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☒
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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
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Columbus
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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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Trading Symbols(s)
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Name of each exchange on which registered
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Common Stock, $.10 Par Value
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AFL
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New York 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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Smaller reporting company
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☐
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Emerging growth company
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☐
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PART I
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Page
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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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Item 16.
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• expect
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• anticipate
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• believe
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• goal
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• objective
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• may
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• should
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• estimate
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• intends
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• projects
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• will
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• assumes
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• potential
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• target
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• outlook
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•
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ability to attract and retain qualified sales associates, brokers, employees, and distribution partners
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•
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events related to the ongoing Japan Post investigation and other matters
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•
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competitive environment and ability to anticipate and respond to market trends
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•
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deviations in actual experience from pricing and reserving assumptions
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•
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ability to continue to develop and implement improvements in information technology systems
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•
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defaults and credit downgrades of investments
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•
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exposure to significant interest rate risk
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•
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concentration of business in Japan
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•
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limited availability of acceptable yen-denominated investments
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•
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failure to comply with restrictions on policyholder privacy and information security
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•
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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
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•
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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
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•
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difficult conditions in global capital markets and the economy
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•
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ability to protect the Aflac brand and the Company's reputation
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•
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extensive regulation and changes in law or regulation by governmental authorities
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•
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foreign currency fluctuations in the yen/dollar exchange rate
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•
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tax rates applicable to the Company may change
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•
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decline in creditworthiness of other financial institutions
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•
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significant valuation judgments in determination of amount of impairments taken on the Company's investments
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•
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U.S. tax audit risk related to conversion of the Japan branch to a subsidiary
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•
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subsidiaries' ability to pay dividends to the Parent Company
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•
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decreases in the Company's financial strength or debt ratings
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•
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inherent limitations to risk management policies and procedures
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•
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concentration of the Company's investments in any particular single-issuer or sector
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•
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differing judgments applied to investment valuations
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•
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ability to effectively manage key executive succession
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•
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changes in accounting standards
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•
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level and outcome of litigation
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•
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allegations or determinations of worker misclassification in the United States
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THIRD SECTOR INSURANCE
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FIRST SECTOR INSURANCE
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|||||
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Life insurance products include:
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||||
▪
Cancer
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Protection type:
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Savings type:
|
|||
▪
Medical
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▪
Term Life
|
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▪
WAYS
|
|||
▪
Income Support
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▪
Whole Life
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▪
Child Endowment
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▪
GIFT
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•
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Privacy and Cybersecurity
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•
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FSA Solvency Standard
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▪
Cancer
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▪
Critical Illness
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▪
Vision
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▪
Accident
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▪
Hospital Indemnity
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▪
Life (Term and Whole)
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▪
Short-Term Disability
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▪
Dental
|
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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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deposits of securities for the benefit of policyholders
|
•
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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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Affordable Care Act (ACA)
|
•
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Dodd-Frank Act
|
•
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Privacy and Cybersecurity
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NAME
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PRINCIPAL OCCUPATION(1)
|
AGE
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Daniel P. Amos
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Chairman, Aflac Incorporated and Aflac, since 2001; Chief Executive Officer, Aflac Incorporated and Aflac, since 1990; President, Aflac, since 2017; President, Aflac Incorporated, from 2018 until 2020
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68
|
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Koji Ariyoshi
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Executive Vice President, Director of Sales and Marketing, Aflac Japan, since 2012
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66
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Steven K. Beaver
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Senior Vice President, Chief Financial Officer, Aflac U.S., since 2019; Senior Vice President, Financial Planning and Analysis, Aflac Incorporated, from 2018 until 2019; Senior Vice President, Global Strategic Projects, Corporate Financial Planning and Analysis, Aflac Incorporated, from 2017 until 2018; Vice President, Deputy Chief Accounting Officer, Tax Department, Aflac Incorporated, from 2015 until 2016; Vice President, Corporate Tax, Aflac Incorporated, from 2012 until 2014
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55
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Max K. Broden
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Executive Vice President, Chief Financial Officer, Aflac Incorporated, since 2020; Senior Vice President and Treasurer, Aflac Incorporated, from 2017 until 2020; Senior Portfolio Manager, Norges Bank, from 2007 until 2017
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41
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Frederick J. Crawford
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President and Chief Operating Officer, Aflac Incorporated, since 2020; Executive Vice President, Chief Financial Officer, Aflac Incorporated, from 2015 until 2020; Executive Vice President, Chief Financial Officer, CNO Financial Group, from 2012 until 2015
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56
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J. Todd Daniels
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Executive Vice President, Chief Financial Officer, Aflac Japan, since 2018; Executive Vice President, Global Chief Risk Officer and Chief Actuary, Aflac Incorporated, from 2016 until 2018; Senior Vice President, Global Chief Risk Officer and Chief Actuary, Aflac, from 2015 until 2016; Senior Vice President, Deputy Corporate Actuary and Global Chief Risk Officer, Aflac, from 2014 until 2015; Senior Vice President, Deputy Corporate Actuary, Aflac, from 2012 until 2014
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49
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June Howard
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Chief Accounting Officer, Aflac Incorporated and Aflac, since 2010; Senior Vice President, Financial Services, Aflac Incorporated and Aflac, since 2010; Treasurer, Aflac, from 2011 until 2015
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53
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Eric M. Kirsch
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Executive Vice President, Global Chief Investment Officer, Aflac, since 2012; President, Aflac Asset Management LLC, since 2017
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59
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Masatoshi Koide
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President and Chief Operating Officer, Aflac Japan since 2017; Deputy President, Aflac Japan from 2016 until 2017; Executive Vice President, Aflac Japan from 2015 until 2016; First Senior Vice President, Aflac Japan, from 2013 until 2015
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59
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Charles D. Lake, II
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President, Aflac International, since 2014; Chairman, Aflac Japan, since 2008
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58
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Albert A. Riggieri
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Senior Vice President, Global Chief Risk Officer and Chief Actuary, Aflac Incorporated, since 2018; Senior Vice President, Corporate Actuary, Aflac, from 2016 until 2018; Group Chief Actuary, Unum Group, until 2016
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64
|
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Audrey B. Tillman
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Executive Vice President, General Counsel, Aflac Incorporated and Aflac, since 2014; Executive Vice President, Corporate Services, Aflac Incorporated, from 2008 until 2014
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55
|
|
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Teresa L. White
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President, Aflac U.S., since 2014
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53
|
|
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Richard L. Williams Jr.
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Executive Vice President and Chief Distribution Officer, Aflac since 2017; Senior Vice President and General Manager, Stop Loss, Unum, U.S. in 2017; Senior Vice President, Growth Markets, Colonial Life and Accident Insurance Company from 2013 until 2017
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48
|
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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 RBC 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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limitations on the amount of dividends that insurance subsidiaries can pay
|
•
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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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certain required methods of accounting
|
•
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reserves for unearned premiums, losses and other purposes
|
•
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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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administrative practices requirements
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•
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imposition of fines and other sanctions
|
|
2014
|
|
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2015
|
|
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2016
|
|
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2017
|
|
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2018
|
|
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2019
|
|
Aflac Incorporated
|
100.00
|
|
|
100.52
|
|
|
119.73
|
|
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154.45
|
|
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164.04
|
|
|
194.48
|
|
S&P 500
|
100.00
|
|
|
101.38
|
|
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113.51
|
|
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138.29
|
|
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132.23
|
|
|
173.86
|
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S&P Life & Health Insurance
|
100.00
|
|
|
93.69
|
|
|
116.98
|
|
|
136.20
|
|
|
107.91
|
|
|
132.92
|
|
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
|
|
4,465,400
|
|
|
|
|
$
|
46.44
|
|
|
|
|
4,465,400
|
|
|
|
|
64,582,487
|
|
|
|
February 1 - February 28
|
|
4,170,417
|
|
|
|
|
48.65
|
|
|
|
|
3,624,583
|
|
|
|
|
60,957,904
|
|
|
|
|
March 1 - March 31
|
|
2,162,830
|
|
|
|
|
49.50
|
|
|
|
|
2,147,500
|
|
|
|
|
58,810,404
|
|
|
|
|
April 1 - April 30
|
|
2,177,000
|
|
|
|
|
49.21
|
|
|
|
|
2,177,000
|
|
|
|
|
56,633,404
|
|
|
|
|
May 1 - May 31
|
|
2,813,277
|
|
|
|
|
50.99
|
|
|
|
|
2,812,850
|
|
|
|
|
53,820,554
|
|
|
|
|
June 1 - June 30
|
|
1,964,259
|
|
|
|
|
54.44
|
|
|
|
|
1,952,000
|
|
|
|
|
51,868,554
|
|
|
|
|
July 1 - July 31
|
|
1,360,017
|
|
|
|
|
54.33
|
|
|
|
|
1,360,017
|
|
|
|
|
50,508,537
|
|
|
|
|
August 1 - August 31
|
|
2,491,225
|
|
|
|
|
51.22
|
|
|
|
|
2,483,400
|
|
|
|
|
48,025,137
|
|
|
|
|
September 1 - September 30
|
|
2,111,075
|
|
|
|
|
51.81
|
|
|
|
|
2,103,600
|
|
|
|
|
45,921,537
|
|
|
|
|
October 1 - October 31
|
|
2,476,152
|
|
|
|
|
52.43
|
|
|
|
|
2,476,100
|
|
|
|
|
43,445,437
|
|
|
|
|
November 1 - November 30
|
|
1,938,000
|
|
|
|
|
54.03
|
|
|
|
|
1,938,000
|
|
|
|
|
41,507,437
|
|
|
|
|
December 1 - December 31
|
|
4,456,463
|
|
|
|
|
52.92
|
|
|
|
|
4,453,824
|
|
|
|
|
37,053,613
|
|
|
|
|
Total
|
|
32,586,115
|
|
|
(1)
|
|
$
|
50.82
|
|
|
|
|
31,994,274
|
|
|
|
|
37,053,613
|
|
|
|
(In millions, except for share and per-share amounts)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums, principally supplemental
health insurance |
$
|
18,780
|
|
|
$
|
18,677
|
|
|
$
|
18,531
|
|
|
$
|
19,225
|
|
|
$
|
17,570
|
|
Net investment income
|
3,578
|
|
|
3,442
|
|
|
3,220
|
|
|
3,278
|
|
|
3,135
|
|
|||||
Realized investment gains (losses)
|
(135
|
)
|
|
(430
|
)
|
|
(151
|
)
|
|
(14
|
)
|
|
106
|
|
|||||
Other income
|
84
|
|
|
69
|
|
|
67
|
|
|
70
|
|
|
61
|
|
|||||
Total revenues
|
22,307
|
|
|
21,758
|
|
|
21,667
|
|
|
22,559
|
|
|
20,872
|
|
|||||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Benefits and claims, net
|
11,942
|
|
|
12,000
|
|
|
12,181
|
|
|
12,919
|
|
|
11,746
|
|
|||||
Expenses
|
5,920
|
|
|
5,775
|
|
|
5,468
|
|
|
5,573
|
|
|
5,264
|
|
|||||
Total benefits and expenses
|
17,862
|
|
|
17,775
|
|
|
17,649
|
|
|
18,492
|
|
|
17,010
|
|
|||||
Pretax earnings
|
4,445
|
|
|
3,983
|
|
|
4,018
|
|
|
4,067
|
|
|
3,862
|
|
|||||
Income taxes
|
1,141
|
|
|
1,063
|
|
|
(586
|
)
|
|
1,408
|
|
|
1,329
|
|
|||||
Net earnings
|
$
|
3,304
|
|
|
$
|
2,920
|
|
|
$
|
4,604
|
|
|
$
|
2,659
|
|
|
$
|
2,533
|
|
Share and Per-Share Amounts
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings (basic)
|
$
|
4.45
|
|
|
$
|
3.79
|
|
|
$
|
5.81
|
|
|
$
|
3.23
|
|
|
$
|
2.94
|
|
Net earnings (diluted)
|
4.43
|
|
|
3.77
|
|
|
5.77
|
|
|
3.21
|
|
|
2.92
|
|
|||||
Cash dividends paid
|
1.08
|
|
|
1.04
|
|
|
.87
|
|
|
.83
|
|
|
.79
|
|
|||||
Cash dividends declared
|
1.08
|
|
|
1.04
|
|
|
.87
|
|
|
.83
|
|
|
.79
|
|
|||||
Weighted-average common shares used for basic
EPS (In thousands) |
742,414
|
|
|
769,588
|
|
|
792,042
|
|
|
822,942
|
|
|
861,307
|
|
|||||
Weighted-average common shares used for diluted
EPS (In thousands) |
746,430
|
|
|
774,650
|
|
|
797,861
|
|
|
827,841
|
|
|
866,344
|
|
|||||
Supplemental Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Yen/dollar exchange rate at year-end (yen)
|
109.56
|
|
|
111.00
|
|
|
113.00
|
|
|
116.49
|
|
|
120.61
|
|
|||||
Weighted-average yen/dollar exchange rate (yen)
|
109.07
|
|
|
110.39
|
|
|
112.16
|
|
|
108.70
|
|
|
120.99
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments and cash
|
$
|
138,091
|
|
|
$
|
126,243
|
|
|
$
|
123,659
|
|
|
$
|
116,361
|
|
|
$
|
105,897
|
|
Other
|
14,677
|
|
|
14,163
|
|
|
13,558
|
|
|
13,458
|
|
|
12,359
|
|
|||||
Total assets
|
$
|
152,768
|
|
|
$
|
140,406
|
|
|
$
|
137,217
|
|
|
$
|
129,819
|
|
|
$
|
118,256
|
|
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy liabilities
|
$
|
106,554
|
|
|
$
|
103,188
|
|
|
$
|
99,147
|
|
|
$
|
93,726
|
|
|
$
|
87,631
|
|
Income taxes
|
5,370
|
|
|
4,020
|
|
|
4,745
|
|
|
5,387
|
|
|
4,340
|
|
|||||
Notes payable and lease obligations (1)
|
6,569
|
|
|
5,778
|
|
|
5,289
|
|
|
5,360
|
|
|
4,971
|
|
|||||
Other liabilities
|
5,316
|
|
|
3,958
|
|
|
3,438
|
|
|
4,864
|
|
|
3,606
|
|
|||||
Shareholders’ equity
|
28,959
|
|
|
23,462
|
|
|
24,598
|
|
|
20,482
|
|
|
17,708
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
152,768
|
|
|
$
|
140,406
|
|
|
$
|
137,217
|
|
|
$
|
129,819
|
|
|
$
|
118,256
|
|
•
|
Adjusted earnings are the profits derived from operations.The most comparable U.S. GAAP measure is net earnings. Adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management’s control. Adjusted revenues are U.S. GAAP total revenues excluding realized investment gains and losses, except for amortized hedge costs/income related to foreign currency exposure management strategies and net interest cash flows from derivatives associated with certain investment strategies. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company's underlying business performance.
|
•
|
Adjusted earnings per share (basic or diluted) are adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The most comparable U.S. GAAP measure is net earnings per share.
|
•
|
Amortized hedge costs/income represent costs/income incurred or recognized in using foreign currency forward
|
•
|
Adjusted earnings and adjusted earnings per diluted share excluding current period foreign currency impact are computed using the average yen/dollar exchange rate for the comparable prior year period, which eliminates fluctuations driven solely by yen-to-dollar currency rate changes.
|
•
|
Amounts excluding foreign currency impact on U.S. dollar-denominated investment income were determined using the average dollar/yen exchange rate for the comparable prior year period.
|
•
|
Adjusted book value is the U.S. GAAP book value (representing total shareholders' equity), less AOCI as recorded on the U.S. GAAP balance sheet. The Company considers adjusted book value important as it excludes AOCI, which fluctuates due to market movements that are outside management's control.
|
•
|
Adjusted return on equity (ROE) excluding foreign currency impact is calculated using adjusted earnings excluding the impact of the yen/dollar exchange rate, as reconciled with total U.S. GAAP net earnings, divided by average shareholders’ equity, excluding AOCI. The most comparable U.S. GAAP financial measure is return on average equity as determined using net earnings and average total shareholders’ equity.
|
|
In Millions
|
|
Per Diluted Share
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net earnings
|
$
|
3,304
|
|
|
$
|
2,920
|
|
|
$
|
4.43
|
|
|
$
|
3.77
|
|
Items impacting net earnings:
|
|
|
|
|
|
|
|
||||||||
Realized investment (gains) losses (2),(3),(4),(5)
|
15
|
|
|
297
|
|
|
.02
|
|
|
.38
|
|
||||
Other and non-recurring (income) loss
|
1
|
|
|
75
|
|
|
.00
|
|
|
.10
|
|
||||
Income tax (benefit) expense on items
excluded from adjusted earnings |
(3
|
)
|
|
(83
|
)
|
|
.00
|
|
|
(.11
|
)
|
||||
Tax reform adjustment (6)
|
(4
|
)
|
|
18
|
|
|
(.01
|
)
|
|
.02
|
|
||||
Adjusted earnings
|
3,314
|
|
|
3,226
|
|
|
4.44
|
|
|
4.16
|
|
||||
Current period foreign currency impact (7)
|
(15
|
)
|
|
N/A
|
|
|
(.02
|
)
|
|
N/A
|
|
||||
Adjusted earnings excluding current period
foreign currency impact |
$
|
3,299
|
|
|
$
|
3,226
|
|
|
$
|
4.42
|
|
|
$
|
4.16
|
|
(In millions)
|
2019
|
|
2018
|
|
||||
Net premium income
|
$
|
12,772
|
|
|
$
|
12,762
|
|
|
Net investment income:
|
|
|
|
|
||||
Yen-denominated investment income
|
1,307
|
|
|
1,283
|
|
|
||
U.S. dollar-denominated investment income
|
1,446
|
|
|
1,356
|
|
|
||
Net investment income
|
2,753
|
|
|
2,639
|
|
|
||
Amortized hedge costs related to certain foreign currency
exposure management strategies |
257
|
|
|
236
|
|
|
||
Net investment income, less amortized hedge costs
|
2,496
|
|
|
2,403
|
|
|
||
Other income (loss)
|
45
|
|
|
41
|
|
|
||
Total adjusted revenues
|
15,313
|
|
|
15,206
|
|
|
||
Benefits and claims, net
|
8,877
|
|
|
8,913
|
|
|
||
Adjusted expenses:
|
|
|
|
|
||||
Amortization of deferred policy acquisition costs
|
709
|
|
|
710
|
|
|
||
Insurance commissions
|
731
|
|
|
735
|
|
|
||
Insurance and other expenses
|
1,734
|
|
|
1,640
|
|
|
||
Total adjusted expenses
|
3,174
|
|
|
3,085
|
|
|
||
Total benefits and adjusted expenses
|
12,051
|
|
|
11,998
|
|
|
||
Pretax adjusted earnings
|
$
|
3,261
|
|
|
$
|
3,208
|
|
|
Weighted-average yen/dollar exchange rate
|
109.07
|
|
|
110.39
|
|
|
|
In Dollars
|
|
In Yen
|
|||||||||
Percentage change over previous period:
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||
Net premium income
|
.1
|
%
|
|
.1
|
%
|
|
(1.1
|
)%
|
|
(1.5
|
)%
|
|
Net investment income, less amortized
hedge costs
|
3.9
|
|
|
7.5
|
|
|
2.2
|
|
|
5.5
|
|
|
Total adjusted revenues
|
.7
|
|
|
1.2
|
|
|
(.6
|
)
|
|
(.5
|
)
|
|
Pretax adjusted earnings
|
1.7
|
|
|
5.0
|
|
|
.2
|
|
|
3.1
|
|
|
|
Including Foreign
Currency Changes |
|
Excluding Foreign
Currency Changes |
||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
Net investment income, less
amortized hedge costs |
2.2
|
%
|
|
5.5
|
%
|
|
|
2.9
|
%
|
|
6.4
|
%
|
|
Total adjusted revenues
|
(.6
|
)
|
|
(.5
|
)
|
|
|
(.5
|
)
|
|
(.3
|
)
|
|
Pretax adjusted earnings
|
.2
|
|
|
3.1
|
|
|
|
.7
|
|
|
3.7
|
|
|
Ratios to total adjusted revenues:
|
2019
|
|
2018
|
|
||
Benefits and claims, net
|
58.0
|
%
|
|
58.6
|
%
|
|
Adjusted expenses:
|
|
|
|
|
||
Amortization of deferred policy acquisition costs
|
4.6
|
|
|
4.7
|
|
|
Insurance commissions
|
4.8
|
|
|
4.8
|
|
|
Insurance and other expenses
|
11.3
|
|
|
10.8
|
|
|
Total adjusted expenses
|
20.7
|
|
|
20.3
|
|
|
Pretax adjusted earnings
|
21.3
|
|
|
21.1
|
|
|
Ratios to total premiums:
|
|
|
|
|
||
Benefits and claims, net
|
69.5
|
%
|
|
69.9
|
%
|
|
Adjusted expenses:
|
|
|
|
|
||
Amortization of deferred policy acquisition costs
|
5.5
|
|
|
5.6
|
|
|
|
In Dollars
|
In Yen
|
||||||||||||||
(In millions of dollars and billions of yen)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
New annualized premium sales
|
$
|
731
|
|
|
$
|
869
|
|
|
¥
|
79.7
|
|
|
¥
|
95.9
|
|
|
Increase (decrease) over prior period
|
(15.9
|
)%
|
|
2.7
|
%
|
|
(16.9
|
)%
|
|
1.1
|
%
|
|
|
2019
|
|
2018
|
|
||
Cancer
|
59.2
|
%
|
|
65.8
|
%
|
|
Medical
|
31.0
|
|
|
25.0
|
|
|
Income support
|
1.2
|
|
|
1.8
|
|
|
Ordinary life:
|
|
|
|
|
||
WAYS
|
.5
|
|
|
.5
|
|
|
Child endowment
|
.2
|
|
|
.3
|
|
|
Other ordinary life (1)
|
7.4
|
|
|
6.1
|
|
|
Other
|
.5
|
|
|
.5
|
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
(In millions)
|
|
2019
|
|
2018
|
|
||||
Yen-denominated:
|
|
|
|
|
|
||||
Fixed maturity securities:
|
|
|
|
|
|
||||
Japan government and agencies
|
|
$
|
583
|
|
|
$
|
3,895
|
|
|
Private placements
|
|
1,122
|
|
|
1,185
|
|
|
||
Other fixed maturity securities
|
|
542
|
|
|
796
|
|
|
||
Equity securities
|
|
212
|
|
|
221
|
|
|
||
Total yen-denominated
|
|
$
|
2,459
|
|
|
$
|
6,097
|
|
|
|
|
|
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
||||
Fixed maturity securities:
|
|
|
|
|
|
||||
Other fixed maturity securities
|
|
$
|
2,767
|
|
|
$
|
1,299
|
|
|
Infrastructure debt
|
|
66
|
|
|
0
|
|
|
||
Bank loans
|
|
0
|
|
|
346
|
|
|
||
Equity securities
|
|
58
|
|
|
120
|
|
|
||
Commercial mortgage and other loans:
|
|
|
|
|
|
||||
Transitional real estate loans
|
|
1,846
|
|
|
3,168
|
|
|
||
Commercial mortgage loans
|
|
565
|
|
|
13
|
|
|
||
Middle market loans
|
|
1,442
|
|
|
839
|
|
|
||
Other investments
|
|
145
|
|
|
314
|
|
|
||
Total dollar-denominated
|
|
$
|
6,889
|
|
|
$
|
6,099
|
|
|
Total Aflac Japan purchases
|
|
$
|
9,348
|
|
|
$
|
12,196
|
|
|
|
2019
|
|
2018
|
|
||||
Total purchases for the period (in millions) (1)
|
$
|
9,203
|
|
|
$
|
11,882
|
|
|
New money yield (1),(2)
|
3.83
|
%
|
|
3.06
|
%
|
|
||
Return on average invested assets (3)
|
2.33
|
|
|
2.33
|
|
|
||
Portfolio book yield, including U.S. dollar-denominated investments, end of period (1)
|
2.64
|
%
|
|
2.61
|
%
|
|
(In millions)
|
2019
|
|
2018
|
|
||||
Net premium income
|
$
|
5,808
|
|
|
$
|
5,708
|
|
|
Net investment income
|
720
|
|
|
727
|
|
|
||
Other income
|
22
|
|
|
8
|
|
|
||
Total adjusted revenues
|
6,550
|
|
|
6,443
|
|
|
||
Benefits and claims
|
2,871
|
|
|
2,887
|
|
|
||
Adjusted expenses:
|
|
|
|
|
||||
Amortization of deferred policy acquisition costs
|
573
|
|
|
534
|
|
|
||
Insurance commissions
|
590
|
|
|
585
|
|
|
||
Insurance and other expenses
|
1,244
|
|
|
1,152
|
|
|
||
Total adjusted expenses
|
2,407
|
|
|
2,271
|
|
|
||
Total benefits and adjusted expenses
|
5,279
|
|
|
5,158
|
|
|
||
Pretax adjusted earnings
|
$
|
1,272
|
|
|
$
|
1,285
|
|
|
Percentage change over previous period:
|
|
|
|
|
||||
Net premium income
|
1.8
|
%
|
|
2.6
|
%
|
|
||
Net investment income
|
(1.0
|
)
|
|
.8
|
|
|
||
Total adjusted revenues
|
1.7
|
|
|
2.4
|
|
|
||
Pretax adjusted earnings
|
(1.0
|
)
|
|
3.2
|
|
|
Ratios to total adjusted revenues:
|
2019
|
|
2018
|
|
||
Benefits and claims
|
43.8
|
%
|
|
44.8
|
%
|
|
Adjusted expenses:
|
|
|
|
|
||
Amortization of deferred policy acquisition costs
|
8.7
|
|
|
8.3
|
|
|
Insurance commissions
|
9.0
|
|
|
9.1
|
|
|
Insurance and other expenses
|
19.0
|
|
|
17.9
|
|
|
Total adjusted expenses
|
36.7
|
|
|
35.2
|
|
|
Pretax adjusted earnings
|
19.4
|
|
|
19.9
|
|
|
Ratios to total premiums:
|
|
|
|
|
||
Benefits and claims
|
49.4
|
|
|
50.6
|
|
|
Adjusted expenses:
|
|
|
|
|
||
Amortization of deferred policy acquisition costs
|
9.9
|
|
|
9.4
|
|
|
(In millions)
|
2019
|
|
2018
|
|
||||
New annualized premium sales
|
$
|
1,580
|
|
|
$
|
1,601
|
|
|
Increase (decrease) over prior period
|
(1.3
|
)%
|
|
3.2
|
%
|
|
|
2019
|
|
2018
|
|
||
Accident
|
28.5
|
%
|
|
29.2
|
%
|
|
Short-term disability
|
22.5
|
|
|
22.7
|
|
|
Critical care (1)
|
21.9
|
|
|
22.1
|
|
|
Hospital indemnity
|
16.6
|
|
|
15.8
|
|
|
Dental/vision
|
4.4
|
|
|
4.7
|
|
|
Life
|
6.1
|
|
|
5.5
|
|
|
Total
|
100.0
|
%
|
|
100.0%
|
|
(In millions)
|
|
2019
|
|
2018
|
|
||||
Fixed maturity securities:
|
|
|
|
|
|
||||
Other fixed maturity securities
|
|
$
|
1,032
|
|
|
$
|
1,068
|
|
|
Infrastructure debt
|
|
119
|
|
|
97
|
|
|
||
Equity securities
|
|
58
|
|
|
76
|
|
|
||
Commercial mortgage and other loans:
|
|
|
|
|
|
||||
Transitional real estate loans
|
|
423
|
|
|
610
|
|
|
||
Commercial mortgage loans
|
|
104
|
|
|
163
|
|
|
||
Middle market loans
|
|
99
|
|
|
141
|
|
|
||
Other investments
|
|
16
|
|
|
44
|
|
|
||
Total Aflac U.S. Purchases
|
|
$
|
1,851
|
|
|
$
|
2,199
|
|
|
|
2019
|
|
2018
|
|
||||
Total purchases for period (in millions) (1)
|
$
|
1,835
|
|
|
$
|
2,155
|
|
|
New money yield (1), (2)
|
4.51
|
%
|
|
4.55
|
%
|
|
||
Return on average invested assets (3)
|
5.07
|
|
|
5.16
|
|
|
||
Portfolio book yield, end of period (1)
|
5.40
|
%
|
|
5.55
|
%
|
|
(In millions)
|
2019
|
|
2018
|
|
||||
Premium income
|
$
|
200
|
|
|
$
|
208
|
|
|
Net investment income
|
88
|
|
|
77
|
|
|
||
Amortized hedge income related to certain foreign currency
management strategies
|
89
|
|
|
36
|
|
|
||
Net investment income, including amortized hedge income
|
177
|
|
|
113
|
|
|
||
Other income
|
15
|
|
|
18
|
|
|
||
Total adjusted revenues
|
393
|
|
|
339
|
|
|
||
Benefits and claims, net
|
194
|
|
|
199
|
|
|
||
Adjusted expenses:
|
|
|
|
|
||||
Interest expense
|
133
|
|
|
120
|
|
|
||
Other adjusted expenses
|
137
|
|
|
159
|
|
|
||
Total adjusted expenses
|
270
|
|
|
279
|
|
|
||
Total benefits and adjusted expenses
|
464
|
|
|
478
|
|
|
||
Pretax adjusted earnings
|
$
|
(72
|
)
|
|
$
|
(139
|
)
|
|
|
2019
|
|
|||||||||||||
(In millions)
|
Aflac Japan
|
|
Aflac U.S.
|
|
Corporate and Other
|
|
Total
|
||||||||
Available for sale, fixed maturity securities,
at fair value
|
$
|
75,780
|
|
|
$
|
13,703
|
|
|
$
|
1,779
|
|
|
$
|
91,262
|
|
Held to maturity, fixed maturity securities,
at amortized cost
|
30,085
|
|
|
0
|
|
|
0
|
|
|
30,085
|
|
||||
Equity securities
|
657
|
|
|
67
|
|
|
78
|
|
|
802
|
|
||||
Commercial mortgage and other loans:
|
|
|
|
|
|
|
|
||||||||
Transitional real estate loans
|
4,507
|
|
|
943
|
|
|
0
|
|
|
5,450
|
|
||||
Commercial mortgage loans
|
1,308
|
|
|
399
|
|
|
0
|
|
|
1,707
|
|
||||
Middle market loans
|
2,141
|
|
|
271
|
|
|
0
|
|
|
2,412
|
|
||||
Other investments:
|
|
|
|
|
|
|
|
||||||||
Policy loans
|
234
|
|
|
16
|
|
|
0
|
|
|
250
|
|
||||
Short-term investments (1)
|
386
|
|
|
242
|
|
|
1
|
|
|
629
|
|
||||
Limited partnerships
|
496
|
|
|
55
|
|
|
17
|
|
|
568
|
|
||||
Other
|
0
|
|
|
30
|
|
|
0
|
|
|
30
|
|
||||
Total investments
|
115,594
|
|
|
15,726
|
|
|
1,875
|
|
|
133,195
|
|
||||
Cash and cash equivalents
|
1,674
|
|
|
417
|
|
|
2,805
|
|
|
4,896
|
|
||||
Total investments and cash
|
$
|
117,268
|
|
|
$
|
16,143
|
|
|
$
|
4,680
|
|
|
$
|
138,091
|
|
|
2018
|
||||||||||||||
(In millions)
|
Aflac Japan
|
|
Aflac U.S.
|
|
Corporate and Other
|
|
Total
|
||||||||
Available for sale, fixed maturity securities,
at fair value
|
$
|
69,409
|
|
|
$
|
12,132
|
|
|
$
|
1,354
|
|
|
$
|
82,895
|
|
Held to maturity, fixed maturity securities,
at amortized cost
|
30,318
|
|
|
0
|
|
|
0
|
|
|
30,318
|
|
||||
Equity securities
|
806
|
|
|
137
|
|
|
44
|
|
|
987
|
|
||||
Commercial mortgage and other loans:
|
|
|
|
|
|
|
|
||||||||
Transitional real estate loans
|
3,621
|
|
|
756
|
|
|
0
|
|
|
4,377
|
|
||||
Commercial mortgage loans
|
763
|
|
|
301
|
|
|
0
|
|
|
1,064
|
|
||||
Middle market loans
|
1,144
|
|
|
334
|
|
|
0
|
|
|
1,478
|
|
||||
Other investments:
|
|
|
|
|
|
|
|
||||||||
Policy loans
|
219
|
|
|
13
|
|
|
0
|
|
|
232
|
|
||||
Short-term investments (1)
|
0
|
|
|
141
|
|
|
11
|
|
|
152
|
|
||||
Limited partnerships
|
333
|
|
|
37
|
|
|
7
|
|
|
377
|
|
||||
Other
|
0
|
|
|
26
|
|
|
0
|
|
|
26
|
|
||||
Total investments
|
106,613
|
|
|
13,877
|
|
|
1,416
|
|
|
121,906
|
|
||||
Cash and cash equivalents
|
1,779
|
|
|
641
|
|
|
1,917
|
|
|
4,337
|
|
||||
Total investments and cash
|
$
|
108,392
|
|
|
$
|
14,518
|
|
|
$
|
3,333
|
|
|
$
|
126,243
|
|
|
|
2019
|
|
|
|
2018
|
|
||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
AAA
|
|
1.1
|
%
|
|
|
|
1.0
|
%
|
|
|
|
1.0
|
%
|
|
|
|
.9
|
%
|
|
AA
|
|
4.3
|
|
|
|
|
4.4
|
|
|
|
|
3.9
|
|
|
|
|
4.0
|
|
|
A
|
|
68.6
|
|
|
|
|
69.8
|
|
|
|
|
67.9
|
|
|
|
|
69.9
|
|
|
BBB
|
|
23.1
|
|
|
|
|
22.1
|
|
|
|
|
23.2
|
|
|
|
|
21.6
|
|
|
BB or lower
|
|
2.9
|
|
|
|
|
2.7
|
|
|
|
|
4.0
|
|
|
|
|
3.6
|
|
|
Total
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Unrealized
Loss |
||||||||||||||
Diamond Offshore Drilling Inc.
|
|
CCC
|
|
|
|
$
|
64
|
|
|
|
|
$
|
32
|
|
|
|
|
$
|
(32
|
)
|
|
AXA
|
|
BBB
|
|
|
|
296
|
|
|
|
|
271
|
|
|
|
|
(25
|
)
|
|
|||
Transocean Inc.
|
|
CCC
|
|
|
|
50
|
|
|
|
|
37
|
|
|
|
|
(13
|
)
|
|
|||
Intesa Sanpaolo Spa
|
|
BBB
|
|
|
|
142
|
|
|
|
|
132
|
|
|
|
|
(10
|
)
|
|
|||
Baker Hughes Inc.
|
|
A
|
|
|
|
123
|
|
|
|
|
114
|
|
|
|
|
(9
|
)
|
|
|||
Kommunal Landspensjonskasse (KLP)
|
|
BBB
|
|
|
|
137
|
|
|
|
|
129
|
|
|
|
|
(8
|
)
|
|
|||
Mirvac Group Finance Ltd.
|
|
A
|
|
|
|
91
|
|
|
|
|
84
|
|
|
|
|
(7
|
)
|
|
|||
Autostrade Per Litalia Spa
|
|
BBB
|
|
|
|
182
|
|
|
|
|
175
|
|
|
|
|
(7
|
)
|
|
|||
Downer Group Finance Pty LTD
|
|
BBB
|
|
|
|
91
|
|
|
|
|
85
|
|
|
|
|
(6
|
)
|
|
|||
Chevron Corp.
|
|
AA
|
|
|
|
148
|
|
|
|
|
142
|
|
|
|
|
(6
|
)
|
|
|
December 31, 2019
|
|
||||||||||||||
(In millions)
|
Par
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
|
Unrealized
Gain
(Loss)
|
|
||||||||
Investcorp Capital Limited
|
$
|
388
|
|
|
$
|
388
|
|
|
$
|
452
|
|
|
$
|
64
|
|
|
Republic of South Africa
|
365
|
|
|
365
|
|
|
372
|
|
|
7
|
|
|
||||
Barclays Bank PLC
|
183
|
|
|
115
|
|
|
157
|
|
|
42
|
|
|
||||
KLM Royal Dutch Airlines
|
183
|
|
|
136
|
|
|
143
|
|
|
7
|
|
|
||||
Telecom Italia SpA
|
183
|
|
|
183
|
|
|
241
|
|
|
58
|
|
|
||||
IKB Deutsche Industriebank AG
|
118
|
|
|
51
|
|
|
102
|
|
|
51
|
|
|
||||
Arconic Inc.
|
100
|
|
|
85
|
|
|
111
|
|
|
26
|
|
|
||||
EMC Corp.
|
80
|
|
|
80
|
|
|
82
|
|
|
2
|
|
|
||||
Generalitat de Catalunya
|
73
|
|
|
27
|
|
|
80
|
|
|
53
|
|
|
||||
Teva Pharmaceuticals
|
68
|
|
|
66
|
|
|
61
|
|
|
(5
|
)
|
|
||||
Other Issuers
|
456
|
|
|
436
|
|
|
420
|
|
|
(16
|
)
|
|
||||
Subtotal (1)
|
2,197
|
|
|
1,932
|
|
|
2,221
|
|
|
289
|
|
|
||||
Senior secured bank loans
|
462
|
|
|
480
|
|
|
459
|
|
|
(21
|
)
|
|
||||
High yield corporate bonds
|
726
|
|
|
723
|
|
|
755
|
|
|
32
|
|
|
||||
Middle market loans, net of reserves (2)
|
2,455
|
|
|
2,412
|
|
|
2,420
|
|
|
8
|
|
|
||||
Grand Total
|
$
|
5,840
|
|
|
$
|
5,547
|
|
|
$
|
5,855
|
|
|
$
|
308
|
|
|
|
2019
|
|
||||||||||
(In millions)
|
|
Amortized
Cost |
|
|
% of
Total
|
|
||||||
Government and agencies
|
|
$
|
53,463
|
|
|
|
|
48.8
|
%
|
|
||
Municipalities
|
|
2,414
|
|
|
|
|
2.2
|
|
|
|||
Mortgage- and asset-backed securities
|
|
394
|
|
|
|
|
.4
|
|
|
|||
Public utilities
|
|
8,194
|
|
|
|
|
7.5
|
|
|
|||
Electric
|
|
6,471
|
|
|
|
|
5.9
|
|
|
|||
Natural Gas
|
|
303
|
|
|
|
|
.3
|
|
|
|||
Other
|
|
695
|
|
|
|
|
.6
|
|
|
|||
Utility/Energy
|
|
725
|
|
|
|
|
.7
|
|
|
|||
Sovereign and Supranational
|
|
2,042
|
|
|
|
|
1.9
|
|
|
|||
Banks/financial institutions
|
|
9,947
|
|
|
|
|
9.1
|
|
|
|||
Banking
|
|
6,029
|
|
|
|
|
5.5
|
|
|
|||
Insurance
|
|
1,948
|
|
|
|
|
1.8
|
|
|
|||
Other
|
|
1,970
|
|
|
|
|
1.8
|
|
|
|||
Other corporate
|
|
33,002
|
|
|
|
|
30.1
|
|
|
|||
Basic Industry
|
|
3,484
|
|
|
|
|
3.2
|
|
|
|||
Capital Goods
|
|
3,187
|
|
|
|
|
2.9
|
|
|
|||
Communications
|
|
4,057
|
|
|
|
|
3.7
|
|
|
|||
Consumer Cyclical
|
|
3,271
|
|
|
|
|
3.0
|
|
|
|||
Consumer Non-Cyclical
|
|
6,280
|
|
|
|
|
5.7
|
|
|
|||
Energy
|
|
4,281
|
|
|
|
|
3.9
|
|
|
|||
Other
|
|
1,464
|
|
|
|
|
1.3
|
|
|
|||
Technology
|
|
3,129
|
|
|
|
|
2.9
|
|
|
|||
Transportation
|
|
3,849
|
|
|
|
|
3.5
|
|
|
|||
Total fixed maturity securities
|
|
$
|
109,456
|
|
|
|
|
100.0
|
%
|
|
|
|
2019
|
|
|
|
2018
|
|
||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||||
Publicly issued securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturity securities
|
|
$
|
89,625
|
|
|
|
|
$
|
105,557
|
|
|
|
|
$
|
83,482
|
|
|
|
|
$
|
93,255
|
|
|
||
Equity securities
|
|
717
|
|
|
|
|
717
|
|
|
|
|
936
|
|
|
|
|
936
|
|
|
||||||
Total publicly issued
|
|
90,342
|
|
|
|
|
106,274
|
|
|
|
|
84,418
|
|
|
|
|
94,191
|
|
|
||||||
Privately issued securities: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturity securities
|
|
19,831
|
|
(2
|
)
|
|
|
23,299
|
|
(2
|
)
|
|
|
23,692
|
|
|
|
|
26,362
|
|
|
||||
Equity securities
|
|
85
|
|
|
|
|
85
|
|
|
|
|
51
|
|
|
|
|
51
|
|
|
||||||
Total privately issued
|
|
19,916
|
|
|
|
|
23,384
|
|
|
|
|
23,743
|
|
|
|
|
26,413
|
|
|
||||||
Total investment securities
|
|
$
|
110,258
|
|
|
|
|
$
|
129,658
|
|
|
|
|
$
|
108,161
|
|
|
|
|
$
|
120,604
|
|
|
(Amortized cost, in millions)
|
2019
|
|
2018
|
|
||||
Privately issued reverse-dual currency securities
|
$
|
4,993
|
|
|
$
|
5,120
|
|
|
Publicly issued collateral structured as reverse-dual currency securities
|
1,678
|
|
|
1,657
|
|
|
||
Total reverse-dual currency securities
|
$
|
6,671
|
|
|
$
|
6,777
|
|
|
Reverse-dual currency securities as a percentage of total investment
securities |
6.1
|
%
|
|
6.3
|
%
|
|
•
|
A description of the Company's derivatives, hedging strategies and underlying risk exposure.
|
•
|
Information about the notional amount and fair market value of the Company's derivatives.
|
•
|
The unrealized and realized gains and losses impact on adjusted earnings of derivatives in cash flow, fair value, net investments in foreign operations, or non-qualifying hedging relationships.
|
•
|
Aflac Japan hedges U.S. dollar-denominated investments back to yen (see Aflac Japan’s U.S. Dollar-Denominated Hedge Program below).
|
•
|
Aflac Japan maintains certain unhedged U.S. dollar-denominated securities, which serve as an economic currency hedge of a portion of the Company's investment in Aflac Japan (see Aflac Japan’s U.S. Dollar-Denominated Hedge Program below).
|
•
|
The Parent Company designates yen-denominated liabilities (notes payable and loans) as non-derivative hedging instruments and designates certain foreign currency forwards and options as derivative hedges of the Company’s net investment in Aflac Japan (see Enterprise Corporate Hedging Program below).
|
•
|
The Parent Company enters into forward and option contracts to accomplish a dual objective of hedging foreign currency exchange rate risk related to dividend payments by its subsidiary, ALIJ, and reducing enterprise-wide hedge costs. (see Enterprise Corporate Hedging Program below).
|
|
2019
|
|
2018
|
||||||||||
(In millions)
|
Amortized
Cost
|
Fair
Value
|
|
Amortized
Cost
|
Fair
Value
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
||||||||
Fixed maturity securities (excluding bank loans)
|
$
|
18,012
|
|
$
|
19,542
|
|
|
$
|
17,101
|
|
$
|
17,003
|
|
Fixed maturity securities - bank loans (floating rate)
|
677
|
|
649
|
|
|
1,296
|
|
1,238
|
|
||||
Equity securities
|
19
|
|
19
|
|
|
177
|
|
177
|
|
||||
Commercial mortgage and other loans:
|
|
|
|
|
|
||||||||
Transitional real estate loans (floating rate)
|
4,507
|
|
4,543
|
|
|
3,621
|
|
3,625
|
|
||||
Commercial mortgage loans
|
1,308
|
|
1,319
|
|
|
763
|
|
736
|
|
||||
Middle market loans (floating rate)
|
2,141
|
|
2,153
|
|
|
1,144
|
|
1,146
|
|
||||
Other investments
|
496
|
|
496
|
|
|
333
|
|
333
|
|
||||
Total U.S. Dollar Program
|
27,160
|
|
28,721
|
|
|
24,435
|
|
24,258
|
|
||||
Available-for-sale securities:
|
|
|
|
|
|
||||||||
Fixed maturity securities - economically converted to yen
|
1,700
|
|
2,608
|
|
|
1,679
|
|
2,269
|
|
||||
Total U.S. dollar-denominated investments in Aflac Japan
|
$
|
28,860
|
|
$
|
31,329
|
|
|
$
|
26,114
|
|
$
|
26,527
|
|
|
2019
|
|
2018
|
Aflac Japan:
|
|
|
|
FX forward (sell USD, buy yen) notional at end of period (in billions)(2)
|
$8.8
|
|
$9.9
|
Weighted average remaining tenor (in months)(3)
|
8.5
|
|
21.4
|
Amortized hedge income (cost) for period (in millions)
|
$(257)
|
|
$(236)
|
Parent Company:
|
|
|
|
FX forward (buy USD, sell yen) notional at end of period (in billions)(2)
|
$4.9
|
|
$2.5
|
Weighted average remaining tenor (in months)(3)
|
13.7
|
|
16.1
|
Amortized hedge income (cost) for period (in millions)
|
$89
|
|
$36
|
(In millions)
|
2019
|
|
2018
|
|
||||
Japan segment:
|
|
|
|
|
||||
Future policy benefits
|
$
|
81,462
|
|
|
$
|
77,812
|
|
|
Unpaid policy claims
|
2,879
|
|
|
2,857
|
|
|
||
Other policy liabilities
|
11,452
|
|
|
12,122
|
|
|
||
Total Japan policy liabilities
|
95,793
|
|
|
92,791
|
|
|
||
U.S. segment:
|
|
|
|
|
||||
Future policy benefits
|
9,405
|
|
|
9,137
|
|
|
||
Unpaid policy claims
|
1,779
|
|
|
1,727
|
|
|
||
Other policy liabilities
|
111
|
|
|
117
|
|
|
||
Total U.S. policy liabilities
|
11,295
|
|
|
10,981
|
|
|
||
Consolidated:
|
|
|
|
|
||||
Future policy benefits
|
90,335
|
|
|
86,368
|
|
|
||
Unpaid policy claims
|
4,659
|
|
|
4,584
|
|
|
||
Other policy liabilities
|
11,560
|
|
|
12,236
|
|
|
||
Total consolidated policy liabilities (1)
|
$
|
106,554
|
|
|
$
|
103,188
|
|
|
•
|
business investment and growth needs
|
•
|
strategic growth objectives
|
•
|
financial flexibility and obligations
|
•
|
capital support for hedging activity
|
•
|
a constantly evolving business and economic environment
|
•
|
a balanced approach to capital allocation and shareholder deployment.
|
(In millions)
|
2019
|
|
2018
|
|
||||
Dividends declared or paid by subsidiaries
|
$
|
3,466
|
|
|
$
|
1,817
|
|
|
Management fees paid by subsidiaries
|
151
|
|
|
204
|
|
|
(In millions of dollars and billions of yen)
|
2019
|
|
2018
|
|
||||
Aflac Japan management fees paid to Parent Company
|
$
|
75
|
|
|
$
|
136
|
|
|
Expenses allocated to Aflac Japan (in dollars)
|
4
|
|
|
24
|
|
|
||
Aflac Japan profit remittances to the Parent Company or Aflac U.S. (in dollars)
|
2,070
|
|
|
808
|
|
|
||
Aflac Japan profit remittances to the Parent Company or Aflac U.S. (in yen)
|
¥
|
225.2
|
|
|
¥
|
89.7
|
|
|
(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)
|
$
|
90,335
|
|
|
$
|
244,884
|
|
|
$
|
9,221
|
|
|
$
|
18,151
|
|
|
$
|
18,224
|
|
|
$
|
199,288
|
|
Unpaid policy claims liability (Note 7)(3)
|
4,659
|
|
|
4,660
|
|
|
2,985
|
|
|
980
|
|
|
394
|
|
|
301
|
|
||||||
Other policyholders' funds (Note 7)(3)
|
7,317
|
|
|
9,902
|
|
|
341
|
|
|
389
|
|
|
706
|
|
|
8,466
|
|
||||||
Long-term debt – principal (Note 9)
|
6,408
|
|
|
6,458
|
|
|
0
|
|
|
350
|
|
|
1,450
|
|
|
4,658
|
|
||||||
Long-term debt – interest (Note 9)
|
44
|
|
|
2,036
|
|
|
171
|
|
|
320
|
|
|
262
|
|
|
1,283
|
|
||||||
Cash collateral on loaned securities (Note 3)
|
1,876
|
|
|
1,876
|
|
|
1,876
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
Operating service agreements (Note 15)
|
N/A
|
|
(4)
|
463
|
|
|
179
|
|
|
279
|
|
|
5
|
|
|
0
|
|
||||||
Operating lease obligations (Note 9)
|
149
|
|
|
159
|
|
|
49
|
|
|
68
|
|
|
20
|
|
|
22
|
|
||||||
Finance lease obligations (Note 9)
|
12
|
|
|
12
|
|
|
4
|
|
|
5
|
|
|
3
|
|
|
0
|
|
||||||
Total contractual obligations
|
$
|
110,800
|
|
|
$
|
270,450
|
|
|
$
|
14,826
|
|
|
$
|
20,542
|
|
|
$
|
21,064
|
|
|
$
|
214,018
|
|
(In millions)
|
2019
|
|
2018
|
|
||||
Operating activities
|
$
|
5,455
|
|
|
$
|
6,014
|
|
|
Investing activities
|
(3,171
|
)
|
|
(3,582
|
)
|
|
||
Financing activities
|
(1,713
|
)
|
|
(1,616
|
)
|
|
||
Exchange effect on cash and cash equivalents
|
(12
|
)
|
|
30
|
|
|
||
Net change in cash and cash equivalents
|
$
|
559
|
|
|
$
|
846
|
|
|
|
|
(In millions of dollars and thousands of shares)
|
2019
|
|
2018
|
|
||||
Treasury stock purchases
|
$
|
1,627
|
|
|
$
|
1,301
|
|
|
Number of shares purchased:
|
|
|
|
|
||||
Share repurchase program
|
31,994
|
|
|
28,949
|
|
|
||
Other
|
592
|
|
|
392
|
|
|
||
Total shares purchased
|
32,586
|
|
|
29,341
|
|
|
(In millions of dollars and thousands of shares)
|
2019
|
|
2018
|
|
||||
Stock issued from treasury:
|
|
|
|
|
||||
Cash financing
|
$
|
49
|
|
|
$
|
58
|
|
|
Noncash financing
|
50
|
|
|
17
|
|
|
||
Total stock issued from treasury
|
$
|
99
|
|
|
$
|
75
|
|
|
Number of shares issued
|
2,324
|
|
|
1,939
|
|
|
(In millions)
|
2019
|
|
2018
|
|
||||
Dividends paid in cash
|
$
|
771
|
|
|
$
|
793
|
|
|
Dividends through issuance of treasury shares
|
30
|
|
|
8
|
|
|
||
Total dividends to shareholders
|
$
|
801
|
|
|
$
|
801
|
|
|
(In millions of dollars and billions of yen)
|
2019
|
|
2018
|
|
||||
Aflac U.S.
|
$
|
9,405
|
|
|
$
|
9,137
|
|
|
Growth rate
|
2.9
|
%
|
|
3.8
|
%
|
|
||
Aflac Japan
|
$
|
81,462
|
|
|
$
|
77,812
|
|
|
Growth rate
|
4.7
|
%
|
|
5.6
|
%
|
|
||
Consolidated
|
$
|
90,335
|
|
|
$
|
86,368
|
|
|
Growth rate
|
4.6
|
%
|
|
5.5
|
%
|
|
||
Yen/dollar exchange rate (end of period)
|
109.56
|
|
|
111.00
|
|
|
||
Aflac Japan
|
¥
|
8,925
|
|
|
¥
|
8,637
|
|
|
Growth rate
|
3.3
|
%
|
|
3.8
|
%
|
|
(In millions)
|
|
Total Severity
|
|
||||||||||||||||||||||||||
Total Frequency
|
Decrease
by 2% |
|
Decrease
by 1% |
|
Unchanged
|
|
Increase
by 1% |
|
Increase
by 2% |
||||||||||||||||||||
Increase by 2%
|
|
$
|
0
|
|
|
|
|
$
|
25
|
|
|
|
|
$
|
50
|
|
|
|
|
$
|
76
|
|
|
|
|
$
|
101
|
|
|
Increase by 1%
|
|
(25
|
)
|
|
|
|
0
|
|
|
|
|
25
|
|
|
|
|
50
|
|
|
|
|
76
|
|
|
|||||
Unchanged
|
|
(49
|
)
|
|
|
|
(25
|
)
|
|
|
|
0
|
|
|
|
|
25
|
|
|
|
|
50
|
|
|
|||||
Decrease by 1%
|
|
(73
|
)
|
|
|
|
(49
|
)
|
|
|
|
(25
|
)
|
|
|
|
0
|
|
|
|
|
25
|
|
|
|||||
Decrease by 2%
|
|
(97
|
)
|
|
|
|
(73
|
)
|
|
|
|
(49
|
)
|
|
|
|
(25
|
)
|
|
|
|
0
|
|
|
(In millions)
|
2019
|
|
2018
|
|
||||||||||||||||||||
Yen/dollar exchange rates
|
94.56
|
|
|
109.56 (1)
|
|
|
124.56
|
|
|
96.00
|
|
|
111.00(1)
|
|
|
126.00
|
|
|
||||||
Yen-denominated financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturity securities (2)
|
$
|
60,391
|
|
|
$
|
52,123
|
|
|
$
|
45,846
|
|
|
$
|
55,600
|
|
|
$
|
48,086
|
|
|
$
|
42,362
|
|
|
Fixed maturity securities - consolidated
variable interest entities (3) |
995
|
|
|
858
|
|
|
755
|
|
|
941
|
|
|
814
|
|
|
717
|
|
|
||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed maturity securities
|
34,858
|
|
|
30,085
|
|
|
26,462
|
|
|
35,055
|
|
|
30,318
|
|
|
26,709
|
|
|
||||||
Equity securities
|
763
|
|
|
658
|
|
|
579
|
|
|
742
|
|
|
641
|
|
|
565
|
|
|
||||||
Cash and cash equivalents
|
1,296
|
|
|
1,119
|
|
|
984
|
|
|
988
|
|
|
855
|
|
|
753
|
|
|
||||||
Derivatives
|
2,718
|
|
|
482
|
|
|
2,457
|
|
|
2,712
|
|
|
417
|
|
|
949
|
|
|
||||||
Other financial instruments
|
271
|
|
|
234
|
|
|
205
|
|
|
253
|
|
|
219
|
|
|
192
|
|
|
||||||
Subtotal
|
101,292
|
|
|
85,559
|
|
|
77,288
|
|
|
96,291
|
|
|
81,350
|
|
|
72,247
|
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Notes payable
|
2,968
|
|
|
2,558
|
|
|
2,253
|
|
|
2,120
|
|
|
1,831
|
|
|
1,615
|
|
|
||||||
Derivatives
|
1,807
|
|
|
586
|
|
|
3,463
|
|
|
1,318
|
|
|
387
|
|
|
2,138
|
|
|
||||||
Subtotal
|
4,775
|
|
|
3,144
|
|
|
5,716
|
|
|
3,438
|
|
|
2,218
|
|
|
3,753
|
|
|
||||||
Net yen-denominated financial instruments
|
96,517
|
|
|
82,415
|
|
|
71,572
|
|
|
92,853
|
|
|
79,132
|
|
|
68,494
|
|
|
||||||
Other yen-denominated assets
|
10,304
|
|
|
8,893
|
|
|
7,822
|
|
|
10,795
|
|
|
9,336
|
|
|
8,225
|
|
|
||||||
Other yen-denominated liabilities
|
118,869
|
|
|
102,595
|
|
|
90,240
|
|
|
113,994
|
|
|
98,590
|
|
|
86,853
|
|
|
||||||
Consolidated yen-denominated net assets
(liabilities) subject to foreign currency fluctuation(2) |
$
|
(12,048
|
)
|
|
$
|
(11,287
|
)
|
|
$
|
(10,846
|
)
|
|
$
|
(10,346
|
)
|
|
$
|
(10,122
|
)
|
|
$
|
(10,134
|
)
|
|
|
2019
|
|
2018
|
||||||||||||||||||
(In millions)
|
Fair
Value |
+100
Basis Points |
|
Fair
Value |
+100
Basis Points |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated
|
|
$
|
90,575
|
|
|
|
$
|
78,193
|
|
|
|
|
$
|
85,622
|
|
|
|
$
|
73,673
|
|
|
Dollar-denominated
|
|
38,281
|
|
|
|
35,013
|
|
|
|
|
33,995
|
|
|
|
31,327
|
|
|
||||
Total debt securities
|
|
$
|
128,856
|
|
|
|
$
|
113,206
|
|
|
|
|
$
|
119,617
|
|
|
|
$
|
105,000
|
|
|
Commercial mortgage and other loans
|
|
$
|
9,648
|
|
|
|
$
|
9,540
|
|
|
|
|
$
|
6,893
|
|
|
|
$
|
6,834
|
|
|
Derivatives
|
|
$
|
482
|
|
|
|
$
|
527
|
|
|
|
|
$
|
417
|
|
|
|
$
|
614
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notes payable (1)
|
|
$
|
6,935
|
|
|
|
$
|
6,065
|
|
|
|
|
$
|
5,876
|
|
|
|
$
|
5,415
|
|
|
Derivatives
|
|
586
|
|
|
|
463
|
|
|
|
|
387
|
|
|
|
422
|
|
|
(In years)
|
2019
|
|
2018
|
|
||
Yen-denominated debt securities
|
15
|
|
|
16
|
|
|
Policy benefits and related expenses to be paid in future years
|
14
|
|
|
15
|
|
|
Premiums to be received in future years on policies in force
|
10
|
|
|
10
|
|
|
(In years)
|
2019
|
|
2018
|
|
||
Dollar-denominated debt securities
|
9
|
|
|
9
|
|
|
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
|
|
|
|
2019
|
2018
|
||||||||||||||
|
U.S.
|
Japan
|
U.S.
|
Japan
|
||||||||||||
Policies issued during year:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Required interest on policy reserves
|
|
3.68
|
%
|
|
|
.96
|
%
|
(1)
|
|
3.69
|
%
|
|
|
1.00
|
%
|
(1)
|
New money yield on investments
|
|
4.33
|
|
|
|
3.70
|
|
|
|
4.44
|
|
|
|
2.94
|
|
|
Policies in force at year-end:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Required interest on policy reserves
|
|
5.26
|
|
|
|
3.20
|
|
(1)
|
|
5.34
|
|
|
|
3.29
|
|
(1)
|
Portfolio book yield, end of period
|
|
5.22
|
|
|
|
2.51
|
|
|
|
5.44
|
|
|
|
2.49
|
|
|
|
|
|
|
Total
|
|
% of Total
|
|
|
|||
No.
|
|
Consolidated Corporate/Sovereign Exposure
|
|
Consolidated
|
|
Fixed Maturity
|
|
Credit
|
|||
|
|
|
|
Book Value
|
|
Securities
|
|
Rating
|
|||
1
|
|
Japan National Government (1)
|
|
$
|
51,726
|
|
|
47.26
|
%
|
|
A+
|
2
|
|
Bank of America NA
|
|
416
|
|
|
.38
|
|
|
|
|
|
|
Bank of America Corp.
|
|
233
|
|
|
.21
|
|
|
A
|
|
|
|
Bank of America Corp.
|
|
183
|
|
|
.17
|
|
|
BBB+
|
|
3
|
|
Bank of Tokyo-Mitsubishi UFJ Ltd.
|
|
411
|
|
|
.38
|
|
|
A-
|
|
4
|
|
Investcorp SA
|
|
388
|
|
|
.35
|
|
|
BB
|
|
5
|
|
Republic of South Africa
|
|
365
|
|
|
.33
|
|
|
BB+
|
|
6
|
|
Banobras
|
|
338
|
|
|
.31
|
|
|
BBB+
|
|
7
|
|
Walt Disney Co.
|
|
330
|
|
|
.30
|
|
|
A
|
|
8
|
|
Nordea Bank AB
|
|
306
|
|
|
.28
|
|
|
|
|
|
|
Nordea Bank AB
|
|
234
|
|
|
.21
|
|
|
A-
|
|
|
|
Nordea Bank AB
|
|
72
|
|
|
.07
|
|
|
BBB+
|
|
9
|
|
AXA
|
|
296
|
|
|
.27
|
|
|
BBB+
|
|
10
|
|
Japan Expswy Hld and Debt
|
|
295
|
|
|
.27
|
|
|
A+
|
|
11
|
|
Deutsche Telekom AG
|
|
295
|
|
|
.27
|
|
|
BBB+
|
|
12
|
|
AT&T Inc.
|
|
293
|
|
|
.27
|
|
|
BBB
|
|
13
|
|
CFE
|
|
291
|
|
|
.27
|
|
|
BBB+
|
|
14
|
|
Petroleos Mexicanos (Pemex)
|
|
274
|
|
|
.25
|
|
|
BBB-
|
|
15
|
|
Czech Republic
|
|
274
|
|
|
.25
|
|
|
AA-
|
|
|
|
Subtotal
|
|
$
|
56,298
|
|
|
51.44
|
%
|
|
|
|
|
Total fixed maturity securities
|
|
$
|
109,456
|
|
|
100.00
|
%
|
|
|
|
2019
|
|
2018
|
|
||||||||||
(In millions)
|
Amortized Cost
|
|
% of
Total |
|
Amortized Cost
|
|
% of
Total |
|
||||||
Japan
|
$
|
56,020
|
|
|
51.2
|
%
|
|
$
|
55,486
|
|
|
51.8
|
%
|
|
United States and Canada (1)
|
30,321
|
|
|
27.7
|
|
|
29,371
|
|
|
27.4
|
|
|
||
United Kingdom
|
3,371
|
|
|
3.1
|
|
|
3,038
|
|
|
2.8
|
|
|
||
Germany
|
2,441
|
|
|
2.2
|
|
|
2,179
|
|
|
2.0
|
|
|
||
France
|
2,261
|
|
|
2.1
|
|
|
2,030
|
|
|
1.9
|
|
|
||
Peripheral Eurozone
|
1,788
|
|
|
1.6
|
|
|
2,165
|
|
|
2.0
|
|
|
||
Portugal
|
91
|
|
|
.1
|
|
|
215
|
|
|
.2
|
|
|
||
Italy
|
1,108
|
|
|
1.0
|
|
|
1,261
|
|
|
1.2
|
|
|
||
Ireland
|
12
|
|
|
.0
|
|
|
29
|
|
|
.0
|
|
|
||
Spain
|
577
|
|
|
.5
|
|
|
660
|
|
|
.6
|
|
|
||
Nordic Region
|
1,878
|
|
|
1.7
|
|
|
1,615
|
|
|
1.6
|
|
|
||
Sweden
|
972
|
|
|
.9
|
|
|
779
|
|
|
.7
|
|
|
||
Norway
|
383
|
|
|
.3
|
|
|
378
|
|
|
.4
|
|
|
||
Denmark
|
333
|
|
|
.3
|
|
|
270
|
|
|
.3
|
|
|
||
Finland
|
190
|
|
|
.2
|
|
|
188
|
|
|
.2
|
|
|
||
Other Europe
|
2,699
|
|
|
2.5
|
|
|
2,425
|
|
|
2.3
|
|
|
||
Netherlands
|
1,276
|
|
|
1.2
|
|
|
1,206
|
|
|
1.1
|
|
|
||
Switzerland
|
417
|
|
|
.4
|
|
|
258
|
|
|
.2
|
|
|
||
Czech Republic
|
484
|
|
|
.4
|
|
|
451
|
|
|
.5
|
|
|
||
Austria
|
127
|
|
|
.1
|
|
|
125
|
|
|
.1
|
|
|
||
Belgium
|
189
|
|
|
.2
|
|
|
178
|
|
|
.2
|
|
|
||
Poland
|
183
|
|
|
.2
|
|
|
180
|
|
|
.2
|
|
|
||
Luxembourg
|
23
|
|
|
.0
|
|
|
27
|
|
|
.0
|
|
|
||
Asia excluding Japan
|
2,671
|
|
|
2.5
|
|
|
2,722
|
|
|
2.5
|
|
|
||
Africa and Middle East
|
1,801
|
|
|
1.6
|
|
|
2,018
|
|
|
1.9
|
|
|
||
Latin America
|
2,183
|
|
|
2.0
|
|
|
2,153
|
|
|
2.0
|
|
|
||
Australia
|
1,774
|
|
|
1.6
|
|
|
1,620
|
|
|
1.5
|
|
|
||
All Others
|
248
|
|
|
.2
|
|
|
352
|
|
|
.3
|
|
|
||
Total fixed maturity securities
|
$
|
109,456
|
|
|
100.0
|
%
|
|
$
|
107,174
|
|
|
100.0
|
%
|
|
/s/ KPMG LLP
|
–
|
Evaluating the inputs and assumptions used in the models to estimate the fair value of the privately issued securities, including an assessment of the determination of comparable securities and/or CDS spreads used by the third party pricing vendor for a selection of privately issued securities.
|
–
|
Assessing the internal models used by the Company to evaluate the fair values for privately issued securities and derivatives associated with VIEs obtained from the third party pricing vendor. We observed that differences, if any, in fair value between the Company and the third party pricing vendor above pre-established tolerances were investigated by the Company.
|
–
|
Developing an independent estimate of the fair value for a selection of privately issued securities and derivative instruments associated with VIEs and comparing our independent estimate to the fair value measurement recorded by the Company.
|
–
|
Assessing the actuarial methodologies and assumptions utilized by the Company by comparing them to generally accepted actuarial methodologies and historical results.
|
–
|
Evaluating the Company’s estimate of the unpaid policy claims liability by comparing to historical results and our expectations of changes in the estimate.
|
–
|
Developing an independent range for the estimate of unpaid policy claims for certain products to evaluate the Company’s recorded liability and assessing any movement of the recorded liability within our range.
|
–
|
Evaluating the Company’s historical ability to estimate unpaid policy claims by comparing the unpaid policy claims liability for certain products recorded by the Company at various historical periods to an independent range developed using claims paid through December 31, 2019.
|
/s/ KPMG LLP
|
(In millions, except for share and per-share amounts)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net premiums, principally supplemental health insurance
|
|
$
|
18,780
|
|
|
|
|
$
|
18,677
|
|
|
|
|
$
|
18,531
|
|
|
Net investment income
|
|
3,578
|
|
|
|
|
3,442
|
|
|
|
|
3,220
|
|
|
|||
Realized investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other-than-temporary impairment losses realized and loan loss reserves
|
|
(31
|
)
|
|
|
|
(81
|
)
|
|
|
|
(37
|
)
|
|
|||
Other gains (losses)
|
|
(104
|
)
|
|
|
|
(349
|
)
|
|
|
|
(114
|
)
|
|
|||
Total realized investment gains (losses)
|
|
(135
|
)
|
|
|
|
(430
|
)
|
|
|
|
(151
|
)
|
|
|||
Other income (loss)
|
|
84
|
|
|
|
|
69
|
|
|
|
|
67
|
|
|
|||
Total revenues
|
|
22,307
|
|
|
|
|
21,758
|
|
|
|
|
21,667
|
|
|
|||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Benefits and claims, net
|
|
11,942
|
|
|
|
|
12,000
|
|
|
|
|
12,181
|
|
|
|||
Acquisition and operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of deferred policy acquisition costs
|
|
1,282
|
|
|
|
|
1,245
|
|
|
|
|
1,132
|
|
|
|||
Insurance commissions
|
|
1,321
|
|
|
|
|
1,320
|
|
|
|
|
1,316
|
|
|
|||
Insurance and other expenses (1)
|
|
3,089
|
|
|
|
|
2,988
|
|
|
|
|
2,780
|
|
|
|||
Interest expense
|
|
228
|
|
|
|
|
222
|
|
|
|
|
240
|
|
|
|||
Total acquisition and operating expenses
|
|
5,920
|
|
|
|
|
5,775
|
|
|
|
|
5,468
|
|
|
|||
Total benefits and expenses
|
|
17,862
|
|
|
|
|
17,775
|
|
|
|
|
17,649
|
|
|
|||
Earnings before income taxes
|
|
4,445
|
|
|
|
|
3,983
|
|
|
|
|
4,018
|
|
|
|||
Income tax expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
806
|
|
|
|
|
1,379
|
|
|
|
|
631
|
|
|
|||
Deferred
|
|
335
|
|
|
|
|
(316
|
)
|
|
|
|
(1,217
|
)
|
|
|||
Income taxes
|
|
1,141
|
|
|
|
|
1,063
|
|
|
|
|
(586
|
)
|
|
|||
Net earnings
|
|
$
|
3,304
|
|
|
|
|
$
|
2,920
|
|
|
|
|
$
|
4,604
|
|
|
Net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
4.45
|
|
|
|
|
$
|
3.79
|
|
|
|
|
$
|
5.81
|
|
|
Diluted
|
|
4.43
|
|
|
|
|
3.77
|
|
|
|
|
5.77
|
|
|
|||
Weighted-average outstanding common shares used in
computing earnings per share (In thousands): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
742,414
|
|
|
|
|
769,588
|
|
|
|
|
792,042
|
|
|
|||
Diluted
|
|
746,430
|
|
|
|
|
774,650
|
|
|
|
|
797,861
|
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Net earnings
|
|
$
|
3,304
|
|
|
|
|
$
|
2,920
|
|
|
|
|
$
|
4,604
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses) during
period |
|
252
|
|
|
|
|
232
|
|
|
|
|
286
|
|
|
|||
Unrealized gains (losses) on fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on fixed maturity securities
during period |
|
5,870
|
|
|
|
|
(3,155
|
)
|
|
|
|
1,731
|
|
|
|||
Reclassification adjustment for realized (gains) losses on
fixed maturity securities included in net earnings |
|
(18
|
)
|
|
|
|
46
|
|
|
|
|
2
|
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
(12
|
)
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|||
Pension liability adjustment during period
|
|
(85
|
)
|
|
|
|
(25
|
)
|
|
|
|
9
|
|
|
|||
Total other comprehensive income (loss) before income taxes
|
|
6,007
|
|
|
|
|
(2,900
|
)
|
|
|
|
2,029
|
|
|
|||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
1,543
|
|
|
|
|
(797
|
)
|
|
|
|
631
|
|
|
|||
Other comprehensive income (loss), net of income taxes
|
|
4,464
|
|
|
|
|
(2,103
|
)
|
|
|
|
1,398
|
|
|
|||
Total comprehensive income (loss)
|
|
$
|
7,768
|
|
|
|
|
$
|
817
|
|
|
|
|
$
|
6,002
|
|
|
(In millions, except for share and per-share amounts)
|
2019
|
|
2018
|
|
||||
Assets:
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
||||
Fixed maturity securities available for sale, at fair value
(amortized cost $76,063 in 2019 and $73,007 in 2018) |
$
|
86,950
|
|
|
$
|
78,429
|
|
|
Fixed maturity securities available for sale - consolidated variable interest entities, at fair value
(amortized cost $3,308 in 2019 and $3,849 in 2018) |
4,312
|
|
|
4,466
|
|
|
||
Fixed maturity securities held to maturity, at amortized cost
(fair value $37,594 in 2019 and $36,722 in 2018) |
30,085
|
|
|
30,318
|
|
|
||
Equity securities, at fair value
|
802
|
|
|
987
|
|
|
||
Commercial mortgage and other loans
(includes $7,956 in 2019 and $5,528 in 2018 of consolidated variable interest entities) |
9,569
|
|
|
6,919
|
|
|
||
Other investments
(includes $494 in 2019 and $328 in 2018 of consolidated variable interest entities) |
1,477
|
|
|
787
|
|
|
||
Cash and cash equivalents
|
4,896
|
|
|
4,337
|
|
|
||
Total investments and cash
|
138,091
|
|
|
126,243
|
|
|
||
Receivables
|
828
|
|
|
851
|
|
|
||
Accrued investment income
|
772
|
|
|
773
|
|
|
||
Deferred policy acquisition costs
|
10,128
|
|
|
9,875
|
|
|
||
Property and equipment, at cost less accumulated depreciation (1)
|
581
|
|
|
443
|
|
|
||
Other
|
2,368
|
|
|
2,221
|
|
|
||
Total assets
|
$
|
152,768
|
|
|
$
|
140,406
|
|
|
Liabilities and shareholders’ equity:
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Policy liabilities:
|
|
|
|
|
||||
Future policy benefits
|
$
|
90,335
|
|
|
$
|
86,368
|
|
|
Unpaid policy claims
|
4,659
|
|
|
4,584
|
|
|
||
Unearned premiums
|
4,243
|
|
|
5,090
|
|
|
||
Other policyholders’ funds
|
7,317
|
|
|
7,146
|
|
|
||
Total policy liabilities
|
106,554
|
|
|
103,188
|
|
|
||
Income taxes
|
5,370
|
|
|
4,020
|
|
|
||
Payables for return of cash collateral on loaned securities
|
1,876
|
|
|
1,052
|
|
|
||
Notes payable and lease obligations (1)
|
6,569
|
|
|
5,778
|
|
|
||
Other
|
3,440
|
|
|
2,906
|
|
|
||
Total liabilities
|
123,809
|
|
|
116,944
|
|
|
||
Commitments and contingent liabilities (Note 15)
|
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000
shares in 2019 and 2018; issued 1,349,309 shares in 2019 and 1,347,540 shares in 2018 |
135
|
|
|
135
|
|
|
||
Additional paid-in capital
|
2,313
|
|
|
2,177
|
|
|
||
Retained earnings
|
34,291
|
|
|
31,788
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
||||
Unrealized foreign currency translation gains (losses)
|
(1,623
|
)
|
|
(1,847
|
)
|
|
||
Unrealized gains (losses) on fixed maturity securities
|
8,548
|
|
|
4,234
|
|
|
||
Unrealized gains (losses) on derivatives
|
(33
|
)
|
|
(24
|
)
|
|
||
Pension liability adjustment
|
(277
|
)
|
|
(212
|
)
|
|
||
Treasury stock, at average cost
|
(14,395
|
)
|
|
(12,789
|
)
|
|
||
Total shareholders’ equity
|
28,959
|
|
|
23,462
|
|
|
||
Total liabilities and shareholders’ equity
|
$
|
152,768
|
|
|
$
|
140,406
|
|
|
(In millions, except for per share amounts)
|
Common Stock
|
Additional Paid-in Capital
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Treasury Stock
|
Total
Shareholders' Equity |
||||||||||||
Balance at December 31, 2016
|
$
|
135
|
|
$
|
1,908
|
|
$
|
25,981
|
|
$
|
2,630
|
|
$
|
(10,172
|
)
|
$
|
20,482
|
|
Net earnings
|
0
|
|
0
|
|
4,604
|
|
0
|
|
0
|
|
4,604
|
|
||||||
Unrealized foreign currency translation
gains (losses) during period, net of income tax |
0
|
|
0
|
|
0
|
|
233
|
|
0
|
|
233
|
|
||||||
Unrealized gains (losses) on fixed maturity
securities during period, net of income taxes and reclassification adjustments |
0
|
|
0
|
|
0
|
|
1,159
|
|
0
|
|
1,159
|
|
||||||
Unrealized gains (losses) on derivatives
during period, net of income taxes |
0
|
|
0
|
|
0
|
|
1
|
|
0
|
|
1
|
|
||||||
Pension liability adjustment during period,
net of income taxes |
0
|
|
0
|
|
0
|
|
5
|
|
0
|
|
5
|
|
||||||
Dividends to shareholders
($.87 per share) |
0
|
|
0
|
|
(690
|
)
|
0
|
|
0
|
|
(690
|
)
|
||||||
Exercise of stock options
|
0
|
|
38
|
|
0
|
|
0
|
|
0
|
|
38
|
|
||||||
Share-based compensation
|
0
|
|
51
|
|
0
|
|
0
|
|
0
|
|
51
|
|
||||||
Purchases of treasury stock
|
0
|
|
0
|
|
0
|
|
0
|
|
(1,391
|
)
|
(1,391
|
)
|
||||||
Treasury stock reissued
|
0
|
|
55
|
|
0
|
|
0
|
|
51
|
|
106
|
|
||||||
Balance at December 31, 2017
|
135
|
|
2,052
|
|
29,895
|
|
4,028
|
|
(11,512
|
)
|
24,598
|
|
||||||
Cumulative effect of change in accounting
principles, net of income tax (1)
|
0
|
|
0
|
|
(226
|
)
|
226
|
|
0
|
|
0
|
|
||||||
Net earnings
|
0
|
|
0
|
|
2,920
|
|
0
|
|
0
|
|
2,920
|
|
||||||
Unrealized foreign currency translation
gains (losses) during period, net of income tax |
0
|
|
0
|
|
0
|
|
228
|
|
0
|
|
228
|
|
||||||
Unrealized gains (losses) on fixed maturity
securities during period, net of income taxes and reclassification adjustments |
0
|
|
0
|
|
0
|
|
(2,316
|
)
|
0
|
|
(2,316
|
)
|
||||||
Unrealized gains (losses) on derivatives
during period, net of income taxes |
0
|
|
0
|
|
0
|
|
2
|
|
0
|
|
2
|
|
||||||
Pension liability adjustment during period,
net of income taxes |
0
|
|
0
|
|
0
|
|
(17
|
)
|
0
|
|
(17
|
)
|
||||||
Dividends to shareholders
($1.04 per share) |
0
|
|
0
|
|
(801
|
)
|
0
|
|
0
|
|
(801
|
)
|
||||||
Exercise of stock options
|
0
|
|
34
|
|
0
|
|
0
|
|
0
|
|
34
|
|
||||||
Share-based compensation
|
0
|
|
54
|
|
0
|
|
0
|
|
0
|
|
54
|
|
||||||
Purchases of treasury stock
|
0
|
|
0
|
|
0
|
|
0
|
|
(1,317
|
)
|
(1,317
|
)
|
||||||
Treasury stock reissued
|
0
|
|
37
|
|
0
|
|
0
|
|
40
|
|
77
|
|
||||||
Balance at December 31, 2018
|
135
|
|
2,177
|
|
31,788
|
|
2,151
|
|
(12,789
|
)
|
23,462
|
|
||||||
Net earnings
|
0
|
|
0
|
|
3,304
|
|
0
|
|
0
|
|
3,304
|
|
||||||
Unrealized foreign currency translation
gains (losses) during period, net of income tax |
0
|
|
0
|
|
0
|
|
224
|
|
0
|
|
224
|
|
||||||
Unrealized gains (losses) on fixed maturity
securities during period, net of income taxes and reclassification adjustments |
0
|
|
0
|
|
0
|
|
4,314
|
|
0
|
|
4,314
|
|
||||||
Unrealized gains (losses) on derivatives
during period, net of income taxes |
0
|
|
0
|
|
0
|
|
(9
|
)
|
0
|
|
(9
|
)
|
||||||
Pension liability adjustment during period,
net of income taxes |
0
|
|
0
|
|
0
|
|
(65
|
)
|
0
|
|
(65
|
)
|
||||||
Dividends to shareholders
($1.08 per share) |
0
|
|
0
|
|
(801
|
)
|
0
|
|
0
|
|
(801
|
)
|
||||||
Exercise of stock options
|
0
|
|
29
|
|
0
|
|
0
|
|
0
|
|
29
|
|
||||||
Share-based compensation
|
0
|
|
54
|
|
0
|
|
0
|
|
0
|
|
54
|
|
||||||
Purchases of treasury stock
|
0
|
|
0
|
|
0
|
|
0
|
|
(1,656
|
)
|
(1,656
|
)
|
||||||
Treasury stock reissued
|
0
|
|
53
|
|
0
|
|
0
|
|
50
|
|
103
|
|
||||||
Balance at December 31, 2019
|
$
|
135
|
|
$
|
2,313
|
|
$
|
34,291
|
|
$
|
6,615
|
|
$
|
(14,395
|
)
|
$
|
28,959
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings
|
|
$
|
3,304
|
|
|
|
|
$
|
2,920
|
|
|
|
|
$
|
4,604
|
|
|
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in receivables and advance premiums
|
|
(32
|
)
|
|
|
|
(55
|
)
|
|
|
|
(91
|
)
|
|
|||
Capitalization of deferred policy acquisition costs
|
|
(1,452
|
)
|
|
|
|
(1,504
|
)
|
|
|
|
(1,468
|
)
|
|
|||
Amortization of deferred policy acquisition costs
|
|
1,282
|
|
|
|
|
1,245
|
|
|
|
|
1,132
|
|
|
|||
Increase in policy liabilities
|
|
2,104
|
|
|
|
|
2,343
|
|
|
|
|
2,890
|
|
|
|||
Change in income tax liabilities
|
|
(244
|
)
|
|
|
|
64
|
|
|
|
|
(1,240
|
)
|
|
|||
Realized investment (gains) losses
|
|
135
|
|
|
|
|
430
|
|
|
|
|
151
|
|
|
|||
Other, net
|
|
358
|
|
|
|
|
571
|
|
|
|
|
150
|
|
|
|||
Net cash provided (used) by operating activities
|
|
5,455
|
|
|
|
|
6,014
|
|
|
|
|
6,128
|
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Proceeds from investments sold or matured:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available-for-sale fixed maturity securities
|
|
5,284
|
|
|
|
|
7,888
|
|
|
|
|
4,680
|
|
|
|||
Equity securities
|
|
650
|
|
|
|
|
429
|
|
|
|
|
902
|
|
|
|||
Held-to-maturity fixed maturity securities
|
|
622
|
|
|
|
|
1,670
|
|
|
|
|
2,212
|
|
|
|||
Commercial mortgage and other loans
|
|
1,814
|
|
|
|
|
936
|
|
|
|
|
303
|
|
|
|||
Costs of investments acquired:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Available-for-sale fixed maturity securities
|
|
(6,934
|
)
|
|
|
|
(9,086
|
)
|
|
|
|
(9,867
|
)
|
|
|||
Equity securities
|
|
(347
|
)
|
|
|
|
(440
|
)
|
|
|
|
(446
|
)
|
|
|||
Commercial mortgage and other loans
|
|
(4,401
|
)
|
|
|
|
(4,848
|
)
|
|
|
|
(2,115
|
)
|
|
|||
Other investments, net
|
|
(653
|
)
|
|
|
|
(414
|
)
|
|
|
|
(206
|
)
|
|
|||
Settlement of derivatives, net
|
|
(9
|
)
|
|
|
|
(241
|
)
|
|
|
|
(621
|
)
|
|
|||
Cash received (pledged or returned) as collateral, net
|
|
926
|
|
|
|
|
348
|
|
|
|
|
(205
|
)
|
|
|||
Other, net
|
|
(123
|
)
|
|
|
|
176
|
|
|
|
|
(68
|
)
|
|
|||
Net cash provided (used) by investing activities
|
|
(3,171
|
)
|
|
|
|
(3,582
|
)
|
|
|
|
(5,431
|
)
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of treasury stock
|
|
(1,627
|
)
|
|
|
|
(1,301
|
)
|
|
|
|
(1,351
|
)
|
|
|||
Proceeds from borrowings
|
|
615
|
|
|
|
|
1,020
|
|
|
|
|
1,040
|
|
|
|||
Principal payments under debt obligations
|
|
0
|
|
|
|
|
(550
|
)
|
|
|
|
(1,161
|
)
|
|
|||
Dividends paid to shareholders
|
|
(771
|
)
|
|
|
|
(793
|
)
|
|
|
|
(661
|
)
|
|
|||
Change in investment-type contracts, net
|
|
(1
|
)
|
|
|
|
(31
|
)
|
|
|
|
35
|
|
|
|||
Treasury stock reissued
|
|
49
|
|
|
|
|
58
|
|
|
|
|
33
|
|
|
|||
Other, net
|
|
22
|
|
|
|
|
(19
|
)
|
|
|
|
0
|
|
|
|||
Net cash provided (used) by financing activities
|
|
(1,713
|
)
|
|
|
|
(1,616
|
)
|
|
|
|
(2,065
|
)
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
(12
|
)
|
|
|
|
30
|
|
|
|
|
0
|
|
|
|||
Net change in cash and cash equivalents
|
|
559
|
|
|
|
|
846
|
|
|
|
|
(1,368
|
)
|
|
|||
Cash and cash equivalents, beginning of period
|
|
4,337
|
|
|
|
|
3,491
|
|
|
|
|
4,859
|
|
|
|||
Cash and cash equivalents, end of period
|
|
$
|
4,896
|
|
|
|
|
$
|
4,337
|
|
|
|
|
$
|
3,491
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income taxes paid
|
|
$
|
1,384
|
|
|
|
|
$
|
998
|
|
|
|
|
$
|
780
|
|
|
Interest paid
|
|
190
|
|
|
|
|
181
|
|
|
|
|
196
|
|
|
|||
Noncash interest
|
|
37
|
|
|
|
|
41
|
|
|
|
|
44
|
|
|
|||
Impairment losses and loan loss reserves included in realized investment losses
|
|
31
|
|
|
|
|
81
|
|
|
|
|
37
|
|
|
|||
Noncash financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Lease obligations
|
|
132
|
|
|
|
|
11
|
|
|
|
|
12
|
|
|
|||
Treasury stock issued for:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Associate stock bonus
|
|
15
|
|
|
|
|
7
|
|
|
|
|
29
|
|
|
|||
Shareholder dividend reinvestment
|
|
30
|
|
|
|
|
8
|
|
|
|
|
29
|
|
|
|||
Share-based compensation grants
|
|
5
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
Standard
|
Description
|
Date of Adoption
|
Effect on Financial Statements or Other Significant Matters
|
Accounting Standard Update (ASU) 2018-16 Derivatives and Hedging Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes
|
In October 2018, the FASB issued amendments to permit use of the Overnight Index Swap (OIS) rate based on the Secured Overnight Financing Rate (SOFR) as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the Treasury obligations of the U.S. government (UST), the London Interbank Offered Rate (LIBOR) swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate.
|
Early adopted as of October 1, 2018
|
The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations or disclosures.
|
ASU 2018-15
Intangibles - Goodwill and Other - Internal-Use Software, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
In August 2018, the FASB issued amendments to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software.
|
Early adopted as of January 1, 2019
|
The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations or disclosures.
|
Standard
|
Description
|
Date of Adoption
|
Effect on Financial Statements or Other Significant Matters
|
ASU 2018-14
Compensation - Retirement Benefits - Defined Benefit Plans - General, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans |
In August 2018, the FASB issued amendments to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Accordingly, six disclosures requirements were removed, two added and two clarified.
|
Early adopted as of December 31, 2019
|
The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations or disclosures.
|
ASU 2018-03
Technical Corrections and Improvements to Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities
|
In February 2018, the FASB issued amendments to clarify certain aspects of the guidance issued in the original Financial Instruments - Overall - Recognition and Measurement pronouncement summarized below. Specifically, for entities who have chosen the measurement alternative approach for equity securities without readily determinable fair values, the amendments clarify that entities may change from a measurement alternative approach to a fair value method through an irrevocable election that would apply to a specific equity security and all identical or similar investments of the same issuer; entities should use an observable price at the date of the transaction rather than reporting date for the measurement alternative calculation; and insurance companies should use a prospective transition method when applying the measurement alternative.
|
Early adopted as of January 1, 2018
|
The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations, or disclosures.
|
ASU 2018-02
Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
In February 2018, the FASB issued amendments which allow a reclassification from accumulated other comprehensive income (AOCI) to retained earnings of the effects of the change in the U.S. federal income tax rate resulting from the Tax Cuts and Jobs Act (Tax Act) on the gross deferred tax amounts and the corresponding valuation allowances related to items remaining in AOCI. The amendments eliminate the stranded tax effects resulting from the Tax Act and also require certain disclosures about the reclassified tax effects.
|
Early adopted as of January 1, 2018
|
The amounts reclassified from
AOCI to retained earnings include the income tax effects of the change in the federal corporate tax rate enacted by the Tax Act. The Company’s policy is to follow the portfolio approach for releasing income tax effects from AOCI. The adoption of this guidance resulted in an increase to beginning 2018 AOCI of $374 million with a corresponding decrease to beginning 2018 retained earnings as of January 1, 2018.
|
ASU 2017-12
Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities |
In August 2017, the FASB issued guidance which improves and simplifies the accounting rules around hedge accounting and creates more transparency around how economic results are presented in financial statements. Issues addressed in this new guidance include: 1) risk component hedging, 2) accounting for the hedged item in fair value hedges of interest rate risk, 3) recognition and presentation of the effects of hedging instruments, and 4) amounts excluded from the assessment of hedge effectiveness.
|
Early adopted as of October 1, 2018
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
|
Standard
|
Description
|
Date of Adoption
|
Effect on Financial Statements or Other Significant Matters
|
ASU 2017-09 Compensation - Stock Compensation: Scope of Modification Accounting
|
In May 2017, the FASB issued amendments to provide guidance clarifying when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. An entity should apply modification accounting if the fair value, vesting conditions or classification of the award (as an equity instrument or liability instrument) changes as a result of the change in terms or conditions of the award.
|
January 1, 2018
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
|
ASU 2017-08
Receivables - Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities
|
In March 2017, the FASB issued amendments to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount.
|
Early adopted as of July 1, 2018
|
The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations, or disclosures.
|
ASU 2017-07
Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost
|
In March 2017, the FASB issued amendments requiring that an employer report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic pension cost and net periodic postretirement benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable.
|
January 1, 2018
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
|
ASU 2017-05
Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets
|
In February 2017, the FASB issued amendments that clarify the scope and accounting guidance for the derecognition of a nonfinancial asset or a financial asset that meets the definition of an "in substance nonfinancial asset." The amendments define an "in substance nonfinancial asset" and provide additional accounting guidance for partial sales of nonfinancial assets.
|
January 1, 2018
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
|
ASU 2017-01
Business Combinations: Clarifying the Definition of a Business
|
In January 2017, the FASB issued amendments clarifying when a set of assets and activities is a business. The amendments provide a screen to exclude transactions where substantially all the fair value of the transferred set is concentrated in a single asset, or group of similar assets, from being evaluated as a business.
|
January 1, 2018
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
|
Standard
|
Description
|
Date of Adoption
|
Effect on Financial Statements or Other Significant Matters
|
ASU 2016-18
Statement of Cash Flows: Restricted Cash
|
In November 2016, the FASB issued amendments requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents.
|
January 1, 2018
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, statements of cash flows, or disclosures.
|
ASU 2016-17
Consolidation - Interests Held through Related Parties That Are under Common Control
|
In October 2016, the FASB issued amendments which clarify the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE.
|
January 1, 2017
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
|
ASU 2016-16
Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory
|
In October 2016, the FASB issued amendments that require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs.
|
January 1, 2018
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
|
ASU 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments
|
In August 2016, the FASB issued amendments that provide guidance on eight specific statement of cash flow classification issues, including distributions received from equity method investees.
|
January 1, 2018
|
The Company elected nature of distribution for distributions received from equity method investees. The adoption of this guidance did not have a significant impact on the Company's financial position, statement of cash flows, results of operations, or disclosures.
|
ASU 2016-09
Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting
|
In March 2016, the FASB issued amendments which simplify several aspects for share-based payment award transactions, including the income tax consequences, classification of awards as either liability or equity, classification of taxes paid on the statement of cash flows and treatment of forfeitures.
|
January 1, 2017
|
As a result of applying this requirement, the Company believes that recognition of excess tax benefits will increase volatility in its statement of operations and the Company made an entity-wide accounting policy election to estimate the number of awards that are expected to vest (consistent with the Company's prior policy), but the adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, statements of cash flows, or disclosures.
|
ASU 2016-07
Investments - Equity Method and Joint Ventures - Simplifying the Transition to the Equity Method of
Accounting
|
In March 2016, the FASB issued amendments which eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. Per the amendments, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required.
|
January 1, 2017
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
|
Standard
|
Description
|
Date of Adoption
|
Effect on Financial Statements or Other Significant Matters
|
ASU 2016-06
Derivatives and Hedging - Contingent Put and Call Options in Debt Instruments
|
In March 2016, the FASB issued amendments which clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks.
|
January 1, 2017
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
|
ASU 2016-05
Derivatives and Hedging - Effect of Derivative Contract Novations on Existing Hedge Accounting
Relationships
|
In March 2016, the FASB issued amendments which clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria remain intact.
|
January 1, 2017
|
The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
|
Standard
|
Description
|
Date of Adoption
|
Effect on Financial Statements or Other Significant Matters
|
ASU 2016-02
Leases as clarified and amended by: ASU 2018-01, Leases: Land Easement Practical Expedient for Transition to Topic 842, ASU 2018-10, Codification Improvements to Topic 842, Leases, ASU 2018-11, Leases, Targeted Improvements, and ASU 2018-20, Leases: Narrow-Scope Improvements for Lessors |
In February 2016, the FASB issued updated guidance for accounting for leases (“Leases Update”). Per the Leases Update, lessees are required to recognize all leases on the balance sheet with the exception of short-term leases. A lease liability will be recorded for the obligation of a lessee to make lease payments arising from a lease. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Leases Update provided a number of optional practical expedients. The Company elected the "package of practical expedients," which permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. Under the Leases Update, lessor accounting is largely unchanged.
In January 2018, an amendment was issued to the Leases Update which provided an entity with the option to elect a transition practical expedient to not evaluate land easements that exist or expired before the entity's adoption of the Leases Update and that were not previously accounted for as leases. In July 2018, the FASB issued two amendments to the Leases Update which clarified, corrected errors in, or made minor improvements to the Leases Update and provided entities with an optional transition method to adopt the Leases Update by recording a cumulative-effect adjustment to beginning retained earnings. Additionally, the amendments provided lessors with a practical expedient to not separate nonlease components from associated lease components and instead account for those components as a single component under certain conditions. In December 2018, an amendment to the Leases Update was issued to clarify: 1) lessor accounting for all sales (and other similar) taxes; 2) the handling of certain lessor costs when the amount of those costs is not readily determinable; and 3) lessor allocation of certain variable payments to the lease and non-lease components. |
January 1, 2019
|
The Company has operating and finance leases for office space and equipment. The Company elected the short-term lease exemption for all classes of leases which allows the Company to not recognize right-of-use assets and lease liabilities on the consolidated balance sheet and allows the Company to recognize the lease expense for short-term leases on a straight-line basis over the lease term. The Company elected the practical expedient to not separate lease and non-lease components and applied it to all classes of leases where the non-lease components are not significant. Some of the Company's leases include options to extend or terminate the lease and the lease terms may include such options when it is reasonably certain that the Company will exercise that option. Certain leases also include options to purchase the leased property. The leases within scope of the leases update increased the Company's right-of-use assets and lease liabilities recorded in its consolidated balance sheet by $134 million.
As of January 1, 2019, the Company did not have land easements, but has elected the practical expedient as a safe harbor. The Company elected the optional transition method and as a safe harbor, the practical expedient provided to lessors. The Company has made an accounting policy election to exclude amounts collected from customers for all sales (and other similar) taxes from the transaction price. The adoption of the Leases Update and related amendments did not have a significant impact on the Company's financial position, results of operations, or disclosures. |
Standard
|
Description
|
Date of Adoption
|
Effect on Financial Statements or Other Significant Matters
|
ASU 2016-01
Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities
|
In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions of this guidance require certain equity investments to be measured at fair value with changes in fair value recognized in net earnings; separate presentation in other comprehensive income for changes in fair value of financial liabilities measured under the fair value option that are due to instrument-specific credit risk; and changes in disclosures associated with the fair value of financial instruments. The guidance also clarifies that entities should evaluate the need for a valuation allowance on a deferred tax asset (DTA) related to available-for-sale (AFS) securities in combination with the entity's other DTAs.
|
January 1, 2018
|
The Company recorded a cumulative effect adjustment with an increase to beginning 2018 retained earnings and a decrease to beginning 2018 AOCI of $148 million, net of taxes.
|
Standard
|
Description
|
Effect on Financial Statements or Other Significant Matters
|
ASU 2020-01
Clarifying the interactions between Topic 321, Topic 323, and Topic 815
|
In January 2020, the FASB issued amendments clarifying that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method.
In addition, the amendments clarify that for the purpose of applying certain derivative guidance in Topic 815, an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. An entity also would evaluate the remaining characteristics in Topic 815 to determine the accounting for those forward contracts and purchased options.
The amendments are effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted.
|
The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures.
|
2.
|
BUSINESS SEGMENT AND FOREIGN INFORMATION
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earned premiums:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cancer
|
|
$
|
6,031
|
|
|
|
|
$
|
5,849
|
|
|
|
|
$
|
5,612
|
|
|
Medical and other health
|
|
3,582
|
|
|
|
|
3,516
|
|
|
|
|
3,379
|
|
|
|||
Life insurance
|
|
3,159
|
|
|
|
|
3,397
|
|
|
|
|
3,761
|
|
|
|||
Net investment income, less amortized hedge costs (1),(2)
|
|
2,496
|
|
|
|
|
2,403
|
|
|
|
|
2,235
|
|
|
|||
Other income
|
|
45
|
|
|
|
|
41
|
|
|
|
|
41
|
|
|
|||
Total Aflac Japan
|
|
15,313
|
|
|
|
|
15,206
|
|
|
|
|
15,028
|
|
|
|||
Aflac U.S.:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earned premiums:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accident/disability
|
|
2,665
|
|
|
|
|
2,611
|
|
|
|
|
2,537
|
|
|
|||
Cancer
|
|
1,309
|
|
|
|
|
1,311
|
|
|
|
|
1,308
|
|
|
|||
Other health
|
|
1,548
|
|
|
|
|
1,508
|
|
|
|
|
1,445
|
|
|
|||
Life insurance
|
|
286
|
|
|
|
|
278
|
|
|
|
|
273
|
|
|
|||
Net investment income
|
|
720
|
|
|
|
|
727
|
|
|
|
|
721
|
|
|
|||
Other income
|
|
22
|
|
|
|
|
8
|
|
|
|
|
5
|
|
|
|||
Total Aflac U.S.
|
|
6,550
|
|
|
|
|
6,443
|
|
|
|
|
6,289
|
|
|
|||
Corporate and other (3)
|
|
393
|
|
|
|
|
339
|
|
|
|
|
272
|
|
|
|||
Total adjusted revenues
|
|
22,256
|
|
|
|
|
21,988
|
|
|
|
|
21,589
|
|
|
|||
Realized investment gains (losses) (1),(2),(3)
|
|
51
|
|
|
|
|
(230
|
)
|
|
|
|
78
|
|
|
|||
Total revenues
|
|
$
|
22,307
|
|
|
|
|
$
|
21,758
|
|
|
|
|
$
|
21,667
|
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Pretax earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan (1),(2)
|
|
$
|
3,261
|
|
|
|
|
$
|
3,208
|
|
|
|
|
$
|
3,054
|
|
|
Aflac U.S.
|
|
1,272
|
|
|
|
|
1,285
|
|
|
|
|
1,245
|
|
|
|||
Corporate and other (3),(4)
|
|
(72
|
)
|
|
|
|
(139
|
)
|
|
|
|
(212
|
)
|
|
|||
Pretax adjusted earnings (5)
|
|
4,461
|
|
|
|
|
4,354
|
|
|
|
|
4,087
|
|
|
|||
Realized investment gains (losses) (1),(2),(3),(4)
|
|
(15
|
)
|
|
|
|
(297
|
)
|
|
|
|
0
|
|
|
|||
Other income (loss) (6)
|
|
(1
|
)
|
|
|
|
(74
|
)
|
|
|
|
(69
|
)
|
|
|||
Total earnings before income taxes
|
|
$
|
4,445
|
|
|
|
|
$
|
3,983
|
|
|
|
|
$
|
4,018
|
|
|
Income taxes applicable to pretax adjusted earnings
|
|
$
|
1,147
|
|
|
|
|
$
|
1,129
|
|
|
|
|
$
|
1,370
|
|
|
Effect of foreign currency translation on after-tax
adjusted earnings |
|
15
|
|
|
|
|
28
|
|
|
|
|
(41
|
)
|
|
(In millions)
|
2019
|
|
2018
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||
Aflac Japan
|
|
$
|
127,523
|
|
|
|
|
$
|
118,342
|
|
|
|
Aflac U.S.
|
|
20,945
|
|
|
|
|
19,100
|
|
|
|
||
Corporate and other
|
|
4,300
|
|
|
|
|
2,964
|
|
|
|
||
Total assets
|
|
$
|
152,768
|
|
|
|
|
$
|
140,406
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Statements of Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average yen/dollar exchange rate (1)
|
|
109.07
|
|
|
|
|
110.39
|
|
|
|
|
112.16
|
|
|
|||
Yen percent strengthening (weakening)
|
|
1.2
|
%
|
|
|
|
1.6
|
%
|
|
|
|
(3.1
|
)%
|
|
|||
Exchange effect on pretax adjusted earnings (in millions)
|
|
$
|
20
|
|
|
|
|
$
|
38
|
|
|
|
|
$
|
(63
|
)
|
|
|
2019
|
|
2018
|
||||||||
Balance Sheets:
|
|
|
|
|
|
|
|
||||
Yen/dollar exchange rate at December 31(1)
|
|
109.56
|
|
|
|
|
111.00
|
|
|
||
Yen percent strengthening (weakening)
|
|
1.3
|
%
|
|
|
|
1.8
|
%
|
|
||
Exchange effect on total assets (in millions)
|
|
$
|
1,225
|
|
|
|
|
$
|
1,362
|
|
|
Exchange effect on total liabilities (in millions)
|
|
1,533
|
|
|
|
|
1,270
|
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Management fees
|
|
$
|
75
|
|
|
|
|
$
|
136
|
|
|
|
|
$
|
93
|
|
|
Allocated expenses
|
|
4
|
|
|
|
|
24
|
|
|
|
|
109
|
|
|
|||
Profit remittances
|
|
2,070
|
|
|
|
|
808
|
|
|
|
|
1,150
|
|
|
|||
Total transfers from Aflac Japan
|
|
$
|
2,149
|
|
|
|
|
$
|
968
|
|
|
|
|
$
|
1,352
|
|
|
(In millions)
|
2019
|
|
2018
|
||||||||
Property and equipment:
|
|
|
|
|
|
|
|
||||
Land
|
|
$
|
168
|
|
|
|
|
$
|
168
|
|
|
Buildings
|
|
473
|
|
|
|
|
456
|
|
|
||
Equipment and furniture
|
|
549
|
|
|
|
|
400
|
|
|
||
Total property and equipment
|
|
1,190
|
|
|
|
|
1,024
|
|
|
||
Less accumulated depreciation
|
|
609
|
|
|
|
|
581
|
|
|
||
Net property and equipment
|
|
$
|
581
|
|
|
|
|
$
|
443
|
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Fixed maturity securities
|
|
$
|
3,141
|
|
|
|
|
$
|
3,142
|
|
|
|
|
$
|
3,173
|
|
|
Equity securities
|
|
37
|
|
|
|
|
38
|
|
|
|
|
42
|
|
|
|||
Commercial mortgage and other loans
|
|
468
|
|
|
|
|
333
|
|
|
|
|
86
|
|
|
|||
Other investments
|
|
53
|
|
|
|
|
36
|
|
|
|
|
8
|
|
|
|||
Short-term investments and cash equivalents
|
|
56
|
|
|
|
|
41
|
|
|
|
|
25
|
|
|
|||
Gross investment income
|
|
3,755
|
|
|
|
|
3,590
|
|
|
|
|
3,334
|
|
|
|||
Less investment expenses
|
|
177
|
|
|
|
|
148
|
|
|
|
|
114
|
|
|
|||
Net investment income
|
|
$
|
3,578
|
|
|
|
|
$
|
3,442
|
|
|
|
|
$
|
3,220
|
|
|
|
2019
|
||||||||||||||||||||||
(In millions)
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||||||||||
Securities available for sale, carried at fair value
through other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Japan government and agencies
|
|
$
|
30,929
|
|
|
|
|
$
|
5,169
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
36,098
|
|
|
Municipalities
|
|
516
|
|
|
|
|
116
|
|
|
|
|
3
|
|
|
|
|
629
|
|
|
||||
Mortgage- and asset-backed securities
|
|
229
|
|
|
|
|
25
|
|
|
|
|
0
|
|
|
|
|
254
|
|
|
||||
Public utilities
|
|
1,855
|
|
|
|
|
406
|
|
|
|
|
0
|
|
|
|
|
2,261
|
|
|
||||
Sovereign and supranational
|
|
680
|
|
|
|
|
50
|
|
|
|
|
0
|
|
|
|
|
730
|
|
|
||||
Banks/financial institutions
|
|
6,152
|
|
|
|
|
700
|
|
|
|
|
86
|
|
|
|
|
6,766
|
|
|
||||
Other corporate
|
|
5,323
|
|
|
|
|
944
|
|
|
|
|
24
|
|
|
|
|
6,243
|
|
|
||||
Total yen-denominated
|
|
45,684
|
|
|
|
|
7,410
|
|
|
|
|
113
|
|
|
|
|
52,981
|
|
|
||||
U.S. dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
293
|
|
|
|
|
9
|
|
|
|
|
0
|
|
|
|
|
302
|
|
|
||||
Municipalities
|
|
1,077
|
|
|
|
|
141
|
|
|
|
|
0
|
|
|
|
|
1,218
|
|
|
||||
Mortgage- and asset-backed securities
|
|
149
|
|
|
|
|
7
|
|
|
|
|
0
|
|
|
|
|
156
|
|
|
||||
Public utilities
|
|
3,804
|
|
|
|
|
725
|
|
|
|
|
10
|
|
|
|
|
4,519
|
|
|
||||
Sovereign and supranational
|
|
239
|
|
|
|
|
73
|
|
|
|
|
0
|
|
|
|
|
312
|
|
|
||||
Banks/financial institutions
|
|
2,879
|
|
|
|
|
646
|
|
|
|
|
4
|
|
|
|
|
3,521
|
|
|
||||
Other corporate
|
|
25,246
|
|
|
|
|
3,255
|
|
|
|
|
248
|
|
|
|
|
28,253
|
|
|
||||
Total U.S. dollar-denominated
|
|
33,687
|
|
|
|
|
4,856
|
|
|
|
|
262
|
|
|
|
|
38,281
|
|
|
||||
Total securities available for sale
|
|
$
|
79,371
|
|
|
|
|
$
|
12,266
|
|
|
|
|
$
|
375
|
|
|
|
|
$
|
91,262
|
|
|
|
2018
|
||||||||||||||||||||||
(In millions)
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||||||||||
Securities available for sale, carried at fair value
through other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Japan government and agencies
|
|
$
|
30,637
|
|
|
|
|
$
|
3,700
|
|
|
|
|
$
|
140
|
|
|
|
|
$
|
34,197
|
|
|
Municipalities
|
|
385
|
|
|
|
|
32
|
|
|
|
|
9
|
|
|
|
|
408
|
|
|
||||
Mortgage- and asset-backed securities
|
|
155
|
|
|
|
|
22
|
|
|
|
|
0
|
|
|
|
|
177
|
|
|
||||
Public utilities
|
|
1,732
|
|
|
|
|
280
|
|
|
|
|
4
|
|
|
|
|
2,008
|
|
|
||||
Sovereign and supranational
|
|
826
|
|
|
|
|
123
|
|
|
|
|
0
|
|
|
|
|
949
|
|
|
||||
Banks/financial institutions
|
|
5,440
|
|
|
|
|
502
|
|
|
|
|
238
|
|
|
|
|
5,704
|
|
|
||||
Other corporate
|
|
4,852
|
|
|
|
|
649
|
|
|
|
|
44
|
|
|
|
|
5,457
|
|
|
||||
Total yen-denominated
|
|
44,027
|
|
|
|
|
5,308
|
|
|
|
|
435
|
|
|
|
|
48,900
|
|
|
||||
U.S dollar-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
|
137
|
|
|
|
|
9
|
|
|
|
|
1
|
|
|
|
|
145
|
|
|
||||
Municipalities
|
|
1,343
|
|
|
|
|
120
|
|
|
|
|
8
|
|
|
|
|
1,455
|
|
|
||||
Mortgage- and asset-backed securities
|
|
155
|
|
|
|
|
8
|
|
|
|
|
1
|
|
|
|
|
162
|
|
|
||||
Public utilities
|
|
4,772
|
|
|
|
|
496
|
|
|
|
|
105
|
|
|
|
|
5,163
|
|
|
||||
Sovereign and supranational
|
|
251
|
|
|
|
|
60
|
|
|
|
|
0
|
|
|
|
|
311
|
|
|
||||
Banks/financial institutions
|
|
2,860
|
|
|
|
|
389
|
|
|
|
|
35
|
|
|
|
|
3,214
|
|
|
||||
Other corporate
|
|
23,311
|
|
|
|
|
1,343
|
|
|
|
|
1,109
|
|
|
|
|
23,545
|
|
|
||||
Total U.S. dollar-denominated
|
|
32,829
|
|
|
|
|
2,425
|
|
|
|
|
1,259
|
|
|
|
|
33,995
|
|
|
||||
Total securities available for sale
|
|
$
|
76,856
|
|
|
|
|
$
|
7,733
|
|
|
|
|
$
|
1,694
|
|
|
|
|
$
|
82,895
|
|
|
|
2019
|
||||||||||||||||||||||
(In millions)
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||||||||||
Securities held to maturity, carried at amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Japan government and agencies
|
|
$
|
22,241
|
|
|
|
|
$
|
6,050
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
28,291
|
|
|
Municipalities
|
|
821
|
|
|
|
|
262
|
|
|
|
|
0
|
|
|
|
|
1,083
|
|
|
||||
Mortgage- and asset-backed securities
|
|
16
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
17
|
|
|
||||
Public utilities
|
|
2,535
|
|
|
|
|
419
|
|
|
|
|
0
|
|
|
|
|
2,954
|
|
|
||||
Sovereign and supranational
|
|
1,123
|
|
|
|
|
197
|
|
|
|
|
0
|
|
|
|
|
1,320
|
|
|
||||
Banks/financial institutions
|
|
916
|
|
|
|
|
105
|
|
|
|
|
3
|
|
|
|
|
1,018
|
|
|
||||
Other corporate
|
|
2,433
|
|
|
|
|
485
|
|
|
|
|
7
|
|
|
|
|
2,911
|
|
|
||||
Total yen-denominated
|
|
30,085
|
|
|
|
|
7,519
|
|
|
|
|
10
|
|
|
|
|
37,594
|
|
|
||||
Total securities held to maturity
|
|
$
|
30,085
|
|
|
|
|
$
|
7,519
|
|
|
|
|
$
|
10
|
|
|
|
|
$
|
37,594
|
|
|
|
2018
|
||||||||||||||||||||||
(In millions)
|
Cost or
Amortized Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||||||||||
Securities held to maturity, carried at amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Yen-denominated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Japan government and agencies
|
|
$
|
21,712
|
|
|
|
|
$
|
5,326
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
27,038
|
|
|
Municipalities
|
|
359
|
|
|
|
|
110
|
|
|
|
|
0
|
|
|
|
|
469
|
|
|
||||
Mortgage- and asset-backed securities
|
|
14
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
15
|
|
|
||||
Public utilities
|
|
2,727
|
|
|
|
|
254
|
|
|
|
|
8
|
|
|
|
|
2,973
|
|
|
||||
Sovereign and supranational
|
|
1,551
|
|
|
|
|
289
|
|
|
|
|
0
|
|
|
|
|
1,840
|
|
|
||||
Banks/financial institutions
|
|
1,445
|
|
|
|
|
158
|
|
|
|
|
20
|
|
|
|
|
1,583
|
|
|
||||
Other corporate
|
|
2,510
|
|
|
|
|
332
|
|
|
|
|
38
|
|
|
|
|
2,804
|
|
|
||||
Total yen-denominated
|
|
30,318
|
|
|
|
|
6,470
|
|
|
|
|
66
|
|
|
|
|
36,722
|
|
|
||||
Total securities held to maturity
|
|
$
|
30,318
|
|
|
|
|
$
|
6,470
|
|
|
|
|
$
|
66
|
|
|
|
|
$
|
36,722
|
|
|
|
2019
|
|
2018
|
||||||||
(In millions)
|
Fair Value
|
|
Fair Value
|
||||||||
Equity securities, carried at fair value through net earnings:
|
|
|
|
|
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||
Yen-denominated
|
|
$
|
658
|
|
|
|
|
$
|
641
|
|
|
U.S. dollar-denominated
|
|
144
|
|
|
|
|
346
|
|
|
||
Total equity securities
|
|
$
|
802
|
|
|
|
|
$
|
987
|
|
|
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|||||||
Available for sale:
|
|
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
583
|
|
|
|
|
$
|
612
|
|
Due after one year through five years
|
|
7,933
|
|
|
|
|
8,122
|
|
||
Due after five years through 10 years
|
|
11,347
|
|
|
|
|
12,819
|
|
||
Due after 10 years
|
|
59,130
|
|
|
|
|
69,299
|
|
||
Mortgage- and asset-backed securities
|
|
378
|
|
|
|
|
410
|
|
||
Total fixed maturity securities available for sale
|
|
$
|
79,371
|
|
|
|
|
$
|
91,262
|
|
Held to maturity:
|
|
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
265
|
|
|
|
|
$
|
270
|
|
Due after one year through five years
|
|
1,227
|
|
|
|
|
1,330
|
|
||
Due after five years through 10 years
|
|
532
|
|
|
|
|
599
|
|
||
Due after 10 years
|
|
28,045
|
|
|
|
|
35,378
|
|
||
Mortgage- and asset-backed securities
|
|
16
|
|
|
|
|
17
|
|
||
Total fixed maturity securities held to maturity
|
|
$
|
30,085
|
|
|
|
|
$
|
37,594
|
|
|
2019
|
|
2018
|
||||||||
(In millions)
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
|
Credit
Rating |
|
Amortized
Cost |
|
Fair
Value |
Japan National Government(1)
|
A+
|
|
$51,726
|
|
$62,584
|
|
A+
|
|
$51,207
|
|
$59,945
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
||||||
Realized investment gains (losses):
|
|
|
|
|
|
|
||||||
Fixed maturity securities:
|
|
|
|
|
|
|
||||||
Available for sale:
|
|
|
|
|
|
|
||||||
Gross gains from sales
|
$
|
115
|
|
|
$
|
101
|
|
|
$
|
51
|
|
|
Gross losses from sales
|
(68
|
)
|
|
(156
|
)
|
|
(68
|
)
|
|
|||
Foreign currency gains (losses) on sales and redemptions
|
(16
|
)
|
|
73
|
|
|
(48
|
)
|
|
|||
Other-than-temporary impairment losses
|
(13
|
)
|
|
(64
|
)
|
|
(7
|
)
|
|
|||
Total fixed maturity securities
|
18
|
|
|
(46
|
)
|
|
(72
|
)
|
|
|||
Equity securities
|
101
|
|
|
(131
|
)
|
|
71
|
|
(1)
|
|||
Loan receivables:
|
|
|
|
|
|
|
||||||
Loan loss reserves
|
(18
|
)
|
|
(19
|
)
|
|
(8
|
)
|
|
|||
Total loan receivables
|
(18
|
)
|
|
(19
|
)
|
|
(8
|
)
|
|
|||
Derivatives and other:
|
|
|
|
|
|
|
||||||
Derivative gains (losses)
|
(174
|
)
|
|
(224
|
)
|
|
(109
|
)
|
|
|||
Foreign currency gains (losses)
|
(62
|
)
|
|
(10
|
)
|
|
(33
|
)
|
|
|||
Total derivatives and other
|
(236
|
)
|
|
(234
|
)
|
|
(142
|
)
|
|
|||
Total realized investment gains (losses)
|
$
|
(135
|
)
|
|
$
|
(430
|
)
|
|
$
|
(151
|
)
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Changes in unrealized gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities, available for sale
|
|
$
|
5,852
|
|
|
|
|
$
|
(3,142
|
)
|
|
|
|
$
|
1,657
|
|
|
Equity securities
|
|
0
|
|
|
|
|
0
|
|
|
|
|
71
|
|
|
|||
Total change in unrealized gains (losses)
|
|
$
|
5,852
|
|
|
|
|
$
|
(3,142
|
)
|
|
|
|
$
|
1,728
|
|
|
(In millions)
|
2019
|
|
2018
|
||||||||
Unrealized gains (losses) on securities available for sale
|
|
$
|
11,891
|
|
|
|
|
$
|
6,039
|
|
|
Deferred income taxes
|
|
(3,343
|
)
|
|
|
|
(1,805
|
)
|
|
||
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities
|
|
$
|
8,548
|
|
|
|
|
$
|
4,234
|
|
|
|
2019
|
||||||||||||||||||||||||||||||||||
|
Total
|
|
Less than 12 months
|
|
12 months or longer
|
||||||||||||||||||||||||||||||
(In millions)
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
$
|
80
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
80
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
306
|
|
|
|
|
10
|
|
|
|
|
69
|
|
|
|
|
2
|
|
|
|
|
237
|
|
|
|
|
8
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
79
|
|
|
|
|
4
|
|
|
|
|
18
|
|
|
|
|
0
|
|
|
|
|
61
|
|
|
|
|
4
|
|
|
||||||
Yen-denominated
|
|
1,828
|
|
|
|
|
89
|
|
|
|
|
1,828
|
|
|
|
|
89
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
4,261
|
|
|
|
|
248
|
|
|
|
|
792
|
|
|
|
|
53
|
|
|
|
|
3,469
|
|
|
|
|
195
|
|
|
||||||
Yen-denominated
|
|
636
|
|
|
|
|
31
|
|
|
|
|
636
|
|
|
|
|
31
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
7,190
|
|
|
|
|
$
|
385
|
|
|
|
|
$
|
3,423
|
|
|
|
|
$
|
178
|
|
|
|
|
$
|
3,767
|
|
|
|
|
$
|
207
|
|
|
|
2018
|
||||||||||||||||||||||||||||||||||
|
Total
|
|
Less than 12 months
|
|
12 months or longer
|
||||||||||||||||||||||||||||||
(In millions)
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and
agencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
$
|
67
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
67
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Japan government and
agencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Yen-denominated
|
|
3,604
|
|
|
|
|
140
|
|
|
|
|
3,604
|
|
|
|
|
140
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
515
|
|
|
|
|
8
|
|
|
|
|
515
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Yen-denominated
|
|
148
|
|
|
|
|
9
|
|
|
|
|
148
|
|
|
|
|
9
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Mortgage- and asset-
backed securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
74
|
|
|
|
|
1
|
|
|
|
|
74
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
1,585
|
|
|
|
|
105
|
|
|
|
|
892
|
|
|
|
|
48
|
|
|
|
|
693
|
|
|
|
|
57
|
|
|
||||||
Yen-denominated
|
|
604
|
|
|
|
|
12
|
|
|
|
|
604
|
|
|
|
|
12
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
625
|
|
|
|
|
35
|
|
|
|
|
340
|
|
|
|
|
19
|
|
|
|
|
285
|
|
|
|
|
16
|
|
|
||||||
Yen-denominated
|
|
3,057
|
|
|
|
|
258
|
|
|
|
|
3,057
|
|
|
|
|
258
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. dollar-denominated
|
|
12,899
|
|
|
|
|
1,109
|
|
|
|
|
5,782
|
|
|
|
|
407
|
|
|
|
|
7,117
|
|
|
|
|
702
|
|
|
||||||
Yen-denominated
|
|
1,306
|
|
|
|
|
82
|
|
|
|
|
1,306
|
|
|
|
|
82
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total
|
|
$
|
24,484
|
|
|
|
|
$
|
1,760
|
|
|
|
|
$
|
16,389
|
|
|
|
|
$
|
985
|
|
|
|
|
$
|
8,095
|
|
|
|
|
$
|
775
|
|
|
(In millions)
|
2019
|
|
2018
|
||||||||||
|
Amortized Cost
|
|
% of Total
|
|
Amortized Cost
|
|
% of Total
|
||||||
Commercial Mortgage and other loans
|
|
|
|
|
|
|
|
||||||
Transitional real estate loans:
|
|
|
|
|
|
|
|
||||||
Office
|
$
|
1,800
|
|
|
18.7
|
%
|
|
$
|
1,621
|
|
|
23.3
|
%
|
Retail
|
131
|
|
|
1.4
|
|
|
147
|
|
|
2.1
|
|
||
Apartments/Multi-Family
|
2,085
|
|
|
21.7
|
|
|
1,706
|
|
|
24.6
|
|
||
Industrial
|
256
|
|
|
2.7
|
|
|
250
|
|
|
3.6
|
|
||
Hospitality
|
1,036
|
|
|
10.8
|
|
|
531
|
|
|
7.6
|
|
||
Other
|
164
|
|
|
1.7
|
|
|
139
|
|
|
2.0
|
|
||
Total transitional real estate loans
|
5,472
|
|
|
57.0
|
|
|
4,394
|
|
|
63.2
|
|
||
Commercial mortgage loans:
|
|
|
|
|
|
|
|
||||||
Office
|
410
|
|
|
4.3
|
|
|
281
|
|
|
4.1
|
|
||
Retail
|
348
|
|
|
3.5
|
|
|
316
|
|
|
4.6
|
|
||
Apartments/Multi-Family
|
569
|
|
|
5.9
|
|
|
369
|
|
|
5.3
|
|
||
Industrial
|
383
|
|
|
4.0
|
|
|
99
|
|
|
1.4
|
|
||
Total commercial mortgage loans
|
1,710
|
|
|
17.7
|
|
|
1,065
|
|
|
15.4
|
|
||
Middle market loans
|
2,432
|
|
|
25.3
|
|
|
1,487
|
|
|
21.4
|
|
||
Total commercial mortgage and other loans
|
$
|
9,614
|
|
|
100.0
|
%
|
|
$
|
6,946
|
|
|
100.0
|
%
|
Allowance for Loan Losses
|
(45
|
)
|
|
|
|
(27
|
)
|
|
|
||||
Total net commercial mortgage and other loans
|
$
|
9,569
|
|
|
|
|
$
|
6,919
|
|
|
|
(In millions)
|
Commercial Mortgage Loans
|
|
Transitional Real Estate Loans
|
|
Middle Market Loans
|
|
Total
|
||||||||||||||||
Allowance for loan losses at December 31, 2018
|
|
$
|
(1
|
)
|
|
|
|
$
|
(17
|
)
|
|
|
|
$
|
(9
|
)
|
|
|
|
$
|
(27
|
)
|
|
Addition to (release of) allowance for credit losses
|
|
(2
|
)
|
|
|
|
(5
|
)
|
|
|
|
(11
|
)
|
|
|
|
(18
|
)
|
|
||||
Allowance for loan losses at December 31, 2019
|
|
$
|
(3
|
)
|
|
|
|
$
|
(22
|
)
|
|
|
|
$
|
(20
|
)
|
|
|
|
$
|
(45
|
)
|
|
|
2019
|
||||||||
(In millions)
|
Transitional Real Estate Loans
|
Commercial Mortgage Loans
|
Total
|
||||||
Loan-to-Value Ratio:
|
|
|
|
||||||
0%-59.99%
|
$
|
1,424
|
|
$
|
1,390
|
|
$
|
2,814
|
|
60%-69.99%
|
1,927
|
297
|
2,224
|
||||||
70%-79.99%
|
2,085
|
23
|
2,108
|
||||||
80% or greater
|
36
|
0
|
36
|
||||||
Total
|
$
|
5,472
|
|
$
|
1,710
|
|
$
|
7,182
|
|
Weighted Average Debt-Service Coverage Ratio
|
|
2.38
|
|
|
2018
|
||||||||
(In millions)
|
Transitional Real Estate Loans
|
Commercial Mortgage Loans
|
Total
|
||||||
Loan-to-Value Ratio:
|
|
|
|
||||||
0%-59.99%
|
$
|
819
|
|
$
|
877
|
|
$
|
1,696
|
|
60%-69.99%
|
1,681
|
165
|
1,846
|
||||||
70%-79.99%
|
1,558
|
23
|
1,581
|
||||||
80% or greater
|
336
|
0
|
336
|
||||||
Total
|
$
|
4,394
|
|
$
|
1,065
|
|
$
|
5,459
|
|
Weighted Average Debt-Service Coverage Ratio
|
|
2.45
|
|
(In millions)
|
2019
|
|
2018
|
||||||||
Other investments:
|
|
|
|
|
|
|
|
||||
Policy loans
|
|
$
|
250
|
|
|
|
|
$
|
232
|
|
|
Short-term investments (1)
|
|
628
|
|
|
|
|
152
|
|
|
||
Limited partnerships
|
|
569
|
|
|
|
|
377
|
|
|
||
Other
|
|
30
|
|
|
|
|
26
|
|
|
||
Total other investments
|
|
$
|
1,477
|
|
|
|
|
$
|
787
|
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
(In millions)
|
Cost or Amortized
Cost |
|
Fair
Value |
|
Cost or Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities, available for sale
|
|
$
|
3,308
|
|
|
|
|
$
|
4,312
|
|
|
|
|
$
|
3,849
|
|
|
|
|
$
|
4,466
|
|
|
Equity securities
|
|
0
|
|
|
|
|
0
|
|
|
|
|
160
|
|
|
|
|
160
|
|
|
||||
Commercial mortgage and other loans
|
|
7,956
|
|
|
|
|
8,015
|
|
|
|
|
5,528
|
|
|
|
|
5,506
|
|
|
||||
Other investments (1)
|
|
494
|
|
|
|
|
494
|
|
|
|
|
328
|
|
|
|
|
328
|
|
|
||||
Other assets (2)
|
|
169
|
|
|
|
|
169
|
|
|
|
|
182
|
|
|
|
|
182
|
|
|
||||
Total assets of consolidated VIEs
|
|
$
|
11,927
|
|
|
|
|
$
|
12,990
|
|
|
|
|
$
|
10,047
|
|
|
|
|
$
|
10,642
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities (2)
|
|
$
|
126
|
|
|
|
|
$
|
126
|
|
|
|
|
$
|
102
|
|
|
|
|
$
|
102
|
|
|
Total liabilities of consolidated VIEs
|
|
$
|
126
|
|
|
|
|
$
|
126
|
|
|
|
|
$
|
102
|
|
|
|
|
$
|
102
|
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities, available for sale
|
|
$
|
4,129
|
|
|
|
|
$
|
4,884
|
|
|
|
|
$
|
4,575
|
|
|
|
|
$
|
4,982
|
|
|
Fixed maturity securities, held to maturity
|
|
1,848
|
|
|
|
|
2,236
|
|
|
|
|
2,007
|
|
|
|
|
2,254
|
|
|
||||
Other investments (1)
|
|
75
|
|
|
|
|
74
|
|
|
|
|
49
|
|
|
|
|
49
|
|
|
||||
Total investments in VIEs not consolidated
|
|
$
|
6,052
|
|
|
|
|
$
|
7,194
|
|
|
|
|
$
|
6,631
|
|
|
|
|
$
|
7,285
|
|
|
Securities Lending Transactions Accounted for as Secured Borrowings
|
|||||||||||||||
2018
|
|||||||||||||||
Remaining Contractual Maturity of the Agreements
|
|||||||||||||||
(In millions)
|
Overnight
and Continuous(1) |
|
Up to 30
days |
|
Greater
than 90 days |
|
Total
|
||||||||
Securities lending transactions:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
Japan government and agencies
|
$
|
0
|
|
|
$
|
387
|
|
|
1,190
|
|
|
$
|
1,577
|
|
|
Municipalities
|
5
|
|
|
0
|
|
|
0
|
|
|
5
|
|
||||
Public utilities
|
27
|
|
|
0
|
|
|
0
|
|
|
27
|
|
||||
Banks/financial institutions
|
74
|
|
|
0
|
|
|
0
|
|
|
74
|
|
||||
Other corporate
|
549
|
|
|
0
|
|
|
0
|
|
|
549
|
|
||||
Equity securities
|
10
|
|
|
0
|
|
|
0
|
|
|
10
|
|
||||
Total borrowings
|
$
|
665
|
|
|
$
|
387
|
|
|
$
|
1,190
|
|
|
$
|
2,242
|
|
Gross amount of recognized liabilities for securities lending transactions
|
|
|
$
|
1,052
|
|
||||||||||
Amounts related to agreements not included in offsetting disclosure in Note 4
|
|
|
$
|
1,190
|
|
•
|
foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio
|
•
|
foreign currency forwards and options used to economically hedge certain portions of forecasted cash flows denominated in yen and hedge the Company's long term exposure to a weakening yen
|
•
|
cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with certain senior notes and subordinated debentures
|
•
|
foreign currency swaps and, in prior periods, credit default swaps that are associated with investments in special-purpose entities, including VIEs where the Company is the primary beneficiary
|
•
|
interest rate swaps used to economically hedge interest rate fluctuations in certain variable-rate investments
|
•
|
interest rate swaptions used to hedge changes in the fair value associated with interest rate fluctuations for certain U.S. dollar-denominated available-for-sale fixed-maturity securities.
|
|
2019
|
|
2018
|
|||||||||||||||||||||||||||||||
(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 - VIE
|
|
$
|
75
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
8
|
|
|
|
$
|
75
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
4
|
|
|
Total cash flow hedges
|
|
75
|
|
|
|
|
0
|
|
|
|
|
8
|
|
|
|
75
|
|
|
|
|
1
|
|
|
|
|
4
|
|
|
||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forwards
|
|
964
|
|
|
|
|
0
|
|
|
|
|
38
|
|
|
|
2,086
|
|
|
|
|
0
|
|
|
|
|
34
|
|
|
||||||
Foreign currency options
|
|
11,573
|
|
|
|
|
0
|
|
|
|
|
5
|
|
|
|
9,070
|
|
|
|
|
3
|
|
|
|
|
1
|
|
|
||||||
Interest rate swaptions
|
|
243
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
500
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||||
Total fair value hedges
|
|
12,780
|
|
|
|
|
0
|
|
|
|
|
43
|
|
|
|
11,656
|
|
|
|
|
3
|
|
|
|
|
36
|
|
|
||||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency forwards
|
|
4,952
|
|
|
|
|
72
|
|
|
|
|
2
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Foreign currency options
|
|
2,000
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total net investment hedge
|
|
6,952
|
|
|
|
|
72
|
|
|
|
|
2
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency swaps
|
|
2,800
|
|
|
|
|
72
|
|
|
|
|
78
|
|
|
|
2,800
|
|
|
|
|
103
|
|
|
|
|
129
|
|
|
||||||
Foreign currency swaps - VIE
|
|
2,587
|
|
|
|
|
169
|
|
|
|
|
118
|
|
|
|
2,587
|
|
|
|
|
181
|
|
|
|
|
101
|
|
|
||||||
Foreign currency forwards
|
|
19,821
|
|
|
|
|
166
|
|
|
|
|
337
|
|
|
|
16,057
|
|
|
|
|
126
|
|
|
|
|
117
|
|
|
||||||
Foreign currency options
|
|
9,553
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
430
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Interest rate swaps
|
|
7,120
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
4,750
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
||||||
Interest rate swaptions
|
|
7
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||||
Total non-qualifying strategies
|
|
41,888
|
|
|
|
|
410
|
|
|
|
|
533
|
|
|
|
26,624
|
|
|
|
|
413
|
|
|
|
|
347
|
|
|
||||||
Total derivatives
|
|
$
|
61,695
|
|
|
|
|
$
|
482
|
|
|
|
|
$
|
586
|
|
|
|
$
|
38,355
|
|
|
|
|
$
|
417
|
|
|
|
|
$
|
387
|
|
|
(In millions)
|
Carrying Amount of the Hedged Assets/(Liabilities)(1)
|
|
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
|
|
|||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
Fixed maturity securities
|
|
$
|
4,633
|
|
|
$
|
6,593
|
|
|
$
|
256
|
|
|
$
|
294
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||||||||||||||
(In millions)
|
Net Investment Income (1)
|
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss)(2) |
|
Net Investment Income (1)
|
Realized Investment
Gains (Losses) |
Other
Comprehensive Income (Loss)(2) |
|
Net Investment Income (1)
|
Realized
Investment Gains (Losses) |
Other
Comprehensive Income (Loss)(2) |
||||||||||||||||||||||||||||||||||||
Qualifying hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Foreign currency swaps - VIE
|
|
$
|
(2
|
)
|
|
|
$
|
(1
|
)
|
|
|
$
|
(4
|
)
|
|
|
|
$
|
0
|
|
|
|
$
|
0
|
|
|
|
$
|
3
|
|
|
|
|
$
|
0
|
|
|
|
$
|
0
|
|
|
|
$
|
1
|
|
|
Total cash flow hedges
|
|
(2
|
)
|
|
|
(1
|
)
|
(3)
|
|
(4
|
)
|
|
|
|
0
|
|
|
|
0
|
|
(3)
|
|
3
|
|
|
|
|
0
|
|
|
|
0
|
|
(3)
|
|
1
|
|
|
|||||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Foreign currency forwards (3)
|
|
|
|
|
(62
|
)
|
|
|
|
|
|
|
|
|
|
(116
|
)
|
|
|
|
|
|
|
|
|
|
(180
|
)
|
|
|
|
|
|||||||||||||||
Foreign currency options (3)
|
|
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|||||||||||||||
Interest rate swaptions (3)
|
|
(1
|
)
|
|
|
0
|
|
|
|
(8
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|||||||||
Total fair value hedges
|
|
(1
|
)
|
|
|
(69
|
)
|
|
|
(8
|
)
|
|
|
|
0
|
|
|
|
(112
|
)
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|
(169
|
)
|
|
|
0
|
|
|
|||||||||
Net investment hedge:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-derivative hedging
instruments |
|
|
|
|
0
|
|
|
|
(24
|
)
|
|
|
|
|
|
|
0
|
|
|
|
(32
|
)
|
|
|
|
|
|
|
0
|
|
|
|
(15
|
)
|
|
||||||||||||
Foreign currency forwards
|
|
|
|
|
10
|
|
|
|
83
|
|
|
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
|
|
|
0
|
|
|
|
(25
|
)
|
|
||||||||||||
Foreign currency options
|
|
|
|
|
(4
|
)
|
|
|
0
|
|
|
|
|
|
|
|
0
|
|
|
|
(8
|
)
|
|
|
|
|
|
|
0
|
|
|
|
5
|
|
|
||||||||||||
Total net investment hedge
|
|
|
|
|
6
|
|
|
|
59
|
|
|
|
|
|
|
|
0
|
|
|
|
(40
|
)
|
|
|
|
|
|
|
0
|
|
|
|
(35
|
)
|
|
||||||||||||
Non-qualifying strategies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Foreign currency swaps
|
|
|
|
|
90
|
|
|
|
|
|
|
|
|
|
|
(40
|
)
|
|
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|||||||||||||||
Foreign currency swaps - VIE
|
|
|
|
|
(68
|
)
|
|
|
|
|
|
|
|
|
|
60
|
|
|
|
|
|
|
|
|
|
|
44
|
|
|
|
|
|
|||||||||||||||
Foreign currency forwards
|
|
|
|
|
(148
|
)
|
|
|
|
|
|
|
|
|
|
(135
|
)
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|||||||||||||||
Credit default swaps
|
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
|||||||||||||||
Interest rate swaps
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
0
|
|
|
|
|
|
|||||||||||||||
Total non-qualifying strategies
|
|
|
|
|
(110
|
)
|
|
|
|
|
|
|
|
|
|
(112
|
)
|
|
|
|
|
|
|
|
|
|
60
|
|
|
|
|
|
|||||||||||||||
Total
|
|
$
|
(3
|
)
|
|
|
$
|
(174
|
)
|
|
|
$
|
47
|
|
|
|
|
$
|
0
|
|
|
|
$
|
(224
|
)
|
|
|
$
|
(38
|
)
|
|
|
|
$
|
0
|
|
|
|
$
|
(109
|
)
|
|
|
$
|
(34
|
)
|
|
2019
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC - bilateral
|
|
$
|
310
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
310
|
|
|
|
|
$
|
(190
|
)
|
|
|
$
|
(7
|
)
|
|
|
$
|
(113
|
)
|
|
|
|
$
|
0
|
|
|
OTC - cleared
|
|
3
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|||||||
Total derivative
assets subject to a master netting agreement or offsetting arrangement |
|
313
|
|
|
|
|
0
|
|
|
|
|
313
|
|
|
|
|
(190
|
)
|
|
|
(7
|
)
|
|
|
(113
|
)
|
|
|
|
3
|
|
|
|||||||
Derivative
assets not subject
to a master netting
agreement or
offsetting
arrangement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC - bilateral
|
|
169
|
|
|
|
|
|
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
169
|
|
|
|||||||||||
Total derivative
assets not subject to a master netting agreement or offsetting arrangement |
|
169
|
|
|
|
|
|
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
169
|
|
|
|||||||||||
Total derivative
assets
|
|
482
|
|
|
|
|
0
|
|
|
|
|
482
|
|
|
|
|
(190
|
)
|
|
|
(7
|
)
|
|
|
(113
|
)
|
|
|
|
172
|
|
|
|||||||
Securities lending
and similar
arrangements
|
|
1,860
|
|
|
|
|
0
|
|
|
|
|
1,860
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(1,860
|
)
|
|
|
|
0
|
|
|
|||||||
Total
|
|
$
|
2,342
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
2,342
|
|
|
|
|
$
|
(190
|
)
|
|
|
$
|
(7
|
)
|
|
|
$
|
(1,973
|
)
|
|
|
|
$
|
172
|
|
|
2018
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC - bilateral
|
|
$
|
231
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
231
|
|
|
|
|
$
|
(152
|
)
|
|
|
$
|
(23
|
)
|
|
|
$
|
(55
|
)
|
|
|
|
$
|
1
|
|
|
OTC - cleared
|
|
3
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(3
|
)
|
|
|
|
0
|
|
|
|||||||
Total derivative
assets subject to a master netting agreement or offsetting arrangement |
|
234
|
|
|
|
|
0
|
|
|
|
|
234
|
|
|
|
|
(152
|
)
|
|
|
(23
|
)
|
|
|
(58
|
)
|
|
|
|
1
|
|
|
|||||||
Derivative
assets not subject
to a master netting
agreement or
offsetting
arrangement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC - bilateral
|
|
183
|
|
|
|
|
|
|
|
|
183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
183
|
|
|
|||||||||||
Total derivative
assets not subject to a master netting agreement or offsetting arrangement |
|
183
|
|
|
|
|
|
|
|
|
183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
183
|
|
|
|||||||||||
Total derivative
assets
|
|
417
|
|
|
|
|
0
|
|
|
|
|
417
|
|
|
|
|
(152
|
)
|
|
|
(23
|
)
|
|
|
(58
|
)
|
|
|
|
184
|
|
|
|||||||
Securities lending
and similar
arrangements
|
|
1,029
|
|
|
|
|
0
|
|
|
|
|
1,029
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(1,029
|
)
|
|
|
|
0
|
|
|
|||||||
Total
|
|
$
|
1,446
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
1,446
|
|
|
|
|
$
|
(152
|
)
|
|
|
$
|
(23
|
)
|
|
|
$
|
(1,087
|
)
|
|
|
|
$
|
184
|
|
|
2019
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC - bilateral
|
|
$
|
459
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
459
|
|
|
|
|
$
|
(190
|
)
|
|
|
$
|
(222
|
)
|
|
|
$
|
(32
|
)
|
|
|
|
$
|
15
|
|
|
OTC - cleared
|
|
1
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
|
0
|
|
|
|||||||
Total derivative
liabilities subject to a master netting agreement or offsetting arrangement |
|
460
|
|
|
|
|
0
|
|
|
|
|
460
|
|
|
|
|
(190
|
)
|
|
|
(222
|
)
|
|
|
(33
|
)
|
|
|
|
15
|
|
|
|||||||
Derivative
liabilities not
subject to a
master netting
agreement or
offsetting
arrangement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC - bilateral
|
|
126
|
|
|
|
|
|
|
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
126
|
|
|
|||||||||||
Total derivative
liabilities not subject to a master netting agreement or offsetting arrangement |
|
126
|
|
|
|
|
|
|
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
126
|
|
|
|||||||||||
Total derivative
liabilities
|
|
586
|
|
|
|
|
0
|
|
|
|
|
586
|
|
|
|
|
(190
|
)
|
|
|
(222
|
)
|
|
|
(33
|
)
|
|
|
|
141
|
|
|
|||||||
Securities lending
and similar
arrangements
|
|
1,876
|
|
|
|
|
0
|
|
|
|
|
1,876
|
|
|
|
|
(1,860
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
|
16
|
|
|
|||||||
Total
|
|
$
|
2,462
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
2,462
|
|
|
|
|
$
|
(2,050
|
)
|
|
|
$
|
(222
|
)
|
|
|
$
|
(33
|
)
|
|
|
|
$
|
157
|
|
|
2018
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC - bilateral
|
|
$
|
285
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
285
|
|
|
|
|
$
|
(152
|
)
|
|
|
$
|
(37
|
)
|
|
|
$
|
(68
|
)
|
|
|
|
$
|
28
|
|
|
Total derivative
liabilities subject to a master netting agreement or offsetting arrangement |
|
285
|
|
|
|
|
0
|
|
|
|
|
285
|
|
|
|
|
(152
|
)
|
|
|
(37
|
)
|
|
|
(68
|
)
|
|
|
|
28
|
|
|
|||||||
Derivative
liabilities not
subject to a
master netting
agreement or
offsetting
arrangement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OTC - bilateral
|
|
102
|
|
|
|
|
|
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102
|
|
|
|||||||||||
Total derivative
liabilities not subject to a master netting agreement or offsetting arrangement |
|
102
|
|
|
|
|
|
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102
|
|
|
|||||||||||
Total derivative
liabilities
|
|
387
|
|
|
|
|
0
|
|
|
|
|
387
|
|
|
|
|
(152
|
)
|
|
|
(37
|
)
|
|
|
(68
|
)
|
|
|
|
130
|
|
|
|||||||
Securities lending
and similar
arrangements
|
|
1,052
|
|
|
|
|
0
|
|
|
|
|
1,052
|
|
|
|
|
(1,029
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
|
23
|
|
|
|||||||
Total
|
|
$
|
1,439
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
1,439
|
|
|
|
|
$
|
(1,181
|
)
|
|
|
$
|
(37
|
)
|
|
|
$
|
(68
|
)
|
|
|
|
$
|
153
|
|
|
5.
|
FAIR VALUE MEASUREMENTS
|
|
2019
|
||||||||||||||||||||||
(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 maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies
|
|
$
|
34,878
|
|
|
|
|
$
|
1,522
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
36,400
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,847
|
|
|
|
|
0
|
|
|
|
|
1,847
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
232
|
|
|
|
|
178
|
|
|
|
|
410
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
6,556
|
|
|
|
|
224
|
|
|
|
|
6,780
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,042
|
|
|
|
|
0
|
|
|
|
|
1,042
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
10,264
|
|
|
|
|
23
|
|
|
|
|
10,287
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
34,234
|
|
|
|
|
262
|
|
|
|
|
34,496
|
|
|
||||
Total fixed maturity securities
|
|
34,878
|
|
|
|
|
55,697
|
|
|
|
|
687
|
|
|
|
|
91,262
|
|
|
||||
Equity securities
|
|
642
|
|
|
|
|
80
|
|
|
|
|
80
|
|
|
|
|
802
|
|
|
||||
Other investments
|
|
628
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
628
|
|
|
||||
Cash and cash equivalents
|
|
4,896
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4,896
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
72
|
|
|
|
|
169
|
|
|
|
|
241
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
238
|
|
|
|
|
0
|
|
|
|
|
238
|
|
|
||||
Interest rate swaps
|
|
0
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
313
|
|
|
|
|
169
|
|
|
|
|
482
|
|
|
||||
Total assets
|
|
$
|
41,044
|
|
|
|
|
$
|
56,090
|
|
|
|
|
$
|
936
|
|
|
|
|
$
|
98,070
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
78
|
|
|
|
|
$
|
126
|
|
|
|
|
$
|
204
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
377
|
|
|
|
|
0
|
|
|
|
|
377
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
|
5
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
460
|
|
|
|
|
$
|
126
|
|
|
|
|
$
|
586
|
|
|
|
2018
|
||||||||||||||||||||||
(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 maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies
|
|
$
|
32,993
|
|
|
|
|
$
|
1,349
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
34,342
|
|
|
Municipalities
|
|
0
|
|
|
|
|
1,863
|
|
|
|
|
0
|
|
|
|
|
1,863
|
|
|
||||
Mortgage- and asset-backed securities
|
|
0
|
|
|
|
|
162
|
|
|
|
|
177
|
|
|
|
|
339
|
|
|
||||
Public utilities
|
|
0
|
|
|
|
|
7,062
|
|
|
|
|
109
|
|
|
|
|
7,171
|
|
|
||||
Sovereign and supranational
|
|
0
|
|
|
|
|
1,260
|
|
|
|
|
0
|
|
|
|
|
1,260
|
|
|
||||
Banks/financial institutions
|
|
0
|
|
|
|
|
8,895
|
|
|
|
|
23
|
|
|
|
|
8,918
|
|
|
||||
Other corporate
|
|
0
|
|
|
|
|
28,789
|
|
|
|
|
213
|
|
|
|
|
29,002
|
|
|
||||
Total fixed maturity securities
|
|
32,993
|
|
|
|
|
49,380
|
|
|
|
|
522
|
|
|
|
|
82,895
|
|
|
||||
Equity securities
|
|
874
|
|
|
|
|
67
|
|
|
|
|
46
|
|
|
|
|
987
|
|
|
||||
Other investments
|
|
152
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
152
|
|
|
||||
Cash and cash equivalents
|
|
4,337
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
4,337
|
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
0
|
|
|
|
|
103
|
|
|
|
|
182
|
|
|
|
|
285
|
|
|
||||
Foreign currency forwards
|
|
0
|
|
|
|
|
126
|
|
|
|
|
0
|
|
|
|
|
126
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
||||
Interest rate swaps
|
|
0
|
|
|
|
|
3
|
|
|
|
|
0
|
|
|
|
|
3
|
|
|
||||
Total other assets
|
|
0
|
|
|
|
|
235
|
|
|
|
|
182
|
|
|
|
|
417
|
|
|
||||
Total assets
|
|
$
|
38,356
|
|
|
|
|
$
|
49,682
|
|
|
|
|
$
|
750
|
|
|
|
|
$
|
88,788
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency swaps
|
|
$
|
0
|
|
|
|
|
$
|
132
|
|
|
|
|
$
|
102
|
|
|
|
|
$
|
234
|
|
|
Foreign currency forwards
|
|
0
|
|
|
|
|
151
|
|
|
|
|
0
|
|
|
|
|
151
|
|
|
||||
Foreign currency options
|
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||
Interest rate swaptions
|
|
0
|
|
|
|
|
1
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||
Total liabilities
|
|
$
|
0
|
|
|
|
|
$
|
285
|
|
|
|
|
$
|
102
|
|
|
|
|
$
|
387
|
|
|
|
2019
|
|||||||||||||||||||||||||||
(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 maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agencies
|
|
$
|
22,241
|
|
|
|
$
|
27,937
|
|
|
|
|
$
|
354
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
28,291
|
|
|
Municipalities
|
|
821
|
|
|
|
0
|
|
|
|
|
1,083
|
|
|
|
|
0
|
|
|
|
|
1,083
|
|
|
|||||
Mortgage and asset-backed
securities |
|
16
|
|
|
|
0
|
|
|
|
|
7
|
|
|
|
|
10
|
|
|
|
|
17
|
|
|
|||||
Public utilities
|
|
2,535
|
|
|
|
0
|
|
|
|
|
2,954
|
|
|
|
|
0
|
|
|
|
|
2,954
|
|
|
|||||
Sovereign and
supranational |
|
1,123
|
|
|
|
0
|
|
|
|
|
1,320
|
|
|
|
|
0
|
|
|
|
|
1,320
|
|
|
|||||
Banks/financial institutions
|
|
916
|
|
|
|
0
|
|
|
|
|
1,018
|
|
|
|
|
0
|
|
|
|
|
1,018
|
|
|
|||||
Other corporate
|
|
2,433
|
|
|
|
0
|
|
|
|
|
2,911
|
|
|
|
|
0
|
|
|
|
|
2,911
|
|
|
|||||
Commercial mortgage and
other loans |
|
9,569
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
9,648
|
|
|
|
|
9,648
|
|
|
|||||
Other investments (1)
|
|
30
|
|
|
|
0
|
|
|
|
|
30
|
|
|
|
|
0
|
|
|
|
|
30
|
|
|
|||||
Total assets
|
|
$
|
39,684
|
|
|
|
$
|
27,937
|
|
|
|
|
$
|
9,677
|
|
|
|
|
$
|
9,658
|
|
|
|
|
$
|
47,272
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
7,317
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
7,234
|
|
|
|
|
$
|
7,234
|
|
|
Notes payable
(excluding leases) |
|
6,408
|
|
|
|
0
|
|
|
|
|
6,663
|
|
|
|
|
272
|
|
|
|
|
6,935
|
|
|
|||||
Total liabilities
|
|
$
|
13,725
|
|
|
|
$
|
0
|
|
|
|
|
$
|
6,663
|
|
|
|
|
$
|
7,506
|
|
|
|
|
$
|
14,169
|
|
|
|
|
|
|
2018
|
||||||||||||||||||||||||
(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 maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Government and agencies
|
|
$
|
21,712
|
|
|
|
$
|
27,030
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
27,038
|
|
|
Municipalities
|
|
359
|
|
|
|
0
|
|
|
|
|
469
|
|
|
|
|
0
|
|
|
|
|
469
|
|
|
|||||
Mortgage and asset-backed
securities |
|
14
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
15
|
|
|
|
|
15
|
|
|
|||||
Public utilities
|
|
2,727
|
|
|
|
0
|
|
|
|
|
2,973
|
|
|
|
|
0
|
|
|
|
|
2,973
|
|
|
|||||
Sovereign and
supranational |
|
1,551
|
|
|
|
0
|
|
|
|
|
1,840
|
|
|
|
|
0
|
|
|
|
|
1,840
|
|
|
|||||
Banks/financial institutions
|
|
1,445
|
|
|
|
0
|
|
|
|
|
1,583
|
|
|
|
|
0
|
|
|
|
|
1,583
|
|
|
|||||
Other corporate
|
|
2,510
|
|
|
|
0
|
|
|
|
|
2,804
|
|
|
|
|
0
|
|
|
|
|
2,804
|
|
|
|||||
Commercial mortgage and
other loans |
|
6,919
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
6,893
|
|
|
|
|
6,893
|
|
|
|||||
Other investments (1)
|
|
26
|
|
|
|
0
|
|
|
|
|
26
|
|
|
|
|
0
|
|
|
|
|
26
|
|
|
|||||
Total assets
|
|
$
|
37,263
|
|
|
|
$
|
27,030
|
|
|
|
|
$
|
9,703
|
|
|
|
|
$
|
6,908
|
|
|
|
|
$
|
43,641
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other policyholders’ funds
|
|
$
|
7,146
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
7,067
|
|
|
|
|
$
|
7,067
|
|
|
Notes payable
(excluding leases) |
|
5,765
|
|
|
|
0
|
|
|
|
|
5,606
|
|
|
|
|
270
|
|
|
|
|
5,876
|
|
|
|||||
Total liabilities
|
|
$
|
12,911
|
|
|
|
$
|
0
|
|
|
|
|
$
|
5,606
|
|
|
|
|
$
|
7,337
|
|
|
|
|
$
|
12,943
|
|
|
|
|
2019
|
||||||||||||||||||||||
(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 maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
$
|
34,878
|
|
|
|
|
$
|
1,522
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
36,400
|
|
|
Total government and agencies
|
|
|
34,878
|
|
|
|
|
1,522
|
|
|
|
|
0
|
|
|
|
|
36,400
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,847
|
|
|
|
|
0
|
|
|
|
|
1,847
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,847
|
|
|
|
|
0
|
|
|
|
|
1,847
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
232
|
|
|
|
|
0
|
|
|
|
|
232
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
178
|
|
|
|
|
178
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
232
|
|
|
|
|
178
|
|
|
|
|
410
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
6,556
|
|
|
|
|
0
|
|
|
|
|
6,556
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
224
|
|
|
|
|
224
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
6,556
|
|
|
|
|
224
|
|
|
|
|
6,780
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,042
|
|
|
|
|
0
|
|
|
|
|
1,042
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,042
|
|
|
|
|
0
|
|
|
|
|
1,042
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
10,264
|
|
|
|
|
0
|
|
|
|
|
10,264
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
23
|
|
|
|
|
23
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
10,264
|
|
|
|
|
23
|
|
|
|
|
10,287
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
34,234
|
|
|
|
|
0
|
|
|
|
|
34,234
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
262
|
|
|
|
|
262
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
34,234
|
|
|
|
|
262
|
|
|
|
|
34,496
|
|
|
||||
Total securities available for sale
|
|
|
$
|
34,878
|
|
|
|
|
$
|
55,697
|
|
|
|
|
$
|
687
|
|
|
|
|
$
|
91,262
|
|
|
Equity securities, carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
$
|
642
|
|
|
|
|
$
|
80
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
722
|
|
|
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
80
|
|
|
|
|
80
|
|
|
||||
Total equity securities
|
|
|
$
|
642
|
|
|
|
|
$
|
80
|
|
|
|
|
$
|
80
|
|
|
|
|
$
|
802
|
|
|
|
|
2019
|
||||||||||||||||||||||
(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 maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
$
|
27,937
|
|
|
|
|
$
|
354
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
28,291
|
|
|
Total government and agencies
|
|
|
27,937
|
|
|
|
|
354
|
|
|
|
|
0
|
|
|
|
|
28,291
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,083
|
|
|
|
|
0
|
|
|
|
|
1,083
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,083
|
|
|
|
|
0
|
|
|
|
|
1,083
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7
|
|
|
|
|
0
|
|
|
|
|
7
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
10
|
|
|
|
|
10
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
7
|
|
|
|
|
10
|
|
|
|
|
17
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,954
|
|
|
|
|
0
|
|
|
|
|
2,954
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
2,954
|
|
|
|
|
0
|
|
|
|
|
2,954
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,320
|
|
|
|
|
0
|
|
|
|
|
1,320
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,320
|
|
|
|
|
0
|
|
|
|
|
1,320
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,018
|
|
|
|
|
0
|
|
|
|
|
1,018
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
1,018
|
|
|
|
|
0
|
|
|
|
|
1,018
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,911
|
|
|
|
|
0
|
|
|
|
|
2,911
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
2,911
|
|
|
|
|
0
|
|
|
|
|
2,911
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
27,937
|
|
|
|
|
$
|
9,647
|
|
|
|
|
$
|
10
|
|
|
|
|
$
|
37,594
|
|
|
|
|
2018
|
||||||||||||||||||||||
(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 maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
$
|
32,993
|
|
|
|
|
$
|
1,349
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
34,342
|
|
|
Total government and agencies
|
|
|
32,993
|
|
|
|
|
1,349
|
|
|
|
|
0
|
|
|
|
|
34,342
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,863
|
|
|
|
|
0
|
|
|
|
|
1,863
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
1,863
|
|
|
|
|
0
|
|
|
|
|
1,863
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
162
|
|
|
|
|
0
|
|
|
|
|
162
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
177
|
|
|
|
|
177
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
162
|
|
|
|
|
177
|
|
|
|
|
339
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
7,062
|
|
|
|
|
0
|
|
|
|
|
7,062
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
109
|
|
|
|
|
109
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
7,062
|
|
|
|
|
109
|
|
|
|
|
7,171
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,260
|
|
|
|
|
0
|
|
|
|
|
1,260
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,260
|
|
|
|
|
0
|
|
|
|
|
1,260
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
8,895
|
|
|
|
|
0
|
|
|
|
|
8,895
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
23
|
|
|
|
|
23
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
8,895
|
|
|
|
|
23
|
|
|
|
|
8,918
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
28,789
|
|
|
|
|
0
|
|
|
|
|
28,789
|
|
|
||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
213
|
|
|
|
|
213
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
28,789
|
|
|
|
|
213
|
|
|
|
|
29,002
|
|
|
||||
Total securities available for sale
|
|
|
$
|
32,993
|
|
|
|
|
$
|
49,380
|
|
|
|
|
$
|
522
|
|
|
|
|
$
|
82,895
|
|
|
Equity securities, carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
$
|
874
|
|
|
|
|
$
|
67
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
941
|
|
|
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
46
|
|
|
|
|
46
|
|
|
||||
Total equity securities
|
|
|
$
|
874
|
|
|
|
|
$
|
67
|
|
|
|
|
$
|
46
|
|
|
|
|
$
|
987
|
|
|
|
|
2018
|
||||||||||||||||||||||
(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 maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
$
|
27,030
|
|
|
|
|
$
|
8
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
27,038
|
|
|
Total government and agencies
|
|
|
27,030
|
|
|
|
|
8
|
|
|
|
|
0
|
|
|
|
|
27,038
|
|
|
||||
Municipalities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
469
|
|
|
|
|
0
|
|
|
|
|
469
|
|
|
||||
Total municipalities
|
|
|
0
|
|
|
|
|
469
|
|
|
|
|
0
|
|
|
|
|
469
|
|
|
||||
Mortgage- and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Broker/other
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
15
|
|
|
|
|
15
|
|
|
||||
Total mortgage- and asset-backed securities
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
15
|
|
|
|
|
15
|
|
|
||||
Public utilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,973
|
|
|
|
|
0
|
|
|
|
|
2,973
|
|
|
||||
Total public utilities
|
|
|
0
|
|
|
|
|
2,973
|
|
|
|
|
0
|
|
|
|
|
2,973
|
|
|
||||
Sovereign and supranational:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,840
|
|
|
|
|
0
|
|
|
|
|
1,840
|
|
|
||||
Total sovereign and supranational
|
|
|
0
|
|
|
|
|
1,840
|
|
|
|
|
0
|
|
|
|
|
1,840
|
|
|
||||
Banks/financial institutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
1,583
|
|
|
|
|
0
|
|
|
|
|
1,583
|
|
|
||||
Total banks/financial institutions
|
|
|
0
|
|
|
|
|
1,583
|
|
|
|
|
0
|
|
|
|
|
1,583
|
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third party pricing vendor
|
|
|
0
|
|
|
|
|
2,804
|
|
|
|
|
0
|
|
|
|
|
2,804
|
|
|
||||
Total other corporate
|
|
|
0
|
|
|
|
|
2,804
|
|
|
|
|
0
|
|
|
|
|
2,804
|
|
|
||||
Total securities held to maturity
|
|
|
$
|
27,030
|
|
|
|
|
$
|
9,677
|
|
|
|
|
$
|
15
|
|
|
|
|
$
|
36,722
|
|
|
2019
|
|
|||||||||||||||||||||||||||||||
|
Fixed Maturity Securities
|
|
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
|
$
|
177
|
|
|
$
|
109
|
|
|
$
|
23
|
|
|
$
|
213
|
|
|
$
|
46
|
|
|
$
|
80
|
|
|
$
|
0
|
|
|
$
|
648
|
|
|
Realized investment gains (losses) included
in earnings |
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
0
|
|
|
(33
|
)
|
|
0
|
|
|
(34
|
)
|
|
||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
1
|
|
|
6
|
|
|
1
|
|
|
8
|
|
|
0
|
|
|
(4
|
)
|
|
0
|
|
|
12
|
|
|
||||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchases
|
0
|
|
|
48
|
|
|
0
|
|
|
165
|
|
|
34
|
|
|
0
|
|
|
0
|
|
|
247
|
|
|
||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Sales
|
0
|
|
|
(24
|
)
|
|
0
|
|
|
(17
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(41
|
)
|
|
||||||||
Settlements
|
0
|
|
|
(6
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(6
|
)
|
|
||||||||
Transfers into Level 3
|
0
|
|
|
116
|
|
(2)
|
0
|
|
|
26
|
|
(2)
|
0
|
|
|
0
|
|
|
0
|
|
|
142
|
|
|
||||||||
Transfers out of Level 3
|
0
|
|
|
(25
|
)
|
(2)
|
(1
|
)
|
|
(132
|
)
|
(2), (3)
|
0
|
|
|
0
|
|
|
0
|
|
|
(158
|
)
|
|
||||||||
Balance, end of period
|
$
|
178
|
|
|
$
|
224
|
|
|
$
|
23
|
|
|
$
|
262
|
|
|
$
|
80
|
|
|
$
|
43
|
|
|
$
|
0
|
|
|
$
|
810
|
|
|
Changes in unrealized gains (losses) relating
to Level 3 assets and liabilities still held at the end of the period included in earnings |
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(33
|
)
|
|
$
|
0
|
|
|
$
|
(33
|
)
|
|
2018
|
|
|||||||||||||||||||||||||||||||
|
Fixed Maturity Securities
|
|
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
|
$
|
175
|
|
|
$
|
68
|
|
|
$
|
25
|
|
|
$
|
146
|
|
|
$
|
16
|
|
|
$
|
22
|
|
|
$
|
1
|
|
|
$
|
453
|
|
|
Realized investment gains (losses) included in
earnings |
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(1
|
)
|
|
54
|
|
|
(1
|
)
|
|
52
|
|
|
||||||||
Unrealized gains (losses) included in other
comprehensive income (loss) |
2
|
|
|
1
|
|
|
(2
|
)
|
|
1
|
|
|
0
|
|
|
4
|
|
|
0
|
|
|
6
|
|
|
||||||||
Purchases, issuances, sales and settlements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases
|
0
|
|
|
40
|
|
|
0
|
|
|
56
|
|
|
31
|
|
|
0
|
|
|
0
|
|
|
127
|
|
|
||||||||
Issuances
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Sales
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Settlements
|
0
|
|
|
0
|
|
|
0
|
|
|
(6
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(6
|
)
|
|
||||||||
Transfers into Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
16
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
16
|
|
|
||||||||
Transfers out of Level 3
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
||||||||
Balance, end of period
|
$
|
177
|
|
|
$
|
109
|
|
|
$
|
23
|
|
|
$
|
213
|
|
|
$
|
46
|
|
|
$
|
80
|
|
|
$
|
0
|
|
|
$
|
648
|
|
|
Changes in unrealized gains (losses) relating
to Level 3 assets and liabilities still held at the end of the period included in earnings |
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
(1
|
)
|
|
$
|
54
|
|
|
$
|
(1
|
)
|
|
$
|
52
|
|
|
2019
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Securities available for sale, carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Mortgage- and asset-backed securities
|
|
|
$
|
178
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(a)
|
Public utilities
|
|
|
224
|
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
N/A
|
(a)
|
|
Banks/financial institutions
|
|
|
23
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(a)
|
|
Other corporate
|
|
|
262
|
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
N/A
|
(a)
|
|
Equity securities
|
|
|
80
|
|
|
|
Net asset value
|
|
Offered quotes
|
|
N/A
|
(a)
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
106
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.89% - 2.09%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.12% - .43%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
10 - 100 bps
|
|
||
|
|
|
63
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.89% - 2.09%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.12% - .43%
|
(c)
|
||
Total assets
|
|
|
$
|
936
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
$
|
118
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.89% - 2.09%
|
(b)
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.12% - .43%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
13 - 159 bps
|
|
||
|
|
|
8
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
1.89% - 2.09%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.12% - .43%
|
(c)
|
||
Total liabilities
|
|
|
$
|
126
|
|
|
|
|
|
|
|
|
|
2018
|
|||||||||||||
(In millions)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input
|
|
Range
(Weighted Average) |
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Securities available for sale, carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Mortgage- and asset-backed securities
|
|
|
$
|
177
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(a)
|
Public utilities
|
|
|
109
|
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
N/A
|
(a)
|
|
Banks/financial institutions
|
|
|
23
|
|
|
|
Consensus pricing
|
|
Offered quotes
|
|
N/A
|
(a)
|
|
Other corporate
|
|
|
213
|
|
|
|
Discounted cash flow
|
|
Credit spreads
|
|
N/A
|
(a)
|
|
Equity securities
|
|
|
46
|
|
|
|
Net asset value
|
|
Offered quotes
|
|
N/A
|
(a)
|
|
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
125
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.75% - 2.84%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.18% - .71%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
19 - 120 bps
|
|
||
|
|
|
57
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.75% - 2.84%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.18% - .71%
|
(c)
|
||
Total assets
|
|
|
$
|
750
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Other liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Foreign currency swaps
|
|
|
$
|
98
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.75% - 2.84%
|
(b)
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.18% - .71%
|
(c)
|
||
|
|
|
|
|
|
|
|
CDS spreads
|
|
28 - 211 bps
|
|
||
|
|
|
4
|
|
|
|
Discounted cash flow
|
|
Interest rates (USD)
|
|
2.75% - 2.84%
|
(b)
|
|
|
|
|
|
|
|
|
|
Interest rates (JPY)
|
|
.18% - .71%
|
(c)
|
||
Total liabilities
|
|
|
$
|
102
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
(In millions)
|
Japan
|
|
U.S.
|
|
Japan
|
|
U.S.
|
||||||||||||||||
Deferred policy acquisition costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of year
|
|
$
|
6,384
|
|
|
|
|
$
|
3,491
|
|
|
|
|
$
|
6,150
|
|
|
|
|
$
|
3,355
|
|
|
Capitalization
|
|
825
|
|
|
|
|
626
|
|
|
|
|
833
|
|
|
|
|
669
|
|
|
||||
Amortization
|
|
(709
|
)
|
|
|
|
(573
|
)
|
|
|
|
(710
|
)
|
|
|
|
(534
|
)
|
|
||||
Foreign currency translation and other
|
|
84
|
|
|
|
|
0
|
|
|
|
|
111
|
|
|
|
|
1
|
|
|
||||
Balance, end of year
|
|
$
|
6,584
|
|
|
|
|
$
|
3,544
|
|
|
|
|
$
|
6,384
|
|
|
|
|
$
|
3,491
|
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Advertising expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Aflac Japan
|
|
$
|
101
|
|
|
|
|
$
|
108
|
|
|
|
|
$
|
100
|
|
|
Aflac U.S.
|
|
118
|
|
|
|
|
110
|
|
|
|
|
110
|
|
|
|||
Total advertising expense
|
|
$
|
219
|
|
|
|
|
$
|
218
|
|
|
|
|
$
|
210
|
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Depreciation expense
|
|
$
|
40
|
|
|
|
|
$
|
48
|
|
|
|
|
$
|
50
|
|
|
Other amortization expense
|
|
1
|
|
|
|
|
1
|
|
|
|
|
3
|
|
|
|||
Total depreciation and other amortization expense
|
|
$
|
41
|
|
|
|
|
$
|
49
|
|
|
|
|
$
|
53
|
|
|
|
|
Liability Amounts
|
|
|
Interest Rate Assumptions
|
|
|
||||||
(In millions)
|
|
2019
|
|
2018
|
|
|
|
|
|||||
Health insurance
|
|
|
|
|
|
|
|
|
|
||||
Japan
|
|
$
|
50,941
|
|
|
$
|
49,496
|
|
|
|
0.6 - 6.75
|
%
|
|
U.S.
|
|
8,646
|
|
|
8,442
|
|
|
|
3.0 - 7.0
|
|
|
||
Intercompany eliminations
|
|
(532
|
)
|
(1)
|
(583
|
)
|
(1)
|
|
2.0
|
|
|
||
Life insurance
|
|
|
|
|
|
|
|
|
|
||||
Japan
|
|
30,520
|
|
|
28,318
|
|
|
|
1.0 - 4.5
|
|
|
||
U.S.
|
|
760
|
|
|
695
|
|
|
|
2.5 - 6.0
|
|
|
||
Total
|
|
$
|
90,335
|
|
|
$
|
86,368
|
|
|
|
|
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Unpaid supplemental health claims, beginning of period
|
|
$
|
3,952
|
|
|
|
|
$
|
3,884
|
|
|
|
|
$
|
3,707
|
|
|
Less reinsurance recoverables
|
|
27
|
|
|
|
|
30
|
|
|
|
|
27
|
|
|
|||
Net balance, beginning of period
|
|
3,925
|
|
|
|
|
3,854
|
|
|
|
|
3,680
|
|
|
|||
Add claims incurred during the period related to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current year
|
|
7,216
|
|
|
|
|
7,101
|
|
|
|
|
6,979
|
|
|
|||
Prior years
|
|
(552
|
)
|
|
|
|
(563
|
)
|
|
|
|
(518
|
)
|
|
|||
Total incurred
|
|
6,664
|
|
|
|
|
6,538
|
|
|
|
|
6,461
|
|
|
|||
Less claims paid during the period on claims incurred during:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current year
|
|
4,715
|
|
|
|
|
4,612
|
|
|
|
|
4,530
|
|
|
|||
Prior years
|
|
1,965
|
|
|
|
|
1,898
|
|
|
|
|
1,822
|
|
|
|||
Total paid
|
|
6,680
|
|
|
|
|
6,510
|
|
|
|
|
6,352
|
|
|
|||
Effect of foreign exchange rate changes on unpaid claims
|
|
29
|
|
|
|
|
43
|
|
|
|
|
65
|
|
|
|||
Net balance, end of period
|
|
3,938
|
|
|
|
|
3,925
|
|
|
|
|
3,854
|
|
|
|||
Add reinsurance recoverables
|
|
30
|
|
|
|
|
27
|
|
|
|
|
30
|
|
|
|||
Unpaid supplemental health claims, end of period
|
|
3,968
|
|
|
|
|
3,952
|
|
|
|
|
3,884
|
|
|
|||
Unpaid life claims, end of period
|
|
691
|
|
|
|
|
632
|
|
|
|
|
508
|
|
|
|||
Total liability for unpaid policy claims
|
|
$
|
4,659
|
|
|
|
|
$
|
4,584
|
|
|
|
|
$
|
4,392
|
|
|
(In millions)
|
2019
|
2018
|
2017
|
||||||||||||
Direct premium income
|
|
$
|
19,122
|
|
|
|
$
|
19,018
|
|
|
|
$
|
18,875
|
|
|
Ceded to other companies:
|
|
|
|
|
|
|
|
|
|
||||||
Ceded Aflac Japan closed blocks
|
|
(478
|
)
|
|
|
(497
|
)
|
|
|
(515
|
)
|
|
|||
Other
|
|
(69
|
)
|
|
|
(58
|
)
|
|
|
(51
|
)
|
|
|||
Assumed from other companies:
|
|
|
|
|
|
|
|
|
|
||||||
Retrocession activities
|
|
200
|
|
|
|
208
|
|
|
|
216
|
|
|
|||
Other
|
|
5
|
|
|
|
6
|
|
|
|
6
|
|
|
|||
Net premium income
|
|
$
|
18,780
|
|
|
|
$
|
18,677
|
|
|
|
$
|
18,531
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Direct benefits and claims
|
|
$
|
12,237
|
|
|
|
$
|
12,293
|
|
|
|
$
|
12,486
|
|
|
Ceded benefits and change in reserves for future benefits:
|
|
|
|
|
|
|
|
|
|
||||||
Ceded Aflac Japan closed blocks
|
|
(433
|
)
|
|
|
(450
|
)
|
|
|
(473
|
)
|
|
|||
Eliminations
|
|
41
|
|
|
|
43
|
|
|
|
51
|
|
|
|||
Other
|
|
(57
|
)
|
|
|
(44
|
)
|
|
|
(44
|
)
|
|
|||
Assumed from other companies:
|
|
|
|
|
|
|
|
|
|
||||||
Retrocession activities
|
|
194
|
|
|
|
209
|
|
|
|
209
|
|
|
|||
Eliminations
|
|
(41
|
)
|
|
|
(53
|
)
|
|
|
(51
|
)
|
|
|||
Other
|
|
1
|
|
|
|
2
|
|
|
|
3
|
|
|
|||
Benefits and claims, net
|
|
$
|
11,942
|
|
|
|
$
|
12,000
|
|
|
|
$
|
12,181
|
|
|
(In millions)
|
2019
|
|
2018
|
||||||||
4.00% senior notes due February 2022 (1)
|
|
$
|
348
|
|
|
|
|
$
|
348
|
|
|
3.625% senior notes due June 2023
|
|
698
|
|
|
|
|
698
|
|
|
||
3.625% senior notes due November 2024
|
|
747
|
|
|
|
|
746
|
|
|
||
3.25% senior notes due March 2025
|
|
448
|
|
|
|
|
447
|
|
|
||
2.875% senior notes due October 2026
|
|
298
|
|
|
|
|
297
|
|
|
||
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
|
|
|
||
4.750% senior notes due January 2049
|
|
541
|
|
|
|
|
540
|
|
|
||
Yen-denominated senior notes and subordinated debentures:
|
|
|
|
|
|
|
|
||||
.932% senior notes due January 2027 (principal amount ¥60.0 billion)
|
|
545
|
|
|
|
|
538
|
|
|
||
.500% senior notes due December 2029 (principal amount ¥12.6 billion)
|
|
114
|
|
|
|
|
0
|
|
|
||
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)
|
|
266
|
|
|
|
|
262
|
|
|
||
.843% senior notes due December 2031 (principal amount ¥9.3 billion)
|
|
84
|
|
|
|
|
0
|
|
|
||
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)
|
|
138
|
|
|
|
|
136
|
|
|
||
.934% senior notes due December 2034 (principal amount ¥9.8 billion)
|
|
88
|
|
|
|
|
0
|
|
|
||
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)
|
|
81
|
|
|
|
|
79
|
|
|
||
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)
|
|
57
|
|
|
|
|
0
|
|
|
||
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)
|
|
543
|
|
|
|
|
536
|
|
|
||
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion)
|
|
272
|
|
|
|
|
0
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
|
|
|
||||
Variable interest rate loan due September 2026 (.42% in 2019 and .32% in 2018, principal amount ¥5.0 billion)
|
|
45
|
|
|
|
|
45
|
|
|
||
Variable interest rate loan due September 2029 (.57% in 2019 and .47% in 2018, principal amount ¥25.0 billion)
|
|
227
|
|
|
|
|
225
|
|
|
||
Finance lease obligations payable through 2026
|
|
12
|
|
|
|
|
13
|
|
|
||
Operating lease obligations payable through 2049 (2)
|
|
149
|
|
|
|
|
0
|
|
|
||
Total notes payable and lease obligations
|
|
$
|
6,569
|
|
|
|
|
$
|
5,778
|
|
|
(In millions)
|
Total
Notes Payable |
||||
2020
|
|
$
|
0
|
|
|
2021
|
|
0
|
|
|
|
2022
|
|
350
|
|
|
|
2023
|
|
700
|
|
|
|
2024
|
|
750
|
|
|
|
Thereafter
|
|
4,658
|
|
|
|
Total
|
|
$
|
6,458
|
|
|
|
2019
|
||||||||||
(In millions)
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
2020
|
$
|
49
|
|
|
$
|
4
|
|
|
$
|
53
|
|
2021
|
37
|
|
|
3
|
|
|
40
|
|
|||
2022
|
31
|
|
|
2
|
|
|
33
|
|
|||
2023
|
10
|
|
|
2
|
|
|
12
|
|
|||
2024
|
10
|
|
|
1
|
|
|
11
|
|
|||
After 2024
|
22
|
|
|
0
|
|
|
22
|
|
|||
Total lease payments
|
$
|
159
|
|
|
$
|
12
|
|
|
$
|
171
|
|
Less: Interest
|
10
|
|
|
0
|
|
|
10
|
|
|||
Present value of lease liabilities
|
$
|
149
|
|
|
$
|
12
|
|
|
$
|
161
|
|
|
2019
|
Weighted average remaining lease term (years):
|
|
Operating leases
|
6.8
|
Finance leases
|
3.7
|
|
|
Weighted average discount rate:
|
|
Operating leases
|
2.1%
|
Finance leases
|
1.5%
|
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
|
December 18, 2020
|
$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
|
5 years
|
March 29,
2024, or the date commitments are terminated pursuant to an event of default |
¥100.0 billion
|
¥0.0 billion
|
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 29, 2024 |
.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
|
November 18, 2024, or the date commitments are terminated pursuant to an event of default
|
$1.0 billion
|
$0.0 billion
|
A rate per annum equal to, at the Company's option, either, (a) the rate for Eurocurrency for deposits in the London interbank market for a period of one, two, three or six months (LIBOR) 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 in effect for such day as publicly announced from time to time by Mizuho as its “prime rate”, and (3) the LIBOR for a one month interest period in effect on such day (or if such day is not a business day, the immediately preceding business day) plus 1.00%, and in each case an applicable margin
|
No later than November 18, 2024
|
.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, 2020
|
$250 million
|
$0 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, 2020
|
¥50.0 billion
|
¥0.0 billion
|
Three-month TIBOR plus 70 basis points per annum
|
3 months
|
None
|
General corporate purposes
|
Aflac Incorporated(1)
|
uncommitted revolving
|
364 days
|
November 25, 2020
|
¥50.0 billion
|
¥0.0 billion
|
Three-month TIBOR plus 70 basis points per annum
|
3 months
|
None
|
General corporate purposes
|
(In millions)
|
Foreign
|
|
U.S.
|
|
Total
|
||||||||||||
2019:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
737
|
|
|
|
|
$
|
69
|
|
|
|
|
$
|
806
|
|
|
Deferred
|
|
183
|
|
|
|
|
152
|
|
|
|
|
335
|
|
|
|||
Total income tax expense
|
|
$
|
920
|
|
|
|
|
$
|
221
|
|
|
|
|
$
|
1,141
|
|
|
2018:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
771
|
|
|
|
|
$
|
608
|
|
|
|
|
$
|
1,379
|
|
|
Deferred
|
|
93
|
|
|
|
|
(409
|
)
|
|
|
|
(316
|
)
|
|
|||
Total income tax expense
|
|
$
|
864
|
|
|
|
|
$
|
199
|
|
|
|
|
$
|
1,063
|
|
|
2017:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
722
|
|
|
|
|
$
|
(91
|
)
|
|
|
|
$
|
631
|
|
|
Deferred
|
|
(24
|
)
|
|
|
|
(1,193
|
)
|
|
|
|
(1,217
|
)
|
|
|||
Total income tax expense
|
|
$
|
698
|
|
|
|
|
$
|
(1,284
|
)
|
|
|
|
$
|
(586
|
)
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Income taxes based on U.S. statutory rates
|
|
$
|
933
|
|
|
|
|
$
|
836
|
|
|
|
|
$
|
1,406
|
|
|
Foreign rate differential
|
|
229
|
|
|
|
|
220
|
|
|
|
|
0
|
|
|
|||
Write-down of U.S. deferred tax liabilities for tax reform change
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(1,933
|
)
|
|
|||
Utilization of foreign tax credit
|
|
(6
|
)
|
|
|
|
(3
|
)
|
|
|
|
(27
|
)
|
|
|||
Nondeductible expenses
|
|
10
|
|
|
|
|
21
|
|
|
|
|
10
|
|
|
|||
Other, net
|
|
(25
|
)
|
|
|
|
(11
|
)
|
|
|
|
(42
|
)
|
|
|||
Income tax expense
|
|
$
|
1,141
|
|
|
|
|
$
|
1,063
|
|
|
|
|
$
|
(586
|
)
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Statements of earnings
|
|
$
|
1,141
|
|
|
|
|
$
|
1,063
|
|
|
|
|
$
|
(586
|
)
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses) during period
|
|
27
|
|
|
|
|
10
|
|
|
|
|
52
|
|
|
|||
Unrealized gains (losses) on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on investment
securities during period |
|
1,532
|
|
|
|
|
(787
|
)
|
|
|
|
575
|
|
|
|||
Reclassification adjustment for realized (gains) losses
on investment securities included in net earnings |
|
5
|
|
|
|
|
(12
|
)
|
|
|
|
1
|
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
(3
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Pension liability adjustment during period
|
|
(18
|
)
|
|
|
|
(8
|
)
|
|
|
|
3
|
|
|
|||
Total income tax expense (benefit) related to items of
other comprehensive income (loss) |
|
1,543
|
|
|
|
|
(797
|
)
|
|
|
|
631
|
|
|
|||
Total income taxes
|
|
$
|
2,684
|
|
|
|
|
$
|
266
|
|
|
|
|
$
|
45
|
|
|
(In millions)
|
2019
|
|
2018
|
||||||||
Deferred income tax liabilities:
|
|
|
|
|
|
|
|
||||
Deferred policy acquisition costs
|
|
$
|
3,492
|
|
|
|
|
$
|
3,404
|
|
|
Unrealized gains and other basis differences on investments
|
|
4,485
|
|
|
|
|
1,307
|
|
|
||
Premiums receivable
|
|
152
|
|
|
|
|
149
|
|
|
||
Policy benefit reserves
|
|
3,442
|
|
|
|
|
3,828
|
|
|
||
Total deferred income tax liabilities
|
|
11,571
|
|
|
|
|
8,688
|
|
|
||
Deferred income tax assets:
|
|
|
|
|
|
|
|
||||
Unfunded retirement benefits
|
|
8
|
|
|
|
|
8
|
|
|
||
Other accrued expenses
|
|
36
|
|
|
|
|
40
|
|
|
||
Policy and contract claims
|
|
781
|
|
|
|
|
775
|
|
|
||
Foreign currency loss on Aflac Japan
|
|
16
|
|
|
|
|
38
|
|
|
||
Deferred compensation
|
|
162
|
|
|
|
|
163
|
|
|
||
Capital loss carryforwards
|
|
34
|
|
|
|
|
5
|
|
|
||
Depreciation
|
|
164
|
|
|
|
|
119
|
|
|
||
Anticipatory foreign tax credit
|
|
5,487
|
|
|
|
|
4,040
|
|
|
||
Deferred foreign tax credit
|
|
605
|
|
|
|
|
591
|
|
|
||
Other
|
|
204
|
|
|
|
|
150
|
|
|
||
Total deferred income tax assets before valuation allowance
|
|
7,497
|
|
|
|
|
5,929
|
|
|
||
Valuation allowance
|
|
(1,340
|
)
|
|
|
|
(738
|
)
|
|
||
Total deferred income tax assets after valuation allowance
|
|
6,157
|
|
|
|
|
5,191
|
|
|
||
Net deferred income tax liability
|
|
5,414
|
|
|
|
|
3,497
|
|
|
||
Current income tax (asset) liability
|
|
(44
|
)
|
|
|
|
523
|
|
|
||
Total income tax liability
|
|
$
|
5,370
|
|
|
|
|
$
|
4,020
|
|
|
(In millions)
|
|
2019
|
|
|
2018
|
|
||||
Balance, beginning of year
|
|
$
|
15
|
|
|
|
$
|
14
|
|
|
Additions for tax positions of prior years
|
|
2
|
|
|
|
1
|
|
|
||
Balance, end of year
|
|
$
|
17
|
|
|
|
$
|
15
|
|
|
11.
|
SHAREHOLDERS' EQUITY
|
(In thousands of shares)
|
2019
|
|
2018
|
|
2017
|
Common stock - issued:
|
|
|
|
|
|
Balance, beginning of period
|
1,347,540
|
|
1,345,762
|
|
1,342,498
|
Exercise of stock options and issuance of restricted shares
|
1,769
|
|
1,778
|
|
3,264
|
Balance, end of period
|
1,349,309
|
|
1,347,540
|
|
1,345,762
|
Treasury stock:
|
|
|
|
|
|
Balance, beginning of period
|
592,254
|
|
564,852
|
|
530,877
|
Purchases of treasury stock:
|
|
|
|
|
|
Share repurchase program
|
31,994
|
|
28,949
|
|
35,510
|
Other
|
592
|
|
392
|
|
1,018
|
Dispositions of treasury stock:
|
|
|
|
|
|
Shares issued to AFL Stock Plan
|
(1,610)
|
|
(1,306)
|
|
(1,782)
|
Exercise of stock options
|
(418)
|
|
(519)
|
|
(734)
|
Other
|
(296)
|
|
(114)
|
|
(37)
|
Balance, end of period
|
622,516
|
|
592,254
|
|
564,852
|
Shares outstanding, end of period
|
726,793
|
|
755,286
|
|
780,910
|
(In thousands)
|
2019
|
|
2018
|
|
2017
|
|||||||||
Anti-dilutive share-based awards
|
|
6
|
|
|
|
|
44
|
|
|
|
|
510
|
|
|
(In thousands of shares)
|
2019
|
|
2018
|
|
2017
|
|||
Weighted-average outstanding shares used for calculating basic EPS
|
742,414
|
|
|
769,588
|
|
|
792,042
|
|
Dilutive effect of share-based awards
|
4,016
|
|
|
5,062
|
|
|
5,819
|
|
Weighted-average outstanding shares used for calculating diluted EPS
|
746,430
|
|
|
774,650
|
|
|
797,861
|
|
2019
|
|||||||||||||||||||||||||||||
(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
|
|
$
|
(1,847
|
)
|
|
|
|
$
|
4,234
|
|
|
|
|
$
|
(24
|
)
|
|
|
|
$
|
(212
|
)
|
|
|
|
$
|
2,151
|
|
|
Other comprehensive
income (loss) before reclassification |
|
224
|
|
|
|
|
4,327
|
|
|
|
|
(9
|
)
|
|
|
|
(76
|
)
|
|
|
|
4,466
|
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
(13
|
)
|
|
|
|
0
|
|
|
|
|
11
|
|
|
|
|
(2
|
)
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
224
|
|
|
|
|
4,314
|
|
|
|
|
(9
|
)
|
|
|
|
(65
|
)
|
|
|
|
4,464
|
|
|
|||||
Balance, end of period
|
|
$
|
(1,623
|
)
|
|
|
|
$
|
8,548
|
|
|
|
|
$
|
(33
|
)
|
|
|
|
$
|
(277
|
)
|
|
|
|
$
|
6,615
|
|
|
2018
|
|||||||||||||||||||||||||||||
(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
|
|
$
|
(1,750
|
)
|
|
|
|
$
|
5,964
|
|
|
|
|
$
|
(23
|
)
|
|
|
|
$
|
(163
|
)
|
|
|
|
$
|
4,028
|
|
|
Cumulative effect of change
in accounting principle - financial instruments |
|
0
|
|
|
|
|
(148
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
(148
|
)
|
|
|||||
Cumulative effect of change
in accounting principle - tax effects from tax reform |
|
(325
|
)
|
|
|
|
734
|
|
|
|
|
(3
|
)
|
|
|
|
(32
|
)
|
|
|
|
374
|
|
|
|||||
Other comprehensive
income (loss) before reclassification |
|
228
|
|
|
|
|
(2,350
|
)
|
|
|
|
2
|
|
|
|
|
(30
|
)
|
|
|
|
(2,150
|
)
|
|
|||||
Amounts reclassified from
accumulated other comprehensive income (loss) |
|
0
|
|
|
|
|
34
|
|
|
|
|
0
|
|
|
|
|
13
|
|
|
|
|
47
|
|
|
|||||
Net current-period other
comprehensive income (loss) |
|
228
|
|
|
|
|
(2,316
|
)
|
|
|
|
2
|
|
|
|
|
(17
|
)
|
|
|
|
(2,103
|
)
|
|
|||||
Balance, end of period
|
|
$
|
(1,847
|
)
|
|
|
|
$
|
4,234
|
|
|
|
|
$
|
(24
|
)
|
|
|
|
$
|
(212
|
)
|
|
|
|
$
|
2,151
|
|
|
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
|
|
|
(In millions)
|
2018
|
|
||||
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 |
|
$
|
(63
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
17
|
|
|
Other gains (losses)
|
|
|
|
(46
|
)
|
|
Total before tax
|
|
|
|
12
|
|
|
Tax (expense) or benefit(1)
|
|
|
|
$
|
(34
|
)
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(18
|
)
|
|
Acquisition and operating expenses(2)
|
Prior service (cost) credit
|
|
0
|
|
|
Acquisition and operating expenses(2)
|
|
|
|
5
|
|
|
Tax (expense) or benefit(1)
|
|
|
|
$
|
(13
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(47
|
)
|
|
Net of tax
|
(In millions)
|
2017
|
|
||||
Details about Accumulated Other Comprehensive Income Components
|
Amount Reclassified from Accumulated Other Comprehensive Income
|
Affected Line Item in the
Statements of Earnings |
||||
Unrealized gains (losses) on available-for-sale
securities |
|
$
|
(29
|
)
|
|
Other-than-temporary impairment
losses realized |
|
|
27
|
|
|
Other gains (losses)
|
|
|
|
(2
|
)
|
|
Total before tax
|
|
|
|
1
|
|
|
Tax (expense) or benefit(1)
|
|
|
|
$
|
(1
|
)
|
|
Net of tax
|
Amortization of defined benefit pension items:
|
|
|
|
|
||
Actuarial gains (losses)
|
|
$
|
(17
|
)
|
|
Acquisition and operating expenses(2)
|
Prior service (cost) credit
|
|
0
|
|
|
Acquisition and operating expenses(2)
|
|
|
|
6
|
|
|
Tax (expense) or benefit(1)
|
|
|
|
$
|
(11
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(12
|
)
|
|
Net of tax
|
(In millions, except for per-share amounts)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Impact on earnings from continuing operations
|
|
$
|
59
|
|
|
|
|
$
|
57
|
|
|
|
|
$
|
51
|
|
|
Impact on earnings before income taxes
|
|
59
|
|
|
|
|
57
|
|
|
|
|
51
|
|
|
|||
Impact on net earnings
|
|
46
|
|
|
|
|
45
|
|
|
|
|
35
|
|
|
|||
Impact on net earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
.06
|
|
|
|
|
$
|
.06
|
|
|
|
|
$
|
.05
|
|
|
Diluted
|
|
.06
|
|
|
|
|
.06
|
|
|
|
|
.05
|
|
|
(In thousands of shares)
|
Stock
Option Shares |
|
Weighted-Average
Exercise Price Per Share |
|||||||
Outstanding at December 31, 2016
|
|
12,680
|
|
|
|
|
$
|
26.28
|
|
|
Granted in 2017
|
|
626
|
|
|
|
|
35.80
|
|
|
|
Canceled in 2017
|
|
(236
|
)
|
|
|
|
24.95
|
|
|
|
Exercised in 2017
|
|
(5,766
|
)
|
|
|
|
30.11
|
|
|
|
Outstanding at December 31, 2017
|
|
7,304
|
|
|
|
|
28.03
|
|
|
|
Granted in 2018
|
|
67
|
|
|
|
|
44.59
|
|
|
|
Canceled in 2018
|
|
(167
|
)
|
|
|
|
32.11
|
|
|
|
Exercised in 2018
|
|
(1,874
|
)
|
|
|
|
26.78
|
|
|
|
Outstanding at December 31, 2018
|
|
5,330
|
|
|
|
|
28.54
|
|
|
|
Granted in 2019
|
|
0
|
|
|
|
|
0.00
|
|
|
|
Canceled in 2019
|
|
(40
|
)
|
|
|
|
27.82
|
|
|
|
Exercised in 2019
|
|
(1,584
|
)
|
|
|
|
25.97
|
|
|
|
Outstanding at December 31, 2019
|
|
3,706
|
|
|
|
|
$
|
29.65
|
|
|
(In thousands of shares)
|
2019
|
|
2018
|
|
2017
|
|||||||||
Shares exercisable, end of year
|
|
3,553
|
|
|
|
|
3,917
|
|
|
|
|
4,208
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Expected term (years)
|
|
7.0
|
|
|
|
7.0
|
|
|
|
5.9
|
|
Expected volatility
|
|
18.0
|
%
|
|
|
22.0
|
%
|
|
|
26.0
|
%
|
Annual forfeiture rate
|
|
3.9
|
|
|
|
3.6
|
|
|
|
3.4
|
|
Risk-free interest rate
|
|
2.9
|
|
|
|
2.5
|
|
|
|
2.5
|
|
Dividend yield
|
|
2.2
|
|
|
|
2.4
|
|
|
|
2.5
|
|
(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 |
||||||||||||||||||||||
|
$
|
16.92
|
|
-
|
$
|
24.75
|
|
|
|
|
872
|
|
|
|
|
2.1
|
|
|
|
$
|
23.58
|
|
|
|
|
872
|
|
|
|
|
$
|
23.58
|
|
|
|
24.79
|
|
-
|
28.97
|
|
|
|
|
919
|
|
|
|
|
3.8
|
|
|
|
28.49
|
|
|
|
|
919
|
|
|
|
|
28.49
|
|
|
||||
|
29.04
|
|
-
|
31.21
|
|
|
|
|
988
|
|
|
|
|
4.7
|
|
|
|
30.77
|
|
|
|
|
988
|
|
|
|
|
30.77
|
|
|
||||
|
31.22
|
|
-
|
36.21
|
|
|
|
|
778
|
|
|
|
|
6.5
|
|
|
|
34.31
|
|
|
|
|
626
|
|
|
|
|
34.02
|
|
|
||||
|
37.22
|
|
-
|
44.59
|
|
|
|
|
149
|
|
|
|
|
7.8
|
|
|
|
40.57
|
|
|
|
|
148
|
|
|
|
|
40.59
|
|
|
||||
|
$
|
16.92
|
|
-
|
$
|
44.59
|
|
|
|
|
3,706
|
|
|
|
|
4.4
|
|
|
|
$
|
29.65
|
|
|
|
|
3,553
|
|
|
|
|
$
|
29.40
|
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Total intrinsic value of options exercised
|
|
$
|
38
|
|
|
|
|
$
|
34
|
|
|
|
|
$
|
87
|
|
|
Cash received from options exercised
|
|
40
|
|
|
|
|
48
|
|
|
|
|
58
|
|
|
|||
Tax benefit realized as a result of options exercised and
restricted stock releases |
|
34
|
|
|
|
|
25
|
|
|
|
|
74
|
|
|
(In millions)
|
2019
|
|
|||
Expected volatility (based on Aflac Inc. and peer group historical daily stock price)
|
|
15.82
|
%
|
|
|
Expected life from grant date (years)
|
|
2.9
|
|
|
|
Risk-free interest rate (based on U.S. Treasury yields at the date of grant)
|
|
2.51
|
%
|
|
|
(In thousands of shares)
|
Shares
|
|
Weighted-Average
Grant-Date Fair Value Per Share |
|||||||
Restricted stock at December 31, 2016
|
|
3,736
|
|
|
|
|
$
|
30.88
|
|
|
Granted in 2017
|
|
1,118
|
|
|
|
|
36.48
|
|
|
|
Canceled in 2017
|
|
(202
|
)
|
|
|
|
32.23
|
|
|
|
Vested in 2017
|
|
(1,018
|
)
|
|
|
|
31.09
|
|
|
|
Restricted stock at December 31, 2017
|
|
3,634
|
|
|
|
|
32.40
|
|
|
|
Granted in 2018
|
|
1,121
|
|
|
|
|
44.27
|
|
|
|
Canceled in 2018
|
|
(105
|
)
|
|
|
|
34.39
|
|
|
|
Vested in 2018
|
|
(1,243
|
)
|
|
|
|
31.64
|
|
|
|
Restricted stock at December 31, 2018
|
|
3,407
|
|
|
|
|
36.52
|
|
|
|
Granted in 2019
|
|
1,070
|
|
|
|
|
49.68
|
|
|
|
Canceled in 2019
|
|
(39
|
)
|
|
|
|
41.60
|
|
|
|
Vested in 2019
|
|
(1,865
|
)
|
|
|
|
32.73
|
|
|
|
Restricted stock at December 31, 2019
|
|
2,573
|
|
|
|
|
$
|
44.66
|
|
|
|
In Dollars
|
|
In Yen
|
||||||||||||||||||||||||||||||||
(In millions of dollars and billions of yen)
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
Profit remittances
|
|
$
|
2,070
|
|
|
|
|
$
|
808
|
|
|
|
|
$
|
1,150
|
|
|
|
|
¥
|
225.2
|
|
|
|
|
¥
|
89.7
|
|
|
|
|
¥
|
129.3
|
|
|
|
|
Pension Benefits
|
|
Other
|
|||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
|||||||||||||||||||||||||||
(In millions)
|
|
2019
|
2018
|
|
2019
|
2018
|
|
2019
|
2018
|
||||||||||||||||||||||||
Projected benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Benefit obligation, beginning of year
|
|
|
$
|
396
|
|
|
|
$
|
341
|
|
|
|
|
$
|
875
|
|
|
|
$
|
908
|
|
|
|
|
$
|
37
|
|
|
|
$
|
36
|
|
|
Service cost
|
|
|
22
|
|
|
|
19
|
|
|
|
|
23
|
|
|
|
27
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Interest cost
|
|
|
7
|
|
|
|
7
|
|
|
|
|
20
|
|
|
|
31
|
|
|
|
|
1
|
|
|
|
1
|
|
|
||||||
Actuarial (gain) loss
|
|
|
17
|
|
|
|
35
|
|
|
|
|
163
|
|
(3)
|
|
(69
|
)
|
|
|
|
4
|
|
|
|
4
|
|
|
||||||
Benefits and expenses paid
|
|
|
(11
|
)
|
|
|
(11
|
)
|
|
|
|
(23
|
)
|
|
|
(22
|
)
|
|
|
|
(3
|
)
|
|
|
(4
|
)
|
|
||||||
Effect of foreign exchange
rate changes |
|
|
5
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Benefit obligation, end of year
|
|
|
436
|
|
|
|
396
|
|
|
|
|
1,058
|
|
|
|
875
|
|
|
|
|
39
|
|
|
|
37
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets,
beginning of year |
|
|
289
|
|
|
|
270
|
|
|
|
|
465
|
|
|
|
448
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Actual return on plan assets
|
|
|
24
|
|
|
|
(9
|
)
|
|
|
|
98
|
|
|
|
(30
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Employer contributions
|
|
|
38
|
|
|
|
34
|
|
|
|
|
104
|
|
|
|
69
|
|
|
|
|
3
|
|
|
|
4
|
|
|
||||||
Benefits and expenses paid
|
|
|
(11
|
)
|
|
|
(11
|
)
|
|
|
|
(23
|
)
|
|
|
(22
|
)
|
|
|
|
(3
|
)
|
|
|
(4
|
)
|
|
||||||
Effect of foreign exchange
rate changes |
|
|
4
|
|
|
|
5
|
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Fair value of plan assets,
end of year |
|
|
344
|
|
|
|
289
|
|
|
|
|
644
|
|
|
|
465
|
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Funded status of the plans(1)
|
|
|
$
|
(92
|
)
|
|
|
$
|
(107
|
)
|
|
|
|
$
|
(414
|
)
|
|
|
$
|
(410
|
)
|
|
|
|
$
|
(39
|
)
|
|
|
$
|
(37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amounts recognized in accumulated other
comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial (gain) loss
|
|
|
$
|
92
|
|
|
|
$
|
95
|
|
|
|
|
$
|
259
|
|
|
|
$
|
174
|
|
|
|
|
$
|
12
|
|
|
|
$
|
9
|
|
|
Prior service (credit) cost
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
|
|
0
|
|
|
|
0
|
|
|
||||||
Total included in accumulated
other comprehensive income |
|
|
$
|
90
|
|
|
|
$
|
93
|
|
|
|
|
$
|
255
|
|
|
|
$
|
170
|
|
|
|
|
$
|
12
|
|
|
|
$
|
9
|
|
|
Accumulated benefit obligation
|
|
|
$
|
390
|
|
|
|
$
|
356
|
|
|
|
|
$
|
886
|
|
|
|
$
|
746
|
|
|
|
|
N/A
|
|
(2)
|
|
N/A
|
|
(2)
|
|
|
Pension Benefits
|
|||||||||||||||||||||||
|
|
Japan
|
|
|
|
U.S.
|
|||||||||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Accumulated benefit obligation
|
|
|
$
|
390
|
|
|
|
|
$
|
356
|
|
|
|
|
|
$
|
886
|
|
|
|
|
$
|
746
|
|
|
Fair value of plan assets
|
|
|
344
|
|
|
|
|
289
|
|
|
|
|
|
644
|
|
|
|
|
465
|
|
|
|
|
Pension Benefits
|
|||||||||||||||||||||||
|
|
Japan (1)
|
|
|
|
U.S.(2)
|
|||||||||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
|
|
2019
|
|
2018
|
|
||||||||||||||
Projected benefit obligation
|
|
|
$
|
436
|
|
|
|
|
$
|
396
|
|
|
|
|
|
$
|
1,058
|
|
|
|
|
$
|
875
|
|
|
Fair value of plan assets
|
|
|
344
|
|
|
|
|
289
|
|
|
|
|
|
644
|
|
|
|
|
465
|
|
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||
|
Japan
|
|
|
U.S.
|
|
|
Postretirement Benefits
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
2019
|
|
2018
|
|
2017
|
|
|||||||||
Weighted-average actuarial assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Discount rate - net periodic benefit cost
|
1.25
|
%
|
|
1.25
|
%
|
|
1.25
|
%
|
|
|
4.25
|
%
|
|
3.75
|
%
|
|
4.25
|
%
|
|
|
4.25
|
%
|
|
3.75
|
%
|
|
4.25
|
%
|
|
Discount rate - benefit obligations
|
.75
|
|
|
1.25
|
|
|
1.25
|
|
|
|
3.25
|
|
|
4.25
|
|
|
3.75
|
|
|
|
3.25
|
|
|
4.25
|
|
|
3.75
|
|
|
Expected long-term return on plan assets
|
2.00
|
|
|
2.00
|
|
|
2.00
|
|
|
|
6.25
|
|
|
6.50
|
|
|
6.75
|
|
|
|
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
|
|
N/A
|
(1)
|
|
7.50
|
|
(2)
|
7.40
|
|
(2)
|
5.40
|
|
(2)
|
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
Japan
|
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||||||||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||||||||
Service cost
|
|
|
$
|
22
|
|
|
|
|
$
|
19
|
|
|
|
|
$
|
20
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
27
|
|
|
|
|
$
|
24
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
|
|
$
|
0
|
|
|
Interest cost
|
|
|
7
|
|
|
|
|
7
|
|
|
|
|
6
|
|
|
|
|
20
|
|
|
|
|
31
|
|
|
|
|
40
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|||||||||
Expected return on plan
assets |
|
|
(6
|
)
|
|
|
|
(6
|
)
|
|
|
|
(5
|
)
|
|
|
|
(29
|
)
|
|
|
|
(26
|
)
|
|
|
|
(24
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||||||||
Amortization of net actuarial
loss |
|
|
4
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
10
|
|
|
|
|
16
|
|
|
|
|
14
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|||||||||
Net periodic (benefit) cost
|
|
|
$
|
27
|
|
|
|
|
$
|
21
|
|
|
|
|
$
|
23
|
|
|
|
|
$
|
24
|
|
|
|
|
$
|
48
|
|
|
|
|
$
|
54
|
|
|
|
|
$
|
2
|
|
|
|
|
$
|
2
|
|
|
|
|
$
|
2
|
|
|
|
|
Pension Benefits
|
|
Other
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Japan
|
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||||||||||||||||||||||||||||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||||||||
Net actuarial loss (gain)
|
|
|
$
|
1
|
|
|
|
|
$
|
52
|
|
|
|
|
$
|
(21
|
)
|
|
|
|
$
|
95
|
|
|
|
|
$
|
(13
|
)
|
|
|
|
$
|
28
|
|
|
|
|
$
|
4
|
|
|
|
|
$
|
4
|
|
|
|
|
$
|
0
|
|
|
Amortization of net actuarial loss
|
|
|
(4
|
)
|
|
|
|
(1
|
)
|
|
|
|
(2
|
)
|
|
|
|
(10
|
)
|
|
|
|
(16
|
)
|
|
|
|
(14
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|||||||||
Total
|
|
|
$
|
(3
|
)
|
|
|
|
$
|
51
|
|
|
|
|
$
|
(23
|
)
|
|
|
|
$
|
85
|
|
|
|
|
$
|
(29
|
)
|
|
|
|
$
|
14
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
3
|
|
|
|
|
$
|
(1
|
)
|
|
|
|
Pension Benefits
|
|
Other
|
|||||||||||||
(In millions)
|
|
Japan
|
U.S.
|
|
Postretirement Benefits
|
||||||||||||
2020
|
|
|
$
|
13
|
|
|
|
$
|
25
|
|
|
|
|
$
|
3
|
|
|
2021
|
|
|
12
|
|
|
|
27
|
|
|
|
|
4
|
|
|
|||
2022
|
|
|
17
|
|
|
|
29
|
|
|
|
|
4
|
|
|
|||
2023
|
|
|
14
|
|
|
|
30
|
|
|
|
|
4
|
|
|
|||
2024
|
|
|
16
|
|
|
|
31
|
|
|
|
|
4
|
|
|
|||
2025-2029
|
|
|
84
|
|
|
|
203
|
|
|
|
|
16
|
|
|
|
|
Japan Pension
|
|
U.S. Pension
|
||||||
Domestic equities
|
|
|
5
|
%
|
|
|
|
40
|
%
|
|
International equities
|
|
|
20
|
|
|
|
|
20
|
|
|
Fixed income securities
|
|
|
66
|
|
|
|
|
40
|
|
|
Other
|
|
|
9
|
|
|
|
|
0
|
|
|
Total
|
|
|
100
|
%
|
|
|
|
100
|
%
|
|
(In millions)
|
2019
|
|
2018
|
||||||||
Japan pension plan assets:
|
|
|
|
|
|
|
|
||||
Equities:
|
|
|
|
|
|
|
|
||||
Japanese equity securities
|
|
$
|
17
|
|
|
|
|
$
|
14
|
|
|
International equity securities
|
|
67
|
|
|
|
|
50
|
|
|
||
Fixed income securities:
|
|
|
|
|
|
|
|
||||
Japanese bonds
|
|
20
|
|
|
|
|
34
|
|
|
||
International bonds
|
|
207
|
|
|
|
|
160
|
|
|
||
Insurance contracts
|
|
33
|
|
|
|
|
31
|
|
|
||
Total
|
|
$
|
344
|
|
|
|
|
$
|
289
|
|
|
(In millions)
|
2019
|
|
2018
|
||||||||
U.S. pension plan assets:
|
|
|
|
|
|
|
|
||||
Mutual funds:
|
|
|
|
|
|
|
|
||||
Large cap equity funds
|
|
$
|
179
|
|
|
|
|
$
|
120
|
|
|
Mid cap equity funds
|
|
22
|
|
|
|
|
17
|
|
|
||
Real estate equity funds
|
|
16
|
|
|
|
|
13
|
|
|
||
International equity funds
|
|
112
|
|
|
|
|
92
|
|
|
||
Fixed income bond funds
|
|
209
|
|
|
|
|
179
|
|
|
||
Aflac Incorporated common stock
|
|
6
|
|
|
|
|
5
|
|
|
||
Cash and cash equivalents
|
|
100
|
|
|
|
|
39
|
|
|
||
Total
|
|
$
|
644
|
|
|
|
|
$
|
465
|
|
|
(In millions, except for per-share amounts)
|
March 31,
2019 |
|
June 30,
2019 |
|
September 30,
2019 |
|
December 31,
2019 |
||||||||||||||||
Net premium income
|
|
$
|
4,691
|
|
|
|
|
$
|
4,681
|
|
|
|
|
$
|
4,736
|
|
|
|
|
$
|
4,671
|
|
|
Net investment income
|
|
878
|
|
|
|
|
878
|
|
|
|
|
936
|
|
|
|
|
886
|
|
|
||||
Realized investment gains (losses)
|
|
71
|
|
|
|
|
(66
|
)
|
|
|
|
(153
|
)
|
|
|
|
12
|
|
|
||||
Other income (loss)
|
|
17
|
|
|
|
|
18
|
|
|
|
|
17
|
|
|
|
|
34
|
|
|
||||
Total revenues
|
|
5,657
|
|
|
|
|
5,511
|
|
|
|
|
5,536
|
|
|
|
|
5,603
|
|
|
||||
Total benefits and expenses
|
|
4,415
|
|
|
|
|
4,402
|
|
|
|
|
4,500
|
|
|
|
|
4,545
|
|
|
||||
Earnings before income taxes
|
|
1,242
|
|
|
|
|
1,109
|
|
|
|
|
1,036
|
|
|
|
|
1,058
|
|
|
||||
Total income tax
|
|
314
|
|
|
|
|
292
|
|
|
|
|
259
|
|
|
|
|
276
|
|
|
||||
Net earnings
|
|
$
|
928
|
|
|
|
|
$
|
817
|
|
|
|
|
$
|
777
|
|
|
|
|
$
|
782
|
|
|
Net earnings per basic share
|
|
$
|
1.23
|
|
|
|
|
$
|
1.10
|
|
|
|
|
$
|
1.05
|
|
|
|
|
$
|
1.07
|
|
|
Net earnings per diluted share
|
|
1.23
|
|
|
|
|
1.09
|
|
|
|
|
1.04
|
|
|
|
|
1.06
|
|
|
||||
Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding.
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(In millions, except for per-share amounts)
|
March 31,
2018 |
|
June 30,
2018 |
|
September 30,
2018 |
|
December 31,
2018 |
||||||||||||||||
Net premium income
|
|
$
|
4,745
|
|
|
|
|
$
|
4,706
|
|
|
|
|
$
|
4,636
|
|
|
|
|
$
|
4,591
|
|
|
Net investment income
|
|
837
|
|
|
|
|
862
|
|
|
|
|
870
|
|
|
|
|
874
|
|
|
||||
Realized investment gains (losses)
|
|
(134
|
)
|
|
|
|
3
|
|
|
|
|
56
|
|
|
|
|
(355
|
)
|
|
||||
Other income (loss)
|
|
16
|
|
|
|
|
18
|
|
|
|
|
15
|
|
|
|
|
16
|
|
|
||||
Total revenues
|
|
5,464
|
|
|
|
|
5,589
|
|
|
|
|
5,577
|
|
|
|
|
5,126
|
|
|
||||
Total benefits and expenses
|
|
4,482
|
|
|
|
|
4,458
|
|
|
|
|
4,431
|
|
|
|
|
4,404
|
|
|
||||
Earnings before income taxes
|
|
982
|
|
|
|
|
1,131
|
|
|
|
|
1,146
|
|
|
|
|
722
|
|
|
||||
Total income tax
|
|
265
|
|
|
|
|
299
|
|
|
|
|
301
|
|
|
|
|
197
|
|
|
||||
Net earnings
|
|
$
|
717
|
|
|
|
|
$
|
832
|
|
|
|
|
$
|
845
|
|
|
|
|
$
|
525
|
|
|
Net earnings per basic share
|
|
$
|
.92
|
|
|
|
|
$
|
1.08
|
|
|
|
|
$
|
1.10
|
|
|
|
|
$
|
.69
|
|
|
Net earnings per diluted share
|
|
.91
|
|
|
|
|
1.07
|
|
|
|
|
1.09
|
|
|
|
|
.69
|
|
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
Director Compensation; Compensation Committee; Compensation Committee Report; Compensation Discussion and Analysis; 2019 Summary Compensation Table; 2019 Grants of Plan-Based Awards; 2019 Outstanding Equity Awards at Fiscal Year-End; 2019 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.
|
ACA
|
Affordable Care Act
|
AFS
|
Available-for-Sale
|
AOCI
|
Accumulated Other Comprehensive Income
|
APPI
|
Act on the Protection of Personal Information
|
ASC
|
Accounting Standards Codification
|
ASOP
|
Actuarial Standards of Practice
|
ASU
|
Accounting Standards Update
|
BoJ
|
Bank of Japan
|
CDSs
|
Credit Default Swaps
|
CFTC
|
Commodity Futures Trading Commission
|
CMLs
|
Commercial Mortgage Loans
|
COSO
|
Committee of Sponsoring Organizations of the Treadway Commission
|
CSAs
|
Credit Support Annexes
|
DAC
|
Deferred Policy Acquisition Costs
|
DTL
|
Deferred Tax Liability
|
Dodd-Frank
|
Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
|
DTA
|
Deferred Tax Asset
|
ECB
|
European Central Bank
|
EPS
|
Earnings Per Share
|
FASB
|
Financial Accounting Standard Boards
|
FHLB
|
Federal Home Loan Bank of Atlanta
|
FIO
|
Federal Insurance Office
|
FSA
|
Japanese Financial Services Agency
|
GLBA
|
Gramm-Leach-Bliley Act of 1999
|
HIPAA
|
Health Insurance Portability and Accountability Act of 1996
|
HTM
|
Held-to-Maturity
|
IRS
|
Internal Revenue Service
|
ISDA
|
International Swaps and Derivatives Association, Inc.
|
ISOs
|
Incentive Stock Options
|
Japan Post Group
|
Japan Post Holdings Co., Ltd., JPC and JPI, collectively
|
Japan Post Holdings
|
Japan Post Holdings Co., Ltd.
|
JGB
|
Japan Government Bond
|
JPC
|
Japan Post Co. Ltd
|
JPI
|
Japan Post Insurance Co., Ltd.
|
LDP
|
Liberal Democratic Party
|
LIBOR
|
London Interbank Offered Rate
|
LIPPC
|
Life Insurance Policyholder Protection Corporation
|
MD&A
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
MMLs
|
Middle Market Loans
|
MOF
|
Ministry of Finance
|
NAIC
|
National Association of Insurance Commissioners
|
NDOI
|
Nebraska Department of Insurance
|
NOLHGA
|
National Organization of Life and Health Guaranty Associations
|
NQSOs
|
Non-qualifying Stock Options
|
NRSROs
|
Nationally Recognized Statistical Rating Organizations
|
NYDFS
|
New York Department of Financial Services
|
OIS
|
Overnight Index Swap
|
ORSA
|
Own Risk and Solvency Assessment
|
OTC
|
Over-the-Counter
|
OTTI
|
Other-than-temporary Impairment
|
PCD Financial Assets
|
Purchased Credit-Deteriorated Financial Assets
|
PCI Financial Assets
|
Purchased Credit-Impaired Financial Assets
|
PRM
|
Policy Reserve Matching
|
PSUs
|
Performance-based restricted stock units
|
RBC
|
Risk-Based Capital
|
S&P 500
|
Standard & Poor's 500 Index
|
S&P Life and Health
|
Standard & Poor's Life and Health Insurance Index
|
SAB 118
|
Staff Accounting Bulletin 118
|
SAP
|
Statutory Accounting Principles
|
SCDOI
|
South Carolina Department of Insurance
|
SEC
|
Securities and Exchange Commission
|
SIFMA
|
Securities Industry and Financial Markets Association
|
Singapore Life
|
Singapore Life Pte. Ltd.
|
SMI
|
Solvency Modernization Initiative
|
SMR
|
Solvency Margin Ratio
|
SOFR
|
Secured Overnight Financing Rate
|
TAC
|
Total Adjusted Capital
|
Tax Act
|
Tax Cuts and Jobs Act
|
The Plan
|
Aflac Incorporated Long-Term Incentive Plan
|
TIBOR
|
Tokyo Interbank Market Rate
|
TREs
|
Transitional Real Estate Loans
|
TTM
|
Telegraphic Transfer Middle Rate
|
U.S. GAAP
|
U.S. Generally Accepted Accounting Principles
|
UST
|
Treasury Obligations of the U.S. Government
|
VIEs
|
Variable Interest Entities
|
(b)
|
EXHIBIT INDEX(1)
|
|||
|
-
|
|
Articles of Incorporation, as amended – incorporated by reference from Form 10-Q for June 30, 2008, Exhibit 3.0.
|
|
|
-
|
|
Bylaws of the Corporation, as amended and restated – incorporated by reference from Form 8-K dated November 10, 2015, Exhibit 3.1.
|
|
|
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. The Company agrees to furnish a copy of any long-term debt instrument to the Securities and Exchange Commission upon request.
|
|
-
|
|
Description of common stock securities registered pursuant to Section 12 of the Securities Exchange Act of 1934.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
Fifteenth Supplemental Indenture, dated as of October 18, 2018, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 1.159% Senior Note due 2030) – incorporated by reference from Form 8-K dated October 18, 2018, Exhibit 4.1.
|
|
|
-
|
|
Sixteenth Supplemental Indenture, dated as of October 18, 2018, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 1.488% Senior Note due 2033) – incorporated by reference from Form 8-K dated October 18, 2018, Exhibit 4.2.
|
|
|
-
|
|
Seventeenth Supplemental Indenture, dated as of October 18, 2018, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 1.750% Senior Note due 2038) – incorporated by reference from Form 8-K dated October 18, 2018, Exhibit 4.3.
|
|
|
-
|
|
Eighteenth Supplemental Indenture, dated as of October 31, 2018, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 4.750% Senior Note due 2049) – incorporated by reference from Form 8-K dated October 31, 2018, Exhibit 4.1.
|
|
|
-
|
|
Nineteenth Supplemental Indenture, dated as of December 17, 2019, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 0.500% Senior Note due 2029) – incorporated by reference from Form 8-K dated December 17, 2019, Exhibit 4.1.
|
|
-
|
|
Twentieth Supplemental Indenture, dated as of December 17, 2019, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 0.843% Senior Note due 2031) – incorporated by reference from Form 8-K dated December 17, 2019, Exhibit 4.2.
|
|
|
-
|
|
Twenty-First Supplemental Indenture, dated as of December 17, 2019, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 0.934% Senior Note due 2034) – incorporated by reference from Form 8-K dated December 17, 2019, Exhibit 4.3.
|
|
|
-
|
|
Twenty-Second Supplemental Indenture, dated as of December 17, 2019, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 1.122% Senior Note due 2039) – incorporated by reference from Form 8-K dated December 17, 2019, Exhibit 4.4.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
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.
|
|
-
|
|
Third Amendment to the Aflac Incorporated Executive Deferred Compensation Plan, as amended and restated, effective September 1, 2015 – incorporated by reference from 2018 Form 10-K, Exhibit 10.10.
|
|
|
-
|
|
Aflac Incorporated Executive Deferred Compensation Plan, as amended and restated, effective January 1, 2020.
|
|
|
-
|
|
Aflac Incorporated 2013 Management Incentive Plan – incorporated by reference from the 2012 Proxy Statement, Appendix B.
|
|
|
-
|
|
Aflac Incorporated 2018 Management Incentive Plan - incorporated by reference from the 2017 Proxy Statement, Appendix B.
|
|
|
-
|
|
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.
|
|
|
-
|
|
Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from the 1997 Shareholders’ Proxy Statement, Appendix B.
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
2004 Aflac Incorporated Long-Term Incentive Plan, as amended and restated March 14, 2012 – incorporated by reference from the 2012 Proxy Statement, Appendix A.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
-
|
|
Notice of time based restricted stock unit and 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, 2018, Exhibit 10.1.
|
|
|
-
|
|
2017 Notice of performance based restricted stock and 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, 2018, Exhibit 10.2.
|
|
|
-
|
|
Notice of time based restricted stock unit and restricted stock unit agreement under the Aflac Incorporated Long-Term Incentive Plan, as amended and restated February 14, 2017 – incorporated by reference from Form 10-Q for March 31, 2018, Exhibit 10.3.
|
|
|
-
|
|
2018 Notice of performance based restricted stock and 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 March 31, 2018, Exhibit 10.4.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
Aflac Life Insurance Japan Ltd. Officer Retirement Plan.
|
|
|
-
|
|
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.
|
|
|
-
|
|
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.
|
|
|
-
|
|
Amendment to Aflac Employment Agreement with Eric M. Kirsch, dated November 30, 2017 – incorporated by reference from 2017 Form 10-K, Exhibit 10.42.
|
|
|
-
|
|
Aflac Incorporated Employment Agreement with Frederick J. Crawford, effective June 30, 2015 – incorporated by reference from Form 8-K dated June 24, 2015, Exhibit 10.1.
|
|
|
-
|
|
Aflac Incorporated Employment Agreement with Charles D. Lake II, dated January 1, 2018 – incorporated by reference from Form 10-Q for March 31, 2018, Exhibit 10.5.
|
|
|
-
|
|
Amendment to Aflac Incorporated Employment Agreement with Charles D. Lake II, effective January 1, 2020.
|
|
|
-
|
|
Aflac Incorporated Employment Agreement with Audrey Boone Tillman, dated June 11, 2015 – incorporated by reference from Form 10-Q for March 31, 2018, Exhibit 10.6.
|
|
|
-
|
|
Basic Agreement regarding the “Strategic Alliance Based on Capital Relationship”, dated December 19, 2018, by and among Japan Post Holdings Co., Ltd., Aflac Incorporated and Aflac Life Insurance Japan Ltd. – incorporated by reference from Form 8-K dated December 19, 2018, Exhibit 10.1.
|
|
|
-
|
|
Letter Agreement, dated December 19, 2018, by and between Japan Post Holdings Co., Ltd. and Aflac Incorporated – incorporated by reference from Form 8-K dated December 19, 2018, Exhibit 10.2.
|
|
|
-
|
|
Shareholders Agreement, dated February 28, 2019, by and between Aflac Incorporated, Japan Post Holdings Co., Ltd., J&A Alliance Holdings Corporation (solely in its capacity as trustee of J&A Alliance Trust), and General Incorporated Association J&A Alliance – incorporated by reference from Form 10-Q for March 31, 2019, Exhibit 10.50.
|
|
|
-
|
|
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 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.
|
(c)
|
FINANCIAL STATEMENT SCHEDULES
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Management and service fees from subsidiaries(1)
|
|
$
|
151
|
|
|
|
|
$
|
190
|
|
|
|
|
$
|
297
|
|
|
Net investment income
|
|
77
|
|
|
|
|
69
|
|
|
|
|
30
|
|
|
|||
Interest from subsidiaries(1)
|
|
4
|
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|||
Realized investment gains (losses)
|
|
98
|
|
|
|
|
(16
|
)
|
|
|
|
(1
|
)
|
|
|||
Total revenues
|
|
330
|
|
|
|
|
247
|
|
|
|
|
331
|
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense
|
|
200
|
|
|
|
|
188
|
|
|
|
|
197
|
|
|
|||
Other operating expenses(2)
|
|
221
|
|
|
|
|
225
|
|
|
|
|
180
|
|
|
|||
Total operating expenses
|
|
421
|
|
|
|
|
413
|
|
|
|
|
377
|
|
|
|||
Earnings before income taxes and equity in earnings of
subsidiaries |
|
(91
|
)
|
|
|
|
(166
|
)
|
|
|
|
(46
|
)
|
|
|||
Income tax expense (benefit)
|
|
(22
|
)
|
|
|
|
(12
|
)
|
|
|
|
(23
|
)
|
|
|||
Earnings before equity in earnings of subsidiaries
|
|
(69
|
)
|
|
|
|
(154
|
)
|
|
|
|
(23
|
)
|
|
|||
Equity in earnings of subsidiaries(1)
|
|
3,373
|
|
|
|
|
3,074
|
|
|
|
|
4,627
|
|
|
|||
Net earnings
|
|
$
|
3,304
|
|
|
|
|
$
|
2,920
|
|
|
|
|
$
|
4,604
|
|
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Net earnings
|
|
$
|
3,304
|
|
|
|
|
$
|
2,920
|
|
|
|
|
$
|
4,604
|
|
|
Other comprehensive income (loss) before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized foreign currency translation gains (losses) during period
|
|
252
|
|
|
|
|
232
|
|
|
|
|
286
|
|
|
|||
Unrealized gains (losses) on fixed maturity securities during period
|
|
5,852
|
|
|
|
|
(3,109
|
)
|
|
|
|
1,733
|
|
|
|||
Unrealized gains (losses) on derivatives during period
|
|
(12
|
)
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|||
Pension liability adjustment during period
|
|
(85
|
)
|
|
|
|
(25
|
)
|
|
|
|
9
|
|
|
|||
Total other comprehensive income (loss) before income taxes
|
|
6,007
|
|
|
|
|
(2,900
|
)
|
|
|
|
2,029
|
|
|
|||
Income tax expense (benefit) related to items of other comprehensive
income (loss) |
|
1,543
|
|
|
|
|
(797
|
)
|
|
|
|
631
|
|
|
|||
Other comprehensive income (loss), net of income taxes
|
|
4,464
|
|
|
|
|
(2,103
|
)
|
|
|
|
1,398
|
|
|
|||
Total comprehensive income (loss)
|
|
$
|
7,768
|
|
|
|
|
$
|
817
|
|
|
|
|
$
|
6,002
|
|
|
|
December 31,
|
||||||||||
(In millions, except for share and per-share amounts)
|
2019
|
|
2018
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||
Investments and cash:
|
|
|
|
|
|
|
|
||||
Fixed maturity securities available for sale, at fair value
(amortized cost $1,506 in 2019 and $1,209 in 2018) |
|
$
|
1,567
|
|
|
|
|
$
|
1,222
|
|
|
Investments in subsidiaries(1)
|
|
30,744
|
|
|
|
|
26,230
|
|
|
||
Other investments
|
|
36
|
|
|
|
|
21
|
|
|
||
Cash and cash equivalents
|
|
2,508
|
|
|
|
|
1,767
|
|
|
||
Total investments and cash
|
|
34,855
|
|
|
|
|
29,240
|
|
|
||
Due from subsidiaries(1)
|
|
170
|
|
|
|
|
98
|
|
|
||
Income taxes receivable
|
|
337
|
|
|
|
|
176
|
|
|
||
Other assets
|
|
405
|
|
|
|
|
390
|
|
|
||
Total assets
|
|
$
|
35,767
|
|
|
|
|
$
|
29,904
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||
Employee benefit plans
|
|
$
|
323
|
|
|
|
|
$
|
310
|
|
|
Notes payable
|
|
6,136
|
|
|
|
|
5,765
|
|
|
||
Other liabilities
|
|
349
|
|
|
|
|
367
|
|
|
||
Total liabilities
|
|
6,808
|
|
|
|
|
6,442
|
|
|
||
Shareholders' equity:
|
|
|
|
|
|
|
|
||||
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2019 and 2018; issued 1,349,309 shares in 2019 and 1,347,540 shares in 2018
|
|
135
|
|
|
|
|
135
|
|
|
||
Additional paid-in capital
|
|
2,313
|
|
|
|
|
2,177
|
|
|
||
Retained earnings
|
|
34,291
|
|
|
|
|
31,788
|
|
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||
Unrealized foreign currency translation gains (losses)
|
|
(1,623
|
)
|
|
|
|
(1,847
|
)
|
|
||
Unrealized gains (losses) on fixed maturity securities
|
|
8,548
|
|
|
|
|
4,234
|
|
|
||
Unrealized gains (losses) on derivatives
|
|
(33
|
)
|
|
|
|
(24
|
)
|
|
||
Pension liability adjustment
|
|
(277
|
)
|
|
|
|
(212
|
)
|
|
||
Treasury stock, at average cost
|
|
(14,395
|
)
|
|
|
|
(12,789
|
)
|
|
||
Total shareholders' equity
|
|
28,959
|
|
|
|
|
23,462
|
|
|
||
Total liabilities and shareholders' equity
|
|
$
|
35,767
|
|
|
|
|
$
|
29,904
|
|
|
|
Years ended December 31,
|
||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings
|
|
$
|
3,304
|
|
|
|
|
$
|
2,920
|
|
|
|
|
$
|
4,604
|
|
|
Adjustments to reconcile net earnings to net cash provided from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity in earnings of subsidiaries(1)
|
|
(3,373
|
)
|
|
|
|
(3,074
|
)
|
|
|
|
(4,627
|
)
|
|
|||
Cash dividends received from subsidiaries
|
|
3,466
|
|
|
|
|
1,820
|
|
|
|
|
2,001
|
|
|
|||
Other, net
|
|
(203
|
)
|
|
|
|
99
|
|
|
|
|
(46
|
)
|
|
|||
Net cash provided (used) by operating activities
|
|
3,194
|
|
|
|
|
1,765
|
|
|
|
|
1,932
|
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities sold
|
|
340
|
|
|
|
|
207
|
|
|
|
|
263
|
|
|
|||
Fixed maturity securities purchased
|
|
(639
|
)
|
|
|
|
(254
|
)
|
|
|
|
(329
|
)
|
|
|||
Other investments sold (purchased)
|
|
(16
|
)
|
|
|
|
31
|
|
|
|
|
(47
|
)
|
|
|||
Settlement of derivatives
|
|
22
|
|
|
|
|
(2
|
)
|
|
|
|
223
|
|
|
|||
Additional capitalization of subsidiaries(1)
|
|
(214
|
)
|
|
|
|
(62
|
)
|
|
|
|
(69
|
)
|
|
|||
Other, net
|
|
87
|
|
|
|
|
(107
|
)
|
|
|
|
(218
|
)
|
|
|||
Net cash provided (used) by investing activities
|
|
(420
|
)
|
|
|
|
(187
|
)
|
|
|
|
(177
|
)
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Purchases of treasury stock
|
|
(1,627
|
)
|
|
|
|
(1,301
|
)
|
|
|
|
(1,351
|
)
|
|
|||
Proceeds from borrowings
|
|
347
|
|
|
|
|
1,020
|
|
|
|
|
1,040
|
|
|
|||
Principal payments under debt obligations
|
|
0
|
|
|
|
|
(550
|
)
|
|
|
|
(1,161
|
)
|
|
|||
Dividends paid to shareholders
|
|
(771
|
)
|
|
|
|
(793
|
)
|
|
|
|
(661
|
)
|
|
|||
Treasury stock reissued
|
|
49
|
|
|
|
|
58
|
|
|
|
|
33
|
|
|
|||
Proceeds from exercise of stock options
|
|
29
|
|
|
|
|
34
|
|
|
|
|
38
|
|
|
|||
Net change in amount due to/from subsidiaries(1)
|
|
(58
|
)
|
|
|
|
(4
|
)
|
|
|
|
(5
|
)
|
|
|||
Other, net
|
|
(2
|
)
|
|
|
|
0
|
|
|
|
|
0
|
|
|
|||
Net cash provided (used) by financing activities
|
|
(2,033
|
)
|
|
|
|
(1,536
|
)
|
|
|
|
(2,067
|
)
|
|
|||
Net change in cash and cash equivalents
|
|
741
|
|
|
|
|
42
|
|
|
|
|
(312
|
)
|
|
|||
Cash and cash equivalents, beginning of period
|
|
1,767
|
|
|
|
|
1,725
|
|
|
|
|
2,037
|
|
|
|||
Cash and cash equivalents, end of period
|
|
$
|
2,508
|
|
|
|
|
$
|
1,767
|
|
|
|
|
$
|
1,725
|
|
|
(In millions)
|
2019
|
|
2018
|
||||||||
4.00% senior notes due February 2022 (1)
|
|
$
|
348
|
|
|
|
|
$
|
348
|
|
|
3.625% senior notes due June 2023
|
|
698
|
|
|
|
|
698
|
|
|
||
3.625% senior notes due November 2024
|
|
747
|
|
|
|
|
746
|
|
|
||
3.25% senior notes due March 2025
|
|
448
|
|
|
|
|
447
|
|
|
||
2.875% senior notes due October 2026
|
|
298
|
|
|
|
|
297
|
|
|
||
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
|
|
|
||
4.750% senior notes due January 2049
|
|
541
|
|
|
|
|
540
|
|
|
||
Yen-denominated senior notes and subordinated debentures:
|
|
|
|
|
|
|
|
||||
.932% senior notes due January 2027 (principal amount ¥60.0 billion)
|
|
545
|
|
|
|
|
538
|
|
|
||
.500% senior notes due December 2029 (principal amount ¥12.6 billion)
|
|
114
|
|
|
|
|
0
|
|
|
||
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)
|
|
266
|
|
|
|
|
262
|
|
|
||
.843% senior notes due December 2031 (principal amount ¥9.3 billion)
|
|
84
|
|
|
|
|
0
|
|
|
||
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)
|
|
138
|
|
|
|
|
136
|
|
|
||
.934% senior notes due December 2034 (principal amount ¥9.8 billion)
|
|
88
|
|
|
|
|
0
|
|
|
||
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)
|
|
81
|
|
|
|
|
79
|
|
|
||
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)
|
|
57
|
|
|
|
|
0
|
|
|
||
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)
|
|
543
|
|
|
|
|
536
|
|
|
||
Yen-denominated loans:
|
|
|
|
|
|
|
|
||||
Variable interest rate loan due September 2026 (.42% in 2019 and .32 in 2018, principal amount ¥5.0 billion)
|
|
45
|
|
|
|
|
45
|
|
|
||
Variable interest rate loan due September 2029 (.57% in 2019 and .47 in 2018, principal amount ¥25.0 billion)
|
|
227
|
|
|
|
|
225
|
|
|
||
Total notes payable
|
|
$
|
6,136
|
|
|
|
|
$
|
5,765
|
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Interest paid
|
|
$
|
189
|
|
|
|
|
$
|
179
|
|
|
|
|
$
|
195
|
|
|
Noncash financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Treasury stock issued for shareholder dividend reinvestment
|
|
30
|
|
|
|
|
8
|
|
|
|
|
29
|
|
|
(In millions)
|
Deferred Policy
Acquisition Costs |
|
Future Policy
Benefits & Unpaid Policy Claims |
|
Unearned
Premiums |
|
Other
Policyholders' Funds |
||||||||||||||||
2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
|
|
$
|
6,584
|
|
|
|
|
$
|
84,341
|
|
|
|
|
$
|
4,135
|
|
|
|
|
$
|
7,317
|
|
|
Aflac U.S.
|
|
3,544
|
|
|
|
|
11,184
|
|
|
|
|
111
|
|
|
|
|
0
|
|
|
||||
All other
|
|
0
|
|
|
|
|
223
|
|
|
|
|
0
|
|
|
|
|
0
|
|
|
||||
Intercompany eliminations
|
|
0
|
|
|
|
|
(754
|
)
|
|
|
|
(3
|
)
|
|
|
|
0
|
|
|
||||
Total
|
|
$
|
10,128
|
|
|
|
|
$
|
94,994
|
|
|
|
|
$
|
4,243
|
|
|
|
|
$
|
7,317
|
|
|
2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Aflac Japan
|
|
$
|
6,384
|
|
|
|
|
$
|
80,672
|
|
|
|
|
$
|
4,977
|
|
|
|
|
$
|
7,145
|
|
|
Aflac U.S.
|
|
3,491
|
|
|
|
|
10,864
|
|
|
|
|
117
|
|
|
|
|
0
|
|
|
||||
All other
|
|
0
|
|
|
|
|
183
|
|
|
|
|
0
|
|
|
|
|
1
|
|
|
||||
Intercompany eliminations
|
|
0
|
|
|
|
|
(767
|
)
|
|
|
|
(4
|
)
|
|
|
|
0
|
|
|
||||
Total
|
|
$
|
9,875
|
|
|
|
|
$
|
90,952
|
|
|
|
|
$
|
5,090
|
|
|
|
|
$
|
7,146
|
|
|
(In millions)
|
Net
Premium Revenue |
|
Net
Investment Income |
|
Benefits and
Claims, net |
|
Amortization of
Deferred Policy Acquisition Costs |
|
Other
Operating Expenses |
|
Premiums
Written |
||||||||||||||||||||
2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aflac Japan
|
$
|
12,772
|
|
|
|
$
|
2,753
|
|
|
|
|
$
|
8,877
|
|
|
|
|
$
|
709
|
|
|
|
|
$
|
2,465
|
|
|
|
$
|
12,367
|
|
Aflac U.S.
|
5,808
|
|
|
|
720
|
|
|
|
|
2,871
|
|
|
|
|
573
|
|
|
|
|
1,834
|
|
|
|
5,813
|
|
||||||
All other
|
200
|
|
|
|
105
|
|
|
|
|
194
|
|
|
|
|
0
|
|
|
|
|
339
|
|
|
|
0
|
|
||||||
Total
|
$
|
18,780
|
|
|
|
$
|
3,578
|
|
|
|
|
$
|
11,942
|
|
|
|
|
$
|
1,282
|
|
|
|
|
$
|
4,638
|
|
|
|
$
|
18,180
|
|
2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Aflac Japan
|
$
|
12,762
|
|
|
|
$
|
2,639
|
|
|
|
|
$
|
8,913
|
|
|
|
|
$
|
710
|
|
|
|
|
$
|
2,374
|
|
|
|
$
|
12,298
|
|
Aflac U.S.
|
5,708
|
|
|
|
727
|
|
|
|
|
2,887
|
|
|
|
|
534
|
|
|
|
|
1,736
|
|
|
|
5,707
|
|
||||||
All other
|
207
|
|
|
|
76
|
|
|
|
|
200
|
|
|
|
|
1
|
|
|
|
|
420
|
|
|
|
0
|
|
||||||
Total
|
$
|
18,677
|
|
|
|
$
|
3,442
|
|
|
|
|
$
|
12,000
|
|
|
|
|
$
|
1,245
|
|
|
|
|
$
|
4,530
|
|
|
|
$
|
18,005
|
|
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
|
|
(In millions)
|
Gross
Amount |
|
Ceded to
Other Companies |
|
Assumed
from Other companies |
|
Net
Amount |
|
Percentage
of Amount Assumed to Net |
|||||||||||||||
2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
146,585
|
|
|
|
$
|
6,592
|
|
|
|
|
$
|
0
|
|
|
|
$
|
139,993
|
|
|
|
0
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health insurance
|
$
|
15,657
|
|
|
|
$
|
527
|
|
|
|
|
$
|
205
|
|
|
|
$
|
15,335
|
|
|
|
1
|
%
|
|
Life insurance
|
3,465
|
|
|
|
20
|
|
|
|
|
0
|
|
|
|
3,445
|
|
|
|
0
|
|
|
||||
Total earned premiums
|
$
|
19,122
|
|
|
|
$
|
547
|
|
|
|
|
$
|
205
|
|
|
|
$
|
18,780
|
|
|
|
1
|
%
|
|
2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
151,457
|
|
|
|
$
|
4,702
|
|
|
|
|
$
|
0
|
|
|
|
$
|
146,755
|
|
|
|
0
|
%
|
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Health insurance
|
$
|
15,330
|
|
|
|
$
|
541
|
|
|
|
|
$
|
214
|
|
|
|
$
|
15,003
|
|
|
|
1
|
%
|
|
Life insurance
|
3,688
|
|
|
|
14
|
|
|
|
|
0
|
|
|
|
3,674
|
|
|
|
0
|
|
|
||||
Total earned premiums
|
$
|
19,018
|
|
|
|
$
|
555
|
|
|
|
|
$
|
214
|
|
|
|
$
|
18,677
|
|
|
|
1
|
%
|
|
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
|
%
|
|
Aflac Incorporated
|
|
|
||
By:
|
|
/s/ Daniel P. Amos
|
|
February 21, 2020
|
|
|
(Daniel P. Amos)
|
|
|
|
|
Chief Executive Officer,
|
|
|
|
|
Chairman of the Board of Directors
|
|
|
/s/ Daniel P. Amos
|
|
|
Chief Executive Officer,
|
|
February 21, 2020
|
(Daniel P. Amos)
|
|
|
Chairman of the Board of Directors
|
|
|
|
|
|
|
|
|
/s/ Max K. Broden
|
|
|
Executive Vice President,
|
|
February 21, 2020
|
(Max K. Broden)
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
|
|
/s/ June Howard
|
|
|
Senior Vice President, Financial Services;
|
|
February 21, 2020
|
(June Howard)
|
|
|
Chief Accounting Officer
|
|
|
/s/ W. Paul Bowers
|
|
|
|
Director
|
|
February 21, 2020
|
(W. Paul Bowers)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Toshihiko Fukuzawa
|
|
|
|
Director
|
|
February 21, 2020
|
(Toshihiko Fukuzawa)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Robert B. Johnson
|
|
|
|
Director
|
|
February 21, 2020
|
(Robert B. Johnson)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Thomas J. Kenny
|
|
|
|
Director
|
|
February 21, 2020
|
(Thomas J. Kenny)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Georgette D. Kiser
|
|
|
|
Director
|
|
February 21, 2020
|
(Georgette D. Kiser)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Karole F. Lloyd
|
|
|
|
Director
|
|
February 21, 2020
|
(Karole F. Lloyd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Joseph L. Moskowitz
|
|
|
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Director
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February 21, 2020
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(Joseph L. Moskowitz)
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/s/ Barbara K. Rimer
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Director
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February 21, 2020
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(Barbara K. Rimer)
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/s/ Katherine T. Rohrer
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Director
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February 21, 2020
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(Katherine T. Rohrer)
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/s/ Melvin T. Stith
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Director
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February 21, 2020
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(Melvin T. Stith)
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Page
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ARTICLE I DEFINITIONS
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1
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|
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1.1
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Account
|
1
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1.2
|
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Administrative Committee
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1
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1.3
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Affiliate
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1
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1.4
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Annual Bonus
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1
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1.5
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Annual Bonus Contributions
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1
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1.6
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Annual Bonus Election
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1
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1.7
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Annual Compensation
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1
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1.8
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Base Salary
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2
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1.9
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Base Salary Contributions
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2
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1.10
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Beneficiary
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2
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1.11
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Board
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2
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1.12
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Business Day
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2
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1.13
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Cause
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2
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1.14
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Change in Control
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2
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(a) General Definition
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2
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(b) Payment Definition Under Code Section 409A
|
3
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1.15
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Code
|
6
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1.16
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Company Stock
|
6
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1.17
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Company Stock Fund
|
6
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1.18
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Company Stock Unit
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6
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1.19
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Compensation Committee
|
6
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1.20
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Controlling Company
|
6
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1.21
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Deferral Contributions
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6
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1.22
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Director
|
6
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1.23
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Disability or Disabled
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6
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1.24
|
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Discretionary Contributions
|
6
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1.25
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Effective Date
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6
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1.26
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Eligible Employee
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6
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1.27
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ERISA
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7
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1.28
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Executive Employer Contribution
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7
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1.29
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FICA Tax
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7
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1.30
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Financial Hardship
|
7
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1.31
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|
Investment Election
|
7
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1.32
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|
Investment Funds
|
7
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1.33
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|
Key Employee
|
8
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1.34
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|
Matching Contributions
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8
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|
|
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||
|
|
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||
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1.35
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Participant
|
8
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1.36
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Participating Company
|
8
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1.37
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Payment Date
|
8
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1.38
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Plan
|
8
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1.39
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|
Plan Year
|
8
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1.40
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|
Post 409A Account
|
8
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1.41
|
|
Pre-409A Account
|
8
|
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1.42
|
|
Retirement Plans Investment Committee
|
8
|
|
1.43
|
|
Salary Deferral Election
|
9
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|
1.44
|
|
Separate from Service or Separation from Service
|
9
|
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(a) Leaves of Absence
|
9
|
|
|
|
(b) Status Change
|
9
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|
|
|
(c) Termination of Employment
|
9
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|
|
1.45
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SLDCP
|
10
|
|
1.46
|
|
SLDCP Primary Payment Date
|
10
|
|
1.47
|
|
SLDCP Subaccount
|
10
|
|
1.48
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|
Surviving Spouse
|
10
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|
1.49
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|
Trust or Trust Agreement
|
10
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|
1.50
|
|
Trust Fund
|
10
|
|
1.51
|
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Trustee
|
10
|
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1.52
|
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Valuation Date
|
10
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1.53
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Years of Employment
|
10
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1.54
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Years of Participation
|
11
|
|
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||
ARTICLE II ELIGIBILITY AND PARTICIPATION
|
12
|
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2.1
|
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Eligibility for Deferral Contributions
|
12
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(a) Annual Participation
|
12
|
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(b) Interim Plan Year Participation
|
12
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2.2
|
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Procedure for Admission
|
12
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2.3
|
|
Eligibility for Discretionary and Matching Contributions
|
12
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2.4
|
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Eligibility for Executive Employer Contributions
|
12
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2.5
|
|
Cessation of Eligibility
|
12
|
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2.6
|
|
Merger of SLDCP
|
13
|
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(a) 409A Compliance
|
13
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(b) Beneficiary Designations
|
13
|
|
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|
|
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ARTICLE III PARTICIPANTS’ ACCOUNTS; DEFERRALS AND CREDITING
|
14
|
|
||
3.1
|
|
Participants’ Accounts
|
14
|
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(a) Establishment of Accounts
|
14
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(b) Nature of Contributions and Accounts
|
14
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(c) Several Liabilities
|
14
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|
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(d) General Creditors
|
14
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3.2
|
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Deferral Contributions
|
14
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(a) Effective Date
|
15
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(b) Term and Irrevocability of Election
|
15
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(c) Amount
|
16
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(d) Crediting of Deferral Contributions
|
16
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3.3
|
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Matching Contributions
|
16
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3.4
|
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Discretionary Contributions
|
17
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3.5
|
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Executive Employer Contributions
|
17
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3.6
|
|
Debiting of Distributions
|
17
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3.7
|
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Adjustment for Earnings and Losses
|
17
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(a) General Rule
|
17
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(b) Cash Dividends
|
18
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|
|
|
(c) Adjustments for Stock Dividends and Splits
|
18
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3.8
|
|
Value of Account
|
18
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(a) General Rule
|
18
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(b) Value of Company Stock
|
18
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|
|
3.9
|
|
Vesting
|
19
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(a) General
|
19
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|
|
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(b) Executive Employer Contributions
|
19
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|
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(c) Change in Control
|
21
|
|
|
|
(d) Other Vesting Schedules
|
21
|
|
|
3.10
|
|
Notice to Participants of Account Balances
|
22
|
|
3.11
|
|
Good Faith Valuation Binding
|
22
|
|
3.12
|
|
Errors and Omissions in Accounts
|
22
|
|
|
|
|
||
ARTICLE IV INVESTMENT FUNDS
|
23
|
|
||
4.1
|
|
Selection by Retirement Plans Investment Committee
|
23
|
|
4.2
|
|
Participant Direction of Deemed Investments
|
23
|
|
|
(a) Nature of Participant Direction
|
23
|
|
|
|
(b) Investment of Contributions
|
23
|
|
|
|
(c) Investment of Existing Account Balances
|
23
|
|
|
|
(d) Administrative Committee Discretion
|
24
|
|
|
|
|
|
||
ARTICLE V PAYMENT OF POST-409A ACCOUNT BALANCES
|
25
|
|
||
5.1
|
|
Amount of Benefit Payments for Post-409A Account
|
25
|
|
5.2
|
|
Timing and Form of Distribution of Post-409A Account
|
25
|
|
|
(a) Timing of Distributions
|
25
|
|
|
|
(b) Form of Distribution for Post-409A Account Balances
|
27
|
|
|
|
(c) Modifications of Form and Timing
|
27
|
|
|
|
(d) Medium of Payment
|
28
|
|
|
|
(e) Order of Distribution
|
28
|
|
|
|
(f) Cash-out
|
29
|
|
|
5.3
|
|
Change in Control
|
30
|
|
5.4
|
|
Death Benefits
|
30
|
|
5.5
|
|
Distribution of Post-409A Account Discretionary Contributions
|
30
|
|
|
(a) Determination by Grantor
|
30
|
|
|
|
(b) Participant Election in Absence of Designation by Grantor
|
31
|
|
|
|
(c) Default Payment
|
32
|
|
|
5.6
|
|
Distribution of Executive Employer Contributions
|
32
|
|
|
(a) Generally
|
32
|
|
|
(b) Installment Election
|
32
|
|
|
|
(c) Change in Form of Payments
|
32
|
|
|
|
(d) Other Distribution Rules
|
32
|
|
|
5.7
|
|
Hardship Withdrawals
|
33
|
|
5.8
|
|
Taxes
|
33
|
|
|
(a) Amounts Payable Whether or Not Account is in Pay Status
|
33
|
|
|
|
(b) Amounts Payable Only if Account is in Pay Status
|
33
|
|
|
5.9
|
|
Offset of Post-409A Account by Amounts Owed to the Affiliates
|
34
|
|
5.10
|
|
No Acceleration of Post-409A Account Payments
|
34
|
|
|
|
|
||
ARTICLE VI PAYMENT OF PRE-409A ACCOUNT BALANCES
|
35
|
|
||
6.1
|
|
Benefit Payments of Pre-409A Accounts Upon Termination of Service for Reasons Other Than Death
|
35
|
|
|
(a) General Rule Concerning Benefit Payments
|
35
|
|
|
|
(b) Timing of Distribution
|
35
|
|
|
6.2
|
|
Form of Distribution for Pre-409A Account
|
36
|
|
|
(a) Single-Sum Payment
|
36
|
|
|
|
(b) Annual Installments
|
36
|
|
|
|
(c) Multiple Forms of Distribution
|
36
|
|
|
|
(d) Change in Control
|
36
|
|
|
|
(e) Form of Assets
|
37
|
|
|
|
(f) Order of Distribution
|
37
|
|
|
6.3
|
|
Death Benefits
|
37
|
|
6.4
|
|
In-Service Distributions
|
37
|
|
|
(a) Hardship Distributions
|
37
|
|
|
|
(b) Distributions with Forfeiture
|
37
|
|
|
6.5
|
|
Taxes
|
38
|
|
|
|
|
||
ARTICLE VII CLAIMS
|
39
|
|
||
7.1
|
|
Rights
|
39
|
|
7.2
|
|
Claim Procedure
|
39
|
|
|
(a) Initial Claim
|
39
|
|
|
|
(b) Appeal
|
39
|
|
|
7.3
|
|
Satisfaction of Claims
|
40
|
|
|
|
|
||
ARTICLE VIII SOURCE OF FUNDS; TRUST
|
41
|
|
||
8.1
|
|
Source of Funds
|
41
|
|
8.2
|
|
Trust
|
41
|
|
|
(a) Establishment
|
41
|
|
|
|
(b) Distributions
|
41
|
|
|
|
(c) Status of the Trust
|
41
|
|
|
|
(d) Change in Control
|
41
|
|
|
8.3
|
|
Funding Prohibition under Certain Circumstances
|
42
|
|
|
|
|
||
|
|
|
ARTICLE IX ADMINISTRATIVE AND RETIREMENT PLANS INVESTMENT COMMITTEES
|
43
|
|
||
9.1
|
|
Action of Administrative Committee
|
43
|
|
9.2
|
|
Rights and Duties of Administrative Committee
|
43
|
|
9.3
|
|
Compensation, Indemnity and Liability
|
44
|
|
9.4
|
|
Retirement Plans Investment Committee
|
44
|
|
|
(a) Appointment
|
44
|
|
|
|
(b) Duties
|
44
|
|
|
9.5
|
|
Delegation and Discretion
|
44
|
|
|
(a) Delegation
|
44
|
|
|
|
(b) Discretion
|
44
|
|
|
|
|
|
||
ARTICLE X AMENDMENT AND TERMINATION
|
46
|
|
||
10.1
|
|
Amendments
|
46
|
|
10.2
|
|
Termination of Plan
|
46
|
|
|
(a) Freezing
|
46
|
|
|
|
(b) Termination
|
46
|
|
|
|
|
|
||
ARTICLE XI MISCELLANEOUS
|
47
|
|
||
11.1
|
|
Beneficiary Designation
|
47
|
|
|
(a) General
|
47
|
|
|
|
(b) No Designation or Designee Dead or Missing
|
47
|
|
|
11.2
|
|
Distribution Pursuant to Domestic Relations Order
|
47
|
|
11.3
|
|
Taxation
|
47
|
|
11.4
|
|
Elections Prior to 2009
|
48
|
|
11.5
|
|
No Employment Contract
|
48
|
|
11.6
|
|
Headings
|
48
|
|
11.7
|
|
Gender and Number
|
48
|
|
11.8
|
|
Assignment of Benefits
|
48
|
|
11.9
|
|
Legally Incompetent
|
49
|
|
11.10
|
|
Governing Law
|
49
|
|
|
|
|
||
EXHIBIT A
|
A-1
|
|
Communicorp, Inc.
|
|
Original Effective Date of the Plan
|
American Family Life Assurance Company of New York
|
|
Original Effective Date of the Plan
|
American Family Life Assurance Company of Columbus
|
|
Participated through April 2, 2018, when it merged into American Family Life Assurance Company of Columbus (Aflac) (formerly known as Nebraska Life Assurance Company)
|
Aflac International, Inc.
|
|
Original Effective Date of the Plan
|
Continental American Insurance Company
|
|
August 1, 2010
|
Aflac Benefits Advisors, Inc. (formerly known as Aflac Benefits Solutions, Inc.)
|
|
February 1, 2012
|
Aflac Corporate Ventures LLC
|
|
January 1, 2017
|
American Family Life Assurance Company of Columbus (Aflac) (formerly known as Nebraska Life Assurance Company)
|
|
April 2, 2017
|
Aflac Asset Management LLC
|
|
January 1, 2018
|
Empoweredbenefits, LLC
|
|
January 1, 2020
|
Empowered.Insure LLC
|
|
Date it first has one or more Employees
|
Aflac InfoSec Services LLC
|
|
Date it first has one or more Employees
|
Tier One Insurance Company
|
|
Date it first has one or more Employees
|
1.
|
Section 5 of the Employment Agreement is amended to read as follows:
|
3.
|
A new subsection (6) is added to Section 8.B to read as follows:
|
4.
|
Section 13.A(2)(a) of the Employment Agreement is amended to read as follows:
|
Company
|
Jurisdiction
|
American Family Life Assurance Company of Columbus (Aflac)
|
Nebraska
|
American Family Life Assurance Company of New York(1)
|
New York
|
Aflac Asset Management LLC
|
Delaware
|
Aflac Asset Management Japan Ltd.(2)
|
Japan
|
Aflac International, Inc.
|
Georgia
|
Aflac Information Technology, Inc.
|
Georgia
|
Simple Technology, LLC(3)
|
Delaware
|
Aflac Corporate Ventures LLC
|
Delaware
|
Empoweredbenefits, LLC(4)
|
North Carolina
|
Aflac Ventures Labs LLC(4)
|
Delaware
|
Aflac Ventures Seed Fund LLC(4)
|
Delaware
|
Aflac InfoSec Services LLC(4)
|
Delaware
|
Empowered.Insure LLC(4)
|
North Carolina
|
Aflac Innovation Partners G.K.(4)
|
Japan
|
Aflac Ventures LLC(4)
|
Delaware
|
Lapetus Solutions, Inc.(5)
|
Delaware
|
Picwell, Inc.(5)
|
Delaware
|
Wellthie, Inc.(5)
|
Delaware
|
Medical Note, Inc.(5)
|
Japan
|
Sensely Corporation(5)
|
California
|
Aflac Benefits Advisors, Inc.
|
Georgia
|
Communicorp, Inc.
|
Georgia
|
Continental American Insurance Company
|
Nebraska
|
Continental American Group, LLC(6)
|
Georgia
|
Aflac Holdings LLC
|
Nebraska
|
Aflac Life Insurance Japan Ltd.(7)
|
Japan
|
Octagon Delaware Trust(8)
|
Delaware
|
Apollo AF Loan Trust(8)
|
Delaware
|
Global Investment Fund I(8)
|
Delaware
|
Tsusan Co., Ltd.(8)
|
Japan
|
Aflac Insurance Services Co., Ltd.(8)
|
Japan
|
Aflac Payment Services Co., Ltd.(8)
|
Japan
|
Aflac Heartful Services Co., Ltd.(9)
|
Japan
|
Global Alternatives Private Equity Sub-Trust A(10)
|
Cayman Islands
|
Tier One Insurance Company
|
Nebraska
|
Aflac Northern Ireland, Ltd.
|
Northern Ireland, U.K.
|
Argus Holdings, LLC
|
Florida
|
Argus Dental & Vision, Inc.(11)
|
Florida
|
/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 21, 2020
|
|
/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.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date:
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February 21, 2020
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/s/ Max K. Broden
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Max K. Broden
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Executive Vice President, Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Daniel P. Amos
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||
Name:
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|
Daniel P. Amos
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Title:
|
|
Chief Executive Officer
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Date:
|
|
February 21, 2020
|
/s/ Max K. Broden
|
||
Name:
|
|
Max K. Broden
|
Title:
|
|
Chief Financial Officer
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Date:
|
|
February 21, 2020
|