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FORM 10-K
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ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Aflac Incorporated
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(Exact name of registrant as specified in its charter)
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Georgia
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58-1167100
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1932 Wynnton Road, Columbus, Georgia
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31999
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(Address of principal executive offices)
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(ZIP Code)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $.10 Par Value
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New York Stock Exchange
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Tokyo Stock Exchange
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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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(Do not check if smaller reporting company
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Page
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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(In millions)
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2017
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2016
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2015
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||||||
Annualized premiums in force, beginning of year
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$
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19,684
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|
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$
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19,173
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$
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18,894
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New sales, including conversions
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2,398
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2,527
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2,484
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Change in unprocessed new sales
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26
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(46
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)
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(41
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)
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|||
Premiums lapsed and surrendered
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(2,144
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)
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(2,102
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)
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(2,104
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)
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|||
Other
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(606
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)
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(351
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)
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(56
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)
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|||
Foreign currency translation adjustment
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429
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|
|
483
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(4
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)
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|||
Annualized premiums in force, end of year
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$
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19,787
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$
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19,684
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$
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19,173
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In Dollars
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In Yen
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|||||||||||||||||
(In millions of dollars and billions of yen)
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2017
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2016
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2015
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2017
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2016
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2015
|
|
||||||
Annualized premiums in force, beginning of year
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$
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13,788
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|
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$
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13,413
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|
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$
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13,226
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1,606
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1,617
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1,594
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New sales, including conversions
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846
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1,045
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|
997
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95
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114
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|
121
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Change in unprocessed new sales
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26
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(46
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)
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(41
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)
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3
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(5
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)
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(5
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)
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|||
Premiums lapsed and surrendered
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(619
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)
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(623
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)
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(578
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)
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(69
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)
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(68
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)
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(70
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)
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Other
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(734
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)
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(484
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)
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(187
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)
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(83
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)
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(52
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)
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(23
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)
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Foreign currency translation adjustment
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429
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|
483
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(4
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)
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0
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0
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0
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Annualized premiums in force, end of year
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$
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13,736
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$
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13,788
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$
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13,413
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1,552
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1,606
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1,617
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(In millions)
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2017
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2016
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2015
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||||||||||||
Annualized premiums in force, beginning of year
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$
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5,896
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|
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$
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5,760
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$
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5,668
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New sales, including conversions
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1,552
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1,482
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1,487
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Premiums lapsed
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(1,525
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)
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(1,479
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)
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(1,526
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)
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Other
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129
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133
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131
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Annualized premiums in force, end of year
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$
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6,052
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$
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5,896
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$
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5,760
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Aflac Japan
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Aflac U.S.
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Third Sector Insurance
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Accident
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Cancer
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Short-Term Disability
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Medical
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Critical Care
(1)
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Income Support
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Hospital Indemnity
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First Sector Insurance
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Dental
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Life
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Vision
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Protection
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Life (Term, Whole)
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Term
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Whole
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Savings
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WAYS
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Child Endowment
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Aflac Japan
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Aflac U.S.
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Individual/ Independent Corporate Agencies
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Independent Associates
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Affiliated Corporate Agencies
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Brokers
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Banks
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•
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granting and revoking licenses to transact business
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•
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regulating trade and claims practices
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•
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licensing of insurance agents and brokers
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•
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approval of policy forms and premium rates
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•
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standards of solvency and maintenance of specified policy benefit reserves and minimum loss ratio requirements
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•
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capital requirements
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•
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limitations on dividends to shareholders
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•
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the nature of and limitations on investments
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•
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deposits of securities for the benefit of policyholders
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•
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filing of financial statements prepared in accordance with statutory insurance accounting practices prescribed or permitted by regulatory authorities
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•
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periodic examinations of the market conduct, financial, and other affairs of insurance companies
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•
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standards of establishing and setting premium rates and the approval thereof
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•
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standards of minimum capital and reserve requirements and solvency margins, including risk-based capital measures
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•
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restrictions on, limitations on and required approval of certain transactions between the Company's insurance subsidiaries and their affiliates, including management fee arrangements
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•
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restrictions on the nature, quality and concentration of investments
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•
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restrictions on the types of terms and conditions that the Company can include in the insurance policies offered by its primary insurance operations
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•
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limitations on the amount of dividends that insurance subsidiaries can pay or foreign profits that can be repatriated
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•
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the existence and licensing status of a company under circumstances where it is not writing new or renewal business
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•
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certain required methods of accounting
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•
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reserves for unearned premiums, losses and other purposes
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•
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assignment of residual market business and potential assessments for the provision of funds necessary for the settlement of covered claims under certain policies provided by impaired, insolvent or failed insurance companies
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•
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administrative practices requirements
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•
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imposition of fines and other sanctions
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2017
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High
|
|
Low
|
||||||||
4th Quarter
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$
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89.81
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$
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81.41
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3rd Quarter
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84.51
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76.62
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2nd Quarter
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79.86
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|
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72.08
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1st Quarter
|
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73.33
|
|
|
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66.50
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2016
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High
|
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Low
|
||||||||
4th Quarter
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$
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73.95
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|
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$
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67.50
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3rd Quarter
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74.50
|
|
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71.02
|
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2nd Quarter
|
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72.17
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|
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62.59
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||
1st Quarter
|
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64.33
|
|
|
|
|
54.57
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2017
|
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2016
|
||||||||
4th Quarter
|
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$
|
.45
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|
|
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$
|
.43
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3rd Quarter
|
|
.43
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|
|
|
|
.41
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|
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||
2nd Quarter
|
|
.43
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|
|
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|
.41
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|
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||
1st Quarter
|
|
.43
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|
|
|
|
.41
|
|
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2012
|
|
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2013
|
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2014
|
|
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2015
|
|
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2016
|
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2017
|
|
Aflac Incorporated
|
100.00
|
|
|
128.91
|
|
|
120.81
|
|
|
121.44
|
|
|
144.65
|
|
|
186.59
|
|
S&P 500
|
100.00
|
|
|
132.39
|
|
|
150.51
|
|
|
152.59
|
|
|
170.84
|
|
|
208.14
|
|
S&P Life & Health Insurance
|
100.00
|
|
|
163.48
|
|
|
166.66
|
|
|
156.14
|
|
|
194.96
|
|
|
226.98
|
|
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
|
|
|
|
|
July 1 - July 31
|
|
1,066,100
|
|
|
|
|
77.88
|
|
|
|
|
1,066,100
|
|
|
|
|
14,532,728
|
|
|
|
|
August 1 - August 31
|
|
1,356,142
|
|
|
|
|
80.95
|
|
|
|
|
1,356,000
|
|
|
|
|
53,176,728
|
|
|
|
|
September 1 - September 30
|
|
325,741
|
|
|
|
|
82.04
|
|
|
|
|
321,200
|
|
|
|
|
52,855,528
|
|
|
|
|
October 1 - October 31
|
|
1,127,109
|
|
|
|
|
83.53
|
|
|
|
|
1,126,641
|
|
|
|
|
51,728,887
|
|
|
|
|
November 1 - November 30
|
|
1,001,949
|
|
|
|
|
84.47
|
|
|
|
|
1,001,600
|
|
|
|
|
50,727,287
|
|
|
|
|
December 1 - December 31
|
|
1,733,818
|
|
|
|
|
88.12
|
|
|
|
|
1,728,901
|
|
|
|
|
48,998,386
|
|
|
|
|
Total
|
|
17,911,524
|
|
|
(2)
|
|
$
|
76.03
|
|
|
|
|
17,755,068
|
|
|
|
|
48,998,386
|
|
|
(1)
|
(In millions, except for share and per-share amounts)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums, principally supplemental
health insurance |
$
|
18,531
|
|
|
$
|
19,225
|
|
|
$
|
17,570
|
|
|
$
|
19,072
|
|
|
$
|
20,135
|
|
Net investment income
|
3,220
|
|
|
3,278
|
|
|
3,135
|
|
|
3,319
|
|
|
3,293
|
|
|||||
Realized investment gains (losses)
|
(151
|
)
|
|
(14
|
)
|
|
106
|
|
|
282
|
|
|
426
|
|
|||||
Other income
|
67
|
|
|
70
|
|
|
61
|
|
|
55
|
|
|
85
|
|
|||||
Total revenues
|
21,667
|
|
|
22,559
|
|
|
20,872
|
|
|
22,728
|
|
|
23,939
|
|
|||||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Benefits and claims, net
|
12,181
|
|
|
12,919
|
|
|
11,746
|
|
|
12,937
|
|
|
13,813
|
|
|||||
Expenses
|
5,468
|
|
|
5,573
|
|
|
5,264
|
|
|
5,300
|
|
|
5,310
|
|
|||||
Total benefits and expenses
|
17,649
|
|
|
18,492
|
|
|
17,010
|
|
|
18,237
|
|
|
19,123
|
|
|||||
Pretax earnings
|
4,018
|
|
|
4,067
|
|
|
3,862
|
|
|
4,491
|
|
|
4,816
|
|
|||||
Income taxes
|
(586
|
)
|
|
1,408
|
|
|
1,329
|
|
|
1,540
|
|
|
1,658
|
|
|||||
Net earnings
|
$
|
4,604
|
|
|
$
|
2,659
|
|
|
$
|
2,533
|
|
|
$
|
2,951
|
|
|
$
|
3,158
|
|
Share and Per-Share Amounts
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings (basic)
|
$
|
11.63
|
|
|
$
|
6.46
|
|
|
$
|
5.88
|
|
|
$
|
6.54
|
|
|
$
|
6.80
|
|
Net earnings (diluted)
|
11.54
|
|
|
6.42
|
|
|
5.85
|
|
|
6.50
|
|
|
6.76
|
|
|||||
Cash dividends paid
|
1.74
|
|
|
1.66
|
|
|
1.58
|
|
|
1.50
|
|
|
1.42
|
|
|||||
Cash dividends declared
|
1.74
|
|
|
1.66
|
|
|
1.58
|
|
|
1.50
|
|
|
1.42
|
|
|||||
Weighted-average common shares used for basic
EPS (In thousands) |
396,021
|
|
|
411,471
|
|
|
430,654
|
|
|
451,204
|
|
|
464,502
|
|
|||||
Weighted-average common shares used for diluted
EPS (In thousands) |
398,930
|
|
|
413,921
|
|
|
433,172
|
|
|
454,000
|
|
|
467,408
|
|
|||||
Supplemental Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Yen/dollar exchange rate at year-end (yen)
|
113.00
|
|
|
116.49
|
|
|
120.61
|
|
|
120.55
|
|
|
105.39
|
|
|||||
Weighted-average yen/dollar exchange rate (yen)
|
112.16
|
|
|
108.70
|
|
|
120.99
|
|
|
105.46
|
|
|
97.54
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments and cash
|
$
|
123,659
|
|
|
$
|
116,361
|
|
|
$
|
105,897
|
|
|
$
|
107,341
|
|
|
$
|
108,459
|
|
Other
|
13,558
|
|
|
13,458
|
|
|
12,359
|
|
|
12,386
|
|
|
12,809
|
|
|||||
Total assets
|
$
|
137,217
|
|
|
$
|
129,819
|
|
|
$
|
118,256
|
|
|
$
|
119,727
|
|
|
$
|
121,268
|
|
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy liabilities
|
$
|
99,147
|
|
|
$
|
93,726
|
|
|
$
|
87,631
|
|
|
$
|
83,933
|
|
|
$
|
89,402
|
|
Income taxes
|
4,745
|
|
|
5,387
|
|
|
4,340
|
|
|
5,293
|
|
|
3,718
|
|
|||||
Notes payable
|
5,289
|
|
|
5,360
|
|
|
4,971
|
|
|
5,242
|
|
|
4,858
|
|
|||||
Other liabilities
|
3,438
|
|
|
4,864
|
|
|
3,606
|
|
|
6,912
|
|
|
8,670
|
|
|||||
Shareholders’ equity
|
24,598
|
|
|
20,482
|
|
|
17,708
|
|
|
18,347
|
|
|
14,620
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
137,217
|
|
|
$
|
129,819
|
|
|
$
|
118,256
|
|
|
$
|
119,727
|
|
|
$
|
121,268
|
|
•
|
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 the Company's industry
|
•
|
failure to comply with restrictions on patient privacy and information security
|
•
|
extensive regulation and changes in law or regulation by governmental authorities
|
•
|
tax rates applicable to the Company may change
|
•
|
defaults and credit downgrades of investments
|
•
|
ability to attract and retain qualified sales associates, brokers, employees, and distribution partners
|
•
|
decline in creditworthiness of other financial institutions
|
•
|
subsidiaries' ability to pay dividends to Aflac Incorporated
|
•
|
decreases in the Company's financial strength or debt ratings
|
•
|
inherent limitations to risk management policies and procedures
|
•
|
concentration of the Company's 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 the Company's investments
|
•
|
catastrophic events including, but not necessarily limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, terrorism or other acts of violence, and damage incidental to such events
|
•
|
changes in U.S. and/or Japanese accounting standards
|
•
|
loss of consumer trust resulting from events external to the Company's 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
|
•
|
The Company's Business
|
•
|
Performance Highlights
|
•
|
Critical Accounting Estimates
|
•
|
Results of Operations, consolidated and by segment
|
•
|
Analysis of Financial Condition, including discussion of market risks of financial instruments
|
•
|
Capital Resources and Liquidity, including discussion of availability of capital and the sources and uses of cash
|
(In millions)
|
2017
|
|
2016
|
||||
Japan segment:
|
|
|
|
||||
Future policy benefits
|
$
|
73,661
|
|
|
$
|
68,291
|
|
Unpaid policy claims
|
2,692
|
|
|
2,393
|
|
||
Other policy liabilities
|
12,779
|
|
|
13,457
|
|
||
Total Japan policy liabilities
|
$
|
89,132
|
|
|
$
|
84,141
|
|
U.S. segment:
|
|
|
|
||||
Future policy benefits
|
$
|
8,806
|
|
|
$
|
8,442
|
|
Unpaid policy claims
|
1,700
|
|
|
1,652
|
|
||
Other policy liabilities
|
119
|
|
|
118
|
|
||
Total U.S. policy liabilities
|
$
|
10,625
|
|
|
$
|
10,212
|
|
Consolidated:
|
|
|
|
||||
Future policy benefits
|
$
|
81,857
|
|
|
$
|
76,106
|
|
Unpaid policy claims
|
4,392
|
|
|
4,045
|
|
||
Other policy liabilities
|
12,898
|
|
|
13,575
|
|
||
Total consolidated policy liabilities
(1)
|
$
|
99,147
|
|
|
$
|
93,726
|
|
(In millions of dollars and billions of yen)
|
2017
|
|
2016
|
|
2015
|
|
||||||
Aflac U.S.
|
$
|
8,806
|
|
|
$
|
8,442
|
|
|
$
|
8,087
|
|
|
Growth rate
|
4.3
|
%
|
|
4.4
|
%
|
|
4.6
|
%
|
|
|||
Aflac Japan
|
$
|
73,661
|
|
|
$
|
68,291
|
|
|
$
|
62,244
|
|
|
Growth rate
|
7.9
|
%
|
|
9.7
|
%
|
|
7.5
|
%
|
|
|||
Consolidated
|
$
|
81,857
|
|
|
$
|
76,106
|
|
|
$
|
69,687
|
|
|
Growth rate
|
7.6
|
%
|
|
9.2
|
%
|
|
6.2
|
%
|
|
|||
Yen/dollar exchange rate (end of period)
|
113.00
|
|
|
116.49
|
|
|
120.61
|
|
|
|||
Aflac Japan (in yen)
|
8,324
|
|
|
7,955
|
|
|
7,507
|
|
|
|||
Growth rate
|
4.6
|
%
|
|
6.0
|
%
|
|
7.5
|
%
|
|
(In millions)
|
|
Total Severity
|
|
||||||||||||||||||||||||||
Total Frequency
|
Decrease
by 2% |
|
Decrease
by 1% |
|
Unchanged
|
|
Increase
by 1% |
|
Increase
by 2% |
||||||||||||||||||||
Increase by 2%
|
|
$
|
0
|
|
|
|
|
$
|
24
|
|
|
|
|
$
|
49
|
|
|
|
|
$
|
74
|
|
|
|
|
$
|
99
|
|
|
Increase by 1%
|
|
(24
|
)
|
|
|
|
0
|
|
|
|
|
24
|
|
|
|
|
49
|
|
|
|
|
74
|
|
|
|||||
Unchanged
|
|
(48
|
)
|
|
|
|
(24
|
)
|
|
|
|
0
|
|
|
|
|
24
|
|
|
|
|
49
|
|
|
|||||
Decrease by 1%
|
|
(72
|
)
|
|
|
|
(48
|
)
|
|
|
|
(24
|
)
|
|
|
|
0
|
|
|
|
|
24
|
|
|
|||||
Decrease by 2%
|
|
(95
|
)
|
|
|
|
(72
|
)
|
|
|
|
(48
|
)
|
|
|
|
(24
|
)
|
|
|
|
0
|
|
|
|
In Millions
|
|
Per Diluted Share
|
||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Net earnings
|
$
|
4,604
|
|
|
$
|
2,659
|
|
|
$
|
2,533
|
|
|
$
|
11.54
|
|
|
$
|
6.42
|
|
|
$
|
5.85
|
|
Items impacting net earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Realized investment (gains) losses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities transactions and impairments
|
9
|
|
|
(55
|
)
|
|
(150
|
)
|
|
.02
|
|
|
(.13
|
)
|
|
(.33
|
)
|
||||||
Certain derivative and foreign currency
(gains) losses (2),(3),(4) |
(9
|
)
|
|
(32
|
)
|
|
56
|
|
|
(.02
|
)
|
|
(.08
|
)
|
|
.12
|
|
||||||
Other and non-recurring (income) loss
(4)
|
69
|
|
|
137
|
|
|
233
|
|
|
.17
|
|
|
.33
|
|
|
.53
|
|
||||||
Income tax (benefit) expense on items
excluded from operating earnings (2),(5) |
(24
|
)
|
|
(18
|
)
|
|
(48
|
)
|
|
(.06
|
)
|
|
(.04
|
)
|
|
(.11
|
)
|
||||||
Tax reform adjustment
(6)
|
(1,933
|
)
|
|
0
|
|
|
0
|
|
|
(4.85
|
)
|
|
.00
|
|
|
.00
|
|
||||||
Operating earnings
|
2,716
|
|
|
2,691
|
|
|
2,624
|
|
|
6.81
|
|
|
6.50
|
|
|
6.06
|
|
||||||
Current period foreign currency impact
(7)
|
41
|
|
|
N/A
|
|
|
N/A
|
|
|
.10
|
|
|
N/A
|
|
|
N/A
|
|
||||||
Operating earnings excluding current period
foreign currency impact (8) |
$
|
2,757
|
|
|
$
|
2,691
|
|
|
$
|
2,624
|
|
|
$
|
6.91
|
|
|
$
|
6.50
|
|
|
$
|
6.06
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Net premium income
|
$
|
12,752
|
|
|
$
|
13,537
|
|
|
$
|
12,046
|
|
Net investment income:
|
|
|
|
|
|
||||||
Yen-denominated investment income
|
1,294
|
|
|
1,346
|
|
|
1,227
|
|
|||
U.S. dollar-denominated investment income
|
1,169
|
|
|
1,208
|
|
|
1,209
|
|
|||
Net investment income
|
2,463
|
|
|
2,554
|
|
|
2,436
|
|
|||
Amortized hedge costs related to foreign currency denominated
investments |
228
|
|
|
186
|
|
|
72
|
|
|||
Net investment income, less amortized hedge costs
|
2,235
|
|
|
2,368
|
|
|
2,364
|
|
|||
Other income (loss)
|
41
|
|
|
40
|
|
|
31
|
|
|||
Total operating revenues
|
15,028
|
|
|
15,945
|
|
|
14,441
|
|
|||
Benefits and claims, net
|
9,087
|
|
|
9,828
|
|
|
8,705
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Amortization of deferred policy acquisition costs
|
630
|
|
|
644
|
|
|
578
|
|
|||
Insurance commissions
|
736
|
|
|
787
|
|
|
719
|
|
|||
Insurance and other expenses
|
1,521
|
|
|
1,538
|
|
|
1,336
|
|
|||
Total operating expenses
|
2,887
|
|
|
2,969
|
|
|
2,633
|
|
|||
Total benefits and expenses
|
11,974
|
|
|
12,797
|
|
|
11,338
|
|
|||
Pretax operating earnings
(1)
|
$
|
3,054
|
|
|
$
|
3,148
|
|
|
$
|
3,103
|
|
Weighted-average yen/dollar exchange rate
|
112.16
|
|
|
108.70
|
|
|
120.99
|
|
|
In Dollars
|
|
In Yen
|
||||||||||||||
Percentage change over previous period:
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net premium income
|
(5.8
|
)%
|
|
12.4
|
%
|
|
(13.1
|
)%
|
|
(2.7
|
)%
|
|
.8
|
%
|
|
(.4
|
)%
|
Net investment income, less amortized
hedge costs
|
(5.6
|
)
|
|
.2
|
|
|
(10.0
|
)
|
|
(2.0
|
)
|
|
(10.3
|
)
|
|
3.0
|
|
Total operating revenues
|
(5.8
|
)
|
|
10.4
|
|
|
(12.6
|
)
|
|
(2.5
|
)
|
|
(1.0
|
)
|
|
.2
|
|
Pretax operating earnings
(1)
|
(3.0
|
)
|
|
1.5
|
|
|
(9.4
|
)
|
|
.6
|
|
|
(9.0
|
)
|
|
4.0
|
|
|
Including Foreign
Currency Changes |
|
Excluding Foreign
Currency Changes (2) |
||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net investment income, less
amortized hedge costs |
(2.0
|
)%
|
|
(10.3
|
)%
|
|
3.0
|
%
|
|
(3.6
|
)%
|
|
(5.1
|
)%
|
|
(3.8
|
)%
|
Total operating revenues
|
(2.5
|
)
|
|
(1.0
|
)
|
|
.2
|
|
|
(2.8
|
)
|
|
(.1
|
)
|
|
(.9
|
)
|
Pretax operating earnings
(1)
|
.6
|
|
|
(9.0
|
)
|
|
4.0
|
|
|
(.5
|
)
|
|
(5.3
|
)
|
|
(1.0
|
)
|
Ratios to total revenues:
|
2017
|
|
2016
|
|
2015
|
|
|||
Benefits and claims, net
|
60.4
|
%
|
|
61.6
|
%
|
|
60.3
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|||
Amortization of deferred policy acquisition costs
|
4.2
|
|
|
4.0
|
|
|
4.0
|
|
|
Insurance commissions
|
4.9
|
|
|
4.9
|
|
|
5.0
|
|
|
Insurance and other expenses
|
10.1
|
|
|
9.8
|
|
|
9.2
|
|
|
Total operating expenses
|
19.2
|
|
|
18.7
|
|
|
18.2
|
|
|
Pretax operating earnings
(1)
|
20.4
|
|
|
19.7
|
|
|
21.5
|
|
|
|
In Dollars
|
|
In Yen
|
|||||||||||||||||
(In millions of dollars and billions of yen)
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|||||||||
New annualized premium sales
|
$
|
846
|
|
|
$
|
1,045
|
|
|
$
|
997
|
|
|
94.9
|
|
|
113.7
|
|
|
120.9
|
|
Increase (decrease) over prior period
|
(19.0
|
)%
|
|
4.8
|
%
|
|
(7.7
|
)%
|
|
(16.6
|
)%
|
|
(5.9
|
)%
|
|
5.5
|
%
|
|
2017
|
|
2016
|
|
2015
|
|
|||
Cancer
|
55.8
|
%
|
|
46.6
|
%
|
|
40.4
|
%
|
|
Medical
|
34.1
|
|
|
26.0
|
|
|
26.4
|
|
|
Income support
|
2.3
|
|
|
0.0
|
|
|
0.0
|
|
|
Ordinary life:
|
|
|
|
|
|
|
|||
WAYS
|
.6
|
|
|
11.9
|
|
|
16.7
|
|
|
Child endowment
|
.5
|
|
|
6.4
|
|
|
8.2
|
|
|
Other ordinary life
(1)
|
6.0
|
|
|
6.2
|
|
|
6.2
|
|
|
Other
|
.7
|
|
|
2.9
|
|
|
2.1
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
(In millions)
|
|
2017
|
|
2016
|
|
||||
Yen-denominated:
|
|
|
|
|
|
||||
Fixed maturities:
|
|
|
|
|
|
||||
Japan government and agencies
|
|
$
|
5,367
|
|
|
$
|
6,312
|
|
|
Other fixed maturities
|
|
1,579
|
|
|
1,718
|
|
|
||
Equities
(1)
|
|
189
|
|
|
259
|
|
|
||
Total yen-denominated
|
|
$
|
7,135
|
|
|
$
|
8,289
|
|
|
|
|
|
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
||||
Fixed maturities:
|
|
|
|
|
|
||||
Other fixed maturities
|
|
$
|
466
|
|
|
$
|
602
|
|
|
Infrastructure debt
|
|
134
|
|
|
14
|
|
|
||
Bank loans
(2)
|
|
0
|
|
|
535
|
|
|
||
Equities
(1)
|
|
158
|
|
|
637
|
|
|
||
Other investments:
|
|
|
|
|
|
||||
Transitional real estate loans
|
|
1,063
|
|
|
0
|
|
|
||
Commercial mortgage loans
|
|
48
|
|
|
750
|
|
|
||
Middle market loans
|
|
548
|
|
|
76
|
|
|
||
Limited partnerships
|
|
96
|
|
|
0
|
|
|
||
Total dollar-denominated
|
|
$
|
2,513
|
|
|
$
|
2,614
|
|
|
Total Aflac Japan purchases
|
|
$
|
9,648
|
|
|
$
|
10,903
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Total purchases for the period (in millions)
(1)
|
$
|
9,552
|
|
|
$
|
10,903
|
|
|
$
|
5,258
|
|
New money yield
(1),(2)
|
1.98
|
%
|
|
1.40
|
%
|
|
2.89
|
%
|
|||
Return on average invested assets
(3)
|
2.31
|
|
|
2.47
|
|
|
2.81
|
|
|||
Portfolio book yield, including U.S. dollar-denominated investments, end of period
(1)
|
2.56
|
%
|
|
2.62
|
%
|
|
2.80
|
%
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||
Net premium income
|
$
|
5,563
|
|
|
$
|
5,454
|
|
|
$
|
5,347
|
|
Net investment income
|
721
|
|
|
703
|
|
|
678
|
|
|||
Other income
|
5
|
|
|
10
|
|
|
8
|
|
|||
Total operating revenues
|
6,289
|
|
|
6,167
|
|
|
6,033
|
|
|||
Benefits and claims
|
2,885
|
|
|
2,869
|
|
|
2,873
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Amortization of deferred policy acquisition costs
|
502
|
|
|
497
|
|
|
488
|
|
|||
Insurance commissions
|
580
|
|
|
580
|
|
|
585
|
|
|||
Insurance and other expenses
|
1,077
|
|
|
1,013
|
|
|
986
|
|
|||
Total operating expenses
|
2,159
|
|
|
2,090
|
|
|
2,059
|
|
|||
Total benefits and expenses
|
5,044
|
|
|
4,959
|
|
|
4,932
|
|
|||
Pretax operating earnings
(1)
|
$
|
1,245
|
|
|
$
|
1,208
|
|
|
$
|
1,101
|
|
Percentage change over previous period:
|
|
|
|
|
|
||||||
Net premium income
|
2.0
|
%
|
|
2.0
|
%
|
|
2.6
|
%
|
|||
Net investment income
|
2.6
|
|
|
3.8
|
|
|
5.0
|
|
|||
Total operating revenues
|
2.0
|
|
|
2.2
|
|
|
3.0
|
|
|||
Pretax operating earnings
(1)
|
3.1
|
|
|
9.7
|
|
|
2.7
|
|
Ratios to total revenues:
|
2017
|
|
2016
|
|
2015
|
|
|||
Benefits and claims
|
45.9
|
%
|
|
46.5
|
%
|
|
47.6
|
%
|
|
Operating expenses:
|
|
|
|
|
|
|
|||
Amortization of deferred policy acquisition costs
|
8.0
|
|
|
8.1
|
|
|
8.1
|
|
|
Insurance commissions
|
9.2
|
|
|
9.4
|
|
|
9.7
|
|
|
Insurance and other expenses
|
17.1
|
|
|
16.4
|
|
|
16.3
|
|
|
Total operating expenses
|
34.3
|
|
|
33.9
|
|
|
34.1
|
|
|
Pretax operating earnings
(1)
|
19.8
|
|
|
19.6
|
|
|
18.3
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|
||||||
New annualized premium sales
|
$
|
1,552
|
|
|
$
|
1,482
|
|
|
$
|
1,487
|
|
|
Increase (decrease) over prior period
|
4.7
|
%
|
|
(.3
|
)%
|
|
3.7
|
%
|
|
|
2017
|
|
2016
|
|
2015
|
|
|||
Accident
|
29.4
|
%
|
|
29.5
|
%
|
|
29.9
|
%
|
|
Short-term disability
|
22.9
|
|
|
23.5
|
|
|
23.2
|
|
|
Critical care
(1)
|
22.8
|
|
|
22.1
|
|
|
21.9
|
|
|
Hospital indemnity
|
14.8
|
|
|
14.8
|
|
|
14.6
|
|
|
Dental/vision
|
5.1
|
|
|
5.0
|
|
|
5.2
|
|
|
Life
|
5.0
|
|
|
5.1
|
|
|
5.2
|
|
|
Total
|
100.0
|
%
|
|
100.0%
|
|
100.0
|
%
|
|
|
|
2017
|
|
2016
|
|
||||
Fixed maturities:
|
|
|
|
|
|
||||
Other fixed maturities
|
|
$
|
836
|
|
|
$
|
669
|
|
|
Infrastructure debt
|
|
60
|
|
|
2
|
|
|
||
Equities
|
|
56
|
|
|
156
|
|
|
||
Other investments:
|
|
|
|
|
|
||||
Transitional real estate loans
|
|
249
|
|
|
0
|
|
|
||
Commercial mortgage loans
|
|
34
|
|
|
110
|
|
|
||
Middle market loans
|
|
199
|
|
|
207
|
|
|
||
Limited partnerships
|
|
16
|
|
|
0
|
|
|
||
Total Aflac U.S. Purchases
|
|
$
|
1,450
|
|
|
$
|
1,144
|
|
|
|
2017
|
|
2016
|
|
2015
|
|
||||||
Total purchases for period (in millions)
(1)
|
$
|
1,434
|
|
|
$
|
1,144
|
|
|
$
|
904
|
|
|
New money yield
(1), (2)
|
4.49
|
%
|
|
3.89
|
%
|
|
4.45
|
%
|
|
|||
Return on average invested assets
(3)
|
5.07
|
|
|
5.04
|
|
|
5.19
|
|
|
|||
Portfolio book yield, end of period
(1)
|
5.52
|
%
|
|
5.60
|
%
|
|
5.77
|
%
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
|
||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
Securities available for sale, at fair value:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
67,610
|
|
|
$
|
59,903
|
|
|
$
|
13,545
|
|
|
$
|
13,250
|
|
|
Perpetual securities
|
1,728
|
|
|
1,577
|
|
|
61
|
|
|
56
|
|
|
||||
Equity securities
|
868
|
|
|
1,185
|
|
|
92
|
|
|
124
|
|
|
||||
Total available for sale
|
70,206
|
|
|
62,665
|
|
|
13,698
|
|
|
13,430
|
|
|
||||
Securities held to maturity, at amortized cost:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
31,430
|
|
|
33,350
|
|
|
0
|
|
|
0
|
|
|
||||
Total held to maturity
|
31,430
|
|
|
33,350
|
|
|
0
|
|
|
0
|
|
|
||||
Other investments:
|
|
|
|
|
|
|
|
|
||||||||
Transitional real estate loans
|
986
|
|
|
0
|
|
|
249
|
|
|
0
|
|
|
||||
Commercial mortgage loans
|
767
|
|
|
745
|
|
|
141
|
|
|
110
|
|
|
||||
Middle market loans
|
527
|
|
|
74
|
|
|
332
|
|
|
245
|
|
|
||||
Policy loans
|
198
|
|
|
174
|
|
|
12
|
|
|
10
|
|
|
||||
Short-term investments
|
57
|
|
|
88
|
|
|
0
|
|
|
0
|
|
|
||||
Other
|
98
|
|
|
0
|
|
|
31
|
|
|
0
|
|
|
||||
Total other investments
|
2,633
|
|
|
1,081
|
|
|
765
|
|
|
365
|
|
|
||||
Total investments
|
104,269
|
|
|
97,096
|
|
|
14,463
|
|
|
13,795
|
|
|
||||
Cash and cash equivalents
|
636
|
|
|
1,313
|
|
|
1,011
|
|
|
1,428
|
|
|
||||
Total investments and cash
(1)
|
$
|
104,905
|
|
|
$
|
98,409
|
|
|
$
|
15,474
|
|
|
$
|
15,223
|
|
|
|
|
2017
|
|
|
|
2016
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.0
|
%
|
|
|
|
.9
|
%
|
|
|
|
2.0
|
%
|
|
|
|
1.9
|
%
|
|
AA
|
|
3.9
|
|
|
|
|
4.0
|
|
|
|
|
5.0
|
|
|
|
|
5.0
|
|
|
A
|
|
65.8
|
|
|
|
|
66.9
|
|
|
|
|
63.1
|
|
|
|
|
65.2
|
|
|
BBB
|
|
24.0
|
|
|
|
|
23.3
|
|
|
|
|
24.6
|
|
|
|
|
23.2
|
|
|
BB or lower
|
|
5.3
|
|
|
|
|
4.9
|
|
|
|
|
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.
|
|
B
|
|
|
|
$
|
142
|
|
|
|
|
$
|
99
|
|
|
|
|
$
|
(43
|
)
|
|
Noble Holdings International Ltd.
|
|
CCC
|
|
|
|
98
|
|
|
|
|
65
|
|
|
|
|
(33
|
)
|
|
|||
Transocean Inc.
|
|
B
|
|
|
|
72
|
|
|
|
|
61
|
|
|
|
|
(11
|
)
|
|
|||
National Oilwell Varco Inc.
|
|
BBB
|
|
|
|
98
|
|
|
|
|
88
|
|
|
|
|
(10
|
)
|
|
|||
Weatherford Bermuda Holdings Ltd.
|
|
CCC
|
|
|
|
49
|
|
|
|
|
40
|
|
|
|
|
(9
|
)
|
|
|||
AXA
|
|
BBB
|
|
|
|
289
|
|
|
|
|
280
|
|
|
|
|
(9
|
)
|
|
|||
Bakers Hughes Inc.
|
|
A
|
|
|
|
122
|
|
|
|
|
114
|
|
|
|
|
(8
|
)
|
|
|||
Mattel Inc.
|
|
BB
|
|
|
|
45
|
|
|
|
|
38
|
|
|
|
|
(7
|
)
|
|
|||
Time Warner Cable Inc.
|
|
BBB
|
|
|
|
117
|
|
|
|
|
111
|
|
|
|
|
(6
|
)
|
|
|||
Cenovus Energy Inc.
|
|
BBB
|
|
|
|
78
|
|
|
|
|
73
|
|
|
|
|
(5
|
)
|
|
|
December 31, 2017
|
|
|
||||||||||||||
(In millions)
|
Par
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Unrealized
Gain
(Loss)
|
|
|
||||||||
Republic of South Africa
|
$
|
442
|
|
|
$
|
442
|
|
|
$
|
473
|
|
|
$
|
31
|
|
|
|
Investcorp Capital Limited
|
377
|
|
|
377
|
|
|
374
|
|
|
(3
|
)
|
|
|
||||
Navient Corp.
|
295
|
|
|
157
|
|
|
219
|
|
|
62
|
|
|
|
||||
Republic of Tunisia
|
265
|
|
|
156
|
|
|
180
|
|
|
24
|
|
|
|
||||
KLM Royal Dutch Airlines
|
265
|
|
|
195
|
|
|
234
|
|
|
39
|
|
|
|
||||
Barclays Bank PLC
|
241
|
|
|
157
|
|
|
244
|
|
|
87
|
|
|
|
||||
Deutsche Postbank AG
|
212
|
|
|
212
|
|
|
213
|
|
|
1
|
|
|
|
||||
Telecom Italia SpA
|
177
|
|
|
178
|
|
|
250
|
|
|
72
|
|
|
|
||||
Generalitat de Catalunya
|
142
|
|
|
52
|
|
|
119
|
|
|
67
|
|
|
|
||||
Transnet
|
133
|
|
|
133
|
|
|
136
|
|
|
3
|
|
|
|
||||
Diamond Offshore Drilling Inc.
|
124
|
|
|
142
|
|
|
99
|
|
|
(43
|
)
|
|
|
||||
IKB Deutsche Industriebank AG
|
115
|
|
|
49
|
|
|
95
|
|
|
46
|
|
|
|
||||
Alcoa, Inc.
|
100
|
|
|
82
|
|
|
109
|
|
|
27
|
|
|
|
||||
Republic of Trinidad and Tobago
|
97
|
|
|
97
|
|
|
102
|
|
|
5
|
|
|
|
||||
Noble Holdings International Ltd.
|
95
|
|
|
98
|
|
|
65
|
|
|
(33
|
)
|
|
|
||||
EMC Corp.
|
85
|
|
|
86
|
|
|
81
|
|
|
(5
|
)
|
|
|
||||
Petrobras International Finance
Company |
84
|
|
|
84
|
|
|
86
|
|
|
2
|
|
|
|
||||
Teck Resources Ltd.
|
70
|
|
|
74
|
|
|
70
|
|
|
(4
|
)
|
|
|
||||
Nabors Industries Inc.
|
69
|
|
|
66
|
|
|
71
|
|
|
5
|
|
|
|
||||
Transocean Inc.
|
68
|
|
|
72
|
|
|
61
|
|
|
(11
|
)
|
|
|
||||
CF Industries Inc.
|
60
|
|
|
59
|
|
|
59
|
|
|
0
|
|
|
|
||||
National Gas Co. Trinidad and
Tobago |
52
|
|
|
50
|
|
|
53
|
|
|
3
|
|
|
|
||||
Votorantim Overseas Trading
IV Ltd. |
50
|
|
|
49
|
|
|
54
|
|
|
5
|
|
|
|
||||
UPM-Kymmene
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
|
||||
Cenovus Energy Inc.
|
*
|
|
|
*
|
|
|
*
|
|
|
*
|
|
|
|
||||
Other Issuers (below $50 million
in par value) |
305
|
|
|
290
|
|
|
295
|
|
|
5
|
|
|
|
||||
Subtotal
(1)
|
3,923
|
|
|
3,357
|
|
|
3,742
|
|
|
385
|
|
|
|
||||
Senior secured bank loans
|
1,692
|
|
|
1,749
|
|
|
1,691
|
|
|
(58
|
)
|
|
|
||||
High yield corporate bonds
|
548
|
|
|
544
|
|
|
565
|
|
|
21
|
|
|
|
||||
Middle market loans, net of
reserves (2) |
871
|
|
|
859
|
|
|
860
|
|
|
1
|
|
|
|
||||
Grand Total
|
$
|
7,034
|
|
|
$
|
6,509
|
|
|
$
|
6,858
|
|
|
$
|
349
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Publicly issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
$
|
81,408
|
|
|
|
|
$
|
92,950
|
|
|
|
|
$
|
75,406
|
|
|
|
|
$
|
86,132
|
|
|
Perpetual securities
|
|
46
|
|
|
|
|
75
|
|
|
|
|
51
|
|
|
|
|
75
|
|
|
||||
Equity securities
|
|
831
|
|
|
|
|
1,006
|
|
|
|
|
1,196
|
|
|
|
|
1,300
|
|
|
||||
Total publicly issued
|
|
82,285
|
|
|
|
|
94,031
|
|
|
|
|
76,653
|
|
|
|
|
87,507
|
|
|
||||
Privately issued securities:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
|
23,692
|
|
|
|
|
27,646
|
|
|
|
|
24,307
|
|
|
|
|
27,649
|
|
|
||||
Perpetual securities
|
|
1,416
|
|
|
|
|
1,714
|
|
|
|
|
1,455
|
|
|
|
|
1,558
|
|
|
||||
Equity securities
|
|
15
|
|
|
|
|
17
|
|
|
|
|
7
|
|
|
|
|
9
|
|
|
||||
Total privately issued
|
|
25,123
|
|
|
|
|
29,377
|
|
|
|
|
25,769
|
|
|
|
|
29,216
|
|
|
||||
Total investment securities
|
|
$
|
107,408
|
|
|
|
|
$
|
123,408
|
|
|
|
|
$
|
102,422
|
|
|
|
|
$
|
116,723
|
|
|
(Amortized cost, in millions)
|
2017
|
|
2016
|
|
||||
Privately issued securities as a percentage of total investment securities
|
23.4
|
%
|
|
25.2
|
%
|
|
||
Privately issued securities held by Aflac Japan
|
$
|
22,354
|
|
|
$
|
23,104
|
|
|
Privately issued securities held by Aflac Japan as a percentage of total
investment securities |
20.8
|
%
|
|
22.6
|
%
|
|
(Amortized cost, in millions)
|
2017
|
|
2016
|
|
||||
Privately issued reverse-dual currency securities
|
$
|
5,669
|
|
|
$
|
5,628
|
|
|
Publicly issued collateral structured as reverse-dual currency securities
|
1,390
|
|
|
1,349
|
|
|
||
Total reverse-dual currency securities
|
$
|
7,059
|
|
|
$
|
6,977
|
|
|
Reverse-dual currency securities as a percentage of total investment
securities |
6.6
|
%
|
|
6.8
|
%
|
|
|
2017
|
|
2016
|
||||||||||
(In millions)
|
Amortized
Cost
|
Fair
Value
|
|
Amortized
Cost
|
Fair
Value
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
||||||||
Fixed maturities (excluding bank loans)
|
$
|
19,614
|
|
$
|
21,849
|
|
|
$
|
19,123
|
|
$
|
20,839
|
|
Fixed maturities - bank loans (floating rate)
|
1,936
|
|
1,865
|
|
|
2,018
|
|
1,916
|
|
||||
Perpetuals
|
8
|
|
14
|
|
|
12
|
|
20
|
|
||||
Equities
|
147
|
|
173
|
|
|
464
|
|
480
|
|
||||
Other investments:
|
|
|
|
|
|
||||||||
Transitional real estate loans (floating rate)
|
986
|
|
984
|
|
|
0
|
|
0
|
|
||||
Commercial mortgage loans (floating rate)
|
767
|
|
753
|
|
|
745
|
|
715
|
|
||||
Middle market loans (floating rate)
|
527
|
|
530
|
|
|
74
|
|
74
|
|
||||
Alternative investments
|
97
|
|
97
|
|
|
0
|
|
0
|
|
||||
Total U.S. dollar-denominated investments in Aflac Japan
|
$
|
24,082
|
|
$
|
26,265
|
|
|
$
|
22,436
|
|
$
|
24,044
|
|
|
2017
|
|
2016
|
|
2015
|
FX forward notional at end of period (in billions of dollars)
(2)
|
9.3
|
|
11.8
|
|
13.1
|
Weighted average original tenor (in months)
(3)
|
33.1
|
|
20.6
|
|
8.8
|
Weighted average remaining tenor (in months)
(4)
|
27.7
|
|
18.5
|
|
6.4
|
Annualized amortized hedge costs (in basis points)
(5)
|
211
|
|
149
|
|
53
|
Amortized hedge costs for period (in millions of dollars)
|
(228)
|
|
(186)
|
|
(72)
|
(In millions)
|
2017
|
|
2016
|
||||||||
Aflac Japan net assets
|
|
$
|
19,962
|
|
|
|
|
$
|
16,215
|
|
|
Aflac Japan unhedged U.S. dollar-denominated net assets
|
|
(10,933
|
)
|
|
|
|
(9,694
|
)
|
|
||
Consolidated yen-denominated net assets (liabilities)
|
|
$
|
9,029
|
|
|
|
|
$
|
6,521
|
|
|
(In millions)
|
2017
|
|
2016
|
|
% Change
|
|
|||||
Aflac Japan
|
$
|
6,150
|
|
|
$
|
5,765
|
|
|
6.7
|
%
|
(1)
|
Aflac U.S.
|
3,355
|
|
|
3,228
|
|
|
3.9
|
|
|
||
Total
|
$
|
9,505
|
|
|
$
|
8,993
|
|
|
5.7
|
%
|
|
(In millions)
|
2017
|
|
2016
|
|
% Change
|
|
|||||
Aflac Japan
|
$
|
89,132
|
|
|
$
|
84,141
|
|
|
5.9
|
%
|
(1)
|
Aflac U.S.
|
10,625
|
|
|
10,212
|
|
|
4.0
|
|
|
||
Other
|
138
|
|
|
91
|
|
|
51.6
|
|
|
||
Intercompany eliminations
(2)
|
(748
|
)
|
|
(718
|
)
|
|
4.2
|
|
|
||
Total
|
$
|
99,147
|
|
|
$
|
93,726
|
|
|
5.8
|
%
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|
||||||
Dividends declared or paid by Aflac
|
$
|
2,590
|
|
(1)
|
$
|
2,000
|
|
|
$
|
2,393
|
|
|
Management fees paid by Aflac
|
291
|
|
|
260
|
|
|
255
|
|
|
(In millions)
|
Total
Liability (1) |
|
Total
Payments |
|
Less
Than One Year |
|
One to
Three Years
|
|
Four to
Five Years |
|
After
Five Years |
||||||||||||
Future policy benefits liability
(Note 7)
(2)
|
$
|
81,857
|
|
|
$
|
244,395
|
|
|
$
|
8,734
|
|
|
$
|
17,297
|
|
|
$
|
17,175
|
|
|
$
|
201,189
|
|
Unpaid policy claims liability
(Note 7)
(3)
|
4,392
|
|
|
4,392
|
|
|
2,848
|
|
|
886
|
|
|
388
|
|
|
270
|
|
||||||
Other policyholders' funds
(Note 7)
(3)
|
6,939
|
|
|
10,238
|
|
|
313
|
|
|
361
|
|
|
510
|
|
|
9,054
|
|
||||||
Long-term debt – principal
(Note 9)
|
5,267
|
|
|
5,308
|
|
|
0
|
|
|
550
|
|
|
394
|
|
|
4,364
|
|
||||||
Long-term debt – interest
(Note 9)
|
35
|
|
|
2,152
|
|
|
168
|
|
|
326
|
|
|
298
|
|
|
1,360
|
|
||||||
Cash collateral on loaned securities
(Note 3)
|
606
|
|
|
606
|
|
|
606
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
Operating service agreements
(Note 15)
|
N/A
|
|
(4)
|
539
|
|
|
176
|
|
|
308
|
|
|
55
|
|
|
0
|
|
||||||
Operating lease obligations
(Note 15)
|
N/A
|
|
(4)
|
185
|
|
|
61
|
|
|
57
|
|
|
37
|
|
|
30
|
|
||||||
Capitalized lease obligations
(Note 9)
|
22
|
|
|
22
|
|
|
8
|
|
|
10
|
|
|
3
|
|
|
1
|
|
||||||
Total contractual obligations
|
$
|
99,118
|
|
|
$
|
267,837
|
|
|
$
|
12,914
|
|
|
$
|
19,795
|
|
|
$
|
18,860
|
|
|
$
|
216,268
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|
||||||
Operating activities
|
$
|
6,128
|
|
|
$
|
5,987
|
|
|
$
|
6,776
|
|
|
Investing activities
|
(5,431
|
)
|
|
(3,855
|
)
|
|
(4,897
|
)
|
|
|||
Financing activities
|
(2,065
|
)
|
|
(1,619
|
)
|
|
(2,187
|
)
|
|
|||
Exchange effect on cash and cash equivalents
|
0
|
|
|
(4
|
)
|
|
0
|
|
|
|||
Net change in cash and cash equivalents
|
$
|
(1,368
|
)
|
|
$
|
509
|
|
|
$
|
(308
|
)
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|
||||||
Aflac Japan
|
$
|
4,959
|
|
|
$
|
4,605
|
|
|
$
|
5,285
|
|
|
Aflac U.S. and other operations
|
1,169
|
|
|
1,382
|
|
|
1,491
|
|
|
|||
Total
|
$
|
6,128
|
|
|
$
|
5,987
|
|
|
$
|
6,776
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|
||||||
Aflac Japan
|
$
|
(4,504
|
)
|
|
$
|
(3,075
|
)
|
|
$
|
(4,147
|
)
|
|
Aflac U.S. and other operations
|
(927
|
)
|
|
(780
|
)
|
|
(750
|
)
|
|
|||
Total
|
$
|
(5,431
|
)
|
|
$
|
(3,855
|
)
|
|
$
|
(4,897
|
)
|
|
(In millions of dollars and thousands of shares)
|
2017
|
|
2016
|
|
2015
|
|
||||||
Treasury stock purchases
|
$
|
1,351
|
|
|
$
|
1,422
|
|
|
$
|
1,315
|
|
|
Number of shares purchased:
|
|
|
|
|
|
|
||||||
Open market
|
17,755
|
|
|
21,618
|
|
|
21,179
|
|
|
|||
Other
|
509
|
|
|
330
|
|
|
247
|
|
|
|||
Total shares purchased
|
18,264
|
|
|
21,948
|
|
|
21,426
|
|
|
(In millions of dollars and thousands of shares)
|
2017
|
|
2016
|
|
2015
|
|
||||||
Stock issued from treasury:
|
|
|
|
|
|
|
||||||
Cash financing
|
$
|
33
|
|
|
$
|
46
|
|
|
$
|
36
|
|
|
Noncash financing
|
59
|
|
|
61
|
|
|
64
|
|
|
|||
Total stock issued from treasury
|
$
|
92
|
|
|
$
|
107
|
|
|
$
|
100
|
|
|
Number of shares issued
|
1,277
|
|
|
1,852
|
|
|
1,770
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|
||||||
Dividends paid in cash
|
$
|
661
|
|
|
$
|
658
|
|
|
$
|
656
|
|
|
Dividends through issuance of treasury shares
|
29
|
|
|
27
|
|
|
26
|
|
|
|||
Total dividends to shareholders
|
$
|
690
|
|
|
$
|
685
|
|
|
$
|
682
|
|
|
(In millions of dollars and billions of yen)
|
2017
|
|
2016
|
|
2015
|
|
||||||
Aflac Japan management fees paid to Parent Company
|
$
|
93
|
|
|
$
|
79
|
|
|
$
|
53
|
|
|
Expenses allocated to Aflac Japan (in dollars)
|
109
|
|
|
106
|
|
|
101
|
|
|
|||
Aflac Japan profit remittances to Aflac U.S. (in dollars)
|
1,150
|
|
|
1,286
|
|
|
2,139
|
|
|
|||
Aflac Japan profit remittances to Aflac U.S. (in yen)
|
129.3
|
|
|
138.5
|
|
|
259.0
|
|
|
(In millions)
|
2017
|
|
2016
|
|
||||||||||||||||||||
Yen/dollar exchange rates
|
98.00
|
|
|
113.00
(1)
|
|
|
128.00
|
|
|
101.49
|
|
|
116.49
(1)
|
|
|
131.49
|
|
|
||||||
Yen-denominated financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturities
(2)
|
$
|
49,775
|
|
|
$
|
43,167
|
|
|
$
|
38,109
|
|
|
$
|
41,856
|
|
|
$
|
36,467
|
|
|
$
|
32,306
|
|
|
Fixed maturities - consolidated variable
interest entities (3) |
841
|
|
|
729
|
|
|
644
|
|
|
783
|
|
|
682
|
|
|
604
|
|
|
||||||
Perpetual securities
|
1,729
|
|
|
1,499
|
|
|
1,324
|
|
|
1,557
|
|
|
1,357
|
|
|
1,202
|
|
|
||||||
Perpetual securities - consolidated
variable interest entities (3) |
248
|
|
|
215
|
|
|
190
|
|
|
231
|
|
|
201
|
|
|
178
|
|
|
||||||
Equity securities
|
126
|
|
|
109
|
|
|
96
|
|
|
155
|
|
|
136
|
|
|
120
|
|
|
||||||
Equity securities - consolidated variable
interest entities |
675
|
|
|
586
|
|
|
517
|
|
|
653
|
|
|
569
|
|
|
504
|
|
|
||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturities
|
36,240
|
|
|
31,430
|
|
|
27,747
|
|
|
38,279
|
|
|
33,350
|
|
|
29,545
|
|
|
||||||
Cash and cash equivalents
|
222
|
|
|
193
|
|
|
170
|
|
|
1,013
|
|
|
883
|
|
|
782
|
|
|
||||||
Derivatives
|
1,961
|
|
|
331
|
|
|
528
|
|
|
2,245
|
|
|
1,207
|
|
|
3,515
|
|
|
||||||
Other financial instruments
|
228
|
|
|
198
|
|
|
175
|
|
|
206
|
|
|
178
|
|
|
159
|
|
|
||||||
Subtotal
|
92,045
|
|
|
78,457
|
|
|
69,500
|
|
|
86,978
|
|
|
75,030
|
|
|
68,915
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Notes payable
|
1,535
|
|
|
1,331
|
|
|
1,175
|
|
|
304
|
|
|
265
|
|
|
235
|
|
|
||||||
Derivatives
|
516
|
|
|
474
|
|
|
2,177
|
|
|
1,712
|
|
|
1,998
|
|
|
5,549
|
|
|
||||||
Subtotal
|
2,051
|
|
|
1,805
|
|
|
3,352
|
|
|
2,016
|
|
|
2,263
|
|
|
5,784
|
|
|
||||||
Net yen-denominated financial instruments
|
89,994
|
|
|
76,652
|
|
|
66,148
|
|
|
84,962
|
|
|
72,767
|
|
|
63,131
|
|
|
||||||
Other yen-denominated assets
|
9,406
|
|
|
8,157
|
|
|
7,201
|
|
|
8,741
|
|
|
7,616
|
|
|
6,747
|
|
|
||||||
Other yen-denominated liabilities
|
107,761
|
|
|
93,456
|
|
|
82,504
|
|
|
102,132
|
|
|
88,981
|
|
|
78,830
|
|
|
||||||
Consolidated yen-denominated net assets
(liabilities) subject to foreign currency fluctuation (2) |
$
|
(8,361
|
)
|
|
$
|
(8,647
|
)
|
|
$
|
(9,155
|
)
|
|
$
|
(8,429
|
)
|
|
$
|
(8,598
|
)
|
|
$
|
(8,952
|
)
|
|
|
2017
|
|
2016
|
||||||||||||||||||
(In millions)
|
Fair
Value |
+100
Basis Points |
|
Fair
Value |
+100
Basis Points |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt and perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated
|
|
$
|
81,968
|
|
|
|
$
|
70,573
|
|
|
|
|
$
|
77,170
|
|
|
|
$
|
66,636
|
|
|
Dollar-denominated
|
|
38,628
|
|
|
|
35,452
|
|
|
|
|
36,611
|
|
|
|
33,611
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated
|
|
1,714
|
|
|
|
1,573
|
|
|
|
|
1,558
|
|
|
|
1,434
|
|
|
||||
Dollar-denominated
|
|
75
|
|
|
|
66
|
|
|
|
|
75
|
|
|
|
68
|
|
|
||||
Total debt and perpetual securities
|
|
$
|
122,385
|
|
|
|
$
|
107,664
|
|
|
|
|
$
|
115,414
|
|
|
|
$
|
101,749
|
|
|
Loans and loan receivables
(1)
|
|
$
|
2,987
|
|
|
|
$
|
2,932
|
|
|
|
|
$
|
1,142
|
|
|
|
$
|
1,090
|
|
|
Derivatives
|
|
$
|
330
|
|
|
|
$
|
533
|
|
|
|
|
$
|
1,205
|
|
|
|
$
|
1,309
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notes payable
(2)
|
|
$
|
5,553
|
|
|
|
$
|
4,900
|
|
|
|
|
$
|
5,530
|
|
|
|
$
|
5,175
|
|
|
Derivatives
|
|
474
|
|
|
|
293
|
|
|
|
|
1,998
|
|
|
|
1,901
|
|
|
(In years)
|
2017
|
|
2016
|
|
||
Yen-denominated debt and perpetual securities
|
15
|
|
|
15
|
|
|
Policy benefits and related expenses to be paid in future years
|
14
|
|
|
14
|
|
|
Premiums to be received in future years on policies in force
|
10
|
|
|
10
|
|
|
(In years)
|
2017
|
|
2016
|
|
||
Dollar-denominated debt and perpetual securities
|
10
|
|
|
10
|
|
|
Policy benefits and related expenses to be paid in future years
|
8
|
|
|
8
|
|
|
Premiums to be received in future years on policies in force
|
6
|
|
|
6
|
|
|
|
2017
|
2016
|
2015
|
|||||||||||||||||||||
|
U.S.
|
Japan
|
U.S.
|
Japan
|
U.S.
|
Japan
|
||||||||||||||||||
Policies issued during year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Required interest on policy reserves
|
|
3.69
|
%
|
|
|
1.10
|
%
|
(1)
|
|
3.67
|
%
|
|
|
1.38
|
%
|
(1)
|
|
3.68
|
%
|
|
|
1.81
|
%
|
(1)
|
New money yield on investments
|
|
4.41
|
|
|
|
1.88
|
|
|
|
3.81
|
|
|
|
1.30
|
|
|
|
4.37
|
|
|
|
2.79
|
|
|
Policies in force at year-end:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Required interest on policy reserves
|
|
5.43
|
|
|
|
3.38
|
|
(1)
|
|
5.51
|
|
|
|
3.49
|
|
(1)
|
|
5.60
|
|
|
|
3.61
|
|
(1)
|
Portfolio book yield, end of period
|
|
5.44
|
|
|
|
2.46
|
|
|
|
5.52
|
|
|
|
2.52
|
|
|
|
5.69
|
|
|
|
2.70
|
|
|
|
|
|
|
Total
|
|
% of Total
|
|
|
|||
No.
|
|
Consolidated Corporate/Sovereign Exposure
|
|
Consolidated
|
|
Debt & Perpetual
|
|
Credit
|
|||
|
|
|
|
Book Value
|
|
Securities
|
|
Rating
|
|||
1
|
|
Japan National Government
(1)
|
|
$
|
48,399
|
|
|
45.42
|
%
|
|
A
|
2
|
|
Republic of South Africa
|
|
442
|
|
|
.41
|
|
|
BB
|
|
3
|
|
Bank of America NA
|
|
398
|
|
|
.37
|
|
|
|
|
|
|
Bank of America Corp.
|
|
221
|
|
|
.21
|
|
|
A
|
|
|
|
Bank of America Corp.
|
|
177
|
|
|
.16
|
|
|
BBB
|
|
4
|
|
Bank of Tokyo-Mitsubishi UFJ Ltd.
|
|
398
|
|
|
.37
|
|
|
A
|
|
5
|
|
Investcorp Capital Limited
|
|
377
|
|
|
.35
|
|
|
BB
|
|
6
|
|
Banobras
|
|
327
|
|
|
.31
|
|
|
BBB
|
|
7
|
|
Sultanate of Oman
|
|
310
|
|
|
.29
|
|
|
BBB
|
|
8
|
|
Nordea Bank AB
|
|
298
|
|
|
.28
|
|
|
BBB
|
|
9
|
|
AXA
|
|
289
|
|
|
.27
|
|
|
BBB
|
|
10
|
|
Deutsche Telekom AG
|
|
287
|
|
|
.27
|
|
|
BBB
|
|
11
|
|
CFE
|
|
283
|
|
|
.27
|
|
|
BBB
|
|
12
|
|
Barclays Bank PLC
|
|
280
|
|
|
.27
|
|
|
|
|
|
|
Barclays Bank PLC
|
|
157
|
|
|
.15
|
|
|
BB
|
|
|
|
Barclays Bank PLC
|
|
123
|
|
|
.12
|
|
|
BBB
|
|
13
|
|
Petroleos Mexicanos (Pemex)
|
|
278
|
|
|
.26
|
|
|
|
|
|
|
Pemex Proj FDG Master TR
|
|
265
|
|
|
.25
|
|
|
BBB
|
|
|
|
Pemex Finance Ltd.
|
|
13
|
|
|
.01
|
|
|
A
|
|
14
|
|
Investor AB
|
|
265
|
|
|
.25
|
|
|
AA
|
|
15
|
|
Czech Republic
|
|
265
|
|
|
.25
|
|
|
A
|
|
|
|
Subtotal
|
|
$
|
52,896
|
|
|
49.64
|
%
|
|
|
|
|
Total debt and perpetual securities
|
|
$
|
106,562
|
|
|
100.00
|
%
|
|
|
|
2017
|
|
2016
|
|
||||||||||
(In millions)
|
Amortized Cost
|
|
% of
Total |
|
Amortized Cost
|
|
% of
Total |
|
||||||
Japan
|
$
|
51,983
|
|
|
48.8
|
%
|
|
$
|
46,977
|
|
|
46.3
|
%
|
|
United States and Canada
(1)
|
31,052
|
|
|
29.1
|
|
|
30,583
|
|
|
30.1
|
|
|
||
United Kingdom
|
2,603
|
|
|
2.4
|
|
|
2,396
|
|
|
2.5
|
|
|
||
Germany
|
2,323
|
|
|
2.2
|
|
|
2,558
|
|
|
2.6
|
|
|
||
France
|
1,983
|
|
|
1.9
|
|
|
1,741
|
|
|
1.7
|
|
|
||
Peripheral Eurozone
|
2,312
|
|
|
2.2
|
|
|
2,597
|
|
|
2.6
|
|
|
||
Portugal
|
211
|
|
|
.2
|
|
|
206
|
|
|
.2
|
|
|
||
Italy
|
1,261
|
|
|
1.2
|
|
|
1,567
|
|
|
1.6
|
|
|
||
Ireland
|
32
|
|
|
.0
|
|
|
118
|
|
|
.1
|
|
|
||
Spain
|
808
|
|
|
.8
|
|
|
706
|
|
|
.7
|
|
|
||
Nordic Region
|
1,611
|
|
|
1.5
|
|
|
1,728
|
|
|
1.7
|
|
|
||
Sweden
|
725
|
|
|
.7
|
|
|
704
|
|
|
.7
|
|
|
||
Norway
|
451
|
|
|
.4
|
|
|
520
|
|
|
.5
|
|
|
||
Denmark
|
177
|
|
|
.2
|
|
|
258
|
|
|
.3
|
|
|
||
Finland
|
258
|
|
|
.2
|
|
|
246
|
|
|
.2
|
|
|
||
Other Europe
|
2,489
|
|
|
2.3
|
|
|
2,295
|
|
|
2.3
|
|
|
||
Netherlands
|
1,183
|
|
|
1.1
|
|
|
1,184
|
|
|
1.2
|
|
|
||
Switzerland
|
307
|
|
|
.3
|
|
|
247
|
|
|
.3
|
|
|
||
Czech Republic
|
442
|
|
|
.4
|
|
|
429
|
|
|
.4
|
|
|
||
Austria
|
123
|
|
|
.1
|
|
|
119
|
|
|
.1
|
|
|
||
Belgium
|
168
|
|
|
.1
|
|
|
144
|
|
|
.1
|
|
|
||
Poland
|
177
|
|
|
.2
|
|
|
172
|
|
|
.2
|
|
|
||
Luxembourg
|
89
|
|
|
.1
|
|
|
0
|
|
|
.0
|
|
|
||
Asia excluding Japan
|
3,408
|
|
|
3.2
|
|
|
3,425
|
|
|
3.4
|
|
|
||
Africa and Middle East
|
2,460
|
|
|
2.3
|
|
|
2,559
|
|
|
2.5
|
|
|
||
Latin America
|
2,318
|
|
|
2.2
|
|
|
2,205
|
|
|
2.2
|
|
|
||
Australia
|
1,572
|
|
|
1.5
|
|
|
1,705
|
|
|
1.7
|
|
|
||
All Others
|
448
|
|
|
.4
|
|
|
450
|
|
|
.4
|
|
|
||
Total debt and perpetual securities
|
$
|
106,562
|
|
|
100.0
|
%
|
|
$
|
101,219
|
|
|
100.0
|
%
|
|
/s/ KPMG LLP
|
/s/ KPMG LLP
|
(In millions, except for share and per-share amounts)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net premiums, principally supplemental health insurance
|
|
$
|
18,531
|
|
|
|
|
$
|
19,225
|
|
|
|
|
$
|
17,570
|
|
|
Net investment income
|
|
3,220
|
|
|
|
|
3,278
|
|
|
|
|
3,135
|
|
|
|||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other-than-temporary impairment losses realized
|
|
(37
|
)
|
|
|
|
(85
|
)
|
|
|
|
(154
|
)
|
|
|||
Sales and redemptions
|
|
28
|
|
|
|
|
141
|
|
|
|
|
302
|
|
|
|||
Derivative and other gains (losses)
|
|
(142
|
)
|
|
|
|
(70
|
)
|
|
|
|
(42
|
)
|
|
|||
Total realized investment gains (losses)
|
|
(151
|
)
|
|
|
|
(14
|
)
|
|
|
|
106
|
|
|
|||
Other income (loss)
|
|
67
|
|
|
|
|
70
|
|
|
|
|
61
|
|
|
|||
Total revenues
|
|
21,667
|
|
|
|
|
22,559
|
|
|
|
|
20,872
|
|
|
|||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Benefits and claims, net
|
|
12,181
|
|
|
|
|
12,919
|
|
|
|
|
11,746
|
|
|
|||
Acquisition and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of deferred policy acquisition costs
|
|
1,132
|
|
|
|
|
1,141
|
|
|
|
|
1,066
|
|
|
|||
Insurance commissions
|
|
1,316
|
|
|
|
|
1,368
|
|
|
|
|
1,303
|
|
|
|||
Insurance and other expenses
(1)
|
|
2,780
|
|
|
|
|
2,796
|
|
|
|
|
2,606
|
|
|
|||
Interest expense
|
|
240
|
|
|
|
|
268
|
|
|
|
|
289
|
|
|
|||
Total acquisition and operating expenses
|
|
5,468
|
|
|
|
|
5,573
|
|
|
|
|
5,264
|
|
|
|||
Total benefits and expenses
|
|
17,649
|
|
|
|
|
18,492
|
|
|
|
|
17,010
|
|
|
|||
Earnings before income taxes
|
|
4,018
|
|
|
|
|
4,067
|
|
|
|
|
3,862
|
|
|
|||
Income tax expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
631
|
|
|
|
|
884
|
|
|
|
|
1,288
|
|
|
|||
Deferred
|
|
(1,217
|
)
|
|
|
|
524
|
|
|
|
|
41
|
|
|
|||
Income taxes
|
|
(586
|
)
|
|
|
|
1,408
|
|
|
|
|
1,329
|
|
|
|||
Net earnings
|
|
$
|
4,604
|
|
|
|
|
$
|
2,659
|
|
|
|
|
$
|
2,533
|
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
11.63
|
|
|
|
|
$
|
6.46
|
|
|
|
|
$
|
5.88
|
|
|
Diluted
|
|
11.54
|
|
|
|
|
6.42
|
|
|
|
|
5.85
|
|
|
|||
Weighted-average outstanding common shares used in
computing earnings per share (In thousands): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
396,021
|
|
|
|
|
411,471
|
|
|
|
|
430,654
|
|
|
|||
Diluted
|
|
398,930
|
|
|
|
|
413,921
|
|
|
|
|
433,172
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Net earnings
|
|
$
|
4,604
|
|
|
|
|
$
|
2,659
|
|
|
|
|
$
|
2,533
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses) during
period |
|
286
|
|
|
|
|
283
|
|
|
|
|
360
|
|
|
|||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on investment securities during
period |
|
1,731
|
|
|
|
|
2,852
|
|
|
|
|
(2,534
|
)
|
|
|||
Reclassification adjustment for realized (gains) losses on
investment securities included in net earnings |
|
2
|
|
|
|
|
(53
|
)
|
|
|
|
(61
|
)
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
1
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|||
Pension liability adjustment during period
|
|
9
|
|
|
|
|
(45
|
)
|
|
|
|
(20
|
)
|
|
|||
Total other comprehensive income (loss) before income taxes
|
|
2,029
|
|
|
|
|
3,040
|
|
|
|
|
(2,255
|
)
|
|
|||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
631
|
|
|
|
|
1,035
|
|
|
|
|
(901
|
)
|
|
|||
Other comprehensive income (loss), net of income taxes
|
|
1,398
|
|
|
|
|
2,005
|
|
|
|
|
(1,354
|
)
|
|
|||
Total comprehensive income (loss)
|
|
$
|
6,002
|
|
|
|
|
$
|
4,664
|
|
|
|
|
$
|
1,179
|
|
|
(In millions)
|
2017
|
|
2016
|
|
||||
Assets:
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
||||
Securities available for sale, at fair value:
|
|
|
|
|
||||
Fixed maturities (amortized cost $69,370 in 2017 and $62,195 in 2016)
|
$
|
77,230
|
|
|
$
|
68,778
|
|
|
Fixed maturities - consolidated variable interest entities (amortized
cost $4,300 in 2017 and $4,168 in 2016) |
5,294
|
|
|
4,982
|
|
|
||
Perpetual securities (amortized cost $1,224 in 2017 and $1,269 in 2016)
|
1,574
|
|
|
1,425
|
|
|
||
Perpetual securities - consolidated variable interest entities
(amortized cost $238 in 2017 and $237 in 2016) |
215
|
|
|
208
|
|
|
||
Equity securities (cost $240 in 2017 and $231 in 2016)
|
270
|
|
|
265
|
|
|
||
Equity securities - consolidated variable interest entities
(cost $606 in 2017 and $972 in 2016) |
753
|
|
|
1,044
|
|
|
||
Securities held to maturity, at amortized cost:
|
|
|
|
|
||||
Fixed maturities (fair value $38,072 in 2017 and $40,021 in 2016)
|
31,430
|
|
|
33,350
|
|
|
||
Other investments
(1)
|
3,402
|
|
|
1,450
|
|
|
||
Cash and cash equivalents
|
3,491
|
|
|
4,859
|
|
|
||
Total investments and cash
|
123,659
|
|
|
116,361
|
|
|
||
Receivables
|
827
|
|
|
669
|
|
|
||
Accrued investment income
|
769
|
|
|
754
|
|
|
||
Deferred policy acquisition costs
|
9,505
|
|
|
8,993
|
|
|
||
Property and equipment, at cost less accumulated depreciation
|
434
|
|
|
433
|
|
|
||
Other
(2)
|
2,023
|
|
|
2,609
|
|
|
||
Total assets
|
$
|
137,217
|
|
|
$
|
129,819
|
|
|
(In millions, except for share and per-share amounts)
|
2017
|
|
2016
|
|
||||
Liabilities and shareholders’ equity:
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Policy liabilities:
|
|
|
|
|
||||
Future policy benefits
|
$
|
81,857
|
|
|
$
|
76,106
|
|
|
Unpaid policy claims
|
4,392
|
|
|
4,045
|
|
|
||
Unearned premiums
|
5,959
|
|
|
6,916
|
|
|
||
Other policyholders’ funds
|
6,939
|
|
|
6,659
|
|
|
||
Total policy liabilities
|
99,147
|
|
|
93,726
|
|
|
||
Income taxes
|
4,745
|
|
|
5,387
|
|
|
||
Payables for return of cash collateral on loaned securities
|
606
|
|
|
526
|
|
|
||
Notes payable
|
5,289
|
|
|
5,360
|
|
|
||
Other
(3)
|
2,832
|
|
|
4,338
|
|
|
||
Total liabilities
|
112,619
|
|
|
109,337
|
|
|
||
Commitments and contingent liabilities (Note 15)
|
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000
shares in 2017 and 2016; issued 672,881 shares in 2017 and 671,249 shares in 2016 |
67
|
|
|
67
|
|
|
||
Additional paid-in capital
|
2,120
|
|
|
1,976
|
|
|
||
Retained earnings
|
29,895
|
|
|
25,981
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
||||
Unrealized foreign currency translation gains (losses)
|
(1,750
|
)
|
|
(1,983
|
)
|
|
||
Unrealized gains (losses) on investment securities
|
5,964
|
|
|
4,805
|
|
|
||
Unrealized gains (losses) on derivatives
|
(23
|
)
|
|
(24
|
)
|
|
||
Pension liability adjustment
|
(163
|
)
|
|
(168
|
)
|
|
||
Treasury stock, at average cost
|
(11,512
|
)
|
|
(10,172
|
)
|
|
||
Total shareholders’ equity
|
24,598
|
|
|
20,482
|
|
|
||
Total liabilities and shareholders’ equity
|
$
|
137,217
|
|
|
$
|
129,819
|
|
|
(In millions, except for per-share amounts)
|
2017
|
|
2016
|
|
2015
|
||||||
Common stock:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
$
|
67
|
|
|
$
|
67
|
|
|
$
|
67
|
|
Balance, end of period
|
67
|
|
|
67
|
|
|
67
|
|
|||
Additional paid-in capital:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
1,976
|
|
|
1,828
|
|
|
1,711
|
|
|||
Exercise of stock options
|
38
|
|
|
46
|
|
|
43
|
|
|||
Share-based compensation
|
51
|
|
|
64
|
|
|
36
|
|
|||
Gain (loss) on treasury stock reissued
|
55
|
|
|
38
|
|
|
38
|
|
|||
Balance, end of period
|
2,120
|
|
|
1,976
|
|
|
1,828
|
|
|||
Retained earnings:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
25,981
|
|
|
24,007
|
|
|
22,156
|
|
|||
Net earnings
|
4,604
|
|
|
2,659
|
|
|
2,533
|
|
|||
Dividends to shareholders ($1.74 per share in 2017, $1.66 per share in 2016 and
$1.58 per share in 2015) |
(690
|
)
|
|
(685
|
)
|
|
(682
|
)
|
|||
Balance, end of period
|
29,895
|
|
|
25,981
|
|
|
24,007
|
|
|||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
||||||
Balance, beginning of period
|
2,630
|
|
|
625
|
|
|
1,979
|
|
|||
Unrealized foreign currency translation gains (losses) during
period, net of income taxes |
233
|
|
|
213
|
|
|
345
|
|
|||
Unrealized gains (losses) on investment securities during period,
net of income taxes and reclassification adjustments |
1,159
|
|
|
1,819
|
|
|
(1,686
|
)
|
|||
Unrealized gains (losses) on derivatives during period, net of
income taxes |
1
|
|
|
2
|
|
|
0
|
|
|||
Pension liability adjustment during period, net of income taxes
|
5
|
|
|
(29
|
)
|
|
(13
|
)
|
|||
Balance, end of period
|
4,028
|
|
|
2,630
|
|
|
625
|
|
|||
Treasury stock:
|
|
|
|
|
|
||||||
Balance, beginning of period
|
(10,172
|
)
|
|
(8,819
|
)
|
|
(7,566
|
)
|
|||
Purchases of treasury stock
|
(1,391
|
)
|
|
(1,422
|
)
|
|
(1,315
|
)
|
|||
Cost of shares issued
|
51
|
|
|
69
|
|
|
62
|
|
|||
Balance, end of period
|
(11,512
|
)
|
|
(10,172
|
)
|
|
(8,819
|
)
|
|||
Total shareholders’ equity
|
$
|
24,598
|
|
|
$
|
20,482
|
|
|
$
|
17,708
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings
|
|
$
|
4,604
|
|
|
|
|
$
|
2,659
|
|
|
|
|
$
|
2,533
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in receivables and advance premiums
|
|
(91
|
)
|
|
|
|
42
|
|
|
|
|
147
|
|
|
|||
Capitalization of deferred policy acquisition costs
|
|
(1,468
|
)
|
|
|
|
(1,447
|
)
|
|
|
|
(1,307
|
)
|
|
|||
Amortization of deferred policy acquisition costs
|
|
1,132
|
|
|
|
|
1,141
|
|
|
|
|
1,066
|
|
|
|||
Increase in policy liabilities
|
|
2,890
|
|
|
|
|
3,331
|
|
|
|
|
3,524
|
|
|
|||
Change in income tax liabilities
|
|
(1,240
|
)
|
|
|
|
(93
|
)
|
|
|
|
(36
|
)
|
|
|||
Realized investment (gains) losses
|
|
151
|
|
|
|
|
14
|
|
|
|
|
(106
|
)
|
|
|||
Other, net
|
|
150
|
|
|
|
|
340
|
|
(1)
|
|
|
955
|
|
(1)
|
|||
Net cash provided (used) by operating activities
|
|
6,128
|
|
|
|
|
5,987
|
|
|
|
|
6,776
|
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Proceeds from investments sold or matured:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities sold
|
|
3,819
|
|
|
|
|
5,157
|
|
|
|
|
3,224
|
|
|
|||
Fixed maturities matured or called
|
|
768
|
|
|
|
|
1,096
|
|
|
|
|
1,132
|
|
|
|||
Perpetual securities matured or called
|
|
93
|
|
|
|
|
470
|
|
|
|
|
647
|
|
|
|||
Equity securities sold
|
|
902
|
|
|
|
|
350
|
|
|
|
|
1
|
|
|
|||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities matured or called
|
|
2,212
|
|
|
|
|
1,399
|
|
|
|
|
766
|
|
|
|||
Costs of investments acquired:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available-for-sale fixed maturities acquired
|
|
(9,867
|
)
|
|
|
|
(10,890
|
)
|
|
|
|
(6,507
|
)
|
|
|||
Available-for-sale equity securities acquired
|
|
(446
|
)
|
|
|
|
(1,079
|
)
|
|
|
|
(454
|
)
|
|
|||
Other investments, net
|
|
(2,018
|
)
|
|
|
|
(1,118
|
)
|
|
|
|
(70
|
)
|
|
|||
Purchase of subsidiary
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(40
|
)
|
|
|||
Settlement of derivatives, net
|
|
(621
|
)
|
|
|
|
1,252
|
|
|
|
|
(2,119
|
)
|
|
|||
Cash received (pledged or returned) as collateral, net
|
|
(205
|
)
|
|
|
|
(416
|
)
|
|
|
|
(1,391
|
)
|
|
|||
Other, net
|
|
(68
|
)
|
|
|
|
(76
|
)
|
|
|
|
(86
|
)
|
|
|||
Net cash provided (used) by investing activities
|
|
(5,431
|
)
|
|
|
|
(3,855
|
)
|
|
|
|
(4,897
|
)
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of treasury stock
|
|
(1,351
|
)
|
|
|
|
(1,422
|
)
|
|
|
|
(1,315
|
)
|
|
|||
Proceeds from borrowings
|
|
1,040
|
|
|
|
|
986
|
|
|
|
|
998
|
|
|
|||
Principal payments under debt obligations
|
|
(1,161
|
)
|
|
|
|
(610
|
)
|
|
|
|
(1,272
|
)
|
|
|||
Dividends paid to shareholders
|
|
(661
|
)
|
|
|
|
(658
|
)
|
|
|
|
(656
|
)
|
|
|||
Change in investment-type contracts, net
|
|
35
|
|
|
|
|
159
|
|
|
|
|
256
|
|
|
|||
Treasury stock reissued
|
|
33
|
|
|
|
|
46
|
|
|
|
|
36
|
|
|
|||
Other, net
|
|
0
|
|
|
|
|
(120
|
)
|
(1)
|
|
|
(234
|
)
|
(1)
|
|||
Net cash provided (used) by financing activities
|
|
(2,065
|
)
|
|
|
|
(1,619
|
)
|
|
|
|
(2,187
|
)
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
0
|
|
|
|
|
(4
|
)
|
|
|
|
0
|
|
|
|||
Net change in cash and cash equivalents
|
|
(1,368
|
)
|
|
|
|
509
|
|
|
|
|
(308
|
)
|
|
|||
Cash and cash equivalents, beginning of period
|
|
4,859
|
|
|
|
|
4,350
|
|
|
|
|
4,658
|
|
|
|||
Cash and cash equivalents, end of period
|
|
$
|
3,491
|
|
|
|
|
$
|
4,859
|
|
|
|
|
$
|
4,350
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income taxes paid
|
|
$
|
780
|
|
|
|
|
$
|
1,526
|
|
|
|
|
$
|
996
|
|
|
Interest paid
|
|
196
|
|
|
|
|
211
|
|
|
|
|
236
|
|
|
|||
Noncash interest
|
|
44
|
|
|
|
|
57
|
|
|
|
|
53
|
|
|
|||
Impairment losses included in realized investment losses
|
|
37
|
|
|
|
|
85
|
|
|
|
|
154
|
|
|
|||
Noncash financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital lease obligations
|
|
12
|
|
|
|
|
1
|
|
|
|
|
6
|
|
|
|||
Treasury stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Associate stock bonus
|
|
29
|
|
|
|
|
30
|
|
|
|
|
35
|
|
|
|||
Shareholder dividend reinvestment
|
|
29
|
|
|
|
|
27
|
|
|
|
|
26
|
|
|
|||
Share-based compensation grants
|
|
1
|
|
|
|
|
4
|
|
|
|
|
3
|
|
|
2.
|
BUSINESS SEGMENT AND FOREIGN INFORMATION
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earned premiums:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cancer
|
|
$
|
5,612
|
|
|
|
|
$
|
5,639
|
|
|
|
|
$
|
4,933
|
|
|
Medical and other health
|
|
3,379
|
|
|
|
|
3,429
|
|
|
|
|
3,092
|
|
|
|||
Life insurance
|
|
3,761
|
|
|
|
|
4,469
|
|
|
|
|
4,021
|
|
|
|||
Net investment income, less amortized hedge costs
(1)
|
|
2,235
|
|
|
|
|
2,368
|
|
|
|
|
2,364
|
|
|
|||
Other income
|
|
41
|
|
|
|
|
40
|
|
|
|
|
31
|
|
|
|||
Total Aflac Japan
|
|
15,028
|
|
|
|
|
15,945
|
|
|
|
|
14,441
|
|
|
|||
Aflac U.S.:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earned premiums:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accident/disability
|
|
2,537
|
|
|
|
|
2,469
|
|
|
|
|
2,391
|
|
|
|||
Cancer
|
|
1,308
|
|
|
|
|
1,299
|
|
|
|
|
1,293
|
|
|
|||
Other health
|
|
1,445
|
|
|
|
|
1,415
|
|
|
|
|
1,395
|
|
|
|||
Life insurance
|
|
273
|
|
|
|
|
271
|
|
|
|
|
268
|
|
|
|||
Net investment income
|
|
721
|
|
|
|
|
703
|
|
|
|
|
678
|
|
|
|||
Other income
|
|
5
|
|
|
|
|
10
|
|
|
|
|
8
|
|
|
|||
Total Aflac U.S.
|
|
6,289
|
|
|
|
|
6,167
|
|
|
|
|
6,033
|
|
|
|||
Other business segments
|
|
140
|
|
|
|
|
275
|
|
|
|
|
225
|
|
|
|||
Total business segment revenues
|
|
21,457
|
|
|
|
|
22,387
|
|
|
|
|
20,699
|
|
|
|||
Corporate and eliminations
|
|
210
|
|
|
|
|
85
|
|
|
|
|
79
|
|
|
|||
Total operating revenues
|
|
21,667
|
|
|
|
|
22,472
|
|
|
|
|
20,778
|
|
|
|||
Realized investment gains (losses)
(1), (2), (3)
|
|
0
|
|
|
|
|
87
|
|
|
|
|
94
|
|
|
|||
Total revenues
|
|
$
|
21,667
|
|
|
|
|
$
|
22,559
|
|
|
|
|
$
|
20,872
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Pretax earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
(1)
|
|
$
|
3,054
|
|
|
|
|
$
|
3,148
|
|
|
|
|
$
|
3,103
|
|
|
Aflac U.S.
|
|
1,245
|
|
|
|
|
1,208
|
|
|
|
|
1,101
|
|
|
|||
Other business segments
|
|
11
|
|
|
|
|
18
|
|
|
|
|
14
|
|
|
|||
Total business segment pretax operating earnings
|
|
4,310
|
|
|
|
|
4,374
|
|
|
|
|
4,218
|
|
|
|||
Interest expense, noninsurance operations
|
|
(122
|
)
|
|
|
|
(128
|
)
|
|
|
|
(146
|
)
|
|
|||
Corporate and eliminations
|
|
(101
|
)
|
|
|
|
(129
|
)
|
|
|
|
(71
|
)
|
|
|||
Pretax operating earnings
|
|
4,087
|
|
|
|
|
4,117
|
|
|
|
|
4,001
|
|
|
|||
Realized investment gains (losses)
(1), (2), (3)
|
|
0
|
|
|
|
|
87
|
|
|
|
|
94
|
|
|
|||
Other non-operating income (loss)
(3), (4)
|
|
(69
|
)
|
|
|
|
(137
|
)
|
|
|
|
(233
|
)
|
|
|||
Total earnings before income taxes
|
|
$
|
4,018
|
|
|
|
|
$
|
4,067
|
|
|
|
|
$
|
3,862
|
|
|
Income taxes applicable to pretax operating earnings
|
|
$
|
1,370
|
|
|
|
|
$
|
1,426
|
|
|
|
|
$
|
1,377
|
|
|
Effect of foreign currency translation on after-tax
operating earnings |
|
(41
|
)
|
|
|
|
141
|
|
|
|
|
(198
|
)
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
114,402
|
|
|
|
|
$
|
107,858
|
|
|
|
|
$
|
97,646
|
|
|
Aflac U.S.
|
|
19,893
|
|
|
|
|
19,453
|
|
|
|
|
18,537
|
|
|
|||
Other business segments
|
|
547
|
|
|
|
|
270
|
|
|
|
|
188
|
|
|
|||
Total business segment assets
|
|
134,842
|
|
|
|
|
127,581
|
|
|
|
|
116,371
|
|
|
|||
Corporate and eliminations
|
|
2,375
|
|
|
|
|
2,238
|
|
|
|
|
1,885
|
|
|
|||
Total assets
|
|
$
|
137,217
|
|
|
|
|
$
|
129,819
|
|
|
|
|
$
|
118,256
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Statements of Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average yen/dollar exchange rate
|
|
112.16
|
|
|
|
|
108.70
|
|
|
|
|
120.99
|
|
|
|||
Yen percent strengthening (weakening)
|
|
(3.1
|
)%
|
|
|
|
11.3
|
%
|
|
|
|
(12.8
|
)%
|
|
|||
Exchange effect on pretax operating earnings (in millions)
|
|
$
|
(63
|
)
|
|
|
|
$
|
218
|
|
|
|
|
$
|
(288
|
)
|
|
|
2017
|
|
2016
|
||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
||||
Yen/dollar exchange rate at December 31
|
|
113.00
|
|
|
|
|
116.49
|
|
|
||
Yen percent strengthening (weakening)
|
|
3.1
|
%
|
|
|
|
3.5
|
%
|
|
||
Exchange effect on total assets (in millions)
|
|
$
|
2,593
|
|
|
|
|
$
|
2,820
|
|
|
Exchange effect on total liabilities (in millions)
|
|
2,848
|
|
|
|
|
3,109
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Management fees
|
|
$
|
93
|
|
|
|
|
$
|
79
|
|
|
|
|
$
|
53
|
|
|
Allocated expenses
|
|
109
|
|
|
|
|
106
|
|
|
|
|
101
|
|
|
|||
Profit repatriation
|
|
1,150
|
|
|
|
|
1,286
|
|
|
|
|
2,139
|
|
|
|||
Total transfers from Aflac Japan
|
|
$
|
1,352
|
|
|
|
|
$
|
1,471
|
|
|
|
|
$
|
2,293
|
|
|
(In millions)
|
2017
|
|
2016
|
||||||||
Property and equipment:
|
|
|
|
|
|
|
|
||||
Land
|
|
$
|
168
|
|
|
|
|
$
|
166
|
|
|
Buildings
|
|
441
|
|
|
|
|
421
|
|
|
||
Equipment and furniture
|
|
372
|
|
|
|
|
355
|
|
|
||
Total property and equipment
|
|
981
|
|
|
|
|
942
|
|
|
||
Less accumulated depreciation
|
|
547
|
|
|
|
|
509
|
|
|
||
Net property and equipment
|
|
$
|
434
|
|
|
|
|
$
|
433
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Fixed-maturity securities
|
|
$
|
3,094
|
|
|
|
|
$
|
3,214
|
|
|
|
|
$
|
3,094
|
|
|
Perpetual securities
|
|
79
|
|
|
|
|
94
|
|
|
|
|
114
|
|
|
|||
Equity securities
|
|
42
|
|
|
|
|
35
|
|
|
|
|
3
|
|
|
|||
Other investments
|
|
94
|
|
|
|
|
31
|
|
|
|
|
15
|
|
|
|||
Short-term investments and cash equivalents
|
|
25
|
|
|
|
|
11
|
|
|
|
|
4
|
|
|
|||
Gross investment income
|
|
3,334
|
|
|
|
|
3,385
|
|
|
|
|
3,230
|
|
|
|||
Less investment expenses
|
|
114
|
|
|
|
|
107
|
|
|
|
|
95
|
|
|
|||
Net investment income
|
|
$
|
3,220
|
|
|
|
|
$
|
3,278
|
|
|
|
|
$
|
3,135
|
|
|
|
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
|
|
$
|
27,980
|
|
|
|
|
$
|
3,363
|
|
|
|
|
$
|
271
|
|
|
|
|
$
|
31,072
|
|
|
Municipalities
|
|
314
|
|
|
|
|
28
|
|
|
|
|
12
|
|
|
|
|
330
|
|
|
||||
Mortgage- and asset-backed securities
|
|
242
|
|
|
|
|
29
|
|
|
|
|
0
|
|
|
|
|
271
|
|
|
||||
Public utilities
|
|
1,635
|
|
|
|
|
352
|
|
|
|
|
6
|
|
|
|
|
1,981
|
|
|
||||
Sovereign and supranational
|
|
1,380
|
|
|
|
|
190
|
|
|
|
|
1
|
|
|
|
|
1,569
|
|
|
||||
Banks/financial institutions
|
|
3,521
|
|
|
|
|
524
|
|
|
|
|
26
|
|
|
|
|
4,019
|
|
|
||||
Other corporate
|
|
3,890
|
|
|
|
|
771
|
|
|
|
|
7
|
|
|
|
|
4,654
|
|
|
||||
Total yen-denominated
|
|
38,962
|
|
|
|
|
5,257
|
|
|
|
|
323
|
|
|
|
|
43,896
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
146
|
|
|
|
|
13
|
|
|
|
|
1
|
|
|
|
|
158
|
|
|
||||
Municipalities
|
|
872
|
|
|
|
|
168
|
|
|
|
|
0
|
|
|
|
|
1,040
|
|
|
||||
Mortgage- and asset-backed securities
|
|
161
|
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
173
|
|
|
||||
Public utilities
|
|
5,116
|
|
|
|
|
884
|
|
|
|
|
27
|
|
|
|
|
5,973
|
|
|
||||
Sovereign and supranational
|
|
267
|
|
|
|
|
73
|
|
|
|
|
0
|
|
|
|
|
340
|
|
|
||||
Banks/financial institutions
|
|
2,762
|
|
|
|
|
604
|
|
|
|
|
8
|
|
|
|
|
3,358
|
|
|
||||
Other corporate
|
|
25,384
|
|
|
|
|
2,620
|
|
|
|
|
418
|
|
|
|
|
27,586
|
|
|
||||
Total U.S. dollar-denominated
|
|
34,708
|
|
|
|
|
4,374
|
|
|
|
|
454
|
|
|
|
|
38,628
|
|
|
||||
Total fixed maturities
|
|
73,670
|
|
|
|
|
9,631
|
|
|
|
|
777
|
|
|
|
|
82,524
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
1,221
|
|
|
|
|
287
|
|
|
|
|
27
|
|
|
|
|
1,481
|
|
|
||||
Other corporate
|
|
195
|
|
|
|
|
38
|
|
|
|
|
0
|
|
|
|
|
233
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
46
|
|
|
|
|
29
|
|
|
|
|
0
|
|
|
|
|
75
|
|
|
||||
Total perpetual securities
|
|
1,462
|
|
|
|
|
354
|
|
|
|
|
27
|
|
|
|
|
1,789
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Yen-denominated
|
|
561
|
|
|
|
|
135
|
|
|
|
|
1
|
|
|
|
|
695
|
|
|
||||
U.S. dollar-denominated
|
|
285
|
|
|
|
|
45
|
|
|
|
|
2
|
|
|
|
|
328
|
|
|
||||
Total equity securities
|
|
846
|
|
|
|
|
180
|
|
|
|
|
3
|
|
|
|
|
1,023
|
|
|
||||
Total securities available for sale
|
|
$
|
75,978
|
|
|
|
|
$
|
10,165
|
|
|
|
|
$
|
807
|
|
|
|
|
$
|
85,336
|
|
|
|
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
|
|
$
|
21,331
|
|
|
|
|
$
|
5,160
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,491
|
|
|
Municipalities
|
|
357
|
|
|
|
|
105
|
|
|
|
|
0
|
|
|
|
|
462
|
|
|
||||
Mortgage- and asset-backed securities
|
|
26
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
27
|
|
|
||||
Public utilities
|
|
3,300
|
|
|
|
|
398
|
|
|
|
|
0
|
|
|
|
|
3,698
|
|
|
||||
Sovereign and supranational
|
|
1,523
|
|
|
|
|
312
|
|
|
|
|
0
|
|
|
|
|
1,835
|
|
|
||||
Banks/financial institutions
|
|
2,206
|
|
|
|
|
190
|
|
|
|
|
9
|
|
|
|
|
2,387
|
|
|
||||
Other corporate
|
|
2,687
|
|
|
|
|
485
|
|
|
|
|
0
|
|
|
|
|
3,172
|
|
|
||||
Total yen-denominated
|
|
31,430
|
|
|
|
|
6,651
|
|
|
|
|
9
|
|
|
|
|
38,072
|
|
|
||||
Total securities held to maturity
|
|
$
|
31,430
|
|
|
|
|
$
|
6,651
|
|
|
|
|
$
|
9
|
|
|
|
|
$
|
38,072
|
|
|
|
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
|
|
|
||||
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
|
|
|
|
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
|
|
$
|
234
|
|
|
|
|
$
|
243
|
|
|
|
|
$
|
86
|
|
|
|
|
$
|
89
|
|
|
Due after one year through five years
|
|
7,155
|
|
|
|
|
7,391
|
|
|
|
|
508
|
|
|
|
|
542
|
|
|
||||
Due after five years through 10 years
|
|
7,812
|
|
|
|
|
8,385
|
|
|
|
|
2,726
|
|
|
|
|
2,946
|
|
|
||||
Due after 10 years
|
|
45,028
|
|
|
|
|
51,269
|
|
|
|
|
8,482
|
|
|
|
|
9,927
|
|
|
||||
Mortgage- and asset-backed securities
|
|
283
|
|
|
|
|
322
|
|
|
|
|
40
|
|
|
|
|
41
|
|
|
||||
Total fixed maturities available for sale
|
|
$
|
60,512
|
|
|
|
|
$
|
67,610
|
|
|
|
|
$
|
11,842
|
|
|
|
|
$
|
13,545
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
|
$
|
885
|
|
|
|
|
$
|
903
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after one year through five years
|
|
434
|
|
|
|
|
455
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after five years through 10 years
|
|
1,634
|
|
|
|
|
1,802
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Due after 10 years
|
|
28,451
|
|
|
|
|
34,885
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Mortgage- and asset-backed securities
|
|
26
|
|
|
|
|
27
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total fixed maturities held to maturity
|
|
$
|
31,430
|
|
|
|
|
$
|
38,072
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
Aflac Japan
|
|
Aflac U.S.
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Due after one year through five years
|
|
$
|
194
|
|
|
|
|
$
|
233
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Due after 10 years
|
|
1,229
|
|
|
|
|
1,495
|
|
|
|
|
39
|
|
|
|
|
61
|
|
|
||||
Total perpetual securities available for sale
|
|
$
|
1,423
|
|
|
|
|
$
|
1,728
|
|
|
|
|
$
|
39
|
|
|
|
|
$
|
61
|
|
|
|
2017
|
|
2016
|
||||||||
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
Japan National Government
(1)
|
A
|
|
$48,399
|
|
$56,532
|
|
A
|
|
$42,931
|
|
$51,345
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|
||||||
Realized investment gains (losses):
|
|
|
|
|
|
|
||||||
Fixed maturities:
|
|
|
|
|
|
|
||||||
Available for sale:
|
|
|
|
|
|
|
||||||
Gross gains from sales
|
$
|
36
|
|
|
$
|
77
|
|
|
$
|
224
|
|
|
Gross losses from sales
|
(82
|
)
|
|
(134
|
)
|
|
(8
|
)
|
|
|||
Net gains (losses) from redemptions
|
(23
|
)
|
|
112
|
|
|
51
|
|
|
|||
Other-than-temporary impairment losses
|
(7
|
)
|
|
(24
|
)
|
|
(152
|
)
|
|
|||
Total fixed maturities
|
(76
|
)
|
|
31
|
|
|
115
|
|
|
|||
Perpetual securities:
|
|
|
|
|
|
|
||||||
Available for sale:
|
|
|
|
|
|
|
||||||
Net gains (losses) from redemptions
|
4
|
|
|
64
|
|
|
35
|
|
|
|||
Other-than-temporary impairment losses
|
0
|
|
|
(2
|
)
|
|
0
|
|
|
|||
Total perpetual securities
|
4
|
|
|
62
|
|
|
35
|
|
|
|||
Equity securities:
|
|
|
|
|
|
|
||||||
Gross gains from sales
|
104
|
|
|
0
|
|
|
0
|
|
|
|||
Gross losses from sales
|
(11
|
)
|
|
0
|
|
|
0
|
|
|
|||
Net gains (losses) from redemptions
|
0
|
|
|
22
|
|
|
0
|
|
|
|||
Other-than-temporary impairment losses
|
(22
|
)
|
|
(57
|
)
|
|
(1
|
)
|
|
|||
Total equity securities
|
71
|
|
|
(35
|
)
|
|
(1
|
)
|
|
|||
Loan loss reserves
|
(8
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
|||
Derivatives and other:
|
|
|
|
|
|
|
||||||
Derivative gains (losses)
|
(109
|
)
|
|
(255
|
)
|
|
(10
|
)
|
|
|||
Foreign currency gains (losses)
|
(33
|
)
|
|
185
|
|
|
(32
|
)
|
|
|||
Total derivatives and other
|
(142
|
)
|
|
(70
|
)
|
|
(42
|
)
|
|
|||
Total realized investment gains (losses)
|
$
|
(151
|
)
|
|
$
|
(14
|
)
|
|
$
|
106
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Changes in unrealized gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available for sale
|
|
$
|
1,457
|
|
|
|
|
$
|
2,690
|
|
|
|
|
$
|
(2,481
|
)
|
|
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available for sale
|
|
200
|
|
|
|
|
21
|
|
|
|
|
(123
|
)
|
|
|||
Equity securities
|
|
71
|
|
|
|
|
88
|
|
|
|
|
9
|
|
|
|||
Total change in unrealized gains (losses)
|
|
$
|
1,728
|
|
|
|
|
$
|
2,799
|
|
|
|
|
$
|
(2,595
|
)
|
|
(In millions)
|
2017
|
|
2016
|
||||||||
Unrealized gains (losses) on securities available for sale
|
|
$
|
9,358
|
|
|
|
|
$
|
7,630
|
|
|
Deferred income taxes
(1)
|
|
(3,394
|
)
|
|
|
|
(2,825
|
)
|
|
||
Shareholders’ equity, unrealized gains (losses) on investment securities
|
|
$
|
5,964
|
|
|
|
|
$
|
4,805
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and
agencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
$
|
74
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
74
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Japan government and
agencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
5,255
|
|
|
|
|
271
|
|
|
|
|
1,264
|
|
|
|
|
9
|
|
|
|
|
3,991
|
|
|
|
|
262
|
|
|
||||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
129
|
|
|
|
|
12
|
|
|
|
|
10
|
|
|
|
|
0
|
|
|
|
|
119
|
|
|
|
|
12
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
785
|
|
|
|
|
27
|
|
|
|
|
221
|
|
|
|
|
3
|
|
|
|
|
564
|
|
|
|
|
24
|
|
|
||||||
Yen-denominated
|
|
83
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
83
|
|
|
|
|
6
|
|
|
||||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
309
|
|
|
|
|
1
|
|
|
|
|
309
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
362
|
|
|
|
|
8
|
|
|
|
|
316
|
|
|
|
|
5
|
|
|
|
|
46
|
|
|
|
|
3
|
|
|
||||||
Yen-denominated
|
|
1,162
|
|
|
|
|
35
|
|
|
|
|
394
|
|
|
|
|
4
|
|
|
|
|
768
|
|
|
|
|
31
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
7,741
|
|
|
|
|
418
|
|
|
|
|
2,839
|
|
|
|
|
50
|
|
|
|
|
4,902
|
|
|
|
|
368
|
|
|
||||||
Yen-denominated
|
|
440
|
|
|
|
|
7
|
|
|
|
|
349
|
|
|
|
|
4
|
|
|
|
|
91
|
|
|
|
|
3
|
|
|
||||||
Total fixed maturities
|
|
16,340
|
|
|
|
|
786
|
|
|
|
|
5,776
|
|
|
|
|
77
|
|
|
|
|
10,564
|
|
|
|
|
709
|
|
|
||||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
345
|
|
|
|
|
27
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
345
|
|
|
|
|
27
|
|
|
||||||
Total perpetual securities
|
|
345
|
|
|
|
|
27
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
345
|
|
|
|
|
27
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
41
|
|
|
|
|
2
|
|
|
|
|
21
|
|
|
|
|
0
|
|
|
|
|
20
|
|
|
|
|
2
|
|
|
||||||
Yen-denominated
|
|
40
|
|
|
|
|
1
|
|
|
|
|
39
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
||||||
Total equity securities
|
|
81
|
|
|
|
|
3
|
|
|
|
|
60
|
|
|
|
|
1
|
|
|
|
|
21
|
|
|
|
|
2
|
|
|
||||||
Total
|
|
$
|
16,766
|
|
|
|
|
$
|
816
|
|
|
|
|
$
|
5,836
|
|
|
|
|
$
|
78
|
|
|
|
|
$
|
10,930
|
|
|
|
|
$
|
738
|
|
|
|
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)
|
2017
|
|
2016
|
||||||||
Other investments:
|
|
|
|
|
|
|
|
||||
Transitional real estate loans
|
|
$
|
1,235
|
|
|
|
|
$
|
0
|
|
|
Commercial mortgage loans
|
|
908
|
|
|
|
|
855
|
|
|
||
Middle market loans
|
|
859
|
|
|
|
|
319
|
|
|
||
Policy loans
|
|
210
|
|
|
|
|
184
|
|
|
||
Short-term investments
|
|
57
|
|
|
|
|
89
|
|
|
||
Other
|
|
133
|
|
|
|
|
3
|
|
|
||
Total other investments
|
|
$
|
3,402
|
|
|
|
|
$
|
1,450
|
|
|
|
2017
|
|
2016
|
||||||||||||||||||||
(In millions)
|
Cost or Amortized
Cost |
|
Fair
Value |
|
Cost or Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
4,300
|
|
|
|
|
$
|
5,294
|
|
|
|
|
$
|
4,168
|
|
|
|
|
$
|
4,982
|
|
|
Perpetual securities, available for sale
|
|
238
|
|
|
|
|
215
|
|
|
|
|
237
|
|
|
|
|
208
|
|
|
||||
Equity securities
|
|
606
|
|
|
|
|
753
|
|
|
|
|
972
|
|
|
|
|
1,044
|
|
|
||||
Other investments
(1)
|
|
2,341
|
|
|
|
|
2,328
|
|
|
|
|
819
|
|
|
|
|
789
|
|
|
||||
Other assets
(2)
|
|
151
|
|
|
|
|
151
|
|
|
|
|
127
|
|
|
|
|
127
|
|
|
||||
Total assets of consolidated VIEs
|
|
$
|
7,636
|
|
|
|
|
$
|
8,741
|
|
|
|
|
$
|
6,323
|
|
|
|
|
$
|
7,150
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
(2)
|
|
$
|
128
|
|
|
|
|
$
|
128
|
|
|
|
|
$
|
146
|
|
|
|
|
$
|
146
|
|
|
Total liabilities of consolidated VIEs
|
|
$
|
128
|
|
|
|
|
$
|
128
|
|
|
|
|
$
|
146
|
|
|
|
|
$
|
146
|
|
|
|
2017
|
|
2016
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturities, available for sale
|
|
$
|
4,827
|
|
|
|
|
$
|
5,506
|
|
|
|
|
$
|
4,729
|
|
|
|
|
$
|
5,261
|
|
|
Perpetual securities, available for sale
|
|
177
|
|
|
|
|
218
|
|
|
|
|
172
|
|
|
|
|
200
|
|
|
||||
Fixed maturities, held to maturity
|
|
2,549
|
|
|
|
|
2,929
|
|
|
|
|
2,563
|
|
|
|
|
2,948
|
|
|
||||
Other investments
|
|
55
|
|
|
|
|
55
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||
Total investments in VIEs not consolidated
|
|
$
|
7,608
|
|
|
|
|
$
|
8,708
|
|
|
|
|
$
|
7,465
|
|
|
|
|
$
|
8,410
|
|
|
|
2017
|
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
|
|
7,640
|
|
|
|
|
2
|
|
|
|
|
(221
|
)
|
|
|
10,965
|
|
|
|
|
0
|
|
|
|
|
(759
|
)
|
|
||||||
Foreign currency options
|
|
7,670
|
|
|
|
|
0
|
|
|
|
|
(2
|
)
|
|
|
4,224
|
|
|
|
|
2
|
|
|
|
|
(32
|
)
|
|
||||||
Total fair value hedges
|
|
15,310
|
|
|
|
|
2
|
|
|
|
|
(223
|
)
|
|
|
15,189
|
|
|
|
|
2
|
|
|
|
|
(791
|
)
|
|
||||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forwards
|
|
5
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
209
|
|
|
|
|
5
|
|
|
|
|
(2
|
)
|
|
||||||
Foreign currency options
|
|
434
|
|
|
|
|
12
|
|
|
|
|
(1
|
)
|
|
|
843
|
|
|
|
|
41
|
|
|
|
|
(17
|
)
|
|
||||||
Total net investment hedge
|
|
439
|
|
|
|
|
12
|
|
|
|
|
(1
|
)
|
|
|
1,052
|
|
|
|
|
46
|
|
|
|
|
(19
|
)
|
|
||||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
5,386
|
|
|
|
|
296
|
|
|
|
|
(189
|
)
|
|
|
6,266
|
|
|
|
|
490
|
|
|
|
|
(220
|
)
|
|
||||||
Foreign currency forwards
|
|
3,683
|
|
|
|
|
20
|
|
|
|
|
(53
|
)
|
|
|
21,218
|
|
|
|
|
667
|
|
|
|
|
(956
|
)
|
|
||||||
Foreign currency options
|
|
770
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
41
|
|
|
|
|
0
|
|
|
|
|
(2
|
)
|
|
||||||
Credit default swaps
|
|
88
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
86
|
|
|
|
|
2
|
|
|
|
|
0
|
|
|
||||||
Total non-qualifying strategies
|
|
9,927
|
|
|
|
|
317
|
|
|
|
|
(242
|
)
|
|
|
27,611
|
|
|
|
|
1,159
|
|
|
|
|
(1,178
|
)
|
|
||||||
Total derivatives
|
|
$
|
25,751
|
|
|
|
|
$
|
331
|
|
|
|
|
$
|
(474
|
)
|
|
|
$
|
43,927
|
|
|
|
|
$
|
1,207
|
|
|
|
|
$
|
(1,998
|
)
|
|
Balance Sheet Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets
|
|
$
|
10,948
|
|
|
|
|
$
|
331
|
|
|
|
|
$
|
0
|
|
|
|
$
|
18,329
|
|
|
|
|
$
|
1,207
|
|
|
|
|
$
|
0
|
|
|
Other liabilities
|
|
14,803
|
|
|
|
|
0
|
|
|
|
|
(474
|
)
|
|
|
25,598
|
|
|
|
|
0
|
|
|
|
|
(1,998
|
)
|
|
||||||
Total derivatives
|
|
$
|
25,751
|
|
|
|
|
$
|
331
|
|
|
|
|
$
|
(474
|
)
|
|
|
$
|
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 |
||||||||||
2017:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Foreign currency
forwards |
Fixed-maturity and equity securities
|
|
$
|
98
|
|
|
$
|
(202
|
)
|
|
$
|
300
|
|
|
$
|
(278
|
)
|
|
$
|
22
|
|
Foreign currency
options |
Fixed-maturity securities
|
|
21
|
|
|
10
|
|
|
11
|
|
|
(10
|
)
|
|
1
|
|
|||||
2016:
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency forwards
|
Fixed-maturity and equity securities
|
|
$
|
207
|
|
|
$
|
(338
|
)
|
|
$
|
545
|
|
|
$
|
(566
|
)
|
|
$
|
(21
|
)
|
Foreign currency options
|
Fixed-maturity securities
|
|
(95
|
)
|
|
(18
|
)
|
|
(77
|
)
|
|
70
|
|
|
(7
|
)
|
|||||
2015:
|
|
|
|
|
|
|
|
||||||||||||||
Foreign currency forwards
|
Fixed-maturity securities
|
|
$
|
(133
|
)
|
|
$
|
(136
|
)
|
|
$
|
3
|
|
|
$
|
(5
|
)
|
|
$
|
(2
|
)
|
Foreign currency options
|
Fixed-maturity securities
|
|
(4
|
)
|
|
3
|
|
|
(7
|
)
|
|
7
|
|
|
0
|
|
|||||
Interest rate
swaptions |
Fixed-maturity securities
|
|
(95
|
)
|
|
19
|
|
|
(114
|
)
|
|
99
|
|
|
(15
|
)
|
|
2017
|
2016
|
2015
|
|||||||||||||||||||||||||||
(In millions)
|
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
Realized
Investment Gains (Losses) |
Other
Comprehensive Income (Loss) (1) |
||||||||||||||||||||||||
Qualifying hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
$
|
1
|
|
|
|
$
|
1
|
|
|
|
$
|
3
|
|
|
|
$
|
0
|
|
|
|
$
|
0
|
|
|
Total cash flow hedges
|
|
0
|
|
|
|
1
|
|
|
|
1
|
|
|
|
3
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forwards
(2)
|
|
(180
|
)
|
|
|
0
|
|
|
|
(359
|
)
|
|
|
0
|
|
|
|
(138
|
)
|
|
|
0
|
|
|
||||||
Foreign currency options
(
2)
|
|
11
|
|
|
|
0
|
|
|
|
(25
|
)
|
|
|
0
|
|
|
|
3
|
|
|
|
0
|
|
|
||||||
Interest rate swaptions
(2)
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
4
|
|
|
|
0
|
|
|
||||||
Total fair value hedges
|
|
(169
|
)
|
|
|
0
|
|
|
|
(384
|
)
|
|
|
0
|
|
|
|
(131
|
)
|
|
|
0
|
|
|
||||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-derivative hedging
instruments |
|
0
|
|
|
|
(15
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
3
|
|
|
||||||
Foreign currency forwards
|
|
0
|
|
|
|
(25
|
)
|
|
|
0
|
|
|
|
(118
|
)
|
|
|
0
|
|
|
|
4
|
|
|
||||||
Foreign currency options
|
|
0
|
|
|
|
5
|
|
|
|
0
|
|
|
|
73
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Total net investment hedge
|
|
0
|
|
|
|
(35
|
)
|
|
|
0
|
|
|
|
(45
|
)
|
|
|
0
|
|
|
|
7
|
|
|
||||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
53
|
|
|
|
0
|
|
|
|
117
|
|
|
|
0
|
|
|
|
16
|
|
|
|
0
|
|
|
||||||
Foreign currency forwards
|
|
8
|
|
|
|
0
|
|
|
|
9
|
|
|
|
0
|
|
|
|
100
|
|
|
|
0
|
|
|
||||||
Credit default swaps
|
|
(1
|
)
|
|
|
0
|
|
|
|
2
|
|
|
|
0
|
|
|
|
1
|
|
|
|
0
|
|
|
||||||
Interest rate swaps
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
5
|
|
|
|
0
|
|
|
||||||
Futures
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
0
|
|
|
||||||
Total non- qualifying strategies
|
|
60
|
|
|
|
0
|
|
|
|
128
|
|
|
|
0
|
|
|
|
121
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
(109
|
)
|
|
|
$
|
(34
|
)
|
|
|
$
|
(255
|
)
|
|
|
$
|
(42
|
)
|
|
|
$
|
(10
|
)
|
|
|
$
|
7
|
|
|
|
2017
|
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
|
|
$
|
4,708
|
|
|
|
$
|
52
|
|
|
|
$
|
(37
|
)
|
|
|
$
|
6,844
|
|
|
|
$
|
247
|
|
|
|
$
|
(308
|
)
|
|
A
|
|
20,604
|
|
|
|
271
|
|
|
|
(370
|
)
|
|
|
36,019
|
|
|
|
900
|
|
|
|
(1,621
|
)
|
|
||||||
BBB
|
|
439
|
|
|
|
8
|
|
|
|
(67
|
)
|
|
|
1,064
|
|
|
|
60
|
|
|
|
(69
|
)
|
|
||||||
Total
|
|
$
|
25,751
|
|
|
|
$
|
331
|
|
|
|
$
|
(474
|
)
|
|
|
$
|
43,927
|
|
|
|
$
|
1,207
|
|
|
|
$
|
(1,998
|
)
|
|
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
|
|
$
|
180
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
180
|
|
|
|
|
$
|
(82
|
)
|
|
|
$
|
0
|
|
|
|
$
|
(98
|
)
|
|
|
|
$
|
0
|
|
|
Derivative
assets not subject
to a master netting
agreement or
offsetting
arrangement
|
|
151
|
|
|
|
|
|
|
|
|
151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
151
|
|
|
||||||||||
Total derivative
assets
|
|
331
|
|
|
|
|
0
|
|
|
|
|
331
|
|
|
|
|
(82
|
)
|
|
|
0
|
|
|
|
(98
|
)
|
|
|
|
151
|
|
|
|||||||
Securities lending
and similar
arrangements
|
|
592
|
|
|
|
|
0
|
|
|
|
|
592
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(592
|
)
|
|
|
|
0
|
|
|
|||||||
Total
|
|
$
|
923
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
923
|
|
|
|
|
$
|
(82
|
)
|
|
|
$
|
0
|
|
|
|
$
|
(690
|
)
|
|
|
|
$
|
151
|
|
|
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
|
|
|
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
|
|
$
|
(346
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(346
|
)
|
|
|
|
$
|
82
|
|
|
|
$
|
245
|
|
|
|
$
|
10
|
|
|
|
|
$
|
(9
|
)
|
|
Derivative
liabilities not
subject to a
master netting
agreement or
offsetting
arrangement
|
|
(128
|
)
|
|
|
|
|
|
|
|
(128
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(128
|
)
|
|
|||||||||||
Total derivative
liabilities
|
|
(474
|
)
|
|
|
|
0
|
|
|
|
|
(474
|
)
|
|
|
|
82
|
|
|
|
245
|
|
|
|
10
|
|
|
|
|
(137
|
)
|
|
|||||||
Securities lending
and similar
arrangements
|
|
(606
|
)
|
|
|
|
0
|
|
|
|
|
(606
|
)
|
|
|
|
592
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
(14
|
)
|
|
|||||||
Total
|
|
$
|
(1,080
|
)
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(1,080
|
)
|
|
|
|
$
|
674
|
|
|
|
$
|
245
|
|
|
|
$
|
10
|
|
|
|
|
$
|
(151
|
)
|
|
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
|
|
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
|
|
$
|
30,109
|
|
|
|
|
$
|
1,121
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
31,230
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,370
|
|
|
|
|
0
|
|
|
|
|
1,370
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
269
|
|
|
|
|
175
|
|
|
|
|
444
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
7,886
|
|
|
|
|
68
|
|
|
|
|
7,954
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,909
|
|
|
|
|
0
|
|
|
|
|
1,909
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
7,352
|
|
|
|
|
25
|
|
|
|
|
7,377
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
32,094
|
|
|
|
|
146
|
|
|
|
|
32,240
|
|
|
||||
Total fixed maturities
|
|
30,109
|
|
|
|
|
52,001
|
|
|
|
|
414
|
|
|
|
|
82,524
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions
|
|
0
|
|
|
|
|
1,556
|
|
|
|
|
0
|
|
|
|
|
1,556
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
233
|
|
|
|
|
0
|
|
|
|
|
233
|
|
|
||||
Total perpetual securities
|
|
0
|
|
|
|
|
1,789
|
|
|
|
|
0
|
|
|
|
|
1,789
|
|
|
||||
Equity securities
|
|
1,001
|
|
|
|
|
6
|
|
|
|
|
16
|
|
|
|
|
1,023
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
146
|
|
|
|
|
150
|
|
|
|
|
296
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
22
|
|
|
|
|
0
|
|
|
|
|
22
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
12
|
|
|
||||
Credit default swaps
|
|
0
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
180
|
|
|
|
|
151
|
|
|
|
|
331
|
|
|
||||
Other investments
|
|
57
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
57
|
|
|
||||
Cash and cash equivalents
|
|
3,491
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
3,491
|
|
|
||||
Total assets
|
|
$
|
34,658
|
|
|
|
|
$
|
53,976
|
|
|
|
|
$
|
581
|
|
|
|
|
$
|
89,215
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
69
|
|
|
|
|
$
|
128
|
|
|
|
|
$
|
197
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
274
|
|
|
|
|
0
|
|
|
|
|
274
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
346
|
|
|
|
|
$
|
128
|
|
|
|
|
$
|
474
|
|
|
|
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
|
|
|
|
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
|
|
$
|
21,331
|
|
|
|
$
|
26,491
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,491
|
|
|
Municipalities
|
|
357
|
|
|
|
0
|
|
|
|
|
462
|
|
|
|
|
0
|
|
|
|
|
462
|
|
|
|||||
Mortgage and asset-backed
securities |
|
26
|
|
|
|
0
|
|
|
|
|
8
|
|
|
|
|
19
|
|
|
|
|
27
|
|
|
|||||
Public utilities
|
|
3,300
|
|
|
|
0
|
|
|
|
|
3,698
|
|
|
|
|
0
|
|
|
|
|
3,698
|
|
|
|||||
Sovereign and
supranational |
|
1,523
|
|
|
|
0
|
|
|
|
|
1,835
|
|
|
|
|
0
|
|
|
|
|
1,835
|
|
|
|||||
Banks/financial institutions
|
|
2,206
|
|
|
|
0
|
|
|
|
|
2,387
|
|
|
|
|
0
|
|
|
|
|
2,387
|
|
|
|||||
Other corporate
|
|
2,687
|
|
|
|
0
|
|
|
|
|
3,172
|
|
|
|
|
0
|
|
|
|
|
3,172
|
|
|
|||||
Other investments
(1)
|
|
3,017
|
|
|
|
0
|
|
|
|
|
15
|
|
|
|
|
2,987
|
|
|
|
|
3,002
|
|
|
|||||
Total assets
|
|
$
|
34,447
|
|
|
|
$
|
26,491
|
|
|
|
|
$
|
11,577
|
|
|
|
|
$
|
3,006
|
|
|
|
|
$
|
41,074
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
6,939
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
6,841
|
|
|
|
|
$
|
6,841
|
|
|
Notes payable
(excluding capital leases) |
|
5,267
|
|
|
|
0
|
|
|
|
|
5,288
|
|
|
|
|
265
|
|
|
|
|
5,553
|
|
|
|||||
Total liabilities
|
|
$
|
12,206
|
|
|
|
$
|
0
|
|
|
|
|
$
|
5,288
|
|
|
|
|
$
|
7,106
|
|
|
|
|
$
|
12,394
|
|
|
|
|
|
|
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
|
|
|
|
|
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
|
|
|
$
|
30,109
|
|
|
|
|
$
|
1,121
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
31,230
|
|
|
Total government and agencies
|
|
|
30,109
|
|
|
|
|
1,121
|
|
|
|
|
0
|
|
|
|
|
31,230
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,370
|
|
|
|
|
0
|
|
|
|
|
1,370
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,370
|
|
|
|
|
0
|
|
|
|
|
1,370
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
269
|
|
|
|
|
0
|
|
|
|
|
269
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
175
|
|
|
|
|
175
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
269
|
|
|
|
|
175
|
|
|
|
|
444
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7,886
|
|
|
|
|
0
|
|
|
|
|
7,886
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
68
|
|
|
|
|
68
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
7,886
|
|
|
|
|
68
|
|
|
|
|
7,954
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,807
|
|
|
|
|
0
|
|
|
|
|
1,807
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
102
|
|
|
|
|
0
|
|
|
|
|
102
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,909
|
|
|
|
|
0
|
|
|
|
|
1,909
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7,352
|
|
|
|
|
0
|
|
|
|
|
7,352
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
25
|
|
|
|
|
25
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
7,352
|
|
|
|
|
25
|
|
|
|
|
7,377
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
32,094
|
|
|
|
|
0
|
|
|
|
|
32,094
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
146
|
|
|
|
|
146
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
32,094
|
|
|
|
|
146
|
|
|
|
|
32,240
|
|
|
||||
Total fixed maturities
|
|
|
30,109
|
|
|
|
|
52,001
|
|
|
|
|
414
|
|
|
|
|
82,524
|
|
|
||||
Perpetual securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,556
|
|
|
|
|
0
|
|
|
|
|
1,556
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
1,556
|
|
|
|
|
0
|
|
|
|
|
1,556
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
233
|
|
|
|
|
0
|
|
|
|
|
233
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
233
|
|
|
|
|
0
|
|
|
|
|
233
|
|
|
||||
Total perpetual securities
|
|
|
0
|
|
|
|
|
1,789
|
|
|
|
|
0
|
|
|
|
|
1,789
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
1,001
|
|
|
|
|
6
|
|
|
|
|
0
|
|
|
|
|
1,007
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
16
|
|
|
|
|
16
|
|
|
||||
Total equity securities
|
|
|
1,001
|
|
|
|
|
6
|
|
|
|
|
16
|
|
|
|
|
1,023
|
|
|
||||
Total securities available for sale
|
|
|
$
|
31,110
|
|
|
|
|
$
|
53,796
|
|
|
|
|
$
|
430
|
|
|
|
|
$
|
85,336
|
|
|
|
|
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
|
|
|
$
|
26,491
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
26,491
|
|
|
Total government and agencies
|
|
|
26,491
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
26,491
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
462
|
|
|
|
|
0
|
|
|
|
|
462
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
462
|
|
|
|
|
0
|
|
|
|
|
462
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
8
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
19
|
|
|
|
|
19
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
8
|
|
|
|
|
19
|
|
|
|
|
27
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,698
|
|
|
|
|
0
|
|
|
|
|
3,698
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
3,698
|
|
|
|
|
0
|
|
|
|
|
3,698
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,835
|
|
|
|
|
0
|
|
|
|
|
1,835
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,835
|
|
|
|
|
0
|
|
|
|
|
1,835
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,387
|
|
|
|
|
0
|
|
|
|
|
2,387
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
2,387
|
|
|
|
|
0
|
|
|
|
|
2,387
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
3,172
|
|
|
|
|
0
|
|
|
|
|
3,172
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
3,172
|
|
|
|
|
0
|
|
|
|
|
3,172
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
26,491
|
|
|
|
|
$
|
11,562
|
|
|
|
|
$
|
19
|
|
|
|
|
$
|
38,072
|
|
|
|
|
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
|
|
|
|
|
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
|
|
|
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
|
|
|
43
|
|
|
(1
|
)
|
|
42
|
|
|
||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
3
|
|
|
0
|
|
|
0
|
|
|
2
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5
|
|
|
||||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchases
|
0
|
|
|
76
|
|
|
0
|
|
|
122
|
|
|
16
|
|
|
0
|
|
|
0
|
|
|
214
|
|
|
||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Sales
|
0
|
|
|
0
|
|
|
0
|
|
|
(2
|
)
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
(3
|
)
|
|
||||||||
Settlements
|
(26
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(26
|
)
|
|
||||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
24
|
|
(2)
|
0
|
|
|
0
|
|
|
0
|
|
|
24
|
|
|
||||||||
Transfers out of Level 3
|
0
|
|
|
(24
|
)
|
(2)
|
0
|
|
|
0
|
|
|
(2
|
)
|
(3)
|
0
|
|
|
0
|
|
|
(26
|
)
|
|
||||||||
Balance, end of period
|
$
|
175
|
|
|
$
|
68
|
|
|
$
|
25
|
|
|
$
|
146
|
|
|
$
|
16
|
|
|
$
|
22
|
|
|
$
|
1
|
|
|
$
|
453
|
|
|
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
|
|
|
$
|
43
|
|
|
$
|
(1
|
)
|
|
$
|
42
|
|
|
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
|
|
|
194
|
|
|
1
|
|
|
195
|
|
|
||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
38
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
0
|
|
|
(22
|
)
|
|
0
|
|
|
15
|
|
|
||||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases
|
0
|
|
|
16
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
16
|
|
|
||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Sales
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Settlements
|
(60
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
(61
|
)
|
|
||||||||
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
|
$
|
198
|
|
|
$
|
16
|
|
|
$
|
25
|
|
|
$
|
0
|
|
|
$
|
3
|
|
|
$
|
(21
|
)
|
|
$
|
2
|
|
|
$
|
223
|
|
|
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
|
|
|
$
|
194
|
|
|
$
|
1
|
|
|
$
|
195
|
|
|
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
|
|
|
$
|
175
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(c)
|
Public utilities
|
|
|
68
|
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
N/A
|
(c)
|
|
Banks/financial institutions
|
|
|
25
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(c)
|
|
Other corporate
|
|
|
146
|
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
N/A
|
(d)
|
|
Equity securities
|
|
|
16
|
|
|
|
Net asset value
|
|
Offered quotes
|
|
N/A
|
(c)
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
80
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.40% - 2.54%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.26% - .85%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
9 - 90 bps
|
|
||
|
|
|
70
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.40% - 2.54%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.26% - .85%
|
(b)
|
||
Credit default swaps
|
|
|
1
|
|
|
|
Discounted cash flow
|
|
Base correlation
|
|
46.33% - 49.65%
|
(d)
|
|
|
|
|
|
|
|
|
|
CDS spreads
|
|
25 bps
|
|
||
|
|
|
|
|
|
|
|
Recovery rate
|
|
37.24%
|
|
||
Total assets
|
|
|
$
|
581
|
|
|
|
|
|
|
|
|
|
2017
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
120
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.40% - 2.54%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.26% - .85%
|
(b)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
13 - 157 bps
|
|
||
|
|
|
8
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.40% - 2.54%
|
(a)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.26% - .85%
|
(b)
|
||
Total liabilities
|
|
|
$
|
128
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
||||||||||||||||||||
(In millions)
|
Japan
|
|
U.S.
|
|
Japan
|
|
U.S.
|
||||||||||||||||
Deferred policy acquisition costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of year
|
|
$
|
5,765
|
|
|
|
|
$
|
3,228
|
|
|
|
|
$
|
5,370
|
|
|
|
|
$
|
3,141
|
|
|
Capitalization
|
|
839
|
|
|
|
|
629
|
|
|
|
|
864
|
|
|
|
|
583
|
|
|
||||
Amortization
|
|
(630
|
)
|
|
|
|
(502
|
)
|
|
|
|
(644
|
)
|
|
|
|
(497
|
)
|
|
||||
Foreign currency translation and other
|
|
176
|
|
|
|
|
0
|
|
|
|
|
175
|
|
|
|
|
1
|
|
|
||||
Balance, end of year
|
|
$
|
6,150
|
|
|
|
|
$
|
3,355
|
|
|
|
|
$
|
5,765
|
|
|
|
|
$
|
3,228
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Advertising expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
100
|
|
|
|
|
$
|
100
|
|
|
|
|
$
|
82
|
|
|
Aflac U.S.
|
|
110
|
|
|
|
|
124
|
|
|
|
|
129
|
|
|
|||
Total advertising expense
|
|
$
|
210
|
|
|
|
|
$
|
224
|
|
|
|
|
$
|
211
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Depreciation expense
|
|
$
|
50
|
|
|
|
|
$
|
48
|
|
|
|
|
$
|
44
|
|
|
Other amortization expense
|
|
3
|
|
|
|
|
6
|
|
|
|
|
6
|
|
|
|||
Total depreciation and other amortization expense
|
|
$
|
53
|
|
|
|
|
$
|
54
|
|
|
|
|
$
|
50
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Lease and rental expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
52
|
|
|
|
|
$
|
53
|
|
|
|
|
$
|
46
|
|
|
Aflac U.S.
|
|
21
|
|
|
|
|
21
|
|
|
|
|
18
|
|
|
|||
Other
|
|
2
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|||
Total lease and rental expense
|
|
$
|
75
|
|
|
|
|
$
|
75
|
|
|
|
|
$
|
65
|
|
|
|
|
|
Liability Amounts
|
|
|
Interest Rates
|
||||||||||
(In millions)
|
Policy
Issue Year |
|
2017
|
|
2016
|
|
|
Year of
Issue |
|
In 20
Years |
||||||
Health insurance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Japan:
|
1992 - 2017
|
|
$
|
10,167
|
|
|
$
|
8,912
|
|
|
|
1.0 - 2.5
|
%
|
|
1.0 - 2.5
|
%
|
|
1974 - 2013
|
|
1,133
|
|
|
1,118
|
|
|
|
2.7 - 2.75
|
|
|
2.25 - 2.75
|
|
||
|
1998 - 2017
|
|
12,386
|
|
|
11,687
|
|
|
|
3.0
|
|
|
3.0
|
|
||
|
1997 - 1999
|
|
2,454
|
|
|
2,485
|
|
|
|
3.5
|
|
|
3.5
|
|
||
|
1994 - 1996
|
|
3,046
|
|
|
3,069
|
|
|
|
4.0 - 4.5
|
|
|
4.0 - 4.5
|
|
||
|
1987 - 1994
|
|
14,829
|
|
|
14,372
|
|
|
|
5.5
|
|
|
5.5
|
|
||
|
1985 - 1991
|
|
1,816
|
|
|
1,871
|
|
|
|
5.25 - 6.75
|
|
|
5.25 - 5.5
|
|
||
|
1978 - 1984
|
|
2,037
|
|
|
2,134
|
|
|
|
6.5
|
|
|
5.5
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S.:
|
2013 - 2017
|
|
82
|
|
|
75
|
|
|
|
3.0
|
|
|
3.0
|
|
||
|
2012 - 2017
|
|
1,366
|
|
|
1,062
|
|
|
|
3.75
|
|
|
3.75
|
|
||
|
2011
|
|
343
|
|
|
319
|
|
|
|
4.75
|
|
|
4.75
|
|
||
|
2005 - 2010
|
|
2,944
|
|
|
3,004
|
|
|
|
5.5
|
|
|
5.5
|
|
||
|
1988 - 2004
|
|
656
|
|
|
669
|
|
|
|
8.0
|
|
|
6.0
|
|
||
|
1986 - 2004
|
|
1,296
|
|
|
1,265
|
|
|
|
6.0
|
|
|
6.0
|
|
||
|
1981 - 1986
|
|
159
|
|
|
166
|
|
|
|
6.5 - 7.0
|
|
|
5.5 - 6.5
|
|
||
|
1998 - 2004
|
|
1,310
|
|
|
1,295
|
|
|
|
7.0
|
|
|
7.0
|
|
||
|
Other
|
|
18
|
|
|
19
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Intercompany eliminations:
|
2015
|
|
(609
|
)
|
(1)
|
(630
|
)
|
(1)
|
|
2.0
|
|
|
2.0
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Life insurance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Japan:
|
2001 - 2017
|
|
8,850
|
|
|
7,255
|
|
|
|
1.0 - 1.85
|
|
|
1.0 - 1.85
|
|
||
|
2011 - 2017
|
|
4,763
|
|
|
4,151
|
|
|
|
2.0
|
|
|
2.0
|
|
||
|
2009 - 2011
|
|
3,393
|
|
|
2,861
|
|
|
|
2.25
|
|
|
2.25
|
|
||
|
1992 - 2006
|
|
5
|
|
|
5
|
|
|
|
2.19
|
|
|
1.55
|
|
||
|
2005 - 2011
|
|
1,642
|
|
|
1,488
|
|
|
|
2.5
|
|
|
2.5
|
|
||
|
1985 - 2006
|
|
2,048
|
|
|
2,007
|
|
|
|
2.7
|
|
|
2.25
|
|
||
|
2007 - 2011
|
|
1,319
|
|
|
1,220
|
|
|
|
2.75
|
|
|
2.75
|
|
||
|
1999 - 2011
|
|
2,189
|
|
|
2,102
|
|
|
|
3.0
|
|
|
3.0
|
|
||
|
1996 - 2009
|
|
675
|
|
|
657
|
|
|
|
3.5
|
|
|
3.5
|
|
||
|
1994 - 1996
|
|
908
|
|
|
897
|
|
|
|
4.0 - 4.5
|
|
|
4.0 - 4.5
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S.:
|
1956 - 2017
|
|
632
|
|
|
571
|
|
|
|
3.5 - 6.0
|
|
|
3.5 - 6.0
|
|
||
Total
|
|
|
$
|
81,857
|
|
|
$
|
76,106
|
|
|
|
|
|
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Unpaid supplemental health claims, beginning of period
|
|
$
|
3,707
|
|
|
|
|
$
|
3,548
|
|
|
|
|
$
|
3,412
|
|
|
Less reinsurance recoverables
|
|
27
|
|
|
|
|
26
|
|
|
|
|
7
|
|
|
|||
Net balance, beginning of period
|
|
3,680
|
|
|
|
|
3,522
|
|
|
|
|
3,405
|
|
|
|||
Add claims incurred during the period related to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current year
|
|
6,979
|
|
|
|
|
7,037
|
|
|
|
|
6,416
|
|
|
|||
Prior years
|
|
(518
|
)
|
|
|
|
(465
|
)
|
|
|
|
(353
|
)
|
|
|||
Total incurred
|
|
6,461
|
|
|
|
|
6,572
|
|
|
|
|
6,063
|
|
|
|||
Less claims paid during the period on claims incurred during:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current year
|
|
4,530
|
|
|
|
|
4,613
|
|
|
|
|
4,227
|
|
|
|||
Prior years
|
|
1,822
|
|
|
|
|
1,865
|
|
|
|
|
1,718
|
|
|
|||
Total paid
|
|
6,352
|
|
|
|
|
6,478
|
|
|
|
|
5,945
|
|
|
|||
Effect of foreign exchange rate changes on unpaid claims
|
|
65
|
|
|
|
|
64
|
|
|
|
|
(1
|
)
|
|
|||
Net balance, end of period
|
|
3,854
|
|
|
|
|
3,680
|
|
|
|
|
3,522
|
|
|
|||
Add reinsurance recoverables
|
|
30
|
|
|
|
|
27
|
|
|
|
|
26
|
|
|
|||
Unpaid supplemental health claims, end of period
|
|
3,884
|
|
|
|
|
3,707
|
|
|
|
|
3,548
|
|
|
|||
Unpaid life claims, end of period
|
|
508
|
|
|
|
|
338
|
|
|
|
|
254
|
|
|
|||
Total liability for unpaid policy claims
|
|
$
|
4,392
|
|
|
|
|
$
|
4,045
|
|
|
|
|
$
|
3,802
|
|
|
(In millions)
|
2017
|
2016
|
||||||||
Direct premium income
|
|
$
|
18,875
|
|
|
|
$
|
19,592
|
|
|
Ceded to other companies:
|
|
|
|
|
|
|
||||
Ceded Aflac Japan closed blocks
|
|
(515
|
)
|
|
|
(560
|
)
|
|
||
Other
|
|
(51
|
)
|
|
|
(48
|
)
|
|
||
Assumed from other companies:
|
|
|
|
|
|
|
||||
Retrocession activities
|
|
216
|
|
|
|
234
|
|
|
||
Other
|
|
6
|
|
|
|
7
|
|
|
||
Net premium income
|
|
$
|
18,531
|
|
|
|
$
|
19,225
|
|
|
|
|
|
|
|
|
|
||||
Direct benefits and claims
|
|
$
|
12,486
|
|
|
|
$
|
13,240
|
|
|
Ceded benefits and change in reserves for future benefits:
|
|
|
|
|
|
|
||||
Ceded Aflac Japan closed blocks
|
|
(473
|
)
|
|
|
(509
|
)
|
|
||
Eliminations
|
|
51
|
|
|
|
58
|
|
|
||
Other
|
|
(44
|
)
|
|
|
(38
|
)
|
|
||
Assumed from other companies:
|
|
|
|
|
|
|
||||
Retrocession activities
|
|
209
|
|
|
|
222
|
|
|
||
Eliminations
|
|
(51
|
)
|
|
|
(58
|
)
|
|
||
Other
|
|
3
|
|
|
|
4
|
|
|
||
Benefits and claims, net
|
|
$
|
12,181
|
|
|
|
$
|
12,919
|
|
|
(In millions)
|
2017
|
|
2016
|
||||||||
2.65% senior notes paid February 2017
|
|
$
|
0
|
|
|
|
|
$
|
649
|
|
|
2.40% senior notes due March 2020
|
|
548
|
|
|
|
|
547
|
|
|
||
4.00% senior notes due February 2022
|
|
348
|
|
|
|
|
348
|
|
|
||
3.625% senior notes due June 2023
|
|
697
|
|
|
|
|
696
|
|
|
||
3.625% senior notes due November 2024
|
|
745
|
|
|
|
|
745
|
|
|
||
3.25% senior notes due March 2025
|
|
446
|
|
|
|
|
445
|
|
|
||
2.875% senior notes due October 2026
|
|
297
|
|
|
|
|
298
|
|
|
||
6.90% senior notes due December 2039
|
|
220
|
|
|
|
|
220
|
|
|
||
6.45% senior notes due August 2040
|
|
254
|
|
|
|
|
254
|
|
|
||
4.00% senior notes due October 2046
|
|
394
|
|
|
|
|
394
|
|
|
||
5.50% subordinated debentures due September 2052
|
|
0
|
|
(1)
|
|
|
486
|
|
|
||
Yen-denominated senior notes and subordinated debentures:
|
|
|
|
|
|
|
|
||||
.932% senior notes due January 2027 (principal amount 60.0 billion yen)
|
|
528
|
|
|
|
|
0
|
|
|
||
2.108% subordinated debentures due October 2047 (principal amount 60.0 billion yen)
|
|
526
|
|
|
|
|
0
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
|
|
|
||||
Variable interest rate loan due September 2021 (.32% in 2017 and .31% in 2016, principal amount 5.0 billion yen)
|
|
44
|
|
|
|
|
43
|
|
|
||
Variable interest rate loan due September 2023 (.47% in 2017 and .46% in 2016, principal amount 25.0 billion yen)
|
|
220
|
|
|
|
|
214
|
|
|
||
Capitalized lease obligations payable through 2024
|
|
22
|
|
|
|
|
21
|
|
|
||
Total notes payable
|
|
$
|
5,289
|
|
|
|
|
$
|
5,360
|
|
|
(In millions)
|
Long-term
Debt |
|
Capitalized
Lease Obligations |
|
Total
Notes Payable |
||||||||||||
2018
|
|
$
|
0
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
8
|
|
|
2019
|
|
0
|
|
|
|
|
7
|
|
|
|
|
7
|
|
|
|||
2020
|
|
550
|
|
|
|
|
3
|
|
|
|
|
553
|
|
|
|||
2021
|
|
44
|
|
|
|
|
2
|
|
|
|
|
46
|
|
|
|||
2022
|
|
350
|
|
|
|
|
1
|
|
|
|
|
351
|
|
|
|||
Thereafter
|
|
4,364
|
|
|
|
|
1
|
|
|
|
|
4,365
|
|
|
|||
Total
|
|
$
|
5,308
|
|
|
|
|
$
|
22
|
|
|
|
|
$
|
5,330
|
|
|
Borrower
|
Type
|
Original Term
|
Expiration Date
|
Capacity
|
Amount Outstanding
|
Interest Rate on Borrowed Amount
|
Maturity Period
|
Commitment Fee
|
Business Purpose
|
Aflac Incorporated
and Aflac |
uncommitted bilateral
|
364 days
|
November 30, 2018
|
$100 million
|
$0 million
|
The rate quoted by the bank and agreed upon at the time of borrowing
|
Up to 3 months
|
None
|
General corporate purposes
|
Aflac Incorporated
|
unsecured revolving
|
3 years
|
March 31, 2019, or the date commitments are terminated pursuant to an event of default
|
100.0 billion yen
|
0.0 billion yen
|
A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period
|
No later than
March 31, 2019 |
.30% to .50%, depending on the Parent Company's debt ratings as of the date of determination
|
General corporate purposes, including a capital contingency plan for the operations of the Parent Company
|
Aflac Incorporated
and Aflac |
unsecured revolving
|
5 years
|
September 18, 2020, or the date commitments are terminated pursuant to an event of default
|
55.0 billion yen, or the equivalent amount in U.S. dollars
|
0.0 billion yen
|
A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) adjusted for certain costs or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin
|
No later than September 18, 2020
|
.085% to .225%, depending on the Parent Company's debt ratings as of the date of determination
|
General corporate purposes, including a capital contingency plan for the operations of the Parent Company
|
Aflac Incorporated
and Aflac |
uncommitted bilateral
|
None specified
|
None specified
|
$50 million
|
$0 million
|
A rate per annum equal to, at the Parent Company's option, either (a) a eurocurrency rate determined by reference to the agent's LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the greater of (i) the prime rate as determined by the agent, and (ii) the sum of 0.50% and the federal funds rate for such day
|
Up to 3 months
|
None
|
General corporate purposes
|
Aflac
(1)
|
uncommitted revolving
|
364 days
|
November 30, 2018
|
$250 million
|
$65 million
|
USD three-month LIBOR plus 75 basis points per annum
|
3 months
|
None
|
General corporate purposes
|
Aflac Incorporated
(1)
|
uncommitted revolving
|
364 days
|
April 2, 2018
|
37.5 billion yen
|
0.0 billion yen
|
Three-month TIBOR plus 80 basis points per annum
|
3 months
|
None
|
General corporate purposes
|
(In millions)
|
Foreign
|
|
U.S.
|
|
Total
|
||||||||||||
2017:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
722
|
|
|
|
|
$
|
(91
|
)
|
|
|
|
$
|
631
|
|
|
Deferred
|
|
(24
|
)
|
|
|
|
(1,193
|
)
|
|
|
|
(1,217
|
)
|
|
|||
Total income tax expense
|
|
$
|
698
|
|
|
|
|
$
|
(1,284
|
)
|
|
|
|
$
|
(586
|
)
|
|
2016:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
650
|
|
|
|
|
$
|
234
|
|
|
|
|
$
|
884
|
|
|
Deferred
|
|
136
|
|
|
|
|
388
|
|
|
|
|
524
|
|
|
|||
Total income tax expense
|
|
$
|
786
|
|
|
|
|
$
|
622
|
|
|
|
|
$
|
1,408
|
|
|
2015:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
1,063
|
|
|
|
|
$
|
225
|
|
|
|
|
$
|
1,288
|
|
|
Deferred
|
|
42
|
|
|
|
|
(1
|
)
|
|
|
|
41
|
|
|
|||
Total income tax expense
|
|
$
|
1,105
|
|
|
|
|
$
|
224
|
|
|
|
|
$
|
1,329
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Income taxes based on U.S. statutory rates
|
|
$
|
1,406
|
|
|
|
|
$
|
1,424
|
|
|
|
|
$
|
1,352
|
|
|
Write-down of U.S. deferred tax liabilities for tax reform change
|
|
(1,933
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Utilization of foreign tax credit
|
|
(27
|
)
|
|
|
|
(30
|
)
|
|
|
|
(27
|
)
|
|
|||
Nondeductible expenses
|
|
10
|
|
|
|
|
8
|
|
|
|
|
3
|
|
|
|||
Other, net
|
|
(42
|
)
|
|
|
|
6
|
|
|
|
|
1
|
|
|
|||
Income tax expense
|
|
$
|
(586
|
)
|
|
|
|
$
|
1,408
|
|
|
|
|
$
|
1,329
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Statements of earnings
|
|
$
|
(586
|
)
|
|
|
|
$
|
1,408
|
|
|
|
|
$
|
1,329
|
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses) during period
|
|
52
|
|
|
|
|
70
|
|
|
|
|
16
|
|
|
|||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on investment
securities during period |
|
575
|
|
|
|
|
962
|
|
|
|
|
(931
|
)
|
|
|||
Reclassification adjustment for realized (gains) losses
on investment securities included in net earnings |
|
1
|
|
|
|
|
18
|
|
|
|
|
21
|
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|||
Pension liability adjustment during period
|
|
3
|
|
|
|
|
(16
|
)
|
|
|
|
(7
|
)
|
|
|||
Total income tax expense (benefit) related to items of
other comprehensive income (loss) |
|
631
|
|
|
|
|
1,035
|
|
|
|
|
(901
|
)
|
|
|||
Additional paid-in capital (exercise of stock options)
|
|
0
|
|
|
|
|
(10
|
)
|
|
|
|
4
|
|
|
|||
Total income taxes
|
|
$
|
45
|
|
|
|
|
$
|
2,433
|
|
|
|
|
$
|
432
|
|
|
(In millions)
|
2017
|
|
2016
|
||||||||
Deferred income tax liabilities:
|
|
|
|
|
|
|
|
||||
Deferred policy acquisition costs
|
|
$
|
3,285
|
|
|
|
|
$
|
4,065
|
|
|
Unrealized gains and other basis differences on investment securities
|
|
2,882
|
|
|
|
|
3,056
|
|
|
||
Premiums receivable
|
|
104
|
|
|
|
|
130
|
|
|
||
Policy benefit reserves
|
|
3,557
|
|
|
|
|
3,303
|
|
|
||
Total deferred income tax liabilities
|
|
9,828
|
|
|
|
|
10,554
|
|
|
||
Deferred income tax assets:
|
|
|
|
|
|
|
|
||||
Unfunded retirement benefits
|
|
8
|
|
|
|
|
13
|
|
|
||
Other accrued expenses
|
|
141
|
|
|
|
|
39
|
|
|
||
Policy and contract claims
|
|
870
|
|
|
|
|
792
|
|
|
||
Foreign currency loss on Japan branch
|
|
67
|
|
|
|
|
185
|
|
|
||
Deferred compensation
|
|
155
|
|
|
|
|
243
|
|
|
||
Capital loss carryforwards
|
|
0
|
|
|
|
|
3
|
|
|
||
Depreciation
|
|
114
|
|
|
|
|
88
|
|
|
||
Anticipatory foreign tax credit
|
|
4,504
|
|
|
|
|
4,028
|
|
|
||
Other
|
|
57
|
|
|
|
|
107
|
|
|
||
Total deferred income tax assets before valuation allowance
|
|
5,916
|
|
|
|
|
5,498
|
|
|
||
Valuation allowance
|
|
(657
|
)
|
|
|
|
0
|
|
|
||
Total deferred income tax assets after valuation allowance
|
|
5,259
|
|
|
|
|
5,498
|
|
|
||
Net deferred income tax liability
|
|
4,569
|
|
|
|
|
5,056
|
|
|
||
Current income tax liability
|
|
176
|
|
|
|
|
331
|
|
|
||
Total income tax liability
|
|
$
|
4,745
|
|
|
|
|
$
|
5,387
|
|
|
(In millions)
|
|
2017
|
|
|
2016
|
|
||||
Balance, beginning of year
|
|
$
|
294
|
|
|
|
$
|
264
|
|
|
Additions for tax positions of prior years
|
|
0
|
|
|
|
33
|
|
|
||
Reductions for tax positions of prior years
|
|
(280
|
)
|
|
|
(3
|
)
|
|
||
Balance, end of year
|
|
$
|
14
|
|
|
|
$
|
294
|
|
|
11.
|
SHAREHOLDERS' EQUITY
|
(In thousands of shares)
|
2017
|
|
2016
|
|
2015
|
Common stock - issued:
|
|
|
|
|
|
Balance, beginning of period
|
671,249
|
|
669,723
|
|
668,132
|
Exercise of stock options and issuance of restricted shares
|
1,632
|
|
1,526
|
|
1,591
|
Balance, end of period
|
672,881
|
|
671,249
|
|
669,723
|
Treasury stock:
|
|
|
|
|
|
Balance, beginning of period
|
265,439
|
|
245,343
|
|
225,687
|
Purchases of treasury stock:
|
|
|
|
|
|
Open market
|
17,755
|
|
21,618
|
|
21,179
|
Other
|
509
|
|
330
|
|
247
|
Dispositions of treasury stock:
|
|
|
|
|
|
Shares issued to AFL Stock Plan
|
(891)
|
|
(1,064)
|
|
(1,209)
|
Exercise of stock options
|
(367)
|
|
(683)
|
|
(465)
|
Other
|
(19)
|
|
(105)
|
|
(96)
|
Balance, end of period
|
282,426
|
|
265,439
|
|
245,343
|
Shares outstanding, end of period
|
390,455
|
|
405,810
|
|
424,380
|
(In thousands)
|
2017
|
|
2016
|
|
2015
|
|||||||||
Anti-dilutive share-based awards
|
|
255
|
|
|
|
|
911
|
|
|
|
|
1,862
|
|
|
(In thousands of shares)
|
2017
|
|
2016
|
|
2015
|
|||
Weighted-average outstanding shares used for calculating basic EPS
|
396,021
|
|
|
411,471
|
|
|
430,654
|
|
Dilutive effect of share-based awards
|
2,909
|
|
|
2,450
|
|
|
2,518
|
|
Weighted-average outstanding shares used for calculating diluted EPS
|
398,930
|
|
|
413,921
|
|
|
433,172
|
|
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 |
|
233
|
|
|
|
|
1,158
|
|
|
|
|
1
|
|
|
|
|
(6
|
)
|
|
|
|
1,386
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
11
|
|
|
|
|
12
|
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
233
|
|
|
|
|
1,159
|
|
|
|
|
1
|
|
|
|
|
5
|
|
|
|
|
1,398
|
|
|
|||||
Balance, end of period
|
|
$
|
(1,750
|
)
|
|
|
|
$
|
5,964
|
|
|
|
|
$
|
(23
|
)
|
|
|
|
$
|
(163
|
)
|
|
|
|
$
|
4,028
|
|
|
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 |
|
213
|
|
|
|
|
1,854
|
|
|
|
|
2
|
|
|
|
|
(32
|
)
|
|
|
|
2,037
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
(35
|
)
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
(32
|
)
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
213
|
|
|
|
|
1,819
|
|
|
|
|
2
|
|
|
|
|
(29
|
)
|
|
|
|
2,005
|
|
|
|||||
Balance, end of period
|
|
$
|
(1,983
|
)
|
|
|
|
$
|
4,805
|
|
|
|
|
$
|
(24
|
)
|
|
|
|
$
|
(168
|
)
|
|
|
|
$
|
2,630
|
|
|
2015
|
|||||||||||||||||||||||||||||
(In millions)
|
Unrealized Foreign
Currency Translation Gains (Losses) |
|
Unrealized
Gains (Losses) on Investment Securities |
|
Unrealized
Gains (Losses) on Derivatives |
|
Pension Liability Adjustment
|
|
Total
|
||||||||||||||||||||
Balance, beginning of period
|
|
$
|
(2,541
|
)
|
|
|
|
$
|
4,672
|
|
|
|
|
$
|
(26
|
)
|
|
|
|
$
|
(126
|
)
|
|
|
|
$
|
1,979
|
|
|
Other comprehensive
income (loss) before reclassification |
|
345
|
|
|
|
|
(1,646
|
)
|
|
|
|
0
|
|
|
|
|
(13
|
)
|
|
|
|
(1,314
|
)
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
(40
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(40
|
)
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
345
|
|
|
|
|
(1,686
|
)
|
|
|
|
0
|
|
|
|
|
(13
|
)
|
|
|
|
(1,354
|
)
|
|
|||||
Balance, end of period
|
|
$
|
(2,196
|
)
|
|
|
|
$
|
2,986
|
|
|
|
|
$
|
(26
|
)
|
|
|
|
$
|
(139
|
)
|
|
|
|
$
|
625
|
|
|
(In millions)
|
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 |
|
$
|
136
|
|
|
Sales and redemptions
|
|
|
(83
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
53
|
|
|
Total before tax
|
|
|
|
(18
|
)
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
35
|
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(15
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
11
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
1
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
(3
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
32
|
|
|
Net of tax
|
(In millions)
|
2015
|
|
||||
Details about Accumulated Other Comprehensive Income Components
|
Amount Reclassified from Accumulated Other Comprehensive Income
|
Affected Line Item in the
Statements of Earnings |
||||
Unrealized gains (losses) on available-for-sale
securities |
|
$
|
214
|
|
|
Sales and redemptions
|
|
|
(153
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
|
61
|
|
|
Total before tax
|
|
|
|
(21
|
)
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
40
|
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(17
|
)
|
|
Acquisition and operating expenses
(2)
|
Prior service (cost) credit
|
|
17
|
|
|
Acquisition and operating expenses
(2)
|
|
|
|
0
|
|
|
Tax (expense) or benefit
(1)
|
|
|
|
$
|
0
|
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
40
|
|
|
Net of tax
|
(In millions, except for per-share amounts)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Impact on earnings from continuing operations
|
|
$
|
51
|
|
|
|
|
$
|
68
|
|
|
|
|
$
|
39
|
|
|
Impact on earnings before income taxes
|
|
51
|
|
|
|
|
68
|
|
|
|
|
39
|
|
|
|||
Impact on net earnings
|
|
35
|
|
|
|
|
46
|
|
|
|
|
27
|
|
|
|||
Impact on net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
.09
|
|
|
|
|
$
|
.11
|
|
|
|
|
$
|
.06
|
|
|
Diluted
|
|
.09
|
|
|
|
|
.11
|
|
|
|
|
.06
|
|
|
(In thousands of shares)
|
Stock
Option Shares |
|
Weighted-Average
Exercise Price Per Share |
|||||||
Outstanding at December 31, 2014
|
|
9,307
|
|
|
|
|
$
|
48.84
|
|
|
Granted in 2015
|
|
855
|
|
|
|
|
61.47
|
|
|
|
Canceled in 2015
|
|
(231
|
)
|
|
|
|
55.70
|
|
|
|
Exercised in 2015
|
|
(2,013
|
)
|
|
|
|
45.15
|
|
|
|
Outstanding at December 31, 2015
|
|
7,918
|
|
|
|
|
50.94
|
|
|
|
Granted in 2016
|
|
664
|
|
|
|
|
61.39
|
|
|
|
Canceled in 2016
|
|
(181
|
)
|
|
|
|
55.63
|
|
|
|
Exercised in 2016
|
|
(2,061
|
)
|
|
|
|
48.91
|
|
|
|
Outstanding at December 31, 2016
|
|
6,340
|
|
|
|
|
52.56
|
|
|
|
Granted in 2017
|
|
313
|
|
|
|
|
71.60
|
|
|
|
Canceled in 2017
|
|
(118
|
)
|
|
|
|
49.90
|
|
|
|
Exercised in 2017
|
|
(2,883
|
)
|
|
|
|
60.22
|
|
|
|
Outstanding at December 31, 2017
|
|
3,652
|
|
|
|
|
$
|
56.05
|
|
|
(In thousands of shares)
|
2017
|
|
2016
|
|
2015
|
|||||||||
Shares exercisable, end of year
|
|
2,104
|
|
|
|
|
4,493
|
|
|
|
|
6,085
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Expected term (years)
|
|
5.9
|
|
|
|
6.4
|
|
|
|
6.3
|
|
Expected volatility
|
|
26.0
|
%
|
|
|
27.0
|
%
|
|
|
20.0
|
%
|
Annual forfeiture rate
|
|
3.4
|
|
|
|
3.2
|
|
|
|
2.8
|
|
Risk-free interest rate
|
|
2.5
|
|
|
|
2.2
|
|
|
|
2.0
|
|
Dividend yield
|
|
2.5
|
|
|
|
2.9
|
|
|
|
2.7
|
|
(In thousands of shares)
|
|
|
Options Outstanding
|
|
Options Exercisable
|
|||||||||||||||||||||||||||||
|
Range of
Exercise Prices Per Share |
|
|
Stock Option
Shares Outstanding |
|
Wgtd.-Avg.
Remaining Contractual Life (Yrs.) |
|
Wgtd.-Avg.
Exercise Price Per Share |
|
Stock Option
Shares Exercisable |
|
Wgtd.-Avg.
Exercise Price Per Share |
||||||||||||||||||||||
|
$
|
22.13
|
|
-
|
$
|
48.56
|
|
|
|
|
823
|
|
|
|
|
2.5
|
|
|
|
$
|
38.56
|
|
|
|
|
823
|
|
|
|
|
$
|
38.56
|
|
|
|
49.50
|
|
-
|
57.93
|
|
|
|
|
1,034
|
|
|
|
|
5.5
|
|
|
|
55.64
|
|
|
|
|
608
|
|
|
|
|
54.04
|
|
|
||||
|
58.08
|
|
-
|
61.81
|
|
|
|
|
748
|
|
|
|
|
5.5
|
|
|
|
61.29
|
|
|
|
|
234
|
|
|
|
|
61.22
|
|
|
||||
|
61.95
|
|
-
|
71.04
|
|
|
|
|
944
|
|
|
|
|
7.4
|
|
|
|
65.69
|
|
|
|
|
439
|
|
|
|
|
63.06
|
|
|
||||
|
71.84
|
|
-
|
87.71
|
|
|
|
|
103
|
|
|
|
|
9.0
|
|
|
|
73.53
|
|
|
|
|
0
|
|
|
|
|
0.00
|
|
|
||||
|
$
|
22.13
|
|
-
|
$
|
87.71
|
|
|
|
|
3,652
|
|
|
|
|
5.4
|
|
|
|
$
|
56.05
|
|
|
|
|
2,104
|
|
|
|
|
$
|
50.67
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Total intrinsic value of options exercised
|
|
$
|
87
|
|
|
|
|
$
|
41
|
|
|
|
|
$
|
36
|
|
|
Cash received from options exercised
|
|
58
|
|
|
|
|
68
|
|
|
|
|
68
|
|
|
|||
Tax benefit realized as a result of options exercised and
restricted stock releases |
|
74
|
|
|
|
|
45
|
|
|
|
|
25
|
|
|
(In millions)
|
2017
|
|
|||
Expected volatility (based on Aflac Inc. and peer group historical daily stock price)
|
|
16.59
|
%
|
|
|
Expected life from grant date (years)
|
|
2.9
|
|
|
|
Risk-free interest rate (based on U.S. Treasury yields at the date of grant)
|
|
1.56
|
%
|
|
|
(In thousands of shares)
|
Shares
|
|
Weighted-Average
Grant-Date Fair Value Per Share |
|||||||
Restricted stock at December 31, 2014
|
|
1,880
|
|
|
|
|
$
|
54.33
|
|
|
Granted in 2015
|
|
638
|
|
|
|
|
61.51
|
|
|
|
Canceled in 2015
|
|
(145
|
)
|
|
|
|
57.52
|
|
|
|
Vested in 2015
|
|
(558
|
)
|
|
|
|
48.41
|
|
|
|
Restricted stock at December 31, 2015
|
|
1,815
|
|
|
|
|
58.42
|
|
|
|
Granted in 2016
|
|
878
|
|
|
|
|
61.68
|
|
|
|
Canceled in 2016
|
|
(76
|
)
|
|
|
|
60.65
|
|
|
|
Vested in 2016
|
|
(749
|
)
|
|
|
|
53.68
|
|
|
|
Restricted stock at December 31, 2016
|
|
1,868
|
|
|
|
|
61.76
|
|
|
|
Granted in 2017
|
|
559
|
|
|
|
|
72.95
|
|
|
|
Canceled in 2017
|
|
(101
|
)
|
|
|
|
64.45
|
|
|
|
Vested in 2017
|
|
(509
|
)
|
|
|
|
62.17
|
|
|
|
Restricted stock at December 31, 2017
|
|
1,817
|
|
|
|
|
$
|
64.80
|
|
|
•
|
Aflac has reported as admitted assets the refundable lease deposits on the leases of commercial office space which house Aflac Japan's sales operations. These lease deposits are unique and part of the ordinary course of doing business in the country of Japan; these assets would be non-admitted under SAP.
|
•
|
Aflac entered into a reinsurance agreement effective March 31, 2015 with a then unauthorized reinsurer. The effective date of this agreement predated the effective date of Nebraska's Amended Credit for Reinsurance statute (44-416) allowing certified reinsurers and also predated the subsequent approval of the agreement's assuming reinsurer as a Certified Reinsurer, which occurred on August 30, 2015 and December 24, 2015, respectively. Aflac has obtained a permitted practice to recognize this treaty and counterparty as a Certified Reinsurer for the purpose of determining the collateral required to receive reinsurance reserve credit.
|
(In millions)
|
2017
|
|
2016
|
||||||||
Capital and surplus, Nebraska state basis
|
|
$
|
11,001
|
|
|
|
|
$
|
11,221
|
|
|
State Permitted Practice:
|
|
|
|
|
|
|
|
||||
Refundable lease deposits – Japan
|
|
(43
|
)
|
|
|
|
(40
|
)
|
|
||
Reinsurance - Japan
|
|
(818
|
)
|
|
|
|
(764
|
)
|
|
||
Capital and surplus, NAIC basis
|
|
$
|
10,140
|
|
|
|
|
$
|
10,417
|
|
|
|
In Dollars
|
|
In Yen
|
|||||||||||||||||||||||||||||
(In millions of dollars and billions of yen)
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||
Profit repatriation
|
|
$
|
1,150
|
|
|
|
|
$
|
1,286
|
|
|
|
|
$
|
2,139
|
|
|
|
|
129.3
|
|
|
|
|
138.5
|
|
|
|
|
259.0
|
|
|
|
|
Pension Benefits
|
|
Other
|
|||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
|||||||||||||||||||||||||||
(In millions)
|
|
2017
|
2016
|
|
2017
|
2016
|
|
2017
|
2016
|
||||||||||||||||||||||||
Projected benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation, beginning of year
|
|
|
$
|
329
|
|
|
|
$
|
276
|
|
|
|
|
$
|
798
|
|
|
|
$
|
735
|
|
|
|
|
$
|
37
|
|
|
|
$
|
40
|
|
|
Service cost
|
|
|
20
|
|
|
|
16
|
|
|
|
|
24
|
|
|
|
23
|
|
|
|
|
0
|
|
|
|
1
|
|
|
||||||
Interest cost
|
|
|
6
|
|
|
|
9
|
|
|
|
|
40
|
|
|
|
29
|
|
|
|
|
1
|
|
|
|
2
|
|
|
||||||
Actuarial (gain) loss
|
|
|
(10
|
)
|
|
|
29
|
|
|
|
|
65
|
|
|
|
29
|
|
|
|
|
0
|
|
|
|
(4
|
)
|
|
||||||
Benefits and expenses paid
|
|
|
(14
|
)
|
|
|
(8
|
)
|
|
|
|
(19
|
)
|
|
|
(18
|
)
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
||||||
Effect of foreign exchange
rate changes |
|
|
10
|
|
|
|
7
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Benefit obligation, end of year
|
|
|
341
|
|
|
|
329
|
|
|
|
|
908
|
|
|
|
798
|
|
|
|
|
36
|
|
|
|
37
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets,
beginning of year |
|
|
229
|
|
|
|
198
|
|
|
|
|
359
|
|
|
|
336
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Actual return on plan assets
|
|
|
16
|
|
|
|
9
|
|
|
|
|
61
|
|
|
|
24
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Employer contributions
|
|
|
32
|
|
|
|
25
|
|
|
|
|
47
|
|
|
|
17
|
|
|
|
|
2
|
|
|
|
2
|
|
|
||||||
Benefits and expenses paid
|
|
|
(14
|
)
|
|
|
(8
|
)
|
|
|
|
(19
|
)
|
|
|
(18
|
)
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
||||||
Effect of foreign exchange
rate changes |
|
|
7
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Fair value of plan assets, end of year
|
|
|
270
|
|
|
|
229
|
|
|
|
|
448
|
|
|
|
359
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Funded status of the plans
(1)
|
|
|
$
|
(71
|
)
|
|
|
$
|
(100
|
)
|
|
|
|
$
|
(460
|
)
|
|
|
$
|
(439
|
)
|
|
|
|
$
|
(36
|
)
|
|
|
$
|
(37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in accumulated other
comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial (gain) loss
|
|
|
$
|
44
|
|
|
|
$
|
67
|
|
|
|
|
$
|
203
|
|
|
|
$
|
189
|
|
|
|
|
$
|
6
|
|
|
|
$
|
7
|
|
|
Prior service (credit) cost
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Total included in accumulated
other comprehensive income |
|
|
$
|
42
|
|
|
|
$
|
65
|
|
|
|
|
$
|
199
|
|
|
|
$
|
185
|
|
|
|
|
$
|
6
|
|
|
|
$
|
7
|
|
|
Accumulated benefit obligation
|
|
|
$
|
307
|
|
|
|
$
|
288
|
|
|
|
|
$
|
756
|
|
|
|
$
|
670
|
|
|
|
|
N/A
|
|
(2)
|
|
N/A
|
|
(2)
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||
|
Japan
|
|
|
U.S.
|
|
|
Postretirement Benefits
|
||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
|
2017
|
|
2016
|
|
2015
|
|
|
2017
|
|
2016
|
|
2015
|
|
|||||||||
Weighted-average actuarial assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Discount rate - net periodic benefit cost
|
1.25
|
%
|
|
1.75
|
%
|
|
1.75
|
%
|
|
|
4.25
|
%
|
|
4.50
|
%
|
|
4.50
|
%
|
|
|
4.25
|
%
|
|
4.50
|
%
|
|
4.50
|
%
|
|
Discount rate - benefit obligations
|
1.25
|
|
|
1.25
|
|
|
1.75
|
|
|
|
3.75
|
|
|
4.25
|
|
|
4.50
|
|
|
|
3.75
|
|
|
4.25
|
|
|
4.50
|
|
|
Expected long-term return on plan assets
|
2.00
|
|
|
2.00
|
|
|
2.00
|
|
|
|
6.75
|
|
|
7.00
|
|
|
7.25
|
|
|
|
N/A
|
(1)
|
N/A
|
(1)
|
N/A
|
(1)
|
|||
Rate of compensation increase
|
N/A
|
(1)
|
N/A
|
(1)
|
N/A
|
(1)
|
|
4.00
|
|
|
4.00
|
|
|
4.00
|
|
|
|
N/A
|
(1)
|
N/A
|
(1)
|
N/A
|
(1)
|
||||||
Health care cost trend rates
|
N/A
|
(1)
|
N/A
|
(1)
|
N/A
|
(1)
|
|
N/A
|
(1)
|
N/A
|
(1)
|
N/A
|
(1)
|
|
5.40
|
|
(2)
|
5.20
|
|
(2)
|
5.30
|
|
(2)
|
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
Japan
|
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||||||||||||||||||
(In millions)
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||||||||||
Service cost
|
|
|
$
|
20
|
|
|
|
|
$
|
16
|
|
|
|
|
$
|
15
|
|
|
|
|
$
|
24
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
1
|
|
|
Interest cost
|
|
|
6
|
|
|
|
|
9
|
|
|
|
|
1
|
|
|
|
|
40
|
|
|
|
|
29
|
|
|
|
|
18
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|||||||||
Expected return on plan
assets |
|
|
(5
|
)
|
|
|
|
(4
|
)
|
|
|
|
(4
|
)
|
|
|
|
(24
|
)
|
|
|
|
(23
|
)
|
|
|
|
(22
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||||||||
Amortization of net actuarial
loss |
|
|
2
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
14
|
|
|
|
|
13
|
|
|
|
|
14
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|||||||||
Amortization of prior service
cost (credit) |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(11
|
)
|
|
|
|
(17
|
)
|
|
|||||||||
Net periodic (benefit) cost
|
|
|
$
|
23
|
|
|
|
|
$
|
22
|
|
|
|
|
$
|
13
|
|
|
|
|
$
|
54
|
|
|
|
|
$
|
42
|
|
|
|
|
$
|
33
|
|
|
|
|
$
|
2
|
|
|
|
|
$
|
(7
|
)
|
|
|
|
$
|
(12
|
)
|
|
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||||||||||||||||||||
(In millions)
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain)
|
|
|
$
|
(21
|
)
|
|
|
|
$
|
26
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
28
|
|
|
|
|
$
|
27
|
|
|
|
|
$
|
22
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
(4
|
)
|
|
|
|
$
|
(5
|
)
|
|
Amortization of net actuarial loss
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(14
|
)
|
|
|
|
(13
|
)
|
|
|
|
(14
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(2
|
)
|
|
|||||||||
Amortization of prior
service cost |
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
11
|
|
|
|
|
17
|
|
|
|||||||||
Total
|
|
|
$
|
(23
|
)
|
|
|
|
$
|
25
|
|
|
|
|
$
|
2
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
(1
|
)
|
|
|
|
$
|
6
|
|
|
|
|
$
|
10
|
|
|
|
|
Pension Benefits
|
|
Other
|
|||||||||||||
(In millions)
|
|
Japan
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||
2018
|
|
|
$
|
10
|
|
|
|
$
|
23
|
|
|
|
|
$
|
2
|
|
|
2019
|
|
|
11
|
|
|
|
24
|
|
|
|
|
3
|
|
|
|||
2020
|
|
|
12
|
|
|
|
25
|
|
|
|
|
3
|
|
|
|||
2021
|
|
|
12
|
|
|
|
26
|
|
|
|
|
3
|
|
|
|||
2022
|
|
|
18
|
|
|
|
35
|
|
|
|
|
3
|
|
|
|||
2023-2027
|
|
|
82
|
|
|
|
184
|
|
|
|
|
17
|
|
|
|
|
Japan Pension
|
|
U.S. Pension
|
||||||
Domestic equities
|
|
|
11
|
%
|
|
|
|
40
|
%
|
|
International equities
|
|
|
15
|
|
|
|
|
20
|
|
|
Fixed income securities
|
|
|
59
|
|
|
|
|
40
|
|
|
Other
|
|
|
15
|
|
|
|
|
0
|
|
|
Total
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
(In millions)
|
2017
|
|
2016
|
||||||||
Japan pension plan assets:
|
|
|
|
|
|
|
|
||||
Equities:
|
|
|
|
|
|
|
|
||||
Japanese equity securities
|
|
$
|
37
|
|
|
|
|
$
|
28
|
|
|
International equity securities
|
|
50
|
|
|
|
|
40
|
|
|
||
Fixed income securities:
|
|
|
|
|
|
|
|
||||
Japanese bonds
|
|
91
|
|
|
|
|
79
|
|
|
||
International bonds
|
|
62
|
|
|
|
|
55
|
|
|
||
Insurance contracts
|
|
30
|
|
|
|
|
27
|
|
|
||
Cash and cash equivalents
|
|
0
|
|
|
|
|
0
|
|
|
||
Total
|
|
$
|
270
|
|
|
|
|
$
|
229
|
|
|
(In millions)
|
2017
|
|
2016
|
||||||||
U.S. pension plan assets:
|
|
|
|
|
|
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
||||
Large cap equity funds
|
|
$
|
124
|
|
|
|
|
$
|
104
|
|
|
Mid cap equity funds
|
|
22
|
|
|
|
|
19
|
|
|
||
Real estate equity funds
|
|
13
|
|
|
|
|
10
|
|
|
||
International equity funds
|
|
108
|
|
|
|
|
85
|
|
|
||
Fixed income bond funds
|
|
175
|
|
|
|
|
136
|
|
|
||
Aflac Incorporated common stock
|
|
5
|
|
|
|
|
4
|
|
|
||
Cash and cash equivalents
|
|
1
|
|
|
|
|
1
|
|
|
||
Total
|
|
$
|
448
|
|
|
|
|
$
|
359
|
|
|
(In millions)
|
|
||
2018
|
$
|
61
|
|
2019
|
33
|
|
|
2020
|
24
|
|
|
2021
|
21
|
|
|
2022
|
16
|
|
|
Thereafter
|
30
|
|
|
Total future minimum lease payments
|
$
|
185
|
|
(In millions, except for per-share amounts)
|
March 31,
2017 |
|
June 30,
2017 |
|
September 30,
2017 |
|
December 31,
2017 |
||||||||||||||||
Net premium income
|
|
$
|
4,638
|
|
|
|
|
$
|
4,665
|
|
|
|
|
$
|
4,648
|
|
|
|
|
$
|
4,580
|
|
|
Net investment income
|
|
794
|
|
|
|
|
802
|
|
|
|
|
811
|
|
|
|
|
812
|
|
|
||||
Realized investment gains (losses)
|
|
(140
|
)
|
|
|
|
(56
|
)
|
|
|
|
30
|
|
|
|
|
15
|
|
|
||||
Other income (loss)
|
|
17
|
|
|
|
|
17
|
|
|
|
|
17
|
|
|
|
|
17
|
|
|
||||
Total revenues
|
|
5,309
|
|
|
|
|
5,428
|
|
|
|
|
5,506
|
|
|
|
|
5,424
|
|
|
||||
Total benefits and expenses
|
|
4,411
|
|
|
|
|
4,383
|
|
|
|
|
4,431
|
|
|
|
|
4,425
|
|
|
||||
Earnings before income taxes
|
|
898
|
|
|
|
|
1,045
|
|
|
|
|
1,075
|
|
|
|
|
999
|
|
|
||||
Total income tax
|
|
306
|
|
|
|
|
332
|
|
|
|
|
359
|
|
|
|
|
(1,585
|
)
|
|
||||
Net earnings
|
|
$
|
592
|
|
|
|
|
$
|
713
|
|
|
|
|
$
|
716
|
|
|
|
|
$
|
2,584
|
|
|
Net earnings per basic share
|
|
$
|
1.48
|
|
|
|
|
$
|
1.80
|
|
|
|
|
$
|
1.81
|
|
|
|
|
$
|
6.59
|
|
|
Net earnings per diluted share
|
|
1.47
|
|
|
|
|
1.79
|
|
|
|
|
1.80
|
|
|
|
|
6.54
|
|
|
||||
Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding.
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(In millions, except for per-share amounts)
|
March 31,
2016 |
|
June 30,
2016 |
|
September 30,
2016 |
|
December 31,
2016 |
||||||||||||||||
Net premium income
|
|
$
|
4,602
|
|
|
|
|
$
|
4,823
|
|
|
|
|
$
|
5,022
|
|
|
|
|
$
|
4,778
|
|
|
Net investment income
|
|
801
|
|
|
|
|
822
|
|
|
|
|
842
|
|
|
|
|
813
|
|
|
||||
Realized investment gains (losses)
|
|
30
|
|
|
|
|
(223
|
)
|
|
|
|
(164
|
)
|
|
|
|
344
|
|
|
||||
Other income (loss)
|
|
18
|
|
|
|
|
15
|
|
|
|
|
16
|
|
|
|
|
20
|
|
|
||||
Total revenues
|
|
5,451
|
|
|
|
|
5,437
|
|
|
|
|
5,716
|
|
|
|
|
5,955
|
|
|
||||
Total benefits and expenses
|
|
4,334
|
|
|
|
|
4,603
|
|
|
|
|
4,753
|
|
|
|
|
4,802
|
|
|
||||
Earnings before income taxes
|
|
1,117
|
|
|
|
|
834
|
|
|
|
|
963
|
|
|
|
|
1,153
|
|
|
||||
Total income tax
|
|
386
|
|
|
|
|
286
|
|
|
|
|
334
|
|
|
|
|
402
|
|
|
||||
Net earnings
|
|
$
|
731
|
|
|
|
|
$
|
548
|
|
|
|
|
$
|
629
|
|
|
|
|
$
|
751
|
|
|
Net earnings per basic share
|
|
$
|
1.75
|
|
|
|
|
$
|
1.33
|
|
|
|
|
$
|
1.54
|
|
|
|
|
$
|
1.85
|
|
|
Net earnings per diluted share
|
|
1.74
|
|
|
|
|
1.32
|
|
|
|
|
1.53
|
|
|
|
|
1.84
|
|
|
|
|
Years ended December 31,
|
||||||||||
Unaudited pro forma
|
|
2017
|
|
2016
|
|
2015
|
||||||
Diluted earnings per common share attributable to Aflac Incorporated shareholders, adjusted for the two-for-one stock split
|
|
$
|
5.77
|
|
|
$
|
3.21
|
|
|
$
|
2.93
|
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
Director Compensation; Compensation Committee; Compensation Committee Report; Compensation Discussion and Analysis; 2017 Summary Compensation Table; 2017 Grants of Plan-Based Awards; 2017 Outstanding Equity Awards at Fiscal Year-End; 2017 Option Exercises and Stock Vested; Pension Benefits; Nonqualified Deferred Compensation; Potential Payments Upon Termination or Change-In-Control; and Compensation Committee Interlocks and Insider Participation
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Principal Shareholders; Election of Directors (Proposal 1); Security Ownership of Management; and Equity Compensation Plan Information
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
Related Person Transactions; and Director Independence
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
Ratification of Appointment of Independent Registered Public Accounting Firm (Proposal 3); and Audit and Risk Committee
|
•
|
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
|
•
|
have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
|
•
|
may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and
|
•
|
were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.
|
(b)
|
EXHIBIT INDEX
(1)
|
|||
|
-
|
|
Articles of Incorporation, as amended – incorporated by reference from Form 10-Q for June 30, 2008, Exhibit 3.0 (File No. 001-07434).
|
|
|
-
|
|
Bylaws of the Corporation, as amended and restated – incorporated by reference from Form 8-K dated November 10, 2015, Exhibit 3.1 ( File No. 001-07434)
|
|
|
4.0
|
-
|
|
There are no instruments with respect to long-term debt not being registered in which the total amount of securities authorized exceeds 10% of the total assets of Aflac Incorporated and its subsidiaries on a consolidated basis. We agree to furnish a copy of any long-term debt instrument to the Securities and Exchange Commission upon request.
|
|
-
|
|
Indenture, dated as of May 21, 2009, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee – incorporated by reference from Form 8-K dated May 21, 2009, Exhibit 4.1 (File No. 001-07434).
|
|
|
-
|
|
Second Supplemental Indenture, dated as of December 17, 2009, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 6.900% Senior Note due 2039) – incorporated by reference from Form 8-K dated December 14, 2009, Exhibit 4.1 (File No. 001-07434).
|
|
|
-
|
|
Third Supplemental Indenture, dated as of August 9, 2010, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 6.45% Senior Note due 2040) - incorporated by reference from Form 8-K dated August 4, 2010, Exhibit 4.1 (File No. 001-07434).
|
|
|
-
|
|
Fifth Supplemental Indenture, dated as of February 10, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 2.65% Senior Note due 2017) - incorporated by reference from Form 8-K dated February 8, 2012, Exhibit 4.1 (File No. 001-07434).
|
|
|
-
|
|
Sixth Supplemental Indenture, dated as of February 10, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 4.00% Senior Note due 2022) - incorporated by reference from Form 8-K dated February 8, 2012, Exhibit 4.2 (File No. 001-07434).
|
|
|
-
|
|
Seventh Supplemental Indenture, dated as of July 31, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 2.65% Senior Note due 2017) - incorporated by reference from Form 8-K dated July 27, 2012, Exhibit 4.1 (File No. 001-07434).
|
|
|
-
|
|
Eighth Supplemental Indenture, dated as of June 10, 2013, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 3.625% Senior Note due 2023) - incorporated by reference from Form 8-K dated June 10, 2013, Exhibit 4.1 (File No. 001-07434).
|
|
|
-
|
|
Ninth Supplemental Indenture, dated as of November 7, 2014, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 3.625% Senior Note due 2024) - incorporated by reference from Form 8-K dated November 4, 2014, Exhibit 4.1 (File No. 001-07434).
|
|
|
-
|
|
Tenth Supplemental Indenture, dated as of March 12, 2015, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 2.40% Senior Note due 2020) - incorporated by reference from Form 8-K dated March 9, 2015, Exhibit 4.1 (File No. 001-07434).
|
|
|
-
|
|
Eleventh Supplemental Indenture, dated as of March 12, 2015, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 3.25% Senior Note due 2025) - incorporated by reference from Form 8-K dated March 9, 2015, Exhibit 4.2 (File No. 001-07434).
|
|
|
-
|
|
Twelfth Supplemental Indenture, dated as of September 19, 2016, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 2.875% Senior Note due 2026) - incorporated by reference from Form 8-K dated September 19, 2016, Exhibit 4.1 (File No. 001-07434).
|
|
|
-
|
|
Thirteenth Supplemental Indenture, dated as of September 19, 2016, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 4.000% Senior Note due 2046) – incorporated by reference from Form 8-K dated September 19, 2016, Exhibit 4.2 (File No. 001-07434).
|
|
|
-
|
|
Fourteenth Supplemental Indenture, dated as of January 25, 2017, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of .932% Senior Note due 2027) – incorporated by reference from Form 8-K dated January 25, 2017, Exhibit 4.1 (File No. 001-07434).
|
|
-
|
|
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).
|
|
|
-
|
|
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).
|
|
|
-
|
|
Second Supplemental Indenture, dated as of October 23, 2017, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 2.108% Subordinated Debenture due 2047) - incorporated by reference from Form 8-K dated October 23, 2017, Exhibit 4.1 (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 – incorporated by reference from Form 10-Q for June 30, 2017, Exhibit 10.33 (File No. 001-07434).
|
|
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 – incorporated by reference from Form 10-Q for June 30, 2017, Exhibit 10.34 (File No. 001-07434).
|
|
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, dated June 6, 2017 - incorporated by reference from Form 10-Q dated August 3, 2017, Exhibit 10.40 (File No. 001-07434).
|
|
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
*
|
-
|
|
Amendment to Aflac Employment Agreement with Eric M. Kirsch, dated November 30, 2017.
|
|
10.43
*
|
-
|
|
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).
|
|
-
|
|
Statement regarding the computation of per-share earnings for the Registrant.
|
|
|
-
|
|
Statement regarding the computation of ratio of earnings to fixed charges for the Registrant.
|
|
|
-
|
|
Subsidiaries.
|
|
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-8 Registration Statement No. 333-158969 with respect to the Aflac Incorporated 401(k) Savings and Profit Sharing Plan.
|
|
|
|
-
|
|
Consent of independent registered public accounting firm KPMG LLP, to Form S-8 Registration Statement No. 333-27883 with respect to the Aflac Incorporated 1997 Stock Option Plan.
|
|
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-8 Registration Statement Nos. 333-135327, 333-161269, and 333-202781 with respect to the Aflac Incorporated Executive Deferred Compensation Plan.
|
|
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-8 Registration Statement No. 333-200570 with respect to the Aflac Incorporated Market Director Deferred Compensation Plan.
|
|
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-8 Registration Statement No. 333-115105 and 333-219888 with respect to the Aflac Incorporated Long-Term Incentive Plan.
|
|
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-3 Registration Statement No. 333-219784 with respect to the AFL Stock Plan.
|
|
|
-
|
|
Consent of independent registered public accounting firm, KPMG LLP, to Form S-3 Registration Statement No. 333-203839 with respect to the Aflac Incorporated shelf registration statement.
|
|
-
|
|
Certification of CEO dated February 22, 2018, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
|
|
|
-
|
|
Certification of CFO dated February 22, 2018, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
|
|
|
-
|
|
Certification of CEO and CFO dated February 22, 2018, 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.
(2)
|
|
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)
|
Copies of any exhibit are available upon request by calling our Investor Relations Department at 800.235.2667 - option 3
|
|||
(2)
|
Includes the following materials contained in this Annual Report on Form 10-K for the year ended December 31, 2017, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Earnings, (ii) Consolidated Statements of Comprehensive Income (Loss), (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Shareholders' Equity, (v) Consolidated Statements of Cash Flows, (vi) Notes to Consolidated Financial Statements, (vii) Financial Statement Schedules.
|
|||
*
|
Management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 15(b) of this report.
|
(c)
|
FINANCIAL STATEMENT SCHEDULES
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Management and service fees from subsidiaries
(1)
|
|
$
|
297
|
|
|
|
|
$
|
265
|
|
|
|
|
$
|
260
|
|
|
Net investment income
|
|
30
|
|
|
|
|
18
|
|
|
|
|
22
|
|
|
|||
Interest from subsidiaries
(1)
|
|
5
|
|
|
|
|
5
|
|
|
|
|
6
|
|
|
|||
Realized investment gains (losses)
|
|
67
|
|
|
|
|
84
|
|
|
|
|
86
|
|
|
|||
Change in fair value of the cross-currency interest rate swaps
|
|
(68
|
)
|
|
|
|
(159
|
)
|
|
|
|
(53
|
)
|
|
|||
Total revenues
|
|
331
|
|
|
|
|
213
|
|
|
|
|
321
|
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense
|
|
197
|
|
|
|
|
213
|
|
|
|
|
231
|
|
|
|||
Other operating expenses
(2)
|
|
180
|
|
|
|
|
277
|
|
|
|
|
321
|
|
|
|||
Total operating expenses
|
|
377
|
|
|
|
|
490
|
|
|
|
|
552
|
|
|
|||
Earnings before income taxes and equity in earnings of
subsidiaries |
|
(46
|
)
|
|
|
|
(277
|
)
|
|
|
|
(231
|
)
|
|
|||
Income tax expense (benefit)
|
|
(23
|
)
|
|
|
|
(102
|
)
|
|
|
|
(80
|
)
|
|
|||
Earnings before equity in earnings of subsidiaries
|
|
(23
|
)
|
|
|
|
(175
|
)
|
|
|
|
(151
|
)
|
|
|||
Equity in earnings of subsidiaries
(1)
|
|
4,627
|
|
|
|
|
2,834
|
|
|
|
|
2,684
|
|
|
|||
Net earnings
|
|
$
|
4,604
|
|
|
|
|
$
|
2,659
|
|
|
|
|
$
|
2,533
|
|
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Net earnings
|
|
$
|
4,604
|
|
|
|
|
$
|
2,659
|
|
|
|
|
$
|
2,533
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses) during period
|
|
286
|
|
|
|
|
283
|
|
|
|
|
360
|
|
|
|||
Unrealized gains (losses) on investment securities during period
|
|
1,733
|
|
|
|
|
2,799
|
|
|
|
|
(2,595
|
)
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
1
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|||
Pension liability adjustment during period
|
|
9
|
|
|
|
|
(45
|
)
|
|
|
|
(20
|
)
|
|
|||
Total other comprehensive income (loss) before
income taxes |
|
2,029
|
|
|
|
|
3,040
|
|
|
|
|
(2,255
|
)
|
|
|||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
631
|
|
|
|
|
1,035
|
|
|
|
|
(901
|
)
|
|
|||
Other comprehensive income (loss), net of income taxes
|
|
1,398
|
|
|
|
|
2,005
|
|
|
|
|
(1,354
|
)
|
|
|||
Total comprehensive income (loss)
|
|
$
|
6,002
|
|
|
|
|
$
|
4,664
|
|
|
|
|
$
|
1,179
|
|
|
|
December 31,
|
||||||||||
(In millions, except for share and per-share amounts)
|
2017
|
|
2016
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
|
|
|
||||
Fixed maturity securities available for sale, at fair value
(amortized cost $1,163 in 2017 and $483 in 2016) |
|
$
|
1,213
|
|
|
|
|
$
|
496
|
|
|
Investments in subsidiaries
(1)
|
|
26,869
|
|
|
|
|
23,353
|
|
|
||
Other investments
|
|
51
|
|
|
|
|
3
|
|
|
||
Cash and cash equivalents
|
|
1,725
|
|
|
|
|
2,037
|
|
|
||
Total investments and cash
|
|
29,858
|
|
|
|
|
25,889
|
|
|
||
Due from subsidiaries
(1)
|
|
90
|
|
|
|
|
75
|
|
|
||
Income taxes receivable
|
|
121
|
|
|
|
|
103
|
|
|
||
Other assets
|
|
366
|
|
|
|
|
497
|
|
|
||
Total assets
|
|
$
|
30,435
|
|
|
|
|
$
|
26,564
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||
Employee benefit plans
|
|
$
|
341
|
|
|
|
|
$
|
293
|
|
|
Notes payable
|
|
5,267
|
|
|
|
|
5,339
|
|
|
||
Other liabilities
|
|
229
|
|
|
|
|
450
|
|
|
||
Total liabilities
|
|
5,837
|
|
|
|
|
6,082
|
|
|
||
Shareholders' equity:
|
|
|
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in
2017 and 2016; issued 672,881 shares in 2017 and 671,249 shares in 2016 |
|
67
|
|
|
|
|
67
|
|
|
||
Additional paid-in capital
|
|
2,120
|
|
|
|
|
1,976
|
|
|
||
Retained earnings
|
|
29,895
|
|
|
|
|
25,981
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Unrealized foreign currency translation gains
|
|
(1,750
|
)
|
|
|
|
(1,983
|
)
|
|
||
Unrealized gains (losses) on investment securities
|
|
5,964
|
|
|
|
|
4,805
|
|
|
||
Unrealized gains (losses) on derivatives
|
|
(23
|
)
|
|
|
|
(24
|
)
|
|
||
Pension liability adjustment
|
|
(163
|
)
|
|
|
|
(168
|
)
|
|
||
Treasury stock, at average cost
|
|
(11,512
|
)
|
|
|
|
(10,172
|
)
|
|
||
Total shareholders' equity
|
|
24,598
|
|
|
|
|
20,482
|
|
|
||
Total liabilities and shareholders' equity
|
|
$
|
30,435
|
|
|
|
|
$
|
26,564
|
|
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings
|
|
$
|
4,604
|
|
|
|
|
$
|
2,659
|
|
|
|
|
$
|
2,533
|
|
|
Adjustments to reconcile net earnings to net cash provided from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity in earnings of subsidiaries
(1)
|
|
(4,627
|
)
|
|
|
|
(2,834
|
)
|
|
|
|
(2,684
|
)
|
|
|||
Cash dividends received from subsidiaries
|
|
2,001
|
|
|
|
|
2,020
|
|
|
|
|
2,393
|
|
|
|||
Other, net
|
|
(46
|
)
|
|
|
|
294
|
|
(2)
|
|
|
155
|
|
(2)
|
|||
Net cash provided (used) by operating activities
|
|
1,932
|
|
|
|
|
2,139
|
|
|
|
|
2,397
|
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities sold
|
|
263
|
|
|
|
|
225
|
|
|
|
|
121
|
|
|
|||
Fixed maturity securities purchased
|
|
(329
|
)
|
|
|
|
(229
|
)
|
|
|
|
(202
|
)
|
|
|||
Other investments sold (purchased)
|
|
(47
|
)
|
|
|
|
6
|
|
|
|
|
14
|
|
|
|||
Settlement of derivatives
|
|
223
|
|
|
|
|
0
|
|
|
|
|
147
|
|
|
|||
Additional capitalization of subsidiaries
(1)
|
|
(69
|
)
|
|
|
|
(36
|
)
|
|
|
|
(43
|
)
|
|
|||
Other, net
|
|
(218
|
)
|
|
|
|
(25
|
)
|
|
|
|
0
|
|
|
|||
Net cash provided (used) by investing activities
|
|
(177
|
)
|
|
|
|
(59
|
)
|
|
|
|
37
|
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of treasury stock
|
|
(1,351
|
)
|
|
|
|
(1,422
|
)
|
|
|
|
(1,315
|
)
|
|
|||
Proceeds from borrowings
|
|
1,040
|
|
|
|
|
986
|
|
|
|
|
998
|
|
|
|||
Principal payments under debt obligations
|
|
(1,161
|
)
|
|
|
|
(621
|
)
|
|
|
|
(1,272
|
)
|
|
|||
Dividends paid to shareholders
|
|
(661
|
)
|
|
|
|
(658
|
)
|
|
|
|
(656
|
)
|
|
|||
Treasury stock reissued
|
|
33
|
|
|
|
|
46
|
|
|
|
|
36
|
|
|
|||
Proceeds from exercise of stock options
|
|
38
|
|
|
|
|
36
|
|
|
|
|
47
|
|
|
|||
Net change in amount due to/from subsidiaries
(1)
|
|
(5
|
)
|
|
|
|
(6
|
)
|
|
|
|
43
|
|
|
|||
Other, net
|
|
0
|
|
|
|
|
(125
|
)
|
(2)
|
|
|
(232
|
)
|
(2)
|
|||
Net cash provided (used) by financing activities
|
|
(2,067
|
)
|
|
|
|
(1,764
|
)
|
|
|
|
(2,351
|
)
|
|
|||
Net change in cash and cash equivalents
|
|
(312
|
)
|
|
|
|
316
|
|
|
|
|
83
|
|
|
|||
Cash and cash equivalents, beginning of period
|
|
2,037
|
|
|
|
|
1,721
|
|
|
|
|
1,638
|
|
|
|||
Cash and cash equivalents, end of period
|
|
$
|
1,725
|
|
|
|
|
$
|
2,037
|
|
|
|
|
$
|
1,721
|
|
|
(In millions)
|
2017
|
|
2016
|
||||||||
2.65% senior notes paid February 2017
|
|
$
|
0
|
|
|
|
|
$
|
649
|
|
|
2.40% senior notes due March 2020
|
|
548
|
|
|
|
|
547
|
|
|
||
4.00% senior notes due February 2022
|
|
348
|
|
|
|
|
348
|
|
|
||
3.625% senior notes due June 2023
|
|
697
|
|
|
|
|
696
|
|
|
||
3.625% senior notes due November 2024
|
|
745
|
|
|
|
|
745
|
|
|
||
3.25% senior notes due March 2025
|
|
446
|
|
|
|
|
445
|
|
|
||
2.875% senior notes due October 2026
|
|
297
|
|
|
|
|
298
|
|
|
||
6.90% senior notes due December 2039
|
|
220
|
|
|
|
|
220
|
|
|
||
6.45% senior notes due August 2040
|
|
254
|
|
|
|
|
254
|
|
|
||
4.00% senior notes due October 2046
|
|
394
|
|
|
|
|
394
|
|
|
||
5.50% subordinated debentures due September 2052
|
|
0
|
|
(1)
|
|
|
486
|
|
|
||
Yen-denominated senior notes and subordinated debentures:
|
|
|
|
|
|
|
|
||||
.932% senior notes due January 2027 (principal amount 60.0 billion yen)
|
|
528
|
|
|
|
|
0
|
|
|
||
2.108% subordinated debentures due October 2047 (principal amount 60.0 billion
yen) |
|
526
|
|
|
|
|
0
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
|
|
|
||||
Variable interest rate loan due September 2021 (.32% in 2017 and .31% in 2016,
principal amount 5.0 billion yen) |
|
44
|
|
|
|
|
43
|
|
|
||
Variable interest rate loan due September 2023 (.47% in 2017 and .46% in 2016,
principal amount 25.0 billion yen) |
|
220
|
|
|
|
|
214
|
|
|
||
Total notes payable
|
|
$
|
5,267
|
|
|
|
|
$
|
5,339
|
|
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
||||||||||||
Interest paid
|
|
$
|
195
|
|
|
|
|
$
|
209
|
|
|
|
|
$
|
235
|
|
|
Noncash financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Treasury stock issued for shareholder dividend reinvestment
|
|
29
|
|
|
|
|
26
|
|
|
|
|
26
|
|
|
(In millions)
|
Deferred Policy
Acquisition Costs |
|
Future Policy
Benefits & Unpaid Policy Claims |
|
Unearned
Premiums |
|
Other
Policyholders' Funds |
||||||||||||||||
2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
|
|
$
|
6,150
|
|
|
|
|
$
|
76,353
|
|
|
|
|
$
|
5,840
|
|
|
|
|
$
|
6,939
|
|
|
Aflac U.S.
|
|
3,355
|
|
|
|
|
10,506
|
|
|
|
|
119
|
|
|
|
|
0
|
|
|
||||
All other
|
|
0
|
|
|
|
|
138
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Intercompany eliminations
|
|
0
|
|
|
|
|
(748
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total
|
|
$
|
9,505
|
|
|
|
|
$
|
86,249
|
|
|
|
|
$
|
5,959
|
|
|
|
|
$
|
6,939
|
|
|
2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
|
|
$
|
5,765
|
|
|
|
|
$
|
70,684
|
|
|
|
|
$
|
6,798
|
|
|
|
|
$
|
6,659
|
|
|
Aflac U.S.
|
|
3,228
|
|
|
|
|
10,094
|
|
|
|
|
118
|
|
|
|
|
0
|
|
|
||||
All other
|
|
0
|
|
|
|
|
91
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Intercompany eliminations
|
|
0
|
|
|
|
|
(718
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Total
|
|
$
|
8,993
|
|
|
|
|
$
|
80,151
|
|
|
|
|
$
|
6,916
|
|
|
|
|
$
|
6,659
|
|
|
(In millions)
|
Net
Premium Revenue |
|
Net
Investment Income |
|
Benefits and
Claims, net |
|
Amortization of
Deferred Policy Acquisition Costs |
|
Other
Operating Expenses |
|
Premiums
Written |
||||||||||||||||||||
2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aflac Japan
|
$
|
12,752
|
|
|
|
$
|
2,463
|
|
|
|
|
$
|
9,087
|
|
|
|
|
$
|
630
|
|
|
|
|
$
|
2,257
|
|
|
|
$
|
12,092
|
|
Aflac U.S.
|
5,563
|
|
|
|
721
|
|
|
|
|
2,885
|
|
|
|
|
502
|
|
|
|
|
1,658
|
|
|
|
5,565
|
|
||||||
All other
|
216
|
|
|
|
36
|
|
|
|
|
209
|
|
|
|
|
0
|
|
|
|
|
421
|
|
|
|
0
|
|
||||||
Total
|
$
|
18,531
|
|
|
|
$
|
3,220
|
|
|
|
|
$
|
12,181
|
|
|
|
|
$
|
1,132
|
|
|
|
|
$
|
4,336
|
|
|
|
$
|
17,657
|
|
2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aflac Japan
|
$
|
13,537
|
|
|
|
$
|
2,554
|
|
|
|
|
$
|
9,828
|
|
|
|
|
$
|
644
|
|
|
|
|
$
|
2,326
|
|
|
|
$
|
12,762
|
|
Aflac U.S.
|
5,454
|
|
|
|
703
|
|
|
|
|
2,869
|
|
|
|
|
497
|
|
|
|
|
1,593
|
|
|
|
5,452
|
|
||||||
All other
|
234
|
|
|
|
21
|
|
|
|
|
222
|
|
|
|
|
0
|
|
|
|
|
513
|
|
|
|
0
|
|
||||||
Total
|
$
|
19,225
|
|
|
|
$
|
3,278
|
|
|
|
|
$
|
12,919
|
|
|
|
|
$
|
1,141
|
|
|
|
|
$
|
4,432
|
|
|
|
$
|
18,214
|
|
2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aflac Japan
|
$
|
12,046
|
|
|
|
$
|
2,436
|
|
|
|
|
$
|
8,705
|
|
|
|
|
$
|
578
|
|
|
|
|
$
|
2,055
|
|
|
|
$
|
11,740
|
|
Aflac U.S.
|
5,347
|
|
|
|
678
|
|
|
|
|
2,873
|
|
|
|
|
488
|
|
|
|
|
1,570
|
|
|
|
5,343
|
|
||||||
All other
|
177
|
|
|
|
21
|
|
|
|
|
168
|
|
|
|
|
0
|
|
|
|
|
573
|
|
|
|
0
|
|
||||||
Total
|
$
|
17,570
|
|
|
|
$
|
3,135
|
|
|
|
|
$
|
11,746
|
|
|
|
|
$
|
1,066
|
|
|
|
|
$
|
4,198
|
|
|
|
$
|
17,083
|
|
(In millions)
|
Gross
Amount |
|
Ceded to
Other Companies |
|
Assumed
from Other companies |
|
Net
Amount |
|
Percentage
of Amount Assumed to Net |
|||||||||||||||
2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
152,502
|
|
|
|
$
|
4,121
|
|
|
|
|
$
|
0
|
|
|
|
$
|
148,381
|
|
|
|
0
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health insurance
|
$
|
14,829
|
|
|
|
$
|
554
|
|
|
|
|
$
|
222
|
|
|
|
$
|
14,497
|
|
|
|
1
|
%
|
|
Life insurance
|
4,046
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
4,034
|
|
|
|
0
|
|
|
||||
Total earned premiums
|
$
|
18,875
|
|
|
|
$
|
566
|
|
|
|
|
$
|
222
|
|
|
|
$
|
18,531
|
|
|
|
1
|
%
|
|
2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
151,093
|
|
|
|
$
|
3,741
|
|
|
|
|
$
|
0
|
|
|
|
$
|
147,352
|
|
|
|
0
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health insurance
|
$
|
14,839
|
|
|
|
$
|
595
|
|
|
|
|
$
|
241
|
|
|
|
$
|
14,485
|
|
|
|
1
|
%
|
|
Life insurance
|
4,753
|
|
|
|
13
|
|
|
|
|
0
|
|
|
|
4,740
|
|
|
|
0
|
|
|
||||
Total earned premiums
|
$
|
19,592
|
|
|
|
$
|
608
|
|
|
|
|
$
|
241
|
|
|
|
$
|
19,225
|
|
|
|
1
|
%
|
|
2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
146,610
|
|
|
|
$
|
3,547
|
|
|
|
|
$
|
0
|
|
|
|
$
|
143,063
|
|
|
|
0
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health insurance
|
$
|
13,604
|
|
|
|
$
|
509
|
|
|
|
|
$
|
186
|
|
|
|
$
|
13,281
|
|
|
|
1
|
%
|
|
Life insurance
|
4,300
|
|
|
|
11
|
|
|
|
|
0
|
|
|
|
4,289
|
|
|
|
0
|
|
|
||||
Total earned premiums
|
$
|
17,904
|
|
|
|
$
|
520
|
|
|
|
|
$
|
186
|
|
|
|
$
|
17,570
|
|
|
|
1
|
%
|
|
Aflac Incorporated
|
|
|
||
By:
|
|
/s/ Daniel P. Amos
|
|
February 22, 2018
|
|
|
(Daniel P. Amos)
|
|
|
|
|
Chief Executive Officer,
|
|
|
|
|
Chairman of the Board of Directors
|
|
|
/s/
Daniel P. Amos
|
|
|
Chief Executive Officer,
|
|
February 22, 2018
|
(Daniel P. Amos)
|
|
|
Chairman of the Board of Directors
|
|
|
|
|
|
|
|
|
/s/
Frederick J. Crawford
|
|
|
Executive Vice President,
|
|
February 22, 2018
|
(Frederick J. Crawford)
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
|
|
/s/
June Howard
|
|
|
Senior Vice President, Financial Services;
|
|
February 22, 2018
|
(June Howard)
|
|
|
Chief Accounting Officer
|
|
|
/s/
W. Paul Bowers
|
|
|
|
Director
|
|
February 22, 2018
|
(W. Paul Bowers)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Toshihiko Fukuzawa
|
|
|
|
Director
|
|
February 22, 2018
|
(Toshihiko Fukuzawa)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Elizabeth J. Hudson
|
|
|
|
Director
|
|
February 22, 2018
|
(Elizabeth J. Hudson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Douglas W. Johnson
|
|
|
|
Director
|
|
February 22, 2018
|
(Douglas W. Johnson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Robert B. Johnson
|
|
|
|
Director
|
|
February 22, 2018
|
(Robert B. Johnson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Thomas J. Kenny
|
|
|
|
Director
|
|
February 22, 2018
|
(Thomas J. Kenny)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Charles B. Knapp
|
|
|
|
Director
|
|
February 22, 2018
|
(Charles B. Knapp)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Karole F. Lloyd
|
|
|
|
Director
|
|
February 22, 2018
|
(Karole F. Lloyd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Joseph L. Moskowitz
|
|
|
|
Director
|
|
February 22, 2018
|
(Joseph L. Moskowitz)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Barbara K. Rimer
|
|
|
|
Director
|
|
February 22, 2018
|
(Barbara K. Rimer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Katherine T. Rohrer
|
|
|
|
Director
|
|
February 22, 2018
|
(Katherine T. Rohrer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
Melvin T. Stith
|
|
|
|
Director
|
|
February 22, 2018
|
(Melvin T. Stith)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
Employee’s employment shall be transferred to Parent.
|
2.
|
For all purposes under the Employment Agreement, Parent shall be substituted for Corporation, and the use of “Corporation” in all places under the Employment Agreement shall refer to Parent.
|
3.
|
Employee shall be an employee of Parent with the title and duties of Executive Vice President, Global Chief Investment Officer of Parent. For clarity and consistent with the terms of the Employment Agreement as amended hereby, Employee’s duties as an employee of Parent will include providing executive management services to Parent and its subsidiaries and affiliates.
|
4.
|
This Amendment and all changes made herein shall be effective as of the Effective Date.
|
5.
|
Except as specified herein, the Employment Agreement shall remain in full force and effect.
|
AMERICAN FAMILY LIFE ASSURANCE
|
||
COMPANY OF COLUMBUS (Aflac)
|
||
|
|
|
BY:
|
/s/ Daniel P. Amos
|
|
|
DANIEL P. AMOS
|
|
|
Chairman and Executive Officer
|
|
|
|
|
ATTEST:
|
/s/ J. Matthew Loudermilk
|
|
|
J. MATTHEW LOUDERMILK
|
|
|
Vice President, Corporate Secretary
|
|
|
|
|
|
|
|
AFLAC INCORPORATED
|
||
|
|
|
BY:
|
/s/ Daniel P. Amos
|
|
|
DANIEL P. AMOS
|
|
|
Chairman and Executive Officer
|
|
|
|
|
ATTEST:
|
/s/ J. Matthew Loudermilk
|
|
|
J. MATTHEW LOUDERMILK
|
|
|
Vice President, Corporate Secretary
|
|
|
|
|
|
/s/ Eric M. Kirsch
|
|
|
ERIC M. KIRSCH
|
|
|
Employee
|
|
|
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Numerator (In millions):
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted: net earnings applicable to common stock
|
$
|
4,604
|
|
|
$
|
2,659
|
|
|
$
|
2,533
|
|
|
$
|
2,951
|
|
|
$
|
3,158
|
|
Denominator (In thousands):
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average outstanding shares used in the
computation of earnings per share - basic |
396,021
|
|
|
411,471
|
|
|
430,654
|
|
|
451,204
|
|
|
464,502
|
|
|||||
Dilutive effect of share-based awards
|
2,909
|
|
|
2,450
|
|
|
2,518
|
|
|
2,796
|
|
|
2,906
|
|
|||||
Weighted-average outstanding shares used in the
computation of earnings per share - diluted |
398,930
|
|
|
413,921
|
|
|
433,172
|
|
|
454,000
|
|
|
467,408
|
|
|||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
11.63
|
|
|
$
|
6.46
|
|
|
$
|
5.88
|
|
|
$
|
6.54
|
|
|
$
|
6.80
|
|
Diluted
|
11.54
|
|
|
$
|
6.42
|
|
|
$
|
5.85
|
|
|
$
|
6.50
|
|
|
$
|
6.76
|
|
(In thousands)
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
(1)
|
$
|
240,061
|
|
|
$
|
268,342
|
|
|
$
|
289,070
|
|
|
$
|
317,428
|
|
|
$
|
292,637
|
|
Interest on investment-type contracts
|
76,727
|
|
|
71,538
|
|
|
56,721
|
|
|
57,363
|
|
|
54,839
|
|
|||||
Rental expense deemed interest
|
507
|
|
|
521
|
|
|
531
|
|
|
629
|
|
|
693
|
|
|||||
Total fixed charges
|
$
|
317,295
|
|
|
$
|
340,401
|
|
|
$
|
346,322
|
|
|
$
|
375,420
|
|
|
$
|
348,169
|
|
Earnings before income tax
(1)
|
$
|
4,017,854
|
|
|
$
|
4,067,522
|
|
|
$
|
3,862,313
|
|
|
$
|
4,490,604
|
|
|
$
|
4,815,619
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total fixed charges
|
317,295
|
|
|
340,401
|
|
|
346,322
|
|
|
375,420
|
|
|
348,169
|
|
|||||
Total earnings before income tax and fixed charges
|
$
|
4,335,149
|
|
|
$
|
4,407,923
|
|
|
$
|
4,208,635
|
|
|
$
|
4,866,024
|
|
|
$
|
5,163,788
|
|
Ratio of earnings to fixed charges
|
13.7x
|
|
|
12.9x
|
|
|
12.2x
|
|
|
13.0x
|
|
|
14.8x
|
|
Company
|
Jurisdiction
|
American Family Life Assurance Company of Columbus (Aflac)
|
Nebraska
|
American Family Life Assurance Company of New York
(1)
|
New York
|
Octagon Delaware Trust
(1)
|
Delaware
|
Apollo AF Loan Trust
(1)
|
Delaware
|
Global Investment Fund I
(1)
|
Delaware
|
Aflac Asset Management LLC
|
Delaware
|
Aflac Asset Management Japan Ltd.
|
Japan
|
Aflac Reinsurance Company
|
Nebraska
|
Aflac International, Inc.
|
Georgia
|
Aflac Insurance Services Co., Ltd.
(2)
|
Japan
|
Aflac Payment Services Co., Ltd.
(2)
|
Japan
|
Aflac Heartful Services Co., Ltd.
(3)
|
Japan
|
Aflac Information Technology, Inc.
|
Georgia
|
Nebraska Life Assurance Company
|
Nebraska
|
Aflac Corporate Ventures LLC
|
Delaware
|
Aflac Ventures LLC
(4)
|
Delaware
|
Empoweredbenefits, LLC
(5)
|
North Carolina
|
Aflac Benefits Advisors, Inc.
|
Georgia
|
Communicorp, Inc.
|
Georgia
|
Continental American Insurance Company
|
South Carolina
|
Continental American Group, LLC
(6)
|
Georgia
|
Aflac Holdings, LLC
|
Nebraska
|
Japan Incorporation Preparation KK
|
Japan
|
Tier One Insurance Company
|
Oklahoma
|
/s/ KPMG LLP
|
1.
|
I have reviewed this
annual
report on Form
10-K
of Aflac Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
|
|
Date:
|
February 22, 2018
|
|
/s/
Daniel P. Amos
|
|
|
|
Daniel P. Amos
|
|
|
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this
annual
report on Form
10-K
of Aflac Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
|
|
Date:
|
February 22, 2018
|
|
/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:
|
|
February 22, 2018
|
/s/
Frederick J. Crawford
|
||
Name:
|
|
Frederick J. Crawford
|
Title:
|
|
Chief Financial Officer
|
Date:
|
|
February 22, 2018
|