10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-07434

Aflac Incorporated

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Georgia			58-1167100
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer 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, former address and former fiscal year, if changed since last report)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.10 par value per share	AFL	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  þ  Yes  ¨  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).            þ  Yes  ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	þ	Accelerated filer	☐
Non-accelerated filer	¨	Smaller reporting company	☐
		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. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  ☐  Yes  þ  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 717,507,919 shares of the issuer's common stock were outstanding as of April 20, 2020.

Aflac Incorporated and Subsidiaries

Quarterly Report on Form 10-Q

For the Quarter Ended March 31, 2020

Table of Contents

PART I.		FINANCIAL INFORMATION:	Page
	Item 1.	Financial Statements (Unaudited)
		Consolidated Statements of Earnings   Three Months Ended March 31, 2020 and 2019	1
		Consolidated Statements of Comprehensive Income (Loss)   Three Months Ended March 31, 2020 and 2019	2
		Consolidated Balance Sheets   March 31, 2020, and December 31, 2019	3
		Consolidated Statements of Shareholders' Equity   Three Months Ended March 31, 2020 and 2019	4
		Consolidated Statements of Cash Flows   Three Months Ended March 31, 2020 and 2019	5
		Notes to the Consolidated Financial Statements	6
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	60
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	94
	Item 4.	Controls and Procedures	95
PART II.		OTHER INFORMATION:
	Item 1.	Legal Proceedings	96
	Item 1A.	Risk Factors	96
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	100
	Item 6.	Exhibits	101
Glossary of Selected Terms			102

Items other than those listed above are omitted because they are not required or are not applicable.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Aflac Incorporated and Subsidiaries

Consolidated Statements of Earnings

	Three Months Ended March 31,
(In millions, except for share and per-share amounts - Unaudited)	2020				2019
Revenues:
Net premiums, principally supplemental health insurance		$	4,681			$	4,691
Net investment income		904				878
Net investment gains (losses)		(463		)		71
Other income (loss)		40				17
Total revenues		5,162				5,657
Benefits and expenses:
Benefits and claims, net		2,939				2,967
Acquisition and operating expenses:
Amortization of deferred policy acquisition costs		333				340
Insurance commissions		336				331
Insurance and other expenses (1)		779				719
Interest expense		55				58
Total acquisition and operating expenses		1,503				1,448
Total benefits and expenses		4,442				4,415
Earnings before income taxes		720				1,242
Income taxes		154				314
Net earnings		$	566			$	928
Net earnings per share:
Basic		$	.78			$	1.23
Diluted		.78				1.23
Weighted-average outstanding common shares used in computing earnings per share (In thousands):
Basic		724,366				751,423
Diluted		727,512				755,790
Cash dividends per share		$	.28			$	.27

⁽¹⁾ Includes expense of $15 in 2020 for the early extinguishment of debt

See the accompanying Notes to the Consolidated Financial Statements.

1

Aflac Incorporated and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

	Three Months Ended March 31,
(In millions - Unaudited)	2020				2019
Net earnings		$	566			$	928
Other comprehensive income (loss) before income taxes:
Unrealized foreign currency translation gains (losses) during period		85				(1		)
Unrealized gains (losses) on fixed maturity securities:
Unrealized holding gains (losses) on fixed maturity securities during period		(4,605		)		3,196
Reclassification adjustment for (gains) losses on fixed maturity securities included in net earnings		7				(17		)
Unrealized gains (losses) on derivatives during period		(4		)		(3		)
Pension liability adjustment during period		0				7
Total other comprehensive income (loss) before income taxes		(4,517		)		3,182
Income tax expense (benefit) related to items of other comprehensive income (loss)		(1,242		)		852
Other comprehensive income (loss), net of income taxes		(3,275		)		2,330
Total comprehensive income (loss)		$	(2,709	)		$	3,258

See the accompanying Notes to the Consolidated Financial Statements.

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Aflac Incorporated and Subsidiaries

Consolidated Balance Sheets

(In millions, except for share and per-share amounts)	March 31, 2020 (Unaudited)				December 31, 2019
Assets:
Investments and cash:
Fixed maturity securities available for sale, at fair value, (allowance for credit losses of $63, amortized cost $84,673 in 2020 and amortized cost $76,063 in 2019)		$	92,502			$	86,950
Fixed maturity securities available for sale - consolidated variable interest entities, at fair value (amortized cost $3,208 in 2020 and amortized cost of $3,308 in 2019)		3,786				4,312
Fixed maturity securities held to maturity, at amortized cost, net of allowance for credit losses of $9 in 2020 (fair value $29,347 in 2020 and $37,594 in 2019)		23,278				30,085
Equity securities, at fair value		660				802
Commercial mortgage and other loans, net of allowance for credit losses of $125 in 2020 (includes $9,051 in 2020 and $7,956 in 2019 of consolidated variable interest entities)		10,750				9,569
Other investments (includes $550 in 2020 and $494 in 2019 of consolidated variable interest entities)		1,843				1,477
Cash and cash equivalents		4,148				4,896
Total investments and cash		136,967				138,091
Receivables		813				828
Accrued investment income		734				772
Deferred policy acquisition costs		10,164				10,128
Property and equipment, at cost less accumulated depreciation		586				581
Other		2,352				2,368
Total assets		$	151,616			$	152,768
Liabilities and shareholders’ equity:
Liabilities:
Policy liabilities:
Future policy benefits		$	91,393			$	90,335
Unpaid policy claims		4,693				4,659
Unearned premiums		4,044				4,243
Other policyholders’ funds		7,422				7,317
Total policy liabilities		107,552				106,554
Income taxes		4,610				5,370
Payables for return of cash collateral on loaned securities		2,969				1,876
Notes payable and lease obligations		6,758				6,569
Other		3,325				3,440
Total liabilities		125,214				123,809
Commitments and contingent liabilities (Note 13)
Shareholders’ equity:
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2020 and 2019; issued 1,350,650 shares in 2020 and 1,349,309 shares in 2019		135				135
Additional paid-in capital		2,334				2,313
Retained earnings		34,599				34,291
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains (losses)		(1,543		)		(1,623		)
Unrealized gains (losses) on fixed maturity securities		6,043				8,548
Unrealized gains (losses) on derivatives		(35		)		(33		)
Pension liability adjustment		(277		)		(277		)
Treasury stock, at average cost		(14,854		)		(14,395		)
Total shareholders’ equity		26,402				28,959
Total liabilities and shareholders’ equity		$	151,616			$	152,768

See the accompanying Notes to the Consolidated Financial Statements.

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Aflac Incorporated and Subsidiaries

Consolidated Statements of Shareholders’ Equity

(In millions, except for per share amounts - Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total Shareholders' Equity
Balance at December 31, 2019	$	135	$	2,313	$	34,291		$	6,615		$	(14,395	)	$	28,959
Cumulative effect of change in accounting   principle, Accounting Standards Update   (ASU) 2016-13, net of tax (1)	0		0		(56		)	0			0			(56		)
Cumulative effect of change in accounting   principle, ASU 2019-04, net of tax (1)	0		0		0			848			0			848
Balance at January 1, 2020	$	135	$	2,313	$	34,235		$	7,463		$	(14,395	)	$	29,751
Net earnings	0		0		566			0			0			566
Unrealized foreign currency translation gains (losses) during period, net of income tax	0		0		0			80			0			80
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments	0		0		0			(3,353		)	0			(3,353		)
Unrealized gains (losses) on derivatives during period, net of income taxes	0		0		0			(2		)	0			(2		)
Pension liability adjustment during period, net of income taxes	0		0		0			0			0			0
Dividends to shareholders ($.28 per share)	0		0		(202		)	0			0			(202		)
Exercise of stock options	0		5		0			0			0			5
Share-based compensation	0		7		0			0			0			7
Purchases of treasury stock	0		0		0			0			(476		)	(476		)
Treasury stock reissued	0		9		0			0			17			26
Balance at March 31, 2020	$	135	$	2,334	$	34,599		$	4,188		$	(14,854	)	$	26,402

(In millions, except for per share amounts - Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total Shareholders' Equity
Balance at December 31, 2018	$	135	$	2,177	$	31,788		$	2,151		$	(12,789	)	$	23,462
Net earnings	0		0		928			0			0			928
Unrealized foreign currency translation gains (losses) during period, net of income tax	0		0		0			(1		)	0			(1		)
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments	0		0		0			2,327			0			2,327
Unrealized gains (losses) on derivatives during period, net of income taxes	0		0		0			(2		)	0			(2		)
Pension liability adjustment during period, net of income taxes	0		0		0			6			0			6
Dividends to shareholders ($.27 per share)	0		0		(203		)	0			0			(203		)
Exercise of stock options	0		11		0			0			0			11
Share-based compensation	0		8		0			0			0			8
Purchases of treasury stock	0		0		0			0			(517		)	(517		)
Treasury stock reissued	0		12		0			0			18			30
Balance at March 31, 2019	$	135	$	2,208	$	32,513		$	4,481		$	(13,288	)	$	26,049

⁽¹⁾ See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2020.

See the accompanying Notes to the Consolidated Financial Statements.

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Aflac Incorporated and Subsidiaries

Consolidated Statements of Cash Flows

	Three Months Ended March 31,
(In millions - Unaudited)	2020				2019
Cash flows from operating activities:
Net earnings		$	566			$	928
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Change in receivables and advance premiums		15				35
Capitalization of deferred policy acquisition costs		(325		)		(357		)
Amortization of deferred policy acquisition costs		333				340
Increase in policy liabilities		368				468
Change in income tax liabilities		153				316
Net investment (gains) losses		463				(71		)
Other, net		(159		)		(115		)
Net cash provided (used) by operating activities		1,414				1,544
Cash flows from investing activities:
Proceeds from investments sold or matured:
Available-for-sale fixed maturity securities		726				760
Equity securities		3				153
Held-to-maturity fixed maturity securities		0				155
Commercial mortgage and other loans		408				493
Costs of investments acquired:
Available-for-sale fixed maturity securities		(1,817		)		(2,548		)
Equity securities		(6		)		(151		)
Commercial mortgage and other loans		(1,787		)		(669		)
Other investments, net		(361		)		(442		)
Settlement of derivatives, net		13				(3		)
Cash received (pledged or returned) as collateral, net		1,160				976
Other, net		(55		)		(15		)
Net cash provided (used) by investing activities		(1,716		)		(1,291		)
Cash flows from financing activities:
Purchases of treasury stock		(449		)		(490		)
Proceeds from borrowings		545				0
Principal payments under debt obligations		(350		)		0
Dividends paid to shareholders		(195		)		(195		)
Change in investment-type contracts, net		(5		)		(13		)
Treasury stock reissued		9				12
Other, net		(1		)		0
Net cash provided (used) by financing activities		(446		)		(686		)
Effect of exchange rate changes on cash and cash equivalents		0				(12		)
Net change in cash and cash equivalents		(748		)		(445		)
Cash and cash equivalents, beginning of period		4,896				4,337
Cash and cash equivalents, end of period		$	4,148			$	3,892
Supplemental disclosures of cash flow information:
Income taxes paid		$	2			$	(2	)
Interest paid		39				36
Noncash interest		15				22
Noncash financing activities:
Lease obligations		13				1
Treasury stock issued for:
Associate stock bonus		5				6
Shareholder dividend reinvestment		7				8
Share-based compensation grants		5				4

See the accompanying Notes to the Consolidated Financial Statements.

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Aflac Incorporated and Subsidiaries

Notes to the Consolidated Financial Statements

(Interim period data – Unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States (U.S.) and Japan. The Company’s operations consist of two reportable business segments: Aflac Japan and Aflac U.S. The Parent Company's primary insurance subsidiaries are Aflac Life Insurance Japan Ltd. (Aflac Japan) and American Family Life Assurance Company of Columbus (Aflac); Continental American Insurance Company (CAIC), branded as Aflac Group Insurance (AGI); American Family Life Assurance Company of New York (Aflac New York); Tier One Insurance Company (TOIC) and Argus Dental & Vision, Inc (Argus), which provides a platform for Aflac Dental and Vision in the U.S. (collectively, Aflac U.S.). Aflac Japan's revenues, including net gains and losses on its investment portfolio, accounted for 67% and 68% of the Company's total revenues in the three-month periods ended March 31, 2020 and 2019, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 84% at March 31, 2020 and December 31, 2019, respectively.

Basis of Presentation

The Company prepares its financial statements in accordance with U.S. generally accepted accounting principles (U.S. GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification^TM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates based on currently available information when recording transactions resulting from business operations. The most significant items on the Company's balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments and derivatives, deferred policy acquisition costs (DAC), liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, the Company believes the amounts provided are adequate.

The unaudited consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated.

In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of March 31, 2020, and December 31, 2019, and the consolidated statements of earnings and comprehensive income (loss), shareholders' equity and cash flows for the three-month periods ended March 31, 2020 and 2019. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2019 (2019 Annual Report).

COVID-19: On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. The impact of COVID-19 on the Company is evolving and its future effects are uncertain and the Company is closely monitoring the effects and risks of COVID-19 to assess its impact on the Company's business, financial condition, results of operations, liquidity and capital position.

Liquidity and Capital Resources

The Company entered the crisis having maintained capital ratios in Japan and the U.S. at a level designed to absorb a degree of market volatility. To further support liquidity and capital resources, the Parent Company, in March 2020, issued four series of senior notes totaling ¥57.0 billion and, in April 2020, issued $1 billion in senior notes through public debt offerings under its U.S. shelf registration statement. The Company has available liquidity in its unsecured revolving credit facilities of $1.0 billion and ¥100.0 billion, respectively, and currently has no borrowings under either of these facilities. In April 2020, Aflac increased its internal limit for Federal Home Loan Bank of Atlanta (FHLB) borrowings to $800 million, $300 million of which the Company has designated to be used

6

for short-term liquidity needs and subject to qualified collateral availability and other conditions. The Company continues to evaluate other sources of liquidity including reinvestment cash flows and selling investments.

Major government initiatives

Government authorities in Japan and the U.S. have implemented several initiatives in response to the COVID-19 pandemic, including actions designed to mitigate the adverse health effects of the virus and those designed to provide broad-based relief and economic support to all aspects of the economy. Given that these measures were recently implemented, it is too early to determine what impacts these initiatives will have on the Company’s business, results of operations, financial condition, liquidity, capital position, investment portfolio, workforce, distribution partners and vendors.

Reclassifications: 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.

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Standard	Description	Date of Adoption	Effect on Financial Statements or Other Significant Matters
Accounting Standards Update (ASU) 2019-04 Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments	In April 2019, the FASB issued Codification improvements to clarify and correct certain areas of guidance amended as part of ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities; ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; and ASU 2017-12, Derivative and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The most significant of these improvements to the Company was related to the Codification improvement to ASU 2017-12 and the clarification that a one-time reclassification of assets that are eligible to be hedged under the last-of-layer method (i.e., certain pre-payable securities) from held-to-maturity to available-for-sale is allowed under the new hedge accounting guidance and would not impact the Company’s ability to continue to classify other bonds as held-to-maturity. The other amendments related to ASU 2017-12 and 2016-01 are either not significant, or were previously implemented as part of the related ASU adoptions. Applicable amendments related to ASU 2016-13 are discussed within the recent adoption of that update below.	January 1, 2020	The adoption of this guidance resulted in a reclassification of $6.9 billion (at amortized cost) of pre-payable fixed-maturity securities from the held-to-maturity to the available-for-sale category. The reclassification resulted in recording in accumulated other comprehensive income a net unrealized gain of $848 million on an after-tax basis, based on the securities’ fair values on the reclassification date. The reclassification impacted the adoption of ASU 2016-13 (see ASU 2016-13 below for additional details).
ASU 2018-17 Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities	In October 2018, the FASB issued targeted improvements which provide that indirect interests held through related parties under common control should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.	January 1, 2020	The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
ASU 2018-13 Fair Value Measurement, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement	In August 2018, the FASB issued amendments to the disclosure requirements on fair value measurements. The amendments remove, modify, and add certain disclosures.	January 1, 2020	The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations, or disclosures.

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Standard	Description	Date of Adoption	Effect on Financial Statements or Other Significant Matters
ASU 2017-04 Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment	In January 2017, the FASB issued amendments simplifying the subsequent measurement of goodwill. An entity, under this update, is no longer required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, the entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount.	January 1, 2020	The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
ASU 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments as clarified and amended by: ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, ASU 2019-05, Financial Instruments - Credit Losses (Topic 326), Targeted Transition Relief and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments- Credit Losses	In June 2016, the FASB issued amendments that require a financial asset (or a group of financial assets) measured at amortized cost to be presented net of an allowance for credit losses (Credit Losses ASU) in order to reflect the amount expected to be collected on the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information. Credit losses on available-for-sale debt securities will be measured in a manner similar to current U.S. GAAP; however, the amendments require that credit losses be presented as an allowance rather than as a write-down. Other amendments include changes to the balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant credit deterioration since origination (PCD financial assets).	January 1, 2020	The Company recorded a cumulative effect adjustment with a decrease to beginning 2020 retained earnings of $56 million, net of taxes. See Note 3 of the Notes to the Consolidated Financial Statements for credit loss disclosures. The following line items in the consolidated balance sheets were most significantly impacted by the adoption of the new accounting standard: • Fixed maturity securities held to maturity, at amortized cost • Commercial mortgage and other loans • Reinsurance recoverable, included within Other assets

8

Accounting Pronouncements Pending Adoption

Standard	Description	Effect on Financial Statements or Other Significant Matters
ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	In March 2020, the FASB issued amendments that provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU only apply to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. An entity may elect to apply the amendments as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued.	The Company is thoroughly evaluating the adoption of this guidance and the impact on the Company’s financial position, results of operations, and disclosures.
ASU 2020-01 Clarifying the interactions between Topic 321, Topic 323, and Topic 815	In January 2020, the FASB issued amendments clarifying that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. In addition, the amendments clarify that for the purpose of applying certain derivative guidance in Topic 815, an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. An entity also would evaluate the remaining characteristics in Topic 815 to determine the accounting for those forward contracts and purchased options. The amendments are effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted.	The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures.
ASU 2018-12 Financial Services - Insurance, Targeted Improvements to the Accounting for Long-Duration Contracts as clarified and amended by: ASU 2019-09 Financial Services - Insurance (Topic 944): Effective Date	In August 2018, the FASB issued amendments that will significantly change how insurers account for long-duration contracts. The amendments will change existing recognition, measurement, presentation, and disclosure requirements. Issues addressed in the new guidance include: 1) a requirement to review and, if there is a change, update assumptions for the liability for future policy benefits at least annually, and to update the discount rate assumption quarterly, 2) accounting for market risk benefits at fair value, 3) simplified amortization for deferred acquisition costs, and 4) enhanced financial statement presentation and disclosures. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. In November 2019, the FASB issued an amendment extending the effective date for public business entities that meet the definition of an SEC filer, excluding entities eligible to be small reporting companies as defined by the SEC, by one year. The amendments are now effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early application of the amendments is permitted.	The Company is thoroughly evaluating the impact of adoption and expects that the adoption will have a significant impact on the Company’s financial position, results of operations, and disclosures. The Company anticipates that the requirement to update assumptions for liability for future policy benefits will have a significant impact on its results of operations, systems, processes and controls while the requirement to update the discount rate will have a significant impact on its equity. The Company has no products with market risk benefits. The Company does not expect to early adopt the updated standard and has tentatively selected a modified retrospective transition method.

Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company's business. 

9

For additional information on new accounting pronouncements and recent accounting guidance and their impact, if any, on the Company's financial position, results of operations or disclosures, see Note 1 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

2. BUSINESS SEGMENT INFORMATION

The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. In addition, operating business units that are not individually reportable and business activities, including reinsurance retrocession activities, not included in Aflac Japan or Aflac U.S. are included in Corporate and other.

The Company does not allocate corporate overhead expenses to business segments. Consistent with U.S. GAAP accounting guidance for segment reporting, the Company evaluates and manages its business segments using a financial performance measure called pretax adjusted earnings. Adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management’s control. Adjusted revenues are U.S. GAAP total revenues excluding net investment gains and losses, except for amortized hedge costs/income related to foreign currency exposure management strategies and net interest cash flows from derivatives associated with certain investment strategies. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect Aflac’s underlying business performance. The Company excludes income taxes related to operations to arrive at pretax adjusted earnings. Information regarding operations by reportable segment and Corporate and other, follows:

	Three Months Ended March 31,
(In millions)	2020			2019
Revenues:
Aflac Japan:
Net earned premiums	$	3,150		$	3,180
Adjusted net investment income (1),(2)	642			610
Other income	11			12
Total adjusted revenue Aflac Japan	3,803			3,802
Aflac U.S.:
Net earned premiums	1,483			1,461
Net investment income	177			177
Other income	27			2
Total adjusted revenue Aflac U.S.	1,687			1,640
Corporate and other (3)	104			95
Total adjusted revenues	5,594			5,537
Net investment gains (losses) (1),(2),(3)	(432		)	120
Total revenues	$	5,162		$	5,657

⁽¹⁾ Amortized hedge costs of $55 and $62 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

⁽²⁾ Net interest cash flows from derivatives associated with certain investment strategies of $(6) and $(7) for the three-month periods ended March 31, 2020 and 2019, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

⁽³⁾ Amortized hedge income of $29 and $20 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.

10

	Three Months Ended March 31,
(In millions)	2020			2019
Pretax adjusted earnings:
Aflac Japan (1),(2)	$	855		$	834
Aflac U.S.	326			323
Corporate and other (3),(4)	2			(18		)
Pretax adjusted earnings (5)	1,183			1,139
Net investment gains (losses) (1),(2),(3),(4)	(448		)	103
Other income (loss)	(15		)	0
Total earnings before income taxes	$	720		$	1,242
Income taxes applicable to pretax adjusted earnings	$	301		$	291
Effect of foreign currency translation on after-tax adjusted earnings	9			(8		)

⁽¹⁾ Amortized hedge costs of $55 and $62 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

⁽²⁾ Net interest cash flows from derivatives associated with certain investment strategies of $(6) and $(7) for the three-month periods ended March 31, 2020 and 2019, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

⁽³⁾ Amortized hedge income of $29 and $20 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.

⁽⁴⁾ A gain of $16 and $17 for the three-month periods ended March 31, 2020, and 2019, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.

⁽⁵⁾ Includes $33 for the three-month periods ended March 31, 2020, and 2019, respectively, of interest expense on debt.

Assets were as follows:

(In millions)	March 31, 2020			December 31, 2019
Assets:
Aflac Japan		$	126,955		$	127,523
Aflac U.S.		20,526			20,945
Corporate and other		4,135			4,300
Total assets		$	151,616		$	152,768

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3. INVESTMENTS

Investment Holdings

The amortized cost for the Company's investments in fixed maturity securities, the cost for equity securities and the fair values of these investments are shown in the following tables.

	March 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	31,853	$	0	$	4,766	$	14	$	36,605
Municipalities	984		0		228		1		1,211
Mortgage- and asset-backed securities	306		0		31		0		337
Public utilities	4,412		0		430		93		4,749
Sovereign and supranational	1,300		0		33		27		1,306
Banks/financial institutions	7,159		0		404		557		7,006
Other corporate	7,817		0		753		389		8,181
Total yen-denominated	53,831		0		6,645		1,081		59,395
U.S. dollar-denominated:
U.S. government and agencies	350		0		23		0		373
Municipalities	1,084		0		145		0		1,229
Mortgage- and asset-backed securities	152		0		8		0		160
Public utilities	3,844		0		649		50		4,443
Sovereign and supranational	239		0		65		1		303
Banks/financial institutions	2,848		0		545		21		3,372
Other corporate	25,533		63		2,531		988		27,013
Total U.S. dollar-denominated	34,050		63		3,966		1,060		36,893
Total securities available for sale	$	87,881	$	63	$	10,611	$	2,141	$	96,288

12

	December 31, 2019
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair   value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	30,929	$	5,169	$	0	$	36,098
Municipalities	516		116		3		629
Mortgage- and asset-backed securities	229		25		0		254
Public utilities	1,855		406		0		2,261
Sovereign and supranational	680		50		0		730
Banks/financial institutions	6,152		700		86		6,766
Other corporate	5,323		944		24		6,243
Total yen-denominated	45,684		7,410		113		52,981
U.S dollar-denominated:
U.S. government and agencies	293		9		0		302
Municipalities	1,077		141		0		1,218
Mortgage- and asset-backed securities	149		7		0		156
Public utilities	3,804		725		10		4,519
Sovereign and supranational	239		73		0		312
Banks/financial institutions	2,879		646		4		3,521
Other corporate	25,246		3,255		248		28,253
Total U.S. dollar-denominated	33,687		4,856		262		38,281
Total securities available for sale	$	79,371	$	12,266	$	375	$	91,262

	March 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	22,387	$	3	$	22,384	$	5,810	$	0	$	28,194
Municipalities	362		0		362		122		0		484
Public utilities	46		1		45		14		0		59
Sovereign and supranational	469		5		464		114		0		578
Other corporate	23		0		23		9		0		32
Total yen-denominated	23,287		9		23,278		6,069		0		29,347
Total securities held to maturity	$	23,287	$	9	$	23,278	$	6,069	$	0	$	29,347

13

	December 31, 2019
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	22,241	$	6,050	$	0	$	28,291
Municipalities	821		262		0		1,083
Mortgage- and asset-backed securities	16		1		0		17
Public utilities	2,535		419		0		2,954
Sovereign and supranational	1,123		197		0		1,320
Banks/financial institutions	916		105		3		1,018
Other corporate	2,433		485		7		2,911
Total yen-denominated	30,085		7,519		10		37,594
Total securities held to maturity	$	30,085	$	7,519	$	10	$	37,594

(In millions)	March 31, 2020			December 31, 2019
Equity securities, carried at fair value through net earnings:	Fair Value			Fair Value
Equity securities:
Yen-denominated		$	528		$	658
U.S. dollar-denominated		132			144
Total equity securities		$	660		$	802

The methods of determining the fair values of the Company's investments in fixed maturity securities and equity securities are described in Note 5.

During the first quarter of 2020, as a result of the adoption of ASU 2019-04 discussed in Note 1, the Company reclassified $6.9 billion (at amortized cost) of pre-payable fixed-maturity securities from the held-to-maturity category to the available-for-sale category. This reclassification resulted in recording in accumulated other comprehensive income a net unrealized gain of $848 million on an after-tax basis. During the first quarter of 2019, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category.

Contractual and Economic Maturities

The contractual and economic maturities of the Company's investments in fixed maturity securities at March 31, 2020, were as follows:

14

(In millions)	Amortized Cost (1)			Fair Value
Available for sale:
Due in one year or less		$	1,078		$	1,105
Due after one year through five years		8,992			8,806
Due after five years through 10 years		12,399			13,221
Due after 10 years		64,891			72,659
Mortgage- and asset-backed securities		458			497
Total fixed maturity securities available for sale		$	87,818		$	96,288
Held to maturity:
Due in one year or less		$	0		$	0
Due after one year through five years		0			0
Due after five years through 10 years		49			55
Due after 10 years		23,229			29,292
Mortgage- and asset-backed securities		0			0
Total fixed maturity securities held to maturity		$	23,278		$	29,347

⁽¹⁾ Net of allowance for credit losses

Economic maturities are used for certain debt instruments with no stated maturity where the expected maturity date is based on the combination of features in the financial instrument such as the right to call or prepay obligations or changes in coupon rates.

Investment Concentrations

The Company's process for investing in credit-related investments begins with an independent approach to underwriting each issuer's fundamental credit quality. The Company evaluates independently those factors that it believes could influence an issuer's ability to make payments under the contractual terms of the Company's instruments. This includes a thorough analysis of a variety of items including the issuer's country of domicile (including political, legal, and financial considerations); the industry in which the issuer competes (with an analysis of industry structure, end-market dynamics, and regulation); company specific issues (such as management, assets, earnings, cash generation, and capital needs); and contractual provisions of the instrument (such as financial covenants and position in the capital structure). The Company further evaluates the investment considering broad business and portfolio management objectives, including asset/liability needs, portfolio diversification, and expected income.

Investment exposures that individually exceeded 10% of shareholders' equity were as follows:

	March 31, 2020			December 31, 2019
(In millions)	Credit Rating	Amortized Cost	Fair Value	Credit Rating	Amortized Cost	Fair Value
Japan National Government(1)	A+	$52,786	$63,020	A+	$51,726	$62,584

⁽¹⁾Japan Government Bonds (JGBs) or JGB-backed securities

15

Net Investment Gains and Losses

Information regarding pretax net gains and losses from investments is as follows:

	Three Months Ended March 31,
(In millions)	2020			2019
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales	$	7		$	12
Gross losses from sales	0			(8		)
Foreign currency gains (losses) on sales and redemptions	(14		)	13
Total sales and redemptions	(7		)	17
Equity securities	(149		)	58
Loan loss reserves (1)	0			(2		)
Credit losses:
Fixed maturity securities available for sale	(63		)	0
Fixed maturity securities held to maturity	1			0
Commercial mortgage and other loans	(37		)	0
Loan commitments	(46		)	0
Total credit losses	(145		)	0
Derivatives and other:
Derivative gains (losses)	(85		)	0
Foreign currency gains (losses)	(77		)	(2		)
Total derivatives and other	(162		)	(2		)
Total net investment gains (losses)	$	(463	)	$	71

⁽¹⁾ U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

The unrealized holding gains, net of losses, recorded as a component of net investment gains and losses for the three-month period ended March 31, 2020, that relate to equity securities still held at the March 31, 2020 reporting date, were $149 million.

Unrealized Investment Gains and Losses

Effect on Shareholders’ Equity

The net effect on shareholders’ equity of unrealized gains and losses from fixed maturity securities was as follows:

(In millions)	March 31, 2020				December 31, 2019
Unrealized gains (losses) on securities available for sale		$	8,470			$	11,891
Deferred income taxes		(2,427		)		(3,343		)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities		$	6,043			$	8,548

Gross Unrealized Loss Aging

The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the periods ended March 31, 2020 and available-for-sale and held-to-maturity investments for prior periods that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

16

	March 31, 2020
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available for sale:
Japan government and agencies:
Yen-denominated		$	725		$	14		$	725		$	14		$	0		$	0
Municipalities:
Yen-denominated		56			1			42			0			14			1
Public utilities:
U.S. dollar-denominated		825			50			701			38			124			12
Yen-denominated		880			93			880			93			0			0
Sovereign and supranational:
U.S. dollar-denominated		18			1			18			1			0			0
Yen-denominated		701			27			701			27			0			0
Banks/financial institutions:
U.S. dollar-denominated		355			21			321			13			34			8
Yen-denominated		3,410			557			2,626			406			784			151
Other corporate:
U.S. dollar-denominated		8,244			988			5,427			527			2,817			461
Yen-denominated		2,829			389			2,677			357			152			32
Total		$	18,043		$	2,141		$	14,118		$	1,476		$	3,925		$	665

	December 31, 2019
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities:
Municipalities:
Yen-denominated		$	80		$	3		$	80		$	3		$	0		$	0
Public utilities:
U.S. dollar-denominated		306			10			69			2			237			8
Banks/financial institutions:
U.S. dollar-denominated		79			4			18			0			61			4
Yen-denominated		1,828			89			1,828			89			0			0
Other corporate:
U.S. dollar-denominated		4,261			248			792			53			3,469			195
Yen-denominated		636			31			636			31			0			0
Total		$	7,190		$	385		$	3,423		$	178		$	3,767		$	207

Analysis of Securities in Unrealized Loss Positions

The unrealized losses on the Company's fixed maturity securities investments have been primarily related to general market changes in interest rates, foreign exchange rates, and/or the levels of credit spreads rather than specific concerns with the issuer's ability to pay interest and repay principal.

17

For any significant declines in fair value of its fixed maturity securities, the Company performs a more focused review of the related issuers' credit profile. For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security it owns including seniority in the issuer's capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers' continued ability to service the Company's investment through payment of interest and principal.

Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company, and the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

However, the Company has identified certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance has been calculated. As of March 31, 2020, the Company recorded an allowance of $63 million. Refer to the Credit Losses section below for additional information.

Commercial Mortgage and Other Loans

The Company classifies its transitional real estate loans (TREs), commercial mortgage loans (CMLs) and middle market loans (MMLs) as held-for-investment and includes them in the commercial mortgage and other loans line on the consolidated balance sheets. The Company carries them on the balance sheet at amortized cost less an estimated allowance for credit losses.

The following table reflects the composition of the carrying value for commercial mortgage and other loans by property type as of the periods presented.

18

(In millions)	March 31, 2020					December 31, 2019
	Amortized Cost			% of Total		Amortized Cost				% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office	$	1,954		18.0	%	$	1,800			18.7	%
Retail	165			1.5		131				1.4
Apartments/Multi-Family	2,065			19.0		2,085				21.7
Industrial	175			1.6		256				2.7
Hospitality	1,024			9.4		1,036				10.8
Other	260			2.4		164				1.7
Total transitional real estate loans	5,643			51.9		5,472				57.0
Commercial mortgage loans:
Office	408			3.8		410				4.3
Retail	346			3.1		348				3.5
Apartments/Multi-Family	589			5.4		569				5.9
Industrial	397			3.7		383				4.0
Total commercial mortgage loans	1,740			16.0		1,710				17.7
Middle market loans	3,492			32.1		2,432				25.3
Total commercial mortgage and other loans	$	10,875		100.0	%	$	9,614			100.0	%
Allowance for credit losses	(125		)			(45		)	(1)
Total net commercial mortgage and other loans	$	10,750				$	9,569

⁽¹⁾ U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

Commercial mortgage and transitional real estate loans were secured by properties entirely within the U.S. (with the largest concentrations in California (20%), Texas (14%) and Florida (10%)). Middle market loans are issued only to companies domiciled within the U.S. and Canada.

Transitional Real Estate Loans

Transitional real estate loans are commercial mortgage loans that are typically relatively short-term floating rate instruments secured by a first lien on the property. These loans provide funding for properties undergoing a change in their physical characteristics and/or economic profile and do not typically require any principal repayment prior to the maturity date. This loan portfolio is generally considered to be investment grade. As of March 31, 2020, the Company had $838 million in outstanding commitments to fund transitional real estate loans. These commitments are contingent on the final underwriting and due diligence to be performed.

Commercial Mortgage Loans

Commercial mortgage loans are typically fixed rate loans on commercial real estate with partial repayment of principal over the life of the loan with the remaining outstanding principal being repaid upon maturity. This loan portfolio is generally considered higher quality investment grade loans. As of March 31, 2020, the Company had $10 million of outstanding commitments to fund commercial mortgage loans. These commitments are contingent on the final underwriting and due diligence to be performed.

Middle Market Loans

Middle market loans are typically first lien senior secured cash flow loans to small to mid-size companies for working capital, refinancing, acquisition, and recapitalization. These loans are generally considered to be below investment grade. The carrying value for middle market loans included $99 million for a short term credit facility that is reflected in other liabilities on the consolidated balance sheets, as of December 31, 2019. The carrying value for middle market loans did not include any amount for a short term credit facility as of March 31, 2020.

19

As of March 31, 2020, the Company had commitments of approximately $2.6 billion of which $2.2 billion was a result of a new agreement with an external manager during the first quarter of 2020 to fund future middle market loans. These commitments are contingent upon the availability of middle market loans that meet the Company's underwriting criteria.

Credit Losses

Effective January 1, 2020, the Company adopted ASC 326: Financial Instruments - Credit Losses. The newly adopted accounting standard requires the Company to estimate an expected lifetime credit loss on financial assets including short-term receivables, held-to-maturity fixed maturity securities, loan receivables, loan commitments and reinsurance recoverables. For the Company’s available-for-sale fixed maturity securities, the newly adopted guidance requires an entity to evaluate estimated credit losses only when the fair value of the available-for-sale fixed maturity security is below its amortized cost basis. Credit loss changes are recorded as a component of net investment gains and losses for the Company’s held-to-maturity and available-for-sale securities, loan receivables, loan commitments and reinsurance recoverables. The Company’s off-balance sheet credit exposure is primarily attributable to loan commitments that are not unconditionally cancelable. The Company considers the contractual period of exposure to credit risk, the likelihood that funding will occur, the risk of loss, and the current conditions and expectations of future economic conditions to develop the estimate of expected credit losses. The Company records the estimate of expected credit losses for certain loan commitments within other liabilities in the consolidated balance sheet.

Write-offs and partial write-offs are recorded as a reduction to the amortized cost of the loan or fixed maturity security balance and a reduction to the credit allowance.

The Company’s held-to-maturity fixed maturity portfolio includes Japan Government and Agency securities of $22 billion amortized cost as of March 31, 2020 that meet the requirements for zero-credit-loss expectation and therefore these asset classes have been excluded from the current expected credit loss measurement.

The Company has elected not to measure an allowance on accrued interest income for all asset types, because the uncollectible accrued interest receivable is written off in a timely manner. The Company writes off accrued interest when it is more than ninety days past due. The Company has elected to write off accrued interest by reversing interest income, which is a component of net investment income, in the consolidated statement of earnings.

The Company designates nonaccrual status for a nonperforming debt security or a loan that is not generating its stated interest rate because of nonpayment of periodic interest by the borrower. The Company applies the cash basis method to record any payments received on non-accrual assets. The Company resumes the accrual of interest on fixed maturity securities and loans that are currently making contractual payments or for those that are not current where the borrower has paid timely (less than 30 days outstanding).

Credit Quality Indicators

For TREs, the Company’s key credit quality indicator is loan-to-value (LTV). Given that TRE loans involve properties undergoing renovation or construction, loan-to-value provides the most insight into the credit risk of the loan. The Company monitors the performance of the loans periodically, but not less frequently than quarterly.

For CMLs, the Company’s key credit quality indicators include LTV and debt service coverage ratios (DSCR). LTV is calculated by dividing the current outstanding loan balance by the most recent estimated property value. DSCR is the most recently available operating income of the underlying property compared to the required debt service of the loan.

For MMLs and held-to-maturity fixed maturity securities, the Company’s key credit quality indicator is credit ratings. The Company’s held-to-maturity portfolio is composed of investment grade securities that are senior unsecured instruments, while its MMLs generally have below-investment-grade ratings but are typically senior secured instruments. The Company monitors the credit ratings periodically, but not less frequently than quarterly.

For the Company’s reinsurance recoverable balance, the key credit quality indicator is the credit rating of the Company’s reinsurance counterparty. The Company uses external credit ratings focused on the reinsurer’s financial strength and credit worthiness. The Company's counterparties are rated A+. The Company monitors the credit ratings periodically, but not less frequently than quarterly.

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The following tables present as of March 31, 2020 the amortized cost basis of TREs, CMLs and MMLs by year of origination and credit quality indicator.

Transitional Real Estate Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Total
Loan-to-Value Ratio:
0%-59.99%	$	33	$	471	$	409	$	155	$	20	$	57	$	1,145
60%-69.99%	190		777		834		436		0		0		2,237
70%-79.99%	81		858		997		250		14		0		2,200
80% or greater	25		36		0		0		0		0		61
Total	$	329	$	2,142	$	2,240	$	841	$	34	$	57	$	5,643

Commercial Mortgage Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Total		Weighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%	$	12	$	474	$	156	$	69	$	683	$	0	$	1,394	2.43
60%-69.99%	27		190		16		0		90		0		323		1.74
70%-79.99%	0		0		0		0		23		0		23		1.32
Total	39		664		172		69		796		0		1,740		2.29
Weighted Average DSCR	1.84		2.33		2.16		2.37		2.30		0		2.29

Middle Market Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
Credit Ratings:
BBB	$	9	$	57	$	52	$	22	$	12	$	0	$	15	$	167
BB	86		277		187		140		56		20		84		850
B	210		827		466		309		98		58		338		2,306
CCC	0		58		10		34		25		4		15		146
CC	0		1		0		18		0		2		2		23
Total	$	305	$	1,220	$	715	$	523	$	191	$	84	$	454	$	3,492

Allowance for Credit Losses

The Company calculates its allowance for credit losses for held-to-maturity fixed maturity securities, loan receivables, loan commitments and reinsurance recoverable by grouping assets with similar risk characteristics when there is not a specific expectation of a loss for an individual asset. For held-to-maturity fixed maturity securities, MMLs, and MML commitments, the Company groups assets by credit ratings, industry, and country. The Company groups CMLs and TREs and respective loan commitments by property type, property location and the property’s loan-to-value and debt service coverage ratios. The credit allowance for the reinsurance recoverable balance is estimated using a probability-of-default (PD) / loss-given-default (LGD) method.

The Company’s methodology for estimating credit losses for available-for-sale fixed maturity securities utilizes the discounted cash flow model, based on past events, current market conditions and future economic conditions, as well as industry analysis and credit ratings of the fixed maturity securities. In addition, the Company evaluates the specific issuer’s probability of default and expected recovery of its position in the event of default based on the underlying financial condition and assets of the borrower as well as seniority and/or security of other debt holders in the issuer when developing management’s best estimate of expected cash flows.

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The credit allowance for held-to-maturity fixed maturity securities and loan receivables is estimated using a PD / LGD method, discounted for the time value of money. For held-to-maturity fixed maturity securities, available-for-sale fixed maturity securities and loan receivables, the Company includes the change in present value due to the passage of time in the change in the allowance for credit losses. The Company’s methodology for estimating credit losses utilizes the contractual maturity date of the financial asset, adjusted when necessary to reflect the expected timing of repayment (such as prepayment options, renewal options, call options, or extension options). The Company applies reasonable and supportable forecasts of macroeconomic variables that impact the determination of PD/LGD over a two-year period for held-to-maturity fixed maturity securities and MMLs. The Company reverts to historical loss information over one year, following the two-year forecast period. For the CML and TRE portfolio, the Company applies reasonable and supportable forecasts of macroeconomic variables as well as national and local real-estate market factors to estimate future credit losses where the market factors revert back to historical levels over time with the period being dependent on current market conditions, projected market conditions and difference in the current and historical market levels for each factor. The Company continuously monitors the estimation methodology, due to changes in portfolio composition, changes in underwriting practices and significant events or conditions and makes adjustments as necessary.

As of March 31, 2020, and December 31, 2019, the Company had no loans that were past due in regards to principal and/or interest payments. Additionally, the number of loans the Company held on nonaccrual status was immaterial as of March 31, 2020, and December 31, 2019. The Company had no troubled debt restructurings during the three months ended March 31, 2020 and 2019.

The following table presents the roll forward of the allowance for credit losses by portfolio segment during the three-month period ended March 31, 2020.

(in millions)	Transitional Real Estate Loans			Commercial Mortgage Loans			Middle Market Loans			Held to Maturity Securities			Available for Sale Securities			Reinsurance Recoverables
Balance at December 31, 2019 (1)	$	(22	)	$	(3	)	$	(20	)	$	0		$	0		$	0
Transition impact to retained earnings	(2		)	(8		)	(33		)	(10		)	0			(11		)
(Addition to) release of allowance for credit losses	(3		)	0			(34		)	1			(63		)	0
Balance at March 31, 2020	$	(27	)	$	(11	)	$	(87	)	$	(9	)	$	(63	)	$	(11	)

⁽¹⁾ U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

For assets that are subject to the credit loss measurement, the change in credit loss allowance will be significantly impacted by purchases and sales in those assets during the period as well as entering into new non-cancelable loan commitments. During the first quarter of 2020, the Company entered into a loan commitment with an external manager that met the requirements to recognize a credit loss on over $2.2 billion of loan commitments over the next few years. The estimate of credit losses for loan commitments as of March 31, 2020 was $60 million.

Other Investments

The table below reflects the composition of the carrying value for other investments as of the periods presented.

(In millions)	March 31, 2020			December 31, 2019
Other investments:
Policy loans		$	253		$	250
Short-term investments (1)		892			628
Limited partnerships		669			569
Other		29			30
Total other investments		$	1,843		$	1,477

⁽¹⁾ Includes securities lending collateral

As of March 31, 2020, the Company had $1.4 billion in outstanding commitments to fund alternative investments in limited partnerships.

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Variable Interest Entities (VIEs)

As a condition of its involvement or investment in a VIE, the Company enters into certain protective rights and covenants that preclude changes in the structure of the VIE that would alter the creditworthiness of the Company's investment or its beneficial interest in the VIE.

For those VIEs other than certain unit trust structures, the Company's involvement is passive in nature. The Company has not, nor has it been, required to purchase any securities issued in the future by these VIEs.

The Company's ownership interest in VIEs is limited to holding the obligations issued by them. The Company has no direct or contingent obligations to fund the limited activities of these VIEs, nor does it have any direct or indirect financial guarantees related to the limited activities of these VIEs. The Company has not provided any assistance or any other type of financing support to any of the VIEs it invests in, nor does it have any intention to do so in the future. For those VIEs in which the Company holds debt obligations, the weighted-average lives of the Company's notes are very similar to the underlying collateral held by these VIEs where applicable.

The Company's risk of loss related to its interests in any of its VIEs is limited to the carrying value of the related investments held in the VIE.

VIEs - Consolidated

The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported.

Investments in Consolidated Variable Interest Entities

	March 31, 2020						December 31, 2019
(In millions)	Amortized Cost (1)			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	3,208		$	3,786		$	3,308		$	4,312
Commercial mortgage and other loans		9,051			8,737			7,956			8,015
Other investments (2)		550			550			494			494
Other assets (3)		89			89			169			169
Total assets of consolidated VIEs		$	12,898		$	13,162		$	11,927		$	12,990
Liabilities:
Other liabilities (3)		$	235		$	235		$	126		$	126
Total liabilities of consolidated VIEs		$	235		$	235		$	126		$	126

⁽¹⁾ Net of allowance for credit losses

⁽²⁾ Consists entirely of alternative investments in limited partnerships

⁽³⁾ Consists entirely of derivatives

The Company is substantively the only investor in the consolidated VIEs listed in the table above. As the sole investor in these VIEs, the Company has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and is therefore considered to be the primary beneficiary of the VIEs that it consolidates. The Company also participates in substantially all of the variability created by these VIEs. The activities of these VIEs are limited to holding invested assets and foreign currency swaps, as appropriate, and utilizing the cash flows from these securities to service its investment. Neither the Company nor any of its creditors are able to obtain the underlying collateral of the VIEs unless there is an event of default or other specified event. For those VIEs that contain a swap, the Company is not a direct counterparty to the swap contracts and has no control over them. The Company's loss exposure to these VIEs is limited to its original investment. The Company's consolidated VIEs do not rely on outside or ongoing sources of funding to support their activities beyond the underlying collateral and swap contracts, if applicable. With the exception of its investment in unit trust structures, the underlying collateral assets and funding of the Company's consolidated VIEs are generally static in nature.

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Investments in Unit Trust Structures

The Company also utilizes unit trust structures in its Aflac Japan segment to invest in various asset classes. As the sole investor of these VIEs, the Company is required to consolidate these trusts under U.S. GAAP.

VIEs - Not Consolidated

The table below reflects the amortized cost, fair value and balance sheet caption in which the Company's investment in VIEs not consolidated are reported.

Investments in Variable Interest Entities Not Consolidated

	March 31, 2020						December 31, 2019
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	5,999		$	6,397		$	4,129		$	4,884
Fixed maturity securities, held to maturity		0			0			1,848			2,236
Other investments (1)		119			119			75			74
Total investments in VIEs not consolidated		$	6,118		$	6,516		$	6,052		$	7,194

⁽¹⁾ Consists entirely of alternative investments in limited partnerships

The Company holds alternative investments in limited partnerships that have been determined to be VIEs. These partnerships invest in private equity and structured investments. The Company’s maximum exposure to loss on these investments is limited to the amount of its investment. The Company is not the primary beneficiary of these VIEs and is therefore not required to consolidate them. The Company classifies these investments as Other investments in the consolidated balance sheets.

Certain investments in VIEs that the Company is not required to consolidate are investments that are in the form of debt obligations from the VIEs that are irrevocably and unconditionally guaranteed by their corporate parents or sponsors. These VIEs are the primary financing vehicles used by their corporate sponsors to raise financing in the capital markets. The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them. The Company does not have the power to direct the activities that most significantly impact the entity's economic performance, nor does it have the obligation to absorb losses of the entity or the right to receive benefits from the entity. As such, the Company is not the primary beneficiary of these VIEs and is therefore not required to consolidate them.

Securities Lending and Pledged Securities

The Company lends fixed maturity and public equity securities to financial institutions in short-term security-lending transactions. These short-term security-lending arrangements increase investment income with minimal risk. The Company receives cash or other securities as collateral for such loans. The Company's security lending policy requires that the fair value of the securities received as collateral be 102% or more of the fair value of the loaned securities and that unrestricted cash received as collateral be 100% or more of the fair value of the loaned securities. The securities loaned continue to be carried as investment assets on the Company's balance sheet during the terms of the loans and are not reported as sales. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral. For loans where the Company receives as collateral securities that the Company is not permitted to sell or repledge, the collateral is not reflected on the consolidated financial statements.

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Details of collateral by loaned security type and remaining maturity of the agreements were as follows:

Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
	March 31, 2020						December 31, 2019
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total		Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Fixed maturity securities:
Japan government and agencies	$	0	$	2,318	$	2,318	$	0	$	1,013	$	1,013
Public utilities	35		0		35		35		0		35
Sovereign and supranational	1		0		1		2		0		2
Banks/financial institutions	68		0		68		48		0		48
Other corporate	547		0		547		778		0		778
Total borrowings	$	651	$	2,318	$	2,969	$	863	$	1,013	$	1,876
Gross amount of recognized liabilities for securities lending transactions					$	2,969					$	1,876

⁽¹⁾ The related loaned security, under the Company's U.S. securities lending program, can be returned to the Company at the transferee's discretion; therefore, they are classified as Overnight and Continuous.

In connection with securities lending, in addition to cash collateral received, the Company received from counterparties securities collateral of $5,188 million and $4,759 million at March 31, 2020 and December 31, 2019, respectively, which may not be sold or re-pledged, unless the counterparty is in default. Such securities collateral is not reflected on the consolidated financial statements.

The Company did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of March 31, 2020, and December 31, 2019, respectively.

Certain fixed maturity securities can be pledged as collateral as part of derivative transactions, or pledged to support state deposit requirements or certain investment programs. For additional information regarding pledged securities related to derivative transactions, see Note 4.

4. DERIVATIVE INSTRUMENTS

The Company's freestanding derivative financial instruments have historically consisted of:

• foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio

• foreign currency forwards and options used to economically hedge certain portions of forecasted cash flows denominated in yen and hedge the Company's long term exposure to a weakening yen

• cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with certain senior notes and subordinated debentures

• foreign currency swaps and, in prior periods, credit default swaps that are associated with investments in special-purpose entities, including VIEs where the Company is the primary beneficiary

• interest rate swaps used to economically hedge interest rate fluctuations in certain variable-rate investments

• interest rate swaptions used to hedge changes in the fair value associated with interest rate fluctuations for certain U.S. dollar-denominated available-for-sale fixed-maturity securities.

Some of the Company's derivatives are designated as cash flow hedges, fair value hedges or net investment hedges; however, other derivatives do not qualify for hedge accounting or the Company elects not to designate them as accounting hedges.

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Derivative Types

Foreign currency forwards and options are executed for the Aflac Japan segment in order to hedge the currency risk on the carrying value of certain U.S. dollar-denominated investments. The average maturity of these forwards and options can change depending on factors such as market conditions and types of investments being held. In situations where the maturity of the forwards and options is shorter than the underlying investment being hedged, the Company may enter into new forwards and options near maturity of the existing derivative in order to continue hedging the underlying investment. In forward transactions, Aflac Japan agrees with another party to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. Aflac Japan also executes foreign currency option transactions in a collar strategy, where Aflac Japan agrees with another party to simultaneously purchase put options and sell call options. In the purchased put transactions, Aflac Japan obtains the option to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. In the sold call transaction, Aflac Japan agrees to sell a fixed amount of yen and buy a corresponding amount of U.S. dollars at a specified future date. The combination of purchasing the put option and selling the call option results in no net premium being paid (i.e. a costless or zero-cost collar). Additionally, the Company enters into purchased options, acting as caps to protect the downside of the sold call options beyond a specified level. As opposed to the collar strategies which are fair value hedges, these sold call option caps are classified as non-qualifying hedges.

From time to time, the Company may also enter into foreign currency forwards and options to hedge the currency risk associated with the net investment in Aflac Japan. In these forward transactions, Aflac agrees with another party to buy a fixed amount of U.S. dollars and sell a corresponding amount of yen at a specified price at a specified future date. In the option transactions, the Company may use a combination of foreign currency options to protect expected future cash flows by simultaneously purchasing yen put options (options that protect against a weakening yen) and selling yen call options (options that limit participation in a strengthening yen). The combination of these two actions create a zero-cost collar. Additionally, the Company enters into purchased options to hedge cash flows from the net investment in Aflac Japan.

The Company enters into foreign currency swaps pursuant to which it exchanges an initial principal amount in one currency for an initial principal amount of another currency, with an agreement to re-exchange the principal amounts at a future date. There may also be periodic exchanges of payments at specified intervals based on the agreed upon rates and notional amounts. Foreign currency swaps are used primarily in the consolidated VIEs in the Company's Aflac Japan portfolio to convert foreign-denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations. The Company also uses foreign currency swaps to economically convert certain of its U.S. dollar-denominated senior note and subordinated debenture principal and interest obligations into yen-denominated obligations.

In order to reduce investment income volatility from its variable-rate investments, the Company enters into receive–fixed, pay–floating interest rate swaps. These derivatives are cleared and settled through a central clearinghouse.

Swaptions are used to mitigate the adverse impact resulting from significant changes in the fair value of U.S. dollar-denominated available-for-sale securities due to fluctuation in interest rates. In a payer swaption, the Company pays a premium to obtain the right, but not the obligation, to enter into a swap contract where it will pay a fixed rate and receive a floating rate. Interest rate swaption collars are combinations of two swaption positions. In order to maximize the efficiency of the collars while minimizing cost, a collar strategy is used whereby the Company purchases a long payer swaption (the Company purchases an option that allows it to enter into a swap where the Company will pay the fixed rate and receive the floating rate of the swap) and sells a short receiver swaption (the Company sells an option that provides the counterparty with the right to enter into a swap where the Company will receive the fixed rate and pay the floating rate of the swap). The combination of purchasing the long payer swaption and selling the short receiver swaption results in no net premium being paid (i.e. a costless or zero-cost collar).

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Derivative Balance Sheet Classification

The table below summarizes the balance sheet classification of the Company's derivative fair value amounts, as well as the gross asset and liability fair value amounts. The fair value amounts presented do not include income accruals. Derivative assets are included in “Other Assets,” while derivative liabilities are included in “Other Liabilities” within the Company’s Consolidated Balance Sheets. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not reflective of exposure or credit risk.

		March 31, 2020									December 31, 2019
(In millions)				Asset Derivatives			Liability Derivatives						Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount			Fair Value			Fair Value			Notional Amount			Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps - VIE		$	75		$	0		$	11		$	75		$	0		$	8
Total cash flow hedges		75			0			11			75			0			8
Fair value hedges:
Foreign currency forwards		63			0			1			964			0			38
Foreign currency options		8,809			12			23			11,573			0			5
Interest rate swaptions		243			0			0			243			0			0
Total fair value hedges		9,115			12			24			12,780			0			43
Net investment hedge:
Foreign currency forwards		4,985			85			6			4,952			72			2
Foreign currency options		2,040			7			0			2,000			0			0
Total net investment hedge		7,025			92			6			6,952			72			2
Non-qualifying strategies:
Foreign currency swaps		2,250			66			38			2,800			72			78
Foreign currency swaps - VIE		2,587			89			224			2,587			169			118
Foreign currency forwards		20,614			184			420			19,821			166			337
Foreign currency options		9,248			8			0			9,553			0			0
Interest rate swaps		2,370			21			0			7,120			3			0
Interest rate swaptions		7			0			0			7			0			0
Total non-qualifying strategies		37,076			368			682			41,888			410			533
Total derivatives		$	53,291		$	472		$	723		$	61,695		$	482		$	586

Cash Flow Hedges

For certain variable-rate U.S. dollar-denominated available-for-sale securities held by Aflac Japan via consolidated VIEs, foreign currency swaps are used to swap the USD variable rate interest and principal payments to fixed rate JPY interest and principal payments. The Company has designated foreign currency swaps as a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset (“cash flow” hedge). The remaining maximum length of time for which these cash flows are hedged is approximately seven years. The derivatives in the Company's consolidated VIEs that are not designated as accounting hedges are discussed in the "non-qualifying strategies" section of this note.

Fair Value Hedges

The Company designates and accounts for certain foreign currency forwards, options, and interest rate swaptions as fair value hedges when they meet the requirements for hedge accounting. The Company recognizes gains and losses on these derivatives as well as the offsetting gain or loss on the related hedged items in current earnings.

Foreign currency forwards and options hedge the foreign currency exposure of certain U.S. dollar-denominated available-for-sale fixed-maturity investments held in Aflac Japan. The change in the fair value of the foreign currency forwards related to the changes in the difference between the spot rate and the forward price is excluded from the assessment of hedge effectiveness. The change in fair value of the foreign currency option related to the time value of the option is recognized in current earnings and is excluded from the assessment of hedge effectiveness.

Interest rate swaptions hedge the interest rate exposure of certain U.S. dollar-denominated available-for-sale securities held in Aflac Japan. For these hedging relationships, the Company excludes time value from the assessment of hedge effectiveness

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and recognizes changes in the intrinsic value of the swaptions in current earnings within net investment income. The change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into earnings (net investment income) over its legal term.

The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges.

Fair Value Hedging Relationships

(In millions)		Hedging Derivatives									Hedged Items
Hedging Derivatives	Hedged Items	Total Gains (Losses)			Gains (Losses) Excluded from Effectiveness Testing(1)			Gains (Losses) Included in Effectiveness Testing(2)			Gains (Losses)(2)			Net Investment Gains (Losses) Recognized for Fair Value Hedge
Three Months Ended March 31, 2020:
Foreign currency forwards	Fixed maturity securities	$	(16	)	$	(7	)	$	(9	)	$	10		$	1
Total gains (losses)		$	(16	)	$	(7	)	$	(9	)	$	10		$	1
Three Months Ended March 31, 2019:
Foreign currency forwards	Fixed maturity securities	$	9		$	(10	)	$	19		$	(18	)	$	1
Foreign currency options	Fixed maturity securities	(4		)	(4		)	0			0			0
Interest rate swaptions	Fixed maturity securities	(1		)	(1		)	0			0			0
Total gains (losses)		$	4		$	(15	)	$	19		$	(18	)	$	1

⁽¹⁾ Gains (losses) excluded from effectiveness testing includes the forward point on foreign currency forwards and time value change on foreign currency options which are reported in the consolidated statement of earnings as net investment gains (losses). It also includes the change in the fair value of the interest rate swaptions related to the time value of the swaptions which is recognized as a component of other comprehensive income (loss).

⁽²⁾ Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month periods ended March 31, 2020 and 2019, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial.

The following table shows the carrying amounts of assets designated and qualifying as hedged items in fair value hedges of interest rate risk and the related cumulative hedge adjustment included in the carrying amount.

(In millions)	Carrying Amount of the Hedged Assets/(Liabilities)(1)					Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
		March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Fixed maturity securities		$	4,469	$	4,633	$	249	$	256

⁽¹⁾ The balance includes hedging adjustment on discontinued hedging relationships of $249 in 2020 and $256 in 2019.

The total notional amount of the Company's interest rate swaptions was $243 in 2020 and $243 in 2019. The hedging adjustment related to these derivatives was immaterial.

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Net Investment Hedge

The Company's investment in Aflac Japan is affected by changes in the yen/dollar exchange rate. To mitigate this exposure, the Parent Company's yen-denominated liabilities (see Note 8) have been designated as non-derivative hedges. Beginning in July 2019, certain foreign currency forwards and options were designated as derivative hedges of the foreign currency exposure of the Company's net investment in Aflac Japan. Prior to April 1, 2018, foreign currency forwards and options were also designated as derivative hedges of the foreign currency exposure of the Company's net investment in Aflac Japan.

The Company's net investment hedge was effective during the three-month periods ended March 31, 2020 and 2019, respectively.

Non-qualifying Strategies

For the Company's derivative instruments in consolidated VIEs that do not qualify for hedge accounting treatment, all changes in their fair value are reported in current period earnings within net investment gains (losses). The amount of gain or loss recognized in earnings for the Company's VIEs is attributable to the derivatives in those investment structures. While the change in value of the swaps is recorded through current period earnings, the change in value of the available-for-sale fixed maturity securities associated with these swaps is recorded through other comprehensive income.

As of March 31, 2020, the Parent Company had $2.3 billion notional amount of cross-currency interest rate swap agreements related to certain of its U.S. dollar-denominated senior notes to effectively convert a portion of the interest on the notes from U.S dollar to Japanese yen. Changes in the values of these swaps are recorded through current period earnings. For additional information regarding these swaps, see Note 9 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

The Company uses foreign exchange forwards and options to economically mitigate the currency risk of some of its U.S. dollar-denominated loan receivables held within the Aflac Japan segment. These arrangements are not designated as accounting hedges, as the foreign currency remeasurement of the loan receivables impacts current period earnings, and generally offsets gains and losses from foreign exchange forwards within net investment gains (losses). The Company also has certain foreign exchange forwards on U.S. dollar-denominated available-for-sale securities where hedge accounting is not being applied.

Prior to July 2019, in order to economically mitigate currency risk of future yen dividends from Aflac Japan while lowering consolidated hedge costs associated with Aflac Japan's U.S. dollar investment hedging, the Parent Company entered into offsetting hedge positions using foreign exchange forwards. This activity is reported in the Corporate and other segment. As of July 1, 2019, the Parent Company designates these foreign exchange forward contracts as accounting hedges of its net investment in Aflac Japan.

The Company uses interest rate swaps to economically convert the variable rate investment income to a fixed rate on certain variable-rate investments.

29

Impact of Derivatives and Hedging Instruments

The following table summarizes the impact to net investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments.

	Three Months Ended March 31,
	2020														2019
(In millions)	Net Investment Income(1)				Net Investment Gains (Losses)						Other Comprehensive Income (Loss)(2)				Net Investment Income(1)				Net Investment Gains (Losses)						Other Comprehensive Income (Loss)(2)
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	(1	)		$	0					$	(4	)		$	(1	)		$	0					$	(2	)
Total cash flow hedges		(1		)		0			(3	)		(4		)		(1		)		0			(3	)		(2		)
Fair value hedges:
Foreign currency forwards(3)						(6		)												(9		)
Foreign currency options(3)						0														(4		)
Interest rate swaptions(3)		0				0						0				0				0						(1		)
Total fair value hedges		0				(6		)				0				0				(13		)				(1		)
Net investment hedge:
Non-derivative hedging          instruments						0						6								0						0
Foreign currency forwards						51						(25		)						0						0
Foreign currency options						6						0								0						0
Total net investment hedge						57						(19		)						0						0
Non-qualifying strategies:
Foreign currency swaps						50														44
Foreign currency swaps - VIE						(195		)												(16		)
Foreign currency forwards						(36		)												(21		)
Foreign currency options						(2		)												0
Interest rate swaps						47														6
Total non-qualifying strategies						(136		)												13
Total		$	(1	)		$	(85	)				$	(23	)		$	(1	)		$	0					$	(3	)

⁽¹⁾ Cash flow hedge items and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

⁽²⁾ Impact of cash flow hedges reported as net investment gains (losses) includes an immaterial amount of gains or losses reclassified from accumulated other comprehensive income (loss) into earnings. It also includes an immaterial amount excluded from effectiveness testing during the three-month periods ended March 31, 2020 and 2019, respectively.

⁽³⁾Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)

As of March 31, 2020, deferred gains and losses on derivative instruments recorded in accumulated other comprehensive income that are expected to be reclassified to earnings during the next twelve months were immaterial.

Credit Risk Assumed through Derivatives

For the foreign currency and credit default swaps associated with the Company's VIE investments for which it is the primary beneficiary, the Company bears the risk of loss due to counterparty default even though it is not a direct counterparty to those contracts.

The Company is a direct counterparty to the foreign currency swaps that it has entered into in connection with certain of its senior notes and subordinated debentures; foreign currency forwards; and foreign currency options, and therefore the Company is exposed to credit risk in the event of nonperformance by the counterparties in those contracts. The risk of counterparty default for the Company's foreign currency swaps, certain foreign currency forwards, and foreign currency options is mitigated by collateral posting requirements that counterparties to those transactions must meet.

As of March 31, 2020, all of the Company's derivative agreement counterparties were investment grade.

30

The Company engages in over-the-counter (OTC) bilateral derivative transactions directly with unaffiliated third parties under International Swaps and Derivatives Association, Inc. (ISDA) agreements and other documentation. Most of the ISDA agreements also include Credit Support Annexes (CSAs) provisions, which generally provide for two-way collateral postings at the first dollar of exposure. The Company mitigates the risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value while generally requiring that collateral be posted at the outset of the transaction. In addition, a significant portion of the derivative transactions have provisions that give the counterparty the right to terminate the transaction upon a downgrade of Aflac’s financial strength rating. The actual amount of payments that the Company could be required to make depends on market conditions, the fair value of outstanding affected transactions, and other factors prevailing at and after the time of the downgrade.

The Company also engages in OTC cleared derivative transactions through regulated central clearing counterparties. These positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to these derivatives.

Collateral posted by the Company to third parties for derivative transactions can generally be repledged or resold by the counterparties. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $348 million and $301 million as of March 31, 2020, and December 31, 2019, respectively. If the credit-risk-related contingent features underlying these agreements had been triggered on March 31, 2020, the Company estimates that it would be required to post a maximum of $171 million of additional collateral to these derivative counterparties. The Company is generally allowed to sell or repledge collateral obtained from its derivative counterparties, although it does not typically exercise such rights. (See the Offsetting tables below for collateral posted or received as of the reported balance sheet dates.)

Offsetting of Financial Instruments and Derivatives

Most of the Company's derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Parent Company or its subsidiaries and the respective counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements with the master netting arrangements generally provide that the Company will receive or pledge financial collateral at the first dollar of exposure.

The Company has securities lending agreements with unaffiliated financial institutions that post collateral to the Company in return for the use of its fixed maturity and public equity securities (see Note 3). When the Company has entered into securities lending agreements with the same counterparty, the agreements generally provide for net settlement in the event of default by the counterparty. This right of set-off allows the Company to keep and apply collateral received if the counterparty failed to return the securities borrowed from the Company as contractually agreed.

The tables below summarize the Company's derivatives and securities lending transactions, and as reflected in the tables, in accordance with U.S. GAAP, the Company's policy is to not offset these financial instruments in the Consolidated Balance Sheets.

31

Offsetting of Financial Assets and Derivative Assets

March 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Received				Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	362		$	0		$	362		$	(229	)	$	(7	)		$	(121	)		$	5
OTC - cleared		21			0			21			0			0				(11		)		10
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		383			0			383			(229		)	(7		)		(132		)		15
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		89						89														89
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		89						89														89
Total derivative       assets		472			0			472			(229		)	(7		)		(132		)		104
Securities lending    and similar    arrangements		2,952			0			2,952			0			0				(2,952		)		0
Total		$	3,424		$	0		$	3,424		$	(229	)	$	(7	)		$	(3,084	)		$	104

32

December 31, 2019
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Received				Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	310		$	0		$	310		$	(190	)	$	(7	)		$	(113	)		$	0
OTC - cleared		3			0			3			0			0				0				3
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		313			0			313			(190		)	(7		)		(113		)		3
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		169						169														169
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		169						169														169
Total derivative       assets		482			0			482			(190		)	(7		)		(113		)		172
Securities lending    and similar    arrangements		1,860			0			1,860			0			0				(1,860		)		0
Total		$	2,342		$	0		$	2,342		$	(190	)	$	(7	)		$	(1,973	)		$	172

33

Offsetting of Financial Liabilities and Derivative Liabilities

March 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Pledged				Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	488		$	0		$	488		$	(229	)	$	(175	)		$	(2	)		$	82
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		488			0			488			(229		)	(175		)		(2		)		82
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		235						235														235
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		235						235														235
Total derivative       liabilities		723			0			723			(229		)	(175		)		(2		)		317
Securities lending    and similar    arrangements		2,969			0			2,969			(2,952		)	0				0				17
Total		$	3,692		$	0		$	3,692		$	(3,181	)	$	(175	)		$	(2	)		$	334

34

December 31, 2019
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Pledged				Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	459		$	0		$	459		$	(190	)	$	(222	)		$	(32	)		$	15
OTC - cleared		1			0			1			0			0				(1		)		0
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		460			0			460			(190		)	(222		)		(33		)		15
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		126						126														126
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		126						126														126
Total derivative       liabilities		586			0			586			(190		)	(222		)		(33		)		141
Securities lending    and similar    arrangements		1,876			0			1,876			(1,860		)	0				0				16
Total		$	2,462		$	0		$	2,462		$	(2,050	)	$	(222	)		$	(33	)		$	157

For additional information on the Company's financial instruments, see the accompanying Notes 1, 3 and 5 and Notes 1, 3 and 5 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

5. FAIR VALUE MEASUREMENTS

Fair Value Hierarchy

U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. These two types of inputs create three valuation hierarchy levels. Level 1 valuations reflect quoted market prices for identical assets or liabilities in active markets. Level 2 valuations reflect quoted market prices for similar assets or liabilities in an active market, quoted market prices for identical or similar assets or liabilities in non-active markets or model-derived valuations in which all significant valuation inputs are observable in active markets. Level 3 valuations reflect valuations in which one or more of the significant inputs are not observable in an active market.

35

The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis.

	March 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	35,469		$	1,509		$	0		$	36,978
Municipalities		0			2,440			0			2,440
Mortgage- and asset-backed securities		0			309			188			497
Public utilities		0			8,894			298			9,192
Sovereign and supranational		0			1,609			0			1,609
Banks/financial institutions		0			10,355			23			10,378
Other corporate		0			34,949			245			35,194
Total fixed maturity securities		35,469			60,065			754			96,288
Equity securities		509			69			82			660
Other investments		892			0			0			892
Cash and cash equivalents		4,148			0			0			4,148
Other assets:
Foreign currency swaps		0			66			89			155
Foreign currency forwards		0			269			0			269
Foreign currency options		0			27			0			27
Interest rate swaps		0			21			0			21
Total other assets		0			383			89			472
Total assets		$	41,018		$	60,517		$	925		$	102,460
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	38		$	235		$	273
Foreign currency forwards		0			427			0			427
Foreign currency options		0			23			0			23
Total liabilities		$	0		$	488		$	235		$	723

36

	December 31, 2019
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	34,878		$	1,522		$	0		$	36,400
Municipalities		0			1,847			0			1,847
Mortgage- and asset-backed securities		0			232			178			410
Public utilities		0			6,556			224			6,780
Sovereign and supranational		0			1,042			0			1,042
Banks/financial institutions		0			10,264			23			10,287
Other corporate		0			34,234			262			34,496
Total fixed maturity securities		34,878			55,697			687			91,262
Equity securities		642			80			80			802
Other investments		628			0			0			628
Cash and cash equivalents		4,896			0			0			4,896
Other assets:
Foreign currency swaps		0			72			169			241
Foreign currency forwards		0			238			0			238
Interest rate swaps		0			3			0			3
Total other assets		0			313			169			482
Total assets		$	41,044		$	56,090		$	936		$	98,070
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	78		$	126		$	204
Foreign currency forwards		0			377			0			377
Foreign currency options		0			5			0			5
Total liabilities		$	0		$	460		$	126		$	586

37

The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value.

	March 31, 2020
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	22,384		$	27,842		$	352		$	0		$	28,194
Municipalities		362			0			484			0			484
Public utilities		45			0			59			0			59
Sovereign and supranational		464			0			578			0			578
Other corporate		23			0			32			0			32
Commercial mortgage and other loans		10,750			0			0			10,390			10,390
Other investments (1)		29			0			29			0			29
Total assets		$	34,057		$	27,842		$	1,534		$	10,390		$	39,766
Liabilities:
Other policyholders’ funds		$	7,422		$	0		$	0		$	7,338		$	7,338
Notes payable (excluding leases)		6,597			0			6,607			274			6,881
Total liabilities		$	14,019		$	0		$	6,607		$	7,612		$	14,219

⁽¹⁾ Excludes policy loans of $253 and equity method investments of $669, at carrying value

38

	December 31, 2019
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	22,241		$	27,937		$	354		$	0		$	28,291
Municipalities		821			0			1,083			0			1,083
Mortgage and asset-backed securities		16			0			7			10			17
Public utilities		2,535			0			2,954			0			2,954
Sovereign and supranational		1,123			0			1,320			0			1,320
Banks/financial institutions		916			0			1,018			0			1,018
Other corporate		2,433			0			2,911			0			2,911
Commercial mortgage and other loans		9,569			0			0			9,648			9,648
Other investments (1)		30			0			30			0			30
Total assets		$	39,684		$	27,937		$	9,677		$	9,658		$	47,272
Liabilities:
Other policyholders’ funds		$	7,317		$	0		$	0		$	7,234		$	7,234
Notes payable (excluding leases)		6,408			0			6,663			272			6,935
Total liabilities		$	13,725		$	0		$	6,663		$	7,506		$	14,169

⁽¹⁾ Excludes policy loans of $250 and equity method investments of $569, at carrying value

Fair Value of Financial Instruments

Fixed maturity and equity securities

The Company determines the fair values of fixed maturity securities and public and privately-issued equity securities using the following approaches or techniques: price quotes and valuations from third party pricing vendors (including quoted market prices readily available from public exchange markets) and non-binding price quotes the Company obtains from outside brokers.

A third party pricing vendor has developed valuation models to determine fair values of privately issued securities to reflect the impact of the persistent economic environment and the changing regulatory framework. These models are discounted cash flow (DCF) valuation models, but also use information from related markets, specifically the credit default swap (CDS) market to estimate expected cash flows. These models take into consideration any unique characteristics of the securities and make various adjustments to arrive at an appropriate issuer-specific loss adjusted credit curve. This credit curve is then used with the relevant recovery rates to estimate expected cash flows and modeling of additional features, including illiquidity adjustments, if necessary, to price the security by discounting those loss adjusted cash flows. In cases where a credit curve cannot be developed from the specific security features, the valuation methodology takes into consideration other market observable inputs, including:

1) the most appropriate comparable security(ies) of the issuer

2) issuer-specific CDS spreads

3) bonds or CDS spreads of comparable issuers with similar characteristics such as rating, geography, or sector

4) bond indices that are comparative in rating, industry, maturity and region.

39

The pricing data and market quotes the Company obtains from outside sources, including third party pricing services, are reviewed internally for reasonableness. If a fair value appears unreasonable, the Company will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, the Company may compare the inputs to relevant market indices and other performance measurements. Based on management's analysis, the valuation is confirmed or may be revised if there is evidence of a more appropriate estimate of fair value based on available market data. The Company has performed verification of the inputs and calculations in any valuation models to confirm that the valuations represent reasonable estimates of fair value.

For the periods presented, the Company has not adjusted the quotes or prices it obtains from the pricing services and brokers it uses.

The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities.

	March 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	35,469		$	1,509		$	0		$	36,978
Total government and agencies		35,469			1,509			0			36,978
Municipalities:
Third party pricing vendor		0			2,440			0			2,440
Total municipalities		0			2,440			0			2,440
Mortgage- and asset-backed securities:
Third party pricing vendor		0			309			0			309
Broker/other		0			0			188			188
Total mortgage- and asset-backed securities		0			309			188			497
Public utilities:
Third party pricing vendor		0			8,894			0			8,894
Broker/other		0			0			298			298
Total public utilities		0			8,894			298			9,192
Sovereign and supranational:
Third party pricing vendor		0			1,609			0			1,609
Total sovereign and supranational		0			1,609			0			1,609
Banks/financial institutions:
Third party pricing vendor		0			10,355			0			10,355
Broker/other		0			0			23			23
Total banks/financial institutions		0			10,355			23			10,378
Other corporate:
Third party pricing vendor		0			34,949			0			34,949
Broker/other		0			0			245			245
Total other corporate		0			34,949			245			35,194
Total securities available for sale		$	35,469		$	60,065		$	754		$	96,288
Equity securities, carried at fair value:
Third party pricing vendor		$	509		$	69		$	0		$	578
Broker/other		0			0			82			82
Total equity securities		$	509		$	69		$	82		$	660

40

	March 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	27,842		$	352		$	0		$	28,194
Total government and agencies		27,842			352			0			28,194
Municipalities:
Third party pricing vendor		0			484			0			484
Total municipalities		0			484			0			484
Public utilities:
Third party pricing vendor		0			59			0			59
Total public utilities		0			59			0			59
Sovereign and supranational:
Third party pricing vendor		0			578			0			578
Total sovereign and supranational		0			578			0			578
Other corporate:
Third party pricing vendor		0			32			0			32
Total other corporate		0			32			0			32
Total securities held to maturity		$	27,842		$	1,505		$	0		$	29,347

41

	December 31, 2019
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	34,878		$	1,522		$	0		$	36,400
Total government and agencies		34,878			1,522			0			36,400
Municipalities:
Third party pricing vendor		0			1,847			0			1,847
Total municipalities		0			1,847			0			1,847
Mortgage- and asset-backed securities:
Third party pricing vendor		0			232			0			232
Broker/other		0			0			178			178
Total mortgage- and asset-backed securities		0			232			178			410
Public utilities:
Third party pricing vendor		0			6,556			0			6,556
Broker/other		0			0			224			224
Total public utilities		0			6,556			224			6,780
Sovereign and supranational:
Third party pricing vendor		0			1,042			0			1,042
Total sovereign and supranational		0			1,042			0			1,042
Banks/financial institutions:
Third party pricing vendor		0			10,264			0			10,264
Broker/other		0			0			23			23
Total banks/financial institutions		0			10,264			23			10,287
Other corporate:
Third party pricing vendor		0			34,234			0			34,234
Broker/other		0			0			262			262
Total other corporate		0			34,234			262			34,496
Total securities available for sale		$	34,878		$	55,697		$	687		$	91,262
Equity securities, carried at fair value:
Third party pricing vendor		$	642		$	80		$	0		$	722
Broker/other		0			0			80			80
Total equity securities		$	642		$	80		$	80		$	802

42

	December 31, 2019
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	27,937		$	354		$	0		$	28,291
Total government and agencies		27,937			354			0			28,291
Municipalities:
Third party pricing vendor		0			1,083			0			1,083
Total municipalities		0			1,083			0			1,083
Mortgage- and asset-backed securities:
Third party pricing vendor		0			7			0			7
Broker/other		0			0			10			10
Total mortgage- and asset-backed securities		0			7			10			17
Public utilities:
Third party pricing vendor		0			2,954			0			2,954
Total public utilities		0			2,954			0			2,954
Sovereign and supranational:
Third party pricing vendor		0			1,320			0			1,320
Total sovereign and supranational		0			1,320			0			1,320
Banks/financial institutions:
Third party pricing vendor		0			1,018			0			1,018
Total banks/financial institutions		0			1,018			0			1,018
Other corporate:
Third party pricing vendor		0			2,911			0			2,911
Total other corporate		0			2,911			0			2,911
Total securities held to maturity		$	27,937		$	9,647		$	10		$	37,594

The following is a discussion of the determination of fair value of the Company's remaining financial instruments.

Derivatives

The Company uses derivative instruments to manage the risk associated with certain assets. However, the derivative instrument may not be classified in the same fair value hierarchy level as the associated asset. Inputs used to value derivatives include, but are not limited to, interest rates, credit spreads, foreign currency forward and spot rates, and interest volatility. The significant inputs to pricing derivatives are generally observable in the market or can be derived by observable market data. When these inputs are observable, the derivatives are classified as Level 2.

The fair value of foreign currency forward and options are based on observable market inputs, therefore they are classified as Level 2.

To determine the fair value of its interest rate derivatives, the Company uses inputs that are generally observable in the market or can be derived from observable market data. Interest rate swaps are cleared trades. In a cleared swap contract, the clearinghouse provides benefits to the counterparties similar to contracts listed for investment traded on an exchange since it maintains a daily margin to mitigate counterparties' credit risk. These derivatives are priced using observable inputs, accordingly, they are classified as Level 2. For its interest rate swaptions, the Company estimates their fair values using observable market data, including interest rate curves and volatilities. Their fair values are also classified as Level 2.

43

For derivatives associated with VIEs where the Company is the primary beneficiary, the Company is not the direct counterparty to the swap contracts. As a result, the fair value measurements incorporate the credit risk of the collateral associated with the VIE. Based on an analysis of these derivatives and a review of the methodology employed by the pricing vendor, the Company determined that due to the long duration of these swaps and the need to extrapolate from short-term observable data to derive and measure long-term inputs, certain inputs, assumptions and judgments are required to value future cash flows that cannot be corroborated by current inputs or current observable market data. As a result, the derivatives associated with the Company's consolidated VIEs are classified as Level 3 of the fair value hierarchy.

Commercial mortgage and other loans

Commercial mortgage and other loans include transitional real estate loans, commercial mortgage loans and middle market loans. The Company's loan receivables do not have readily determinable market prices and generally lack market liquidity. Fair values for loan receivables are determined based on the present value of expected future cash flows discounted at the applicable U.S. Treasury or London Interbank Offered Rate (LIBOR) yield plus an appropriate spread that considers other risk factors, such as credit and liquidity risk. The spreads are a significant component of the pricing inputs and are generally considered unobservable. Therefore, these investments have been assigned a Level 3 within the fair value hierarchy.

Other investments

Other investments includes short-term investments that are measured at fair value where amortized cost approximates fair value.

Other policyholders' funds

The largest component of the other policyholders' funds liability is the Company's annuity line of business in Aflac Japan. The Company's annuities have fixed benefits and premiums. For this product, the Company estimates the fair value to be equal to the cash surrender value. This is analogous to the value paid to policyholders on the valuation date if they were to surrender their policy. The Company periodically checks the cash value against discounted cash flow projections for reasonableness. The Company considers its inputs for this valuation to be unobservable and have accordingly classified this valuation as Level 3.

Notes payable

The fair values of the Company's publicly issued notes payable are determined by utilizing available sources of observable inputs from third party pricing vendors and are classified as Level 2. The fair values of the Company's yen-denominated loans approximate their carrying values and are classified as Level 3.

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Transfers between Hierarchy Levels and Level 3 Rollforward

The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3.

Three Months Ended March 31, 2020
	Fixed Maturity Securities											Equity Securities		Derivatives (1)
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities			Banks/ Financial Institutions		Other Corporate					Foreign Currency Swaps			Credit Default Swaps		Total
Balance, beginning of period	$	178		$	224		$	23	$	262		$	80	$	43		$	0	$	810
Net investment gains (losses) included in earnings	0			0			0		0			0		(185		)	0		(185		)
Unrealized gains (losses) included in other comprehensive income (loss)	1			(8		)	0		(17		)	0		(4		)	0		(28		)
Purchases, issuances, sales and settlements:
Purchases	0			83			0		0			2		0			0		85
Issuances	0			0			0		0			0		0			0		0
Sales	0			0			0		0			0		0			0		0
Settlements	0			(1		)	0		0			0		0			0		(1		)
Transfers into Level 3	9		(2)	0			0		0			0		0			0		9
Transfers out of Level 3	0			0			0		0			0		0			0		0
Balance, end of period	$	188		$	298		$	23	$	245		$	82	$	(146	)	$	0	$	690
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0		$	0		$	0	$	0		$	0	$	(185	)	$	0	$	(185	)

⁽¹⁾ Derivative assets and liabilities are presented net

⁽²⁾ Transfer due to reclassification of level 3 securities from HTM to AFS

Three Months Ended March 31, 2019
	Fixed Maturity Securities												Equity Securities		Derivatives (1)
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities				Banks/ Financial Institutions		Other Corporate						Foreign Currency Swaps			Credit Default Swaps		Total
Balance, beginning of period	$	177	$	109			$	23	$	213			$	46	$	80		$	0	$	648
Net investment gains (losses) included    in earnings	0		0				0		0				0		(8		)	0		(8		)
Unrealized gains (losses) included in other    comprehensive income (loss)	1		1				0		1				0		(2		)	0		1
Purchases, issuances, sales and settlements:
Purchases	0		0				0		63				0		0			0		63
Issuances	0		0				0		0				0		0			0		0
Sales	0		0				0		(2		)		0		0			0		(2		)
Settlements	0		0				0		0				0		0			0		0
Transfers into Level 3	0		0				0		25			(2)	0		0			0		25
Transfers out of Level 3	0		(25		)	(2)	0		(16		)	(3)	0		0			0		(41		)
Balance, end of period	$	178	$	85			$	23	$	284			$	46	$	70		$	0	$	686
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	0			$	0	$	0			$	0	$	(8	)	$	0	$	(8	)

⁽¹⁾ Derivative assets and liabilities are presented net

⁽²⁾ Transfer due to sector classification change

⁽³⁾ Transfer due to availability of observable market inputs

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Fair Value Sensitivity

Level 3 Significant Unobservable Input Sensitivity

The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments and derivatives carried at fair value. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

March 31, 2020
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	188	Consensus pricing	Offered quotes	N/A	(a)
Public utilities		298		Discounted cash flow	Credit spreads	N/A	(a)
Banks/financial institutions		23		Consensus pricing	Offered quotes	N/A	(a)
Other corporate		245		Discounted cash flow	Credit spreads	N/A	(a)
Equity securities		82		Net asset value	Offered quotes	N/A	(a)
Other assets:
Foreign currency swaps		15		Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
					CDS spreads	31 - 173 bps
		74		Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
Total assets		$	925
Liabilities:
Other liabilities:
Foreign currency swaps		$	224	Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
					CDS spreads	31 - 173 bps
		11		Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
Total liabilities		$	235

(a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

(b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps

(c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps

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December 31, 2019
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	178	Consensus pricing	Offered quotes	N/A	(a)
Public utilities		224		Discounted cash flow	Credit spreads	N/A	(a)
Banks/financial institutions		23		Consensus pricing	Offered quotes	N/A	(a)
Other corporate		262		Discounted cash flow	Credit spreads	N/A	(a)
Equity securities		80		Net asset value	Offered quotes	N/A	(a)
Other assets:
Foreign currency swaps		106		Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
					CDS spreads	10 - 100 bps
		63		Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
Total assets		$	936
Liabilities:
Other liabilities:
Foreign currency swaps		$	118	Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
					CDS spreads	13 - 159 bps
		8		Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
Total liabilities		$	126

(a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

(b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps

(c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps

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The following is a discussion of the significant unobservable inputs or valuation techniques used in determining the fair value of securities and derivatives classified as Level 3.

Net Asset Value

The Company holds certain unlisted equity securities whose fair value is derived based on the financial statements published by the investee. These securities do not trade on an active market and the valuations derived are dependent on the availability of timely financial reporting of the investee. Net asset value is an unobservable input in the determination of fair value of equity securities.

Offered Quotes

In circumstances where the Company's valuation model price is overridden because it implies a value that is not consistent with current market conditions, the Company will solicit bids from a limited number of brokers. The Company also receives unadjusted prices from brokers for its mortgage and asset-backed securities. These quotes are non-binding but are reflective of valuation best estimates at that particular point in time. Offered quotes are an unobservable input in the determination of fair value of mortgage- and asset-backed securities, certain banks/financial institutions, certain other corporate, and equity securities investments.

Interest Rates and CDS Spreads

The significant drivers of the valuation of the foreign exchange swaps are interest rates and CDS spreads. Some of the Company's swaps have long maturities that increase the sensitivity of the swaps to interest rate fluctuations. For the Company's foreign exchange or cross currency swaps that are in a net asset position, an increase in yen interest rates (all other factors held constant) will decrease the present value of the yen final settlement receivable (receive leg), thus decreasing the value of the swap as long as the derivative remains in a net asset position.

Foreign exchange swaps also have a lump-sum final settlement of foreign exchange principal amounts at the termination of the swap. Assuming all other factors are held constant, an increase in yen interest rates will decrease the receive leg and decrease the net value of the swap. Likewise, holding all other factors constant, an increase in U.S. dollar interest rates will increase the swap's net value due to the decrease in the present value of the dollar final settlement payable (pay leg).

The extinguisher feature in most of the Company's VIE swaps results in a cessation of cash flows and no further payments between the parties to the swap in the event of a default on the referenced or underlying collateral. To price this feature, the Company applies the survival probability of the referenced entity to the projected cash flows. The survival probability uses the CDS spreads and recovery rates to adjust the present value of the cash flows. For extinguisher swaps with positive values, an increase in CDS spreads decreases the likelihood of receiving the final exchange payments and reduces the value of the swap.

For additional information on the Company's investments and financial instruments, see the accompanying Notes 1, 3 and 4 and Notes 1, 3 and 4 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

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6. POLICY LIABILITIES

Changes in the liability for unpaid policy claims were as follows:

	Three Months Ended March 31,
(In millions)		2020			2019
Unpaid supplemental health claims, beginning of period		$	3,968		$	3,952
Less reinsurance recoverables		31			29
Net balance, beginning of period		3,937			3,923
Add claims incurred during the period related to:
Current year		1,837			1,825
Prior years		(136		)	(167		)
Total incurred		1,701			1,658
Less claims paid during the period on claims incurred during:
Current year		556			506
Prior years		1,144			1,137
Total paid		1,700			1,643
Effect of foreign exchange rate changes on unpaid claims		12			0
Net balance, end of period		3,950			3,938
Add reinsurance recoverables		33			29
Unpaid supplemental health claims, end of period		3,983			3,967
Unpaid life claims, end of period		710			658
Total liability for unpaid policy claims		$	4,693		$	4,625

The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates. The favorable claims development of $136 million for the three-month period ended March 31, 2020 comprises approximately $91 million from Japan, which represents approximately 67% of the total. Excluding the impact of foreign exchange of a gain of approximately $1 million from December 31, 2019 to March 31, 2020, the favorable claims development in Japan would have been approximately $90 million, representing approximately 66% of the total.

The Company has experienced continued favorable claim trends in 2020 for its core health products in Japan. The Company's experience in Japan related to the average length of stay in the hospital for cancer treatment has shown continued decline in the current period. In addition, cancer treatment patterns in Japan are continuing to be influenced by significant advances in early-detection techniques and by the increased use of pathological diagnosis rather than clinical exams. Additionally, follow-up radiation and chemotherapy treatments are occurring more often on an outpatient basis. Such changes in treatment not only increase the quality of life and initial outcomes for the patients, but also decrease the average length of each hospital stay, resulting in favorable claims development.

The remainder of the favorable claims development related to prior years for the three-month period ended March 31, 2020, reflects Aflac U.S. favorable claims experience compared to previous estimates, primarily in the cancer and accident lines of business.

7. REINSURANCE

The Company periodically enters into fixed quota-share coinsurance agreements with other companies in the normal course of business. For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and benefits are reported net of insurance ceded.

The Company has recorded a deferred profit liability related to reinsurance transactions. The remaining deferred profit liability of $1.0 billion as of both March 31, 2020 and December 31, 2019, respectively, is included in future policy benefits in the consolidated balance sheet and is being amortized into income over the expected lives of the policies. The Company has also recorded a reinsurance recoverable for reinsurance transactions, which is included in other assets in the consolidated balance sheet and had a remaining balance of $976 million and $970 million as of March 31, 2020 and December 31, 2019,

49

respectively. The increase in the reinsurance recoverable balance was driven by the growth in reserves related to the business that has been reinsured as the policies age. The spot yen/dollar exchange rate strengthened by approximately .7% and ceded reserves increased approximately 2.3% from December 31, 2019 to March 31, 2020.

The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance.

	Three Months Ended March 31,
(In millions)	2020				2019
Direct premium income		$	4,772			$	4,776
Ceded to other companies:
Ceded Aflac Japan closed blocks		(116		)		(121		)
Other		(24		)		(15		)
Assumed from other companies:
Retrocession activities		49				50
Other		0				1
Net premium income		$	4,681			$	4,691
Direct benefits and claims		$	3,028			$	3,041
Ceded benefits and change in reserves for future benefits:
Ceded Aflac Japan closed blocks		(105		)		(111		)
Eliminations		10				10
Other		(25		)		(11		)
Assumed from other companies:
Retrocession activities		41				48
Eliminations		(10		)		(10		)
Other		0				0
Benefits and claims, net		$	2,939			$	2,967

These reinsurance transactions are indemnity reinsurance that do not relieve the Company from its obligations to policyholders. In the event that the reinsurer is unable to meet their obligations, the Company remains liable for the reinsured claims.

As a part of its capital contingency plan, the Company entered into a committed reinsurance facility agreement on December 1, 2015 in the amount of approximately ¥110 billion of reserves. This reinsurance facility agreement was renewed in 2019 and is effective until December 31, 2020. There are also additional commitment periods of a one-year duration, each of which are automatically extended unless notification is received from the reinsurer within 60 days prior to the expiration. The reinsurer can withdraw from the committed facility if Aflac‘s Standard and Poor's (S&P) rating drops below BBB-. As of March 31, 2020, the Company has not executed a reinsurance treaty under this committed reinsurance facility.

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8. NOTES PAYABLE AND LEASE OBLIGATIONS

A summary of notes payable and lease obligations follows:

(In millions)	March 31, 2020			December 31, 2019
4.00% senior notes paid January 2020		$	0		$	348
3.625% senior notes due June 2023		698			698
3.625% senior notes due November 2024		747			747
3.25% senior notes due March 2025		448			448
2.875% senior notes due October 2026		298			298
6.90% senior notes due December 2039		220			220
6.45% senior notes due August 2040		254			254
4.00% senior notes due October 2046		393			394
4.750% senior notes due January 2049		541			541
Yen-denominated senior notes and subordinated debentures:
.300% senior notes due September 2025 (principal amount ¥ 12.4 billion)		113			0
.932% senior notes due January 2027 (principal amount ¥60.0 billion)		549			545
.500% senior notes due December 2029 (principal amount ¥12.6 billion)		115			114
.550% senior notes due March 2030 (principal ¥ 13.3 billion)		121			0
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)		268			266
.843% senior notes due December 2031 (principal amount ¥9.3 billion)		85			84
.750% senior notes due March 2032 (principal amount ¥20.7 billion)		189			0
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)		139			138
.934% senior notes due December 2034 (principal amount ¥9.8 billion)		89			88
.830% senior notes due March 2035 (principal amount ¥10.6 billion)		97			0
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)		81			81
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)		57			57
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)		547			543
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion)		274			272
Yen-denominated loans:
Variable interest rate loan due September 2026 (.42% in 2020 and 2019, principal amount ¥5.0 billion)		46			45
Variable interest rate loan due September 2029 (.57% in 2020 and 2019, principal amount ¥25.0 billion)		228			227
Finance lease obligations payable through 2026		12			12
Operating lease obligations payable through 2028		149			149
Total notes payable and lease obligations		$	6,758		$	6,569

Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes.

In March 2020, the Parent Company issued four series of senior notes totaling ¥57.0 billion through a public debt offering under its U.S. shelf registration statement. The first series, which totaled ¥12.4 billion, bears interest at a fixed rate of .300% per annum, payable semi­annually and will mature in September 2025. The second series, which totaled ¥13.3 billion, bears interest at a fixed rate of .550% per annum, payable semi-annually, and will mature in March 2030. The third series, which totaled ¥20.7 billion, bears interest at a fixed rate of .750% per annum, payable semi­annually and will mature in March 2032. The fourth series, which totaled ¥10.6 billion, bears interest at a fixed rate of .830% per annum, payable semi-annually, and will mature in March 2035. These notes may only be redeemed before maturity, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance.

In January 2020, the Parent Company used the net proceeds from senior notes issued in December 2019 to redeem $350 million of its 4.00% fixed-rate senior notes due February 2022.

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A summary of the Company's lines of credit as of March 31, 2020 follows:

Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
Aflac Incorporated and Aflac	uncommitted bilateral	364 days	December 18, 2020	$100 million	$0 million	The rate quoted by the bank and agreed upon at the time of borrowing	Up to 3 months	None	General corporate purposes
Aflac Incorporated	unsecured revolving	5 years	March 29, 2024, or the date commitments are terminated pursuant to an event of default	¥100.0 billion	¥0.0 billion	A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period	No later than March 29, 2024	.30% to .50%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	unsecured revolving	5 years	November 18, 2024, or the date commitments are terminated pursuant to an event of default	$1.0 billion	$0.0 billion	A rate per annum equal to, at the Company's option, either, (a) LIBOR adjusted for certain costs or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin	No later than November 18, 2024	.085% to .225%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	uncommitted bilateral	None specified	None specified	$50 million	$0 million	A rate per annum equal to, at the Parent Company's option, either (a) a eurocurrency rate determined by reference to the agent's LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the greater of (i) the prime rate as determined by the agent, and (ii) the sum of 0.50% and the federal funds rate for such day	Up to 3 months	None	General corporate purposes
Aflac(1)	uncommitted revolving	364 days	November 30, 2020	$250 million	$82 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	April 2, 2020(2)	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	November 25, 2020	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac New York(1)	uncommitted revolving	364 days	March 20, 2021	$25 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
CAIC(1)	uncommitted revolving	364 days	March 20, 2021	$15 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
Tier One Insurance Company(1)	uncommitted revolving	364 days	March 20, 2021	$.3 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes

⁽¹⁾ Intercompany credit agreement

⁽²⁾ Renewed in April 2020 with an expiration date of April 2, 2021

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The Company was in compliance with all of the covenants of its notes payable and lines of credit at March 31, 2020. No events of default or defaults occurred during the three-month period ended March 31, 2020.

For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

9. INCOME TAXES

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law and includes certain income tax provisions relevant to businesses. The Company is required to recognize the effect on the consolidated financial statements in the period the law was enacted, which is the period ended March 31, 2020. For the period ended March 31, 2020, the CARES Act did not have a material impact on the Company’s consolidated financial statements. At this time, the Company does not expect the impact of the CARES Act to have a material impact on the Company’s consolidated financial statements for the year ended December 31, 2020.

The Company’s combined U.S. and Japanese effective income tax rate on pretax earnings was 21.4% for the three-month period ended March 31, 2020, compared with 25.3% for the same period in 2019. This combined effective tax rate differs from the U.S. statutory rate primarily due to foreign earnings taxed at different rates. The primary driver for the reduced income tax rate in the current period is the pretax investment losses in Japan, which provide a 28% income tax benefit.

10. SHAREHOLDERS’ EQUITY

The following table is a reconciliation of the number of shares of the Company's common stock for the three-month periods ended March 31.

(In thousands of shares)	2020		2019
Common stock - issued:
Balance, beginning of period	1,349,309		1,347,540
Exercise of stock options and issuance of restricted shares	1,341		1,060
Balance, end of period	1,350,650		1,348,600
Treasury stock:
Balance, beginning of period	622,516		592,254
Purchases of treasury stock:
Share repurchase program	9,984		10,237
Other	508		561
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(468	)	(430	)
Exercise of stock options	(45	)	(231	)
Other	(227	)	(278	)
Balance, end of period	632,268		602,113
Shares outstanding, end of period	718,382		746,487

Outstanding share-based awards are excluded from the calculation of weighted-average shares used in the computation of basic earnings per share (EPS). The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share for the following periods.

	Three Months Ended March 31,
(In thousands)	2020		2019
Anti-dilutive share-based awards		744		22

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Share Repurchase Program

During the first three months of 2020, the Company repurchased 10.0 million shares of its common stock for $449 million as part of its share repurchase program. During the first three months of 2019, the Company repurchased 10.2 million shares of its common stock for $490 million as part of its share repurchase program. As of March 31, 2020, a remaining balance of 27.1 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its board of directors.

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Reclassifications from Accumulated Other Comprehensive Income

The tables below are reconciliations of accumulated other comprehensive income by component for the following periods.

Changes in Accumulated Other Comprehensive Income

Three Months Ended March 31, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)				Unrealized Gains (Losses) on Investment Securities				Unrealized Gains (Losses) on Derivatives				Pension Liability Adjustment				Total
Balance at December 31, 2019		$	(1,623	)		$	8,548			$	(33	)		$	(277	)		$	6,615
Cumulative effect of change in accounting principle - ASU 2019-04		0				848				0				0				848
Balance at January 1, 2020		$	(1,623	)		$	9,396			$	(33	)		$	(277	)		$	7,463
Other comprehensive income (loss) before reclassification		80				(3,359		)		(2		)		(6		)		(3,287		)
Amounts reclassified from accumulated other comprehensive income (loss)		0				6				0				6				12
Net current-period other comprehensive income (loss)		80				(3,353		)		(2		)		0				(3,275		)
Balance at March 31, 2020		$	(1,543	)		$	6,043			$	(35	)		$	(277	)		$	4,188

All amounts in the table above are net of tax.

Three Months Ended March 31, 2019
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)				Unrealized Gains (Losses) on Investment Securities				Unrealized Gains (Losses) on Derivatives				Pension Liability Adjustment				Total
Balance at December 31, 2018		$	(1,847	)		$	4,234			$	(24	)		$	(212	)		$	2,151
Other comprehensive income (loss) before reclassification		(1		)		2,340				(2		)		3				2,340
Amounts reclassified from accumulated other comprehensive income (loss)		0				(13		)		0				3				(10		)
Net current-period other comprehensive income (loss)		(1		)		2,327				(2		)		6				2,330
Balance at March 31, 2019		$	(1,848	)		$	6,561			$	(26	)		$	(206	)		$	4,481

All amounts in the table above are net of tax.

The tables below summarize the amounts reclassified from each component of accumulated other comprehensive income into net earnings for the following periods.

55

Reclassifications Out of Accumulated Other Comprehensive Income

(In millions)	Three Months Ended March 31, 2020
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale securities		$	(7	)	Net investment gains (losses)
		1			Tax (expense) or benefit(1)
		$	(6	)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(8	)	Acquisition and operating expenses(2)
Prior service (cost) credit		0			Acquisition and operating expenses(2)
		2			Tax (expense) or benefit(1)
		$	(6	)	Net of tax
Total reclassifications for the period		$	(12	)	Net of tax

⁽¹⁾ Based on 21% blended tax rate

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details).

(In millions)	Three Months Ended March 31, 2019
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale securities		$	17		Net investment gains (losses)
		(4		)	Tax (expense) or benefit(1)
		$	13		Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(4	)	Acquisition and operating expenses(2)
Prior service (cost) credit		0			Acquisition and operating expenses(2)
		1			Tax (expense) or benefit(1)
		$	(3	)	Net of tax
Total reclassifications for the period		$	10		Net of tax

⁽¹⁾ Based on 25% blended tax rate

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details).

11.    SHARE-BASED COMPENSATION

As of March 31, 2020, the Company has outstanding share-based awards under the Aflac Incorporated Long-Term Incentive Plan (the Plan). Share-based awards are designed to reward employees for their long-term contributions to the Company and provide incentives for them to remain with the Company. The number and frequency of share-based awards are based on competitive practices, operating results of the Company, government regulations, and other factors.

The Plan, as amended on February 14, 2017, allows for a maximum number of shares issuable over its term of 75 million shares including 38 million shares that may be awarded in respect of awards other than options or stock appreciation rights. If any awards granted under the Plan are forfeited or are terminated before being exercised or settled for any reason other than tax forfeiture, then the shares underlying the awards will again be available under the Plan.

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The Plan allows awards to Company employees for incentive stock options (ISOs), non-qualifying stock options (NQSOs), restricted stock, restricted stock units, and stock appreciation rights. Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights. As of March 31, 2020, approximately 38.0 million shares were available for future grants under this plan. The ISOs and NQSOs have a term of 10 years, and the share-based awards generally vest upon time-based conditions or time and performance-based conditions. Time-based vesting generally occurs after three years. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. As of March 31, 2020, the only performance-based awards issued and outstanding were restricted stock awards and units.

Stock options and stock appreciation rights granted under the amended Plan have an exercise price of at least the fair market value of the underlying stock on the grant date and have an expiration date no later than 10 years from the grant date. Time-based restricted stock awards, restricted stock units and stock options granted after January 1, 2017 generally vest on a ratable basis over three years, and awards granted prior to the amendment vest on a three years cliff basis. The Compensation Committee of the Board of Directors has the discretion to determine vesting schedules.

Share-based awards granted to U.S.-based grantees are settled with authorized but unissued Company stock, while those issued to Japan-based grantees are settled with treasury shares.

The following table provides information on stock options outstanding and exercisable at March 31, 2020.

	Stock Option Shares (in thousands)		Weighted-Average Remaining Term (in years)		Aggregate Intrinsic Value (in millions)			Weighted-Average Exercise Price Per Share
Outstanding		3,354		4.4		$	16		$	29.98
Exercisable		3,353		4.4		16			29.97

The Company received cash from the exercise of stock options in the amount of $6 million during the first three months of 2020, compared with $17 million in the first three months of 2019. The tax benefit realized as a result of stock option exercises and restricted stock releases was $17 million in the first three months of 2020, compared with $22 million in the first three months of 2019.

As of March 31, 2020, total compensation cost not yet recognized in the Company's financial statements related to restricted stock awards was $72 million, of which $35 million (1.7 million shares) was related to restricted stock awards with a performance-based vesting condition. The Company expects to recognize these amounts over a weighted-average period of approximately 2.5 years. There are no other contractual terms covering restricted stock awards once vested.

The following table summarizes restricted stock activity during the three-month period ended March 31, 2020.

(In thousands of shares)	Shares		Weighted-Average Grant-Date Fair Value Per Share
Restricted stock at December 31, 2019	2,573			$	44.66
Granted in 2020	1,376			46.66
Canceled in 2020	(25	)		46.52
Vested in 2020	(1,358	)		38.48
Restricted stock at March 31, 2020	2,566			$	48.97

In February 2020, the Company granted 409 thousand performance-based stock awards, which are contingent on the achievement of the Company's financial performance metrics and its market-based conditions. On the date of grant, the Company estimated the fair value of restricted stock awards with market-based conditions using a Monte Carlo simulation model. The model discounts the value of the stock at the assumed vesting date based on the risk-free interest rate. Based on estimates of actual performance versus the vesting thresholds, the calculated fair value percentage pay-out estimate will be updated each quarter.

The Company uses third-party analyses to assist in developing the assumptions used in, as well as calibrating, a Monte Carlo simulation model. The Company is responsible for determining the assumptions used in estimating the fair value of its share-based payment awards.

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For additional information on the Company's long-term share-based compensation plans and the types of share-based awards, see Note 12 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report.

12. BENEFIT PLANS

The Company has funded defined benefit plans in Japan and the U.S., however the U.S. plan was frozen to new participants effective October 1, 2013. The Company also maintains non-qualified, unfunded supplemental retirement plans that provide defined pension benefits in excess of limits imposed by federal tax law for certain Japanese, U.S. and former employees, however the U.S. plan was frozen to new participants effective January 1, 2015. U.S. employees who are not participants in the defined benefit plan receive a nonelective 401(k) employer contribution.

The Company provides certain health care benefits for eligible U.S. retired employees, their beneficiaries and covered dependents (other postretirement benefits). The health care plan is contributory and unfunded. Effective January 1, 2014, employees eligible for benefits included the following: (1) active employees whose age plus service, in years, equaled or exceeded 80 (rule of 80); (2) active employees who were age 55 or older and have met the 15 years of service requirement; (3) active employees who would meet the rule of 80 in the next 5 years; (4) active employees who were age 55 or older and who would meet the 15 years of service requirement within the next 5 years; and (5) current retirees. For certain employees and former employees, additional coverage is provided for all medical expenses for life.

Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statement of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) of $6 million and $5 million for the three-month periods ended March 31, 2020 and 2019, respectively. Total net periodic cost includes the following components:

	Three Months Ended March 31,
	Pension Benefits																Other
	Japan								U.S.								Postretirement Benefits
(In millions)	2020				2019				2020				2019				2020			2019
Components of net periodic benefit cost:
Service cost		$	6			$	5			$	7			$	6			$	0		$	0
Interest cost		1				1				8				9				0			0
Expected return on plan assets		(2		)		(2		)		(9		)		(7		)		0			0
Amortization of net actuarial loss		1				1				6				3				1			0
Net periodic (benefit) cost		$	6			$	5			$	12			$	11			$	1		$	0

During the three months ended March 31, 2020, Aflac Japan contributed approximately $9 million (using the weighted-average yen/dollar exchange rate for the three-month period ending March 31, 2020) to the Japanese funded defined benefit plan, and Aflac U.S. did not make a contribution to the U.S. funded defined benefit plan.

For additional information regarding the Company's Japanese and U.S. benefit plans, see Note 14 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

13. COMMITMENTS AND CONTINGENT LIABILITIES

The Company is a defendant in various lawsuits considered to be in the normal course of business. Members of the Company's senior legal and financial management teams review litigation on a quarterly and annual basis. The final results of any litigation cannot be predicted with certainty. Although some of this litigation is pending in states where large punitive damages, bearing little relation to the actual damages sustained by plaintiffs, have been awarded in recent years, the Company believes the outcome of pending litigation will not have a material adverse effect on its financial position, results of operations, or cash flows.

See Note 3 of the Notes to the Consolidated Financial Statements for details on certain investment commitments.

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Guaranty Fund Assessments

The U.S. insurance industry has a policyholder protection system that is monitored and regulated by state insurance departments. These life and health insurance guaranty associations are state entities (in all 50 states as well as Puerto Rico and the District of Columbia) created to protect policyholders of an insolvent insurance company. All insurance companies (with limited exceptions) licensed to sell life or health insurance in a state must be members of that state’s guaranty association. Under state guaranty association laws, certain insurance companies can be assessed (up to prescribed limits) for certain obligations to the policyholders and claimants of impaired or insolvent insurance companies that write the same line or similar lines of business.

In 2009, the Pennsylvania Insurance Commissioner placed long-term care insurer Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company (collectively referred to as Penn Treaty), neither of which is affiliated with Aflac, in rehabilitation and petitioned a state court for approval to liquidate Penn Treaty. A final order of liquidation was granted by a recognized judicial authority on March 1, 2017, and as a result, Penn Treaty is in the process of liquidation. The Company estimated and recognized the impact of its share of guaranty fund assessments resulting from the liquidation using a discounted rate of 4.25%. The Company recognized a discounted liability for the assessments of $62 million (undiscounted $94 million), offset by discounted premium tax credits of $48 million (undiscounted $74 million), for a net $14 million impact to net income in the quarter ended March 31, 2017. The Company paid a majority of these assessments by March 31, 2020. The Company used the cost estimate provided as of the liquidation date by the National Organization of Life and Health Guaranty Associations (NOLHGA) to calculate its estimated assessments and tax credits.

Guaranty fund assessments for the three-month period ended March 31, 2020 were immaterial.

14. SUBSEQUENT EVENTS

In April 2020, the Parent Company issued $1.0 billion of senior notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 3.60% per annum, payable semi-annually, and will mature in April 2030. These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 45 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

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. Aflac Incorporated and its subsidiaries desire to take advantage of these provisions. This report 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 the ones listed below or similar words, as well as specific projections of future results, generally qualify as forward-looking. The Company undertakes no obligation to update such forward-looking statements.

• expect	• anticipate	• believe	• goal	• objective
• may	• should	• estimate	• intends	• projects
• will	• assumes	• potential	• target	• outlook

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:

• the effects of COVID-19, and any resulting economic effects and government interventions, on the Company's business and financial results

• ability to attract and retain qualified sales associates, brokers, employees, and distribution partners

• events related to the ongoing Japan Post investigation and other matters

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

• deviations in actual experience from pricing and reserving assumptions

• ability to continue to develop and implement improvements in information technology systems

• defaults and credit downgrades of investments

• exposure to significant interest rate risk

• concentration of business in Japan

• limited availability of acceptable yen-denominated investments

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

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

• catastrophic events including, but not necessarily limited to, epidemics, pandemics (such as the coronavirus COVID-19), tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, terrorism or other acts of violence, and damage incidental to such events

• difficult conditions in global capital markets and the economy

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

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

• foreign currency fluctuations in the yen/dollar exchange rate

• tax rates applicable to the Company may change

• decline in creditworthiness of other financial institutions

• significant valuation judgments in determination of amount of impairments taken on the Company's investments

• U.S. tax audit risk related to conversion of the Japan branch to a subsidiary

• subsidiaries' ability to pay dividends to the Parent Company

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

• inherent limitations to risk management policies and procedures

• concentration of the Company's investments in any particular single-issuer or sector

• differing judgments applied to investment valuations

• ability to effectively manage key executive succession

• changes in accounting standards

• level and outcome of litigation

• allegations or determinations of worker misclassification in the United States

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MD&A OVERVIEW

MD&A is intended to inform the reader about matters affecting the financial condition and results of operations of Aflac Incorporated and its subsidiaries for the three-month periods ended March 31, 2020 and 2019, respectively. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, the following discussion should be read in conjunction with the consolidated financial statements and notes that are included in the Company's annual report on Form 10-K for the year ended December 31, 2019 (2019 Annual Report). In this MD&A, amounts may not foot due to rounding. For additional information on the Company’s performance measures included in this MD&A, see the Glossary of Selected Terms found directly following Part II. Other Information. 

This MD&A is divided into the following sections:

	Page
Executive Summary	62
Results of Operations	68
Investments	80
Deferred Policy Acquisition Costs	88
Policy Liabilities	88
Benefit Plans	88
Policyholder Protection	89
Off-Balance Sheet Arrangements	89
Liquidity and Capital Resources	89
Critical Accounting Estimates	94

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EXECUTIVE SUMMARY

Company Overview

Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) provide financial protection to more than 50 million people worldwide. The Company’s principal business is providing supplemental health and life insurance products with the goal to provide customers the best value in supplemental insurance products in the United States (U.S.) and Japan. The Company's insurance business consists of two reporting segments: Aflac Japan and Aflac U.S. The Parent Company’s primary insurance subsidiaries are Aflac Life Insurance Japan Ltd. in Japan (Aflac Japan) and American Family Life Assurance Company of Columbus (Aflac); Continental American Insurance Company (CAIC), branded as Aflac Group Insurance (AGI); American Family Life Assurance Company of New York (Aflac New York); Tier One Insurance Company (TOIC) and Argus Dental & Vision, Inc (Argus), which provides a platform for Aflac Dental and Vision in the U.S. (collectively, Aflac U.S.).

COVID-19

On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. As of April 27, 2020, the U.S. Centers for Disease Control and Prevention (CDC) website listed over 920,000 total COVID-19 confirmed and probable cases in the U.S. and over 52,000 COVID-19 confirmed and probable deaths, as defined by the CDC. As of April 27, 2020, the Japan Ministry of Health, Labor, and Welfare reported over 13,200 total COVID-19 cases in Japan and over 350 confirmed COVID-19 deaths. The impact of COVID-19 on the Company is evolving, and its future effects are uncertain and the Company is closely monitoring the effects and risks of COVID-19 to assess its impact on the Company's business, financial condition, results of operations, liquidity and capital position in a number of ways, and may cause changes to estimates of future earnings, capital deployment, regulatory capital position, segment dividend payout ratios and other guidance the Company provided under 2020 Outlook in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of its 2019 Annual Report. See Item 1A. Risk Factor in this Quarterly Report on Form 10-Q entitled "Major public health issues, and specifically the novel coronavirus, COVID-19 and any resulting economic effects and government interventions, could have an adverse impact on the Company's financial condition and results of operations and other aspects of its business" for additional information.

The Company is mobilizing its resources to ensure adequate liquidity, a strong capital position, business continuity and employee safety in both Japan and the U.S. during the pandemic. The Company’s efforts and other developments are outlined below.

• Liquidity and Capital Resources

The Company entered the crisis in a strong capital and liquidity position, having maintained capital ratios in Japan and the U.S. at a level designed to absorb a degree of market volatility. To further support liquidity and capital resources, the Parent Company, in March 2020, issued four series of senior notes totaling ¥57.0 billion and, in April 2020, issued $1 billion in senior notes through public debt offerings under its U.S. shelf registration statement. Accordingly, as of April 24, 2020 the Parent Company holds approximately $5 billion in liquidity and capital for stress conditions, which includes the Parent Company's target minimum amount of $2.0 billion held to provide a capital buffer and liquidity support at the holding company. Even after these debt offerings, the Company’s leverage ratio remains at levels that the Company believes are adequate to maintain current ratings and leave capacity for further debt issuances. The Company has available liquidity in its unsecured revolving credit facilities of $1 billion and ¥100.0 billion, respectively, and currently has no borrowings under either of these facilities. Aflac increased its internal limit for Federal Home Loan Bank of Atlanta (FHLB) borrowings to $800 million, $300 million of which the Company has designated to be used for short-term liquidity needs and subject to qualified collateral availability and other conditions. The Company continues to evaluate other sources of liquidity including reinvestment cash flows and selling investments.

The Company remains committed to prudent liquidity and capital management and is taking a tactical approach to capital allocation. In terms of repurchase guidance, the Company remains in the market at reduced levels and is being tactical in its approach to repurchasing its stock. The Company believes that this tactical approach will allow it to increase or decrease repurchase activity depending on how the pandemic and market conditions evolve.

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The Company is committed to maintaining strong Aflac Japan solvency margin ration (SMR) and Aflac U.S. risk-based capital (RBC) ratios. While the SMR is particularly sensitive to market volatility resulting from widening of credit spreads, both SMR and RBC are sensitive to credit downgrades and defaults. The Company has capital tools available to increase SMR and RBC including the reduction of subsidiary dividends paid to the Parent Company by its insurance subsidiaries and Parent Company capital contributions to insurance subsidiaries sourced through cash on hand, proceeds from debt issuances or by drawing on the revolving credit facilities noted above. For example, the Parent Company plans to make a capital contribution of $150 million to CAIC in approximately the first half of May 2020. The Company also has a committed reinsurance facility in the amount of ¥110 billion of reserves that could be deployed to support SMR. For example, Aflac Japan and Aflac U.S. currently anticipate that dividends they provide to the Parent Company in 2020 will be reduced by ¥75 billion and $75 million, respectively, compared to initial 2020 plans. Further dividend reductions may be necessary as the Company continues to monitor developments. In its Aflac U.S. segment, the Company intends to maintain RBC in the 400% range for 2020.

As a result of market volatility, the Company has made tactical adjustments to its foreign currency-hedging program in Aflac Japan to mitigate hedging cost and settlement risk while maintaining a strong SMR. Aflac Japan maintains a collar program on a portion of its US dollar program to mitigate against more extreme moves in foreign exchange rates and therefore support SMR. In the first quarter of 2020, the Company reduced the size of the collar program by approximately $3 billion to $9 billion and marginally widened the collars. While these adjustments will moderately increase the Company's exposure to SMR volatility, the Company believes that they will also reduce its exposure to pricing volatility and the related risk of negative settlements should there be a material weakening in the yen. Depending on further developments, including the possibility of further market volatility, there may be additional costs associated with maintaining the collar program. The Company is evaluating other adjustments, including the possibility of hedging additional U.S dollar-denominated investments. See the Liquidity and Capital Resources section of this MD&A for additional information regarding other potential sources of liquidity and capital resources.

• Investment Portfolio

The Company's investment portfolio is well-positioned entering the crisis, and the Company continues to follow its strategy of investing primarily in fixed maturity securities to generate a reliable stream of income. Fundamental credit analysis and de-risking activity in prior periods contributed to the current quality of the Company’s investments. The Company is closely monitoring the impact of the crisis on its investments and hedging programs, and on markets globally. Certain investments have been adversely impacted, including investments in issuers facing an immediate and severe impact such as travel and lodging, leisure, non-emergency medical and energy. These investments experienced price declines and downgrades in the quarter. In addition, volatility in oil prices and reduction in global energy demand adversely impacted issuers in the energy sector. Due to the decline in U.S. interest rates, and limitations on the availability of new investments in certain private asset classes such as middle market loans, commercial mortgages and transitional real estate, net investment income may be adversely impacted over time from lower reinvestment rates for fixed maturity investments and lower interest on floating rate assets. In early 2020, the Company hedged its floating rate income against interest rate declines during 2020. The decline in interest rates during the quarter allowed the Company to monetize a portion of its floating rate hedges, which will offset some of the declines in net investment income from floating rate assets that may occur if rates remain low. The impact of the crisis during the quarter may not be fully reflected in net investment income because certain investments, such as private limited partnerships, typically report their results to the Company one to three months following the end of the reporting period. The Company expects that net investment income from these investments will decline significantly in the second quarter of 2020 and perhaps into later periods. In this regard, the Company’s investments in private limited partnerships tend to reflect to some extent price declines in publicly traded equities, which experienced significant price declines in the first quarter. The Company has made tactical adjustments to its investment portfolios in response to the crisis, and continues to assess its investment strategy and asset allocation to identify additional tactical adjustments that may be necessary due to recent market disruption

• Crisis Management

The Company has crisis command centers set up in Japan and the U.S. These command centers are in place for any type of crisis, including natural disasters and cybersecurity events. The command centers participate in regular updates to the Company's leadership regarding Japan and U.S. government and regulatory actions,

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operations, employee policies and conditions and distribution status. In addition, capital market, central bank and government stimulus updates are provided, as well as updates on cybersecurity, including with respect to the Company's remote workforce. Moreover, the Company's financial leadership group meets more frequently and has focused on the capital markets, capital and liquidity position, stress testing and any defensive actions necessary as the crisis unfolds.

• Aflac Japan initiatives

In February 2020, Aflac Japan began to implement actions such as working from home, staggered work hours, limitations on the number of personnel attending in-person meetings and restrictions on traveling between buildings and floors in Aflac Japan worksites. On April 7, 2020, the Japan government declared a state of emergency in seven prefectures including Tokyo and Osaka and requested that companies in these prefectures reduce the number of employees coming into the office by 70% or more. Accordingly, Aflac Japan has implemented increasing levels of remote working levels for its work force toward the requested level. As of April 14, 2020, Aflac Japan has met the requested reduction in employees coming to the office with over 70% of its employees working from home and over 25% working in the office. On April 16, 2020, the state of emergency was expanded nationwide in Japan with a stated expiration date of May 6, 2020.

Aflac Japan announced several additional actions taken for its employees including travel restrictions and extended paid leave.

Aflac Japan remains focused on generating new business through direct mail made to existing and prospective customers. In addition, Aflac Japan is promoting digital and web-based sales to groups and preparing to introduce a new system that enables smartphone-based insurance application by allowing the customer and an Aflac operator see the same screen through their smartphones. Face-to-face sales will be challenged and is having an impact on sales results. During April, Aflac Japan experienced a sales decline of an estimated 65% compared to April 2019, due to both the continued effects of the Japan Post investigation and the effects of the pandemic. See the Aflac Japan Segment of this MD&A for additional information regarding sales in the Japan Post channel and the strategic alliance with Japan Post.

Aflac Japan has also followed the guidance of the FSA in terms of treating customers with care, including a six-month grace period on premium payments, ensuring ease and timeliness of claims payments and extended coverage for temporary medical facilities and telemedicine in certain circumstances, and waiver of interest on certain policyholder loans. On April 18, 2020, Aflac Japan announced that it will pay certain accidental death and disability benefits in the event of a death directly caused by COVID-19.

To assist with the COVID-19 pandemic, Aflac Japan donated ¥500 million to the Japan Medical Associations and to identified municipalities where Aflac Japan has operations.

• Aflac U.S. and Corporate and Other initiatives

The Parent Company and Aflac U.S. began to implement Company mandates including restrictions on travel and in-person meetings applicable to U.S. employees beginning in February 2020 and required work from home directives across their U.S. work force in March 2020. As of April 15, 2020, approximately 98% of employees were working remotely, with 100% of employees working remotely in certain areas including New York City, including all investment employees based in the United States. The Parent Company and Aflac U.S. are currently maintaining employee and worksite safety measures including travel restrictions, building access restrictions and in-person meeting restrictions.

Aflac U.S. recently announced several actions taken for its employees. This included a commitment to cover the costs of COVID-19 testing and extended paid leave in certain circumstances.

Aflac U.S. is focused on supporting its agency channel, most of whom are small businesses, by offering zero-interest loans and cash stipends in lieu of canceled recognition trips.

Aflac U.S. policy sales, enrollment and agent recruiting functions are highly dependent upon face-to-face interaction between independent agents and brokers with prospective and new customers and agents. Opportunities for such interaction have been significantly reduced by reactions to the pandemic, such as social distancing, shelter in place orders and work from home initiatives. Further, the pandemic’s economic effects

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on prospective and existing customers is still largely unknown. Similar to Aflac Japan, the Aflac U.S. sales team is working to adjust its sales approach given the reduction in face-to-face sales. Key elements to this approach include realizing sales at the worksite through an enrollment call center, video enrollment through co-browsing and self-enrollment. The traditional agent sales team is also using virtual recruiting and training through video conferencing in order to maintain or increase the recruiting pipeline. The Aflac U.S. broker sales team is focused on product enhancements due to COVID-19 as well as leveraging technology based solutions to drive enrollment in the second half of 2020. Finally, Aflac U.S. is in its second year of the build-out of the Consumer Markets business for the digital direct-to-consumer sale of insurance and sales made through that platform have continued to grow. 

Given the importance of face-to-face interaction, and based on sales trends during the month of April, the Company expects a sharp decline in sales across all Aflac U.S. product lines in the second quarter. The Company has experienced a decline in Aflac U.S. sales of an estimated 55% compared to April 2019.

Aflac U.S. is encouraging policyholders who are displaying COVID-19 symptoms to seek treatment and is paying wellness benefits on applicable policies for COVID-19 tests, when completed claims are submitted. Aflac U.S. is also providing coverage for treatment in temporary facilities and by telemedicine in certain circumstances. During the first quarter, Aflac U.S. took steps to comply with COVID-19-related directives issued by state regulatory authorities, including those requiring or requesting premium grace periods. These periods generally range from 30-60 days, but some regulatory authorities have required or requested longer premium grace periods or grace periods that remain in effect until further notice. Aflac U.S. anticipates an increase in policy lapses in the second and third quarters of 2020 as premium grace periods begin to expire.

On April 14, 2020, the Parent Company announced that it has contributed $5 million to two organizations that are providing assistance for health care workers assisting with the COVID-19 pandemic.

• Emergence of COVID-19 claims

The Company’s COVID-19 related claims experience in Aflac Japan and Aflac U.S. has been relatively minor through March 31, 2020. During April, the Company began experiencing an increase in claims and call center volume related to COVID-19 in both Japan and the U.S. In Japan, the medical system is under increasing stress, especially in metropolitan areas, due to the recent increase in infections and may not be sufficient to treat a rapid increase in infection. Patients with minor illnesses are receiving treatment in alternative facilities or at home. The amount and timing of claims experience still remains uncertain and, in the case of Japan, a rapid increase in infection could result in higher death claims. The Company is preparing for the potential of a high stress claims scenario to emerge as early as the second and third quarters of 2020.

• Major government initiatives

Government authorities in Japan and the U.S. have implemented several initiatives in response to the COVID-19 pandemic, including actions designed to mitigate the adverse health effects of the virus and those designed to provide broad-based relief and economic support to all aspects of the economy. Given that these measures were recently implemented, it is too early to determine what impacts these initiatives will have on the Company’s business, results of operations, financial condition, liquidity, capital position, investment portfolio, workforce, distribution partners and vendors.

On April 7, 2020, Prime Minister Abe issued a state of emergency declaration targeting seven prefectures based on the revised Act on Special Measures for Pandemic Influenza and New Infectious Diseases Preparedness and Response. On April 16, 2020, the state of emergency was expanded to all 47 prefectures, with 13 prefectures designated as “special alert prefectures” that must place intensive focus on preventing the spread of COVID-19. The state of emergency is currently scheduled to remain in effect until May 6, 2020.

Under the state of emergency, governors can request that residents refrain from non-essential and non-urgent outings except those necessary to sustain daily life, and that business operators restrict customers’ use of shops and facilities. However, enforceability is limited and Japan is therefore not considered to be in a “lockdown” situation.

Upon issuance of the state of emergency declaration, governors of Tokyo and other prefectures requested that residents refrain from going outside and make an effort to minimize commutes through measures such

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as teleworking and staggered work hours. Some companies (e.g., recreational facilities) have been asked to suspend business, while others have been requested to maintain operations (e.g., those related to maintaining medical care, social stability, and securing stable living for citizens). Financial services are included in the businesses that the Tokyo governor and other local authorities have requested to remain in operation. The state of emergency in Japan summarized above are subject to continuing extensions and modifications to the list of essential or other activities that are permitted during the order.

The Financial Services Agency (FSA) has also requested that financial service providers respond appropriately while continuing their essential operations. This request includes insurance companies, which have been asked to continue essential operations such as benefits and claims payment, including policyholder loans. Moreover, following the expansion of the impact of COVID-19, the FSA requested insurance companies to consider flexible interpretation and application of insurance policy provisions and measures required for products from the standpoint of protecting policyholders. In accordance with the FSA’s request, Aflac Life Insurance Japan Ltd. implemented a measure to pay accidental death benefits and accidental serious disability benefits under its accidental death benefit rider, etc. in cases of death or specified serious disabilities from COVID-19.

On April 20, 2020, the Cabinet of Japan approved ¥117 trillion or more than 20% of GDP in emergency stimulus measures, including various tax measures to address the financial difficulties that businesses are facing. The stimulus package includes measures decided earlier in February and March as emergency COVID-19 response and the “Comprehensive Economic Measures to Create a Future with Security and Growth” formulated in December 2019. The package is divided into measures covering two stages of the COVID-19 outbreak: the “emergency support phase,” and the “V-shaped recovery phase.” The emergency support phase is described as covering until a noticeable slowdown in the spread of COVID-19 and provides cash benefits of ¥100 thousand per person to Japanese citizens and other measures that focus on improvements to the medical service system. The V-shaped recovery phase focuses on a campaign to boost demand after the pandemic abates, as well as to reinforce Japan’s economic foundations through measures such as supply-chain reforms and promotion of telework.

In the U.S., statewide shelter in place or stay at home orders are currently in effect across the majority of states, with a small number of states adopting partial shelter in place orders or other statewide social distancing restrictions. The governors of the states of Georgia, New York and South Carolina, where the Company’s primary U.S. operations are located, issued statewide shelter in place orders on April 2, March 20 and April 6, 2020, respectively. The state of emergency in Japan and states orders summarized above are subject to continuing extensions and modifications to the list of essential or other activities that are permitted during the order. While a few states, including Georgia, have started to relax shelter in place orders, the impact of these initiatives, including their sustainability is uncertain.

The United States government is taking action in response to the COVID-19 pandemic by providing broad-based relief and economic support to all aspects of the economy.

The Families First Coronavirus Response Act was signed into law on March 18, 2020 with the goal of mitigating the financial impact of the COVID-19 on states, territories, the uninsured, the unemployed, workers and individuals who rely on food assistance, such as children and low-income seniors.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, was signed into law on March 7, 2020 and is designed to provide approximately $2 trillion in financial stimulus in the form of financial aid to individuals, businesses, nonprofits, states, and municipalities. Among other measures, the CARES Act provides for $260 billion in expanded unemployment benefits and $290 billion of direct payments to individuals, and it establishes a $349 billion Paycheck Protection Program (PPP) providing for loans to small businesses, nonprofits, and veteran’s organizations with 500 or fewer employees. Under the PPP, loan funds are forgivable under certain circumstances and may be used to cover payroll (which includes sick and medical leave, health care benefits, and retirement benefits) insurance payments, mortgage payments and other debt obligations. To be eligible for loan forgiveness an employer must maintain an average monthly number of full-time employees during the covered period. The funds appropriated to the PPP were stated to be available through June 30, 2020, but as of April 16, 2020, the appropriated funds were expended based on applications received to date. The CARES Act also authorizes $500 billion for the Secretary of the Treasury to make direct loans, loan guarantees, and investments in support of eligible businesses, states and municipalities including certain impacted industries

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such as passenger air carriers, air cargo carriers and related businesses. The legislation includes a five-year net operating loss (NOL) carryback, payroll tax relief and other significant provisions for businesses.

The Paycheck Protection Program and Health Care Enhancement Act (Act) was signed into law on April 24, 2020 and is designed to provide approximately $484 billion in additional stimulus, including an additional $321 billion for the PPP, including $10 billion for administrative costs and $60 billion allocated to small lenders and community banks.  In addition to the PPP funds, the Act also includes $75 billion in aid for hospitals and other health care providers, $60 billion for disaster loans and programs, and $25 billion to enhance COVID-19 testing capabilities.

The Federal Reserve has also taken various actions in an effort to support the economy and markets in response to heightened volatility and uncertainty. These actions include reducing by 1.5% each the rate that it charges for direct loans to banks, as well as the target for the rate banks charge each other for overnight funds (federal funds rate); initiating quantitative easing with no stated cap on purchases; committing to purchase U.S. Treasury securities, agency mortgage-backed and agency commercial mortgaged-backed securities; re-establishing the Term Asset-Backed Securities Loan Facility (TALF) originally launched in 2009, through which it will lend to holders of AA-rated asset-backed securities; and establishing facilities to support purchase of corporate bonds from large investment-grade companies.

Performance Highlights

Total revenues were $5.2 billion during the first quarter of 2020, compared with $5.7 billion in the first quarter of 2019. Net earnings were $566 million, or $.78 per diluted share in the first quarter of 2020, compared with $928 million, or $1.23 per diluted share, in the first quarter of 2019. The declines in total revenues and net earnings in the first quarter of 2020 were both driven primarily by an increase in net investment losses.

Results in the first quarter of 2020 included pretax net investment losses of $463 million, compared with net investment gains of $71 million in the first quarter of 2019. Net investment losses in the first quarter of 2020 included $145 million of credit losses; $162 million of net losses from certain derivative and foreign currency gains or losses; $149 million of net losses on equity securities; and $7 million of net losses from sales and redemptions.

The average yen/dollar exchange rate⁽¹⁾ for the three-month period ended March 31, 2020 was 108.84, or 1.3% stronger than the average yen/dollar exchange rate of 110.24 for the same period in 2019.

Adjusted earnings⁽²⁾ in the first quarter of 2020 were $882 million, or $1.21 per diluted share, compared with $849 million, or $1.12 per diluted share, in the first quarter of 2019. The stronger yen/dollar exchange rate impacted adjusted earnings per diluted share by $.01.

Total investments and cash at the end of March 2020 were $137.0 billion, compared with $131.4 billion at March 31, 2019. In the first quarter of 2020, Aflac Incorporated repurchased $449 million, or 10.0 million of its common shares. At the end of March, the Company had 27.1 million remaining shares authorized for repurchase.

Shareholders’ equity was $26.4 billion, or $36.75 per share, at March 31, 2020, compared with $26.0 billion, or $34.90 per share, at March 31, 2019. Shareholders’ equity at March 31, 2020 included a net unrealized gain on investment securities and derivatives of $6.0 billion, compared with a net unrealized gain of $6.5 billion at March 31, 2019. Shareholders’ equity at March 31, 2020 also included an unrealized foreign currency translation loss of $1.5 billion, compared with an unrealized foreign currency translation loss of $1.8 billion at March 31, 2019. The annualized return on average shareholders’ equity in the first quarter of 2020 was 8.2%.

Shareholders’ equity excluding accumulated other comprehensive income (AOCI)⁽²⁾ (adjusted book value) was $22.2 billion, or $30.92 per share at March 31, 2020, compared with $21.6 billion, or $28.89 per share, at March 31, 2019. The annualized adjusted return on equity excluding foreign currency impact⁽²⁾ in the first quarter of 2020 was 15.7%.

⁽¹⁾ Yen/U.S. dollar exchange rates are based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).

⁽²⁾ See the Results of Operations section of this MD&A for a definition of this non-U.S. GAAP financial measure.

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RESULTS OF OPERATIONS

The Company earns its revenues principally from insurance premiums and investments. The Company’s operating expenses primarily consist of insurance benefits provided and reserves established for anticipated future insurance benefits, general business expenses, commissions and other costs of selling and servicing its products. Profitability for the Company depends principally on its ability to price its insurance products at a level that enables the Company to earn a margin over the costs associated with providing benefits and administering those products. Profitability also depends on, among other items, actuarial and policyholder behavior experience on insurance products, and the Company's ability to attract and retain customer assets, generate and maintain favorable investment results, effectively deploy capital and utilize tax capacity, and manage expenses.

Yen–denominated income statement accounts are translated to U.S. dollars using a weighted average Japanese yen/U.S. dollar foreign exchange rate, except realized gains and losses on security transactions which are translated at the exchange rate on the trade date of each transaction. Yen–denominated balance sheet accounts are translated to U.S. dollars using a spot Japanese yen/U.S. dollar foreign exchange rate.

The following discussion includes references to the Company's performance measures, adjusted earnings, adjusted earnings per diluted share, and amortized hedge costs/income, which are not calculated in accordance with U.S. generally accepted accounting principles (GAAP) (non-U.S. GAAP). These measures exclude items that the Company believes may obscure the underlying fundamentals and trends in the Company's insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with its insurance operations. The Company's management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of its insurance operations on a consolidated basis, and the Company believes that a presentation of these measures is vitally important to an understanding of its underlying profitability drivers and trends of its insurance business. The Company believes that amortized hedge costs/income, which are a component of adjusted earnings, 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.

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

• Adjusted earnings are the profits derived from operations. The most comparable U.S. GAAP measure is net earnings. Adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management’s control. Adjusted revenues are U.S. GAAP total revenues excluding net investment gains and losses, except for amortized hedge costs/income related to foreign currency exposure management strategies and net interest cash flows from derivatives associated with certain investment strategies. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company's underlying business performance.

• Adjusted earnings per share (basic or diluted) are adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The most comparable U.S. GAAP measure is net earnings per share.

• Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency-derivatives to hedge certain foreign exchange risks in the Company's Japan segment or in the Corporate and Other segment. 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 term of the hedge. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income.

• 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. The most comparable U.S. GAAP measure is net earnings.

• Adjusted earnings per diluted share excluding current period foreign currency impact are adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The most comparable U.S. GAAP measure is net earnings per share.

• U.S. dollar-denominated investment income excluding foreign currency impact is determined using the average foreign currency exchange rate for the comparable prior year period.

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• Adjusted book value is the U.S. GAAP book value (representing total shareholders' equity), less AOCI as recorded on the U.S. GAAP balance sheet. The Company considers adjusted book value important as it excludes AOCI, which fluctuates due to market movements that are outside management's control.

• Adjusted return on equity (ROE) excluding foreign currency impact is calculated using adjusted earnings excluding current period foreign currency impact divided by average shareholders’ equity, excluding AOCI. The most comparable U.S. GAAP financial measure is return on average equity as determined using net earnings and average total shareholders’ equity.

The following table is a reconciliation of items impacting adjusted earnings and adjusted earnings per diluted share to the most directly comparable U.S. GAAP measures of net earnings and net earnings per diluted share, respectively.

Reconciliation of Net Earnings to Adjusted Earnings⁽¹⁾ 

	In Millions						Per Diluted Share
	Three Months Ended March 31,
	2020			2019			2020			2019
Net earnings	$	566		$	928		$	.78		$	1.23
Items impacting net earnings:
Net investment (gains) losses (2),(3),(4),(5)	448			(103		)	.62			(.14		)
Other and non-recurring (income) loss	15			0			.02			.00
Income tax (benefit) expense on items excluded from adjusted earnings	(146		)	23			(.20		)	.03
Adjusted earnings	882			849			1.21			1.12
Current period foreign currency impact (6)	(9		)	N/A			(.01		)	N/A
Adjusted earnings excluding current period foreign currency impact	$	873		$	849		$	1.20		$	1.12

⁽¹⁾ Amounts may not foot due to rounding.

⁽²⁾ Amortized hedge costs of $55 and $62 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and included in adjusted earnings as a decrease to net investment income. See "Hedge Costs/Income" discussion below for further information.

⁽³⁾ Amortized hedge income of $29 and $20 for the three-month periods ended March 31, 2020 and 2019, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and included in adjusted earnings as an increase to net investment income. See "Hedge Costs/Income" discussion below for further information.

⁽⁴⁾ Net interest cash flows from derivatives associated with certain investment strategies of $(6) and $(7) for the three-month periods ended March 31, 2020 and 2019, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

⁽⁵⁾ A gain of $16 and $17 for the three-month periods ended March 31, 2020 and 2019, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of interest expense.

⁽⁶⁾ Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.

Reconciling Items

Net Investment Gains and Losses

The Company's investment strategy is to invest primarily in fixed maturity securities to provide a reliable stream of investment income, which is one of the drivers of the Company’s growth and profitability. This investment strategy incorporates asset-liability matching (ALM) to align the expected cash flows of the portfolio to the needs of the Company's liability structure. The Company does not purchase securities with the intent of generating investment gains or losses. However, investment gains and losses may be realized as a result of changes in the financial markets and the creditworthiness of specific issuers, tax planning strategies, and/or general portfolio management and rebalancing. The realization of investment gains and losses is independent of the underwriting and administration of the Company's insurance products. Net investment gains and losses include securities transactions, credit losses, derivative and foreign currency activities and changes in fair value of equity securities.

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Securities Transactions, Credit Losses and Gains (Losses) on Equity Securities

Securities transactions include gains and losses from sales and redemptions of investments where the amount received is different from the amortized cost of the investment. Prior to January 1, 2020, impairments include other-than-temporary-impairment losses on investment securities as well as changes in loan loss reserves for loan receivables. Effective January 1, 2020, credit losses include losses for held-to-maturity fixed maturity securities, available-for-sale fixed maturity securities, loan receivables, loan commitments and reinsurance recoverables.

Certain Derivative and Foreign Currency Gains (Losses)

The Company's derivative activities include:

• foreign currency forwards and options on certain fixed maturity securities

• foreign currency forwards and options that economically hedge certain portions of forecasted cash flows denominated in yen and hedge the Company's long-term exposure to a weakening yen

• foreign currency swaps associated with certain senior notes and subordinated debentures

• foreign currency swaps and credit defaults swaps held in consolidated variable interest entities (VIEs)

• interest rate swaps used to economically hedge interest rate fluctuations in certain variable-rate investments

• interest rate swaptions to hedge changes in the fair value associated with interest rate changes for certain dollar-denominated available-for-sale securities.

Gains and losses are recognized as a result of valuing these derivatives, net of the effects of hedge accounting. The Company also excludes from adjusted earnings the accounting impacts of remeasurement associated with changes in the foreign currency exchange rate. Amortized hedge costs/ income related to certain foreign currency exposure management strategies (see Amortized Hedge Cost/Income section below), and net interest cash flows from derivatives associated with certain investment strategies and notes payable are reclassified from net investment gains (losses) and included in adjusted earnings.

Amortized hedge costs/income can fluctuate based upon many factors, including the derivative notional amount, the length of time of the derivative contract, changes in both U.S. and Japan interest rates, and supply and demand for dollar funding. Amortized hedge costs and income have fluctuated in recent periods due to changes in the previously mentioned factors. For additional information regarding foreign currency hedging, refer to Hedging Activities in the Investments section of this MD&A.

For additional information regarding net investment gains and losses, including details of reported amounts for the periods presented, see Notes 3 and 4 of the Notes to the Consolidated Financial Statements.

Other and Non-recurring Items

The U.S. insurance industry has a policyholder protection system that provides funds for the policyholders of insolvent insurers. The system can result in periodic charges to the Company as a result of insolvencies/bankruptcies that occur with other companies in the life insurance industry. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. These charges neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, but result from external situations not controlled by the Company. The Company excludes any charges associated with U.S. guaranty fund assessments and the corresponding tax benefit or expense from adjusted earnings.

In Japan, the government also requires the insurance industry to contribute to a policyholder protection corporation that provides funds for the policyholders of insolvent insurers; however, these costs are calculated and administered differently than in the U.S. In Japan, these costs are not directly related to specific insolvencies or bankruptcies, but are rather a regular operational cost for an insurance company. Based on this structure, the Company does not remove the Japan policyholder protection expenses from adjusted earnings.

Income Taxes

The Company's combined U.S. and Japanese effective income tax rate on pretax earnings was 21.4% for the three-month period ended March 31, 2020, compared with 25.3% for the same period in 2019. This combined effective tax rate differs from the U.S. statutory rate primarily due to foreign earnings taxed at different rates. For further information, see Critical Accounting Estimates - Income Taxes section of the MD&A in the 2019 Annual Report.

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Foreign Currency Translation

Aflac Japan’s premiums and a significant portion of its investment income are received in yen, and its claims and most expenses are paid in yen. Aflac Japan purchases yen-denominated assets and U.S. dollar-denominated assets, which may be hedged to yen, to support yen-denominated policy liabilities. These and other yen-denominated financial statement items are, however, translated into dollars for financial reporting purposes. The Company translates Aflac Japan’s yen-denominated income statement into dollars using the average exchange rate for the reporting period, and the Company translates its yen-denominated balance sheet using the exchange rate at the end of the period.

Due to the size of Aflac Japan, whose functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on the Company's 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. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts on book value and the currency-neutral operating performance over time.

RESULTS OF OPERATIONS BY SEGMENT

U.S. GAAP financial reporting requires that a company report financial and descriptive information about operating segments in its annual and interim period financial statements. Furthermore, the Company is required to report a measure of segment profit or loss, certain revenue and expense items, and segment assets. Aflac's insurance business consists of two segments: Aflac Japan and Aflac U.S. Aflac Japan is the principal contributor to consolidated earnings. Businesses that are not individually reportable, such as the Parent Company, and asset management subsidiaries and other business activities, including reinsurance retrocession activities, are included in the Corporate and other segment. See the Item 1. Business section of the 2019 Annual Report for a summary of each segment's products and distribution channels.

During the first quarter, Aflac Japan sales for protection-type first sector and third sector products decreased 25.8% and total sales decreased 25.4%, primarily due to continued effects from the Japan Post investigation, and secondarily to the effects of the COVID-19 pandemic. Sales from Aflac U.S. were down 5.2% due to social distancing efforts, which eliminated face-to-face sales opportunities beginning mid-March 2020. During April, Aflac Japan experienced a sales decline of an estimated 65% compared to the same period in 2019, due to both the continued effects of the Japan Post investigation and the effects of the pandemic. Aflac U.S. sales declined by an estimated 55% in April compared to April 2019, due to the pandemic. While the respective Aflac Japan and Aflac U.S. platforms and distribution partners are working to adapt to the new environment, the Company believes that these results indicate a trend of depressed sales at least until COVID-19 restrictions subside. The Company continues to monitor the effects of COVID-19 on its operating results and has taken several steps to mobilize its resources to ensure adequate liquidity, a strong capital position, business continuity and employee safety during this pandemic. See the Executive Summary subsection of this MD&A for additional information.

Consistent with U.S. GAAP guidance for segment reporting, pretax adjusted earnings is the Company's U.S. GAAP measure of segment performance. The Company believes that a presentation of this measure is vitally important to an understanding of the underlying profitability drivers and trends of its business. Additional performance measures used to evaluate the financial condition and performance of the Company's segments are listed below.

• operating ratios

• expense ratio

• new annualized premium sales

• new money yield

• return on average invested assets

• average weekly producer

For additional information on the Company’s performance measures included in this MD&A, see the Glossary of Selected Terms found directly following Part II. Other Information. See Note 2 of the Notes to the Consolidated Financial Statements for the reconciliation of segment results to the Company's consolidated U.S. GAAP results and additional information.

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AFLAC JAPAN SEGMENT

Aflac Japan Pretax Adjusted Earnings

Changes in Aflac Japan’s pretax adjusted earnings and profit margins are primarily affected by morbidity, mortality, expenses, persistency and investment yields. The following table presents a summary of operating results for Aflac Japan.

Aflac Japan Summary of Operating Results

	Three Months Ended March 31,
(In millions)	2020		2019
Net premium income	$	3,150	$	3,180
Net investment income: (1)
Yen-denominated investment income	322		317
U.S. dollar-denominated investment income	375		355
Net investment income	697		672
Amortized hedge costs related to certain foreign currency exposure management strategies	55		62
Adjusted net investment income	642		610
Other income (loss)	11		12
Total adjusted revenues	3,803		3,802
Benefits and claims, net	2,186		2,199
Adjusted expenses:
Amortization of deferred policy acquisition costs	173		182
Insurance commissions	185		182
Insurance and other expenses	404		405
Total adjusted expenses	762		769
Total benefits and adjusted expenses	2,948		2,968
Pretax adjusted earnings	$	855	$	834
Weighted-average yen/dollar exchange rate	108.84		110.24

	In Dollars				In Yen
Percentage change over  previous period:	Three Months Ended March 31,				Three Months Ended March 31,
	2020		2019		2020		2019
Net premium income	(.9	)%	(2.5	)%	(2.1	)%	(.8	)%
Adjusted net investment income	5.2		3.7		4.0		5.4
Total adjusted revenues	.0		(1.6	)	(1.1	)	.1
Pretax adjusted earnings	2.5		2.0		1.2		3.9

⁽¹⁾ Net interest cash flows from derivatives associated with certain investment strategies of $(6) and $(7) for the three-month periods ended March 31, 2020 and 2019, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

In the three-month period ended March 31, 2020, Aflac Japan's net premium income decreased, in yen terms, primarily due to an anticipated decrease in first sector premiums as savings products reached premium paid-up status. Adjusted net investment income, increased primarily due to increased income from U.S. dollar-denominated investments.

Annualized premiums in force decreased 2.8% to ¥1.47 trillion as of March 31, 2020, compared with ¥1.52 trillion as of March 31, 2019. The decrease in annualized premiums in force in yen was driven primarily by limited-pay products reaching paid up status. Annualized premiums in force, translated into dollars at respective period-end exchange rates, were $13.5 billion at March 31, 2020, compared with $13.7 billion a year ago.

Aflac Japan's investment portfolios include U.S. dollar-denominated securities and reverse-dual currency securities (yen-denominated debt securities with dollar coupon payments). In years when the yen strengthens in relation to the dollar, translating Aflac Japan's U.S. dollar-denominated investment income into yen lowers growth rates for net investment income, total adjusted revenues, and pretax adjusted earnings in yen terms. In years when the yen weakens, translating U.S. dollar-

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denominated investment income into yen magnifies growth rates for net investment income, total adjusted revenues, and pretax adjusted earnings in yen terms.

The following table illustrates the effect of translating Aflac Japan’s U.S. dollar-denominated investment income and related items into yen by comparing certain segment results with those that would have been reported had foreign currency exchange rates remained unchanged from the comparable period in the prior year. Amounts excluding foreign currency impact on U.S. dollar denominated investment income were determined using the average foreign currency exchange rate for the comparable prior year period. See non-U.S. GAAP financial measures defined above.

Aflac Japan Percentage Changes Over Previous Period

(Yen Operating Results)

For the Periods Ended March 31,

	Including Foreign Currency Changes					Excluding Foreign Currency Changes
	Three Months					Three Months
	2020			2019		2020		2019
Adjusted net investment income	4.0		%	5.4	%	4.8		4.2	%
Total adjusted revenues	(1.1	)		.1		(1.0	)	.0
Pretax adjusted earnings	1.2			3.9		1.7		3.1

The following table presents a summary of operating ratios in yen terms for Aflac Japan.

	Three Months Ended March 31,
Ratios to total adjusted revenues:	2020		2019
Benefits and claims, net	57.5	%	57.8	%
Adjusted expenses:
Amortization of deferred policy acquisition costs	4.6		4.8
Insurance commissions	4.9		4.8
Insurance and other expenses	10.6		10.6
Total adjusted expenses	20.0		20.2
Pretax adjusted earnings	22.5		21.9
Ratios to total premiums:
Benefits and claims, net	69.4	%	69.1	%
Adjusted expenses:
Amortization of deferred policy acquisition costs	5.5		5.7

In the three-month period ended March 31, 2020, the benefit ratio increased slightly, compared with the same period in the prior year. This is primarily due to higher incurred claims offset by the continued change in mix of first and third sector business as first sector products become paid-up. In the three-month period ended March 31, 2020, the adjusted expense ratio decreased mainly due to lower DAC amortization and sales promotion expenses, partially offset by the decrease in total revenue. In total, the pretax adjusted profit margin increased in the three-month period ended March 31, 2020. For the full year of 2020, the Company is monitoring the situation with respect to COVID-19, and potential impacts on the pretax adjusted profit margin and benefit ratio.

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Aflac Japan Sales

The following table presents Aflac Japan’s new annualized premium sales for the periods ended March 31.

	In Dollars						In Yen
	Three Months						Three Months
(In millions of dollars and billions of yen)	2020			2019			2020			2019
New annualized premium sales	$	129		$	171		¥	14.0		¥	18.8
Increase (decrease) over prior period	(24.5		)%	(4.0		)%	(25.4		)%	(2.0		)%

The following table details the contributions to Aflac Japan's new annualized premium sales by major insurance product for the periods ended March 31.

	Three Months
	2020		2019
Cancer	55.5	%	59.3	%
Medical	32.4		30.0
Income support	1.2		1.4
Ordinary life:
WAYS	.6		.5
Child endowment	.3		.3
Other ordinary life (1)	9.3		8.0
Other	.7		.5
Total	100.0	%	100.0	%

⁽¹⁾ Includes term and whole life

The foundation of Aflac Japan's product portfolio has been, and continues to be, third sector products, which include cancer, medical and income support insurance products. Aflac Japan has been focusing more on promotion of cancer and medical insurance products in this low-interest-rate environment. These products are less interest-rate sensitive and more profitable compared to first sector savings products. With continued cost pressure on Japan’s health care system, the Company expects the need for third sector products will continue to rise in the future and that the medical and cancer insurance products Aflac Japan provides will continue to be an important part of its product portfolio.

Sales of protection-type first sector and third sector products on a yen basis decreased 25.8% in the first quarter of 2020, compared with the same respective period in 2019. The decline in sales primarily reflects reduced sales of cancer insurance through the Japan Post channel.

Sales of Aflac Japan cancer products in the Japan Post Group channel experienced a material decline beginning in August 2019 which has continued into 2020. See Item 1A. Risk Factor entitled "Events related to the ongoing Japan Post investigation and other matters regarding sales of Japan Post Insurance products could negatively impact the Company’s sales and results of operations," for additional information. Aflac Japan is expecting a sharp drop-off in total sales in the second quarter due to the continuing effects of the Japan Post investigation and the effects of the COVID-19 pandemic. See the Executive Summary section entitled "COVID-19" of this MD&A for additional information.

Independent corporate agencies and individual agencies contributed 52.8% of total new annualized premium sales for Aflac Japan in the first quarter of 2020, compared with 46.1% for the same period in 2019. Affiliated corporate agencies, which include Japan Post, contributed 42.7% of total new annualized premium sales in the first quarter of 2020, compared with 49.4% in the first quarter of 2019. Japan Post offers Aflac's cancer insurance products in more than 20,000 postal outlets. Notwithstanding the recent reduction in sales of Aflac Japan's cancer products in the Japan Post channel, the Company believes this alliance with Japan Post has and will benefit its cancer insurance sales over the long term. During the three-month period ended March 31, 2020, Aflac Japan recruited 17 new sales agencies. At March 31, 2020, Aflac Japan was represented by more than 8,800 sales agencies, with more than 110,000 licensed sales associates employed by those agencies.

At March 31, 2020, Aflac Japan had agreements to sell its products at 364 banks, approximately 90% of the total number of banks in Japan. Bank channel sales accounted for 4.5% of new annualized premium sales for Aflac Japan in the first quarter of 2020 and 2019, respectively.

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Strategic Alliance with Japan Post Holdings

On December 19, 2018, the Parent Company and Aflac Japan entered into a Basic Agreement with Japan Post Holdings a Japanese corporation. Pursuant to the terms of the Basic Agreement, Japan Post Holdings agreed to form a capital relationship with the Parent Company, and Japan Post Holdings and Aflac Japan agreed to reconfirm existing initiatives regarding cancer insurance and to consider new joint initiatives, including leveraging digital technology in various processes, cooperation in new product development to promote customer-centric business management, cooperation in domestic and/or overseas business expansion and joint investment in third party entities and cooperation regarding asset management.

On February 28, 2019, the Parent Company entered a Shareholders Agreement with Japan Post Holdings, J&A Alliance Holdings Corporation, a Delaware corporation, solely in its capacity as trustee of J&A Alliance Trust, a New York voting trust (Trust), and General Incorporated Association J&A Alliance, a Japanese general incorporated association. Pursuant to the Shareholders Agreement, Japan Post Holdings agreed to cause the Trust to use commercially reasonable efforts to acquire, through open market or private block purchases in the United States, beneficial ownership of approximately 7% of the Common Stock in connection with the Basic Agreement. According to a Schedule 13G/A filed by Japan Post Holdings with the SEC on January 8, 2020, the Trust had beneficially acquired 6.47% of the outstanding Common Shares as of December 31, 2019. Japan Post Holdings is the sole beneficiary of the Trust. According to a press release by Japan Post Holdings on February 14, 2020, the Trust had completed the planned beneficial acquisition of approximately 7% of the outstanding Common Shares as of February 13, 2020.

The Trust has agreed not to own more than 10% of the Parent Company’s outstanding shares for a period expiring on the earlier of four years after the Trust acquires 7% of such shares, five years after it acquires 5% of such shares, or ten years after the Trust begins acquiring the Parent Company’s stock. After expiration of such period, the Trust has agreed not to own more than the greater of 10% of the Parent Company’s outstanding shares or such shares representing 22.5% of the voting rights in the Parent Company.

In light of the fact that the shares acquired by the Trust, like all Aflac Incorporated common shares, will be eligible for 10-for-1 voting rights after being held for 48 consecutive months, the Shareholders Agreement further provides for voting restrictions that effectively limit the trustee’s voting rights to no more than 20% of the voting rights in the Parent Company and further restrict the trustee’s voting rights with respect to certain change in control transactions. Japan Post Holdings will not have a Board seat on the Parent Company’s Board of Directors and will not have rights to control, manage or intervene in the management of the Parent Company.

As of December 31, 2019, all regulatory approvals expressly set forth in the Shareholders Agreement have been obtained. The Shareholders Agreement requires the parties to use reasonable best efforts to cooperate in connection with any ongoing regulatory matters related to or arising from the Trust’s acquisition or ownership or control of the shares of Company Common Stock, including any applications or filings in connection with a direct or indirect acquisition of control of or merger with an insurer by the Company or its affiliates. The foregoing is subject to and qualified in its entirety by reference to the full text of the Shareholders Agreement, a copy of which is attached as Exhibit 10.50 to the Company’s Quarterly Report on Form 10-Q filed April 26, 2019, and the terms of which exhibit are incorporated herein by reference.

Aflac Japan Investments

The level of investment income in yen is affected by available cash flow from operations, the timing of investing the cash flow, yields on new investments, the effect of yen/dollar exchange rates on U.S. dollar-denominated investment income, and other factors.

As part of the Company's portfolio management and asset allocation process, Aflac Japan invests in yen and U.S. dollar-denominated investments. Yen-denominated investments primarily consist of JGBs and public and private fixed maturity securities. Aflac Japan's U.S. dollar-denominated investments include fixed maturity investments and growth assets, including public equity securities and alternative investments in limited partnerships or similar investment vehicles. Aflac Japan has been investing in both publicly-traded and privately originated U.S. dollar-denominated investment-grade and below-investment-grade fixed maturity securities and loan receivables, and has entered into foreign currency forwards and options to hedge the currency risk on the fair value of a portion of the U.S. dollar investments.

The following table details the investment purchases for Aflac Japan.

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	Three Months Ended March 31,
(In millions)	2020		2019
Yen-denominated:
Fixed maturity securities:
Japan government and agencies	$	736	$	583
Private placements	90		424
Other fixed maturity securities	77		249
Equity securities	3		108
Total yen-denominated	$	906	$	1,364
U.S. dollar-denominated:
Fixed maturity securities:
Other fixed maturity securities	$	527	$	668
Infrastructure debt	35		0
Equity securities	0		27
Commercial mortgage and other loans:
Transitional real estate loans	368		323
Commercial mortgage loans	12		0
Middle market loans	1,187		376
Other investments	50		41
Total dollar-denominated	$	2,179	$	1,435
Total Aflac Japan purchases	$	3,085	$	2,799

See the Investments section of this MD&A for further discussion of these investment programs, and see Notes 3 and 4 of the Notes to the Consolidated Financial Statements and Notes 1, 3 and 4 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report for more information regarding loans and loan receivables.

The following table presents the results of Aflac Japan’s investment yields for the periods ended March 31.

	Three Months
	2020			2019
Total purchases for the period (in millions) (1)	$	3,035		$	2,758
New money yield (1), (2)	4.06		%	3.29		%
Return on average invested assets (3)	2.35			2.32
Portfolio book yield, including U.S. dollar-denominated investments, end of period (1)	2.64		%	2.61		%

⁽¹⁾ Includes fixed maturity securities, commercial mortgage and other loans, equity securities, and excludes alternative investments in limited partnerships

⁽²⁾ Reported on a gross yield basis; excludes investment expenses, external management fees, and amortized hedge costs

⁽³⁾ Net of investment expenses and amortized hedge costs, year-to-date number reflected on a quarterly average basis

The increase in the Aflac Japan new money yield in the three-month period ended March 31, 2020 was primarily due to increased allocations to higher yielding floating rate asset classes.

See Notes 3, 4 and 5 of the Notes to the Consolidated Financial Statements and the Investments section of this MD&A for additional information on the Company's investments and hedging strategies.

AFLAC U.S. SEGMENT

Aflac U.S. Pretax Adjusted Earnings

Changes in Aflac U.S. pretax adjusted earnings and profit margins are primarily affected by morbidity, mortality, expenses, persistency and investment yields. The following table presents a summary of operating results for Aflac U.S.

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Aflac U.S. Summary of Operating Results

	Three Months Ended March 31,
(In millions)	2020			2019
Net premium income	$	1,483		$	1,461
Net investment income	177			177
Other income	27			2
Total adjusted revenues	1,687			1,640
Benefits and claims	713			721
Adjusted expenses:
Amortization of deferred policy acquisition costs	160			159
Insurance commissions	151			149
Insurance and other expenses	337			288
Total adjusted expenses	648			596
Total benefits and adjusted expenses	1,361			1,317
Pretax adjusted earnings	$	326		$	323
Percentage change over previous period:
Net premium income	1.5		%	2.4			%
Net investment income	.0			1.1
Total adjusted revenues	2.9			2.2
Pretax adjusted earnings	.9			(4.2		)

Annualized premiums in force increased .7% to $6.2 billion at March 31, 2020, compared with $6.2 billion at March 31, 2019.

The following table presents a summary of operating ratios for Aflac U.S.

	Three Months Ended March 31,
Ratios to total adjusted revenues:	2020		2019
Benefits and claims	42.3	%	44.0	%
Adjusted expenses:
Amortization of deferred policy acquisition costs	9.5		9.7
Insurance commissions	9.0		9.0
Insurance and other expenses	20.0		17.6
Total adjusted expenses	38.4		36.3
Pretax adjusted earnings	19.3		19.7
Ratios to total premiums:
Benefits and claims	48.1	%	49.3	%
Adjusted expenses:
Amortization of deferred policy acquisition costs	10.8		10.9

For the three-month period ended March 31, 2020, the benefit ratio decreased compared with the same period in 2019, reflecting changes in business mix from higher loss ratio, reserve building products to lower loss ratio, guaranteed issue products, a decline in incurred claims ratio as well as slower net benefit reserve growth due to the release of reserves from lapsed policies. The adjusted expense ratio increased in the three-month period ended March 31, 2020, when compared to the same period in 2019, primarily due to anticipated spending increases reflecting ongoing investments in the U.S. platform, distribution, and customer experience, as well as lower unit cost capitalization reflecting a first quarter decline in sales. The pretax adjusted profit margin declined in the three-month period, when compared to the same period in 2019, due to higher expense ratios, offset somewhat by lower benefit ratios. For the full year of 2020, the Company is monitoring the situation with respect to COVID-19, and potential impacts on the pretax adjusted profit margin and benefit ratio.

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Aflac U.S. Sales

The following table presents Aflac's U.S. new annualized premium sales for the periods ended March 31.

	Three Months
(In millions)	2020				2019
New annualized premium sales	$	323			$	340
Increase (decrease) over prior period	(5.2		)	%	1.5		%

The following table details the contributions to Aflac's U.S. new annualized premium sales by major insurance product category for the periods ended March 31.

	Three Months
	2020		2019
Accident	27.3	%	28.7	%
Short-term disability	22.6		23.6
Critical care(1)	21.1		20.9
Hospital indemnity	16.9		15.2
Dental/vision	4.4		5.0
Life	7.7		6.6
Total	100.0	%	100.0	%

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

New annualized premium sales for accident insurance, the leading Aflac U.S. product category, decreased 10.0%; short-term disability sales decreased 9.8%; critical care insurance sales (including cancer insurance) decreased 4.2%; and hospital indemnity insurance sales increased 5.5% in the first quarter of 2020, compared with the same period in 2019. Primarily, the decline is sales for Aflac U.S. is attributable COVID-19 social distancing efforts, which limited face-to-face sales opportunities beginning in mid-March 2020. See the Executive Summary section entitled "COVID-19" of this MD&A for additional information.

In the first quarter of 2020, the Aflac U.S. sales force included an average of approximately 7,400 U.S. agents, including brokers, who were actively producing business on a weekly basis. The Company believes that this average weekly producer equivalent metric allows sales management to monitor progress and needs, as well as serve as a leading indicator of future production capacity.

In March 2020, the Company, through its insurance subsidiaries Aflac and Aflac New York, entered into an agreement to acquire Zurich North America’s U.S. Corporate Life and Pensions business, which consists of group life, disability and absence management products. Aflac and Aflac New York will reinsure on an indemnity basis Zurich North America’s U.S. in-force group life and disability policies with annualized earned premium of approximately $115 million. Aflac will also acquire assets needed to support the group life and disability business, along with an absence management platform. Subject to regulatory approvals and customary closing conditions, this transaction is expected to close in the second half of 2020.

Aflac U.S. Investments

The level of investment income is affected by available cash flow from operations, the timing of investing the cash flow, yields on new investments, and other factors.

As part of the Company's portfolio management and asset allocation process, Aflac U.S. invests in fixed maturity investments and growth assets, including public equity securities and alternative investments in limited partnerships. Aflac U.S. has been investing in both publicly traded and privately originated investment-grade and below-investment-grade fixed maturity securities and loan receivables.

The following table details the investment purchases for Aflac U.S.

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	Three Months Ended March 31,
(In millions)	2020		2019
Fixed maturity securities:
Other fixed maturity securities	$	182	$	594
Infrastructure debt	16		60
Equity securities	4		16
Commercial mortgage and other loans:
Transitional real estate loans	38		48
Commercial mortgage loans	27		25
Middle market loans	38		29
Other investments	6		5
Total Aflac U.S. Purchases	$	311	$	777

See Note 3 of the Notes to the Consolidated Financial Statements and Notes 1 and 3 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report for more information regarding loans and loans receivables.

The following table presents the results of Aflac's U.S. investment yields for the periods ended March 31.

	Three Months
	2020			2019
Total purchases for period (in millions) (1)	$	305		$	772
New money yield (1), (2)	3.73		%	4.48		%
Return on average invested assets (3)	5.01			5.08
Portfolio book yield, end of period (1)	5.34		%	5.49		%

⁽¹⁾ Includes fixed maturity securities, commercial mortgage and other loans, equity securities, and excludes alternative investments in limited partnerships

⁽²⁾ Reported on a gross yield basis; excludes investment expenses and external management fees

⁽³⁾ Net of investment expenses, year-to-date number reflected on a quarterly average basis

The decrease in the Aflac U.S. new money yield for the three-month period ended March 31, 2020 was primarily due to lower U.S. interest rates. See Notes 3 and 5 of the Notes to the Consolidated Financial Statements and the Analysis of Financial Condition section of this MD&A for additional information on the Company's investments.

CORPORATE AND OTHER

Changes in the pretax adjusted earnings of Corporate and other are primarily affected by investment income. The following table presents a summary of results for Corporate and other.

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Corporate and Other Summary of Operating Results

	Three Months Ended March 31,
(In millions)	2020		2019
Premium income	$	49	$	50
Net investment income	24		22
Amortized hedge income related to certain foreign currency management strategies	29		20
Adjusted net investment income	53		42
Other income	2		3
Total adjusted revenues	104		95
Benefits and claims, net	40		47
Adjusted expenses:
Interest expense	33		33
Other adjusted expenses	29		33
Total adjusted expenses	62		66
Total benefits and adjusted expenses	102		113
Pretax adjusted earnings	$	2	$	(18	)

Adjusted net investment income benefited from the Company’s enterprise corporate hedging program in the three-month periods ended March 31, 2020 and 2019, respectively. See the Hedging Activities subsection of this MD&A for further information on the enterprise corporate hedging program.

INVESTMENTS

The Company’s investment strategy utilizes disciplined asset and liability management while seeking long-term risk-adjusted investment returns and the delivery of stable income within regulatory and capital objectives, and preserving shareholder value. In attempting to optimally balance these objectives, the Company seeks to maintain on behalf of Aflac Japan a diversified portfolio of yen-denominated investment assets, U.S. dollar-denominated investment portfolio hedged back to yen and a portfolio of unhedged U.S. dollar-denominated assets. As part of the Company's portfolio management and asset allocation process, Aflac U.S. invests in fixed maturity investments and growth assets, including public equity securities and alternative investments in limited partnerships. Aflac U.S. invests in both publicly traded and privately originated investment-grade and below-investment-grade fixed maturity securities and loans.

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The following tables detail investments by segment.

Investment Securities by Segment

	March 31, 2020
(In millions)	Aflac Japan		Aflac U.S.		Corporate and Other		Total
Available for sale, fixed maturity securities,    at fair value	$	81,238	$	13,258	$	1,792	$	96,288
Held to maturity, fixed maturity securities,    at amortized cost (1)	23,278		0		0		23,278
Equity securities	523		57		80		660
Commercial mortgage and other loans:
Transitional real estate loans (1)	4,620		996		0		5,616
Commercial mortgage loans (1)	1,307		422		0		1,729
Middle market loans (1)	3,124		281		0		3,405
Other investments:
Policy loans	237		16		0		253
Short-term investments (2)	316		242		334		892
Limited partnerships	552		61		56		669
Other	0		29		0		29
Total investments	115,195		15,362		2,262		132,819
Cash and cash equivalents	1,480		347		2,321		4,148
Total investments and cash	$	116,675	$	15,709	$	4,583	$	136,967

⁽¹⁾ Net of allowance for credit losses

⁽²⁾ Includes securities lending collateral

	December 31, 2019
(In millions)	Aflac Japan		Aflac U.S.		Corporate and Other		Total
Available for sale, fixed maturity securities,    at fair value	$	75,780	$	13,703	$	1,779	$	91,262
Held to maturity, fixed maturity securities,    at amortized cost	30,085		0		0		30,085
Equity securities	657		67		78		802
Commercial mortgage and other loans:
Transitional real estate loans	4,507		943		0		5,450
Commercial mortgage loans	1,308		399		0		1,707
Middle market loans	2,141		271		0		2,412
Other investments:
Policy loans	234		16		0		250
Short-term investments (1)	386		242		1		629
Limited partnerships	496		55		17		568
Other	0		30		0		30
Total investments	115,594		15,726		1,875		133,195
Cash and cash equivalents	1,674		417		2,805		4,896
Total investments and cash	$	117,268	$	16,143	$	4,680	$	138,091

⁽¹⁾ Includes securities lending collateral

The ratings of the Company's securities referenced in the table below are based on the ratings designations provided by major rating organizations such as Moody's, Standard & Poor's and Fitch or, if not rated, are determined based on the Company's internal analysis of such securities. When the ratings issued by the rating agencies differ, the Company utilizes

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the second lowest rating when three or more rating agency ratings are available or the lowest rating when only two rating agency ratings are available.

The distributions of fixed maturity securities the Company owns, by credit rating, were as follows:

Composition of Fixed Maturity Securities by Credit Rating

		March 31, 2020						December 31, 2019
	Amortized Cost			Fair       Value			Amortized Cost			Fair       Value
AAA		1.1	%		1.1	%		1.1	%		1.0	%
AA		4.3			4.5			4.3			4.4
A		68.6			71.2			68.6			69.8
BBB		22.9			20.7			23.1			22.1
BB or lower		3.1			2.5			2.9			2.7
Total		100.0	%		100.0	%		100.0	%		100.0	%

As of March 31, 2020, the Company's direct and indirect exposure to securities in its investment portfolio that were guaranteed by third parties was immaterial both individually and in the aggregate.

The following table presents the 10 largest unrealized loss positions in the Company's portfolio as of March 31, 2020.

(In millions)	Credit Rating		Amortized Cost			Fair Value			Unrealized     Loss
Investcorp Capital Limited		BB		$	390		$	318		$	(72	)
PEMEX Project Funding Master Trust		BBB		276			216			(60		)
AXA		BBB		298			240			(58		)
Ovintiv Inc.		BBB		113			56			(57		)
Apache Corporation		BBB		126			76			(50		)
Commonwealth Bank of Australia		AA		193			146			(47		)
Comision Federal de Electricidad		BBB		293			247			(46		)
Autostrade Per Litalia Spa		BB		183			138			(45		)
Banco de Chile		A		184			139			(45		)
KLM Royal Dutch Airlines		BB		139			98			(41		)

Generally, declines in fair values can be a result of changes in interest rates, yen/dollar exchange rate, and changes in net spreads driven by a broad market move or a change in the issuer's underlying credit quality. The Company believes these issuers have the ability to continue making timely payments of principal and interest. See the Unrealized Investment Gains and Losses section in Note 3 of the Notes to the Consolidated Financial Statements for further discussions of unrealized losses related to financial institutions and other corporate investments.

Below-Investment-Grade Securities

The Company's portfolio of below-investment-grade securities includes debt securities purchased while the issuer was rated investment grade plus other loans and bonds purchased as part of an allocation to that segment of the market. The following is the Company's below-investment-grade exposure.

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Below-Investment-Grade Investments

	March 31, 2020
(In millions)	Par Value		Amortized Cost (1)		Fair Value		Unrealized Gain (Loss)
Investcorp Capital Limited	$	390	$	390	$	318	$	(72	)
Republic of South Africa	368		368		365		(3		)
KLM Royal Dutch Airlines	184		139		98		(41		)
Autostrade Per Litalia Spa	184		183		138		(45		)
Telecom Italia SpA	184		184		214		30
Barclays Bank PLC	184		117		134		17
IKB Deutsche Industriebank AG	119		52		62		10
Arconic Inc.	100		85		87		2
EMC Corp.	80		81		76		(5		)
Generalitat de Catalunya	73		27		77		50
Other Issuers	704		742		534		(208		)
Subtotal (2)	2,570		2,368		2,103		(265		)
Senior secured bank loans	391		408		346		(62		)
High yield corporate bonds	728		729		669		(60		)
Middle market loans	3,527		3,405		3,304		(101		)
Grand Total	$	7,216	$	6,910	$	6,422	$	(488	)

⁽¹⁾ Net of allowance for credit losses

⁽²⁾ Securities initially purchased as investment grade, but have subsequently been downgraded to below investment grade

The Company invests in senior secured bank loans and middle market loans primarily to U.S. corporate borrowers, most of which have below-investment-grade ratings. The objectives of these programs include enhancing the yield on invested assets, achieving further diversification of credit risk, and mitigating the risk of rising interest rates and hedge costs through the acquisition of floating rate assets.

The Company maintains an allocation to higher yielding corporate bonds within the Aflac Japan and Aflac U.S. portfolios. Most of these securities were rated below-investment-grade at the time of purchase, but the Company also purchased several that were rated investment grade which, because of market pricing, offer yields commensurate with below-investment-grade risk profiles. The objective of this allocation was to enhance the Company's yield on invested assets and further diversify credit risk. All investments in this program must have a minimum rating at purchase of low BB using the Company's above described rating methodology and are managed by the Company's internal credit portfolio management team.

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Fixed Maturity Securities by Sector

The Company maintains diversification in investments by sector to avoid concentrations to any one sector, thus managing exposure risk. The following table shows the distribution of fixed maturities by sector classification.

	March 31, 2020
(In millions)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		% of Total
Government and agencies	$	54,587	$	10,599	$	(14	)	$	65,172	49.1	%
Municipalities	2,430		496		(2		)	2,924		2.2
Mortgage- and asset-backed securities	458		40		0			497		.4
Public utilities	8,301		1,093		(143		)	9,252		7.5
Electric	6,544		851		(107		)	7,289		5.9
Natural Gas	305		43		(14		)	334		.3
Other	699		98		(18		)	779		.6
Utility/Energy	753		101		(4		)	850		.7
Sovereign and Supranational	2,003		211		(27		)	2,187		1.8
Banks/financial institutions	10,007		949		(578		)	10,379		9.0
Banking	6,074		542		(333		)	6,284		5.5
Insurance	1,906		317		(100		)	2,123		1.7
Other	2,027		90		(145		)	1,972		1.8
Other corporate	33,310		3,292		(1,377		)	35,224		30.0
Basic Industry	3,371		340		(77		)	3,634		3.0
Capital Goods	3,307		268		(56		)	3,518		3.0
Communications	4,026		543		(87		)	4,482		3.6
Consumer Cyclical	3,322		266		(140		)	3,447		3.0
Consumer Non-Cyclical	6,527		746		(118		)	7,156		5.9
Energy	4,224		280		(601		)	3,903		3.8
Other	1,469		129		(62		)	1,536		1.3
Technology	3,195		219		(56		)	3,358		2.9
Transportation	3,869		501		(180		)	4,190		3.5
Total fixed maturity securities	$	111,096	$	16,680	$	(2,141	)	$	125,635	100.0	%

⁽¹⁾ Net of allowance for credit losses

Securities by Type of Issuance

The Company has investments in both publicly and privately issued securities. The Company's ability to sell either type of security is a function of overall market liquidity which is impacted by, among other things, the amount of outstanding securities of a particular issuer or issuance, trading history of the issue or issuer, overall market conditions, and idiosyncratic events affecting the specific issue or issuer.

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The following table details investment securities by type of issuance.

Investment Securities by Type of Issuance 

		March 31, 2020						December 31, 2019
(In millions)	Amortized Cost (1)			Fair    Value			Amortized Cost			Fair   Value
Publicly issued securities:
Fixed maturity securities		$	91,082		$	104,690		$	89,625		$	105,557
Equity securities		572			572			717			717
Total publicly issued		91,654			105,262			90,342			106,274
Privately issued securities: (2)
Fixed maturity securities (3)		20,014			20,945			19,831			23,299
Equity securities		88			88			85			85
Total privately issued		20,102			21,033			19,916			23,384
Total investment securities		$	111,756		$	126,295		$	110,258		$	129,658

⁽¹⁾ Net of allowance for credit losses

⁽²⁾ Primarily consists of securities owned by Aflac Japan

⁽³⁾ Excludes Rule 144A securities

The following table details the Company's reverse-dual currency securities.

Reverse-Dual Currency Securities⁽¹⁾ 

(Amortized cost, in millions)	March 31, 2020				December 31, 2019
Privately issued reverse-dual currency securities		$	5,030			$	4,993
Publicly issued collateral structured as reverse-dual currency securities		1,689				1,678
Total reverse-dual currency securities		$	6,719			$	6,671
Reverse-dual currency securities as a percentage of total investment securities		6.0		%		6.1		%

⁽¹⁾ Principal payments in yen and interest payments in dollars

Aflac Japan has a portfolio of privately issued securities to better match liability characteristics and secure higher yields than those available on Japanese government or other public corporate bonds. Aflac Japan’s investments in yen-denominated privately issued securities consist primarily of non-Japanese issuers, are rated investment grade at purchase and have longer maturities, thereby allowing the Company to improve asset/liability matching and overall investment returns. These securities are generally either privately negotiated arrangements or issued under medium-term note programs and have standard documentation commensurate with credit ratings of the issuer, except when internal credit analysis indicates that additional protective and/or event-risk covenants were required. Many of these investments have protective covenants appropriate to the specific investment. These may include a prohibition of certain activities by the borrower, maintenance of certain financial measures, and specific conditions impacting the payment of the Company's notes.

HEDGING ACTIVITIES

The Company uses derivative contracts to hedge foreign currency exchange rate risk and interest rate risk. The Company uses various strategies, including derivatives, to manage these risks. See item “7A. Quantitative and Qualitative Disclosures About Market Risk” in the 2019 Annual Report for more information about market risk and the Company’s use of derivatives.

Derivatives are designed to reduce risk on an economic basis while minimizing the impact on financial results. The Company’s derivatives programs vary depending on the type of risk being hedged. See Note 4 of the Notes to the Consolidated Financial Statements for:

• A description of the Company's derivatives, hedging strategies and underlying risk exposure.

• Information about the notional amount and fair market value of the Company's derivatives.

• The unrealized and realized gains and losses impact on adjusted earnings of derivatives in cash flow, fair value, net investments in foreign operations, or non-qualifying hedging relationships.

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Foreign Currency Exchange Rate Risk Hedge Program

The Company has deployed the following hedging strategies to mitigate exposure to foreign currency exchange rate risk:

• Aflac Japan hedges U.S. dollar-denominated investments back to yen (see Aflac Japan’s U.S. Dollar-Denominated Hedge Program below).

• Aflac Japan maintains certain unhedged U.S. dollar-denominated securities, which serve as an economic currency hedge of a portion of the Company's investment in Aflac Japan (see Aflac Japan’s U.S. Dollar-Denominated Hedge Program below).

• The Parent Company designates yen-denominated liabilities (notes payable and loans) as non-derivative hedging instruments and designates certain foreign currency forwards and options as derivative hedges of the Company’s net investment in Aflac Japan (see Enterprise Corporate Hedging Program below).

• The Parent Company enters into forward and option contracts to accomplish a dual objective of hedging foreign currency exchange rate risk related to dividend payments by its subsidiary, ALIJ, and reducing enterprise-wide hedge costs. (see Enterprise Corporate Hedging Program below).

Aflac Japan’s U.S. Dollar-Denominated Hedge Program

Aflac Japan buys U.S. dollar-denominated investments, typically corporate bonds, and hedges them back to yen with foreign currency forwards and options to hedge foreign currency exchange rate risk. This economically creates yen assets that match yen liabilities during the life of the derivative and provides capital relief. The currency risk being hedged is generally based on fair value of hedged investments. The following table summarizes the U.S. dollar-denominated investments held by Aflac Japan.

	March 31, 2020				December 31, 2019
(In millions)	Amortized Cost (1)		Fair Value		Amortized Cost		Fair Value
Available-for-sale securities:
Fixed maturity securities (excluding bank loans)	$	18,297	$	19,048	$	18,012	$	19,542
Fixed maturity securities - bank loans (floating rate)	525		453		677		649
Equity securities	17		17		19		19
Commercial mortgage and other loans:
Transitional real estate loans (floating rate)	4,620		4,444		4,507		4,543
Commercial mortgage loans	1,307		1,264		1,308		1,319
Middle market loans (floating rate)	3,124		3,029		2,141		2,153
Other investments	552		552		496		496
Total U.S. Dollar Program	28,442		28,807		27,160		28,721
Available-for-sale securities:
Fixed maturity securities - economically converted to yen	1,712		2,342		1,700		2,608
Total U.S. dollar-denominated investments in Aflac Japan	$	30,154	$	31,149	$	28,860	$	31,329

⁽¹⁾ Net of allowance for credit losses

U.S. Dollar Program includes all U.S. dollar-denominated investments in Aflac Japan other than the investments in certain consolidated VIEs where the instrument is economically converted to yen as a result of a derivative in the consolidated VIE.

Aflac Japan maintains a collar program on a portion of its US dollar program to mitigate against more extreme moves in foreign exchange and therefore support SMR. In the first quarter of 2020, the Company reduced the size of the collar program by approximately $3 billion as certain collars expired and were not replaced. While these adjustments will moderately increase the Company's exposure to SMR volatility, the Company believes that they will also reduce its exposure to pricing volatility and the related risk of negative settlements should there be a material weakening in the yen. Depending on further developments, including the possibility of further market volatility, there may be additional costs associated with maintaining the collar program. The Company is evaluating other adjustments, including the possibility of hedging additional U.S dollar-denominated investments.

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As of March 31, 2020, Aflac Japan had $9.1 billion outstanding notional amounts of foreign currency forwards and $18.1 billion outstanding notional amounts of foreign currency options, of which none were in-the-money, hedging its U.S. dollar-denominated investments. The fair value of Aflac Japan's unhedged U.S. dollar-denominated portfolio was $19.7 billion (excluding certain U.S. dollar-denominated assets shown in the table above as a result of consolidation that have been economically converted to yen using derivatives).

Foreign exchange derivatives used for hedging are periodically settled, which results in cash receipt or payment at maturity or early termination. The Company had net cash outflows of $33 million and $12 million for the three-month periods ended March 31, 2020 and 2019, respectively, associated with the currency derivatives used for hedging Aflac Japan’s U.S. dollar-denominated investments.

Enterprise Corporate Hedging Program

The Company has designated certain yen-denominated liabilities and foreign currency forwards and options of the Parent Company as accounting hedges of its net investment in Aflac Japan. The Company's consolidated yen-denominated net asset position was partially hedged at $9.7 billion as of March 31, 2020, compared with $9.1 billion as of December 31, 2019.

The Company makes its accounting designation of net investment hedge at the beginning of each quarter. If the total of the designated Parent Company non-derivative and derivative notional is equal to or less than the Company's net investment in Aflac Japan, the hedge is deemed to be effective, and the currency exchange effect on the yen-denominated liabilities and the change in estimated fair value of the derivatives are reported in the unrealized foreign currency component of other comprehensive income. The Company's net investment hedge was effective during the three-month periods ended March 31, 2020 and 2019, respectively. For additional information on the Company's net investment hedging strategy, see Note 4 of the Notes to the Consolidated Financial Statements.

In order to economically mitigate risks associated with the enterprise-wide exposure to the yen and the level and volatility of hedge costs, the Parent Company enters into foreign exchange forward and option contracts. By buying U.S. dollars and selling yen, the Parent Company is effectively lowering its overall economic exposure to the yen, while Aflac Japan's U.S dollar exposure remains reduced as a result of Aflac Japan's U.S. dollar-denominated hedge program that economically creates yen assets. Among other objectives, this strategy is intended to offset the enterprise-wide amortized hedge costs by generating amortized hedge income. The portion of the enterprise-wide amortized hedge income contributed by this strategy was $29 million and $20 million for the three-month periods ended March 31, 2020 and 2019, respectively. This activity is reported in Corporate and Other. As this program evolves, the Company will continue to evaluate the program’s efficacy. See the Results of Operations section of this MD&A for the Company's definition of amortized hedge costs/income.

The following table presents metrics related to Aflac Japan amortized hedge costs and the Parent Company amortized hedge income for the periods ended March 31.

Aflac Japan Hedge Cost/Income Metrics⁽¹⁾ 

	Three Months
	2020	2019
Aflac Japan:
FX forward (sell USD, buy yen) notional at end of period (in billions)(2)	$9.1	$8.6
Weighted average remaining tenor (in months)(3)	11.0	14.3
Amortized hedge income (cost) for period (in millions)	$(55)	$(62)
Parent Company:
FX forward (buy USD, sell yen) notional at end of period (in billions)(2)	$5.0	$2.6
Weighted average remaining tenor (in months)(3)	12.8	14.1
Amortized hedge income (cost) for period (in millions)	$29	$20

⁽¹⁾ See the Results of Operations section of this MD&A for the Company's definition of amortized hedge costs/income.

⁽²⁾ Notional is reported net of any offsetting positions within Aflac Japan or the Parent Company, respectively.

⁽³⁾ Tenor based on period reporting date to settlement date

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Interest Rate Risk Hedge Program

Aflac Japan and Aflac U.S. use interest rate swaps to mitigate the risk of investment income volatility for certain variable-rate investments. Additionally, to manage interest rate risk associated with its U.S. dollar-denominated investments held by Aflac Japan, the Company utilizes interest rate swaptions.

For additional discussion of the risks associated with the foreign currency exposure refer to the Currency Risk section in Item 7A., Quantitative and Qualitative Disclosures about Market Risk, and the Risk Factor sections titled “The Company is exposed to foreign currency fluctuations in the yen/dollar exchange rate" and “Lack of availability of acceptable yen-denominated investments could adversely affect the Company's results of operations, financial position or liquidity" in the 2019 Annual Report.

See Note 4 of the Notes to the Consolidated Financial Statements for additional information on the Company's hedging activities.

DEFERRED POLICY ACQUISITION COSTS

The following table presents deferred policy acquisition costs by segment.

(In millions)	March 31, 2020			December 31, 2019			% Change
Aflac Japan		$	6,639		$	6,584		.8	%	(1)
Aflac U.S.		3,525			3,544			(.5	)
Total		$	10,164		$	10,128		.4	%

⁽¹⁾Aflac Japan’s deferred policy acquisition costs increased .2% in yen during the three months ended March 31, 2020.

See Note 6 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report for additional information on the Company's deferred policy acquisition costs.

POLICY LIABILITIES

The following table presents policy liabilities by segment.

(In millions)	March 31, 2020				December 31, 2019				% Change
Aflac Japan		$	96,739			$	95,793			1.0	%	(1)
Aflac U.S.		11,357				11,295				.5
Other		235				223				5.4
Intercompany eliminations(2)		(779		)		(757		)		2.9
Total		$	107,552			$	106,554			.9	%

⁽¹⁾ Aflac Japan’s policy liabilities increased .3% in yen during the three months ended March 31, 2020.

⁽²⁾ Elimination entry necessary due to recapture of a portion of policy liabilities ceded externally, as a result of the reinsurance retrocession transaction as described in Note 7 of the Notes to the Consolidated Financial Statements.

BENEFIT PLANS

Aflac Japan and Aflac U.S. have various benefit plans. For additional information on the Company's Japanese and U.S. plans, see Note 12 of the accompanying Notes to the Consolidated Financial Statements and Note 14 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

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POLICYHOLDER PROTECTION

Policyholder Protection Corporation

The Japanese insurance industry has a policyholder protection system that provides funds for the policyholders of insolvent insurers. Legislation enacted regarding the framework of the Life Insurance Policyholder Protection Corporation (LIPPC) included government fiscal measures supporting the LIPPC. In November 2016, Japan's Diet passed legislation that extended the government's fiscal support of the LIPPC through March 2022. Effective April 2014, the annual LIPPC contribution amount for the total life industry was lowered from ¥40 billion to ¥33 billion. Aflac Japan recognized an expense of ¥1.0 billion and ¥.9 billion for the three-month periods ended March 31, 2020 and 2019, respectively, for LIPPC assessments.

Guaranty Fund Assessments

Under U.S. state guaranty association laws, certain insurance companies can be assessed (up to prescribed limits) for certain obligations to the policyholders and claimants of impaired or insolvent insurance companies that write the same line or similar lines of business. The amount of the guaranty fund assessment that an insurer is assessed is based on its proportionate share of premiums in that state. Guaranty fund assessments for the three-month periods ended March 31, 2020 and 2019, were immaterial.

OFF-BALANCE SHEET ARRANGEMENTS

See Note 3 of the Notes to the Consolidated Financial Statements for details on certain investment commitments.

As of March 31, 2020, the Company had no material letters of credit, standby letters of credit, guarantees or standby repurchase obligations. See Note 15 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report for information on material unconditional purchase obligations that are not recorded on the Company's balance sheet.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity refers to the ability to generate sufficient cash resources to meet the payment obligations of the Company. Capital refers to the long-term financial resources available to support the operations of the businesses, fund business growth and provide for an ability to withstand adverse circumstances. Financial leverage (leverage) refers to an investment strategy of using debt to increase the potential return on equity. The Company targets and actively manages liquidity, capital and leverage in the context of a number of considerations, including:

• business investment and growth needs

• strategic growth objectives

• financial flexibility and obligations

• capital support for hedging activity

• a constantly evolving business and economic environment

• a balanced approach to capital allocation and shareholder deployment.

The governance framework supporting liquidity, capital and leverage includes global senior management and board committees that review and approve all significant capital related decisions.

The Company's cash and cash equivalents include unrestricted cash on hand, money market instruments, and other debt instruments with a maturity of 90 days or less when purchased, all of which has minimal market, settlement or other risk exposure. The target minimum amount for the Parent Company’s cash and cash equivalents is approximately $2.0 billion to provide a capital buffer and liquidity support at the holding company. Amid the COVID-19 pandemic, the Company remains committed to prudent liquidity and capital management. At March 31, 2020, the Company held $4.1 billion in cash and cash equivalents for stress conditions, which includes the target minimum of $2.0 billion. For additional information on the Company’s liquidity and capital resources in response to COVID-19, see the Executive Summary section of this MD&A.

Aflac Japan and Aflac U.S. provide the primary sources of liquidity to the Parent Company through management fees and dividends. For 2020, the Parent Company anticipates a reduction in the dividends it receives from Aflac Japan and Aflac U.S. to maintain a strong capital position for its insurance subsidiaries during the COVID-19 pandemic. For additional information on the impact to subsidiary dividends paid to the Parent Company as a result of COVID-19, see the Executive Summary section of this MD&A.

The following table presents the amounts provided to the Parent Company for the three-month periods ended March 31.

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Liquidity Provided by Subsidiaries to Parent Company

(In millions)	2020		2019
Dividends declared or paid by subsidiaries	$	501	$	356
Management fees paid by subsidiaries	35		45

The following table details Aflac Japan remittances for the three-month periods ended March 31.

Aflac Japan Remittances 

(In millions of dollars and billions of yen)	2020		2019
Aflac Japan management fees paid to Parent Company	$	22	$	32
Expenses allocated to Aflac Japan (in dollars)	0		2
Aflac Japan profit remittances to the Parent Company (in dollars)	351		256
Aflac Japan profit remittances to the Parent Company (in yen)	¥	38.9	¥	28.3

The Company intends to maintain higher than historical levels of liquidity and capital at the Parent Company for stress conditions and with the goals of addressing the Company’s hedge costs and related potential need for collateral and mitigating against long-term weakening of the Japanese yen. Further, the Company plans to continue to maintain a portfolio of unhedged U.S. dollar based investments at Aflac Japan and consider whether the amount of such investments should be increased or decreased relative to the Company’s view of economic equity surplus in Aflac Japan in light of potentially rising hedge costs and other factors. See the Hedging Activity subsection in this MD&A for more information.

In addition to cash and equivalents, the Company also maintains credit facilities, both intercompany and with external partners, and a number of other available tools to support liquidity needs on a global basis. In September 2018, the Parent Company filed a shelf registration statement with the SEC that allows the Company to issue an indefinite amount of debt securities, in one or more series, from time to time until September 2021. In August 2018, the Parent Company filed a shelf registration with Japanese regulatory authorities that allows the Parent Company to conduct public offerings of bonds in Japan, including yen-denominated Samurai notes, up to ¥200 billion or its equivalent through August 2020. The shelf registration statement is for possible public offerings in Japan, but the bonds issued under the shelf may be transferred by the bondholders to U.S. persons in compliance with U.S. law. The Company believes outside sources for additional debt and equity capital, if needed, will continue to be available. Additionally, as of March 31, 2020, the Parent Company and Aflac had four lines of credit with third parties as well as six intercompany lines of credit. For additional information, see Note 8 of the Notes to the Consolidated Financial Statements.

The primary uses of cash by the Parent Company are shareholder dividends, the repurchase of its common stock and interest on its outstanding indebtedness and operating expenses.

The Company's financial statements convey its financing arrangements during the periods presented. The Company has not engaged in material intra-period short-term financings during the periods presented that are not otherwise reported in its balance sheet or disclosed therein. The Company was in compliance with all of the covenants of its notes payable and lines of credit at March 31, 2020. The Company has not entered into transactions involving the transfer of financial assets with an obligation to repurchase financial assets that have been accounted for as a sale under applicable accounting standards, including securities lending transactions. See Notes 3 and 4 of the Notes to the Consolidated Financial Statements and Notes 1, 3, and 4 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report for more information on the Company's securities lending and derivative activities. With the exception of disclosed activities in those referenced footnotes and the Risk Factors in the 2019 Annual Report entitled, "The Company is exposed to foreign currency fluctuations in the yen/dollar exchange rate" and "Lack of availability of acceptable yen-denominated investments could adversely affect the Company's results of operations, financial position or liquidity," the Company does not have a known trend, demand, commitment, event or uncertainty that would reasonably result in its liquidity increasing or decreasing by a material amount.

Consolidated Cash Flows

The Company translates cash flows for Aflac Japan’s yen-denominated items into U.S. dollars using weighted-average exchange rates. In periods when the yen weakens, translating yen into dollars causes fewer dollars to be reported. When the yen strengthens, translating yen into dollars causes more dollars to be reported.

The following table summarizes consolidated cash flows by activity for the three-month periods ended March 31.

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(In millions)	2020			2019
Operating activities	$	1,414		$	1,544
Investing activities	(1,716		)	(1,291		)
Financing activities	(446		)	(686		)
Exchange effect on cash and cash equivalents	0			(12		)
Net change in cash and cash equivalents	$	(748	)	$	(445	)

Operating Activities

The principal cash inflows for the Company's insurance activities come from insurance premiums and investment income. The principal cash outflows are the result of policy claims, operating expenses, income tax, as well as interest expense. As a result of policyholder aging, claims payments are expected to gradually increase over the life of a policy. Therefore, future policy benefit reserves are accumulated in the early years of a policy and are designed to help fund future claims payments.

The Company expects its future cash flows from premiums and investment portfolios to be sufficient to meet its cash needs for benefits and expenses.

Investing Activities

The Company's investment objectives provide for liquidity primarily through the purchase of publicly traded investment-grade debt securities. Prudent portfolio management dictates that the Company attempts to match the duration of its assets with the duration of its liabilities. Currently, when the Company's fixed maturity securities mature, the proceeds may be reinvested at a yield below that required for the accretion of policy benefit liabilities on policies issued in earlier years. However, the long-term nature of the Company's business and its strong cash flows provide the Company with the ability to minimize the effect of mismatched durations and/or yields identified by various asset adequacy analyses. From time to time or when market opportunities arise, the Company disposes of selected fixed maturity securities that are available for sale to improve the duration matching of assets and liabilities, improve future investment yields, and/or re-balance its portfolio. As a result, dispositions before maturity can vary significantly from year to year.

As part of its overall corporate strategy, the Company has committed $400 million to Aflac Ventures, LLC (Aflac Ventures), as opportunities emerge. Aflac Ventures is a subsidiary of Aflac Corporate Ventures, LLC (Aflac Corporate Ventures) which is reported in the Corporate and Other segment. The central mission of Aflac Corporate Ventures is to support the organic growth and business development needs of Aflac Japan and Aflac U.S. with emphasis on digital applications designed to improve the customer experience, gain efficiencies, and develop new markets in an effort to enhance and defend long-term shareholder value. Investments are included in equity securities or the other investments line in the consolidated balance sheets.

As part of an arrangement with FHLB, Aflac U.S. obtains low-cost funding from FHLB supported by acceptable forms of collateral pledged by Aflac U.S. In the first three months of 2020, Aflac U.S. borrowed and repaid $118 million under this program. As of March 31, 2020, Aflac U.S. had outstanding borrowings of $380 million reported in its balance sheet. To further support liquidity and capital resources amid the pandemic, Aflac U.S. increased its internal limit for borrowings under this program to $800 million, $300 million of which the Company has designated to be used for short-term liquidity needs only and subject to qualified collateral availability and other conditions.

See Note 3 of the Notes to the Consolidated Financial Statements for details on certain investment commitments.

Financing Activities

Consolidated cash used by financing activities was $446 million in the first three months of 2020, compared with consolidated cash used by financing activities of $686 million for the same period of 2019.

In March 2020, the Parent Company issued four series of senior notes totaling ¥57.0 billion through a public debt offering under its U.S. shelf registration statement. The first series, which totaled ¥12.4 billion, bears interest at a fixed rate of .300% per annum, payable semi­annually and will mature in September 2025. The second series, which totaled ¥13.3 billion, bears interest at a fixed rate of .550% per annum, payable semi-annually, and will mature in March 2030. The third series, which totaled ¥20.7 billion, bears interest at a fixed rate of .750% per annum, payable semi­annually and will mature in March 2032. The fourth series, which totaled ¥10.6 billion, bears interest at a fixed rate of .830% per annum, payable semi-annually, and

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will mature in March 2035. These notes may only be redeemed before maturity, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance.

In January 2020, the Parent Company used the net proceeds from senior notes issued in December 2019 to redeem $350 million of its 4.00% fixed-rate senior notes due February 2022.

See Note 8 of the Notes to the Consolidated Financial Statements for further information on the debt issuance discussed above.

The Company was in compliance with all of the covenants of its notes payable and lines of credit at March 31, 2020.

Cash returned to shareholders through treasury stock purchases and dividends was $644 million during the three-month period ended March 31, 2020, compared with $685 million during the three-month period ended March 31, 2019.

The following tables present a summary of treasury stock activity during the three-month periods ended March 31.

Treasury Stock Purchased

(In millions of dollars and thousands of shares)	2020		2019
Treasury stock purchases	$	449	$	490
Number of shares purchased:
Share repurchase program	9,984		10,237
Other	508		561
Total shares purchased	10,492		10,798

Treasury Stock Issued

(In millions of dollars and thousands of shares)	2020		2019
Stock issued from treasury:
Cash financing	$	9	$	12
Noncash financing	17		18
Total stock issued from treasury	$	26	$	30
Number of shares issued	740		939

During the first three months of 2020, the Company repurchased 10.0 million shares of its common stock for $449 million as part of its share repurchase program. As of March 31, 2020, a remaining balance of 27.1 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its board of directors. For information on the impact of COVID-19 on the Company's share repurchase program, see the Executive Summary section of this MD&A.

Cash dividends paid to shareholders were $.28 per share in the first quarter of 2020, compared with $.27 per share in the first quarter of 2019. The following table presents the dividend activity for the three-month periods ended March 31.

(In millions)	2020		2019
Dividends paid in cash	$	195	$	195
Dividends through issuance of treasury shares	7		8
Total dividends to shareholders	$	202	$	203

In April 2020, the board of directors declared the second quarter cash dividend of $.28 per share, an increase of 3.7% compared with the same period in 2019. The dividend is payable on June 1, 2020 to shareholders of record at the close of business on May 20, 2020.

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Regulatory Restrictions

Aflac, CAIC and TOIC are domiciled in Nebraska and are subject to its regulations. Subsequent to the Japan branch conversion to a subsidiary, Aflac Japan is domiciled in Japan and subject to local regulations. A life insurance company’s statutory capital and surplus is determined according to rules prescribed by the National Association of Insurance Commissioners (NAIC), as modified by the insurance department in the insurance company’s state of domicile. Statutory accounting rules are different from U.S. GAAP and are intended to emphasize policyholder protection and company solvency. Similar laws apply in New York, the domiciliary jurisdiction of Aflac New York.

The continued long-term growth of the Company's business may require increases in the statutory capital and surplus of its insurance operations. Aflac’s insurance operations may secure additional statutory capital through various sources, such as internally generated statutory earnings, reduced dividends paid to the Parent Company, capital contributions by the Parent Company from funds generated through debt or equity offerings, or reinsurance transactions. The NAIC’s RBC formula is used by insurance regulators to help identify inadequately capitalized insurance companies. The RBC formula quantifies insurance risk, business risk, asset risk and interest rate risk by weighing the types and mixtures of risks inherent in the insurer’s operations. As of March 31, 2020, Aflac’s RBC ratio remains high and reflects a strong capital and surplus position.

The maximum amount of dividends that can be paid to the Parent Company by Aflac, CAIC and TOIC without prior approval of Nebraska's director of insurance is the greater of the net income from operations, which excludes net investment gains, for the previous year determined under statutory accounting principles, or 10% of statutory capital and surplus as of the previous year-end. Dividends declared by Aflac during 2020 in excess of $864 million would be considered extraordinary and require such approval. Similar laws apply in New York, the domiciliary jurisdiction of Aflac New York.

In addition to limitations and restrictions imposed by U.S. insurance regulators, the Japan subsidiary is required to meet certain financial criteria as governed by Japanese corporate law in order to provide dividends to the Parent Company. Under these criteria, dividend capacity at the Japan subsidiary is basically defined as total equity excluding common stock, accumulated other comprehensive income amounts, capital reserves (representing statutorily required amounts in Japan) but reduced for net after-tax unrealized losses on available-for-sale securities. These dividend capacity requirements are generally aligned with the SMR. Japan's FSA maintains its own solvency standard which is quantified through the SMR. Aflac Japan's SMR is sensitive to interest rate, credit spread, and foreign exchange rate changes, therefore the Company continues to evaluate alternatives for reducing this sensitivity, including the reduction of subsidiary dividends paid to the Parent Company and Parent Company capital contributions. In the event of a rapid change in market risk conditions causing SMR to decline, the Company has one senior unsecured revolving credit facility in the amount of ¥100 billion and a committed reinsurance facility in the amount of approximately ¥110 billion as a capital contingency plan. Additionally, the Company could take action to enter into derivatives on unhedged U.S. dollar-denominated investments with foreign currency options or forwards. (See Notes 7 and 8 of the Notes to the Consolidated Financial Statements for additional information.)

The Company has already undertaken various measures to mitigate the sensitivity of Aflac Japan's SMR. For example, the Company employs policy reserve matching (PRM) investment strategies, which is a Japan-specific accounting treatment that reduces SMR interest rate sensitivity since PRM-designated investments are carried at amortized cost consistent with corresponding liabilities. In order for a PRM-designated asset to be held at amortized cost, there are certain criteria that must be maintained. The primary criterion relates to maintaining the duration of designated assets and liabilities within a specified tolerance range. If the duration difference is not maintained within the specified range without rebalancing, then a certain portion of the assets must be re-classified as available for sale and held at fair value with any associated unrealized gain or loss recorded in surplus. To rebalance, assets may need to be sold in order to maintain the duration with the specified range, resulting in realizing a gain or loss from the sale. For U.S. GAAP, PRM investments are categorized as available for sale. The Company also uses foreign currency derivatives to hedge a portion of its U.S. dollar-denominated investments. (See Notes 3, 4 and 8 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report for additional information on the Company's investment strategies, hedging activities, and reinsurance, respectively.)

As of March 31, 2020, Aflac Japan's SMR remains high and reflects a strong capital and surplus position. The Company is committed to maintaining strong capital levels throughout the pandemic. For additional information see the Executive Summary COVID 19 section of this MD&A.

Privacy and Cybersecurity Governance

The Company’s Board of Directors has adopted an information security policy directing management to establish and operate a global information security program with the goals of monitoring existing and emerging threats and ensuring that the Company’s information assets and data, and the data of its customers, are appropriately protected from loss or theft. The Board has delegated oversight of the Company’s information security program to the Audit and Risk Committee. The

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Company’s senior officers, including its Global Security and Chief Information Security Officer, are responsible for the operation of the global information security program and regularly communicate with the Audit and Risk Committee on the program, including with respect to the state of the program, compliance with applicable regulations, current and evolving threats, and recommendations for changes in the information security program. The global information security program also includes a cybersecurity incident response plan that is designed to provide a management framework across Company functions for a coordinated assessment and response to potential security incidents. This framework establishes a protocol to report certain incidents to the Global Security and Chief Information Security Officer and other senior officers, with the goal of timely assessing such incidents, determining applicable disclosure requirements and communicating with the Audit and Risk Committee. The incident response plan directs the executive officers to report certain incidents immediately and directly to the Lead Non-Management Director.

Other

For information regarding commitments and contingent liabilities, see Note 13 of the Notes to the Consolidated Financial Statements.

Additional Information

Investors should note that the Company announces material financial information in its SEC filings, press releases and public conference calls. In accordance with SEC guidance, the Company may also use the Investor Relations section of the Company's website (http://investors.aflac.com) to communicate with investors about the Company. It is possible that the financial and other information the Company posts there could be deemed to be material information. The information on the Company's website is not part of this document. Further, the Company's references to website URLs are intended to be inactive textual references only.

CRITICAL ACCOUNTING ESTIMATES

The Company prepares its financial statements in accordance with U.S. GAAP. These principles are established primarily by the Financial Accounting Standards Board (FASB). In this MD&A, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification^™ (ASC). The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates based on currently available information when recording transactions resulting from business operations. The estimates that the Company deems to be most critical to an understanding of Aflac’s results of operations and financial condition are those related to the valuation of investments and derivatives, DAC, liabilities for future policy benefits and unpaid policy claims, and income taxes. The preparation and evaluation of these critical accounting estimates involve the use of various assumptions developed from management’s analyses and judgments. The application of these critical accounting estimates determines the values at which 94% of the Company's assets and 80% of its liabilities are reported as of March 31, 2020, and thus has a direct effect on net earnings and shareholders’ equity. Subsequent experience or use of other assumptions could produce significantly different results.

There have been no changes in the items the Company has identified as critical accounting estimates during the three months ended March 31, 2020, with the exception of the recognition of lifetime credit losses required in accordance with the adoption of ASC 326 - Financial Instruments - Credit Losses. See Note 3 of the Notes to the Consolidated Financial Statements for further information on the Company’s current expected credit loss estimation methodology. For additional information, see the Critical Accounting Estimates section of MD&A included in the 2019 Annual Report.

New Accounting Pronouncements

For information on new accounting pronouncements and the impact, if any, on the Company's financial position or results of operations, see Note 1 of the Notes to the Consolidated Financial Statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company is exposed primarily to the following types of market risks: currency risk, interest rate risk, credit risk and equity risk. The Company regularly monitors its market risks and uses a variety of strategies to manage its exposure to these market risks. A description of the Company's market risk exposures may be found under “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A, of the 2019 Annual Report. There have been changes to the Company's market risk exposures from the market risk exposures previously disclosed in the 2019 Annual Report except as outlined below.

As a result of recent market volatility caused by the COVID-19 pandemic, the Company has marginally widened and lowered the size of the collars it maintains on a portion of its US dollar program to mitigate against more extreme moves in foreign

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exchange rates. The Company is evaluating other adjustments to mitigate credit risk, including the possibility of hedging additional U.S. dollar-denominated investments.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this quarterly report (the Evaluation Date). Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) during the first fiscal quarter of 2020 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is a defendant in various lawsuits considered to be in the normal course of business. Members of the Company's senior legal and financial management teams review litigation on a quarterly and annual basis. The final results of any litigation cannot be predicted with certainty. Although some of this litigation is pending in states where large punitive damages, bearing little relation to the actual damages sustained by plaintiffs, have been awarded in recent years, the Company believes the outcome of pending litigation will not have a material adverse effect on its financial position, results of operations, or cash flows.

Item 1A. Risk Factors

The following should be read in conjunction with and supplements and amends the risk factors that may affect the Company’s business or operations described under “Risk Factors” in Part I, Item 1A. of the Company's 2019 Annual Report on Form 10-K for the year ended December 31, 2019.

Major public health issues, and specifically the novel coronavirus COVID-19 and any resulting economic effects, could have an adverse impact on the Company's financial condition and results of operations and other aspects of its business.

The Company is closely monitoring developments related to the COVID-19 pandemic to assess its impact on the Company's business; while, due to the evolving and highly uncertain nature of this event, it currently is not possible to estimate its impact precisely, the COVID-19 pandemic could impact the Company's business, financial condition, results of operations, capital position, liquidity or prospects in a number of ways, and may cause changes, which also cannot be determined at this time, to estimates of future earnings, capital deployment and other guidance the Company has provided to the markets under “2020 Outlook” in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” on pages 36 and 37 of the Company's Annual Report on Form 10-K for the year ended December 31, 2019.

As a result of the COVID-19 pandemic, the Company may also face increased costs associated with claims under its policies, an increased number of customers experiencing difficulty paying premiums or policies being designated as “no lapse” for periods of time. In particular, Aflac U.S. may experience higher lapses due to the higher concentration of its inforce being associated with small business and a correlation in lapse rates and unemployment. These small businesses may be disproportionately negatively impacted by the economic uncertainty surrounding COVID-19. The cost of reinsurance to the Company for these policies could increase, and the Company may encounter decreased availability of such reinsurance.

The Company's investment portfolio including the creditworthiness and valuation of investment assets, as well as availability of new investments has been, and may continue to be, adversely affected as a result of market developments related to the COVID-19 pandemic and uncertainty regarding its ultimate severity and duration. These impacts have included or may include extreme asset price volatility, lack of market liquidity, credit rating downgrades, payment defaults, asset restructurings, increased losses, and other risks as the world experiences an unprecedented shock to economic activity. The Company has evaluated its holdings and identified those investments most exposed to the negative impacts of an economic downturn as a result of COVID-19, including investments in businesses facing an immediate and severe impact such as travel and lodging, leisure, non-emergency medical, energy, and others involving large gatherings of people, as well as other investments. These investments are experiencing and may continue to experience higher credit losses, credit rating downgrades and/or defaults. In addition, volatility in oil prices and reduction in global energy demand could have a continued adverse impact on issuers in the energy sector. While we have identified assets impacted or expected to be impacted by COVID-19 and its consequences, other investments not identified to date may also be impacted. The availability of new investments primarily in certain private market asset classes, such as middle market loans, commercial mortgages and transitional real estate, has been and may continue to be limited. Interest rates have declined in response to the pandemic, and a sustained reduction in interest rates globally could result in new investments generating lower yields than in prior periods. The Company may need to adjust its investment strategy and/or be forced to liquidate investments to pay claims. Actions of governments and central banks in response to COVID-19 described above may not be adequate to fully address its impact. Changes in interest rates, reduced liquidity or a continued slowdown in U.S., Japan or global economic conditions may also adversely affect the Company's business, financial condition, results of operations, capital position, liquidity or prospects. Further, extreme market volatility may leave the Company unable to react to market events in a prudent manner consistent with its historical practices when dealing with more orderly markets. Extreme market volatility in interest or foreign exchange rates may require the posting of collateral associated with derivative positions and may require the Company to make adjustments in its hedging program in order to maintain liquidity, capital ratios in the U.S. and Japan and mitigate hedging costs or settlement risk. COVID-19 has resulted in unprecedented disruption of markets and business activity globally, and the Company is not able to predict the

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duration of such disruption or the ultimate impact of COVID-19 on the Company’s investments and hedging programs. See the risk factor entitled, "The valuation of the Company's investments and derivatives includes methodologies, estimations and assumptions which are subject to differing interpretations and could adversely affect the Company's results of operations or financial condition" in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 for more information. See the “Investments” and “Results of Operations by Segment” sections of Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, for more information. Also see the risk factor entitled “The Company is exposed to significant interest rate risk, which may adversely affect its results of operations, financial condition and liquidity” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for more information.

While governmental efforts in both Japan and the U.S. in response to the COVID-19 pandemic are significant and unprecedented, there can be no assurance that these interventions will be effective to mitigate adverse impacts on financial markets and on the Company’s investment portfolio. Further, the effects of the pandemic and the response of governmental entities, public health authorities and private entities on the U.S., Japan and global economies cannot be predicted. For example, during the five weeks beginning March 22, unemployment claims in the U.S. totaled approximately over 26 million. The pace and magnitude of this number of claims, the significant government responses to date, and the continuing effort to contain the growth of COVID-19 in the U.S., among other factors, introduces significant uncertainty about the severity and duration of the pandemic’s effects on the U.S. economy. The Company also cannot predict how legal and regulatory responses to concerns about COVID-19 and related public health issues, including the possible extension of insurance coverage beyond the Company's policy language, will affect its business. The extent to which the pandemic will impact the Company's business, results of operations, financial condition, capital position, liquidity or prospects, as well as those of its customers, agents, brokers and other distribution partners, vendors and counterparties, will depend on future developments which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions taken to contain or treat its impact.

Policies issued by Aflac Japan and Aflac U.S. are primarily sold and enrolled in person through face-to-face interaction. Likewise, recruiting of new agents and brokers largely occurs through in-person contact. The ability of individual agents and agencies, strategic alliance partners, brokers and other distribution partners to make sales in Japan and the U.S. and the ability to conduct agent and broker recruiting has been significantly reduced by efforts to mitigate the effects of the pandemic, including social distancing guidelines issued by public health authorities and/or other authorities, government shelter in place orders or requirements, and requests or orders by employers that their employees work remotely. Further, in both Japan and the U.S., a significant amount of sales have historically been made to individuals and businesses who may, in light of the economic and social effects of the pandemic and for an indeterminate amount of time, lack the certainty or financial resources to purchase the Company’s products or maintain premium payments on policies already purchased. For example, over 400,000 of the Aflac U.S. business accounts are small businesses with under 100 employees. Further, even when government and public health authorities begin to phase out or withdraw shelter in place orders or requirements and social distancing guidelines issued to date, businesses and individuals may voluntarily continue to exercise social distancing techniques, which may hinder sales of the Company’s products in Japan and the U.S. The Company cannot predict with certainty the impact of these events on its distribution channels and financial results in the Aflac Japan and Aflac U.S. segments. However, the Company currently anticipates that the impact may be more acute for Aflac U.S. due to the higher number of confirmed COVID-19 cases and deaths in the U.S. to date compared with Japan, both in absolute terms and in proportion to national populations, as well as the historically lower rate of persistency in the Aflac U.S. business; the Company also considers that most Aflac U.S. business customers, and most of the independent agents in its agency channel, are small businesses who may lack the financial resources to weather an economic downturn, which the Company expects will impact sales throughout and possibly beyond 2020. Aflac U.S. also anticipates an increase in policy lapses in the second or third quarter of 2020 as premium grace periods begin to expire. See the risk factors entitled “Sales of the Company's products and services are dependent on its ability to attract, retain and support a network of qualified sales associates, brokers and employees in the U.S. and sales associates and other distribution partners in Japan” and “Difficult conditions in global capital markets and the economy could have a material adverse effect on the Company's investments, capital position, revenue, profitability, and liquidity and harm the Company's business” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for more information.

In addition, sales of Aflac Japan cancer products continue to be materially lower to date in 2020 due to events related to the Japan Post investigation, which the Company expects will be exacerbated by the effects of COVID-19. See the risk factor entitled “Events related to the ongoing Japan Post investigation and other matters regarding sales of Japan Post Insurance products could negatively impact the Company’s sales and results of operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for more information.

Further, the Company's operations, as well as those of its vendors, service providers and counterparties, may also be adversely affected by the COVID-19 pandemic or the mitigation efforts outlined above. The business and operational impacts of extended periods of working from home cannot be predicted with certainty and may have an adverse impact on the Company’s ability to conduct its business. On April 7, 2020, the Japan government declared a state of emergency in seven

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prefectures including Tokyo and Osaka, where the Company’s primary Japan operations are located, and requested that companies in these prefectures reduce the number of employees coming into the office by 70% or more, and on April 16, 2020 the state of emergency was expanded nationwide with a stated expiration date of May 6, 2020. In the U.S., statewide shelter in place or stay at home orders are currently in effect across the majority of states, with a small number of states adopting partial shelter in place orders or other statewide social distancing restrictions. The governors of the states of Georgia, New York and South Carolina, where the Company’s primary U.S. operations are located, issued statewide shelter in place orders on April 2, March 20 and April 6, 2020, respectively. These orders may be extended or further orders may be issued requiring the Company, the agents, brokers and other distribution partners selling its products, and the Company’s current and prospective customers to maintain remote working and other forms of social distancing for an indeterminate time. In the U.S. and Japan, the Company has over 98% and 70%, respectively, of its employees working from home. The Company expects to ultimately implement return to work plans for Aflac Japan and Aflac U.S. that will be based upon multiple factors including government mandates, guidelines issued by public health authorities, and the location and job responsibilities of specific Company personnel. Such plans may be implemented in stages over an extended period of time, but the Company may nevertheless experience operational disruptions when employees return to work. While a few states, including Georgia, have started to relax shelter in place orders, the impact of these initiatives, including their sustainability is uncertain.

The assumptions and estimates that the Company uses in establishing premiums and reserves depend on the Company's judgment regarding the likelihood of future events and are inherently uncertain, including without limitation in regard to the effects of COVID-19. See the risk factor entitled “If future policy benefits, claims or expenses exceed those anticipated in establishing premiums and reserves, the Company's financial results would be adversely affected” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for more information.

See the “Executive Summary” section of Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, for more information.

Events related to the ongoing Japan Post investigation and other matters regarding sales of Japan Post Insurance products could negatively impact the Company’s sales and results of operations

As previously disclosed, in the second half of 2019 and the first quarter of 2020 there have been news reports and public comments regarding improper sales practices relating to sales of Japan Post Insurance Co., LTD (JPI) products by JPI and Japan Post Co., LTD (JPC) each an affiliate of Japan Post Holdings (together with JPI and JPC, the Japan Post Group). JPC and JPI are important distribution and alliance partners of the Company, which in 2018 collectively accounted for approximately 25% of Aflac Japan’s third sector sales. On July 24, 2019, after such news reports and other public comments, the Japan Post Group announced that they had established a Special Investigative Committee comprised of independent former prosecutors to determine whether JPC and JPI sales practices with respect to JPI products had caused disadvantages to customers holding such policies that were not otherwise the result of honoring such customers’ intentions.

On December 18, 2019, the Japan Post Group issued a release discussing results of the investigation and stating that JPI had identified a number of cases involving potential violation of laws and regulations or internal rules. On the same date, the Japan Post Group stated that it would continue the investigation with a goal of completing it by March 2020. On December 27, 2019, Japan’s Financial Services Agency (FSA) issued three-month business suspension orders to JPC and JPI for the sale of JPI insurance products, and Japan’s Ministry of Internal Affairs and Communications (MIC) also issued a three-month business suspension order to JPC for the sale of JPI insurance products. Also on December 27, 2019, the Japan Post Group announced the resignation of the chief executives of Japan Post Holdings, JPC and JPI, to be effective January 5, 2020. On January 31, 2020, the Japan Post Group announced that its internal investigation had been expanded to additional policyholders and the investigation would continue with a goal of completing it by the end of June 2020. On March 25, 2020, the Japan Post Group announced that they had decided not to restart ordinary sales activities regarding JPI products after the end of the FSA and MIC business suspension orders on March 31, 2020, including that the Japan Post Group would refrain from making any sales of JPI insurance products through April 19 and would thereafter refrain from making proactive sales of JPI insurance products (but would accept customer applications for JPI insurance products). The Japan Post Group has not made an announcement on expected timing to re-initiate proactive sales of JPI insurance products. On March 26, 2020, the Special Investigative Committee announced the final report regarding the eight-month investigation on inappropriate sales practices for JPI products. On March 31, 2020, the Japan Post Group announced that the investigations of policies have been completed as of the end of March, and the additional investigation of all insurance policies is proceeding as planned to be completed by the end of June 2020.

While the sale of Aflac Japan cancer insurance products was not within the scope of the JPI investigation, the business suspension orders, or the Japan Post Group’s decision to refrain from making proactive sales of JPI products as outlined above, beginning in August 2019 the Company has experienced a material decrease of sales in the Japan Post Group

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channel. This decline has continued into 2020. The Company believes that sales of Aflac Japan cancer insurance through JPC and JPI are unlikely to return to 2018 levels in the near term. It is uncertain what long-term effect these developments will have on the Company’s results of operations or financial condition, but any such effects could be material. See the "Aflac Japan Segment" subsection of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

During the first three months of 2020, the Company repurchased shares of its common stock as follows:

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum     Number of     Shares that     May Yet Be     Purchased     Under the     Plans or     Programs
January 1 - January 31	3,906,085		$	52.61	3,906,085	33,147,528
February 1 - February 29	2,870,531		50.93		2,367,300	30,780,228
March 1 - March 31	3,715,439		33.46		3,710,430	27,069,798
Total	10,492,055	(1)	$	45.37	9,983,815	27,069,798

⁽¹⁾During the first three months of 2020, 508,240 shares were purchased in connection with income tax withholding obligations related to the vesting of restricted-share-based awards during the period.

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Item 6. Exhibits

(a)	EXHIBIT INDEX
	3.0	-	Articles of Incorporation, as amended – incorporated by reference from Form 10-Q for June 30, 2008, Exhibit 3.0.
	3.1	-	Bylaws of the Corporation, as amended and restated – incorporated by reference from Form 8-K dated April 6, 2020, Exhibit 3.1.
	4.0	-	There are no instruments with respect to long-term debt not being registered in which the total amount of securities authorized exceeds 10% of the total assets of Aflac Incorporated and its subsidiaries on a consolidated basis. The Company agrees to furnish a copy of any long-term debt instrument to the Securities and Exchange Commission upon request.
	4.1	-	Twenty-Third Supplemental Indenture, dated as of March 12, 2020, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 0.300% Senior Note due 2025) – incorporated by reference from Form 8-K dated March 12, 2020, Exhibit 4.1.
	4.2	-	Twenty-Fourth Supplemental Indenture, dated as of March 12, 2020, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 0.550% Senior Note due 2030) – incorporated by reference from Form 8-K dated March 12, 2020, Exhibit 4.2.
	4.3	-	Twenty-Fifth Supplemental Indenture, dated as of March 12, 2020, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 0.750% Senior Note due 2032) – incorporated by reference from Form 8-K dated March 12, 2020, Exhibit 4.3.
	4.4	-	Twenty-Sixth Supplemental Indenture, dated as of March 12, 2020, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 0.830% Senior Note due 2035) – incorporated by reference from Form 8-K dated March 12, 2020, Exhibit 4.4.
	4.5	-	Twenty-Seventh Supplemental Indenture, dated as of April 1, 2020, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including the form of 3.60% Senior Note due 2030) – incorporated by reference from Form 8-K dated April 1, 2020, Exhibit 4.1.
	10.1*	-	Aflac Japan Officer Agreement with Masatoshi Koide, effective January 1, 2020.
	10.2	-	Agency Services Agreement, dated March 1, 2008, by and between Japan Post Network Co., Ltd. and Aflac.
	10.3**	-	Amendment Agreement to Agency Services Agreement, dated June 27, 2016, by and between Japan Post Co., Ltd. and Aflac.
	31.1	-	Certification of CEO dated April 30, 2020, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
	31.2	-	Certification of CFO dated April 30, 2020, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
	32	-	Certification of CEO and CFO dated April 30, 2020, pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	101.INS	-	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
	101.SCH	-	Inline XBRL Taxonomy Extension Schema.
	101.CAL	-	Inline XBRL Taxonomy Extension Calculation Linkbase.
	101.DEF	-	Inline XBRL Taxonomy Extension Definition Linkbase.
	101.LAB	-	Inline XBRL Taxonomy Extension Label Linkbase.
	101.PRE	-	Inline XBRL Taxonomy Extension Presentation Linkbase.
	104	-	Cover Page Interactive Data File - formatted as Inline XBRL and contained in Exhibit 101.

*	Management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 6 of this report
**	Portions of this exhibit have been redacted in compliance with Regulation S-K Item 601(b)(10).

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Glossary of Selected Terms

Throughout this Quarterly Report on Form 10-Q, the Company may use certain performance metrics and other terms which are defined below.

Adjusted Earnings Per Diluted Share Excluding the Impact of Foreign Currency – Adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management’s control. Adjusted revenues are U.S. GAAP total revenues excluding net investment gains and losses, except for amortized hedge costs/income related to foreign currency exposure management strategies and net interest cash flows from derivatives associated with certain investment strategies. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the company’s insurance operations and that do not reflect Aflac’s underlying business performance. The most comparable U.S. GAAP measure is net earnings. 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 most comparable U.S. GAAP measure is net earnings per share. This metric is then adjusted using the average yen/dollar exchange rate for the comparable prior year period, which eliminates dollar based fluctuations driven solely from currency rate changes.

Adjusted Net Investment Income - Net Investment Income adjusted for amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity and net interest cash flows from derivatives associated with certain investment strategies, which are reclassified from net investment gains and (losses) to net investment income. The metric is used in segment reporting as a component of segment profitability.

Affiliated Corporate Agency – Agency in Japan directly affiliated with a specific corporation that sells insurance policies primarily to its employees.

Annualized Premiums in Force – the amount of gross premium that a policyholder must pay over a full year in order to keep coverage. The growth of net premiums (defined below) is directly affected by the change in premiums in force and by the change in weighted-average yen/dollar exchange rates.

Average Weekly Producer – The total number of writing associates who have produced greater than $0.00 during the production week - excluding any manual adjustments divided by the number of weeks in the time period. The Company believes this metric allows sales management to monitor progress and needs, as well as serve as a leading indicator of future production capacity.

Capital Buffer – Established dollar amount of liquidity at the Parent Company reserved for injecting capital into the insurance entities or general liquidity support for general expenses at the Parent Company. Currently, the capital buffer is $1.0 billion and is part of $2.0 billion minimum balance at the Parent Company.

Earnings Per Basic Share – Net earnings divided by weighted-average number of shares outstanding for the period.

Earnings Per Diluted Share – Net earnings divided by the weighted-average number of shares outstanding for the period plus the weighted-average shares for the dilutive effect of share-based awards outstanding.

Group Insurance – Insurance issued to a group, such as an employer or trade association, that covers employees or association members and their dependents through certificates of coverage.

Individual Insurance – Insurance issued to an individual with the policy designed to cover that person and his or her dependents.

In-force Policies – A count of policies that are active contracts at the end of a period.

Liquidity Support – Internally defined and established dollar amount of liquidity reserved for supporting potential collateral and settlements of derivatives at the Parent Company. Currently, the liquidity support is $1.0 billion and is part of the $2.0 billion minimum balance at the Parent Company.

Net Investment Income – The income derived from interest and dividends on invested assets, after deducting investment expenses.

Net Premiums – (sometimes referred to as net premium income or net earned premiums) is a financial measure that appears on the Company's Consolidated Statements of Earnings and in its segment reporting. This measure reflects collected or due premiums that have been earned ratably on policies in force during the reporting period, reduced by premiums that have been ceded to third parties and increased by premiums assumed through reinsurance.

New Annualized Premium Sales – (sometimes referred to as new sales or sales) An operating measure that is not reflected on the Company's financial statements. New annualized premium sales generally represent annual premiums on policies the Company sold and incremental increases from policy conversions that would be collected over a 12-month period assuming the policies remain in force for that entire period. For Aflac Japan, new annualized premium sales are determined by applications submitted during the reporting period. For Aflac U.S., new

102

annualized premium sales are determined by applications. that are issued during the reporting period. Policy conversions are defined as the positive difference in the annualized premium when a policy upgrades in the current reporting period.

New Money Yield – Gross yields earned on purchases of fixed maturities, loan receivables, and equities. Purchases exclude capitalized interest, securities lending/repurchase agreements, short-term/cash activity, and alternatives. New money yield for equities is based on the assumed dividend yield at the time of purchase. The new money yield for Aflac Japan excludes the impact of any derivatives and associated amortized hedge costs associated with USD-denominated investments. Management uses this metric as a leading indicator of future investment earning potential.

Operating Ratios – Used to evaluate the Company's financial condition and profitability. Examples include: (1) Ratios to total adjusted revenues, which present expenses as a percentage of total revenues and (2) Ratios to total premium, including benefit ratio.

Persistency – Percentage of premiums remaining in force at the end of a period, usually one year. For example, 95% persistency would mean that 95% of the premiums in force at the beginning of the period were still in force at the end of the period.

Pretax Adjusted Earnings – Earnings as adjusted earnings (as defined above) before the application of income taxes.

Pretax Adjusted Profit Margin – Adjusted earnings divided by adjusted revenues, before taxes are applied. This measure is used in Aflac's segment reporting.

Return on Average Invested Assets – Net investment income as a percentage of average invested assets during the period. Management uses this metric to demonstrate how our actual net investment income results represent an overall return on the portfolio to provide a more comparative metric as the size of our investment portfolio changes over time.

Risk-based Capital (RBC) Ratio – Statutory adjusted capital divided by statutory required capital. This insurance ratio is based on rules prescribed by the National Association of Insurance Commissioners (NAIC) and provides an indication of the amount of statutory capital the insurance company maintains, relative to the inherent risks in the insurer’s operations.

Solvency Margin Ratio (SMR) – Solvency margin total divided by one half of the risk total. This insurance ratio is prescribed by the Japan Financial Services Agency (FSA) and is used for all life insurance companies in Japan to measure the adequacy of the company’s ability to pay

policyholder claims in the event actual risks exceed expected levels.

Statutory Earnings – Earnings determined according to accounting rules prescribed by the National Association of Insurance Commissioners (NAIC), as modified by the insurance department in the insurance company’s state of domicile. These statutory accounting rules are different from U.S. GAAP and are intended to emphasize policyholder protection and company solvency.

Weighted-Average Foreign Currency Exchange Rate –Japan segment operating earnings for the period (excluding hedge costs) in yen divided by Japan segment operating earnings for the period (excluding hedge costs) in dollars. Management uses this metric to evaluate and determine consolidated results on foreign currency effective basis.

103

Defined Terms

Throughout this Quarterly Report on Form 10-Q, the Company may use abbreviations, acronyms and defined terms which are defined below.

AFS	Available-for-Sale
AOCI	Accumulated Other Comprehensive Income
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
CARES	Coronavirus Aid, Relief, and Economic Security
CDSs	Credit Default Swaps
CMLs	Commercial Mortgage Loans
CSAs	Credit Support Annexes
DAC	Deferred Policy Acquisition Costs
DSCR	Debt Service Coverage Ratios
EPS	Earnings Per Share
FASB	Financial Accounting Standard Boards
FHLB	Federal Home Loan Bank of Atlanta
FSA	Japanese Financial Services Agency
HTM	Held-to-Maturity
ISDA	International Swaps and Derivatives Association, Inc.
ISOs	Incentive Stock Options
Japan Post Holdings	Japan Post Holdings Co., Ltd.
JGB	Japan Government Bond
LGD	Loss-Given-Default
LIBOR	London Interbank Offered Rate
LIPPC	Life Insurance Policyholder Protection Corporation
LTV	Loan-to-Value
MD&A	Management's Discussion and Analysis of Financial Condition and Results of Operations
MMLs	Middle Market Loans
MOF	Ministry of Finance
NAIC	National Association of Insurance Commissioners
NOLHGA	National Organization of Life and Health Guaranty Associations
NQSOs	Non-qualifying Stock Options
NRSROs	Nationally Recognized Statistical Rating Organizations
OTC	Over-the-Counter
PCD Financial Assets	Purchased Credit-Deteriorated Financial Assets
PD	Probability-of-Default
PPP	Paycheck Protection Program
PRM	Policy Reserve Matching
RBC	Risk-Based Capital
S&P	Standard & Poor's
SEC	Securities and Exchange Commission
SMI	Solvency Modernization Initiative
SMR	Solvency Margin Ratio
The Plan	Aflac Incorporated Long-Term Incentive Plan
TIBOR	Tokyo Interbank Market Rate
TREs	Transitional Real Estate Loans
TTM	Telegraphic Transfer Middle Rate
U.S. GAAP	U.S. Generally Accepted Accounting Principles
VIEs	Variable Interest Entities

104

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 thereunto duly authorized.

	Aflac Incorporated
April 30, 2020	/s/ Max K. Broden
	(Max K. Broden)
	Executive Vice President; Chief Financial Officer
April 30, 2020	/s/ June Howard
	(June Howard)
	Senior Vice President, Financial Services; Chief Accounting Officer

105

EX-10.1

Provisional Translation

Officer Agreement

Aflac Life Insurance Japan Ltd. (hereinafter referred to as "Aflac Japan"), Masatoshi Koide (hereinafter referred to as "Mr. Koide"), and Aflac Holdings LLC (hereinafter referred to as "AHLLC") agree as follows.

Article 1 (Officer Agreement)

1. This Agreement (hereinafter referred to as this "Agreement") is newly entered into by and between Aflac Japan and Mr. Koide by identifying the position of President within Aflac Japan (hereinafter referred to as the "Officer") as set forth in the following provisions.

2. Aflac Japan and Mr. Koide acknowledge that this Agreement is not an employment agreement but a delegation agreement.

3. Mr. Koide acknowledges that he has an obligation to comply with all the duties prescribed in this Agreement, the Officers Regulations of Aflac Japan (Shikko Yakuin Kitei, hereinafter referred to as the "Officers Regulations"), the Procedures for Treatment of Officers of Aflac Japan (Yakuin Shogu Yoryo, hereinafter referred to as the "Procedures for Treatment of Officers", together with the Officers Regulations collectively referred to as the Officers Regulations, etc.) and other rules and regulations of Aflac Japan. Mr. Koide fully recognizes work performance skills and business objectives required by Aflac Japan under this Agreement and acknowledges that he has an obligation to exercise such work performance skills and fulfill the business objectives. Mr. Koide agrees that, in case he cannot fulfill the foregoing duties, it is inevitable that Aflac Japan terminates this Agreement.

Article 2 (Incorporation of the Officers Regulations, etc., Supersession by the Letter and this Agreement)

1. Details of this Agreement shall be as prescribed in this Agreement and the Officers Regulations, etc. that form a part of this Agreement and are effective during the term of this Agreement.

2. If there is any conflict or inconsistency between the relevant documents, terms of this Agreement shall supersede terms of the Officers Regulations, etc.

3. If there is any conflict or inconsistency between the relevant documents, terms of "Letter of Understanding" entered by and between Aflac Incorporated and Mr. Koide as of April 26, 2017 shall supersede terms of this Agreement and the Officers Regulations, etc.

Article 3 (Term of Agreement)

1. The term of this Agreement shall be from January 1, 2020(including the said date) to December 31, 2020 (including the said date).

2. Renewal of this Agreement shall be as prescribed in the Officers Regulations.

Article 4 (Compensation, Special Bonus and Retirement Benefit)

1. Mr. Koide’s compensations shall be determined on an annual basis and his compensation during the term of this Agreement shall be 52,000,000 yen.

2. Payment method of compensations and retirement benefits shall be as prescribed in the Procedures for Treatment of Officers.

3. Special bonuses to Mr. Koide shall be as prescribed in the Procedures for Treatment of Officers.

4. Mr. Koide acknowledges that he retired as Vice President of American Family Life Assurance Company of Columbus on March 31, 2006 and received the retirement benefit prescribed below (hereinafter referred to as the retirement benefit paid). WhenAflac Japan provides retirement benefit to Mr. Koide, the amount calculated by subtracting the retirement benefit paid from the retirement benefit prescribed in the Procedures for Treatment of Officers shall be paid.

Retirement benefit paid: 40,800,000 yen

Provisional Translation

Article 5 (Non-Compete Obligations)

1. In consideration of his duties, status and treatment as President,Mr. Koide agrees not to engage in such Competitive Actions against Aflac Japan as specified below in relation to such Competitors as specified below without a written consent by Aflac Japan during his terms of office as President as well as for one year after the termination of this Agreement.

(1) Competitors

The "Competitors" means companies that fall under the category of any of the followings:

(a) Life insurance company of which any of the following index is ranked in top 5 (top 6 if Aflac Japan is ranked in top 5) of all life insurance companies at either of the two consecutive year-end book-closings in March immediately prior to the termination date of this Agreement;

•Number of new policies on cancer insurance, medical insurance or individual insurance in whole

•Number of policies in force on cancer insurance, medical insurance or individual insurance in whole

•Number of agencies

(b) Life insurance companies or non-life insurance companies mainly selling cancer insurance or medical insurance in Japan;

(c) Life insurance companies or non-life insurance companies who have launched any new product with respect to cancer insurance or medical insurance in Japan within two years immediately prior to the termination date of this Agreement or those in preparation for selling new products with respect to cancer insurance or medical insurance in Japan at the time of the termination of this Agreement;

(d) Any related companies that substantially control any company that falls into the categories (a) through (c); or

(e) Life insurance companies or non-life insurance companies engaging in agency service of a company that falls into categories (a) through (c).

(2) Competitive Actions

"Competitive Actions" means to engage in works of the Competitor(s) or support, help or consult with the Competitor(s) by engaging in any of the following acts:

(a) To become an officer (including operating officer) of the Competitor(s);

(b) To execute an employment agreement with the Competitor(s);

(c) To execute a consulting agreement, advisory agreement or any agreement other than employment agreement (whether it is continuous or not) with the Competitor(s); or

(d) To engage in any works of the Competitor(s) under any name or status including temporary staffing, contract for work, commission, secondment, etc.

2. Mr. Koide acknowledges and confirms that the consideration for fulfilling the obligation not to compete prescribed in Paragraph 1 above is included in the treatment (including any and all of compensations, special bonuses, retirement benefit, restricted stocks and others) Aflac Japan provides to him.

3. In the event that Mr. Koide is in violation of the provisions of Paragraph 1 above, Aflac Japan may file claim for damage, demand an injunction of any competitive work, or file other necessary legal claim.

Article 6 (Contact with Agencies, etc.)

In light of the responsibilities, status and treatment as an Officer, Mr. Koide agrees not to contact directly or indirectly any officer, employee, agency or group of Aflac Japan, or related parties thereof for the business engaged by any business operator which conducts a business that is the same as or similar to that of Aflac Japan (including competitors, etc. stipulated in the preceding Article) for one (1) year after the expiry of the Officers Agreement.

Provisional Translation

Article 7 (Dismissal)

Aflac Japan may terminate this Agreement in the event there is a reason that Mr. Koide falls into any of reasons for termination prescribed in the Officers Regulations.

Article 8 (Jurisdictional Court and Governing Law)

1. In relation to any dispute attributable to this Agreement, the Tokyo District (Summary) Court shall be the exclusive jurisdiction court of its first instance.

2. Execution, validity, interpretation and performance of this Agreement shall be governed by the laws of Japan.

Article 9 (Approval of All Shareholders)

1. AHLLC, as the sole shareholder of Aflac Japan, agrees to the terms and conditions of this Agreement and that Mr. Koide shall represent Aflac Japan in concluding this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement in triplicate by placing their signatures and seals hereon, upon verification and confirmation of Mr. Koide with regard to the contents of the Officers Regulations, etc., each party retains one copy thereof.

Aflac Japan:

Shinjuku Mitsui Building 2-1-1, Nishishinjuku, Shinjuku-ku, Tokyo

American Life Insurance Japan Ltd.

President and Representative Director Masatoshi Koide (seal)

Mr. Koide: (Address)

(Name)

AHLLC:

1932 Wynnton Road, Columbus, Georgia 31999

Aflac Holdings LLC

/s/ Daniel P. Amos

President Daniel P. Amos

EX-10.2

Provisional Translation

Agency Services Agreement

Japan Post Network Co., Ltd. (hereinafter referred to as “JPN”) and American Family Life Assurance Company of Columbus (hereinafter referred to as “Aflac”) hereby agree and enter into this Agreement regarding consignment of businesses related to solicitation of life insurance policies as follows.

March 1, 2008

JPN:

Address:        1-3-2, Kasumigaseki, Chiyoda-ku, Tokyo

Name:        Japan Post Network Co., Ltd.

Representative:    Shigeo Kawa, Chairman and Representative Director (seal)

Aflac:

Address: Shinjuku Mitsui Building, 2-1-1, Nishishinjuku, Shinjuku-ku,

Tokyo

Name:        American Family Life Assurance Company of Columbus

Representative:    Toru Tonoike, Representative in Japan (seal)

1

Provisional Translation

Article 1    Agency Services

1. Aflac shall entrust to JPN the services specified in the following Items (hereinafter referred to “Agency Services”) and JPN shall be entrusted to perform such services.

(1) Intermediary for conclusion of life insurance policies (hereinafter referred to as “Insurance Policies”) stipulated in Article 3 (hereinafter referred to as “Insurance Solicitations”);

(2) Communication of requests associated with the Insurance Policies from insurance policyholders (hereinafter referred to as “Policyholders”), insureds, and beneficiaries of claims and benefits to Aflac and delivery of documents consequently delivered to or received from Aflac;

(3) In addition to the preceding Items, maintain and manage Insurance Policies, including maintenance of Insurance Policies and provision of information to Policyholders; and

(4) Other services separately entrusted by Aflac.

2. JPN does not have the right to conclude Insurance Policies or receive declarations, money appropriated for first insurance premiums, or money appropriated for the second and subsequent insurance premiums. However, this shall not apply to the receipt of money appropriated for the first insurance premiums and the second and subsequent insurance premiums separately entrusted by Aflac.

Article 2    Agency’s Office

1. JPN shall create and submit to Aflac a list of the names and locations of offices where JPN performs Agency Services for Aflac (hereinafter referred to as “Office List”) in a format separately provided by Aflac.

2. If any of the events set forth below occurs, JPN shall create and submit to Aflac without delay the Office List which reflects such changes.

(1) JPN opens a new office where Aflac’s Agency Services are performed;

(2) JPN decides not to perform Agency Services at any of the offices included in the Office List;

(3) Any officer or employee of JPN registered pursuant to Article 6, Paragraph 2 in the Office List becomes absent due to change/deletion of registration, retirement, or personnel transfer, etc.;

(4) The name or location of the office where Agency Services are performed is changed; or

(5) Any officer or employee of JPN is newly registered pursuant to Article 6, Paragraph 2.

Article 3    Entrusted Insurance Policies

1. The types of Insurance Policies of which Insurance Solicitation Aflac entrusts to JPN shall be determined upon consultation between JPN and Aflac. In such case, the types of such Insurance Policies shall be specified in the Agency Commissions Regulations separately provided by Aflac.

2. Notwithstanding the provision set forth in the preceding Paragraph, the type of Insurance Policies that require separate sales qualifications shall be subject to the acquisition of such qualifications.

3. In the case where the Insurance Solicitations by JPN significantly increase beyond Aflac’s risk management capacity, or the level of dependence on JPN for

2

Provisional Translation

Insurance Solicitations becomes extremely high compared with the original entrustment policy, JPN shall cooperate with Aflac taking appropriate measures as necessary upon consultation between JPN and Aflac.

Article 4 Self-policy Purchases

1. JPN shall not handle Insurance Policies which it is the policyholder and other Insurance Policies for the purpose of receiving discounts, rebates, etc. of insurance premiums.

2. JPN shall inform Aflac without delay when JPN solicits Insurance Policies which it is the policyholder and Aflac shall not pay commissions and other compensation related to the Insurance Solicitations of JPN. In addition, JPN shall return to Aflac without delay any payment that has already been made.

Article 5    Policies for which a Closely-related Company is the Policyholder

1. JPN shall not solicit Insurance Policies for which Policyholders are companies which have personal or capital relationship, or any other close relationship in the context of the background to the establishment, etc. with JPN which meet the criteria set forth in the Insurance Business Law, etc. (hereinafter referred to as “Closely-related Companies”).

2. JPN shall notify Aflac without delay when JPN solicits Insurance Policies for which Policyholders are Closely-related Companies, and Aflac shall not pay commissions related to the Insurance Solicitation of JPN or money of the same kind. JPN must return to Aflac without delay any payment that has already been made.

3. JPN shall not solicit Insurance Policies for which Policyholders are officers or employees of JPN or officers or employees of Closely-related Companies. However, this shall not apply to types of Insurance Policies permitted by Aflac.

4. Pursuant to the criteria separately provided by Aflac, JPN shall create a list of the names and the locations of Closely-related Companies and submit the photocopy to Aflac. JPN must also report any change to the list to Aflac without delay. In addition, JPN must responsibly keep the list in custody.

Article 6 Registration Obligations

1. JPN must be registered as a life insurance solicitor as required by laws and regulations for performing the Agency Services.

2. When JPN causes its officers or employees to engage in Insurance Solicitation, JPN must cause them to be registered as required by laws and regulations.

3. For the registration set forth in the preceding two Paragraphs, the representative of JPN and the officers and employees of JPN who are engaged in the Insurance Solicitation are required to complete the prescribed training provided by Aflac and pass the General Course Examination provided by the Life Insurance Association of Japan.

4. Notwithstanding the preceding Paragraph, in case the representative of JPN does not engage him/herself in the Insurance Solicitation, JPN may apply to Aflac for exemption of the General Course Examination for the representative of JPN.

5. JPN shall submit without delay a prescribed notification for any change to the registration matters of JPN or registered officers or employees of JPN as required by laws and regulations.

3

Provisional Translation

Article 7 Allocation of Solicitors at each Office

JPN must allocate one or more full-time and resident Life Insurance Solicitors to each office where Insurance Solicitation is performed.

Article 8 Entrustment to Life Insurers Other Than Aflac

1. JPN may not be registered as a life insurance solicitor of life insurers other than Aflac (excluding the life insurer which has entered into a service agreement for the services related to solicitation of life insurance before entering into this Agreement. The same shall apply in this Article.) or perform the Agency Services for life insurers other than Aflac.

2. JPN may not have its officers and employees to concurrently hold positions as officers or employees of life insurers other than Aflac, or employees thereof, register as life insurance solicitors of life insurers other than Aflac, or perform Agency Services for life insurers other than Aflac.

3. The provisions set forth in the preceding two Paragraphs shall not apply to cases where JPN meets the requirements specified by laws and regulations. In addition, Aflac shall grant JPN permissions set forth in Article 28 of the Commercial Code.

4. In the case of the preceding Paragraph, JPN must notify Aflac without delay when the Agency Agreements entered into with other life insurers are terminated.

Article 9 Allocation of Operations Managers and Education Managers

1. JPN shall appoint from among the officers and employees of JPN one or more managers to appropriately manage the Agency Services of JPN and comply with other laws and regulations (hereinafter referred to as “Operations Managers”).

2. In case JPN enters into Agency Agreements with several life insurers, JPN must allocate education managers in charge of educating life insurance solicitors.

3. When allocating Operations Managers and education managers, requirements specified by laws and regulations shall be met.

Article 10    Payment of Commissions

1. Aflac shall pay commissions for the Agency Services of JPN pursuant to the Agency Commissions Regulations separately provided by Aflac.

2. With prior notification to JPN, Aflac shall revise the Agency Commissions Regulations upon consultation between JPN and Aflac.

3. Aflac shall transfer the commissions set forth in Paragraph 1 to the account designated by JPN on the day specified in the Agency Commissions Regulations.

4. In case this Agreement terminates due to expiration of the term or cancellation, Aflac shall not pay to JPN the commissions on and after the termination date.

Article 11 Expenses

The expenses required for JPN to perform the Agency Services shall be borne by JPN unless otherwise provided to be borne by Aflac.

Article 12    Clear Indication of Authority for Insurance Solicitation

When conducting Insurance Solicitation, JPN and the officers and employees of JPN shall clearly indicate to customers the authorities they possess by the method separately provided by Aflac.

4

Provisional Translation

Article 13 Preliminary Distribution of “Preliminary Policy Summaries/Policy Provisions,” etc.

The officers and employees of JPN shall, prior to receiving application forms for life insurance policies, deliver by hand documents designated by Aflac, including “Preliminary Policy Summaries,” “documents delivered prior to conclusion of contracts (policy overview/alerting information),” etc. developed by Aflac to the applicants of Insurance Policies, explain important matters specified in these documents, and cause the customers to affix receipt stamps by the method separately provided by Aflac.

Article 14 Handling of Money Appropriated for First Insurance Premium, etc.

1. JPN and the officers and employees of JPN shall, when individually entrusted to receive money appropriated for the first insurance premiums pursuant to the provision set forth in Article 1 hereof, always use the prescribed receipts that Aflac has delivered to JPN.

2. JPN and the officers and employees of JPN shall immediately transfer the money appropriated for the first insurance premiums they received pursuant to the preceding Paragraph to Aflac or to the account designated by Aflac.

3. JPN and the officers and employees of JPN shall keep in custody the money appropriated for the first insurance premiums they received pursuant to Paragraph 1 clearly separating it from their own assets until they transfer it to Aflac or to the account designated by Aflac and may not misappropriate it for some other purposes.

4. JPN and the officers and employees of JPN shall manage the prescribed receipts which Aflac has delivered with due care of a good manager and must immediately notify Aflac in case they are lost or stolen, or vanished by fire, etc.

5. JPN and the officers and employees of JPN shall, when receiving the second and subsequent insurance premiums, individually entrusted by Aflac, apply the preceding Paragraphs by replacing the “money appropriated for the first insurance premiums” with the “second and subsequent insurance premiums.”

Article 15 Obligation to Store Documents, etc.

1. When performing the Agency Services, JPN shall store the documents received from the applicants and Policyholders of Insurance Policies, and materials, etc. received from Aflac (hereinafter referred to as “Documents, etc.”) with due care of a good manager and, unless otherwise approved in advance by Aflac in writing, may not use them for purposes other than performing the Agency Services.

2. In the event of the inspections by supervisory authorities, JPN shall disclose the Documents, etc. specified in the preceding Paragraph as needed.

3. JPN shall disclose the Documents, etc. upon request from Aflac or those permitted by Aflac.

Article 16 Company Ownership of Goods for Business Use

All the insurance premium receipts, accounting books, documents, papers, equipment, etc. related to the Agency Services delivered by Aflac to JPN shall belong to Aflac.

5

Provisional Translation

Article 17    Confidentiality

1. JPN and Aflac shall not use or leak to any third party information of the other party obtained in the course of performing the Agency Services (hereinafter referred to as “Confidential Information”) during the term of this Agreement for any purpose other than performing the Agency Services and operations related to Insurance Solicitation of JPN. However, the information that falls under any of the following shall be excluded from Confidential Information.

(1) Information which JPN or Aflac discloses with the prior written consent of the other party;

(2) Information which is already public at the time it was received from the other party, or information which has become public for reasons not attributable to either party;

(3) Information which JPN or Aflac held before it was received from the other party;

(4) Information which JPN or Aflac received from a third party without any confidentiality obligation; or

(5) Information which JPN or Aflac obtained independently.

2. Aflac shall not disclose customers’ information which Aflac has come to know through JPN’s performance of the Agency Services (hereinafter referred to as “Customer Information”) to any party other than the employees who are engaged in the operations related to the Insurance Solicitation of JPN. In particular, Aflac shall not disclose the Customer Information to any agency other than JPN. However, this shall not apply to information which falls under any of the following:

(1) Information which Aflac discloses upon obtaining prior written consent from JPN;

(2) Information which is already public at the time Aflac receives it from JPN, or information which has become public for reasons not attributable to Aflac;

(3) Information which Aflac possessed before it was received from JPN;

(4) Information which Aflac received from a third party without any confidentiality obligation;

(5) Information which Aflac obtained independently;

(6) Information of a customer from whom inquiry or request was made with regard to policy maintenance-related operations; or

(7) Customer Information of a customer who has given his/her consent to the solicitation of life insurance products or other products using such Customer Information. (However, Aflac shall obtain JPN consent upon prior consultation when soliciting life insurance products and other financial products based on the Customer Information.)

3. JPN and Aflac shall thoroughly educate and manage their officers and employees to ensure that they do not breach the preceding two Paragraphs.

4. Notwithstanding Paragraph 1, JPN or Aflac shall immediately report to the other party when any compromise of Confidential Information is found and shall investigate and clarify the cause according to the instructions of the other party.

5. JPN and Aflac shall return or destroy Confidential Information, excluding those agreed upon by the other party, according to the instructions of the other party upon termination of this Agreement due to expiration of the term or cancellation.

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Article 18    Handling of Personal Information

1. The scope of the personal information (as defined in Article 2, Paragraph 1 of the Act on the Protection of Personal Information) of which handling is entrusted to JPN by Aflac (hereinafter referred to as “Personal Information”) shall be as follows:

(1) Personal Information which customers provide to Aflac and which JPN acts as an intermediary when customers provide such Personal Information to Aflac for JPN to perform the Agency Services pursuant hereto;

(2) Personal Information which JPN has acquired for providing it to Aflac for JPN to perform the Agency Services pursuant hereto; and

(3) Personal Information which Aflac has provided to JPN as Personal Information necessary for JPN to perform the Agency Services pursuant hereto.

2. JPN and the officers and employees of JPN shall retain the Personal Information entrusted by Aflac pursuant hereto with due care of a good manager and, unless otherwise agreed to by the customer in advance, may not use it for purposes other than performing the Agency Services, or compromise it to any third party.

3. The provisions set forth in Paragraphs 4 and 5 of the preceding Article shall be applied mutatis mutandis to the handling of Personal Information.

Article 19    Safety Control Measures for Personal Information

1. JPN shall take measures that are necessary for technological reasons and appropriate to prevent leak, loss or damage of Personal Information, and for other safety management of Personal Information, and shall take organizationally necessary and appropriate measures including establishment of regulations for the handling of Personal Information.

2. JPN shall, when disclosing the Personal Information to its officers and employees, supervise appropriately and on an as needed basis including providing periodic training on the handling of Personal Information to such officers and employees.

Article 20 Prohibition of Insurance Premium Discounts/Rebates

JPN and the officers and employees of JPN must not offer or promise to offer insurance premium discounts or rebates, or other special benefits to Policyholders or insureds, including offering all or part of commissions, in any name or by any method whatsoever.

Article 21    Prohibition of Use of Privately Made Solicitation Materials

1. Any and all materials JPN and the officers and employees of JPN use for Insurance Solicitation or for facilitating Insurance Solicitation, including newspaper advertisements, printed materials, signage, Internet webpages, and e-mails (hereinafter referred to as “Solicitation Materials, etc.”) must be made by Aflac. However, this shall not apply to Solicitation Materials, etc. created by JPN or the officers or employees of JPN and agreed upon by Aflac.

2. JPN must not divert documents, educational materials, etc. which Aflac has provided to JPN for the purpose of providing education and information to JPN, to Solicitation Materials, etc.

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Provisional Translation

Article 22 Provision of Information to Policyholders, etc.

1. Pursuant to the provisions of laws and regulations, JPN and the officers and employees of JPN shall not present or display comparison of details of an insurance policy with the details of other insurance policy, which may cause misunderstanding, to Policyholders, insureds, or unspecified persons.

2. Pursuant to the provisions of laws and regulations, JPN must not make definitive statements on matters of which the amount of future dividends and other future amounts are uncertain or make presentation or indication which may cause misunderstanding such matters are certain to Policyholders, insureds, or unspecified persons.

3. JPN must appropriately indicate matters that are required to be indicated by laws and regulations when providing multiple people with information on specific insurance policies stipulated in the Insurance Business Law utilizing broadcasting equipment, etc. of private broadcasters.

Article 23    Report on the Status of Agency Services

1. JPN shall report the status of Agency Services upon request from Aflac or those to whom Aflac gives permission and JPN approves.

2. JPN shall immediately inform the status to Aflac when it becomes aware of inappropriate acts of the officers or employees of JPN, including those breaching the Insurance Business Law.

3. JPN shall, in case the term of this Agreement has expired or terminated due to cancellation, report the status of the Agency Services at the termination hereof to Aflac upon request from Aflac.

4. JPN shall cooperate in internal audit on the Agency Services by Aflac or those who Aflac recognizes and JPN approves.

Article 24    Prohibition of Subcontracting, etc. of Agency Services

1. JPN or the officers or employees of JPN shall not subcontract Insurance Solicitation to sales persons of Aflac or of life insurers other than Aflac or other agencies or officers or employees of other agencies.

2. JPN or the officers or employees of JPN shall not subcontract Insurance Solicitation to insurance brokers or officers or employees of insurance brokers.

3. JPN or the officers or employees of JPN shall not pay money to other individuals or corporations in relation to Insurance Policies to be or that have been completed regardless of the reason.

Article 25 Prohibition of Improper Promotion of Policy Replacement

JPN or the officers or employees of JPN must not terminate already completed Insurance Policies of Policyholders or insureds of Aflac or life insurers other than Aflac and have them apply for new Insurance Policies, or have them terminate already completed Insurance Policies by having them apply for new Insurance Policies, without informing them of disadvantageous facts.

Article 26 Provision of Education/Information

1. Aflac shall provide education to JPN for the purpose of acquiring knowledge and techniques necessary for performing the Agency Services.

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2. JPN must cause registered officers and employees of JPN to complete the education that Aflac provides as set forth in the preceding Paragraph.

3. Aflac shall provide JPN with information necessary for performing the Agency Services and JPN shall convey the information to the officers and employees of JPN.

Article 27    Non-Assignment of Claims

JPN and Aflac must not assign to a third party or pledge all or part of claims derived with regard hereto, including claims for remuneration or other claims arising against the other party.

Article 28    Non-Transfer of Status as Agency

JPN may not transfer the status of JPN established under this Agreement unless otherwise approved by Aflac in advance in writing.

Article 29 Prohibition of Unfair Use of Status

JPN must not use the status obtained hereunder and accompanying rights, and trade name and trademark of Aflac for any purpose other than the purposes hereof.

Article 30 Cancellation of Agreement

1. JPN or Aflac may cancel this Agreement with one-month prior notification in writing. Any matter not stipulated herein, with the cancellation hereof, shall be determined upon consultation between JPN and Aflac.

2. Notwithstanding the provisions set forth in the preceding Paragraph, Aflac may cancel this Agreement without warning in any of the following cases:

(1) JPN fails to be registered within 6 months after the conclusion hereof;

(2) Pursuant to the provisions of laws and regulations, JPN’s registration has been cancelled, ceases to be effective, or has been revoked; or

(3) JPN is deemed to have committed an inappropriate act which may be an object of cancellation of registration pursuant to laws and regulations.

3. JPN or Aflac may cancel this Agreement without any warning in case the other party falls under any of the following cases:

(1) Notes and checks are dishonored and suspended by bank from being traded;

(2) Public authority was exercised such as seizure, provisional seizure, provisional disposition, auction, compulsory execution, and disposition of delinquency;

(3) A petition has been filed or a party has filed a petition itself for bankruptcy, civil rehabilitation proceedings, corporate reorganization proceedings, special liquidation, or the like; or

(4) Other serious events occur which may make it difficult to continue this Agreement, such as serious damage to the relationship of trust between both parties.

4. In the event this Agreement is terminated due to expiration of the term or cancellation, JPN must immediately return to Aflac all Aflac possessions that

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were delivered by Aflac, and documents, etc. which JPN keeps in custody as set forth in Article 15.

5. At the termination of this Agreement, JPN and Aflac must promptly perform in good faith any existing obligations that arose during the term hereof.

6. In case there are acts which conform to the Items of Paragraph 2 that do not result in the cancellation of this Agreement but are inappropriate with regard to Insurance Solicitation or may damage the benefits of Policyholders, Aflac may request JPN to submit reports or take other reasonable measures as deemed necessary.

Article 31 Duty of Care of Prudent Manager/Legal Compliance

1. JPN shall perform the Agency Services with due care of a good manager pursuant hereto and comply with laws concerning Insurance Solicitation and regulations which Aflac provided for performing the Agency Services.

2. JPN and officers and employees of JPN shall not conduct any of the following acts against the Policyholders or insureds of Aflac or life insurers other than Aflac:

(1) Make false statements or not inform material matters among the provisions of Insurance Policies;

(2) Encourage Aflac or life insurers other than Aflac to make false statements on material matters;

(3) Hinder Aflac or life insurers other than Aflac informing, or encourage Aflac or life insurers other than Aflac not to inform material matters;

(4) Cause Policyholders or insureds to apply for Insurance Policies knowing that a company related to Aflac provides or promises to provide special benefits; or

(5) Acts that may result in insufficient protection of Policyholders or insureds of Aflac or life insurers other than Aflac.

Article 32    Obligation for Compensation of Losses

1. In case either JPN or Aflac causes damages to the other party, it must compensate for such damages.

2. JPN and Aflac shall not be released from obligation for compensation set forth in the preceding Paragraph even after this Agreement is terminated.

Article 33 Jurisdiction

The Tokyo District Court shall be the competent court of first instance for any action hereof.

Article 34 Amendment to Agreement

Aflac may amend this Agreement and the regulations provided by Aflac for performing the Agency Service even during the term hereof upon consultation between JPN and Aflac if any specific need arises in terms of protecting Policyholders or ensuring fair competition.

Article 35 Term of Agreement

The term of this Agreement shall be one year from the date the Agreement was concluded, and unless there is any objection from either JPN or Aflac one month

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prior to the expiration date, the term of this Agreement shall be extended for another year. The same shall apply thereafter.

Article 36 Place to Perform the Obligations

1. The places where JPN performs its obligations hereunder shall be the locations of the main locations of Aflac in Japan or the places designated by Aflac and approved by JPN.

2. The places where Aflac performs its obligations shall be the locations of the offices of JPN designated by JPN and approved by Aflac.

Article 37    Governing Law

This Agreement shall be governed by the laws of Japan.

Article 38 Matters Not Stipulated Herein

Matters not stipulated herein shall be determined upon consultation between JPN and Aflac.

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　End

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EX-10.3

Provisional English Translation

Original Agreement Executed in Japanese

Certain identified information has been omitted from this document because it is not material and would be competitively harmful if publicly disclosed, and has been marked with “[***]” to indicate where omissions have been made.

Amendment Agreement to Agency Services Agreement

Japan Post Co., Ltd. (hereinafter referred to as “JPC”) and American Family Life Assurance Company of Columbus (hereinafter referred to as “Aflac”) hereby agree as follows and enter into an amended agreement to the Agency Services Agreement dated March 1, 2008 between JPC (company name changed from Japan Post Network Co., Ltd. upon absorption-type merger with Japan Post Network Co., Ltd. effective October 1, 2012) (hereinafter referred to as “the Original Agreement”) and Aflac (hereinafter referred to as “the Amended Agreement”). Terminology not defined in the Amended Agreement shall have the definition set forth in the Comprehensive Business Alliance Agreement dated July 26, 2013 between Japan Post Holdings Co., Ltd. (hereinafter referred to as “JPH”) and Aflac (as amended by the “Amended Agreement to the Comprehensive Business Alliance Agreement” dated September 5, 2014 entered into between JPH and Aflac; hereinafter referred to as “the Alliance Agreement”).

Chapter 1. Amendments to Original Agreement

Article 1. Amends Article 3 of the Original Agreement

Article 3, Paragraph 1 of the Original Agreement shall be amended as per the following table.

Before Amendment

After Amendment

The types of Insurance Policies of which Insurance Solicitation Aflac entrusts to JPN shall be determined upon consultation between JPN and Aflac. In such case, the types of such Insurance Policies shall be specified in the Agency Commissions Regulations separately provided by Aflac.

The types of Insurance Policies of which Insurance Solicitation Aflac entrusts to JPC shall be the Handled Products as set forth in the Comprehensive Business Alliance Agreement dated July 26, 2013 between Japan Post Holdings Co., Ltd. (hereinafter referred to as “JPH”) and Aflac (as amended by “Amendment Agreement to the Comprehensive Business Alliance Agreement” dated September 5, 2014 between JPH and Aflac; hereinafter referred to as “the Alliance Agreement”). In such case, the types of such Insurance Policies shall be specified in the Agency Commissions Regulations separately provided by Aflac.

Article 2. Amends Article 10, Paragraph 4 of the Original Agreement

Article 10, Paragraph 4 of the Original Agreement shall be amended as per the following table.

Before Amendment	After Amendment
4. In case this Agreement terminates due to expiration of the term or cancellation, Aflac shall not pay to JPN the commissions on and after the termination date.	4. In case this Agreement terminates, Aflac shall not pay to JPC the commissions on and after the termination date.

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Original Agreement Executed in Japanese

Article 3. Amends Article 17, Paragraph 5 of the Original Agreement

Article 17, Paragraph 5 of the Original Agreement shall be amended as per the following table.

Before Amendment	After Amendment
JPN and Aflac shall return or destroy Confidential Information, excluding those agreed upon by the other party, according to the instructions of the other party upon termination of this Agreement due to expiration of the term or cancellation.	JPC and Aflac shall return or destroy Confidential Information, excluding those agreed upon by the other party, according to the instructions of the other party upon termination of this Agreement.

Article 4 (Amends Article 23, Paragraph 3 of the Original Agreement)

Article 23, Paragraph 3 of the Original Agreement shall be amended as per the following table.

Before Amendment	After Amendment
JPN shall, in case the term of this Agreementhas expired or terminated due to cancellation, report the status of the Agency Services at the termination hereof to Aflac upon request from Aflac.	JPC shall, in case this Agreement has terminated, report the status of the Agency Services at the termination hereof to Aflac upon request from Aflac.

Article 5 (Amends Article 30 of the Original Agreement)

Article 30 of the Original Agreement shall be amended as per the following table.

Before Amendment

After Amendment

Article 30 Cancellation of Agreement 1.JPN or Aflac may cancel this Agreement with one-month prior notification in writing. Any matter not stipulated herein, with the cancellation hereof, shall be determined upon consultation between JPN and Aflac. 2.Notwithstanding the provisions set forth in the preceding Paragraph, Aflac may cancel this Agreement without warning in any of the following cases: (1)JPN fails to be registered within 6 months after the conclusion hereof; (2)Pursuant to the provisions of laws and regulations, JPN’s registration has been cancelled, ceases to be effective, or has been revoked; or

Article 30 Terminationof Agreement 1. This Agreement shall automatically terminate on the date the Alliance Agreement terminates pursuant to Article 18, Paragraph 1 of the Alliance Agreement, and shall not terminate under any other circumstances.

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Original Agreement Executed in Japanese

(3)JPN is deemed to have committed an inappropriate act which may be an object of cancellation of registration pursuant to laws and regulations. 3.JPN or Aflac may cancel this Agreement without any warning in case the other party falls under any of the following cases: (1)Notes and checks are dishonored and suspended by bank from being traded; (2)Public authority was exercised such as seizure, provisional seizure, provisional disposition, auction, compulsory execution, and disposition of delinquency; (3)A petition has been filed or a party has filed a petition itself for bankruptcy, civil rehabilitation proceedings, corporate reorganization proceedings, special liquidation, or the like; or (4)Other serious events occur which may make it difficult to continue this Agreement, such as serious damage to the relationship of trust between both parties. 4.In the event this Agreement is terminated due to expiration of the term or cancellation, JPN must immediately return to Aflac all Aflac possessions that were delivered by Aflac, and documents, etc. which JPN keeps in custody as set forth in Article 15. 5.At the termination of this Agreement, JPN and Aflac must promptly perform in good faith any existing obligations that arose during the term hereof. 6.In case there are acts which conform to the Items of Paragraph 2 that do not result in the cancellation of this Agreement but are inappropriate with regard to Insurance Solicitation or may damage the benefits of Policyholders, Aflac may request JPN 2. In the event this Agreement is terminated, JPC must immediately return to Aflac all Aflac possessions that were delivered by Aflac, and documents, etc. which JPC keeps in custody as set forth in Article 15. 3. At the termination of this Agreement, JPC and Aflac must promptly perform in good faith any existing obligations that arose during the term hereof, to the extent that doing so does not violate the Alliance Agreement. 4. In case there are acts that are inappropriate with regard to Insurance Solicitation or may damage the benefits of Policyholders, Aflac may request JPC to submit reports or take other reasonable measures as deemed necessary.

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Original Agreement Executed in Japanese

to submit reports or take other reasonable measures as deemed necessary. 5. Even if this Agreement terminates, the following provisions shall remain in effect. Article 17 (Confidentiality), Article 18 (Handling of Personal Information), Article 23 (Report on the Status of Agency Services) Paragraph 3, Article 32 (Obligation for Compensation of Losses), Article 33 (Jurisdiction), Article 37 (Governing Law), and Article 39 (the Alliance Agreement) 6.Effects of termination of this Agreement shall, in addition to this Article, comply with the provisions of the Alliance Agreement.

Article 6 (Deletes Article 35 of the Original Agreement)

Article 35 of the Original Agreement shall be amended as per the following table.

Before Amendment	After Amendment
Article 35 Term of Agreement The term of this Agreement shall be one year from the date the Agreement was concluded, and unless there is any objection from either JPN or Aflac one month prior to the expiration date, the term of this Agreement shall be extended for another year. The same shall apply thereafter.	Article 35 (Deleted)

Article 7 (New establishment of Article 39 of the Original Agreement)

Article 39 shall be newly established in the Original Agreement.

Before Amendment	After Amendment
(Newly established)	Article 39 (the Alliance Agreement) 1. JPC shall affirm and comply with the following provisions of the Alliance Agreement. Further, Aflac shall commit to the corresponding provisions vis-à-vis JPC. To stipulate for avoidance of doubt, under this Article JPC and Aflac shall have

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Provisional English Translation

Original Agreement Executed in Japanese

their respective rights vis-à-vis the other party as set forth in the corresponding provisions of the Alliance Agreement and shall bear their own duties to the other party as set forth in the provisions of the Alliance Agreement.

(1)Provisions setting forth rights or responsibilities for which JPC is the assignee, or provisions setting forth items pertaining to JPC’s actions (this applies to Alliance Agreement Article 2, Article 4 Paragraphs 2 and 4, Articles 5 through 10, and Article14 through 16).

(2)Provisions setting forth items pertaining to this Agreement (this applies to the Alliance Agreement Articles 18 and 20).

2. Pertaining to the rights, etc. that JPC or Aflac possesses vis-à-vis the other party, JPC and Aflac hereby agree per these provisions to the following additional provisions.

[***]

For the period until the Alliance Agreement terminates, details of initiatives to meet the Sales Targets set forth in Article 10 of the Alliance Agreement shall be determined by good faith consultation among JPH, JPC, JPI, and Aflac by the beginning of each fiscal year. Unless JPH, JPC, JPI, and Aflac agree to different handling, four copies of minutes shall be prepared regarding the determined items, and JPH, JPC, JPI, and Aflac shall each store a copy.

Chapter 2. General Clauses

Article 8. Non-waiver of Rights

The fact that either JPC or Aflac does not exercise rights or has been delayed in the exercise of rights pursuant to the Amended Agreement does not mean that the rights pursuant to the Amended Agreement have been waived.

Article 9. Contractual Status, etc.

JPC and Aflac confirm that the rights, obligations, legal statuses, and position as party to the Amended Agreement may not be assigned, transferred, pledged, or otherwise disposed of.

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Original Agreement Executed in Japanese

Article 10. Confidentiality

1. JPC and Aflac have a duty to protect the confidentiality of Confidential Alliance Information pursuant to this Article. “Confidential Alliance Information” stipulated in the Amended Agreement means information disclosed by one Party to the other Party (hereinafter, the Party that discloses information shall be referred to as the “Disclosing Party” and the Party that receives the disclosure shall be referred to as the “Receiving Party”; in cases in which a Related Party of the Receiving Party (in this Article, the scope of “Related Party” shall be JPC Related Parties (in this Article, “JPC Related Party” means (1) JPC subsidiary (the definition of subsidiary shall conform to the provisions of the Alliance Agreement; the same shall apply hereinafter) and (2) Director, officer, employee, or representative (if any of the preceding exist) of JPC or subsidiary thereof) or Aflac Related Parties (in this Article, “Aflac Related Party” means (1) Aflac subsidiary and (2) Director, officer, employee, or representative (if any of the preceding exist) of Aflac) receives the disclosure, the Receiving Party shall be deemed to have received the disclosure) stipulated in the following items.

(1) Corporate Information

All information disclosed by the Disclosing Party to the Receiving Party shall be Corporate Information, regardless of the timing or format in which the information was disclosed. Provided, however, that the following information shall not be included in Corporate Information.

1) Information that is commonly known or has become known due to causes other than disclosure by the Receiving Party.

2) Information that the Receiving Party had received prior to provision by the Disclosing Party.

3)　Information that the Receiving Party received from a person other than the Disclosing Party that does not owe an obligation to the Disclosing Party not to disclose the information to the Receiving Party.

(2) Alliance Information

All information generated in the performance of the business operations pertaining to the Comprehensive Business Alliance shall be Alliance Information, regardless of the timing or format in which the information was generated. Provided, however, that information that is commonly known or became known not as a result of disclosure by one party not pursuant to the agreement of other parties shall not be included in Alliance Information. To avoid doubt, both Parties shall have obligations as the Receiving Party regarding Alliance Information.

2. The Receiving Party shall keep the Confidential Alliance Information confidential with the due care of a prudent manager and shall not disclose or leak to a third party without the Disclosing Party’s advance written consent. Provided, however, that this shall not apply to cases in which the Receiving Party discloses Confidential Alliance Information to its Related Parties within a minimum scope necessary for performance of the Comprehensive Business Alliance or discloses Confidential Information to entrusted parties when entrusting business operations (including but not limited to system development operations) necessary for performance of the Comprehensive Business Alliance. In such cases, the Receiving Party shall take necessary and reasonable measures to cause all persons involved with the Confidential Alliance Information to comply with this Article.

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Provisional English Translation

Original Agreement Executed in Japanese

3. If the Receiving Party discloses Confidential Alliance Information to third party after obtaining advance written consent from the Disclosing Party pursuant to the previous Paragraph, the Receiving Party shall cause the third party to comply with the confidentiality obligations via methods such as entering into a confidentiality agreement with the third party and entering into a confidentiality agreement including equivalent confidentiality obligations as those stipulated in the Amended Agreement.

4. Regardless of the stipulations of Paragraph 2, if the Receiving Party is requested to disclose Confidential Alliance Information pursuant to law or regulation or by an authorized public agency, the Receiving Party may, after giving advance notice to the Disclosing Party, disclose Confidential Alliance Information within a scope reasonably determined necessary to respond to the disclosure request. Provided, however, that a subsequent notice to the Disclosing Party will be sufficient in an emergency or unavoidable circumstances.

5. The Receiving Party shall use the Confidential Information only for the purpose of performing the Comprehensive Business Alliance and shall not use it for any other purpose.

6. The Receiving Party may copy, modify, or edit the Confidential Alliance Information to a minimum scope necessary to perform the Comprehensive Business Alliance, and shall treat copied, modified, and edited Confidential Alliance Information as Confidential Alliance Information.

7. If the Alliance Agreement terminates or there is a request from the Disclosing Party, the Receiving Party shall, excluding information within the scope reasonable permitted as necessary for saving records required as a legal or internal control necessity, promptly return all Confidential Alliance Information disclosed pursuant to the Comprehensive Alliance Agreement (including but not limited to originals, copies, storage media containing the Confidential Alliance Information, copies of said storage media, printouts and downloads of the Confidential Alliance Information stored on the storage media, etc.); and shall dispose of matters that cannot be returned or that the Disclosing Party has designated as not necessary to return after taking measures to completely destroy the entries or records of Confidential Alliance Information by shredding, dissolution, etc.

8. If any of the following Items apply to the Receiving Party, the Receiving Party shall promptly notify the Disclosing Party and comply with the Disclosing Party’s instructions.

(1) The Receiving Party has breached this Article or has learned this Article is likely to be breached

(2) A leak or loss of Confidential Alliance Information (hereinafter referred to as “Leak”) has occurred, or the Receiving Party has learned such an event will likely occur.

9. If a Leak of Confidential Alliance Information occurs, the Receiving Party shall promptly take measures to retrieve the Leaked Confidential Alliance Information and prevent its spread, and shall take the necessary measures from the perspective of minimizing damage, preventing secondary damage, and avoiding the occurrence of similar incidents, etc., including investigating the factual background (including but not limited to the details of the Leaked Confidential Alliance Information, the causes of the Leak, damage status, etc.) and taking measures to prevent recurrence.

10. The Receiving Party shall bear responsibility for breaches of the provisions of this Article by Related Parties thereof.

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Provisional English Translation

Original Agreement Executed in Japanese

11. If the Receiving Party or a Related Party thereof breaches or is likely to breach the provisions of this Article, the Disclosing Party may demand enjoinment of the breaching activity and the Receiving Party may not raise any objection.

Article 11 Effectiveness of the Amended Agreement

1. The Amended Agreement shall be effective retroactively as of the execution date of the Alliance Agreement.

2. The Amended Agreement shall automatically terminate on the termination date of the Alliance Agreement pursuant to Article 18, Paragraph 1 of the Alliance Agreement and shall not terminate under any other circumstances.

Article 12. Survival Clause

Even after the Amended Agreement has terminated, Chapter 1 (Amendments to Original Agreement), Article 10 (Confidentiality), this Article, Article 13 (Governing Law), Article 14 (Court of Jurisdiction), and Article 15 (Amendments to the Amended Agreement) shall remain in effect.

Article 13. Governing Law

1. The Amended Agreement shall be prepared in Japanese and interpreted thereof.

2. The Amended Agreement shall be governed by Japanese law and interpreted in accordance thereof.

Article 14. Court of Jurisdiction

The Tokyo District Court shall be the exclusive court of first jurisdiction regarding any conflict arising out of or in connection with the Amended Agreement.

Article 15. Amendments to the Amended Agreement

Full or partial amendments to the Amended Agreement may only be made by written agreement of JPC and Aflac.

Article 16. Good Faith Consultation

If doubt arises regarding the interpretation or operation of the Amended Agreement, JPC and Aflac shall endeavor to consult in good faith to reach a prompt resolution.

In witness whereof, two original copies of this Agreement shall be made, and JPC and Aflac shall sign and keep one original copy each.

June 27, 2016

1-3-2 Kasumigaseki, Chiyoda-ku, Tokyo-to

Japan Post Co., Ltd.

Representative Executive Officer, President & CEO

Toru Takahashi (seal)

　

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Original Agreement Executed in Japanese

Shinjuku Mitsui Bldg., 2-1-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo-to

American Family Life Assurance Company of Columbus

President and Representative in Japan

Hiroshi Yamauchi (seal)

9

EX-31.1

Aflac Incorporated 1st Quarter 2020 10-Q

EXHIBIT 31.1

Certification of Chief Executive Officer

I, Daniel P. Amos, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Aflac Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 30, 2020	/s/ Daniel P. Amos
		Daniel P. Amos
		Chairman and Chief Executive Officer

EX-31.2

Aflac Incorporated 1st Quarter 2020 10-Q

EXHIBIT 31.2

Certification of Chief Financial Officer

I, Max K. Broden, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Aflac Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 30, 2020	/s/ Max K. Broden
		Max K. Broden
		Executive Vice President, Chief Financial Officer

EX-32

Aflac Incorporated 1st Quarter 2020 10-Q

EXHIBIT 32

Certification of CEO and CFO Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Aflac Incorporated (the “Company”) for the quarterly period ended March 31, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Daniel P. Amos, as Chief Executive Officer of the Company, and Max K. Broden, as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Daniel P. Amos
Name:	Daniel P. Amos
Title:	Chief Executive Officer
Date:	April 30, 2020

/s/ Max K. Broden
Name:	Max K. Broden
Title:	Chief Financial Officer
Date:	April 30, 2020

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BUSINESS SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

Information regarding operations by reportable segment and Corporate and other, follows:

	Three Months Ended March 31,
(In millions)	2020			2019
Revenues:
Aflac Japan:
Net earned premiums	$	3,150		$	3,180
Adjusted net investment income (1),(2)	642			610
Other income	11			12
Total adjusted revenue Aflac Japan	3,803			3,802
Aflac U.S.:
Net earned premiums	1,483			1,461
Net investment income	177			177
Other income	27			2
Total adjusted revenue Aflac U.S.	1,687			1,640
Corporate and other (3)	104			95
Total adjusted revenues	5,594			5,537
Net investment gains (losses) (1),(2),(3)	(432		)	120
Total revenues	$	5,162		$	5,657

⁽¹⁾ Amortized hedge costs of $55 and $62 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

⁽²⁾ Net interest cash flows from derivatives associated with certain investment strategies of $(6) and $(7) for the three-month periods ended March 31, 2020 and 2019, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

⁽³⁾ Amortized hedge income of $29 and $20 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.

Reconciliation of Adjusted Profit (Loss) from Segments to Consolidated

	Three Months Ended March 31,
(In millions)	2020			2019
Pretax adjusted earnings:
Aflac Japan (1),(2)	$	855		$	834
Aflac U.S.	326			323
Corporate and other (3),(4)	2			(18		)
Pretax adjusted earnings (5)	1,183			1,139
Net investment gains (losses) (1),(2),(3),(4)	(448		)	103
Other income (loss)	(15		)	0
Total earnings before income taxes	$	720		$	1,242
Income taxes applicable to pretax adjusted earnings	$	301		$	291
Effect of foreign currency translation on after-tax adjusted earnings	9			(8		)

⁽¹⁾ Amortized hedge costs of $55 and $62 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

⁽²⁾ Net interest cash flows from derivatives associated with certain investment strategies of $(6) and $(7) for the three-month periods ended March 31, 2020 and 2019, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

⁽³⁾ Amortized hedge income of $29 and $20 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.

⁽⁴⁾ A gain of $16 and $17 for the three-month periods ended March 31, 2020, and 2019, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.

⁽⁵⁾ Includes $33 for the three-month periods ended March 31, 2020, and 2019, respectively, of interest expense on debt.

Reconciliation of Assets from Segment to Consolidated

Assets were as follows:

(In millions)	March 31, 2020			December 31, 2019
Assets:
Aflac Japan		$	126,955		$	127,523
Aflac U.S.		20,526			20,945
Corporate and other		4,135			4,300
Total assets		$	151,616		$	152,768

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BENEFIT PLANS

3 Months Ended

Mar. 31, 2020

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

BENEFIT PLANS

BENEFIT PLANS

The Company has funded defined benefit plans in Japan and the U.S., however the U.S. plan was frozen to new participants effective October 1, 2013. The Company also maintains non-qualified, unfunded supplemental retirement plans that provide defined pension benefits in excess of limits imposed by federal tax law for certain Japanese, U.S. and former employees, however the U.S. plan was frozen to new participants effective January 1, 2015. U.S. employees who are not participants in the defined benefit plan receive a nonelective 401(k) employer contribution.

The Company provides certain health care benefits for eligible U.S. retired employees, their beneficiaries and covered dependents (other postretirement benefits). The health care plan is contributory and unfunded. Effective January 1, 2014, employees eligible for benefits included the following: (1) active employees whose age plus service, in years, equaled or exceeded 80 (rule of 80); (2) active employees who were age 55 or older and have met the 15 years of service requirement; (3) active employees who would meet the rule of 80 in the next 5 years; (4) active employees who were age 55 or older and who would meet the 15 years of service requirement within the next 5 years; and (5) current retirees. For certain employees and former employees, additional coverage is provided for all medical expenses for life.

Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statement of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) of $6 million and $5 million for the three-month periods ended March 31, 2020 and 2019, respectively. Total net periodic cost includes the following components:

	Three Months Ended March 31,
	Pension Benefits																Other
	Japan								U.S.								Postretirement Benefits
(In millions)	2020				2019				2020				2019				2020			2019
Components of net periodic benefit cost:
Service cost		$	6			$	5			$	7			$	6			$	0		$	0
Interest cost		1				1				8				9				0			0
Expected return on plan assets		(2		)		(2		)		(9		)		(7		)		0			0
Amortization of net actuarial loss		1				1				6				3				1			0
Net periodic (benefit) cost		$	6			$	5			$	12			$	11			$	1		$	0

During the three months ended March 31, 2020, Aflac Japan contributed approximately $9 million (using the weighted-average yen/dollar exchange rate for the three-month period ending March 31, 2020) to the Japanese funded defined benefit plan, and Aflac U.S. did not make a contribution to the U.S. funded defined benefit plan.

For additional information regarding the Company's Japanese and U.S. benefit plans, see Note 14 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

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POLICY LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2020

Insurance Loss Reserves [Abstract]

Schedule of Liability for Unpaid Claims Adjustment Expense

Changes in the liability for unpaid policy claims were as follows:

	Three Months Ended March 31,
(In millions)		2020			2019
Unpaid supplemental health claims, beginning of period		$	3,968		$	3,952
Less reinsurance recoverables		31			29
Net balance, beginning of period		3,937			3,923
Add claims incurred during the period related to:
Current year		1,837			1,825
Prior years		(136		)	(167		)
Total incurred		1,701			1,658
Less claims paid during the period on claims incurred during:
Current year		556			506
Prior years		1,144			1,137
Total paid		1,700			1,643
Effect of foreign exchange rate changes on unpaid claims		12			0
Net balance, end of period		3,950			3,938
Add reinsurance recoverables		33			29
Unpaid supplemental health claims, end of period		3,983			3,967
Unpaid life claims, end of period		710			658
Total liability for unpaid policy claims		$	4,693		$	4,625

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FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Securities Carried at Amortized Cost (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	$ 29,347	$ 37,594
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	27,842	27,937
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	1,505	9,647
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	10
Government and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	28,194	28,291
Government and agencies | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	27,842	27,937
Government and agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	352	354
Government and agencies | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Government and agencies | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	28,194	28,291
Government and agencies | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	27,842	27,937
Government and agencies | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	352	354
Government and agencies | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Municipalities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	484	1,083
Municipalities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Municipalities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	484	1,083
Municipalities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Municipalities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	484	1,083
Municipalities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Municipalities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	484	1,083
Municipalities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Mortgage- and asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		17
Mortgage- and asset-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		0
Mortgage- and asset-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		7
Mortgage- and asset-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		10
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		7
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		0
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		7
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		0
Mortgage- and asset-backed securities | Consensus pricing valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		10
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		0
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		0
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		10
Public utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	59	2,954
Public utilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Public utilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	59	2,954
Public utilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Public utilities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	59	2,954
Public utilities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Public utilities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	59	2,954
Public utilities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Sovereign and supranational
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	578	1,320
Sovereign and supranational | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Sovereign and supranational | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	578	1,320
Sovereign and supranational | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Sovereign and supranational | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	578	1,320
Sovereign and supranational | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Sovereign and supranational | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	578	1,320
Sovereign and supranational | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Banks/financial institutions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		1,018
Banks/financial institutions | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		0
Banks/financial institutions | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		1,018
Banks/financial institutions | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		0
Banks/financial institutions | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		1,018
Banks/financial institutions | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		0
Banks/financial institutions | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		1,018
Banks/financial institutions | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value		0
Other corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	32	2,911
Other corporate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Other corporate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	32	2,911
Other corporate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Other corporate | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	32	2,911
Other corporate | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Other corporate | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	32	2,911
Other corporate | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	$ 0	$ 0

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DERIVATIVE INSTRUMENTS - Offsetting of Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Offsetting Liabilities [Line Items]
Gross amount of recognized derivative liabilities	$ 488	$ 460
Gross amount of assets offset in balance sheet	0	0
Derivative liability, fair value, amount not offset against collateral	488	460
Financial instruments, amount not offset	(229)	(190)
Derivative, collateral, right to reclaim securities	(175)	(222)
Derivative, collateral, right to reclaim cash	(2)	(33)
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement	82	15
Derivative liability, not subject to master netting arrangement	235	126
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement	235	126
Derivative liability, fair value, gross liability including not subject to master netting arrangement	723	586
Net amount of derivative liabilities presented in balance sheet	723	586
Derivative liability, fair value, amount offset against collateral	317	141
Gross Amounts of Recognized Financial Instruments, Offsetting Liabilities	3,692	2,462
Gross Amounts Offset in Statement of Financial Position, Offsetting Liabilities	0	0
Net Amounts of Financial Instruments Presented in Balance Sheet, Offsetting Liabilities	3,692	2,462
Carrying value of financial instruments, liabilities not offset in balance sheet	(3,181)	(2,050)
Securities Collateral, Liabilities Not Offset in Balance Sheet	(175)	(222)
Cash Collateral, Liabilities Not Offset in Balance Sheet	(2)	(33)
Financial instruments, amount of liabilities offset against collateral	334	157
Over the Counter - Bilateral
Offsetting Liabilities [Line Items]
Gross amount of recognized derivative liabilities	488	459
Gross amount of assets offset in balance sheet	0	0
Derivative liability, fair value, amount not offset against collateral	488	459
Financial instruments, amount not offset	(229)	(190)
Derivative, collateral, right to reclaim securities	(175)	(222)
Derivative, collateral, right to reclaim cash	(2)	(32)
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement	82	15
Derivative liability, not subject to master netting arrangement	235	126
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement	235	126
Exchange Cleared [Member]
Offsetting Liabilities [Line Items]
Gross amount of recognized derivative liabilities		1
Gross amount of assets offset in balance sheet		0
Derivative liability, fair value, amount not offset against collateral		1
Financial instruments, amount not offset		0
Derivative, collateral, right to reclaim securities		0
Derivative, collateral, right to reclaim cash		(1)
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement		0
Securities Lending and Similar Arrangements
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Financial Instruments, Offsetting Liabilities	2,969	1,876
Gross Amounts Offset in Statement of Financial Position, Offsetting Liabilities	0	0
Net Amounts of Financial Instruments Presented in Balance Sheet, Offsetting Liabilities	2,969	1,876
Carrying value of financial instruments, liabilities not offset in balance sheet	(2,952)	(1,860)
Securities Collateral, Liabilities Not Offset in Balance Sheet	0	0
Cash Collateral, Liabilities Not Offset in Balance Sheet	0	0
Financial instruments, amount of liabilities offset against collateral	$ 17	$ 16

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INVESTMENTS - Middle Market Loans by Key Credit Quality Indicators (Details) - Middle market loans	Mar. 31, 2020 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 305
2019	1,220
2018	715
2017	523
2016	191
Prior	84
Revolving Loans	454
Total Financing Receivable	3,492
BBB
Financing Receivable, Credit Quality Indicator [Line Items]
2020	9
2019	57
2018	52
2017	22
2016	12
Prior	0
Revolving Loans	15
Total Financing Receivable	167
BB
Financing Receivable, Credit Quality Indicator [Line Items]
2020	86
2019	277
2018	187
2017	140
2016	56
Prior	20
Revolving Loans	84
Total Financing Receivable	850
B
Financing Receivable, Credit Quality Indicator [Line Items]
2020	210
2019	827
2018	466
2017	309
2016	98
Prior	58
Revolving Loans	338
Total Financing Receivable	2,306
CCC
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	58
2018	10
2017	34
2016	25
Prior	4
Revolving Loans	15
Total Financing Receivable	146
CC Credit Rating
Financing Receivable, Credit Quality Indicator [Line Items]
2020	0
2019	1
2018	0
2017	18
2016	0
Prior	2
Revolving Loans	2
Total Financing Receivable	$ 23

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INVESTMENTS - Contractual and Economic Maturities of Investments in Fixed Maturities (Detail) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Available for sale:
Due in one year or less	[1]	$ 1,078
Due after one year through five years	[1]	8,992
Due after five years through 10 years	[1]	12,399
Due after 10 years	[1]	64,891
Mortgage- and asset-backed securities	[1]	458
Total fixed maturity securities, available for sale, amortized cost	[1]	87,818
Held to maturity:
Due in one year or less	[1]	0
Due after one year through five years	[1]	0
Due after five years through 10 years	[1]	49
Due after 10 years	[1]	23,229
Mortgage- and asset-backed securities	[1]	0
Total fixed maturity securities, held to maturity, amortized cost	[1]	23,278
Available for sale:
Due in one year or less		1,105
Due after one year through five years		8,806
Due after five years through 10 years		13,221
Due after 10 years		72,659
Mortgage- and asset-backed securities		497
Total fixed maturity securities, available for sale, fair value		96,288	$ 91,262
Held to maturity:
Due in one year or less		0
Due after one year through five years		0
Due after five years through 10 years		55
Due after 10 years		29,292
Mortgage- and asset-backed securities		0
Total fixed maturity securities, held to maturity, fair value		$ 29,347	$ 37,594

[1] Net of allowance for credit losses

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INVESTMENTS - Fair Value and Gross Unrealized Losses for Securities That Have Been in Continuous Unrealized Loss Position (Detail) - Fixed maturity securities - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	$ 18,043	$ 7,190
Total Unrealized Losses	2,141	385
Less than 12 months Fair Value	14,118	3,423
Less than 12 months Unrealized Losses	1,476	178
12 months or longer Fair Value	3,925	3,767
12 months or longer Unrealized Losses	665	207
Yen-denominated | Municipalities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	56	80
Total Unrealized Losses	1	3
Less than 12 months Fair Value	42	80
Less than 12 months Unrealized Losses	0	3
12 months or longer Fair Value	14	0
12 months or longer Unrealized Losses	1	0
Yen-denominated | Public utilities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	880
Total Unrealized Losses	93
Less than 12 months Fair Value	880
Less than 12 months Unrealized Losses	93
12 months or longer Fair Value	0
12 months or longer Unrealized Losses	0
Yen-denominated | Sovereign and supranational
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	701
Total Unrealized Losses	27
Less than 12 months Fair Value	701
Less than 12 months Unrealized Losses	27
12 months or longer Fair Value	0
12 months or longer Unrealized Losses	0
Yen-denominated | Banks/financial institutions
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	3,410	1,828
Total Unrealized Losses	557	89
Less than 12 months Fair Value	2,626	1,828
Less than 12 months Unrealized Losses	406	89
12 months or longer Fair Value	784	0
12 months or longer Unrealized Losses	151	0
Yen-denominated | Other corporate
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	2,829	636
Total Unrealized Losses	389	31
Less than 12 months Fair Value	2,677	636
Less than 12 months Unrealized Losses	357	31
12 months or longer Fair Value	152	0
12 months or longer Unrealized Losses	32	0
Yen-denominated | Japan government and agencies
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	725
Total Unrealized Losses	14
Less than 12 months Fair Value	725
Less than 12 months Unrealized Losses	14
12 months or longer Fair Value	0
12 months or longer Unrealized Losses	0
Dollar-denominated | Public utilities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	825	306
Total Unrealized Losses	50	10
Less than 12 months Fair Value	701	69
Less than 12 months Unrealized Losses	38	2
12 months or longer Fair Value	124	237
12 months or longer Unrealized Losses	12	8
Dollar-denominated | Sovereign and supranational
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	18
Total Unrealized Losses	1
Less than 12 months Fair Value	18
Less than 12 months Unrealized Losses	1
12 months or longer Fair Value	0
12 months or longer Unrealized Losses	0
Dollar-denominated | Banks/financial institutions
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	355	79
Total Unrealized Losses	21	4
Less than 12 months Fair Value	321	18
Less than 12 months Unrealized Losses	13	0
12 months or longer Fair Value	34	61
12 months or longer Unrealized Losses	8	4
Dollar-denominated | Other corporate
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	8,244	4,261
Total Unrealized Losses	988	248
Less than 12 months Fair Value	5,427	792
Less than 12 months Unrealized Losses	527	53
12 months or longer Fair Value	2,817	3,469
12 months or longer Unrealized Losses	$ 461	$ 195

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SHARE-BASED COMPENSATION - Additional Information (Detail) - USD ($) shares in Thousands, $ in Millions	1 Months Ended	3 Months Ended
	Feb. 29, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from stock options exercised		$ 6	$ 17
Tax benefit from exercise of stock options		$ 17	$ 22
Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, maximum number of shares issuable		75,000
Share-based compensation arrangement by share-based payment award, maximum number of shares issuable other than options and stock appreciation rights		38,000
Shares available for future grants under the long-term incentive plan		38,000
Long-term incentive plan awards, term (in years)		10 years
Long-term incentive plan awards, vesting period		3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized, restricted stock awards		$ 72
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number, shares		2,566		2,573
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition		2 years 6 months
Restricted stock awards, grants in period		1,376
Performance based Vesting Condition | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized, restricted stock awards		$ 35
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number, shares		1,700
Restricted stock awards, grants in period	409

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NOTES PAYABLE AND LEASE OBLIGATIONS - Additional Information (Details) $ in Millions, ¥ in Billions	1 Months Ended
	Jan. 31, 2020 USD ($)	Mar. 31, 2020 JPY (¥) series	Mar. 31, 2020 USD ($) series	Dec. 31, 2019 JPY (¥)
Debt Instrument [Line Items]
Number of Series of Senior Notes Issued Through a U.S. Public Debt Offering | series		4	4
Lines of credit
Debt Instrument [Line Items]
Debt instrument, debt default, amount | $			$ 0
.936% subordinate bond due April 2049
Debt Instrument [Line Items]
Debt instrument, principal amount		¥ 30.0		¥ 30.0
Debt instrument, interest rate		0.963%	0.963%	0.963%
Notes payable
Debt Instrument [Line Items]
Debt instrument, debt default, amount | $			$ 0
Senior notes
Debt Instrument [Line Items]
Debt instrument, principal amount		¥ 57.0
.300% senior notes due September 2025
Debt Instrument [Line Items]
Debt instrument, principal amount		¥ 12.4
Debt instrument, interest rate		0.30%	0.30%
.550% senior notes due March 2030
Debt Instrument [Line Items]
Debt instrument, principal amount		¥ 13.3
Debt instrument, interest rate		0.55%	0.55%
.750% senior notes due March 2032
Debt Instrument [Line Items]
Debt instrument, principal amount		¥ 20.7
Debt instrument, interest rate		0.75%	0.75%
.830% senior notes due March 2035
Debt Instrument [Line Items]
Debt instrument, principal amount		¥ 10.6
Debt instrument, interest rate		0.83%	0.83%
4.00% senior notes paid January 2020
Debt Instrument [Line Items]
Debt instrument, interest rate	4.00%	4.00%	4.00%	4.00%
Repayments of debt | $	$ 350

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INCOME TAXES - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Blended statutory income tax rate	21.40%	25.30%
Japan tax rate	28.00%

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BENEFIT PLANS - Net Periodic (Benefit) Cost Included in Acquisition and Operating Expenses (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Other Postretirement Benefits Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 0	$ 0
Interest cost	0	0
Expected return on plan assets	0	0
Amortization of net actuarial loss	1	0
Net periodic (benefit) cost	1	0
Japan | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	6	5
Interest cost	1	1
Expected return on plan assets	(2)	(2)
Amortization of net actuarial loss	1	1
Net periodic (benefit) cost	6	5
U.S. | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	7	6
Interest cost	8	9
Expected return on plan assets	(9)	(7)
Amortization of net actuarial loss	6	3
Net periodic (benefit) cost	$ 12	$ 11

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INVESTMENTS - Securities Lending Transactions Accounted for as Secured Borrowings (Details) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		$ 2,969	$ 1,876
Gross amount of recognized liabilities for securities lending		2,969	1,876
Japan government and agencies
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		2,318	1,013
Public utilities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		35	35
Sovereign and supranational
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		1	2
Banks/financial institutions
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		68	48
Other corporate
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		547	778
Maturity Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	651	863
Maturity Overnight and Continuous | Japan government and agencies
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	0	0
Maturity Overnight and Continuous | Public utilities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	35	35
Maturity Overnight and Continuous | Sovereign and supranational
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	1	2
Maturity Overnight and Continuous | Banks/financial institutions
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	68	48
Maturity Overnight and Continuous | Other corporate
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	547	778
Maturity up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		2,318	1,013
Maturity up to 30 Days | Japan government and agencies
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		2,318	1,013
Maturity up to 30 Days | Public utilities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		0	0
Maturity up to 30 Days | Sovereign and supranational
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		0	0
Maturity up to 30 Days | Banks/financial institutions
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		0	0
Maturity up to 30 Days | Other corporate
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		$ 0	$ 0

[1] The related loaned security, under the Company's U.S. securities lending program, can be returned to the Company at the transferee's discretion; therefore, they are classified as Overnight and Continuous.

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INVESTMENTS - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	[1]	$ (45)
(Addition to) release of allowance for credit losses	[2]	0	$ 2
Balance, end of period		(125)
Transitional real estate loans
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	[1]	(22)
Impact of Restatement on Opening Retained Earnings, before Tax				$ 2
(Addition to) release of allowance for credit losses		(3)
Balance, end of period		(27)
Commercial mortgage loans
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	[1]	(3)
Impact of Restatement on Opening Retained Earnings, before Tax				8
(Addition to) release of allowance for credit losses		0
Balance, end of period		(11)
Middle market loans
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	[1]	(20)
Impact of Restatement on Opening Retained Earnings, before Tax				33
(Addition to) release of allowance for credit losses		(34)
Balance, end of period		(87)
Held-to-maturity securities
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	[1]	0
Impact of Restatement on Opening Retained Earnings, before Tax				10
(Addition to) release of allowance for credit losses		1
Balance, end of period		(9)
Available-for-sale securities
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	[1]	0
Impact of Restatement on Opening Retained Earnings, before Tax				0
(Addition to) release of allowance for credit losses		(63)
Balance, end of period		(63)
Reinsurance recoverables
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	[1]	0
Impact of Restatement on Opening Retained Earnings, before Tax				$ 11
(Addition to) release of allowance for credit losses		0
Balance, end of period		$ (11)

[1] U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

[2] U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

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DERIVATIVE INSTRUMENTS - Gains (Losses) Recognized on Fair Value Hedging Relationships (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) recognized for derivatives		$ (16)	$ 4
Gains (losses) on derivatives excluded from effectiveness testing	[1]	(7)	(15)
Gains (losses) on derivatives included in effectiveness testing	[2]	(9)	19
Gains (losses) recognized for hedged items	[2]	10	(18)
Net realized gains (losses) recognized for fair value hedge		1	1
Fixed maturity securities | Foreign currency forwards
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) recognized for derivatives		(16)	9
Gains (losses) on derivatives excluded from effectiveness testing	[1]	(7)	(10)
Gains (losses) on derivatives included in effectiveness testing	[2]	(9)	19
Gains (losses) recognized for hedged items	[2]	10	(18)
Net realized gains (losses) recognized for fair value hedge		$ 1	1
Fixed maturity securities | Foreign currency options
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) recognized for derivatives			(4)
Gains (losses) on derivatives excluded from effectiveness testing	[1]		(4)
Gains (losses) on derivatives included in effectiveness testing	[2]		0
Gains (losses) recognized for hedged items	[2]		0
Net realized gains (losses) recognized for fair value hedge			0
Fixed maturity securities | Interest rate swaptions
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) recognized for derivatives			(1)
Gains (losses) on derivatives excluded from effectiveness testing	[1]		(1)
Gains (losses) on derivatives included in effectiveness testing	[2]		0
Gains (losses) recognized for hedged items	[2]		0
Net realized gains (losses) recognized for fair value hedge			$ 0

[1] Gains (losses) excluded from effectiveness testing includes the forward point on foreign currency forwards and time value change on foreign currency options which are reported in the consolidated statement of earnings as net investment gains (losses). It also includes the change in the fair value of the interest rate swaptions related to the time value of the swaptions which is recognized as a component of other comprehensive income (loss).

[2] Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month periods ended March 31, 2020 and 2019, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial.

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INVESTMENTS - Held-to-Maturity Debt Securities (Details) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		$ 23,287	$ 30,085
Allowance for Credit Loss		9
Net Carrying Amount	[1]	23,278
Gross Unrealized Gains		6,069	7,519
Gross Unrealized Losses		0	10
Fair Value		29,347	37,594
Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		23,287	30,085
Allowance for Credit Loss		9
Net Carrying Amount		23,278
Gross Unrealized Gains		6,069	7,519
Gross Unrealized Losses		0	10
Fair Value		29,347	37,594
Japan government and agencies | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		22,387	22,241
Allowance for Credit Loss		3
Net Carrying Amount		22,384
Gross Unrealized Gains		5,810	6,050
Gross Unrealized Losses		0	0
Fair Value		28,194	28,291
Municipalities
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		362	821
Fair Value		484	1,083
Municipalities | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		362	821
Allowance for Credit Loss		0
Net Carrying Amount		362
Gross Unrealized Gains		122	262
Gross Unrealized Losses		0	0
Fair Value		484	1,083
Mortgage- and asset-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost			16
Fair Value			17
Mortgage- and asset-backed securities | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost			16
Gross Unrealized Gains			1
Gross Unrealized Losses			0
Fair Value			17
Public utilities
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		45	2,535
Fair Value		59	2,954
Public utilities | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		46	2,535
Allowance for Credit Loss		1
Net Carrying Amount		45
Gross Unrealized Gains		14	419
Gross Unrealized Losses		0	0
Fair Value		59	2,954
Sovereign and supranational
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		464	1,123
Fair Value		578	1,320
Sovereign and supranational | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		469	1,123
Allowance for Credit Loss		5
Net Carrying Amount		464
Gross Unrealized Gains		114	197
Gross Unrealized Losses		0	0
Fair Value		578	1,320
Banks/financial institutions
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost			916
Fair Value			1,018
Banks/financial institutions | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost			916
Gross Unrealized Gains			105
Gross Unrealized Losses			3
Fair Value			1,018
Other corporate
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		23	2,433
Fair Value		32	2,911
Other corporate | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost		23	2,433
Allowance for Credit Loss		0
Net Carrying Amount		23
Gross Unrealized Gains		9	485
Gross Unrealized Losses		0	7
Fair Value		$ 32	$ 2,911

[1] Net of allowance for credit losses

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SHAREHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note [Abstract]

Schedule of Common Stock Outstanding Roll Forward

The following table is a reconciliation of the number of shares of the Company's common stock for the three-month periods ended March 31.

(In thousands of shares)	2020		2019
Common stock - issued:
Balance, beginning of period	1,349,309		1,347,540
Exercise of stock options and issuance of restricted shares	1,341		1,060
Balance, end of period	1,350,650		1,348,600
Treasury stock:
Balance, beginning of period	622,516		592,254
Purchases of treasury stock:
Share repurchase program	9,984		10,237
Other	508		561
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(468	)	(430	)
Exercise of stock options	(45	)	(231	)
Other	(227	)	(278	)
Balance, end of period	632,268		602,113
Shares outstanding, end of period	718,382		746,487

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share for the following periods.

	Three Months Ended March 31,
(In thousands)	2020		2019
Anti-dilutive share-based awards		744		22

Changes in Accumulated Other Comprehensive Income (Loss)

The tables below are reconciliations of accumulated other comprehensive income by component for the following periods.

Changes in Accumulated Other Comprehensive Income

Three Months Ended March 31, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)				Unrealized Gains (Losses) on Investment Securities				Unrealized Gains (Losses) on Derivatives				Pension Liability Adjustment				Total
Balance at December 31, 2019		$	(1,623	)		$	8,548			$	(33	)		$	(277	)		$	6,615
Cumulative effect of change in accounting principle - ASU 2019-04		0				848				0				0				848
Balance at January 1, 2020		$	(1,623	)		$	9,396			$	(33	)		$	(277	)		$	7,463
Other comprehensive income (loss) before reclassification		80				(3,359		)		(2		)		(6		)		(3,287		)
Amounts reclassified from accumulated other comprehensive income (loss)		0				6				0				6				12
Net current-period other comprehensive income (loss)		80				(3,353		)		(2		)		0				(3,275		)
Balance at March 31, 2020		$	(1,543	)		$	6,043			$	(35	)		$	(277	)		$	4,188

All amounts in the table above are net of tax.

Three Months Ended March 31, 2019
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)				Unrealized Gains (Losses) on Investment Securities				Unrealized Gains (Losses) on Derivatives				Pension Liability Adjustment				Total
Balance at December 31, 2018		$	(1,847	)		$	4,234			$	(24	)		$	(212	)		$	2,151
Other comprehensive income (loss) before reclassification		(1		)		2,340				(2		)		3				2,340
Amounts reclassified from accumulated other comprehensive income (loss)		0				(13		)		0				3				(10		)
Net current-period other comprehensive income (loss)		(1		)		2,327				(2		)		6				2,330
Balance at March 31, 2019		$	(1,848	)		$	6,561			$	(26	)		$	(206	)		$	4,481

Reclassification Out Of Accumulated Other Comprehensive Income

The tables below summarize the amounts reclassified from each component of accumulated other comprehensive income into net earnings for the following periods.

Reclassifications Out of Accumulated Other Comprehensive Income

(In millions)	Three Months Ended March 31, 2020
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale securities		$	(7	)	Net investment gains (losses)
		1			Tax (expense) or benefit(1)
		$	(6	)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(8	)	Acquisition and operating expenses(2)
Prior service (cost) credit		0			Acquisition and operating expenses(2)
		2			Tax (expense) or benefit(1)
		$	(6	)	Net of tax
Total reclassifications for the period		$	(12	)	Net of tax

⁽¹⁾ Based on 21% blended tax rate

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details).

(In millions)	Three Months Ended March 31, 2019
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale securities		$	17		Net investment gains (losses)
		(4		)	Tax (expense) or benefit(1)
		$	13		Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(4	)	Acquisition and operating expenses(2)
Prior service (cost) credit		0			Acquisition and operating expenses(2)
		1			Tax (expense) or benefit(1)
		$	(3	)	Net of tax
Total reclassifications for the period		$	10		Net of tax

⁽¹⁾ Based on 25% blended tax rate

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details).

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BUSINESS SEGMENT INFORMATION - Operations by Segment - Revenues (Details) $ in Millions		3 Months Ended
		Mar. 31, 2020 USD ($) segment	Mar. 31, 2019 USD ($)
Segment Reporting, Revenue Reconciling Item [Line Items]
Number of reportable insurance business segments | segment		2
Net earned premiums		$ 4,681	$ 4,691
Net investment income		904	878
Total adjusted revenues		5,594	5,537
Net investment gains (losses)	[1],[2],[3]	(432)	120
Total revenues		5,162	5,657
Aflac Japan
Segment Reporting, Revenue Reconciling Item [Line Items]
Net earned premiums		3,150	3,180
Adjusted net investment income	[1],[3]	642	610
Other income		11	12
Total revenues		3,803	3,802
Hedge costs		55	62
Net interest cash flows from derivatives		(6)	(7)
Aflac U.S.
Segment Reporting, Revenue Reconciling Item [Line Items]
Net earned premiums		1,483	1,461
Net investment income		177	177
Other income		27	2
Total revenues		1,687	1,640
Corporate and other
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues	[2]	104	95
Hedge income		$ 29	$ 20

[1] Amortized hedge costs of $55 and $62 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

[2] Amortized hedge income of $29 and $20 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.

[3] Net interest cash flows from derivatives associated with certain investment strategies of $(6) and $(7) for the three-month periods ended March 31, 2020 and 2019, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States (U.S.) and Japan. The Company’s operations consist of two reportable business segments: Aflac Japan and Aflac U.S. The Parent Company's primary insurance subsidiaries are Aflac Life Insurance Japan Ltd. (Aflac Japan) and American Family Life Assurance Company of Columbus (Aflac); Continental American Insurance Company (CAIC), branded as Aflac Group Insurance (AGI); American Family Life Assurance Company of New York (Aflac New York); Tier One Insurance Company (TOIC) and Argus Dental & Vision, Inc (Argus), which provides a platform for Aflac Dental and Vision in the U.S. (collectively, Aflac U.S.). Aflac Japan's revenues, including net gains and losses on its investment portfolio, accounted for 67% and 68% of the Company's total revenues in the three-month periods ended March 31, 2020 and 2019, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 84% at March 31, 2020 and December 31, 2019, respectively.

Basis of Presentation

The Company prepares its financial statements in accordance with U.S. generally accepted accounting principles (U.S. GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification^TM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates based on currently available information when recording transactions resulting from business operations. The most significant items on the Company's balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments and derivatives, deferred policy acquisition costs (DAC), liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, the Company believes the amounts provided are adequate.

The unaudited consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated.

In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of March 31, 2020, and December 31, 2019, and the consolidated statements of earnings and comprehensive income (loss), shareholders' equity and cash flows for the three-month periods ended March 31, 2020 and 2019. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2019 (2019 Annual Report).

COVID-19: On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. The impact of COVID-19 on the Company is evolving and its future effects are uncertain and the Company is closely monitoring the effects and risks of COVID-19 to assess its impact on the Company's business, financial condition, results of operations, liquidity and capital position.

Liquidity and Capital Resources

The Company entered the crisis having maintained capital ratios in Japan and the U.S. at a level designed to absorb a degree of market volatility. To further support liquidity and capital resources, the Parent Company, in March 2020, issued four series of senior notes totaling ¥57.0 billion and, in April 2020, issued $1 billion in senior notes through public debt offerings under its U.S. shelf registration statement. The Company has available liquidity in its unsecured revolving credit facilities of $1.0 billion and ¥100.0 billion, respectively, and currently has no borrowings under either of these facilities. In April 2020, Aflac increased its internal limit for Federal Home Loan Bank of Atlanta (FHLB) borrowings to $800 million, $300 million of which the Company has designated to be used

for short-term liquidity needs and subject to qualified collateral availability and other conditions. The Company continues to evaluate other sources of liquidity including reinvestment cash flows and selling investments.

Major government initiatives

Government authorities in Japan and the U.S. have implemented several initiatives in response to the COVID-19 pandemic, including actions designed to mitigate the adverse health effects of the virus and those designed to provide broad-based relief and economic support to all aspects of the economy. Given that these measures were recently implemented, it is too early to determine what impacts these initiatives will have on the Company’s business, results of operations, financial condition, liquidity, capital position, investment portfolio, workforce, distribution partners and vendors.

Reclassifications: 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.

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Standard	Description	Date of Adoption	Effect on Financial Statements or Other Significant Matters
Accounting Standards Update (ASU) 2019-04 Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments	In April 2019, the FASB issued Codification improvements to clarify and correct certain areas of guidance amended as part of ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities; ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; and ASU 2017-12, Derivative and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The most significant of these improvements to the Company was related to the Codification improvement to ASU 2017-12 and the clarification that a one-time reclassification of assets that are eligible to be hedged under the last-of-layer method (i.e., certain pre-payable securities) from held-to-maturity to available-for-sale is allowed under the new hedge accounting guidance and would not impact the Company’s ability to continue to classify other bonds as held-to-maturity. The other amendments related to ASU 2017-12 and 2016-01 are either not significant, or were previously implemented as part of the related ASU adoptions. Applicable amendments related to ASU 2016-13 are discussed within the recent adoption of that update below.	January 1, 2020	The adoption of this guidance resulted in a reclassification of $6.9 billion (at amortized cost) of pre-payable fixed-maturity securities from the held-to-maturity to the available-for-sale category. The reclassification resulted in recording in accumulated other comprehensive income a net unrealized gain of $848 million on an after-tax basis, based on the securities’ fair values on the reclassification date. The reclassification impacted the adoption of ASU 2016-13 (see ASU 2016-13 below for additional details).
ASU 2018-17 Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities	In October 2018, the FASB issued targeted improvements which provide that indirect interests held through related parties under common control should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.	January 1, 2020	The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
ASU 2018-13 Fair Value Measurement, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement	In August 2018, the FASB issued amendments to the disclosure requirements on fair value measurements. The amendments remove, modify, and add certain disclosures.	January 1, 2020	The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations, or disclosures.

Standard	Description	Date of Adoption	Effect on Financial Statements or Other Significant Matters
ASU 2017-04 Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment	In January 2017, the FASB issued amendments simplifying the subsequent measurement of goodwill. An entity, under this update, is no longer required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, the entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount.	January 1, 2020	The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
ASU 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments as clarified and amended by: ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, ASU 2019-05, Financial Instruments - Credit Losses (Topic 326), Targeted Transition Relief and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments- Credit Losses	In June 2016, the FASB issued amendments that require a financial asset (or a group of financial assets) measured at amortized cost to be presented net of an allowance for credit losses (Credit Losses ASU) in order to reflect the amount expected to be collected on the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information. Credit losses on available-for-sale debt securities will be measured in a manner similar to current U.S. GAAP; however, the amendments require that credit losses be presented as an allowance rather than as a write-down. Other amendments include changes to the balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant credit deterioration since origination (PCD financial assets).	January 1, 2020	The Company recorded a cumulative effect adjustment with a decrease to beginning 2020 retained earnings of $56 million, net of taxes. See Note 3 of the Notes to the Consolidated Financial Statements for credit loss disclosures. The following line items in the consolidated balance sheets were most significantly impacted by the adoption of the new accounting standard: • Fixed maturity securities held to maturity, at amortized cost • Commercial mortgage and other loans • Reinsurance recoverable, included within Other assets

Accounting Pronouncements Pending Adoption

Standard	Description	Effect on Financial Statements or Other Significant Matters
ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	In March 2020, the FASB issued amendments that provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU only apply to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. An entity may elect to apply the amendments as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued.	The Company is thoroughly evaluating the adoption of this guidance and the impact on the Company’s financial position, results of operations, and disclosures.
ASU 2020-01 Clarifying the interactions between Topic 321, Topic 323, and Topic 815	In January 2020, the FASB issued amendments clarifying that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. In addition, the amendments clarify that for the purpose of applying certain derivative guidance in Topic 815, an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. An entity also would evaluate the remaining characteristics in Topic 815 to determine the accounting for those forward contracts and purchased options. The amendments are effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted.	The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures.
ASU 2018-12 Financial Services - Insurance, Targeted Improvements to the Accounting for Long-Duration Contracts as clarified and amended by: ASU 2019-09 Financial Services - Insurance (Topic 944): Effective Date	In August 2018, the FASB issued amendments that will significantly change how insurers account for long-duration contracts. The amendments will change existing recognition, measurement, presentation, and disclosure requirements. Issues addressed in the new guidance include: 1) a requirement to review and, if there is a change, update assumptions for the liability for future policy benefits at least annually, and to update the discount rate assumption quarterly, 2) accounting for market risk benefits at fair value, 3) simplified amortization for deferred acquisition costs, and 4) enhanced financial statement presentation and disclosures. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. In November 2019, the FASB issued an amendment extending the effective date for public business entities that meet the definition of an SEC filer, excluding entities eligible to be small reporting companies as defined by the SEC, by one year. The amendments are now effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early application of the amendments is permitted.	The Company is thoroughly evaluating the impact of adoption and expects that the adoption will have a significant impact on the Company’s financial position, results of operations, and disclosures. The Company anticipates that the requirement to update assumptions for liability for future policy benefits will have a significant impact on its results of operations, systems, processes and controls while the requirement to update the discount rate will have a significant impact on its equity. The Company has no products with market risk benefits. The Company does not expect to early adopt the updated standard and has tentatively selected a modified retrospective transition method.

Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company's business. 

For additional information on new accounting pronouncements and recent accounting guidance and their impact, if any, on the Company's financial position, results of operations or disclosures, see Note 1 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

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NOTES PAYABLE AND LEASE OBLIGATIONS

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

NOTES PAYABLE AND LEASE OBLIGATIONS

NOTES PAYABLE AND LEASE OBLIGATIONS

A summary of notes payable and lease obligations follows:

(In millions)	March 31, 2020			December 31, 2019
4.00% senior notes paid January 2020		$	0		$	348
3.625% senior notes due June 2023		698			698
3.625% senior notes due November 2024		747			747
3.25% senior notes due March 2025		448			448
2.875% senior notes due October 2026		298			298
6.90% senior notes due December 2039		220			220
6.45% senior notes due August 2040		254			254
4.00% senior notes due October 2046		393			394
4.750% senior notes due January 2049		541			541
Yen-denominated senior notes and subordinated debentures:
.300% senior notes due September 2025 (principal amount ¥ 12.4 billion)		113			0
.932% senior notes due January 2027 (principal amount ¥60.0 billion)		549			545
.500% senior notes due December 2029 (principal amount ¥12.6 billion)		115			114
.550% senior notes due March 2030 (principal ¥ 13.3 billion)		121			0
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)		268			266
.843% senior notes due December 2031 (principal amount ¥9.3 billion)		85			84
.750% senior notes due March 2032 (principal amount ¥20.7 billion)		189			0
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)		139			138
.934% senior notes due December 2034 (principal amount ¥9.8 billion)		89			88
.830% senior notes due March 2035 (principal amount ¥10.6 billion)		97			0
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)		81			81
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)		57			57
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)		547			543
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion)		274			272
Yen-denominated loans:
Variable interest rate loan due September 2026 (.42% in 2020 and 2019, principal amount ¥5.0 billion)		46			45
Variable interest rate loan due September 2029 (.57% in 2020 and 2019, principal amount ¥25.0 billion)		228			227
Finance lease obligations payable through 2026		12			12
Operating lease obligations payable through 2028		149			149
Total notes payable and lease obligations		$	6,758		$	6,569

Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes.

In March 2020, the Parent Company issued four series of senior notes totaling ¥57.0 billion through a public debt offering under its U.S. shelf registration statement. The first series, which totaled ¥12.4 billion, bears interest at a fixed rate of .300% per annum, payable semi­annually and will mature in September 2025. The second series, which totaled ¥13.3 billion, bears interest at a fixed rate of .550% per annum, payable semi-annually, and will mature in March 2030. The third series, which totaled ¥20.7 billion, bears interest at a fixed rate of .750% per annum, payable semi­annually and will mature in March 2032. The fourth series, which totaled ¥10.6 billion, bears interest at a fixed rate of .830% per annum, payable semi-annually, and will mature in March 2035. These notes may only be redeemed before maturity, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance.

In January 2020, the Parent Company used the net proceeds from senior notes issued in December 2019 to redeem $350 million of its 4.00% fixed-rate senior notes due February 2022.

A summary of the Company's lines of credit as of March 31, 2020 follows:

Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
Aflac Incorporated and Aflac	uncommitted bilateral	364 days	December 18, 2020	$100 million	$0 million	The rate quoted by the bank and agreed upon at the time of borrowing	Up to 3 months	None	General corporate purposes
Aflac Incorporated	unsecured revolving	5 years	March 29, 2024, or the date commitments are terminated pursuant to an event of default	¥100.0 billion	¥0.0 billion	A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period	No later than March 29, 2024	.30% to .50%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	unsecured revolving	5 years	November 18, 2024, or the date commitments are terminated pursuant to an event of default	$1.0 billion	$0.0 billion	A rate per annum equal to, at the Company's option, either, (a) LIBOR adjusted for certain costs or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin	No later than November 18, 2024	.085% to .225%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	uncommitted bilateral	None specified	None specified	$50 million	$0 million	A rate per annum equal to, at the Parent Company's option, either (a) a eurocurrency rate determined by reference to the agent's LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the greater of (i) the prime rate as determined by the agent, and (ii) the sum of 0.50% and the federal funds rate for such day	Up to 3 months	None	General corporate purposes
Aflac(1)	uncommitted revolving	364 days	November 30, 2020	$250 million	$82 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	April 2, 2020(2)	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	November 25, 2020	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac New York(1)	uncommitted revolving	364 days	March 20, 2021	$25 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
CAIC(1)	uncommitted revolving	364 days	March 20, 2021	$15 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
Tier One Insurance Company(1)	uncommitted revolving	364 days	March 20, 2021	$.3 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes

⁽¹⁾ Intercompany credit agreement

⁽²⁾ Renewed in April 2020 with an expiration date of April 2, 2021

The Company was in compliance with all of the covenants of its notes payable and lines of credit at March 31, 2020. No events of default or defaults occurred during the three-month period ended March 31, 2020.

For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

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Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions		Mar. 31, 2020		Dec. 31, 2019
Available for sale, fixed maturity securities, amortized cost		$ 87,881		$ 79,371
Available for sale, fixed maturity securities, allowance for credit losses		63
Held to maturity, fixed maturity securities, fair value		29,347		37,594
Held-to-maturity, fixed maturity securities, allowance for credit losses		9
Commercial mortgage and other loans		10,750		9,569
Commercial mortgage and other loans, allowance for credit losses		125		45	[1]
Other investments		$ 1,843		$ 1,477
Common stock, par value (in dollars per share)		$ 0.10		$ 0.10
Common stock, shares authorized (in shares)		1,900,000		1,900,000
Common stock, shares issued (in shares)		1,350,650		1,349,309
Consolidated Entity Excluding Variable Interest Entities (VIE)
Available for sale, fixed maturity securities, amortized cost		$ 84,673		$ 76,063
Available for sale, fixed maturity securities, allowance for credit losses		63
Variable Interest Entity, Consolidated
Available for sale, fixed maturity securities, amortized cost		3,208	[2]	3,308
Commercial mortgage and other loans		9,051		7,956
Other investments	[3]	$ 550		$ 494

[1] U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

[2] Net of allowance for credit losses

[3] Consists entirely of alternative investments in limited partnerships

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 20, 2020
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-07434
Entity Registrant Name	Aflac Incorporated
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-1167100
Entity Address, Address Line One	1932 Wynnton Road
Entity Address, City or Town	Columbus,
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	31999
City Area Code	706.
Local Phone Number	323.3431
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		717,507,919
Amendment Flag	false
Entity Central Index Key	0000004977
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
NEW YORK STOCK EXCHANGE, INC.
Title of 12(b) Security	Common Stock, $.10 par value per share
Trading Symbol	AFL
Security Exchange Name	NYSE

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DERIVATIVE INSTRUMENTS

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

The Company's freestanding derivative financial instruments have historically consisted of:

• foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio

• foreign currency forwards and options used to economically hedge certain portions of forecasted cash flows denominated in yen and hedge the Company's long term exposure to a weakening yen

• cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with certain senior notes and subordinated debentures

• foreign currency swaps and, in prior periods, credit default swaps that are associated with investments in special-purpose entities, including VIEs where the Company is the primary beneficiary

• interest rate swaps used to economically hedge interest rate fluctuations in certain variable-rate investments

• interest rate swaptions used to hedge changes in the fair value associated with interest rate fluctuations for certain U.S. dollar-denominated available-for-sale fixed-maturity securities.

Some of the Company's derivatives are designated as cash flow hedges, fair value hedges or net investment hedges; however, other derivatives do not qualify for hedge accounting or the Company elects not to designate them as accounting hedges.

Derivative Types

Foreign currency forwards and options are executed for the Aflac Japan segment in order to hedge the currency risk on the carrying value of certain U.S. dollar-denominated investments. The average maturity of these forwards and options can change depending on factors such as market conditions and types of investments being held. In situations where the maturity of the forwards and options is shorter than the underlying investment being hedged, the Company may enter into new forwards and options near maturity of the existing derivative in order to continue hedging the underlying investment. In forward transactions, Aflac Japan agrees with another party to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. Aflac Japan also executes foreign currency option transactions in a collar strategy, where Aflac Japan agrees with another party to simultaneously purchase put options and sell call options. In the purchased put transactions, Aflac Japan obtains the option to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. In the sold call transaction, Aflac Japan agrees to sell a fixed amount of yen and buy a corresponding amount of U.S. dollars at a specified future date. The combination of purchasing the put option and selling the call option results in no net premium being paid (i.e. a costless or zero-cost collar). Additionally, the Company enters into purchased options, acting as caps to protect the downside of the sold call options beyond a specified level. As opposed to the collar strategies which are fair value hedges, these sold call option caps are classified as non-qualifying hedges.

From time to time, the Company may also enter into foreign currency forwards and options to hedge the currency risk associated with the net investment in Aflac Japan. In these forward transactions, Aflac agrees with another party to buy a fixed amount of U.S. dollars and sell a corresponding amount of yen at a specified price at a specified future date. In the option transactions, the Company may use a combination of foreign currency options to protect expected future cash flows by simultaneously purchasing yen put options (options that protect against a weakening yen) and selling yen call options (options that limit participation in a strengthening yen). The combination of these two actions create a zero-cost collar. Additionally, the Company enters into purchased options to hedge cash flows from the net investment in Aflac Japan.

The Company enters into foreign currency swaps pursuant to which it exchanges an initial principal amount in one currency for an initial principal amount of another currency, with an agreement to re-exchange the principal amounts at a future date. There may also be periodic exchanges of payments at specified intervals based on the agreed upon rates and notional amounts. Foreign currency swaps are used primarily in the consolidated VIEs in the Company's Aflac Japan portfolio to convert foreign-denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations. The Company also uses foreign currency swaps to economically convert certain of its U.S. dollar-denominated senior note and subordinated debenture principal and interest obligations into yen-denominated obligations.

In order to reduce investment income volatility from its variable-rate investments, the Company enters into receive–fixed, pay–floating interest rate swaps. These derivatives are cleared and settled through a central clearinghouse.

Swaptions are used to mitigate the adverse impact resulting from significant changes in the fair value of U.S. dollar-denominated available-for-sale securities due to fluctuation in interest rates. In a payer swaption, the Company pays a premium to obtain the right, but not the obligation, to enter into a swap contract where it will pay a fixed rate and receive a floating rate. Interest rate swaption collars are combinations of two swaption positions. In order to maximize the efficiency of the collars while minimizing cost, a collar strategy is used whereby the Company purchases a long payer swaption (the Company purchases an option that allows it to enter into a swap where the Company will pay the fixed rate and receive the floating rate of the swap) and sells a short receiver swaption (the Company sells an option that provides the counterparty with the right to enter into a swap where the Company will receive the fixed rate and pay the floating rate of the swap). The combination of purchasing the long payer swaption and selling the short receiver swaption results in no net premium being paid (i.e. a costless or zero-cost collar).

Derivative Balance Sheet Classification

The table below summarizes the balance sheet classification of the Company's derivative fair value amounts, as well as the gross asset and liability fair value amounts. The fair value amounts presented do not include income accruals. Derivative assets are included in “Other Assets,” while derivative liabilities are included in “Other Liabilities” within the Company’s Consolidated Balance Sheets. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not reflective of exposure or credit risk.

		March 31, 2020									December 31, 2019
(In millions)				Asset Derivatives			Liability Derivatives						Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount			Fair Value			Fair Value			Notional Amount			Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps - VIE		$	75		$	0		$	11		$	75		$	0		$	8
Total cash flow hedges		75			0			11			75			0			8
Fair value hedges:
Foreign currency forwards		63			0			1			964			0			38
Foreign currency options		8,809			12			23			11,573			0			5
Interest rate swaptions		243			0			0			243			0			0
Total fair value hedges		9,115			12			24			12,780			0			43
Net investment hedge:
Foreign currency forwards		4,985			85			6			4,952			72			2
Foreign currency options		2,040			7			0			2,000			0			0
Total net investment hedge		7,025			92			6			6,952			72			2
Non-qualifying strategies:
Foreign currency swaps		2,250			66			38			2,800			72			78
Foreign currency swaps - VIE		2,587			89			224			2,587			169			118
Foreign currency forwards		20,614			184			420			19,821			166			337
Foreign currency options		9,248			8			0			9,553			0			0
Interest rate swaps		2,370			21			0			7,120			3			0
Interest rate swaptions		7			0			0			7			0			0
Total non-qualifying strategies		37,076			368			682			41,888			410			533
Total derivatives		$	53,291		$	472		$	723		$	61,695		$	482		$	586

Cash Flow Hedges

For certain variable-rate U.S. dollar-denominated available-for-sale securities held by Aflac Japan via consolidated VIEs, foreign currency swaps are used to swap the USD variable rate interest and principal payments to fixed rate JPY interest and principal payments. The Company has designated foreign currency swaps as a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset (“cash flow” hedge). The remaining maximum length of time for which these cash flows are hedged is approximately seven years. The derivatives in the Company's consolidated VIEs that are not designated as accounting hedges are discussed in the "non-qualifying strategies" section of this note.

Fair Value Hedges

The Company designates and accounts for certain foreign currency forwards, options, and interest rate swaptions as fair value hedges when they meet the requirements for hedge accounting. The Company recognizes gains and losses on these derivatives as well as the offsetting gain or loss on the related hedged items in current earnings.

Foreign currency forwards and options hedge the foreign currency exposure of certain U.S. dollar-denominated available-for-sale fixed-maturity investments held in Aflac Japan. The change in the fair value of the foreign currency forwards related to the changes in the difference between the spot rate and the forward price is excluded from the assessment of hedge effectiveness. The change in fair value of the foreign currency option related to the time value of the option is recognized in current earnings and is excluded from the assessment of hedge effectiveness.

Interest rate swaptions hedge the interest rate exposure of certain U.S. dollar-denominated available-for-sale securities held in Aflac Japan. For these hedging relationships, the Company excludes time value from the assessment of hedge effectiveness

and recognizes changes in the intrinsic value of the swaptions in current earnings within net investment income. The change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into earnings (net investment income) over its legal term.

The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges.

Fair Value Hedging Relationships

(In millions)		Hedging Derivatives									Hedged Items
Hedging Derivatives	Hedged Items	Total Gains (Losses)			Gains (Losses) Excluded from Effectiveness Testing(1)			Gains (Losses) Included in Effectiveness Testing(2)			Gains (Losses)(2)			Net Investment Gains (Losses) Recognized for Fair Value Hedge
Three Months Ended March 31, 2020:
Foreign currency forwards	Fixed maturity securities	$	(16	)	$	(7	)	$	(9	)	$	10		$	1
Total gains (losses)		$	(16	)	$	(7	)	$	(9	)	$	10		$	1
Three Months Ended March 31, 2019:
Foreign currency forwards	Fixed maturity securities	$	9		$	(10	)	$	19		$	(18	)	$	1
Foreign currency options	Fixed maturity securities	(4		)	(4		)	0			0			0
Interest rate swaptions	Fixed maturity securities	(1		)	(1		)	0			0			0
Total gains (losses)		$	4		$	(15	)	$	19		$	(18	)	$	1

⁽¹⁾ Gains (losses) excluded from effectiveness testing includes the forward point on foreign currency forwards and time value change on foreign currency options which are reported in the consolidated statement of earnings as net investment gains (losses). It also includes the change in the fair value of the interest rate swaptions related to the time value of the swaptions which is recognized as a component of other comprehensive income (loss).

⁽²⁾ Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month periods ended March 31, 2020 and 2019, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial.

The following table shows the carrying amounts of assets designated and qualifying as hedged items in fair value hedges of interest rate risk and the related cumulative hedge adjustment included in the carrying amount.

(In millions)	Carrying Amount of the Hedged Assets/(Liabilities)(1)					Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
		March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Fixed maturity securities		$	4,469	$	4,633	$	249	$	256

⁽¹⁾ The balance includes hedging adjustment on discontinued hedging relationships of $249 in 2020 and $256 in 2019.

The total notional amount of the Company's interest rate swaptions was $243 in 2020 and $243 in 2019. The hedging adjustment related to these derivatives was immaterial.

Net Investment Hedge

The Company's investment in Aflac Japan is affected by changes in the yen/dollar exchange rate. To mitigate this exposure, the Parent Company's yen-denominated liabilities (see Note 8) have been designated as non-derivative hedges. Beginning in July 2019, certain foreign currency forwards and options were designated as derivative hedges of the foreign currency exposure of the Company's net investment in Aflac Japan. Prior to April 1, 2018, foreign currency forwards and options were also designated as derivative hedges of the foreign currency exposure of the Company's net investment in Aflac Japan.

The Company's net investment hedge was effective during the three-month periods ended March 31, 2020 and 2019, respectively.

Non-qualifying Strategies

For the Company's derivative instruments in consolidated VIEs that do not qualify for hedge accounting treatment, all changes in their fair value are reported in current period earnings within net investment gains (losses). The amount of gain or loss recognized in earnings for the Company's VIEs is attributable to the derivatives in those investment structures. While the change in value of the swaps is recorded through current period earnings, the change in value of the available-for-sale fixed maturity securities associated with these swaps is recorded through other comprehensive income.

As of March 31, 2020, the Parent Company had $2.3 billion notional amount of cross-currency interest rate swap agreements related to certain of its U.S. dollar-denominated senior notes to effectively convert a portion of the interest on the notes from U.S dollar to Japanese yen. Changes in the values of these swaps are recorded through current period earnings. For additional information regarding these swaps, see Note 9 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

The Company uses foreign exchange forwards and options to economically mitigate the currency risk of some of its U.S. dollar-denominated loan receivables held within the Aflac Japan segment. These arrangements are not designated as accounting hedges, as the foreign currency remeasurement of the loan receivables impacts current period earnings, and generally offsets gains and losses from foreign exchange forwards within net investment gains (losses). The Company also has certain foreign exchange forwards on U.S. dollar-denominated available-for-sale securities where hedge accounting is not being applied.

Prior to July 2019, in order to economically mitigate currency risk of future yen dividends from Aflac Japan while lowering consolidated hedge costs associated with Aflac Japan's U.S. dollar investment hedging, the Parent Company entered into offsetting hedge positions using foreign exchange forwards. This activity is reported in the Corporate and other segment. As of July 1, 2019, the Parent Company designates these foreign exchange forward contracts as accounting hedges of its net investment in Aflac Japan.

The Company uses interest rate swaps to economically convert the variable rate investment income to a fixed rate on certain variable-rate investments.

Impact of Derivatives and Hedging Instruments

The following table summarizes the impact to net investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments.

	Three Months Ended March 31,
	2020														2019
(In millions)	Net Investment Income(1)				Net Investment Gains (Losses)						Other Comprehensive Income (Loss)(2)				Net Investment Income(1)				Net Investment Gains (Losses)						Other Comprehensive Income (Loss)(2)
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	(1	)		$	0					$	(4	)		$	(1	)		$	0					$	(2	)
Total cash flow hedges		(1		)		0			(3	)		(4		)		(1		)		0			(3	)		(2		)
Fair value hedges:
Foreign currency forwards(3)						(6		)												(9		)
Foreign currency options(3)						0														(4		)
Interest rate swaptions(3)		0				0						0				0				0						(1		)
Total fair value hedges		0				(6		)				0				0				(13		)				(1		)
Net investment hedge:
Non-derivative hedging          instruments						0						6								0						0
Foreign currency forwards						51						(25		)						0						0
Foreign currency options						6						0								0						0
Total net investment hedge						57						(19		)						0						0
Non-qualifying strategies:
Foreign currency swaps						50														44
Foreign currency swaps - VIE						(195		)												(16		)
Foreign currency forwards						(36		)												(21		)
Foreign currency options						(2		)												0
Interest rate swaps						47														6
Total non-qualifying strategies						(136		)												13
Total		$	(1	)		$	(85	)				$	(23	)		$	(1	)		$	0					$	(3	)

⁽¹⁾ Cash flow hedge items and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

⁽²⁾ Impact of cash flow hedges reported as net investment gains (losses) includes an immaterial amount of gains or losses reclassified from accumulated other comprehensive income (loss) into earnings. It also includes an immaterial amount excluded from effectiveness testing during the three-month periods ended March 31, 2020 and 2019, respectively.

⁽³⁾Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)

As of March 31, 2020, deferred gains and losses on derivative instruments recorded in accumulated other comprehensive income that are expected to be reclassified to earnings during the next twelve months were immaterial.

Credit Risk Assumed through Derivatives

For the foreign currency and credit default swaps associated with the Company's VIE investments for which it is the primary beneficiary, the Company bears the risk of loss due to counterparty default even though it is not a direct counterparty to those contracts.

The Company is a direct counterparty to the foreign currency swaps that it has entered into in connection with certain of its senior notes and subordinated debentures; foreign currency forwards; and foreign currency options, and therefore the Company is exposed to credit risk in the event of nonperformance by the counterparties in those contracts. The risk of counterparty default for the Company's foreign currency swaps, certain foreign currency forwards, and foreign currency options is mitigated by collateral posting requirements that counterparties to those transactions must meet.

As of March 31, 2020, all of the Company's derivative agreement counterparties were investment grade.

The Company engages in over-the-counter (OTC) bilateral derivative transactions directly with unaffiliated third parties under International Swaps and Derivatives Association, Inc. (ISDA) agreements and other documentation. Most of the ISDA agreements also include Credit Support Annexes (CSAs) provisions, which generally provide for two-way collateral postings at the first dollar of exposure. The Company mitigates the risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value while generally requiring that collateral be posted at the outset of the transaction. In addition, a significant portion of the derivative transactions have provisions that give the counterparty the right to terminate the transaction upon a downgrade of Aflac’s financial strength rating. The actual amount of payments that the Company could be required to make depends on market conditions, the fair value of outstanding affected transactions, and other factors prevailing at and after the time of the downgrade.

The Company also engages in OTC cleared derivative transactions through regulated central clearing counterparties. These positions are marked to market and margined on a daily basis (both initial margin and variation margin), and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to these derivatives.

Collateral posted by the Company to third parties for derivative transactions can generally be repledged or resold by the counterparties. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $348 million and $301 million as of March 31, 2020, and December 31, 2019, respectively. If the credit-risk-related contingent features underlying these agreements had been triggered on March 31, 2020, the Company estimates that it would be required to post a maximum of $171 million of additional collateral to these derivative counterparties. The Company is generally allowed to sell or repledge collateral obtained from its derivative counterparties, although it does not typically exercise such rights. (See the Offsetting tables below for collateral posted or received as of the reported balance sheet dates.)

Offsetting of Financial Instruments and Derivatives

Most of the Company's derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Parent Company or its subsidiaries and the respective counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements with the master netting arrangements generally provide that the Company will receive or pledge financial collateral at the first dollar of exposure.

The Company has securities lending agreements with unaffiliated financial institutions that post collateral to the Company in return for the use of its fixed maturity and public equity securities (see Note 3). When the Company has entered into securities lending agreements with the same counterparty, the agreements generally provide for net settlement in the event of default by the counterparty. This right of set-off allows the Company to keep and apply collateral received if the counterparty failed to return the securities borrowed from the Company as contractually agreed.

The tables below summarize the Company's derivatives and securities lending transactions, and as reflected in the tables, in accordance with U.S. GAAP, the Company's policy is to not offset these financial instruments in the Consolidated Balance Sheets.

Offsetting of Financial Assets and Derivative Assets

March 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Received				Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	362		$	0		$	362		$	(229	)	$	(7	)		$	(121	)		$	5
OTC - cleared		21			0			21			0			0				(11		)		10
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		383			0			383			(229		)	(7		)		(132		)		15
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		89						89														89
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		89						89														89
Total derivative       assets		472			0			472			(229		)	(7		)		(132		)		104
Securities lending    and similar    arrangements		2,952			0			2,952			0			0				(2,952		)		0
Total		$	3,424		$	0		$	3,424		$	(229	)	$	(7	)		$	(3,084	)		$	104

December 31, 2019
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Received				Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	310		$	0		$	310		$	(190	)	$	(7	)		$	(113	)		$	0
OTC - cleared		3			0			3			0			0				0				3
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		313			0			313			(190		)	(7		)		(113		)		3
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		169						169														169
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		169						169														169
Total derivative       assets		482			0			482			(190		)	(7		)		(113		)		172
Securities lending    and similar    arrangements		1,860			0			1,860			0			0				(1,860		)		0
Total		$	2,342		$	0		$	2,342		$	(190	)	$	(7	)		$	(1,973	)		$	172

Offsetting of Financial Liabilities and Derivative Liabilities

March 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Pledged				Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	488		$	0		$	488		$	(229	)	$	(175	)		$	(2	)		$	82
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		488			0			488			(229		)	(175		)		(2		)		82
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		235						235														235
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		235						235														235
Total derivative       liabilities		723			0			723			(229		)	(175		)		(2		)		317
Securities lending    and similar    arrangements		2,969			0			2,969			(2,952		)	0				0				17
Total		$	3,692		$	0		$	3,692		$	(3,181	)	$	(175	)		$	(2	)		$	334

December 31, 2019
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Pledged				Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	459		$	0		$	459		$	(190	)	$	(222	)		$	(32	)		$	15
OTC - cleared		1			0			1			0			0				(1		)		0
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		460			0			460			(190		)	(222		)		(33		)		15
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		126						126														126
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		126						126														126
Total derivative       liabilities		586			0			586			(190		)	(222		)		(33		)		141
Securities lending    and similar    arrangements		1,876			0			1,876			(1,860		)	0				0				16
Total		$	2,462		$	0		$	2,462		$	(2,050	)	$	(222	)		$	(33	)		$	157

For additional information on the Company's financial instruments, see the accompanying Notes 1, 3 and 5 and Notes 1, 3 and 5 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

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SHAREHOLDERS' EQUITY - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020		Mar. 31, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)		$ 7		$ (17)
Income tax (expense) or benefit		(154)		(314)
Net of tax		$ 566		$ 928
Blended statutory income tax rate		21.40%		25.30%
Reclassification Out Of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of tax		$ (12)		$ 10
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized gains (losses) on available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)		(7)		17
Income tax (expense) or benefit		1	[1]	(4)	[2]
Net of tax		(6)		13
Reclassification Out Of Accumulated Other Comprehensive Income | Pension liability adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Acquisition and operating expenses, actuarial gains (losses)	[3]	(8)		(4)
Acquisition and operating expenses, prior service (cost) credit	[3]	0		0
Income tax (expense) or benefit		2	[1]	1	[2]
Net of tax		$ (6)		$ (3)

[1] Based on 21% blended tax rate

[2] Based on 25% blended tax rate

[3] These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details).

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REINSURANCE - Effect of Reinsurance on Premiums and Benefits and Claims (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Effects of Reinsurance [Line Items]
Direct premium income	$ 4,772	$ 4,776
Net premium income	4,681	4,691
Direct benefits and claims	3,028	3,041
Benefits and claims, net	2,939	2,967
All other
Effects of Reinsurance [Line Items]
Ceded premiums	(24)	(15)
Assumed premiums earned	0	1
Ceded benefits and claims	(25)	(11)
Assumed benefits and claims from other companies	0	0
Aflac Japan
Effects of Reinsurance [Line Items]
Net premium income	3,150	3,180
Aflac Japan | Closed Block
Effects of Reinsurance [Line Items]
Ceded premiums	(116)	(121)
Assumed premiums earned	49	50
Ceded benefits and claims	(105)	(111)
Assumed benefits and claims from other companies	41	48
Intercompany eliminations
Effects of Reinsurance [Line Items]
Ceded benefits and claims	10	10
Assumed benefits and claims from other companies	$ (10)	$ (10)

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NOTES PAYABLE AND LEASE OBLIGATIONS - Summary of Lines of Credit (Details) - 3 months ended Mar. 31, 2020 ¥ in Millions, $ in Millions	JPY (¥)	USD ($)
$100 million line of credit
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	The rate quoted by the bank and agreed upon at the time of borrowing
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity		$ 100.0
Line of credit facility, amount outstanding		0.0
100.0 billion yen line of credit
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period
Line of credit facility term	5 years
Line of credit facility, maximum borrowing capacity | ¥	¥ 100,000
Line of credit facility, amount outstanding | ¥	¥ 0
$1 billion line of credit
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	A rate per annum equal to, at the Company's option, either, (a) LIBOR adjusted for certain costs or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin
Line of credit facility term	5 years
Line of credit facility, maximum borrowing capacity		1,000.0
Line of credit facility, amount outstanding		0.0
$50 million line of credit
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	A rate per annum equal to, at the Parent Company's option, either (a) a eurocurrency rate determined by reference to the agent's LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the greater of (i) the prime rate as determined by the agent, and (ii) the sum of 0.50% and the federal funds rate for such day
Line of credit facility, maximum borrowing capacity		50.0
Line of credit facility, amount outstanding		0.0
$250 million line of credit
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	USD three-month LIBOR plus 75 basis points per annum
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity		250.0
Line of credit facility, amount outstanding		82.0
Debt instrument, term	3 months
50.0 billion yen line of credit expiring April 2020
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	Three-month TIBOR plus 70 basis points per annum
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity | ¥	¥ 50,000
Line of credit facility, amount outstanding | ¥	¥ 0
Debt instrument, term	3 months
50.0 billion yen line of credit expiring November 2020
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	Three-month TIBOR plus 70 basis points per annum
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity | ¥	¥ 50,000
Line of credit facility, amount outstanding | ¥	¥ 0
Debt instrument, term	3 months
$25 million line of credit
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	USD three-month LIBOR plus 75 basis points per annum
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity		25.0
Line of credit facility, amount outstanding		0.0
Debt instrument, term	3 months
$15 million line of credit
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	USD three-month LIBOR plus 75 basis points per annum
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity		15.0
Line of credit facility, amount outstanding		0.0
Debt instrument, term	3 months
$300 thousand line of credit
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate Description	USD three-month LIBOR plus 75 basis points per annum
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity		0.3
Line of credit facility, amount outstanding		$ 0.0
Debt instrument, term	3 months
Lower Limit | 100.0 billion yen line of credit
Line of Credit Facility [Line Items]
Line of credit facility, commitment fee percentage	0.30%
Lower Limit | $1 billion line of credit
Line of Credit Facility [Line Items]
Line of credit facility, commitment fee percentage	0.085%
Upper Limit | $100 million line of credit
Line of Credit Facility [Line Items]
Debt instrument, term	3 months
Upper Limit | 100.0 billion yen line of credit
Line of Credit Facility [Line Items]
Line of credit facility, commitment fee percentage	0.50%
Upper Limit | $1 billion line of credit
Line of Credit Facility [Line Items]
Line of credit facility, commitment fee percentage	0.225%
Upper Limit | $50 million line of credit
Line of Credit Facility [Line Items]
Debt instrument, term	3 months

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BENEFIT PLANS - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2013
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Amount of years active employees have left to meet rule of 80 in order to be eligible for postretirement medical benefits			5 years
Amount of years left to meet 15 year service requirement for active employees age 55 or older to be eligible for postretirement medical benefits			5 years
Net periodic (benefit) cost, excluding service cost	$ 6	$ 5
Lower Limit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Health care plan, retirement age and years of service combined years for eligibility (rule of 80)			80 years
Health care plan, retirement age for eligibility, (in years)			55 years
Health care plan, number of years of service for eligibility			15 years
Japan | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions	9
U.S. | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions	$ 0

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DERIVATIVE INSTRUMENTS - Schedule of Interest Rate Fair Value Hedges Hedged Items (Details) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount		$ 53,291	$ 61,695
Fair value hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount		9,115	12,780
Interest rate swaptions | Fair value hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount		243	243
Fixed maturity securities | Interest rate swaptions
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying Amount of Hedged Assets/ (Liabilities)	[1]	4,469	4,633
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)		$ 249	$ 256

[1] The balance includes hedging adjustment on discontinued hedging relationships of $249 in 2020 and $256 in 2019.

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INVESTMENTS - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)	Mar. 31, 2019 investment	Jan. 01, 2020 USD ($)	Dec. 31, 2019 USD ($)
Schedule of Investments [Line Items]
Held to maturity securities transferred to available for sale securities, number of investments | investment		0
Equity securities, FV-NI, unrealized gain (loss)	$ 149
Available for sale, fixed maturity securities, allowance for credit losses	63
Transitional real estate loan commitments	838
Commercial mortgage loan commitments	10
Middle market loan program unfunded amount	0			$ 99
Middle market loan commitments	2,600
Middle Market Loan Commitment Increase During Period	2,200
Securities held to maturity, fixed maturities, amortized cost	23,287			30,085
Loan Commitments, Allowance for Credit Loss	60
Limited partnerships investment commitments	$ 1,400
Percentage that the lending policy requires that the fair value of the securities received as collateral be of the fair value of the loaned securities	102.00%
Percentage that the lending policy requires that the fair value of the unrestricted cash received as collateral be of the fair value of the loaned securities	100.00%
Securities Lending, Securities Received as Collateral	$ 5,188			4,759
Accounting Standards Update 2019-04
Schedule of Investments [Line Items]
New Accounting Pronouncement Or Change In Accounting Principle Effect Of Adoption Reclassification From Held To Maturity To Available For Sale Debt Securities			$ 6,900
New Accounting Pronouncement Or Change In Accounting Principle Effect Of Adoption Unrealized Gain Loss Net Of Tax Reclassification To Accumulated Other Comprehensive Income			$ 848
Yen-denominated
Schedule of Investments [Line Items]
Available for sale, fixed maturity securities, allowance for credit losses	0
Securities held to maturity, fixed maturities, amortized cost	23,287			30,085
Japan government and agencies | Yen-denominated
Schedule of Investments [Line Items]
Available for sale, fixed maturity securities, allowance for credit losses	0
Securities held to maturity, fixed maturities, amortized cost	22,387			$ 22,241
Zero-credit-loss expectation | Japan government and agencies | Yen-denominated
Schedule of Investments [Line Items]
Securities held to maturity, fixed maturities, amortized cost	$ 22,000
CALIFORNIA | Commercial Mortgage and Transitional Real Estate Loans
Schedule of Investments [Line Items]
Concentration Risk, Percentage	20.00%
TEXAS | Commercial Mortgage and Transitional Real Estate Loans
Schedule of Investments [Line Items]
Concentration Risk, Percentage	14.00%
FLORIDA | Commercial Mortgage and Transitional Real Estate Loans
Schedule of Investments [Line Items]
Concentration Risk, Percentage	10.00%

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INVESTMENTS - Other Investments (Details) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Investment Holdings [Line Items]
Other investments		$ 1,843	$ 1,477
Policy loans
Investment Holdings [Line Items]
Other investments		253	250
Short-term investments
Investment Holdings [Line Items]
Other investments	[1]	892	628
Limited partnerships
Investment Holdings [Line Items]
Other investments		669	569
Other
Investment Holdings [Line Items]
Other investments		$ 29	$ 30

[1] Includes securities lending collateral

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NOTES PAYABLE AND LEASE OBLIGATIONS (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

A summary of notes payable and lease obligations follows:

(In millions)	March 31, 2020			December 31, 2019
4.00% senior notes paid January 2020		$	0		$	348
3.625% senior notes due June 2023		698			698
3.625% senior notes due November 2024		747			747
3.25% senior notes due March 2025		448			448
2.875% senior notes due October 2026		298			298
6.90% senior notes due December 2039		220			220
6.45% senior notes due August 2040		254			254
4.00% senior notes due October 2046		393			394
4.750% senior notes due January 2049		541			541
Yen-denominated senior notes and subordinated debentures:
.300% senior notes due September 2025 (principal amount ¥ 12.4 billion)		113			0
.932% senior notes due January 2027 (principal amount ¥60.0 billion)		549			545
.500% senior notes due December 2029 (principal amount ¥12.6 billion)		115			114
.550% senior notes due March 2030 (principal ¥ 13.3 billion)		121			0
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)		268			266
.843% senior notes due December 2031 (principal amount ¥9.3 billion)		85			84
.750% senior notes due March 2032 (principal amount ¥20.7 billion)		189			0
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)		139			138
.934% senior notes due December 2034 (principal amount ¥9.8 billion)		89			88
.830% senior notes due March 2035 (principal amount ¥10.6 billion)		97			0
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)		81			81
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)		57			57
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)		547			543
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion)		274			272
Yen-denominated loans:
Variable interest rate loan due September 2026 (.42% in 2020 and 2019, principal amount ¥5.0 billion)		46			45
Variable interest rate loan due September 2029 (.57% in 2020 and 2019, principal amount ¥25.0 billion)		228			227
Finance lease obligations payable through 2026		12			12
Operating lease obligations payable through 2028		149			149
Total notes payable and lease obligations		$	6,758		$	6,569

Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes.

Schedule of Line of Credit Facilities

A summary of the Company's lines of credit as of March 31, 2020 follows:

Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
Aflac Incorporated and Aflac	uncommitted bilateral	364 days	December 18, 2020	$100 million	$0 million	The rate quoted by the bank and agreed upon at the time of borrowing	Up to 3 months	None	General corporate purposes
Aflac Incorporated	unsecured revolving	5 years	March 29, 2024, or the date commitments are terminated pursuant to an event of default	¥100.0 billion	¥0.0 billion	A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period	No later than March 29, 2024	.30% to .50%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	unsecured revolving	5 years	November 18, 2024, or the date commitments are terminated pursuant to an event of default	$1.0 billion	$0.0 billion	A rate per annum equal to, at the Company's option, either, (a) LIBOR adjusted for certain costs or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin	No later than November 18, 2024	.085% to .225%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	uncommitted bilateral	None specified	None specified	$50 million	$0 million	A rate per annum equal to, at the Parent Company's option, either (a) a eurocurrency rate determined by reference to the agent's LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the greater of (i) the prime rate as determined by the agent, and (ii) the sum of 0.50% and the federal funds rate for such day	Up to 3 months	None	General corporate purposes
Aflac(1)	uncommitted revolving	364 days	November 30, 2020	$250 million	$82 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	April 2, 2020(2)	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	November 25, 2020	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac New York(1)	uncommitted revolving	364 days	March 20, 2021	$25 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
CAIC(1)	uncommitted revolving	364 days	March 20, 2021	$15 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
Tier One Insurance Company(1)	uncommitted revolving	364 days	March 20, 2021	$.3 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes

⁽¹⁾ Intercompany credit agreement

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Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions, ¥ in Billions		3 Months Ended
		Mar. 31, 2020 JPY (¥)	Mar. 31, 2019	Apr. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jan. 01, 2020 USD ($)	Dec. 31, 2019 USD ($)
Senior notes
Significant Accounting Policies [Line Items]
Debt instrument, principal amount | ¥		¥ 57.0
Aflac Japan
Significant Accounting Policies [Line Items]
Percentage of the Company's total assets		84.00%			84.00%		84.00%
Percentage of the Company's total revenues		67.00%	68.00%
Accounting Standards Update 2016-13
Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle, net of income taxes	[1]						$ (56)
Accounting Standards Update 2019-04
Significant Accounting Policies [Line Items]
New Accounting Pronouncement Or Change In Accounting Principle Effect Of Adoption Reclassification From Held To Maturity To Available For Sale Debt Securities						$ 6,900
New Accounting Pronouncement Or Change In Accounting Principle Effect Of Adoption Unrealized Gain Loss Net Of Tax Reclassification To Accumulated Other Comprehensive Income						848
Cumulative effect of change in accounting principle, net of income taxes	[1]						848
Unrealized gains (losses) on investment securities | Accounting Standards Update 2019-04
Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle, net of income taxes						848
Retained earnings | Accounting Standards Update 2016-13
Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle, net of income taxes						$ (56)	(56)	[1]
Retained earnings | Accounting Standards Update 2019-04
Significant Accounting Policies [Line Items]
Cumulative effect of change in accounting principle, net of income taxes	[1]						$ 0
Subsequent event | 3.60% senior notes due April 2030
Significant Accounting Policies [Line Items]
Debt instrument, principal amount				$ 1,000
100.0 billion yen line of credit
Significant Accounting Policies [Line Items]
Line of credit facility, maximum borrowing capacity | ¥		¥ 100.0
$1 billion line of credit
Significant Accounting Policies [Line Items]
Line of credit facility, maximum borrowing capacity					$ 1,000
Federal Home Loan Bank of Atlanta
Significant Accounting Policies [Line Items]
Line of credit facility, maximum borrowing capacity					800
Line of credit facility, capacity designated for short-term liquidity					$ 300

[1] See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2020

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INVESTMENTS - Available-for-sale Debt Securities (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 87,881	$ 79,371
Allowance for Credit Losses	63
Gross Unrealized Gains	10,611	12,266
Gross Unrealized Losses	2,141	375
Fair Value	96,288	91,262
Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	53,831	45,684
Allowance for Credit Losses	0
Gross Unrealized Gains	6,645	7,410
Gross Unrealized Losses	1,081	113
Fair Value	59,395	52,981
Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	34,050	33,687
Allowance for Credit Losses	63
Gross Unrealized Gains	3,966	4,856
Gross Unrealized Losses	1,060	262
Fair Value	36,893	38,281
Japan government and agencies | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	31,853	30,929
Allowance for Credit Losses	0
Gross Unrealized Gains	4,766	5,169
Gross Unrealized Losses	14	0
Fair Value	36,605	36,098
Municipalities
Debt Securities, Available-for-sale [Line Items]
Fair Value	2,440	1,847
Municipalities | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	984	516
Allowance for Credit Losses	0
Gross Unrealized Gains	228	116
Gross Unrealized Losses	1	3
Fair Value	1,211	629
Municipalities | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,084	1,077
Allowance for Credit Losses	0
Gross Unrealized Gains	145	141
Gross Unrealized Losses	0	0
Fair Value	1,229	1,218
Mortgage- and asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Fair Value	497	410
Mortgage- and asset-backed securities | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	306	229
Allowance for Credit Losses	0
Gross Unrealized Gains	31	25
Gross Unrealized Losses	0	0
Fair Value	337	254
Mortgage- and asset-backed securities | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	152	149
Allowance for Credit Losses	0
Gross Unrealized Gains	8	7
Gross Unrealized Losses	0	0
Fair Value	160	156
Public utilities
Debt Securities, Available-for-sale [Line Items]
Fair Value	9,192	6,780
Public utilities | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4,412	1,855
Allowance for Credit Losses	0
Gross Unrealized Gains	430	406
Gross Unrealized Losses	93	0
Fair Value	4,749	2,261
Public utilities | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,844	3,804
Allowance for Credit Losses	0
Gross Unrealized Gains	649	725
Gross Unrealized Losses	50	10
Fair Value	4,443	4,519
Sovereign and supranational
Debt Securities, Available-for-sale [Line Items]
Fair Value	1,609	1,042
Sovereign and supranational | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,300	680
Allowance for Credit Losses	0
Gross Unrealized Gains	33	50
Gross Unrealized Losses	27	0
Fair Value	1,306	730
Sovereign and supranational | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	239	239
Allowance for Credit Losses	0
Gross Unrealized Gains	65	73
Gross Unrealized Losses	1	0
Fair Value	303	312
Banks/financial institutions
Debt Securities, Available-for-sale [Line Items]
Fair Value	10,378	10,287
Banks/financial institutions | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	7,159	6,152
Allowance for Credit Losses	0
Gross Unrealized Gains	404	700
Gross Unrealized Losses	557	86
Fair Value	7,006	6,766
Banks/financial institutions | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,848	2,879
Allowance for Credit Losses	0
Gross Unrealized Gains	545	646
Gross Unrealized Losses	21	4
Fair Value	3,372	3,521
Other corporate
Debt Securities, Available-for-sale [Line Items]
Fair Value	35,194	34,496
Other corporate | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	7,817	5,323
Allowance for Credit Losses	0
Gross Unrealized Gains	753	944
Gross Unrealized Losses	389	24
Fair Value	8,181	6,243
Other corporate | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	25,533	25,246
Allowance for Credit Losses	63
Gross Unrealized Gains	2,531	3,255
Gross Unrealized Losses	988	248
Fair Value	27,013	28,253
U.S. government and agencies | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	350	293
Allowance for Credit Losses	0
Gross Unrealized Gains	23	9
Gross Unrealized Losses	0	0
Fair Value	$ 373	$ 302

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INCOME TAXES

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law and includes certain income tax provisions relevant to businesses. The Company is required to recognize the effect on the consolidated financial statements in the period the law was enacted, which is the period ended March 31, 2020. For the period ended March 31, 2020, the CARES Act did not have a material impact on the Company’s consolidated financial statements. At this time, the Company does not expect the impact of the CARES Act to have a material impact on the Company’s consolidated financial statements for the year ended December 31, 2020.

The Company’s combined U.S. and Japanese effective income tax rate on pretax earnings was 21.4% for the three-month period ended March 31, 2020, compared with 25.3% for the same period in 2019. This combined effective tax rate differs from the U.S. statutory rate primarily due to foreign earnings taxed at different rates. The primary driver for the reduced income tax rate in the current period is the pretax investment losses in Japan, which provide a 28% income tax benefit.

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Consolidated Balance Sheets - USD ($) $ in Millions		Mar. 31, 2020		Dec. 31, 2019
Investments and Cash:
Available for sale, fixed maturity securities		$ 96,288		$ 91,262
Held to maturity, fixed maturity securities, net carrying amount	[1]	23,278
Held to maturity, fixed maturity securities, amortized cost		23,287		30,085
Equity securities		660		802
Commercial mortgage and other loans		10,750		9,569
Other investments		1,843		1,477
Cash and cash equivalents		4,148		4,896
Total investments and cash		136,967		138,091
Receivables		813		828
Accrued investment income		734		772
Deferred policy acquisition costs		10,164		10,128
Property and equipment, at cost less accumulated depreciation		586		581
Other		2,352		2,368
Total assets		151,616		152,768
Policy Liabilities:
Future policy benefits		91,393		90,335
Unpaid policy claims		4,693		4,659
Unearned premiums		4,044		4,243
Other policyholders’ funds		7,422		7,317
Total policy liabilities		107,552		106,554
Income taxes		4,610		5,370
Payables for return of cash collateral on loaned securities		2,969		1,876
Notes payable and lease obligations		6,758		6,569
Other		3,325		3,440
Total liabilities		125,214		123,809
Commitments and contingent liabilities (Note 13)
Shareholders’ equity:
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2020 and 2019; issued 1,350,650 shares in 2020 and 1,349,309 shares in 2019		135		135
Additional paid-in capital		2,334		2,313
Retained earnings		34,599		34,291
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains (losses)		(1,543)		(1,623)
Unrealized gain (losses) on fixed maturity securities		6,043		8,548
Unrealized gains (losses) on derivatives		(35)		(33)
Pension liability adjustment		(277)		(277)
Treasury stock, at average cost		(14,854)		(14,395)
Total shareholders’ equity		26,402		28,959
Total liabilities and shareholders’ equity		151,616		152,768
Consolidated Entity Excluding Variable Interest Entities (VIE)
Investments and Cash:
Available for sale, fixed maturity securities		92,502		86,950
Variable Interest Entity, Consolidated
Investments and Cash:
Available for sale, fixed maturity securities		3,786		4,312
Commercial mortgage and other loans		9,051		7,956
Other investments	[2]	550		494
Policy Liabilities:
Total liabilities		$ 235	[3]	$ 126

[1] Net of allowance for credit losses

[2] Consists entirely of alternative investments in limited partnerships

[3] Net of allowance for credit losses

XML

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Fair Value Hierarchy

U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. These two types of inputs create three valuation hierarchy levels. Level 1 valuations reflect quoted market prices for identical assets or liabilities in active markets. Level 2 valuations reflect quoted market prices for similar assets or liabilities in an active market, quoted market prices for identical or similar assets or liabilities in non-active markets or model-derived valuations in which all significant valuation inputs are observable in active markets. Level 3 valuations reflect valuations in which one or more of the significant inputs are not observable in an active market.

The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis.

	March 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	35,469		$	1,509		$	0		$	36,978
Municipalities		0			2,440			0			2,440
Mortgage- and asset-backed securities		0			309			188			497
Public utilities		0			8,894			298			9,192
Sovereign and supranational		0			1,609			0			1,609
Banks/financial institutions		0			10,355			23			10,378
Other corporate		0			34,949			245			35,194
Total fixed maturity securities		35,469			60,065			754			96,288
Equity securities		509			69			82			660
Other investments		892			0			0			892
Cash and cash equivalents		4,148			0			0			4,148
Other assets:
Foreign currency swaps		0			66			89			155
Foreign currency forwards		0			269			0			269
Foreign currency options		0			27			0			27
Interest rate swaps		0			21			0			21
Total other assets		0			383			89			472
Total assets		$	41,018		$	60,517		$	925		$	102,460
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	38		$	235		$	273
Foreign currency forwards		0			427			0			427
Foreign currency options		0			23			0			23
Total liabilities		$	0		$	488		$	235		$	723

	December 31, 2019
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	34,878		$	1,522		$	0		$	36,400
Municipalities		0			1,847			0			1,847
Mortgage- and asset-backed securities		0			232			178			410
Public utilities		0			6,556			224			6,780
Sovereign and supranational		0			1,042			0			1,042
Banks/financial institutions		0			10,264			23			10,287
Other corporate		0			34,234			262			34,496
Total fixed maturity securities		34,878			55,697			687			91,262
Equity securities		642			80			80			802
Other investments		628			0			0			628
Cash and cash equivalents		4,896			0			0			4,896
Other assets:
Foreign currency swaps		0			72			169			241
Foreign currency forwards		0			238			0			238
Interest rate swaps		0			3			0			3
Total other assets		0			313			169			482
Total assets		$	41,044		$	56,090		$	936		$	98,070
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	78		$	126		$	204
Foreign currency forwards		0			377			0			377
Foreign currency options		0			5			0			5
Total liabilities		$	0		$	460		$	126		$	586

The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value.

	March 31, 2020
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	22,384		$	27,842		$	352		$	0		$	28,194
Municipalities		362			0			484			0			484
Public utilities		45			0			59			0			59
Sovereign and supranational		464			0			578			0			578
Other corporate		23			0			32			0			32
Commercial mortgage and other loans		10,750			0			0			10,390			10,390
Other investments (1)		29			0			29			0			29
Total assets		$	34,057		$	27,842		$	1,534		$	10,390		$	39,766
Liabilities:
Other policyholders’ funds		$	7,422		$	0		$	0		$	7,338		$	7,338
Notes payable (excluding leases)		6,597			0			6,607			274			6,881
Total liabilities		$	14,019		$	0		$	6,607		$	7,612		$	14,219

⁽¹⁾ Excludes policy loans of $253 and equity method investments of $669, at carrying value

	December 31, 2019
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	22,241		$	27,937		$	354		$	0		$	28,291
Municipalities		821			0			1,083			0			1,083
Mortgage and asset-backed securities		16			0			7			10			17
Public utilities		2,535			0			2,954			0			2,954
Sovereign and supranational		1,123			0			1,320			0			1,320
Banks/financial institutions		916			0			1,018			0			1,018
Other corporate		2,433			0			2,911			0			2,911
Commercial mortgage and other loans		9,569			0			0			9,648			9,648
Other investments (1)		30			0			30			0			30
Total assets		$	39,684		$	27,937		$	9,677		$	9,658		$	47,272
Liabilities:
Other policyholders’ funds		$	7,317		$	0		$	0		$	7,234		$	7,234
Notes payable (excluding leases)		6,408			0			6,663			272			6,935
Total liabilities		$	13,725		$	0		$	6,663		$	7,506		$	14,169

⁽¹⁾ Excludes policy loans of $250 and equity method investments of $569, at carrying value

Fair Value of Financial Instruments

Fixed maturity and equity securities

The Company determines the fair values of fixed maturity securities and public and privately-issued equity securities using the following approaches or techniques: price quotes and valuations from third party pricing vendors (including quoted market prices readily available from public exchange markets) and non-binding price quotes the Company obtains from outside brokers.

A third party pricing vendor has developed valuation models to determine fair values of privately issued securities to reflect the impact of the persistent economic environment and the changing regulatory framework. These models are discounted cash flow (DCF) valuation models, but also use information from related markets, specifically the credit default swap (CDS) market to estimate expected cash flows. These models take into consideration any unique characteristics of the securities and make various adjustments to arrive at an appropriate issuer-specific loss adjusted credit curve. This credit curve is then used with the relevant recovery rates to estimate expected cash flows and modeling of additional features, including illiquidity adjustments, if necessary, to price the security by discounting those loss adjusted cash flows. In cases where a credit curve cannot be developed from the specific security features, the valuation methodology takes into consideration other market observable inputs, including:

1) the most appropriate comparable security(ies) of the issuer

2) issuer-specific CDS spreads

3) bonds or CDS spreads of comparable issuers with similar characteristics such as rating, geography, or sector

4) bond indices that are comparative in rating, industry, maturity and region.

The pricing data and market quotes the Company obtains from outside sources, including third party pricing services, are reviewed internally for reasonableness. If a fair value appears unreasonable, the Company will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, the Company may compare the inputs to relevant market indices and other performance measurements. Based on management's analysis, the valuation is confirmed or may be revised if there is evidence of a more appropriate estimate of fair value based on available market data. The Company has performed verification of the inputs and calculations in any valuation models to confirm that the valuations represent reasonable estimates of fair value.

For the periods presented, the Company has not adjusted the quotes or prices it obtains from the pricing services and brokers it uses.

The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities.

	March 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	35,469		$	1,509		$	0		$	36,978
Total government and agencies		35,469			1,509			0			36,978
Municipalities:
Third party pricing vendor		0			2,440			0			2,440
Total municipalities		0			2,440			0			2,440
Mortgage- and asset-backed securities:
Third party pricing vendor		0			309			0			309
Broker/other		0			0			188			188
Total mortgage- and asset-backed securities		0			309			188			497
Public utilities:
Third party pricing vendor		0			8,894			0			8,894
Broker/other		0			0			298			298
Total public utilities		0			8,894			298			9,192
Sovereign and supranational:
Third party pricing vendor		0			1,609			0			1,609
Total sovereign and supranational		0			1,609			0			1,609
Banks/financial institutions:
Third party pricing vendor		0			10,355			0			10,355
Broker/other		0			0			23			23
Total banks/financial institutions		0			10,355			23			10,378
Other corporate:
Third party pricing vendor		0			34,949			0			34,949
Broker/other		0			0			245			245
Total other corporate		0			34,949			245			35,194
Total securities available for sale		$	35,469		$	60,065		$	754		$	96,288
Equity securities, carried at fair value:
Third party pricing vendor		$	509		$	69		$	0		$	578
Broker/other		0			0			82			82
Total equity securities		$	509		$	69		$	82		$	660

	March 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	27,842		$	352		$	0		$	28,194
Total government and agencies		27,842			352			0			28,194
Municipalities:
Third party pricing vendor		0			484			0			484
Total municipalities		0			484			0			484
Public utilities:
Third party pricing vendor		0			59			0			59
Total public utilities		0			59			0			59
Sovereign and supranational:
Third party pricing vendor		0			578			0			578
Total sovereign and supranational		0			578			0			578
Other corporate:
Third party pricing vendor		0			32			0			32
Total other corporate		0			32			0			32
Total securities held to maturity		$	27,842		$	1,505		$	0		$	29,347

	December 31, 2019
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	34,878		$	1,522		$	0		$	36,400
Total government and agencies		34,878			1,522			0			36,400
Municipalities:
Third party pricing vendor		0			1,847			0			1,847
Total municipalities		0			1,847			0			1,847
Mortgage- and asset-backed securities:
Third party pricing vendor		0			232			0			232
Broker/other		0			0			178			178
Total mortgage- and asset-backed securities		0			232			178			410
Public utilities:
Third party pricing vendor		0			6,556			0			6,556
Broker/other		0			0			224			224
Total public utilities		0			6,556			224			6,780
Sovereign and supranational:
Third party pricing vendor		0			1,042			0			1,042
Total sovereign and supranational		0			1,042			0			1,042
Banks/financial institutions:
Third party pricing vendor		0			10,264			0			10,264
Broker/other		0			0			23			23
Total banks/financial institutions		0			10,264			23			10,287
Other corporate:
Third party pricing vendor		0			34,234			0			34,234
Broker/other		0			0			262			262
Total other corporate		0			34,234			262			34,496
Total securities available for sale		$	34,878		$	55,697		$	687		$	91,262
Equity securities, carried at fair value:
Third party pricing vendor		$	642		$	80		$	0		$	722
Broker/other		0			0			80			80
Total equity securities		$	642		$	80		$	80		$	802

	December 31, 2019
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	27,937		$	354		$	0		$	28,291
Total government and agencies		27,937			354			0			28,291
Municipalities:
Third party pricing vendor		0			1,083			0			1,083
Total municipalities		0			1,083			0			1,083
Mortgage- and asset-backed securities:
Third party pricing vendor		0			7			0			7
Broker/other		0			0			10			10
Total mortgage- and asset-backed securities		0			7			10			17
Public utilities:
Third party pricing vendor		0			2,954			0			2,954
Total public utilities		0			2,954			0			2,954
Sovereign and supranational:
Third party pricing vendor		0			1,320			0			1,320
Total sovereign and supranational		0			1,320			0			1,320
Banks/financial institutions:
Third party pricing vendor		0			1,018			0			1,018
Total banks/financial institutions		0			1,018			0			1,018
Other corporate:
Third party pricing vendor		0			2,911			0			2,911
Total other corporate		0			2,911			0			2,911
Total securities held to maturity		$	27,937		$	9,647		$	10		$	37,594

The following is a discussion of the determination of fair value of the Company's remaining financial instruments.

Derivatives

The Company uses derivative instruments to manage the risk associated with certain assets. However, the derivative instrument may not be classified in the same fair value hierarchy level as the associated asset. Inputs used to value derivatives include, but are not limited to, interest rates, credit spreads, foreign currency forward and spot rates, and interest volatility. The significant inputs to pricing derivatives are generally observable in the market or can be derived by observable market data. When these inputs are observable, the derivatives are classified as Level 2.

The fair value of foreign currency forward and options are based on observable market inputs, therefore they are classified as Level 2.

To determine the fair value of its interest rate derivatives, the Company uses inputs that are generally observable in the market or can be derived from observable market data. Interest rate swaps are cleared trades. In a cleared swap contract, the clearinghouse provides benefits to the counterparties similar to contracts listed for investment traded on an exchange since it maintains a daily margin to mitigate counterparties' credit risk. These derivatives are priced using observable inputs, accordingly, they are classified as Level 2. For its interest rate swaptions, the Company estimates their fair values using observable market data, including interest rate curves and volatilities. Their fair values are also classified as Level 2.

For derivatives associated with VIEs where the Company is the primary beneficiary, the Company is not the direct counterparty to the swap contracts. As a result, the fair value measurements incorporate the credit risk of the collateral associated with the VIE. Based on an analysis of these derivatives and a review of the methodology employed by the pricing vendor, the Company determined that due to the long duration of these swaps and the need to extrapolate from short-term observable data to derive and measure long-term inputs, certain inputs, assumptions and judgments are required to value future cash flows that cannot be corroborated by current inputs or current observable market data. As a result, the derivatives associated with the Company's consolidated VIEs are classified as Level 3 of the fair value hierarchy.

Commercial mortgage and other loans

Commercial mortgage and other loans include transitional real estate loans, commercial mortgage loans and middle market loans. The Company's loan receivables do not have readily determinable market prices and generally lack market liquidity. Fair values for loan receivables are determined based on the present value of expected future cash flows discounted at the applicable U.S. Treasury or London Interbank Offered Rate (LIBOR) yield plus an appropriate spread that considers other risk factors, such as credit and liquidity risk. The spreads are a significant component of the pricing inputs and are generally considered unobservable. Therefore, these investments have been assigned a Level 3 within the fair value hierarchy.

Other investments

Other investments includes short-term investments that are measured at fair value where amortized cost approximates fair value.

Other policyholders' funds

The largest component of the other policyholders' funds liability is the Company's annuity line of business in Aflac Japan. The Company's annuities have fixed benefits and premiums. For this product, the Company estimates the fair value to be equal to the cash surrender value. This is analogous to the value paid to policyholders on the valuation date if they were to surrender their policy. The Company periodically checks the cash value against discounted cash flow projections for reasonableness. The Company considers its inputs for this valuation to be unobservable and have accordingly classified this valuation as Level 3.

Notes payable

The fair values of the Company's publicly issued notes payable are determined by utilizing available sources of observable inputs from third party pricing vendors and are classified as Level 2. The fair values of the Company's yen-denominated loans approximate their carrying values and are classified as Level 3.

Transfers between Hierarchy Levels and Level 3 Rollforward

The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3.

Three Months Ended March 31, 2020
	Fixed Maturity Securities											Equity Securities		Derivatives (1)
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities			Banks/ Financial Institutions		Other Corporate					Foreign Currency Swaps			Credit Default Swaps		Total
Balance, beginning of period	$	178		$	224		$	23	$	262		$	80	$	43		$	0	$	810
Net investment gains (losses) included in earnings	0			0			0		0			0		(185		)	0		(185		)
Unrealized gains (losses) included in other comprehensive income (loss)	1			(8		)	0		(17		)	0		(4		)	0		(28		)
Purchases, issuances, sales and settlements:
Purchases	0			83			0		0			2		0			0		85
Issuances	0			0			0		0			0		0			0		0
Sales	0			0			0		0			0		0			0		0
Settlements	0			(1		)	0		0			0		0			0		(1		)
Transfers into Level 3	9		(2)	0			0		0			0		0			0		9
Transfers out of Level 3	0			0			0		0			0		0			0		0
Balance, end of period	$	188		$	298		$	23	$	245		$	82	$	(146	)	$	0	$	690
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0		$	0		$	0	$	0		$	0	$	(185	)	$	0	$	(185	)

⁽¹⁾ Derivative assets and liabilities are presented net

⁽²⁾ Transfer due to reclassification of level 3 securities from HTM to AFS

Three Months Ended March 31, 2019
	Fixed Maturity Securities												Equity Securities		Derivatives (1)
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities				Banks/ Financial Institutions		Other Corporate						Foreign Currency Swaps			Credit Default Swaps		Total
Balance, beginning of period	$	177	$	109			$	23	$	213			$	46	$	80		$	0	$	648
Net investment gains (losses) included    in earnings	0		0				0		0				0		(8		)	0		(8		)
Unrealized gains (losses) included in other    comprehensive income (loss)	1		1				0		1				0		(2		)	0		1
Purchases, issuances, sales and settlements:
Purchases	0		0				0		63				0		0			0		63
Issuances	0		0				0		0				0		0			0		0
Sales	0		0				0		(2		)		0		0			0		(2		)
Settlements	0		0				0		0				0		0			0		0
Transfers into Level 3	0		0				0		25			(2)	0		0			0		25
Transfers out of Level 3	0		(25		)	(2)	0		(16		)	(3)	0		0			0		(41		)
Balance, end of period	$	178	$	85			$	23	$	284			$	46	$	70		$	0	$	686
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	0			$	0	$	0			$	0	$	(8	)	$	0	$	(8	)

⁽¹⁾ Derivative assets and liabilities are presented net

⁽²⁾ Transfer due to sector classification change

⁽³⁾ Transfer due to availability of observable market inputs

Fair Value Sensitivity

Level 3 Significant Unobservable Input Sensitivity

The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments and derivatives carried at fair value. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

March 31, 2020
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	188	Consensus pricing	Offered quotes	N/A	(a)
Public utilities		298		Discounted cash flow	Credit spreads	N/A	(a)
Banks/financial institutions		23		Consensus pricing	Offered quotes	N/A	(a)
Other corporate		245		Discounted cash flow	Credit spreads	N/A	(a)
Equity securities		82		Net asset value	Offered quotes	N/A	(a)
Other assets:
Foreign currency swaps		15		Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
					CDS spreads	31 - 173 bps
		74		Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
Total assets		$	925
Liabilities:
Other liabilities:
Foreign currency swaps		$	224	Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
					CDS spreads	31 - 173 bps
		11		Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
Total liabilities		$	235

(a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

(b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps

(c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps

December 31, 2019
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	178	Consensus pricing	Offered quotes	N/A	(a)
Public utilities		224		Discounted cash flow	Credit spreads	N/A	(a)
Banks/financial institutions		23		Consensus pricing	Offered quotes	N/A	(a)
Other corporate		262		Discounted cash flow	Credit spreads	N/A	(a)
Equity securities		80		Net asset value	Offered quotes	N/A	(a)
Other assets:
Foreign currency swaps		106		Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
					CDS spreads	10 - 100 bps
		63		Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
Total assets		$	936
Liabilities:
Other liabilities:
Foreign currency swaps		$	118	Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
					CDS spreads	13 - 159 bps
		8		Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
Total liabilities		$	126

(a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

(b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps

(c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps

The following is a discussion of the significant unobservable inputs or valuation techniques used in determining the fair value of securities and derivatives classified as Level 3.

Net Asset Value

The Company holds certain unlisted equity securities whose fair value is derived based on the financial statements published by the investee. These securities do not trade on an active market and the valuations derived are dependent on the availability of timely financial reporting of the investee. Net asset value is an unobservable input in the determination of fair value of equity securities.

Offered Quotes

In circumstances where the Company's valuation model price is overridden because it implies a value that is not consistent with current market conditions, the Company will solicit bids from a limited number of brokers. The Company also receives unadjusted prices from brokers for its mortgage and asset-backed securities. These quotes are non-binding but are reflective of valuation best estimates at that particular point in time. Offered quotes are an unobservable input in the determination of fair value of mortgage- and asset-backed securities, certain banks/financial institutions, certain other corporate, and equity securities investments.

Interest Rates and CDS Spreads

The significant drivers of the valuation of the foreign exchange swaps are interest rates and CDS spreads. Some of the Company's swaps have long maturities that increase the sensitivity of the swaps to interest rate fluctuations. For the Company's foreign exchange or cross currency swaps that are in a net asset position, an increase in yen interest rates (all other factors held constant) will decrease the present value of the yen final settlement receivable (receive leg), thus decreasing the value of the swap as long as the derivative remains in a net asset position.

Foreign exchange swaps also have a lump-sum final settlement of foreign exchange principal amounts at the termination of the swap. Assuming all other factors are held constant, an increase in yen interest rates will decrease the receive leg and decrease the net value of the swap. Likewise, holding all other factors constant, an increase in U.S. dollar interest rates will increase the swap's net value due to the decrease in the present value of the dollar final settlement payable (pay leg).

The extinguisher feature in most of the Company's VIE swaps results in a cessation of cash flows and no further payments between the parties to the swap in the event of a default on the referenced or underlying collateral. To price this feature, the Company applies the survival probability of the referenced entity to the projected cash flows. The survival probability uses the CDS spreads and recovery rates to adjust the present value of the cash flows. For extinguisher swaps with positive values, an increase in CDS spreads decreases the likelihood of receiving the final exchange payments and reduces the value of the swap.

For additional information on the Company's investments and financial instruments, see the accompanying Notes 1, 3 and 4 and Notes 1, 3 and 4 of the Notes to the Consolidated Financial Statements in the 2019 Annual Report.

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net earnings	$ 566	$ 928
Adjustments to reconcile net earnings to net cash provided by operating activities:
Change in receivables and advance premiums	15	35
Capitalization of deferred policy acquisition costs	(325)	(357)
Amortization of deferred policy acquisition costs	333	340
Increase in policy liabilities	368	468
Change in income tax liabilities	153	316
Realized investment (gains) losses	463	(71)
Other, net	(159)	(115)
Net cash provided (used) by operating activities	1,414	1,544
Proceeds from investments sold or matured:
Available-for-sale fixed maturity securities	726	760
Equity securities	3	153
Held-to-maturity fixed maturity securities	0	155
Commercial mortgage and other loans	408	493
Costs of investments acquired:
Available for sale fixed maturity securities	(1,817)	(2,548)
Equity securities	(6)	(151)
Commercial mortgage and other loans	(1,787)	(669)
Other investments, net	(361)	(442)
Settlement of derivatives, net	13	(3)
Cash received (pledged or returned) as collateral, net	1,160	976
Other, net	(55)	(15)
Net cash provided (used) by investing activities	(1,716)	(1,291)
Cash flows from financing activities:
Purchases of treasury stock	(449)	(490)
Proceeds from borrowings	545	0
Principal payments under debt obligations	(350)	0
Dividends paid to shareholders	(195)	(195)
Change in investment-type contracts, net	(5)	(13)
Treasury stock reissued	9	12
Other, net	(1)	0
Net cash provided (used) by financing activities	(446)	(686)
Effect of exchange rate changes on cash and cash equivalents	0	(12)
Net change in cash and cash equivalents	(748)	(445)
Cash and cash equivalents, beginning of period	4,896	4,337
Cash and cash equivalents, end of period	4,148	3,892
Supplemental disclosures of cash flow information:
Income taxes paid	2	(2)
Interest paid	39	36
Noncash interest	15	22
Noncash financing activities:
Lease obligations	13	1
Associate stock bonus
Treasury stock issued for:
Treasury stock issued	5	6
Shareholder dividend reinvestment
Treasury stock issued for:
Treasury stock issued	7	8
Share-based compensation grants
Treasury stock issued for:
Treasury stock issued	$ 5	$ 4

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REINSURANCE (Tables)

3 Months Ended

Mar. 31, 2020

Reinsurance Disclosures [Abstract]

Effects of Reinsurance

The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance.

	Three Months Ended March 31,
(In millions)	2020				2019
Direct premium income		$	4,772			$	4,776
Ceded to other companies:
Ceded Aflac Japan closed blocks		(116		)		(121		)
Other		(24		)		(15		)
Assumed from other companies:
Retrocession activities		49				50
Other		0				1
Net premium income		$	4,681			$	4,691
Direct benefits and claims		$	3,028			$	3,041
Ceded benefits and change in reserves for future benefits:
Ceded Aflac Japan closed blocks		(105		)		(111		)
Eliminations		10				10
Other		(25		)		(11		)
Assumed from other companies:
Retrocession activities		41				48
Eliminations		(10		)		(10		)
Other		0				0
Benefits and claims, net		$	2,939			$	2,967

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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Available-for-Sale Debt Securities

The amortized cost for the Company's investments in fixed maturity securities, the cost for equity securities and the fair values of these investments are shown in the following tables.

	March 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	31,853	$	0	$	4,766	$	14	$	36,605
Municipalities	984		0		228		1		1,211
Mortgage- and asset-backed securities	306		0		31		0		337
Public utilities	4,412		0		430		93		4,749
Sovereign and supranational	1,300		0		33		27		1,306
Banks/financial institutions	7,159		0		404		557		7,006
Other corporate	7,817		0		753		389		8,181
Total yen-denominated	53,831		0		6,645		1,081		59,395
U.S. dollar-denominated:
U.S. government and agencies	350		0		23		0		373
Municipalities	1,084		0		145		0		1,229
Mortgage- and asset-backed securities	152		0		8		0		160
Public utilities	3,844		0		649		50		4,443
Sovereign and supranational	239		0		65		1		303
Banks/financial institutions	2,848		0		545		21		3,372
Other corporate	25,533		63		2,531		988		27,013
Total U.S. dollar-denominated	34,050		63		3,966		1,060		36,893
Total securities available for sale	$	87,881	$	63	$	10,611	$	2,141	$	96,288

	December 31, 2019
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair   value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	30,929	$	5,169	$	0	$	36,098
Municipalities	516		116		3		629
Mortgage- and asset-backed securities	229		25		0		254
Public utilities	1,855		406		0		2,261
Sovereign and supranational	680		50		0		730
Banks/financial institutions	6,152		700		86		6,766
Other corporate	5,323		944		24		6,243
Total yen-denominated	45,684		7,410		113		52,981
U.S dollar-denominated:
U.S. government and agencies	293		9		0		302
Municipalities	1,077		141		0		1,218
Mortgage- and asset-backed securities	149		7		0		156
Public utilities	3,804		725		10		4,519
Sovereign and supranational	239		73		0		312
Banks/financial institutions	2,879		646		4		3,521
Other corporate	25,246		3,255		248		28,253
Total U.S. dollar-denominated	33,687		4,856		262		38,281
Total securities available for sale	$	79,371	$	12,266	$	375	$	91,262

Held-to-maturity Securities

	March 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	22,387	$	3	$	22,384	$	5,810	$	0	$	28,194
Municipalities	362		0		362		122		0		484
Public utilities	46		1		45		14		0		59
Sovereign and supranational	469		5		464		114		0		578
Other corporate	23		0		23		9		0		32
Total yen-denominated	23,287		9		23,278		6,069		0		29,347
Total securities held to maturity	$	23,287	$	9	$	23,278	$	6,069	$	0	$	29,347

	December 31, 2019
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	22,241	$	6,050	$	0	$	28,291
Municipalities	821		262		0		1,083
Mortgage- and asset-backed securities	16		1		0		17
Public utilities	2,535		419		0		2,954
Sovereign and supranational	1,123		197		0		1,320
Banks/financial institutions	916		105		3		1,018
Other corporate	2,433		485		7		2,911
Total yen-denominated	30,085		7,519		10		37,594
Total securities held to maturity	$	30,085	$	7,519	$	10	$	37,594

Equity securities, FV-NI

(In millions)	March 31, 2020			December 31, 2019
Equity securities, carried at fair value through net earnings:	Fair Value			Fair Value
Equity securities:
Yen-denominated		$	528		$	658
U.S. dollar-denominated		132			144
Total equity securities		$	660		$	802

Investments Classified by Contractual Maturity Date

The contractual and economic maturities of the Company's investments in fixed maturity securities at March 31, 2020, were as follows:

(In millions)	Amortized Cost (1)			Fair Value
Available for sale:
Due in one year or less		$	1,078		$	1,105
Due after one year through five years		8,992			8,806
Due after five years through 10 years		12,399			13,221
Due after 10 years		64,891			72,659
Mortgage- and asset-backed securities		458			497
Total fixed maturity securities available for sale		$	87,818		$	96,288
Held to maturity:
Due in one year or less		$	0		$	0
Due after one year through five years		0			0
Due after five years through 10 years		49			55
Due after 10 years		23,229			29,292
Mortgage- and asset-backed securities		0			0
Total fixed maturity securities held to maturity		$	23,278		$	29,347

⁽¹⁾ Net of allowance for credit losses

Investment Exposures Exceeding Ten Percent Shareholders Equity

Investment exposures that individually exceeded 10% of shareholders' equity were as follows:

	March 31, 2020			December 31, 2019
(In millions)	Credit Rating	Amortized Cost	Fair Value	Credit Rating	Amortized Cost	Fair Value
Japan National Government(1)	A+	$52,786	$63,020	A+	$51,726	$62,584

⁽¹⁾Japan Government Bonds (JGBs) or JGB-backed securities

Gain (Loss) on Investments

Information regarding pretax net gains and losses from investments is as follows:

	Three Months Ended March 31,
(In millions)	2020			2019
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales	$	7		$	12
Gross losses from sales	0			(8		)
Foreign currency gains (losses) on sales and redemptions	(14		)	13
Total sales and redemptions	(7		)	17
Equity securities	(149		)	58
Loan loss reserves (1)	0			(2		)
Credit losses:
Fixed maturity securities available for sale	(63		)	0
Fixed maturity securities held to maturity	1			0
Commercial mortgage and other loans	(37		)	0
Loan commitments	(46		)	0
Total credit losses	(145		)	0
Derivatives and other:
Derivative gains (losses)	(85		)	0
Foreign currency gains (losses)	(77		)	(2		)
Total derivatives and other	(162		)	(2		)
Total net investment gains (losses)	$	(463	)	$	71

⁽¹⁾ U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities

The net effect on shareholders’ equity of unrealized gains and losses from fixed maturity securities was as follows:

(In millions)	March 31, 2020				December 31, 2019
Unrealized gains (losses) on securities available for sale		$	8,470			$	11,891
Deferred income taxes		(2,427		)		(3,343		)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities		$	6,043			$	8,548

Investments Gross Unrealized Loss Aging

The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the periods ended March 31, 2020 and available-for-sale and held-to-maturity investments for prior periods that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	March 31, 2020
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available for sale:
Japan government and agencies:
Yen-denominated		$	725		$	14		$	725		$	14		$	0		$	0
Municipalities:
Yen-denominated		56			1			42			0			14			1
Public utilities:
U.S. dollar-denominated		825			50			701			38			124			12
Yen-denominated		880			93			880			93			0			0
Sovereign and supranational:
U.S. dollar-denominated		18			1			18			1			0			0
Yen-denominated		701			27			701			27			0			0
Banks/financial institutions:
U.S. dollar-denominated		355			21			321			13			34			8
Yen-denominated		3,410			557			2,626			406			784			151
Other corporate:
U.S. dollar-denominated		8,244			988			5,427			527			2,817			461
Yen-denominated		2,829			389			2,677			357			152			32
Total		$	18,043		$	2,141		$	14,118		$	1,476		$	3,925		$	665

	December 31, 2019
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities:
Municipalities:
Yen-denominated		$	80		$	3		$	80		$	3		$	0		$	0
Public utilities:
U.S. dollar-denominated		306			10			69			2			237			8
Banks/financial institutions:
U.S. dollar-denominated		79			4			18			0			61			4
Yen-denominated		1,828			89			1,828			89			0			0
Other corporate:
U.S. dollar-denominated		4,261			248			792			53			3,469			195
Yen-denominated		636			31			636			31			0			0
Total		$	7,190		$	385		$	3,423		$	178		$	3,767		$	207

Composition of the Carrying Value for Commercial Mortgage and Other Loans by Property Type

The following table reflects the composition of the carrying value for commercial mortgage and other loans by property type as of the periods presented.

(In millions)	March 31, 2020					December 31, 2019
	Amortized Cost			% of Total		Amortized Cost				% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office	$	1,954		18.0	%	$	1,800			18.7	%
Retail	165			1.5		131				1.4
Apartments/Multi-Family	2,065			19.0		2,085				21.7
Industrial	175			1.6		256				2.7
Hospitality	1,024			9.4		1,036				10.8
Other	260			2.4		164				1.7
Total transitional real estate loans	5,643			51.9		5,472				57.0
Commercial mortgage loans:
Office	408			3.8		410				4.3
Retail	346			3.1		348				3.5
Apartments/Multi-Family	589			5.4		569				5.9
Industrial	397			3.7		383				4.0
Total commercial mortgage loans	1,740			16.0		1,710				17.7
Middle market loans	3,492			32.1		2,432				25.3
Total commercial mortgage and other loans	$	10,875		100.0	%	$	9,614			100.0	%
Allowance for credit losses	(125		)			(45		)	(1)
Total net commercial mortgage and other loans	$	10,750				$	9,569

⁽¹⁾ U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

Allowance for Loan Losses by Portfolio Segment

The following table presents the roll forward of the allowance for credit losses by portfolio segment during the three-month period ended March 31, 2020.

(in millions)	Transitional Real Estate Loans			Commercial Mortgage Loans			Middle Market Loans			Held to Maturity Securities			Available for Sale Securities			Reinsurance Recoverables
Balance at December 31, 2019 (1)	$	(22	)	$	(3	)	$	(20	)	$	0		$	0		$	0
Transition impact to retained earnings	(2		)	(8		)	(33		)	(10		)	0			(11		)
(Addition to) release of allowance for credit losses	(3		)	0			(34		)	1			(63		)	0
Balance at March 31, 2020	$	(27	)	$	(11	)	$	(87	)	$	(9	)	$	(63	)	$	(11	)

⁽¹⁾ U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

Other Investments

The table below reflects the composition of the carrying value for other investments as of the periods presented.

(In millions)	March 31, 2020			December 31, 2019
Other investments:
Policy loans		$	253		$	250
Short-term investments (1)		892			628
Limited partnerships		669			569
Other		29			30
Total other investments		$	1,843		$	1,477

⁽¹⁾ Includes securities lending collateral

Securities Lending Transactions Accounted for as Secured Borrowings

Details of collateral by loaned security type and remaining maturity of the agreements were as follows:

Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
	March 31, 2020						December 31, 2019
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total		Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Fixed maturity securities:
Japan government and agencies	$	0	$	2,318	$	2,318	$	0	$	1,013	$	1,013
Public utilities	35		0		35		35		0		35
Sovereign and supranational	1		0		1		2		0		2
Banks/financial institutions	68		0		68		48		0		48
Other corporate	547		0		547		778		0		778
Total borrowings	$	651	$	2,318	$	2,969	$	863	$	1,013	$	1,876
Gross amount of recognized liabilities for securities lending transactions					$	2,969					$	1,876

⁽¹⁾ The related loaned security, under the Company's U.S. securities lending program, can be returned to the Company at the transferee's discretion; therefore, they are classified as Overnight and Continuous.

Variable Interest Entity, Consolidated

Investments in Variable Interest Entities

VIEs - Consolidated

The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported.

Investments in Consolidated Variable Interest Entities

	March 31, 2020						December 31, 2019
(In millions)	Amortized Cost (1)			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	3,208		$	3,786		$	3,308		$	4,312
Commercial mortgage and other loans		9,051			8,737			7,956			8,015
Other investments (2)		550			550			494			494
Other assets (3)		89			89			169			169
Total assets of consolidated VIEs		$	12,898		$	13,162		$	11,927		$	12,990
Liabilities:
Other liabilities (3)		$	235		$	235		$	126		$	126
Total liabilities of consolidated VIEs		$	235		$	235		$	126		$	126

⁽¹⁾ Net of allowance for credit losses

⁽²⁾ Consists entirely of alternative investments in limited partnerships

⁽³⁾ Consists entirely of derivatives

Variable Interest Entity, Not Consolidated

Investments in Variable Interest Entities

VIEs - Not Consolidated

The table below reflects the amortized cost, fair value and balance sheet caption in which the Company's investment in VIEs not consolidated are reported.

Investments in Variable Interest Entities Not Consolidated

	March 31, 2020						December 31, 2019
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	5,999		$	6,397		$	4,129		$	4,884
Fixed maturity securities, held to maturity		0			0			1,848			2,236
Other investments (1)		119			119			75			74
Total investments in VIEs not consolidated		$	6,118		$	6,516		$	6,052		$	7,194

⁽¹⁾ Consists entirely of alternative investments in limited partnerships

Transitional real estate loans

Financing Receivable Credit Quality Indicators

Transitional Real Estate Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Total
Loan-to-Value Ratio:
0%-59.99%	$	33	$	471	$	409	$	155	$	20	$	57	$	1,145
60%-69.99%	190		777		834		436		0		0		2,237
70%-79.99%	81		858		997		250		14		0		2,200
80% or greater	25		36		0		0		0		0		61
Total	$	329	$	2,142	$	2,240	$	841	$	34	$	57	$	5,643

Commercial mortgage loans

Financing Receivable Credit Quality Indicators

Commercial Mortgage Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Total		Weighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%	$	12	$	474	$	156	$	69	$	683	$	0	$	1,394	2.43
60%-69.99%	27		190		16		0		90		0		323		1.74
70%-79.99%	0		0		0		0		23		0		23		1.32
Total	39		664		172		69		796		0		1,740		2.29
Weighted Average DSCR	1.84		2.33		2.16		2.37		2.30		0		2.29

Middle market loans

Financing Receivable Credit Quality Indicators

Middle Market Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
Credit Ratings:
BBB	$	9	$	57	$	52	$	22	$	12	$	0	$	15	$	167
BB	86		277		187		140		56		20		84		850
B	210		827		466		309		98		58		338		2,306
CCC	0		58		10		34		25		4		15		146
CC	0		1		0		18		0		2		2		23
Total	$	305	$	1,220	$	715	$	523	$	191	$	84	$	454	$	3,492

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COMMITMENTS AND CONTINGENT LIABILITIES

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

COMMITMENTS AND CONTINGENT LIABILITIES

The Company is a defendant in various lawsuits considered to be in the normal course of business. Members of the Company's senior legal and financial management teams review litigation on a quarterly and annual basis. The final results of any litigation cannot be predicted with certainty. Although some of this litigation is pending in states where large punitive damages, bearing little relation to the actual damages sustained by plaintiffs, have been awarded in recent years, the Company believes the outcome of pending litigation will not have a material adverse effect on its financial position, results of operations, or cash flows.

See Note 3 of the Notes to the Consolidated Financial Statements for details on certain investment commitments.

Guaranty Fund Assessments

The U.S. insurance industry has a policyholder protection system that is monitored and regulated by state insurance departments. These life and health insurance guaranty associations are state entities (in all 50 states as well as Puerto Rico and the District of Columbia) created to protect policyholders of an insolvent insurance company. All insurance companies (with limited exceptions) licensed to sell life or health insurance in a state must be members of that state’s guaranty association. Under state guaranty association laws, certain insurance companies can be assessed (up to prescribed limits) for certain obligations to the policyholders and claimants of impaired or insolvent insurance companies that write the same line or similar lines of business.

In 2009, the Pennsylvania Insurance Commissioner placed long-term care insurer Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company (collectively referred to as Penn Treaty), neither of which is affiliated with Aflac, in rehabilitation and petitioned a state court for approval to liquidate Penn Treaty. A final order of liquidation was granted by a recognized judicial authority on March 1, 2017, and as a result, Penn Treaty is in the process of liquidation. The Company estimated and recognized the impact of its share of guaranty fund assessments resulting from the liquidation using a discounted rate of 4.25%. The Company recognized a discounted liability for the assessments of $62 million (undiscounted $94 million), offset by discounted premium tax credits of $48 million (undiscounted $74 million), for a net $14 million impact to net income in the quarter ended March 31, 2017. The Company paid a majority of these assessments by March 31, 2020. The Company used the cost estimate provided as of the liquidation date by the National Organization of Life and Health Guaranty Associations (NOLHGA) to calculate its estimated assessments and tax credits.

Guaranty fund assessments for the three-month period ended March 31, 2020 were immaterial.

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FAIR VALUE MEASUREMENTS - Changes in Investments and Derivatives Carried at Fair Value Classified as Level 3 (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020		Mar. 31, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period		$ 810		$ 648
Net investment gains (losses) included in earnings		(185)		(8)
Unrealized gains (losses) included in other comprehensive income (loss)		(28)		1
Purchases		85		63
Issuances		0		0
Sales		0		(2)
Settlements		(1)		0
Transfers into Level 3		9		25
Transfers out of Level 3		0		(41)
Balance, end of period		690		686
Change in unrealized gains (losses) still held		(185)		(8)
Foreign currency swaps
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	[1]	43		80
Net investment gains (losses) included in earnings	[1]	(185)		(8)
Unrealized gains or losses included in other comprehensive income (loss)	[1]	(4)		(2)
Purchases	[1]	0		0
Issuances	[1]	0		0
Sales	[1]	0		0
Settlements	[1]	0		0
Transfers into Level 3	[1]	0		0
Transfers out of Level 3	[1]	0		0
Balance, end of period	[1]	(146)		70
Changes in unrealized gain (losses) still held	[1]	(185)		(8)
Credit default swaps
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	[1]	0		0
Net investment gains (losses) included in earnings	[1]	0		0
Unrealized gains or losses included in other comprehensive income (loss)	[1]	0		0
Purchases	[1]	0		0
Issuances	[1]	0		0
Sales	[1]	0		0
Settlements	[1]	0		0
Transfers into Level 3	[1]	0		0
Transfers out of Level 3	[1]	0		0
Balance, end of period	[1]	0		0
Changes in unrealized gain (losses) still held	[1]	0		0
Fixed maturity securities | Mortgage- and asset-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period		178		177
Net investment gains (losses) included in earnings		0		0
Unrealized gains (losses) included in other comprehensive income (loss)		1		1
Purchases		0		0
Issuances		0		0
Sales		0		0
Settlements		0		0
Transfers into Level 3		9	[2]	0
Transfers out of Level 3		0		0
Balance, end of period		188		178
Change in unrealized gains (losses) still held		0		0
Fixed maturity securities | Public utilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period		224		109
Net investment gains (losses) included in earnings		0		0
Unrealized gains (losses) included in other comprehensive income (loss)		(8)		1
Purchases		83		0
Issuances		0		0
Sales		0		0
Settlements		(1)		0
Transfers into Level 3		0		0
Transfers out of Level 3		0		(25)	[3]
Balance, end of period		298		85
Change in unrealized gains (losses) still held		0		0
Fixed maturity securities | Banks/financial institutions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period		23		23
Net investment gains (losses) included in earnings		0		0
Unrealized gains (losses) included in other comprehensive income (loss)		0		0
Purchases		0		0
Issuances		0		0
Sales		0		0
Settlements		0		0
Transfers into Level 3		0		0
Transfers out of Level 3		0		0
Balance, end of period		23		23
Change in unrealized gains (losses) still held		0		0
Fixed maturity securities | Other corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period		262		213
Net investment gains (losses) included in earnings		0		0
Unrealized gains (losses) included in other comprehensive income (loss)		(17)		1
Purchases		0		63
Issuances		0		0
Sales		0		(2)
Settlements		0		0
Transfers into Level 3		0		25	[3]
Transfers out of Level 3		0		(16)	[4]
Balance, end of period		245		284
Change in unrealized gains (losses) still held		0		0
Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period		80		46
Net investment gains (losses) included in earnings		0		0
Unrealized gains (losses) included in other comprehensive income (loss)		0		0
Purchases		2		0
Issuances		0		0
Sales		0		0
Settlements		0		0
Transfers into Level 3		0		0
Transfers out of Level 3		0		0
Balance, end of period		82		46
Change in unrealized gains (losses) still held		$ 0		$ 0

[1] Derivative assets and liabilities are presented net

[2] Transfer due to reclassification of level 3 securities from HTM to AFS

[3] Transfer due to sector classification change

[4] Transfer due to availability of observable market inputs

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FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Assets:
Available for sale, fixed maturity securities	$ 96,288	$ 91,262
Equity securities	660	802
Other investments	892	628
Cash and cash equivalents	4,148	4,896
Asset derivatives	472	482
Total assets	102,460	98,070
Liabilities:
Liability derivatives	723	586
Total liabilities	723	586
Foreign currency swaps
Assets:
Asset derivatives	155	241
Liabilities:
Liability derivatives	273	204
Foreign currency forwards
Assets:
Asset derivatives	269	238
Liabilities:
Liability derivatives	427	377
Foreign currency options
Assets:
Asset derivatives	27
Liabilities:
Liability derivatives	23	5
Interest rate swaps
Assets:
Asset derivatives	21	3
Government and agencies
Assets:
Available for sale, fixed maturity securities	36,978	36,400
Municipalities
Assets:
Available for sale, fixed maturity securities	2,440	1,847
Mortgage- and asset-backed securities
Assets:
Available for sale, fixed maturity securities	497	410
Public utilities
Assets:
Available for sale, fixed maturity securities	9,192	6,780
Sovereign and supranational
Assets:
Available for sale, fixed maturity securities	1,609	1,042
Banks/financial institutions
Assets:
Available for sale, fixed maturity securities	10,378	10,287
Other corporate
Assets:
Available for sale, fixed maturity securities	35,194	34,496
Level 1
Assets:
Available for sale, fixed maturity securities	35,469	34,878
Equity securities	509	642
Other investments	892	628
Cash and cash equivalents	4,148	4,896
Asset derivatives	0	0
Total assets	41,018	41,044
Liabilities:
Total liabilities	0	0
Level 1 | Foreign currency swaps
Assets:
Asset derivatives	0	0
Liabilities:
Liability derivatives	0	0
Level 1 | Foreign currency forwards
Assets:
Asset derivatives	0	0
Liabilities:
Liability derivatives	0	0
Level 1 | Foreign currency options
Assets:
Asset derivatives	0
Liabilities:
Liability derivatives	0	0
Level 1 | Interest rate swaps
Assets:
Asset derivatives	0	0
Level 1 | Government and agencies
Assets:
Available for sale, fixed maturity securities	35,469	34,878
Level 1 | Municipalities
Assets:
Available for sale, fixed maturity securities	0	0
Level 1 | Mortgage- and asset-backed securities
Assets:
Available for sale, fixed maturity securities	0	0
Level 1 | Public utilities
Assets:
Available for sale, fixed maturity securities	0	0
Level 1 | Sovereign and supranational
Assets:
Available for sale, fixed maturity securities	0	0
Level 1 | Banks/financial institutions
Assets:
Available for sale, fixed maturity securities	0	0
Level 1 | Other corporate
Assets:
Available for sale, fixed maturity securities	0	0
Level 2
Assets:
Available for sale, fixed maturity securities	60,065	55,697
Equity securities	69	80
Other investments	0	0
Cash and cash equivalents	0	0
Asset derivatives	383	313
Total assets	60,517	56,090
Liabilities:
Total liabilities	488	460
Level 2 | Foreign currency swaps
Assets:
Asset derivatives	66	72
Liabilities:
Liability derivatives	38	78
Level 2 | Foreign currency forwards
Assets:
Asset derivatives	269	238
Liabilities:
Liability derivatives	427	377
Level 2 | Foreign currency options
Assets:
Asset derivatives	27
Liabilities:
Liability derivatives	23	5
Level 2 | Interest rate swaps
Assets:
Asset derivatives	21	3
Level 2 | Government and agencies
Assets:
Available for sale, fixed maturity securities	1,509	1,522
Level 2 | Municipalities
Assets:
Available for sale, fixed maturity securities	2,440	1,847
Level 2 | Mortgage- and asset-backed securities
Assets:
Available for sale, fixed maturity securities	309	232
Level 2 | Public utilities
Assets:
Available for sale, fixed maturity securities	8,894	6,556
Level 2 | Sovereign and supranational
Assets:
Available for sale, fixed maturity securities	1,609	1,042
Level 2 | Banks/financial institutions
Assets:
Available for sale, fixed maturity securities	10,355	10,264
Level 2 | Other corporate
Assets:
Available for sale, fixed maturity securities	34,949	34,234
Level 3
Assets:
Available for sale, fixed maturity securities	754	687
Equity securities	82	80
Other investments	0	0
Cash and cash equivalents	0	0
Asset derivatives	89	169
Total assets	925	936
Liabilities:
Total liabilities	235	126
Level 3 | Foreign currency swaps
Assets:
Asset derivatives	89	169
Liabilities:
Liability derivatives	235	126
Level 3 | Foreign currency forwards
Assets:
Asset derivatives	0	0
Liabilities:
Liability derivatives	0	0
Level 3 | Foreign currency options
Assets:
Asset derivatives	0
Liabilities:
Liability derivatives	0	0
Level 3 | Interest rate swaps
Assets:
Asset derivatives	0	0
Level 3 | Government and agencies
Assets:
Available for sale, fixed maturity securities	0	0
Level 3 | Municipalities
Assets:
Available for sale, fixed maturity securities	0	0
Level 3 | Mortgage- and asset-backed securities
Assets:
Available for sale, fixed maturity securities	188	178
Level 3 | Public utilities
Assets:
Available for sale, fixed maturity securities	298	224
Level 3 | Sovereign and supranational
Assets:
Available for sale, fixed maturity securities	0	0
Level 3 | Banks/financial institutions
Assets:
Available for sale, fixed maturity securities	23	23
Level 3 | Other corporate
Assets:
Available for sale, fixed maturity securities	$ 245	$ 262

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INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Equity Securities, FV-NI [Line Items]
Fair Value	$ 660	$ 802
Yen-denominated
Equity Securities, FV-NI [Line Items]
Fair Value	528	658
Dollar-denominated
Equity Securities, FV-NI [Line Items]
Fair Value	$ 132	$ 144

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INVESTMENTS - Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Investments [Abstract]
Unrealized gains (losses) on securities available for sale	$ 8,470	$ 11,891
Deferred income taxes	(2,427)	(3,343)
Shareholders' equity, unrealized gains (losses) on fixed maturity securities	$ 6,043	$ 8,548

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INVESTMENTS - Commercial Mortgage Loans by Key Credit Quality Indicators (Details) - Commercial mortgage loans	Mar. 31, 2020 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 39
2019	664
2018	172
2017	69
2016	796
Prior	0
Total Financing Receivable	$ 1,740
Weighted Average Debt Service Coverage Ratio	2.29
2020
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	1.84
2019
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	2.33
2018
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	2.16
2017
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	2.37
2016
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	2.30
Prior
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	0
Loan to Value Ratio, Zero to Fifty-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 12
2019	474
2018	156
2017	69
2016	683
Prior	0
Total Financing Receivable	$ 1,394
Weighted Average Debt Service Coverage Ratio	2.43
Loan to Value Ratio, Sixty to Sixty-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 27
2019	190
2018	16
2017	0
2016	90
Prior	0
Total Financing Receivable	$ 323
Weighted Average Debt Service Coverage Ratio	1.74
Loan to Value Ratio, Seventy to Seventy-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 0
2019	0
2018	0
2017	0
2016	23
Prior	0
Total Financing Receivable	$ 23
Weighted Average Debt Service Coverage Ratio	1.32

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DERIVATIVE INSTRUMENTS - Summary of Balance Sheet Classification of Derivative Fair Value Amounts, as well as Gross Asset and Liability Fair Value Amounts (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Derivatives, Fair Value [Line Items]
Notional Amount	$ 53,291	$ 61,695
Derivative asset, fair value, gross asset including not subject to master netting arrangement	472	482
Derivative liability, fair value, gross liability including not subject to master netting arrangement	723	586
Asset derivatives fair value	383	313
Liability derivatives fair value	488	460
Cash flow hedges
Derivatives, Fair Value [Line Items]
Notional Amount	75	75
Asset derivatives fair value	0	0
Liability derivatives fair value	11	8
Cash flow hedges | Foreign currency swaps | Variable Interest Entity
Derivatives, Fair Value [Line Items]
Notional Amount	75	75
Asset derivatives fair value	0	0
Liability derivatives fair value	11	8
Fair value hedges
Derivatives, Fair Value [Line Items]
Notional Amount	9,115	12,780
Asset derivatives fair value	12	0
Liability derivatives fair value	24	43
Fair value hedges | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Notional Amount	63	964
Asset derivatives fair value	0	0
Liability derivatives fair value	1	38
Fair value hedges | Foreign currency options
Derivatives, Fair Value [Line Items]
Notional Amount	8,809	11,573
Asset derivatives fair value	12	0
Liability derivatives fair value	23	5
Fair value hedges | Interest rate swaptions
Derivatives, Fair Value [Line Items]
Notional Amount	243	243
Asset derivatives fair value	0	0
Liability derivatives fair value	0	0
Net investment hedge
Derivatives, Fair Value [Line Items]
Notional Amount	7,025	6,952
Asset derivatives fair value	92	72
Liability derivatives fair value	6	2
Net investment hedge | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Notional Amount	4,985	4,952
Asset derivatives fair value	85	72
Liability derivatives fair value	6	2
Net investment hedge | Foreign currency options
Derivatives, Fair Value [Line Items]
Notional Amount	2,040	2,000
Asset derivatives fair value	7	0
Liability derivatives fair value	0	0
Non-qualifying strategies
Derivatives, Fair Value [Line Items]
Notional Amount	37,076	41,888
Asset derivatives fair value	368	410
Liability derivatives fair value	682	533
Non-qualifying strategies | Foreign currency swaps | Variable Interest Entity
Derivatives, Fair Value [Line Items]
Notional Amount	2,587	2,587
Asset derivatives fair value	89	169
Liability derivatives fair value	224	118
Non-qualifying strategies | Foreign currency swaps | Consolidated Entity Excluding Variable Interest Entities (VIE)
Derivatives, Fair Value [Line Items]
Notional Amount	2,250	2,800
Asset derivatives fair value	66	72
Liability derivatives fair value	38	78
Non-qualifying strategies | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Notional Amount	20,614	19,821
Asset derivatives fair value	184	166
Liability derivatives fair value	420	337
Non-qualifying strategies | Foreign currency options
Derivatives, Fair Value [Line Items]
Notional Amount	9,248	9,553
Asset derivatives fair value	8	0
Liability derivatives fair value	0	0
Non-qualifying strategies | Interest rate swaps
Derivatives, Fair Value [Line Items]
Notional Amount	2,370	7,120
Asset derivatives fair value	21	3
Liability derivatives fair value	0	0
Non-qualifying strategies | Interest rate swaptions
Derivatives, Fair Value [Line Items]
Notional Amount	7	7
Asset derivatives fair value	0	0
Liability derivatives fair value	$ 0	$ 0

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INVESTMENTS - Investments in Variable Interest Entities Not Consolidated (Details) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Available for sale, fixed maturity securities, amortized cost		$ 87,881	$ 79,371
Available for sale, fixed maturity securities		96,288	91,262
Securities held to maturity, fixed maturities, amortized cost		23,287	30,085
Held to maturity, fixed maturity securities, fair value		29,347	37,594
Other investments		1,843	1,477
Assets, fair value		102,460	98,070
Variable Interest Entity, Not Consolidated
Variable Interest Entity [Line Items]
Available for sale, fixed maturity securities, amortized cost		5,999	4,129
Available for sale, fixed maturity securities		6,397	4,884
Securities held to maturity, fixed maturities, amortized cost		0	1,848
Held to maturity, fixed maturity securities, fair value		0	2,236
Other investments	[1]	119	75
Other investments, fair value	[1]	119	74
Assets, amortized cost		6,118	6,052
Assets, fair value		$ 6,516	$ 7,194

[1] Consists entirely of alternative investments in limited partnerships

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COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loss contingency accrual, insurance-related assessment, discount rate	4.25%
Loss contingency, discounted amount of insurance-related assessment liability	$ 62
Loss contingency, undiscounted amount of insurance-related assessment liability	94
Loss contingency, insurance-related assessment, discounted amount of premium tax offset	48
Loss contingency, insurance-related assessment, undiscounted amount of premium tax offset	74
Loss contingency, loss in period	$ 14

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SHAREHOLDERS' EQUITY - Reconciliation of Number of Shares of Common Stock (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Common Stock Issued [Roll Forward]
Balance, beginning of period	1,349,309	1,347,540
Exercise of stock options and issuance of restricted shares	1,341	1,060
Balance, end of period	1,350,650	1,348,600
Treasury Stock [Roll Forward]
Balance, beginning of period	622,516	592,254
Balance, end of period	632,268	602,113
Shares outstanding, end of period	718,382	746,487
Treasury Stock
Treasury Stock [Roll Forward]
Stock acquired under share repurchase program, shares	9,984	10,237
Other purchases	508	561
Shares issued to AFL Stock Plan	(468)	(430)
Exercise of stock options	(45)	(231)
Other dispositions	(227)	(278)

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SHAREHOLDERS' EQUITY - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Stockholders Equity Note [Line Items]
Common stock, share repurchase, dollar amount	$ 449	$ 490
Remaining common stock available for purchase under share repurchase authorizations	27.1
Share Repurchase Program
Stockholders Equity Note [Line Items]
Stock acquired under share repurchase program, shares	10.0	10.2
Common stock, share repurchase, dollar amount	$ 449	$ 490

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POLICY LIABILITIES - Additional Information (Details) - Health insurance - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Liability for Future Policy Benefit, by Product Segment [Line Items]
Prior years claims and claims adjustment expense	$ (136)	$ (167)
Aflac Japan
Liability for Future Policy Benefit, by Product Segment [Line Items]
Prior years claims and claims adjustment expense	$ 91
Percentage of total prior year claims and claims adjustment expense	67.00%
Liability for unpaid claims and claims adjustment expense, foreign currency translation gain (loss), prior year claims adjustment expense	$ 1
Prior year claims and claims adjustment expense excluding effect of foreign currency	$ 90
Percentage of total prior year claims and claims adjustment expense excluding effect of foreign currency	66.00%

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NOTES PAYABLE AND LEASE OBLIGATIONS - Summary of Notes Payable (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Notes payable and lease obligations	$ 6,758	$ 6,569
Finance lease obligations	12	12
Operating lease obligations	149	149
4.00% senior notes paid January 2020
Debt Instrument [Line Items]
Notes payable and lease obligations	0	348
3.625% senior notes due June 2023
Debt Instrument [Line Items]
Notes payable and lease obligations	698	698
3.625% senior notes due November 2024
Debt Instrument [Line Items]
Notes payable and lease obligations	747	747
3.25% senior notes due March 2025
Debt Instrument [Line Items]
Notes payable and lease obligations	448	448
2.875% senior notes due October 2026
Debt Instrument [Line Items]
Notes payable and lease obligations	298	298
6.90% senior notes due December 2039
Debt Instrument [Line Items]
Notes payable and lease obligations	220	220
6.45% senior notes due August 2040
Debt Instrument [Line Items]
Notes payable and lease obligations	254	254
4.00% senior notes due October 2046
Debt Instrument [Line Items]
Notes payable and lease obligations	393	394
4.750% senior notes due January 2049
Debt Instrument [Line Items]
Notes payable and lease obligations	541	541
.300% senior notes due September 2025
Debt Instrument [Line Items]
Notes payable and lease obligations	113	0
.932% senior notes due January 2027
Debt Instrument [Line Items]
Notes payable and lease obligations	549	545
.500% senior noted due December 2029
Debt Instrument [Line Items]
Notes payable and lease obligations	115	114
.550% senior notes due March 2030
Debt Instrument [Line Items]
Notes payable and lease obligations	121	0
1.159% senior notes due October 2030
Debt Instrument [Line Items]
Notes payable and lease obligations	268	266
.843% senior notes due December 2031
Debt Instrument [Line Items]
Notes payable and lease obligations	85	84
.750% senior notes due March 2032
Debt Instrument [Line Items]
Notes payable and lease obligations	189	0
1.488% senior notes due October 2033
Debt Instrument [Line Items]
Notes payable and lease obligations	139	138
.934% senior notes due December 2034
Debt Instrument [Line Items]
Notes payable and lease obligations	89	88
.830% senior notes due March 2035
Debt Instrument [Line Items]
Notes payable and lease obligations	97	0
1.750% senior notes due October 2038
Debt Instrument [Line Items]
Notes payable and lease obligations	81	81
1.122% senior notes due December 2039
Debt Instrument [Line Items]
Notes payable and lease obligations	57	57
2.108% subordinated notes due October 2047
Debt Instrument [Line Items]
Notes payable and lease obligations	547	543
.936% subordinate bond due April 2049
Debt Instrument [Line Items]
Notes payable and lease obligations	274	272
Yen-denominated loan variable interest rate due September 2026
Debt Instrument [Line Items]
Notes payable and lease obligations	46	45
Yen-denominated loan variable interest rate due September 2029
Debt Instrument [Line Items]
Notes payable and lease obligations	$ 228	$ 227

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SHARE-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Detail) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Share-based Payment Arrangement [Abstract]
Options Outstanding - Stock Option Shares | shares	3,354
Options Outstanding - Weighted-Average Remaining Term (Yrs)	4 years 4 months 24 days
Options Outstanding - Aggregate Intrinsic Value | $	$ 16
Options Outstanding - Weighted-Average Exercise Price Per Share | $ / shares	$ 29.98
Options Exercisable - Stock Option Shares | shares	3,353
Options Exercisable - Weighted-Average Remaining Term (Yrs.)	4 years 4 months 24 days
Options Exercisable - Aggregate Intrinsic Value | $	$ 16
Options Exercisable - Weighted-Average Exercise Price Per Share | $ / shares	$ 29.97

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REINSURANCE

3 Months Ended

Mar. 31, 2020

Reinsurance Disclosures [Abstract]

REINSURANCE

REINSURANCE

The Company periodically enters into fixed quota-share coinsurance agreements with other companies in the normal course of business. For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and benefits are reported net of insurance ceded.

The Company has recorded a deferred profit liability related to reinsurance transactions. The remaining deferred profit liability of $1.0 billion as of both March 31, 2020 and December 31, 2019, respectively, is included in future policy benefits in the consolidated balance sheet and is being amortized into income over the expected lives of the policies. The Company has also recorded a reinsurance recoverable for reinsurance transactions, which is included in other assets in the consolidated balance sheet and had a remaining balance of $976 million and $970 million as of March 31, 2020 and December 31, 2019,

respectively. The increase in the reinsurance recoverable balance was driven by the growth in reserves related to the business that has been reinsured as the policies age. The spot yen/dollar exchange rate strengthened by approximately .7% and ceded reserves increased approximately 2.3% from December 31, 2019 to March 31, 2020.

The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance.

	Three Months Ended March 31,
(In millions)	2020				2019
Direct premium income		$	4,772			$	4,776
Ceded to other companies:
Ceded Aflac Japan closed blocks		(116		)		(121		)
Other		(24		)		(15		)
Assumed from other companies:
Retrocession activities		49				50
Other		0				1
Net premium income		$	4,681			$	4,691
Direct benefits and claims		$	3,028			$	3,041
Ceded benefits and change in reserves for future benefits:
Ceded Aflac Japan closed blocks		(105		)		(111		)
Eliminations		10				10
Other		(25		)		(11		)
Assumed from other companies:
Retrocession activities		41				48
Eliminations		(10		)		(10		)
Other		0				0
Benefits and claims, net		$	2,939			$	2,967

These reinsurance transactions are indemnity reinsurance that do not relieve the Company from its obligations to policyholders. In the event that the reinsurer is unable to meet their obligations, the Company remains liable for the reinsured claims.

As a part of its capital contingency plan, the Company entered into a committed reinsurance facility agreement on December 1, 2015 in the amount of approximately ¥110 billion of reserves. This reinsurance facility agreement was renewed in 2019 and is effective until December 31, 2020. There are also additional commitment periods of a one-year duration, each of which are automatically extended unless notification is received from the reinsurer within 60 days prior to the expiration. The reinsurer can withdraw from the committed facility if Aflac‘s Standard and Poor's (S&P) rating drops below BBB-. As of March 31, 2020, the Company has not executed a reinsurance treaty under this committed reinsurance facility.

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions		Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)	Treasury stock
Balance, beginning of period at Dec. 31, 2018		$ 23,462	$ 135	$ 2,177	$ 31,788	$ 2,151	$ (12,789)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		928	0	0	928	0	0
Unrealized foreign currency translation gains (losses) during period, net of income taxes		(1)	0	0	0	(1)	0
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments		2,327	0	0	0	2,327	0
Unrealized gains (losses) on derivatives during period, net of income taxes		(2)	0	0	0	(2)	0
Pension liability adjustment during period, net of income taxes		6	0	0	0	6	0
Dividends to shareholders		(203)	0	0	(203)	0	0
Exercise of stock options		11	0	11	0	0	0
Share-based compensation		8	0	8	0	0	0
Purchases of treasury stock		(517)	0	0	0	0	(517)
Treasury stock reissued		30	0	12	0	0	18
Balance, end of period at Mar. 31, 2019		26,049	135	2,208	32,513	4,481	(13,288)
Balance, beginning of period at Dec. 31, 2019		28,959	135	2,313	34,291	6,615	(14,395)
Cumulative effect of change in accounting principle, net of income taxes (Accounting Standards Update 2016-13) at Dec. 31, 2019	[1]	(56)	0	0	(56)	0	0
Cumulative effect of change in accounting principle, net of income taxes (Accounting Standards Update 2019-04) at Dec. 31, 2019	[1]	848	0	0	0	848	0
Adjusted balance, beginning of period at Dec. 31, 2019		29,751	135	2,313	34,235	7,463	(14,395)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		566	0	0	566	0	0
Unrealized foreign currency translation gains (losses) during period, net of income taxes		80	0	0	0	80	0
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments		(3,353)	0	0	0	(3,353)	0
Unrealized gains (losses) on derivatives during period, net of income taxes		(2)	0	0	0	(2)	0
Pension liability adjustment during period, net of income taxes		0	0	0	0	0	0
Dividends to shareholders		(202)	0	0	(202)	0	0
Exercise of stock options		5	0	5	0	0	0
Share-based compensation		7	0	7	0	0	0
Purchases of treasury stock		(476)	0	0	0	0	(476)
Treasury stock reissued		26	0	9	0	0	17
Balance, end of period at Mar. 31, 2020		$ 26,402	$ 135	$ 2,334	$ 34,599	$ 4,188	$ (14,854)

[1] See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2020

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Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2020		Mar. 31, 2019
Revenues:
Net premiums, principally supplemental health insurance	$ 4,681		$ 4,691
Net investment income	904		878
Net investment gains (losses)	(463)		71
Other income (loss)	40		17
Total revenues	5,162		5,657
Benefits and expenses:
Benefits and claims, net	2,939		2,967
Acquisition and operating expenses:
Amortization of deferred policy acquisition costs	333		340
Insurance commissions	336		331
Insurance and other expenses	779	[1]	719
Interest expense	55		58
Total acquisition and operating expenses	1,503		1,448
Total benefits and expenses	4,442		4,415
Earnings before income taxes	720		1,242
Income taxes	154		314
Net earnings	$ 566		$ 928
Net earnings per share:
Basic (in dollars per share)	$ 0.78		$ 1.23
Diluted (in dollars per share)	$ 0.78		$ 1.23
Weighted-average outstanding common shares used in computing earnings per share (In thousands):
Basic (in shares)	724,366		751,423
Diluted (in shares)	727,512		755,790
Cash dividends per share	$ 0.28		$ 0.27
4.00% senior notes paid January 2020
Expense on extinguishment of debt	$ 15

[1] Includes expense of $15 in 2020 for the early extinguishment of debt

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INVESTMENTS

3 Months Ended

Mar. 31, 2020

Investments [Abstract]

INVESTMENTS

INVESTMENTS

Investment Holdings

The amortized cost for the Company's investments in fixed maturity securities, the cost for equity securities and the fair values of these investments are shown in the following tables.

	March 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	31,853	$	0	$	4,766	$	14	$	36,605
Municipalities	984		0		228		1		1,211
Mortgage- and asset-backed securities	306		0		31		0		337
Public utilities	4,412		0		430		93		4,749
Sovereign and supranational	1,300		0		33		27		1,306
Banks/financial institutions	7,159		0		404		557		7,006
Other corporate	7,817		0		753		389		8,181
Total yen-denominated	53,831		0		6,645		1,081		59,395
U.S. dollar-denominated:
U.S. government and agencies	350		0		23		0		373
Municipalities	1,084		0		145		0		1,229
Mortgage- and asset-backed securities	152		0		8		0		160
Public utilities	3,844		0		649		50		4,443
Sovereign and supranational	239		0		65		1		303
Banks/financial institutions	2,848		0		545		21		3,372
Other corporate	25,533		63		2,531		988		27,013
Total U.S. dollar-denominated	34,050		63		3,966		1,060		36,893
Total securities available for sale	$	87,881	$	63	$	10,611	$	2,141	$	96,288

	December 31, 2019
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair   value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	30,929	$	5,169	$	0	$	36,098
Municipalities	516		116		3		629
Mortgage- and asset-backed securities	229		25		0		254
Public utilities	1,855		406		0		2,261
Sovereign and supranational	680		50		0		730
Banks/financial institutions	6,152		700		86		6,766
Other corporate	5,323		944		24		6,243
Total yen-denominated	45,684		7,410		113		52,981
U.S dollar-denominated:
U.S. government and agencies	293		9		0		302
Municipalities	1,077		141		0		1,218
Mortgage- and asset-backed securities	149		7		0		156
Public utilities	3,804		725		10		4,519
Sovereign and supranational	239		73		0		312
Banks/financial institutions	2,879		646		4		3,521
Other corporate	25,246		3,255		248		28,253
Total U.S. dollar-denominated	33,687		4,856		262		38,281
Total securities available for sale	$	79,371	$	12,266	$	375	$	91,262

	March 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	22,387	$	3	$	22,384	$	5,810	$	0	$	28,194
Municipalities	362		0		362		122		0		484
Public utilities	46		1		45		14		0		59
Sovereign and supranational	469		5		464		114		0		578
Other corporate	23		0		23		9		0		32
Total yen-denominated	23,287		9		23,278		6,069		0		29,347
Total securities held to maturity	$	23,287	$	9	$	23,278	$	6,069	$	0	$	29,347

	December 31, 2019
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	22,241	$	6,050	$	0	$	28,291
Municipalities	821		262		0		1,083
Mortgage- and asset-backed securities	16		1		0		17
Public utilities	2,535		419		0		2,954
Sovereign and supranational	1,123		197		0		1,320
Banks/financial institutions	916		105		3		1,018
Other corporate	2,433		485		7		2,911
Total yen-denominated	30,085		7,519		10		37,594
Total securities held to maturity	$	30,085	$	7,519	$	10	$	37,594

(In millions)	March 31, 2020			December 31, 2019
Equity securities, carried at fair value through net earnings:	Fair Value			Fair Value
Equity securities:
Yen-denominated		$	528		$	658
U.S. dollar-denominated		132			144
Total equity securities		$	660		$	802

The methods of determining the fair values of the Company's investments in fixed maturity securities and equity securities are described in Note 5.

During the first quarter of 2020, as a result of the adoption of ASU 2019-04 discussed in Note 1, the Company reclassified $6.9 billion (at amortized cost) of pre-payable fixed-maturity securities from the held-to-maturity category to the available-for-sale category. This reclassification resulted in recording in accumulated other comprehensive income a net unrealized gain of $848 million on an after-tax basis. During the first quarter of 2019, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category.

Contractual and Economic Maturities

The contractual and economic maturities of the Company's investments in fixed maturity securities at March 31, 2020, were as follows:

(In millions)	Amortized Cost (1)			Fair Value
Available for sale:
Due in one year or less		$	1,078		$	1,105
Due after one year through five years		8,992			8,806
Due after five years through 10 years		12,399			13,221
Due after 10 years		64,891			72,659
Mortgage- and asset-backed securities		458			497
Total fixed maturity securities available for sale		$	87,818		$	96,288
Held to maturity:
Due in one year or less		$	0		$	0
Due after one year through five years		0			0
Due after five years through 10 years		49			55
Due after 10 years		23,229			29,292
Mortgage- and asset-backed securities		0			0
Total fixed maturity securities held to maturity		$	23,278		$	29,347

⁽¹⁾ Net of allowance for credit losses

Economic maturities are used for certain debt instruments with no stated maturity where the expected maturity date is based on the combination of features in the financial instrument such as the right to call or prepay obligations or changes in coupon rates.

Investment Concentrations

The Company's process for investing in credit-related investments begins with an independent approach to underwriting each issuer's fundamental credit quality. The Company evaluates independently those factors that it believes could influence an issuer's ability to make payments under the contractual terms of the Company's instruments. This includes a thorough analysis of a variety of items including the issuer's country of domicile (including political, legal, and financial considerations); the industry in which the issuer competes (with an analysis of industry structure, end-market dynamics, and regulation); company specific issues (such as management, assets, earnings, cash generation, and capital needs); and contractual provisions of the instrument (such as financial covenants and position in the capital structure). The Company further evaluates the investment considering broad business and portfolio management objectives, including asset/liability needs, portfolio diversification, and expected income.

Investment exposures that individually exceeded 10% of shareholders' equity were as follows:

	March 31, 2020			December 31, 2019
(In millions)	Credit Rating	Amortized Cost	Fair Value	Credit Rating	Amortized Cost	Fair Value
Japan National Government(1)	A+	$52,786	$63,020	A+	$51,726	$62,584

⁽¹⁾Japan Government Bonds (JGBs) or JGB-backed securities

Net Investment Gains and Losses

Information regarding pretax net gains and losses from investments is as follows:

	Three Months Ended March 31,
(In millions)	2020			2019
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales	$	7		$	12
Gross losses from sales	0			(8		)
Foreign currency gains (losses) on sales and redemptions	(14		)	13
Total sales and redemptions	(7		)	17
Equity securities	(149		)	58
Loan loss reserves (1)	0			(2		)
Credit losses:
Fixed maturity securities available for sale	(63		)	0
Fixed maturity securities held to maturity	1			0
Commercial mortgage and other loans	(37		)	0
Loan commitments	(46		)	0
Total credit losses	(145		)	0
Derivatives and other:
Derivative gains (losses)	(85		)	0
Foreign currency gains (losses)	(77		)	(2		)
Total derivatives and other	(162		)	(2		)
Total net investment gains (losses)	$	(463	)	$	71

⁽¹⁾ U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

The unrealized holding gains, net of losses, recorded as a component of net investment gains and losses for the three-month period ended March 31, 2020, that relate to equity securities still held at the March 31, 2020 reporting date, were $149 million.

Unrealized Investment Gains and Losses

Effect on Shareholders’ Equity

The net effect on shareholders’ equity of unrealized gains and losses from fixed maturity securities was as follows:

(In millions)	March 31, 2020				December 31, 2019
Unrealized gains (losses) on securities available for sale		$	8,470			$	11,891
Deferred income taxes		(2,427		)		(3,343		)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities		$	6,043			$	8,548

Gross Unrealized Loss Aging

The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the periods ended March 31, 2020 and available-for-sale and held-to-maturity investments for prior periods that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	March 31, 2020
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available for sale:
Japan government and agencies:
Yen-denominated		$	725		$	14		$	725		$	14		$	0		$	0
Municipalities:
Yen-denominated		56			1			42			0			14			1
Public utilities:
U.S. dollar-denominated		825			50			701			38			124			12
Yen-denominated		880			93			880			93			0			0
Sovereign and supranational:
U.S. dollar-denominated		18			1			18			1			0			0
Yen-denominated		701			27			701			27			0			0
Banks/financial institutions:
U.S. dollar-denominated		355			21			321			13			34			8
Yen-denominated		3,410			557			2,626			406			784			151
Other corporate:
U.S. dollar-denominated		8,244			988			5,427			527			2,817			461
Yen-denominated		2,829			389			2,677			357			152			32
Total		$	18,043		$	2,141		$	14,118		$	1,476		$	3,925		$	665

	December 31, 2019
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities:
Municipalities:
Yen-denominated		$	80		$	3		$	80		$	3		$	0		$	0
Public utilities:
U.S. dollar-denominated		306			10			69			2			237			8
Banks/financial institutions:
U.S. dollar-denominated		79			4			18			0			61			4
Yen-denominated		1,828			89			1,828			89			0			0
Other corporate:
U.S. dollar-denominated		4,261			248			792			53			3,469			195
Yen-denominated		636			31			636			31			0			0
Total		$	7,190		$	385		$	3,423		$	178		$	3,767		$	207

Analysis of Securities in Unrealized Loss Positions

The unrealized losses on the Company's fixed maturity securities investments have been primarily related to general market changes in interest rates, foreign exchange rates, and/or the levels of credit spreads rather than specific concerns with the issuer's ability to pay interest and repay principal.

For any significant declines in fair value of its fixed maturity securities, the Company performs a more focused review of the related issuers' credit profile. For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security it owns including seniority in the issuer's capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers' continued ability to service the Company's investment through payment of interest and principal.

Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company, and the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

However, the Company has identified certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance has been calculated. As of March 31, 2020, the Company recorded an allowance of $63 million. Refer to the Credit Losses section below for additional information.

Commercial Mortgage and Other Loans

The Company classifies its transitional real estate loans (TREs), commercial mortgage loans (CMLs) and middle market loans (MMLs) as held-for-investment and includes them in the commercial mortgage and other loans line on the consolidated balance sheets. The Company carries them on the balance sheet at amortized cost less an estimated allowance for credit losses.

The following table reflects the composition of the carrying value for commercial mortgage and other loans by property type as of the periods presented.

(In millions)	March 31, 2020					December 31, 2019
	Amortized Cost			% of Total		Amortized Cost				% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office	$	1,954		18.0	%	$	1,800			18.7	%
Retail	165			1.5		131				1.4
Apartments/Multi-Family	2,065			19.0		2,085				21.7
Industrial	175			1.6		256				2.7
Hospitality	1,024			9.4		1,036				10.8
Other	260			2.4		164				1.7
Total transitional real estate loans	5,643			51.9		5,472				57.0
Commercial mortgage loans:
Office	408			3.8		410				4.3
Retail	346			3.1		348				3.5
Apartments/Multi-Family	589			5.4		569				5.9
Industrial	397			3.7		383				4.0
Total commercial mortgage loans	1,740			16.0		1,710				17.7
Middle market loans	3,492			32.1		2,432				25.3
Total commercial mortgage and other loans	$	10,875		100.0	%	$	9,614			100.0	%
Allowance for credit losses	(125		)			(45		)	(1)
Total net commercial mortgage and other loans	$	10,750				$	9,569

⁽¹⁾ U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

Commercial mortgage and transitional real estate loans were secured by properties entirely within the U.S. (with the largest concentrations in California (20%), Texas (14%) and Florida (10%)). Middle market loans are issued only to companies domiciled within the U.S. and Canada.

Transitional Real Estate Loans

Transitional real estate loans are commercial mortgage loans that are typically relatively short-term floating rate instruments secured by a first lien on the property. These loans provide funding for properties undergoing a change in their physical characteristics and/or economic profile and do not typically require any principal repayment prior to the maturity date. This loan portfolio is generally considered to be investment grade. As of March 31, 2020, the Company had $838 million in outstanding commitments to fund transitional real estate loans. These commitments are contingent on the final underwriting and due diligence to be performed.

Commercial Mortgage Loans

Commercial mortgage loans are typically fixed rate loans on commercial real estate with partial repayment of principal over the life of the loan with the remaining outstanding principal being repaid upon maturity. This loan portfolio is generally considered higher quality investment grade loans. As of March 31, 2020, the Company had $10 million of outstanding commitments to fund commercial mortgage loans. These commitments are contingent on the final underwriting and due diligence to be performed.

Middle Market Loans

Middle market loans are typically first lien senior secured cash flow loans to small to mid-size companies for working capital, refinancing, acquisition, and recapitalization. These loans are generally considered to be below investment grade. The carrying value for middle market loans included $99 million for a short term credit facility that is reflected in other liabilities on the consolidated balance sheets, as of December 31, 2019. The carrying value for middle market loans did not include any amount for a short term credit facility as of March 31, 2020.

As of March 31, 2020, the Company had commitments of approximately $2.6 billion of which $2.2 billion was a result of a new agreement with an external manager during the first quarter of 2020 to fund future middle market loans. These commitments are contingent upon the availability of middle market loans that meet the Company's underwriting criteria.

Credit Losses

Effective January 1, 2020, the Company adopted ASC 326: Financial Instruments - Credit Losses. The newly adopted accounting standard requires the Company to estimate an expected lifetime credit loss on financial assets including short-term receivables, held-to-maturity fixed maturity securities, loan receivables, loan commitments and reinsurance recoverables. For the Company’s available-for-sale fixed maturity securities, the newly adopted guidance requires an entity to evaluate estimated credit losses only when the fair value of the available-for-sale fixed maturity security is below its amortized cost basis. Credit loss changes are recorded as a component of net investment gains and losses for the Company’s held-to-maturity and available-for-sale securities, loan receivables, loan commitments and reinsurance recoverables. The Company’s off-balance sheet credit exposure is primarily attributable to loan commitments that are not unconditionally cancelable. The Company considers the contractual period of exposure to credit risk, the likelihood that funding will occur, the risk of loss, and the current conditions and expectations of future economic conditions to develop the estimate of expected credit losses. The Company records the estimate of expected credit losses for certain loan commitments within other liabilities in the consolidated balance sheet.

Write-offs and partial write-offs are recorded as a reduction to the amortized cost of the loan or fixed maturity security balance and a reduction to the credit allowance.

The Company’s held-to-maturity fixed maturity portfolio includes Japan Government and Agency securities of $22 billion amortized cost as of March 31, 2020 that meet the requirements for zero-credit-loss expectation and therefore these asset classes have been excluded from the current expected credit loss measurement.

The Company has elected not to measure an allowance on accrued interest income for all asset types, because the uncollectible accrued interest receivable is written off in a timely manner. The Company writes off accrued interest when it is more than ninety days past due. The Company has elected to write off accrued interest by reversing interest income, which is a component of net investment income, in the consolidated statement of earnings.

The Company designates nonaccrual status for a nonperforming debt security or a loan that is not generating its stated interest rate because of nonpayment of periodic interest by the borrower. The Company applies the cash basis method to record any payments received on non-accrual assets. The Company resumes the accrual of interest on fixed maturity securities and loans that are currently making contractual payments or for those that are not current where the borrower has paid timely (less than 30 days outstanding).

Credit Quality Indicators

For TREs, the Company’s key credit quality indicator is loan-to-value (LTV). Given that TRE loans involve properties undergoing renovation or construction, loan-to-value provides the most insight into the credit risk of the loan. The Company monitors the performance of the loans periodically, but not less frequently than quarterly.

For CMLs, the Company’s key credit quality indicators include LTV and debt service coverage ratios (DSCR). LTV is calculated by dividing the current outstanding loan balance by the most recent estimated property value. DSCR is the most recently available operating income of the underlying property compared to the required debt service of the loan.

For MMLs and held-to-maturity fixed maturity securities, the Company’s key credit quality indicator is credit ratings. The Company’s held-to-maturity portfolio is composed of investment grade securities that are senior unsecured instruments, while its MMLs generally have below-investment-grade ratings but are typically senior secured instruments. The Company monitors the credit ratings periodically, but not less frequently than quarterly.

For the Company’s reinsurance recoverable balance, the key credit quality indicator is the credit rating of the Company’s reinsurance counterparty. The Company uses external credit ratings focused on the reinsurer’s financial strength and credit worthiness. The Company's counterparties are rated A+. The Company monitors the credit ratings periodically, but not less frequently than quarterly.

The following tables present as of March 31, 2020 the amortized cost basis of TREs, CMLs and MMLs by year of origination and credit quality indicator.

Transitional Real Estate Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Total
Loan-to-Value Ratio:
0%-59.99%	$	33	$	471	$	409	$	155	$	20	$	57	$	1,145
60%-69.99%	190		777		834		436		0		0		2,237
70%-79.99%	81		858		997		250		14		0		2,200
80% or greater	25		36		0		0		0		0		61
Total	$	329	$	2,142	$	2,240	$	841	$	34	$	57	$	5,643

Commercial Mortgage Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Total		Weighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%	$	12	$	474	$	156	$	69	$	683	$	0	$	1,394	2.43
60%-69.99%	27		190		16		0		90		0		323		1.74
70%-79.99%	0		0		0		0		23		0		23		1.32
Total	39		664		172		69		796		0		1,740		2.29
Weighted Average DSCR	1.84		2.33		2.16		2.37		2.30		0		2.29

Middle Market Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
Credit Ratings:
BBB	$	9	$	57	$	52	$	22	$	12	$	0	$	15	$	167
BB	86		277		187		140		56		20		84		850
B	210		827		466		309		98		58		338		2,306
CCC	0		58		10		34		25		4		15		146
CC	0		1		0		18		0		2		2		23
Total	$	305	$	1,220	$	715	$	523	$	191	$	84	$	454	$	3,492

Allowance for Credit Losses

The Company calculates its allowance for credit losses for held-to-maturity fixed maturity securities, loan receivables, loan commitments and reinsurance recoverable by grouping assets with similar risk characteristics when there is not a specific expectation of a loss for an individual asset. For held-to-maturity fixed maturity securities, MMLs, and MML commitments, the Company groups assets by credit ratings, industry, and country. The Company groups CMLs and TREs and respective loan commitments by property type, property location and the property’s loan-to-value and debt service coverage ratios. The credit allowance for the reinsurance recoverable balance is estimated using a probability-of-default (PD) / loss-given-default (LGD) method.

The Company’s methodology for estimating credit losses for available-for-sale fixed maturity securities utilizes the discounted cash flow model, based on past events, current market conditions and future economic conditions, as well as industry analysis and credit ratings of the fixed maturity securities. In addition, the Company evaluates the specific issuer’s probability of default and expected recovery of its position in the event of default based on the underlying financial condition and assets of the borrower as well as seniority and/or security of other debt holders in the issuer when developing management’s best estimate of expected cash flows.

The credit allowance for held-to-maturity fixed maturity securities and loan receivables is estimated using a PD / LGD method, discounted for the time value of money. For held-to-maturity fixed maturity securities, available-for-sale fixed maturity securities and loan receivables, the Company includes the change in present value due to the passage of time in the change in the allowance for credit losses. The Company’s methodology for estimating credit losses utilizes the contractual maturity date of the financial asset, adjusted when necessary to reflect the expected timing of repayment (such as prepayment options, renewal options, call options, or extension options). The Company applies reasonable and supportable forecasts of macroeconomic variables that impact the determination of PD/LGD over a two-year period for held-to-maturity fixed maturity securities and MMLs. The Company reverts to historical loss information over one year, following the two-year forecast period. For the CML and TRE portfolio, the Company applies reasonable and supportable forecasts of macroeconomic variables as well as national and local real-estate market factors to estimate future credit losses where the market factors revert back to historical levels over time with the period being dependent on current market conditions, projected market conditions and difference in the current and historical market levels for each factor. The Company continuously monitors the estimation methodology, due to changes in portfolio composition, changes in underwriting practices and significant events or conditions and makes adjustments as necessary.

As of March 31, 2020, and December 31, 2019, the Company had no loans that were past due in regards to principal and/or interest payments. Additionally, the number of loans the Company held on nonaccrual status was immaterial as of March 31, 2020, and December 31, 2019. The Company had no troubled debt restructurings during the three months ended March 31, 2020 and 2019.

The following table presents the roll forward of the allowance for credit losses by portfolio segment during the three-month period ended March 31, 2020.

(in millions)	Transitional Real Estate Loans			Commercial Mortgage Loans			Middle Market Loans			Held to Maturity Securities			Available for Sale Securities			Reinsurance Recoverables
Balance at December 31, 2019 (1)	$	(22	)	$	(3	)	$	(20	)	$	0		$	0		$	0
Transition impact to retained earnings	(2		)	(8		)	(33		)	(10		)	0			(11		)
(Addition to) release of allowance for credit losses	(3		)	0			(34		)	1			(63		)	0
Balance at March 31, 2020	$	(27	)	$	(11	)	$	(87	)	$	(9	)	$	(63	)	$	(11	)

⁽¹⁾ U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

For assets that are subject to the credit loss measurement, the change in credit loss allowance will be significantly impacted by purchases and sales in those assets during the period as well as entering into new non-cancelable loan commitments. During the first quarter of 2020, the Company entered into a loan commitment with an external manager that met the requirements to recognize a credit loss on over $2.2 billion of loan commitments over the next few years. The estimate of credit losses for loan commitments as of March 31, 2020 was $60 million.

Other Investments

The table below reflects the composition of the carrying value for other investments as of the periods presented.

(In millions)	March 31, 2020			December 31, 2019
Other investments:
Policy loans		$	253		$	250
Short-term investments (1)		892			628
Limited partnerships		669			569
Other		29			30
Total other investments		$	1,843		$	1,477

⁽¹⁾ Includes securities lending collateral

As of March 31, 2020, the Company had $1.4 billion in outstanding commitments to fund alternative investments in limited partnerships.

Variable Interest Entities (VIEs)

As a condition of its involvement or investment in a VIE, the Company enters into certain protective rights and covenants that preclude changes in the structure of the VIE that would alter the creditworthiness of the Company's investment or its beneficial interest in the VIE.

For those VIEs other than certain unit trust structures, the Company's involvement is passive in nature. The Company has not, nor has it been, required to purchase any securities issued in the future by these VIEs.

The Company's ownership interest in VIEs is limited to holding the obligations issued by them. The Company has no direct or contingent obligations to fund the limited activities of these VIEs, nor does it have any direct or indirect financial guarantees related to the limited activities of these VIEs. The Company has not provided any assistance or any other type of financing support to any of the VIEs it invests in, nor does it have any intention to do so in the future. For those VIEs in which the Company holds debt obligations, the weighted-average lives of the Company's notes are very similar to the underlying collateral held by these VIEs where applicable.

The Company's risk of loss related to its interests in any of its VIEs is limited to the carrying value of the related investments held in the VIE.

VIEs - Consolidated

The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported.

Investments in Consolidated Variable Interest Entities

	March 31, 2020						December 31, 2019
(In millions)	Amortized Cost (1)			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	3,208		$	3,786		$	3,308		$	4,312
Commercial mortgage and other loans		9,051			8,737			7,956			8,015
Other investments (2)		550			550			494			494
Other assets (3)		89			89			169			169
Total assets of consolidated VIEs		$	12,898		$	13,162		$	11,927		$	12,990
Liabilities:
Other liabilities (3)		$	235		$	235		$	126		$	126
Total liabilities of consolidated VIEs		$	235		$	235		$	126		$	126

⁽¹⁾ Net of allowance for credit losses

⁽²⁾ Consists entirely of alternative investments in limited partnerships

⁽³⁾ Consists entirely of derivatives

The Company is substantively the only investor in the consolidated VIEs listed in the table above. As the sole investor in these VIEs, the Company has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and is therefore considered to be the primary beneficiary of the VIEs that it consolidates. The Company also participates in substantially all of the variability created by these VIEs. The activities of these VIEs are limited to holding invested assets and foreign currency swaps, as appropriate, and utilizing the cash flows from these securities to service its investment. Neither the Company nor any of its creditors are able to obtain the underlying collateral of the VIEs unless there is an event of default or other specified event. For those VIEs that contain a swap, the Company is not a direct counterparty to the swap contracts and has no control over them. The Company's loss exposure to these VIEs is limited to its original investment. The Company's consolidated VIEs do not rely on outside or ongoing sources of funding to support their activities beyond the underlying collateral and swap contracts, if applicable. With the exception of its investment in unit trust structures, the underlying collateral assets and funding of the Company's consolidated VIEs are generally static in nature.

Investments in Unit Trust Structures

The Company also utilizes unit trust structures in its Aflac Japan segment to invest in various asset classes. As the sole investor of these VIEs, the Company is required to consolidate these trusts under U.S. GAAP.

VIEs - Not Consolidated

The table below reflects the amortized cost, fair value and balance sheet caption in which the Company's investment in VIEs not consolidated are reported.

Investments in Variable Interest Entities Not Consolidated

	March 31, 2020						December 31, 2019
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	5,999		$	6,397		$	4,129		$	4,884
Fixed maturity securities, held to maturity		0			0			1,848			2,236
Other investments (1)		119			119			75			74
Total investments in VIEs not consolidated		$	6,118		$	6,516		$	6,052		$	7,194

⁽¹⁾ Consists entirely of alternative investments in limited partnerships

The Company holds alternative investments in limited partnerships that have been determined to be VIEs. These partnerships invest in private equity and structured investments. The Company’s maximum exposure to loss on these investments is limited to the amount of its investment. The Company is not the primary beneficiary of these VIEs and is therefore not required to consolidate them. The Company classifies these investments as Other investments in the consolidated balance sheets.

Certain investments in VIEs that the Company is not required to consolidate are investments that are in the form of debt obligations from the VIEs that are irrevocably and unconditionally guaranteed by their corporate parents or sponsors. These VIEs are the primary financing vehicles used by their corporate sponsors to raise financing in the capital markets. The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them. The Company does not have the power to direct the activities that most significantly impact the entity's economic performance, nor does it have the obligation to absorb losses of the entity or the right to receive benefits from the entity. As such, the Company is not the primary beneficiary of these VIEs and is therefore not required to consolidate them.

Securities Lending and Pledged Securities

The Company lends fixed maturity and public equity securities to financial institutions in short-term security-lending transactions. These short-term security-lending arrangements increase investment income with minimal risk. The Company receives cash or other securities as collateral for such loans. The Company's security lending policy requires that the fair value of the securities received as collateral be 102% or more of the fair value of the loaned securities and that unrestricted cash received as collateral be 100% or more of the fair value of the loaned securities. The securities loaned continue to be carried as investment assets on the Company's balance sheet during the terms of the loans and are not reported as sales. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral. For loans where the Company receives as collateral securities that the Company is not permitted to sell or repledge, the collateral is not reflected on the consolidated financial statements.

Details of collateral by loaned security type and remaining maturity of the agreements were as follows:

Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
	March 31, 2020						December 31, 2019
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total		Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Fixed maturity securities:
Japan government and agencies	$	0	$	2,318	$	2,318	$	0	$	1,013	$	1,013
Public utilities	35		0		35		35		0		35
Sovereign and supranational	1		0		1		2		0		2
Banks/financial institutions	68		0		68		48		0		48
Other corporate	547		0		547		778		0		778
Total borrowings	$	651	$	2,318	$	2,969	$	863	$	1,013	$	1,876
Gross amount of recognized liabilities for securities lending transactions					$	2,969					$	1,876

⁽¹⁾ The related loaned security, under the Company's U.S. securities lending program, can be returned to the Company at the transferee's discretion; therefore, they are classified as Overnight and Continuous.

In connection with securities lending, in addition to cash collateral received, the Company received from counterparties securities collateral of $5,188 million and $4,759 million at March 31, 2020 and December 31, 2019, respectively, which may not be sold or re-pledged, unless the counterparty is in default. Such securities collateral is not reflected on the consolidated financial statements.

The Company did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of March 31, 2020, and December 31, 2019, respectively.

Certain fixed maturity securities can be pledged as collateral as part of derivative transactions, or pledged to support state deposit requirements or certain investment programs. For additional information regarding pledged securities related to derivative transactions, see Note 4.

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SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

As of March 31, 2020, the Company has outstanding share-based awards under the Aflac Incorporated Long-Term Incentive Plan (the Plan). Share-based awards are designed to reward employees for their long-term contributions to the Company and provide incentives for them to remain with the Company. The number and frequency of share-based awards are based on competitive practices, operating results of the Company, government regulations, and other factors.

The Plan, as amended on February 14, 2017, allows for a maximum number of shares issuable over its term of 75 million shares including 38 million shares that may be awarded in respect of awards other than options or stock appreciation rights. If any awards granted under the Plan are forfeited or are terminated before being exercised or settled for any reason other than tax forfeiture, then the shares underlying the awards will again be available under the Plan.

The Plan allows awards to Company employees for incentive stock options (ISOs), non-qualifying stock options (NQSOs), restricted stock, restricted stock units, and stock appreciation rights. Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights. As of March 31, 2020, approximately 38.0 million shares were available for future grants under this plan. The ISOs and NQSOs have a term of 10 years, and the share-based awards generally vest upon time-based conditions or time and performance-based conditions. Time-based vesting generally occurs after three years. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. As of March 31, 2020, the only performance-based awards issued and outstanding were restricted stock awards and units.

Stock options and stock appreciation rights granted under the amended Plan have an exercise price of at least the fair market value of the underlying stock on the grant date and have an expiration date no later than 10 years from the grant date. Time-based restricted stock awards, restricted stock units and stock options granted after January 1, 2017 generally vest on a ratable basis over three years, and awards granted prior to the amendment vest on a three years cliff basis. The Compensation Committee of the Board of Directors has the discretion to determine vesting schedules.

Share-based awards granted to U.S.-based grantees are settled with authorized but unissued Company stock, while those issued to Japan-based grantees are settled with treasury shares.

The following table provides information on stock options outstanding and exercisable at March 31, 2020.

	Stock Option Shares (in thousands)		Weighted-Average Remaining Term (in years)		Aggregate Intrinsic Value (in millions)			Weighted-Average Exercise Price Per Share
Outstanding		3,354		4.4		$	16		$	29.98
Exercisable		3,353		4.4		16			29.97

The Company received cash from the exercise of stock options in the amount of $6 million during the first three months of 2020, compared with $17 million in the first three months of 2019. The tax benefit realized as a result of stock option exercises and restricted stock releases was $17 million in the first three months of 2020, compared with $22 million in the first three months of 2019.

As of March 31, 2020, total compensation cost not yet recognized in the Company's financial statements related to restricted stock awards was $72 million, of which $35 million (1.7 million shares) was related to restricted stock awards with a performance-based vesting condition. The Company expects to recognize these amounts over a weighted-average period of approximately 2.5 years. There are no other contractual terms covering restricted stock awards once vested.

The following table summarizes restricted stock activity during the three-month period ended March 31, 2020.

(In thousands of shares)	Shares		Weighted-Average Grant-Date Fair Value Per Share
Restricted stock at December 31, 2019	2,573			$	44.66
Granted in 2020	1,376			46.66
Canceled in 2020	(25	)		46.52
Vested in 2020	(1,358	)		38.48
Restricted stock at March 31, 2020	2,566			$	48.97

In February 2020, the Company granted 409 thousand performance-based stock awards, which are contingent on the achievement of the Company's financial performance metrics and its market-based conditions. On the date of grant, the Company estimated the fair value of restricted stock awards with market-based conditions using a Monte Carlo simulation model. The model discounts the value of the stock at the assumed vesting date based on the risk-free interest rate. Based on estimates of actual performance versus the vesting thresholds, the calculated fair value percentage pay-out estimate will be updated each quarter.

The Company uses third-party analyses to assist in developing the assumptions used in, as well as calibrating, a Monte Carlo simulation model. The Company is responsible for determining the assumptions used in estimating the fair value of its share-based payment awards.

For additional information on the Company's long-term share-based compensation plans and the types of share-based awards, see Note 12 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report.

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SHARE-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Options Outstanding and Exercisable

The following table provides information on stock options outstanding and exercisable at March 31, 2020.

	Stock Option Shares (in thousands)		Weighted-Average Remaining Term (in years)		Aggregate Intrinsic Value (in millions)			Weighted-Average Exercise Price Per Share
Outstanding		3,354		4.4		$	16		$	29.98
Exercisable		3,353		4.4		16			29.97

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes restricted stock activity during the three-month period ended March 31, 2020.

(In thousands of shares)	Shares		Weighted-Average Grant-Date Fair Value Per Share
Restricted stock at December 31, 2019	2,573			$	44.66
Granted in 2020	1,376			46.66
Canceled in 2020	(25	)		46.52
Vested in 2020	(1,358	)		38.48
Restricted stock at March 31, 2020	2,566			$	48.97

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BUSINESS SEGMENT INFORMATION - Operations by Segment - Pretax Earnings (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]
Pretax adjusted earnings	[1]	$ 1,183	$ 1,139
Net investment gains (losses)	[2],[3],[4],[5]	(448)	103
Other income (loss)		(15)	0
Earnings before income taxes		720	1,242
Income taxes applicable to pretax adjusted earnings		301	291
Effect of foreign currency translation on after tax adjusted earnings		9	(8)
Interest expense on debt		33	33
Aflac Japan
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]
Pretax adjusted earnings	[3],[5]	855	834
Hedge costs		55	62
Net interest cash flows from derivatives		(6)	(7)
Aflac U.S.
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]
Pretax adjusted earnings		326	323
Corporate and other
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]
Pretax adjusted earnings	[2],[4]	2	(18)
Hedge income		29	20
Gain (loss) on change in fair value of derivative, interest rate component		$ 16	$ 17

[1] Includes $33 for the three-month periods ended March 31, 2020, and 2019, respectively, of interest expense on debt.

[2] A gain of $16 and $17 for the three-month periods ended March 31, 2020, and 2019, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.

[3] Amortized hedge costs of $55 and $62 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

[4] Amortized hedge income of $29 and $20 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.

[5] Net interest cash flows from derivatives associated with certain investment strategies of $(6) and $(7) for the three-month periods ended March 31, 2020 and 2019, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis

The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis.

	March 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	35,469		$	1,509		$	0		$	36,978
Municipalities		0			2,440			0			2,440
Mortgage- and asset-backed securities		0			309			188			497
Public utilities		0			8,894			298			9,192
Sovereign and supranational		0			1,609			0			1,609
Banks/financial institutions		0			10,355			23			10,378
Other corporate		0			34,949			245			35,194
Total fixed maturity securities		35,469			60,065			754			96,288
Equity securities		509			69			82			660
Other investments		892			0			0			892
Cash and cash equivalents		4,148			0			0			4,148
Other assets:
Foreign currency swaps		0			66			89			155
Foreign currency forwards		0			269			0			269
Foreign currency options		0			27			0			27
Interest rate swaps		0			21			0			21
Total other assets		0			383			89			472
Total assets		$	41,018		$	60,517		$	925		$	102,460
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	38		$	235		$	273
Foreign currency forwards		0			427			0			427
Foreign currency options		0			23			0			23
Total liabilities		$	0		$	488		$	235		$	723

	December 31, 2019
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	34,878		$	1,522		$	0		$	36,400
Municipalities		0			1,847			0			1,847
Mortgage- and asset-backed securities		0			232			178			410
Public utilities		0			6,556			224			6,780
Sovereign and supranational		0			1,042			0			1,042
Banks/financial institutions		0			10,264			23			10,287
Other corporate		0			34,234			262			34,496
Total fixed maturity securities		34,878			55,697			687			91,262
Equity securities		642			80			80			802
Other investments		628			0			0			628
Cash and cash equivalents		4,896			0			0			4,896
Other assets:
Foreign currency swaps		0			72			169			241
Foreign currency forwards		0			238			0			238
Interest rate swaps		0			3			0			3
Total other assets		0			313			169			482
Total assets		$	41,044		$	56,090		$	936		$	98,070
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	78		$	126		$	204
Foreign currency forwards		0			377			0			377
Foreign currency options		0			5			0			5
Total liabilities		$	0		$	460		$	126		$	586

Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost

The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value.

	March 31, 2020
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	22,384		$	27,842		$	352		$	0		$	28,194
Municipalities		362			0			484			0			484
Public utilities		45			0			59			0			59
Sovereign and supranational		464			0			578			0			578
Other corporate		23			0			32			0			32
Commercial mortgage and other loans		10,750			0			0			10,390			10,390
Other investments (1)		29			0			29			0			29
Total assets		$	34,057		$	27,842		$	1,534		$	10,390		$	39,766
Liabilities:
Other policyholders’ funds		$	7,422		$	0		$	0		$	7,338		$	7,338
Notes payable (excluding leases)		6,597			0			6,607			274			6,881
Total liabilities		$	14,019		$	0		$	6,607		$	7,612		$	14,219

⁽¹⁾ Excludes policy loans of $253 and equity method investments of $669, at carrying value

	December 31, 2019
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	22,241		$	27,937		$	354		$	0		$	28,291
Municipalities		821			0			1,083			0			1,083
Mortgage and asset-backed securities		16			0			7			10			17
Public utilities		2,535			0			2,954			0			2,954
Sovereign and supranational		1,123			0			1,320			0			1,320
Banks/financial institutions		916			0			1,018			0			1,018
Other corporate		2,433			0			2,911			0			2,911
Commercial mortgage and other loans		9,569			0			0			9,648			9,648
Other investments (1)		30			0			30			0			30
Total assets		$	39,684		$	27,937		$	9,677		$	9,658		$	47,272
Liabilities:
Other policyholders’ funds		$	7,317		$	0		$	0		$	7,234		$	7,234
Notes payable (excluding leases)		6,408			0			6,663			272			6,935
Total liabilities		$	13,725		$	0		$	6,663		$	7,506		$	14,169

⁽¹⁾ Excludes policy loans of $250 and equity method investments of $569, at carrying value

Fair Value Assets Securities Carried At Fair Value Primary Pricing Sources

The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities.

	March 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	35,469		$	1,509		$	0		$	36,978
Total government and agencies		35,469			1,509			0			36,978
Municipalities:
Third party pricing vendor		0			2,440			0			2,440
Total municipalities		0			2,440			0			2,440
Mortgage- and asset-backed securities:
Third party pricing vendor		0			309			0			309
Broker/other		0			0			188			188
Total mortgage- and asset-backed securities		0			309			188			497
Public utilities:
Third party pricing vendor		0			8,894			0			8,894
Broker/other		0			0			298			298
Total public utilities		0			8,894			298			9,192
Sovereign and supranational:
Third party pricing vendor		0			1,609			0			1,609
Total sovereign and supranational		0			1,609			0			1,609
Banks/financial institutions:
Third party pricing vendor		0			10,355			0			10,355
Broker/other		0			0			23			23
Total banks/financial institutions		0			10,355			23			10,378
Other corporate:
Third party pricing vendor		0			34,949			0			34,949
Broker/other		0			0			245			245
Total other corporate		0			34,949			245			35,194
Total securities available for sale		$	35,469		$	60,065		$	754		$	96,288
Equity securities, carried at fair value:
Third party pricing vendor		$	509		$	69		$	0		$	578
Broker/other		0			0			82			82
Total equity securities		$	509		$	69		$	82		$	660

	December 31, 2019
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	34,878		$	1,522		$	0		$	36,400
Total government and agencies		34,878			1,522			0			36,400
Municipalities:
Third party pricing vendor		0			1,847			0			1,847
Total municipalities		0			1,847			0			1,847
Mortgage- and asset-backed securities:
Third party pricing vendor		0			232			0			232
Broker/other		0			0			178			178
Total mortgage- and asset-backed securities		0			232			178			410
Public utilities:
Third party pricing vendor		0			6,556			0			6,556
Broker/other		0			0			224			224
Total public utilities		0			6,556			224			6,780
Sovereign and supranational:
Third party pricing vendor		0			1,042			0			1,042
Total sovereign and supranational		0			1,042			0			1,042
Banks/financial institutions:
Third party pricing vendor		0			10,264			0			10,264
Broker/other		0			0			23			23
Total banks/financial institutions		0			10,264			23			10,287
Other corporate:
Third party pricing vendor		0			34,234			0			34,234
Broker/other		0			0			262			262
Total other corporate		0			34,234			262			34,496
Total securities available for sale		$	34,878		$	55,697		$	687		$	91,262
Equity securities, carried at fair value:
Third party pricing vendor		$	642		$	80		$	0		$	722
Broker/other		0			0			80			80
Total equity securities		$	642		$	80		$	80		$	802

Fair Value Assets Held-To-Maturity Securities Primary Pricing Sources

	March 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	27,842		$	352		$	0		$	28,194
Total government and agencies		27,842			352			0			28,194
Municipalities:
Third party pricing vendor		0			484			0			484
Total municipalities		0			484			0			484
Public utilities:
Third party pricing vendor		0			59			0			59
Total public utilities		0			59			0			59
Sovereign and supranational:
Third party pricing vendor		0			578			0			578
Total sovereign and supranational		0			578			0			578
Other corporate:
Third party pricing vendor		0			32			0			32
Total other corporate		0			32			0			32
Total securities held to maturity		$	27,842		$	1,505		$	0		$	29,347

	December 31, 2019
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	27,937		$	354		$	0		$	28,291
Total government and agencies		27,937			354			0			28,291
Municipalities:
Third party pricing vendor		0			1,083			0			1,083
Total municipalities		0			1,083			0			1,083
Mortgage- and asset-backed securities:
Third party pricing vendor		0			7			0			7
Broker/other		0			0			10			10
Total mortgage- and asset-backed securities		0			7			10			17
Public utilities:
Third party pricing vendor		0			2,954			0			2,954
Total public utilities		0			2,954			0			2,954
Sovereign and supranational:
Third party pricing vendor		0			1,320			0			1,320
Total sovereign and supranational		0			1,320			0			1,320
Banks/financial institutions:
Third party pricing vendor		0			1,018			0			1,018
Total banks/financial institutions		0			1,018			0			1,018
Other corporate:
Third party pricing vendor		0			2,911			0			2,911
Total other corporate		0			2,911			0			2,911
Total securities held to maturity		$	27,937		$	9,647		$	10		$	37,594

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3.

Three Months Ended March 31, 2020
	Fixed Maturity Securities											Equity Securities		Derivatives (1)
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities			Banks/ Financial Institutions		Other Corporate					Foreign Currency Swaps			Credit Default Swaps		Total
Balance, beginning of period	$	178		$	224		$	23	$	262		$	80	$	43		$	0	$	810
Net investment gains (losses) included in earnings	0			0			0		0			0		(185		)	0		(185		)
Unrealized gains (losses) included in other comprehensive income (loss)	1			(8		)	0		(17		)	0		(4		)	0		(28		)
Purchases, issuances, sales and settlements:
Purchases	0			83			0		0			2		0			0		85
Issuances	0			0			0		0			0		0			0		0
Sales	0			0			0		0			0		0			0		0
Settlements	0			(1		)	0		0			0		0			0		(1		)
Transfers into Level 3	9		(2)	0			0		0			0		0			0		9
Transfers out of Level 3	0			0			0		0			0		0			0		0
Balance, end of period	$	188		$	298		$	23	$	245		$	82	$	(146	)	$	0	$	690
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0		$	0		$	0	$	0		$	0	$	(185	)	$	0	$	(185	)

⁽¹⁾ Derivative assets and liabilities are presented net

⁽²⁾ Transfer due to reclassification of level 3 securities from HTM to AFS

Three Months Ended March 31, 2019
	Fixed Maturity Securities												Equity Securities		Derivatives (1)
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities				Banks/ Financial Institutions		Other Corporate						Foreign Currency Swaps			Credit Default Swaps		Total
Balance, beginning of period	$	177	$	109			$	23	$	213			$	46	$	80		$	0	$	648
Net investment gains (losses) included    in earnings	0		0				0		0				0		(8		)	0		(8		)
Unrealized gains (losses) included in other    comprehensive income (loss)	1		1				0		1				0		(2		)	0		1
Purchases, issuances, sales and settlements:
Purchases	0		0				0		63				0		0			0		63
Issuances	0		0				0		0				0		0			0		0
Sales	0		0				0		(2		)		0		0			0		(2		)
Settlements	0		0				0		0				0		0			0		0
Transfers into Level 3	0		0				0		25			(2)	0		0			0		25
Transfers out of Level 3	0		(25		)	(2)	0		(16		)	(3)	0		0			0		(41		)
Balance, end of period	$	178	$	85			$	23	$	284			$	46	$	70		$	0	$	686
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	0			$	0	$	0			$	0	$	(8	)	$	0	$	(8	)

⁽¹⁾ Derivative assets and liabilities are presented net

⁽²⁾ Transfer due to sector classification change

⁽³⁾ Transfer due to availability of observable market inputs

Fair Value Measurement Inputs and Valuation Techniques

Level 3 Significant Unobservable Input Sensitivity

The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments and derivatives carried at fair value. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

March 31, 2020
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	188	Consensus pricing	Offered quotes	N/A	(a)
Public utilities		298		Discounted cash flow	Credit spreads	N/A	(a)
Banks/financial institutions		23		Consensus pricing	Offered quotes	N/A	(a)
Other corporate		245		Discounted cash flow	Credit spreads	N/A	(a)
Equity securities		82		Net asset value	Offered quotes	N/A	(a)
Other assets:
Foreign currency swaps		15		Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
					CDS spreads	31 - 173 bps
		74		Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
Total assets		$	925
Liabilities:
Other liabilities:
Foreign currency swaps		$	224	Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
					CDS spreads	31 - 173 bps
		11		Discounted cash flow	Interest rates (USD)	.72% - .88%	(b)
					Interest rates (JPY)	.02% - .20%	(c)
Total liabilities		$	235

(a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

(b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps

(c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps

December 31, 2019
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	178	Consensus pricing	Offered quotes	N/A	(a)
Public utilities		224		Discounted cash flow	Credit spreads	N/A	(a)
Banks/financial institutions		23		Consensus pricing	Offered quotes	N/A	(a)
Other corporate		262		Discounted cash flow	Credit spreads	N/A	(a)
Equity securities		80		Net asset value	Offered quotes	N/A	(a)
Other assets:
Foreign currency swaps		106		Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
					CDS spreads	10 - 100 bps
		63		Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
Total assets		$	936
Liabilities:
Other liabilities:
Foreign currency swaps		$	118	Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
					CDS spreads	13 - 159 bps
		8		Discounted cash flow	Interest rates (USD)	1.89% - 2.09%	(b)
					Interest rates (JPY)	.12% - .43%	(c)
Total liabilities		$	126

(a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

(b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps

(c) Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Basis of Presentation

Description of Business

Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States (U.S.) and Japan. The Company’s operations consist of two reportable business segments: Aflac Japan and Aflac U.S. The Parent Company's primary insurance subsidiaries are Aflac Life Insurance Japan Ltd. (Aflac Japan) and American Family Life Assurance Company of Columbus (Aflac); Continental American Insurance Company (CAIC), branded as Aflac Group Insurance (AGI); American Family Life Assurance Company of New York (Aflac New York); Tier One Insurance Company (TOIC) and Argus Dental & Vision, Inc (Argus), which provides a platform for Aflac Dental and Vision in the U.S. (collectively, Aflac U.S.). Aflac Japan's revenues, including net gains and losses on its investment portfolio, accounted for 67% and 68% of the Company's total revenues in the three-month periods ended March 31, 2020 and 2019, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 84% at March 31, 2020 and December 31, 2019, respectively.

Basis of Presentation

The Company prepares its financial statements in accordance with U.S. generally accepted accounting principles (U.S. GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification^TM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates based on currently available information when recording transactions resulting from business operations. The most significant items on the Company's balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments and derivatives, deferred policy acquisition costs (DAC), liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, the Company believes the amounts provided are adequate.

The unaudited consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated.

In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of March 31, 2020, and December 31, 2019, and the consolidated statements of earnings and comprehensive income (loss), shareholders' equity and cash flows for the three-month periods ended March 31, 2020 and 2019. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2019 (2019 Annual Report).

COVID-19: On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. The impact of COVID-19 on the Company is evolving and its future effects are uncertain and the Company is closely monitoring the effects and risks of COVID-19 to assess its impact on the Company's business, financial condition, results of operations, liquidity and capital position.

Liquidity and Capital Resources

The Company entered the crisis having maintained capital ratios in Japan and the U.S. at a level designed to absorb a degree of market volatility. To further support liquidity and capital resources, the Parent Company, in March 2020, issued four series of senior notes totaling ¥57.0 billion and, in April 2020, issued $1 billion in senior notes through public debt offerings under its U.S. shelf registration statement. The Company has available liquidity in its unsecured revolving credit facilities of $1.0 billion and ¥100.0 billion, respectively, and currently has no borrowings under either of these facilities. In April 2020, Aflac increased its internal limit for Federal Home Loan Bank of Atlanta (FHLB) borrowings to $800 million, $300 million of which the Company has designated to be used

for short-term liquidity needs and subject to qualified collateral availability and other conditions. The Company continues to evaluate other sources of liquidity including reinvestment cash flows and selling investments.

Major government initiatives

Government authorities in Japan and the U.S. have implemented several initiatives in response to the COVID-19 pandemic, including actions designed to mitigate the adverse health effects of the virus and those designed to provide broad-based relief and economic support to all aspects of the economy. Given that these measures were recently implemented, it is too early to determine what impacts these initiatives will have on the Company’s business, results of operations, financial condition, liquidity, capital position, investment portfolio, workforce, distribution partners and vendors.

Reclassifications

Reclassifications: 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.

Recently Adopted Accounting Pronouncements

Standard	Description	Date of Adoption	Effect on Financial Statements or Other Significant Matters
Accounting Standards Update (ASU) 2019-04 Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments	In April 2019, the FASB issued Codification improvements to clarify and correct certain areas of guidance amended as part of ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities; ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments; and ASU 2017-12, Derivative and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The most significant of these improvements to the Company was related to the Codification improvement to ASU 2017-12 and the clarification that a one-time reclassification of assets that are eligible to be hedged under the last-of-layer method (i.e., certain pre-payable securities) from held-to-maturity to available-for-sale is allowed under the new hedge accounting guidance and would not impact the Company’s ability to continue to classify other bonds as held-to-maturity. The other amendments related to ASU 2017-12 and 2016-01 are either not significant, or were previously implemented as part of the related ASU adoptions. Applicable amendments related to ASU 2016-13 are discussed within the recent adoption of that update below.	January 1, 2020	The adoption of this guidance resulted in a reclassification of $6.9 billion (at amortized cost) of pre-payable fixed-maturity securities from the held-to-maturity to the available-for-sale category. The reclassification resulted in recording in accumulated other comprehensive income a net unrealized gain of $848 million on an after-tax basis, based on the securities’ fair values on the reclassification date. The reclassification impacted the adoption of ASU 2016-13 (see ASU 2016-13 below for additional details).
ASU 2018-17 Consolidation: Targeted Improvements to Related Party Guidance for Variable Interest Entities	In October 2018, the FASB issued targeted improvements which provide that indirect interests held through related parties under common control should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.	January 1, 2020	The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
ASU 2018-13 Fair Value Measurement, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement	In August 2018, the FASB issued amendments to the disclosure requirements on fair value measurements. The amendments remove, modify, and add certain disclosures.	January 1, 2020	The adoption of this guidance did not have a significant impact on the Company’s financial position, results of operations, or disclosures.

Standard	Description	Date of Adoption	Effect on Financial Statements or Other Significant Matters
ASU 2017-04 Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment	In January 2017, the FASB issued amendments simplifying the subsequent measurement of goodwill. An entity, under this update, is no longer required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, the entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount.	January 1, 2020	The adoption of this guidance did not have a significant impact on the Company's financial position, results of operations, or disclosures.
ASU 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments as clarified and amended by: ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, ASU 2019-05, Financial Instruments - Credit Losses (Topic 326), Targeted Transition Relief and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments- Credit Losses	In June 2016, the FASB issued amendments that require a financial asset (or a group of financial assets) measured at amortized cost to be presented net of an allowance for credit losses (Credit Losses ASU) in order to reflect the amount expected to be collected on the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information. Credit losses on available-for-sale debt securities will be measured in a manner similar to current U.S. GAAP; however, the amendments require that credit losses be presented as an allowance rather than as a write-down. Other amendments include changes to the balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant credit deterioration since origination (PCD financial assets).	January 1, 2020	The Company recorded a cumulative effect adjustment with a decrease to beginning 2020 retained earnings of $56 million, net of taxes. See Note 3 of the Notes to the Consolidated Financial Statements for credit loss disclosures. The following line items in the consolidated balance sheets were most significantly impacted by the adoption of the new accounting standard: • Fixed maturity securities held to maturity, at amortized cost • Commercial mortgage and other loans • Reinsurance recoverable, included within Other assets

Description of Accounting Pronouncements Pending Adoption

Standard	Description	Effect on Financial Statements or Other Significant Matters
ASU 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	In March 2020, the FASB issued amendments that provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU only apply to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. An entity may elect to apply the amendments as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued.	The Company is thoroughly evaluating the adoption of this guidance and the impact on the Company’s financial position, results of operations, and disclosures.
ASU 2020-01 Clarifying the interactions between Topic 321, Topic 323, and Topic 815	In January 2020, the FASB issued amendments clarifying that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. In addition, the amendments clarify that for the purpose of applying certain derivative guidance in Topic 815, an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. An entity also would evaluate the remaining characteristics in Topic 815 to determine the accounting for those forward contracts and purchased options. The amendments are effective for public business entities for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted.	The adoption of this guidance is not expected to have a significant impact on the Company's financial position, results of operations, or disclosures.
ASU 2018-12 Financial Services - Insurance, Targeted Improvements to the Accounting for Long-Duration Contracts as clarified and amended by: ASU 2019-09 Financial Services - Insurance (Topic 944): Effective Date	In August 2018, the FASB issued amendments that will significantly change how insurers account for long-duration contracts. The amendments will change existing recognition, measurement, presentation, and disclosure requirements. Issues addressed in the new guidance include: 1) a requirement to review and, if there is a change, update assumptions for the liability for future policy benefits at least annually, and to update the discount rate assumption quarterly, 2) accounting for market risk benefits at fair value, 3) simplified amortization for deferred acquisition costs, and 4) enhanced financial statement presentation and disclosures. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. In November 2019, the FASB issued an amendment extending the effective date for public business entities that meet the definition of an SEC filer, excluding entities eligible to be small reporting companies as defined by the SEC, by one year. The amendments are now effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early application of the amendments is permitted.	The Company is thoroughly evaluating the impact of adoption and expects that the adoption will have a significant impact on the Company’s financial position, results of operations, and disclosures. The Company anticipates that the requirement to update assumptions for liability for future policy benefits will have a significant impact on its results of operations, systems, processes and controls while the requirement to update the discount rate will have a significant impact on its equity. The Company has no products with market risk benefits. The Company does not expect to early adopt the updated standard and has tentatively selected a modified retrospective transition method.

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INVESTMENTS - Investment Exposures Individually Exceeded 10% of Shareholders' Equity (Details) - Japan National Government - USD ($) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2020	Dec. 31, 2019
Summary of Investment Holdings [Line Items]
Credit Rating	[1]	A+	A+
Amortized Cost	[1]	$ 52,786	$ 51,726
Fair Value	[1]	$ 63,020	$ 62,584

[1] Japan Government Bonds (JGBs) or JGB-backed securities

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INVESTMENTS - Commercial Mortgage and Other Loans by Portfolio Segment (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 10,875	$ 9,614
Percent of total commercial mortgage and other loans	100.00%	100.00%
Allowance for credit losses	$ (125)	$ (45)	[1]
Total net commercial mortgage and other loans	10,750	9,569
Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 5,643	$ 5,472
Percent of total commercial mortgage and other loans	51.90%	57.00%
Allowance for credit losses	$ (27)	$ (22)	[1]
Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 1,740	$ 1,710
Percent of total commercial mortgage and other loans	16.00%	17.70%
Allowance for credit losses	$ (11)	$ (3)	[1]
Middle market loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 3,492	$ 2,432
Percent of total commercial mortgage and other loans	32.10%	25.30%
Allowance for credit losses	$ (87)	$ (20)	[1]
Office | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 1,954	$ 1,800
Percent of total commercial mortgage and other loans	18.00%	18.70%
Office | Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 408	$ 410
Percent of total commercial mortgage and other loans	3.80%	4.30%
Retail | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 165	$ 131
Percent of total commercial mortgage and other loans	1.50%	1.40%
Retail | Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 346	$ 348
Percent of total commercial mortgage and other loans	3.10%	3.50%
Apartment/Multi-Family | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 2,065	$ 2,085
Percent of total commercial mortgage and other loans	19.00%	21.70%
Apartment/Multi-Family | Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 589	$ 569
Percent of total commercial mortgage and other loans	5.40%	5.90%
Industrial | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 175	$ 256
Percent of total commercial mortgage and other loans	1.60%	2.70%
Industrial | Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 397	$ 383
Percent of total commercial mortgage and other loans	3.70%	4.00%
Hospitality | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 1,024	$ 1,036
Percent of total commercial mortgage and other loans	9.40%	10.80%
Other | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 260	$ 164
Percent of total commercial mortgage and other loans	2.40%	1.70%

[1] U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

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FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Securities Carried at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	$ 96,288	$ 91,262
Equity securities	660	802
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	35,469	34,878
Equity securities	509	642
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	60,065	55,697
Equity securities	69	80
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	754	687
Equity securities	82	80
Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	578	722
Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	509	642
Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	69	80
Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0	0
Net asset value valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	82	80
Net asset value valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0	0
Net asset value valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0	0
Net asset value valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	82	80
Government and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	36,978	36,400
Government and agencies | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	35,469	34,878
Government and agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,509	1,522
Government and agencies | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Government and agencies | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	36,978	36,400
Government and agencies | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	35,469	34,878
Government and agencies | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,509	1,522
Government and agencies | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Municipalities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	2,440	1,847
Municipalities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Municipalities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	2,440	1,847
Municipalities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Municipalities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	2,440	1,847
Municipalities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Municipalities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	2,440	1,847
Municipalities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Mortgage- and asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	497	410
Mortgage- and asset-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Mortgage- and asset-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	309	232
Mortgage- and asset-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	188	178
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	309	232
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	309	232
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Mortgage- and asset-backed securities | Consensus pricing valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	188	178
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	188	178
Public utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	9,192	6,780
Public utilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Public utilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	8,894	6,556
Public utilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	298	224
Public utilities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	8,894	6,556
Public utilities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Public utilities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	8,894	6,556
Public utilities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Public utilities | Discounted cash flow technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	298	224
Public utilities | Discounted cash flow technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Public utilities | Discounted cash flow technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Public utilities | Discounted cash flow technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	298	224
Sovereign and supranational
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,609	1,042
Sovereign and supranational | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Sovereign and supranational | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,609	1,042
Sovereign and supranational | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Sovereign and supranational | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,609	1,042
Sovereign and supranational | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Sovereign and supranational | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,609	1,042
Sovereign and supranational | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	10,378	10,287
Banks/financial institutions | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	10,355	10,264
Banks/financial institutions | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	23	23
Banks/financial institutions | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	10,355	10,264
Banks/financial institutions | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	10,355	10,264
Banks/financial institutions | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions | Consensus pricing valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	23	23
Banks/financial institutions | Consensus pricing valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions | Consensus pricing valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions | Consensus pricing valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	23	23
Other corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	35,194	34,496
Other corporate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Other corporate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	34,949	34,234
Other corporate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	245	262
Other corporate | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	34,949	34,234
Other corporate | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Other corporate | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	34,949	34,234
Other corporate | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Other corporate | Discounted cash flow technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	245	262
Other corporate | Discounted cash flow technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Other corporate | Discounted cash flow technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Other corporate | Discounted cash flow technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	$ 245	$ 262

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DERIVATIVE INSTRUMENTS - Offsetting of Financial Assets and Derivative Assets (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Offsetting Assets [Line Items]
Gross amount of recognized derivative assets	$ 383	$ 313
Gross amount of liabilities offset in balance sheet	0	0
Net amount of derivative assets presented in balance sheet	383	313
Financial instruments, amount not offset	(229)	(190)
Derivative, collateral, obligation to return securities	(7)	(7)
Derivative, collateral, obligation to return cash	(132)	(113)
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement	15	3
Derivative asset, not subject to master netting arrangement	89	169
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement	89	169
Derivative asset, fair value, gross asset including not subject to master netting arrangement	472	482
Net amount of derivative assets presented in balance sheet	472	482
Derivative asset, fair value, amount offset against collateral	104	172
Gross amounts of recognized financial instruments	3,424	2,342
Gross amounts offset in balance sheet	0	0
Net amounts of assets presented in balance sheet	3,424	2,342
Carrying value of financial instruments not offset in balance sheet	(229)	(190)
Securities collateral, not offset in balance sheet	(7)	(7)
Cash collateral, not offset in balance sheet	(3,084)	(1,973)
Financial instruments, amount of assets offset against collateral	104	172
Over the Counter - Bilateral
Offsetting Assets [Line Items]
Gross amount of recognized derivative assets	362	310
Gross amount of liabilities offset in balance sheet	0	0
Net amount of derivative assets presented in balance sheet	362	310
Financial instruments, amount not offset	(229)	(190)
Derivative, collateral, obligation to return securities	(7)	(7)
Derivative, collateral, obligation to return cash	(121)	(113)
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement	5	0
Derivative asset, not subject to master netting arrangement	89	169
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement	89	169
Other the Counter - Cleared
Offsetting Assets [Line Items]
Gross amount of recognized derivative assets	21	3
Gross amount of liabilities offset in balance sheet	0	0
Net amount of derivative assets presented in balance sheet	21	3
Financial instruments, amount not offset	0	0
Derivative, collateral, obligation to return securities	0	0
Derivative, collateral, obligation to return cash	(11)	0
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement	10	3
Securities Lending and Similar Arrangements
Offsetting Assets [Line Items]
Gross amounts of recognized financial instruments	2,952	1,860
Gross amounts offset in balance sheet	0	0
Net amounts of assets presented in balance sheet	2,952	1,860
Carrying value of financial instruments not offset in balance sheet	0	0
Securities collateral, not offset in balance sheet	0	0
Cash collateral, not offset in balance sheet	(2,952)	(1,860)
Financial instruments, amount of assets offset against collateral	$ 0	$ 0

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POLICY LIABILITIES - Changes in Liability for Unpaid Policy Claims (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Liability for Unpaid Claims and Claims Expenses
Net balance, beginning of period	$ 4,659
Less claims paid during the period on claims incurred during:
Net balance, end of period	4,693
Total liability for unpaid policy claims	4,693	$ 4,625
Health insurance
Liability for Unpaid Claims and Claims Expenses
Unpaid supplemental health claims, beginning of period	3,968	3,952
Less reinsurance recoverables	31	29
Net balance, beginning of period	3,937	3,923
Add claims incurred during the period related to:
Current year	1,837	1,825
Prior years	(136)	(167)
Total incurred	1,701	1,658
Less claims paid during the period on claims incurred during:
Current year	556	506
Prior years	1,144	1,137
Total paid	1,700	1,643
Effect of foreign exchange rate changes on unpaid claims	12	0
Net balance, end of period	3,950	3,938
Add reinsurance recoverables	33	29
Total liability for unpaid policy claims	3,983	3,967
Life insurance
Less claims paid during the period on claims incurred during:
Total liability for unpaid policy claims	$ 710	$ 658

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DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

		March 31, 2020									December 31, 2019
(In millions)				Asset Derivatives			Liability Derivatives						Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount			Fair Value			Fair Value			Notional Amount			Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps - VIE		$	75		$	0		$	11		$	75		$	0		$	8
Total cash flow hedges		75			0			11			75			0			8
Fair value hedges:
Foreign currency forwards		63			0			1			964			0			38
Foreign currency options		8,809			12			23			11,573			0			5
Interest rate swaptions		243			0			0			243			0			0
Total fair value hedges		9,115			12			24			12,780			0			43
Net investment hedge:
Foreign currency forwards		4,985			85			6			4,952			72			2
Foreign currency options		2,040			7			0			2,000			0			0
Total net investment hedge		7,025			92			6			6,952			72			2
Non-qualifying strategies:
Foreign currency swaps		2,250			66			38			2,800			72			78
Foreign currency swaps - VIE		2,587			89			224			2,587			169			118
Foreign currency forwards		20,614			184			420			19,821			166			337
Foreign currency options		9,248			8			0			9,553			0			0
Interest rate swaps		2,370			21			0			7,120			3			0
Interest rate swaptions		7			0			0			7			0			0
Total non-qualifying strategies		37,076			368			682			41,888			410			533
Total derivatives		$	53,291		$	472		$	723		$	61,695		$	482		$	586

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges.

Fair Value Hedging Relationships

(In millions)		Hedging Derivatives									Hedged Items
Hedging Derivatives	Hedged Items	Total Gains (Losses)			Gains (Losses) Excluded from Effectiveness Testing(1)			Gains (Losses) Included in Effectiveness Testing(2)			Gains (Losses)(2)			Net Investment Gains (Losses) Recognized for Fair Value Hedge
Three Months Ended March 31, 2020:
Foreign currency forwards	Fixed maturity securities	$	(16	)	$	(7	)	$	(9	)	$	10		$	1
Total gains (losses)		$	(16	)	$	(7	)	$	(9	)	$	10		$	1
Three Months Ended March 31, 2019:
Foreign currency forwards	Fixed maturity securities	$	9		$	(10	)	$	19		$	(18	)	$	1
Foreign currency options	Fixed maturity securities	(4		)	(4		)	0			0			0
Interest rate swaptions	Fixed maturity securities	(1		)	(1		)	0			0			0
Total gains (losses)		$	4		$	(15	)	$	19		$	(18	)	$	1

⁽¹⁾ Gains (losses) excluded from effectiveness testing includes the forward point on foreign currency forwards and time value change on foreign currency options which are reported in the consolidated statement of earnings as net investment gains (losses). It also includes the change in the fair value of the interest rate swaptions related to the time value of the swaptions which is recognized as a component of other comprehensive income (loss).

⁽²⁾ Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month periods ended March 31, 2020 and 2019, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial.

Schedule of Interest Rate Fair Value Hedges Hedged Items

The following table shows the carrying amounts of assets designated and qualifying as hedged items in fair value hedges of interest rate risk and the related cumulative hedge adjustment included in the carrying amount.

(In millions)	Carrying Amount of the Hedged Assets/(Liabilities)(1)					Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
		March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Fixed maturity securities		$	4,469	$	4,633	$	249	$	256

⁽¹⁾ The balance includes hedging adjustment on discontinued hedging relationships of $249 in 2020 and $256 in 2019.

The total notional amount of the Company's interest rate swaptions was $243 in 2020 and $243 in 2019. The hedging adjustment related to these derivatives was immaterial.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table summarizes the impact to net investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments.

	Three Months Ended March 31,
	2020														2019
(In millions)	Net Investment Income(1)				Net Investment Gains (Losses)						Other Comprehensive Income (Loss)(2)				Net Investment Income(1)				Net Investment Gains (Losses)						Other Comprehensive Income (Loss)(2)
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	(1	)		$	0					$	(4	)		$	(1	)		$	0					$	(2	)
Total cash flow hedges		(1		)		0			(3	)		(4		)		(1		)		0			(3	)		(2		)
Fair value hedges:
Foreign currency forwards(3)						(6		)												(9		)
Foreign currency options(3)						0														(4		)
Interest rate swaptions(3)		0				0						0				0				0						(1		)
Total fair value hedges		0				(6		)				0				0				(13		)				(1		)
Net investment hedge:
Non-derivative hedging          instruments						0						6								0						0
Foreign currency forwards						51						(25		)						0						0
Foreign currency options						6						0								0						0
Total net investment hedge						57						(19		)						0						0
Non-qualifying strategies:
Foreign currency swaps						50														44
Foreign currency swaps - VIE						(195		)												(16		)
Foreign currency forwards						(36		)												(21		)
Foreign currency options						(2		)												0
Interest rate swaps						47														6
Total non-qualifying strategies						(136		)												13
Total		$	(1	)		$	(85	)				$	(23	)		$	(1	)		$	0					$	(3	)

⁽¹⁾ Cash flow hedge items and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

⁽²⁾ Impact of cash flow hedges reported as net investment gains (losses) includes an immaterial amount of gains or losses reclassified from accumulated other comprehensive income (loss) into earnings. It also includes an immaterial amount excluded from effectiveness testing during the three-month periods ended March 31, 2020 and 2019, respectively.

⁽³⁾Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)

Offsetting Assets

Offsetting of Financial Assets and Derivative Assets

March 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Received				Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	362		$	0		$	362		$	(229	)	$	(7	)		$	(121	)		$	5
OTC - cleared		21			0			21			0			0				(11		)		10
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		383			0			383			(229		)	(7		)		(132		)		15
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		89						89														89
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		89						89														89
Total derivative       assets		472			0			472			(229		)	(7		)		(132		)		104
Securities lending    and similar    arrangements		2,952			0			2,952			0			0				(2,952		)		0
Total		$	3,424		$	0		$	3,424		$	(229	)	$	(7	)		$	(3,084	)		$	104

December 31, 2019
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Received				Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	310		$	0		$	310		$	(190	)	$	(7	)		$	(113	)		$	0
OTC - cleared		3			0			3			0			0				0				3
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		313			0			313			(190		)	(7		)		(113		)		3
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		169						169														169
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		169						169														169
Total derivative       assets		482			0			482			(190		)	(7		)		(113		)		172
Securities lending    and similar    arrangements		1,860			0			1,860			0			0				(1,860		)		0
Total		$	2,342		$	0		$	2,342		$	(190	)	$	(7	)		$	(1,973	)		$	172

Offsetting Liabilities

Offsetting of Financial Liabilities and Derivative Liabilities

March 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Pledged				Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	488		$	0		$	488		$	(229	)	$	(175	)		$	(2	)		$	82
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		488			0			488			(229		)	(175		)		(2		)		82
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		235						235														235
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		235						235														235
Total derivative       liabilities		723			0			723			(229		)	(175		)		(2		)		317
Securities lending    and similar    arrangements		2,969			0			2,969			(2,952		)	0				0				17
Total		$	3,692		$	0		$	3,692		$	(3,181	)	$	(175	)		$	(2	)		$	334

December 31, 2019
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments				Securities Collateral			Cash Collateral Pledged				Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	459		$	0		$	459		$	(190	)	$	(222	)		$	(32	)		$	15
OTC - cleared		1			0			1			0			0				(1		)		0
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		460			0			460			(190		)	(222		)		(33		)		15
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		126						126														126
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		126						126														126
Total derivative       liabilities		586			0			586			(190		)	(222		)		(33		)		141
Securities lending    and similar    arrangements		1,876			0			1,876			(1,860		)	0				0				16
Total		$	2,462		$	0		$	2,462		$	(2,050	)	$	(222	)		$	(33	)		$	157

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

In April 2020, the Parent Company issued $1.0 billion of senior notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 3.60% per annum, payable semi-annually, and will mature in April 2030. These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 45 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date.

XML

INVESTMENTS - Information Regarding Pretax Realized Gains and Losses From Investments (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Gain (Loss) on Securities [Line Items]
Loan loss reserves	[1]	$ 0	$ (2)
Credit Losses
Fixed maturity securities available for sale		(63)	0
Fixed maturity securities held to maturity		1	0
Commercial mortgage and other loans		(37)	0
Loan commitments		(46)	0
Total credit losses		(145)	0
Total net investment gains (losses)		(463)	71
Derivatives and Other
Derivative gains (losses)		(85)	0
Foreign currency gains (losses)		(77)	(2)
Derivatives and other
Credit Losses
Total net investment gains (losses)		(162)	(2)
Equity securities
Credit Losses
Total net investment gains (losses)		(149)	58
Available-for-sale securities | Fixed maturity securities
Gain (Loss) on Securities [Line Items]
Gross gains from sales		7	12
Gross losses from sales		0	(8)
Foreign currency gains (losses) on sales and redemptions		(14)	13
Credit Losses
Total net investment gains (losses)		$ (7)	$ 17

[1] U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.

XML

INVESTMENTS - Transitional Real Estate Loans by Key Credit Quality Indicators (Details) - Transitional real estate loans	Mar. 31, 2020 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 329
2019	2,142
2018	2,240
2017	841
2016	34
Prior	57
Total Financing Receivable	5,643
Loan to Value Ratio, Zero to Fifty-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2020	33
2019	471
2018	409
2017	155
2016	20
Prior	57
Total Financing Receivable	1,145
Loan to Value Ratio, Sixty to Sixty-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2020	190
2019	777
2018	834
2017	436
2016	0
Prior	0
Total Financing Receivable	2,237
Loan to Value Ratio, Seventy to Seventy-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2020	81
2019	858
2018	997
2017	250
2016	14
Prior	0
Total Financing Receivable	2,200
Loan-to-Value Ratio Eighty Percent and Above
Financing Receivable, Credit Quality Indicator [Line Items]
2020	25
2019	36
2018	0
2017	0
2016	0
Prior	0
Total Financing Receivable	$ 61

XML

FAIR VALUE MEASUREMENTS - Fair Value Measurement Inputs and Valuation Techniques (Details) $ in Millions		Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		$ 96,288	$ 91,262
Equity securities		660	802
Asset derivatives		472	482
Liability derivatives		723	586
Assets, fair value		102,460	98,070
Liabilities, fair value		723	586
Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		754	687
Equity securities		82	80
Asset derivatives		89	169
Assets, fair value		925	936
Liabilities, fair value		235	126
Net asset value valuation technique
Fair Value Measurement Inputs and Valuation Techniques
Equity securities		82	80
Net asset value valuation technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Equity securities		82	80
Foreign currency swaps
Fair Value Measurement Inputs and Valuation Techniques
Asset derivatives		155	241
Liability derivatives		273	204
Foreign currency swaps | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Asset derivatives		89	169
Liability derivatives		235	126
Foreign currency swaps | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Discounted cash flow technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Asset derivatives		15	106
Liability derivatives		224	118
Foreign currency swaps | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Discounted cash flow technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Asset derivatives		74	63
Liability derivatives		$ 11	$ 8
Foreign currency swaps | Credit Spread | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input		0.0031	0.0010
Derivative liability, measurement input		0.0031	0.0013
Foreign currency swaps | Credit Spread | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input		0.0173	0.0100
Derivative liability, measurement input		0.0173	0.0159
Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		$ 36,893	$ 38,281
Equity securities		$ 132	$ 144
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[1]	0.0072	0.0189
Derivative liability, measurement input	[1]	0.0072	0.0189
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[1]	0.0088	0.0209
Derivative liability, measurement input	[1]	0.0088	0.0209
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Lower Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[1]	0.0072	0.0189
Derivative liability, measurement input	[1]	0.0072	0.0189
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Upper Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[1]	0.0088	0.0209
Derivative liability, measurement input	[1]	0.0088	0.0209
Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		$ 59,395	$ 52,981
Equity securities		$ 528	$ 658
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[2]	0.0002	0.0012
Derivative liability, measurement input	[2]	0.0002	0.0012
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[2]	0.0020	0.0043
Derivative liability, measurement input	[2]	0.0020	0.0043
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Lower Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[2]	0.0002	0.0012
Derivative liability, measurement input	[2]	0.0002	0.0012
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Upper Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[2]	0.0020	0.0043
Derivative liability, measurement input	[2]	0.0020	0.0043
Mortgage- and asset-backed securities
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		$ 497	$ 410
Mortgage- and asset-backed securities | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		188	178
Mortgage- and asset-backed securities | Consensus pricing valuation technique
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		188	178
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		188	178
Mortgage- and asset-backed securities | Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		160	156
Mortgage- and asset-backed securities | Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		337	254
Banks/financial institutions
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		10,378	10,287
Banks/financial institutions | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		23	23
Banks/financial institutions | Consensus pricing valuation technique
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		23	23
Banks/financial institutions | Consensus pricing valuation technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		23	23
Banks/financial institutions | Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		3,372	3,521
Banks/financial institutions | Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		7,006	6,766
Public utilities
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		9,192	6,780
Public utilities | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		298	224
Public utilities | Discounted cash flow technique
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		298	224
Public utilities | Discounted cash flow technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		298	224
Public utilities | Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		4,443	4,519
Public utilities | Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		4,749	2,261
Other corporate
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		35,194	34,496
Other corporate | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		245	262
Other corporate | Discounted cash flow technique
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		245	262
Other corporate | Discounted cash flow technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		245	262
Other corporate | Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		27,013	28,253
Other corporate | Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		$ 8,181	$ 6,243

[1] Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps

[2] Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps

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FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost (Details) - USD ($) $ in Millions	Mar. 31, 2020		Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments	$ 1,843		$ 1,477
Assets:
Securities held to maturity, fixed maturities, amortized cost	23,287		30,085
Held to maturity, fixed maturity securities, fair value	29,347		37,594
Commercial mortgage and other loans	10,750		9,569
Commercial mortgage and other loans, fair value	10,390		9,648
Other investments carried at amortized cost	29	[1]	30	[2]
Other investments carried at amortized cost, fair value	29	[1]	30	[2]
Total financial instruments assets not carried at fair value	34,057		39,684
Assets fair value disclosure financial instruments carried at cost	39,766		47,272
Liabilities:
Other policyholders’ funds	7,422		7,317
Other policyholders' funds fair value disclosure	7,338		7,234
Notes payable	6,597		6,408
Notes payable, fair value disclosure	6,881		6,935
Total financial instrument liabilities not carried at fair value	14,019		13,725
Liabilities fair value disclosure financial instruments carried at cost	14,219		14,169
Government and agencies
Assets:
Securities held to maturity, fixed maturities, amortized cost	22,384		22,241
Held to maturity, fixed maturity securities, fair value	28,194		28,291
Municipalities
Assets:
Securities held to maturity, fixed maturities, amortized cost	362		821
Held to maturity, fixed maturity securities, fair value	484		1,083
Mortgage- and asset-backed securities
Assets:
Securities held to maturity, fixed maturities, amortized cost			16
Held to maturity, fixed maturity securities, fair value			17
Public utilities
Assets:
Securities held to maturity, fixed maturities, amortized cost	45		2,535
Held to maturity, fixed maturity securities, fair value	59		2,954
Sovereign and supranational
Assets:
Securities held to maturity, fixed maturities, amortized cost	464		1,123
Held to maturity, fixed maturity securities, fair value	578		1,320
Banks/financial institutions
Assets:
Securities held to maturity, fixed maturities, amortized cost			916
Held to maturity, fixed maturity securities, fair value			1,018
Other corporate
Assets:
Securities held to maturity, fixed maturities, amortized cost	23		2,433
Held to maturity, fixed maturity securities, fair value	32		2,911
Policy loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments	253		250
Equity method investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments	669		569
Level 1
Assets:
Held to maturity, fixed maturity securities, fair value	27,842		27,937
Commercial mortgage and other loans, fair value	0		0
Other investments carried at amortized cost, fair value	0	[1]	0	[2]
Assets fair value disclosure financial instruments carried at cost	27,842		27,937
Liabilities:
Other policyholders' funds fair value disclosure	0		0
Notes payable, fair value disclosure	0		0
Liabilities fair value disclosure financial instruments carried at cost	0		0
Level 1 | Government and agencies
Assets:
Held to maturity, fixed maturity securities, fair value	27,842		27,937
Level 1 | Municipalities
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 1 | Mortgage- and asset-backed securities
Assets:
Held to maturity, fixed maturity securities, fair value			0
Level 1 | Public utilities
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 1 | Sovereign and supranational
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 1 | Banks/financial institutions
Assets:
Held to maturity, fixed maturity securities, fair value			0
Level 1 | Other corporate
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 2
Assets:
Held to maturity, fixed maturity securities, fair value	1,505		9,647
Commercial mortgage and other loans, fair value	0		0
Other investments carried at amortized cost, fair value	29	[1]	30	[2]
Assets fair value disclosure financial instruments carried at cost	1,534		9,677
Liabilities:
Other policyholders' funds fair value disclosure	0		0
Notes payable, fair value disclosure	6,607		6,663
Liabilities fair value disclosure financial instruments carried at cost	6,607		6,663
Level 2 | Government and agencies
Assets:
Held to maturity, fixed maturity securities, fair value	352		354
Level 2 | Municipalities
Assets:
Held to maturity, fixed maturity securities, fair value	484		1,083
Level 2 | Mortgage- and asset-backed securities
Assets:
Held to maturity, fixed maturity securities, fair value			7
Level 2 | Public utilities
Assets:
Held to maturity, fixed maturity securities, fair value	59		2,954
Level 2 | Sovereign and supranational
Assets:
Held to maturity, fixed maturity securities, fair value	578		1,320
Level 2 | Banks/financial institutions
Assets:
Held to maturity, fixed maturity securities, fair value			1,018
Level 2 | Other corporate
Assets:
Held to maturity, fixed maturity securities, fair value	32		2,911
Level 3
Assets:
Held to maturity, fixed maturity securities, fair value	0		10
Commercial mortgage and other loans, fair value	10,390		9,648
Other investments carried at amortized cost, fair value	0	[1]	0	[2]
Assets fair value disclosure financial instruments carried at cost	10,390		9,658
Liabilities:
Other policyholders' funds fair value disclosure	7,338		7,234
Notes payable, fair value disclosure	274		272
Liabilities fair value disclosure financial instruments carried at cost	7,612		7,506
Level 3 | Government and agencies
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 3 | Municipalities
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 3 | Mortgage- and asset-backed securities
Assets:
Held to maturity, fixed maturity securities, fair value			10
Level 3 | Public utilities
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 3 | Sovereign and supranational
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 3 | Banks/financial institutions
Assets:
Held to maturity, fixed maturity securities, fair value			0
Level 3 | Other corporate
Assets:
Held to maturity, fixed maturity securities, fair value	$ 0		$ 0

[1] Excludes policy loans of $253 and equity method investments of $669, at carrying value

[2] Excludes policy loans of $250 and equity method investments of $569, at carrying value

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DERIVATIVE INSTRUMENTS - Derivatives and Hedging Instruments Gain (Loss) Summary (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net	[1]	$ (1)	$ (1)
Unrealized foreign currency translation gains (losses) during period		85	(1)
Derivative gains (losses)		(85)	0
Derivative and non-derivative hedging instruments gain (loss) recognized in other comprehensive income effective portion before tax	[2]	(23)	(3)
Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net	[1]	(1)	(1)
Net realized investment gains (losses) recognized in income on derivative (ineffective portion)	[3]	0	0
Gain (loss) recognized in other comprehensive income on derivative (effective portion)	[2]	(4)	(2)
Cash flow hedges | Foreign currency swaps | Variable Interest Entity
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net	[1]	(1)	(1)
Net realized investment gains (losses) recognized in income on derivative (ineffective portion)		0	0
Gain (loss) recognized in other comprehensive income on derivative (effective portion)	[2]	(4)	(2)
Fair value hedges
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net	[1]	0	0
Net realized investment gains (losses) recognized in income on derivative (ineffective portion)		(6)	(13)
Gain (loss) recognized in other comprehensive income on derivative (effective portion)	[2]	0	(1)
Fair value hedges | Foreign currency forwards
Derivative Instruments, Gain (Loss) [Line Items]
Net realized investment gains (losses) recognized in income on derivative (ineffective portion)	[3]	(6)	(9)
Fair value hedges | Foreign currency options
Derivative Instruments, Gain (Loss) [Line Items]
Net realized investment gains (losses) recognized in income on derivative (ineffective portion)	[3]	0	(4)
Fair value hedges | Interest rate swaptions
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net	[1],[3]	0	0
Net realized investment gains (losses) recognized in income on derivative (ineffective portion)	[3]	0	0
Gain (loss) recognized in other comprehensive income on derivative (effective portion)	[2],[3]	0	(1)
Net investment hedge
Derivative Instruments, Gain (Loss) [Line Items]
Net realized investment gains (losses) recognized in income on derivative (ineffective portion)		57	0
Unrealized foreign currency translation gains (losses) during period	[2]	(19)	0
Net investment hedge | Foreign currency forwards
Derivative Instruments, Gain (Loss) [Line Items]
Net realized investment gains (losses) recognized in income on derivative (ineffective portion)		51	0
Unrealized foreign currency translation gains (losses) during period	[2]	(25)	0
Net investment hedge | Foreign currency options
Derivative Instruments, Gain (Loss) [Line Items]
Net realized investment gains (losses) recognized in income on derivative (ineffective portion)		6	0
Unrealized foreign currency translation gains (losses) during period	[2]	0	0
Net investment hedge | Non-derivative hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Net realized investment gains (losses) recognized in income on derivative (ineffective portion)		0	0
Unrealized foreign currency translation gains (losses) during period	[2]	6	0
Non-qualifying strategies
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in income, net		(136)	13
Non-qualifying strategies | Foreign currency swaps | Variable Interest Entity
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in income, net		(195)	(16)
Non-qualifying strategies | Foreign currency swaps | Consolidated Entity Excluding Variable Interest Entities (VIE)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in income, net		50	44
Non-qualifying strategies | Foreign currency forwards
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in income, net		(36)	(21)
Non-qualifying strategies | Foreign currency options
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in income, net		(2)	0
Non-qualifying strategies | Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, gain (loss) recognized in income, net		$ 47	$ 6

[1] Cash flow hedge items and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

[2] Impact of cash flow hedges reported as net investment gains (losses) includes an immaterial amount of gains or losses reclassified from accumulated other comprehensive income (loss) into earnings. It also includes an immaterial amount excluded from effectiveness testing during the three-month periods ended March 31, 2020 and 2019, respectively.

[3] Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)

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DERIVATIVE INSTRUMENTS - Additional Information (Detail) $ in Millions	Mar. 31, 2020 USD ($) yr	Dec. 31, 2019 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Notional Amount	$ 53,291	$ 61,695
Cash flow hedging activity, maximum time period | yr	7
Derivative, net liability position, aggregate fair value	$ 348	$ 301
Additional Collateral, Aggregate Fair Value	171
Senior notes | Interest rate swaps
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Notional Amount	$ 2,300

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INVESTMENTS - Investments in Consolidated Variable Interest Entities (Detail) - USD ($) $ in Millions		Mar. 31, 2020		Dec. 31, 2019
Variable Interest Entity [Line Items]
Available for sale, fixed maturity securities, amortized cost		$ 87,881		$ 79,371
Available for sale, fixed maturity securities		96,288		91,262
Equity securities		660		802
Commercial mortgage and other loans		10,750		9,569
Commercial mortgage and other loans, fair value		10,390		9,648
Other investments		1,843		1,477
Asset derivatives		472		482
Assets, fair value		102,460		98,070
Liability derivatives		723		586
Liabilities		125,214		123,809
Liabilities, fair value		723		586
Variable Interest Entity, Consolidated
Variable Interest Entity [Line Items]
Available for sale, fixed maturity securities, amortized cost		3,208	[1]	3,308
Available for sale, fixed maturity securities		3,786		4,312
Commercial mortgage and other loans		9,051		7,956
Commercial mortgage and other loans, fair value		8,737		8,015
Other investments	[2]	550		494
Other investments, fair value	[2]	550		494
Asset derivatives, amortized cost	[3]	89	[1]	169
Asset derivatives	[3]	89		169
Assets, amortized cost		12,898	[1]	11,927
Assets, fair value		13,162		12,990
Liability derivatives, amortized cost	[3]	235	[1]	126
Liability derivatives	[3]	235		126
Liabilities		235	[1]	126
Liabilities, fair value		$ 235		$ 126

[1] Net of allowance for credit losses

[2] Consists entirely of alternative investments in limited partnerships

[3] Consists entirely of derivatives

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SHAREHOLDERS' EQUITY - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period	$ 6,615	$ 2,151
Adjusted balance, beginning of period	7,463
Other comprehensive income (loss) before reclassifications net of tax	(3,287)	2,340
Amounts reclassified from accumulated other comprehensive income net of tax	12	(10)
Other comprehensive income (loss), net of tax	(3,275)	2,330
Balance, end of period	4,188	4,481
Accounting Standards Update 2019-04
Accumulated Other Comprehensive Income [Roll Forward]
Amounts reclassified from accumulated other comprehensive income net of tax	848
Unrealized foreign currency translation gains (losses)
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period	(1,623)	(1,847)
Adjusted balance, beginning of period	(1,623)
Other comprehensive income (loss) before reclassifications net of tax	80	(1)
Amounts reclassified from accumulated other comprehensive income net of tax	0	0
Other comprehensive income (loss), net of tax	80	(1)
Balance, end of period	(1,543)	(1,848)
Unrealized foreign currency translation gains (losses) | Accounting Standards Update 2019-04
Accumulated Other Comprehensive Income [Roll Forward]
Amounts reclassified from accumulated other comprehensive income net of tax	0
Unrealized gains (losses) on investment securities
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period	8,548	4,234
Adjusted balance, beginning of period	9,396
Other comprehensive income (loss) before reclassifications net of tax	(3,359)	2,340
Amounts reclassified from accumulated other comprehensive income net of tax	6	(13)
Other comprehensive income (loss), net of tax	(3,353)	2,327
Balance, end of period	6,043	6,561
Unrealized gains (losses) on investment securities | Accounting Standards Update 2019-04
Accumulated Other Comprehensive Income [Roll Forward]
Amounts reclassified from accumulated other comprehensive income net of tax	848
Unrealized gains (losses) on derivatives
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period	(33)	(24)
Adjusted balance, beginning of period	(33)
Other comprehensive income (loss) before reclassifications net of tax	(2)	(2)
Amounts reclassified from accumulated other comprehensive income net of tax	0	0
Other comprehensive income (loss), net of tax	(2)	(2)
Balance, end of period	(35)	(26)
Unrealized gains (losses) on derivatives | Accounting Standards Update 2019-04
Accumulated Other Comprehensive Income [Roll Forward]
Amounts reclassified from accumulated other comprehensive income net of tax	0
Pension liability adjustment
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period	(277)	(212)
Adjusted balance, beginning of period	(277)
Other comprehensive income (loss) before reclassifications net of tax	(6)	3
Amounts reclassified from accumulated other comprehensive income net of tax	6	3
Other comprehensive income (loss), net of tax	0	6
Balance, end of period	(277)	$ (206)
Pension liability adjustment | Accounting Standards Update 2019-04
Accumulated Other Comprehensive Income [Roll Forward]
Amounts reclassified from accumulated other comprehensive income net of tax	$ 0

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REINSURANCE - Additional Information (Details) $ in Millions, ¥ in Billions	3 Months Ended
	Mar. 31, 2020 JPY (¥)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Effects of Reinsurance [Line Items]
Percent change in spot yen/dollar exchange rate		0.70%
Percent change in ceded reserves		2.30%
Aflac Japan
Effects of Reinsurance [Line Items]
Committed reinsurance facility | ¥	¥ 110
Aflac Japan | Closed Block
Effects of Reinsurance [Line Items]
Reinsurance deferred profit liability		$ 1,000	$ 1,000
Reinsurance recoverable		$ 976	$ 970

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NOTES PAYABLE AND LEASE OBLIGATIONS - Summary of Notes Payable (Parenthetical) (Details) - JPY (¥) ¥ in Billions	Mar. 31, 2020	Jan. 31, 2020	Dec. 31, 2019
4.00% senior notes paid January 2020
Debt Instrument [Line Items]
Debt instrument, interest rate	4.00%	4.00%	4.00%
3.625% senior notes due June 2023
Debt Instrument [Line Items]
Debt instrument, interest rate	3.625%		3.625%
3.625% senior notes due November 2024
Debt Instrument [Line Items]
Debt instrument, interest rate	3.625%		3.625%
3.25% senior notes due March 2025
Debt Instrument [Line Items]
Debt instrument, interest rate	3.25%		3.25%
2.875% senior notes due October 2026
Debt Instrument [Line Items]
Debt instrument, interest rate	2.875%		2.875%
6.90% senior notes due December 2039
Debt Instrument [Line Items]
Debt instrument, interest rate	6.90%		6.90%
6.45% senior notes due August 2040
Debt Instrument [Line Items]
Debt instrument, interest rate	6.45%		6.45%
4.00% senior notes due October 2046
Debt Instrument [Line Items]
Debt instrument, interest rate	4.00%		4.00%
4.750% senior notes due January 2049
Debt Instrument [Line Items]
Debt instrument, interest rate	4.75%		4.75%
.300% senior notes due September 2025
Debt Instrument [Line Items]
Debt instrument, interest rate	0.30%
Debt instrument, principal amount	¥ 12.4
.932% senior notes due January 2027
Debt Instrument [Line Items]
Debt instrument, interest rate	0.932%		0.932%
Debt instrument, principal amount	¥ 60.0		¥ 60.0
.500% senior noted due December 2029
Debt Instrument [Line Items]
Debt instrument, interest rate	0.50%		0.50%
Debt instrument, principal amount	¥ 12.6		¥ 12.6
.550% senior notes due March 2030
Debt Instrument [Line Items]
Debt instrument, interest rate	0.55%
Debt instrument, principal amount	¥ 13.3
1.159% senior notes due October 2030
Debt Instrument [Line Items]
Debt instrument, interest rate	1.159%		1.159%
Debt instrument, principal amount	¥ 29.3		¥ 29.3
.843% senior notes due December 2031
Debt Instrument [Line Items]
Debt instrument, interest rate	0.843%		0.843%
Debt instrument, principal amount	¥ 9.3		¥ 9.3
.750% senior notes due March 2032
Debt Instrument [Line Items]
Debt instrument, interest rate	0.75%
Debt instrument, principal amount	¥ 20.7
1.488% senior notes due October 2033
Debt Instrument [Line Items]
Debt instrument, interest rate	1.488%		1.488%
Debt instrument, principal amount	¥ 15.2		¥ 15.2
.934% senior notes due December 2034
Debt Instrument [Line Items]
Debt instrument, interest rate	0.934%		0.934%
Debt instrument, principal amount	¥ 9.8		¥ 9.8
.830% senior notes due March 2035
Debt Instrument [Line Items]
Debt instrument, interest rate	0.83%
Debt instrument, principal amount	¥ 10.6
1.750% senior notes due October 2038
Debt Instrument [Line Items]
Debt instrument, interest rate	1.75%		1.75%
Debt instrument, principal amount	¥ 8.9		¥ 8.9
1.122% senior notes due December 2039
Debt Instrument [Line Items]
Debt instrument, interest rate	1.122%		1.122%
Debt instrument, principal amount	¥ 6.3		¥ 6.3
2.108% subordinated notes due October 2047
Debt Instrument [Line Items]
Debt instrument, interest rate	2.108%		2.108%
Debt instrument, principal amount	¥ 60.0		¥ 60.0
.936% subordinate bond due April 2049
Debt Instrument [Line Items]
Debt instrument, interest rate	0.963%		0.963%
Debt instrument, principal amount	¥ 30.0		¥ 30.0
Yen-denominated loan variable interest rate due September 2026
Debt Instrument [Line Items]
Debt instrument, interest rate	0.42%		0.42%
Debt instrument, principal amount	¥ 5.0		¥ 5.0
Yen-denominated loan variable interest rate due September 2029
Debt Instrument [Line Items]
Debt instrument, interest rate	0.57%		0.57%
Debt instrument, principal amount	¥ 25.0		¥ 25.0

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SHARE-BASED COMPENSATION - Restricted Stock Activity (Details) - Restricted Stock shares in Thousands	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Shares
Beginning Balance | shares	2,573
Granted | shares	1,376
Canceled | shares	(25)
Vested | shares	(1,358)
Ending Balance | shares	2,566
Weighted-Average Grant-Date Fair Value Per Share
Beginning Balance | $ / shares	$ 44.66
Granted | $ / shares	46.66
Cancelled | $ / shares	46.52
Vested | $ / shares	38.48
Ending Balance | $ / shares	$ 48.97

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SUBSEQUENT EVENTS - Additional Information (Detail) - 3.60% senior notes due April 2030 - Subsequent event $ in Billions	1 Months Ended
	Apr. 30, 2020 USD ($)
Subsequent Event [Line Items]
Debt instrument, principal amount	$ 1.0
Debt instrument, interest rate	3.60%
Debt instrument, redemption, description	These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 45 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date.

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SHAREHOLDERS' EQUITY - Anti-Dilutive Share-Based Awards Excluded from Calculation of Diluted Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Stockholders' Equity Note [Abstract]
Anti-dilutive share-based awards	744	22

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SHAREHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

The following table is a reconciliation of the number of shares of the Company's common stock for the three-month periods ended March 31.

(In thousands of shares)	2020		2019
Common stock - issued:
Balance, beginning of period	1,349,309		1,347,540
Exercise of stock options and issuance of restricted shares	1,341		1,060
Balance, end of period	1,350,650		1,348,600
Treasury stock:
Balance, beginning of period	622,516		592,254
Purchases of treasury stock:
Share repurchase program	9,984		10,237
Other	508		561
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(468	)	(430	)
Exercise of stock options	(45	)	(231	)
Other	(227	)	(278	)
Balance, end of period	632,268		602,113
Shares outstanding, end of period	718,382		746,487

Outstanding share-based awards are excluded from the calculation of weighted-average shares used in the computation of basic earnings per share (EPS). The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share for the following periods.

	Three Months Ended March 31,
(In thousands)	2020		2019
Anti-dilutive share-based awards		744		22

Share Repurchase Program

During the first three months of 2020, the Company repurchased 10.0 million shares of its common stock for $449 million as part of its share repurchase program. During the first three months of 2019, the Company repurchased 10.2 million shares of its common stock for $490 million as part of its share repurchase program. As of March 31, 2020, a remaining balance of 27.1 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its board of directors.

Reclassifications from Accumulated Other Comprehensive Income

The tables below are reconciliations of accumulated other comprehensive income by component for the following periods.

Changes in Accumulated Other Comprehensive Income

Three Months Ended March 31, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)				Unrealized Gains (Losses) on Investment Securities				Unrealized Gains (Losses) on Derivatives				Pension Liability Adjustment				Total
Balance at December 31, 2019		$	(1,623	)		$	8,548			$	(33	)		$	(277	)		$	6,615
Cumulative effect of change in accounting principle - ASU 2019-04		0				848				0				0				848
Balance at January 1, 2020		$	(1,623	)		$	9,396			$	(33	)		$	(277	)		$	7,463
Other comprehensive income (loss) before reclassification		80				(3,359		)		(2		)		(6		)		(3,287		)
Amounts reclassified from accumulated other comprehensive income (loss)		0				6				0				6				12
Net current-period other comprehensive income (loss)		80				(3,353		)		(2		)		0				(3,275		)
Balance at March 31, 2020		$	(1,543	)		$	6,043			$	(35	)		$	(277	)		$	4,188

All amounts in the table above are net of tax.

Three Months Ended March 31, 2019
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)				Unrealized Gains (Losses) on Investment Securities				Unrealized Gains (Losses) on Derivatives				Pension Liability Adjustment				Total
Balance at December 31, 2018		$	(1,847	)		$	4,234			$	(24	)		$	(212	)		$	2,151
Other comprehensive income (loss) before reclassification		(1		)		2,340				(2		)		3				2,340
Amounts reclassified from accumulated other comprehensive income (loss)		0				(13		)		0				3				(10		)
Net current-period other comprehensive income (loss)		(1		)		2,327				(2		)		6				2,330
Balance at March 31, 2019		$	(1,848	)		$	6,561			$	(26	)		$	(206	)		$	4,481

All amounts in the table above are net of tax.

The tables below summarize the amounts reclassified from each component of accumulated other comprehensive income into net earnings for the following periods.

Reclassifications Out of Accumulated Other Comprehensive Income

(In millions)	Three Months Ended March 31, 2020
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale securities		$	(7	)	Net investment gains (losses)
		1			Tax (expense) or benefit(1)
		$	(6	)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(8	)	Acquisition and operating expenses(2)
Prior service (cost) credit		0			Acquisition and operating expenses(2)
		2			Tax (expense) or benefit(1)
		$	(6	)	Net of tax
Total reclassifications for the period		$	(12	)	Net of tax

⁽¹⁾ Based on 21% blended tax rate

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details).

(In millions)	Three Months Ended March 31, 2019
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale securities		$	17		Net investment gains (losses)
		(4		)	Tax (expense) or benefit(1)
		$	13		Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(4	)	Acquisition and operating expenses(2)
Prior service (cost) credit		0			Acquisition and operating expenses(2)
		1			Tax (expense) or benefit(1)
		$	(3	)	Net of tax
Total reclassifications for the period		$	10		Net of tax

⁽¹⁾ Based on 25% blended tax rate

⁽²⁾ These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details).

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POLICY LIABILITIES

3 Months Ended

Mar. 31, 2020

Insurance Loss Reserves [Abstract]

POLICY LIABILITIES

POLICY LIABILITIES

Changes in the liability for unpaid policy claims were as follows:

	Three Months Ended March 31,
(In millions)		2020			2019
Unpaid supplemental health claims, beginning of period		$	3,968		$	3,952
Less reinsurance recoverables		31			29
Net balance, beginning of period		3,937			3,923
Add claims incurred during the period related to:
Current year		1,837			1,825
Prior years		(136		)	(167		)
Total incurred		1,701			1,658
Less claims paid during the period on claims incurred during:
Current year		556			506
Prior years		1,144			1,137
Total paid		1,700			1,643
Effect of foreign exchange rate changes on unpaid claims		12			0
Net balance, end of period		3,950			3,938
Add reinsurance recoverables		33			29
Unpaid supplemental health claims, end of period		3,983			3,967
Unpaid life claims, end of period		710			658
Total liability for unpaid policy claims		$	4,693		$	4,625

The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates. The favorable claims development of $136 million for the three-month period ended March 31, 2020 comprises approximately $91 million from Japan, which represents approximately 67% of the total. Excluding the impact of foreign exchange of a gain of approximately $1 million from December 31, 2019 to March 31, 2020, the favorable claims development in Japan would have been approximately $90 million, representing approximately 66% of the total.

The Company has experienced continued favorable claim trends in 2020 for its core health products in Japan. The Company's experience in Japan related to the average length of stay in the hospital for cancer treatment has shown continued decline in the current period. In addition, cancer treatment patterns in Japan are continuing to be influenced by significant advances in early-detection techniques and by the increased use of pathological diagnosis rather than clinical exams. Additionally, follow-up radiation and chemotherapy treatments are occurring more often on an outpatient basis. Such changes in treatment not only increase the quality of life and initial outcomes for the patients, but also decrease the average length of each hospital stay, resulting in favorable claims development.

The remainder of the favorable claims development related to prior years for the three-month period ended March 31, 2020, reflects Aflac U.S. favorable claims experience compared to previous estimates, primarily in the cancer and accident lines of business.

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Retained earnings
Dividends to shareholders (in dollars per share)	$ 0.28	$ 0.27

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Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net earnings	$ 566	$ 928
Other comprehensive income (loss) before income taxes:
Unrealized foreign currency translation gains (losses) during period	85	(1)
Unrealized gains (losses) on fixed maturity securities:
Unrealized holding gains (losses) on fixed maturity securities during period	(4,605)	3,196
Reclassification adjustment for (gains) losses on fixed maturity securities included in net earnings	7	(17)
Unrealized gains (losses) on derivatives during period	(4)	(3)
Pension liability adjustment during period	0	7
Total other comprehensive income (loss) before income taxes	(4,517)	3,182
Income tax expense (benefit) related to items of other comprehensive income (loss)	(1,242)	852
Other comprehensive income (loss), net of income taxes	(3,275)	2,330
Total comprehensive income (loss)	$ (2,709)	$ 3,258

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BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. In addition, operating business units that are not individually reportable and business activities, including reinsurance retrocession activities, not included in Aflac Japan or Aflac U.S. are included in Corporate and other.

The Company does not allocate corporate overhead expenses to business segments. Consistent with U.S. GAAP accounting guidance for segment reporting, the Company evaluates and manages its business segments using a financial performance measure called pretax adjusted earnings. Adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management’s control. Adjusted revenues are U.S. GAAP total revenues excluding net investment gains and losses, except for amortized hedge costs/income related to foreign currency exposure management strategies and net interest cash flows from derivatives associated with certain investment strategies. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect Aflac’s underlying business performance. The Company excludes income taxes related to operations to arrive at pretax adjusted earnings. Information regarding operations by reportable segment and Corporate and other, follows:

	Three Months Ended March 31,
(In millions)	2020			2019
Revenues:
Aflac Japan:
Net earned premiums	$	3,150		$	3,180
Adjusted net investment income (1),(2)	642			610
Other income	11			12
Total adjusted revenue Aflac Japan	3,803			3,802
Aflac U.S.:
Net earned premiums	1,483			1,461
Net investment income	177			177
Other income	27			2
Total adjusted revenue Aflac U.S.	1,687			1,640
Corporate and other (3)	104			95
Total adjusted revenues	5,594			5,537
Net investment gains (losses) (1),(2),(3)	(432		)	120
Total revenues	$	5,162		$	5,657

⁽¹⁾ Amortized hedge costs of $55 and $62 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

⁽²⁾ Net interest cash flows from derivatives associated with certain investment strategies of $(6) and $(7) for the three-month periods ended March 31, 2020 and 2019, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

⁽³⁾ Amortized hedge income of $29 and $20 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.

	Three Months Ended March 31,
(In millions)	2020			2019
Pretax adjusted earnings:
Aflac Japan (1),(2)	$	855		$	834
Aflac U.S.	326			323
Corporate and other (3),(4)	2			(18		)
Pretax adjusted earnings (5)	1,183			1,139
Net investment gains (losses) (1),(2),(3),(4)	(448		)	103
Other income (loss)	(15		)	0
Total earnings before income taxes	$	720		$	1,242
Income taxes applicable to pretax adjusted earnings	$	301		$	291
Effect of foreign currency translation on after-tax adjusted earnings	9			(8		)

⁽¹⁾ Amortized hedge costs of $55 and $62 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

⁽²⁾ Net interest cash flows from derivatives associated with certain investment strategies of $(6) and $(7) for the three-month periods ended March 31, 2020 and 2019, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

⁽³⁾ Amortized hedge income of $29 and $20 for the three-month periods ended March 31, 2020, and 2019, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.

⁽⁴⁾ A gain of $16 and $17 for the three-month periods ended March 31, 2020, and 2019, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.

⁽⁵⁾ Includes $33 for the three-month periods ended March 31, 2020, and 2019, respectively, of interest expense on debt.

Assets were as follows:

(In millions)	March 31, 2020			December 31, 2019
Assets:
Aflac Japan		$	126,955		$	127,523
Aflac U.S.		20,526			20,945
Corporate and other		4,135			4,300
Total assets		$	151,616		$	152,768

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BENEFIT PLANS (Tables)

3 Months Ended

Mar. 31, 2020

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Schedule of Net Benefit Costs

Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statement of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) of $6 million and $5 million for the three-month periods ended March 31, 2020 and 2019, respectively. Total net periodic cost includes the following components:

	Three Months Ended March 31,
	Pension Benefits																Other
	Japan								U.S.								Postretirement Benefits
(In millions)	2020				2019				2020				2019				2020			2019
Components of net periodic benefit cost:
Service cost		$	6			$	5			$	7			$	6			$	0		$	0
Interest cost		1				1				8				9				0			0
Expected return on plan assets		(2		)		(2		)		(9		)		(7		)		0			0
Amortization of net actuarial loss		1				1				6				3				1			0
Net periodic (benefit) cost		$	6			$	5			$	12			$	11			$	1		$	0

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BUSINESS SEGMENT INFORMATION - Operations by Segment - Assets (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 151,616	$ 152,768
Aflac Japan
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	126,955	127,523
Aflac U.S.
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	20,526	20,945
Corporate and other
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 4,135	$ 4,300