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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July 26, 2017
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Common Stock, $.10 Par Value
|
|
395,229,099
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|
|
Page
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PART I.
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Item 1.
|
|
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||
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||
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Three Months Ended June 30, 2017 and 2016
Six Months Ended June 30, 2017 and 2016
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Three Months Ended June 30, 2017 and 2016
Six Months Ended June 30, 2017 and 2016
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June 30, 2017 and December 31, 2016
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Six Months Ended June 30, 2017 and 2016
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Six Months Ended June 30, 2017, and 2016
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Item 2.
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Item 3.
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Item 4.
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PART II.
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Item 2.
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Item 6.
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/s/ KPMG LLP
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Three Months Ended
June 30, |
Six Months Ended
June 30, |
|
|||||||||||||||||
(In millions, except for share and per-share amounts - Unaudited)
|
2017
|
2016
|
2017
|
2016
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|
|||||||||||||||
Revenues:
|
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||||||||
Net premiums, principally supplemental health insurance
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$
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4,665
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$
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4,823
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$
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9,303
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$
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9,425
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Net investment income
|
|
802
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|
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|
822
|
|
|
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1,596
|
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1,623
|
|
|
||||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other-than-temporary impairment losses realized
|
|
(9
|
)
|
|
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(33
|
)
|
|
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(19
|
)
|
|
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(47
|
)
|
|
||||
Sales and redemptions
|
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5
|
|
|
|
22
|
|
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(1
|
)
|
|
|
113
|
|
|
||||
Derivative and other gains (losses)
|
|
(52
|
)
|
|
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(212
|
)
|
|
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(176
|
)
|
|
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(260
|
)
|
|
||||
Total realized investment gains (losses)
|
|
(56
|
)
|
|
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(223
|
)
|
|
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(196
|
)
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(194
|
)
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|
||||
Other income (loss)
|
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17
|
|
|
|
15
|
|
|
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34
|
|
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34
|
|
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||||
Total revenues
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5,428
|
|
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5,437
|
|
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10,737
|
|
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10,888
|
|
|
||||
Benefits and expenses:
|
|
|
|
|
|
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|
|
|
|
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|
||||||||
Benefits and claims, net
|
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3,039
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3,254
|
|
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6,091
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|
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6,279
|
|
|
||||
Acquisition and operating expenses:
|
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|
|
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|
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|
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|
||||||||
Amortization of deferred policy acquisition costs
|
|
283
|
|
|
|
284
|
|
|
|
577
|
|
|
|
576
|
|
|
||||
Insurance commissions
|
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335
|
|
|
|
345
|
|
|
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664
|
|
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|
678
|
|
|
||||
Insurance and other expenses
|
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665
|
|
|
|
654
|
|
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1,339
|
|
|
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1,273
|
|
|
||||
Interest expense
|
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61
|
|
|
|
66
|
|
|
|
122
|
|
|
|
131
|
|
|
||||
Total acquisition and operating expenses
|
|
1,344
|
|
|
|
1,349
|
|
|
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2,702
|
|
|
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2,658
|
|
|
||||
Total benefits and expenses
|
|
4,383
|
|
|
|
4,603
|
|
|
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8,793
|
|
|
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8,937
|
|
|
||||
Earnings before income taxes
|
|
1,045
|
|
|
|
834
|
|
|
|
1,944
|
|
|
|
1,951
|
|
|
||||
Income taxes
|
|
332
|
|
|
|
286
|
|
|
|
639
|
|
|
|
672
|
|
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||||
Net earnings
|
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$
|
713
|
|
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|
$
|
548
|
|
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$
|
1,305
|
|
|
|
$
|
1,279
|
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
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|
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||||||||
Basic
|
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$
|
1.80
|
|
|
|
$
|
1.33
|
|
|
|
$
|
3.27
|
|
|
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$
|
3.08
|
|
|
Diluted
|
|
1.79
|
|
|
|
1.32
|
|
|
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3.25
|
|
|
|
3.06
|
|
|
||||
Weighted-average outstanding common shares used in
computing earnings per share (In thousands): |
|
|
|
|
|
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|
|
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||||||||
Basic
|
|
396,433
|
|
|
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411,853
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|
|
|
398,768
|
|
|
|
415,301
|
|
|
||||
Diluted
|
|
399,348
|
|
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414,326
|
|
|
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401,695
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|
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417,623
|
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|
||||
Cash dividends per share
|
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$
|
.43
|
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$
|
.41
|
|
|
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$
|
.86
|
|
|
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$
|
.82
|
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||
(In millions - Unaudited)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||||||
Net earnings
|
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$
|
713
|
|
|
|
$
|
548
|
|
|
|
$
|
1,305
|
|
|
|
$
|
1,279
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized foreign currency translation gains (losses) during
period |
|
9
|
|
|
|
899
|
|
|
|
383
|
|
|
|
1,588
|
|
|
||||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unrealized holding gains (losses) on investment securities during
period |
|
1,075
|
|
|
|
2,693
|
|
|
|
549
|
|
|
|
5,382
|
|
|
||||
Reclassification adjustment for realized (gains) losses on
investment securities included in net earnings |
|
1
|
|
|
|
11
|
|
|
|
17
|
|
|
|
(66
|
)
|
|
||||
Unrealized gains (losses) on derivatives during period
|
|
(2
|
)
|
|
|
8
|
|
|
|
1
|
|
|
|
11
|
|
|
||||
Pension liability adjustment during period
|
|
0
|
|
|
|
(4
|
)
|
|
|
(2
|
)
|
|
|
(6
|
)
|
|
||||
Total other comprehensive income (loss) before income taxes
|
|
1,083
|
|
|
|
3,607
|
|
|
|
948
|
|
|
|
6,909
|
|
|
||||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
314
|
|
|
|
1,111
|
|
|
|
177
|
|
|
|
2,102
|
|
|
||||
Other comprehensive income (loss), net of income taxes
|
|
769
|
|
|
|
2,496
|
|
|
|
771
|
|
|
|
4,807
|
|
|
||||
Total comprehensive income (loss)
|
|
$
|
1,482
|
|
|
|
$
|
3,044
|
|
|
|
$
|
2,076
|
|
|
|
$
|
6,086
|
|
|
(In millions)
|
June 30,
2017 (Unaudited) |
|
December 31,
2016 |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
|
|
|
||||
Securities available for sale, at fair value:
|
|
|
|
|
|
|
|
||||
Fixed maturities (amortized cost $67,809 in 2017 and $62,195 in 2016)
|
|
$
|
74,698
|
|
|
|
|
$
|
68,778
|
|
|
Fixed maturities - consolidated variable interest entities (amortized
cost $4,149 in 2017 and $4,168 in 2016) |
|
5,059
|
|
|
|
|
4,982
|
|
|
||
Perpetual securities (amortized cost $1,319 in 2017 and $1,269 in 2016)
|
|
1,627
|
|
|
|
|
1,425
|
|
|
||
Perpetual securities - consolidated variable interest entities
(amortized cost $241 in 2017 and $237 in 2016) |
|
216
|
|
|
|
|
208
|
|
|
||
Equity securities (cost $257 in 2017 and $231 in 2016)
|
|
280
|
|
|
|
|
265
|
|
|
||
Equity securities - consolidated variable interest entities
(cost $1,032 in 2017 and $972 in 2016) |
|
1,123
|
|
|
|
|
1,044
|
|
|
||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
|
|
||||
Fixed maturities (fair value $39,307 in 2017 and $40,021 in 2016)
|
|
32,613
|
|
|
|
|
33,350
|
|
|
||
Other investments
(1)
|
|
2,016
|
|
|
|
|
1,450
|
|
|
||
Cash and cash equivalents
|
|
4,264
|
|
|
|
|
4,859
|
|
|
||
Total investments and cash
|
|
121,896
|
|
|
|
|
116,361
|
|
|
||
Receivables
|
|
871
|
|
|
|
|
669
|
|
|
||
Accrued investment income
|
|
760
|
|
|
|
|
754
|
|
|
||
Deferred policy acquisition costs
|
|
9,340
|
|
|
|
|
8,993
|
|
|
||
Property and equipment, at cost less accumulated depreciation
|
|
442
|
|
|
|
|
433
|
|
|
||
Other
(2)
|
|
2,085
|
|
|
|
|
2,609
|
|
|
||
Total assets
|
|
$
|
135,394
|
|
|
|
|
$
|
129,819
|
|
|
(In millions, except for share and per-share amounts)
|
June 30,
2017 (Unaudited) |
|
December 31,
2016 |
||||||||
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||
Policy liabilities:
|
|
|
|
|
|
|
|
||||
Future policy benefits
|
|
$
|
80,652
|
|
|
|
|
$
|
76,106
|
|
|
Unpaid policy claims
|
|
4,281
|
|
|
|
|
4,045
|
|
|
||
Unearned premiums
|
|
6,547
|
|
|
|
|
6,916
|
|
|
||
Other policyholders’ funds
|
|
6,978
|
|
|
|
|
6,659
|
|
|
||
Total policy liabilities
|
|
98,458
|
|
|
|
|
93,726
|
|
|
||
Income taxes
|
|
6,057
|
|
|
|
|
5,387
|
|
|
||
Payables for return of cash collateral on loaned securities
|
|
663
|
|
|
|
|
526
|
|
|
||
Notes payable
|
|
5,252
|
|
|
|
|
5,360
|
|
|
||
Other
(3)
|
|
3,461
|
|
|
|
|
4,338
|
|
|
||
Total liabilities
|
|
113,891
|
|
|
|
|
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 672,037 shares in 2017 and 671,249 shares in 2016 |
|
67
|
|
|
|
|
67
|
|
|
||
Additional paid-in capital
|
|
2,048
|
|
|
|
|
1,976
|
|
|
||
Retained earnings
|
|
26,942
|
|
|
|
|
25,981
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Unrealized foreign currency translation gains (losses)
|
|
(1,580
|
)
|
|
|
|
(1,983
|
)
|
|
||
Unrealized gains (losses) on investment securities
|
|
5,173
|
|
|
|
|
4,805
|
|
|
||
Unrealized gains (losses) on derivatives
|
|
(23
|
)
|
|
|
|
(24
|
)
|
|
||
Pension liability adjustment
|
|
(169
|
)
|
|
|
|
(168
|
)
|
|
||
Treasury stock, at average cost
|
|
(10,955
|
)
|
|
|
|
(10,172
|
)
|
|
||
Total shareholders’ equity
|
|
21,503
|
|
|
|
|
20,482
|
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
135,394
|
|
|
|
|
$
|
129,819
|
|
|
|
Six Months Ended
June 30, |
||||||||||
(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
|
|
28
|
|
|
|
|
25
|
|
|
||
Share-based compensation
|
|
24
|
|
|
|
|
34
|
|
|
||
Gain (loss) on treasury stock reissued
|
|
20
|
|
|
|
|
18
|
|
|
||
Balance, end of period
|
|
2,048
|
|
|
|
|
1,905
|
|
|
||
Retained earnings:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
25,981
|
|
|
|
|
24,007
|
|
|
||
Net earnings
|
|
1,305
|
|
|
|
|
1,279
|
|
|
||
Dividends to shareholders
|
|
(344
|
)
|
|
|
|
(342
|
)
|
|
||
Balance, end of period
|
|
26,942
|
|
|
|
|
24,944
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
2,630
|
|
|
|
|
625
|
|
|
||
Unrealized foreign currency translation gains (losses) during
period, net of income taxes |
|
403
|
|
|
|
|
1,349
|
|
|
||
Unrealized gains (losses) on investment securities during period,
net of income taxes and reclassification adjustments |
|
368
|
|
|
|
|
3,455
|
|
|
||
Unrealized gains (losses) on derivatives during period, net of
income taxes |
|
1
|
|
|
|
|
7
|
|
|
||
Pension liability adjustment during period, net of income taxes
|
|
(1
|
)
|
|
|
|
(4
|
)
|
|
||
Balance, end of period
|
|
3,401
|
|
|
|
|
5,432
|
|
|
||
Treasury stock:
|
|
|
|
|
|
|
|
||||
Balance, beginning of period
|
|
(10,172
|
)
|
|
|
|
(8,819
|
)
|
|
||
Purchases of treasury stock
|
|
(813
|
)
|
|
|
|
(1,014
|
)
|
|
||
Cost of shares issued
|
|
30
|
|
|
|
|
35
|
|
|
||
Balance, end of period
|
|
(10,955
|
)
|
|
|
|
(9,798
|
)
|
|
||
Total shareholders’ equity
|
|
$
|
21,503
|
|
|
|
|
$
|
22,550
|
|
|
|
Six Months Ended June 30,
|
||||||||||
(In millions - Unaudited)
|
2017
|
|
2016
|
||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||
Net earnings
|
|
$
|
1,305
|
|
|
|
|
$
|
1,279
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||
Change in receivables and advance premiums
|
|
8
|
|
|
|
|
53
|
|
|
||
Increase in deferred policy acquisition costs
|
|
(116
|
)
|
|
|
|
(103
|
)
|
|
||
Increase in policy liabilities
|
|
1,326
|
|
|
|
|
1,654
|
|
|
||
Change in income tax liabilities
|
|
368
|
|
|
|
|
(136
|
)
|
|
||
Realized investment (gains) losses
|
|
196
|
|
|
|
|
194
|
|
|
||
Other, net
|
|
78
|
|
|
|
|
(87
|
)
|
|
||
Net cash provided (used) by operating activities
|
|
3,165
|
|
|
|
|
2,854
|
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||
Proceeds from investments sold or matured:
|
|
|
|
|
|
|
|
||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||
Fixed maturities sold
|
|
2,114
|
|
|
|
|
675
|
|
|
||
Fixed maturities matured or called
|
|
451
|
|
|
|
|
612
|
|
|
||
Perpetual securities matured or called
|
|
9
|
|
|
|
|
234
|
|
|
||
Equity securities sold
|
|
157
|
|
|
|
|
50
|
|
|
||
Securities held to maturity:
|
|
|
|
|
|
|
|
||||
Fixed maturities matured or called
|
|
1,311
|
|
|
|
|
736
|
|
|
||
Costs of investments acquired:
|
|
|
|
|
|
|
|
||||
Available-for-sale fixed maturities acquired
|
|
(5,662
|
)
|
|
|
|
(3,827
|
)
|
|
||
Available-for-sale equity securities acquired
|
|
(178
|
)
|
|
|
|
(691
|
)
|
|
||
Other investments, net
|
|
(514
|
)
|
|
|
|
(324
|
)
|
|
||
Settlement of derivatives, net
|
|
(34
|
)
|
|
|
|
664
|
|
|
||
Cash received (pledged or returned) as collateral, net
|
|
(129
|
)
|
|
|
|
(525
|
)
|
|
||
Other, net
|
|
(42
|
)
|
|
|
|
(33
|
)
|
|
||
Net cash provided (used) by investing activities
|
|
(2,517
|
)
|
|
|
|
(2,429
|
)
|
|
||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||
Purchases of treasury stock
|
|
(813
|
)
|
|
|
|
(1,014
|
)
|
|
||
Proceeds from borrowings
|
|
524
|
|
|
|
|
0
|
|
|
||
Principal payments under debt obligations
|
|
(656
|
)
|
|
|
|
(1
|
)
|
|
||
Dividends paid to shareholders
|
|
(328
|
)
|
|
|
|
(330
|
)
|
|
||
Change in investment-type contracts, net
|
|
23
|
|
|
|
|
82
|
|
|
||
Treasury stock reissued
|
|
17
|
|
|
|
|
19
|
|
|
||
Other, net
|
|
2
|
|
|
|
|
(37
|
)
|
|
||
Net cash provided (used) by financing activities
|
|
(1,231
|
)
|
|
|
|
(1,281
|
)
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
(12
|
)
|
|
|
|
206
|
|
|
||
Net change in cash and cash equivalents
|
|
(595
|
)
|
|
|
|
(650
|
)
|
|
||
Cash and cash equivalents, beginning of period
|
|
4,859
|
|
|
|
|
4,350
|
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
4,264
|
|
|
|
|
$
|
3,700
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
||||
Income taxes paid
|
|
$
|
293
|
|
|
|
|
$
|
944
|
|
|
Interest paid
|
|
103
|
|
|
|
|
101
|
|
|
||
Noncash interest
|
|
19
|
|
|
|
|
30
|
|
|
||
Impairment losses included in realized investment losses
|
|
19
|
|
|
|
|
47
|
|
|
||
Noncash financing activities:
|
|
|
|
|
|
|
|
||||
Capital lease obligations
|
|
3
|
|
|
|
|
2
|
|
|
||
Treasury stock issued for:
|
|
|
|
|
|
|
|
||||
Associate stock bonus
|
|
16
|
|
|
|
|
17
|
|
|
||
Shareholder dividend reinvestment
|
|
16
|
|
|
|
|
12
|
|
|
||
Share-based compensation grants
|
|
1
|
|
|
|
|
5
|
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
2.
|
BUSINESS SEGMENT INFORMATION
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan:
|
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
3,222
|
|
|
$
|
3,402
|
|
|
$
|
6,416
|
|
|
$
|
6,581
|
|
|
Net investment income, less amortized hedge costs
(1)
|
557
|
|
|
605
|
|
|
1,115
|
|
|
1,195
|
|
|
||||
Other income
|
10
|
|
|
11
|
|
|
20
|
|
|
19
|
|
|
||||
Total Aflac Japan
|
3,789
|
|
|
4,018
|
|
|
7,551
|
|
|
7,795
|
|
|
||||
Aflac U.S.:
|
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
1,388
|
|
|
1,362
|
|
|
2,778
|
|
|
2,729
|
|
|
||||
Net investment income
|
180
|
|
|
176
|
|
|
358
|
|
|
350
|
|
|
||||
Other income
|
2
|
|
|
0
|
|
|
3
|
|
|
3
|
|
|
||||
Total Aflac U.S.
|
1,570
|
|
|
1,538
|
|
|
3,139
|
|
|
3,082
|
|
|
||||
Other business segments
|
72
|
|
|
68
|
|
|
144
|
|
|
136
|
|
|
||||
Total business segment revenues
|
5,431
|
|
|
5,624
|
|
|
10,834
|
|
|
11,013
|
|
|
||||
Corporate and eliminations
|
16
|
|
|
21
|
|
|
31
|
|
|
43
|
|
|
||||
Total operating revenues
|
5,447
|
|
|
5,645
|
|
|
10,865
|
|
|
11,056
|
|
|
||||
Realized investment gains (losses)
(1), (2), (3)
|
(19
|
)
|
|
(208
|
)
|
|
(128
|
)
|
|
(168
|
)
|
|
||||
Total revenues
|
$
|
5,428
|
|
|
$
|
5,437
|
|
|
$
|
10,737
|
|
|
$
|
10,888
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
Pretax earnings:
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
(1)
|
$
|
791
|
|
|
$
|
802
|
|
|
$
|
1,560
|
|
|
$
|
1,608
|
|
|
Aflac U.S.
|
330
|
|
|
291
|
|
|
640
|
|
|
623
|
|
|
||||
Other business segments
|
3
|
|
|
5
|
|
|
3
|
|
|
8
|
|
|
||||
Total business segment pretax operating earnings
|
1,124
|
|
|
1,098
|
|
|
2,203
|
|
|
2,239
|
|
|
||||
Interest expense, noninsurance operations
|
(30
|
)
|
|
(30
|
)
|
|
(59
|
)
|
|
(59
|
)
|
|
||||
Corporate and eliminations
|
(21
|
)
|
|
(26
|
)
|
|
(44
|
)
|
|
(61
|
)
|
|
||||
Pretax operating earnings
|
1,073
|
|
|
1,042
|
|
|
2,100
|
|
|
2,119
|
|
|
||||
Realized investment gains (losses)
(1), (2), (3)
|
(19
|
)
|
|
(208
|
)
|
|
(128
|
)
|
|
(168
|
)
|
|
||||
Other non-operating income (loss)
(3)
|
(9
|
)
|
|
0
|
|
|
(28
|
)
|
|
0
|
|
|
||||
Total earnings before income taxes
|
$
|
1,045
|
|
|
$
|
834
|
|
|
$
|
1,944
|
|
|
$
|
1,951
|
|
|
Income taxes applicable to pretax operating earnings
|
$
|
342
|
|
|
$
|
359
|
|
|
$
|
694
|
|
|
$
|
731
|
|
|
Effect of foreign currency translation on after-tax
operating earnings |
(9
|
)
|
|
36
|
|
|
(3
|
)
|
|
49
|
|
|
(In millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Aflac Japan
|
|
$
|
113,497
|
|
|
|
|
$
|
107,858
|
|
|
Aflac U.S.
|
|
19,996
|
|
|
|
|
19,453
|
|
|
||
Other business segments
|
|
471
|
|
|
|
|
270
|
|
|
||
Total business segment assets
|
|
133,964
|
|
|
|
|
127,581
|
|
|
||
Corporate and eliminations
|
|
1,430
|
|
|
|
|
2,238
|
|
|
||
Total assets
|
|
$
|
135,394
|
|
|
|
|
$
|
129,819
|
|
|
3.
|
INVESTMENTS
|
|
June 30, 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
|
|
$
|
27,020
|
|
|
|
|
$
|
3,262
|
|
|
|
|
$
|
396
|
|
|
|
|
$
|
29,886
|
|
|
Municipalities
|
|
305
|
|
|
|
|
26
|
|
|
|
|
14
|
|
|
|
|
317
|
|
|
||||
Mortgage- and asset-backed securities
|
|
261
|
|
|
|
|
31
|
|
|
|
|
0
|
|
|
|
|
292
|
|
|
||||
Public utilities
|
|
1,654
|
|
|
|
|
367
|
|
|
|
|
8
|
|
|
|
|
2,013
|
|
|
||||
Sovereign and supranational
|
|
1,482
|
|
|
|
|
181
|
|
|
|
|
3
|
|
|
|
|
1,660
|
|
|
||||
Banks/financial institutions
|
|
3,150
|
|
|
|
|
460
|
|
|
|
|
64
|
|
|
|
|
3,546
|
|
|
||||
Other corporate
|
|
3,657
|
|
|
|
|
715
|
|
|
|
|
14
|
|
|
|
|
4,358
|
|
|
||||
Total yen-denominated
|
|
37,529
|
|
|
|
|
5,042
|
|
|
|
|
499
|
|
|
|
|
42,072
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
131
|
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
143
|
|
|
||||
Municipalities
|
|
891
|
|
|
|
|
143
|
|
|
|
|
7
|
|
|
|
|
1,027
|
|
|
||||
Mortgage- and asset-backed securities
|
|
175
|
|
|
|
|
13
|
|
|
|
|
0
|
|
|
|
|
188
|
|
|
||||
Public utilities
|
|
5,263
|
|
|
|
|
770
|
|
|
|
|
42
|
|
|
|
|
5,991
|
|
|
||||
Sovereign and supranational
|
|
326
|
|
|
|
|
88
|
|
|
|
|
0
|
|
|
|
|
414
|
|
|
||||
Banks/financial institutions
|
|
2,684
|
|
|
|
|
573
|
|
|
|
|
7
|
|
|
|
|
3,250
|
|
|
||||
Other corporate
|
|
24,959
|
|
|
|
|
2,267
|
|
|
|
|
554
|
|
|
|
|
26,672
|
|
|
||||
Total U.S. dollar-denominated
|
|
34,429
|
|
|
|
|
3,866
|
|
|
|
|
610
|
|
|
|
|
37,685
|
|
|
||||
Total fixed maturities
|
|
71,958
|
|
|
|
|
8,908
|
|
|
|
|
1,109
|
|
|
|
|
79,757
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
1,317
|
|
|
|
|
256
|
|
|
|
|
31
|
|
|
|
|
1,542
|
|
|
||||
Other corporate
|
|
197
|
|
|
|
|
31
|
|
|
|
|
0
|
|
|
|
|
228
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
46
|
|
|
|
|
27
|
|
|
|
|
0
|
|
|
|
|
73
|
|
|
||||
Total perpetual securities
|
|
1,560
|
|
|
|
|
314
|
|
|
|
|
31
|
|
|
|
|
1,843
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Yen-denominated
|
|
668
|
|
|
|
|
86
|
|
|
|
|
5
|
|
|
|
|
749
|
|
|
||||
U.S. dollar-denominated
|
|
621
|
|
|
|
|
47
|
|
|
|
|
14
|
|
|
|
|
654
|
|
|
||||
Total equity securities
|
|
1,289
|
|
|
|
|
133
|
|
|
|
|
19
|
|
|
|
|
1,403
|
|
|
||||
Total securities available for sale
|
|
$
|
74,807
|
|
|
|
|
$
|
9,355
|
|
|
|
|
$
|
1,159
|
|
|
|
|
$
|
83,003
|
|
|
|
June 30, 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
|
|
$
|
21,527
|
|
|
|
|
$
|
5,126
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,653
|
|
|
Municipalities
|
|
362
|
|
|
|
|
105
|
|
|
|
|
0
|
|
|
|
|
467
|
|
|
||||
Mortgage- and asset-backed securities
|
|
29
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
30
|
|
|
||||
Public utilities
|
|
3,329
|
|
|
|
|
450
|
|
|
|
|
0
|
|
|
|
|
3,779
|
|
|
||||
Sovereign and supranational
|
|
1,537
|
|
|
|
|
304
|
|
|
|
|
0
|
|
|
|
|
1,841
|
|
|
||||
Banks/financial institutions
|
|
3,119
|
|
|
|
|
218
|
|
|
|
|
15
|
|
|
|
|
3,322
|
|
|
||||
Other corporate
|
|
2,710
|
|
|
|
|
505
|
|
|
|
|
0
|
|
|
|
|
3,215
|
|
|
||||
Total yen-denominated
|
|
32,613
|
|
|
|
|
6,709
|
|
|
|
|
15
|
|
|
|
|
39,307
|
|
|
||||
Total securities held to maturity
|
|
$
|
32,613
|
|
|
|
|
$
|
6,709
|
|
|
|
|
$
|
15
|
|
|
|
|
$
|
39,307
|
|
|
|
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
|
|
$
|
140
|
|
|
|
|
$
|
153
|
|
|
|
|
$
|
114
|
|
|
|
|
$
|
117
|
|
|
Due after one year through five years
|
|
4,639
|
|
|
|
|
4,905
|
|
|
|
|
639
|
|
|
|
|
685
|
|
|
||||
Due after five years through 10 years
|
|
9,668
|
|
|
|
|
10,114
|
|
|
|
|
3,118
|
|
|
|
|
3,360
|
|
|
||||
Due after 10 years
|
|
44,106
|
|
|
|
|
49,639
|
|
|
|
|
8,500
|
|
|
|
|
9,688
|
|
|
||||
Mortgage- and asset-backed securities
|
|
304
|
|
|
|
|
346
|
|
|
|
|
40
|
|
|
|
|
42
|
|
|
||||
Total fixed maturities available for sale
|
|
$
|
58,857
|
|
|
|
|
$
|
65,157
|
|
|
|
|
$
|
12,411
|
|
|
|
|
$
|
13,892
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
491
|
|
|
|
|
$
|
504
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after one year through five years
|
|
929
|
|
|
|
|
981
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after five years through 10 years
|
|
1,648
|
|
|
|
|
1,826
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
29,516
|
|
|
|
|
35,965
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Mortgage- and asset-backed securities
|
|
29
|
|
|
|
|
31
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total fixed maturities held to maturity
|
|
$
|
32,613
|
|
|
|
|
$
|
39,307
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Due in one year or less
|
|
$
|
85
|
|
|
|
|
$
|
82
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after one year through five years
|
|
197
|
|
|
|
|
229
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
1,239
|
|
|
|
|
1,473
|
|
|
|
|
39
|
|
|
|
|
59
|
|
|
||||
Total perpetual securities available for sale
|
|
$
|
1,521
|
|
|
|
|
$
|
1,784
|
|
|
|
|
$
|
39
|
|
|
|
|
$
|
59
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
Japan National Government
(1)
|
A
|
|
$47,844
|
|
$55,723
|
|
A
|
|
$42,931
|
|
$51,345
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
||||||||
Gross gains from sales
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
17
|
|
|
$
|
8
|
|
|
Gross losses from sales
(1)
|
(16
|
)
|
|
(12
|
)
|
|
(31
|
)
|
|
(16
|
)
|
|
||||
Net gains (losses) from redemptions
|
(9
|
)
|
(1)
|
4
|
|
|
(37
|
)
|
(1)
|
87
|
|
|
||||
Other-than-temporary impairment losses
|
(3
|
)
|
|
(9
|
)
|
(1)
|
(7
|
)
|
|
(21
|
)
|
(1)
|
||||
Total fixed maturities
|
(23
|
)
|
|
(11
|
)
|
|
(58
|
)
|
|
58
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
||||||||
Net gains (losses) from redemptions
|
4
|
|
|
30
|
|
|
4
|
|
|
40
|
|
|
||||
Other-than-temporary impairment losses
|
0
|
|
|
0
|
|
|
0
|
|
|
(2
|
)
|
(1)
|
||||
Total perpetual securities
|
4
|
|
|
30
|
|
|
4
|
|
|
38
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Gross gains from sales
|
23
|
|
|
2
|
|
|
48
|
|
|
5
|
|
|
||||
Gross losses from sales
|
(2
|
)
|
|
(8
|
)
|
(1)
|
(2
|
)
|
|
(11
|
)
|
|
||||
Other-than-temporary impairment losses
|
(6
|
)
|
|
(24
|
)
|
|
(12
|
)
|
|
(24
|
)
|
|
||||
Total equity securities
|
15
|
|
|
(30
|
)
|
|
34
|
|
|
(30
|
)
|
|
||||
Derivatives and other:
|
|
|
|
|
|
|
|
|
||||||||
Derivative gains (losses)
|
(51
|
)
|
|
(167
|
)
|
|
(103
|
)
|
|
(171
|
)
|
|
||||
Foreign currency gains (losses)
|
(1
|
)
|
|
(45
|
)
|
|
(73
|
)
|
|
(89
|
)
|
|
||||
Total derivatives and other
|
(52
|
)
|
|
(212
|
)
|
|
(176
|
)
|
|
(260
|
)
|
|
||||
Total realized investment gains (losses)
|
$
|
(56
|
)
|
|
$
|
(223
|
)
|
|
$
|
(196
|
)
|
|
$
|
(194
|
)
|
|
(In millions)
|
June 30,
2017
|
|
December 31,
2016 |
||||||||
Unrealized gains (losses) on securities available for sale
|
|
$
|
8,196
|
|
|
|
|
$
|
7,630
|
|
|
Deferred income taxes
|
|
(3,023
|
)
|
|
|
|
(2,825
|
)
|
|
||
Shareholders’ equity, unrealized gains (losses) on investment securities
|
|
$
|
5,173
|
|
|
|
|
$
|
4,805
|
|
|
|
June 30, 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
|
|
$
|
6,241
|
|
|
|
|
$
|
396
|
|
|
|
|
$
|
6,234
|
|
|
|
|
$
|
395
|
|
|
|
|
$
|
7
|
|
|
|
|
$
|
1
|
|
|
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
45
|
|
|
|
|
7
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
45
|
|
|
|
|
7
|
|
|
||||||
Yen-denominated
|
|
128
|
|
|
|
|
14
|
|
|
|
|
116
|
|
|
|
|
11
|
|
|
|
|
12
|
|
|
|
|
3
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
1,121
|
|
|
|
|
42
|
|
|
|
|
623
|
|
|
|
|
14
|
|
|
|
|
498
|
|
|
|
|
28
|
|
|
||||||
Yen-denominated
|
|
96
|
|
|
|
|
8
|
|
|
|
|
96
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
42
|
|
|
|
|
3
|
|
|
|
|
42
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
232
|
|
|
|
|
7
|
|
|
|
|
216
|
|
|
|
|
5
|
|
|
|
|
16
|
|
|
|
|
2
|
|
|
||||||
Yen-denominated
|
|
1,523
|
|
|
|
|
79
|
|
|
|
|
590
|
|
|
|
|
27
|
|
|
|
|
933
|
|
|
|
|
52
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
8,252
|
|
|
|
|
554
|
|
|
|
|
4,772
|
|
|
|
|
155
|
|
|
|
|
3,480
|
|
|
|
|
399
|
|
|
||||||
Yen-denominated
|
|
169
|
|
|
|
|
14
|
|
|
|
|
132
|
|
|
|
|
13
|
|
|
|
|
37
|
|
|
|
|
1
|
|
|
||||||
Total fixed maturities
|
|
17,849
|
|
|
|
|
1,124
|
|
|
|
|
12,821
|
|
|
|
|
631
|
|
|
|
|
5,028
|
|
|
|
|
493
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
429
|
|
|
|
|
31
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
429
|
|
|
|
|
31
|
|
|
||||||
Total perpetual securities
|
|
429
|
|
|
|
|
31
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
429
|
|
|
|
|
31
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
268
|
|
|
|
|
14
|
|
|
|
|
255
|
|
|
|
|
11
|
|
|
|
|
13
|
|
|
|
|
3
|
|
|
||||||
Yen-denominated
|
|
99
|
|
|
|
|
5
|
|
|
|
|
80
|
|
|
|
|
3
|
|
|
|
|
19
|
|
|
|
|
2
|
|
|
||||||
Total equity securities
|
|
367
|
|
|
|
|
19
|
|
|
|
|
335
|
|
|
|
|
14
|
|
|
|
|
32
|
|
|
|
|
5
|
|
|
||||||
Total
|
|
$
|
18,645
|
|
|
|
|
$
|
1,174
|
|
|
|
|
$
|
13,156
|
|
|
|
|
$
|
645
|
|
|
|
|
$
|
5,489
|
|
|
|
|
$
|
529
|
|
|
|
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)
|
June 30,
2017
|
|
December 31,
2016
|
||||||||
Other investments:
|
|
|
|
|
|
|
|
||||
Commercial mortgage loans
|
|
$
|
1,052
|
|
|
|
|
$
|
855
|
|
|
Middle market loans
|
|
578
|
|
|
|
|
319
|
|
|
||
Short-term investments
|
|
138
|
|
|
|
|
89
|
|
|
||
Policy loans
|
|
201
|
|
|
|
|
184
|
|
|
||
Other
|
|
47
|
|
|
|
|
3
|
|
|
||
Total other investments
|
|
$
|
2,016
|
|
|
|
|
$
|
1,450
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(In millions)
|
Cost or Amortized
Cost |
|
Fair
Value |
|
Cost or Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
4,149
|
|
|
|
|
$
|
5,059
|
|
|
|
|
$
|
4,168
|
|
|
|
|
$
|
4,982
|
|
|
Perpetual securities, available for sale
|
|
241
|
|
|
|
|
216
|
|
|
|
|
237
|
|
|
|
|
208
|
|
|
||||
Equity securities
|
|
1,032
|
|
|
|
|
1,123
|
|
|
|
|
972
|
|
|
|
|
1,044
|
|
|
||||
Other investments
(1)
|
|
1,200
|
|
|
|
|
1,186
|
|
|
|
|
819
|
|
|
|
|
789
|
|
|
||||
Other assets
(2)
|
|
142
|
|
|
|
|
142
|
|
|
|
|
127
|
|
|
|
|
127
|
|
|
||||
Total assets of consolidated VIEs
|
|
$
|
6,764
|
|
|
|
|
$
|
7,726
|
|
|
|
|
$
|
6,323
|
|
|
|
|
$
|
7,150
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
(2)
|
|
$
|
133
|
|
|
|
|
$
|
133
|
|
|
|
|
$
|
146
|
|
|
|
|
$
|
146
|
|
|
Total liabilities of consolidated VIEs
|
|
$
|
133
|
|
|
|
|
$
|
133
|
|
|
|
|
$
|
146
|
|
|
|
|
$
|
146
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
4,832
|
|
|
|
|
$
|
5,433
|
|
|
|
|
$
|
4,729
|
|
|
|
|
$
|
5,261
|
|
|
Perpetual securities, available for sale
|
|
179
|
|
|
|
|
230
|
|
|
|
|
172
|
|
|
|
|
200
|
|
|
||||
Fixed maturities, held to maturity
|
|
2,662
|
|
|
|
|
3,085
|
|
|
|
|
2,563
|
|
|
|
|
2,948
|
|
|
||||
Other investments
|
|
47
|
|
|
|
|
48
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||
Total investments in VIEs not consolidated
|
|
$
|
7,720
|
|
|
|
|
$
|
8,796
|
|
|
|
|
$
|
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
|
|
|
June 30, 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
|
|
|
|
|
$
|
(8
|
)
|
|
|
$
|
75
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(10
|
)
|
|
|
Total cash flow hedges
|
|
75
|
|
|
|
|
0
|
|
|
|
|
(8
|
)
|
|
|
75
|
|
|
|
|
0
|
|
|
|
|
(10
|
)
|
|
|
||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forwards
|
|
9,268
|
|
|
|
|
0
|
|
|
|
|
(469
|
)
|
|
|
10,965
|
|
|
|
|
0
|
|
|
|
|
(759
|
)
|
|
|
||||||
Foreign currency options
|
|
5,585
|
|
|
|
|
0
|
|
|
|
|
(6
|
)
|
|
|
4,224
|
|
|
|
|
2
|
|
|
|
|
(32
|
)
|
|
|
||||||
Total fair value hedges
|
|
14,853
|
|
|
|
|
0
|
|
|
|
|
(475
|
)
|
|
|
15,189
|
|
|
|
|
2
|
|
|
|
|
(791
|
)
|
|
|
||||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forwards
|
|
287
|
|
|
|
|
2
|
|
|
|
|
(3
|
)
|
|
|
209
|
|
|
|
|
5
|
|
|
|
|
(2
|
)
|
|
|
||||||
Foreign currency options
|
|
926
|
|
|
|
|
20
|
|
|
|
|
(10
|
)
|
|
|
843
|
|
|
|
|
41
|
|
|
|
|
(17
|
)
|
|
|
||||||
Total net investment hedge
|
|
1,213
|
|
|
|
|
22
|
|
|
|
|
(13
|
)
|
|
|
1,052
|
|
|
|
|
46
|
|
|
|
|
(19
|
)
|
|
|
||||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
5,882
|
|
|
|
|
307
|
|
|
|
|
(191
|
)
|
|
|
6,266
|
|
|
|
|
490
|
|
|
|
|
(220
|
)
|
|
|
||||||
Foreign currency forwards
|
|
10,676
|
|
|
|
|
212
|
|
|
|
|
(434
|
)
|
|
|
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
|
|
16,647
|
|
|
|
|
521
|
|
|
|
|
(625
|
)
|
|
|
27,611
|
|
|
|
|
1,159
|
|
|
|
|
(1,178
|
)
|
|
|
||||||
Total derivatives
|
|
$
|
32,788
|
|
|
|
|
$
|
543
|
|
|
|
|
$
|
(1,121
|
)
|
|
|
$
|
43,927
|
|
|
|
|
$
|
1,207
|
|
|
|
|
$
|
(1,998
|
)
|
|
|
Balance Sheet Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets
|
|
$
|
12,108
|
|
|
|
|
$
|
543
|
|
|
|
|
$
|
0
|
|
|
|
$
|
18,329
|
|
|
|
|
$
|
1,207
|
|
|
|
|
$
|
0
|
|
|
|
Other liabilities
|
|
20,680
|
|
|
|
|
0
|
|
|
|
|
(1,121
|
)
|
|
|
25,598
|
|
|
|
|
0
|
|
|
|
|
(1,998
|
)
|
|
|
||||||
Total derivatives
|
|
$
|
32,788
|
|
|
|
|
$
|
543
|
|
|
|
|
$
|
(1,121
|
)
|
|
|
$
|
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 June 30, 2017:
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency
forwards |
Fixed-maturity and equity securities
|
|
$
|
(34
|
)
|
|
$
|
(50
|
)
|
|
$
|
16
|
|
|
$
|
(15
|
)
|
|
$
|
1
|
|
Foreign currency
options |
Fixed-maturity securities
|
|
(7
|
)
|
|
(7
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Six Months Ended June 30, 2017:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency forwards
|
Fixed-maturity and equity securities
|
|
$
|
307
|
|
|
$
|
(98
|
)
|
|
$
|
405
|
|
|
$
|
(387
|
)
|
|
$
|
18
|
|
Foreign currency options
|
Fixed-maturity securities
|
|
17
|
|
|
6
|
|
|
11
|
|
|
(10
|
)
|
|
1
|
|
|||||
Three Months Ended June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency
forwards |
Fixed-maturity securities
|
|
$
|
1,156
|
|
|
$
|
(48
|
)
|
|
$
|
1,204
|
|
|
$
|
(1,236
|
)
|
|
$
|
(32
|
)
|
Foreign currency options
|
Fixed-maturity securities
|
|
7
|
|
|
7
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Six Months Ended June 30, 2016:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency forwards
|
Fixed-maturity securities
|
|
$
|
2,013
|
|
|
$
|
(92
|
)
|
|
$
|
2,105
|
|
|
$
|
(2,118
|
)
|
|
$
|
(13
|
)
|
Foreign currency options
|
Fixed-maturity securities
|
|
6
|
|
|
6
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
||||||||||||||||||||||||||||||||||||
(In millions)
|
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
||||||||||||||||||||||||||||||||
Qualifying hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash flow
hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign
currency
swaps
|
|
$
|
0
|
|
|
|
$
|
(2
|
)
|
|
|
$
|
1
|
|
|
|
$
|
8
|
|
|
|
$
|
0
|
|
|
|
$
|
1
|
|
|
|
$
|
1
|
|
|
|
$
|
11
|
|
|
Total cash flow
hedges
|
|
0
|
|
|
|
(2
|
)
|
|
|
1
|
|
|
|
8
|
|
|
|
0
|
|
|
|
1
|
|
|
|
1
|
|
|
|
11
|
|
|
||||||||
Fair value
hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign
currency
forwards
(2)
|
|
(49
|
)
|
|
|
0
|
|
|
|
(80
|
)
|
|
|
0
|
|
|
|
(80
|
)
|
|
|
0
|
|
|
|
(105
|
)
|
|
|
0
|
|
|
||||||||
Foreign
currency
options
(2)
|
|
(7
|
)
|
|
|
0
|
|
|
|
7
|
|
|
|
0
|
|
|
|
7
|
|
|
|
0
|
|
|
|
6
|
|
|
|
0
|
|
|
||||||||
Total fair value
hedges
|
|
(56
|
)
|
|
|
0
|
|
|
|
(73
|
)
|
|
|
0
|
|
|
|
(73
|
)
|
|
|
0
|
|
|
|
(99
|
)
|
|
|
0
|
|
|
||||||||
Net investment
hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-
derivative
hedging
instruments
|
|
0
|
|
|
|
(1
|
)
|
|
|
0
|
|
|
|
(22
|
)
|
|
|
0
|
|
|
|
(18
|
)
|
|
|
0
|
|
|
|
(37
|
)
|
|
||||||||
Foreign
currency
forwards
|
|
0
|
|
|
|
(19
|
)
|
|
|
0
|
|
|
|
(83
|
)
|
|
|
0
|
|
|
|
(28
|
)
|
|
|
0
|
|
|
|
(133
|
)
|
|
||||||||
Foreign
currency
options
|
|
0
|
|
|
|
31
|
|
|
|
0
|
|
|
|
(15
|
)
|
|
|
0
|
|
|
|
8
|
|
|
|
0
|
|
|
|
(31
|
)
|
|
||||||||
Total net
investment
hedge
|
|
0
|
|
|
|
11
|
|
|
|
0
|
|
|
|
(120
|
)
|
|
|
0
|
|
|
|
(38
|
)
|
|
|
0
|
|
|
|
(201
|
)
|
|
||||||||
Non-qualifying
strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Foreign
currency
swaps
|
|
34
|
|
|
|
0
|
|
|
|
(104
|
)
|
|
|
0
|
|
|
|
26
|
|
|
|
0
|
|
|
|
(94
|
)
|
|
|
0
|
|
|
||||||||
Foreign
currency
forwards
|
|
(29
|
)
|
|
|
0
|
|
|
|
10
|
|
|
|
0
|
|
|
|
(56
|
)
|
|
|
0
|
|
|
|
21
|
|
|
|
0
|
|
|
||||||||
Credit
default
swaps
|
|
0
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||||
Total non-
qualifying
strategies
|
|
5
|
|
|
|
0
|
|
|
|
(95
|
)
|
|
|
0
|
|
|
|
(30
|
)
|
|
|
0
|
|
|
|
(73
|
)
|
|
|
0
|
|
|
||||||||
Total
|
|
$
|
(51
|
)
|
|
|
$
|
9
|
|
|
|
$
|
(167
|
)
|
|
|
$
|
(112
|
)
|
|
|
$
|
(103
|
)
|
|
|
$
|
(37
|
)
|
|
|
$
|
(171
|
)
|
|
|
$
|
(190
|
)
|
|
|
June 30, 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
|
|
$
|
24,508
|
|
|
|
$
|
385
|
|
|
|
$
|
(977
|
)
|
|
|
$
|
6,844
|
|
|
|
$
|
247
|
|
|
|
$
|
(308
|
)
|
|
A
|
|
7,839
|
|
|
|
149
|
|
|
|
(76
|
)
|
|
|
36,019
|
|
|
|
900
|
|
|
|
(1,621
|
)
|
|
||||||
BBB
|
|
441
|
|
|
|
9
|
|
|
|
(68
|
)
|
|
|
1,064
|
|
|
|
60
|
|
|
|
(69
|
)
|
|
||||||
Total
|
|
$
|
32,788
|
|
|
|
$
|
543
|
|
|
|
$
|
(1,121
|
)
|
|
|
$
|
43,927
|
|
|
|
$
|
1,207
|
|
|
|
$
|
(1,998
|
)
|
|
June 30, 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
|
|
$
|
401
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
401
|
|
|
|
|
$
|
(285
|
)
|
|
|
$
|
0
|
|
|
|
$
|
(114
|
)
|
|
|
|
$
|
2
|
|
|
Derivative
assets not subject
to a master netting
agreement or
offsetting
arrangement
|
|
142
|
|
|
|
|
|
|
|
|
142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142
|
|
|
|||||||||||
Total derivative
assets
|
|
543
|
|
|
|
|
0
|
|
|
|
|
543
|
|
|
|
|
(285
|
)
|
|
|
0
|
|
|
|
(114
|
)
|
|
|
|
144
|
|
|
|||||||
Securities lending
and similar
arrangements
|
|
647
|
|
|
|
|
0
|
|
|
|
|
647
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(647
|
)
|
|
|
|
0
|
|
|
|||||||
Total
|
|
$
|
1,190
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
1,190
|
|
|
|
|
$
|
(285
|
)
|
|
|
$
|
0
|
|
|
|
$
|
(761
|
)
|
|
|
|
$
|
144
|
|
|
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
|
|
|
June 30, 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
|
|
$
|
(988
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(988
|
)
|
|
|
|
$
|
285
|
|
|
|
$
|
697
|
|
|
|
$
|
7
|
|
|
|
|
$
|
1
|
|
|
Derivative
liabilities not
subject to a
master netting
agreement or
offsetting
arrangement
|
|
(133
|
)
|
|
|
|
|
|
|
|
(133
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(133
|
)
|
|
|||||||||||
Total derivative
liabilities
|
|
(1,121
|
)
|
|
|
|
0
|
|
|
|
|
(1,121
|
)
|
|
|
|
285
|
|
|
|
697
|
|
|
|
7
|
|
|
|
|
(132
|
)
|
|
|||||||
Securities lending
and similar
arrangements
|
|
(663
|
)
|
|
|
|
0
|
|
|
|
|
(663
|
)
|
|
|
|
647
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
(16
|
)
|
|
|||||||
Total
|
|
$
|
(1,784
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(1,784
|
)
|
|
|
|
$
|
932
|
|
|
|
$
|
697
|
|
|
|
$
|
7
|
|
|
|
|
$
|
(148
|
)
|
|
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
|
|
June 30, 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
|
|
$
|
29,129
|
|
|
|
|
$
|
900
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
30,029
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,344
|
|
|
|
|
0
|
|
|
|
|
1,344
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
292
|
|
|
|
|
188
|
|
|
|
|
480
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
7,951
|
|
|
|
|
53
|
|
|
|
|
8,004
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
2,074
|
|
|
|
|
0
|
|
|
|
|
2,074
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
6,771
|
|
|
|
|
25
|
|
|
|
|
6,796
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
30,953
|
|
|
|
|
77
|
|
|
|
|
31,030
|
|
|
||||
Total fixed maturities
|
|
29,129
|
|
|
|
|
50,285
|
|
|
|
|
343
|
|
|
|
|
79,757
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
1,615
|
|
|
|
|
0
|
|
|
|
|
1,615
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
228
|
|
|
|
|
0
|
|
|
|
|
228
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
1,843
|
|
|
|
|
0
|
|
|
|
|
1,843
|
|
|
||||
Equity securities
|
|
1,383
|
|
|
|
|
6
|
|
|
|
|
14
|
|
|
|
|
1,403
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
167
|
|
|
|
|
140
|
|
|
|
|
307
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
214
|
|
|
|
|
0
|
|
|
|
|
214
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
20
|
|
|
|
|
0
|
|
|
|
|
20
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
401
|
|
|
|
|
142
|
|
|
|
|
543
|
|
|
||||
Other investments
|
|
138
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
138
|
|
|
||||
Cash and cash equivalents
|
|
4,264
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4,264
|
|
|
||||
Total assets
|
|
$
|
34,914
|
|
|
|
|
$
|
52,535
|
|
|
|
|
$
|
499
|
|
|
|
|
$
|
87,948
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
66
|
|
|
|
|
$
|
133
|
|
|
|
|
$
|
199
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
906
|
|
|
|
|
0
|
|
|
|
|
906
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
16
|
|
|
|
|
0
|
|
|
|
|
16
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
988
|
|
|
|
|
$
|
133
|
|
|
|
|
$
|
1,121
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other 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
|
|
|
|
June 30, 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
|
|
$
|
21,527
|
|
|
|
$
|
26,653
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,653
|
|
|
Municipalities
|
|
362
|
|
|
|
0
|
|
|
|
|
467
|
|
|
|
|
0
|
|
|
|
|
467
|
|
|
|||||
Mortgage and asset-backed
securities |
|
29
|
|
|
|
0
|
|
|
|
|
9
|
|
|
|
|
21
|
|
|
|
|
30
|
|
|
|||||
Public utilities
|
|
3,329
|
|
|
|
0
|
|
|
|
|
3,779
|
|
|
|
|
0
|
|
|
|
|
3,779
|
|
|
|||||
Sovereign and
supranational |
|
1,537
|
|
|
|
0
|
|
|
|
|
1,841
|
|
|
|
|
0
|
|
|
|
|
1,841
|
|
|
|||||
Banks/financial institutions
|
|
3,119
|
|
|
|
0
|
|
|
|
|
3,322
|
|
|
|
|
0
|
|
|
|
|
3,322
|
|
|
|||||
Other corporate
|
|
2,710
|
|
|
|
0
|
|
|
|
|
3,215
|
|
|
|
|
0
|
|
|
|
|
3,215
|
|
|
|||||
Other investments
(1)
|
|
1,630
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
1,616
|
|
|
|
|
1,616
|
|
|
|||||
Total assets
|
|
$
|
34,243
|
|
|
|
$
|
26,653
|
|
|
|
|
$
|
12,633
|
|
|
|
|
$
|
1,637
|
|
|
|
|
$
|
40,923
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
6,978
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
6,859
|
|
|
|
|
$
|
6,859
|
|
|
Notes payable
(excluding capital leases) |
|
5,234
|
|
|
|
507
|
|
|
|
|
4,783
|
|
|
|
|
267
|
|
|
|
|
5,557
|
|
|
|||||
Total liabilities
|
|
$
|
12,212
|
|
|
|
$
|
507
|
|
|
|
|
$
|
4,783
|
|
|
|
|
$
|
7,126
|
|
|
|
|
$
|
12,416
|
|
|
|
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
|
|
|
|
|
June 30, 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
|
|
|
$
|
29,129
|
|
|
|
|
$
|
900
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
30,029
|
|
|
Total government and agencies
|
|
|
29,129
|
|
|
|
|
900
|
|
|
|
|
0
|
|
|
|
|
30,029
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,344
|
|
|
|
|
0
|
|
|
|
|
1,344
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,344
|
|
|
|
|
0
|
|
|
|
|
1,344
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
292
|
|
|
|
|
0
|
|
|
|
|
292
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
188
|
|
|
|
|
188
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
292
|
|
|
|
|
188
|
|
|
|
|
480
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7,951
|
|
|
|
|
0
|
|
|
|
|
7,951
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
53
|
|
|
|
|
53
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
7,951
|
|
|
|
|
53
|
|
|
|
|
8,004
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,074
|
|
|
|
|
0
|
|
|
|
|
2,074
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
2,074
|
|
|
|
|
0
|
|
|
|
|
2,074
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
6,771
|
|
|
|
|
0
|
|
|
|
|
6,771
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
25
|
|
|
|
|
25
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
6,771
|
|
|
|
|
25
|
|
|
|
|
6,796
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
30,953
|
|
|
|
|
0
|
|
|
|
|
30,953
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
77
|
|
|
|
|
77
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
30,953
|
|
|
|
|
77
|
|
|
|
|
31,030
|
|
|
||||
Total fixed maturities
|
|
|
29,129
|
|
|
|
|
50,285
|
|
|
|
|
343
|
|
|
|
|
79,757
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,615
|
|
|
|
|
0
|
|
|
|
|
1,615
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
1,615
|
|
|
|
|
0
|
|
|
|
|
1,615
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
228
|
|
|
|
|
0
|
|
|
|
|
228
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
228
|
|
|
|
|
0
|
|
|
|
|
228
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
1,843
|
|
|
|
|
0
|
|
|
|
|
1,843
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
1,383
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
1,389
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
14
|
|
|
|
|
14
|
|
|
||||
Total equity securities
|
|
|
1,383
|
|
|
|
|
6
|
|
|
|
|
14
|
|
|
|
|
1,403
|
|
|
||||
Total securities available for sale
|
|
|
$
|
30,512
|
|
|
|
|
$
|
52,134
|
|
|
|
|
$
|
357
|
|
|
|
|
$
|
83,003
|
|
|
|
|
June 30, 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
|
|
|
$
|
26,653
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,653
|
|
|
Total government and agencies
|
|
|
26,653
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
26,653
|
|
|
||||
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
|
|
|
|
|
9
|
|
|
|
|
0
|
|
|
|
|
9
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
21
|
|
|
|
|
21
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
9
|
|
|
|
|
21
|
|
|
|
|
30
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,779
|
|
|
|
|
0
|
|
|
|
|
3,779
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
3,779
|
|
|
|
|
0
|
|
|
|
|
3,779
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,841
|
|
|
|
|
0
|
|
|
|
|
1,841
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,841
|
|
|
|
|
0
|
|
|
|
|
1,841
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,322
|
|
|
|
|
0
|
|
|
|
|
3,322
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
3,322
|
|
|
|
|
0
|
|
|
|
|
3,322
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,215
|
|
|
|
|
0
|
|
|
|
|
3,215
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
3,215
|
|
|
|
|
0
|
|
|
|
|
3,215
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
26,653
|
|
|
|
|
$
|
12,633
|
|
|
|
|
$
|
21
|
|
|
|
|
$
|
39,307
|
|
|
|
|
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
June 30, 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
|
$
|
195
|
|
|
$
|
16
|
|
|
$
|
24
|
|
|
$
|
35
|
|
|
$
|
4
|
|
|
$
|
19
|
|
|
$
|
2
|
|
|
$
|
295
|
|
|
Realized investment gains (losses) included
in earnings
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(10
|
)
|
|
0
|
|
|
(10
|
)
|
|
||||||||
Unrealized gains (losses) included in other
comprehensive income (loss)
|
0
|
|
|
0
|
|
|
1
|
|
|
2
|
|
|
0
|
|
|
(2
|
)
|
|
0
|
|
|
1
|
|
|
||||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchases
|
0
|
|
|
37
|
|
|
0
|
|
|
40
|
|
|
10
|
|
|
0
|
|
|
0
|
|
|
87
|
|
|
||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Sales
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Settlements
|
(7
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(7
|
)
|
|
||||||||
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
|
$
|
188
|
|
|
$
|
53
|
|
|
$
|
25
|
|
|
$
|
77
|
|
|
$
|
14
|
|
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
366
|
|
|
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
|
|
|
$
|
(10
|
)
|
|
$
|
0
|
|
|
$
|
(10
|
)
|
|
Three Months Ended
June 30, 2016 |
||||||||||||||||||||||||||||||||
|
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
|
$
|
237
|
|
|
$
|
0
|
|
|
$
|
26
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
(63
|
)
|
|
$
|
2
|
|
|
$
|
205
|
|
|
Realized investment gains (losses) included in
earnings |
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
123
|
|
|
(1
|
)
|
|
122
|
|
|
||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
26
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
25
|
|
|
||||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchases
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Sales
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Settlements
|
(11
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(11
|
)
|
|
||||||||
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
|
$
|
252
|
|
|
$
|
0
|
|
|
$
|
26
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
59
|
|
|
$
|
1
|
|
|
$
|
341
|
|
|
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
|
|
|
$
|
123
|
|
|
$
|
(1
|
)
|
|
$
|
122
|
|
|
Six Months Ended
June 30, 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
|
|
|
28
|
|
|
0
|
|
|
28
|
|
|
||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
6
|
|
|
0
|
|
|
0
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
8
|
|
|
||||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchases
|
0
|
|
|
37
|
|
|
0
|
|
|
75
|
|
|
12
|
|
|
0
|
|
|
0
|
|
|
124
|
|
|
||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Sales
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
||||||||
Settlements
|
(16
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(16
|
)
|
|
||||||||
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
|
$
|
188
|
|
|
$
|
53
|
|
|
$
|
25
|
|
|
$
|
77
|
|
|
$
|
14
|
|
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
366
|
|
|
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
|
|
|
$
|
28
|
|
|
$
|
0
|
|
|
$
|
28
|
|
|
Six Months Ended
June 30, 2016 |
||||||||||||||||||||||||||||||||
|
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
|
$
|
220
|
|
|
$
|
0
|
|
|
$
|
26
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
(192
|
)
|
|
$
|
1
|
|
|
$
|
58
|
|
|
Realized investment gains (losses) included
in earnings
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
268
|
|
|
0
|
|
|
268
|
|
|
||||||||
Unrealized gains (losses) included in other
comprehensive income (loss)
|
47
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(16
|
)
|
|
0
|
|
|
31
|
|
|
||||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchases
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Sales
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Settlements
|
(15
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
(16
|
)
|
|
||||||||
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
|
$
|
252
|
|
|
$
|
0
|
|
|
$
|
26
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
59
|
|
|
$
|
1
|
|
|
$
|
341
|
|
|
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
|
|
|
$
|
268
|
|
|
$
|
0
|
|
|
$
|
268
|
|
|
June 30, 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
|
|
|
$
|
188
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
Public utilities
|
|
|
53
|
|
|
|
Discounted cash flow
|
|
Historical volatility
|
|
N/A
|
(d)
|
|
Banks/financial institutions
|
|
|
25
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(d)
|
|
Other corporate
|
|
|
77
|
|
|
|
Discounted cash flow
|
|
Historical volatility
|
|
N/A
|
(e)
|
|
Equity securities
|
|
|
14
|
|
|
|
Net asset value
|
|
Offered quotes
|
|
$1 - $729 ($6)
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
25
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.30% - 2.58%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.28% - .85%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
7 - 128 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.15%
|
(c)
|
||
|
|
|
42
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.30% - 2.58%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.28% - .85%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
11 - 73 bps
|
|
||
|
|
|
73
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.30% - 2.58%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.28% - .85%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.15%
|
(c)
|
||
Credit default swaps
|
|
|
2
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
54.48% - 59.52%
|
(e)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
19 bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
36.58%
|
|
||
Total assets
|
|
|
$
|
499
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
$
|
111
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.30% - 2.58%
|
(a)
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.28% - .85%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
7 - 128 bps
|
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.15%
|
(c)
|
||
|
|
|
14
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.30% - 2.58%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.28% - .85%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
14 - 162 bps
|
|
||
|
|
|
8
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.30% - 2.58%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.28% - .85%
|
(b)
|
||
|
|
|
|
|
|
|
|
Foreign exchange rates
|
|
21.15%
|
(c)
|
||
Total liabilities
|
|
|
$
|
133
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
||
Other 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
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
||||||||||||||||
(In millions)
|
|
2017
|
|
2016
|
|
|
|
2017
|
|
2016
|
|
|
||||||||
Unpaid supplemental health claims, beginning of period
|
|
$
|
3,854
|
|
|
$
|
3,710
|
|
|
|
|
$
|
3,707
|
|
|
$
|
3,548
|
|
|
|
Less reinsurance recoverables
|
|
30
|
|
|
28
|
|
|
|
|
27
|
|
|
26
|
|
|
|
||||
Net balance, beginning of period
|
|
3,824
|
|
|
3,682
|
|
|
|
|
3,680
|
|
|
3,522
|
|
|
|
||||
Add claims incurred during the period related to:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Current year
|
|
1,772
|
|
|
1,790
|
|
|
|
|
3,520
|
|
|
3,498
|
|
|
|
||||
Prior years
|
|
(138
|
)
|
|
(81
|
)
|
|
|
|
(260
|
)
|
|
(229
|
)
|
|
|
||||
Total incurred
|
|
1,634
|
|
|
1,709
|
|
|
|
|
3,260
|
|
|
3,269
|
|
|
|
||||
Less claims paid during the period on claims incurred during:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Current year
|
|
1,220
|
|
|
1,266
|
|
|
|
|
1,721
|
|
|
1,748
|
|
|
|
||||
Prior years
|
|
400
|
|
|
412
|
|
|
|
|
1,461
|
|
|
1,469
|
|
|
|
||||
Total paid
|
|
1,620
|
|
|
1,678
|
|
|
|
|
3,182
|
|
|
3,217
|
|
|
|
||||
Effect of foreign exchange rate changes on unpaid claims
|
|
4
|
|
|
198
|
|
|
|
|
84
|
|
|
337
|
|
|
|
||||
Net balance, end of period
|
|
3,842
|
|
|
3,911
|
|
|
|
|
3,842
|
|
|
3,911
|
|
|
|
||||
Add reinsurance recoverables
|
|
30
|
|
|
30
|
|
|
|
|
30
|
|
|
30
|
|
|
|
||||
Unpaid supplemental health claims, end of period
|
|
3,872
|
|
|
3,941
|
|
|
|
|
3,872
|
|
|
3,941
|
|
|
|
||||
Unpaid life claims, end of period
|
|
409
|
|
|
318
|
|
|
|
|
409
|
|
|
318
|
|
|
|
||||
Total liability for unpaid policy claims
|
|
$
|
4,281
|
|
|
$
|
4,259
|
|
|
|
|
$
|
4,281
|
|
|
$
|
4,259
|
|
|
|
7.
|
REINSURANCE
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
Direct premium income
|
|
$
|
4,752
|
|
|
|
|
$
|
4,915
|
|
|
|
|
$
|
9,476
|
|
|
|
|
$
|
9,605
|
|
|
Ceded to other companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ceded Aflac Japan closed blocks
|
|
(130
|
)
|
|
|
|
(141
|
)
|
|
|
|
(260
|
)
|
|
|
|
(275
|
)
|
|
||||
Other
|
|
(13
|
)
|
|
|
|
(12
|
)
|
|
|
|
(25
|
)
|
|
|
|
(24
|
)
|
|
||||
Assumed from other companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retrocession activities
|
|
55
|
|
|
|
|
59
|
|
|
|
|
109
|
|
|
|
|
115
|
|
|
||||
Other
|
|
1
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
4
|
|
|
||||
Net premium income
|
|
$
|
4,665
|
|
|
|
|
$
|
4,823
|
|
|
|
|
$
|
9,303
|
|
|
|
|
$
|
9,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Direct benefits and claims
|
|
$
|
3,117
|
|
|
|
|
$
|
3,332
|
|
|
|
|
$
|
6,246
|
|
|
|
|
$
|
6,435
|
|
|
Ceded benefits and change in reserves for future benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ceded Aflac Japan closed blocks
|
|
(119
|
)
|
|
|
|
(129
|
)
|
|
|
|
(241
|
)
|
|
|
|
(250
|
)
|
|
||||
Eliminations
|
|
13
|
|
|
|
|
15
|
|
|
|
|
26
|
|
|
|
|
29
|
|
|
||||
Other
|
|
(11
|
)
|
|
|
|
(7
|
)
|
|
|
|
(22
|
)
|
|
|
|
(17
|
)
|
|
||||
Assumed from other companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Retrocession activities
|
|
52
|
|
|
|
|
56
|
|
|
|
|
106
|
|
|
|
|
109
|
|
|
||||
Eliminations
|
|
(13
|
)
|
|
|
|
(15
|
)
|
|
|
|
(26
|
)
|
|
|
|
(29
|
)
|
|
||||
Other
|
|
0
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
||||
Benefits and claims, net
|
|
$
|
3,039
|
|
|
|
|
$
|
3,254
|
|
|
|
|
$
|
6,091
|
|
|
|
|
$
|
6,279
|
|
|
8.
|
NOTES PAYABLE
|
(In millions)
|
June 30,
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
|
|
694
|
|
|
|
|
696
|
|
|
||
3.625% senior notes due November 2024
|
|
743
|
|
|
|
|
745
|
|
|
||
3.25% senior notes due March 2025
|
|
445
|
|
|
|
|
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
|
|
256
|
|
|
|
|
254
|
|
|
||
4.00% senior notes due October 2046
|
|
394
|
|
|
|
|
394
|
|
|
||
5.50% subordinated debentures due September 2052
|
|
494
|
|
|
|
|
486
|
|
|
||
Yen-denominated senior notes:
|
|
|
|
|
|
|
|
||||
.932% senior notes due January 2027 (principal amount 60.0 billion yen)
|
|
532
|
|
|
|
|
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
|
|
18
|
|
|
|
|
21
|
|
|
||
Total notes payable
|
|
$
|
5,252
|
|
|
|
|
$
|
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
|
788
|
|
|
1,041
|
|
Balance, end of period
|
672,037
|
|
|
670,764
|
|
Treasury stock:
|
|
|
|
||
Balance, beginning of period
|
265,439
|
|
|
245,343
|
|
Purchases of treasury stock:
|
|
|
|
||
Open market
|
11,155
|
|
|
16,026
|
|
Other
|
170
|
|
|
224
|
|
Dispositions of treasury stock:
|
|
|
|
||
Shares issued to AFL Stock Plan
|
(498
|
)
|
|
(594
|
)
|
Exercise of stock options
|
(206
|
)
|
|
(238
|
)
|
Other
|
(22
|
)
|
|
(112
|
)
|
Balance, end of period
|
276,038
|
|
|
260,649
|
|
Shares outstanding, end of period
|
395,999
|
|
|
410,115
|
|
Three Months Ended
June 30, 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
|
|
$
|
(1,650
|
)
|
|
|
|
$
|
4,474
|
|
|
|
|
$
|
(22
|
)
|
|
|
|
$
|
(170
|
)
|
|
|
|
$
|
2,632
|
|
|
Other comprehensive
income (loss) before reclassification |
|
70
|
|
|
|
|
698
|
|
|
|
|
(1
|
)
|
|
|
|
(2
|
)
|
|
|
|
765
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
4
|
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
70
|
|
|
|
|
699
|
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
|
|
|
769
|
|
|
|||||
Balance, end of period
|
|
$
|
(1,580
|
)
|
|
|
|
$
|
5,173
|
|
|
|
|
$
|
(23
|
)
|
|
|
|
$
|
(169
|
)
|
|
|
|
$
|
3,401
|
|
|
Three Months Ended
June 30, 2016 |
|||||||||||||||||||||||||||||
(In millions)
|
Unrealized Foreign
Currency Translation Gains (Losses) |
|
Unrealized
Gains (Losses) on Investment Securities |
|
Unrealized
Gains (Losses) on Derivatives |
|
Pension Liability Adjustment
|
|
Total
|
||||||||||||||||||||
Balance, beginning of period
|
|
$
|
(1,584
|
)
|
|
|
|
$
|
4,684
|
|
|
|
|
$
|
(24
|
)
|
|
|
|
$
|
(140
|
)
|
|
|
|
$
|
2,936
|
|
|
Other comprehensive
income (loss) before reclassification |
|
737
|
|
|
|
|
1,750
|
|
|
|
|
5
|
|
|
|
|
(4
|
)
|
|
|
|
2,488
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
7
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
8
|
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
737
|
|
|
|
|
1,757
|
|
|
|
|
5
|
|
|
|
|
(3
|
)
|
|
|
|
2,496
|
|
|
|||||
Balance, end of period
|
|
$
|
(847
|
)
|
|
|
|
$
|
6,441
|
|
|
|
|
$
|
(19
|
)
|
|
|
|
$
|
(143
|
)
|
|
|
|
$
|
5,432
|
|
|
Six Months Ended
June 30, 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 |
|
403
|
|
|
|
|
357
|
|
|
|
|
1
|
|
|
|
|
(6
|
)
|
|
|
|
755
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
11
|
|
|
|
|
0
|
|
|
|
|
5
|
|
|
|
|
16
|
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
403
|
|
|
|
|
368
|
|
|
|
|
1
|
|
|
|
|
(1
|
)
|
|
|
|
771
|
|
|
|||||
Balance, end of period
|
|
$
|
(1,580
|
)
|
|
|
|
$
|
5,173
|
|
|
|
|
$
|
(23
|
)
|
|
|
|
$
|
(169
|
)
|
|
|
|
$
|
3,401
|
|
|
Six Months Ended
June 30, 2016 |
|||||||||||||||||||||||||||||
(In millions)
|
Unrealized Foreign
Currency Translation Gains (Losses) |
|
Unrealized
Gains (Losses) on Investment Securities |
|
Unrealized
Gains (Losses) on Derivatives |
|
Pension Liability Adjustment
|
|
Total
|
||||||||||||||||||||
Balance, beginning of period
|
|
$
|
(2,196
|
)
|
|
|
|
$
|
2,986
|
|
|
|
|
$
|
(26
|
)
|
|
|
|
$
|
(139
|
)
|
|
|
|
$
|
625
|
|
|
Other comprehensive
income (loss) before reclassification |
|
1,349
|
|
|
|
|
3,498
|
|
|
|
|
7
|
|
|
|
|
(5
|
)
|
|
|
|
4,849
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
(43
|
)
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
(42
|
)
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
1,349
|
|
|
|
|
3,455
|
|
|
|
|
7
|
|
|
|
|
(4
|
)
|
|
|
|
4,807
|
|
|
|||||
Balance, end of period
|
|
$
|
(847
|
)
|
|
|
|
$
|
6,441
|
|
|
|
|
$
|
(19
|
)
|
|
|
|
$
|
(143
|
)
|
|
|
|
$
|
5,432
|
|
|
(In millions)
|
Three Months Ended
June 30, 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 |
|
$
|
5
|
|
|
Sales and redemptions
|
|
|
(6
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
(1
|
)
|
|
Total before tax
|
|
|
|
0
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(1
|
)
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(5
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
0
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
2
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(3
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(4
|
)
|
|
Net of tax
|
(In millions)
|
Three Months Ended
June 30, 2016 |
|
||||
Details about Accumulated Other Comprehensive Income Components
|
Amount Reclassified from Accumulated Other Comprehensive Income
|
Affected Line Item in the
Statements of Earnings |
||||
Unrealized gains (losses) on available-for-sale
securities |
|
$
|
22
|
|
|
Sales and redemptions
|
|
|
(33
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
(11
|
)
|
|
Total before tax
|
|
|
|
4
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(7
|
)
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(5
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
3
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
1
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(1
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(8
|
)
|
|
Net of tax
|
(In millions)
|
Six Months Ended
June 30, 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 |
|
$
|
(1
|
)
|
|
Sales and redemptions
|
|
|
(16
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
(17
|
)
|
|
Total before tax
|
|
|
|
6
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(11
|
)
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(8
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
0
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
3
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(5
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(16
|
)
|
|
Net of tax
|
(In millions)
|
Six Months Ended
June 30, 2016 |
|
||||
Details about Accumulated Other Comprehensive Income Components
|
Amount Reclassified from Accumulated Other Comprehensive Income
|
Affected Line Item in the
Statements of Earnings |
||||
Unrealized gains (losses) on available-for-sale
securities |
|
$
|
113
|
|
|
Sales and redemptions
|
|
|
(47
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
66
|
|
|
Total before tax
|
|
|
|
(23
|
)
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
43
|
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(8
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
6
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
1
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(1
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
42
|
|
|
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
|
|
5,572
|
|
|
|
|
4.8
|
|
|
|
$
|
136
|
|
|
|
|
$
|
53.32
|
|
|
Exercisable
|
|
3,888
|
|
|
|
|
3.3
|
|
|
|
111
|
|
|
|
|
49.05
|
|
|
(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
|
|
512
|
|
|
|
72.12
|
|
|
|
Canceled in 2017
|
|
(66
|
)
|
|
|
64.86
|
|
|
|
Vested in 2017
|
|
(467
|
)
|
|
|
62.34
|
|
|
|
Restricted stock at June 30, 2017
|
|
1,847
|
|
|
|
$
|
64.24
|
|
|
11.
|
BENEFIT PLANS
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||||||||||||||
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||
(In millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||||||
Components of net periodic
benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
|
|
$
|
4
|
|
|
|
|
$
|
4
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
6
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Interest cost
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
8
|
|
|
|
|
8
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||||
Expected return on plan
assets |
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(5
|
)
|
|
|
|
(5
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Amortization of net actuarial
loss |
|
|
1
|
|
|
|
|
1
|
|
|
|
|
4
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||||
Amortization of prior service
cost (credit) |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(3
|
)
|
|
||||||
Net periodic (benefit) cost
|
|
|
$
|
6
|
|
|
|
|
$
|
5
|
|
|
|
|
$
|
13
|
|
|
|
|
$
|
12
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
(1
|
)
|
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||||||||
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||
(In millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||||||
Components of net periodic
benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
|
|
$
|
9
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
12
|
|
|
|
|
$
|
12
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Interest cost
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
16
|
|
|
|
|
16
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||||
Expected return on plan
assets |
|
|
(2
|
)
|
|
|
|
(2
|
)
|
|
|
|
(11
|
)
|
|
|
|
(11
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Amortization of net actuarial
loss |
|
|
1
|
|
|
|
|
1
|
|
|
|
|
7
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||||
Amortization of prior service
cost (credit) |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(6
|
)
|
|
||||||
Net periodic (benefit) cost
|
|
|
$
|
11
|
|
|
|
|
$
|
10
|
|
|
|
|
$
|
24
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
(4
|
)
|
|
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
|
|
In Millions
|
|
Per Diluted Share
|
|
|||||||||||||||||||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
||||||||||||||||
Net earnings
|
$
|
713
|
|
|
$
|
548
|
|
|
$
|
1.79
|
|
|
$
|
1.32
|
|
|
$
|
1,305
|
|
|
$
|
1,279
|
|
|
$
|
3.25
|
|
|
$
|
3.06
|
|
|
|
Items impacting net earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Realized investment (gains) losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Securities transactions and impairments
|
3
|
|
|
11
|
|
|
.01
|
|
|
.03
|
|
|
20
|
|
|
(66
|
)
|
|
.05
|
|
|
(.16
|
)
|
|
|
||||||||
Certain derivative and foreign currency
(gains) losses (2),(3),(4) |
16
|
|
|
197
|
|
|
.04
|
|
|
.48
|
|
|
108
|
|
|
234
|
|
|
.27
|
|
|
.56
|
|
|
|
||||||||
Other and non-recurring (income) loss
(4)
|
8
|
|
|
0
|
|
|
.02
|
|
|
.00
|
|
|
28
|
|
|
0
|
|
|
.07
|
|
|
.00
|
|
|
|
||||||||
Income tax (benefit)
expense on items excluded from operating earnings (2),(5) |
(10
|
)
|
|
(73
|
)
|
|
(.02
|
)
|
|
(.18
|
)
|
|
(55
|
)
|
|
(59
|
)
|
|
(.14
|
)
|
|
(.14
|
)
|
|
|
||||||||
Operating earnings
|
731
|
|
|
683
|
|
|
1.83
|
|
|
1.65
|
|
|
1,406
|
|
|
1,388
|
|
|
3.50
|
|
|
3.32
|
|
|
|
||||||||
Current period foreign
currency impact (6) |
9
|
|
|
N/A
|
|
|
.02
|
|
|
N/A
|
|
|
3
|
|
|
N/A
|
|
|
.01
|
|
|
N/A
|
|
|
|
||||||||
Operating earnings excluding
current period foreign currency impact (7) |
$
|
739
|
|
|
$
|
683
|
|
|
$
|
1.85
|
|
|
$
|
1.65
|
|
|
$
|
1,409
|
|
|
$
|
1,388
|
|
|
$
|
3.51
|
|
|
$
|
3.32
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
Net premium income
|
$
|
3,222
|
|
|
$
|
3,402
|
|
|
$
|
6,416
|
|
|
$
|
6,581
|
|
|
Net investment income:
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated investment income
|
322
|
|
|
337
|
|
|
646
|
|
|
659
|
|
|
||||
U.S. dollar-denominated investment income
|
291
|
|
|
305
|
|
|
577
|
|
|
605
|
|
|
||||
Net investment income
|
613
|
|
|
642
|
|
|
1,223
|
|
|
1,264
|
|
|
||||
Amortized hedge costs related to foreign currency denominated
investments |
56
|
|
|
37
|
|
|
108
|
|
|
69
|
|
|
||||
Net investment income, less amortized hedge costs
|
557
|
|
|
605
|
|
|
1,115
|
|
|
1,195
|
|
|
||||
Other income (loss)
|
10
|
|
|
11
|
|
|
20
|
|
|
19
|
|
|
||||
Total operating revenues
|
3,789
|
|
|
4,018
|
|
|
7,551
|
|
|
7,795
|
|
|
||||
Benefits and claims, net
|
2,272
|
|
|
2,455
|
|
|
4,559
|
|
|
4,738
|
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of deferred policy acquisition costs
|
167
|
|
|
167
|
|
|
322
|
|
|
318
|
|
|
||||
Insurance commissions
|
189
|
|
|
197
|
|
|
373
|
|
|
384
|
|
|
||||
Insurance and other expenses
|
370
|
|
|
397
|
|
|
737
|
|
|
747
|
|
|
||||
Total operating expenses
|
726
|
|
|
761
|
|
|
1,432
|
|
|
1,449
|
|
|
||||
Total benefits and expenses
|
2,998
|
|
|
3,216
|
|
|
5,991
|
|
|
6,187
|
|
|
||||
Pretax operating earnings
(1)
|
$
|
791
|
|
|
$
|
802
|
|
|
$
|
1,560
|
|
|
$
|
1,608
|
|
|
Weighted-average yen/dollar exchange rate
|
111.10
|
|
|
108.28
|
|
|
112.31
|
|
|
111.82
|
|
|
|
In Dollars
|
In Yen
|
|||||||||||||||||||||
Percentage change over
previous period:
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
|
||||||||||||||||
2017
|
|
2016
|
|
2017
|
|
2016
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|||||||||
Net premium income
|
(5.3
|
)%
|
|
14.3
|
%
|
|
(2.5
|
)%
|
|
8.7
|
%
|
(2.7
|
)%
|
|
1.8
|
%
|
|
(1.9
|
)%
|
|
1.0
|
%
|
|
Net investment income,
less amortized hedge costs |
(7.9
|
)
|
|
2.8
|
|
|
(6.7
|
)
|
|
.5
|
|
(4.7
|
)
|
|
(8.9
|
)
|
|
(5.5
|
)
|
|
(7.0
|
)
|
|
Total operating revenues
|
(5.7
|
)
|
|
12.4
|
|
|
(3.1
|
)
|
|
7.4
|
|
(3.0
|
)
|
|
.1
|
|
|
(2.4
|
)
|
|
(.3
|
)
|
|
Pretax operating
earnings
(1)
|
(1.4
|
)
|
|
8.2
|
|
|
(3.0
|
)
|
|
4.0
|
|
1.8
|
|
|
(3.7
|
)
|
|
(2.0
|
)
|
|
(3.5
|
)
|
|
|
Including Foreign
Currency Changes |
|
|
Excluding Foreign
Currency Changes
(2)
|
|||||||||||||||||||||||||||
|
Three Months
|
|
|
Six Months
|
|
Three Months
|
|
|
Six Months
|
||||||||||||||||||||||
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
||||
Net investment income, less
amortized hedge costs |
(4.7
|
)
|
%
|
|
(8.9
|
)
|
%
|
|
(5.5
|
)
|
%
|
|
(7.0
|
)
|
%
|
|
(5.9
|
)
|
%
|
|
(3.4
|
)
|
%
|
|
(5.7
|
)
|
%
|
|
(3.4
|
)
|
%
|
Total operating revenues
|
(3.0
|
)
|
|
|
.1
|
|
|
|
(2.4
|
)
|
|
|
(.3
|
)
|
|
|
(3.2
|
)
|
|
|
1.0
|
|
|
|
(2.5
|
)
|
|
|
.3
|
|
|
Pretax operating earnings
(1)
|
1.8
|
|
|
|
(3.7
|
)
|
|
|
(2.0
|
)
|
|
|
(3.5
|
)
|
|
|
1.0
|
|
|
|
.4
|
|
|
|
(2.2
|
)
|
|
|
(1.0
|
)
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
|
||||||
Ratios to total revenues:
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Benefits and claims, net
|
59.9
|
%
|
|
61.1
|
%
|
|
60.4
|
%
|
|
60.8
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred policy acquisition costs
|
4.4
|
|
|
4.2
|
|
|
4.3
|
|
|
4.1
|
|
|
Insurance commissions
|
5.0
|
|
|
4.9
|
|
|
4.9
|
|
|
4.9
|
|
|
Insurance and other expenses
|
9.8
|
|
|
9.9
|
|
|
9.7
|
|
|
9.6
|
|
|
Total operating expenses
|
19.2
|
|
|
19.0
|
|
|
18.9
|
|
|
18.6
|
|
|
Pretax operating earnings
(1)
|
20.9
|
|
|
19.9
|
|
|
20.7
|
|
|
20.6
|
|
|
|
In Dollars
|
In Yen
|
|||||||||||||||||||||||||
|
Three Months
|
|
Six Months
|
|
Three Months
|
Six Months
|
|
||||||||||||||||||||
(In millions of dollars and billions of yen)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
2017
|
|
2016
|
|
||||||||||||
New annualized premium sales
|
$
|
229
|
|
|
$
|
280
|
|
|
$
|
423
|
|
|
$
|
551
|
|
|
25.4
|
|
|
30.3
|
|
47.5
|
|
|
61.4
|
|
|
Increase (decrease) over prior period
|
(18.3
|
)%
|
|
11.2
|
%
|
|
(23.2
|
)%
|
|
15.2
|
%
|
|
(16.0
|
)%
|
|
(1.1
|
)%
|
(22.7
|
)%
|
|
6.7
|
%
|
|
|
Three Months
|
|
|
Six Months
|
|
||||||||||
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
||||
Cancer
|
56.0
|
%
|
|
|
46.0
|
%
|
|
|
53.3
|
%
|
|
|
40.7
|
%
|
|
Medical
|
35.3
|
|
|
|
27.9
|
|
|
|
36.0
|
|
|
|
25.5
|
|
|
Ordinary life:
|
|
|
|
|
|
|
|
|
|
|
|
||||
WAYS
|
.6
|
|
|
|
13.5
|
|
|
|
.6
|
|
|
|
19.4
|
|
|
Other ordinary life
|
5.3
|
|
|
|
6.0
|
|
|
|
6.7
|
|
|
|
5.8
|
|
|
Child endowment
|
.4
|
|
|
|
5.1
|
|
|
|
.6
|
|
|
|
7.1
|
|
|
Income support
|
1.9
|
|
|
|
.0
|
|
|
|
1.9
|
|
|
|
.0
|
|
|
Other
|
.5
|
|
|
|
1.5
|
|
|
|
.9
|
|
|
|
1.5
|
|
|
Total
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||
(In millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||
Japan government and agencies
|
|
$
|
687
|
|
|
$
|
595
|
|
|
$
|
3,228
|
|
|
$
|
1,762
|
|
|
Other fixed maturities
|
|
371
|
|
|
599
|
|
|
909
|
|
|
659
|
|
|
||||
Equities
(1)
|
|
3
|
|
|
127
|
|
|
152
|
|
|
270
|
|
|
||||
Total yen-denominated
|
|
$
|
1,061
|
|
|
$
|
1,321
|
|
|
$
|
4,289
|
|
|
$
|
2,691
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. dollar-denominated:
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||
Other fixed maturities
|
|
$
|
23
|
|
|
$
|
156
|
|
|
$
|
81
|
|
|
$
|
593
|
|
|
Infrastructure debt
|
|
64
|
|
|
0
|
|
|
94
|
|
|
0
|
|
|
||||
Bank loans
(2)
|
|
0
|
|
|
305
|
|
|
0
|
|
|
535
|
|
|
||||
Equities
(1)
|
|
144
|
|
|
226
|
|
|
151
|
|
|
426
|
|
|
||||
Other investments:
|
|
|
|
|
|
|
|
|
|
||||||||
Middle market loans
|
|
154
|
|
|
0
|
|
|
251
|
|
|
0
|
|
|
||||
Commercial mortgage loans
|
|
145
|
|
(3)
|
163
|
|
|
193
|
|
(3)
|
183
|
|
|
||||
Total dollar-denominated
|
|
$
|
530
|
|
|
$
|
850
|
|
|
$
|
770
|
|
|
$
|
1,737
|
|
|
Total Aflac Japan purchases
|
|
$
|
1,591
|
|
|
$
|
2,171
|
|
|
$
|
5,059
|
|
|
$
|
4,428
|
|
|
|
Three Months
|
|
Six Months
|
|
|||||||||||||||
|
2017
|
|
(1)
|
|
2016
|
|
(1)
|
|
2017
|
|
(1)
|
|
2016
|
|
(1)
|
||||
Total purchases for the period (in millions)
(1)
|
$
|
1,591
|
|
|
|
$
|
2,171
|
|
|
|
$
|
5,059
|
|
|
|
$
|
4,428
|
|
|
New money yield
(1), (2)
|
2.25
|
|
%
|
|
1.67
|
|
%
|
|
1.54
|
|
%
|
|
1.92
|
|
%
|
||||
Return on average invested assets
(3)
|
2.28
|
|
|
|
2.52
|
|
|
|
2.31
|
|
|
|
2.62
|
|
|
||||
Portfolio book yield, including U.S. dollar-denominated investments,
end of period
(1)
|
2.55
|
|
%
|
|
2.71
|
|
%
|
|
2.55
|
|
%
|
|
2.71
|
|
%
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
Net premium income
|
$
|
1,388
|
|
|
$
|
1,362
|
|
|
$
|
2,778
|
|
|
$
|
2,729
|
|
|
Net investment income
|
180
|
|
|
176
|
|
|
358
|
|
|
350
|
|
|
||||
Other income
|
2
|
|
|
0
|
|
|
3
|
|
|
3
|
|
|
||||
Total operating revenues
|
1,570
|
|
|
1,538
|
|
|
3,139
|
|
|
3,082
|
|
|
||||
Benefits and claims
|
715
|
|
|
743
|
|
|
1,425
|
|
|
1,433
|
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of deferred policy acquisition costs
|
116
|
|
|
117
|
|
|
256
|
|
|
258
|
|
|
||||
Insurance commissions
|
146
|
|
|
147
|
|
|
291
|
|
|
294
|
|
|
||||
Insurance and other expenses
|
263
|
|
|
240
|
|
|
527
|
|
|
474
|
|
|
||||
Total operating expenses
|
525
|
|
|
504
|
|
|
1,074
|
|
|
1,026
|
|
|
||||
Total benefits and expenses
|
1,240
|
|
|
1,247
|
|
|
2,499
|
|
|
2,459
|
|
|
||||
Pretax operating earnings
(1)
|
$
|
330
|
|
|
$
|
291
|
|
|
$
|
640
|
|
|
$
|
623
|
|
|
Percentage change over previous period:
|
|
|
|
|
|
|
|
|
||||||||
Net premium income
|
1.9
|
|
%
|
2.2
|
|
%
|
1.8
|
|
%
|
2.2
|
|
%
|
||||
Net investment income
|
2.3
|
|
|
4.4
|
|
|
2.3
|
|
|
4.7
|
|
|
||||
Total operating revenues
|
2.1
|
|
|
2.5
|
|
|
1.8
|
|
|
2.4
|
|
|
||||
Pretax operating earnings
(1)
|
13.4
|
|
|
(.3
|
)
|
|
2.7
|
|
|
8.0
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
||||||
Ratios to total revenues:
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Benefits and claims
|
45.6
|
%
|
|
48.3
|
%
|
|
45.4
|
%
|
|
46.5
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred policy acquisition costs
|
7.4
|
|
|
7.6
|
|
|
8.1
|
|
|
8.4
|
|
Insurance commissions
|
9.3
|
|
|
9.5
|
|
|
9.3
|
|
|
9.5
|
|
Insurance and other expenses
|
16.7
|
|
|
15.6
|
|
|
16.8
|
|
|
15.3
|
|
Total operating expenses
|
33.4
|
|
|
32.7
|
|
|
34.2
|
|
|
33.2
|
|
Pretax operating earnin
gs
(1)
|
21.0
|
|
|
19.0
|
|
|
20.4
|
|
|
20.3
|
|
|
Three Months
|
|
Six Months
|
|
||||||||||||||||
(In millions)
|
2017
|
|
|
2016
|
|
|
|
2017
|
|
|
2016
|
|
|
|
||||||
New annualized premium sales
|
$
|
356
|
|
|
|
$
|
347
|
|
|
|
$
|
689
|
|
|
|
$
|
675
|
|
|
|
Increase (decrease) over prior period
|
2.4
|
|
%
|
|
1.0
|
|
%
|
|
2.1
|
|
%
|
|
2.3
|
|
%
|
|
|
Three Months
|
|
Six Months
|
|
||||||||
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Income-loss protection:
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term disability
|
23.9
|
%
|
|
23.3
|
%
|
|
24.5
|
%
|
|
23.4
|
%
|
|
Life
|
5.3
|
|
|
5.6
|
|
|
5.4
|
|
|
5.6
|
|
|
Asset-loss protection:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accident
|
29.8
|
|
|
30.1
|
|
|
29.5
|
|
|
30.0
|
|
|
Critical care
(1)
|
21.1
|
|
|
21.3
|
|
|
21.0
|
|
|
21.3
|
|
|
Supplemental medical:
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital indemnity
|
14.0
|
|
|
14.3
|
|
|
14.0
|
|
|
14.2
|
|
|
Dental/vision
|
5.9
|
|
|
5.4
|
|
|
5.6
|
|
|
5.5
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
||||||||||||
(In millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||
Other fixed maturities
|
|
$
|
226
|
|
|
$
|
252
|
|
|
$
|
485
|
|
|
$
|
357
|
|
|
Infrastructure debt
|
|
10
|
|
|
0
|
|
|
15
|
|
|
0
|
|
|
||||
Equities
|
|
36
|
|
|
37
|
|
|
38
|
|
|
103
|
|
|
||||
Other investments:
|
|
|
|
|
|
|
|
|
|
||||||||
Middle market loans
|
|
42
|
|
|
33
|
|
|
93
|
|
|
144
|
|
|
||||
Commercial mortgage loans
|
|
41
|
|
(1)
|
10
|
|
|
41
|
|
(1)
|
23
|
|
|
||||
Total Aflac U.S. Purchases
|
|
$
|
355
|
|
|
$
|
332
|
|
|
$
|
672
|
|
|
$
|
627
|
|
|
|
Three Months
|
|
Six Months
|
|
|||||||||||||||
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
||||||||
Total purchases for period (in millions)
(1)
|
$
|
355
|
|
|
|
$
|
332
|
|
|
|
$
|
672
|
|
|
|
$
|
627
|
|
|
New money yield
(1), (2)
|
4.46
|
|
%
|
|
3.70
|
|
%
|
|
4.40
|
|
%
|
|
4.16
|
|
%
|
||||
Return on average invested assets
(3)
|
5.05
|
|
|
|
5.04
|
|
|
|
5.02
|
|
|
|
5.03
|
|
|
||||
Portfolio book yield, end of period
(1)
|
5.54
|
|
%
|
|
5.69
|
|
%
|
|
5.54
|
|
%
|
|
5.69
|
|
%
|
|
|
Aflac Japan
|
|
|
Aflac U.S.
|
|
||||||||||||||||
(In millions)
|
June 30,
2017 |
|
December 31,
2016 |
June 30,
2017 |
|
December 31,
2016 |
||||||||||||||||
Securities available for sale, at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
65,157
|
|
|
|
|
$
|
59,903
|
|
|
|
$
|
13,892
|
|
|
|
|
$
|
13,250
|
|
|
Perpetual securities
|
|
1,784
|
|
|
|
|
1,577
|
|
|
|
59
|
|
|
|
|
56
|
|
|
||||
Equity securities
|
|
1,258
|
|
|
|
|
1,185
|
|
|
|
133
|
|
|
|
|
124
|
|
|
||||
Total available for sale
|
|
68,199
|
|
|
|
|
62,665
|
|
|
|
14,084
|
|
|
|
|
13,430
|
|
|
||||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
32,613
|
|
|
|
|
33,350
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total held to maturity
|
|
32,613
|
|
|
|
|
33,350
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Other investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage loans
|
|
902
|
|
(1)
|
|
|
745
|
|
|
|
150
|
|
(1)
|
|
|
110
|
|
|
||||
Middle market loans
|
|
298
|
|
|
|
|
74
|
|
|
|
280
|
|
|
|
|
245
|
|
|
||||
Short-term investments
|
|
138
|
|
|
|
|
88
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Policy loans
|
|
190
|
|
|
|
|
174
|
|
|
|
11
|
|
|
|
|
10
|
|
|
||||
Other
|
|
37
|
|
|
|
|
0
|
|
|
|
9
|
|
|
|
|
0
|
|
|
||||
Total other investments
|
|
1,565
|
|
|
|
|
1,081
|
|
|
|
450
|
|
|
|
|
365
|
|
|
||||
Total investment securities
|
|
102,377
|
|
|
|
|
97,096
|
|
|
|
14,534
|
|
|
|
|
13,795
|
|
|
||||
Cash and cash equivalents
|
|
1,482
|
|
|
|
|
1,313
|
|
|
|
1,168
|
|
|
|
|
1,428
|
|
|
||||
Total investments and cash
(2)
|
|
$
|
103,859
|
|
|
|
|
$
|
98,409
|
|
|
|
$
|
15,702
|
|
|
|
|
$
|
15,223
|
|
|
|
|
June 30, 2017
|
|
|
|
December 31, 2016
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.1
|
%
|
|
|
|
1.0
|
%
|
|
|
|
2.0
|
%
|
|
|
|
1.9
|
%
|
|
AA
|
|
4.3
|
|
|
|
|
4.3
|
|
|
|
|
5.0
|
|
|
|
|
5.0
|
|
|
A
|
|
65.4
|
|
|
|
|
66.7
|
|
|
|
|
63.1
|
|
|
|
|
65.2
|
|
|
BBB
|
|
24.0
|
|
|
|
|
23.2
|
|
|
|
|
24.6
|
|
|
|
|
23.2
|
|
|
BB or lower
|
|
5.2
|
|
|
|
|
4.8
|
|
|
|
|
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
|
|
|
|
|
$
|
92
|
|
|
|
|
$
|
(50
|
)
|
|
Noble Holdings International Ltd.
|
|
B
|
|
|
|
99
|
|
|
|
|
57
|
|
|
|
|
(42
|
)
|
|
|||
Investcorp Capital Limited
|
|
BB
|
|
|
|
380
|
|
|
|
|
364
|
|
|
|
|
(16
|
)
|
|
|||
Transocean Inc.
|
|
B
|
|
|
|
72
|
|
|
|
|
56
|
|
|
|
|
(16
|
)
|
|
|||
National Oilwell Varco Inc.
|
|
BBB
|
|
|
|
98
|
|
|
|
|
84
|
|
|
|
|
(14
|
)
|
|
|||
AXA-UAP
(1)
|
|
BBB
|
|
|
|
292
|
|
|
|
|
280
|
|
|
|
|
(12
|
)
|
|
|||
Baker Hughes Inc.
|
|
BBB
|
|
|
|
123
|
|
|
|
|
111
|
|
|
|
|
(12
|
)
|
|
|||
Discovery Communications
|
|
BBB
|
|
|
|
109
|
|
|
|
|
99
|
|
|
|
|
(10
|
)
|
|
|||
Cenovus Energy Inc.
|
|
BBB
|
|
|
|
79
|
|
|
|
|
69
|
|
|
|
|
(10
|
)
|
|
|||
Deutsche Postbank AG
|
|
BB
|
|
|
|
214
|
|
|
|
|
205
|
|
|
|
|
(9
|
)
|
|
|
|
June 30, 2017
|
|
|
|
December 31, 2016
|
|
||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Publicly issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
80,344
|
|
|
|
|
$
|
91,020
|
|
|
|
|
$
|
75,406
|
|
|
|
|
$
|
86,132
|
|
|
Perpetual securities
|
|
46
|
|
|
|
|
72
|
|
|
|
|
51
|
|
|
|
|
75
|
|
|
||||
Equity securities
|
|
1,274
|
|
|
|
|
1,387
|
|
|
|
|
1,196
|
|
|
|
|
1,300
|
|
|
||||
Total publicly issued
|
|
81,664
|
|
|
|
|
92,479
|
|
|
|
|
76,653
|
|
|
|
|
87,507
|
|
|
||||
Privately issued securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
24,227
|
|
|
|
|
28,044
|
|
|
|
|
24,307
|
|
|
|
|
27,649
|
|
|
||||
Perpetual securities
|
|
1,514
|
|
|
|
|
1,771
|
|
|
|
|
1,455
|
|
|
|
|
1,558
|
|
|
||||
Equity securities
|
|
15
|
|
|
|
|
16
|
|
|
|
|
7
|
|
|
|
|
9
|
|
|
||||
Total privately issued
|
|
25,756
|
|
|
|
|
29,831
|
|
|
|
|
25,769
|
|
|
|
|
29,216
|
|
|
||||
Total investment securities
|
|
$
|
107,420
|
|
|
|
|
$
|
122,310
|
|
|
|
|
$
|
102,422
|
|
|
|
|
$
|
116,723
|
|
|
(Amortized cost, in millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||||||
Privately issued securities as a percentage of total investment securities
|
|
24.0
|
%
|
|
|
|
25.2
|
%
|
|
||
Privately issued securities held by Aflac Japan
|
|
$
|
23,049
|
|
|
|
|
$
|
23,104
|
|
|
Privately issued securities held by Aflac Japan as a percentage of total
investment securities |
|
21.5
|
%
|
|
|
|
22.6
|
%
|
|
(Amortized cost, in millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||||||
Privately issued reverse-dual currency securities
|
|
$
|
5,720
|
|
|
|
|
$
|
5,628
|
|
|
Publicly issued collateral structured as reverse-dual currency securities
|
|
1,402
|
|
|
|
|
1,349
|
|
|
||
Total reverse-dual currency securities
|
|
$
|
7,122
|
|
|
|
|
$
|
6,977
|
|
|
Reverse-dual currency securities as a percentage of total investment
securities |
|
6.6
|
%
|
|
|
|
6.8
|
%
|
|
|
June 30, 2017
|
|
December 31, 2016
|
|
||||||||||||||||||||||||||||
(In millions)
|
Par
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain (Loss) |
|
Par
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Gain(Loss) |
|
||||||||||||||||
Republic of South Africa
|
$
|
536
|
|
|
$
|
536
|
|
|
$
|
572
|
|
|
$
|
36
|
|
|
$ *
|
|
|
$ *
|
|
|
$ *
|
|
|
$ *
|
|
|
||||
Investcorp Capital Limited
|
380
|
|
|
380
|
|
|
364
|
|
|
(16
|
)
|
|
368
|
|
|
368
|
|
|
346
|
|
|
(22
|
)
|
|
||||||||
Navient Corp.
|
298
|
|
|
158
|
|
|
209
|
|
|
51
|
|
|
287
|
|
|
152
|
|
|
197
|
|
|
45
|
|
|
||||||||
KLM Royal Dutch Airlines
(1)
|
268
|
|
|
197
|
|
|
228
|
|
|
31
|
|
|
257
|
|
|
189
|
|
|
213
|
|
|
24
|
|
|
||||||||
Republic of Tunisia
|
268
|
|
|
157
|
|
|
180
|
|
|
23
|
|
|
318
|
|
|
191
|
|
|
264
|
|
|
73
|
|
|
||||||||
Barclays Bank PLC
(1)
|
243
|
|
|
157
|
|
|
243
|
|
|
86
|
|
|
236
|
|
|
152
|
|
|
221
|
|
|
69
|
|
|
||||||||
Deutsche Postbank AG
|
214
|
|
|
214
|
|
|
205
|
|
|
(9
|
)
|
|
206
|
|
|
206
|
|
|
179
|
|
|
(27
|
)
|
|
||||||||
Telecom Italia SpA
|
179
|
|
|
179
|
|
|
237
|
|
|
58
|
|
|
172
|
|
|
172
|
|
|
212
|
|
|
40
|
|
|
||||||||
Generalitat de Catalunya
|
143
|
|
|
52
|
|
|
105
|
|
|
53
|
|
|
154
|
|
|
57
|
|
|
111
|
|
|
54
|
|
|
||||||||
Transnet
|
134
|
|
|
134
|
|
|
136
|
|
|
2
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Diamond Offshore Drilling Inc.
|
124
|
|
|
142
|
|
|
92
|
|
|
(50
|
)
|
|
124
|
|
|
141
|
|
|
96
|
|
|
(45
|
)
|
|
||||||||
IKB Deutsche Industriebank AG
|
116
|
|
|
49
|
|
|
97
|
|
|
48
|
|
|
112
|
|
|
47
|
|
|
91
|
|
|
44
|
|
|
||||||||
Alcoa, Inc.
|
100
|
|
|
83
|
|
|
101
|
|
|
18
|
|
|
100
|
|
|
80
|
|
|
97
|
|
|
17
|
|
|
||||||||
Republic of Trinidad and Tobago
|
98
|
|
|
98
|
|
|
108
|
|
|
10
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Noble Holdings International Ltd.
|
95
|
|
|
99
|
|
|
57
|
|
|
(42
|
)
|
|
95
|
|
|
98
|
|
|
68
|
|
|
(30
|
)
|
|
||||||||
EMC Corp.
|
85
|
|
|
86
|
|
|
80
|
|
|
(6
|
)
|
|
85
|
|
|
86
|
|
|
76
|
|
|
(10
|
)
|
|
||||||||
Petrobras International Finance
Company |
84
|
|
|
84
|
|
|
82
|
|
|
(2
|
)
|
|
91
|
|
|
90
|
|
|
83
|
|
|
(7
|
)
|
|
||||||||
Teck Resources Ltd.
|
70
|
|
|
75
|
|
|
68
|
|
|
(7
|
)
|
|
70
|
|
|
73
|
|
|
66
|
|
|
(7
|
)
|
|
||||||||
Transocean Inc.
|
68
|
|
|
72
|
|
|
56
|
|
|
(16
|
)
|
|
68
|
|
|
72
|
|
|
57
|
|
|
(15
|
)
|
|
||||||||
CF Industries Inc.
|
60
|
|
|
59
|
|
|
57
|
|
|
(2
|
)
|
|
60
|
|
|
59
|
|
|
54
|
|
|
(5
|
)
|
|
||||||||
National Gas Co. Trinidad and
Tobago |
52
|
|
|
50
|
|
|
53
|
|
|
3
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
||||||||
Votorantim OverseasTrading
IV Ltd. |
50
|
|
|
49
|
|
|
54
|
|
|
5
|
|
|
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) |
274
|
|
|
265
|
|
|
263
|
|
|
(2
|
)
|
|
333
|
|
|
321
|
|
|
309
|
|
|
(12
|
)
|
|
||||||||
Subtotal
(2)
|
3,939
|
|
|
3,375
|
|
|
3,647
|
|
|
272
|
|
|
3,441
|
|
|
2,859
|
|
|
3,053
|
|
|
194
|
|
|
||||||||
Senior secured bank loans
|
1,596
|
|
|
1,639
|
|
|
1,596
|
|
|
(43
|
)
|
|
1,758
|
|
|
1,855
|
|
|
1,764
|
|
|
(91
|
)
|
|
||||||||
High yield corporate bonds
|
580
|
|
|
579
|
|
|
596
|
|
|
17
|
|
|
614
|
|
|
602
|
|
|
624
|
|
|
22
|
|
|
||||||||
Middle market loans, net of
reserves (3) |
586
|
|
|
578
|
|
|
579
|
|
|
1
|
|
|
324
|
|
|
319
|
|
|
320
|
|
|
1
|
|
|
||||||||
Grand Total
|
$
|
6,701
|
|
|
$
|
6,171
|
|
|
$
|
6,418
|
|
|
$
|
247
|
|
|
$
|
6,137
|
|
|
$
|
5,635
|
|
|
$
|
5,761
|
|
|
$
|
126
|
|
|
|
|
(In millions)
|
June 30,
2017 |
|
December 31,
2016 |
||||||||
Aflac Japan net assets
|
|
$
|
17,429
|
|
|
|
|
$
|
16,215
|
|
|
Aflac Japan unhedged U.S. dollar-denominated net assets
|
|
(10,293
|
)
|
|
|
|
(9,694
|
)
|
|
||
Consolidated yen-denominated net assets (liabilities)
|
|
$
|
7,136
|
|
|
|
|
$
|
6,521
|
|
|
(In millions)
|
June 30,
2017
|
|
December 31, 2016
|
|
% Change
|
|||||||||||
Aflac Japan
|
|
$
|
6,077
|
|
|
|
|
$
|
5,765
|
|
|
|
|
5.4
|
%
|
(1)
|
Aflac U.S.
|
|
3,263
|
|
|
|
|
3,228
|
|
|
|
|
1.1
|
|
|
||
Total
|
|
$
|
9,340
|
|
|
|
|
$
|
8,993
|
|
|
|
|
3.9
|
%
|
|
(In millions)
|
June 30,
2017
|
|
December 31, 2016
|
|
% Change
|
|||||||||||
Aflac Japan
|
|
$
|
88,701
|
|
|
|
|
$
|
84,141
|
|
|
|
|
5.4
|
%
|
(1)
|
Aflac U.S.
|
|
10,391
|
|
|
|
|
10,212
|
|
|
|
|
1.8
|
|
|
||
Other
|
|
120
|
|
|
|
|
91
|
|
|
|
|
31.9
|
|
|
||
Intercompany eliminations
(2)
|
|
(754
|
)
|
|
|
|
(718
|
)
|
|
|
|
5.0
|
|
|
||
Total
|
|
$
|
98,458
|
|
|
|
|
$
|
93,726
|
|
|
|
|
5.0
|
%
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Dividends declared or paid by Aflac
|
$
|
800
|
|
|
$
|
626
|
|
|
Management fees paid by Aflac
|
156
|
|
|
124
|
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Operating activities
|
$
|
3,165
|
|
|
$
|
2,854
|
|
|
Investing activities
|
(2,517
|
)
|
|
(2,429
|
)
|
|
||
Financing activities
|
(1,231
|
)
|
|
(1,281
|
)
|
|
||
Exchange effect on cash and cash equivalents
|
(12
|
)
|
|
206
|
|
|
||
Net change in cash and cash equivalents
|
$
|
(595
|
)
|
|
$
|
(650
|
)
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Aflac Japan
|
$
|
2,509
|
|
|
$
|
2,207
|
|
|
Aflac U.S. and other operations
|
656
|
|
|
647
|
|
|
||
Total
|
$
|
3,165
|
|
|
$
|
2,854
|
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Aflac Japan
|
$
|
(2,073
|
)
|
|
$
|
(1,482
|
)
|
|
Aflac U.S. and other operations
|
(444
|
)
|
|
(947
|
)
|
|
||
Total
|
$
|
(2,517
|
)
|
|
$
|
(2,429
|
)
|
|
(In millions of dollars and thousands of shares)
|
2017
|
|
2016
|
|
||||
Treasury stock purchases
|
$
|
813
|
|
|
$
|
1,014
|
|
|
Number of shares purchased:
|
|
|
|
|
||||
Open market
|
11,155
|
|
|
16,026
|
|
|
||
Other
|
170
|
|
|
224
|
|
|
||
Total shares purchased
|
11,325
|
|
|
16,250
|
|
|
(In millions of dollars and thousands of shares)
|
2017
|
|
2016
|
|
||||
Stock issued from treasury:
|
|
|
|
|
||||
Cash financing
|
$
|
17
|
|
|
$
|
19
|
|
|
Noncash financing
|
33
|
|
|
34
|
|
|
||
Total stock issued from treasury
|
$
|
50
|
|
|
$
|
53
|
|
|
Number of shares issued
|
726
|
|
|
944
|
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Dividends paid in cash
|
$
|
328
|
|
|
$
|
330
|
|
|
Dividends through issuance of treasury shares
|
16
|
|
|
12
|
|
|
||
Total dividends to shareholders
|
$
|
344
|
|
|
$
|
342
|
|
|
(In millions of dollars and billions of yen)
|
2017
|
|
2016
|
|
||||
Aflac Japan management fees paid to Parent Company
|
$
|
55
|
|
|
$
|
31
|
|
|
Expenses allocated to Aflac Japan (in dollars)
|
56
|
|
|
57
|
|
|
||
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
|
|
|
|
April 1 - April 30
|
1,764,523
|
|
|
73.70
|
|
|
1,764,523
|
|
|
16,495,623
|
|
|
|
May 1 - May 31
|
501
|
|
|
74.84
|
|
|
0
|
|
|
16,495,623
|
|
|
|
June 1 - June 30
|
902,308
|
|
|
78.08
|
|
|
896,795
|
|
|
15,598,828
|
|
|
|
Total
|
11,300,665
|
|
(2)
|
$
|
71.74
|
|
|
11,154,626
|
|
|
15,598,828
|
|
(1)
|
Item 5.
|
Other Information
|
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 – incorporated by reference from Form 10-Q for March 31, 2017, Exhibit 10.9 (File No. 001-07434).
|
|
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 Form 8-K dated May 1, 2017, Exhibit 10.1 (File No. 001-07434).
|
|
10.33*
|
|
-
|
|
Form of Non-Employee Director Stock Option Agreement (Non-Qualifying Stock Option) under the Aflac Incorporated Long-Term Incentive Plan, as amended and restated February 14, 2017.
|
|
10.34*
|
|
-
|
|
Form of Non-Employee Director Restricted Stock Award Agreement under the Aflac Incorporated Long-Term Incentive Plan, as amended and restated February 14, 2017.
|
|
10.35*
|
|
-
|
|
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).
|
|
10.36*
|
|
-
|
|
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).
|
|
10.37*
|
|
-
|
|
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).
|
|
10.38*
|
|
-
|
|
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).
|
|
10.39*
|
|
-
|
|
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).
|
|
10.40*
|
|
-
|
|
Aflac Separation Agreement with Paul S. Amos II, effective July 1, 2017.
|
|
10.41*
|
|
-
|
|
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).
|
|
10.42*
|
|
-
|
|
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).
|
|
15
|
|
-
|
|
Letter from KPMG LLP regarding unaudited interim financial information.
|
|
31.1
|
|
-
|
|
Certification of CEO dated August 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 August 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 August 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 June 30, 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
|
|
|
|
August 3, 2017
|
|
/s/
Frederick J. Crawford
|
|
|
(Frederick J. Crawford)
|
|
|
Executive Vice President,
Chief Financial Officer
|
|
|
|
August 3, 2017
|
|
/s/
June Howard
|
|
|
(June Howard)
|
|
|
Senior Vice President, Financial Services; Chief Accounting Officer
|
1.
|
Grant of the Option
.
The Option is granted as of
«date»
,
(the "Date of Grant"). The number of Option Shares and the exercise price per share of the Option are subject to adjustment from time to time as provided in Section 3 of the Plan.
|
2.
|
Status of the Option
. The Option is not intended to qualify as an “Incentive Stock Option” within the meaning of Section 422 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”).
|
3.
|
Expiration of the Option
. The Option shall expire and may no longer be exercised on or after the date ten (10) years after the Date of Grant (the "Expiration Date").
|
4.
|
Non-assignability
. Except under the laws of descent and distribution, the Grantee shall not be permitted to sell, transfer, pledge or assign the Option or this Agreement. This Option shall be exercisable, during the Grantee's lifetime, only by the Grantee. Without limiting the generality of the foregoing, except as otherwise provided herein, the Option may not be assigned, transferred, pledged or hypothecated in any way, shall not be assignable by operation of law, and shall not be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the Option shall be null and void and without effect.
|
5.
|
Exercisability and Duration of the Option
.
|
6.
|
Certain Securities Law and Other Requirements
. The Option shall not be exercisable to any extent, and the Company shall not be obligated to transfer any Option Shares to the Grantee upon exercise of the Option, if such exercise, in the opinion of counsel for the Company, would violate the Securities Act of 1933 (the “Securities Act”) or any other federal or state statutes having similar requirements as may be in effect at that time. The Company shall be under no obligation to register the Option Shares pursuant to the Securities Act or any other federal or state securities laws. Unless the Company has filed an effective registration statement pursuant to the Securities Act covering the exercise of the Option, the Grantee, upon purchasing the Option Shares shall be required to represent to the Company that the Grantee is acquiring such shares for investment purposes and not with a view to their sale or distribution, and each certificate for such shares shall have printed or stamped thereon appropriate language, as determined by the Secretary of the Company. The Secretary of the Company may, in his or her discretion, require the Grantee, as a condition to the Company’s obligation to deliver Option Shares hereunder, take such action as is necessary or advisable to ensure that issuance of the Option Shares will be in compliance with applicable law.
|
7.
|
No Additional Rights
. Neither this Agreement nor any of the transactions contemplated hereby shall affect any right of the Grantee to continue as a director of the Company or otherwise to provide services to the Company or any of its Affiliates.
|
8.
|
Notices
. Except as otherwise provided in Section 5(c) hereof, all notices or other communications hereunder shall be in writing and shall be deemed to have been duly given (a) when delivered personally, (b) upon confirmation of receipt when such notice or other communication is sent by facsimile or telex, (c) one day after timely delivery to an overnight delivery courier, or (d) on the fifth day following the date of deposit in the United States mail if sent first class, postage prepaid, by registered or certified mail.
|
9.
|
Failure to Enforce Not a Waiver
. The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
|
10.
|
Incorporation of Plan
. The Plan is hereby incorporated by reference into this Agreement and made a part hereof, and the Option and this Agreement shall be subject to all terms and conditions of the Plan.
|
11.
|
Amendments
. The Board of Directors may amend the terms of this Agreement prospectively or retroactively at any time, but no such amendment shall impair the rights of the Grantee hereunder without the Grantee's consent.
|
12.
|
Protections Against Violations of Agreement
. No purported sale, assignment, mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any of the Option Shares by any holder thereof in violation of the provisions of this Agreement or the Certificate of Incorporation or the By-laws of the Company will be valid, and the Company will not transfer any of said Option Shares on its books nor will any of said Option Shares be entitled to vote, nor will any dividends be paid thereon, unless and until there has been full compliance with said provisions to the satisfaction of the Company. The foregoing restrictions are in addition to and not in lieu of any other remedies, legal or equitable, available to enforce said provisions.
|
13.
|
Survival of Terms
. This Agreement shall apply to and bind the Grantee and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors.
|
14.
|
Rights as a Stockholder
. Neither the Grantee nor any of the Grantee's successors in interest shall have any rights as a stockholder of the Company with respect to any shares of Company Stock subject to the Option until the date of issuance of a stock certificate for such shares of Company Stock.
|
15.
|
Authority of the Board
. The Board of Directors shall have full authority to interpret and construe the terms of the Plan and this Agreement. The determination of the Board of Directors as to any such matter of interpretation or construction shall be final, binding and conclusive.
|
16.
|
Representations
. The Grantee hereby acknowledges that the Grantee has reviewed with the Grantee's own tax advisors the federal, state, local and foreign tax consequences of the transactions contemplated by this Agreement. The Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Grantee understands that
|
17.
|
Acceptance
. The Grantee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board of Directors upon any questions arising under this Agreement.
|
18.
|
Authorization
. The Grantee hereby authorizes and directs the Secretary of the Company, or such other person designated by the Company, to take such steps as may be necessary to carry out any of the transactions contemplated by this Agreement.
|
19.
|
Certain Defined Terms
. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Plan.
|
20.
|
Interpretation
. Headings to provisions of this Agreement are intended for convenience of reference only and shall have no effect on the interpretation of this Agreement.
|
21.
|
Severability
. If any provision of this Agreement is held to be invalid or unenforceable, the other provisions of this Agreement shall not be affected but shall be applied as if the invalid or unenforceable provision had not been included in this Agreement.
|
22.
|
Applicable Law
. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Georgia, except to the extent that federal law is controlling.
|
Aflac Incorporated
|
|
By:
|
Daniel P. Amos
|
Title:
|
Chairman and Chief Executive Officer
|
A.
|
Award.
The Company hereby grants to Participant a restricted stock award of
«shares»
shares (each, a “Share”) of Aflac Incorporated Common Stock, par value $.10 per share, subject to the terms and conditions set forth herein and in the Aflac Incorporated Long-Term Incentive Plan (as Amended and Restated February 14, 2017) (the “Plan”).
|
B.
|
Restrictions on Transfer
. Until the restriction on transfer of the Shares lapses as provided in Paragraph D, below, or as otherwise provided in the Plan, no transfer of the Shares or any of the Participant’s rights with respect to such Shares, whether voluntary or involuntary, by operation of law or otherwise, shall be permitted. Unless the Board of Directors determines otherwise, upon any attempt to transfer a Share or any rights in respect of a Share before the lapse of such restrictions, such Share, and all of the rights related thereto, shall be immediately forfeited by the Participant and transferred to, and reacquired by, the Company without consideration of any kind.
|
C.
|
Forfeiture
. Upon the cessation of the Participant’s membership on the Board of Directors for any reason other than term of service ending on the date of the Annual Meeting, death, or disability, any and all Shares as to which the restrictions on transferability shall not have lapsed pursuant to Paragraph D, below, or as otherwise provided in the Plan shall be immediately forfeited by the Participant and transferred to, and reacquired by, the Company without consideration of any kind.
|
D.
|
Vesting
. Except to the extent otherwise provided under the Plan, the restrictions on transferability set forth in Paragraph B, above, shall remain in effect with respect to all of the Shares until, and shall lapse on, the earlier of the first (1st) anniversary of the date of this Agreement or the cessation of the Participant’s membership on the Board of Directors for reasons of death or disability.
|
1.
|
No Additional Rights
. Neither this Agreement nor any of the transactions contemplated hereby shall affect any right of the Participant to continue as a
|
2.
|
Notices
. All notices or other communications hereunder shall be in writing and shall be deemed to have been duly given (a) when delivered personally, (b) upon confirmation of receipt when such notice or other communication is sent by facsimile or telex, (c) one day after timely delivery to an overnight delivery courier, or (d) on the fifth day following the date of deposit in the United States mail if sent first class, postage prepaid, by registered or certified mail.
|
3.
|
Section 83(b) Election
. -The Participant acknowledges that it is the Participant's sole responsibility and not the Company's responsibility to file timely any election under Section 83(b) of the Internal Revenue Code of 1986, as amended, even if the Participant requests the Company or its agents to make this filing on the Participant's behalf. The Participant shall notify the Secretary of the Company of any such election within ten (10) days of filing notice of the election with the Internal Revenue Service.
|
4.
|
Failure to Enforce Not a Waiver
. The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
|
5.
|
Incorporation of Plan
. The Plan is hereby incorporated by reference into this Agreement and made a part hereof, and the Shares and this Agreement shall be subject to all terms and conditions of the Plan.
|
6.
|
Amendments
. The Board of Directors may amend the terms of this Agreement prospectively or retroactively at any time, but no such amendment shall impair the rights of the Participant hereunder without the Participant's consent.
|
7.
|
Survival of Terms
. This Agreement shall apply to and bind the Participant and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors.
|
8.
|
Rights as a Stockholder
. Subject to the restrictions set forth in the Plan and this Agreement, the Participant shall possess all incidents of ownership with respect to the shares, including the right to vote such shares, provided that all dividends with respect to such shares will be recorded as additional Restricted Stock and held in book entry form until the restrictions on the underlying shares shall have lapsed. Upon vesting of the underlying shares, as described in Paragraph D above, and within thirty (30) days thereafter, the additional Restricted Stock attributable to dividends on the underlying shares shall be released (paid) to the Participant free of the restrictions described in this Agreement.
|
9.
|
Authority of the Board
. The Board of Directors shall have full authority to interpret and construe the terms of the Plan and this Agreement. The
|
10.
|
Representations
. The Participant hereby acknowledges that the Participant has reviewed with the Participant's own tax advisors the Federal, state, local and foreign tax consequences of the transactions contemplated by this Agreement. The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Participant understands that the Participant (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by this Agreement.
|
11.
|
Acceptance
. The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement and that the Participant has read and understands the terms and provisions thereof, and accepts the Shares subject to all the terms and conditions of the Plan and this Agreement. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board of Directors upon any questions arising under this Agreement.
|
12.
|
Authorization
. The Participant hereby authorizes and directs the Secretary of the Company, or such other person designated by the Company, to take such steps as may be necessary to carry out any of the transactions contemplated by this Agreement, including without limitation the transfer of the Shares to the Company upon their forfeiture by the Participant.
|
13.
|
Certain Defined Terms
. Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Plan.
|
14.
|
Interpretation
. Headings to provisions of this Agreement are intended for convenience of reference only and shall have no effect on the interpretation of this Agreement.
|
15.
|
Severability
. If any provision of this Agreement is held to be invalid or unenforceable, the other provisions of this Agreement shall not be affected but shall be applied as if the invalid or unenforceable provision had not been included in this Agreement.
|
16.
|
Applicable Law
. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Georgia, except to the extent that federal law is controlling.
|
1.
|
Resignation from Employment
|
2.
|
Separation Benefits
|
(b)
|
Trade Secrets and Confidential Information:
|
/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:
|
August 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:
|
August 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:
|
|
August 3, 2017
|
/s/
Frederick J. Crawford
|
||
Name:
|
|
Frederick J. Crawford
|
Title:
|
|
Chief Financial Officer
|
Date:
|
|
August 3, 2017
|