Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 31, 2024

Aflac Incorporated

_________________________________________________________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Georgia

001-07434

58-1167100

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification No.)

1932 Wynnton Road

Columbus

Georgia

31999

(Address of principal executive offices)

(Zip Code)

706.323.3431

_________________________________________________________________________________________________________________________________________________________

(Registrant’s telephone number, including area code)

_________________________________________________________________________________________________________________________________________________________

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.10 Par Value

AFL

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On July 31, 2024, Aflac Incorporated (the "Company") issued a press release dated July 31, 2024 in which it reported the Company's 2024 second quarter financial results. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein in its entirety. In addition, a copy of the Company's second quarter supplemental earnings materials is furnished as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference herein in its entirety.

On July 31, 2024, the Company posted to its investor relations website at investors.aflac.com a video presentation by Max Brodén, the Company's Executive Vice President and Chief Financial Officer, discussing the Company's 2024 second quarter earnings. A copy of the transcript of Mr. Brodén's comments from the Investor Update and a copy of the Investor Presentation are furnished as Exhibit 99.3 and Exhibit 99.4 to this Current Report on Form 8-K, respectively, and are incorporated by reference herein in their entirety. The Investor Update and the Investor Presentation should be read in conjunction with the press release.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.


Exhibit Number						Exhibit Title or Description
99.1						Press release of Aflac Incorporated dated July 31, 2024
99.2						Financial Supplement for Second Quarter 2024
99.3						Transcript of comments in video presentation by Max Brodén, Executive Vice President and Chief Financial Officer of Aflac Incorporated.
99.4						Slides referenced in video presentation by Max Brodén, Executive Vice President and Chief Financial Officer of Aflac Incorporated.
104						Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Aflac Incorporated

July 31, 2024

/s/ Robin L. Blackmon

(Robin L. Blackmon)

Senior Vice President, Financial Services

Chief Accounting Officer

News Release

Aflac Incorporated Announces Second Quarter Results,

Reports Second Quarter Net Earnings of $1.8 Billion,

Declares Third Quarter Cash Dividend

COLUMBUS, Ga. - July 31, 2024 - Aflac Incorporated (NYSE: AFL) today reported its second quarter results.

Total revenues were $5.1 billion in the second quarter of 2024, compared with $5.2 billion in the second quarter of 2023. Net earnings were $1.8 billion, or $3.10 per diluted share, compared with $1.6 billion, or $2.71 per diluted share a year ago.

Net earnings in the second quarter of 2024 included net investment gains of $696 million, or $1.23 per diluted share, compared with net investment gains of $555 million, or $0.92 per diluted share a year ago. These net investment gains were driven by net gains of $649 million on certain derivatives and foreign currency activities; net gains from sales and redemptions of $55 million; and an $11 million gain from an increase in the fair value of equity securities, offset by a $19 million net increase in credit losses.

Adjusted earnings* in the second quarter were $1.0 billion, compared with $954 million in the second quarter of 2023, reflecting an increase of 8.5%. Adjusted earnings per diluted share* increased 15.8% to $1.83 in the quarter. Variable investment income ran nearly $1 million above the company's long-term return expectations. Net investment income included $20 million, or $0.03 per share, from a make-whole call of a security in the Japan segment. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per share by $0.07.

The average yen/dollar exchange rate in the second quarter of 2024 was 155.70, or 11.7% weaker than the average rate of 137.53 in the second quarter of 2023. For the first six months, the average exchange rate was 152.30, or 11.4% weaker than the rate of 134.97 a year ago.

Shareholders’ equity was $26.0 billion, or $46.40 per share, at June 30, 2024, compared with $20.4 billion, or $34.30 per share, at June 30, 2023. Shareholders’ equity at the end of the second quarter included a cumulative increase of $1.4 billion for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative decrease of $5.1 billion at June 30, 2023 and a net unrealized gain on investment securities and derivatives of $379 million, compared with a net unrealized gain of $2.0 billion at June 30, 2023. Shareholders’ equity at the end of the second quarter also included an unrealized foreign currency translation loss of $5.1 billion, compared with an unrealized foreign currency translation loss of $4.2 billion at June 30, 2023. The annualized return on average shareholders’ equity in the second quarter was 28.3%.

For the first six months of 2024, total revenues were up 6.0% to $10.6 billion, compared with $10.0 billion in the first half of 2023. Net earnings were $3.6 billion, or $6.35 per diluted share, compared with $2.8 billion, or $4.64 per diluted share, for the first six months of 2023. Adjusted earnings for the first half of 2024 were $2.0 billion, or $3.49 per diluted share, compared with $1.9 billion, or $3.13 per diluted share, in 2023. Excluding the negative impact of $0.14 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share increased 16.0% to $3.63 for the first six months of 2024.

Shareholders’ equity excluding AOCI (or adjusted book value*) was $29.3 billion, or $52.26 per share at June 30, 2024, compared with $27.8 billion, or $46.61 per share, at June 30, 2023. The annualized adjusted return on equity excluding foreign currency impact* in the second quarter was 14.8%.

AFLAC JAPAN

In yen terms, Aflac Japan's net earned premiums were ¥267.3 billion for the quarter, or 5.7% lower than a year ago, mainly due to the prior year reinsurance transactions and limited-pay policies reaching paid-up status. Adjusted net investment income increased 28.4% to ¥113.0 billion, mainly due to the favorable impact of the weakening yen on U.S. dollar investments, lower hedge costs, higher variable investment income and call income. Total adjusted revenues in yen increased 2.3% to ¥381.2 billion. Pretax adjusted earnings in yen for the quarter increased 18.6% on a reported basis to ¥134.5 billion, primarily due to higher net investment income, as well as lower benefits and expenses during the quarter, partially offset by lower net earned premiums. Pretax adjusted earnings increased 10.6% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment increased to 35.3%, compared with 30.4% a year ago.

For the first six months, net earned premiums in yen were ¥537.2 billion, or 5.8% lower than a year ago. Adjusted net investment income increased 24.1% to ¥209.5 billion. Total adjusted revenues in yen were up 1.0% to ¥748.8 billion. Pretax adjusted earnings were ¥255.1 billion, or 17.2% higher than a year ago.

In dollar terms, net earned premiums decreased 16.9% to $1.7 billion in the second quarter. Adjusted net investment income increased 13.8% to $725 million. Total adjusted revenues declined by 9.7% to $2.4 billion. Pretax adjusted earnings increased 5.1% to $864 million.

For the first six months, net earned premiums in dollars were $3.5 billion, or 16.6% lower than a year ago. Adjusted net investment income increased 10.1% to $1.4 billion. Total adjusted revenues were down 10.6% to $4.9 billion. Pretax adjusted earnings were $1.7 billion, or 4.0% higher than a year ago.

For the quarter, total new annualized premium sales (sales) increased 4.5% to ¥16.8 billion, or $108 million, primarily reflecting sales of the new first sector product. For the first six months, total new sales increased 0.1% to ¥29.4 billion, or $192 million.

AFLAC U.S.

Aflac U.S. net earned premiums increased 2.1% to $1.5 billion in the second quarter compared to the prior year, reflecting continued improvement in persistency. Adjusted net investment income increased 7.4% to $218 million, largely due to a shift to higher-yielding fixed-income investments and higher variable investment income. Total adjusted revenues were up 1.3% to $1.7 billion. Pretax adjusted earnings were $383 million, 3.8% higher than a year ago, primarily due to higher revenue and lower expenses offset by higher benefits. The pretax adjusted profit margin for the U.S. segment was 22.7%, compared with 22.2% a year ago.

For the first six months, net earned premiums increased 2.7% to $2.9 billion. Adjusted net investment income increased 6.0% to $424 million. Total adjusted revenues were up 1.8% to $3.4 billion. Pretax adjusted earnings were $739 million, or 2.5% higher than a year ago.

Aflac U.S. sales increased 2.0% in the quarter to $331 million, largely driven by premier group life, absence management and disability products as well as improved sales in individual voluntary benefits. For the first half of the year, total new sales decreased 1.6% to $629 million.

CORPORATE AND OTHER

For the quarter, total adjusted revenues increased 77.9% to $249 million compared to the prior year primarily due to reinsurance transactions in the fourth quarter of 2023 resulting in an increase to both total net earned premiums and adjusted net investment income, which also increased due to a lower volume of tax credit investments. Total benefits and adjusted expenses increased $35 million compared to the prior year primarily as a result of the increased reinsurance activity. Pretax adjusted earnings were a gain of $23 million, compared with a loss of $52 million a year ago.

For the first six months, total adjusted revenues increased 85.4% to $497 million. Pretax adjusted earnings were a gain of $21 million, compared with a loss of $58 million a year ago.

DIVIDEND AND CAPITAL RETURNED TO SHAREHOLDERS

The board of directors declared the third quarter dividend of $0.50 per share, payable on September 2, 2024 to shareholders of record at the close of business on August 21, 2024.

In the second quarter, Aflac Incorporated deployed $800 million in capital to repurchase 9.3 million of its common shares. At the end of June 2024, the company had 59.2 million remaining shares authorized for repurchase.

OUTLOOK

Commenting on the company’s results, Aflac Incorporated Chairman, Chief Executive Officer and President Daniel P. Amos stated: "Aflac delivered very solid earnings for the quarter and the first six months. We have continued to actively concentrate on generating profitable growth in the U.S. and Japan with new products and distribution strategies. We believe our strategy will continue to create long-term value for shareholders.

"Looking at our operations in Japan, we have continued to focus on third sector products as well as introducing these policies to new and younger customers. While still in the very early stages, we were pleased with the initial introduction of our latest life insurance product that offers an asset formation component and a nursing care option. This drove the 4.5% sales increase for the quarter and put us back on track for the year, along with sales campaigns celebrating our 50 years in Japan. This approach is in line with our strategy of connecting with younger customers to meet their financial protection needs through different life stages.

"In the U.S., we achieved 2% sales growth for the quarter, which is a welcome result as we enter the second half of the year, which tends to be the heaviest enrollment period. At the same time, we continue to focus on more profitable growth by exercising a stronger underwriting discipline. As a result, we are seeing improvement in both net earned premiums and persistency. We continue our prudent approach to expense management and maintaining a strong pretax margin.

"We continue to generate strong capital and cash flows while maintaining our commitment to prudent liquidity and capital management. We have been very pleased with our investment portfolio's performance, as it continues to produce strong net investment income with minimal losses and impairments. We treasure our track record of 41 consecutive years of dividend growth and remain committed to extending it, supported by our financial strength. In the quarter, we repurchased a record $800 million in shares and intend to continue our balanced approach of investing in growth and driving long-term operating efficiencies."

*See Non-U.S. GAAP Financial Measures section for an explanation of foreign exchange and its impact on the financial statements and definitions of the non-U.S. GAAP financial measures used in this earnings release, as well as a reconciliation of such non-U.S. GAAP financial measures to the most comparable U.S. GAAP financial measures.

ABOUT AFLAC INCORPORATED

Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than 68 years to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.1 In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force. The company takes pride in being there for its policyholders when they need us most, as well as being included in the World’s Most Ethical Companies by Ethisphere for 18 consecutive years (2024), Fortune’s World’s Most Admired Companies for 23 years (2024) and Bloomberg’s Gender-Equality Index for the fourth consecutive year (2023). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021 and has been included in the Dow Jones Sustainability North America Index (2023) for 10 years. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under “Sustainability.”

1 LIMRA 2023 U.S. Supplemental Health Insurance Total Market Report

A copy of Aflac’s financial supplement for the quarter can be found on the “Investors” page at aflac.com.

Aflac Incorporated will webcast its quarterly conference call via the “Investors” page of aflac.com at 8:00 a.m. (ET) on August 1, 2024.

Note: Tables within this document may not foot due to rounding.


AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)

THREE MONTHS ENDED JUNE 30,	2024		2023		% Change
Total revenues	$	5,138	$	5,172	(0.7)	%
Benefits and claims, net	1,921		2,098		(8.4)
Total acquisition and operating expenses	1,198		1,249		(4.1)
Earnings before income taxes	2,019		1,825		10.6
Income taxes	264		191
Net earnings	$	1,755	$	1,634	7.4	%
Net earnings per share – basic	$	3.11	$	2.72	14.3	%
Net earnings per share – diluted	3.10		2.71		14.4
Shares used to compute earnings per share (000):
Basic	564,573		600,742		(6.0)	%
Diluted	566,838		602,929		(6.0)
Dividends paid per share	$	0.50	$	0.42	19.0	%


AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)

SIX MONTHS ENDED JUNE 30,	2024		2023		% Change
Total revenues	$	10,575	$	9,972	6.0	%
Benefits and claims, net	3,932		4,247		(7.4)
Total acquisition and operating expenses	2,453		2,558		(4.1)
Earnings before income taxes	4,190		3,167		32.3
Income taxes	556		345
Net earnings	$	3,634	$	2,822	28.8	%
Net earnings per share – basic	$	6.38	$	4.66	36.9	%
Net earnings per share – diluted	6.35		4.64		36.9
Shares used to compute earnings per share (000):
Basic	569,730		605,945		(6.0)	%
Diluted	572,160		608,411		(6.0)
Dividends paid per share	$	1.00	$	0.84	19.0	%


AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET
(UNAUDITED – IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)

JUNE 30,	2024		2023		% Change
Assets:
Total investments and cash	$	107,629	$	116,463	(7.6)	%
Deferred policy acquisition costs	8,550		8,860		(3.5)
Other assets	3,989		5,303		(24.8)
Total assets	$	120,168	$	130,626	(8.0)	%
Liabilities and shareholders’ equity:
Policy liabilities	$	77,353	$	93,807	(17.5)	%
Notes payable and lease obligations	7,430		7,087		4.8
Other liabilities	9,338		9,293		0.5
Shareholders’ equity	26,047		20,439		27.4
Total liabilities and shareholders’ equity	$	120,168	$	130,626	(8.0)	%
Shares outstanding at end of period (000)	561,369		595,969		(5.8)	%

NON-U.S. GAAP FINANCIAL MEASURES

This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).

The company defines the non-U.S. GAAP financial measures included in this earnings release as follows:

•Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management’s control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring 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. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively.

•Adjusted earnings excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management’s control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively.

•Adjusted return on equity is adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income (AOCI). Management uses adjusted return on equity to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The Company considers adjusted return on equity important as it excludes components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity.

•Adjusted return on equity excluding foreign currency impact is adjusted earnings excluding the current period foreign currency impact divided by average shareholders’ equity, excluding AOCI. The Company considers adjusted return on equity excluding foreign currency impact important as it excludes changes in foreign currency and components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity excluding foreign currency impact is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity.

•Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign exchange risks in the Company's Japan segment or in Corporate and other. These amortized hedge costs/income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the contractual term of the derivative. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an

important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income.

•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. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude AOCI, which fluctuates due to market movements that are outside management’s control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively.

•Adjusted book value including unrealized foreign currency translation gains and losses is adjusted book value plus unrealized foreign currency translation gains and losses. Adjusted book value including unrealized foreign currency translation gains and losses per common share is adjusted book value plus unrealized foreign currency translation gains and losses at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value including unrealized foreign currency translation gains and losses, and its related per share financial measure, important as they exclude certain components of AOCI, which fluctuate due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measures for adjusted book value including unrealized foreign currency translation gains and losses and adjusted book value including unrealized foreign currency translation gains and losses per common share are total book value and total book value per common share, respectively.

•Adjusted net investment income is net investment income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, and ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and losses to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company’s investments and related hedging strategies. The most comparable U.S. GAAP financial measure for adjusted net investment income is net investment income.

•Adjusted net investment gains and losses are net investment gains and losses adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are both reclassified to net investment income, and iii) the impact of interest from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management’s control, while excluding the components that are within management’s control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses.


RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)

THREE MONTHS ENDED JUNE 30,	2024		2023		% Change

Net earnings	$	1,755	$	1,634	7.4	%

Items impacting net earnings:
Adjusted net investment (gains) losses	(749)		(651)




Other and non-recurring (income) loss	—		(35)
Income tax (benefit) expense on items excluded from adjusted earnings	29		5



Adjusted earnings	1,035		954		8.5	%
Current period foreign currency impact 1	37		N/A
Adjusted earnings excluding current period foreign currency impact 2	$	1,072	$	954	12.4	%

Net earnings per diluted share	$	3.10	$	2.71	14.4	%

Items impacting net earnings:
Adjusted net investment (gains) losses	(1.32)		(1.08)
Other and non-recurring (income) loss	—		(0.06)
Income tax (benefit) expense on items excluded from adjusted earnings	0.05		0.01



Adjusted earnings per diluted share	1.83		1.58		15.8	%
Current period foreign currency impact 1	0.07		N/A
Adjusted earnings per diluted share excluding current period foreign currency impact 2	$	1.89	$	1.58	19.6	%

1 Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.

2 Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.


RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED – IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)

SIX MONTHS ENDED JUNE 30,	2024		2023		% Change

Net earnings	$	3,634	$	2,822	28.8	%

Items impacting net earnings:
Adjusted net investment (gains) losses	(1,758)		(859)




Other and non-recurring (income) loss	2		(35)
Income tax (benefit) expense on items excluded from adjusted earnings	118		(21)



Adjusted earnings	1,996		1,907		4.7	%
Current period foreign currency impact 1	81		N/A
Adjusted earnings excluding current period foreign currency impact 2	$	2,077	$	1,907	8.9	%

Net earnings per diluted share	$	6.35	$	4.64	36.9	%

Items impacting net earnings:
Adjusted net investment (gains) losses	(3.07)		(1.41)
Other and non-recurring (income) loss	—		(0.06)
Income tax (benefit) expense on items excluded from adjusted earnings	0.21		(0.03)



Adjusted earnings per diluted share	3.49		3.13		11.5	%
Current period foreign currency impact 1	0.14		N/A
Adjusted earnings excluding current period foreign currency impact 2	$	3.63	$	3.13	16.0	%

1 Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.


RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)

THREE MONTHS ENDED JUNE 30,	2024		2023		% Change

Net investment (gains) losses	$	(696)	$	(555)	25.4	%

Items impacting net investment (gains) losses:
Amortized hedge costs	(7)		(63)
Amortized hedge income	34		38
Net interest income (expense) from derivatives associated with certain investment strategies	(89)		(79)
Impact of interest from derivatives associated with notes payable1	9		8

Adjusted net investment (gains) losses	$	(749)	$	(651)	15.1	%

1 Amounts are included with interest expenses that are a component of adjusted expenses.


RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED – IN MILLIONS)

THREE MONTHS ENDED JUNE 30,	2024		2023		% Change

Net investment income	$	1,095	$	999	9.6	%

Items impacting net investment income:
Amortized hedge costs	(7)		(63)
Amortized hedge income	34		38
Net interest income (expense) from derivatives associated with certain investment strategies	(89)		(79)

Adjusted net investment income	$	1,033	$	892	15.8	%


RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED – IN MILLIONS)

SIX MONTHS ENDED JUNE 30,	2024		2023		% Change

Net investment (gains) losses	$	(1,647)	$	(678)	142.9	%

Items impacting net investment (gains) losses:
Amortized hedge costs	(13)		(122)
Amortized hedge income	62		67
Net interest income (expense) from derivatives associated with certain investment strategies	(177)		(148)
Impact of interest from derivatives associated with notes payable1	17		22

Adjusted net investment (gains) losses	$	(1,758)	$	(859)	104.7	%

1 Amounts are included with interest expenses that are a component of adjusted expenses.


RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED – IN MILLIONS)

SIX MONTHS ENDED JUNE 30,	2024		2023		% Change

Net investment income	$	2,095	$	1,942	7.9	%

Items impacting net investment income:
Amortized hedge costs	(13)		(122)
Amortized hedge income	62		67
Net interest income (expense) from derivatives associated with certain investment strategies	(177)		(148)

Adjusted net investment income	$	1,967	$	1,736	13.3	%


RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE
(UNAUDITED - IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)

JUNE 30,	2024		2023		% Change
U.S. GAAP book value	$	26,047	$	20,439
Less:
Unrealized foreign currency translation gains (losses)	(5,091)		(4,249)
Unrealized gains (losses) on securities and derivatives	379		1,953
Effect of changes in discount rate assumptions	1,425		(5,059)
Pension liability adjustment	(5)		17
Total AOCI	(3,292)		(7,338)
Adjusted book value	$	29,339	$	27,777
Add:
Unrealized foreign currency translation gains (losses)	(5,091)		(4,249)
Adjusted book value including unrealized foreign currency translation gains (losses)	$	24,248	$	23,528

Number of outstanding shares at end of period (000)	561,369		595,969

U.S. GAAP book value per common share	$	46.40	$	34.30	35.3	%
Less:
Unrealized foreign currency translation gains (losses) per common share	(9.07)		(7.13)
Unrealized gains (losses) on securities and derivatives per common share	0.68		3.28
Effect of changes in discount rate assumptions per common share	2.54		(8.49)
Pension liability adjustment per common share	(0.01)		0.03
Total AOCI per common share	(5.86)		(12.31)
Adjusted book value per common share	$	52.26	$	46.61	12.1	%
Add:
Unrealized foreign currency translation gains (losses) per common share	(9.07)		(7.13)
Adjusted book value including unrealized foreign currency translation gains (losses) per common share	$	43.19	$	39.48	9.4	%


RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)

THREE MONTHS ENDED JUNE 30,	2024		2023
U.S. GAAP ROE - Net earnings1	28.3	%	32.5	%
Impact of excluding unrealized foreign currency translation gains (losses)	(4.8)		(4.7)
Impact of excluding unrealized gains (losses) on securities and derivatives	0.7		1.9
Impact of excluding effect of changes in discount rate assumptions	—		(5.9)
Impact of excluding pension liability adjustment	—		—
Impact of excluding AOCI	(4.1)		(8.7)
U.S. GAAP ROE - less AOCI	24.2		23.8
Differences between adjusted earnings and net earnings2	(9.9)		(9.9)
Adjusted ROE - reported	14.3		13.9
Less: Impact of foreign currency3	(0.5)		N/A
Adjusted ROE, excluding impact of foreign currency	14.8		13.9

1 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.

2 See separate reconciliation of net income to adjusted earnings.

3 Impact of foreign currency is calculated by restating all foreign currency components of the income statement to the weighted average foreign currency exchange rate for the comparable prior year period. The impact is the difference of the restated adjusted earnings compared to reported adjusted earnings. For comparative purposes, only current period income is restated using the weighted average prior period exchange rate, which eliminates the foreign currency impact for the current period. This allows for equal comparison of this financial measure.


RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)

SIX MONTHS ENDED JUNE 30,	2024		2023
U.S. GAAP ROE - Net earnings1	30.3	%	27.8	%
Impact of excluding unrealized foreign currency translation gains (losses)	(4.9)		(4.0)
Impact of excluding unrealized gains (losses) on securities and derivatives	0.8		0.6
Impact of excluding effect of changes in discount rate assumptions	(0.6)		(3.6)
Impact of excluding pension liability adjustment	—		—
Impact of excluding AOCI	(4.7)		(7.0)
U.S. GAAP ROE - less AOCI	25.6		20.8
Differences between adjusted earnings and net earnings2	(11.5)		(6.7)
Adjusted ROE - reported	14.0		14.0
Less: Impact of foreign currency3	(0.6)		N/A
Adjusted ROE, excluding impact of foreign currency	14.6		14.0

1 U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.

2 See separate reconciliation of net income to adjusted earnings.


EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES, UNAUDITED)

THREE MONTHS ENDED JUNE 30, 2024	Including Currency Changes		Excluding Currency Changes2
Net earned premiums3	(6.9)	%	(0.1)	%
Adjusted net investment income4	15.8		19.3
Total benefits and expenses	(7.8)		(1.0)
Adjusted earnings	8.5		12.4
Adjusted earnings per diluted share	15.8		19.6

1Refer to previously defined adjusted earnings and adjusted earnings per diluted share.

2Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.

3Net of reinsurance

4Refer to previously defined adjusted net investment income.


EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS1
(SELECTED PERCENTAGE CHANGES, UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2024	Including Currency Changes		Excluding Currency Changes2
Net earned premiums3	(6.6)	%	0.1	%
Adjusted net investment income4	13.3		16.7
Total benefits and expenses	(6.6)		—
Adjusted earnings	4.7		8.9
Adjusted earnings per diluted share	11.5		16.0

1Refer to previously defined adjusted earnings and adjusted earnings per diluted share.

3Net of reinsurance

4Refer to previously defined adjusted net investment income.

FORWARD-LOOKING INFORMATION

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. The company desires to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” “may,” “should,” “estimate,” “intends,” “projects,” “will,” “assumes,” “potential,” “target,” "outlook" or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements.

The company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:

•difficult conditions in global capital markets and the economy, including inflation

•defaults and credit downgrades of investments

•global fluctuations in interest rates and exposure to significant interest rate risk

•concentration of business in Japan

•limited availability of acceptable yen-denominated investments

•foreign currency fluctuations in the yen/dollar exchange rate

•differing interpretations applied to investment valuations

•significant valuation judgments in determination of expected credit losses recorded on the Company's investments

•decreases in the Company's financial strength or debt ratings

•decline in creditworthiness of other financial institutions

•the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners

•deviations in actual experience from pricing and reserving assumptions

•ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives

•interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems

•subsidiaries' ability to pay dividends to the Parent Company

•inherent limitations to risk management policies and procedures

•operational risks of third-party vendors

•tax rates applicable to the Company may change

•failure to comply with restrictions on policyholder privacy and information security

•extensive regulation and changes in law or regulation by governmental authorities

•competitive environment and ability to anticipate and respond to market trends

•catastrophic events, including, but not limited to, as a result of climate change, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events

•ability to protect the Aflac brand and the Company's reputation

•ability to effectively manage key executive succession

•changes in accounting standards

•level and outcome of litigation or regulatory inquiries

•allegations or determinations of worker misclassification in the United States

Analyst and investor contact - David A. Young, 706.596.3264; 800.235.2667 or dyoung@aflac.com

Media contact - Ines Gutzmer, 762.207.7601 or igutzmer@aflac.com

FINAL 7/31/2024

Financial Supplement

Second Quarter 2024

This document is a statistical supplement to Aflac’s quarterly earnings release. Throughout the presentation, amounts presented may not foot due to rounding. As you review the supplement, please note the non-U.S. GAAP financial measures and definitions found at the back of this document.

The Company adopted the Financial Accounting Standards Board’s Accounting Standard Update 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by (i) ASU 2019-09 Financial Services - Insurance: Effective Date, and (ii) ASU 2020-11 Financial Services - Insurance: Effective Date and Early Application (collectively, “LDTI”) as of January 1, 2023. The amended guidance is applied as of the beginning of the earliest period presented in the Company’s quarterly and annual financial statements, which results in a January 1, 2021 Transition Date. In conjunction with the adoption of LDTI, the Company changed its practice of recording the change in the deferred profit liability (DPL) on products with limited-payment features from the benefits and claims, net line item to the net earned premiums line item in the consolidated statement of earnings. This change in presentation has no impact on net earnings. All quarterly and annual amounts for 2021 and 2022 presented herein reflect these changes for LDTI and DPL.


			Aflac Incorporated															Page
			Share Data															2
			Summary of Adjusted Results by Business Segment															3
			Statements of Earnings															4
			Analysis of Net Earnings and Net Earnings Per Share															5
			Balance Sheets															6
			Quarterly Financial Results															7
			Quarterly Book Value Per Share															8
			Return on Equity															9
			Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact															10
			Investment Results															11,12,13
			Long-Term Debt Data															14
			Ratings															15

			Aflac U.S.
			Statement of Pretax Adjusted Earnings															16
			Balance Sheets															17
			Quarterly Pretax Adjusted Earnings															18
			Operating Ratios															19
			Sales															20,21

			Aflac Japan
			Statement of Pretax Adjusted Earnings															22,23
			Balance Sheets															24,25
			Quarterly Pretax Adjusted Earnings															26
			Operating Ratios															27
			Sales															28,29,30
			Yen/Dollar Exchange Rates															31

			Corporate and Other
			Statement of Pretax Adjusted Earnings															32

			Non-U.S. GAAP Financial Measures															33

For more information, contact:

David Young

Phone. 706.596.3264

Aflacir@aflac.com

investors.aflac.com


Aflac Incorporated and Subsidiaries

	Share Data
	(In Thousands)


			Beginning	Shares Issued		Shares Purchased		Ending	QTD Weighted Avg. Shares			YTD Weighted Avg. Shares
			Shares	Stk. Bon.	Stk. Opt.	Treas.	Misc.	Shares	Avg.	Dilutive	Avg.	Avg.	Dilutive	Avg.
		Period	Outstanding	& DRP	& Misc.	Shares	Purch.(1)	Outstanding	Shares	Shares	Diluted	Shares	Shares	Diluted

	2022	1	652,132	259	1,308	8,007	343	645,349	649,753	3,074	652,827	649,753	3,074	652,827
		2	645,349	269	101	11,185	8	634,526	640,707	2,536	643,243	645,205	2,805	648,010
		3	634,526	258	144	11,057	3	623,868	629,350	2,597	631,946	639,862	2,735	642,597
		4	623,868	222	120	8,938	16	615,256	619,845	3,149	622,994	634,816	2,839	637,655

	2023	1	615,256	239	1,152	10,348	347	605,952	611,205	2,745	613,950	611,205	2,745	613,950
		2	605,952	259	225	10,461	6	595,969	600,742	2,187	602,929	605,945	2,466	608,411
		3	595,969	210	115	9,390	7	586,897	591,246	2,350	593,596	600,992	2,427	603,419
		4	586,897	191	94	8,698	5	578,479	581,876	3,005	584,881	596,173	2,572	598,745

	2024	1	578,479	212	1,320	9,276	457	570,278	574,886	2,596	577,482	574,886	2,596	577,482
		2	570,278	217	186	9,288	24	561,369	564,573	2,265	566,838	569,730	2,430	572,160

(1) Includes previously owned shares used to purchase options (swapped shares) and/or shares purchased for deferred compensation program


Aflac Incorporated and Subsidiaries

	Summary of Adjusted Results by Business Segment
	(In Millions, except per-share data and where noted)

		Years Ended December 31,															3 Months Ended June 30,							6 Months Ended June 30,
																							%							%
		2019			2020			2021			2022			2023			2023			2024			Change	2023			2024			Change

	Aflac Japan	$	3,261		$	3,263		$	3,755		$	3,281		$	3,234		$	822		$	864		5.1	$	1,610		$	1,674		4.0
	Aflac U.S.		1,272			1,268			1,356			1,359			1,501			369			383		3.8		721			739		2.5
	Corporate and other (1)		(72)			(115)			(293)			(218)			(425)			(52)			23				(58)			21
	Pretax adjusted earnings		4,461			4,416			4,819			4,422			4,310			1,139			1,270		11.5		2,273			2,434		7.1
	Income taxes (1)		1,147			864			893			808			577			186			235		26.3		366			438		19.7
	Adjusted earnings (2)		3,314			3,552			3,925			3,614			3,733			954			1,035		8.5		1,907			1,996		4.7

	Reconciling items:
	Adjusted net investment gains (losses)		(15)			(229)			462			447			914			651			749				859			1,758
	Other and non-recurring income (loss) (3)		(1)			(28)			(73)			1			39			35			—				35			(2)
	Income tax benefit (expense) on items excluded from adjusted earnings (4)		3			72			(83)			357			(26)			(5)			(29)				21			(118)
	Tax reform adjustment (5)		4			—			—			—			—			—			—				—			—
	Tax valuation allowance release (6)		—			1,411			—			—			—			—			—				—			—
	Net earnings	$	3,304		$	4,778		$	4,231		$	4,418		$	4,659		$	1,634		$	1,755		7.4	$	2,822		$	3,634		28.8

	Effective Tax rate		25.7	%		(14.9)	%		18.7	%		9.3	%		11.5	%		10.4	%		13.1	%			10.9	%		13.3	%

	Earnings per share of common stock:
	Net earnings (basic)	$	4.45		$	6.69		$	6.28		$	6.96		$	7.81		$	2.72		$	3.11		14.3	$	4.66		$	6.38		36.9
	Net earnings (diluted)		4.43			6.67			6.25			6.93			7.78			2.71			3.10		14.4		4.64			6.35		36.9

	Adjusted earnings (basic) (2)	$	4.46		$	4.98		$	5.83		$	5.69		$	6.26		$	1.59		$	1.83		15.1	$	3.15		$	3.50		11.1
	Adjusted earnings (diluted) (2)		4.44			4.96			5.80			5.67			6.23			1.58			1.83		15.8		3.13			3.49		11.5

(1)	The change in value of federal historic rehabilitation and solar investments in partnerships of $30 and $53 for the three-month periods and $62 and $105 for the six-month periods ended June 30, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $31 and $56 for the three-month periods and $64 and $108 for the six-months period ended June 30, 2024, and 2023, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings.
(2)	See non-U.S. GAAP financial measures for definition of adjusted earnings.
(3)	Foreign currency gains and losses for all periods have been reclassified from Other and non-recurring income (loss) to Net investment gains and losses.
(4)	Primarily reflects release of $452 in deferred taxes in 2022
(5)	The impact of Tax Reform was adjusted in 2018 for return-to-provision adjustments, various amended returns filed by the Company, and final true-ups of deferred tax liabilities. Further impacts were recorded in 2019 as a result of additional guidance released by the IRS.
(6)	Tax benefit recognized in 2020 represents the release of valuation allowances on deferred tax benefits related to foreign tax credits.


Aflac Incorporated and Subsidiaries

	Consolidated Statements of Earnings - U.S. GAAP
	(In Millions, except per-share data)

			Years Ended December 31,										3 Months Ended June 30,					6 Months Ended June 30,
																	%					%
			2019		2020		2021		2022		2023		2023		2024		Change	2023		2024		Change
	Revenues:
		Net earned premiums
		Gross premiums	$	19,122	$	18,955	$	17,305	$	15,025	$	14,318	$	3,623	$	3,352		$	7,361	$	6,833
		Assumed (ceded)		(342)		(333)		(210)		(124)		(195)		(50)		(26)			(99)		(52)
		Total net earned premiums (1)		18,780		18,622		17,095		14,901		14,123		3,573		3,325	(6.9)		7,262		6,781	(6.6)
		Net investment income		3,578		3,638		3,818		3,656		3,811		999		1,095	9.6		1,942		2,095	7.9
		Net investment gains (losses) (2)		(135)		(270)		468		363		590		555		696			678		1,647
		Other income (2)		84		157		173		220		177		45		22			90		52
		Total revenues		22,307		22,147		21,554		19,140		18,701		5,172		5,138	(.7)		9,972		10,575	6.0

	Benefits and Claims:
		Benefits and claims, net
		Incurred claims -direct		9,279		9,364		8,949		8,271		8,005		1,948		1,907			4,163		4,185
		Incurred claims -assumed (ceded)		(372)		(296)		(147)		(108)		(177)		(40)		(19)			(82)		(35)
		Increase in FPB (3)-direct		2,952		2,707		1,819		888		594		232		87			268		(108)
		Increase in FPB (3)-assumed (ceded)		83		21		3		51		172		12		(3)			7		(3)
		Total net benefits and claims, excluding reserve remeasurement		N/A		N/A		10,623		9,102		8,594		2,152		1,972			4,354		4,039
		Reserve remeasurement (gain) loss		N/A		N/A		(147)		(215)		(383)		(54)		(51)			(107)		(107)
		Total net benefits and claims		11,942		11,796		10,476		8,887		8,211		2,098		1,921	(8.4)		4,247		3,932	(7.4)
		Acquisition and operating expenses:
		Amortization of DAC (4)		1,282		1,214		835		792		816		202		208			407		424
		Insurance commissions		1,321		1,316		1,256		1,117		1,052		268		246			547		501
		Insurance expenses		3,089		3,420		3,541		3,249		3,165		728		694			1,505		1,431
		Interest expense		228		242		238		226		195		51		50			99		97

		Total acquisition and operating expenses		5,920		6,192		5,870		5,384		5,228		1,249		1,198	(4.1)		2,558		2,453	(4.1)
		Total benefits and expenses		17,862		17,988		16,346		14,271		13,439		3,347		3,119	(6.8)		6,805		6,385	(6.2)

		Pretax earnings		4,445		4,159		5,208		4,869		5,262		1,825		2,019			3,167		4,190

		Income tax expense (benefit) (5)		1,141		(619)		977		451		603		191		264			345		556

		Net earnings	$	3,304	$	4,778	$	4,231	$	4,418	$	4,659	$	1,634	$	1,755	7.4	$	2,822	$	3,634	28.8

		(1) Includes a gain (loss) of $(2) and $(1) for the three-month periods and $(5) and $(1) for the six-month periods ended June 30, 2024 and 2023, respectively, related to remeasurement of the deferred profit liability for limited-payment contracts.
		(2) Foreign currency gains and losses for all periods have been reclassified from Other income to Net investment gains and losses for consistency with current period presentation.
		(3) Future policy benefits
		(4) Deferred acquisition costs
		(5) Primarily reflects release of $452 in deferred taxes in 2022


Aflac Incorporated and Subsidiaries

Analysis of Net Earnings and Net Earnings Per Diluted Share
(In Millions, except for per-share data)


									Other and	Foreign
				Net	Other and Non-	Foreign	Net	Net	Non-Recurring	Currency
			Net	Investment	Recurring	Currency	Earnings	Investment	Items	Impact
		Period	Earnings	Gains (Losses) (1)	Items (1)(3)(4)	Impact (2)	Per Share	Gains (Losses) (1)	Per Share (1)(3)(4)	Per Share (2)

		2019	3,304	(13)	3	15	4.43	(.02)	.01	.02
		2020	4,778	(181)	1,407	31	6.67	(.25)	1.96	.04
		2021	4,231	365	(59)	(42)	6.25	.54	(.09)	(.06)
		2022	4,418	803	1	(262)	6.93	1.26	—	(.41)
		2023	4,659	896	31	(113)	7.78	1.50	.05	(.19)


	2022	1	1,047	106	(1)	(35)	1.60	.16	—	(.05)
		2	1,394	448	—	(59)	2.17	.70	—	(.09)
		3	1,781	871	1	(97)	2.82	1.38	—	(.15)
		4	196	(621)	—	(70)	.31	(1.00)	—	(.11)

	2023	1	1,188	235	—	(41)	1.94	.38	—	(.07)
		2	1,634	653	28	(25)	2.71	1.08	.05	(.04)
		3	1,569	472	2	(33)	2.64	.80	—	(.06)
		4	268	(464)	—	(14)	.46	(.79)	—	(.02)

	2024	1	1,879	920	(2)	(44)	3.25	1.59	—	(.08)
		2	1,755	720	—	(37)	3.10	1.27	—	(.07)






	(1) Items are presented net of tax.
	(2) See non-U.S. GAAP financial measures for definition of adjusted earnings excluding current period foreign currency impact
	(3) Foreign currency gains and losses and amortized hedge costs/income for all periods have been reclassified from Other income to Net investment gains and losses for consistency with current period presentation.
	(4 )Tax benefit recognized in the third quarter of 2020 represents the release of valuation allowances on deferred tax benefits related to foreign tax credits.


Aflac Incorporated and Subsidiaries
	Consolidated Balance Sheets
	(In Millions, except per-share data)

				December 31,											June 30,
	Assets:			2019		2020		2021		2022		2023		2023			2024

	Investments and cash:
		Securities available for sale:
		Fixed maturity securities available for sale, at fair value		$	86,950	$	101,286	$	94,206	$	71,936	$	69,578		$	70,739		$	62,582
		Fixed maturity securities available for sale - consolidated variable interest entities, at fair value			4,312		4,596		4,490		3,805		3,712			3,766			3,677
		Fixed maturity securities held to maturity, at amortized cost, net of allowance for credit losses			30,085		24,464		22,000		19,056		17,819			17,436			15,685
		Equity securities, at fair value			802		1,283		1,603		1,091		1,088			965			728
		Commercial mortgage and other loans, net of allowance for credit losses			9,569		10,554		11,786		13,496		12,527			13,346			11,795
		Other investments			1,477		2,429		3,842		4,070		4,530			5,491			7,102
		Cash and cash equivalents			4,896		5,141		5,051		3,943		4,306			4,720			6,060
			Total investments and cash		138,091		149,753		142,978		117,397		113,560			116,463			107,629

	Receivables, net of allowance for credit losses (1)				816		778		672		647		848			755			880
	Accrued investment income				772		780		737		745		731			719			726
	Deferred policy acquisition costs				10,128		10,441		9,848		9,239		9,132			8,860			8,550
	Property and equipment, net				581		601		538		530		445			500			398
	Other assets, net of allowance for credit losses (1)(2)				2,380		2,733		3,377		3,180		2,008			3,329			1,985
			Total assets	$	152,768	$	165,086	$	158,150	$	131,738	$	126,724		$	130,626		$	120,168

	Liabilities and Shareholders' Equity:
	Liabilities:
		Total policy liabilities		$	106,554	$	114,391	$	126,331	$	96,910	$	91,599		$	93,807		$	77,353
		Notes payable			6,569		7,899		7,956		7,442		7,364			7,087			7,430
		Income taxes, primarily deferred			5,370		4,661		30		698		154			343			752
		Other liabilities			5,316		4,576		6,802		6,548		5,622			8,950			8,586
			Total liabilities		123,809		131,527		141,119		111,598		104,739			110,187			94,121
	Shareholders' equity:
		Common stock			135		135		135		135		136			136			136
		Additional paid-in capital			2,313		2,410		2,529		2,641		2,771			2,697			2,835
		Retained earnings			34,291		37,984		40,963		44,367		47,993			46,937			51,345
		Accumulated other comprehensive income (loss):
			Unrealized foreign currency translation gains (losses)		(1,623)		(1,109)		(1,985)		(3,564)		(4,069)			(4,249)			(5,091)
			Unrealized gains (losses) on fixed maturity securities		8,548		10,361		9,602		(702)		1,139			1,978			401
			Unrealized gains (losses) on derivatives		(33)		(34)		(30)		(27)		(22)			(25)			(22)
			Effect of change in discount rate assumption(s)		N/A		N/A		(15,832)		(2,100)		(2,560)			(5,059)			1,425
			Pension liability adjustment		(277)		(284)		(166)		(36)		(8)			17			(5)
		Treasury stock			(14,395)		(15,904)		(18,185)		(20,574)		(23,395)			(21,993)			(24,977)
			Total shareholders' equity		28,959		33,559		17,031		20,140		21,985			20,439			26,047
			Total liabilities & shareholders' equity	$	152,768	$	165,086	$	158,150	$	131,738	$	126,724		$	130,626		$	120,168

(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity.

(2) Includes goodwill of $264 million in 2024, $270 million in 2023, $265 in 2022, $268 in 2021, $269 million in 2020 and $140 million in 2019


Aflac Incorporated and Subsidiaries

Quarterly Financial Results
(Dollars In Millions, except per-share data)

							Total
			Net	Net		Benefits	Acquisitions	Total			Net EPS		Adj. EPS (1)
			Earned	Inv.	Total	&	&	Pretax	Net	Adjusted
		Period	Premiums	Income	Revenues	Claims, Net	Adj. Exp.	Earn.	Earn.	Earn. (1)	Basic	Dil.	Basic	Dil.

		2019	18,780	3,578	22,307	11,942	5,920	4,445	3,304	3,314	4.45	4.43	4.46	4.44
		2020	18,622	3,638	22,147	11,796	6,192	4,159	4,778	3,552	6.69	6.67	4.98	4.96
		2021	17,095	3,818	21,554	10,476	5,870	5,208	4,231	3,925	6.28	6.25	5.83	5.80
		2022	14,901	3,656	19,140	8,887	5,384	4,869	4,418	3,614	6.96	6.93	5.69	5.67
		2023	14,123	3,811	18,701	8,211	5,228	5,262	4,659	3,733	7.81	7.78	6.26	6.23


	2022	1	4,079	903	5,173	2,483	1,396	1,294	1,047	942	1.61	1.60	1.45	1.44
		2	3,764	937	5,315	2,274	1,333	1,708	1,394	945	2.18	2.17	1.47	1.47
		3	3,535	920	4,704	2,076	1,299	1,329	1,781	910	2.83	2.82	1.45	1.44
		4	3,523	896	3,948	2,054	1,356	538	196	817	.32	.31	1.32	1.31

	2023	1	3,688	943	4,800	2,150	1,308	1,342	1,188	953	1.94	1.94	1.56	1.55
		2	3,573	999	5,172	2,098	1,249	1,825	1,634	954	2.72	2.71	1.59	1.58
		3	3,476	1,004	4,950	1,860	1,285	1,805	1,569	1,095	2.65	2.64	1.85	1.84
		4	3,385	865	3,777	2,103	1,385	289	268	732	.46	.46	1.26	1.25

	2024	1	3,456	1,000	5,436	2,010	1,256	2,170	1,879	961	3.27	3.25	1.67	1.66
		2	3,325	1,095	5,138	1,921	1,198	2,019	1,755	1,035	3.11	3.10	1.83	1.83

(1) See non-U.S. GAAP financial measures for definition of adjusted earnings.


Aflac Incorporated and Subsidiaries

Quarterly Book Value Per Share
(Dollars In Millions, except per-share data)

								Adjusted BV
							Adjusted BV	Per Share Incl
			Equity	AOCI		Adjusted BV	Per Share Incl	Foreign Currency
			BV Per	BV Per	Adjusted BV	Per Share	Foreign Currency	Translation G/(L)
		Period	Share	Share	Per Share (1)	% Change	Translation G/(L)(1)	% Change

		2019	39.84	9.10	30.74	8.9%	28.51	10.6%
		2020	48.46	12.90	35.56	15.7%	33.96	19.1%
		2021	26.12	(12.90)	39.01	9.7%	35.97	5.9%
		2022	32.73	(10.45)	43.18	10.7%	37.39	3.9%
		2023	38.00	(9.54)	47.55	10.1%	40.51	8.3%


	2022	1	27.21	(13.09)	40.31	10.1%	36.53	7.0%
		2	30.82	(11.00)	41.82	11.3%	36.75	4.6%
		3	31.97	(12.03)	44.00	14.6%	36.99	3.4%
		4	32.73	(10.45)	43.18	10.7%	37.39	3.9%

	2023	1	32.65	(12.01)	44.66	10.8%	38.69	5.9%
		2	34.30	(12.31)	46.61	11.5%	39.48	7.4%
		3	38.63	(9.81)	48.44	10.1%	40.80	10.3%
		4	38.00	(9.54)	47.55	10.1%	40.51	8.3%

	2024	1	41.27	(8.95)	50.22	12.4%	42.04	8.7%
		2	46.40	(5.86)	52.26	12.1%	43.19	9.4%

(1) See non-U.S. GAAP financial measures for definition of adjusted book value and adjusted book value including unrealized

foreign currency translation gains and losses.


Aflac Incorporated and Subsidiaries	Aflac Incorporated and Subsidiaries

	Return on Equity


				Year Ended December 31,										3 Months Ended June 30,			6 Months Ended June 30,

				2019		2020		2021 (4)		2022		2023			2023		2024		2023		2024
	U.S. GAAP ROE (1) - Net earnings			12.6	%	15.3	%	26.7	%	23.8	%	22.1	%		32.5	%	28.3	%	27.8	%		30.3	%

		Impact of excluding unrealized foreign currency translation gains (losses)		(1.0)		(0.9)		(1.7)		(2.5)		(3.1)			(4.7)		(4.8)		(4.0)			(4.9)
		Impact of excluding unrealized gains (losses) on securities and derivatives		3.6		6.2		10.7		4.1		0.2			1.9		0.7		0.6			0.8
		Impact of excluding effect on change in discount rate assumptions		N/A		N/A		(18.5)		(8.2)		(1.9)			(5.9)		—		(3.6)			(0.6)
		Impact of excluding pension liability adjustment		(0.1)		(0.2)		(0.2)		(0.1)		—			—		—		—			—

			Impact of excluding AOCI	2.5		5.1		(9.7)		(6.8)		(4.9)			(8.7)		(4.1)		(7.0)			(4.7)

	U.S. GAAP ROE - less AOCI			15.1		20.3		17.0		17.0		17.2			23.8		24.2		20.8			25.6

	Differences between adjusted earnings and net earnings (2)			—		(5.2)		(1.2)		(3.1)		(3.4)			(9.9)		(9.9)		(6.7)			(11.5)

	Adjusted ROE - reported (3)			15.2		15.1		15.8		13.9		13.8			13.9		14.3		14.0			14.0
















		(1)	U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.
		(2)	See separate reconciliation of net income to adjusted earnings.




		(3)	See non-U.S. GAAP financial measures for definition of adjusted return on equity
		(4)	Return on equity calculations for 2021 use beginning retained earnings and accumulated other comprehensive income adjusted for the adoption of LDTI.


Aflac Incorporated and Subsidiaries

	Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact (1)
		(Diluted Basis)

												Change
								QTD	YTD	Excluding		Excluding
								Foreign	Foreign	Foreign		Foreign
				Adjusted				Currency	Currency	Currency		Currency
			Period	EPS(1)		Growth		Impact(1)	Impact(1)	Impact(1)		Impact

			2019	$	4.44	6.7	%	N/A	.02	$	4.42	6.3	%
			2020	$	4.96	11.7	%	N/A	.04	$	4.92	10.8	%
			2021	$	5.80	16.9	%	N/A	(.06)	$	5.86	18.1	%
			2022	$	5.67	(2.2)	%	N/A	(.41)	$	6.08	4.8	%
			2023	$	6.23	9.9	%	N/A	(.19)	$	6.43	13.4	%


		2022	1	$	1.44	.7	%	(.05)	(.05)	$	1.50	4.9	%
			2	1.47		—		(.09)	(.15)	1.56		6.1
			3	1.44		(8.3)		(.15)	(.30)	1.59		1.3
			4	1.31		(.8)		(.11)	(.41)	1.43		8.3
				$	5.67	(2.2)	%			$	6.08	4.8	%

		2023	1	$	1.55	7.6	%	(.07)	(.07)	$	1.62	12.5	%
			2	1.58		7.5		(.04)	(.11)	1.62		10.2
			3	1.84		27.8		(.06)	(.17)	1.90		31.9
			4	1.25		(4.6)		(.02)	(.19)	1.28		(2.3)
				$	6.23	9.9	%			$	6.43	13.4	%

		2024	1	$	1.66	7.1	%	(.08)	(.08)	$	1.74	12.3	%
			2	1.83		15.8	%	(.07)	(.14)	1.89		19.6	%


				$	3.49	11.5	%			$	3.63	16.0	%


		(1) See non-U.S.GAAP financial measures for definition of adjusted earnings and adjusted earnings excluding current period foreign currency impact


Aflac Incorporated and Subsidiaries

	Composition of Invested Assets
	(In Millions)
			December 31,																	June 30,
			2019			2020			2021			2022			2023			2023				2024

	Fixed Maturity Securities(1)		$	109,456		$	116,056		$	107,369		$	94,525		$	88,508				$	88,285			$	80,288

	Commercial mortgage and other loans, net of allowance for credit losses (1)
	Transitional Real Estate (floating rate)			5,450			5,231			5,246			6,455			5,998					6,699				5,546
	Middle Market Loans (floating rate)			2,412			3,635			4,601			5,028			4,531					4,900				4,391
	Commercial Mortgage Loans			1,707			1,688			1,854			1,775			1,697					1,438				1,591
	Other Loans			—			—			20			238			301					309				267
		Total Commercial mortgage and other loans, net of allowance for credit losses(1)		9,569			10,554			11,721			13,496			12,527					13,346				11,795

	Equity Securities, at FV through net earnings			802			1,283			1,603			1,091			1,088					965				728

	Alternatives(2)			551			919			1,703			2,107			2,619					2,379				2,828

	Total Portfolio		$	120,378		$	128,812		$	122,396		$	111,219		$	104,742				$	104,975			$	95,639

	Unrealized Gains (Losses) on Invested Assets
	(In Millions)
			December 31,																	June 30,
			2019			2020			2021			2022			2023				2023				2024
	Fixed Maturity Securities
	Available For Sale - Gross Gains		$	12,266		$	14,771		$	13,566		$	4,800		$	6,050				$	6,462			$	5,971
	Available For Sale - Gross Losses			(375)			(481)			(239)			(4,528)			(3,449)					(2,806)				(4,315)
	Total Available For Sale			11,891			14,290			13,327			272			2,601					3,656				1,656

	Held to Maturity - Gross Gains			7,519			5,935			4,869			2,154			1,838					2,502				890
	Held to Maturity - Gross Losses			(10)			—			—			—			—					—				(5)
	Total Held to Maturity		$	7,509		$	5,935		$	4,869		$	2,154		$	1,838				$	2,502			$	885

		Credit Ratings on Fixed Maturities
		(At Amortized Cost)

			December 31,																	June 30,
		Credit Rating	2019			2020			2021			2022			2023			2023				2024
		AAA		1.1	%		1.0	%		1.0	%		1.6	%		1.6	%				1.7	%			1.6	%
		AA		4.3			4.5			5.1			5.2			5.7					5.5				6.2
		A		68.6			69.3			68.9			68.0			68.1					68.2				67.6
		BBB		23.1			21.9			22.5			23.0			22.9					22.7				23.1
		BB or Lower		2.9			3.3			2.5			2.2			1.7					1.9				1.5
				100.0	%		100.0	%		100.0	%		100.0	%		100.0	%				100.0	%			100.0	%

	(1) Presented at amortized cost, net of reserves beginning in 2020
	(2) Presented at carrying value; includes asset classes such as private equity and real estate funds managed by Global Investments; excludes Corporate driven activity, policy loans, short-term investments, real estate owned assets and FHLB equity balances


Aflac Incorporated and Subsidiaries
			Supplemental Investment Data by Segment


																			3 Months Ended						6 Months Ended
				December 31,															June 30,						June 30,
				2019			2020			2021			2022			2023			2023			2024			2023			2024

	Aflac Japan:
		Invested assets (in millions)(1)		¥	11,784,586		¥	11,936,087		¥	12,405,531		¥	12,617,181		¥	12,127,531		¥	12,839,288		¥	12,661,415		¥	12,839,288		¥	12,661,415
		Return on average invested assets(2)		2.33		%	2.38		%	2.72		%	2.78		%	2.90		%	2.77		%	3.59		%	2.67		%	3.37		%
		Portfolio book yield at end of period(3)		2.64		%	2.59		%	2.60		%	3.06		%	3.18		%	3.19		%	3.32		%	3.19		%	3.32		%
		Total purchases for period (in millions)(3)		¥	1,003,885		¥	714,124		¥	952,038		¥	716,964		¥	378,541		¥	87,385		¥	156,496		¥	246,825		¥	457,066
		New money yield(3)(4)		3.83		%	3.75		%	3.50		%	4.48		%	5.18		%	4.75		%	5.96		%	5.03		%	5.71		%

	Aflac U.S.:
		Invested assets (in millions)(1)		$	14,036		$	14,848		$	15,841		$	16,772		$	17,075		$	16,419		$	17,242		$	16,419		$	17,242
		Return on average invested assets(2)		5.70		%	4.90		%	4.87		%	4.72		%	4.88		%	4.91		%	5.13		%	4.77		%	5.01		%
		Portfolio book yield at end of period(3)		5.40		%	5.18		%	4.94		%	5.39		%	5.53		%	5.49		%	5.63		%	5.49		%	5.63		%
		Total purchases for period (in millions)(3)		$	1,835		$	1,050		$	2,130		$	1,701		$	907		$	288		$	209		$	529		$	727
		New money yield(3)(4)		4.51		%	3.04		%	3.41		%	5.16		%	7.56		%	7.75		%	7.60		%	7.41		%	6.96		%

	Hedge Costs/Income Metrics (5)(6)

																			3 Months Ended						6 Months Ended
				December 31,															June 30,						June 30,
				2019			2020			2021			2022			2023			2023			2024			2023			2024
	Aflac Japan:
			FX hedged notional at end of period (in billions) - forwards (7)	$	8.8		$	6.0		$	6.4		$	4.1		$	—		$	3.7		$	—		$	3.7		$	—
			FX hedged notional at end of period (in billions) - put options	9.2			13.1			11.6			13.5			24.7			6.7			24.7			6.7			24.7
			Amortized hedge costs for period (in millions)	(257)			(206)			(76)			(112)			(157)			(63)			(7)			(122)			(13)
	Corporate and Other (Parent Company):
			FX hedged notional at end of period (in billions) - forwards (7)	$	4.9		$	5.0		$	5.0		$	5.0		$	2.6		$	5.0		$	2.0		$	5.0		$	2.0
			FX hedged notional at end of period (in billions) - put options	2.0			2.0			1.9			2.6			0.5			11.1			—			11.1			—
			Amortized hedge income (costs) for period (in millions)	89			97			57			68			122			38			34			67			62

	(1) Invested assets, including cash and short term investments, are stated at amortized cost; except for equities, which are at fair value.
	(2) Net of investment expenses and amortized hedge costs, year-to-date number reflected on a quarterly average basis
	(3) Includes fixed maturity securities, commercial mortgage and other loans, equity securities, and excludes alternative investments in limited partnerships, and any impacts from hedging activities
	(4) Reported on a gross yield basis; excludes investment expenses, external management fees, and amortized hedge costs
	(5) See non-U.S. GAAP financial measures for definition of amortized hedge costs/income. Further, the metrics in this table are split to show the hedging of the market value of a portion of the USD investments in Japan Segment’s "USD Program" in the "Japan Segment Portfolio Allocation by Currency" table on page 13 of this supplement as well as the corporate hedging activities at Aflac Incorporated
	(6) Aflac Japan and the Parent Company utilize foreign currency forwards and options to hedge foreign currency exchange rate risk. The hedge cost/income on the table above reflects our FX forward protection of the hedged USD portfolio, and hedge costs on one sided options used as caps, and on tail-risk put options.
	(7) Notional is reported net of any offsetting positions within Aflac Japan or the Parent Company, respectively.


Aflac Incorporated and Subsidiaries


		Japan Segment Portfolio Allocation by Currency (1)
		(Dollars In Millions, U.S. GAAP Basis)

			December 31, 2023				June 30, 2024
			Amortized Cost (3)		Fair Value		Amortized Cost (3)		Fair Value
	JGB		$	39,151	$	40,222	$	34,111	$	33,114
	Other		19,517		20,285		16,667		17,103
	Total yen denominated		58,668		60,507		50,778		50,217

	USD Program		23,384		25,254		24,254		26,788
	Other		2,081		2,902		1,830		2,806
	US dollar denominated		25,465		28,156		26,084		29,594

	Total		$	84,133	$	88,663	$	76,862	$	79,811


		Distribution of Consolidated Fixed Maturities by Sector (2)
							June 30, 2024
	(In millions)						Amortized Cost (3)		% of Total
	Government and agencies						$	35,174	43.8		%
	Municipalities						2,291		2.9
	Mortgage- and asset-backed securities						3,409		4.2
	Public utilities						6,455		8.0
	Electric						5,214		6.5
	Natural Gas						724		.9
	Other						517		.6
	Sovereign and supranational						787		1.1
	Banks/financial institutions						8,348		10.4
	Banking						4,846		6.0
	Insurance						1,811		2.3
	Other						1,691		2.1
	Other corporate						23,824		29.6
	Basic Industry						2,046		2.5
	Capital Goods						3,007		3.7
	Communications						2,504		3.1
	Consumer Cyclical						1,883		2.3
	Consumer Non-Cyclical						5,585		7.0
	Energy						2,072		2.6
	Other						1,050		1.3
	Technology						3,013		3.8
	Transportation						2,664		3.3
	Total fixed maturity securities						$	80,288	100.0		%

	(1) The entire U.S. segment investment portfolio is U.S. dollar denominated.
	(2)In the first quarter of 2023, the Utility/Energy subsector was combined with the Natural Gas subsector to better reflect the risk characteristics of those issuers and align more closely with industry benchmarks.
	(3) Net of reserves


Aflac Incorporated and Subsidiaries

Long-Term Debt Data

Adjusted Leverage Ratios
(In Millions)

		December 31,															June 30,
			2019			2020			2021			2022			2023			2023		2024

	Notes payable	$	6,569		$	7,899		$	7,956		$	7,442		$	7,364		$	7,087	$	7,430
	50% of subordinated debentures and perpetual bonds		(408)			(432)			(389)			(337)			(315)			(308)		(277)
	Pre-funding of debt maturities		(348)			—			—			—			(211)			—		—
	Adjusted debt (1)		5,814			7,467			7,568			7,105			6,839			6,779		7,154

	Total Shareholders' Equity		28,959			33,559			17,031			20,140			21,985			20,439		26,047
	Accumulated other comprehensive (income) loss:
	Unrealized foreign currency translation (gains) losses		1,623			1,109			1,985			3,564			4,069			4,249		5,091
	Unrealized (gains) losses on fixed maturity securities		(8,548)			(10,361)			(9,602)			702			(1,139)			(1,978)		(401)
	Unrealized (gains) losses on derivatives		33			34			30			27			22			25		22
	Effect on change in discount rate assumptions		N/A			N/A			15,832			2,100			2,560			5,059		(1,425)
	Pension liability adjustment		277			284			166			36			8			(17)		5
	Adjusted book value (1)		22,344			24,625			25,442			26,569			27,505			27,777		29,339

	Adjusted capitalization ex-AOCI(1)(2)	$	28,565		$	32,524		$	33,398		$	34,011		$	34,658		$	34,864	$	36,769
	Adjusted debt to adjusted capitalization ex-AOCI		20.4	%		23.0	%		22.7	%		20.9	%		19.7	%		19.4		19.5	%

	Adjusted capitalization(1)(3)	$	26,665		$	31,131		$	31,247		$	30,411		$	30,581		$	30,632	$	31,673
	Adjusted debt to adjusted capitalization		21.8	%		24.0	%		24.2	%		23.4	%		22.4	%		22.1		22.6	%


Debt Maturities(4)
(In Millions)
June 30, 2024

		≤ 1 year		1 > 5 years		5 > 10 years		10 > 20 years		20 years +		Total

	Senior Notes	$	—	$	1,746	$	2,768	$	1,036	$	1,269	$	6,819
	Subordinated debt		—		—		—		—		559		559


	Total	$	—	$	1,746	$	2,768	$	1,036	$	1,828	$	7,378

(1) See non-U.S. GAAP financial measures for definition of: adjusted debt; adjusted book value; adjusted debt, including 50% of subordinated debentures and perpetual bonds; and adjusted book value, including unrealized foreign currency translation gains and losses and pension liability adjustment

(2) Adjusted capitalization ex-AOCI is the sum of adjusted debt, including 50% of subordinated debentures and perpetual bonds, plus adjusted book value

(3)Adjusted capitalization is sum of adjusted debt, including 50% of subordinated debentures and perpetual bonds, plus adjusted book value, including unrealized foreign currency translation gains and losses and pension liability adjustment

(4) Debt maturity amounts do not include discounts, premiums, deferred charges, or capital lease obligations.

Aflac Incorporated and Subsidiaries

Insurer Financial Strength Ratings

AM Best

Moody's

S&P

JCR

R&I

U.S. Operating Companies

Aflac of Columbus

A+

Aa3

A+

Aflac of New York

A+

Continental American Insurance Company

A+

Japan Operating Company

Aflac Life Insurance Japan Ltd.

A+

Aa3

A+

Bermuda Operating Company

Aflac Re Bermuda Ltd.

Issuer Credit Ratings

AM Best

Moody's

S&P

JCR

R&I

Aflac Incorporated

Long-term Senior Debt

A-

A+

Junior Subordinated Debt

Baa1

BBB

A-

Aflac of Columbus

Long-term Senior Debt

A+

Aflac Life Insurance Japan, Ltd.

Long-term Senior Debt

A+

Subordinated Bonds

AA-

The outlook for all ratings assigned by A.M. Best, S&P, Moody's and R&I is stable. The outlook for all ratings assigned by JCR is positive.


Aflac U.S.

	Statements of Pretax Adjusted Earnings
	(Before Management Fee)
	(In Millions)



			Years Ended December 31,										3 Months Ended June 30,					6 Months Ended June 30,
																	%					%
			2019		2020		2021		2022			2023		2023		2024	Change		2023		2024	Change

	Revenues:
		Net earned premiums
		Gross premiums	$	5,818	$	5,762	$	5,540	$	5,467	$	5,669	$	1,418	$	1,471		$	2,837	$	2,960
		Assumed (ceded)		(11)		(4)		73		103		6		7		(16)			15		(30)
		Total net earned premiums		5,808		5,758		5,614		5,570		5,675		1,425		1,455	2.1		2,853		2,930	2.7
		Adjusted net investment income		720		705		754		755		820		203		218	7.4		400		424	6.0
		Other income excl. realized foreign
		exchange gains (losses)		22		102		121		161		128		35		11			70		30

		Total adjusted revenues		6,550		6,565		6,489		6,486		6,623		1,663		1,684	1.3		3,323		3,384	1.8

	Benefits and claims:
		Benefits and claims, net
		Incurred claims -direct		2,611		2,498		2,183		2,245		2,423		599		654			1,194		1,419
		Incurred claims -assumed (ceded)		(5)		(1)		89		104		17		5		(14)			14		(25)
		Increase in FPB -direct		268		271		463		326		280		72		64			160		24
		Increase in FPB -assumed (ceded)		(2)		(3)		(11)		4		(5)		(1)		(1)			(2)		1
		Total benefits and claims, net, excluding reserve remeasurement		N/A		N/A		2,724		2,679		2,715		675		704			1,366		1,419
		Reserve remeasurement (gain) loss		N/A		N/A		(85)		(124)		(283)		(30)		(24)			(70)		(54)
		Total benefits and claims, net		2,871		2,765		2,639		2,555		2,431		645		680	5.4		1,296		1,365	5.3

	Adjusted expenses:
		Amortization of deferred policy
		acquisition costs		573		570		442		455		490		120		132	10.0		239		264	10.5
		Insurance commissions		590		576		550		553		561		140		140	—		282		281	(.4)
		Insurance and other expenses		1,244		1,386		1,502		1,564		1,640		389		350	(10.0)		785		734	(6.5)
		Total adjusted expenses		2,407		2,532		2,494		2,573		2,691		648		621			1,305		1,279

		Total benefits and adjusted expenses		5,279		5,297		5,132		5,127		5,122		1,294		1,301	.5		2,601		2,644	1.7

		Pretax adjusted earnings	$	1,272	$	1,268	$	1,356	$	1,359	$	1,501	$	369	$	383	3.8	$	721	$	739	2.5


Aflac U.S.

	Balance Sheets
	(In Millions)



			December 31,											June 30,
			2019		2020		2021		2022		2023		2023			2024
	Assets:

	Investments and cash		$	16,141	$	17,949	$	18,324	$	15,987	$	16,718		$	15,819		$	16,588
	Receivables, net of allowance for credit losses (1)			650		667		574		584		688			676			710
	Accrued investment income			174		172		169		184		183			178			186
	Deferred policy acquisition costs			3,544		3,450		3,366		3,463		3,573			3,508			3,599
	Other assets (1)			436		626		758		784		698			751			672

		Total assets	$	20,945	$	22,864	$	23,191	$	21,002	$	21,861		$	20,932		$	21,755


	Liabilities and Shareholders' Equity:

	Future policy benefits		$	9,404	$	9,674	$	14,212	$	10,870	$	11,234		$	11,087		$	10,657
	Policy and contract claims			1,779		2,010		151		200		258			240			356
	Other policy liabilities			111		126		119		117		107			118			112

	Deferred income taxes			51		235		(328)		(243)		(311)			(246)			(307)
	Other liabilities			1,803		2,016		2,010		2,080		2,062			1,817			2,145
	Shareholders' equity			7,796		8,803		7,027		7,978		8,510			7,915			8,793

		Total liabilities & shareholders' equity	$	20,945	$	22,864	$	23,191	$	21,002	$	21,861		$	20,932		$	21,755


Aflac U.S.

Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Restated to conform to current classifications)
(Dollars In Millions)
		Net				Total		Benefits					Total				Pretax
		Earned	%	Adjusted	%	Adjusted	%	&	%		%	Adjusted			%	Adjusted		%
	Period	Premiums	Change	NII	Change	Revenues	Change	Claims, Net	Change	Amort.	Change	Expenses			Change	Earn.		Change

	2019	5,808	1.8	720	(1.0)	6,550	1.7	2,871	(.6)	573	7.3			2,407		6.0		1,272	(1.0)
	2020	5,758	(.9)	705	(2.1)	6,565	.2	2,765	(3.7)	570	(.5)			2,532		5.2		1,268	(.3)
	2021	5,614	(2.5)	754	7.0	6,489	(1.2)	2,639	(4.6)	442	(22.5)			2,494		(1.5)		1,356	6.9
	2022	5,570	(.8)	755	.1	6,486	—	2,555	(3.2)	455	2.9			2,573		3.2		1,359	.2
	2023	5,675	1.9	820	8.6	6,623	2.1	2,431	(4.9)	490	7.7			2,691		4.6		1,501	10.4


2022	1	1,413	(.6)	184	4.5	1,639	.7	666	(4.3)	114	2.7			640		6.7		333	.6
	2	1,394	(1.0)	193	2.1	1,628	.1	658	(4.6)	113	1.8			627		4.7		343	1.5
	3	1,375	(1.3)	185	(3.1)	1,598	(1.1)	616	4.1	114	3.6			638		3.2		345	(14.8)
	4	1,388	(.2)	192	(2.5)	1,621	.1	614	(7.0)	115	4.5			667		(1.3)		339	20.2

2023	1	1,428	1.1	197	7.1	1,660	1.3	651	(2.3)	119	4.4			657		2.7		352	5.7
	2	1,425	2.2	203	5.2	1,663	2.1	645	(2.0)	120	6.2			648		3.3		369	7.6
	3	1,419	3.2	209	13.0	1,661	3.9	510	(17.2)	122	7.0			674		5.6		478	38.6
	4	1,403	1.1	211	9.9	1,639	1.1	626	2.0	129	12.2			712		6.7		302	(10.9)

2024	1	1,475	3.3	206	4.6	1,699	2.3	686	5.4	132	10.9			658		.2		356	1.1
	2	1,455	2.1	218	7.4	1,684	1.3	680	5.4	132	10.0			621		(4.2)		383	3.8

Aflac U.S.


Operating Ratios
(Before Management Fee)




		12-Mo. Rolling			Total Adjusted	Combined	Pretax
		Premium	Tot. Ben./	Amort./	Expenses/	Ratio/	Profit
	Period	Persistency (1)	Premium	Premium	Total Adj. Rev.	Total Adj. Rev.	Margin

	2019	77.7		49.4	9.9	36.7	80.6	19.4
	2020	79.3		48.0	9.9	38.6	80.7	19.3
	2021	79.7		47.0	7.9	38.4	79.1	20.9
	2022	77.3		45.9	8.2	39.7	79.0	21.0
	2023	78.6		42.8	8.6	40.6	77.3	22.7
	2024 YTD	78.7		46.6	9.0	37.8	78.1	21.8

2022	1	78.7		47.1	8.1	39.0	79.7	20.3
	2	78.1		47.2	8.1	38.5	78.9	21.1
	3	77.9		44.8	8.3	39.9	78.4	21.6
	4	77.3		44.2	8.3	41.1	79.1	20.9

2023	1	77.9		45.6	8.3	39.6	78.8	21.2
	2	78.2		45.3	8.4	39.0	77.8	22.2
	3	78.7		35.9	8.6	40.6	71.2	28.8
	4	78.6		44.6	9.2	43.4	81.6	18.4

2024	1	78.7		46.5	8.9	38.7	79.0	21.0
	2	78.7		46.7	9.1	36.9	77.3	22.7




(1) Includes Network Dental & Vision, Consumer Markets, and Group Premier Life, Absence Management, and Disability Solutions products beginning in the first quarter of 2021

Aflac U.S.


Aflac U.S. Sales Results
(Dollars In Millions)

		Annl.			New Annl.
		Prem.		%	Prem.		%
	Period	In Force		Change	Sales		Change

	2019		6,301	1.1		1,580	(1.3)
	2020		6,099	(3.2)		1,093	(30.8)
	2021		6,003	(1.6)		1,278	16.9
	2022		5,967	(.6)		1,483	16.1
	2023		6,161	3.3		1,558	5.0


2022	1		5,942	(1.4)		299	19.0
	2		5,926	(1.0)		305	15.6
	3		5,889	(.7)		334	11.8
	4		5,967	(.6)		545	17.4

2023	1		6,023	1.4		315	5.3
	2		6,064	2.3		324	6.4
	3		6,062	2.9		359	7.5
	4		6,161	3.3		559	2.6

2024	1		6,211	3.1		298	(5.2)
	2		6,239	2.9		331	2.0

Aflac U.S.


Aflac U.S. Product Mix
(New Annualized Premium Sales, Dollars in Millions)

				% of		% of		% of	Critical	% of	Hospital	% of	Dental/	% of
		Period	Disability	Total	Life	Total	Accident	Total	Care(1)	Total	Indemnity	Total	Vision	Total	Total
		2019	355	22.5	97	6.1	450	28.5	346	21.9	263	16.6	69	4.4	1,580
		2020	243	22.3	80	7.3	285	26.1	242	22.2	197	18.0	45	4.1	1,093
		2021	296	23.1	114	9.0	321	25.1	273	21.3	209	16.4	65	5.1	1,278
		2022	378	25.5	156	10.5	338	22.8	299	20.1	226	15.3	85	5.8	1,483
		2023	399	25.6	188	12.0	326	20.9	322	20.7	225	14.5	98	6.3	1,558


	2022	1	70	23.3	24	7.9	75	25.3	63	21.2	50	16.7	17	5.6	299
		2	77	25.2	26	8.3	75	24.6	63	20.6	45	14.9	19	6.4	305
		3	97	28.9	33	10.0	76	22.6	60	18.1	47	14.1	21	6.3	334
		4	135	24.9	73	13.4	112	20.5	112	20.6	84	15.4	28	5.2	545

	2023	1	79	25.2	26	8.3	74	23.5	64	20.5	50	15.9	21	6.6	315
		2	80	24.8	35	10.7	73	22.4	66	20.4	46	14.3	24	7.4	324
		3	101	28.2	54	15.0	72	19.9	67	18.6	45	12.6	20	5.7	359
		4	139	24.8	73	13.0	107	19.2	124	22.2	83	14.9	33	5.9	559

	2024	1	69	23.0	32	10.8	67	22.5	66	22.1	45	15.1	19	6.5	298
		2	85	25.7	41	12.4	70	21.2	70	21.1	45	13.7	19	5.9	331


Aflac U.S. Sales Force Data

					Average	Productivity
					Weekly	(Production/
		Recruited Agents			Producer	Avg. Weekly
	Period	Career	Broker	Total	Equivalents	Producers)
	2019	15,227	3,603	18,830	8,184	193,120
	2020	11,826	1,861	13,687	5,918	184,706
	2021	10,641	5,445	16,086	5,993	213,235
	2022	9,550	1,500	11,050	6,186	239,786
	2023	10,103	1,463	11,566	6,239	249,663


2022	1	1,987	455	2,442	6,061	49,322
	2	2,937	391	3,328	6,067	50,264
	3	2,358	339	2,697	6,010	55,599
	4	2,268	315	2,583	6,607	82,538

2023	1	2,676	348	3,024	6,108	51,525
	2	2,801	399	3,200	6,196	52,361
	3	2,407	431	2,838	6,044	59,425
	4	2,219	285	2,504	6,608	84,645

2024	1	2,330	346	2,676	5,800	51,432
	2	3,113	422	3,535	6,098	54,262

(1) Includes cancer, critical illness, and hospital intensive care products

Aflac Japan


Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)

		Years Ended December 31,										3 Months Ended June 30,					6 Months Ended June 30,
																%					%
		2019		2020		2021		2022		2023		2023		2024		Change	2023		2024		Change
Revenues:
	Net earned premiums
	Gross premiums	¥	1,450,586	¥	1,409,134	¥	1,290,527	¥	1,246,657	¥	1,212,654	¥	302,801	¥	293,110		¥	609,540	¥	589,167
	Assumed (ceded)		(57,974)		(55,926)		(50,864)		(48,578)		(84,838)		(19,423)		(25,792)			(39,114)		(51,989)
	Total net earned premiums		1,392,612		1,353,208		1,239,663		1,198,079		1,127,816		283,377		267,319	(5.7)		570,426		537,178	(5.8)
	Net investment income (1)
	Yen denominated		142,473		138,397		138,513		149,449		138,073		34,234		35,327	3.2		68,983		69,679	1.0
	US$ denominated		157,717		167,541		202,905		215,171		247,277		62,086		78,629	26.6		115,940		141,626	22.2
	Net investment income		300,191		305,938		341,419		364,621		385,352		96,322		113,957	18.3		184,924		211,305	14.3
	Amortized hedge costs on foreign investments (2)		(28,938)		(22,816)		(8,391)		(13,155)		(19,773)		(8,359)		(970)	(88.4)		(16,030)		(1,767)	(89.0)
	Adjusted net investment income		271,253		283,122		333,028		351,466		365,579		87,963		112,987	28.4		168,895		209,538	24.1
	Other income excl. realized foreign
	currency gains (losses)		4,869		4,497		4,512		4,442		4,720		1,203		875			2,369		2,058

	Total adjusted revenues		1,668,734		1,640,827		1,577,203		1,553,988		1,498,115		372,544		381,181	2.3		741,689		748,774	1.0

Benefits and claims:
	Benefits and claims, net
	Incurred claims -direct		727,491		734,471		743,247		788,572		781,774		185,568		195,320			400,806		420,177
	Incurred claims -assumed (ceded)		(45,657)		(37,806)		(31,798)		(36,141)		(70,748)		(15,517)		(18,777)			(32,394)		(38,184)
	Increase in FPB -direct		292,444		260,200		149,084		73,592		44,121		21,684		3,386			14,643		(19,639)
	Increase in FPB -assumed (ceded)		(6,497)		(11,377)		(11,425)		(5,618)		2,226		(2,669)		2,853			9		5,184
	Total benefits and claims, net, excluding reserve remeasurement		N/A		N/A		849,108		820,405		757,373		189,066		182,782			383,063		367,538
	Reserve remeasurement (gain) loss		N/A		N/A		(6,879)		(13,337)		(13,072)		(2,756)		(3,878)			(4,483)		(7,762)
	Total benefits and claims, net		967,782		945,487		842,229		807,068		744,301		186,310		178,904	(4.0)		378,580		359,776	(5.0)

Adjusted expenses:
	Amortization of deferred policy
	acquisition costs		77,286		68,818		43,131		44,123		45,840		11,359		11,995	5.6		22,639		24,284	7.3
	Insurance commissions		79,661		79,036		77,449		73,482		68,751		17,607		16,424	(6.7)		35,821		33,412	(6.7)
	Insurance and other expenses		189,203		199,606		202,586		198,493		182,364		43,842		39,335	(10.3)		86,972		76,215	(12.4)
	Total adjusted expenses		346,150		347,460		323,166		316,097		296,955		72,808		67,754			145,433		133,911


	Total benefits and adjusted expenses		1,313,932		1,292,947		1,165,395		1,123,165		1,041,256		259,118		246,658	(4.8)		524,013		493,687	(5.8)

	Pretax adjusted earnings	¥	354,802	¥	347,881	¥	411,808	¥	430,823	¥	456,859	¥	113,426	¥	134,523	18.6	¥	217,677	¥	255,087	17.2


	(1) Includes the net interest cash flows from derivatives associated with certain investment strategies
	(2) See non-U.S. GAAP financial measures for the definition of amortized hedge costs/income

Aflac Japan


Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)

		Years Ended December 31,										3 Months Ended June 30,					6 Months Ended June 30,
																%					%
		2019		2020		2021		2022		2023		2023		2024		Change	2023		2024		Change
Revenues:
	Net earned premiums
	Gross premiums	$	13,304	$	13,193	$	11,765	$	9,558	$	8,649	$	2,206	$	1,881		$	4,524	$	3,873
	Assumed (ceded)		(532)		(524)		(463)		(372)		(602)		(141)		(165)			(290)		(342)
	Total net earned premiums		12,772		12,670		11,301		9,186		8,047		2,064		1,715	(16.9)		4,234		3,531	(16.6)
	Net investment income (1)
	Yen denominated		1,307		1,296		1,262		1,140		985		249		227	(8.8)		512		458	(10.5)
	US$ denominated		1,446		1,569		1,845		1,641		1,755		451		505	12.0		858		929	8.3
	Net investment income		2,753		2,865		3,107		2,782		2,739		700		732	4.6		1,370		1,387	1.2
	Amortized hedge costs on foreign investments (2)		(257)		(206)		(76)		(112)		(157)		(63)		(7)	(88.9)		(122)		(13)	(89.3)
	Adjusted net investment income		2,496		2,659		3,031		2,669		2,582		637		725	13.8		1,248		1,374	10.1
	Other income excl. realized foreign
	currency gains (losses)		45		42		41		35		35		9		7			18		14

	Total adjusted revenues		15,313		15,371		14,373		11,890		10,664		2,710		2,447	(9.7)		5,500		4,919	(10.6)

Benefits and claims
	Benefits and claims, net
	Incurred claims -direct		6,671		6,875		6,776		6,038		5,582		1,352		1,253			2,977		2,765
	Incurred claims -assumed (ceded)		(419)		(354)		(290)		(275)		(502)		(113)		(120)			(240)		(251)
	Increase in FPB -direct		2,684		2,437		1,356		562		314		163		23			108		(131)
	Increase in FPB -assumed (ceded)		(60)		(107)		(104)		(43)		15		(19)		18			1		34
	Total benefits and claims, net, excluding reserve remeasurement		N/A		N/A		7,738		6,282		5,409		1,379		1,174			2,845		2,417
	Reserve remeasurement (gain) loss		N/A		N/A		(62)		(91)		(96)		(22)		(26)			(34)		(52)
	Total benefits and claims, net		8,877		8,851		7,675		6,191		5,313		1,358		1,148	(15.5)		2,811		2,365	(15.9)

Adjusted expenses:
	Amortization of deferred policy
	acquisition costs		709		644		393		338		326		83		77	(7.2)		168		160	(4.8)
	Insurance commissions		731		740		706		563		491		128		105	(18.0)		266		220	(17.3)
	Insurance and other expenses		1,734		1,873		1,843		1,517		1,299		319		252	(21.0)		645		501	(22.3)
	Total adjusted expenses		3,174		3,257		2,942		2,417		2,117		530		435			1,079		880

	Total benefits and adjusted expenses		12,051		12,108		10,618		8,609		7,430		1,888		1,583	(16.2)		3,890		3,245	(16.6)

	Pretax adjusted earnings	$	3,261	$	3,263	$	3,756	$	3,281	$	3,234	$	822	$	864	5.1	$	1,610	$	1,674	4.0


	(1) Includes the net interest cash flows from derivatives associated with certain investment strategies
	(2) See non-U.S. GAAP financial measures for definition of amortized hedge costs/income

Aflac Japan


Balance Sheets
(In Millions)


	December 31,											June 30,
	2019		2020		2021		2022		2023		2023			2024

Assets:

Investments and cash	¥	12,847,994	¥	13,080,154	¥	13,645,902	¥	12,777,746	¥	12,566,939		¥	13,488,208		¥	13,115,407
Receivables, net of allowance for credit losses		28,219		20,782		22,439		23,138		24,848			28,085			32,133
Accrued investment income		65,485		62,722		67,493		76,489		74,666			77,958			83,439
Deferred policy acquisition costs		721,341		723,579		745,510		766,506		788,394			776,027			797,500
Other assets		308,411		320,351		386,832		387,065		946,644			704,605			904,100

Total assets	¥	13,971,450	¥	14,207,588	¥	14,868,176	¥	14,030,944	¥	14,401,491		¥	15,074,884		¥	14,932,579


Liabilities and Shareholders' Equity:

Future policy benefits	¥	8,924,868	¥	9,175,501	¥	11,755,704	¥	10,315,140	¥	10,444,044		¥	10,922,302		¥	9,772,638
Policy and contract claims		315,477		328,778		—		28		465			611			605
Unearned premiums		453,133		361,010		284,045		227,732		192,595			207,831			180,459
Other policyholders' funds		801,588		808,429		877,690		880,989		874,854			886,267			875,931
Income taxes (prim. deferred)		618,901		478,969		36,166		114,688		95,297			53,975			165,623
Other liabilities		357,135		253,219		502,633		575,554		576,879			1,026,978			1,012,671
Shareholders' equity		2,500,349		2,801,682		1,411,938		1,916,812		2,217,357			1,976,920			2,924,652

Total liabilities & shareholders' equity	¥	13,971,450	¥	14,207,588	¥	14,868,176	¥	14,030,944	¥	14,401,491		¥	15,074,884		¥	14,932,579

Aflac Japan


Balance Sheets
(In Millions)


	December 31,										June 30,
	2019		2020		2021		2022		2023			2023			2024

Assets:

Investments and cash	$	117,269	$	126,378	$	118,639	$	96,290	$	88,606			$	93,029		$	81,427
Receivables, net of allowance for credit losses		258		201		195		174		175				194			199
Accrued investment income		598		606		587		576		526				538			518
Deferred policy acquisition costs		6,584		6,991		6,482		5,776		5,559				5,352			4,951
Other assets		2,815		3,095		3,363		2,917		6,675				4,860			5,613

Total assets	$	127,523	$	137,271	$	129,266	$	105,734	$	101,541			$	103,972		$	92,708


Liabilities and Shareholders' Equity:

Future policy benefits	$	81,461	$	88,652	$	102,206	$	77,733	$	73,638			$	75,332		$	60,673
Policy and contract claims		2,879		3,177		—		—		3				4			4
Unearned premiums		4,136		3,488		2,470		1,716		1,358				1,433			1,120
Other policyholders' funds		7,316		7,811		7,631		6,639		6,169				6,113			5,438
Income taxes (prim. deferred)		5,650		4,630		314		781		619				322			1,040
Other liabilities		3,260		2,447		4,369		4,337		4,067				7,083			6,287
Shareholders' equity		22,820		27,068		12,276		14,528		15,687				13,685			18,146

Total liabilities & shareholders' equity	$	127,523	$	137,271	$	129,266	$	105,734	$	101,541			$	103,972		$	92,708

Aflac Japan


Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes
(Yen In Millions)


		Net						Total			Benefits						Total				Pretax
		Earned		%	Adjusted		%	Adjusted		%	&		%			%	Adjusted		%		Adjusted		%
	Period	Premiums		Change	NII		Change	Revenues		Change	Claims, Net		Change	Amort.		Change	Expense		Change		Earn.		Change

	2019		1,392,612	(1.1)		271,253	2.2		1,668,734	(.6)		967,782	(1.6)		77,286	(1.5)		346,150		1.6		354,802		.2
	2020		1,353,208	(2.8)		283,122	4.4		1,640,827	(1.7)		945,487	(2.3)		68,818	(11.0)		347,459		.4		347,881		(2.0)
	2021		1,239,663	(8.4)		333,028	17.6		1,577,203	(3.9)		842,229	(10.9)		43,131	(37.3)		323,166		(7.0)		411,808		18.4
	2022		1,198,079	(3.4)		351,466	5.5		1,553,988	(1.5)		807,068	(4.2)		44,123	2.3		316,097		(2.2)		430,823		4.6
	2023		1,127,816	(5.9)		365,579	4.0		1,498,115	(3.6)		744,301	(7.8)		45,840	3.9		296,955		(6.1)		456,859		6.0


2022	1		304,884	(2.8)		79,042	5.9		385,000	(1.2)		206,890	(4.0)		10,886	3.3		77,095		(.8)		101,015		4.7
	2		302,213	(3.1)		94,004	8.4		397,358	(.5)		204,807	(3.7)		10,964	2.5		79,022		(.3)		113,529		5.5
	3		293,667	(4.5)		92,241	9.8		387,113	(1.4)		196,121	(4.8)		11,073	2.9		77,498		(4.0)		113,494		7.4
	4		297,315	(3.1)		86,180	(1.7)		384,517	(2.8)		199,250	(4.3)		11,201	.6		82,482		(3.5)		102,785		.8

2023	1		287,048	(5.9)		80,931	2.4		369,145	(4.1)		192,270	(7.1)		11,281	3.6		72,625		(5.8)		104,251		3.2
	2		283,377	(6.2)		87,963	(6.4)		372,544	(6.2)		186,310	(9.0)		11,359	3.6		72,808		(7.9)		113,426		(.1)
	3		285,305	(2.8)		98,866	7.2		385,363	(.5)		185,855	(5.2)		11,435	3.3		73,068		(5.7)		126,440		11.4
	4		272,085	(8.5)		97,819	13.5		371,063	(3.5)		179,866	(9.7)		11,766	5.0		78,454		(4.9)		112,742		9.7

2024	1		269,859	(6.0)		96,551	19.3		367,593	(.4)		180,873	(5.9)		12,289	8.9		66,157		(8.9)		120,564		15.6
	2		267,319	(5.7)		112,987	28.4		381,181	2.3		178,904	(4.0)		11,995	5.6		67,754		(6.9)		134,523		18.6

Aflac Japan


Operating Ratios
(Before Management Fee)

		12-Mo. Rolling		Tot. Ben./		Tot. Adj.	Combined	Pretax
		Premium	Tot. Ben./	Premiums	Amort./	Expenses/	Ratio/	Profit
	Period	Persistency(1)	Premium	(3rd sector)	Premium	Total Adj. Rev.	Total Adj. Rev.	Margin

	2019	94.4	69.5	59.3	5.5	20.7	78.7	21.3
	2020	95.1	69.9	59.7	5.1	21.2	78.8	21.2
	2021	94.3	67.9	58.7	3.5	20.5	73.9	26.1
	2022	94.1	67.4	58.5	3.7	20.3	72.3	27.7
	2023	93.4	66.0	56.2	4.1	19.8	69.5	30.5
	2024	93.3	67.0	57.7	4.5	17.9	65.9	34.1

2022	1	94.3	67.9	58.5	3.6	20.0	73.8	26.2
	2	94.3	67.8	58.5	3.6	19.9	71.4	28.6
	3	94.3	66.8	59.4	3.8	20.0	70.7	29.3
	4	94.1	67.0	57.7	3.8	21.5	73.3	26.7

2023	1	93.9	67.0	57.7	3.9	19.7	71.8	28.2
	2	93.8	65.7	56.2	4.0	19.5	69.6	30.4
	3	93.5	65.1	54.8	4.0	19.0	67.2	32.8
	4	93.4	66.1	56.2	4.3	21.1	69.6	30.4

2024	1	93.4	67.0	57.5	4.6	18.0	67.2	32.8
	2	93.3	66.9	57.8	4.5	17.8	64.7	35.3

(1) Premium persistency presented on a 12-month rolling basis for all periods, rather than year to date

Aflac Japan


Aflac Japan Sales Results
(Yen In Millions, unless otherwise noted)



		Annl.			Third Sector
		Prem.			New Annl.			Total
		In Force		%	Prem.		%	New Annual.		%
	Period	(Billions)		Change	Sales		Change	Premium Sales		Change

	2019		1,489.3	(2.5)		72,836	(18.0)		79,697	(16.9)
	2020		1,426.5	(4.2)		45,110	(38.1)		50,852	(36.2)
	2021		1,360.6	(4.7)		48,977	8.6		54,764	7.7
	2022		1,301.0	(4.4)		47,998	(2.0)		54,765	—
	2023		1,246.4	(4.2)		52,234	8.8		60,730	10.9



2022	1		1,345.6	(4.6)		10,679	(19.0)		11,925	(14.8)
	2		1,332.0	(4.3)		11,372	(6.2)		12,731	(6.4)
	3		1,315.7	(4.3)		12,639	12.1		13,884	10.2
	4		1,301.0	(4.4)		13,308	1.7		16,224	11.4

2023	1		1,281.4	(4.8)		10,952	2.6		13,213	10.8
	2		1,268.4	(4.8)		13,964	22.8		16,112	26.6
	3		1,257.4	(4.4)		13,606	7.7		15,600	12.4
	4		1,246.4	(4.2)		13,711	3.0		15,805	(2.6)

2024	1		1,232.6	(3.8)		10,767	(1.7)		12,534	(5.1)
	2		1,222.5	(3.6)		12,712	(9.0)		16,833	4.5

Aflac Japan


Aflac Japan Product Mix
(New Annualized Premium Sales, Yen In Billions)

			% of		% of	Income	% of	Child	% of		% of	Ordinary	% of		% of
	Period	Cancer	Total	Medical	Total	Support	Total	Endowment	Total	WAYS	Total	Life Other	Total	Other	Total	Total
	2019	47.2	59.2	24.6	31.0	1.0	1.2	.2	.2	.4	.5	5.9	7.4	.4	.5	79.7
	2020	28.8	56.6	15.9	31.2	.5	1.0	.2	.4	.4	.7	4.8	9.5	.3	.6	50.9
	2021	27.0	49.2	20.4	37.2	.3	.5	.2	.3	.4	.8	4.9	9.0	1.6	3.0	54.8
	2022	30.9	56.5	14.6	26.6	.7	1.3	.2	.3	1.9	3.5	4.5	8.1	2.0	3.7	54.8
	2023	38.9	64.1	12.3	20.2	.3	.4	.2	.4	4.1	6.8	3.9	6.5	1.0	1.6	60.7


2022	1	6.4	53.0	3.8	31.4	.1	1.1	.1	.3	.1	.7	1.1	9.0	.5	4.5	11.9
	2	6.8	53.4	3.8	29.9	.3	2.2	—	.2	.1	.8	1.2	9.2	.6	4.3	12.7
	3	8.4	60.1	3.7	26.4	.2	1.2	—	.2	.1	.6	1.0	7.7	.5	3.8	13.9
	4	9.5	58.2	3.4	20.8	.1	.8	.1	.4	1.6	10.1	1.1	7.2	.4	2.5	16.2

2023	1	7.9	59.9	2.7	20.8	.1	.6	.1	.6	1.2	8.9	1.0	7.3	.2	1.9	13.2
	2	10.9	67.7	2.8	17.5	.1	.4	.1	.4	1.0	6.6	1.0	6.1	.2	1.3	16.1
	3	10.3	65.6	3.1	20.0	.1	.4	.1	.4	.9	6.0	.9	6.1	.2	1.5	15.6
	4	9.9	62.5	3.6	22.8	.1	.4	—	.3	.9	6.0	1.1	6.6	.2	1.4	15.8

2024	1	7.9	63.2	2.7	21.1	—	.3	—	.3	.7	5.3	1.0	8.1	.2	1.7	12.5
	2	9.9	58.8	2.7	15.8	—	.2	—	.2	.4	2.3	3.7	21.8	.1	.9	16.8

Aflac Japan


Aflac Japan Sales Force Data

			Number of Agencies by Type				Sales Contribution by Agency Type

		Period	Individual/ Independent Corporate	Affiliated Corporate	Bank	Total	Individual/ Independent Corporate	Affiliated Corporate	Bank	Licensed Sales Associates(1)	Recruited Agencies
		2019	7,683	1,343	367	9,393	45.7	50.0	4.3	109,265	77
		2020	7,231	1,312	361	8,904	52.3	42.6	5.1	111,886	48
		2021	6,779	1,283	360	8,422	51.1	43.7	5.2	111,854	62
		2022	6,159	1,239	359	7,757	49.5	46.5	4.0	110,259	38
		2023	5,751	1,203	360	7,314	46.7	50.0	3.3	113,010	24


	2022	1	6,447	1,266	360	8,073	48.9	46.5	4.6	109,873	6
		2	6,335	1,255	359	7,949	48.4	48.1	3.5	110,096	12
		3	6,260	1,246	359	7,865	49.3	46.2	4.5	110,400	12
		4	6,159	1,239	359	7,757	51.2	45.4	3.4	110,259	8

	2023	1	6,056	1,232	359	7,647	50.9	45.4	3.7	109,769	4
		2	5,947	1,219	360	7,526	44.8	52.5	2.7	112,593	5
		3	5,843	1,211	360	7,414	44.4	51.9	3.7	112,795	6
		4	5,751	1,203	360	7,314	47.7	49.2	3.1	113,010	9

	2024	1	5,659	1,191	360	7,210	48.9	48.0	3.1	112,645	12
		2	5,542	1,180	360	7,082	49.5	48.4	2.1	114,424	12

(1) Excludes Dai-ichi Life, banks, Japan Post Group and Daido Life

Aflac Japan


Yen/Dollar Exchange Rates

				Yearly
		Closing	Qtr	Cum	%
	Period	Rate(1)	Avg	Avg	Change

	2019	109.56	N/A	109.07	1.2
	2020	103.50	N/A	106.86	2.1
	2021	115.02	N/A	109.79	(2.7)
	2022	132.70	N/A	130.17	(15.7)
	2023	141.83	N/A	140.57	(7.4)


2022	1	122.39	116.18	116.18	(8.9)
	2	136.68	129.39	122.79	(12.2)
	3	144.81	137.08	126.65	(14.3)
	4	132.70	141.87	130.17	(15.7)

2023	1	133.53	132.30	132.30	(12.2)
	2	144.99	137.53	134.97	(9.0)
	3	149.58	144.97	138.38	(8.5)
	4	141.83	148.11	140.57	(7.4)

2024	1	151.41	148.67	148.67	(11.0)
	2	161.07	155.70	152.30	(11.4)








	(1) Closing rate is based on the latest available and published MUFG Bank Ltd. TTM mid-day exchange rate.

Corporate and Other


Statements of Pretax Adjusted Earnings
(Before Management Fee)
(In Millions)

		Years Ended December 31,															3 Months Ended June 30,							6 Months Ended June 30,
																							%							%
		2019			2020			2021			2022			2023			2023			2024			Change	2023			2024			Change
Revenues:
	Total net earned premiums		$	200		$	194		$	180		$	145		$	400		$	84		$	155	84.5		$	175		$	320	82.9
	Net investment income (1)		88			80			(73)			30			(77)			14			57		307.1		21			107		409.5
	Amortized hedge income (2)		89			97			57			68			121			38			34		(10.5)		67			62		(7.5)
	Adjusted net investment income		177			177			(16)			98			44			52			91		75.0		88			169		92.0
	Other income		15			13			11			24			15			3			5		66.7		5			8		60.0

	Total adjusted revenues		393			384			175			267			460			140			249		77.9		268			497		85.4

Benefits and expenses:
	Total net benefits and claims		194			180			161			141			467			95			94		(1.1)		141			201		42.6
	Interest expense		133			164			165			162			144			37			38		2.7		70			74		5.7
	Other adjusted expenses		137			155			142			181			273			60			95		58.3		117			202		72.6

	Total benefits and adjusted expenses		464			499			469			485			885			192			227		18.2		328			477		45.4

	Pretax adjusted earnings		$	(72)		$	(115)		$	(293)		$	(218)		$	(425)		$	(52)		$	23	144.2		$	(58)		$	21	136.2


(1)	The change in value of federal historic rehabilitation and solar investments in partnerships of $30 and $53 for the three-month periods and $62 and $105 for the six-month periods ended June 30, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $31 and $56 for the three-month periods and $64 and $108 for the six-months period ended June 30, 2024, and 2023, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings.
(2)	See non-U.S. GAAP financial measures for the definition of amortized hedge cost/income

Non-U.S. GAAP Financial Measures

The Company defines the non-U.S. GAAP financial measures included in this document as follows:


•			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. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude AOCI, which fluctuates due to market movements that are outside management’s control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively.
•			Adjusted book value including unrealized foreign currency translation gains and losses is adjusted book value plus unrealized foreign currency translation gains and losses. Adjusted book value including unrealized foreign currency translation gains and losses per common share is adjusted book value plus unrealized foreign currency translation gains and losses at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value including unrealized foreign currency translation gains and losses, and its related per share financial measure, important as they exclude certain components of AOCI, which fluctuate due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measures for adjusted book value including unrealized foreign currency translation gains and losses and adjusted book value including unrealized foreign currency translation gains and losses per common share are total book value and total book value per common share, respectively.
•			Adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is adjusted book value plus unrealized foreign currency translation gains and losses and pension liability adjustment. The Company considers adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment important as it excludes certain components of AOCI, which fluctuates due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac’s Japan operation. The most comparable U.S. GAAP financial measure for adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is total book value.
•			Adjusted debt is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding 50% of subordinated debentures and perpetual bonds and all pre-funding of debt maturities. The Company considers adjusted debt important as it measures outstanding debt consistently with expectations of the Company’s rating agency stakeholders. The most comparable U.S. GAAP financial measure for adjusted debt is notes payable.
•			Adjusted debt including 50% of subordinated debentures and perpetual bonds is the sum of notes payable, as recorded on the U.S. GAAP balance sheet, excluding pre-funding of debt maturities. The Company considers adjusted debt including 50% of subordinated debentures and perpetual bonds important as it measures outstanding debt consistently with expectations of the Company’s rating agency stakeholders. The most comparable U.S. GAAP financial measure for adjusted debt including 50% of subordinated debentures and perpetual bonds is notes payable.


•			Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of management’s control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring 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. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively.
•			Adjusted earnings excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management’s control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively.
•			Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign exchange risks in the Company's Japan segment or in Corporate and other. These amortized hedge costs/income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the contractual term of the derivative. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income.
•			Adjusted net investment gains and losses are net investment gains and losses adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are both reclassified to net investment income, and iii) the impact of interest from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management’s control, while excluding the components that are within management’s control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses.
•			Adjusted net investment income is net investment income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, and ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and losses to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company’s investments and related hedging strategies. The most comparable U.S. GAAP financial measure for adjusted net investment income is net investment income.
•			Adjusted return on equity is adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income (AOCI). Management uses adjusted return on equity to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The Company considers adjusted return on equity important as it excludes components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on average equity (ROE) as determined using net earnings and average total shareholders’ equity.

Second Quarter 2024

Earnings Call

Video Update

Max K. Brodén

July 31, 2024

For more information contact:

Investor and Rating Agency Relations

800.235.2667

aflacir@aflac.com

Aflac Worldwide Headquarters

1932 Wynnton Road

Columbus, GA 31999

Preliminary note: Forward-Looking Information and Non-U.S. GAAP Financial Measures

Forward-Looking Information

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. The company desires to take advantage of these provisions. This transcript contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” “may,” “should,” “estimate,” “intends,” “projects,” “will,” “assumes,” “potential,” “target,” "outlook" or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements.