)
|
|
||
Corporate and eliminations
|
(23
|
)
|
|
(35
|
)
|
|
||
Pretax operating earnings
|
1,027
|
|
|
1,077
|
|
|
||
Realized investment gains (losses)
(1), (2), (3)
|
(109
|
)
|
|
40
|
|
|
||
Other non-operating income (loss)
(3)
|
(20
|
)
|
|
0
|
|
|
||
Total earnings before income taxes
|
$
|
898
|
|
|
$
|
1,117
|
|
|
Income taxes applicable to pretax operating earnings
|
$
|
351
|
|
|
$
|
372
|
|
|
Effect of foreign currency translation on after-tax operating earnings
|
5
|
|
|
13
|
|
|
(In millions)
|
March 31,
2017 |
|
December 31,
2016 |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Aflac Japan
|
|
$
|
112,023
|
|
|
|
|
$
|
107,858
|
|
|
Aflac U.S.
|
|
19,817
|
|
|
|
|
19,453
|
|
|
||
Other business segments
|
|
338
|
|
|
|
|
270
|
|
|
||
Total business segment assets
|
|
132,178
|
|
|
|
|
127,581
|
|
|
||
Corporate
|
|
26,024
|
|
|
|
|
26,476
|
|
|
||
Intercompany eliminations
|
|
(24,552
|
)
|
|
|
|
(24,238
|
)
|
|
||
Total assets
|
|
$
|
133,650
|
|
|
|
|
$
|
129,819
|
|
|
3.
|
INVESTMENTS
|
|
March 31, 2017
|
||||||||||||||||||||||
(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
|
|
$
|
26,311
|
|
|
|
|
$
|
3,203
|
|
|
|
|
$
|
366
|
|
|
|
|
$
|
29,148
|
|
|
Municipalities
|
|
281
|
|
|
|
|
26
|
|
|
|
|
12
|
|
|
|
|
295
|
|
|
||||
Mortgage- and asset-backed securities
|
|
272
|
|
|
|
|
32
|
|
|
|
|
0
|
|
|
|
|
304
|
|
|
||||
Public utilities
|
|
1,637
|
|
|
|
|
324
|
|
|
|
|
6
|
|
|
|
|
1,955
|
|
|
||||
Sovereign and supranational
|
|
846
|
|
|
|
|
133
|
|
|
|
|
6
|
|
|
|
|
973
|
|
|
||||
Banks/financial institutions
|
|
3,039
|
|
|
|
|
414
|
|
|
|
|
83
|
|
|
|
|
3,370
|
|
|
||||
Other corporate
|
|
3,429
|
|
|
|
|
596
|
|
|
|
|
16
|
|
|
|
|
4,009
|
|
|
||||
Total yen-denominated
|
|
35,815
|
|
|
|
|
4,728
|
|
|
|
|
489
|
|
|
|
|
40,054
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
161
|
|
|
|
|
11
|
|
|
|
|
0
|
|
|
|
|
172
|
|
|
||||
Municipalities
|
|
901
|
|
|
|
|
133
|
|
|
|
|
7
|
|
|
|
|
1,027
|
|
|
||||
Mortgage- and asset-backed securities
|
|
184
|
|
|
|
|
16
|
|
|
|
|
0
|
|
|
|
|
200
|
|
|
||||
Public utilities
|
|
5,296
|
|
|
|
|
669
|
|
|
|
|
77
|
|
|
|
|
5,888
|
|
|
||||
Sovereign and supranational
|
|
326
|
|
|
|
|
87
|
|
|
|
|
0
|
|
|
|
|
413
|
|
|
||||
Banks/financial institutions
|
|
2,680
|
|
|
|
|
513
|
|
|
|
|
18
|
|
|
|
|
3,175
|
|
|
||||
Other corporate
|
|
24,898
|
|
|
|
|
1,972
|
|
|
|
|
722
|
|
|
|
|
26,148
|
|
|
||||
Total U.S. dollar-denominated
|
|
34,446
|
|
|
|
|
3,401
|
|
|
|
|
824
|
|
|
|
|
37,023
|
|
|
||||
Total fixed maturities
|
|
70,261
|
|
|
|
|
8,129
|
|
|
|
|
1,313
|
|
|
|
|
77,077
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
1,315
|
|
|
|
|
208
|
|
|
|
|
50
|
|
|
|
|
1,473
|
|
|
||||
Other corporate
|
|
196
|
|
|
|
|
23
|
|
|
|
|
0
|
|
|
|
|
219
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
52
|
|
|
|
|
26
|
|
|
|
|
0
|
|
|
|
|
78
|
|
|
||||
Total perpetual securities
|
|
1,563
|
|
|
|
|
257
|
|
|
|
|
50
|
|
|
|
|
1,770
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Yen-denominated
|
|
668
|
|
|
|
|
63
|
|
|
|
|
10
|
|
|
|
|
721
|
|
|
||||
U.S. dollar-denominated
|
|
584
|
|
|
|
|
55
|
|
|
|
|
11
|
|
|
|
|
628
|
|
|
||||
Total equity securities
|
|
1,252
|
|
|
|
|
118
|
|
|
|
|
21
|
|
|
|
|
1,349
|
|
|
||||
Total securities available for sale
|
|
$
|
73,076
|
|
|
|
|
$
|
8,504
|
|
|
|
|
$
|
1,384
|
|
|
|
|
$
|
80,196
|
|
|
|
March 31, 2017
|
||||||||||||||||||||||
(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
|
|
$
|
21,493
|
|
|
|
|
$
|
5,114
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,607
|
|
|
Municipalities
|
|
363
|
|
|
|
|
104
|
|
|
|
|
0
|
|
|
|
|
467
|
|
|
||||
Mortgage- and asset-backed securities
|
|
30
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
32
|
|
|
||||
Public utilities
|
|
3,324
|
|
|
|
|
376
|
|
|
|
|
7
|
|
|
|
|
3,693
|
|
|
||||
Sovereign and supranational
|
|
2,702
|
|
|
|
|
307
|
|
|
|
|
0
|
|
|
|
|
3,009
|
|
|
||||
Banks/financial institutions
|
|
3,650
|
|
|
|
|
204
|
|
|
|
|
24
|
|
|
|
|
3,830
|
|
|
||||
Other corporate
|
|
2,839
|
|
|
|
|
446
|
|
|
|
|
0
|
|
|
|
|
3,285
|
|
|
||||
Total yen-denominated
|
|
34,401
|
|
|
|
|
6,553
|
|
|
|
|
31
|
|
|
|
|
40,923
|
|
|
||||
Total securities held to maturity
|
|
$
|
34,401
|
|
|
|
|
$
|
6,553
|
|
|
|
|
$
|
31
|
|
|
|
|
$
|
40,923
|
|
|
|
December 31, 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
|
|
$
|
22,857
|
|
|
|
|
$
|
3,359
|
|
|
|
|
$
|
160
|
|
|
|
|
$
|
26,056
|
|
|
Municipalities
|
|
246
|
|
|
|
|
29
|
|
|
|
|
8
|
|
|
|
|
267
|
|
|
||||
Mortgage- and asset-backed securities
|
|
1,096
|
|
|
|
|
33
|
|
|
|
|
8
|
|
|
|
|
1,121
|
|
|
||||
Public utilities
|
|
1,533
|
|
|
|
|
318
|
|
|
|
|
3
|
|
|
|
|
1,848
|
|
|
||||
Sovereign and supranational
|
|
862
|
|
|
|
|
186
|
|
|
|
|
5
|
|
|
|
|
1,043
|
|
|
||||
Banks/financial institutions
|
|
2,673
|
|
|
|
|
403
|
|
|
|
|
74
|
|
|
|
|
3,002
|
|
|
||||
Other corporate
|
|
3,192
|
|
|
|
|
623
|
|
|
|
|
3
|
|
|
|
|
3,812
|
|
|
||||
Total yen-denominated
|
|
32,459
|
|
|
|
|
4,951
|
|
|
|
|
261
|
|
|
|
|
37,149
|
|
|
||||
U.S dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
148
|
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|
|
158
|
|
|
||||
Municipalities
|
|
894
|
|
|
|
|
142
|
|
|
|
|
8
|
|
|
|
|
1,028
|
|
|
||||
Mortgage- and asset-backed securities
|
|
196
|
|
|
|
|
20
|
|
|
|
|
0
|
|
|
|
|
216
|
|
|
||||
Public utilities
|
|
5,205
|
|
|
|
|
690
|
|
|
|
|
60
|
|
|
|
|
5,835
|
|
|
||||
Sovereign and supranational
|
|
335
|
|
|
|
|
91
|
|
|
|
|
0
|
|
|
|
|
426
|
|
|
||||
Banks/financial institutions
|
|
2,570
|
|
|
|
|
507
|
|
|
|
|
16
|
|
|
|
|
3,061
|
|
|
||||
Other corporate
|
|
24,556
|
|
|
|
|
2,021
|
|
|
|
|
690
|
|
|
|
|
25,887
|
|
|
||||
Total U.S. dollar-denominated
|
|
33,904
|
|
|
|
|
3,481
|
|
|
|
|
774
|
|
|
|
|
36,611
|
|
|
||||
Total fixed maturities
|
|
66,363
|
|
|
|
|
8,432
|
|
|
|
|
1,035
|
|
|
|
|
73,760
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
1,266
|
|
|
|
|
128
|
|
|
|
|
49
|
|
|
|
|
1,345
|
|
|
||||
Other corporate
|
|
189
|
|
|
|
|
24
|
|
|
|
|
0
|
|
|
|
|
213
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
51
|
|
|
|
|
24
|
|
|
|
|
0
|
|
|
|
|
75
|
|
|
||||
Total perpetual securities
|
|
1,506
|
|
|
|
|
176
|
|
|
|
|
49
|
|
|
|
|
1,633
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated
|
|
624
|
|
|
|
|
83
|
|
|
|
|
2
|
|
|
|
|
705
|
|
|
||||
U.S. dollar-denominated
|
|
579
|
|
|
|
|
31
|
|
|
|
|
6
|
|
|
|
|
604
|
|
|
||||
Total equity securities
|
|
1,203
|
|
|
|
|
114
|
|
|
|
|
8
|
|
|
|
|
1,309
|
|
|
||||
Total securities available for sale
|
|
$
|
69,072
|
|
|
|
|
$
|
8,722
|
|
|
|
|
$
|
1,092
|
|
|
|
|
$
|
76,702
|
|
|
|
December 31, 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
|
|
$
|
20,702
|
|
|
|
|
$
|
5,338
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,040
|
|
|
Municipalities
|
|
350
|
|
|
|
|
107
|
|
|
|
|
0
|
|
|
|
|
457
|
|
|
||||
Mortgage- and asset-backed securities
|
|
30
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
32
|
|
|
||||
Public utilities
|
|
3,201
|
|
|
|
|
358
|
|
|
|
|
23
|
|
|
|
|
3,536
|
|
|
||||
Sovereign and supranational
|
|
2,602
|
|
|
|
|
283
|
|
|
|
|
8
|
|
|
|
|
2,877
|
|
|
||||
Banks/financial institutions
|
|
3,731
|
|
|
|
|
195
|
|
|
|
|
26
|
|
|
|
|
3,900
|
|
|
||||
Other corporate
|
|
2,734
|
|
|
|
|
452
|
|
|
|
|
7
|
|
|
|
|
3,179
|
|
|
||||
Total yen-denominated
|
|
33,350
|
|
|
|
|
6,735
|
|
|
|
|
64
|
|
|
|
|
40,021
|
|
|
||||
Total securities held to maturity
|
|
$
|
33,350
|
|
|
|
|
$
|
6,735
|
|
|
|
|
$
|
64
|
|
|
|
|
$
|
40,021
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
145
|
|
|
|
|
$
|
161
|
|
|
|
|
$
|
74
|
|
|
|
|
$
|
77
|
|
|
Due after one year through five years
|
|
3,561
|
|
|
|
|
3,788
|
|
|
|
|
664
|
|
|
|
|
716
|
|
|
||||
Due after five years through 10 years
|
|
9,846
|
|
|
|
|
10,093
|
|
|
|
|
3,128
|
|
|
|
|
3,324
|
|
|
||||
Due after 10 years
|
|
43,392
|
|
|
|
|
48,447
|
|
|
|
|
8,462
|
|
|
|
|
9,421
|
|
|
||||
Mortgage- and asset-backed securities
|
|
316
|
|
|
|
|
361
|
|
|
|
|
43
|
|
|
|
|
47
|
|
|
||||
Total fixed maturities available for sale
|
|
$
|
57,260
|
|
|
|
|
$
|
62,850
|
|
|
|
|
$
|
12,371
|
|
|
|
|
$
|
13,585
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due after one year through five years
|
|
$
|
2,086
|
|
|
|
|
$
|
2,193
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after five years through 10 years
|
|
1,645
|
|
|
|
|
1,813
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
30,640
|
|
|
|
|
36,884
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Mortgage- and asset-backed securities
|
|
30
|
|
|
|
|
33
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total fixed maturities held to maturity
|
|
$
|
34,401
|
|
|
|
|
$
|
40,923
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Due in one year or less
|
|
$
|
90
|
|
|
|
|
$
|
87
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after one year through five years
|
|
196
|
|
|
|
|
219
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
1,238
|
|
|
|
|
1,407
|
|
|
|
|
39
|
|
|
|
|
57
|
|
|
||||
Total perpetual securities available for sale
|
|
$
|
1,524
|
|
|
|
|
$
|
1,713
|
|
|
|
|
$
|
39
|
|
|
|
|
$
|
57
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
Japan National Government
(1)
|
A
|
|
$47,131
|
|
$54,971
|
|
A
|
|
$42,931
|
|
$51,345
|
|
Three Months Ended
March 31, |
|
||||||
(In millions)
|
2017
|
|
2016
|
|
||||
Realized investment gains (losses):
|
|
|
|
|
||||
Fixed maturities:
|
|
|
|
|
||||
Available for sale:
|
|
|
|
|
||||
Gross gains from sales
|
$
|
12
|
|
|
$
|
2
|
|
|
Gross losses from sales
(1)
|
(15
|
)
|
|
(4
|
)
|
|
||
Net gains (losses) from redemptions
(1)
|
(29
|
)
|
|
83
|
|
|
||
Other-than-temporary impairment losses
(1)
|
(4
|
)
|
|
(12
|
)
|
|
||
Total fixed maturities
|
(36
|
)
|
|
69
|
|
|
||
Perpetual securities:
|
|
|
|
|
||||
Available for sale:
|
|
|
|
|
||||
Net gains (losses) from redemptions
|
0
|
|
|
10
|
|
(1)
|
||
Other-than-temporary impairment losses
|
0
|
|
|
(2
|
)
|
(1)
|
||
Total perpetual securities
|
0
|
|
|
8
|
|
|
||
Equity securities:
|
|
|
|
|
||||
Net gains (losses) from redemptions
|
25
|
|
|
0
|
|
|
||
Other-than-temporary impairment losses
|
(6
|
)
|
|
0
|
|
|
||
Total equity securities
|
19
|
|
|
0
|
|
|
||
Derivatives and other:
|
|
|
|
|
||||
Derivative gains (losses)
|
(52
|
)
|
|
(4
|
)
|
|
||
Foreign currency gains (losses)
|
(71
|
)
|
|
(43
|
)
|
|
||
Total derivatives and other
|
(123
|
)
|
|
(47
|
)
|
|
||
Total realized investment gains (losses)
|
$
|
(140
|
)
|
|
$
|
30
|
|
|
(In millions)
|
March 31, 2017
|
|
December 31,
2016 |
||||||||
Unrealized gains (losses) on securities available for sale
|
|
$
|
7,120
|
|
|
|
|
$
|
7,630
|
|
|
Deferred income taxes
|
|
(2,646
|
)
|
|
|
|
(2,825
|
)
|
|
||
Shareholders’ equity, unrealized gains (losses) on investment securities
|
|
$
|
4,474
|
|
|
|
|
$
|
4,805
|
|
|
|
March 31, 2017
|
||||||||||||||||||||||||||||||||||
|
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
|
|
$
|
5,940
|
|
|
|
|
$
|
366
|
|
|
|
|
$
|
5,940
|
|
|
|
|
$
|
366
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
45
|
|
|
|
|
7
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
45
|
|
|
|
|
7
|
|
|
||||||
Yen-denominated
|
|
132
|
|
|
|
|
12
|
|
|
|
|
132
|
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
1,642
|
|
|
|
|
77
|
|
|
|
|
1,124
|
|
|
|
|
37
|
|
|
|
|
518
|
|
|
|
|
40
|
|
|
||||||
Yen-denominated
|
|
325
|
|
|
|
|
13
|
|
|
|
|
127
|
|
|
|
|
6
|
|
|
|
|
198
|
|
|
|
|
7
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
39
|
|
|
|
|
6
|
|
|
|
|
39
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
390
|
|
|
|
|
18
|
|
|
|
|
309
|
|
|
|
|
6
|
|
|
|
|
81
|
|
|
|
|
12
|
|
|
||||||
Yen-denominated
|
|
1,531
|
|
|
|
|
107
|
|
|
|
|
646
|
|
|
|
|
34
|
|
|
|
|
885
|
|
|
|
|
73
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
10,690
|
|
|
|
|
722
|
|
|
|
|
7,046
|
|
|
|
|
272
|
|
|
|
|
3,644
|
|
|
|
|
450
|
|
|
||||||
Yen-denominated
|
|
415
|
|
|
|
|
16
|
|
|
|
|
415
|
|
|
|
|
16
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total fixed maturities
|
|
21,149
|
|
|
|
|
1,344
|
|
|
|
|
15,778
|
|
|
|
|
755
|
|
|
|
|
5,371
|
|
|
|
|
589
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
409
|
|
|
|
|
50
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
409
|
|
|
|
|
50
|
|
|
||||||
Total perpetual securities
|
|
409
|
|
|
|
|
50
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
409
|
|
|
|
|
50
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
131
|
|
|
|
|
11
|
|
|
|
|
117
|
|
|
|
|
8
|
|
|
|
|
14
|
|
|
|
|
3
|
|
|
||||||
Yen-denominated
|
|
208
|
|
|
|
|
10
|
|
|
|
|
172
|
|
|
|
|
5
|
|
|
|
|
36
|
|
|
|
|
5
|
|
|
||||||
Total equity securities
|
|
339
|
|
|
|
|
21
|
|
|
|
|
289
|
|
|
|
|
13
|
|
|
|
|
50
|
|
|
|
|
8
|
|
|
||||||
Total
|
|
$
|
21,897
|
|
|
|
|
$
|
1,415
|
|
|
|
|
$
|
16,067
|
|
|
|
|
$
|
768
|
|
|
|
|
$
|
5,830
|
|
|
|
|
$
|
647
|
|
|
|
December 31, 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
|
|
$
|
3,958
|
|
|
|
|
$
|
160
|
|
|
|
|
$
|
3,958
|
|
|
|
|
$
|
160
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
44
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
44
|
|
|
|
|
8
|
|
|
||||||
Yen-denominated
|
|
105
|
|
|
|
|
8
|
|
|
|
|
105
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Mortgage- and asset-
backed securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
713
|
|
|
|
|
8
|
|
|
|
|
713
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
1,265
|
|
|
|
|
60
|
|
|
|
|
790
|
|
|
|
|
32
|
|
|
|
|
475
|
|
|
|
|
28
|
|
|
||||||
Yen-denominated
|
|
635
|
|
|
|
|
26
|
|
|
|
|
347
|
|
|
|
|
14
|
|
|
|
|
288
|
|
|
|
|
12
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
244
|
|
|
|
|
13
|
|
|
|
|
38
|
|
|
|
|
5
|
|
|
|
|
206
|
|
|
|
|
8
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
268
|
|
|
|
|
16
|
|
|
|
|
238
|
|
|
|
|
10
|
|
|
|
|
30
|
|
|
|
|
6
|
|
|
||||||
Yen-denominated
|
|
1,521
|
|
|
|
|
100
|
|
|
|
|
636
|
|
|
|
|
19
|
|
|
|
|
885
|
|
|
|
|
81
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
10,462
|
|
|
|
|
690
|
|
|
|
|
7,252
|
|
|
|
|
346
|
|
|
|
|
3,210
|
|
|
|
|
344
|
|
|
||||||
Yen-denominated
|
|
321
|
|
|
|
|
10
|
|
|
|
|
321
|
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total fixed maturities
|
|
19,536
|
|
|
|
|
1,099
|
|
|
|
|
14,398
|
|
|
|
|
612
|
|
|
|
|
5,138
|
|
|
|
|
487
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
479
|
|
|
|
|
49
|
|
|
|
|
85
|
|
|
|
|
1
|
|
|
|
|
394
|
|
|
|
|
48
|
|
|
||||||
Total perpetual securities
|
|
479
|
|
|
|
|
49
|
|
|
|
|
85
|
|
|
|
|
1
|
|
|
|
|
394
|
|
|
|
|
48
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
211
|
|
|
|
|
6
|
|
|
|
|
211
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Yen-denominated
|
|
49
|
|
|
|
|
2
|
|
|
|
|
49
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total equity securities
|
|
260
|
|
|
|
|
8
|
|
|
|
|
260
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
20,275
|
|
|
|
|
$
|
1,156
|
|
|
|
|
$
|
14,743
|
|
|
|
|
$
|
621
|
|
|
|
|
$
|
5,532
|
|
|
|
|
$
|
535
|
|
|
(In millions)
|
March 31,
2017
|
|
December 31,
2016
|
||||||||
Other investments:
|
|
|
|
|
|
|
|
||||
Commercial mortgage loans
|
|
$
|
870
|
|
|
|
|
$
|
855
|
|
|
Middle market loans
|
|
439
|
|
|
|
|
319
|
|
|
||
Short-term investments
|
|
141
|
|
|
|
|
89
|
|
|
||
Policy loans
|
|
197
|
|
|
|
|
184
|
|
|
||
Other
|
|
54
|
|
|
|
|
3
|
|
|
||
Total other investments
|
|
$
|
1,701
|
|
|
|
|
$
|
1,450
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(In millions)
|
Cost or Amortized
Cost |
|
Fair
Value |
|
Cost or Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
4,143
|
|
|
|
|
$
|
4,964
|
|
|
|
|
$
|
4,168
|
|
|
|
|
$
|
4,982
|
|
|
Perpetual securities, available for sale
|
|
246
|
|
|
|
|
215
|
|
|
|
|
237
|
|
|
|
|
208
|
|
|
||||
Equity securities
|
|
1,013
|
|
|
|
|
1,078
|
|
|
|
|
972
|
|
|
|
|
1,044
|
|
|
||||
Other investments
(1)
|
|
926
|
|
|
|
|
906
|
|
|
|
|
819
|
|
|
|
|
789
|
|
|
||||
Other assets
(2)
|
|
146
|
|
|
|
|
146
|
|
|
|
|
127
|
|
|
|
|
127
|
|
|
||||
Total assets of consolidated VIEs
|
|
$
|
6,474
|
|
|
|
|
$
|
7,309
|
|
|
|
|
$
|
6,323
|
|
|
|
|
$
|
7,150
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
(2)
|
|
$
|
125
|
|
|
|
|
$
|
125
|
|
|
|
|
$
|
146
|
|
|
|
|
$
|
146
|
|
|
Total liabilities of consolidated VIEs
|
|
$
|
125
|
|
|
|
|
$
|
125
|
|
|
|
|
$
|
146
|
|
|
|
|
$
|
146
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
4,823
|
|
|
|
|
$
|
5,354
|
|
|
|
|
$
|
4,729
|
|
|
|
|
$
|
5,261
|
|
|
Perpetual securities, available for sale
|
|
178
|
|
|
|
|
230
|
|
|
|
|
172
|
|
|
|
|
200
|
|
|
||||
Fixed maturities, held to maturity
|
|
2,660
|
|
|
|
|
3,039
|
|
|
|
|
2,563
|
|
|
|
|
2,948
|
|
|
||||
Other investments
|
|
52
|
|
|
|
|
52
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||
Total investments in VIEs not consolidated
|
|
$
|
7,713
|
|
|
|
|
$
|
8,675
|
|
|
|
|
$
|
7,465
|
|
|
|
|
$
|
8,410
|
|
|
Securities Lending Transactions Accounted for as Secured Borrowings
|
||||||||||||
December 31, 2016
|
||||||||||||
Remaining Contractual Maturity of the Agreements
|
||||||||||||
(In millions)
|
Overnight
and Continuous (1) |
|
Up to 30
days |
|
|
Total
|
||||||
Securities lending transactions:
|
|
|
|
|
|
|
||||||
Public utilities
|
$
|
62
|
|
|
$
|
0
|
|
|
|
$
|
62
|
|
Banks/financial institutions
|
34
|
|
|
0
|
|
|
|
34
|
|
|||
Other corporate
|
430
|
|
|
0
|
|
|
|
430
|
|
|||
Total borrowings
|
$
|
526
|
|
|
$
|
0
|
|
|
|
$
|
526
|
|
Gross amount of recognized liabilities for securities lending transactions
|
|
$
|
526
|
|
||||||||
Amounts related to agreements not included in offsetting disclosure in Note 4
|
|
$
|
0
|
|
4.
|
DERIVATIVE INSTRUMENTS
|
|
|
March 31, 2017
|
|
|
December 31, 2016
|
|
|
||||||||||||||||||||||||||||
(In millions)
|
|
|
Asset
Derivatives |
|
Liability
Derivatives |
|
|
Asset
Derivatives |
|
Liability
Derivatives |
|
||||||||||||||||||||||||
Hedge Designation/ Derivative
Type |
Notional
Amount |
|
Fair Value
|
|
Fair Value
|
Notional
Amount |
|
Fair Value
|
|
Fair Value
|
|
||||||||||||||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
$
|
75
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(6
|
)
|
|
|
$
|
75
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(10
|
)
|
|
|
Total cash flow hedges
|
|
75
|
|
|
|
|
0
|
|
|
|
|
(6
|
)
|
|
|
75
|
|
|
|
|
0
|
|
|
|
|
(10
|
)
|
|
|
||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forwards
|
|
9,705
|
|
|
|
|
10
|
|
|
|
|
(428
|
)
|
|
|
10,965
|
|
|
|
|
0
|
|
|
|
|
(759
|
)
|
|
|
||||||
Foreign currency options
|
|
5,560
|
|
|
|
|
5
|
|
|
|
|
(4
|
)
|
|
|
4,224
|
|
|
|
|
2
|
|
|
|
|
(32
|
)
|
|
|
||||||
Total fair value hedges
|
|
15,265
|
|
|
|
|
15
|
|
|
|
|
(432
|
)
|
|
|
15,189
|
|
|
|
|
2
|
|
|
|
|
(791
|
)
|
|
|
||||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forwards
|
|
236
|
|
|
|
|
0
|
|
|
|
|
(4
|
)
|
|
|
209
|
|
|
|
|
5
|
|
|
|
|
(2
|
)
|
|
|
||||||
Foreign currency options
|
|
924
|
|
|
|
|
20
|
|
|
|
|
(18
|
)
|
|
|
843
|
|
|
|
|
41
|
|
|
|
|
(17
|
)
|
|
|
||||||
Total net investment hedge
|
|
1,160
|
|
|
|
|
20
|
|
|
|
|
(22
|
)
|
|
|
1,052
|
|
|
|
|
46
|
|
|
|
|
(19
|
)
|
|
|
||||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
5,890
|
|
|
|
|
318
|
|
|
|
|
(218
|
)
|
|
|
6,266
|
|
|
|
|
490
|
|
|
|
|
(220
|
)
|
|
|
||||||
Foreign currency forwards
|
|
11,972
|
|
|
|
|
225
|
|
|
|
|
(421
|
)
|
|
|
21,218
|
|
|
|
|
667
|
|
|
|
|
(956
|
)
|
|
|
||||||
Foreign currency options
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
41
|
|
|
|
|
0
|
|
|
|
|
(2
|
)
|
|
|
||||||
Credit default swaps
|
|
89
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
86
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
|
||||||
Total non-qualifying strategies
|
|
17,951
|
|
|
|
|
545
|
|
|
|
|
(639
|
)
|
|
|
27,611
|
|
|
|
|
1,159
|
|
|
|
|
(1,178
|
)
|
|
|
||||||
Total derivatives
|
|
$
|
34,451
|
|
|
|
|
$
|
580
|
|
|
|
|
$
|
(1,099
|
)
|
|
|
$
|
43,927
|
|
|
|
|
$
|
1,207
|
|
|
|
|
$
|
(1,998
|
)
|
|
|
Balance Sheet Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets
|
|
$
|
14,115
|
|
|
|
|
$
|
580
|
|
|
|
|
$
|
0
|
|
|
|
$
|
18,329
|
|
|
|
|
$
|
1,207
|
|
|
|
|
$
|
0
|
|
|
|
Other liabilities
|
|
20,336
|
|
|
|
|
0
|
|
|
|
|
(1,099
|
)
|
|
|
25,598
|
|
|
|
|
0
|
|
|
|
|
(1,998
|
)
|
|
|
||||||
Total derivatives
|
|
$
|
34,451
|
|
|
|
|
$
|
580
|
|
|
|
|
$
|
(1,099
|
)
|
|
|
$
|
43,927
|
|
|
|
|
$
|
1,207
|
|
|
|
|
$
|
(1,998
|
)
|
|
|
(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 March 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency forwards
|
Fixed-maturity and equity securities
|
|
$
|
341
|
|
|
$
|
(48
|
)
|
|
$
|
389
|
|
|
$
|
(372
|
)
|
|
$
|
17
|
|
Foreign currency options
|
Fixed-maturity securities
|
|
24
|
|
|
13
|
|
|
11
|
|
|
(10
|
)
|
|
1
|
|
|||||
Three Months Ended March 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency forwards
|
Fixed-maturity securities
|
|
$
|
857
|
|
|
$
|
(44
|
)
|
|
$
|
901
|
|
|
$
|
(882
|
)
|
|
$
|
19
|
|
Foreign currency options
|
Fixed-maturity securities
|
|
(1
|
)
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Three Months Ended March 31,
|
|||||||||||||||||||
|
2017
|
2016
|
||||||||||||||||||
(In millions)
|
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
|
|
|
|
$
|
2
|
|
|
|
$
|
0
|
|
|
|
$
|
3
|
|
|
Total cash flow hedges
|
|
0
|
|
|
|
2
|
|
|
|
0
|
|
|
|
3
|
|
|
||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency forwards
(2)
|
|
(31
|
)
|
|
|
0
|
|
|
|
(25
|
)
|
|
|
0
|
|
|
||||
Foreign currency options
(2)
|
|
14
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
0
|
|
|
||||
Total fair value hedges
|
|
(17
|
)
|
|
|
0
|
|
|
|
(26
|
)
|
|
|
0
|
|
|
||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-derivative hedging instruments
|
|
0
|
|
|
|
(17
|
)
|
|
|
0
|
|
|
|
(15
|
)
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
(9
|
)
|
|
|
0
|
|
|
|
(50
|
)
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
(23
|
)
|
|
|
0
|
|
|
|
(16
|
)
|
|
||||
Total net investment hedge
|
|
0
|
|
|
|
(49
|
)
|
|
|
0
|
|
|
|
(81
|
)
|
|
||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
(8
|
)
|
|
|
0
|
|
|
|
10
|
|
|
|
0
|
|
|
||||
Foreign currency forwards
|
|
(27
|
)
|
|
|
0
|
|
|
|
11
|
|
|
|
0
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
0
|
|
|
|
1
|
|
|
|
0
|
|
|
||||
Total non-qualifying strategies
|
|
(35
|
)
|
|
|
0
|
|
|
|
22
|
|
|
|
0
|
|
|
||||
Total
|
|
$
|
(52
|
)
|
|
|
$
|
(47
|
)
|
|
|
$
|
(4
|
)
|
|
|
$
|
(78
|
)
|
|
|
March 31, 2017
|
December 31, 2016
|
||||||||||||||||||||||||||||
(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
|
|
$
|
6,391
|
|
|
|
$
|
125
|
|
|
|
$
|
(172
|
)
|
|
|
$
|
6,844
|
|
|
|
$
|
247
|
|
|
|
$
|
(308
|
)
|
|
A
|
|
27,619
|
|
|
|
449
|
|
|
|
(862
|
)
|
|
|
36,019
|
|
|
|
900
|
|
|
|
(1,621
|
)
|
|
||||||
BBB
|
|
441
|
|
|
|
6
|
|
|
|
(65
|
)
|
|
|
1,064
|
|
|
|
60
|
|
|
|
(69
|
)
|
|
||||||
Total
|
|
$
|
34,451
|
|
|
|
$
|
580
|
|
|
|
$
|
(1,099
|
)
|
|
|
$
|
43,927
|
|
|
|
$
|
1,207
|
|
|
|
$
|
(1,998
|
)
|
|
March 31, 2017
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
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
|
|
Financial Instruments
|
|
Securities
Collateral
|
|
Cash Collateral Received
|
|
Net Amount
|
||||||||||||||||||||||||||
Derivative
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Derivative
assets subject to a
master netting
agreement or
offsetting
arrangement
|
|
$
|
434
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
434
|
|
|
|
|
$
|
(336
|
)
|
|
|
$
|
0
|
|
|
|
$
|
(97
|
)
|
|
|
|
$
|
1
|
|
|
Derivative
assets not subject
to a master netting
agreement or
offsetting
arrangement
|
|
146
|
|
|
|
|
|
|
|
|
146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
146
|
|
|
|||||||||||
Total derivative
assets
|
|
580
|
|
|
|
|
0
|
|
|
|
|
580
|
|
|
|
|
(336
|
)
|
|
|
0
|
|
|
|
(97
|
)
|
|
|
|
147
|
|
|
|||||||
Securities lending
and similar
arrangements
|
|
1,445
|
|
|
|
|
0
|
|
|
|
|
1,445
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(1,445
|
)
|
|
|
|
0
|
|
|
|||||||
Total
|
|
$
|
2,025
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
2,025
|
|
|
|
|
$
|
(336
|
)
|
|
|
$
|
0
|
|
|
|
$
|
(1,542
|
)
|
|
|
|
$
|
147
|
|
|
December 31, 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
|
|
Financial Instruments
|
|
Securities
Collateral
|
|
Cash Collateral Received
|
|
Net Amount
|
||||||||||||||||||||||||||
Derivative
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Derivative
assets subject to a
master netting
agreement or
offsetting
arrangement
|
|
$
|
1,080
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
1,080
|
|
|
|
|
$
|
(698
|
)
|
|
|
$
|
0
|
|
|
|
$
|
(382
|
)
|
|
|
|
$
|
0
|
|
|
Derivative
assets not subject
to a master netting
agreement or
offsetting
arrangement
|
|
127
|
|
|
|
|
|
|
|
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
127
|
|
|
|||||||||||
Total derivative
assets
|
|
1,207
|
|
|
|
|
0
|
|
|
|
|
1,207
|
|
|
|
|
(698
|
)
|
|
|
0
|
|
|
|
(382
|
)
|
|
|
|
127
|
|
|
|||||||
Securities lending
and similar
arrangements
|
|
513
|
|
|
|
|
0
|
|
|
|
|
513
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(513
|
)
|
|
|
|
0
|
|
|
|||||||
Total
|
|
$
|
1,720
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
1,720
|
|
|
|
|
$
|
(698
|
)
|
|
|
$
|
0
|
|
|
|
$
|
(895
|
)
|
|
|
|
$
|
127
|
|
|
March 31, 2017
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
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
|
|
Financial Instruments
|
|
Securities
Collateral
|
|
Cash Collateral Pledged
|
|
Net Amount
|
||||||||||||||||||||||||||
Derivative
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Derivative
liabilities subject
to a master netting
agreement or
offsetting
arrangement
|
|
$
|
(974
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(974
|
)
|
|
|
|
$
|
336
|
|
|
|
$
|
527
|
|
|
|
$
|
23
|
|
|
|
|
$
|
(88
|
)
|
|
Derivative
liabilities not
subject to a
master netting
agreement or
offsetting
arrangement
|
|
(125
|
)
|
|
|
|
|
|
|
|
(125
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(125
|
)
|
|
|||||||||||
Total derivative
liabilities
|
|
(1,099
|
)
|
|
|
|
0
|
|
|
|
|
(1,099
|
)
|
|
|
|
336
|
|
|
|
527
|
|
|
|
23
|
|
|
|
|
(213
|
)
|
|
|||||||
Securities lending
and similar
arrangements
|
|
(1,482
|
)
|
|
|
|
0
|
|
|
|
|
(1,482
|
)
|
|
|
|
1,445
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
(37
|
)
|
|
|||||||
Total
|
|
$
|
(2,581
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(2,581
|
)
|
|
|
|
$
|
1,781
|
|
|
|
$
|
527
|
|
|
|
$
|
23
|
|
|
|
|
$
|
(250
|
)
|
|
December 31, 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
|
|
Financial Instruments
|
|
Securities
Collateral
|
|
Cash Collateral Pledged
|
|
Net Amount
|
||||||||||||||||||||||||||
Derivative
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Derivative
liabilities subject
to a master netting
agreement or
offsetting
arrangement
|
|
$
|
(1,852
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(1,852
|
)
|
|
|
|
$
|
698
|
|
|
|
$
|
1,130
|
|
|
|
$
|
21
|
|
|
|
|
$
|
(3
|
)
|
|
Derivative
liabilities not
subject to a
master netting
agreement or
offsetting
arrangement
|
|
(146
|
)
|
|
|
|
|
|
|
|
(146
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(146
|
)
|
|
|||||||||||
Total derivative
liabilities
|
|
(1,998
|
)
|
|
|
|
0
|
|
|
|
|
(1,998
|
)
|
|
|
|
698
|
|
|
|
1,130
|
|
|
|
21
|
|
|
|
|
(149
|
)
|
|
|||||||
Securities lending
and similar
arrangements
|
|
(526
|
)
|
|
|
|
0
|
|
|
|
|
(526
|
)
|
|
|
|
513
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
(13
|
)
|
|
|||||||
Total
|
|
$
|
(2,524
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(2,524
|
)
|
|
|
|
$
|
1,211
|
|
|
|
$
|
1,130
|
|
|
|
$
|
21
|
|
|
|
|
$
|
(162
|
)
|
|
5.
|
FAIR VALUE MEASUREMENTS
|
|
March 31, 2017
|
||||||||||||||||||||||
(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
|
|
$
|
28,457
|
|
|
|
|
$
|
863
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
29,320
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,322
|
|
|
|
|
0
|
|
|
|
|
1,322
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
309
|
|
|
|
|
195
|
|
|
|
|
504
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
7,827
|
|
|
|
|
16
|
|
|
|
|
7,843
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,386
|
|
|
|
|
0
|
|
|
|
|
1,386
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
6,521
|
|
|
|
|
24
|
|
|
|
|
6,545
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
30,122
|
|
|
|
|
35
|
|
|
|
|
30,157
|
|
|
||||
Total fixed maturities
|
|
28,457
|
|
|
|
|
48,350
|
|
|
|
|
270
|
|
|
|
|
77,077
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
1,551
|
|
|
|
|
0
|
|
|
|
|
1,551
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
219
|
|
|
|
|
0
|
|
|
|
|
219
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
1,770
|
|
|
|
|
0
|
|
|
|
|
1,770
|
|
|
||||
Equity securities
|
|
1,339
|
|
|
|
|
6
|
|
|
|
|
4
|
|
|
|
|
1,349
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
174
|
|
|
|
|
144
|
|
|
|
|
318
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
235
|
|
|
|
|
0
|
|
|
|
|
235
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
25
|
|
|
|
|
0
|
|
|
|
|
25
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
434
|
|
|
|
|
146
|
|
|
|
|
580
|
|
|
||||
Other investments
|
|
141
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
141
|
|
|
||||
Cash and cash equivalents
|
|
4,205
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4,205
|
|
|
||||
Total assets
|
|
$
|
34,142
|
|
|
|
|
$
|
50,560
|
|
|
|
|
$
|
420
|
|
|
|
|
$
|
85,122
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
99
|
|
|
|
|
$
|
125
|
|
|
|
|
$
|
224
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
853
|
|
|
|
|
0
|
|
|
|
|
853
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
22
|
|
|
|
|
0
|
|
|
|
|
22
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
974
|
|
|
|
|
$
|
125
|
|
|
|
|
$
|
1,099
|
|
|
|
December 31, 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
|
|
$
|
25,387
|
|
|
|
|
$
|
827
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,214
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,295
|
|
|
|
|
0
|
|
|
|
|
1,295
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
1,139
|
|
|
|
|
198
|
|
|
|
|
1,337
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
7,667
|
|
|
|
|
16
|
|
|
|
|
7,683
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,469
|
|
|
|
|
0
|
|
|
|
|
1,469
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
6,038
|
|
|
|
|
25
|
|
|
|
|
6,063
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
29,699
|
|
|
|
|
0
|
|
|
|
|
29,699
|
|
|
||||
Total fixed maturities
|
|
25,387
|
|
|
|
|
48,134
|
|
|
|
|
239
|
|
|
|
|
73,760
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
1,420
|
|
|
|
|
0
|
|
|
|
|
1,420
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
213
|
|
|
|
|
0
|
|
|
|
|
213
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
1,633
|
|
|
|
|
0
|
|
|
|
|
1,633
|
|
|
||||
Equity securities
|
|
1,300
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|
|
1,309
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
365
|
|
|
|
|
125
|
|
|
|
|
490
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
672
|
|
|
|
|
0
|
|
|
|
|
672
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
43
|
|
|
|
|
0
|
|
|
|
|
43
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
1,080
|
|
|
|
|
127
|
|
|
|
|
1,207
|
|
|
||||
Other investments
|
|
276
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
276
|
|
|
||||
Cash and cash equivalents
|
|
4,859
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4,859
|
|
|
||||
Total assets
|
|
$
|
31,822
|
|
|
|
|
$
|
50,853
|
|
|
|
|
$
|
369
|
|
|
|
|
$
|
83,044
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
84
|
|
|
|
|
$
|
146
|
|
|
|
|
$
|
230
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
1,717
|
|
|
|
|
0
|
|
|
|
|
1,717
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
51
|
|
|
|
|
0
|
|
|
|
|
51
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
1,852
|
|
|
|
|
$
|
146
|
|
|
|
|
$
|
1,998
|
|
|
|
March 31, 2017
|
|||||||||||||||||||||||||||
(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
|
|
$
|
21,493
|
|
|
|
$
|
26,607
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,607
|
|
|
Municipalities
|
|
363
|
|
|
|
0
|
|
|
|
|
467
|
|
|
|
|
0
|
|
|
|
|
467
|
|
|
|||||
Mortgage and asset-backed
securities |
|
30
|
|
|
|
0
|
|
|
|
|
10
|
|
|
|
|
22
|
|
|
|
|
32
|
|
|
|||||
Public utilities
|
|
3,324
|
|
|
|
0
|
|
|
|
|
3,693
|
|
|
|
|
0
|
|
|
|
|
3,693
|
|
|
|||||
Sovereign and
supranational |
|
2,702
|
|
|
|
0
|
|
|
|
|
3,009
|
|
|
|
|
0
|
|
|
|
|
3,009
|
|
|
|||||
Banks/financial institutions
|
|
3,650
|
|
|
|
0
|
|
|
|
|
3,830
|
|
|
|
|
0
|
|
|
|
|
3,830
|
|
|
|||||
Other corporate
|
|
2,839
|
|
|
|
0
|
|
|
|
|
3,285
|
|
|
|
|
0
|
|
|
|
|
3,285
|
|
|
|||||
Other investments
(1)
|
|
1,309
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
1,288
|
|
|
|
|
1,288
|
|
|
|||||
Total assets
|
|
$
|
35,710
|
|
|
|
$
|
26,607
|
|
|
|
|
$
|
14,294
|
|
|
|
|
$
|
1,310
|
|
|
|
|
$
|
42,211
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
6,945
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
6,824
|
|
|
|
|
$
|
6,824
|
|
|
Notes payable
(excluding capital leases) |
|
5,230
|
|
|
|
0
|
|
|
|
|
5,226
|
|
|
|
|
266
|
|
|
|
|
5,492
|
|
|
|||||
Total liabilities
|
|
$
|
12,175
|
|
|
|
$
|
0
|
|
|
|
|
$
|
5,226
|
|
|
|
|
$
|
7,090
|
|
|
|
|
$
|
12,316
|
|
|
|
December 31, 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
|
|
$
|
20,702
|
|
|
|
$
|
26,040
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,040
|
|
|
Municipalities
|
|
350
|
|
|
|
0
|
|
|
|
|
457
|
|
|
|
|
0
|
|
|
|
|
457
|
|
|
|||||
Mortgage and asset-backed
securities |
|
30
|
|
|
|
0
|
|
|
|
|
10
|
|
|
|
|
22
|
|
|
|
|
32
|
|
|
|||||
Public utilities
|
|
3,201
|
|
|
|
0
|
|
|
|
|
3,536
|
|
|
|
|
0
|
|
|
|
|
3,536
|
|
|
|||||
Sovereign and
supranational |
|
2,602
|
|
|
|
0
|
|
|
|
|
2,877
|
|
|
|
|
0
|
|
|
|
|
2,877
|
|
|
|||||
Banks/financial institutions
|
|
3,731
|
|
|
|
0
|
|
|
|
|
3,900
|
|
|
|
|
0
|
|
|
|
|
3,900
|
|
|
|||||
Other corporate
|
|
2,734
|
|
|
|
0
|
|
|
|
|
3,179
|
|
|
|
|
0
|
|
|
|
|
3,179
|
|
|
|||||
Other investments
|
|
1,174
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
1,142
|
|
|
|
|
1,142
|
|
|
|||||
Total assets
|
|
$
|
34,524
|
|
|
|
$
|
26,040
|
|
|
|
|
$
|
13,959
|
|
|
|
|
$
|
1,164
|
|
|
|
|
$
|
41,163
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
6,659
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
6,540
|
|
|
|
|
$
|
6,540
|
|
|
Notes payable
(excluding capital leases) |
|
5,339
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
5,530
|
|
|
|
|
5,530
|
|
|
|||||
Total liabilities
|
|
$
|
11,998
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
12,070
|
|
|
|
|
$
|
12,070
|
|
|
|
|
March 31, 2017
|
||||||||||||||||||||||
(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
|
|
|
$
|
28,457
|
|
|
|
|
$
|
863
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
29,320
|
|
|
Total government and agencies
|
|
|
28,457
|
|
|
|
|
863
|
|
|
|
|
0
|
|
|
|
|
29,320
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,322
|
|
|
|
|
0
|
|
|
|
|
1,322
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,322
|
|
|
|
|
0
|
|
|
|
|
1,322
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
309
|
|
|
|
|
0
|
|
|
|
|
309
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
195
|
|
|
|
|
195
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
309
|
|
|
|
|
195
|
|
|
|
|
504
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7,827
|
|
|
|
|
0
|
|
|
|
|
7,827
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
16
|
|
|
|
|
16
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
7,827
|
|
|
|
|
16
|
|
|
|
|
7,843
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,386
|
|
|
|
|
0
|
|
|
|
|
1,386
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,386
|
|
|
|
|
0
|
|
|
|
|
1,386
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
6,521
|
|
|
|
|
0
|
|
|
|
|
6,521
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
24
|
|
|
|
|
24
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
6,521
|
|
|
|
|
24
|
|
|
|
|
6,545
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
30,122
|
|
|
|
|
0
|
|
|
|
|
30,122
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
35
|
|
|
|
|
35
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
30,122
|
|
|
|
|
35
|
|
|
|
|
30,157
|
|
|
||||
Total fixed maturities
|
|
|
28,457
|
|
|
|
|
48,350
|
|
|
|
|
270
|
|
|
|
|
77,077
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,551
|
|
|
|
|
0
|
|
|
|
|
1,551
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
1,551
|
|
|
|
|
0
|
|
|
|
|
1,551
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
219
|
|
|
|
|
0
|
|
|
|
|
219
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
219
|
|
|
|
|
0
|
|
|
|
|
219
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
1,770
|
|
|
|
|
0
|
|
|
|
|
1,770
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
1,339
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
1,345
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4
|
|
|
|
|
4
|
|
|
||||
Total equity securities
|
|
|
1,339
|
|
|
|
|
6
|
|
|
|
|
4
|
|
|
|
|
1,349
|
|
|
||||
Total securities available for sale
|
|
|
$
|
29,796
|
|
|
|
|
$
|
50,126
|
|
|
|
|
$
|
274
|
|
|
|
|
$
|
80,196
|
|
|
|
|
March 31, 2017
|
||||||||||||||||||||||
(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
|
|
|
$
|
26,607
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,607
|
|
|
Total government and agencies
|
|
|
26,607
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
26,607
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
467
|
|
|
|
|
0
|
|
|
|
|
467
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
467
|
|
|
|
|
0
|
|
|
|
|
467
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|
|
10
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
22
|
|
|
|
|
22
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
10
|
|
|
|
|
22
|
|
|
|
|
32
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,693
|
|
|
|
|
0
|
|
|
|
|
3,693
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
3,693
|
|
|
|
|
0
|
|
|
|
|
3,693
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,009
|
|
|
|
|
0
|
|
|
|
|
3,009
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
3,009
|
|
|
|
|
0
|
|
|
|
|
3,009
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,830
|
|
|
|
|
0
|
|
|
|
|
3,830
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
3,830
|
|
|
|
|
0
|
|
|
|
|
3,830
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,285
|
|
|
|
|
0
|
|
|
|
|
3,285
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
3,285
|
|
|
|
|
0
|
|
|
|
|
3,285
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
26,607
|
|
|
|
|
$
|
14,294
|
|
|
|
|
$
|
22
|
|
|
|
|
$
|
40,923
|
|
|
|
|
December 31, 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
|
|
|
$
|
25,387
|
|
|
|
|
$
|
827
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,214
|
|
|
Total government and agencies
|
|
|
25,387
|
|
|
|
|
827
|
|
|
|
|
0
|
|
|
|
|
26,214
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,295
|
|
|
|
|
0
|
|
|
|
|
1,295
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,295
|
|
|
|
|
0
|
|
|
|
|
1,295
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,139
|
|
|
|
|
0
|
|
|
|
|
1,139
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
198
|
|
|
|
|
198
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
1,139
|
|
|
|
|
198
|
|
|
|
|
1,337
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7,667
|
|
|
|
|
0
|
|
|
|
|
7,667
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
16
|
|
|
|
|
16
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
7,667
|
|
|
|
|
16
|
|
|
|
|
7,683
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,469
|
|
|
|
|
0
|
|
|
|
|
1,469
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,469
|
|
|
|
|
0
|
|
|
|
|
1,469
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
6,038
|
|
|
|
|
0
|
|
|
|
|
6,038
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
25
|
|
|
|
|
25
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
6,038
|
|
|
|
|
25
|
|
|
|
|
6,063
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
29,699
|
|
|
|
|
0
|
|
|
|
|
29,699
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
29,699
|
|
|
|
|
0
|
|
|
|
|
29,699
|
|
|
||||
Total fixed maturities
|
|
|
25,387
|
|
|
|
|
48,134
|
|
|
|
|
239
|
|
|
|
|
73,760
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,420
|
|
|
|
|
0
|
|
|
|
|
1,420
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
1,420
|
|
|
|
|
0
|
|
|
|
|
1,420
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
213
|
|
|
|
|
0
|
|
|
|
|
213
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
213
|
|
|
|
|
0
|
|
|
|
|
213
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
1,633
|
|
|
|
|
0
|
|
|
|
|
1,633
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
1,300
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
1,306
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
||||
Total equity securities
|
|
|
1,300
|
|
|
|
|
6
|
|
|
|
|
3
|
|
|
|
|
1,309
|
|
|
||||
Total securities available for sale
|
|
|
$
|
26,687
|
|
|
|
|
$
|
49,773
|
|
|
|
|
$
|
242
|
|
|
|
|
$
|
76,702
|
|
|
|
|
December 31, 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
|
|
|
$
|
26,040
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,040
|
|
|
Total government and agencies
|
|
|
26,040
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
26,040
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
457
|
|
|
|
|
0
|
|
|
|
|
457
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
457
|
|
|
|
|
0
|
|
|
|
|
457
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|
|
10
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
22
|
|
|
|
|
22
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
10
|
|
|
|
|
22
|
|
|
|
|
32
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,536
|
|
|
|
|
0
|
|
|
|
|
3,536
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
3,536
|
|
|
|
|
0
|
|
|
|
|
3,536
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,877
|
|
|
|
|
0
|
|
|
|
|
2,877
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
2,877
|
|
|
|
|
0
|
|
|
|
|
2,877
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,900
|
|
|
|
|
0
|
|
|
|
|
3,900
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
3,900
|
|
|
|
|
0
|
|
|
|
|
3,900
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,179
|
|
|
|
|
0
|
|
|
|
|
3,179
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
3,179
|
|
|
|
|
0
|
|
|
|
|
3,179
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
26,040
|
|
|
|
|
$
|
13,959
|
|
|
|
|
$
|
22
|
|
|
|
|
$
|
40,021
|
|
|
Three Months Ended
March 31, 2017 |
||||||||||||||||||||||||||||||||
|
Fixed Maturities
|
|
Equity
Securities |
|
Derivatives
(1)
|
|
|
|
||||||||||||||||||||||||
(In millions)
|
Mortgage-
and Asset- Backed Securities |
|
Public
Utilities |
|
Banks/
Financial Institutions |
|
Other
Corporate |
|
|
|
Foreign
Currency Swaps |
|
Credit
Default Swaps |
|
Total
|
|
||||||||||||||||
Balance, beginning of period
|
$
|
198
|
|
|
$
|
16
|
|
|
$
|
25
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
(21
|
)
|
|
$
|
2
|
|
|
$
|
223
|
|
|
Realized investment gains (losses) included
in earnings
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
38
|
|
|
0
|
|
|
38
|
|
|
||||||||
Unrealized gains (losses) included in other
comprehensive income (loss)
|
6
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
2
|
|
|
0
|
|
|
7
|
|
|
||||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchases
|
0
|
|
|
0
|
|
|
0
|
|
|
35
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
37
|
|
|
||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Sales
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
||||||||
Settlements
|
(9
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(9
|
)
|
|
||||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Balance, end of period
|
$
|
195
|
|
|
$
|
16
|
|
|
$
|
24
|
|
|
$
|
35
|
|
|
$
|
4
|
|
|
$
|
19
|
|
|
$
|
2
|
|
|
$
|
295
|
|
|
Changes in unrealized gains (losses) relating
to Level 3 assets and liabilities still held at the end of the period included in realized investment gains (losses) |
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
38
|
|
|
$
|
0
|
|
|
$
|
38
|
|
|
|
|
Three Months Ended
March 31, 2016 |
||||||||||||||||||||||||||||
|
Fixed Maturities
|
|
Equity
Securities |
|
Derivatives
(1)
|
|
|
|
||||||||||||||||||||
(In millions)
|
Mortgage-
and Asset- Backed Securities |
|
Public
Utilities |
|
Banks/
Financial Institutions |
|
|
|
Foreign
Currency Swaps |
|
Credit
Default Swaps |
|
Total
|
|
||||||||||||||
Balance, beginning of period
|
$
|
220
|
|
|
$
|
0
|
|
|
$
|
26
|
|
|
$
|
3
|
|
|
$
|
(192
|
)
|
|
$
|
1
|
|
|
$
|
58
|
|
|
Realized investment gains (losses) included
in earnings
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
125
|
|
|
1
|
|
|
126
|
|
|
|||||||
Unrealized gains (losses) included in other
comprehensive income (loss)
|
21
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4
|
|
|
0
|
|
|
25
|
|
|
|||||||
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
|
(4
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(4
|
)
|
|
|||||||
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
|
$
|
237
|
|
|
$
|
0
|
|
|
$
|
26
|
|
|
$
|
3
|
|
|
$
|
(63
|
)
|
|
$
|
2
|
|
|
$
|
205
|
|
|
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
|
|
|
$
|
125
|
|
|
$
|
1
|
|
|
$
|
126
|
|
|
March 31, 2017
|
|||||||||||||
(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
|
|
|
$
|
195
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
Public utilities
|
|
|
16
|
|
|
|
Discounted cash flow
|
|
Historical volatility
|
|
N/A
|
(d)
|
|
Banks/financial institutions
|
|
|
24
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
|
Other corporate
|
|
|
35
|
|
|
|
Discounted cash flow
|
|
Historical volatility
|
|
N/A
|
(e)
|
|
Equity securities
|
|
|
4
|
|
|
|
Net asset value
|
|
Offered quotes
|
|
$1 - $728 ($8)
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
25
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.18% - 2.45%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.20% - .73%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
11 - 147 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.34%
|
(c)
|
||
|
|
|
50
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.18% - 2.45%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.20% - .73%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
10 - 79 bps
|
|
||
|
|
|
69
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.18% - 2.45%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.20% - .73%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.34%
|
(c)
|
||
Credit default swaps
|
|
|
2
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
61.55% - 66.55%
|
(e)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
48 bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
36.69%
|
|
||
Total assets
|
|
|
$
|
420
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
$
|
106
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.18% - 2.45%
|
(a)
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.20% - .73%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
11 - 147 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.34%
|
(c)
|
||
|
|
|
13
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.18% - 2.45%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.20% - .73%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
15 - 168 bps
|
|
||
|
|
|
6
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.18% - 2.45%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.20% - .73%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.34%
|
(c)
|
||
Total liabilities
|
|
|
$
|
125
|
|
|
|
|
|
|
|
|
|
December 31, 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
|
|
|
$
|
198
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
Public utilities
|
|
|
16
|
|
|
|
Discounted cash flow
|
|
Historical volatility
|
|
N/A
|
(d)
|
|
Banks/financial institutions
|
|
|
25
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
|
Equity securities
|
|
|
3
|
|
|
|
Net asset value
|
|
Offered quotes
|
|
$1-$701 ($8)
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
16
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.34% - 2.59%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.22% - .80%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
17 - 172 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.47%
|
(c)
|
||
|
|
|
29
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.34% - 2.59%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.22% - .80%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
16 - 88 bps
|
|
||
|
|
|
80
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.34% - 2.59%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.22% - .80%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.47%
|
(c)
|
||
Credit default swaps
|
|
|
2
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
52.18% - 56.07%
|
(e)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
54 bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
36.69%
|
|
||
Total assets
|
|
|
$
|
369
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
$
|
113
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.34% - 2.59%
|
(a)
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.22% - .80%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
17 - 172 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.47%
|
(c)
|
||
|
|
|
23
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.34% - 2.59%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.22% - .80%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
24 - 216 bps
|
|
||
|
|
|
10
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.34% - 2.59%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.22% - .80%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.47%
|
(c)
|
||
Total liabilities
|
|
|
$
|
146
|
|
|
|
|
|
|
|
|
|
6.
|
POLICY LIABILITIES
|
(In millions)
|
2017
|
|
2016
|
||||||||
Unpaid supplemental health claims, beginning of year
|
|
$
|
3,707
|
|
|
|
|
$
|
3,548
|
|
|
Less reinsurance recoverables
|
|
27
|
|
|
|
|
26
|
|
|
||
Net balance, beginning of year
|
|
3,680
|
|
|
|
|
3,522
|
|
|
||
Add claims incurred during the year related to:
|
|
|
|
|
|
|
|
||||
Current year
|
|
1,737
|
|
|
|
|
1,705
|
|
|
||
Prior years
|
|
(111
|
)
|
|
|
|
(142
|
)
|
|
||
Total incurred
|
|
1,626
|
|
|
|
|
1,563
|
|
|
||
Less claims paid during the year on claims incurred during:
|
|
|
|
|
|
|
|
||||
Current year
|
|
505
|
|
|
|
|
493
|
|
|
||
Prior years
|
|
1,055
|
|
|
|
|
1,046
|
|
|
||
Total paid
|
|
1,560
|
|
|
|
|
1,539
|
|
|
||
Effect of foreign exchange rate changes on unpaid claims
|
|
80
|
|
|
|
|
136
|
|
|
||
Net balance, end of period
|
|
3,826
|
|
|
|
|
3,682
|
|
|
||
Add reinsurance recoverables
|
|
29
|
|
|
|
|
28
|
|
|
||
Unpaid supplemental health claims, end of period
|
|
3,855
|
|
|
|
|
3,710
|
|
|
||
Unpaid life claims, end of period
|
|
375
|
|
|
|
|
280
|
|
|
||
Total liability for unpaid policy claims
|
|
$
|
4,230
|
|
|
|
|
$
|
3,990
|
|
|
7.
|
REINSURANCE
|
|
Three Months Ended
March 31, |
||||||||||
(In millions)
|
2017
|
|
2016
|
||||||||
Direct premium income
|
|
$
|
4,724
|
|
|
|
|
$
|
4,690
|
|
|
Ceded to other companies:
|
|
|
|
|
|
|
|
||||
Ceded Aflac Japan closed blocks
|
|
(130
|
)
|
|
|
|
(134
|
)
|
|
||
Other
|
|
(12
|
)
|
|
|
|
(12
|
)
|
|
||
Assumed from other companies:
|
|
|
|
|
|
|
|
||||
Retrocession activities
|
|
54
|
|
|
|
|
56
|
|
|
||
Other
|
|
2
|
|
|
|
|
2
|
|
|
||
Net premium income
|
|
$
|
4,638
|
|
|
|
|
$
|
4,602
|
|
|
|
|
|
|
|
|
|
|
||||
Direct benefits and claims
|
|
$
|
3,129
|
|
|
|
|
$
|
3,103
|
|
|
Ceded benefits and change in reserves for future benefits:
|
|
|
|
|
|
|
|
||||
Ceded Aflac Japan closed blocks
|
|
(122
|
)
|
|
|
|
(121
|
)
|
|
||
Eliminations
|
|
13
|
|
|
|
|
14
|
|
|
||
Other
|
|
(11
|
)
|
|
|
|
(10
|
)
|
|
||
Assumed from other companies:
|
|
|
|
|
|
|
|
||||
Retrocession activities
|
|
54
|
|
|
|
|
53
|
|
|
||
Eliminations
|
|
(13
|
)
|
|
|
|
(14
|
)
|
|
||
Other
|
|
2
|
|
|
|
|
0
|
|
|
||
Benefits and claims, net
|
|
$
|
3,052
|
|
|
|
|
$
|
3,025
|
|
|
8.
|
NOTES PAYABLE
|
(In millions)
|
March 31, 2017
|
|
December 31, 2016
|
||||||||
2.65% senior notes paid February 2017
|
|
$
|
0
|
|
|
|
|
$
|
649
|
|
|
2.40% senior notes due March 2020
|
|
545
|
|
|
|
|
547
|
|
|
||
4.00% senior notes due February 2022
|
|
346
|
|
|
|
|
348
|
|
|
||
3.625% senior notes due June 2023
|
|
693
|
|
|
|
|
696
|
|
|
||
3.625% senior notes due November 2024
|
|
742
|
|
|
|
|
745
|
|
|
||
3.25% senior notes due March 2025
|
|
444
|
|
|
|
|
445
|
|
|
||
2.875% senior notes due October 2026
|
|
298
|
|
|
|
|
298
|
|
|
||
6.90% senior notes due December 2039
|
|
221
|
|
|
|
|
220
|
|
|
||
6.45% senior notes due August 2040
|
|
255
|
|
|
|
|
254
|
|
|
||
4.00% senior notes due October 2046
|
|
394
|
|
|
|
|
394
|
|
|
||
5.50% subordinated debentures due September 2052
|
|
495
|
|
|
|
|
486
|
|
|
||
Yen-denominated senior notes:
|
|
|
|
|
|
|
|
||||
.932% senior notes due January 2027 (principal amount 60.0 billion yen)
|
|
531
|
|
|
|
|
0
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
|
|
|
||||
Variable interest rate loan due September 2021 (.31% in 2017 and 2016, principal amount 5.0 billion yen)
|
|
44
|
|
|
|
|
43
|
|
|
||
Variable interest rate loan due September 2023 (.46% in 2017 and 2016, principal amount 25.0 billion yen)
|
|
222
|
|
|
|
|
214
|
|
|
||
Capitalized lease obligations payable through 2024
|
|
20
|
|
|
|
|
21
|
|
|
||
Total notes payable
|
|
$
|
5,250
|
|
|
|
|
$
|
5,360
|
|
|
9.
|
SHAREHOLDERS’ EQUITY
|
(In thousands of shares)
|
2017
|
|
2016
|
||
Common stock - issued:
|
|
|
|
||
Balance, beginning of period
|
671,249
|
|
|
669,723
|
|
Exercise of stock options and issuance of restricted shares
|
434
|
|
|
678
|
|
Balance, end of period
|
671,683
|
|
|
670,401
|
|
Treasury stock:
|
|
|
|
||
Balance, beginning of period
|
265,439
|
|
|
245,343
|
|
Purchases of treasury stock:
|
|
|
|
||
Open market
|
8,493
|
|
|
10,152
|
|
Other
|
144
|
|
|
189
|
|
Dispositions of treasury stock:
|
|
|
|
||
Shares issued to AFL Stock Plan
|
(247
|
)
|
|
(311
|
)
|
Exercise of stock options
|
(128
|
)
|
|
(64
|
)
|
Other
|
(20
|
)
|
|
(111
|
)
|
Balance, end of period
|
273,681
|
|
|
255,198
|
|
Shares outstanding, end of period
|
398,002
|
|
|
415,203
|
|
|
Three Months Ended
March 31, |
|
|||||||
(In thousands)
|
2017
|
|
2016
|
||||||
Anti-dilutive share-based awards
|
|
321
|
|
|
|
|
2,682
|
|
|
Three Months Ended
March 31, 2017 |
|||||||||||||||||||||||||||||
(In millions)
|
Unrealized Foreign
Currency Translation Gains (Losses) |
|
Unrealized
Gains (Losses) on Investment Securities |
|
Unrealized
Gains (Losses) on Derivatives |
|
Pension Liability Adjustment
|
|
Total
|
||||||||||||||||||||
Balance, beginning of period
|
|
$
|
(1,983
|
)
|
|
|
|
$
|
4,805
|
|
|
|
|
$
|
(24
|
)
|
|
|
|
$
|
(168
|
)
|
|
|
|
$
|
2,630
|
|
|
Other comprehensive
income (loss) before reclassification |
|
333
|
|
|
|
|
(341
|
)
|
|
|
|
2
|
|
|
|
|
(4
|
)
|
|
|
|
(10
|
)
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|
|
2
|
|
|
|
|
12
|
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
333
|
|
|
|
|
(331
|
)
|
|
|
|
2
|
|
|
|
|
(2
|
)
|
|
|
|
2
|
|
|
|||||
Balance, end of period
|
|
$
|
(1,650
|
)
|
|
|
|
$
|
4,474
|
|
|
|
|
$
|
(22
|
)
|
|
|
|
$
|
(170
|
)
|
|
|
|
$
|
2,632
|
|
|
|
|
Three Months Ended
March 31, 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 |
|
612
|
|
|
|
|
1,748
|
|
|
|
|
2
|
|
|
|
|
(1
|
)
|
|
|
|
2,361
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
(50
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(50
|
)
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
612
|
|
|
|
|
1,698
|
|
|
|
|
2
|
|
|
|
|
(1
|
)
|
|
|
|
2,311
|
|
|
|||||
Balance, end of period
|
|
$
|
(1,584
|
)
|
|
|
|
$
|
4,684
|
|
|
|
|
$
|
(24
|
)
|
|
|
|
$
|
(140
|
)
|
|
|
|
$
|
2,936
|
|
|
(In millions)
|
Three Months Ended
March 31, 2017 |
|
||||
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 |
|
$
|
(6
|
)
|
|
Sales and redemptions
|
|
|
(10
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
(16
|
)
|
|
Total before tax
|
|
|
|
6
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(10
|
)
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(3
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
0
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
1
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(2
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(12
|
)
|
|
Net of tax
|
|
|
(In millions)
|
Three Months Ended
March 31, 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 |
|
$
|
91
|
|
|
Sales and redemptions
|
|
|
(14
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
77
|
|
|
Total before tax
|
|
|
|
(27
|
)
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
50
|
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(3
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
3
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
0
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
0
|
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
50
|
|
|
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
|
|
6,245
|
|
|
|
|
4.9
|
|
|
|
$
|
119
|
|
|
|
|
$
|
53.38
|
|
|
Exercisable
|
|
4,504
|
|
|
|
|
3.4
|
|
|
|
102
|
|
|
|
|
49.72
|
|
|
(In thousands of shares)
|
|
Shares
|
|
Weighted-Average
Grant-Date Fair Value
Per Share
|
|||||
Restricted stock at December 31, 2016
|
|
1,868
|
|
|
|
$
|
61.76
|
|
|
Granted in 2017
|
|
489
|
|
|
|
71.97
|
|
|
|
Canceled in 2017
|
|
(4
|
)
|
|
|
65.05
|
|
|
|
Vested in 2017
|
|
(437
|
)
|
|
|
62.23
|
|
|
|
Restricted stock at March 31, 2017
|
|
1,916
|
|
|
|
$
|
64.12
|
|
|
11.
|
BENEFIT PLANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||||||||||
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||
(In millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||||||
Components of net periodic
benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
|
|
$
|
5
|
|
|
|
|
$
|
4
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Interest cost
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
8
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Expected return on plan
assets |
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(6
|
)
|
|
|
|
(6
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Amortization of net actuarial
loss |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Amortization of prior service
cost (credit) |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(3
|
)
|
|
||||||
Net periodic (benefit) cost
|
|
|
$
|
5
|
|
|
|
|
$
|
5
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
11
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(3
|
)
|
|
12.
|
COMMITMENTS AND CONTINGENT LIABILITIES
|
•
|
difficult conditions in global capital markets and the economy
|
•
|
exposure to significant interest rate risk
|
•
|
concentration of business in Japan
|
•
|
foreign currency fluctuations in the yen/dollar exchange rate
|
•
|
failure to execute or implement the conversion of the Japan branch to a legal subsidiary
|
•
|
limited availability of acceptable yen-denominated investments
|
•
|
deviations in actual experience from pricing and reserving assumptions
|
•
|
ability to continue to develop and implement improvements in information technology systems
|
•
|
governmental actions for the purpose of stabilizing the financial markets
|
•
|
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
|
•
|
ongoing changes in our industry
|
•
|
failure to comply with restrictions on patient privacy and information security
|
•
|
extensive regulation and changes in law or regulation by governmental authorities
|
•
|
defaults and credit downgrades of investments
|
•
|
ability to attract and retain qualified sales associates and employees
|
•
|
decline in creditworthiness of other financial institutions
|
•
|
subsidiaries' ability to pay dividends to Aflac Incorporated
|
•
|
decreases in our financial strength or debt ratings
|
•
|
inherent limitations to risk management policies and procedures
|
•
|
concentration of our investments in any particular single-issuer or sector
|
•
|
differing judgments applied to investment valuations
|
•
|
ability to effectively manage key executive succession
|
•
|
significant valuation judgments in determination of amount of impairments taken on our investments
|
•
|
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
|
•
|
loss of consumer trust resulting from events external to our operations
|
•
|
increased expenses and reduced profitability resulting from changes in assumptions for pension and other postretirement benefit plans
|
•
|
level and outcome of litigation
|
•
|
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
|
•
|
Capital Resources and Liquidity, including discussion of availability of capital and the sources and uses of cash
|
|
In Millions
|
|
Per Diluted Share
|
|
|||||||||||||
|
Three Months Ended March 31,
|
|
|||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
||||||||
Net earnings
|
$
|
592
|
|
|
$
|
731
|
|
|
$
|
1.47
|
|
|
$
|
1.74
|
|
|
|
Items impacting net earnings:
|
|
|
|
|
|
|
|
|
|
||||||||
Realized investment (gains) losses:
|
|
|
|
|
|
|
|
|
|
||||||||
Securities transactions and impairments
|
17
|
|
|
(77
|
)
|
|
.04
|
|
|
(.18
|
)
|
|
|
||||
Certain derivative and foreign currency
(gains) losses (1),(2),(3) |
92
|
|
|
37
|
|
|
.23
|
|
|
.09
|
|
|
|
||||
Other and non-recurring (income) loss
(3)
|
20
|
|
|
0
|
|
|
.04
|
|
|
.00
|
|
|
|
||||
Income tax (benefit) expense on items excluded
from operating earnings (1),(4) |
(45
|
)
|
|
14
|
|
|
(.11
|
)
|
|
.03
|
|
|
|
||||
Operating earnings
|
676
|
|
|
705
|
|
|
1.67
|
|
|
1.68
|
|
|
|
||||
Current period foreign currency impact
(5)
|
(5
|
)
|
|
N/A
|
|
|
(.01
|
)
|
|
N/A
|
|
|
|
||||
Operating earnings excluding current period
foreign currency impact (6) |
$
|
671
|
|
|
$
|
705
|
|
|
$
|
1.66
|
|
|
$
|
1.68
|
|
|
|
|
Three Months Ended
March 31, |
|
||||||
(In millions)
|
2017
|
|
2016
|
|
||||
Net premium income
|
$
|
3,194
|
|
|
$
|
3,179
|
|
|
Net investment income:
|
|
|
|
|
||||
Yen-denominated investment income
|
323
|
|
|
322
|
|
|
||
U.S. dollar-denominated investment income
|
286
|
|
|
300
|
|
|
||
Net investment income
|
609
|
|
|
622
|
|
|
||
Hedge costs related to foreign currency denominated investments
|
52
|
|
|
32
|
|
|
||
Net investment income, less amortized hedge costs
|
557
|
|
|
590
|
|
|
||
Other income (loss)
|
10
|
|
|
8
|
|
|
||
Total operating revenues
|
3,761
|
|
|
3,777
|
|
|
||
Benefits and claims, net
|
2,288
|
|
|
2,283
|
|
|
||
Operating expenses:
|
|
|
|
|
||||
Amortization of deferred policy acquisition costs
|
154
|
|
|
151
|
|
|
||
Insurance commissions
|
184
|
|
|
187
|
|
|
||
Insurance and other expenses
|
366
|
|
|
350
|
|
|
||
Total operating expenses
|
704
|
|
|
688
|
|
|
||
Total benefits and expenses
|
2,992
|
|
|
2,971
|
|
|
||
Pretax operating earnings
(1)
|
$
|
769
|
|
|
$
|
806
|
|
|
Weighted-average yen/dollar exchange rate
|
113.56
|
|
|
115.35
|
|
|
|
In Dollars
|
|
In Yen
|
||||||||
Percentage change over
previous period:
|
Three Months Ended
March 31, |
|
Three Months Ended
March 31, |
||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
Net premium income
|
.5
|
%
|
|
3.3
|
%
|
|
(1.1
|
)%
|
|
.1
|
%
|
Net investment income, less amortized hedge costs
|
(5.4
|
)
|
|
(1.7
|
)
|
|
(6.3
|
)
|
|
(5.1
|
)
|
Total operating revenues
|
(.4
|
)
|
|
2.5
|
|
|
(1.9
|
)
|
|
(.7
|
)
|
Pretax operating earnings
(1)
|
(4.7
|
)
|
|
.1
|
|
|
(5.6
|
)
|
|
(3.4
|
)
|
|
Including Foreign
Currency Changes |
|
|
|
Excluding Foreign
Currency Changes
(2)
|
|
||||||||||
|
Three Months
|
|
|
Three Months
|
||||||||||||
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
||
Net investment income, less amortized hedge costs
|
(6.3
|
)
|
%
|
|
(5.1
|
)
|
%
|
|
|
(5.5
|
)
|
%
|
|
(3.5
|
)
|
%
|
Total operating revenues
|
(1.9
|
)
|
|
|
(.7
|
)
|
|
|
|
(1.8
|
)
|
|
|
(.5
|
)
|
|
Pretax operating earnings
(1)
|
(5.6
|
)
|
|
|
(3.4
|
)
|
|
|
|
(5.1
|
)
|
|
|
(2.3
|
)
|
|
|
Three Months Ended
March 31, |
|
|
|||
Ratios to total revenues:
|
2017
|
|
|
2016
|
|
|
Benefits and claims, net
|
60.8
|
%
|
|
60.5
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
Amortization of deferred policy acquisition costs
|
4.1
|
|
|
4.0
|
|
|
Insurance commissions
|
4.9
|
|
|
4.9
|
|
|
Insurance and other expenses
|
9.7
|
|
|
9.3
|
|
|
Total operating expenses
|
18.7
|
|
|
18.2
|
|
|
Pretax operating earnings
(1)
|
20.5
|
|
|
21.3
|
|
|
|
In Dollars
|
|
In Yen
|
|
||||||||||
|
Three Months
|
|
Three Months
|
|
||||||||||
(In millions of dollars and billions of yen)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||
New annualized premium sales
|
$
|
194
|
|
|
$
|
271
|
|
|
22.1
|
|
|
31.2
|
|
|
Increase (decrease) over prior period
|
(28.3
|
)%
|
|
19.7
|
%
|
|
(29.2
|
)%
|
|
15.5
|
%
|
|
|
|
|
Three Months Ended
March 31, |
|
||||||
(In millions)
|
|
|
2017
|
|
2016
|
|
||||
Yen-denominated:
|
|
|
|
|
|
|
||||
Fixed maturities:
|
|
|
|
|
|
|
||||
Japan government and agencies
|
|
|
$
|
2,541
|
|
|
$
|
1,167
|
|
|
Other fixed maturities
|
|
|
538
|
|
|
60
|
|
|
||
Equities
(1),(2)
|
|
|
149
|
|
|
143
|
|
|
||
Total yen-denominated
|
|
|
$
|
3,228
|
|
|
$
|
1,370
|
|
|
|
|
|
|
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
|
||||
Fixed maturities:
|
|
|
|
|
|
|
||||
Other fixed maturities
|
|
|
$
|
58
|
|
|
$
|
437
|
|
|
Infrastructure debt
(1)
|
|
|
30
|
|
|
0
|
|
|
||
Bank loans
(1)
|
|
|
0
|
|
|
230
|
|
|
||
Equities
(1),(2)
|
|
|
7
|
|
|
200
|
|
|
||
Other investments:
|
|
|
|
|
|
|
||||
Middle market loans
(1)
|
|
|
97
|
|
|
0
|
|
|
||
Commercial mortgage loans
(1)
|
|
|
48
|
|
|
20
|
|
|
||
Total dollar-denominated
|
|
|
$
|
240
|
|
|
$
|
887
|
|
|
Total Aflac Japan purchases
|
|
|
$
|
3,468
|
|
|
$
|
2,257
|
|
|
|
Three Months
|
|
|||||||
|
2017
|
|
|
|
2016
|
|
|
||
Total purchases for the period (in millions)
(1)
|
$
|
3,468
|
|
|
|
$
|
2,257
|
|
|
New money yield
(1), (2)
|
1.21
|
|
%
|
|
2.14
|
|
%
|
||
Return on average invested assets
(3)
|
2.36
|
|
|
|
2.64
|
|
|
||
Portfolio book yield, including U.S. dollar-denominated investments, end of period
(1)
|
2.57
|
|
%
|
|
2.75
|
|
%
|
|
Three Months Ended
March 31, |
|
||||||
(In millions)
|
2017
|
|
2016
|
|
||||
Net premium income
|
$
|
1,390
|
|
|
$
|
1,367
|
|
|
Net investment income
|
178
|
|
|
174
|
|
|
||
Other income
|
1
|
|
|
3
|
|
|
||
Total operating revenues
|
1,569
|
|
|
1,544
|
|
|
||
Benefits and claims
|
710
|
|
|
690
|
|
|
||
Operating expenses:
|
|
|
|
|
||||
Amortization of deferred policy acquisition costs
|
140
|
|
|
141
|
|
|
||
Insurance commissions
|
145
|
|
|
146
|
|
|
||
Insurance and other expenses
|
264
|
|
|
235
|
|
|
||
Total operating expenses
|
549
|
|
|
522
|
|
|
||
Total benefits and expenses
|
1,259
|
|
|
1,212
|
|
|
||
Pretax operating earnings
(1)
|
$
|
310
|
|
|
$
|
332
|
|
|
Percentage change over previous period:
|
|
|
|
|
||||
Net premium income
|
1.7
|
|
%
|
2.1
|
|
%
|
||
Net investment income
|
2.0
|
|
|
5.1
|
|
|
||
Total operating revenues
|
1.7
|
|
|
2.3
|
|
|
||
Pretax operating earnings
(1)
|
(6.7
|
)
|
|
16.6
|
|
|
|
Three Months Ended
March 31, |
|
|||
Ratios to total revenues:
|
2017
|
|
|
2016
|
|
Benefits and claims
|
45.2
|
%
|
|
44.7
|
%
|
Operating expenses:
|
|
|
|
|
|
Amortization of deferred policy acquisition costs
|
8.9
|
|
|
9.1
|
|
Insurance commissions
|
9.2
|
|
|
9.5
|
|
Insurance and other expenses
|
17.0
|
|
|
15.2
|
|
Total operating expenses
|
35.1
|
|
|
33.8
|
|
Pretax operating earnin
gs
(1)
|
19.7
|
|
|
21.5
|
|
|
Three Months
|
|
||||||||
(In millions)
|
2017
|
|
|
2016
|
|
|
|
|||
New annualized premium sales
|
$
|
333
|
|
|
|
$
|
328
|
|
|
|
Increase (decrease) over prior period
|
1.7
|
|
%
|
|
3.7
|
|
%
|
|
|
Three Months
|
|
||||
|
2017
|
|
|
2016
|
|
|
Income-loss protection:
|
|
|
|
|
|
|
Short-term disability
|
25.0
|
%
|
|
23.4
|
%
|
|
Life
|
5.4
|
|
|
5.6
|
|
|
Asset-loss protection:
|
|
|
|
|
|
|
Accident
|
29.2
|
|
|
30.0
|
|
|
Critical care
(1)
|
20.8
|
|
|
21.4
|
|
|
Supplemental medical:
|
|
|
|
|
|
|
Hospital indemnity
|
13.8
|
|
|
14.0
|
|
|
Dental/vision
|
5.8
|
|
|
5.6
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
Three Months Ended
March 31, |
||||||
(In millions)
|
|
|
2017
|
|
2016
|
||||
Fixed maturities:
|
|
|
|
|
|
||||
Other fixed maturities
|
|
|
$
|
260
|
|
|
$
|
104
|
|
Infrastructure debt
|
|
|
5
|
|
|
0
|
|
||
Equities
|
|
|
2
|
|
|
66
|
|
||
Other investments:
|
|
|
|
|
|
||||
Middle market loans
|
|
|
51
|
|
|
111
|
|
||
Commercial mortgage loans
|
|
|
0
|
|
|
13
|
|
||
Total Aflac U.S. Purchases
|
|
|
$
|
318
|
|
|
$
|
294
|
|
|
Three Months
|
|
|||||||
|
2017
|
|
|
2016
|
|
||||
Total purchases for period (in millions)
(1)
|
$
|
318
|
|
|
|
$
|
294
|
|
|
New money yield
(1), (2)
|
4.33
|
|
%
|
|
4.67
|
|
%
|
||
Return on average invested assets
(3)
|
4.99
|
|
|
|
5.02
|
|
|
||
Portfolio book yield, end of period
(1)
|
5.56
|
|
%
|
|
5.74
|
|
%
|
(In millions)
|
As
Reported |
|
Exchange
Effect |
|
Net of
Exchange Effect (1) |
||||||||||||
Yen/dollar exchange rate
(2)
|
|
112.19
|
|
|
|
|
|
|
|
|
116.49
|
|
|
||||
Investments and cash
|
|
$
|
120,503
|
|
|
|
|
$
|
2,864
|
|
|
|
|
$
|
117,639
|
|
|
Deferred policy acquisition costs
|
|
9,255
|
|
|
|
|
223
|
|
|
|
|
9,032
|
|
|
|||
Policy liabilities
|
|
97,624
|
|
|
|
|
3,223
|
|
|
|
|
94,401
|
|
|
|
|
Aflac Japan
|
|
|
Aflac U.S.
|
|
||||||||||||||||
(In millions)
|
March 31,
2017 |
|
December 31,
2016 |
March 31,
2017 |
|
December 31,
2016 |
||||||||||||||||
Securities available for sale, at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
62,850
|
|
|
|
|
$
|
59,903
|
|
|
|
$
|
13,585
|
|
|
|
|
$
|
13,250
|
|
|
Perpetual securities
|
|
1,713
|
|
|
|
|
1,577
|
|
|
|
57
|
|
|
|
|
56
|
|
|
||||
Equity securities
|
|
1,218
|
|
|
|
|
1,185
|
|
|
|
129
|
|
|
|
|
124
|
|
|
||||
Total available for sale
|
|
65,781
|
|
|
|
|
62,665
|
|
|
|
13,771
|
|
|
|
|
13,430
|
|
|
||||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
34,401
|
|
|
|
|
33,350
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total held to maturity
|
|
34,401
|
|
|
|
|
33,350
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Other investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage loans
|
|
$
|
761
|
|
|
|
|
$
|
745
|
|
|
|
$
|
109
|
|
|
|
|
$
|
110
|
|
|
Middle market loans
|
|
165
|
|
|
|
|
74
|
|
|
|
274
|
|
|
|
|
245
|
|
|
||||
Short-term investments
|
|
139
|
|
|
|
|
88
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Policy loans
|
|
186
|
|
|
|
|
174
|
|
|
|
10
|
|
|
|
|
10
|
|
|
||||
Other
|
|
41
|
|
|
|
|
0
|
|
|
|
10
|
|
|
|
|
0
|
|
|
||||
Total other investments
|
|
1,292
|
|
|
|
|
1,081
|
|
|
|
403
|
|
|
|
|
365
|
|
|
||||
Total investment securities
|
|
$
|
101,474
|
|
|
|
|
$
|
97,096
|
|
|
|
$
|
14,174
|
|
|
|
|
$
|
13,795
|
|
|
Cash and cash equivalents
|
|
1,177
|
|
|
|
|
1,313
|
|
|
|
1,457
|
|
|
|
|
1,428
|
|
|
||||
Total investments and cash
(1)
|
|
$
|
102,651
|
|
|
|
|
$
|
98,409
|
|
|
|
$
|
15,631
|
|
|
|
|
$
|
15,223
|
|
|
|
|
March 31, 2017
|
|
|
|
December 31, 2016
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.2
|
%
|
|
|
|
1.2
|
%
|
|
|
|
2.0
|
%
|
|
|
|
1.9
|
%
|
|
AA
|
|
4.7
|
|
|
|
|
4.7
|
|
|
|
|
5.0
|
|
|
|
|
5.0
|
|
|
A
|
|
64.8
|
|
|
|
|
66.5
|
|
|
|
|
63.1
|
|
|
|
|
65.2
|
|
|
BBB
|
|
24.5
|
|
|
|
|
23.4
|
|
|
|
|
24.6
|
|
|
|
|
23.2
|
|
|
BB or lower
|
|
4.8
|
|
|
|
|
4.2
|
|
|
|
|
5.3
|
|
|
|
|
4.7
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Loss |
||||||||||||||
Diamond Offshore Drilling Inc.
|
|
BB
|
|
|
|
$
|
142
|
|
|
|
|
$
|
99
|
|
|
|
|
$
|
(43
|
)
|
|
Noble Holdings International Ltd.
|
|
B
|
|
|
|
99
|
|
|
|
|
69
|
|
|
|
|
(30
|
)
|
|
|||
Deutsche Postbank AG
|
|
BB
|
|
|
|
214
|
|
|
|
|
192
|
|
|
|
|
(22
|
)
|
|
|||
AXA
(1)
|
|
BBB
|
|
|
|
291
|
|
|
|
|
270
|
|
|
|
|
(21
|
)
|
|
|||
Investcorp Capital Limited
|
|
BB
|
|
|
|
380
|
|
|
|
|
361
|
|
|
|
|
(19
|
)
|
|
|||
Microsoft Corp.
|
|
AAA
|
|
|
|
234
|
|
|
|
|
217
|
|
|
|
|
(17
|
)
|
|
|||
Kommunal Lanspensjonskasse (KLP)
(1)
|
|
BBB
|
|
|
|
219
|
|
|
|
|
202
|
|
|
|
|
(17
|
)
|
|
|||
Baker Hughes Inc.
|
|
BBB
|
|
|
|
123
|
|
|
|
|
107
|
|
|
|
|
(16
|
)
|
|
|||
National Oilwell Varco Inc.
|
|
BBB
|
|
|
|
98
|
|
|
|
|
82
|
|
|
|
|
(16
|
)
|
|
|||
Oracle Corp.
|
|
A
|
|
|
|
213
|
|
|
|
|
200
|
|
|
|
|
(13
|
)
|
|
|
|
March 31, 2017
|
|
|
|
December 31, 2016
|
|
||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Publicly issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
79,535
|
|
|
|
|
$
|
89,560
|
|
|
|
|
$
|
75,406
|
|
|
|
|
$
|
86,132
|
|
|
Perpetual securities
|
|
52
|
|
|
|
|
78
|
|
|
|
|
51
|
|
|
|
|
75
|
|
|
||||
Equity securities
|
|
1,243
|
|
|
|
|
1,339
|
|
|
|
|
1,196
|
|
|
|
|
1,300
|
|
|
||||
Total publicly issued
|
|
80,830
|
|
|
|
|
90,977
|
|
|
|
|
76,653
|
|
|
|
|
87,507
|
|
|
||||
Privately issued securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
25,127
|
|
|
|
|
28,440
|
|
|
|
|
24,307
|
|
|
|
|
27,649
|
|
|
||||
Perpetual securities
|
|
1,511
|
|
|
|
|
1,692
|
|
|
|
|
1,455
|
|
|
|
|
1,558
|
|
|
||||
Equity securities
|
|
9
|
|
|
|
|
10
|
|
|
|
|
7
|
|
|
|
|
9
|
|
|
||||
Total privately issued
|
|
26,647
|
|
|
|
|
30,142
|
|
|
|
|
25,769
|
|
|
|
|
29,216
|
|
|
||||
Total investment securities
|
|
$
|
107,477
|
|
|
|
|
$
|
121,119
|
|
|
|
|
$
|
102,422
|
|
|
|
|
$
|
116,723
|
|
|
(Amortized cost, in millions)
|
March 31,
2017 |
|
December 31,
2016 |
||||||||
Privately issued securities as a percentage of total investment securities
|
|
24.8
|
%
|
|
|
|
25.2
|
%
|
|
||
Privately issued securities held by Aflac Japan
|
|
$
|
23,912
|
|
|
|
|
$
|
23,104
|
|
|
Privately issued securities held by Aflac Japan as a percentage of total
investment securities |
|
22.2
|
%
|
|
|
|
22.6
|
%
|
|
(Amortized cost, in millions)
|
March 31,
2017 |
|
December 31,
2016 |
||||||||
Privately issued reverse-dual currency securities
|
|
$
|
5,844
|
|
|
|
|
$
|
5,628
|
|
|
Publicly issued collateral structured as reverse-dual currency securities
|
|
1,400
|
|
|
|
|
1,349
|
|
|
||
Total reverse-dual currency securities
|
|
$
|
7,244
|
|
|
|
|
$
|
6,977
|
|
|
Reverse-dual currency securities as a percentage of total investment
securities |
|
6.7
|
%
|
|
|
|
6.8
|
%
|
|
|
March 31, 2017
|
|
December 31, 2016
|
|
||||||||||||||||||||||||||||
(In millions)
|
Par
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain (Loss) |
|
Par
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain(Loss) |
|
||||||||||||||||
Investcorp Capital Limited
|
$
|
380
|
|
|
$
|
380
|
|
|
$
|
361
|
|
|
$
|
(19
|
)
|
|
$
|
368
|
|
|
$
|
368
|
|
|
$
|
346
|
|
|
$
|
(22
|
)
|
|
Navient Corp.
|
297
|
|
|
158
|
|
|
195
|
|
|
37
|
|
|
287
|
|
|
152
|
|
|
197
|
|
|
45
|
|
|
||||||||
Republic of Tunisia
|
267
|
|
|
157
|
|
|
178
|
|
|
21
|
|
|
318
|
|
|
191
|
|
|
264
|
|
|
73
|
|
|
||||||||
KLM Royal Dutch Airlines
(1)
|
267
|
|
|
196
|
|
|
219
|
|
|
23
|
|
|
257
|
|
|
189
|
|
|
213
|
|
|
24
|
|
|
||||||||
Barclays Bank PLC
(1)
|
242
|
|
|
158
|
|
|
230
|
|
|
72
|
|
|
236
|
|
|
152
|
|
|
221
|
|
|
69
|
|
|
||||||||
Deutsche Postbank AG
|
214
|
|
|
214
|
|
|
192
|
|
|
(22
|
)
|
|
206
|
|
|
206
|
|
|
179
|
|
|
(27
|
)
|
|
||||||||
Telecom Italia SpA
|
178
|
|
|
178
|
|
|
221
|
|
|
43
|
|
|
172
|
|
|
172
|
|
|
212
|
|
|
40
|
|
|
||||||||
Generalitat de Catalunya
|
143
|
|
|
52
|
|
|
108
|
|
|
56
|
|
|
154
|
|
|
57
|
|
|
111
|
|
|
54
|
|
|
||||||||
Diamond Offshore Drilling Inc.
|
124
|
|
|
142
|
|
|
99
|
|
|
(43
|
)
|
|
124
|
|
|
141
|
|
|
96
|
|
|
(45
|
)
|
|
||||||||
IKB Deutsche Industriebank AG
|
116
|
|
|
49
|
|
|
98
|
|
|
49
|
|
|
112
|
|
|
47
|
|
|
91
|
|
|
44
|
|
|
||||||||
Alcoa, Inc.
|
100
|
|
|
83
|
|
|
100
|
|
|
17
|
|
|
100
|
|
|
80
|
|
|
97
|
|
|
17
|
|
|
||||||||
Noble Holdings International Ltd.
|
95
|
|
|
99
|
|
|
69
|
|
|
(30
|
)
|
|
95
|
|
|
98
|
|
|
68
|
|
|
(30
|
)
|
|
||||||||
Petrobras International
Finance Company |
91
|
|
|
90
|
|
|
89
|
|
|
(1
|
)
|
|
91
|
|
|
90
|
|
|
83
|
|
|
(7
|
)
|
|
||||||||
EMC Corp.
|
85
|
|
|
86
|
|
|
78
|
|
|
(8
|
)
|
|
85
|
|
|
86
|
|
|
76
|
|
|
(10
|
)
|
|
||||||||
Teck Resources Ltd.
|
70
|
|
|
75
|
|
|
68
|
|
|
(7
|
)
|
|
70
|
|
|
73
|
|
|
66
|
|
|
(7
|
)
|
|
||||||||
Transocean Inc.
|
68
|
|
|
72
|
|
|
61
|
|
|
(11
|
)
|
|
68
|
|
|
72
|
|
|
57
|
|
|
(15
|
)
|
|
||||||||
CF Industries Inc.
|
60
|
|
|
59
|
|
|
57
|
|
|
(2
|
)
|
|
60
|
|
|
59
|
|
|
54
|
|
|
(5
|
)
|
|
||||||||
Votorantim OverseasTrading
IV Ltd. |
50
|
|
|
49
|
|
|
55
|
|
|
6
|
|
|
50
|
|
|
49
|
|
|
54
|
|
|
5
|
|
|
||||||||
UPM-Kymmene
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
180
|
|
|
178
|
|
|
188
|
|
|
10
|
|
|
||||||||
Cenovus Energy Inc.
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
75
|
|
|
78
|
|
|
71
|
|
|
(7
|
)
|
|
||||||||
Other Issuers (below $50 million
in par value) |
333
|
|
|
325
|
|
|
322
|
|
|
(3
|
)
|
|
333
|
|
|
321
|
|
|
309
|
|
|
(12
|
)
|
|
||||||||
Subtotal
(2)
|
3,180
|
|
|
2,622
|
|
|
2,800
|
|
|
178
|
|
|
3,441
|
|
|
2,859
|
|
|
3,053
|
|
|
194
|
|
|
||||||||
Senior secured bank loans
|
1,651
|
|
|
1,719
|
|
|
1,654
|
|
|
(65
|
)
|
|
1,758
|
|
|
1,855
|
|
|
1,764
|
|
|
(91
|
)
|
|
||||||||
High yield corporate bonds
|
614
|
|
|
614
|
|
|
629
|
|
|
15
|
|
|
614
|
|
|
602
|
|
|
624
|
|
|
22
|
|
|
||||||||
Middle market loans, net of
reserves (3) |
446
|
|
|
439
|
|
|
440
|
|
|
1
|
|
|
324
|
|
|
319
|
|
|
320
|
|
|
1
|
|
|
||||||||
Grand Total
|
$
|
5,891
|
|
|
$
|
5,394
|
|
|
$
|
5,523
|
|
|
$
|
129
|
|
|
$
|
6,137
|
|
|
$
|
5,635
|
|
|
$
|
5,761
|
|
|
$
|
126
|
|
|
|
|
(In millions)
|
March 31,
2017 |
|
December 31,
2016 |
||||||||
Aflac Japan net assets
|
|
$
|
16,431
|
|
|
|
|
$
|
16,215
|
|
|
Aflac Japan unhedged U.S. dollar-denominated net assets
|
|
(9,912
|
)
|
|
|
|
(9,694
|
)
|
|
||
Consolidated yen-denominated net assets (liabilities)
|
|
$
|
6,519
|
|
|
|
|
$
|
6,521
|
|
|
(In millions)
|
March 31, 2017
|
|
December 31, 2016
|
|
% Change
|
|||||||||||
Aflac Japan
|
|
$
|
6,028
|
|
|
|
|
$
|
5,765
|
|
|
|
|
4.6
|
%
|
(1)
|
Aflac U.S.
|
|
3,227
|
|
|
|
|
3,228
|
|
|
|
|
0.0
|
|
|
||
Total
|
|
$
|
9,255
|
|
|
|
|
$
|
8,993
|
|
|
|
|
2.9
|
%
|
|
(In millions)
|
March 31, 2017
|
|
December 31, 2016
|
|
% Change
|
|||||||||||
Aflac Japan
|
|
$
|
87,966
|
|
|
|
|
$
|
84,141
|
|
|
|
|
4.5
|
%
|
(1)
|
Aflac U.S.
|
|
10,300
|
|
|
|
|
10,212
|
|
|
|
|
.9
|
|
|
||
Other
|
|
107
|
|
|
|
|
91
|
|
|
|
|
17.6
|
|
|
||
Intercompany eliminations
(2)
|
|
(749
|
)
|
|
|
|
(718
|
)
|
|
|
|
4.3
|
|
|
||
Total
|
|
$
|
97,624
|
|
|
|
|
$
|
93,726
|
|
|
|
|
4.2
|
%
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Dividends declared or paid by Aflac
|
$
|
400
|
|
|
$
|
0
|
|
|
Management fees paid by Aflac
|
80
|
|
|
60
|
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Operating activities
|
$
|
1,757
|
|
|
$
|
1,331
|
|
|
Investing activities
|
(1,527
|
)
|
|
(1,487
|
)
|
|
||
Financing activities
|
(876
|
)
|
|
(766
|
)
|
|
||
Exchange effect on cash and cash equivalents
|
(8
|
)
|
|
21
|
|
|
||
Net change in cash and cash equivalents
|
$
|
(654
|
)
|
|
$
|
(901
|
)
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Aflac Japan
|
$
|
1,311
|
|
|
$
|
1,042
|
|
|
Aflac U.S. and other operations
|
446
|
|
|
289
|
|
|
||
Total
|
$
|
1,757
|
|
|
$
|
1,331
|
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Aflac Japan
|
$
|
(1,191
|
)
|
|
$
|
(1,129
|
)
|
|
Aflac U.S. and other operations
|
(336
|
)
|
|
(358
|
)
|
|
||
Total
|
$
|
(1,527
|
)
|
|
$
|
(1,487
|
)
|
|
(In millions of dollars and thousands of shares)
|
2017
|
|
2016
|
|
||||
Treasury stock purchases
|
$
|
610
|
|
|
$
|
612
|
|
|
Number of shares purchased:
|
|
|
|
|
||||
Open market
|
8,493
|
|
|
10,152
|
|
|
||
Other
|
144
|
|
|
189
|
|
|
||
Total shares purchased
|
8,637
|
|
|
10,341
|
|
|
(In millions of dollars and thousands of shares)
|
2017
|
|
2016
|
|
||||
Stock issued from treasury:
|
|
|
|
|
||||
Cash financing
|
$
|
11
|
|
|
$
|
7
|
|
|
Noncash financing
|
14
|
|
|
18
|
|
|
||
Total stock issued from treasury
|
$
|
25
|
|
|
$
|
25
|
|
|
Number of shares issued
|
395
|
|
|
486
|
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Dividends paid in cash
|
$
|
166
|
|
|
$
|
167
|
|
|
Dividends through issuance of treasury shares
|
7
|
|
|
6
|
|
|
||
Total dividends to shareholders
|
$
|
173
|
|
|
$
|
173
|
|
|
(In millions of dollars and billions of yen)
|
2017
|
|
2016
|
|
||||
Aflac Japan management fees paid to Parent Company
|
$
|
28
|
|
|
$
|
13
|
|
|
Expenses allocated to Aflac Japan (in dollars)
|
32
|
|
|
33
|
|
|
||
Aflac Japan profit remittances to Aflac U.S. (in dollars)
|
275
|
|
|
219
|
|
|
||
Aflac Japan profit remittances to Aflac U.S. (in yen)
|
31.3
|
|
|
25.0
|
|
|
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
|
3,819,299
|
|
|
$
|
69.94
|
|
|
3,819,299
|
|
|
22,934,155
|
|
|
February 1 - February 28
|
1,988,420
|
|
|
70.03
|
|
|
1,853,000
|
|
|
21,081,155
|
|
|
|
March 1 - March 31
|
2,825,614
|
|
|
72.12
|
|
|
2,821,009
|
|
|
18,260,146
|
|
|
|
Total
|
8,633,333
|
|
(2)
|
$
|
70.67
|
|
|
8,493,308
|
|
|
18,260,146
|
|
(1)
|
Item 6.
|
Exhibits
|
|
4.14
|
|
-
|
|
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).
|
|
4.15
|
|
-
|
|
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 – incorporated by reference from Form 10-Q for September 30, 2016, Exhibit 10.2 (File No. 001-07434).
|
|
10.3*
|
|
|
|
Third Amendment to the American Family Corporation Retirement Plan for Senior Officers, dated October 18, 2016 – incorporated by reference from Form 10-Q for September 30, 2016, Exhibit 10.3 (File No. 001-07434).
|
|
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 – incorporated by reference from Form 10-Q for September 30, 2016, Exhibit 10.8 (File No. 001-07434).
|
|
10.9*
|
|
-
|
|
Second Amendment to the Aflac Incorporated Executive Deferred Compensation Plan, as amended and restated, effective September 1, 2015.
|
|
10.10*
|
|
-
|
|
Aflac Incorporated 2013 Management Incentive Plan - incorporated by reference from the 2012 Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.11*
|
|
-
|
|
Aflac Incorporated 2018 Management Incentive Plan - incorporated by reference from the 2017 Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.12*
|
|
-
|
|
1999 Aflac Associate Stock Bonus Plan, amended and restated as of January 1, 2013 - incorporated by reference from Form 10-Q for March 31, 2013, Exhibit 10.10 (File No. 001-07434).
|
|
10.13*
|
|
-
|
|
Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from the 1997 Shareholders’ Proxy Statement, Appendix B (File No. 001-07434).
|
|
10.14*
|
|
-
|
|
Form of Officer Stock Option Agreement (Non-Qualifying Stock Option) under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.5 (File No. 001-07434).
|
|
10.15*
|
|
-
|
|
Form of Officer Stock Option Agreement (Incentive Stock Option) under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.6 (File No. 001-07434).
|
|
10.16*
|
|
-
|
|
Notice of grant of stock options and stock option agreement to officers under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.7 (File No. 001-07434).
|
|
10.17*
|
|
-
|
|
2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from the 2012 Proxy Statement, Appendix A (File No. 001-07434).
|
|
10.18*
|
|
-
|
|
Form of Non-Employee Director Stock Option Agreement (NQSO) under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 - incorporated by reference from Form 10-Q for March 31, 2016, Exhibit 10.13 (File No. 001-07434).
|
|
10.19*
|
|
-
|
|
Notice of grant of stock options to non-employee director under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 - incorporated by reference from Form 10-Q for March 31, 2016, Exhibit 10.14 (File No. 001-07434).
|
|
10.20*
|
|
-
|
|
Form of Non-Employee Director Restricted Stock Award Agreement under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 - incorporated by reference from Form 10-Q for March 31, 2016, Exhibit 10.15 (File No. 001-07434).
|
|
10.21*
|
|
-
|
|
Notice of restricted stock award to non-employee director under the 2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 - incorporated by reference from Form 10-Q for March 31, 2016, Exhibit 10.16 (File No. 001-07434).
|
|
10.22*
|
|
-
|
|
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).
|
|
10.23*
|
|
-
|
|
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).
|
|
10.24*
|
|
-
|
|
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).
|
|
10.25*
|
|
-
|
|
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).
|
|
10.26*
|
|
-
|
|
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).
|
|
10.27*
|
|
-
|
|
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).
|
|
10.28*
|
|
-
|
|
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).
|
|
10.29*
|
|
-
|
|
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).
|
|
10.30*
|
|
-
|
|
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).
|
|
10.31*
|
|
-
|
|
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).
|
|
10.32*
|
|
-
|
|
Aflac Incorporated Long-Term Incentive Plan, as amended and restated February 14, 2017 – incorporated by reference from the 2017 Proxy Statement, Appendix A (File No. 001-07434).
|
|
10.33*
|
|
-
|
|
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).
|
|
10.34*
|
|
-
|
|
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).
|
|
10.35*
|
|
-
|
|
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).
|
|
10.36*
|
|
-
|
|
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).
|
|
10.37*
|
|
-
|
|
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).
|
|
10.38*
|
|
-
|
|
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).
|
|
10.39*
|
|
-
|
|
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 May 3, 2017, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
|
|
31.2
|
|
-
|
|
Certification of CFO dated May 3, 2017, 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 May 3, 2017, pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS
|
|
-
|
|
XBRL Instance Document.
(1)
|
|
101.SCH
|
|
-
|
|
XBRL Taxonomy Extension Schema.
|
|
101.CAL
|
|
-
|
|
XBRL Taxonomy Extension Calculation Linkbase.
|
|
101.DEF
|
|
-
|
|
XBRL Taxonomy Extension Definition Linkbase.
|
|
101.LAB
|
|
-
|
|
XBRL Taxonomy Extension Label Linkbase.
|
|
101.PRE
|
|
-
|
|
XBRL Taxonomy Extension Presentation Linkbase.
|
(1)
|
Includes the following materials contained in this Quarterly Report on Form 10-Q for the period ended March 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Earnings, (ii) Consolidated Statements of Comprehensive Income (Loss), (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, (vi) Notes to the Consolidated Financial Statements
|
|||
|
|
|
|
|
*
|
Management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 6 of this report
|
|
|
Aflac Incorporated
|
|
|
|
May 3, 2017
|
|
/s/
Frederick J. Crawford
|
|
|
(Frederick J. Crawford)
|
|
|
Executive Vice President,
Chief Financial Officer
|
|
|
|
May 3, 2017
|
|
/s/
June Howard
|
|
|
(June Howard)
|
|
|
Senior Vice President, Financial Services; Chief Accounting Officer
|
1.
|
Section 1.36 is amended by deleting said section in its entirety and substituting in lieu thereof the following:
|
2.
|
Except as specifically amended hereby, the Plan will remain in full form and effect.
|
|
2017
|
|
2016
|
||||
Numerator (In millions):
|
|
|
|
||||
Basic and diluted: net earnings applicable to common stock
|
$
|
592
|
|
|
$
|
731
|
|
Denominator (In thousands):
|
|
|
|
||||
Weighted-average outstanding shares used in the
computation of earnings per share - basic |
401,130
|
|
|
418,748
|
|
||
Dilutive effect of share-based awards
|
2,939
|
|
|
2,172
|
|
||
Weighted-average outstanding shares used in the
computation of earnings per share - diluted |
404,069
|
|
|
420,920
|
|
||
Earnings per share:
|
|
|
|
||||
Basic
|
$
|
1.48
|
|
|
$
|
1.75
|
|
Diluted
|
1.47
|
|
|
1.74
|
|
(In thousands)
|
2017
|
|
2016
|
||||
Fixed charges:
|
|
|
|
||||
Interest expense
(1)
|
$
|
61,691
|
|
|
$
|
65,158
|
|
Interest on investment-type contracts
|
18,304
|
|
|
16,132
|
|
||
Rental expense deemed interest
|
122
|
|
|
135
|
|
||
Total fixed charges
|
$
|
80,117
|
|
|
$
|
81,425
|
|
Earnings before income tax
(1)
|
$
|
898,471
|
|
|
$
|
1,117,154
|
|
Add back:
|
|
|
|
||||
Total fixed charges
|
80,117
|
|
|
81,425
|
|
||
Total earnings before income tax and fixed charges
|
$
|
978,588
|
|
|
$
|
1,198,579
|
|
Ratio of earnings to fixed charges
|
12.2x
|
|
|
14.7x
|
|
/s/ KPMG LLP
|
1.
|
I have reviewed this
quarterly
report on Form
10-Q
of Aflac Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
|
|
Date:
|
May 3, 2017
|
|
/s/
Daniel P. Amos
|
|
|
|
Daniel P. Amos
|
|
|
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this
quarterly
report on Form
10-Q
of Aflac Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
|
|
Date:
|
May 3, 2017
|
|
/s/ Frederick J. Crawford
|
|
|
|
Frederick J. Crawford
|
|
|
|
Executive Vice President, Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/
Daniel P. Amos
|
||
Name:
|
|
Daniel P. Amos
|
Title:
|
|
Chief Executive Officer
|
Date:
|
|
May 3, 2017
|
/s/
Frederick J. Crawford
|
||
Name:
|
|
Frederick J. Crawford
|
Title:
|
|
Chief Financial Officer
|
Date:
|
|
May 3, 2017
|