10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2012

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)

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).            þ  Yes  ¨  No

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

Large accelerated filer  þ	Accelerated filer ¨
Non-accelerated filer    ¨ (Do not check if a smaller reporting company)	Smaller reporting company  ¨
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.

Class	April 27, 2012
Common Stock, $.10 Par Value	467,628,735

Aflac Incorporated and Subsidiaries

Quarterly Report on Form 10-Q

For the Quarter Ended March 31, 2012

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION:
Item 1.	Financial Statements (Unaudited)
	Review by Independent Registered Public Accounting Firm	1
	Report of Independent Registered Public Accounting Firm	2
	Consolidated Statements of Earnings   Three Months Ended March 31, 2012 and 2011	3
	Consolidated Statements of Comprehensive Income (Loss)   Three Months Ended March 31, 2012, and 2011	4
	Consolidated Balance Sheets   March 31, 2012 and December 31, 2011	5
	Consolidated Statements of Shareholders' Equity   Three Months Ended March 31, 2012, and 2011	7
	Consolidated Statements of Cash Flows   Three Months Ended March 31, 2012, and 2011	8
	Notes to the Consolidated Financial Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	48
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	84
Item 4.	Controls and Procedures	84
PART II.	OTHER INFORMATION:	85
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	85
Item 6.	Exhibits	86

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.

Review by Independent Registered Public Accounting Firm

The March 31, 2012, and 2011, consolidated financial statements included in this filing have been reviewed by KPMG LLP, an independent registered public accounting firm, in accordance with established professional standards and procedures for such a review.

The report of KPMG LLP commenting upon its review is included on the following page.

1

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Aflac Incorporated:

We have reviewed the consolidated balance sheet of Aflac Incorporated and subsidiaries (the Company) as of March 31, 2012, and the related consolidated statements of earnings, comprehensive income (loss), shareholders' equity and cash flows for the three-month periods ended March 31, 2012 and 2011. These consolidated financial statements are the responsibility of the Company's management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Aflac Incorporated and subsidiaries as of December 31, 2011, and the related consolidated statements of earnings, shareholders' equity, cash flows and comprehensive income (loss) for the year then ended (not presented herein); and in our report dated February 24, 2012, we expressed an unqualified opinion on those consolidated financial statements. Our report refers to a change in the method of evaluating the consolidation of variable interest entities (VIEs) and qualified special purpose entities (QSPEs) in 2010 and a change in the method of evaluating other-than-temporary impairments of debt securities in 2009. As described in Note 1, on January 1, 2012, the Company adopted amended accounting guidance on accounting for costs associated with acquiring or renewing insurance contracts on a retrospective basis resulting in a revision of the December 31, 2011, consolidated balance sheet. We have not audited and reported on the revised balance sheet reflecting the adoption of this new guidance.

Atlanta, Georgia

May 4, 2012

2

Aflac Incorporated and Subsidiaries

Consolidated Statements of Earnings

	Three Months Ended March 31,
(In millions, except for share and per-share amounts - Unaudited)	2012			2011
Revenues:
Premiums, principally supplemental health insurance	$	5,378		$	4,872
Net investment income	882			794
Realized investment gains (losses):
Other-than-temporary impairment losses realized	(203		)	(405		)
Sales and redemptions	78			(144		)
Derivative and other gains (losses)	80			(30		)
Total realized investment gains (losses)	(45		)	(579		)
Other income	25			30
Total revenues	6,240			5,117
Benefits and expenses:
Benefits and claims	3,646			3,222
Acquisition and operating expenses:
Amortization of deferred policy acquisition costs	287			261
Insurance commissions	435			422
Insurance expenses	564			534
Interest expense	57			45
Other operating expenses	49			42
Total acquisition and operating expenses	1,392			1,304
Total benefits and expenses	5,038			4,526
Earnings before income taxes	1,202			591
Income taxes	417			202
Net earnings	$	785		$	389
Net earnings per share:
Basic	$	1.68		$	.83
Diluted	1.68			.83
Weighted-average outstanding common shares used in computing earnings per share (In thousands):
Basic	465,887			468,012
Diluted	468,533			472,104
Cash dividends per share	$	.33		$	.30

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

See the accompanying Notes to the Consolidated Financial Statements.

3

Aflac Incorporated and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

	Three Months Ended March 31,
(In millions - Unaudited)	2012			2011
Net earnings	$	785		$	389
Other comprehensive income (loss) before income taxes:
Unrealized foreign currency translation gains (losses) during period	(100		)	4
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) on investment securities during period	324			(609		)
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings	129			527
Unrealized gains (losses) on derivatives during period	(12		)	(55		)
Pension liability adjustment during period	5			4
Total other comprehensive income (loss) before income taxes	346			(129		)
Income tax expense (benefit) related to items of other comprehensive income (loss)	311			9
Other comprehensive income (loss), net of income taxes	35			(138		)
Total comprehensive income (loss)	$	820		$	251

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

See the accompanying Notes to the Consolidated Financial Statements.

4

Aflac Incorporated and Subsidiaries

Consolidated Balance Sheets

(In millions - Unaudited)	March 31, 2012			December 31, 2011
Assets:
Investments and cash:
Securities available for sale, at fair value:
Fixed maturities (amortized cost $39,423 in 2012 and $40,534 in 2011)	$	41,276		$	42,222
Fixed maturities - consolidated variable interest entities (amortized cost $4,714 in 2012 and $4,822 in 2011)	5,246			5,350
Perpetual securities (amortized cost $4,299 in 2012 and $5,365 in 2011)	4,159			5,149
Perpetual securities - consolidated variable interest entities (amortized cost $1,223 in 2012 and $1,532 in 2011)	1,193			1,290
Equity securities (cost $21 in 2012 and $22 in 2011)	25			25
Securities held to maturity, at amortized cost:
Fixed maturities (fair value $47,943 in 2012 and $45,817 in 2011)	48,226			46,366
Fixed maturities - consolidated variable interest entities (fair value $501 in 2012 and $566 in 2011)	608			643
Other investments	161			168
Cash and cash equivalents	2,210			2,249
Total investments and cash	103,104			103,462
Receivables	744			680
Accrued investment income	746			802
Deferred policy acquisition costs	9,542			9,789
Property and equipment, at cost less accumulated depreciation	591			617
Other	825		(1)	887		(1)
Total assets	$	115,552		$	116,237

⁽¹⁾ Includes $271 in 2012 and $375 in 2011 of derivatives from consolidated variable interest entities

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

See the accompanying Notes to the Consolidated Financial Statements.

(continued)

5

Aflac Incorporated and Subsidiaries

Consolidated Balance Sheets (continued)

(In millions, except for share and per-share amounts - Unaudited)	March 31, 2012				December 31, 2011
Liabilities and shareholders’ equity:
Liabilities:
Policy liabilities:
Future policy benefits	$	76,332			$	79,278
Unpaid policy claims	3,885				3,981
Unearned premiums	1,854				1,704
Other policyholders’ funds	10,933				9,630
Total policy liabilities	93,004				94,593
Notes payable	3,964				3,285
Income taxes	2,599				2,308
Payables for return of cash collateral on loaned securities	193				838
Other	2,149			(2)	2,267			(2)
Commitments and contingent liabilities (Note 10)
Total liabilities	101,909				103,291
Shareholders’ equity:
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2012 and 2011; issued 664,437 shares in 2012 and 663,639 shares in 2011	66				66
Additional paid-in capital	1,433				1,408
Retained earnings	15,779				15,148
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains	718				984
Unrealized gains (losses) on investment securities:
Unrealized gains (losses) on securities not other-than-temporarily impaired	1,448				1,143
Unrealized gains (losses) on derivatives	1				9
Pension liability adjustment	(167		)		(171		)
Treasury stock, at average cost	(5,635		)		(5,641		)
Total shareholders’ equity	13,643				12,946
Total liabilities and shareholders’ equity	$	115,552			$	116,237

⁽²⁾ Includes $419 in 2012 and $531 in 2011 of derivatives from consolidated variable interest entities

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

See the accompanying Notes to the Consolidated Financial Statements.

6

Aflac Incorporated and Subsidiaries

Consolidated Statements of Shareholders’ Equity

	Three Months Ended March 31,
(In millions - Unaudited)	2012			2011
Common stock:
Balance, beginning of period	$	66		$	66
Balance, end of period	66			66
Additional paid-in capital:
Balance, beginning of period	1,408			1,320
Exercise of stock options	13			12
Share-based compensation	5			8
Gain (loss) on treasury stock reissued	7			10
Balance, end of period	1,433			1,350
Retained earnings:
Balance, beginning of period	15,148			13,787
Net earnings	785			389
Dividends to shareholders	(154		)	(141		)
Balance, end of period	15,779			14,035
Accumulated other comprehensive income (loss):
Balance, beginning of period	1,965			753
Unrealized foreign currency translation gains (losses) during period, net of income taxes:
Change in unrealized foreign currency translation gains (losses) during period, net of income taxes	(266		)	(55		)
Unrealized gains (losses) on investment securities during period, net of income taxes and reclassification adjustments:
Change in unrealized gains (losses) on investment securities not other- than-temporarily impaired, net of income taxes	305			(52		)
Change in unrealized gains (losses) on other-than-temporarily impaired investment securities, net of income taxes	0			3
Unrealized gains (losses) on derivatives during period, net of income taxes	(8		)	(36		)
Pension liability adjustment during period, net of income taxes	4			2
Balance, end of period	2,000			615
Treasury stock:
Balance, beginning of period	(5,641		)	(5,386		)
Purchases of treasury stock	(10		)	(184		)
Cost of shares issued	16			14
Balance, end of period	(5,635		)	(5,556		)
Total shareholders’ equity	$	13,643		$	10,510

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

See the accompanying Notes to the Consolidated Financial Statements.

7

Aflac Incorporated and Subsidiaries

Consolidated Statements of Cash Flows

	Three Months Ended March 31,
(In millions - Unaudited)	2012			2011
Cash flows from operating activities:
Net earnings	$	785		$	389
Adjustments to reconcile net earnings to net cash provided by operating activities:
Change in receivables and advance premiums	1,587			461
Increase in deferred policy acquisition costs	(141		)	(99		)
Increase in policy liabilities	1,292			951
Change in income tax liabilities	(20		)	(152		)
Realized investment (gains) losses	45			579
Other, net	8			38
Net cash provided (used) by operating activities	3,556			2,167
Cash flows from investing activities:
Proceeds from investments sold or matured:
Securities available for sale:
Fixed maturities sold	226			891
Fixed maturities matured or called	705			556
Perpetual securities sold	552			61
Perpetual securities matured or called	378			0
Securities held to maturity:
Fixed maturities matured or called	536			127
Costs of investments acquired:
Securities available for sale:
Fixed maturities acquired	(1,025		)	(2,914		)
Securities held to maturity:
Fixed maturities acquired	(5,133		)	(769		)
Cash received (posted) as collateral on loaned securities, net	(645		)	54
Other, net	(30		)	(19		)
Net cash provided (used) by investing activities	(4,436		)	(2,013		)
Cash flows from financing activities:
Purchases of treasury stock	(10		)	(184		)
Proceeds from borrowings	749			0
Principal payments under debt obligations	(1		)	(1		)
Dividends paid to shareholders	(148		)	(135		)
Change in investment-type contracts, net	297			124
Treasury stock reissued	5			16
Other, net	9			9
Net cash provided (used) by financing activities	901			(171		)
Effect of exchange rate changes on cash and cash equivalents	(60		)	(16		)
Net change in cash and cash equivalents	(39		)	(33		)
Cash and cash equivalents, beginning of period	2,249			2,121
Cash and cash equivalents, end of period	$	2,210		$	2,088
Supplemental disclosures of cash flow information:
Income taxes paid	$	356		$	234
Interest paid	43			12
Impairment losses included in realized investment losses	203			405
Noncash financing activities:
Capitalized lease obligations	1			1
Treasury stock issued for:
Associate stock bonus	8			0
Shareholder dividend reinvestment	6			6
Share-based compensation grants	4			2

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

See the accompanying Notes to the Consolidated Financial Statements.

8

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 and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 77% and 74% of the Company's total revenues in the three-month periods ended March 31, 2012, and 2011, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 87% at March 31, 2012, and December 31, 2011.

Basis of Presentation

We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to GAAP issued by the FASB are derived from the FASB Accounting Standards Codification^TM (ASC). The preparation of financial statements in conformity with GAAP requires us to make estimates when recording transactions resulting from business operations based on currently available information. The most significant items on our balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments, deferred policy acquisition costs, 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, we believe the amounts provided are adequate.

The 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, 2012, and December 31, 2011, and the consolidated statements of earnings, comprehensive income (loss), shareholders' equity and cash flows for the three-month periods ended March 31, 2012, and 2011. 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 our annual report to shareholders for the year ended December 31, 2011.

Significant Accounting Policies

We have revised the accounting policy for deferred policy acquisition costs as a result of the adoption of amended accounting guidance effective January 1, 2012, and we have updated the accounting policy for income taxes. All other categories of significant accounting policies remain unchanged from our annual report to shareholders for the year ended December 31, 2011.

Deferred Policy Acquisition Costs: Certain direct and incremental costs of acquiring new business are deferred and amortized with interest over the premium payment periods in proportion to the ratio of annual premium income to total anticipated premium income. Anticipated premium income is estimated by using the same mortality, persistency and interest assumptions used in computing liabilities for future policy benefits. In this manner, the related acquisition expenses are matched with revenues. Deferred costs include the excess of current-year commissions over ultimate renewal-year commissions and certain incremental direct policy issue, underwriting and sales expenses. All of these incremental costs are directly related to successful policy acquisition.

9

For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. For internal replacement transactions where the resulting contract is substantially unchanged, the policy is accounted for as a continuation of the replaced contract. Unamortized deferred acquisition costs from the original policy continue to be amortized over the expected life of the new policy, and the costs of replacing the policy are accounted for as policy maintenance costs and expensed as incurred. Internal replacement transactions that result in a policy that is not substantially unchanged are accounted for as an extinguishment of the original policy and the issuance of a new policy. Unamortized deferred acquisition costs on the original policy that was replaced are immediately expensed, and the costs of acquiring the new policy are capitalized and amortized in accordance with our accounting policies for deferred acquisition costs.

Income Taxes:Income tax provisions are generally based on pretax earnings reported for financial statement purposes, which differ from those amounts used in preparing our income tax returns. Deferred income taxes are recognized for temporary differences between the financial reporting basis and income tax basis of assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the periods in which we expect the temporary differences to reverse. We record deferred tax assets for tax positions taken based on our assessment of whether the tax position is more likely than not to be sustained upon examination by taxing authorities. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized.

As discussed in the Translation of Foreign Currencies section in Note 1 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011, Aflac Japan maintains a dollar-denominated investment portfolio on behalf of Aflac U.S. While there are no translation effects to record in other comprehensive income, the deferred tax expense or benefit associated with foreign exchange gains or losses on the portfolio is recognized in other comprehensive income until the securities mature or are sold. Total income tax expense (benefit) related to items of other comprehensive income (loss) included tax expense of $157 million and $51 million during the three-month periods ended March 31, 2012 and 2011, respectively, for this dollar-denominated portfolio. Excluding these amounts from total taxes on other comprehensive income would result in an effective income tax rate on pretax other comprehensive income (loss) of 44.5% and 32.4% in the three-month periods ended March 31, 2012 and 2011, respectively.

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Presentation of comprehensive income: In June 2011, the FASB issued guidance to amend the presentation of comprehensive income.The amendment requires that all non-owner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. We adopted this guidance as of January 1, 2012 and elected the option to report comprehensive income in two separate but consecutive statements. The adoption of this guidance did not have an impact on our financial position or results of operations. The amendment also requires reclassification adjustments for items that are reclassified from other comprehensive income to net income to be presented in the statements where the components of net income and the components of other comprehensive income are presented; however, in December 2011, the FASB issued guidance to temporarily defer the effective date of this additional requirement.

Fair value measurements and disclosures: In May 2011, the FASB issued guidance to amend the fair value measurement and disclosure requirements. Most of the amendments are clarifications of the FASB's intent about the application of existing fair value measurement and disclosure requirements. Other amendments change a particular principle or requirement for measuring fair value or disclosing information about fair value measurements. The new fair value measurement disclosures include additional quantitative and qualitative disclosures for Level 3 measurements, including a qualitative sensitivity analysis of fair value to changes in unobservable inputs, and categorization by fair value hierarchy level for items for which the fair value is only disclosed. We adopted this guidance as of January 1, 2012. The adoption of this guidance impacted our financial statement disclosures, but it did not affect our financial position or results of operations.

Accounting for costs associated with acquiring or renewing insurance contracts: In October 2010, the FASB issued amended accounting guidance on accounting for costs associated with acquiring or renewing insurance contracts. Under the previous guidance, costs that varied with and were primarily related to the acquisition of a policy were

10

deferrable. Under the amended guidance, only incremental direct costs associated with the successful acquisition of a new or renewal contract may be capitalized, and direct-response advertising costs may be capitalized only if they meet certain criteria. This guidance is effective on a prospective or retrospective basis for interim and annual periods beginning after December 15, 2011. We retrospectively adopted this guidance as of January 1, 2012. The retrospective adoption of this accounting standard resulted in an after-tax cumulative reduction to retained earnings of $408 million and an after-tax cumulative reduction to unrealized foreign currency translation gains in accumulated other comprehensive income of $108 million, resulting in a total reduction to shareholders' equity of $516 million as of December 31, 2010. The adoption of this accounting standard had an immaterial impact on net income in 2011 and for all preceding years.

Recent accounting guidance not discussed above is not applicable or did not have an impact to our business.

For additional information on new accounting pronouncements and recent accounting guidance and their impact, if any, on our financial position or results of operations, see Note 1 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011.

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. Operating business segments that are not individually reportable are included in the "Other business segments" category.

We do not allocate corporate overhead expenses to business segments. We evaluate and manage our business segments using a financial performance measure called pretax operating earnings. Our definition of operating earnings excludes the following items from net earnings on an after-tax basis: realized investment gains/losses (securities transactions, impairments, and the impact of derivative and hedging activities) and nonrecurring items. We then exclude income taxes related to operations to arrive at pretax operating earnings. Information regarding operations by segment follows:

	Three Months Ended March 31,
(In millions)	2012			2011
Revenues:
Aflac Japan:
Earned premiums	$	4,148		$	3,702
Net investment income	730			649
Other income	16			20
Total Aflac Japan	4,894			4,371
Aflac U.S.:
Earned premiums	1,231			1,169
Net investment income	152			144
Other income	2			3
Total Aflac U.S.	1,385			1,316
Other business segments	14			15
Total business segment revenues	6,293			5,702
Realized investment gains (losses)	(45		)	(579		)
Corporate	68			61
Intercompany eliminations	(76		)	(67		)
Total revenues	$	6,240		$	5,117

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	Three Months Ended March 31,
(In millions)	2012			2011
Pretax earnings:
Aflac Japan	$	1,040		$	974
Aflac U.S.	271			251
Other business segments	0			0
Total business segment pretax operating earnings	1,311			1,225
Interest expense, noninsurance operations	(44		)	(41		)
Corporate and eliminations	(20		)	(14		)
Pretax operating earnings	1,247			1,170
Realized investment gains (losses)	(45		)	(579		)
Total earnings before income taxes	$	1,202		$	591
Income taxes applicable to pretax operating earnings	$	433		$	405
Effect of foreign currency translation on operating earnings	20			49

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

Assets were as follows:

	March 31,			December 31,
(In millions)	2012			2011
Assets:
Aflac Japan	$	100,133		$	101,692
Aflac U.S.	14,207			13,942
Other business segments	159			160
Total business segment assets	114,499			115,794
Corporate	18,322			16,182
Intercompany eliminations	(17,269		)	(15,739		)
Total assets	$	115,552		$	116,237

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

3.   INVESTMENTS

Investment Holdings

The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments are shown in the following tables.

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	March 31, 2012
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale,   carried at fair value:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	10,007	$	604	$	0	$	10,611
Mortgage- and asset-backed securities	846		37		1		882
Public utilities	3,933		65		220		3,778
Sovereign and supranational	1,612		69		19		1,662
Banks/financial institutions	4,163		202		287		4,078
Other corporate	5,998		165		359		5,804
Total yen-denominated	26,559		1,142		886		26,815
Dollar-denominated:
U.S. government and agencies	100		18		0		118
Municipalities	1,061		110		8		1,163
Mortgage- and asset-backed securities	307		75		0		382
Public utilities	3,130		452		25		3,557
Sovereign and supranational	454		93		4		543
Banks/financial institutions	3,410		266		45		3,631
Other corporate	9,116		1,249		52		10,313
Total dollar-denominated	17,578		2,263		134		19,707
Total fixed maturities	44,137		3,405		1,020		46,522
Perpetual securities:
Yen-denominated:
Banks/financial institutions	4,879		110		301		4,688
Other corporate	326		25		0		351
Dollar-denominated:
Banks/financial institutions	317		13		17		313
Total perpetual securities	5,522		148		318		5,352
Equity securities	21		4		0		25
Total securities available for sale	$	49,680	$	3,557	$	1,338	$	51,899

13

	March 31, 2012
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity,   carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	22,783	$	287	$	3	$	23,067
Municipalities	522		31		3		550
Mortgage- and asset-backed securities	117		4		0		121
Public utilities	5,189		175		157		5,207
Sovereign and supranational	3,970		149		166		3,953
Banks/financial institutions	11,559		174		855		10,878
Other corporate	4,694		148		174		4,668
Total yen-denominated	48,834		968		1,358		48,444
Total securities held to maturity	$	48,834	$	968	$	1,358	$	48,444

	December 31, 2011
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale,   carried at fair value:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	11,108	$	670	$	0	$	11,778
Mortgage- and asset-backed securities	912		43		1		954
Public utilities	3,850		59		226		3,683
Sovereign and supranational	1,704		87		16		1,775
Banks/financial institutions	4,312		74		359		4,027
Other corporate	6,213		120		459		5,874
Total yen-denominated	28,099		1,053		1,061		28,091
Dollar-denominated:
U.S. government and agencies	31		4		0		35
Municipalities	1,060		107		8		1,159
Mortgage- and asset-backed securities	310		74		0		384
Public utilities	3,052		517		27		3,542
Sovereign and supranational	449		89		5		533
Banks/financial institutions	3,324		223		121		3,426
Other corporate	9,031		1,433		62		10,402
Total dollar-denominated	17,257		2,447		223		19,481
Total fixed maturities	45,356		3,500		1,284		47,572
Perpetual securities:
Yen-denominated:
Banks/financial institutions	6,217		155		604		5,768
Other corporate	344		17		0		361
Dollar-denominated:
Banks/financial institutions	336		3		29		310
Total perpetual securities	6,897		175		633		6,439
Equity securities	22		4		1		25
Total securities available for sale	$	52,275	$	3,679	$	1,918	$	54,036

14

	December 31, 2011
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities held to maturity,   carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	18,775	$	297	$	1	$	19,071
Municipalities	553		35		4		584
Mortgage- and asset-backed securities	129		5		0		134
Public utilities	5,615		188		166		5,637
Sovereign and supranational	4,200		148		183		4,165
Banks/financial institutions	12,389		170		1,079		11,480
Other corporate	5,348		149		185		5,312
Total yen-denominated	47,009		992		1,618		46,383
Total securities held to maturity	$	47,009	$	992	$	1,618	$	46,383

The methods of determining the fair values of our investments in debt securities, perpetual securities and equity securities are described in Note 5.

During the first three months of 2012, we reclassified one investment from the held-to-maturity portfolio to the available-for-sale portfolio as a result of a significant decline in the issuer's credit worthiness. At the time of transfer, the security had an amortized cost of $122 million and an unrealized loss of $23 million. This investment was issued by Energias de Portugal SA (EDP), an integrated electric utility domiciled in Portugal.

During the first three months of 2011, we reclassified eight investments from the held-to-maturity portfolio to the available-for-sale portfolio as a result of a significant decline in the issuers' credit worthiness.  At the time of the transfer, the securities had an aggregate amortized cost of $1.6 billion and an aggregate unrealized loss of $270 million.  The securities transferred included our investments in the Republic of Tunisia that had an aggregate amortized cost of $769 million and four securities associated with financial institutions in Portugal and Ireland with an aggregate amortized cost of $631 million.  The investments from the financial institutions in Portugal were subsequently sold by the end of the third quarter of 2011.

Contractual and Economic Maturities

The contractual maturities of our investments in fixed maturities at March 31, 2012, were as follows:

15

	Aflac Japan				Aflac U.S.
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair   Value
Available for sale:
Due in one year or less	$	2,123	$	2,168	$	13	$	13
Due after one year through five years	2,223		2,330		358		387
Due after five years through 10 years	3,940		4,201		894		1,036
Due after 10 years	25,754		26,463		7,559		8,523
Mortgage- and asset-backed securities	1,108		1,209		45		56
Total fixed maturities available for sale	$	35,148	$	36,371	$	8,869	$	10,015
Held to maturity:
Due in one year or less	$	460	$	463	$	0	$	0
Due after one year through five years	1,085		1,161		0		0
Due after five years through 10 years	3,226		3,544		0		0
Due after 10 years	43,946		43,155		0		0
Mortgage- and asset-backed securities	117		121		0		0
Total fixed maturities held to maturity	$	48,834	$	48,444	$	0	$	0

At March 31, 2012, the Parent Company had a portfolio of investment-grade available-for-sale fixed-maturity securities totaling $120 million at amortized cost and $136 million at fair value, which is not included in the table above.

Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties.

The majority of our perpetual securities are subordinated to other debt obligations of the issuer, but rank higher than the issuer's equity securities. Perpetual securities have characteristics of both debt and equity investments, along with unique features that create economic maturity dates for the securities. Although perpetual securities have no contractual maturity date, they have stated interest coupons that were fixed at their issuance and subsequently change to a floating short-term interest rate of 125 to more than 300 basis points above an appropriate market index, generally by the 25th year after issuance, thereby creating an economic maturity date. The economic maturities of our investments in perpetual securities, which were all reported as available for sale at March 31, 2012, were as follows:

	Aflac Japan				Aflac U.S.
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair   Value
Due in one year or less	$	304	$	308	$	0	$	0
Due after one year through five years	1,167		1,223		5		5
Due after five years through 10 years	521		551		0		0
Due after 10 years	3,353		3,089		172		176
Total perpetual securities available for sale	$	5,345	$	5,171	$	177	$	181

Investment Concentrations

Our investment discipline begins with a top-down approach for each investment opportunity we consider. Consistent with that approach, we first approve each country in which we invest. In our approach to sovereign analysis, we consider the political, legal and financial context of the sovereign entity in which an issuer is domiciled and operates. Next we approve the issuer's industry sector, considering such factors as the stability of results and the importance of the sector to the overall economy. Specific credit names within approved countries and industry sectors are evaluated for their market position and specific strengths and potential weaknesses. Structures in which we invest are chosen for specific portfolio management purposes, including asset/liability management, portfolio diversification and net investment income.

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Banks and Financial Institutions

After Japan government bonds (JGBs), our second largest investment concentration as of March 31, 2012, was banks and financial institutions. Within the countries we approve for investment opportunities, we primarily invest in financial institutions that are strategically crucial to each approved country's economy. The bank and financial institution sector is a highly regulated industry and plays a strategic role in the global economy. We achieve some degree of diversification in the bank and financial institution sector through a geographically diverse universe of credit exposures. Within this sector, the more significant concentration of our credit risk by geographic region or country of issuer at March 31, 2012, based on amortized cost, was: Europe, excluding the United Kingdom (35%); United States (23%); United Kingdom (9%); Japan (8%); and other (25%).

Our total investments in the bank and financial institution sector, including those classified as perpetual securities, were as follows:

	March 31, 2012						December 31, 2011
	Total Investments in Banks and Financial Institutions Sector (in millions)			Percentage of Total Investment Portfolio			Total Investments in Banks and Financial Institutions Sector (in millions)			Percentage of Total Investment     Portfolio
Fixed maturities:
Amortized cost		$	19,132		19	%		$	20,025		20	%
Fair value		18,587			19			18,933			19
Perpetual securities:
Upper Tier II:
Amortized cost		$	3,251		3	%		$	4,285		5	%
Fair value		3,193			3			4,244			4
Tier I:
Amortized cost		1,945			2			2,268			2
Fair value		1,808			2			1,834			2
Total:
Amortized cost		$	24,328		24	%		$	26,578		27	%
Fair value		23,588			24			25,011			25

Derisking

During the three-month period ended March 31, 2012, we continued our efforts which began in the first quarter of 2011 of pursuing strategic investment activities to lower the risk profile of our investment portfolio. Our primary focus during the first quarter of 2012 was on reducing our exposure to perpetual and other subordinated securities of European issuers, particularly in the financial sector. See further details in the Realized Investment Gains and Losses section below.

Realized Investment Gains and Losses

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

17

	Three Months Ended March 31,
(In millions)	2012			2011
Realized investment gains (losses) on securities:
Fixed maturities:
Available for sale:
Gross gains from sales	$	14		$	26
Gross losses from sales	(1		)	(187		)
Net gains (losses) from redemptions	0			7
Other-than-temporary impairment losses	(63		)	(404		)
Total fixed maturities	(50		)	(558		)
Perpetual securities:
Available for sale:
Gross gains from sales	70			6
Gross losses from sales	(65		)	(2		)
Net gains (losses) from redemptions	60			0
Other-than-temporary impairment losses	(140		)	0
Total perpetual securities	(75		)	4
Equity securities:
Other-than-temporary impairment losses	0			(1		)
Total equity securities	0			(1		)
Derivatives and other:
Derivative gains (losses)	80			(30		)
Other	0			6
Total derivatives and other	80			(24		)
Total realized investment gains (losses)	$	(45	)	$	(579	)

During the three-month period ended March 31, 2012, sales and redemptions of securities generated a net realized investment gain. This net gain primarily resulted from both the redemption of a previously impaired perpetual security and sales related to our implemented plan to reduce the risk exposure in our investment portfolio (see the Investment Concentrations section above for more information). The other-than-temporary losses that we recognized were largely composed of impairments for two Tier I securities that were sold subsequent to the end of the quarter.

During the three-month period ended March 31, 2011, we recognized other-than-temporary impairment losses and realized investment losses from the sale of securities, primarily a result of an implemented plan to reduce the risk exposure in our investment portfolio coupled with the continued decline in the credit worthiness of certain issuers.

Other-than-temporary Impairment

The fair value of our debt and perpetual security investments fluctuates based on changes in credit spreads in the global financial markets. Credit spreads are most impacted by market rates of interest, the general and specific credit environment and global market liquidity. We believe that fluctuations in the fair value of our investment securities related to changes in credit spreads have little bearing on whether our investment is ultimately recoverable. Generally, we consider such declines in fair value to be temporary even in situations where an investment remains in an unrealized loss position for a year or more.

However, in the course of our credit review process, we may determine that it is unlikely that we will recover our investment in an issuer due to factors specific to an individual issuer, as opposed to general changes in global credit spreads. In this event, we consider such a decline in the investment's fair value, to the extent below the investment's cost or amortized cost, to be an other-than-temporary impairment of the investment and write the investment down to its fair value.

In addition to the usual investment risk associated with a debt instrument, our perpetual security holdings may be

18

subject to the risk of nationalization of their issuers in connection with capital injections from an issuer's sovereign government. We cannot be assured that such capital support will extend to all levels of an issuer's capital structure. In addition, certain governments or regulators may consider imposing interest and principal payment restrictions on issuers of hybrid securities to preserve cash and build capital. In addition to the cash flow impact that additional deferrals would have on our portfolio, such deferrals could result in ratings downgrades of the affected securities, which in turn could impair the fair value of the securities and increase our regulatory capital requirements. We take factors such as these into account in our credit review process.

When determining our intention to sell a security prior to recovery of its fair value to amortized cost, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio and sales of securities to meet cash flow needs. We perform ongoing analyses of our liquidity needs, which includes cash flow testing of our policy liabilities, debt maturities, projected dividend payments and other cash flow and liquidity needs. Our cash flow testing includes extensive duration matching of our investment portfolio and policy liabilities. Based on our analyses, we have concluded that we have sufficient excess cash flows to meet our liquidity needs without liquidating any of our investments prior to their maturity. In years prior to 2011, provided that our credit review process resulted in a conclusion that we would collect all of our cash flows and recover our investment in an issuer and the investment was within our investment risk exposure guidelines, we generally did not sell investments prior to their maturity. However, starting in the fourth quarter of 2011, we determined that certain securities were no longer within our investment risk exposure guidelines and have started to reposition our security portfolio in an effort to enhance diversification and our credit profile by reducing our risk exposure through opportunistic investment transactions.

The following table details our pretax other-than-temporary impairment losses by investment category that resulted from our impairment evaluation process.

	Three Months Ended March 31,
(In millions)	2012			2011
Perpetual securities	$	140		$	0
Corporate bonds	63			397
Mortgage- and asset-backed securities	0			6
Municipalities	0			1
Equity securities	0			1
Total other-than-temporary impairment losses realized	$	203	(1)	$	405	(2)

⁽¹⁾ Includes $28 for credit-related impairments and $175 from change in intent to sell securities

⁽²⁾ Consisted completely of credit-related impairments

Unrealized Investment Gains and Losses

Effect on Shareholders’ Equity

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

(In millions)	March 31, 2012			December 31, 2011
Unrealized gains (losses) on securities available for sale	$	2,219		$	1,761
Unamortized unrealized gains on securities transferred to held to maturity	29			34
Deferred income taxes	(800		)	(652		)
Shareholders’ equity, unrealized gains (losses) on investment securities	$	1,448		$	1,143

Gross Unrealized Loss Aging

The following tables show the fair value and gross unrealized losses of our available-for-sale and held-to-maturity investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

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	March 31, 2012
	Total				Less than 12 months				12 months or longer
(In millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
Japan government and agencies:
Yen-denominated	$	3,674	$	3	$	3,597	$	2	$	77	$	1
Municipalities:
Dollar-denominated	60		8		29		1		31		7
Yen-denominated	58		3		0		0		58		3
Mortgage- and asset- backed securities:
Yen-denominated	143		1		0		0		143		1
Public utilities:
Dollar-denominated	439		25		284		11		155		14
Yen-denominated	4,779		377		2,094		131		2,685		246
Sovereign and supranational:
Dollar-denominated	68		4		17		0		51		4
Yen-denominated	2,589		185		592		17		1,997		168
Banks/financial institutions:
Dollar-denominated	593		45		219		9		374		36
Yen-denominated	9,247		1,142		926		11		8,321		1,131
Other corporate:
Dollar-denominated	1,286		52		1,112		28		174		24
Yen-denominated	5,523		533		1,606		69		3,917		464
Total fixed maturities	28,459		2,378		10,476		279		17,983		2,099
Perpetual securities:
Dollar-denominated	116		17		60		0		56		17
Yen-denominated	2,036		301		619		42		1,417		259
Total perpetual securities	2,152		318		679		42		1,473		276
Equity securities	4		0		2		0		2		0
Total	$	30,615	$	2,696	$	11,157	$	321	$	19,458	$	2,375

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	December 31, 2011
	Total				Less than 12 months				12 months or longer
(In millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
Japan government and agencies:
Yen-denominated	$	940	$	1	$	859	$	1	$	81	$	0
Municipalities:
Dollar-denominated	54		8		22		1		32		7
Yen-denominated	60		4		0		0		60		4
Mortgage- and asset- backed securities:
Yen-denominated	151		1		0		0		151		1
Public utilities:
Dollar-denominated	295		27		110		3		185		24
Yen-denominated	4,995		392		2,404		141		2,591		251
Sovereign and supranational:
Dollar-denominated	66		5		34		2		32		3
Yen-denominated	2,349		199		749		62		1,600		137
Banks/financial institutions:
Dollar-denominated	770		121		391		56		379		65
Yen-denominated	10,175		1,438		1,639		46		8,536		1,392
Other corporate:
Dollar-denominated	834		62		639		27		195		35
Yen-denominated	6,106		644		2,523		110		3,583		534
Total fixed maturities	26,795		2,902		9,370		449		17,425		2,453
Perpetual securities:
Dollar-denominated	217		29		109		4		108		25
Yen-denominated	2,290		604		630		69		1,660		535
Total perpetual securities	2,507		633		739		73		1,768		560
Equity securities	8		1		6		1		2		0
Total	$	29,310	$	3,536	$	10,115	$	523	$	19,195	$	3,013

Analysis of Securities in Unrealized Loss Positions

The unrealized losses on our investments have been primarily related to changes in risk-free interest rates, foreign exchange rates or the general widening of credit spreads rather than specific issuer credit-related events. In addition, because we do not intend to sell and do not believe it is likely that we will be required to sell these investments before a recovery of fair value to amortized cost, we do not consider any of these investments to be other-than-temporarily impaired as of and for the three-month period ended March 31, 2012. The following summarizes our evaluation of investment categories with significant unrealized losses and securities that were rated below investment grade as of March 31, 2012.

Public Utilities

As of March 31, 2012, 69% of the unrealized losses on investments in the public utilities sector was related to investments that were investment grade, compared with 77% at December 31, 2011. For any credit-related declines in fair value, we perform a more focused review of the related issuer's credit ratings, financial statements and other available financial data, timeliness of payment, competitive environment and any other significant data related to the issuer. From those reviews, we evaluate the issuer's continued ability to service our investment. We have determined that the majority of the unrealized losses on the investments in the public utilities sector was caused by a decline in creditworthiness of a couple issuers in this sector. Also impacting the unrealized losses in the public utilities sector was widening credit spreads.

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Based on our credit analysis, we believe that the issuers of our investments in this sector have the ability to service their obligations to us.

Sovereign and Supranational

As of March 31, 2012, 94% of the unrealized losses on investment securities in the sovereign and supranational sector were related to investments that were investment grade, compared with 100% at December 31, 2011. For any credit-related declines in fair value, we perform a more focused review of the related issuers' credit ratings, financial statements and other available financial data, timeliness of payment, gross domestic product growth projections, balance of payments, foreign currency reserves, and any other significant data related to the issuers. From those reviews, we evaluate the issuers' continued ability to service our investments. We have determined that the majority of the unrealized losses on the investments in the sovereign and supranational sector was caused by a decline in creditworthiness of certain issuers in this sector. Also impacting the unrealized losses in the sovereign and supranational sector was widening credit spreads. Based on our credit analysis, we believe that the issuers of our investments in this sector have the ability to service their obligations to us.

Bank and Financial Institution Investments

Our efforts during 2011 and the three-month period ended March 31, 2012 to reduce risk in our investment portfolio included sales and impairments of certain investments in banks and financial institutions, with an emphasis on reducing our exposure to European financial institutions. The following table shows the composition of our investments in an unrealized loss position in the bank and financial institution sector by fixed-maturity securities and perpetual securities. The table reflects those securities in that sector that were in an unrealized loss position as a percentage of our total investment portfolio in an unrealized loss position and their respective unrealized losses as a percentage of total unrealized losses.

	March 31, 2012						December 31, 2011
	Percentage of Total Investments in an Unrealized Loss Position			Percentage of Total Unrealized Losses			Percentage of Total Investments in an Unrealized Loss Position			Percentage of Total Unrealized Losses
Fixed maturities		32	%		44	%		37	%		44	%
Perpetual securities:
Upper Tier II		4			5			4			6
Tier I		3			6			5			12
Total perpetual securities		7			11			9			18
Total		39	%		55	%		46	%		62	%

As of March 31, 2012, 85% of the $1.5 billion in unrealized losses on investments in the bank and financial institution sector, including perpetual securities, was related to investments that were investment grade, compared with 80% at December 31, 2011. Of the $12.0 billion in total investments, at fair value, in this sector in an unrealized loss position at March 31, 2012, only $629 million($227 million in unrealized losses) was below investment grade. Three issuers of investments comprised nearly 99% of the $227 million unrealized loss. The remaining unrealized loss comprised one investment with an unrealized loss of less than $3 million .

We conduct our own independent credit analysis for investments in the bank and financial institution sector. Our assessment includes analysis of financial information, as well as consultation with the issuers from time to time. Based on our credit analysis, we have determined that the majority of the unrealized losses on the investments in this sector was caused by widening credit spreads, the downturn in the global economic environment and, to a lesser extent, changes in foreign exchange rates. Unrealized gains or losses related to prevailing interest rate environments are impacted by the remaining time to maturity of an investment. Assuming no credit-related factors develop, as investments near maturity, the unrealized gains or losses can be expected to diminish. Based on our credit analysis, we believe that the issuers of our investments in this sector have the ability to service their obligations to us.

Other Corporate Investments

As of March 31, 2012, 75% of the unrealized losses on investments in the other corporate sector was related to

22

investments that were investment grade, compared with 73% at December 31, 2011. For any credit-related declines in fair value, we perform a more focused review of the related issuer's credit ratings, financial statements and other available financial data, timeliness of payment, competitive environment and any other significant data related to the issuer. From that review, we evaluate the issuer's continued ability to service our investment. We have determined that the majority of the unrealized losses on the investments in the other corporate sector were caused by widening credit spreads. Also impacting the unrealized losses in this sector is the decline in creditworthiness of certain issuers in the other corporate sector. Based on our credit analysis, we believe that the issuers of our investments in this sector have the ability to service their obligations to us.

Perpetual Securities

As of March 31, 2012, 91% of the unrealized losses on investments in perpetual securities was related to investments that were investment grade, compared with 73% at December 31, 2011. The majority of our investments in Upper Tier II and Tier I perpetual securities were in highly rated global financial institutions. Upper Tier II securities have more debt-like characteristics than Tier I securities and are senior to Tier I securities, preferred stock, and common equity of the issuer. Conversely, Tier I securities have more equity-like characteristics, but are senior to the common equity of the issuer. They may also be senior to certain preferred shares, depending on the individual security, the issuer's capital structure and the regulatory jurisdiction of the issuer.

Details of our holdings of perpetual securities were as follows:

Perpetual Securities

		March 31, 2012							December 31, 2011
(In millions)	Credit Rating	Amortized Cost		Fair Value		Unrealized Gain (Loss)			Amortized Cost		Fair Value		Unrealized Gain (Loss)
Upper Tier II:
	AA	$	80	$	81	$	1		$	196	$	204	$	8
	A	530		544		14			2,108		2,046		(62		)
	BBB	2,641		2,569		(72		)	1,791		1,804		13
	BB or lower	0		0		0			190		190		0
Total Upper Tier II		3,251		3,194		(57		)	4,285		4,244		(41		)
Tier I:
	A	60		60		0			0		0		0
	BBB	1,350		1,238		(112		)	1,684		1,417		(267		)
	BB or lower	535		509		(26		)	584		417		(167		)
Total Tier I		1,945		1,807		(138		)	2,268		1,834		(434		)
Other subordinated - non-banks	BBB	326		351		25			344		361		17
Total		$	5,522	$	5,352	$	(170	)	$	6,897	$	6,439	$	(458	)

An aspect of our efforts during 2011 and the three-month period ended March 31, 2012 to reduce risk in our investment portfolio included sales and impairments of certain investments in perpetual securities. With the exception of the Icelandic bank securities that we completely impaired in 2008, none of the perpetual securities we own were in default on interest and principal payments at March 31, 2012. During the second quarter of 2011, we wrote off accrued interest income and stopped accruing further interest income for the Dexia S.A. Upper Tier II perpetual securities, which had a deferred coupon and were impaired during that quarter, and we recognized additional impairments on those securities in the third and fourth quarters of 2011. We collected the deferred coupon upon the sale of those securities as part of our derisking investment activities in the first quarter of 2012. Based on amortized cost as of March 31, 2012, the geographic breakdown of our perpetual securities by issuer was as follows: European countries, excluding the United Kingdom, (69%); the United Kingdom (11%); Japan (12%); and other (8%). To determine any credit-related declines in fair value, we perform a more focused review of the related issuer's credit ratings, financial statements and other available financial data, timeliness of payment, competitive environment and any other significant data related to the issuer. From that review, we evaluate the issuer's continued ability to service our investment.

We have determined that the majority of our unrealized losses in the perpetual security category was principally due to widening credit spreads, largely as the result of the contraction of liquidity in the capital markets. Based on our reviews,

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we concluded that the ability of the issuers to service our investments has not been compromised by these factors. Unrealized gains or losses related to prevailing interest rate environments are impacted by the remaining time to maturity of an investment. Assuming no credit-related factors develop, as the investments near economic maturity, the unrealized gains or losses can be expected to diminish. Based on our credit analyses, we believe that the issuers of our investments in this sector have the ability to service their obligations to us.

Variable Interest Entities (VIEs)

The following table details our investments in VIEs.

Investments in Variable Interest Entities

	March 31, 2012				December 31, 2011
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
VIEs:
VIEs consolidated	$	6,545	$	6,940	$	6,997	$	7,206
VIEs not consolidated	12,795		12,832		13,753		13,714
Total VIEs	$	19,340	$	19,772	$	20,750	$	20,920

As a condition to our involvement or investment in a VIE, we enter into certain protective rights and covenants that preclude changes in the structure of the VIE that would alter the creditworthiness of our investment or our beneficial interest in the VIE.

Our involvement with all of the VIEs in which we have an interest is passive in nature, and we are not the arranger of these entities. We have not been involved in establishing these entities, except as it relates to our review and evaluation of the structure of these VIEs in the normal course of our investment decision-making process. Further, we have not been nor are we required to purchase any securities issued in the future by these VIEs.

Our ownership interest in the VIEs is limited to holding the obligations issued by them. All of the VIEs in which we invest are static with respect to funding and have no ongoing forms of funding after the initial funding date. We have no direct or contingent obligations to fund the limited activities of these VIEs, nor do we have any direct or indirect financial guarantees related to the limited activities of these VIEs. We have not provided any assistance or any other type of financing support to any of the VIEs we invest in, nor do we have any intention to do so in the future. The weighted-average lives of our notes are very similar to the underlying collateral held by these VIEs where applicable.

Our risk of loss related to our interests in any of our VIEs is limited to our investment in the debt securities issued by them.

VIEs-Consolidated

We are substantively the only investor in the consolidated VIEs listed in the table above. As the sole investor in these VIEs, we have the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and are therefore considered to be the primary beneficiary of the VIEs that we consolidate. We also participate in substantially all of the variability created by these VIEs. The activities of these VIEs are limited to holding debt and perpetual securities and interest rate, foreign currency, and/or credit default swaps (CDSs), as appropriate, and utilizing the cash flows from these securities to service our investment. Neither we nor any of our 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, we are not a direct counterparty to the swap contracts and have no control over them. Our loss exposure to these VIEs is limited to our original investment. Our 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 our investment in senior secured bank loans through a unit trust structure that we began investing in during the second quarter of 2011, the underlying collateral assets and funding of our consolidated VIEs are generally static in nature and the underlying collateral and the reference corporate entities covered by any CDS contracts were all investment grade at the time of issuance.

We are exposed to credit losses within any consolidated collateralized debt obligations (CDOs) that could result in principal losses to our investments. We have mitigated our risk of credit loss through the structure of the VIE, which contractually requires the subordinated tranches within these VIEs to absorb the majority of the expected losses from the

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underlying credit default swaps. We currently own only senior CDO tranches. Based on our statistical analysis models, each of these VIEs can sustain a reasonable number of defaults in the underlying reference corporate entities in the CDSs with no loss to our investment.

VIEs-Not Consolidated

The VIEs that we are not required to consolidate are investments that are limited to loans in the form of debt obligations from the VIEs that are irrevocably and unconditionally guaranteed by their corporate parents. These VIEs are the primary financing vehicle used by their corporate sponsors to raise financing in the international capital markets. The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them. We do not have the power to direct the activities that most significantly impact the entity's economic performance, nor do we have (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. As such, we are not the primary beneficiary of these VIEs and are therefore not required to consolidate them. These VIE investments are comprised of securities from 161 separate issuers which have an average credit rating of A.

Securities Lending

We lend fixed-maturity securities to financial institutions in short-term security-lending transactions. These short-term security-lending arrangements increase investment income with minimal risk. Our security lending policy requires that the fair value of the securities and/or unrestricted cash received as collateral be 102% or more of the fair value of the loaned securities. The following table presents our security loans outstanding and the corresponding collateral held:

(In millions)	March 31, 2012		December 31, 2011
Security loans outstanding, fair value	$	188	$	812
Cash collateral on loaned securities	193		838

4.  DERIVATIVE INSTRUMENTS

We do not use derivative financial instruments for trading purposes, nor do we engage in leveraged derivative transactions. The majority of our freestanding derivatives are interest rate, foreign currency and credit default swaps that are associated with investments in special-purpose entities, including VIEs where we are the primary beneficiary. The remaining derivatives are the interest rate swap associated with our variable interest rate yen-denominated debt and cross-currency interest rate swaps associated with our senior notes due in February 2017 and February 2022.

Derivative Types

Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. Interest rate swaps are primarily used to convert interest receipts on floating-rate fixed-maturity securities contracts to fixed rates. These derivatives are predominantly used to better match cash receipts from assets with cash disbursements required to fund liabilities.

Credit default swaps are used to assume credit risk related to an individual security or an index. These contracts entitle the consolidated VIE to receive a periodic fee in exchange for an obligation to compensate the derivative counterparty should the referenced security issuers experience a credit event, as defined in the contract. The consolidated VIE is also exposed to credit risk due to embedded derivatives associated with credit-linked notes.

Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. 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 our Aflac Japan portfolio to convert foreign-denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations. We also use foreign currency swaps to convert certain of our dollar-denominated principal and interest senior note obligations into yen-denominated obligations.

Credit Risk Assumed through Derivatives

For the interest rate, foreign currency, and credit default swaps associated with our VIE investments for which we are

25

the primary beneficiary, we bear the risk of foreign exchange or interest rate loss due to counterparty default even though we are not a direct counterparty to those contracts. We are exposed to credit risk in the event of nonperformance by counterparties to the cross-currency swaps related to our senior notes due in February 2017 and 2022 and the interest rate swap on our variable interest rate yen-denominated Samurai notes. The risk of counterparty default for both the VIE and senior note swaps is mitigated by collateral posting requirements the counterparty must meet. The counterparties to these swap agreements are financial institutions with the following credit ratings.

	March 31, 2012							December 31, 2011
	Fair Value				Notional Amount			Fair Value				Notional Amount
(In millions)	of Swaps				of Swaps			of Swaps				of Swaps
Counterparty credit rating:
AA		$	14			$	272		$	0			$	0
A		(124		)		5,756			(156		)		5,491
Total		$	(110	)		$	6,028		$	(156	)		$	5,491

Certain of our consolidated VIEs have credit default swap contracts that require them to assume credit risk from an asset pool. Those consolidated VIEs will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment by delivery of associated collateral, which consists of highly rated asset-backed securities, if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced obligations. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The diversified portfolios of corporate issuers are established within sector concentration limits.

The following tables present the maximum potential risk, fair value, weighted-average years to maturity, and underlying referenced credit obligation type for credit default swaps within consolidated VIE structures.

March 31, 2012
		Less than one year				One to three years				Three to five years						Five to ten years						Total
(In millions)	Credit Rating	Maximum potential risk		Estimated fair value		Maximum potential risk		Estimated fair value		Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value
Index exposure:
Corporate bonds:
	A	$	0	$	0	$	0	$	0	$	(139	)	$	(4	)	$	0		$	0		$	(139	)	$	(4	)
	BB or lower	0		0		0		0		0			0			(228		)	(93		)	(228		)	(93		)
Total		$	0	$	0	$	0	$	0	$	(139	)	$	(4	)	$	(228	)	$	(93	)	$	(367	)	$	(97	)

December 31, 2011
		Less than one year				One to three years				Three to five years						Five to ten years						Total
(In millions)	Credit Rating	Maximum potential risk		Estimated fair value		Maximum potential risk		Estimated fair value		Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value
Index exposure:
Corporate bonds:
	A	$	0	$	0	$	0	$	0	$	(146	)	$	(17	)	$	0		$	0		$	(146	)	$	(17	)
	BB or lower	0		0		0		0		0			0			(235		)	(113		)	(235		)	(113		)
Total		$	0	$	0	$	0	$	0	$	(146	)	$	(17	)	$	(235	)	$	(113	)	$	(381	)	$	(130	)

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Derivative Balance Sheet Classification

The tables below summarize the balance sheet classification of our 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. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated. Notional amounts are not reflective of credit risk.

	March 31, 2012
(In millions)	Net Derivatives					Asset Derivatives		Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount		Fair Value			Fair Value		Fair Value
Cash flow hedges:
Interest rate swaps	$	67	$	0		$	0	$	0
Foreign currency swaps	75		24			24		0
Total cash flow hedges	142		24			24		0
Non-qualifying strategies:
Interest rate swaps	367		28			31		(3		)
Foreign currency swaps	5,152		(65		)	263		(328		)
Credit default swaps	367		(97		)	0		(97		)
Total non-qualifying strategies	5,886		(134		)	294		(428		)
Total cash flow hedges and non-qualifying strategies	$	6,028	$	(110	)	$	318	$	(428	)
Balance Sheet Location
Other assets	$	2,436	$	318		$	318	$	0
Other liabilities	3,592		(428		)	0		(428		)
Total derivatives	$	6,028	$	(110	)	$	318	$	(428	)
	December 31, 2011
(In millions)	Net Derivatives					Asset Derivatives		Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount		Fair Value			Fair Value		Fair Value
Cash flow hedges:
Interest rate swaps	$	71	$	0		$	0	$	0
Foreign currency swaps	75		36			36		0
Total cash flow hedges	146		36			36		0
Non-qualifying strategies:
Interest rate swaps	381		30			34		(4		)
Foreign currency swaps	4,583		(92		)	305		(397		)
Credit default swaps	381		(130		)	0		(130		)
Total non-qualifying strategies	5,345		(192		)	339		(531		)
Total cash flow hedges and non-qualifying strategies	$	5,491	$	(156	)	$	375	$	(531	)
Balance Sheet Location
Other assets	$	1,794	$	375		$	375	$	0
Other liabilities	3,697		(531		)	0		(531		)
Total derivatives	$	5,491	$	(156	)	$	375	$	(531	)

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Hedging

Derivative Hedges

Certain of our consolidated VIEs have interest rate and/or foreign currency swaps that qualify for hedge accounting treatment. For those that have qualified, we have designated the derivative 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). We expect to continue this hedging activity for a weighted-average period of approximately 14 years. The remaining derivatives in our consolidated VIEs that have not qualified for hedge accounting have been designated as held for other investment purposes (“non-qualifying strategies”).

We have an interest rate swap agreement related to our 5.5 billion yen variable interest rate Samurai notes that we issued in July 2011 (see Note 6). By entering into this contract, we swapped the variable interest rate to a fixed interest rate of 1.475%. We have designated this interest rate swap as a hedge of the variability in our interest cash flows associated with the variable interest rate Samurai notes. The notional amount and terms of the swap match the principal amount and terms of the variable interest rate Samurai notes, and the swap had no value at inception. Changes in the fair value of the swap contract are recorded in other comprehensive income so long as the hedge is deemed effective. Should any portion of the hedge be deemed ineffective, that value would be reported in net earnings.

Hedge Documentation and Effectiveness Testing

To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in cash flow of the hedged item. At hedge inception, we formally document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as cash flow hedges to specific assets or liabilities on the statement of financial position or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. At the hedge's inception and on an ongoing quarterly basis, we also formally assess whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in cash flows of hedged items. Hedge effectiveness is assessed using qualitative and quantitative methods. Qualitative methods may include the comparison of critical terms of the derivative to the hedged item. Quantitative methods include regression or other statistical analysis of changes in cash flows associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships is measured each reporting period using the “Hypothetical Derivative Method.”

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current earnings as a component of realized investment gains (losses). All components of each derivative's gain or loss were included in the assessment of hedge effectiveness.

Discontinuance of Hedge Accounting

We discontinue hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item; (2) the derivative is de-designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised.

When hedge accounting is discontinued on a cash-flow hedge, including those where the derivative is sold, terminated or exercised, amounts previously deferred in other comprehensive income are reclassified into earnings when earnings are impacted by the cash flow of the hedged item.

Cash Flow Hedges

The following table presents the components of the gain or loss on derivatives that qualified as cash flow hedges.

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Derivatives in Cash Flow Hedging Relationships

(In millions)	Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)				Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion)
Three Months Ended March 31, 2012:
Interest rate swaps		$	0			$	0
Foreign currency swaps		(12		)		0
Total		$	(12	)		$	0
Three Months Ended March 31, 2011:
Interest rate swaps		$	1			$	0
Foreign currency swaps		(56		)		(4		)
Total		$	(55	)		$	(4	)

In the third quarter of 2011, we de-designated certain of the foreign currency swaps with notional values totaling $500 million used in cash flow hedging strategies as a result of determining that these swaps would no longer be highly effective in offsetting the cash flows of the hedged item. As a result, the net gain recorded in accumulated other comprehensive income for these swaps that are no longer eligible for hedge accounting is being amortized into earnings over the expected life of the respective hedged item. The amount amortized from accumulated other comprehensive income into earnings related to these swaps was immaterial in 2011. There was no gain or loss reclassified from accumulated other comprehensive income into earnings related to our designated cash flow hedges for the three-month periods ended March 31, 2012 and 2011. As of March 31, 2012, deferred net gains on derivative instruments recorded in accumulated other comprehensive income that are expected to be reclassified to earnings during the next twelve months are immaterial.

Non-qualifying Strategies

For our 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 as realized investment gains (losses).

We have cross-currency swap agreements related to our $400 million senior notes due February 2017 and our $350 million senior notes due February 2022 (see Note 6). The notional amounts and terms of the swaps match the principal amount and terms of the senior notes. We entered into these cross-currency swaps to reduce interest expense by converting the dollar-denominated principal and interest on the senior notes we issued into yen-denominated obligations. By entering into these cross-currency swaps, we economically converted our $400 million liability into a 30.9 billion yen liability and reduced the interest rate on this debt from 2.65% in dollars to 1.22% in yen, and we economically converted our $350 million liability into a 27.0 billion yen liability and reduced the interest rate on this debt from 4.00% in dollars to 2.07% in yen.

The following table presents the gain or loss recognized in income on non-qualifying strategies.

Non-qualifying Strategies

Gain (Loss) Recognized within Realized Investment Gains (Losses)

	Three Months Ended March 31,
(In millions)	2012				2011
Interest rate swaps		$	(3	)		$	(5	)
Foreign currency swaps		50				(29		)
Credit default swaps		33				5
Other		0				3
Total		$	80			$	(26	)

The amount of gain or loss recognized in earnings for our 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 income or perpetual securities associated with these swaps is recorded through other comprehensive income.

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Net Investment Hedge

Our primary exposure to be hedged is our net investment in Aflac Japan, which is affected by changes in the yen/dollar exchange rate. To mitigate this exposure, we have taken the following courses of action. First, Aflac Japan maintains an investment portfolio of dollar-denominated securities on behalf of Aflac U.S., which serves as an economic currency hedge of a portion of our investment in Aflac Japan. The functional currency for these investments is the U.S. dollar. The related investment income and realized/unrealized investment gains and losses are also denominated in U.S. dollars. The foreign exchange gains and losses related to this portfolio are taxable in Japan and the U.S. when the securities mature or are sold. Until maturity or sale, deferred tax expense or benefit associated with the foreign exchange gains or losses are recognized in other comprehensive income.

Second, we have designated a majority of the Parent Company's yen-denominated liabilities (Samurai and Uridashi notes and yen-denominated loans - see Note 6) as nonderivative hedges of the foreign currency exposure of our investment in Aflac Japan. Our net investment hedge was effective during the three-month periods ended March 31, 2012, and 2011.

Non-Derivative Hedging Instruments in

Net Investment Hedging Relationships

	Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion)
	Three Months Ended March 31,
(In millions)	2012			2011
Non-derivative hedging instruments		$	49		$	22

There was no gain or loss reclassified from accumulated other comprehensive income into earnings related to our net investment hedge during the three-month periods ended March 31, 2012 and 2011.

For additional information on our 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 our annual report to shareholders for the year ended December 31, 2011.

5.  FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The carrying values and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2012				December 31, 2011
(In millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed-maturity securities	$	89,502	$	89,219	$	88,588	$	88,039
Fixed-maturity securities - consolidated variable interest entities	5,854		5,747		5,993		5,916
Perpetual securities	4,159		4,159		5,149		5,149
Perpetual securities - consolidated variable interest entities	1,193		1,193		1,290		1,290
Equity securities	25		25		25		25
Interest rate, foreign currency, and credit default swaps	318		318		375		375
Liabilities:
Notes payable (excluding capitalized leases)	3,955		4,354		3,275		3,536
Interest rate, foreign currency, and credit default swaps	428		428		531		531
Obligation to Japanese policyholder protection corporation	47		47		71		71

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We determine the fair values of our fixed maturity securities, perpetual securities, privately issued equity securities and our derivatives using four basic pricing approaches or techniques: quoted market prices readily available from public exchange markets, price quotes and valuations from third party pricing vendors, a discounted cash flow (DCF) pricing model, and non-binding price quotes we obtain from outside brokers.

Our DCF pricing model incorporates an option adjusted spread and utilizes various market inputs we obtain from both active and inactive markets. The estimated fair values developed by the DCF pricing model is most sensitive to prevailing credit spreads, the level of interest rates (yields) and interest rate volatility. Credit spreads are derived using a bond index to create a credit spread matrix which takes into account the current credit spread, ratings and remaining time to maturity, and subordination levels for securities that are included in the bond index. Our DCF pricing model is based on a widely used global bond index that is comprised of investments in active markets. The index provides a broad-based measure of the global fixed-income bond market. This index covers bonds issued by European and American issuers, which account for the majority of bonds that we hold. We validate the reliability of the DCF pricing model periodically by using the model to price investments for which there are quoted market prices from active and inactive markets or, in the alternative, are quoted by our custodian for the same or similar securities.

The pricing data and market quotes we obtain from outside sources are reviewed internally for reasonableness. If a fair value appears unreasonable, we will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, we may compare the inputs to relevant market indices and other performance measurements. Based on that analysis, the valuation is confirmed or revised.

The fair values of our publicly issued notes payable were obtained from a limited number of independent brokers, and the fair values of our yen-denominated loans approximate their carrying values. The fair value of the obligation to the Japanese policyholder protection corporation is our estimated share of the industry's obligation calculated on a pro rata basis by projecting our percentage of the industry's premiums and reserves and applying that percentage to the total industry obligation payable in future years.

The carrying amounts for cash and cash equivalents, receivables, accrued investment income, accounts payable, cash collateral and payables for security transactions approximated their fair values due to the short-term nature of these instruments. Consequently, such instruments are not included in the above table. The preceding table also excludes liabilities for future policy benefits and unpaid policy claims as these liabilities are not financial instruments as defined by GAAP.

Fair Value Hierarchy

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.

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	March 31, 2012
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Government and agencies	$	9,965	$	764	$	0	$	10,729
Municipalities	0		1,163		0		1,163
Mortgage- and asset-backed securities	0		897		367		1,264
Public utilities	0		6,926		409		7,335
Sovereign and supranational	0		1,787		418		2,205
Banks/financial institutions	0		6,612		1,097		7,709
Other corporate	0		15,082		1,035		16,117
Total fixed maturities	9,965		33,231		3,326		46,522
Perpetual securities:
Banks/financial institutions	0		4,676		325		5,001
Other corporate	0		351		0		351
Total perpetual securities	0		5,027		325		5,352
Equity securities	15		6		4		25
Other assets:
Interest rate swaps	0		0		31		31
Foreign currency swaps	0		47		240		287
Total other assets	0		47		271		318
Cash and cash equivalents	2,210		0		0		2,210
Total assets	$	12,190	$	38,311	$	3,926	$	54,427
Liabilities:
Interest rate swaps	$	0	$	0	$	3	$	3
Foreign currency swaps	0		9		319		328
Credit default swaps	0		0		97		97
Total liabilities	$	0	$	9	$	419	$	428

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	December 31, 2011
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Government and agencies	$	11,092	$	721	$	0	$	11,813
Municipalities	0		1,159		0		1,159
Mortgage- and asset-backed securities	0		944		394		1,338
Public utilities	0		6,803		422		7,225
Sovereign and supranational	0		1,874		434		2,308
Banks/financial institutions	0		6,379		1,074		7,453
Other corporate	0		15,171		1,105		16,276
Total fixed maturities	11,092		33,051		3,429		47,572
Perpetual securities:
Banks/financial institutions	0		5,552		526		6,078
Other corporate	0		361		0		361
Total perpetual securities	0		5,913		526		6,439
Equity securities	15		6		4		25
Other assets:
Interest rate swaps	0		0		34		34
Foreign currency swaps	0		0		341		341
Total other assets	0		0		375		375
Cash and cash equivalents	2,249		0		0		2,249
Total assets	$	13,356	$	38,970	$	4,334	$	56,660
Liabilities:
Interest rate swaps	$	0	$	0	$	4	$	4
Foreign currency swaps	0		0		397		397
Credit default swaps	0		0		130		130
Total liabilities	$	0	$	0	$	531	$	531

The following tables present the fair values categorized by hierarchy levels for the Company's assets and liabilities that are carried at cost or amortized cost and for which fair value is disclosed.

33

	March 31, 2012
(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 held to maturity, carried at amortized cost:
Fixed maturities:
Government and agencies	$	23,067	$	0	$	0	$	23,067
Municipalities	0		550		0		550
Mortgage- and asset-backed securities	0		35		86		121
Public utilities	0		5,207		0		5,207
Sovereign and supranational	0		3,953		0		3,953
Banks/financial institutions	0		10,878		0		10,878
Other corporate	0		4,668		0		4,668
Total assets	$	23,067	$	25,291	$	86	$	48,444
Liabilities:
Notes payable (excluding capital leases)	$	0	$	0	$	4,354	$	4,354
Obligation to Japanese policyholder protection corporation	0		0		47		47
Total liabilities	$	0	$	0	$	4,401	$	4,401

	December 31, 2011
(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 held to maturity, carried at amortized cost:
Fixed maturities:
Government and agencies	$	19,071	$	0	$	0	$	19,071
Municipalities	0		584		0		584
Mortgage- and asset-backed securities	0		39		95		134
Public utilities	0		5,637		0		5,637
Sovereign and supranational	0		4,165		0		4,165
Banks/financial institutions	0		11,480		0		11,480
Other corporate	0		5,312		0		5,312
Total assets	$	19,071	$	27,217	$	95	$	46,383
Liabilities:
Notes payable (excluding capital leases)	$	0	$	0	$	3,536	$	3,536
Obligation to Japanese policyholder protection corporation	0		0		71		71
Total liabilities	$	0	$	0	$	3,607	$	3,607

34

As of March 31, 2012, approximately 51% of the fair value, or 77% of the number of holdings, of our available-for-sale fixed income and perpetual investments classified as Level 2 and 3% of the fair value, or 7% of the number of holdings, of our held-to-maturity fixed income investments classified as Level 2 are valued by obtaining quoted market prices from our investment custodian. The custodian obtains price quotes from various third party pricing services that estimate fair values based on observable market transactions for similar investments in active markets, market transactions for the same investments in inactive markets, or other observable market data where available. The fair value of approximately 42% of our Level 2 available-for-sale fixed income and perpetual investments, or 10% of the number of Level 2 available-for-sale holdings, and 95% of our Level 2 held-to-maturity fixed income investments, or 85% of the number of Level 2 held-to-maturity holdings, are determined using our DCF pricing model. The significant valuation inputs to the DCF model are obtained from, or corroborated by, observable market sources from both active and inactive markets. For the remaining 7% of Level 2 available-for-sale investment valuations, or 13% of the number of Level 2 available-for-sale holdings, and the remaining 2% of Level 2 held-to-maturity investment valuations, or 8% of the number of Level 2 held-to-maturity holdings, that are not provided by our custodian and are not priced using the DCF pricing model, we obtain quotes from other pricing services that estimate fair values based on observable market transactions for similar investments in active markets, market transactions for the same investment in inactive markets, or other observable market data where available.

Due to our reliance on third-party pricing services to provide valuations on 51% of our Level 2 available-for-sale portfolio and 3% of our Level 2 held-to-maturity portfolio, we regularly discuss and review pricing methodologies with the investment custodian. We also review the custodians' Service Organization Control (SOC 1) report for the period covering the current year to gain satisfaction with the controls and control environment of the custodian.

For securities in Level 2 that are below investment grade or have split ratings where the valuation calculated by our DCF model does not conform to current market conditions, a CDS spread is used in lieu of the index spread discussed above. The CDS is chosen based on an average of spreads of issues with the same issuer, rating and subordination.

We use 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 fair value of the foreign currency swaps associated with our senior notes is based on the amount we would expect to receive or pay to terminate the swaps. The determination of the fair value of the swaps is based on observable market inputs, therefore they are classified as Level 2.

For derivatives associated with VIEs where we are the primary beneficiary, we are 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. Prior to the third quarter of 2011, these derivative instruments were reported in Level 2 of the fair value hierarchy, except CDSs and certain foreign currency swaps which were classified as Level 3. The interest rate and certain foreign currency derivative instruments previously classified as Level 2 were priced by broker quotations. In the third quarter of 2011, we changed from receiving valuations from brokers to receiving valuations from a third party pricing vendor for our derivatives. Based on an analysis of these derivatives and a review of the methodology employed by the pricing vendor, we 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 our consolidated VIEs have been classified as Level 3 of the fair value hierarchy as of September 30, 2011 and thereafter.

The fixed maturities classified as Level 3 consist of securities for which there are limited or no observable valuation inputs. We estimate the fair value of these securities by obtaining non-binding broker quotes from a limited number of brokers. These brokers base their quotes on a combination of their knowledge of the current pricing environment and market conditions. We consider these inputs to be unobservable. The significant valuation inputs that are used in the valuation process for the below-investment-grade and private placement investments classified as Level 3 include forward exchange rates, yen swap rates, dollar swap rates, interest rate volatilities, credit spread data on specific issuers, assumed default and default recovery rates, and certain probability assumptions. In obtaining these valuation inputs, we have determined that certain pricing assumptions and data used by our pricing sources are difficult to validate or corroborate by the market and/or appear to be internally developed rather than observed in or corroborated by the market. The use of these unobservable valuation inputs causes more subjectivity in the valuation process for these securities.

The equity securities classified in Level 3 are related to investments in Japanese businesses, each of which are insignificant and in the aggregate are immaterial. Because fair values for these investments are not readily available, we

35

carry them at their original cost. We review each of these investments periodically and, in the event we determine that any are other-than-temporarily impaired, we write them down to their estimated fair value at that time.

The fair values of our publicly issued notes payable classified as Level 3 were obtained from a limited number of independent brokers. These brokers base their quotes on a combination of their knowledge of the current pricing environment and market conditions. We consider these inputs to be unobservable. The fair value of the obligation to the Japanese policyholder protection corporation classified as Level 3 is our estimated share of the industry's obligation calculated on a pro rata basis by projecting our percentage of the industry's premiums and reserves and applying that percentage to the total industry obligation payable in future years. We consider our inputs for this valuation to be unobservable.

Historically, we have not adjusted the quotes or prices we obtain from the brokers and pricing services we use.

36

Level 3 Rollforward and Transfers between Hierarchy Levels

The following tables present the changes in our available-for-sale investments and derivatives classified as Level 3.

Three Months Ended March 31, 2012
	Fixed Maturities														Perpetual Securities			Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities			Sovereign and Supranational			Banks/ Financial Institutions		Other Corporate			Banks/ Financial Institutions					Interest Rate Swaps			Foreign Currency Swaps			Credit Default Swaps			Total
Balance, beginning of period	$	394		$	422		$	434		$	1,074	$	1,105		$	526		$	4	$	30		$	(56	)	$	(130	)	$	3,803
Realized gains or losses included in earnings	0			0			0			0		2			49			0		(2		)	13			33			95
Unrealized gains or losses included in other comprehensive income	(23		)	(13		)	(16		)	23		(38		)	6			0		0			(12		)	0			(73		)
Purchases, issuances, sales and settlements:
Purchases	0			0			0			0		0			0			0		0			0			0			0
Issuances	0			0			0			0		0			0			0		0			0			0			0
Sales	0			0			0			0		(34		)	(256		)	0		0			0			0			(290		)
Settlements	(4		)	0			0			0		0			0			0		0			(24		)	0			(28		)
Transfers into Level 3	0			0			0			0		0			0			0		0			0			0			0
Transfers out of Level 3	0			0			0			0		0			0			0		0			0			0			0
Balance, end of period	$	367		$	409		$	418		$	1,097	$	1,035		$	325		$	4	$	28		$	(79	)	$	(97	)	$	3,507
Change in unrealized gains (losses) still held (1)	$	0		$	0		$	0		$	0	$	0		$	0		$	0	$	(2	)	$	13		$	33		$	44

⁽¹⁾Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains (losses) relating to assets classified as

Level 3 that were still held at March 31, 2012

37

Three Months Ended March 31, 2011
	Fixed Maturities													Perpetual Securities		Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities		Collateralized Debt Obligations		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate		Banks/ Financial Institutions				Foreign Currency Swaps			Credit Default Swaps			Total
Balance, beginning of period	$	267		$	0	$	5	$	0	$	386	$	0	$	0	$	4	$	241		$	(343	)	$	560
Realized gains or losses included in earnings	(6		)	0		0		0		1		0		0		0		(64		)	5			(64		)
Unrealized gains or losses included in other comprehensive income	(10		)	0		0		0		33		0		0		0		(51		)	0			(28		)
Purchases, issuances, sales and settlements:
Purchases	0			0		0		0		0		0		0		0		0			0			0
Issuances	0			0		0		0		0		0		0		0		0			0			0
Sales	0			0		0		0		0		0		0		0		0			0			0
Settlements	(3		)	0		0		0		0		0		0		0		0			0			(3		)
Transfers into Level 3	0			0		0		0		0		0		0		0		0			0			0
Transfers out of Level 3	0			0		0		0		0		0		0		0		0			0			0
Balance, end of period	$	248		$	0	$	5	$	0	$	420	$	0	$	0	$	4	$	126		$	(338	)	$	465
Change in unrealized gains    (losses) still held(1)	$	(6	)	$	0	$	0	$	0	$	1	$	0	$	0	$	0	$	(64	)	$	5		$	(64	)

⁽¹⁾Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains (losses) relating to assets classified as Level 3 that were still held at March 31, 2011

38

Transfers into and/or out of Level 3 are attributable to a change in the observability of inputs. Transfers into and/or out of any fair value hierarchy level are assumed to occur at the balance sheet date. There were no transfers between Level 1 and 2 for the three-month periods ended March 31, 2012 and 2011.

Fair Value Sensitivity

DCF Sensitivity

Our DCF pricing model utilizes various market inputs we obtain from both active and inactive markets. The estimated fair values developed by the DCF pricing models are most sensitive to prevailing credit spreads, the level of interest rates (yields), and, for our callable securities, interest rate volatility. Management believes that under normal market conditions, a movement of 50 basis points (bps) in interest rates and credit spreads and 50 percent in interest rate volatility would be sufficiently reasonable stresses to illustrate the sensitivity of valuations to these risk factors. Therefore, we selected these magnitudes of movement and provided both upward and downward movements in these key assumptions used to estimate fair value. Since the changes in fair value are relatively linear, readers of these financial statements can make their own judgments as to the movement in interest rates and the change in fair value based upon this data. The following scenarios provide a view of the sensitivity of our securities priced by our DCF pricing model.

The fair values of our available-for-sale fixed-maturity and perpetual securities valued by our DCF pricing model totaled $18.2 billion at March 31, 2012. The estimated effect of potential changes in interest rates, credit spreads and interest rate volatility on these fair values as of such date is as follows:

	Interest Rates						Credit Spreads						Interest Rate Volatility
Factor Change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)
	+50 bps		$	(978	)		+50 bps		$	(975	)		+50 %		$	(36	)
	-50 bps		999				-50 bps		1,011				-50 %		1

The fair values of our held-to-maturity fixed-maturity securities valued by our DCF pricing model totaled $23.9 billion at March 31, 2012. The estimated effect of potential changes in interest rates, credit spreads and interest rate volatility on these fair values as of such date is as follows:

	Interest Rates						Credit Spreads						Interest Rate Volatility
Factor Change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)
	+50 bps		$	(1,488	)		+50 bps		$	(1,379	)		+50 %		$	(132	)
	-50 bps		1,314				-50 bps		1,380				-50 %		167

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Level 3 Significant Unobservable Input Sensitivity

The following tables summarize the significant unobservable inputs used in the valuation of our Level 3 available-for-sale investments and derivatives. 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, 2012
(In millions)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Mortgage- and asset-backed securities	$	367	Consensus pricing	Offered quotes	N/A	(e)
Public utilities	409		Discounted cash flow	Historical volatility	8.85%
Sovereign and supranational	418		Discounted cash flow	Historical volatility	8.85%
Banks/financial institutions	547		Discounted cash flow	Historical volatility	8.85%
	550		Consensus pricing	Offered quotes	N/A	(e)
Other corporate	594		Discounted cash flow	Historical volatility	8.85%
	441		Consensus pricing	Offered quotes	N/A	(e)
Perpetual securities:
Banks/financial institutions	325		Discounted cash flow	Historical volatility	8.85%
Equity securities	4		Net asset value	Offered quotes	$0-$993 ($4)
Other assets:
Interest rate swaps	31		Discounted cash flow	Base correlation	44% - 52%	(a)
				CDS spreads	3 - 1673 (136) bps
				Recovery rate	25% - 70% (40%)
Foreign currency swaps	81		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	6 - 157 (112) bps
				Foreign exchange rates	20.69%	(b)
	46		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	13 - 190 (97) bps
	113		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				Foreign exchange rates	20.69%	(b)
Total assets	$	3,926

(a) Weighted-average range of base correlations for our bespoke tranches for attachment and detachment points corresponding to market indices

(b) Based on 10 year volatility of JPY/USD exchange rate

(c) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps

(d) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps

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

40

March 31, 2012
(In millions)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Liabilities:
Interest rate swaps	$	3	Discounted cash flow	Base correlation	44% - 52%	(a)
				CDS spreads	3 - 1673 (136) bps
				Recovery rate	25% - 70% (40%)
Foreign currency swaps	91		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	14 - 239 (128) bps
				Foreign exchange rates	20.69%	(b)
	21		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	11 - 359 (214) bps
	207		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				Foreign exchange rates	20.69%	(b)
Credit default swaps	97		Discounted cash flow	Base correlations	44% - 52%	(a)
				CDS spreads	3 - 1673 (136) bps
				Recovery rate	25% - 70% (40%)
Total liabilities	$	419

(a) Weighted-average range of base correlations for our bespoke tranches for attachment and detachment points corresponding to market indices

(b) Based on 10 year volatility of JPY/USD exchange rate

(c) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps

(d) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps

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The following is a discussion of the significant unobservable inputs or valuation technique used in determining the fair value of securities and derivatives classified as Level 3. Listed below each discussion are the asset and derivative categories impacted by the respective input or valuation technique.

Annualized historical foreign exchange volatility

We own a portfolio of callable reverse dual-currency bonds (RDCs). RDCs are securities that have principal denominated in yen while paying U.S. dollar (USD) coupons. The significant unobservable input used for valuation is the historical foreign exchange volatility. The market standard approach is to use implied volatility to value options or instruments with optionality, because historical volatility may not represent current market participants' expectations about future volatility. Given the importance of this input to the overall valuation, use of historical volatility could result in a significant increase or decrease in fair value measurement.

• Public utilities, Other corporate, Sovereign and supranational, Banks/financial institutions

Net Asset Value

We hold 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.

• Equity securities

Offered quotes

In circumstances where our valuation model price is overridden because it implies a value that is not consistent with current market conditions, we will solicit bids from a limited number of brokers. We also receive unadjusted prices from brokers for our mortgage and asset-backed securities. These quotes are non-binding and are best estimates of value at that particular point in time.

• Mortgage- and asset-backed securities

• Banks/financial institutions

• Other Corporate

Interest Rates, CDS Spreads, Foreign exchange rates

The significant drivers of the valuation of the interest and foreign exchange swaps are interest rates, foreign exchange rates and CDS spreads. Our swaps have long maturities with fixed pay and receive legs. This increases the sensitivity of the swap to interest rate fluctuations. Since most of our yen-denominated cross currency swaps are in a net liability position, an increase in interest rates will decrease the liabilities and increase the value of the swap.

Foreign exchange swaps also have a lump-sum final settlement of foreign exchange principal receivables at the termination of the swap. An increase in yen interest rates will decrease the value of the final settlement foreign exchange receivables and decrease the value of the swap, and an increase in USD interest rates increase the swap value.

A similar sensitivity pattern is observed for the foreign exchange rates. When the spot U.S. dollar/Japanese yen (USD/JPY) foreign exchange rate decreases and the swap is receiving a final exchange payment in JPY, the swap value will increase due to the appreciation of the JPY. Most of our swaps are designed to receive payments in JPY at the termination and will thus be impacted by USD/JPY foreign exchange rate in this way. In cases where there is no final exchange foreign exchange receivable in JPY and we are paying JPY as interest payments, a decrease in the foreign exchange rate will lead to a decrease in the swap value.

The extinguisher feature in most of our 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, we apply 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.

42

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.

• Foreign currency swaps

Base Correlations, CDS Spreads

Our CDOs are tranches on baskets of single-name credit default swaps. The risks in these types of synthetic CDOs come from the single-name CDS risk and the correlations between the single names. The valuation of synthetic CDOs is dependent on the calibration of market prices for interest rates, single name CDS default probabilities and base correlation using financial modeling tools. Since there is limited or no observable data available for these tranches, these base correlations must be obtained from commonly traded market tranches such as the CDX and iTraxx indices. From the historical prices of these indices, base correlations can be obtained to develop a pricing curve of CDOs with different seniorities. Since the reference entities of the market indices do not match those in our portfolio underlying the synthetic CDO to be valued, several processing steps are taken to map the names in our portfolio to the indices. With the base correlation determined and the appropriate spreads selected, a valuation is calculated. An increase in the CDS spreads in the underlying portfolio leads to a decrease in the value due to higher probability of defaults and losses. The impact on the valuation due to base correlation depends on a number of factors, including the riskiness between market tranches and the modeled tranche based on our portfolio and the equivalence between detachment points in these tranches. Generally speaking, an increase in base correlation will decrease the value of the senior tranches while increasing the value of junior tranches. This may result in a positive or negative value change.

Our interest rate swaps are linked to the underlying synthetic CDOs. The valuation of these swaps is performed using a similar approach to that of the synthetic CDOs themselves; that is, the base correlation model is used to ensure consistency between the synthetic CDOs and the swaps.

• Credit default swaps, Interest rate swaps

For additional information on our 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 our annual report to shareholders for the year ended December 31, 2011.

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6.   NOTES PAYABLE

A summary of notes payable follows:

(In millions)	March 31, 2012			December 31, 2011
8.50% senior notes due May 2019	$	850		$	850
6.45% senior notes due August 2040	448		(1)	448		(1)
6.90% senior notes due December 2039	396		(2)	396		(2)
3.45% senior notes due August 2015	300			300
2.65% senior notes due February 2017	400			0
4.00% senior notes due February 2022	349		(3)	0
Yen-denominated Uridashi notes:
2.26% notes due September 2016 (principal amount 8 billion yen)	97			103
Yen-denominated Samurai notes:
1.47% notes due July 2014 (principal amount 28.7 billion yen)	349			369
1.87% notes due June 2012 (principal amount 26.6 billion yen)	324			342
1.84% notes due July 2016 (principal amount 15.8 billion yen)	192			203
Variable interest rate notes due July 2014 (1.35% in 2012 and 1.34% in 2011, principal amount 5.5 billion yen)	67			71
Yen-denominated loans:
3.60% loan due July 2015 (principal amount 10 billion yen)	122			129
3.00% loan due August 2015 (principal amount 5 billion yen)	61			64
Capitalized lease obligations payable through 2022	9			10
Total notes payable	$	3,964		$	3,285

⁽¹⁾ $450 issuance net of a $2 underwriting discount that is being amortized over the life of the notes

⁽²⁾$400 issuance net of a $4 underwriting discount that is being amortized over the life of the notes

⁽³⁾ $350 issuance net of a $1 underwriting discount that is being amortized over the life of the notes

In February 2012, the Parent Company issued two series of senior notes totaling $750 million through a U.S. public debt offering. The first series, which totaled $400 million, bears interest at a fixed rate of 2.65% per annum, payable semi-annually, and has a five-year maturity. The second series, which totaled $350 million, bears interest at a fixed rate of 4.00% per annum, payable semi-annually, and has a ten-year maturity. We have entered into cross-currency swaps to reduce interest expense by converting the dollar-denominated principal and interest on the senior notes we issued into yen-denominated obligations. By entering into these cross-currency swaps, we economically converted our $400 million liability into a 30.9 billion yen liability and reduced the interest rate on this debt from 2.65% in dollars to 1.22% in yen, and we economically converted our $350 million liability into a 27.0 billion yen liability and reduced the interest rate on this debt from 4.00% in dollars to 2.07% in yen.

We have no restrictive financial covenants related to our notes payable. We were in compliance with all of the covenants of our notes payable at March 31, 2012. No events of default or defaults occurred during the three-month period ended March 31, 2012.

For additional information, see Notes 4 and 8 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011.

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7.   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)	2012		2011
Common stock - issued:
Balance, beginning of period	663,639		662,660
Exercise of stock options and issuance of restricted shares	798		670
Balance, end of period	664,437		663,330
Treasury stock:
Balance, beginning of period	197,329		192,999
Purchases of treasury stock:
Open market	0		3,100
Other	199		151
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(381	)	(325	)
Exercise of stock options	(39	)	(81	)
Other	(134	)	(78	)
Balance, end of period	196,974		195,766
Shares outstanding, end of period	467,463		467,564

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 three-month periods ended March 31.

(In thousands)	2012	2011
Anti-dilutive share-based awards	5,457	2,592

Share Repurchase Program:During the first quarter of 2012, we did not repurchase any shares of our common stock in the open market. We repurchased 3.1 million shares of our common stock in the first quarter of 2011.

As of March 31, 2012, a remaining balance of 24.4 million shares of our common stock was available for purchase under a share repurchase authorization by our board of directors in 2008.

8.  SHARE-BASED COMPENSATION

As of March 31, 2012, the Company has outstanding share-based awards under two long-term incentive compensation plans.

The first plan, which expired in February 2007, is a stock option plan which allowed grants for incentive stock options (ISOs) to employees and non-qualifying stock options (NQSOs) to employees and non-employee directors. The options have a term of 10 years and generally vest after three years. The exercise price of options granted under this plan is equal to the fair market value of a share of the Company's common stock at the date of grant. Options granted before the plan's expiration date remain outstanding in accordance with their terms.

The second long-term incentive plan allows awards to Company employees for ISOs, 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. Generally, the awards vest based upon time-based conditions or time- and performance-based conditions. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. Effective March 14, 2012, the board of directors approved an amendment and restatement of the long-term incentive plan subject to approval by shareholders at the Company's annual shareholders' meeting on May 7, 2012. If approved, the amendments to the plan would, among other things, extend its expiration date

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from 2014 to 2017, make clear that option strike prices can be set at the closing price on the date of grant (rather than only at the average high-low sales price), update the performance factors available for use under awards that are intended to qualify for favorable tax deduction treatment, and adjust the size of awards that may be granted to incumbent directors. There were no additional shares of common stock authorized for issuance under the amended and restated plan. As of March 31, 2012, approximately 14 million shares were available for future grants under the existing plan, and the only performance-based awards issued and outstanding were restricted stock awards.

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, 2012.

	Stock Option Shares (in thousands)	Weighted-Average Remaining Term (in years)	Aggregate Intrinsic Value (in millions)	Weighted-Average Exercise Price Per Share
Outstanding	14,452	5.0	$77	$43.49
Exercisable	12,102	4.3	74	42.48

We received cash from the exercise of stock options in the amount of $6 million during the first quarter of 2012, compared with $10 million in the first quarter of 2011. The tax benefit realized as a result of stock option exercises and restricted stock releases was $13 million in the first quarter of 2012, compared with $11 million in the first quarter of 2011.

As of March 31, 2012, total compensation cost not yet recognized in our financial statements related to restricted stock awards was $48 million, of which $24 million (734 thousand shares) was related to restricted stock awards with a performance-based vesting condition. We expect to recognize these amounts over a weighted-average period of approximately 2.1 years. There are no other contractual terms covering restricted stock awards once vested.

For additional information on our long-term share-based compensation plans and the types of share-based awards, see Note 11 of the Notes to the Consolidated Financial Statements included in our annual report to shareholders for the year ended December 31, 2011.

9. BENEFIT PLANS

We have funded defined benefit plans in Japan and the United States which cover substantially all of our full-time employees. Additionally, we maintain 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.

We provide 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. Substantially all of our U.S. employees may become eligible to receive other postretirement benefits if they retire at age 55 or older with at least 15 years of service or if they retire when their age plus service, in years, equals or exceeds 80. At retirement, an employee is given an opportunity to elect continuation of coverage under our medical plan until age 65.

For certain employees and former employees, additional coverage is provided for all medical expenses for life. Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statement of earnings, included the following components:

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	Three Months Ended March 31,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2012			2011			2012			2011			2012		2011
Components of net periodic benefit cost:
Service cost	$	4		$	4		$	6		$	4		$	1	$	1
Interest cost	3			2			7			7			1		1
Expected return on plan assets	(1		)	(1		)	(4		)	(4		)	0		0
Amortization of net actuarial loss	1			1			2			1			0		0
Net periodic (benefit) cost	$	7		$	6		$	11		$	8		$	2	$	2

During the three months ended March 31, 2012, Aflac Japan contributed approximately $6 million (using the weighted-average yen/dollar exchange rate for the three-month period ending March 31, 2012) 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 our Japanese and U.S. benefit plans, see Note 13 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011.

10.   COMMITMENTS AND CONTINGENT LIABILITIES

We are a defendant in various lawsuits considered to be in the normal course of business. Members of our 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, we believe the outcome of pending litigation will not have a material adverse effect on our financial position, results of operations, or cash flows.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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. We 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 “expect,” “anticipate,” “believe,” “goal,” “objective,” “may,” “should,” “estimate,” “intends,” “projects,” “will,” “assumes,” “potential,” “target” or similar words as well as specific projections of future results, generally qualify as forward-looking. Aflac undertakes no obligation to update such forward-looking statements.

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

• difficult conditions in global capital markets and the economy

• governmental actions for the purpose of stabilizing the financial markets

• defaults and credit downgrades of securities in our investment portfolio

• impairment of financial institutions

• credit and other risks associated with Aflac's investment in perpetual securities

• differing judgments applied to investment valuations

• significant valuation judgments in determination of amount of impairments taken on our investments

• limited availability of acceptable yen-denominated investments

• concentration of our investments in any particular single-issuer or sector

• concentration of business in Japan

• ongoing changes in our industry

• exposure to significant financial and capital markets risk

• fluctuations in foreign currency exchange rates

• significant changes in investment yield rates

• deviations in actual experience from pricing and reserving assumptions

• subsidiaries' ability to pay dividends to Aflac Incorporated

• changes in law or regulation by governmental authorities

• ability to attract and retain qualified sales associates and employees

• decreases in our financial strength or debt ratings

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

• changes in U.S. and/or Japanese accounting standards

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

• level and outcome of litigation

• ability to effectively manage key executive succession

• impact of the recent earthquake and tsunami natural disaster and related events at the nuclear plant in Japan and their aftermath

• catastrophic events including, but not necessarily limited to, tornadoes, hurricanes, earthquakes, tsunamis, and damage incidental to such events

• failure of internal controls or corporate governance policies and procedures

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MD&A OVERVIEW

Management’s Discussion and Analysis of Financial Condition and Results of Operations (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 period from December 31, 2011, to March 31, 2012. 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 our annual report to shareholders for the year ended December 31, 2011. This MD&A is divided into the following sections:

• Our Business

• Performance Highlights

• Critical Accounting Estimates

• Results of Operations, consolidated and by segment

• Analysis of Financial Condition, including discussion of market risks of financial instruments

• Capital Resources and Liquidity, including discussion of availability of capital and the sources and uses of cash

OUR BUSINESS

Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States and Japan. The Company’s insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). Most of Aflac’s policies are individually underwritten and marketed through independent agents. Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business.

PERFORMANCE HIGHLIGHTS

Results for the first quarter of 2012 benefited from the stronger yen/dollar exchange rate. Total revenues rose 21.9% to $6.2 billion, compared with $5.1 billion in the first quarter of 2011. Net earnings were $785 million, or $1.68 per diluted share, compared with $389 million, or $.83 per diluted share, in the first quarter of 2011.

Results in the first quarter of 2012 included pretax net realized investment losses of $45 million ($29 million after-tax), compared with net realized investment losses of $579 million ($376 million after-tax) in the first quarter of 2011. Net investment losses in the first quarter of 2012 included $203 million ($132 million after-tax) of other-than-temporary impairment losses; $78 million of net gains ($51 million after-tax) from the sale or redemption of securities; and $80 million of net gains ($52 million after-tax) from valuing derivatives. Shareholders’ equity at March 31, 2012 included a net unrealized gain on investment securities (including derivatives) of $1.4 billion, compared with a net unrealized gain of $1.2 billion at December 31, 2011.

CRITICAL ACCOUNTING ESTIMATES

We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In this MD&A, references to GAAP issued by the FASB are derived from the FASB Accounting Standards Codification^™(ASC). The preparation of financial statements in conformity with GAAP requires us to make estimates based on currently available information when recording transactions resulting from business operations. The estimates that we deem 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, deferred policy acquisition costs (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 96% of our assets and 81% of our liabilities are reported as of March 31, 2012, and thus has a direct effect on net earnings and shareholders’ equity. Subsequent experience or use of other assumptions could produce significantly different results.

See Note 1 of the Notes to the Consolidated Financial Statements for information on changes to the accounting policy for deferred policy acquisition costs, costs associated with acquiring or renewing insurance contracts. There have been no other changes in the items that we have identified as critical accounting estimates during the three months ended March 31, 2012. For additional information, see the Critical Accounting Estimates section of MD&A included in our annual report to shareholders for the year ended December 31, 2011.

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New Accounting Pronouncements

On January 1, 2012, we retrospectively adopted amended accounting guidance on accounting for costs associated with acquiring or renewing insurance contracts, or DAC. Under the previous guidance, we deferred costs that varied with and were primarily related to the acquisition of a policy. Under the amended accounting guidance, only incremental direct costs associated with the successful acquisition of new or renewal contracts may be capitalized, and direct-response advertising costs may be capitalized under certain conditions. As of December 31, 2010, approximately 70% of our unadjusted deferred acquisition cost balance was related to compensation paid to third parties for successful sales and was therefore still deferrable under the new rules. The remaining 30% of the deferred acquisition costs balance was evaluated for deferral under the amended accounting guidance. The retrospective adoption of this accounting standard resulted in an after-tax cumulative reduction to retained earnings of $408 million and an after-tax cumulative reduction to unrealized foreign currency translation gains in accumulated other comprehensive income of $108 million, resulting in a total reduction to shareholders' equity of $516 million as of December 31, 2010. The adoption of this accounting standard had an immaterial impact on net income in 2011 and for all preceding years.

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

RESULTS OF OPERATIONS

The following table is a presentation of items impacting net earnings and net earnings per diluted share.

Items Impacting Net Earnings

	In Millions						Per Diluted Share
	Three Months Ended March 31,
	2012			2011			2012			2011
Net earnings	$	785		$	389		$	1.68		$	.83
Items impacting net earnings, net of tax:
Realized investment gains (losses):
Securities transactions and impairments	(81		)	(357		)	(.17		)	(.75		)
Impact of derivative and hedging activities	52			(19		)	.11			(.04		)

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

Realized Investment Gains and Losses

Our investment strategy is to invest in fixed-income securities to provide a reliable stream of investment income, which is one of the drivers of the Company’s profitability. This investment strategy aligns our assets with our liability structure, which our assets support. We do not purchase securities with the intent of generating capital 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 maintenance and rebalancing. The realization of investment gains and losses is independent of the underwriting and administration of our insurance products, which are the principal drivers of our profitability.

Securities Transactions and Impairments

During the three-month period ended March 31, 2012, we realized pretax investment gains, net of losses, of $78 million ($51 million after-tax) from sales and redemptions of securities. These gains primarily resulted from both the redemption of a previously impaired perpetual security and sales related to our implemented plan to reduce the risk exposure in our investment portfolio. We realized pretax investment losses of $203 million ($132 million after-tax) as a result of the recognition of other-than-temporary impairment losses on certain securities. These losses primarily resulted from impairments on two Tier I securities that were sold subsequent to the end of the quarter.

During the three-month period ended March 31, 2011, we realized pretax investment losses of $405 million ($263 million after-tax) as a result of the recognition of other-than-temporary impairment losses on certain securities, and we realized pretax investment losses, net of gains, of $144 million ($94 million after-tax) from sales and redemptions of securities, primarily as a result of an implemented plan to reduce the risk exposure in our investment portfolio coupled with the continued decline in the credit worthiness of certain issuers.

See Note 3 of the Notes to Consolidated Financial Statements for a more detailed discussion of these investment

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activities.

The following table details our pretax impairment losses by investment category.

	Three Months Ended March 31,
(In millions)	2012			2011
Perpetual securities	$	140		$	0
Corporate bonds	63			397
Mortgage- and asset-backed securities	0			6
Municipalities	0			1
Equity securities	0			1
Total other-than-temporary impairment losses realized	$	203	(1)	$	405	(2)

⁽¹⁾ Includes $28 for credit-related impairments and $175 from change in intent to sell securities

⁽²⁾Consisted completely of credit-related impairments

Impact of Derivative and Hedging Activities

Our derivative activities include foreign currency, interest rate and credit default swaps in variable interest entities that are consolidated, cross-currency interest rate swaps associated with our senior notes due February 2017 and February 2022, and an interest rate swap associated with our variable interest rate yen-denominated debt. We realized pretax investment gains, net of losses, of $80 million ($52 million after-tax) for the three-month period ended March 31, 2012, compared with pretax investment losses, net of gains, of $30 million ($19 million after tax) for the same period in 2011, as a result of valuing the swaps described above.

For a description of other items that could be included in the Impact of Derivative and Hedging Activities, see the Hedging Activities subsection of MD&A and Note 4 of the accompanying Notes to the Consolidated Financial Statements.

For additional information regarding realized investment gains and losses, see Notes 3 and 4 of the Notes to the Consolidated Financial Statements.

Foreign Currency Translation

Aflac Japan’s premiums and most of its investment income are received in yen. Claims and expenses are paid in yen, and we primarily purchase yen-denominated assets to support yen-denominated policy liabilities. These and other yen-denominated financial statement items are translated into dollars for financial reporting purposes. We translate Aflac Japan’s yen-denominated income statement into dollars using an average exchange rate for the reporting period, and we translate its yen-denominated balance sheet using the exchange rate at the end of the period. However, it is important to distinguish between translating and converting foreign currency. Except for a limited number of transactions, we do not actually convert yen into dollars.

Due to the size of Aflac Japan, where our functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on our 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. As a result, we view foreign currency translation as a financial reporting issue for Aflac and not an economic event to our Company or shareholders. Because changes in exchange rates distort the growth rates of our operations, management evaluates Aflac’s financial performance excluding the impact of foreign currency translation.

Income Taxes

Our combined U.S. and Japanese effective income tax rate on pretax earnings was 34.7% for the three-month period ended March 31, 2012, compared with 34.2% for the same period in 2011.

Earnings Guidance

We communicate earnings guidance in this report based on the growth in net earnings per diluted share.

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However, certain items that cannot be predicted or that are outside of management’s control may have a significant impact on actual results. Therefore, our comparison of net earnings includes certain assumptions to reflect the limitations that are inherent in projections of net earnings. In comparing period-over-period results, we exclude the effect of realized investment gains and losses (securities transactions, impairments, and the impact of derivative and hedging activities) and nonrecurring items. We also assume no impact from foreign currency translation on the Aflac Japan segment and the Parent Company’s yen-denominated interest expense for a given period in relation to the prior period.

Subject to the preceding assumptions, our objective for 2012 is to increase net earnings per diluted share by 3% to 6% over 2011 as restated for the change in accounting for deferred acquisition costs, compared with our prior stated objective of 2% to 5% growth. This range reflects the impact of portfolio derisking and investing significant cash flows at low interest rates. Once the effects of our investment derisking activities and low interest rate yields on investments have been integrated into our financial results, we expect the rate of earnings growth in 2013 to improve over 2012. Based on our stated objective for 2012, the following table shows the likely results for 2012 net earnings per diluted share, including the impact of foreign currency translation using various yen/dollar exchange rate scenarios.

2012 Net Earnings Per Share (EPS) Scenarios⁽¹⁾ 

Weighted-Average Yen/Dollar Exchange Rate	Net Earnings Per Diluted Share	% Growth Over 2011	Yen Impact on EPS
70.00	$7.06 - 7.25	12.6 - 15.6%	$.60
75.00	6.73 - 6.92	7.3 - 10.4	.27
79.75(2)	6.46 - 6.65	3.0 - 6.1	.00
80.00	6.45 - 6.64	2.9 - 5.9	(.01)
85.00	6.21 - 6.40	(1.0) - 2.1	(.25)

⁽¹⁾Excludes realized investment gains/losses (securities transactions, impairments, and the impact of derivative and hedging activities) and nonrecurring items in 2012 and 2011

⁽²⁾Actual 2011 weighted-average exchange rate

INSURANCE OPERATIONS

Aflac’s insurance business consists of two segments: Aflac Japan and Aflac U.S. Aflac Japan, which operates as a branch of Aflac, is the principal contributor to consolidated earnings. GAAP financial reporting requires that a company report financial and descriptive information about operating segments in its annual and interim period financial statements. Furthermore, we are required to report a measure of segment profit or loss, certain revenue and expense items, and segment assets.

We measure and evaluate our insurance segments’ financial performance using operating earnings on a pretax basis. We define segment operating earnings as the profits we derive from our operations before realized investment gains and losses (securities transactions, impairments, and the impact of derivative and hedging activities) and nonrecurring items. We believe that an analysis of segment pretax operating earnings is vitally important to an understanding of the underlying profitability drivers and trends of our insurance business. Furthermore, because a significant portion of our business is conducted in Japan, we believe it is equally important to understand the impact of translating Japanese yen into U.S. dollars.

We evaluate our sales efforts using new annualized premium sales, an industry operating measure. New annualized premium sales, which include both new sales and the incremental increase in premiums due to conversions, represent the premiums that we would collect over a 12-month period, assuming the policies remain in force. For Aflac Japan, new annualized premium sales are determined by applications submitted during the reporting period. For Aflac U.S., new annualized premium sales are determined by applications that are issued during the reporting period. Premium income, or earned premiums, is a financial performance measure that reflects collected or due premiums that have been earned ratably on policies in force during the reporting period.

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AFLAC JAPAN SEGMENT

Aflac Japan Pretax Operating Earnings

Changes in Aflac Japan’s pretax operating 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)	2012		2011
Premium income	$	4,148	$	3,702
Net investment income:
Yen-denominated investment income	473		431
Dollar-denominated investment income	257		218
Net investment income	730		649
Other income (loss)	16		20
Total operating revenues	4,894		4,371
Benefits and claims	2,967		2,580
Operating expenses:
Amortization of deferred policy acquisition costs	178		153
Insurance commissions	294		288
Insurance and other expenses	415		376
Total operating expenses	887		817
Total benefits and expenses	3,854		3,397
Pretax operating earnings(1)	$	1,040	$	974
Weighted-average yen/dollar exchange rate	79.59		82.32

	In Dollars				In Yen
Percentage change over previous period:	2012		2011		2012		2011
Premium income	12.0	%	15.5	%	7.8	%	4.8	%
Net investment income	12.5		9.5		8.7		(.7	)
Total operating revenues	12.0		14.2		7.8		3.7
Pretax operating earnings(1)	6.8		19.3		3.2		8.5

⁽¹⁾ See the Insurance Operations section of this MD&A for our definition of segment operating expenses.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

The percentage increases in premium income in yen reflect the growth of premiums in force. Annualized premiums in force increased 8.9% to 1.38 trillion yen as of March 31, 2012, compared with 1.27 trillion yen as of March 31, 2011. The increase in annualized premiums in force in yen reflect the sales of new policies combined with the high persistency of Aflac Japan’s business. Annualized premiums in force, translated into dollars at respective period-end exchange rates, were $16.8 billion at March 31, 2012, compared with $15.3 billion a year ago.

Aflac Japan maintains a portfolio of dollar-denominated and reverse-dual currency securities (yen-denominated debt securities with dollar coupon payments). Dollar-denominated investment income from these assets accounted for approximately 35% of Aflac Japan’s investment income in the first three months of 2012, compared with 33% a year ago. In periods when the yen strengthens in relation to the dollar, translating Aflac Japan’s dollar-denominated investment income into yen lowers growth rates for net investment income, total operating revenues, and pretax operating earnings in yen terms. In periods when the yen weakens, translating dollar-denominated investment income into yen magnifies growth rates for net investment income, total operating revenues, and pretax operating earnings in yen terms. Excluding foreign currency changes from the prior period, dollar-denominated investment income accounted for approximately 36% of Aflac Japan’s investment income during the first three months of 2012 and 2011.

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The following table illustrates the effect of translating Aflac Japan’s dollar-denominated investment income and related items into yen by comparing certain segment results with those that would have been reported had yen/dollar exchange rates remained unchanged from the comparable period in the prior year.

Aflac Japan Percentage Changes Over Previous Period

(Yen Operating Results)

For the Periods Ended March 31,

	Including Foreign Currency Changes				Excluding Foreign Currency Changes(2)
	Three Months				Three Months
	2012		2011		2012		2011
Net investment income	8.7	%	(.7	)%	9.8	%	2.7	%
Total operating revenues	7.8		3.7		7.9		4.1
Pretax operating earnings(1)	3.2		8.5		3.4		9.9

⁽¹⁾ See the Insurance Operations section of this MD&A for our definition of segment operating earnings.

⁽²⁾ Amounts excluding foreign currency changes on dollar-denominated items were determined using the same yen/dollar exchange rate for the current period as the comparable period in the prior year.

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

	Three Months Ended March 31,
Ratios to total revenues:	2012		2011
Benefits and claims	60.6	%	59.0	%
Operating expenses:
Amortization of deferred policy acquisition costs	3.6		3.5
Insurance commissions	6.0		6.6
Insurance and other expenses	8.5		8.6
Total operating expenses	18.1		18.7
Pretax operating earnings(1)	21.3		22.3

⁽¹⁾ See the Insurance Operations section of this MD&A for our definition of segment operating earnings.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

Aflac Japan’s financial results for the first quarter of 2011 reflected a provision of 3.0 billion yen, or $37 million, for claims related to the earthquake and tsunami that occurred in Japan on March 11, 2011. These claims were offset by reserve releases and reinsurance of 2.0 billion yen, or $25 million, resulting in a net income statement impact of 1.0 billion yen, or $12 million, in 2011. The financial results also reflected .7 billion yen, or $8 million, of operating expenses in the first quarter of 2011 resulting from the earthquake and tsunami. Based on our claims experience to date and our claims estimates, we believe that our initial provision is adequate. The natural disaster and its related events have not had a material impact on our financial position or results of operations.

In the past several years, the benefit ratio for our health products has been positively impacted by favorable claim trends, primarily in our cancer product line. We expect this downward claim trend to continue. However, for several years, the rate of decline in Aflac Japan's benefit ratio has moderated, due primarily to strong sales results in our ordinary products, including WAYS and child endowment. These products have higher benefit ratios and lower expense ratios than our third sector products. The benefit ratio has also been impacted by the effect of low investment yields and portfolio derisking, both of which impact our profit margin by reducing the spread between investment yields and required interest on policy reserves. In the three-month period ended March 31, 2012, the benefit ratio increased and the operating expense ratio decreased, resulting in a lower pretax operating profit margin, compared with the same period in 2011. For the full year of 2012, we expect to achieve our profit objectives through better-than-average premium growth associated with the life products and somewhat lower profit margins due to the change in business mix discussed above.

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Aflac Japan Sales

Aflac Japan's first quarter 2012 production set an all-time new annualized premium sales record for the third consecutive quarter. Aflac Japan's new annualized premium sales exceeded our expectations in the first quarter of 2012 and increased 53.8% in yen, compared with the same period in 2011. 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)	2012			2011			2012		2011
New annualized premium sales	$	659		$	414		52.4		34.1
Increase (decrease) over comparable period in prior year	59.3		%	24.0		%	53.8	%	12.6	%

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

	Three Months
	2012		2011
Medical	17	%	28	%
Cancer	13		18
Ordinary life:
Child endowment	14		22
WAYS	44		18
Other ordinary life	8		11
Other	4		3
Total	100	%	100	%

The bank channel generated new annualized premium sales of 24.3 billion yen in the first quarter of 2012, an increase of 208.9% over the first quarter of 2011. Bank channel sales accounted for 46% of new annualized premium sales for Aflac Japan in the first quarter of 2012, compared with 23% during the same period a year ago. WAYS, a unique hybrid whole-life product that we first introduced in 2006 and introduced to the bank channel in 2009, has been a significant contributor to bank sales growth. The average premium for WAYS sold through the bank channel, the primary distribution outlet for this product, is about ten times the average premium for cancer and medical products, making it a strong contributor to revenue growth. The profit margin on WAYS is lower than our health insurance products, however the profit margin is significantly enhanced when policyholders elect to pay premiums upfront using the “discounted advance premium” option. More than 90% of customers at banks choose this payment option. Sales of WAYS were 23.2 billion yen during the first quarter of 2012, an increase of 283.4% over the the first quarter of 2011.

The foundation of Aflac Japan's product portfolio has been, and continues to be, our third sector cancer and medical products. Cancer insurance sales increased 14.2% during the first quarter of 2012, compared with the same period a year ago. The increase primarily reflected sales of the new base cancer policy, DAYS, which was introduced at the end of March 2011, and DAYS PLUS, which upgrades older cancer policies. The enhancements in this new base policy are a response to the changes in cancer treatment as well as our commitment to being the number one provider of cancer insurance in Japan. We are convinced that the affordable cancer products Aflac Japan provides will continue to be an important part of our product portfolio.

Medical insurance sales decreased 6.1% during the first quarter of 2012, compared with the same period a year ago, primarily due to our traditional sales channels' focus on selling our DAYS and DAYS PLUS cancer policies. Despite the comparative sales decrease, we maintained our position as the number one seller of medical insurance policies in Japan. We upgraded our New EVER policy toward the end of January 2012, and initial results of the product revision have been positive. With continued cost pressure on Japan’s health care system, we expect the need for medical products will continue to rise in the future, and we remain encouraged about the outlook for the medical insurance market.

At March 31, 2012, we had agreements to sell our products at 372 banks, or more than 90% of the total number of banks in Japan. We have seen sales steadily improve at many of these bank branches as training has taken place and as many banks expand their offerings of Aflac products. We believe we have significantly more banks selling our

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third sector insurance products than any other insurer operating in Japan. Japanese consumers rely on banks not only to provide traditional bank services, but also to provide insurance solutions, among other services. Approximately 80% of our customers at banks are new customers to Aflac. We believe our long-standing and strong relationships within the Japanese banking sector, along with our strategic preparations, have proven to be an advantage as this channel opened up for our types of products. Our partnership with banks provides us with a wider demographic of potential customers than we would otherwise have been able to reach, and it also allows banks to expand their product and service offerings to consumers.

We remain committed to selling through our traditional channels. These channels include affiliated corporate agencies, independent corporate agencies and individual agencies. In the first quarter of 2012, we recruited more than 940 new sales agencies. At March 31, 2012, Aflac Japan was represented by approximately 19,500 sales agencies and more than 121,400 licensed sales associates employed by those agencies.

Overall, Aflac Japan performed well in the first quarter of 2012. We believe that there is a continued need for our products in Japan. Based on the sales results from this quarter, we now expect Aflac Japan's full year 2012 new annualized premium sales to increase 10%, compared with our previous expectation of a sales decline.

Aflac Japan Investments

Growth of investment income in yen is affected by available cash flow from operations, the timing of investing the cash flow, yields on new investments, and the effect of yen/dollar exchange rates on dollar-denominated investment income. Aflac Japan has invested in privately issued securities to secure higher yields than those available on Japanese government or other public corporate bonds, while still adhering to prudent standards for credit quality. All of our privately issued securities are rated investment grade at the time of purchase. These securities are generally issued with documentation consistent with standard medium-term note programs. In addition, many of these investments have protective covenants appropriate to the specific issuer, industry and country. These covenants often require the issuer to adhere to specific financial ratios and give priority to repayment of our investment under certain circumstances.

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

	Three Months
	2012		2011
New money yield - yen only	1.94	%	2.36	%
New money yield - blended	2.03		3.16
Return on average invested assets, net of investment expenses	3.18		3.31

The decrease in Aflac Japan's new money yield reflects the low level of interest rates. At March 31, 2012, the yield on Aflac Japan’s investment portfolio, including dollar-denominated investments, was 3.18%, compared with 3.56% a year ago. 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 our investments.

Japanese Economy

The Bank of Japan's April 2012 Monthly Report of Recent Economic Developments stated that Japan's economic activity has shown some signs of improvement, however it has remained relatively flat. Exports and production have remained more or less flat. Public investment has begun to increase, housing investment has continued to increase and private consumption has remained firm. The report projected that Japan's economy is expected to return to a moderate recovery path as the pace of recovery in overseas economies improves and reconstruction demand related to the tsunami and earthquake disaster gradually strengthens. Exports and production are expected to increase moderately and public investment and housing investment are expected to continue to increase, while private consumption is expected to remain firm. For additional information, see the Japanese Economy subsection of MD&A in our annual report to shareholders for the year ended December 31, 2011.

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Japanese Regulatory Environment

Japan’s Financial Services Agency (FSA) maintains a solvency standard, which is used by Japanese regulators to monitor the financial strength of insurance companies. The FSA has applied a revised method of calculating the solvency margin ratio for life insurance companies as of fiscal year-end 2011 (March 31, 2012) and encouraged the disclosure of the ratio as reference information as of fiscal year-end 2010 (March 31, 2011). The FSA had commented that the revision would generally reduce life insurance companies’ solvency margin ratios to approximately half the level of those reported under the current calculation method. Aflac Japan's solvency margin ratio, most recently reported as of December 31, 2011, was 985.8% using the former calculation method and, disclosed as reference information, was 547.3% under the new standards. As expected, based on the results of the calculation of the solvency margin ratio under the new standards, Aflac Japan’s relative position within the industry has not materially changed.

In 2005, legislation aimed at privatizing Japan’s postal system (Japan Post) was enacted into law. The privatization laws split Japan Post into four operating entities that began operations in October 2007. In 2007, one of these entities selected Aflac Japan as its provider of cancer insurance to be sold through its post offices, and, in 2008, we began selling cancer insurance through these post offices. Japan Post has historically been a popular place for consumers to purchase insurance products. Currently, our products are being offered in approximately 1,000 post offices. Japan's three major political parties recently submitted legislation regarding postal reform. This legislation would merge two of the postal operating entities (the one that delivers the mail and the one that runs the post offices). We anticipate that this legislation will pass the Diet during the current Diet session scheduled to end in June 2012. However, at the current time, it is not possible to predict with any degree of certainty what impact, if any, this legislation will have on Aflac Japan's operations. Regardless, we believe that postal reform is unlikely to change Aflac Japan's relationship with the post office company.

AFLAC U.S. SEGMENT

Aflac U.S. Pretax Operating Earnings

Changes in Aflac U.S. pretax operating 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.

Aflac U.S. Summary of Operating Results

	Three Months Ended March 31,
(In millions)	2012			2011
Premium income	$	1,231		$	1,169
Net investment income	152			144
Other income	2			3
Total operating revenues	1,385			1,316
Benefits and claims	678			642
Operating expenses:
Amortization of deferred policy acquisition costs	110			107
Insurance commissions	140			134
Insurance and other expenses	186			182
Total operating expenses	436			423
Total benefits and expenses	1,114			1,065
Pretax operating earnings(1)	$	271		$	251
Percentage change over previous period:
Premium income	5.2		%	2.5		%
Net investment income	5.5			8.8
Total operating revenues	5.2			3.1
Pretax operating earnings(1)	8.1			2.4

⁽¹⁾ See the Insurance Operations section of this MD&A for our definition of segment operating earnings.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

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Annualized premiums in force increased 5.2% to $5.2 billion as of March 31, 2012, compared with $5.0 billion a year ago.

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

	Three Months Ended March 31,
Ratios to total revenues:	2012		2011
Benefits and claims	49.0	%	48.8	%
Operating expenses:
Amortization of deferred policy acquisition costs	7.9		8.1
Insurance commissions	10.1		10.1
Insurance and other expenses	13.4		13.9
Total operating expenses	31.4		32.1
Pretax operating earnings(1)	19.6		19.1

⁽¹⁾See the Insurance Operations section of this MD&A for our definition of segment operating earnings.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

The benefit ratio remained relatively stable in the first quarter of 2012, compared with the same period a year ago. The expense ratio decreased, resulting in an expansion in the pretax operating profit margin compared with the same period in 2011. For the remainder of 2012, we expect the benefit and expense ratios and pretax operating profit margin to be similar to those experienced in 2011.

Aflac U.S. Sales

In the first quarter of 2012, Aflac U.S. generated new annualized premium sales growth of 4.5%, compared with the same period in 2011. We believe this sales growth reflects our intense focus on supporting our field force with enhanced products, including group products, and other resources that help our sales force approach selling in the current economic environment more effectively. The following table presents Aflac's U.S. new annualized premium sales for the periods ended March 31.

	Three Months
(In millions)	2012			2011
New annualized premium sales	$	351		$	336
Increase (decrease) over comparable period in prior year	4.5		%	6.3		%

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

	Three Months
	2012		2011
Income-loss protection:
Short-term disability	20	%	17	%
Life	6		6
Asset-loss protection:
Accident	29		30
Critical care(1)	24		23
Supplemental medical:
Hospital indemnity	15		17
Dental/vision	6		7
Total	100	%	100	%

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

New annualized premium sales for accident insurance, our leading product category, increased 3.5%, short-term

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disability sales increased 21.5%, critical care insurance sales (including cancer insurance) increased 5.7%, and hospital indemnity insurance sales decreased 7.7% in the first quarter of 2012, compared with the same period a year ago.

As part of our U.S. sales strategy, we continue to focus on growing and enhancing the effectiveness of our U.S. sales force. We recruited 6,700 new sales associates in the first quarter of 2012, resulting in approximately 76,300 licensed sales associates as of March 31, 2012.

In addition to expanding the size and capabilities of our traditional sales force, we are encouraged about the opportunities to broaden our distribution by pursuing and strengthening relationships with insurance brokers. Insurance brokers have been a historically underleveraged sales channel for Aflac, so we have been developing relationships with brokers the past several years that complement our traditional distribution system. We have a management team experienced in broker sales, and we are supporting this initiative with streamlined products, targeted broker-specific advertising campaigns, customized enrollment technology, and competitive compensation. At the beginning of 2012, Aflac U.S. launched an initiative to address the largest insurance brokers. We believe that we have significant potential for growth in this larger-case market.

Our group products sold through Aflac Group Insurance have enhanced sales opportunities not only for brokers but also for our traditional sales force of individual associates, especially when they pursue larger payroll accounts. For the three-month period ended March 31, 2012, sales from Aflac Group Insurance increased 38.4%, compared with the same period in the prior year, to $50 million, representing 14% of new annualized premium sales for Aflac U.S.

Although we remain somewhat cautious in our short-term sales outlook for Aflac U.S. due to the relatively weak economic environment, our longer-term view has not changed. We believe the need for the products we sell remains strong, and that the United States provides a vast and accessible market for our products. We are taking measures to better reach potential customers through our product and distribution strategy, which includes broadening our product portfolio to include group products in addition to our traditional individually issued products. The addition of the group product platform and our growing broker initiative only serve to enhance our ability to leverage the Aflac brand to reach employees at more companies, large and small, across the United States. Following the passage of health care reform in 2010, we believe employers and consumers will increasingly come to understand the need for the products we offer, just as they have in Japan. For 2012, our objective is for Aflac U.S. new annualized premium sales to increase in the range of 3% to 8%.

Aflac U.S. Investments

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

	Three Months
	2012		2011
New money yield	4.80	%	5.77	%
Return on average invested assets, net of investment expenses	6.48		6.42

The decrease in the U.S. new money yield for the three-month period ended March 31, 2012 reflects a low level of interest rates and tightening credit spreads. At March 31, 2012, the portfolio yield on Aflac’s U.S. portfolio was 6.66%, compared with 6.84% a year ago. 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 our investments.

U.S. Economy

Operating in the U.S. economy continues to be challenging. We generated sales growth that exceeded our expectations for 2011, but even so, ongoing low confidence levels from consumers and small businesses coupled with fewer employees at the worksite continue to pose challenges to our U.S. sales growth. Our group products and growing relationships with insurance brokers that handle the larger-case market are helping us as we expand our reach to do business with larger businesses. However, most of our business continues to revolve around small business owners and accounts with fewer than 100 employees. Small businesses, in particular, have proven to be especially vulnerable to ongoing economic weakness, and both small-business owners and their workers are anxious about the future. Workers at small businesses are holding back on increasing their spending for voluntary insurance products. Although we believe that the weakened U.S. economy has dampened our sales growth, we also believe our products remain affordable to the average American consumer. We believe that consumers’ underlying need for our U.S. product line remains strong, and that the United States remains a sizeable and attractive market for our products.

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U.S. Regulatory Environment

In March 2010, President Barack Obama signed the Patient Protection and Affordable Care Act (PPACA) to give Americans of all ages and income levels access to comprehensive major medical health insurance. The primary subject of the new legislation is major medical insurance, therefore, the PPACA, as enacted, does not directly affect the design of our insurance products or our sales model. Our experience with Japan’s national health care environment leads us to believe that the need for our products will only increase over the coming years.

In July 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly known as the Dodd-Frank Act, which, among other things, created a Financial Stability and Oversight Council. The Council may designate by a two-thirds vote whether certain insurance companies and insurance holding companies pose a grave threat to the financial stability of the United States, in which case such nonbank financial companies would become subject to prudential regulation by the Board of Governors of the U.S. Federal Reserve (the Board), including capital requirements, leverage limits, liquidity requirements and examinations. The Board may limit such company’s ability to enter into merger transactions, restrict its ability to offer financial products, require it to terminate one or more activities, or impose conditions on the manner in which it conducts activities. The Dodd-Frank Act also established a Federal Insurance Office under the U.S. Treasury Department to monitor all aspects of the insurance industry and of lines of business other than certain health insurance, certain long-term care insurance and crop insurance. Traditionally, U.S. insurance companies have been regulated primarily by state insurance departments. The Dodd-Frank Act requires extensive rule-making and other future regulatory action, which in some cases will take a period of years to implement. We believe that Aflac would not likely be considered a company that would pose a systemic risk to the financial stability of the United States. However, at the current time, it is not possible to predict with any degree of certainty what impact, if any, the Dodd-Frank Act will have on our U.S. business, financial condition, or results of operations.

ANALYSIS OF FINANCIAL CONDITION

Our financial condition has remained strong in the functional currencies of our operations. The yen/dollar exchange rate at the end of each period is used to translate yen-denominated balance sheet items to U.S. dollars for reporting purposes.

The following table demonstrates the effect of the change in the yen/dollar exchange rate by comparing select balance sheet items as reported at March 31, 2012, with the amounts that would have been reported had the exchange rate remained unchanged from December 31, 2011.

Impact of Foreign Exchange on Balance Sheet Items

(In millions)	As   Reported		Exchange                  Effect			Net of         Exchange Effect
Yen/dollar exchange rate(1)	82.19					77.74
Investments and cash	$	103,104	$	(4,689	)	$	107,793
Deferred policy acquisition costs	9,542		(391		)	9,933
Total assets	115,552		(5,162		)	120,714
Policy liabilities	93,004		(4,855		)	97,859
Total liabilities	101,909		(5,103		)	107,012

⁽¹⁾The exchange rate at March 31, 2012, was 82.19 yen to one dollar, or 5.4% weaker than the December 31, 2011, exchange rate of 77.74.

Market Risks of Financial Instruments

Our investment philosophy is to maximize investment income while emphasizing liquidity, safety and quality. Our investment objective, subject to appropriate risk constraints, is to fund policyholder obligations and other liabilities in a manner that enhances shareholders’ equity. We seek to achieve this objective through a diversified portfolio of fixed-income investments that reflects the characteristics of the liabilities it supports. Aflac invests primarily within the fixed income securities markets.

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The following table details investment securities by segment.

Investment Securities by Segment

	Aflac Japan				Aflac U.S.
(In millions)	March 31, 2012		December 31, 2011		March 31, 2012			December 31, 2011
Securities available for sale, at fair value:
Fixed maturities	$	36,371	$	37,473	$	10,015	(1)	$	9,961	(1)
Perpetual securities	5,171		6,271		181			168
Equity securities	25		25		0			0
Total available for sale	41,567		43,769		10,196			10,129
Securities held to maturity, at amortized cost:
Fixed maturities	48,834		47,009		0			0
Total held to maturity	48,834		47,009		0			0
Total investment securities	$	90,401	$	90,778	$	10,196		$	10,129

⁽¹⁾Excludes investment-grade, available-for-sale fixed-maturity securities held by the Parent Company of $136 in 2012 and $138 in

2011.

Because we invest in fixed-income securities, our financial instruments are exposed primarily to three types of market risks: currency risk, interest rate risk, and credit risk.

Currency Risk

The functional currency of Aflac Japan's insurance operations is the Japanese yen. All of Aflac Japan's premiums, claims and commissions are received or paid in yen, as are most of its investment income and other expenses. While we have been investing a portion of our yen cash flow in dollar-denominated securities, most of Aflac Japan's investments, cash and liabilities are yen-denominated. When yen-denominated securities mature or are sold, the proceeds are generally reinvested in yen-denominated securities. Aflac Japan holds these yen-denominated assets to fund its yen-denominated policy obligations. In addition, Aflac Incorporated has yen-denominated debt obligations.

Although we generally do not convert yen into dollars, we do translate financial statement amounts from yen into dollars for financial reporting purposes. Therefore, reported amounts are affected by foreign currency fluctuations. We report unrealized foreign currency translation gains and losses in accumulated other comprehensive income.

Aflac Japan maintains a portfolio of reverse-dual currency securities (yen-denominated debt securities with dollar coupon payments), which exposes Aflac to changes in foreign exchange rates. This foreign currency effect is accounted for as a component of unrealized gains or losses on available-for-sale securities in accumulated other comprehensive income. When the yen strengthens against the dollar, shareholders’ equity is negatively impacted and, conversely, when the yen weakens against the dollar, shareholders’ equity is positively impacted. Aflac Japan invests a portion of its assets in reverse-dual currency securities to provide a higher yield than those available on Japanese government or other public corporate bonds, while still adhering to prudent standards of credit quality. The yen/dollar exchange rate would have to strengthen to approximately 46 before the yield on these instruments would equal that of a comparable yen-denominated instrument.

On a consolidated basis, we attempt to minimize the exposure of shareholders' equity to foreign currency translation fluctuations. We accomplish this by investing a portion of Aflac Japan's investment portfolio in dollar-denominated securities and by the Parent Company's issuance of yen-denominated debt (for additional information, see the discussion under the Hedging Activities subsection of MD&A). As a result, the effect of currency fluctuations on our net assets is reduced.

The following table demonstrates the effect of foreign currency fluctuations by presenting the dollar values of our yen-denominated assets and liabilities, and our consolidated yen-denominated net asset exposure at selected exchange rates.

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Dollar Value of Yen-Denominated Assets and Liabilities

at Selected Exchange Rates

(In millions)	March 31, 2012						December 31, 2011
Yen/dollar exchange rates	67.19		82.19(1)		97.19		62.74			77.74(1)			92.74
Yen-denominated financial instruments:
Assets:
Securities available for sale:
Fixed maturities	$	29,602	$	24,200	$	20,464	$	31,405		$	25,345		$	21,246
Fixed maturities - consolidated variable interest entities	3,199		2,615		2,212		3,402			2,746			2,302
Perpetual securities	4,804		3,927		3,321		6,117			4,937			4,138
Perpetual securities - consolidated variable interest entities	1,360		1,112		940		1,477			1,192			999
Equity securities	24		19		16		24			19			16
Securities held to maturity:
Fixed maturities	58,992		48,226		40,783		57,451			46,366			38,867
Fixed maturities - consolidated variable interest entities	744		608		515		797			643			539
Cash and cash equivalents	1,299		1,062		898		1,737			1,402			1,175
Other financial instruments	172		141		119		183			147			124
Subtotal	100,196		81,910		69,268		102,593			82,797			69,406
Liabilities:
Notes payable	1,494		1,221		1,033		1,599			1,291			1,082
Japanese policyholder protection corporation	57		47		39		88			71			60
Subtotal	1,551		1,268		1,072		1,687			1,362			1,142
Net yen-denominated financial instruments	98,645		80,642		68,196		100,906			81,435			68,264
Other yen-denominated assets	10,124		8,276		6,999		10,706			8,640			7,243
Other yen-denominated liabilities	107,492		87,875		74,312		112,559			90,840			76,148
Consolidated yen-denominated net assets (liabilities) subject to foreign currency fluctuation	$	1,277	$	1,043	$	883	$	(947	)	$	(765	)	$	(641	)

⁽¹⁾ Actual period-end exchange rate

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

We are required to consolidate certain variable interest entities (VIEs). Prior to consolidation, our beneficial interest in certain VIEs was a yen-denominated available-for-sale fixed maturity security. Upon consolidation, the original yen-denominated investment was derecognized and the underlying U.S. dollar-denominated fixed-maturity or perpetual securities and cross-currency swaps were recognized. While the combination of a U.S. dollar-denominated investment and cross-currency swap economically creates a yen-denominated investment, these investments will create foreign currency fluctuations but have no impact on our net investment hedge position. For additional information, see the Hedging Activities subsection of MD&A.

Some of the consolidated VIEs in our Aflac Japan portfolio use foreign currency swaps to convert foreign denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations. Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be periodic exchanges of payments at specified intervals based on the agreed upon rates and notional amounts.

We are exposed to economic currency risk only when yen funds are actually converted into dollars. This primarily occurs when we repatriate yen-denominated funds from Aflac Japan to Aflac U.S., which is generally done annually. The exchange rates prevailing at the time of repatriation will differ from the exchange rates prevailing at the time the yen profits were earned. A portion of the repatriation may be used to service Aflac Incorporated's yen-denominated notes payable with the remainder converted into dollars.

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Interest Rate Risk

Our primary interest rate exposure is to the impact of changes in interest rates on the fair value of our investments in debt and perpetual securities. We estimate that the reduction in the fair value of debt and perpetual securities we own resulting from a 100 basis point increase in market interest rates, based on our portfolios at March 31, 2012, and December 31, 2011, would be as follows:

(In millions)	March 31, 2012			December 31, 2011
Effect on yen-denominated debt and perpetual securities	$	(10,027	)	$	(9,715	)
Effect on dollar-denominated debt and perpetual securities	(1,890		)	(1,900		)
Effect on total debt and perpetual securities	$	(11,917	)	$	(11,615	)

There are various factors that affect the fair value of our investment in debt and perpetual securities. Included in those factors are changes in the prevailing interest rate environment, which directly affect the balance of unrealized gains or losses for a given period in relation to a prior period. Decreases in market yields generally improve the fair value of debt and perpetual securities, while increases in market yields generally have a negative impact on the fair value of our debt and perpetual securities. However, we do not expect to realize a majority of any unrealized gains or losses because we generally have the intent and ability to hold such securities until a recovery of value, which may be maturity. For additional information on unrealized losses on debt and perpetual securities, see Note 3 of the Notes to the Consolidated Financial Statements.

We attempt to match the duration of our assets with the duration of our liabilities. Currently, when debt and perpetual securities we own mature, the proceeds may be reinvested at a yield below that of the interest required for the accretion of policy benefit liabilities on policies issued in earlier years. However, adding riders to our older policies has helped offset negative investment spreads on these policies. Overall, adequate profit margins exist in Aflac Japan’s aggregate block of business because of changes in the mix of business and favorable experience from mortality, morbidity and expenses.

We entered into an interest rate swap agreement related to our 5.5 billion yen variable interest rate Samurai notes that we issued in July 2011. This agreement effectively converted the variable interest rate notes to fixed rate notes to eliminate the volatility in our interest expense. We also have interest rate swaps related to some of our consolidated VIEs. These interest rate swaps are primarily used to convert interest receipts on floating-rate fixed-maturity securities contracts to fixed rates. For further information, see Note 4 of the accompanying Notes to the Consolidated Financial Statements and Note 8 of the Notes to the Consolidated Financial Statements and the Interest Rate Risk subsection of MD&A in our annual report to shareholders for the year ended December 31, 2011.

Credit Risk

Our investment activities expose us to credit risk, which is a consequence of extending credit and/or carrying investment positions. However, we continue to adhere to prudent standards for credit quality. We accomplish this by considering our product needs and overall corporate objectives, in addition to credit risk. In evaluating the initial rating, we look at the overall senior issuer rating, the explicit rating for the actual issue or the rating for the security class, and, where applicable, the appropriate designation from the Securities Valuation Office (SVO) of the National Association of Insurance Commissioners (NAIC). All of our securities have ratings from either a nationally recognized statistical rating organization, the SVO of the NAIC, or are assigned ratings by us based on NAIC rules. In addition, we perform extensive internal credit reviews to ensure that we are consistent in applying rating criteria for all of our securities.

We use specific criteria to judge the credit quality of both existing and prospective investments. Furthermore, we use several methods to monitor these criteria, including credit rating services and internal credit analysis. The ratings references in the two tables below are based on the ratings designations provided by major credit rating agencies (Moody's, S&P and Fitch) or, if not rated, are determined based on the ratings assigned by the SVO of the NAIC and/or our internal credit analysis of such securities. For investment grade securities where the ratings assigned by the major credit agencies are not equivalent, in periods prior to the first quarter of 2012 we used the highest rating that was assigned; as of the first quarter of 2012 and prospectively, we are using the second lowest rating that is assigned. For a description of the ratings methodology that we use when a security is split-rated, see 'Market Risks of Financial Instruments - Below-Investment-Grade and Split-Rated Securities" in the Analysis of Financial Condition section of this MD&A.

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The distributions by credit rating of our purchases of debt securities, based on acquisition cost, were as follows:

Composition of Purchases by Credit Rating⁽¹⁾ 

	Three Months Ended March 31, 2012		Twelve Months Ended December 31, 2011		Three Months Ended March 31, 2011
AAA	.6	%	6.6	%	24.2	%
AA	85.4		75.8		41.3
A	7.9		9.9		15.3
BBB	5.5		7.2		19.2
BB or lower	.6		.5		.0
Total	100.0	%	100.0	%	100.0	%

⁽¹⁾ See the preceding discussion in this section of MD&A regarding the change in credit rating methodology effective March 31, 2012

Purchases of securities from period to period are determined based on diversification objectives, relative value and availability of investment opportunities, while meeting our investment policy guidelines for liquidity, safety and quality. We did not purchase any perpetual securities during the periods presented in the table above. The increase in purchases of AA rated securities during the first quarter of 2012 was primarily due to purchases of JGBs. The purchases of BB or lower rated securities in 2012 and 2011 was due to a limited program that was initiated in May 2011 to invest in senior secured bank loans to U.S. and Canadian corporate borrowers, most of which have below-investment-grade ratings. The program is managed externally by a third party firm specializing in this asset class. Its mandate requires a minimum average credit quality of BB-/Ba3, no loans rated below B/B2, and no exposure to any individual credit greater than 3% of the program’s assets. The objectives of this program include enhancing the yield on invested assets, achieving further diversification of credit risk, and mitigating the risk of rising interest rates through the acquisition of floating rate assets.

The distributions of debt and perpetual securities we own, by credit rating, were as follows:

Composition of Portfolio by Credit Rating⁽¹⁾ 

	March 31, 2012				December 31, 2011
	Amortized Cost		Fair       Value		Amortized Cost		Fair       Value
AAA	1.9	%	2.0	%	2.3	%	2.3	%
AA	41.3		41.8		41.3		42.0
A	28.4		29.0		31.3		32.1
BBB	22.7		22.0		19.5		18.7
BB or lower	5.7		5.2		5.6		4.9
Total	100.0	%	100.0	%	100.0	%	100.0	%

⁽¹⁾ See the preceding discussion in this section of MD&A regarding the change in credit rating methodology effective March 31, 2012

As of March 31, 2012, our direct and indirect exposure to securities in our investment portfolio that were guaranteed by third parties was immaterial both individually and in the aggregate.

Subordination Distribution

The majority of our total investments in debt and perpetual securities was senior debt at March 31, 2012, and December 31, 2011. We also maintained investments in subordinated financial instruments that primarily consisted of Lower Tier II, Upper Tier II, and Tier I securities, listed in order of seniority. The Lower Tier II (LTII) securities are debt instruments with fixed maturities. Our Upper Tier II (UTII) and Tier I investments consisted of debt instruments with fixed maturities and perpetual securities, which have an economic maturity as opposed to a stated maturity.

The following table shows the subordination distribution of our debt and perpetual securities.

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Subordination Distribution of Debt and Perpetual Securities

	March 31, 2012				December 31, 2011
(In millions)	Amortized Cost		Percentage of Total		Amortized Cost		Percentage of Total
Senior notes	$	86,635	88.0	%	$	85,544	86.2	%
Subordinated securities:
Fixed maturities (stated maturity date):
Lower Tier II	5,328		5.4		5,795		5.8
Tier I(1)	537		.5		555		.6
Surplus notes	335		.3		335		.3
Trust preferred - non-banks	85		.1		85		.1
Other subordinated - non-banks	51		.1		51		.1
Total fixed maturities	6,336		6.4		6,821		6.9
Perpetual securities (economic maturity date):
Upper Tier II	3,251		3.3		4,285		4.3
Tier I	1,945		2.0		2,268		2.3
Other subordinated - non-banks	326		.3		344		.3
Total perpetual securities	5,522		5.6		6,897		6.9
Total debt and perpetual securities	$	98,493	100.0	%	$	99,262	100.0	%

⁽¹⁾Includes trust preferred securities

As indicated in the table above, the percentage of our investment portfolio comprising subordinated fixed maturities and perpetual securities investments has declined due primarily to sales and impairments resulting from an implemented plan to reduce the risk exposure in our investment portfolio. See the Investment Concentrations section below for more information on these derisking activities.

Portfolio Composition

For information regarding the amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments, refer to Note 3 of the Notes to the Consolidated Financial Statements.

Investment Concentrations

As of March 31, 2012, one of our largest investment industry sector concentrations was banks and financial institutions. Throughout 2008 and during the first half of 2009, concerns related to troubled residential mortgages in the United States, United Kingdom and Europe spread to structured investment securities. As a result, banks and financial institutions suffered significant write-downs of asset values, which pressured banks and financial institutions to seek capital and liquidity support. National governments responded with various forms of support, ranging from guarantees on new and existing debt to significant injections of capital. In the second half of 2009, asset valuations generally improved, and banks and other institutions continued to use exchanges and tender offers to enhance their core capital. However, 2010 brought new concerns about the fiscal integrity of peripheral European sovereign nations, and in 2011, concerns about the fiscal integrity of peripheral European sovereigns persisted due to the inability of Eurozone leaders to establish an effective solution. As a result, most financial institutions in the Euro area have faced both liquidity and asset valuation pressures. Greece, Ireland, and most recently, Portugal were forced to accept external funding aid in various forms to meet their financial obligations, as public markets were not accessible. Nationalization and/or recapitalization, along with loss-sharing among bondholders, all remain distinct risks for financial institutions. While European politicians have become increasingly hesitant to put taxpayers at risk, with few exceptions, we believe nationalizations and burden-sharing among debt holders remain options of last resort.

See Note 3 of the Notes to the Consolidated Financial Statements for a discussion of our investment discipline and further discussion of our investment industry sector concentration in banks and financial institutions.

Our 20 largest global investment exposures as of March 31, 2012, were as follows:

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Largest 20 Global Investment Positions

	Amortized		% of			Ratings
(In millions)	Cost		Total		Seniority	Moody’s	S&P	Fitch
Japan National Government(1)	$	32,185	32.7	%	Senior	Aa3	AA-	AA-
Israel Electric Corp. Ltd.	788		.8		Senior	Baa3	BB+	—
Republic of Tunisia(2)	778		.8		Senior	Baa3	BBB-	BBB-
Republic of South Africa	742		.8		Senior	A3	BBB+	BBB+
HSBC Holdings PLC	688		.7
HSBC Finance Corporation (formerly Household Finance)	608		.6		Senior	A3	A	AA-
The Hongkong & Shanghai Banking Corporation Ltd.	80		.1		Upper Tier II	Aa3	—	—
UniCredit SpA	572		.6
UniCredit Bank Austria AG	11		.0		Lower Tier II	Aa3	AA	—
UniCredit Bank AG (Hypovereinsbank)	204		.2		Lower Tier II	Baa2	BBB+	BBB+
UniCredit Bank AG (HVB Funding Trust I, III & VI)	357		.4		Tier I	Baa3	BBB-	BB+
Bank of America Corp. (includes Merrill Lynch)	547		.5
Merrill Lynch & Co. Inc.	304		.3		Senior	Baa1	A-	A
Bank of America Corp.	243		.2		Lower Tier II	Baa2	BBB+	BBB
Bank of Tokyo-Mitsubishi UFJ Ltd.	547		.5
Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU Curacao Holdings NV)	547		.5		Lower Tier II	A1	A	A-
Investcorp SA	500		.5
Investcorp Capital Limited	500		.5		Senior	Ba2	—	BB
Sumitomo Mitsui Financial Group Inc.	487		.5
Sumitomo Mitsui Banking Corporation	122		.1		Lower Tier II	A1	A	A-
Sumitomo Mitsui Banking Corporation (SMBC International Finance)	365		.4		Upper Tier II	A2	BBB+	—
National Grid PLC	487		.5
National Grid Gas PLC	244		.3		Senior	A3	A-	A
National Grid Electricity Transmission PLC	243		.2		Senior	A3	A-	A
Telecom Italia SpA	487		.5
Telecom Italia Finance SA	487		.5		Senior	Baa2	BBB	BBB
Citigroup Inc.	480		.5
Citigroup Inc (includes Citigroup Global Markets Holdings Inc.)	479		.5		Senior	A3	A-	A
Citigroup Inc. (Citicorp)	1		.0		Lower Tier II	Baa1	BBB+	BBB+
JP Morgan Chase & Co. (including Bear Stearns)	477		.5
JPMorgan Chase & Co (including Bear Stearns Companies Inc.)	426		.5		Senior	Aa3	A	AA-
JPMorgan Chase & Co (FNBC)	23		.0		Senior	Aa1	A+	—
JPMorgan Chase & Co (Bank One Corp.)	17		.0		Lower Tier II	A1	A-	A+
JPMorgan Chase & Co (NBD Bank)	11		.0		Lower Tier II	Aa2	A	A+
Commonwealth Bank of Australia	475		.5
Commonwealth Bank of Australia	122		.1		Lower Tier II	Aa3	A-	A+
Commonwealth Bank of Australia	243		.3		Upper Tier II	—	BBB	—
Bankwest	110		.1		Upper Tier II	Aa3	BBB	—
Metlife Inc.	470		.5
Metlife Inc.	166		.2		Senior	A3	A-	A-
Metropolitan Life Global Fund	304		.3		Senior	Aa3	AA-	A+
Credit Suisse Group	469		.5
Credit Suisse Group International	61		.1		Upper Tier II	A1	BBB	BBB
Credit Suisse, London Branch	122		.1		Upper Tier II	A1	BBB	BBB-
Credit Suisse Group Capital	286		.3		Tier I	Baa1	BBB-	BBB-
Unique Zurich Airport	450		.5
Flughafen Zurich AG	450		.5		Senior	—	A-	—
Banobras	450		.4		Senior	Baa1	BBB	BBB
Gas Natural SDG (Union Fenosa)	450		.4
Union Fenosa Finance B.V.	450		.4		Senior	Baa2	BBB	A-
Subtotal	$	42,529	43.2	%
Total debt and perpetual securities	$	98,493	100.0	%

⁽¹⁾ JGBs or JGB-backed securities

⁽²⁾ Deemed by the Company to be below investment grade

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As previously disclosed, we own long-dated debt instruments in support of our long-dated policyholder obligations. Included in our largest global investment holdings are positions that date back many years. Additionally, the concentration of certain of our holdings of individual credit exposures has grown over time through merger and consolidation activity. Beginning in 2005, we have generally limited our investment exposures to individual issuers to no more than 5% of total adjusted capital (TAC) on a statutory accounting basis, with the exception of obligations of the Japanese and U.S. governments. However, existing investment exposures that exceeded 5% of TAC at the time this guidance was adopted, or exposures that may exceed this threshold from time to time through merger and consolidation activity, are not automatically reduced through sales of the issuers’ securities but rather are reduced over time consistent with our investment policy.

Investments in Certain European Countries

With the periphery of Europe garnering the attention of markets, we are disclosing our investment exposure to Greece, Ireland, Italy, Portugal, and Spain. These countries are at the epicenter of the European debt crisis, and the developments affecting these countries in turn affect the other 12 countries inextricably linked to these five countries through their collective membership in the Economic and Monetary Union and resultant adoption of a single common currency - the euro.

The primary factor considered when determining domicile is the legal domicile of the issuer. However, other factors such as the location of the parent guarantor, the location of the company's headquarters or major business operations (including location of major assets), location of primary market (including location of revenue generation) and specific country risk publicly recognized by rating agencies can influence the assignment of the country (or geographic) risk location. When the issuer is a special financing vehicle or a branch or subsidiary of a global company, then we consider any guarantees and/or legal, regulatory and corporate relationships of the issuer relative to its ultimate parent in determining the proper assignment of country risk.

We had no direct exposure to Greece as of March 31, 2012 and December 31, 2011. Our direct investment exposure to Ireland, Italy, Portugal and Spain and the related maturities of those investments were as follows:

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March 31, 2012
	One to Five Years						Five to Ten Years						After Ten Years						Total
	Amortized			Fair			Amortized			Fair			Amortized			Fair			Amortized			Fair
(In millions)	Cost			Value			Cost			Value			Cost			Value			Cost			Value
Available-for-sale securities:
Ireland:
Banks/financial institutions		$	0		$	0		$	0		$	0		$	274		$	156		$	274		$	156
Italy:
Public utilities		0			0			0			0			15			16			15			16
Other corporate		0			0			0			0			378			380			378			380
Portugal:
Public utilities		10			10			162			134			122			102			294			246
Spain:
Sovereign		0			0			140			154			0			0			140			154
Banks/financial institutions		34			33			0			0			24			35			58			68
Public utilities		0			0			0			0			450			409			450			409
Other corporate		32			32			0			0			233			207			265			239
Held-to-maturity securities:
Ireland:
Banks/financial institutions		0			0			0			0			243			198			243			198
Italy:
Sovereign		0			0			0			0			304			287			304			287
Banks/financial institutions		0			0			0			0			183			171			183			171
Public utilities		0			0			0			0			900			870			900			870
Other corporate		0			0			0			0			669			626			669			626
Portugal:
Public utilities		0			0			0			0			0			0			0			0
Spain:
Sovereign		0			0			0			0			462			425			462			425
Banks/financial institutions		0			0			0			0			426			354			426			354
Public utilities		0			0			0			0			426			414			426			414
Other corporate		0			0			0			0			243			226			243			226
Total gross and net funded exposure		$	76		$	75		$	302		$	288		$	5,352		$	4,876		$	5,730		$	5,239

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December 31, 2011
	One to Five Years						Five to Ten Years						After Ten Years						Total
	Amortized			Fair			Amortized			Fair			Amortized			Fair			Amortized			Fair
(In millions)	Cost			Value			Cost			Value			Cost			Value			Cost			Value
Available-for-sale securities:
Ireland:
Banks/financial institutions		$	0		$	0		$	0		$	0		$	287		$	170		$	287		$	170
Italy:
Public utilities		0			0			0			0			15			14			15			14
Other corporate		0			0			0			0			399			392			399			392
Portugal:
Public utilities		10			10			40			33			129			105			179			148
Spain:
Sovereign		0			0			148			162			0			0			148			162
Banks/financial institutions		34			35			0			0			45			45			79			80
Public utilities		0			0			0			0			476			422			476			422
Other corporate		34			33			0			0			243			212			277			245
Held-to-maturity securities:
Ireland:
Banks/financial institutions		0			0			0			0			257			209			257			209
Italy:
Sovereign		0			0			0			0			322			303			322			303
Banks/financial institutions		0			0			0			0			193			181			193			181
Public utilities		0			0			0			0			952			914			952			914
Other corporate		0			0			0			0			707			661			707			661
Portugal:
Public utilities		0			0			129			135			0			0			129			135
Spain:
Sovereign		0			0			0			0			489			470			489			470
Banks/financial institutions		0			0			0			0			450			356			450			356
Public utilities		0			0			0			0			450			447			450			447
Other corporate		0			0			0			0			257			241			257			241
Total gross and net funded exposure		$	78		$	78		$	317		$	330		$	5,671		$	5,142		$	6,066		$	5,550

We do not have any unfunded exposure in the European countries shown in the preceding table, and we have not entered into any hedges to mitigate credit risk for our funded exposure. The banks and financial institutions investments in Ireland, Italy, Portugal and Spain represented 5% of total investments in the banks and financial institutions sector at March 31, 2012 and December 31, 2011, and 1% of total investments in debt and perpetual securities at March 31, 2012 and December 31, 2011.

Ireland

As of March 31, 2012, our total direct exposure to Ireland was $517 million at amortized cost, comprised senior

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unsecured obligations. Senior securities issued by the Bank of Ireland with amortized costs and fair values totaling $243 million and $125 million, respectively, were rated below investment grade. We believe that these unrealized losses were more closely linked to the Irish government's aggressive approach to addressing its debt burden, which included at one point potentially imposing losses on senior debt holders of certain non-viable Irish banks. While the political risk of burden-sharing remains, it significantly subsided during the second half of 2011, as the government has shifted its focus to reducing its debt burden related to the EU/IMF program rather than disrupt the progress made in restoring stability to the Irish banking sector. This Irish bank is current on its obligation to us, and we believe it has the ability to meet its obligations to us. In addition, as of March 31, 2012, we had the intent to hold this investment to recovery in value. As a result, we did not recognize an other-than-temporary impairment for this investment as of March 31, 2012. The other senior security holdings in Ireland were issued by DEPFA Bank PLC and had an amortized cost of $274 million as of March 31, 2012. DEPFA is an Irish-domiciled and licensed financial institution that is a wholly owned subsidiary of Hypo Real Estate Holding, a Germany licensed and regulated financial institution.  Due to this ownership by a German parent, DEPFA has not been included in the Republic of Ireland's bank re-structuring and capitalization plan.  DEPFA was current on its obligation to us and was rated investment grade at Baa3/BBB/BBB+ by Moody's, S&P and Fitch, respectively, as of March 31, 2012.

There have been no additional ratings actions by Moody's since it downgraded Ireland's foreign currency long-term debt rating from Baa3 to Ba1 on July 12, 2011. Moody's affirmed its rating of Ireland on February 13, 2012.  S&P placed Ireland's foreign currency long-term debt rating of BBB+ on negative watch on December 5, 2011 and subsequently removed the watch on January 13, 2012. On December 16, 2011, Fitch placed its foreign currency long-term debt rating of BBB+ for Ireland on negative watch. Fitch affirmed its rating of Ireland on January 27, 2012.

Italy

During the second half of 2011, the European sovereign crisis shifted focus from Greece and moved to other periphery European sovereigns, including Italy. We believe the focus on Italy has been driven by a combination of factors which, separately in a normal market environment, would have a limited impact on the fiscal profile and financing capabilities of a developed market government, like Italy's. The factors include the EU leadership's inability to solve the Greece fiscal problem, weak economic growth, a high overall debt profile, and a lack of political will to address the government's budget.

As of March 31, 2012, our total direct exposure to Italy was $2.4 billion, at amortized cost. This exposure comprised $304 million of direct investment in the sovereign of Italy; a senior unsecured bank obligation of $183 million; and several utility and industrial companies of $915 million and $1.0 billion, respectively.

We expect the operating environment will be difficult in 2012 as Italy's government implements austerity measures to reduce deficits. Meaningful economic growth will be difficult due to the aforementioned austerity measures and a contraction of bank credit. Although there has been substantial improvement in the political environment and the fiscal outlook has improved recently, Italy's economic and ratings profile is expected to remain under pressure in the short-term.

Corporates, especially utilities, domiciled in Italy will continue to carry sovereign rating risk, but we expect they will continue to meet obligations due to factors including high barriers to entry, necessity of product/service, good operating cash flow, leading market positions and well-diversified product and market mix.

Italy's foreign currency long-term debt rating was downgraded by Moody's from Aa2 to A2 on October 4, 2011 and was further downgraded one notch by Moody's to A3 on February 13, 2012. S&P placed Italy's long-term debt rating of A on negative watch on December 5, 2011 and subsequently downgraded the rating to BBB+ on January 13, 2012. Italy's foreign currency long-term debt rating was downgraded by Fitch from AA- to A+ on October 7, 2011. Italy's rating was again placed on negative watch by Fitch on December 16, 2011, and was subsequently downgraded to A- on January 27, 2012.

As of March 31, 2012, all of our Italian exposures were rated investment-grade and were current on their obligations to us, and we believe they have the ability to meet their obligations to us.

Portugal

As of March 31, 2012, our total direct exposure to Portugal was $294 million, at amortized cost. All of this exposure is to two electric utility issuers domiciled in Portugal; Redes Energeticas Nacionas SGPS, S.A. (REN) and

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Energias de Portugal SA (EDP). Our exposure to REN and EDP was $122 million and $173 million, respectively, at amortized cost.

REN, an electric transmission operator, was rated Ba1/BB+ by Moody's and S&P, respectively, as of March 31, 2012. Our investment in REN was classified as below investment grade. As of March 31, 2012, REN was current on its obligations to us, and we believe it has the ability to meet its obligations to us.

EDP, an integrated electric utility, was rated Ba1/BB+/BBB+ by Moody's, S&P, and Fitch, respectively, as of March 31, 2012. Our investments issued by EDP were classified as below investment grade. As of December 31, 2011, our investments in EDP had been classified as investment grade. EDP’s debt rating from Moody’s had been Baa3 since July 8, 2011. However, following Moody’s downgrade of Portugal to Ba3 on February 13, 2012, EDP’s debt rating was downgraded to Ba1 on February 16, 2012. S&P placed EDP’s foreign issuer credit rating on credit watch negative on December 8, 2011 and subsequently downgraded it from BBB to BB+ on February 1, 2012. Due to these downgrades, we classified our investments in EDP as below investment grade effective February 2012 and transferred these investments from the held-to-maturity portfolio to the available-for-sale portfolio. As of March 31, 2012, EDP was current on its obligations to us, and we believe it has the ability to meet its obligations to us.

Utilities domiciled in Portugal will continue to carry sovereign rating risk and could experience difficulty in accessing capital markets because of that risk. However, we expect they will continue to meet debt obligations as a result of factors including high barriers to entry, necessity of product/service, good operating cash flow, market leading positions and well-diversified markets.

Spain

During 2011, the Euro area sovereign crisis shifted to other periphery European sovereigns, including Spain. The factors influencing the crisis in Spain include the EU leadership's inability to solve the Greece fiscal problem, high unemployment and other social burdens, the rapid decline of its real estate/construction sector, a high fiscal deficit and a difficulty at both the federal and regional level to address the government's fiscal budget.

We expect the operating environment will be difficult in 2012 as Spain's government implements austerity measures to reduce deficits at both the federal and regional levels. In addition, meaningful economic growth will be difficult due to the aforementioned austerity measures and a contraction of bank credit. Greater uncertainty over their fiscal profiles could make it difficult for most regional governments in Spain to obtain reasonable financing for existing and new debt facilities. Therefore, Spain's and its regional governments' economic and ratings profile is expected to remain under pressure in the short-term.

As of March 31, 2012, our total direct exposure to Spain was $2.5 billion, at amortized cost. This exposure comprised $602 million of investments in sub-sovereign (i.e. regional governments) issuers; a senior unsecured bank obligation of $182 million; several Lower Tier II bank obligations of $302 million; and Spain-domiciled utilities and industrials of $876 million and $508 million, respectively.

Corporates, especially utilities, domiciled in Spain will continue to carry sovereign rating risk, but we expect they will continue to meet obligations due to some or all of the following factors including high barriers to entry, necessity of product/service, good operating cash flow, market leading positions and well-diversified product and market mix.

Spain's foreign currency long-term debt rating was downgraded by Moody's from Aa2 to A1 on October 18, 2011 and was further downgraded two notches by Moody's to A3 on February 13, 2012. S&P placed Spain's foreign currency long-term rating of AA- on negative watch on December 5, 2011 and subsequently downgraded the rating to A on January 13, 2012 and then to BBB+ on April 26, 2012. Spain's foreign currency long-term debt rating of AA- was placed on negative watch by Fitch on December 16, 2011 and was subsequently downgraded to A on January 27, 2012.

As of March 31, 2012, all of our Spain-domiciled exposures were rated investment grade and were current on their obligations to us, and we believe they have the ability to meet their obligations to us.

Monitoring and mitigating exposure

During most of 2011, we saw the Euro area sovereign crisis persist and escalate.  As a result, we saw contagion risk expand from periphery Eurozone sovereign credits to also include core Eurozone sovereign credits.  Apart from

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our direct investments in sovereign debt, we view our European financial holdings as our largest indirect exposure due to the high correlation between financials and the sovereign from both a ratings and economics perspective.  Our other significant source of indirect exposure is via our investment in fixed income securities issued by integrated electric utilities and industrials domiciled in periphery Eurozone countries.  As of March 31, 2012, we had investments of $10.8 billion in European financials (including $2.1 billion in the United Kingdom), $2.1 billion in periphery Eurozone utilities and $1.6 billion in periphery Eurozone industrials, at amortized cost.  Our large and diversified exposure requires a considerable allocation of resources. In order to maintain up-to-date knowledge of conditions, we use a number of tools and resources including news reports, rating agency commentary and reports, company reports, third party research, and academic and regulator commentary.   In addition, we regularly conduct teleconference and on-site interviews with executives of companies in which we have invested in Europe, rating agency analysts and Euro area regulatory officials to assist us in the monitoring and evaluation of conditions in the Euro area. 

Due to the persistency of this crisis and the opportunity to obtain better financial data from the European Banking Authority (EBA) stress tests performed during the year, we performed a more intense and comprehensive stress test on all our financial institutional holdings.  Our stress test incorporated the development of several negative events, including the restructuring of European periphery sovereigns and an overall deterioration in various capital ratios.  The results of the test assisted us in identifying those credits more likely to experience a serious credit event resulting from a large restructuring event and considering implementing risk mitigation strategies, including, but not limited to, redemption, impairment, sale, or use of credit derivatives. It should be noted that the majority of our holdings are structured as privately issued securities and therefore, other than impairment, there can be no assurance that these risk mitigation strategies would be effective or could be easily executed.

Additionally, in the second half of 2011, we performed a general stress test of our entire investment portfolio based on the recurrence of conditions similar to those experienced in 2008.  These conditions incorporated several events, including default of one or more of the Euro area sovereign credits, strengthening of the yen, recession in Japan, Europe and the United States, and a general contraction in available credit.  The test contemplated both direct and indirect exposures.  The results assisted us in identifying those credits more likely to experience a serious credit event in the coming quarters and possibly implementing risk mitigation strategies, including, but not limited to, redemption, impairment, sale, or use of credit derivatives. As mentioned above, the majority of our holdings are structured as privately issued securities and therefore, other than impairment, there can be no assurance that these risk mitigation strategies would be effective or could be easily executed.

In addition, several of our fixed income investments issued by periphery European sub-sovereigns and periphery Eurozone domiciled utilities contain covenants that enable us to seek an early redemption of our security.  The covenants contained in these instruments vary from put options that vest should the issuer be downgraded to below investment grade by a rating agency, obligations to maintain leverage below a certain level, obligations to maintain interest coverage ratios above a certain level or a combination of the above.  On an amortized cost basis, as of March 31, 2012, we had $1.3 billion in securities issued by periphery sub-sovereigns and corporates containing below-investment-grade put options, of which $383 million were issued by sub-sovereign entities and $900 million were issued by corporate and utility companies.  As of March 31, 2012, we had $815 million in securities issued by periphery corporate and utility companies that contained a leverage covenant, an interest coverage covenant, or a combination of both.

In February 2012, Moody's announced that it will be reviewing several European banks for possible downgrades. The review is expected to be completed by the end of June 2012.  While the results of the review are not known at this time, early indications are that as much as $4.8 billion of amortized cost of our holdings are subject to these possible ratings actions.

Derisking

During 2011 and continuing into the first quarter of 2012, we pursued strategic investment activities to lower the risk profile of our investment portfolio. Our primary focus during the first quarter of 2012 was on reducing our exposure to perpetual and other subordinated securities of European issuers, particularly in the financial sector. As a result of our investment derisking activities in 2011 and the first quarter of 2012, we have experienced significant reductions in peripheral Eurozone, perpetual, and financial exposures on an amortized cost basis. At the start of 2008, sovereign and financial investments in peripheral Eurozone countries comprised 5.9% of total investments and cash, declining to 2.1% by the end of the first quarter of 2012. At the start of 2008, investments in perpetual securities comprised 14.7% of total investments and cash, declining to 5.5% by the end of the first quarter of 2012. As a result of these derisking activities, we have no direct sovereign or financial investment exposure to Greece or Portugal, and we have only

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senior indebtedness in Ireland.

Securities by Type of Issuance

We have investments in both publicly and privately issued securities. The outstanding amount of a particular issuance, as well as the level of activity in a particular issuance and market conditions, including credit events and the interest rate environment, affect liquidity regardless of whether it is publicly or privately issued.

The following table details investment securities by type of issuance.

Investment Securities by Type of Issuance

	March 31, 2012				December 31, 2011
(In millions)	Amortized Cost		Fair    Value		Amortized Cost		Fair   Value
Publicly issued securities:
Fixed maturities	$	48,437	$	50,924	$	45,475	$	48,163
Perpetual securities	176		175		195		178
Equity securities	12		15		13		15
Total publicly issued	48,625		51,114		45,683		48,356
Privately issued securities:
Fixed maturities	44,534		44,042		46,890		45,792
Perpetual securities	5,346		5,177		6,702		6,261
Equity securities	9		10		9		10
Total privately issued	49,889		49,229		53,601		52,063
Total investment securities	$	98,514	$	100,343	$	99,284	$	100,419

The following table details our privately issued investment securities.

Privately Issued Securities

(Amortized cost, in millions)	March 31, 2012			December 31, 2011
Privately issued securities as a percentage of total debt and perpetual securities	50.6		%	54.0		%
Privately issued securities held by Aflac Japan	$	47,061		$	50,819
Privately issued securities held by Aflac Japan as a percentage of total debt and perpetual securities	47.8		%	51.2		%

Reverse-Dual Currency Securities ⁽¹⁾ 

(Amortized cost, in millions)	March 31, 2012			December 31, 2011
Privately issued reverse-dual currency securities	$	11,504		$	12,655
Publicly issued collateral structured as reverse-dual currency securities	2,855			2,958
Total reverse-dual currency securities	$	14,359		$	15,613
Reverse-dual currency securities as a percentage of total debt and perpetual securities	14.6		%	15.7		%

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

The decrease in privately issued securities as a percentage of total debt and perpetual securities was due primarily to sales and impairments of investments and the allocation of new investments to JGBs during the first three months of 2012.

Aflac Japan has invested in 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

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yen-denominated privately issued securities consist primarily of non-Japanese issuers and have longer maturities, thereby allowing us to improve our asset/liability matching and our overall investment returns. Most of our privately issued securities are 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 are required.

Below-Investment-Grade and Split-Rated Securities

The below-investment-grade securities shown in the following table were investment grade at the time of purchase and were subsequently downgraded.

Below-Investment-Grade Securities⁽¹⁾ 

	March 31, 2012									December 31, 2011
(In millions)	Par Value		Amortized Cost		Fair Value		Unrealized Gain(Loss)			Par Value		Amortized Cost		Fair Value		Unrealized Gain(Loss)
Israel Electric Corp. Ltd.	$	840	$	788	$	718	$	(70	)	$	888	$	847	$	805	$	(42	)
Republic of Tunisia(2)	779		778		802		24			823		823		877		54
Investcorp Capital Limited	500		500		428		(72		)	526		526		441		(85		)
Commerzbank AG (includes Dresdner Bank)	487		313		369		56			*		*		*		*
Erste Group Bank (Erste Finance Jersey Ltd. 3 & 5)(3)	426		271		271		0			450		424		253		(171		)
Lloyds Banking Group PLC	408		361		373		12			408		360		312		(48		)
UPM-Kymmene	377		377		245		(132		)	399		399		235		(164		)
Ford Motor Credit Company	365		365		369		4			386		386		388		2
CSAV (Tollo Shipping Co. S.A.)	292		123		140		17			309		130		130		0
Bank of Ireland	243		243		125		(118		)	257		257		140		(117		)
Tokyo Electric Power Co., Inc.	219		222		214		(8		)	232		235		211		(24		)
Energias de Portugal SA (EDP)	175		173		145		(28		)	*		*		*		*
Swedbank AB(3)	170		131		103		(28		)	*		*		*		*
IKB Deutsche Industriebank AG	158		83		95		12			167		87		87		0
Hypo Vorarlberg Capital Finance(3)	134		69		69		0			141		83		86		3
Redes Energeticas Nacionais SGPS,S.A. (REN)	122		122		102		(20		)	129		129		105		(24		)
Finance For Danish Industry (FIH)	122		94		103		9			129		100		100		0
Sparebanken Vest(3)	60		60		62		2			*		*		*		*
Dexia SA (Includes Dexia Bank Belgium & Dexia Overseas)(3)	0		0		0		0			579		190		190		0
Bawag Capital Finance Jersey(3)	0		0		0		0			180		77		77		0
Various Other Issuers (below $50 million in par value)(4)	418		387		374		(13		)	394		362		330		(32		)
Total	$	6,295	$	5,460	$	5,107	$	(353	)	$	6,397	$	5,415	$	4,767	$	(648	)

* Investment grade at respective reporting date

⁽¹⁾ Does not include senior secured bank loans in an externally managed portfolio that were below investment grade when initially purchased

⁽²⁾ Deemed by the Company to be below investment grade

⁽³⁾ Perpetual security

⁽⁴⁾ Includes 17 different issuers in 2012 and 16 different issuers in 2011

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In May 2011, we initiated a limited program to invest in senior secured bank loans to U.S. and Canadian corporate borrowers, most of which have below-investment-grade ratings. The program is managed externally by a third party firm specializing in this asset class. Its mandate requires a minimum average credit quality of BB-/Ba3, no loans rated below B/B2, and no exposure to any individual credit greater than 3% of the program’s assets. The objectives of this program include enhancing the yield on invested assets, achieving further diversification of credit risk, and mitigating the risk of rising interest rates through the acquisition of floating rate assets. As of March 31, 2012, our investments in this program totaled $154 million at amortized cost.

Excluding the senior secured bank loans discussed above that were rated below investment grade when initially purchased, below-investment-grade debt and perpetual securities represented 5.5% of total debt and perpetual securities at March 31, 2012 and December 31, 2011, at amortized cost. Debt and perpetual securities classified as below investment grade at March 31, 2012 and December 31, 2011 were generally reported as available for sale and carried at fair value.

Occasionally, a debt or perpetual security will be split rated. This occurs when one rating agency rates the security as investment grade while another rating agency rates the same security as below investment grade. As of the first quarter of 2012, our policy is to utilize the second lowest rating designation assigned to the security which in this case where there are only two ratings - one investment grade and one below investment grade - would result in the security being rated as below investment grade.  In the event that the second lowest rating designation from the major credit rating agencies (Moody's, S&P and Fitch) is investment grade, our policies do not preclude us from assigning a below-investment-grade rating if our own internal analysis shows a credit deterioration has occurred and our assessment results in a rating below that which is assigned by such agencies. Our review in those cases includes evaluating the issuer’s credit position as well as current market pricing and other factors, such as the issuer’s or security’s inclusion on a credit rating downgrade watch list. Split-rated securities, excluding the senior secured bank loan investments discussed above, totaled $2.9 billion as of March 31, 2012, and $2.7 billion as of December 31, 2011, and represented 3% of total debt and perpetual securities, at amortized cost, at March 31, 2012, and December 31, 2011. The 10 largest split-rated securities as of March 31, 2012, were as follows:

Split-Rated Securities
(In millions)	Amortized Cost		Investment-Grade  Status
Israel Electric Corp. Ltd.	$	788	Below Investment Grade
SLM Corp.	395		Investment-Grade
UniCredit Bank AG (HVB Funding Trust I, III & VI)	357		Investment-Grade
Commerzbank AG (includes Dresdner Bank)	313		Below Investment Grade
Bank of Ireland	243		Below Investment Grade
Energias de Portugal SA (EDP)	173		Below Investment Grade
Swedbank AB (1)	131		Below Investment Grade
Goldman Sachs Capital I	120		Investment-Grade
Sparebanken Vest (1)	60		Below Investment Grade
Barclays Bank PLC	48		Investment-Grade

⁽¹⁾ Perpetual security

Other-than-temporary Impairment

See Note 3 of the Notes to the Consolidated Financial Statements for a discussion of our impairment policy.

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Unrealized Investment Gains and Losses

The following table provides details on amortized cost, fair value and unrealized gains and losses for our investments in debt and perpetual securities by investment-grade status as of March 31, 2012.

(In millions)	Total Amortized Cost		Total Fair Value		Percentage of Total Fair Value		Gross Unrealized Gains		Gross         Unrealized         Losses
Available-for-sale securities:
Investment-grade securities	$	44,052	$	46,619	46.5	%	$	3,389	$	822
Below-investment-grade securities	5,607		5,255		5.2		164		516
Held-to-maturity securities:
Investment-grade securities	48,834		48,444		48.3		968		1,358
Total	$	98,493	$	100,318	100.0	%	$	4,521	$	2,696

The following table presents an aging of debt and perpetual securities in an unrealized loss position as of March 31, 2012.

Aging of Unrealized Losses

	Total Amortized Cost		Total Unrealized Loss		Less than Six Months				Six Months to Less than 12 Months				12 Months or Longer
(In millions)
					Amortized Cost		Unrealized Loss		Amortized Cost		Unrealized Loss		Amortized Cost		Unrealized Loss
Available-for-sale securities:
Investment-grade securities	$	10,791	$	822	$	2,826	$	71	$	678	$	33	$	7,287	$	718
Below- investment-grade securities	2,922		516		590		40		696		84		1,636		392
Held-to-maturity securities:
Investment-grade securities	19,616		1,358		4,981		28		1,728		65		12,907		1,265
Total	$	33,329	$	2,696	$	8,397	$	139	$	3,102	$	182	$	21,830	$	2,375

The following table presents a distribution of unrealized losses on debt and perpetual securities by magnitude as of March 31, 2012.

Percentage Decline From Amortized Cost

(In millions)	Total Amortized Cost		Total Unrealized Loss		Less than 20%				20% to 50%				Greater than 50%
					Amortized Cost		Unrealized Loss		Amortized Cost		Unrealized Loss		Amortized Cost		Unrealized Loss
Available-for-sale securities:
Investment-grade securities	$	10,791	$	822	$	10,468	$	735	$	323	$	87	$	0	$	0
Below- investment-grade securities	2,922		516		2,112		224		810		292		0		0
Held-to-maturity securities:
Investment-grade securities	19,616		1,358		18,703		1,081		913		277		0		0
Total	$	33,329	$	2,696	$	31,283	$	2,040	$	2,046	$	656	$	0	$	0

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The following table presents the 10 largest unrealized loss positions in our portfolio as of March 31, 2012.

(In millions)	Credit Rating	Amortized Cost		Fair Value		Unrealized     Loss
UPM-Kymmene	BB	$	377	$	245	$	(132	)
SLM Corp.	BBB	395		273		(122		)
Bank of Ireland	BB	243		125		(118		)
UniCredit SpA (includes UniCredit Bank AG and UniCredit Bank Austria AG)	BBB	572		487		(85		)
Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU Curacao Holdings N.V.)	A	547		471		(76		)
Bank of America Corp. (includes Merrill Lynch)	A	547		475		(72		)
Investcorp Capital Limited	BB	500		428		(72		)
Israel Electric Corp. Ltd.	BB	788		718		(70		)
Republic of Poland	A	250		192		(58		)
Svenska Handelsbanken AB (1)	BBB	214		162		(52		)

⁽¹⁾ Perpetual security

Declines in fair value noted above were impacted by changes in interest rates and credit spreads, yen/dollar exchange rates, and issuer credit status. However, we believe it would be inappropriate to recognize impairment charges because we believe the changes in fair value are temporary. See the Investment Concentrations and Unrealized Investment Gains and Losses sections in Note 3 of the Notes to the Consolidated Financial Statements for further discussions of unrealized losses related to Ireland, financial institutions including perpetual securities, and other corporate investments.

Investment Valuation and Cash

We estimate the fair values of our securities available for sale on a monthly basis. We monitor the estimated fair values derived from our discounted cash flow pricing model and those obtained from our custodian, pricing vendors and brokers for consistency from month to month, while considering current market conditions. We also periodically discuss with our custodian and pricing brokers and vendors the pricing techniques they use to monitor the consistency of their approach and periodically assess the appropriateness of the valuation level assigned to the values obtained from them.

Due to our reliance on third-party pricing services to provide valuations on 51% of our Level 2 available-for-sale portfolio and 3% of our Level 2 held-to-maturity portfolio (for disclosure purposes), we regularly discuss and review pricing methodologies with the investment custodian. We also review the custodians' Service Organization Control (SOC 1) report for the period covering the current year to gain satisfaction with the controls and control environment of the custodian.

See Note 5 of the Notes to the Consolidated Financial Statements for the fair value hierarchy classification of our securities available for sale as of March 31, 2012.

Cash and cash equivalents totaled $2.21 billion, or 2.1% of total investments and cash, as of March 31, 2012, compared with $2.25 billion, or 2.2%, at December 31, 2011. For a discussion of the factors affecting our cash balance, see the Operating Activities, Investing Activities and Financing Activities subsections of this MD&A.

For additional information concerning our investments, see Notes 3, 4, and 5 of the Notes to the Consolidated Financial Statements.

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Deferred Policy Acquisition Costs

The following table presents deferred policy acquisition costs by segment.

(In millions)	March 31, 2012		December 31, 2011		% Change
Aflac Japan	$	6,826	$	7,102	(3.9	)%	(1)
Aflac U.S.	2,716		2,687		1.1
Total	$	9,542	$	9,789	(2.5	)%

⁽¹⁾Aflac Japan’s deferred policy acquisition costs increased 1.6% in yen during the three months ended March 31, 2012.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

See Note 1 of the Notes to the Consolidated Financial Statements and the New Accounting Pronouncements subsection of this MD&A for a discussion of changes to the accounting policy for DAC effective January 1, 2012.

Policy Liabilities

The following table presents policy liabilities by segment.

(In millions)	March 31, 2012		December 31, 2011		% Change
Aflac Japan	$	84,824	$	86,522	(2.0	)%	(1)
Aflac U.S.	8,178		8,069		1.4
Other	2		2		.0
Total	$	93,004	$	94,593	(1.7	)%

⁽¹⁾ Aflac Japan’s policy liabilities increased 3.7% in yen during the three months ended March 31, 2012.

Notes Payable

Notes payable totaled $4.0 billion at March 31, 2012, compared with $3.3 billion at December 31, 2011. In February 2012, the Parent Company issued $750 million of senior notes through a U.S. public debt offering.The ratio of debt to total capitalization (debt plus shareholders’ equity, excluding the unrealized gains and losses on investment securities and derivatives) was 24.5% as of March 31, 2012, compared with 21.0% as of December 31, 2011. See Note 6 of the accompanying Notes to the Consolidated Financial Statements for additional information on our notes payable.

Benefit Plans

Aflac Japan and Aflac U.S. have various benefit plans. For additional information on our Japanese and U.S. plans, see Note 9 of the accompanying Notes to the Consolidated Financial Statements and Note 13 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011.

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 through March 2012. On December 27, 2011, Japan's FSA announced the plans to enhance the stability of the LIPPC by extending the government's fiscal support of the LIPPC through March 2017. Accordingly, the FSA submitted legislation to the Diet on January 27, 2012 to extend the government's fiscal support framework, andthe legislation was approved on March 30, 2012.

Hedging Activities

Net Investment Hedge

Our primary exposure to be hedged is our investment in Aflac Japan, which is affected by changes in the yen/dollar exchange rate. To mitigate this exposure, we have taken the following courses of action. First, Aflac Japan maintains a portfolio of dollar-denominated securities, which serve as an economic currency hedge of a portion of our investment in Aflac Japan. The foreign exchange gains and losses related to this portfolio are taxable in Japan and the U.S. when the securities mature or are sold. Until maturity or sale, deferred tax expense or benefit associated with the foreign exchange gains or losses are recognized in other comprehensive income. Second, we have designated the

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majority of the Parent Company’s yen-denominated liabilities (Samurai and Uridashi notes and yen-denominated loans) as a hedge of our investment in Aflac Japan. At the beginning of each quarter, we make our net investment hedge designation. If the total of our designated yen-denominated liabilities is equal to or less than our net investment in Aflac Japan, the hedge is deemed to be effective and the related exchange effect on the liabilities is reported in the unrealized foreign currency component of other comprehensive income. Should these designated yen-denominated liabilities exceed our investment in Aflac Japan, the foreign exchange effect on the portion of the liabilities that exceeds our investment in Aflac Japan would be recognized in net earnings. We estimate that if our yen-denominated liabilities exceeded our investment in Aflac Japan by 10 billion yen, we would report a foreign exchange gain/loss of approximately $1 million for every 1% yen weakening/strengthening in the end-of-period yen/dollar exchange rate. Our net investment hedge was effective during the three-month periods ended March 31, 2012 and 2011, respectively.

The yen net asset figure calculated for hedging purposes differs from the yen-denominated net asset position as discussed in the Currency Risk subsection of MD&A. As disclosed in that subsection, the consolidation of the underlying assets in certain VIEs requires that we derecognize our yen-denominated investment in the VIE and recognize the underlying U.S. dollar-denominated fixed-maturity or perpetual securities and cross-currency swaps. While these U.S. dollar investments will create foreign currency fluctuations, the combination of the U.S. dollar-denominated investment and the cross-currency swap economically creates a yen-denominated investment that qualifies for inclusion as a component of our investment in Aflac Japan.

The dollar values of our yen-denominated net assets, including certain VIEs as yen-denominated investments for net investment hedging purposes as discussed above, are summarized as follows (translated at end-of-period exchange rates):

(In millions)	March 31, 2012			December 31, 2011
Aflac Japan yen-denominated net assets	$	4,486		$	3,255
Parent Company yen-denominated net liabilities	(821		)	(1,258		)
Consolidated yen-denominated net assets (liabilities) subject to foreign currency translation fluctuations	$	3,665		$	1,997

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

Cash Flow Hedges

We have freestanding derivative instruments that are reported in the consolidated balance sheet at fair value and are reported in other assets and other liabilities. During 2011, we de-designated certain of the derivatives used in cash flow hedging strategies as a result of determining that these swaps would no longer be highly effective in offsetting the cash flows of the hedged item. The $7 million after-tax gain recorded in accumulated other comprehensive income for these swaps is being amortized into earnings over the expected life of the respective hedged item. The amount amortized from accumulated other comprehensive income into earnings related to these swaps was immaterial for the three-month period ended March 31, 2012. As of March 31, 2012, a couple of the freestanding foreign currency swaps that are used within VIEs to hedge the risk arising from changes in foreign currency exchange rates still qualified for hedge accounting. See Note 4 of the Notes to the Consolidated Financial Statements for additional information.

We have an interest rate swap agreement related to our 5.5 billion yen variable interest rate Samurai notes that we issued in July 2011. By entering into this contract, we swapped the variable interest rate to a fixed interest rate of 1.475%. We have designated this interest rate swap as a hedge of the variability in our interest cash flows associated with the variable interest rate Samurai notes. This hedge was effective during the three-month periods ended March 31, 2012 and 2011, respectively. See Note 4 of the Notes to the Consolidated Financial Statements for additional information.

Off-Balance Sheet Arrangements

    As of March 31, 2012, we had no material letters of credit, standby letters of credit, guarantees or standby repurchase obligations. See Note 14 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011, for information on material unconditional purchase obligations that are not recorded on our balance sheet.

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CAPITAL RESOURCES AND LIQUIDITY

Aflac provides the primary sources of liquidity to the Parent Company through dividends and management fees. The following table presents the amounts provided for the three-month periods ending March 31.

Liquidity Provided by Aflac to Parent Company

(In millions)	2012		2011
Dividends declared or paid by Aflac	$	0	$	141
Management fees paid by Aflac	67		57

The primary uses of cash by the Parent Company are shareholder dividends, the repurchase of its common stock and interest on its outstanding indebtedness. The Parent Company’s sources and uses of cash are reasonably predictable and are not expected to change materially in the future. For additional information, see the Financing Activities subsection of this MD&A.

The Parent Company also accesses debt security markets to provide additional sources of capital. In May 2009, we filed a shelf registration statement with the SEC that allows us to issue an indefinite amount of senior and subordinated debt, in one or more series, from time to time through May 2012. As of March 31, 2012, we had issued $2.75 billion of senior notes under this registration statement. Due to the pending expiration of this registration statement, in May 2012 we filed a shelf registration statement with the SEC that allows us to issue an indefinite amount of senior and subordinated debt, in one or more series, from time to time until May 2015. In December 2011, we filed a shelf registration statement with Japanese regulatory authorities that allows us to issue up to 100 billion yen of yen-denominated Samurai notes in Japan through January 2014. If issued, these yen-denominated Samurai notes would not be available to U.S. persons. We believe outside sources for additional debt and equity capital, if needed, will continue to be available. For additional information, see Note 6 of the Notes to the Consolidated Financial Statements.

The principal sources of cash for our insurance operations are premiums and investment income. The primary uses of cash by our insurance operations are investments, policy claims, commissions, operating expenses, income taxes and payments to the Parent Company for management fees and dividends. Both the sources and uses of cash are reasonably predictable.

When making an investment decision, our first consideration is based on product needs. Our investment objectives provide for liquidity through the purchase of investment-grade debt securities. These objectives also take into account duration matching, and because of the long-term nature of our business, we have adequate time to react to changing cash flow needs.

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. We expect our future cash flows from premiums and our investment portfolio to be sufficient to meet our cash needs for benefits and expenses.

Our financial statements adequately convey our financing arrangements during the periods presented. We have not engaged in material intra-period short-term financings during the periods presented that are not otherwise reported in our balance sheet. We do not have any restrictive financial covenants related to our notes payable, and we were in compliance with all of the covenants of our notes payable at March 31, 2012. We have 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 Note 3 of the Notes to the Consolidated Financial Statements and Note 1 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011, for more information on our securities lending activity. We do not have a known trend, demand, commitment, event or uncertainty that would reasonably result in our liquidity increasing or decreasing by a material amount. Our 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.

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Consolidated Cash Flows

We translate 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.

(In millions)	2012			2011
Operating activities	$	3,556		$	2,167
Investing activities	(4,436		)	(2,013		)
Financing activities	901			(171		)
Exchange effect on cash and cash equivalents	(60		)	(16		)
Net change in cash and cash equivalents	$	(39	)	$	(33	)

Operating Activities

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

(In millions)	2012		2011
Aflac Japan	$	3,318	$	1,848
Aflac U.S. and other operations	238		319
Total	$	3,556	$	2,167

Investing Activities

Operating cash flow is primarily used to purchase debt securities to meet future policy obligations. The following table summarizes investing cash flows by source for the three-month periods ended March 31.

(In millions)	2012			2011
Aflac Japan	$	(4,256	)	$	(1,900	)
Aflac U.S. and other operations	(180		)	(113		)
Total	$	(4,436	)	$	(2,013	)

Prudent portfolio management dictates that we attempt to match the duration of our assets with the duration of our liabilities. Currently, when our debt and perpetual 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 our business and our strong cash flows provide us with the ability to minimize the effect of mismatched durations and/or yields identified by various asset adequacy analyses. When market opportunities arise, we dispose of selected debt and perpetual securities that are available for sale to improve the duration matching of our assets and liabilities, improve future investment yields, and/or rebalance our portfolio. As a result, dispositions before maturity can vary significantly from year to year. Dispositions before maturity were approximately 1% of the year-to-date average investment portfolio of debt and perpetual securities available for sale during the three-month period ended March 31, 2012, compared with 2% during the same period a year ago.

Financing Activities

Consolidated cash provided by financing activities was $901 million in the first three months of 2012, compared with consolidated cash used by financing activities of $171 million for the same period of 2011. Cash returned to shareholders through dividends and treasury stock purchases was $158 million during the three-month period ended March 31, 2012, compared with $319 million during the three-month period ended March 31, 2011.

In February 2012, the Parent Company issued $400 million and $350 million of senior notes that are due in February 2017 and February 2022, respectively. We plan to use proceeds from this debt offering to redeem 26.6 billion yen (approximately $324 million using the March 31, 2012, exchange rate) of Samurai notes when they mature in June 2012.

We have no restrictive financial covenants related to our notes payable. We were in compliance with all of the covenants of our notes payable at March 31, 2012.

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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)	2012		2011
Treasury stock purchases	$	10	$	184
Number of shares purchased:
Open market	0		3,100
Other	199		151
Total shares purchased	199		3,251

Treasury Stock Issued

(In millions of dollars and thousands of shares)	2012		2011
Stock issued from treasury:
Cash financing	$	5	$	16
Noncash financing	18		8
Total stock issued from treasury	$	23	$	24
Number of shares issued	554		484

During the first three months of 2012, we did not repurchase any shares of our common stock as part of our share repurchase program. As of March 31, 2012, a remaining balance of 24.4 million shares of our common stock was available for purchase under a share repurchase authorization by our board of directors in 2008.

Cash dividends paid to shareholders were $.33 per share in the first quarter of 2012, compared with $.30 per share in the first quarter of 2011. The following table presents the dividend activity for the three-month periods ended March 31.

(In millions)	2012		2011
Dividends paid in cash	$	148	$	135
Dividends through issuance of treasury shares	6		6
Total dividends to shareholders	$	154	$	141

In April 2012, the board of directors declared the second quarter cash dividend of $.33 per share. The dividend is payable on June 1, 2012, to shareholders of record at the close of business on May 16, 2012.

Regulatory Restrictions

Aflac is domiciled in Nebraska and is subject to its regulations. A life insurance company’s statutory capital and surplus is determined according to rules prescribed by the NAIC, as modified by the insurance department in the insurance company’s state of domicile. Statutory accounting rules are different from GAAP and are intended to emphasize policyholder protection and company solvency. The continued long-term growth of our business may require increases in the statutory capital and surplus of our insurance operations. Aflac’s insurance operations may secure additional statutory capital through various sources, such as internally generated statutory earnings or equity contributions by the Parent Company from funds generated through debt or equity offerings. The NAIC’s risk-based capital (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. Aflac’s company action level RBC ratio was estimated to be within the range of 500% and 540% as of March 31, 2012. Aflac’s RBC ratio remains high and reflects a strong capital and surplus position.

In addition to limitations and restrictions imposed by U.S. insurance regulators, Japan’s FSA may not allow profit repatriations from Aflac Japan if the transfers would cause Aflac Japan to lack sufficient financial strength for the protection of policyholders. The FSA maintains its own solvency standard. See the Japanese Regulatory Environment subsection of this MD&A for a discussion of changes to the calculation of the solvency margin ratio. Aflac Japan's solvency margin ratio, most recently reported as of December 31, 2011, was 985.8% using the former calculation method, which significantly exceeded regulatory minimums, and was 547.3% under the new standards, disclosed as reference information. As expected, based on the results of the calculation of the solvency margin ratio under the new standards, our relative position within the industry has not materially changed. Given the low interest rate environment and the

82

sensitivity of the solvency margin ratio to interest rate changes, we have recently taken actions to improve our solvency margin, including entering into surplus relief reinsurance contracts and increasing our allocation of JGBs classified as held to maturity. We continue to evaluate other alternatives for reducing the sensitivity of the solvency margin ratio against interest rate and foreign exchange rate changes.

Payments are made from Aflac Japan to the Parent Company for management fees and to Aflac U.S. for allocated expenses and remittances of earnings. The following table details Aflac Japan remittances for the three-month periods ended March 31.

Aflac Japan Remittances

(In millions)	2012		2011
Aflac Japan management fees paid to Parent Company	$	6	$	5
Expenses allocated to Aflac Japan	17		12

For additional information on regulatory restrictions on dividends, profit repatriations and other transfers, see Note 12 of the Notes to the Consolidated Financial Statements and the Regulatory Restrictions subsection of MD&A, both in our annual report to shareholders for the year ended December 31, 2011.

Other

For information regarding commitments and contingent liabilities, see Note 10 of the Notes to the Consolidated Financial Statements.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

The information required by Item 3 is incorporated by reference from the Market Risks of Financial Instruments subsection of MD&A in Part I, Item 2 of this report.

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 Rules 13a-15(e) and 15d-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 Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the first fiscal quarter of 2012 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

In April 2012, we implemented our SAP® worldwide financial reporting system. Our management believes that the implementation of this system will improve and enhance our internal control over financial reporting. This system will be used for our financial reporting beginning with the second quarter of 2012.

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PART II. OTHER INFORMATION

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

Issuer Purchases of Equity Securities

During the first quarter of 2012, we repurchased shares of Aflac 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	872		$	47.53	0	24,370,254
February 1 - February 29	145,086		48.48		0	24,370,254
March 1 - March 31	2,332		46.78		0	24,370,254
Total	148,290	(2)	$	48.45	0	24,370,254	(1)

⁽¹⁾The total remaining shares available for purchase at March 31, 2012, consisted of 24,370,254 shares related to a 30,000,000

share repurchase authorization by the board of directors announced in January 2008.

⁽²⁾During the first quarter of 2012, 148,290 shares were purchased in connection with income tax withholding obligations related

to the vesting of restricted-share-based awards during the period.

85

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 (File No. 001-07434).
3.1	-	Bylaws of the Corporation, as amended – incorporated by reference from Form 10-Q for March 31, 2010, Exhibit 3.1 (File No. 001-07434).
4.0	-	There are no instruments with respect to long-term debt not being registered in which the total amount of securities authorized exceeds 10% of the total assets of Aflac Incorporated and its subsidiaries on a consolidated basis. We agree to furnish a copy of any long-term debt instrument to the Securities and Exchange Commission upon request.
4.1	-	Indenture, dated as of May 21, 2009, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee – incorporated by reference from Form 8-K dated May 21, 2009, Exhibit 4.1 (File No. 001-07434).
4.2	-	First Supplemental Indenture, dated as of May 21, 2009, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including form of 8.500% Senior Note due 2019) – incorporated by reference from Form 8-K dated May 21, 2009, Exhibit 4.2 (File No. 001-07434).
4.3	-	Second Supplemental Indenture, dated as of December 17, 2009, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including form of 6.900% Senior Note due 2039) – incorporated by reference from Form 8-K dated December 14, 2009, Exhibit 4.1 (File No. 001-07434).
4.4	-	Third Supplemental Indenture, dated as of August 9, 2010, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including form of 6.45% Senior Note due 2040) - incorporated by reference from Form 8-K dated August 4, 2010, Exhibit 4.1 (File No. 001-07434).
4.5	-	Fourth Supplemental Indenture, dated as of August 9, 2010, between Aflac Incorporated and The Bank of New York and Mellon Trust Company, N.A., as trustee (including form of 3.45% Senior Note due 2015) – incorporated by reference from Form 8-K dated August 4, 2010, Exhibit 4.2 (File No. 001-07434).
4.6	-	Fifth Supplement Indenture, dated as of February 10, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including form of 2.65% Senior Note due 2017) - incorporated by reference from Form 8-K dated February 8, 2012, Exhibit 4.1 (File No. 001-07434).
4.7	-	Sixth Supplement Indenture, dated as of February 10, 2012, between Aflac Incorporated and The Bank of New York Mellon Trust Company, N.A., as trustee (including form of 4.00% Senior Note due 2022) - incorporated by reference from Form 8-K dated February 8, 2012, Exhibit 4.2 (File No. 001-07434).
10.0*	-	American Family Corporation Retirement Plan for Senior Officers, as amended and restated October 1, 1989 – incorporated by reference from 1993 Form 10-K, Exhibit 10.2 (File No. 001-07434).
10.1*	-	Amendment to American Family Corporation Retirement Plan for Senior Officers, dated December 8, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.1 (File No. 001-07434).
10.2*	-	Aflac Incorporated Supplemental Executive Retirement Plan, as amended and restated January 1, 2009 – incorporated by reference from 2008 Form 10-K, Exhibit 10.5 (File No. 001-07434).
10.3*	-	Aflac Incorporated Executive Deferred Compensation Plan, as amended and restated, effective January 1, 2009 – incorporated by reference from 2008 Form 10-K, Exhibit 10.9 (File No. 001-07434).
10.4*	-	First Amendment to the Aflac Incorporated Executive Deferred Compensation Plan dated June 1, 2009 – incorporated by reference from Form 10-Q for June 30, 2009, Exhibit 10.4 (File No. 001-07434).
10.5*	-	Aflac Incorporated Amended and Restated 2009 Management Incentive Plan – incorporated by reference from the 2008 Shareholders’ Proxy Statement, Appendix B (File No. 001-07434).
10.6*	-	First Amendment to the Aflac Incorporated Amended and Restated 2009 Management Incentive Plan, dated December 19, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.11 (File No. 001-07434).
10.7*	-	Aflac Incorporated Sales Incentive Plan – incorporated by reference from 2007 Form 10-K, Exhibit 10.8 (File No. 001-07434).
10.8*	-	1999 Aflac Associate Stock Bonus Plan, as amended, dated February 11, 2003 – incorporated by reference from 2002 Form 10-K, Exhibit 99.2 (File No. 001-07434).

86

10.9*	-	Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from the 1997 Shareholders’ Proxy Statement, Appendix B (File No. 001-07434).
10.10*	-	Form of Officer Stock Option Agreement (Non-Qualifying Stock Option) under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.5 (File No. 001-07434).
10.11*	-	Form of Officer Stock Option Agreement (Incentive Stock Option) under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.6 (File No. 001-07434).
10.12*	-	Notice of grant of stock options and stock option agreement to officers under the Aflac Incorporated 1997 Stock Option Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.7 (File No. 001-07434).
10.13*	-	2004 Aflac Incorporated Long-Term Incentive Plan, dated May 3, 2004 – incorporated by reference from the 2004 Notice and Proxy Statement, Exhibit B (File No. 001-07434).
10.14*	-	First Amendment to the 2004 Aflac Incorporated Long-Term Incentive Plan, dated May 2, 2005 – incorporated by reference from Form 10-Q for March 31, 2005, Exhibit 10.1 (File No. 001-07434).
10.15*	-	Second Amendment to the 2004 Aflac Incorporated Long-Term Incentive Plan, dated February 14, 2006 – incorporated by reference from Form 10-Q for March 31, 2006, Exhibit 10.32 (File No. 001-07434).
10.16*	-	Third Amendment to the 2004 Aflac Incorporated Long-Term Incentive Plan, dated December 19, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.21 (File No. 001-07434).
10.17*	-	Form of Non-Employee Director Stock Option Agreement (NQSO) under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.1 (File No. 001-07434).
10.18*	-	Notice of grant of stock options to non-employee director under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.2 (File No. 001-07434).
10.19*	-	Form of Non-Employee Director Restricted Stock Award Agreement under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.3 (File No. 001-07434).
10.20*	-	Notice of restricted stock award to non-employee director under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated January 28, 2005, Exhibit 10.4 (File No. 001-07434).
10.21*	-	Form of Officer Restricted Stock Award Agreement under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.1 (File No. 001-07434).
10.22*	-	Notice of restricted stock award to officers under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.2 (File No. 001-07434).
10.23*	-	Form of Officer Stock Option Agreement (Non-Qualifying Stock Option) under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.3 (File No. 001-07434).
10.24*	-	Form of Officer Stock Option Agreement (Incentive Stock Option) under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.4 (File No. 001-07434).
10.25*	-	Notice of grant of stock options to officers under the 2004 Aflac Incorporated Long-Term Incentive Plan – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.5 (File No. 001-07434).
10.26*	-	Aflac Incorporated Retirement Plan for Directors Emeritus, as amended and restated, dated February 9, 2010 – incorporated by reference from 2009 Form 10-K, Exhibit 10.26 (File No. 001-07434).
10.27*	-	Amendment to Aflac Incorporated Retirement Plan for Directors Emeritus, as amended and restated, dated August 10, 2010 – incorporated by reference from Form 10-Q for September 30, 2010, Exhibit 10.27 (File No. 001-07434).
10.28*	-	Aflac Incorporated Employment Agreement with Daniel P. Amos, dated August 1, 1993 – incorporated by reference from 1993 Form 10-K, Exhibit 10.4 (File No. 001-07434).
10.29*	-	Amendment to Aflac Incorporated Employment Agreement with Daniel P. Amos, dated December 8, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.32 (File No. 001-07434).

87

10.30*	-	Aflac Incorporated Employment Agreement with Kriss Cloninger III, dated February 14, 1992, and as amended November 12, 1993 – incorporated by reference from 1993 Form 10-K, Exhibit 10.6 (File No. 001-07434).
10.31*	-	Amendment to Aflac Incorporated Employment Agreement with Kriss Cloninger III, dated November 3, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.34 (File No. 001-07434).
10.32*	-	Amendment to Aflac Incorporated Employment Agreement with Kriss Cloninger III, dated December 19, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.35 (File No. 001-07434).
10.33*	-	Amendment to Aflac Incorporated Employment Agreement with Kriss Cloninger III, dated March 15, 2011 – incorporated by reference from Form 10-Q for March 31, 2011, Exhibit 10.33 (File No. 001-07434).
10.34*	-	Aflac Incorporated Employment Agreement with Paul S. Amos II, dated January 1, 2005 – incorporated by reference from Form 8-K dated February 7, 2005, Exhibit 10.2 (File No. 001-07434).
10.35*	-	Amendment to Aflac Incorporated Employment Agreement with Paul S. Amos II, dated December 19, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.39 (File No. 001-07434).
10.36*	-	Amendment to Aflac Incorporated Employment Agreement with Paul S. Amos II, dated March 7, 2012
10.37*	-	Aflac Incorporated Employment Agreement with Joey Loudermilk, dated September 12, 1994 and as amended December 10, 2008 – incorporated by reference from 2008 Form 10-K, Exhibit 10.40 (File No. 001-07434).
10.38*	-	Amendment to Aflac Incorporated Employee Agreement with Joey Loudermilk, dated December 14, 2011 - incorporated by reference from 2011 Form 10-K, Exhibit 10.37 (File No. 001-07434).
10.39*	-	Aflac Incorporated Employment Agreement with Tohru Tonoike, effective February 1, 2007 – incorporated by reference from 2008 Form 10-K, Exhibit 10.41 (File No. 001-07434).
10.40*	-	Amendment to Aflac Incorporated Employment Agreement with Tohru Tonoike, dated February 9, 2010 – incorporated by reference from 2009 Form 10-K, Exhibit 10.36 (File No. 001-07434).
10.41*	-	Aflac Retirement Agreement with E. Stephen Purdom, dated February 15, 2000 – incorporated by reference from 2000 Form 10-K, Exhibit 10.13 (File No. 001-07434).
11	-	Statement regarding the computation of per-share earnings for the Registrant.
12	-	Statement regarding the computation of ratio of earnings to fixed charges for the Registrant.
15	-	Letter from KPMG LLP regarding unaudited interim financial information.
31.1	-	Certification of CEO dated May 4, 2012, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
31.2	-	Certification of CFO dated May 4, 2012, 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 May 4, 2012, pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	-	XBRL Instance Document.(1)
101.SCH	-	XBRL Taxonomy Extension Schema.
101.CAL	-	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	-	XBRL Taxonomy Extension Definition Linkbase.
101.LAB	-	XBRL Taxonomy Extension Label Linkbase.
101.PRE	-	XBRL Taxonomy Extension Presentation Linkbase.

(1)

Includes the following materials contained in this Quarterly Report on Form 10-Q for the period ended March 31, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Earnings, (ii) Consolidated Statements of Comprehensive Income (Loss), (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, (vi) Notes to the Consolidated Financial Statements

*

Management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 6 of this report

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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
May 4, 2012	/s/ Kriss Cloninger III
	(Kriss Cloninger III)
	President, Chief Financial Officer, Treasurer and Director
May 4, 2012	/s/ June Howard
	(June Howard) Senior Vice President, Financial Services; Chief Accounting Officer

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EX-10.36

Aflac Incorporated 1st Quarter 2012 Form 10-Q

EXHIBIT 10.36

AMENDMENT TO EMPLOYMENT AGREEMENT

THIS AMENDMENT TO EMPLOYMENT AGREEMENT (this “Amendment”), made and entered into as of the 7th day of March, 2012, by and between Aflac Incorporated, a Georgia corporation, hereinafter referred to as "Corporation," and Paul S. Amos, II, a resident of said State and County, hereinafter referred to as "Employee;"

W I T N E S S E T H T H A T:

WHEREAS, Corporation and Employee have entered into an employment agreement, as of January 1, 2005, which has been amended from time-to-time (the “Employment Agreement”); and

WHEREAS, the Corporation and Employee wish to enter into this Amendment to limit or stop the payment of certain disability or severance payments under the Employment Agreement if Employee has satisfied the criteria to receive the maximum percentage of retirement benefits available under the Aflac Incorporated Supplemental Executive Retirement Plan (i.e., to prevent the overlap of those payments with normal retirement benefits under the plan);

NOW, THEREFORE, for and in consideration of the mutual promises, covenants and agreements hereinafter contained and other good and valuable consideration, the sufficiency of which is acknowledged, the parties hereby contract and agree to amend the Employment Agreement as follows, to-wit:

1. The second paragraph of Paragraph 12 of the Employment Agreement hereby is amended by deleting said paragraph in its entirety and by substituting in lieu thereof the following:

Should Employee become totally disabled as a result of sickness or accident and unable to adequately perform his regular duties prescribed under this Agreement, his base salary (which shall continue to be adjusted as provided for in Paragraph 5), together with incentive bonuses under the Corporation's Management Incentive Plan and his participation in Corporation's employee benefit programs and retirement plan shall continue without reduction except as hereinafter provided, during the continuance of such disability of a period not exceeding the earlier of (1) the end of the term of this Agreement or any extension hereof or (2) a period of one and one-half (1-1/2) years (547 calendar days) for each continuous disability. Payments pursuant to this paragraph 12 shall be reduced by any amounts paid to Employee during any such period of disability from time to time under any disability programs, plans or policies maintained by Corporation, its subsidiaries or affiliates. In addition, if during, or on the first day of, the period Employee is receiving such disability pay and benefits, (i) Employee reaches or has reached the date upon which he satisfies the criteria to receive the maximum percentage of retirement benefits available under the Aflac Incorporated Supplemental Executive Retirement Plan (the “Maximum Retirement Benefit Date”); and (ii) upon or after the Maximum Retirement Benefit Date, there ceases to be a reasonable expectation that he will return to perform services for Corporation, such that Employee has a separation from service (as defined below) and his Benefit Commencement Date under the Aflac Incorporated Supplemental Executive Retirement Plan (the “SERP”) has occurred (whether or not the SERP benefit payments are to actually commence on his Benefit Commencement Date or are to be delayed by six (6) months as may be required under the SERP to satisfy the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”)); the amount of disability pay consisting of base salary and cash incentive bonuses being paid or payable under this Paragraph 12 shall be reduced effective as of the date of such separation from service to an amount that is forty percent (40%) of the amount being paid or payable immediately before such date.

2. The fourth paragraph of Paragraph 12 of the Employment Agreement hereby is amended by deleting said paragraph in its entirety and by substituting in lieu thereof the following:

If, following Employee's becoming totally disabled, this Agreement shall be terminated (as provided in the preceding paragraph) and Employee's employment with Corporation terminated, Employee shall be 100% vested in, and entitled to, benefits under the SERP determined as if Employee's “Years of Participation” and “Years of Employment” (as such terms (or similar terms)

are defined in the SERP) include the period of time before such termination date during which Employee was totally disabled. Furthermore, if on such termination date Employee is not yet eligible for an early retirement benefit under the SERP, Employee will be entitled to benefits under the SERP the amount of which shall be determined as if his termination date was Employee's Early Retirement Date (as such term is defined in the SERP); provided, these provisions shall not affect the timing or form of his SERP distributions, which shall be determined solely under the terms of the SERP.

3. Paragraphs 13.A(2)(a) and (b) of the Employment Agreement hereby are amended by deleting said paragraphs in their entirety and by substituting in lieu thereof the following:

(a)    upon Employee's separation from service, pay Employee his base salary as provided for in Paragraph 5 of this Agreement up to the end of the scheduled term of this Agreement; provided, if at the time Employee has a separation from service (such that his Benefit Commencement Date under the SERP has occurred) Employee has attained his Maximum Retirement Benefit Date, all payments being paid or payable under this subparagraph (a) shall cease or not commence, as applicable. Such amount, if any, payable under this subparagraph (a) for the period after his Actual Termination Date will be paid in accordance with the regular payroll schedule applicable to all other similarly-situated active executive employees of Corporation commencing with the next regularly scheduled payday, with any portion of such amount that is payable within the six (6)-month period beginning on the date of his separation from service being paid in a lump sum upon the day after the six (6)-month anniversary of his separation from service;

(b)    pay Employee an amount equal to a portion of his performance bonus compensation as provided for in Paragraph 7 of this Agreement prorated based on the number of days through the end of the scheduled term of this Agreement; provided, if at the time Employee has a separation from service (such that his Benefit Commencement Date under the SERP has occurred) Employee has attained his Maximum Retirement Benefit Date, all payments being paid or payable under this subparagraph (b) shall cease or not commence, as applicable. The amount of such bonus payable under this subparagraph (b), if any, will be paid to Employee pursuant to the terms and customary operations of the Management Incentive Program (or other applicable bonus program) except that Employee's performance will be deemed to be at target while actual performance of Corporation will be applied; provided, if the scheduled term of this Agreement ends after the calendar year in which the notice of termination is given, (i) the bonus payment for the calendar year in which such notice is given will be paid without any proration; and (ii) the amount of the bonus payment for the calendar year in which the scheduled term of this Agreement ends will be calculated on a pro rata basis, using the number of days elapsed during such calendar year through the end of the scheduled term of this Agreement, and will be paid upon Employee's separation from service in a lump sum between January 1 and March 15, inclusive, of the calendar year following the calendar year in which the scheduled term of this Agreement ends or, if later, upon the day after the six (6)-month anniversary of his separation from service;

4. Paragraph 18.B(3) of the Employment Agreement hereby is amended by deleting said paragraph in its entirety and by substituting in lieu thereof the following:

(3)    In lieu of any further salary payments to Employee for periods subsequent to the Termination Date, the Corporation shall pay to Employee, immediately after the Termination Date, a lump sum payment, in cash, equal to three (3) times the sum of (i) Employee's annual base salary in effect immediately prior to the Change in Control and (ii) the higher of the amount paid to Employee pursuant to the Corporation's Management Incentive Plan (or any successor plan thereto) for the year preceding the year in which the Termination Date occurs or paid in the year preceding the year in which the Change in Control occurs; provided, if Employee's separation from service occurs more than twenty-four (24) months after the Change in Control, only the portion of such lump-sum severance payment in excess of the total amount that would have been payable under Paragraphs 13.A(2)(a) and (b) shall be paid pursuant to the terms hereinabove, and the remainder shall be paid pursuant to the terms of Paragraphs 13.A(2)(a) and (b) as if no Change in Control had occurred; and, provided further, such amount will be paid upon the day after the six (6)-month anniversary of Employee's separation from service; provided further, if upon his Termination Date Employee has attained his Maximum Retirement Benefit Date, no amount shall be payable under this subparagraph 3.

5. This amendment shall be effective as of March 7, 2012.

6. Except as specifically amended hereby, the Employment Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, Corporation has hereunto caused its name to be signed and its seal to be affixed by its duly authorized officers, and Employee has hereunto set his hand and seal, all being done in duplicate originals, with one original being delivered to each party as of the 7th day of March, 2012.

AFLAC Incorporated

/s/_Kriss Cloninger II_____________

KRISS CLONINGER III, President and

Chief Financial Officer

ATTEST:

/s/ J. Matthew Loudermilk_________

Assistant Secretary

CORPORATE SEAL

__/s/ Paul S. Amos____________________(L.S.)

PAUL S. AMOS, II

__/s/ Adriene Blevens__________________

WITNESS

EX-11

Aflac Incorporated 1st Quarter 2012 Form 10-Q

EXHIBIT 11

Aflac Incorporated and Subsidiaries

Computation of Earnings Per Share

Three Months Ended March 31,

	2012		2011
Numerator (In millions):
Basic and diluted: net earnings applicable to common stock	$	785	$	389
Denominator (In thousands):
Weighted-average outstanding shares used in the computation of earnings per share - basic	465,887		468,012
Dilutive effect of share-based awards	2,646		4,092
Weighted-average outstanding shares used in the computation of earnings per share - diluted	468,533		472,104
Earnings per share:
Basic	$	1.68	$	.83
Diluted	1.68		.83

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

EX-12

Aflac Incorporated 1st Quarter 2012 Form 10-Q

EXHIBIT 12

Aflac Incorporated and Subsidiaries

Ratio of Earnings to Fixed Charges

Three Months Ended March 31,

(In thousands)	2012		2011
Fixed charges:
Interest expense(1)	$	56,745	$	45,307
Interest on investment-type contracts	13,716		11,582
Rental expense deemed interest	242		262
Total fixed charges	$	70,703	$	57,151
Earnings before income tax(1)	$	1,201,908	$	591,876
Add back:
Total fixed charges	70,703		57,151
Total earnings before income tax and fixed charges	$	1,272,611	$	649,027
Ratio of earnings to fixed charges	18.0x		11.4x

⁽¹⁾Excludes interest expense on income tax liabilities

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

EX-15

Aflac Incorporated 1st Quarter 2012 Form 10-Q

EXHIBIT 15

KPMG LLP

303 Peachtree Street, N.E.

Suite 2000

Atlanta, GA 30308

May 4, 2012

Aflac Incorporated

Columbus, Georgia

Re: Registration Statement No. 333-181089, 333-159111, 333-155678, and 333-176178 on Form S-3; 333-161269, 333-135327, 333-158969; 333-135324, 333-27883, and 333-115105 on Form S-8

With respect to the subject registration statements, we acknowledge our awareness of the use therein of our report dated May 4, 2012, related to our review of interim financial information.

Pursuant to Rule 436 under the Securities Act of 1933 (the Act), such report is not considered part of a registration statement prepared or certified by an independent registered public accounting firm, or a report prepared or certified by an independent registered public accounting firm within the meaning of Sections 7 and 11 of the Act.

Atlanta, Georgia

EX-31.1

Aflac Incorporated 1st Quarter 2012 Form 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:	May 4, 2012	/s/ Daniel P. Amos
		Daniel P. Amos
		Chairman and Chief Executive Officer

EX-31.2

Aflac Incorporated 1st Quarter 2012 Form 10-Q

EXHIBIT 31.2

Certification of Chief Financial Officer

I, Kriss Cloninger III, 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:	May 4, 2012	/s/ Kriss Cloninger III
		Kriss Cloninger III
		President, Chief Financial Officer and Treasurer

EX-32

Aflac Incorporated 1st Quarter 2012 Form 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, 2012, 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 Kriss Cloninger III, 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:	May 4, 2012
/s/ Kriss Cloninger III
Name:	Kriss Cloninger III
Title:	Chief Financial Officer
Date:	May 4, 2012

XML

INVESTMENTS - Composition of Investments in Unrealized Loss Position in Bank and Financial Institution Sector (Detail) (Banks/financial Institutions)	Mar. 31, 2012	Dec. 31, 2011
Investments, Unrealized Loss Position [Line Items]
Percentage of Total Investments in an Unrealized Loss Position	39.00%	46.00%
Percentage of Total Unrealized Losses	55.00%	62.00%
Fixed Maturities
Investments, Unrealized Loss Position [Line Items]
Percentage of Total Investments in an Unrealized Loss Position	32.00%	37.00%
Percentage of Total Unrealized Losses	44.00%	44.00%
Perpetual Securities
Investments, Unrealized Loss Position [Line Items]
Percentage of Total Investments in an Unrealized Loss Position	7.00%	9.00%
Percentage of Total Unrealized Losses	11.00%	18.00%
Perpetual Securities | Upper Tier II
Investments, Unrealized Loss Position [Line Items]
Percentage of Total Investments in an Unrealized Loss Position	4.00%	4.00%
Percentage of Total Unrealized Losses	5.00%	6.00%
Perpetual Securities | Tier I
Investments, Unrealized Loss Position [Line Items]
Percentage of Total Investments in an Unrealized Loss Position	3.00%	5.00%
Percentage of Total Unrealized Losses	6.00%	12.00%

XML

FAIR VALUE MEASUREMENTS - Changes in Available-For-Sale Investments and Derivatives Classified as Level 3 (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 3,803		$ 560
Realized gains or losses included in earnings	95		(64)
Unrealized gains or losses included in other comprehensive income	(73)		(28)
Purchases	0		0
Issuances	0		0
Sales	(290)		0
Settlements	(28)		(3)
Transfers into Level 3	0		0
Transfers out of Level 3	0		0
Balance, end of period	3,507		465
Change in unrealized gains (losses) still held	44	[1]	(64)	[2]
Fixed Maturities | Mortgage- and asset-backed Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	394		267
Realized gains or losses included in earnings	0		(6)
Unrealized gains or losses included in other comprehensive income	(23)		(10)
Purchases	0		0
Issuances	0		0
Sales	0		0
Settlements	(4)		(3)
Transfers into Level 3	0		0
Transfers out of Level 3	0		0
Balance, end of period	367		248
Change in unrealized gains (losses) still held	0	[1]	(6)	[2]
Fixed Maturities | Public Utilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	422		0
Realized gains or losses included in earnings	0		0
Unrealized gains or losses included in other comprehensive income	(13)		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	409		0
Change in unrealized gains (losses) still held	0	[1]	0	[2]
Fixed Maturities | Collateralized Debt Obligations
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period			5
Realized gains or losses included in earnings			0
Unrealized gains or losses included in other comprehensive income			0
Purchases			0
Issuances			0
Sales			0
Settlements			0
Transfers into Level 3			0
Transfers out of Level 3			0
Balance, end of period			5
Change in unrealized gains (losses) still held			0	[2]
Fixed Maturities | Sovereign and Supranational
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	434		0
Realized gains or losses included in earnings	0		0
Unrealized gains or losses included in other comprehensive income	(16)		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	418		0
Change in unrealized gains (losses) still held	0	[1]	0	[2]
Fixed Maturities | Banks/financial Institutions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	1,074		386
Realized gains or losses included in earnings	0		1
Unrealized gains or losses included in other comprehensive income	23		33
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	1,097		420
Change in unrealized gains (losses) still held	0	[1]	1	[2]
Fixed Maturities | Other Corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	1,105		0
Realized gains or losses included in earnings	2		0
Unrealized gains or losses included in other comprehensive income	(38)		0
Purchases	0		0
Issuances	0		0
Sales	(34)		0
Settlements	0		0
Transfers into Level 3	0		0
Transfers out of Level 3	0		0
Balance, end of period	1,035		0
Change in unrealized gains (losses) still held	0	[1]	0	[2]
Perpetual Securities | Banks/financial Institutions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	526		0
Realized gains or losses included in earnings	49		0
Unrealized gains or losses included in other comprehensive income	6		0
Purchases	0		0
Issuances	0		0
Sales	(256)		0
Settlements	0		0
Transfers into Level 3	0		0
Transfers out of Level 3	0		0
Balance, end of period	325		0
Change in unrealized gains (losses) still held	0	[1]	0	[2]
Equity Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	4		4
Realized gains or losses included in earnings	0		0
Unrealized gains or losses included in other comprehensive income	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	4		4
Change in unrealized gains (losses) still held	0	[1]	0	[2]
Derivatives | Interest rate swaps
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	30
Realized gains or losses included in earnings	(2)
Unrealized gains or losses included in other comprehensive income	0
Purchases	0
Issuances	0
Sales	0
Settlements	0
Transfers into Level 3	0
Transfers out of Level 3	0
Balance, end of period	28
Change in unrealized gains (losses) still held	(2)	[1]
Derivatives | Foreign currency swaps
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	(56)		241
Realized gains or losses included in earnings	13		(64)
Unrealized gains or losses included in other comprehensive income	(12)		(51)
Purchases	0		0
Issuances	0		0
Sales	0		0
Settlements	(24)		0
Transfers into Level 3	0		0
Transfers out of Level 3	0		0
Balance, end of period	(79)		126
Change in unrealized gains (losses) still held	13	[1]	(64)	[2]
Derivatives | Credit default swaps
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	(130)		(343)
Realized gains or losses included in earnings	33		5
Unrealized gains or losses included in other comprehensive income	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	(97)		(338)
Change in unrealized gains (losses) still held	$ 33	[1]	$ 5	[2]

[1] Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains (losses) relating to assets classified as Level 3 that were still held at March 31, 2012

[2] Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains (losses) relating to assets classified as Level 3 that were still held at March 31, 2011

XML

DERIVATIVE INSTRUMENTS - Fair Value and Notional Amounts of Derivatives With Counterparty Credit Risk (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Derivative [Line Items]
Fair Value of Swaps	$ (110)	$ (156)
Notional Amount of Swaps	6,028	5,491
AA
Derivative [Line Items]
Fair Value of Swaps	14	0
Notional Amount of Swaps	272	0
A
Derivative [Line Items]
Fair Value of Swaps	(124)	(156)
Notional Amount of Swaps	$ 5,756	$ 5,491

XML

FAIR VALUE MEASUREMENTS - Estimated Effect of Potential Changes in Interest Rates, Credit Spreads and Interest Rate Volatility on Fair Values of Securities Priced by Discounted Cash Flow Pricing Model (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012
Interest Rates
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	0.50%
Credit Spreads
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	0.50%
Interest Rate Volatility
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	50.00%
Available-for-Sale Fixed Maturity and Perpetual Securities | Interest Rates | Upward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	0.50%
Change in fair value	(978)
Available-for-Sale Fixed Maturity and Perpetual Securities | Interest Rates | Downward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	(0.50%)
Change in fair value	999
Available-for-Sale Fixed Maturity and Perpetual Securities | Credit Spreads | Upward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	0.50%
Change in fair value	(975)
Available-for-Sale Fixed Maturity and Perpetual Securities | Credit Spreads | Downward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	(0.50%)
Change in fair value	1,011
Available-for-Sale Fixed Maturity and Perpetual Securities | Interest Rate Volatility | Upward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	50.00%
Change in fair value	(36)
Available-for-Sale Fixed Maturity and Perpetual Securities | Interest Rate Volatility | Downward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	(50.00%)
Change in fair value	1
Held-to-maturity Securities | Interest Rates | Upward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	0.50%
Change in fair value	(1,488)
Held-to-maturity Securities | Interest Rates | Downward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	(0.50%)
Change in fair value	1,314
Held-to-maturity Securities | Credit Spreads | Upward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	0.50%
Change in fair value	(1,379)
Held-to-maturity Securities | Credit Spreads | Downward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	(0.50%)
Change in fair value	1,380
Held-to-maturity Securities | Interest Rate Volatility | Upward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	50.00%
Change in fair value	(132)
Held-to-maturity Securities | Interest Rate Volatility | Downward Movements
Discounted Cash Flow Pricing Model, by Assumption [Line Items]
Factor Change	(50.00%)
Change in fair value	167

XML

DERIVATIVE INSTRUMENTS - Components of Gain or Loss on Derivatives that Qualified as Cash Flow Hedges (Detail) (Cash flow hedges, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)	$ (12)	$ (55)
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion)	0	(4)
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)	0	1
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion)	0	0
Foreign currency swaps
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)	(12)	(56)
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion)	$ 0	$ (4)

XML

INVESTMENTS - Economic Maturities of Investments in Perpetual Securities (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012
Aflac Japan
Investments Classified by Economic Maturity Date [Line Items]
Due in one year or less	$ 304
Due after one year through five years	1,167
Due after five years through 10 years	521
Due after 10 years	3,353
Total perpetual securities available for sale	5,345
Due in one year or less	308
Due after one year through five years	1,223
Due after five years through 10 years	551
Due after 10 years	3,089
Total perpetual securities available for sale	5,171
Aflac U.S.
Investments Classified by Economic Maturity Date [Line Items]
Due in one year or less	0
Due after one year through five years	5
Due after five years through 10 years	0
Due after 10 years	172
Total perpetual securities available for sale	177
Due in one year or less	0
Due after one year through five years	5
Due after five years through 10 years	0
Due after 10 years	176
Total perpetual securities available for sale	$ 181

XML

NOTES PAYABLE - Additional Information (Detail)	Feb. 29, 2012 series	Mar. 31, 2012 1.47% yen-denominated Samurai notes due July 2014 JPY (¥)	Dec. 31, 2011 1.47% yen-denominated Samurai notes due July 2014 JPY (¥)	Mar. 31, 2012 1.84% yen-denominated Samurai notes due July 2016 JPY (¥)	Dec. 31, 2011 1.84% yen-denominated Samurai notes due July 2016 JPY (¥)	Mar. 31, 2012 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Dec. 31, 2011 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Jul. 31, 2011 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Feb. 29, 2012 Senior Notes USD ($)	Mar. 31, 2012 2.65% senior notes due February 2017 USD ($)	Mar. 31, 2012 2.65% senior notes due February 2017 JPY (¥)	Mar. 31, 2012 4.00% senior notes due February 2022 USD ($)	Mar. 31, 2012 4.00% senior notes due February 2022 JPY (¥)	Mar. 31, 2012 6.45% senior notes due August 2040 USD ($)	Dec. 31, 2011 6.45% senior notes due August 2040 USD ($)	Mar. 31, 2012 3.45% senior notes due August 2015	Dec. 31, 2011 3.45% senior notes due August 2015	Mar. 31, 2012 6.90% senior notes due December 2039 USD ($)	Dec. 31, 2011 6.90% senior notes due December 2039 USD ($)	Mar. 31, 2012 8.50% senior notes due May 2019	Dec. 31, 2011 8.50% senior notes due May 2019	Mar. 31, 2012 2.26% yen-denominated Uridashi notes due September 2016 JPY (¥)	Dec. 31, 2011 2.26% yen-denominated Uridashi notes due September 2016 JPY (¥)	Mar. 31, 2012 1.87% yen-denominated Samurai notes due June 2012 JPY (¥)	Dec. 31, 2011 1.87% yen-denominated Samurai notes due June 2012 JPY (¥)	Mar. 31, 2012 Notes Payable USD ($)
Debt Instrument [Line Items]
Number of series of senior notes issued through a U.S. public debt offering (in series)	2
Notes payable, principal amount		¥ 28,700,000,000	¥ 28,700,000,000	¥ 15,800,000,000	¥ 15,800,000,000	¥ 5,500,000,000	¥ 5,500,000,000	¥ 5,500,000,000	$ 750,000,000	$ 400,000,000		$ 350,000,000		$ 450,000,000	$ 450,000,000			$ 400,000,000	$ 400,000,000			¥ 8,000,000,000	¥ 8,000,000,000	¥ 26,600,000,000	¥ 26,600,000,000
Notes payable, effective principal amount											30,900,000,000		27,000,000,000
Notes payable, interest rate		1.47%	1.47%	1.84%	1.84%	1.35%	1.34%			2.65%	2.65%	4.00%	4.00%	6.45%	6.45%	3.45%	3.45%	6.90%	6.90%	8.50%	8.50%	2.26%	2.26%	1.87%	1.87%
Notes payable, effective interest rate								1.475%		1.22%	1.22%	2.07%	2.07%
Notes payable, debt default, amount																										$ 0

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SHARE-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Stock Options Outstanding and Exercisable

The following table provides information on stock options outstanding and exercisable at March 31, 2012.

	Stock Option Shares (in thousands)	Weighted-Average Remaining Term (in years)	Aggregate Intrinsic Value (in millions)	Weighted-Average Exercise Price Per Share
Outstanding	14,452	5.0	$77	$43.49
Exercisable	12,102	4.3	74	42.48

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FAIR VALUE MEASUREMENTS - Additional Information (Detail) (USD $)	Mar. 31, 2012	Dec. 31, 2011
Fair Value, Measurement Inputs, Disclosure [Line Items]
Securities held to maturity, fixed maturities, fair value	$ 48,444,000,000	$ 46,383,000,000
Interest Rates
Fair Value, Measurement Inputs, Disclosure [Line Items]
Magnitude of movement	0.50%
Credit Spreads
Fair Value, Measurement Inputs, Disclosure [Line Items]
Magnitude of movement	0.50%
Interest Rate Volatility
Fair Value, Measurement Inputs, Disclosure [Line Items]
Magnitude of movement	50.00%
Fair Value Based on Discounted Cash Flow Pricing Model
Fair Value, Measurement Inputs, Disclosure [Line Items]
Fair values of available-for-sale fixed maturity and perpetual securities valued by our DCF pricing model	18,200,000,000
Securities held to maturity, fixed maturities, fair value	$ 23,900,000,000
Available-for-sale Securities | Level 2
Fair Value, Measurement Inputs, Disclosure [Line Items]
Percentage of fair value of investments valued by obtaining quoted market prices from investment custodian	51.00%
Percentage of holdings valued by obtaining quoted market prices from investment custodian	77.00%
Percentage of fair value of investments using DCF pricing model	42.00%
Percentage of holdings of investments using discounted cash flow pricing model	10.00%
Percentage of fair value of investments using other pricing services	7.00%
Percentage of holdings of investments using other pricing services	13.00%
Held-to-maturity Securities | Level 2
Fair Value, Measurement Inputs, Disclosure [Line Items]
Percentage of fair value of investments valued by obtaining quoted market prices from investment custodian	3.00%
Percentage of holdings valued by obtaining quoted market prices from investment custodian	7.00%
Percentage of fair value of investments using DCF pricing model	95.00%
Percentage of holdings of investments using discounted cash flow pricing model	85.00%
Percentage of fair value of investments using other pricing services	2.00%
Percentage of holdings of investments using other pricing services	8.00%

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INVESTMENTS - Securities Lending (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Disclosure - Securities Lending [Abstract]
Security loans outstanding, fair value	$ 188	$ 812
Cash collateral on loaned securities	$ 193	$ 838

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INVESTMENTS - Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities [Abstract]
Unrealized gains (losses) on securities available for sale	$ 2,219	$ 1,761
Unamortized unrealized gains on securities transferred to held to maturity	29	34
Deferred income taxes	(800)	(652)
Shareholders' equity, unrealized gains (losses) on investment securities	$ 1,448	$ 1,143

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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, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Level 3
Assets:
Total assets	$ 3,926
Liabilities:
Total liabilities	419
Fair Value, Measurements, Recurring
Assets:
Swaps	318	375
Cash and cash equivalents	2,210	2,249
Total assets	54,427	56,660
Liabilities:
Total liabilities	428	531
Fair Value, Measurements, Recurring | Interest rate swaps
Assets:
Swaps	31	34
Liabilities:
Swaps	3	4
Fair Value, Measurements, Recurring | Foreign currency swaps
Assets:
Swaps	287	341
Liabilities:
Swaps	328	397
Fair Value, Measurements, Recurring | Credit default swaps
Liabilities:
Swaps	97	130
Fair Value, Measurements, Recurring | Fixed Maturities
Assets:
Available-for-sale Securities	46,522	47,572
Fair Value, Measurements, Recurring | Fixed Maturities | Government and Agencies Debt Securities
Assets:
Available-for-sale Securities	10,729	11,813
Fair Value, Measurements, Recurring | Fixed Maturities | Municipalities
Assets:
Available-for-sale Securities	1,163	1,159
Fair Value, Measurements, Recurring | Fixed Maturities | Mortgage- and asset-backed Securities
Assets:
Available-for-sale Securities	1,264	1,338
Fair Value, Measurements, Recurring | Fixed Maturities | Public Utilities
Assets:
Available-for-sale Securities	7,335	7,225
Fair Value, Measurements, Recurring | Fixed Maturities | Sovereign and Supranational
Assets:
Available-for-sale Securities	2,205	2,308
Fair Value, Measurements, Recurring | Fixed Maturities | Banks/financial Institutions
Assets:
Available-for-sale Securities	7,709	7,453
Fair Value, Measurements, Recurring | Fixed Maturities | Other Corporate
Assets:
Available-for-sale Securities	16,117	16,276
Fair Value, Measurements, Recurring | Perpetual Securities
Assets:
Available-for-sale Securities	5,352	6,439
Fair Value, Measurements, Recurring | Perpetual Securities | Banks/financial Institutions
Assets:
Available-for-sale Securities	5,001	6,078
Fair Value, Measurements, Recurring | Perpetual Securities | Other Corporate
Assets:
Available-for-sale Securities	351	361
Fair Value, Measurements, Recurring | Equity Securities
Assets:
Available-for-sale Securities	25	25
Fair Value, Measurements, Recurring | Level 1
Assets:
Swaps	0	0
Cash and cash equivalents	2,210	2,249
Total assets	12,190	13,356
Liabilities:
Total liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | Interest rate swaps
Assets:
Swaps	0	0
Liabilities:
Swaps	0	0
Fair Value, Measurements, Recurring | Level 1 | Foreign currency swaps
Assets:
Swaps	0	0
Liabilities:
Swaps	0	0
Fair Value, Measurements, Recurring | Level 1 | Credit default swaps
Liabilities:
Swaps	0	0
Fair Value, Measurements, Recurring | Level 1 | Fixed Maturities
Assets:
Available-for-sale Securities	9,965	11,092
Fair Value, Measurements, Recurring | Level 1 | Fixed Maturities | Government and Agencies Debt Securities
Assets:
Available-for-sale Securities	9,965	11,092
Fair Value, Measurements, Recurring | Level 1 | Fixed Maturities | Municipalities
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Fixed Maturities | Mortgage- and asset-backed Securities
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Fixed Maturities | Public Utilities
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Fixed Maturities | Sovereign and Supranational
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Fixed Maturities | Banks/financial Institutions
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Fixed Maturities | Other Corporate
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Perpetual Securities
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Perpetual Securities | Banks/financial Institutions
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Perpetual Securities | Other Corporate
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Equity Securities
Assets:
Available-for-sale Securities	15	15
Fair Value, Measurements, Recurring | Level 2
Assets:
Swaps	47	0
Cash and cash equivalents	0	0
Total assets	38,311	38,970
Liabilities:
Total liabilities	9	0
Fair Value, Measurements, Recurring | Level 2 | Interest rate swaps
Assets:
Swaps	0	0
Liabilities:
Swaps	0	0
Fair Value, Measurements, Recurring | Level 2 | Foreign currency swaps
Assets:
Swaps	47	0
Liabilities:
Swaps	9	0
Fair Value, Measurements, Recurring | Level 2 | Credit default swaps
Liabilities:
Swaps	0	0
Fair Value, Measurements, Recurring | Level 2 | Fixed Maturities
Assets:
Available-for-sale Securities	33,231	33,051
Fair Value, Measurements, Recurring | Level 2 | Fixed Maturities | Government and Agencies Debt Securities
Assets:
Available-for-sale Securities	764	721
Fair Value, Measurements, Recurring | Level 2 | Fixed Maturities | Municipalities
Assets:
Available-for-sale Securities	1,163	1,159
Fair Value, Measurements, Recurring | Level 2 | Fixed Maturities | Mortgage- and asset-backed Securities
Assets:
Available-for-sale Securities	897	944
Fair Value, Measurements, Recurring | Level 2 | Fixed Maturities | Public Utilities
Assets:
Available-for-sale Securities	6,926	6,803
Fair Value, Measurements, Recurring | Level 2 | Fixed Maturities | Sovereign and Supranational
Assets:
Available-for-sale Securities	1,787	1,874
Fair Value, Measurements, Recurring | Level 2 | Fixed Maturities | Banks/financial Institutions
Assets:
Available-for-sale Securities	6,612	6,379
Fair Value, Measurements, Recurring | Level 2 | Fixed Maturities | Other Corporate
Assets:
Available-for-sale Securities	15,082	15,171
Fair Value, Measurements, Recurring | Level 2 | Perpetual Securities
Assets:
Available-for-sale Securities	5,027	5,913
Fair Value, Measurements, Recurring | Level 2 | Perpetual Securities | Banks/financial Institutions
Assets:
Available-for-sale Securities	4,676	5,552
Fair Value, Measurements, Recurring | Level 2 | Perpetual Securities | Other Corporate
Assets:
Available-for-sale Securities	351	361
Fair Value, Measurements, Recurring | Level 2 | Equity Securities
Assets:
Available-for-sale Securities	6	6
Fair Value, Measurements, Recurring | Level 3
Assets:
Swaps	271	375
Cash and cash equivalents	0	0
Total assets	3,926	4,334
Liabilities:
Total liabilities	419	531
Fair Value, Measurements, Recurring | Level 3 | Interest rate swaps
Assets:
Swaps	31	34
Liabilities:
Swaps	3	4
Fair Value, Measurements, Recurring | Level 3 | Foreign currency swaps
Assets:
Swaps	240	341
Liabilities:
Swaps	319	397
Fair Value, Measurements, Recurring | Level 3 | Credit default swaps
Liabilities:
Swaps	97	130
Fair Value, Measurements, Recurring | Level 3 | Fixed Maturities
Assets:
Available-for-sale Securities	3,326	3,429
Fair Value, Measurements, Recurring | Level 3 | Fixed Maturities | Government and Agencies Debt Securities
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Fixed Maturities | Municipalities
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Fixed Maturities | Mortgage- and asset-backed Securities
Assets:
Available-for-sale Securities	367	394
Fair Value, Measurements, Recurring | Level 3 | Fixed Maturities | Public Utilities
Assets:
Available-for-sale Securities	409	422
Fair Value, Measurements, Recurring | Level 3 | Fixed Maturities | Sovereign and Supranational
Assets:
Available-for-sale Securities	418	434
Fair Value, Measurements, Recurring | Level 3 | Fixed Maturities | Banks/financial Institutions
Assets:
Available-for-sale Securities	1,097	1,074
Fair Value, Measurements, Recurring | Level 3 | Fixed Maturities | Other Corporate
Assets:
Available-for-sale Securities	1,035	1,105
Fair Value, Measurements, Recurring | Level 3 | Perpetual Securities
Assets:
Available-for-sale Securities	325	526
Fair Value, Measurements, Recurring | Level 3 | Perpetual Securities | Banks/financial Institutions
Assets:
Available-for-sale Securities	325	526
Fair Value, Measurements, Recurring | Level 3 | Perpetual Securities | Other Corporate
Assets:
Available-for-sale Securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Equity Securities
Assets:
Available-for-sale Securities	4	4
Carrying Value
Assets:
Swaps	318	375
Liabilities:
Swaps	$ 428	$ 531

XML

SHAREHOLDERS' EQUITY - Anti-Dilutive Share-Based Awards Excluded from Calculation of Diluted Earnings Per Share (Detail) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Disclosure Anti Dilutive Share Based Awards Excluded From Calculation Of Diluted Earnings Per Share [Abstract]
Anti-dilutive share-based awards	5,457	2,592

XML

DERIVATIVE INSTRUMENTS - Gain or Loss Recognized in Income on Non-qualifying Strategies (Detail) (Non-qualifying strategies, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized within Net Realized Investment Gains (Losses)	$ 80	$ (26)
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized within Net Realized Investment Gains (Losses)	(3)	(5)
Foreign currency swaps
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized within Net Realized Investment Gains (Losses)	50	(29)
Credit default swaps
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized within Net Realized Investment Gains (Losses)	33	5
Other [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized within Net Realized Investment Gains (Losses)	$ 0	$ 3

XML

BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [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. Operating business segments that are not individually reportable are included in the "Other business segments" category.

We do not allocate corporate overhead expenses to business segments. We evaluate and manage our business segments using a financial performance measure called pretax operating earnings. Our definition of operating earnings excludes the following items from net earnings on an after-tax basis: realized investment gains/losses (securities transactions, impairments, and the impact of derivative and hedging activities) and nonrecurring items. We then exclude income taxes related to operations to arrive at pretax operating earnings. Information regarding operations by segment follows:

	Three Months Ended March 31,
(In millions)	2012			2011
Revenues:
Aflac Japan:
Earned premiums	$	4,148		$	3,702
Net investment income	730			649
Other income	16			20
Total Aflac Japan	4,894			4,371
Aflac U.S.:
Earned premiums	1,231			1,169
Net investment income	152			144
Other income	2			3
Total Aflac U.S.	1,385			1,316
Other business segments	14			15
Total business segment revenues	6,293			5,702
Realized investment gains (losses)	(45		)	(579		)
Corporate	68			61
Intercompany eliminations	(76		)	(67		)
Total revenues	$	6,240		$	5,117

	Three Months Ended March 31,
(In millions)	2012			2011
Pretax earnings:
Aflac Japan	$	1,040		$	974
Aflac U.S.	271			251
Other business segments	0			0
Total business segment pretax operating earnings	1,311			1,225
Interest expense, noninsurance operations	(44		)	(41		)
Corporate and eliminations	(20		)	(14		)
Pretax operating earnings	1,247			1,170
Realized investment gains (losses)	(45		)	(579		)
Total earnings before income taxes	$	1,202		$	591
Income taxes applicable to pretax operating earnings	$	433		$	405
Effect of foreign currency translation on operating earnings	20			49

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

Assets were as follows:

	March 31,			December 31,
(In millions)	2012			2011
Assets:
Aflac Japan	$	100,133		$	101,692
Aflac U.S.	14,207			13,942
Other business segments	159			160
Total business segment assets	114,499			115,794
Corporate	18,322			16,182
Intercompany eliminations	(17,269		)	(15,739		)
Total assets	$	115,552		$	116,237

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

XML

SHAREHOLDERS' EQUITY - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2012 Share Repurchase Authorization 2008
Stockholders Equity Note [Line Items]
Common stock, share repurchase	3,100,000
Remaining common stock available for purchase under share repurchase authorizations		24,400,000

XML

DERIVATIVE INSTRUMENTS - Maximum Potential Risk, Fair Value, Weighted-Average Years to Maturity, and Underlying Referenced Credit Obligation Type for Credit Default Swaps (Detail) (Corporate Bonds, USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2012	Dec. 31, 2011
Credit Derivatives [Line Items]
Maximum potential risk	$ (367)	$ (381)
Estimated fair value	(97)	(130)
A
Credit Derivatives [Line Items]
Credit Rating	A	A
Maximum potential risk	(139)	(146)
Estimated fair value	(4)	(17)
BB or Lower
Credit Derivatives [Line Items]
Credit Rating	BB or lower	BB or lower
Maximum potential risk	(228)	(235)
Estimated fair value	(93)	(113)
Less than one year
Credit Derivatives [Line Items]
Maximum potential risk	0	0
Estimated fair value	0	0
Less than one year | A
Credit Derivatives [Line Items]
Maximum potential risk	0	0
Estimated fair value	0	0
Less than one year | BB or Lower
Credit Derivatives [Line Items]
Maximum potential risk	0	0
Estimated fair value	0	0
One to three years
Credit Derivatives [Line Items]
Maximum potential risk	0	0
Estimated fair value	0	0
One to three years | A
Credit Derivatives [Line Items]
Maximum potential risk	0	0
Estimated fair value	0	0
One to three years | BB or Lower
Credit Derivatives [Line Items]
Maximum potential risk	0	0
Estimated fair value	0	0
Three to five years
Credit Derivatives [Line Items]
Maximum potential risk	(139)	(146)
Estimated fair value	(4)	(17)
Three to five years | A
Credit Derivatives [Line Items]
Maximum potential risk	(139)	(146)
Estimated fair value	(4)	(17)
Three to five years | BB or Lower
Credit Derivatives [Line Items]
Maximum potential risk	0	0
Estimated fair value	0	0
More than Five and within Ten Years from Balance Sheet Date
Credit Derivatives [Line Items]
Maximum potential risk	(228)	(235)
Estimated fair value	(93)	(113)
More than Five and within Ten Years from Balance Sheet Date | A
Credit Derivatives [Line Items]
Maximum potential risk	0	0
Estimated fair value	0	0
More than Five and within Ten Years from Balance Sheet Date | BB or Lower
Credit Derivatives [Line Items]
Maximum potential risk	(228)	(235)
Estimated fair value	$ (93)	$ (113)

XML

BUSINESS SEGMENT INFORMATION - Operations by Segment - Assets (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 115,552	$ 116,237
Aflac Japan
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	100,133	101,692
Aflac U.S.
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	14,207	13,942
Other business segments
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	159	160
Total Business Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	114,499	115,794
Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	18,322	16,182
Intercompany eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ (17,269)	$ (15,739)

XML

BUSINESS SEGMENT INFORMATION - Operations by Segment - Revenues and Pretax Earnings (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 segment	Mar. 31, 2011
Segment Reporting, Revenue Reconciling Item [Line Items]
Reportable insurance business segments	2
Earned premiums	$ 5,378	$ 4,872
Net investment income	882	794
Other income	25	30
Total business segment revenues	6,293	5,702
Realized investment gains (losses)	(45)	(579)
Total revenues	6,240	5,117
Pretax operating earnings	1,247	1,170
Earnings before income taxes	1,202	591
Income taxes applicable to pretax operating earnings	433	405
Effect of foreign currency translation on operating earnings	20	49
Aflac Japan
Segment Reporting, Revenue Reconciling Item [Line Items]
Earned premiums	4,148	3,702
Net investment income	730	649
Other income	16	20
Total business segment revenues	4,894	4,371
Pretax operating earnings	1,040	974
Aflac U.S.
Segment Reporting, Revenue Reconciling Item [Line Items]
Earned premiums	1,231	1,169
Net investment income	152	144
Other income	2	3
Total business segment revenues	1,385	1,316
Pretax operating earnings	271	251
Other business segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total business segment revenues	14	15
Pretax operating earnings	0	0
Total Business Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Pretax operating earnings	1,311	1,225
Corporate
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues	68	61
Intercompany eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenues	(76)	(67)
Interest expense, noninsurance operations
Segment Reporting, Revenue Reconciling Item [Line Items]
Pretax operating earnings	(44)	(41)
Corporate and eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Pretax operating earnings	$ (20)	$ (14)

XML

FAIR VALUE MEASUREMENTS - Significant Unobservable Inputs Used in the Valuation of Available-for-sale Investments and Derivatives (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012
Liabilities:
Length of Volatility of Japanese Yen to US Dollar Exchange Rate	10 years
Level 3
Assets:
Total assets	3,926
Liabilities:
Total liabilities	419
Consensus Pricing Valuation Technique | Mortgage- and asset-backed Securities | Level 3
Assets:
Available-for-sale Securities	367
Consensus Pricing Valuation Technique | Banks/financial Institutions | Level 3
Assets:
Available-for-sale Securities	550
Consensus Pricing Valuation Technique | Other Corporate | Level 3
Assets:
Available-for-sale Securities	441
Discounted Cash Flow Valuation Technique | Public Utilities | Level 3
Assets:
Available-for-sale Securities	409
Discounted Cash Flow Valuation Technique | Sovereign and Supranational | Level 3
Assets:
Available-for-sale Securities	418
Discounted Cash Flow Valuation Technique | Banks/financial Institutions | Level 3
Assets:
Available-for-sale Securities	547
Discounted Cash Flow Valuation Technique | Banks/financial Institutions | Perpetual Securities | Level 3
Assets:
Available-for-sale Securities	325
Discounted Cash Flow Valuation Technique | Other Corporate | Level 3
Assets:
Available-for-sale Securities	594
Discounted Cash Flow Valuation Technique | Interest rate swaps | Level 3
Assets:
Asset Derivatives	31
Liabilities:
Swaps	3
Discounted Cash Flow Valuation Technique | Credit default swaps | Level 3
Liabilities:
Swaps	97
Net Asset Value Valuation Technique | Equity Securities | Level 3
Assets:
Available-for-sale Securities	4
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Discounted Cash Flow Valuation Technique | Foreign currency swaps | Level 3
Assets:
Asset Derivatives	81
Liabilities:
Swaps	91
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Discounted Cash Flow Valuation Technique | Foreign currency swaps | Level 3
Assets:
Asset Derivatives	46
Liabilities:
Swaps	21
Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Discounted Cash Flow Valuation Technique | Foreign currency swaps | Level 3
Assets:
Asset Derivatives	113
Liabilities:
Swaps	207
Liability [Member] | Lower Limit | Interest rate swaps | Level 3
Unobservable Inputs
Base correlation	44.00%	[1]
CDS spreads	0.03%
Recovery rate	25.00%
Liability [Member] | Lower Limit | Credit default swaps | Level 3
Unobservable Inputs
Base correlation	44.00%	[1]
CDS spreads	0.03%
Recovery rate	25.00%
Liability [Member] | Upper Limit | Interest rate swaps | Level 3
Unobservable Inputs
Base correlation	52.00%	[1]
CDS spreads	16.73%
Recovery rate	70.00%
Liability [Member] | Upper Limit | Credit default swaps | Level 3
Unobservable Inputs
Base correlation	52.00%	[1]
CDS spreads	16.73%
Recovery rate	70.00%
Liability [Member] | Weighted Average | Interest rate swaps | Level 3
Unobservable Inputs
CDS spreads	1.36%
Recovery rate	40.00%
Liability [Member] | Weighted Average | Credit default swaps | Level 3
Unobservable Inputs
CDS spreads	1.36%
Recovery rate	40.00%
Liability [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Foreign currency swaps | Level 3
Unobservable Inputs
Foreign exchange rates	20.69%	[2]
Liability [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	0.14%
Liability [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	2.39%
Liability [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Weighted Average | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	1.28%
Liability [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	0.11%
Liability [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	3.59%
Liability [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Weighted Average | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	2.14%
Liability [Member] | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Foreign currency swaps | Level 3
Unobservable Inputs
Foreign exchange rates	20.69%	[2]
Liability [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.29%	[3]
Liability [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	3.05%	[3]
Liability [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.29%	[3]
Liability [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	3.05%	[3]
Liability [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.29%	[3]
Liability [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	3.05%	[3]
Liability [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	1.04%	[4]
Liability [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.00%	[4]
Liability [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	1.04%	[4]
Liability [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.00%	[4]
Liability [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	1.04%	[4]
Liability [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.00%	[4]
Assets [Member] | Public Utilities | Level 3
Unobservable Inputs
Historical Volatility Rate	8.85%
Assets [Member] | Sovereign and Supranational | Level 3
Unobservable Inputs
Historical Volatility Rate	8.85%
Assets [Member] | Banks/financial Institutions | Level 3
Unobservable Inputs
Historical Volatility Rate	8.85%
Assets [Member] | Banks/financial Institutions | Perpetual Securities | Level 3
Unobservable Inputs
Historical Volatility Rate	8.85%
Assets [Member] | Other Corporate | Level 3
Unobservable Inputs
Historical Volatility Rate	8.85%
Assets [Member] | Lower Limit | Equity Securities | Level 3
Unobservable Inputs
Offered quotes (in dollars per share)	0
Assets [Member] | Lower Limit | Interest rate swaps | Level 3
Unobservable Inputs
Base correlation	44.00%	[1]
CDS spreads	0.03%
Recovery rate	25.00%
Assets [Member] | Upper Limit | Equity Securities | Level 3
Unobservable Inputs
Offered quotes (in dollars per share)	993
Assets [Member] | Upper Limit | Interest rate swaps | Level 3
Unobservable Inputs
Base correlation	52.00%	[1]
CDS spreads	16.73%
Recovery rate	70.00%
Assets [Member] | Weighted Average | Equity Securities | Level 3
Unobservable Inputs
Offered quotes (in dollars per share)	4
Assets [Member] | Weighted Average | Interest rate swaps | Level 3
Unobservable Inputs
CDS spreads	1.36%
Recovery rate	40.00%
Assets [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Foreign currency swaps | Level 3
Unobservable Inputs
Foreign exchange rates	20.69%	[2]
Assets [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	0.06%
Assets [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	1.57%
Assets [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Weighted Average | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	1.12%
Assets [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	0.13%
Assets [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	1.90%
Assets [Member] | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Weighted Average | Foreign currency swaps | Level 3
Unobservable Inputs
CDS spreads	0.97%
Assets [Member] | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Foreign currency swaps | Level 3
Unobservable Inputs
Foreign exchange rates	20.69%	[2]
Assets [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.29%	[3]
Assets [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	3.05%	[3]
Assets [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.29%	[3]
Assets [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	3.05%	[3]
Assets [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.29%	[3]
Assets [Member] | United States of America, Dollars | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	3.05%	[3]
Assets [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	1.04%	[4]
Assets [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.00%	[4]
Assets [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	1.04%	[4]
Assets [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.00%	[4]
Assets [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Lower Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	1.04%	[4]
Assets [Member] | Japan, Yen | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates [Member] | Upper Limit | Foreign currency swaps | Level 3
Unobservable Inputs
Interest rates	2.00%	[4]

[1] Weighted-average range of base correlations for our bespoke tranches for attachment and detachment points corresponding to market indices

[2] Based on 10 year volatility of JPY/USD exchange rate

[3] Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps

[4] Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps

XML

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, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Derivatives, Fair Value [Line Items]
Net Derivatives Notional Amount	$ 6,028	$ 5,491
Net Derivatives Fair Value	(110)	(156)
Asset Derivatives Fair Value	318	375
Liability Derivatives Fair Value	(428)	(531)
Other assets
Derivatives, Fair Value [Line Items]
Net Derivatives Notional Amount	2,436	1,794
Net Derivatives Fair Value	318	375
Asset Derivatives Fair Value	318	375
Liability Derivatives Fair Value	0	0
Other Liabilities
Derivatives, Fair Value [Line Items]
Net Derivatives Notional Amount	3,592	3,697
Net Derivatives Fair Value	(428)	(531)
Asset Derivatives Fair Value	0	0
Liability Derivatives Fair Value	(428)	(531)
Cash flow hedges
Derivatives, Fair Value [Line Items]
Net Derivatives Notional Amount	142	146
Net Derivatives Fair Value	24	36
Asset Derivatives Fair Value	24	36
Liability Derivatives Fair Value	0	0
Cash flow hedges | Interest rate swaps
Derivatives, Fair Value [Line Items]
Net Derivatives Notional Amount	67	71
Net Derivatives Fair Value	0	0
Asset Derivatives Fair Value	0	0
Liability Derivatives Fair Value	0	0
Cash flow hedges | Foreign currency swaps
Derivatives, Fair Value [Line Items]
Net Derivatives Notional Amount	75	75
Net Derivatives Fair Value	24	36
Asset Derivatives Fair Value	24	36
Liability Derivatives Fair Value	0	0
Non-qualifying strategies
Derivatives, Fair Value [Line Items]
Net Derivatives Notional Amount	5,886	5,345
Net Derivatives Fair Value	(134)	(192)
Asset Derivatives Fair Value	294	339
Liability Derivatives Fair Value	(428)	(531)
Non-qualifying strategies | Interest rate swaps
Derivatives, Fair Value [Line Items]
Net Derivatives Notional Amount	367	381
Net Derivatives Fair Value	28	30
Asset Derivatives Fair Value	31	34
Liability Derivatives Fair Value	(3)	(4)
Non-qualifying strategies | Foreign currency swaps
Derivatives, Fair Value [Line Items]
Net Derivatives Notional Amount	5,152	4,583
Net Derivatives Fair Value	(65)	(92)
Asset Derivatives Fair Value	263	305
Liability Derivatives Fair Value	(328)	(397)
Non-qualifying strategies | Credit default swaps
Derivatives, Fair Value [Line Items]
Net Derivatives Notional Amount	367	381
Net Derivatives Fair Value	(97)	(130)
Asset Derivatives Fair Value	0	0
Liability Derivatives Fair Value	$ (97)	$ (130)

XML

INVESTMENTS - Investments in Debt Securities, Perpetual Securities and Equity Securities (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	$ 48,834	$ 47,009
Gross Unrealized Gains	968	992
Gross Unrealized Losses	1,358	1,618
Fair Value	48,444	46,383
Cost or Amortized Cost	49,680	52,275
Gross Unrealized Gains	3,557	3,679
Gross Unrealized Losses	1,338	1,918
Fair Value	51,899	54,036
Fixed Maturities
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	44,137	45,356
Gross Unrealized Gains	3,405	3,500
Gross Unrealized Losses	1,020	1,284
Fair Value	46,522	47,572
Fixed Maturities | Yen Denominated
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	48,834	47,009
Gross Unrealized Gains	968	992
Gross Unrealized Losses	1,358	1,618
Fair Value	48,444	46,383
Cost or Amortized Cost	26,559	28,099
Gross Unrealized Gains	1,142	1,053
Gross Unrealized Losses	886	1,061
Fair Value	26,815	28,091
Fixed Maturities | Yen Denominated | Japan government and agencies
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	22,783	18,775
Gross Unrealized Gains	287	297
Gross Unrealized Losses	3	1
Fair Value	23,067	19,071
Cost or Amortized Cost	10,007	11,108
Gross Unrealized Gains	604	670
Gross Unrealized Losses	0	0
Fair Value	10,611	11,778
Fixed Maturities | Yen Denominated | Municipalities
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	522	553
Gross Unrealized Gains	31	35
Gross Unrealized Losses	3	4
Fair Value	550	584
Fixed Maturities | Yen Denominated | Mortgage- and asset-backed Securities
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	117	129
Gross Unrealized Gains	4	5
Gross Unrealized Losses	0	0
Fair Value	121	134
Cost or Amortized Cost	846	912
Gross Unrealized Gains	37	43
Gross Unrealized Losses	1	1
Fair Value	882	954
Fixed Maturities | Yen Denominated | Public Utilities
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	5,189	5,615
Gross Unrealized Gains	175	188
Gross Unrealized Losses	157	166
Fair Value	5,207	5,637
Cost or Amortized Cost	3,933	3,850
Gross Unrealized Gains	65	59
Gross Unrealized Losses	220	226
Fair Value	3,778	3,683
Fixed Maturities | Yen Denominated | Sovereign and Supranational
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	3,970	4,200
Gross Unrealized Gains	149	148
Gross Unrealized Losses	166	183
Fair Value	3,953	4,165
Cost or Amortized Cost	1,612	1,704
Gross Unrealized Gains	69	87
Gross Unrealized Losses	19	16
Fair Value	1,662	1,775
Fixed Maturities | Yen Denominated | Banks/financial Institutions
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	11,559	12,389
Gross Unrealized Gains	174	170
Gross Unrealized Losses	855	1,079
Fair Value	10,878	11,480
Cost or Amortized Cost	4,163	4,312
Gross Unrealized Gains	202	74
Gross Unrealized Losses	287	359
Fair Value	4,078	4,027
Fixed Maturities | Yen Denominated | Other Corporate
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	4,694	5,348
Gross Unrealized Gains	148	149
Gross Unrealized Losses	174	185
Fair Value	4,668	5,312
Cost or Amortized Cost	5,998	6,213
Gross Unrealized Gains	165	120
Gross Unrealized Losses	359	459
Fair Value	5,804	5,874
Fixed Maturities | Dollar Denominated
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	17,578	17,257
Gross Unrealized Gains	2,263	2,447
Gross Unrealized Losses	134	223
Fair Value	19,707	19,481
Fixed Maturities | Dollar Denominated | U.S. Government and Agencies
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	100	31
Gross Unrealized Gains	18	4
Gross Unrealized Losses	0	0
Fair Value	118	35
Fixed Maturities | Dollar Denominated | Municipalities
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	1,061	1,060
Gross Unrealized Gains	110	107
Gross Unrealized Losses	8	8
Fair Value	1,163	1,159
Fixed Maturities | Dollar Denominated | Mortgage- and asset-backed Securities
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	307	310
Gross Unrealized Gains	75	74
Gross Unrealized Losses	0	0
Fair Value	382	384
Fixed Maturities | Dollar Denominated | Public Utilities
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	3,130	3,052
Gross Unrealized Gains	452	517
Gross Unrealized Losses	25	27
Fair Value	3,557	3,542
Fixed Maturities | Dollar Denominated | Sovereign and Supranational
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	454	449
Gross Unrealized Gains	93	89
Gross Unrealized Losses	4	5
Fair Value	543	533
Fixed Maturities | Dollar Denominated | Banks/financial Institutions
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	3,410	3,324
Gross Unrealized Gains	266	223
Gross Unrealized Losses	45	121
Fair Value	3,631	3,426
Fixed Maturities | Dollar Denominated | Other Corporate
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	9,116	9,031
Gross Unrealized Gains	1,249	1,433
Gross Unrealized Losses	52	62
Fair Value	10,313	10,402
Perpetual Securities
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	5,522	6,897
Gross Unrealized Gains	148	175
Gross Unrealized Losses	318	633
Fair Value	5,352	6,439
Perpetual Securities | Yen Denominated | Banks/financial Institutions
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	4,879	6,217
Gross Unrealized Gains	110	155
Gross Unrealized Losses	301	604
Fair Value	4,688	5,768
Perpetual Securities | Yen Denominated | Other Corporate
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	326	344
Gross Unrealized Gains	25	17
Gross Unrealized Losses	0	0
Fair Value	351	361
Perpetual Securities | Dollar Denominated | Banks/financial Institutions
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	317	336
Gross Unrealized Gains	13	3
Gross Unrealized Losses	17	29
Fair Value	313	310
Equity Securities
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Cost or Amortized Cost	21	22
Gross Unrealized Gains	4	4
Gross Unrealized Losses	0	1
Fair Value	$ 25	$ 25

XML

INVESTMENTS - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 investment	Mar. 31, 2011 investment	Dec. 31, 2011
Schedule of Investments [Line Items]
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, number of investments	1	8
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, amortized cost	$ 122	$ 1,600
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, aggregate unrealized gain (loss)	(23)	(270)
Available-for-sale fixed maturity securities, recognized gains (losses)	(45)	(579)
Realized pretax investment gains (losses) from sales and redemptions	78	(144)
Number of impaired Tier I securities (in investments)	2
Fair value of investments in an unrealized loss position	30,615		29,310
Total Unrealized Losses	2,696		3,536
Percentage that the lending policy requires that the fair value of the securities and/or unrestricted cash received as collateral be of the fair value of the loaned securities	102.00%
Republic of Tunisia
Schedule of Investments [Line Items]
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, amortized cost		769
Portugal and Ireland
Schedule of Investments [Line Items]
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, number of investments		4
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, amortized cost		631
Perpetual Securities
Schedule of Investments [Line Items]
Available-for-sale fixed maturity securities, recognized gains (losses)	(75)	4
Perpetual securities, interest coupons that were fixed at issuance subsequently change to a floating short-term interest rate	floating short-term interest rate of 125 to more than 300 basis points above an appropriate market index
Maturity date (in years)	25 years
Fair value of investments in an unrealized loss position	2,152		2,507
Total Unrealized Losses	318		633
Perpetual Securities | Lower Limit
Schedule of Investments [Line Items]
Perpetual securities, floating short-term interest rate basis point above market index	1.25%
Perpetual Securities | Minimum Upper Limit
Schedule of Investments [Line Items]
Perpetual securities, floating short-term interest rate basis point above market index	3.00%
Perpetual Securities | Europe, excluding the United Kingdom
Schedule of Investments [Line Items]
Geographic concentration of credit risk for issuer of investments owned	69.00%
Perpetual Securities | United Kingdom
Schedule of Investments [Line Items]
Geographic concentration of credit risk for issuer of investments owned	11.00%
Perpetual Securities | Japan
Schedule of Investments [Line Items]
Geographic concentration of credit risk for issuer of investments owned	12.00%
Perpetual Securities | Other Countries
Schedule of Investments [Line Items]
Geographic concentration of credit risk for issuer of investments owned	8.00%
Investment grade | Perpetual Securities
Schedule of Investments [Line Items]
Percentage of unrealized losses attributable to securities that were investment grade	91.00%		73.00%
Banks/financial Institutions
Schedule of Investments [Line Items]
Fair value of investments in an unrealized loss position	12,000
Total Unrealized Losses	1,500
Banks/financial Institutions | Europe, excluding the United Kingdom
Schedule of Investments [Line Items]
Geographic concentration of credit risk for issuer of investments owned	35.00%
Banks/financial Institutions | United States
Schedule of Investments [Line Items]
Geographic concentration of credit risk for issuer of investments owned	23.00%
Banks/financial Institutions | United Kingdom
Schedule of Investments [Line Items]
Geographic concentration of credit risk for issuer of investments owned	9.00%
Banks/financial Institutions | Japan
Schedule of Investments [Line Items]
Geographic concentration of credit risk for issuer of investments owned	8.00%
Banks/financial Institutions | Other Countries
Schedule of Investments [Line Items]
Geographic concentration of credit risk for issuer of investments owned	25.00%
Banks/financial Institutions | Investment grade
Schedule of Investments [Line Items]
Percentage of unrealized losses attributable to securities that were investment grade	85.00%		80.00%
Banks/financial Institutions | Below Investment Grade
Schedule of Investments [Line Items]
Fair value of investments in an unrealized loss position	629
Total Unrealized Losses	227
Number of Issuers	3
Percentage of unrealized losses attributable to a certain number of securities	99.00%
Number of issuers with average unrealized losses per investment	1
Banks/financial Institutions | Below Investment Grade | Upper Limit
Schedule of Investments [Line Items]
Issuers, average unrealized losses per investment	3
Sovereign and Supranational | Investment grade
Schedule of Investments [Line Items]
Percentage of unrealized losses attributable to securities that were investment grade	94.00%		100.00%
Public Utilities | Investment grade
Schedule of Investments [Line Items]
Percentage of unrealized losses attributable to securities that were investment grade	69.00%		77.00%
Other Corporate | Investment grade
Schedule of Investments [Line Items]
Percentage of unrealized losses attributable to securities that were investment grade	75.00%		73.00%
Variable Interest Entity, Not Consolidated
Schedule of Investments [Line Items]
Number of issuers	161
Parent Company | Investment grade
Schedule of Investments [Line Items]
Available-for-sale fixed-maturity securities, amortized cost	120
Available-for-sale fixed maturity securities, fair value	$ 136

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2012

Notes to 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 and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 77% and 74% of the Company's total revenues in the three-month periods ended March 31, 2012, and 2011, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 87% at March 31, 2012, and December 31, 2011.

Basis of Presentation

We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to GAAP issued by the FASB are derived from the FASB Accounting Standards Codification^TM (ASC). The preparation of financial statements in conformity with GAAP requires us to make estimates when recording transactions resulting from business operations based on currently available information. The most significant items on our balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments, deferred policy acquisition costs, 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, we believe the amounts provided are adequate.

The 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, 2012, and December 31, 2011, and the consolidated statements of earnings, comprehensive income (loss), shareholders' equity and cash flows for the three-month periods ended March 31, 2012, and 2011. 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 our annual report to shareholders for the year ended December 31, 2011.

Significant Accounting Policies

We have revised the accounting policy for deferred policy acquisition costs as a result of the adoption of amended accounting guidance effective January 1, 2012, and we have updated the accounting policy for income taxes. All other categories of significant accounting policies remain unchanged from our annual report to shareholders for the year ended December 31, 2011.

Deferred Policy Acquisition Costs: Certain direct and incremental costs of acquiring new business are deferred and amortized with interest over the premium payment periods in proportion to the ratio of annual premium income to total anticipated premium income. Anticipated premium income is estimated by using the same mortality, persistency and interest assumptions used in computing liabilities for future policy benefits. In this manner, the related acquisition expenses are matched with revenues. Deferred costs include the excess of current-year commissions over ultimate renewal-year commissions and certain incremental direct policy issue, underwriting and sales expenses. All of these incremental costs are directly related to successful policy acquisition.

For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. For internal replacement transactions where the resulting contract is substantially unchanged, the policy is accounted for as a continuation of the replaced contract. Unamortized deferred acquisition costs from the original policy continue to be amortized over the expected life of the new policy, and the costs of replacing the policy are accounted for as policy maintenance costs and expensed as incurred. Internal replacement transactions that result in a policy that is not substantially unchanged are accounted for as an extinguishment of the original policy and the issuance of a new policy. Unamortized deferred acquisition costs on the original policy that was replaced are immediately expensed, and the costs of acquiring the new policy are capitalized and amortized in accordance with our accounting policies for deferred acquisition costs.

Income Taxes:Income tax provisions are generally based on pretax earnings reported for financial statement purposes, which differ from those amounts used in preparing our income tax returns. Deferred income taxes are recognized for temporary differences between the financial reporting basis and income tax basis of assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the periods in which we expect the temporary differences to reverse. We record deferred tax assets for tax positions taken based on our assessment of whether the tax position is more likely than not to be sustained upon examination by taxing authorities. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized.

As discussed in the Translation of Foreign Currencies section in Note 1 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011, Aflac Japan maintains a dollar-denominated investment portfolio on behalf of Aflac U.S. While there are no translation effects to record in other comprehensive income, the deferred tax expense or benefit associated with foreign exchange gains or losses on the portfolio is recognized in other comprehensive income until the securities mature or are sold. Total income tax expense (benefit) related to items of other comprehensive income (loss) included tax expense of $157 million and $51 million during the three-month periods ended March 31, 2012 and 2011, respectively, for this dollar-denominated portfolio. Excluding these amounts from total taxes on other comprehensive income would result in an effective income tax rate on pretax other comprehensive income (loss) of 44.5% and 32.4% in the three-month periods ended March 31, 2012 and 2011, respectively.

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Presentation of comprehensive income: In June 2011, the FASB issued guidance to amend the presentation of comprehensive income.The amendment requires that all non-owner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. We adopted this guidance as of January 1, 2012 and elected the option to report comprehensive income in two separate but consecutive statements. The adoption of this guidance did not have an impact on our financial position or results of operations. The amendment also requires reclassification adjustments for items that are reclassified from other comprehensive income to net income to be presented in the statements where the components of net income and the components of other comprehensive income are presented; however, in December 2011, the FASB issued guidance to temporarily defer the effective date of this additional requirement.

Fair value measurements and disclosures: In May 2011, the FASB issued guidance to amend the fair value measurement and disclosure requirements. Most of the amendments are clarifications of the FASB's intent about the application of existing fair value measurement and disclosure requirements. Other amendments change a particular principle or requirement for measuring fair value or disclosing information about fair value measurements. The new fair value measurement disclosures include additional quantitative and qualitative disclosures for Level 3 measurements, including a qualitative sensitivity analysis of fair value to changes in unobservable inputs, and categorization by fair value hierarchy level for items for which the fair value is only disclosed. We adopted this guidance as of January 1, 2012. The adoption of this guidance impacted our financial statement disclosures, but it did not affect our financial position or results of operations.

Accounting for costs associated with acquiring or renewing insurance contracts: In October 2010, the FASB issued amended accounting guidance on accounting for costs associated with acquiring or renewing insurance contracts. Under the previous guidance, costs that varied with and were primarily related to the acquisition of a policy were deferrable. Under the amended guidance, only incremental direct costs associated with the successful acquisition of a new or renewal contract may be capitalized, and direct-response advertising costs may be capitalized only if they meet certain criteria. This guidance is effective on a prospective or retrospective basis for interim and annual periods beginning after December 15, 2011. We retrospectively adopted this guidance as of January 1, 2012. The retrospective adoption of this accounting standard resulted in an after-tax cumulative reduction to retained earnings of $408 million and an after-tax cumulative reduction to unrealized foreign currency translation gains in accumulated other comprehensive income of $108 million, resulting in a total reduction to shareholders' equity of $516 million as of December 31, 2010. The adoption of this accounting standard had an immaterial impact on net income in 2011 and for all preceding years.

Recent accounting guidance not discussed above is not applicable or did not have an impact to our business.

For additional information on new accounting pronouncements and recent accounting guidance and their impact, if any, on our financial position or results of operations, see Note 1 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011.

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INVESTMENTS - Contractual Maturities of Investments in Fixed Maturities (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012
Aflac Japan
Available for sale:
Due in one year or less	$ 2,123
Due after one year through five years	2,223
Due after five years through 10 years	3,940
Due after 10 years	25,754
Mortgage- and asset-backed securities	1,108
Total fixed maturities available for sale	35,148
Held to maturity:
Due in one year or less	460
Due after one year through five years	1,085
Due after five years through 10 years	3,226
Due after 10 years	43,946
Mortgage- and asset-backed securities	117
Total fixed maturities held to maturity	48,834
Available for sale:
Due in one year or less	2,168
Due after one year through five years	2,330
Due after five years through 10 years	4,201
Due after 10 years	26,463
Mortgage- and asset-backed securities	1,209
Total fixed maturities available for sale	36,371
Held to maturity:
Due in one year or less	463
Due after one year through five years	1,161
Due after five years through 10 years	3,544
Due after 10 years	43,155
Mortgage- and asset-backed securities	121
Total fixed maturities held to maturity	48,444
Aflac U.S.
Available for sale:
Due in one year or less	13
Due after one year through five years	358
Due after five years through 10 years	894
Due after 10 years	7,559
Mortgage- and asset-backed securities	45
Total fixed maturities available for sale	8,869
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	0
Due after 10 years	0
Mortgage- and asset-backed securities	0
Total fixed maturities held to maturity	0
Available for sale:
Due in one year or less	13
Due after one year through five years	387
Due after five years through 10 years	1,036
Due after 10 years	8,523
Mortgage- and asset-backed securities	56
Total fixed maturities available for sale	10,015
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	0
Due after 10 years	0
Mortgage- and asset-backed securities	0
Total fixed maturities held to maturity	$ 0

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INVESTMENTS - Details of Holdings of Perpetual Securities (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Investment Holdings [Line Items]
Amortized Cost	$ 49,680	$ 52,275
Fair Value	51,899	54,036
Perpetual Securities
Investment Holdings [Line Items]
Amortized Cost	5,522	6,897
Fair Value	5,352	6,439
Unrealized Gain (Loss)	(170)	(458)
Perpetual Securities | Upper Tier II
Investment Holdings [Line Items]
Amortized Cost	3,251	4,285
Fair Value	3,194	4,244
Unrealized Gain (Loss)	(57)	(41)
Perpetual Securities | Upper Tier II | AA
Investment Holdings [Line Items]
Amortized Cost	80	196
Fair Value	81	204
Unrealized Gain (Loss)	1	8
Perpetual Securities | Upper Tier II | A
Investment Holdings [Line Items]
Amortized Cost	530	2,108
Fair Value	544	2,046
Unrealized Gain (Loss)	14	(62)
Perpetual Securities | Upper Tier II | BBB
Investment Holdings [Line Items]
Amortized Cost	2,641	1,791
Fair Value	2,569	1,804
Unrealized Gain (Loss)	(72)	13
Perpetual Securities | Upper Tier II | BB or Lower
Investment Holdings [Line Items]
Amortized Cost	0	190
Fair Value	0	190
Unrealized Gain (Loss)	0	0
Perpetual Securities | Tier I
Investment Holdings [Line Items]
Amortized Cost	1,945	2,268
Fair Value	1,807	1,834
Unrealized Gain (Loss)	(138)	(434)
Perpetual Securities | Tier I | A
Investment Holdings [Line Items]
Amortized Cost	60	0
Fair Value	60	0
Unrealized Gain (Loss)	0	0
Perpetual Securities | Tier I | BBB
Investment Holdings [Line Items]
Amortized Cost	1,350	1,684
Fair Value	1,238	1,417
Unrealized Gain (Loss)	(112)	(267)
Perpetual Securities | Tier I | BB or Lower
Investment Holdings [Line Items]
Amortized Cost	535	584
Fair Value	509	417
Unrealized Gain (Loss)	(26)	(167)
Perpetual Securities | Other subordinated - non-banks | BBB
Investment Holdings [Line Items]
Amortized Cost	326	344
Fair Value	351	361
Unrealized Gain (Loss)	$ 25	$ 17

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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, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Liabilities:
Notes payable (excluding capital leases)	$ 4,354	$ 3,536
Obligation to Japanese policyholder protection corporation	47	71
Liabilities Fair Value Disclosure Financial Instruments Carried At Cost	4,401	3,607
Fixed Maturities
Assets:
Held-to-maturity securities	48,444	46,383
Carrying Value
Liabilities:
Obligation to Japanese policyholder protection corporation	47	71
Government and Agencies Debt Securities | Fixed Maturities
Assets:
Held-to-maturity securities	23,067	19,071
Municipalities | Fixed Maturities
Assets:
Held-to-maturity securities	550	584
Mortgage- and asset-backed Securities | Fixed Maturities
Assets:
Held-to-maturity securities	121	134
Public Utilities | Fixed Maturities
Assets:
Held-to-maturity securities	5,207	5,637
Sovereign and Supranational | Fixed Maturities
Assets:
Held-to-maturity securities	3,953	4,165
Banks/financial Institutions | Fixed Maturities
Assets:
Held-to-maturity securities	10,878	11,480
Other Corporate | Fixed Maturities
Assets:
Held-to-maturity securities	4,668	5,312
Level 1
Liabilities:
Notes payable (excluding capital leases)	0	0
Obligation to Japanese policyholder protection corporation	0	0
Liabilities Fair Value Disclosure Financial Instruments Carried At Cost	0	0
Level 1 | Fixed Maturities
Assets:
Held-to-maturity securities	23,067	19,071
Level 1 | Government and Agencies Debt Securities | Fixed Maturities
Assets:
Held-to-maturity securities	23,067	19,071
Level 1 | Municipalities | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 1 | Mortgage- and asset-backed Securities | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 1 | Public Utilities | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 1 | Sovereign and Supranational | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 1 | Banks/financial Institutions | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 1 | Other Corporate | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 2
Liabilities:
Notes payable (excluding capital leases)	0	0
Obligation to Japanese policyholder protection corporation	0	0
Liabilities Fair Value Disclosure Financial Instruments Carried At Cost	0	0
Level 2 | Fixed Maturities
Assets:
Held-to-maturity securities	25,291	27,217
Level 2 | Government and Agencies Debt Securities | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 2 | Municipalities | Fixed Maturities
Assets:
Held-to-maturity securities	550	584
Level 2 | Mortgage- and asset-backed Securities | Fixed Maturities
Assets:
Held-to-maturity securities	35	39
Level 2 | Public Utilities | Fixed Maturities
Assets:
Held-to-maturity securities	5,207	5,637
Level 2 | Sovereign and Supranational | Fixed Maturities
Assets:
Held-to-maturity securities	3,953	4,165
Level 2 | Banks/financial Institutions | Fixed Maturities
Assets:
Held-to-maturity securities	10,878	11,480
Level 2 | Other Corporate | Fixed Maturities
Assets:
Held-to-maturity securities	4,668	5,312
Level 3
Liabilities:
Notes payable (excluding capital leases)	4,354	3,536
Obligation to Japanese policyholder protection corporation	47	71
Liabilities Fair Value Disclosure Financial Instruments Carried At Cost	4,401	3,607
Level 3 | Fixed Maturities
Assets:
Held-to-maturity securities	86	95
Level 3 | Government and Agencies Debt Securities | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 3 | Municipalities | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 3 | Mortgage- and asset-backed Securities | Fixed Maturities
Assets:
Held-to-maturity securities	86	95
Level 3 | Public Utilities | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 3 | Sovereign and Supranational | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 3 | Banks/financial Institutions | Fixed Maturities
Assets:
Held-to-maturity securities	0	0
Level 3 | Other Corporate | Fixed Maturities
Assets:
Held-to-maturity securities	$ 0	$ 0

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Consolidated Statements of Earnings (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Revenues:
Premiums, principally supplemental health insurance	$ 5,378		$ 4,872
Net investment income	882		794
Realized investment gains (losses):
Other-than-temporary impairment losses realized	(203)	[1]	(405)	[2]
Sales and redemptions	78		(144)
Derivative and other gains (losses)	80		(30)
Total realized investment gains (losses)	(45)		(579)
Other income	25		30
Total revenues	6,240		5,117
Benefits and expenses:
Benefits and claims	3,646		3,222
Acquisition and operating expenses:
Amortization of deferred policy acquisition costs	287		261
Insurance commissions	435		422
Insurance expenses	564		534
Interest expense	57		45
Other operating expenses	49		42
Total acquisition and operating expenses	1,392		1,304
Total benefits and expenses	5,038		4,526
Earnings before income taxes	1,202		591
Income taxes	417		202
Net earnings	$ 785		$ 389
Net earnings per share:
Basic	$ 1.68		$ 0.83
Diluted	$ 1.68		$ 0.83
Weighted-average outstanding common shares used in computing earnings per share (In thousands):
Basic	465,887		468,012
Diluted	468,533		472,104
Cash dividends per share	$ 0.33		$ 0.30

[1] Includes $28 for credit-related impairments and $175 from change in intent to sell securities

[2] Consisted completely of credit-related impairments

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DERIVATIVE INSTRUMENTS - Additional Information (Detail)	Mar. 31, 2012 Y currency	Dec. 31, 2011 Cash flow hedges Dedesignated USD ($)	Mar. 31, 2012 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Dec. 31, 2011 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Jul. 31, 2011 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Mar. 31, 2012 2.65% senior notes due February 2017 USD ($)	Mar. 31, 2012 2.65% senior notes due February 2017 JPY (¥)	Mar. 31, 2012 4.00% senior notes due February 2022 USD ($)	Mar. 31, 2012 4.00% senior notes due February 2022 JPY (¥)
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Number of currencies related to foreign currency swaps	2
Hedging activity, weighted-average period (in years)	14
Notes payable, principal amount			¥ 5,500,000,000	¥ 5,500,000,000	¥ 5,500,000,000	$ 400,000,000		$ 350,000,000
Notes payable, effective principal amount							30,900,000,000		27,000,000,000
Debt Instrument, Interest Rate, Stated Percentage			1.35%	1.34%		2.65%	2.65%	4.00%	4.00%
Notes payable, effective interest rate					1.475%	1.22%	1.22%	2.07%	2.07%
Foreign currency swaps used in cash flow hedging, notional amount of swaps de-designated		$ 500,000,000

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Consolidated Statements of Shareholders' Equity (USD $) In Millions, unless otherwise specified	Total	Common stock:	Additional paid-in capital:	Retained earnings:	Accumulated other comprehensive income (loss):	Treasury stock:
Balance, beginning of period at Dec. 31, 2010		$ 66	$ 1,320	$ 13,787	$ 753	$ (5,386)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options			12
Share-based compensation			8
Gain (loss) on treasury stock reissued			10
Net earnings	389			389
Dividends to shareholders				(141)
Unrealized foreign currency translation gains (losses) during period, net of income taxes:
Change in unrealized foreign currency translation gains (losses) during period, net of income taxes					(55)
Unrealized gains (losses) on investment securities during period, net of income taxes and reclassification adjustments:
Change in unrealized gains (losses) on investment securities not other-than-temporarily impaired, net of income taxes					(52)
Change in unrealized gains (losses) on other-than-temporarily impaired investment securities, net of income taxes					3
Unrealized gains (losses) on derivatives during period, net of income taxes					(36)
Pension liability adjustment during period, net of income taxes					2
Purchases of treasury stock						(184)
Cost of shares issued						14
Balance, end of period at Mar. 31, 2011	10,510	66	1,350	14,035	615	(5,556)
Balance, beginning of period at Dec. 31, 2011	12,946	66	1,408	15,148	1,965	(5,641)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options			13
Share-based compensation			5
Gain (loss) on treasury stock reissued			7
Net earnings	785			785
Dividends to shareholders				(154)
Unrealized foreign currency translation gains (losses) during period, net of income taxes:
Change in unrealized foreign currency translation gains (losses) during period, net of income taxes					(266)
Unrealized gains (losses) on investment securities during period, net of income taxes and reclassification adjustments:
Change in unrealized gains (losses) on investment securities not other-than-temporarily impaired, net of income taxes					305
Change in unrealized gains (losses) on other-than-temporarily impaired investment securities, net of income taxes					0
Unrealized gains (losses) on derivatives during period, net of income taxes					(8)
Pension liability adjustment during period, net of income taxes					4
Purchases of treasury stock						(10)
Cost of shares issued						16
Balance, end of period at Mar. 31, 2012	$ 13,643	$ 66	$ 1,433	$ 15,779	$ 2,000	$ (5,635)

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Summary of Notes Payable (Parenthetical) (Detail) In Millions, unless otherwise specified									3 Months Ended
	Mar. 31, 2012 8.50% senior notes due May 2019	Dec. 31, 2011 8.50% senior notes due May 2019	Mar. 31, 2012 6.45% senior notes due August 2040 USD ($)	Dec. 31, 2011 6.45% senior notes due August 2040 USD ($)	Mar. 31, 2012 6.90% senior notes due December 2039 USD ($)	Dec. 31, 2011 6.90% senior notes due December 2039 USD ($)	Mar. 31, 2012 3.45% senior notes due August 2015	Dec. 31, 2011 3.45% senior notes due August 2015	Mar. 31, 2012 2.65% senior notes due February 2017 USD ($)	Mar. 31, 2012 4.00% senior notes due February 2022 USD ($)	Mar. 31, 2012 2.26% yen-denominated Uridashi notes due September 2016 JPY (¥)	Dec. 31, 2011 2.26% yen-denominated Uridashi notes due September 2016 JPY (¥)	Mar. 31, 2012 1.47% yen-denominated Samurai notes due July 2014 JPY (¥)	Dec. 31, 2011 1.47% yen-denominated Samurai notes due July 2014 JPY (¥)	Mar. 31, 2012 1.87% yen-denominated Samurai notes due June 2012 JPY (¥)	Dec. 31, 2011 1.87% yen-denominated Samurai notes due June 2012 JPY (¥)	Mar. 31, 2012 1.84% yen-denominated Samurai notes due July 2016 JPY (¥)	Dec. 31, 2011 1.84% yen-denominated Samurai notes due July 2016 JPY (¥)	Mar. 31, 2012 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Dec. 31, 2011 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Jul. 31, 2011 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Mar. 31, 2012 3.60% yen-denominated loan due July 2015 JPY (¥)	Dec. 31, 2011 3.60% yen-denominated loan due July 2015 JPY (¥)	Mar. 31, 2012 3.00% yen-denominated loan due August 2015 JPY (¥)	Dec. 31, 2011 3.00% yen-denominated loan due August 2015 JPY (¥)
Debt Instrument [Line Items]
Notes payable, interest rate	8.50%	8.50%	6.45%	6.45%	6.90%	6.90%	3.45%	3.45%	2.65%	4.00%	2.26%	2.26%	1.47%	1.47%	1.87%	1.87%	1.84%	1.84%	1.35%	1.34%		3.60%	3.60%	3.00%	3.00%
Notes payable, principal amount			$ 450	$ 450	$ 400	$ 400			$ 400	$ 350	¥ 8,000	¥ 8,000	¥ 28,700	¥ 28,700	¥ 26,600	¥ 26,600	¥ 15,800	¥ 15,800	¥ 5,500	¥ 5,500	¥ 5,500	¥ 10,000	¥ 10,000	¥ 5,000	¥ 5,000
Notes payable, underwriting discount			$ 2	$ 2	$ 4	$ 4				$ 1
Notes payable, maturity period (in years)									5 years	10 years

XML

INVESTMENTS - Information Regarding Pretax Realized Gains and Losses From Investments (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Gain (Loss) on Investments [Line Items]
Other-than-temporary impairment losses realized	$ (203)	[1]	$ (405)	[2]
Derivative gains (losses)	80		(30)
Total realized investment gains (losses)	(45)		(579)
Debt Securities | Available-for-sale Securities
Gain (Loss) on Investments [Line Items]
Gross gains from sales	14		26
Gross losses from sales	(1)		(187)
Net gains (losses) from redemptions	0		7
Other-than-temporary impairment losses realized	(63)		(404)
Total realized investment gains (losses)	(50)		(558)
Perpetual Securities
Gain (Loss) on Investments [Line Items]
Gross gains from sales	70		6
Gross losses from sales	(65)		(2)
Net gains (losses) from redemptions	60		0
Other-than-temporary impairment losses realized	(140)		0
Total realized investment gains (losses)	(75)		4
Equity Securities
Gain (Loss) on Investments [Line Items]
Other-than-temporary impairment losses realized	0		(1)
Total realized investment gains (losses)	0		(1)
Other assets
Gain (Loss) on Investments [Line Items]
Derivative gains (losses)	80		(30)
Other	0		6
Total realized investment gains (losses)	$ 80		$ (24)

[1] Includes $28 for credit-related impairments and $175 from change in intent to sell securities

[2] Consisted completely of credit-related impairments

XML

BENEFIT PLANS - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 Y
Lower Limit
Employee Benefits Disclosure [Line Items]
Health care plan, retirement age for eligibility, (in years)	55
Health care plan, number of years of service for eligibility	15 years
Health care plan, retirement age and years of service combined years for eligibility	80 years
Upper Limit
Employee Benefits Disclosure [Line Items]
Health care plan, retirement age for eligibility, (in years)	65
Japanese Pension Plan
Employee Benefits Disclosure [Line Items]
Employer contributions	6

XML

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Carrying Value and Fair Value of Financial Instruments Disclosure

The carrying values and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2012				December 31, 2011
(In millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed-maturity securities	$	89,502	$	89,219	$	88,588	$	88,039
Fixed-maturity securities - consolidated variable interest entities	5,854		5,747		5,993		5,916
Perpetual securities	4,159		4,159		5,149		5,149
Perpetual securities - consolidated variable interest entities	1,193		1,193		1,290		1,290
Equity securities	25		25		25		25
Interest rate, foreign currency, and credit default swaps	318		318		375		375
Liabilities:
Notes payable (excluding capitalized leases)	3,955		4,354		3,275		3,536
Interest rate, foreign currency, and credit default swaps	428		428		531		531
Obligation to Japanese policyholder protection corporation	47		47		71		71

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, 2012
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Government and agencies	$	9,965	$	764	$	0	$	10,729
Municipalities	0		1,163		0		1,163
Mortgage- and asset-backed securities	0		897		367		1,264
Public utilities	0		6,926		409		7,335
Sovereign and supranational	0		1,787		418		2,205
Banks/financial institutions	0		6,612		1,097		7,709
Other corporate	0		15,082		1,035		16,117
Total fixed maturities	9,965		33,231		3,326		46,522
Perpetual securities:
Banks/financial institutions	0		4,676		325		5,001
Other corporate	0		351		0		351
Total perpetual securities	0		5,027		325		5,352
Equity securities	15		6		4		25
Other assets:
Interest rate swaps	0		0		31		31
Foreign currency swaps	0		47		240		287
Total other assets	0		47		271		318
Cash and cash equivalents	2,210		0		0		2,210
Total assets	$	12,190	$	38,311	$	3,926	$	54,427
Liabilities:
Interest rate swaps	$	0	$	0	$	3	$	3
Foreign currency swaps	0		9		319		328
Credit default swaps	0		0		97		97
Total liabilities	$	0	$	9	$	419	$	428

	December 31, 2011
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Government and agencies	$	11,092	$	721	$	0	$	11,813
Municipalities	0		1,159		0		1,159
Mortgage- and asset-backed securities	0		944		394		1,338
Public utilities	0		6,803		422		7,225
Sovereign and supranational	0		1,874		434		2,308
Banks/financial institutions	0		6,379		1,074		7,453
Other corporate	0		15,171		1,105		16,276
Total fixed maturities	11,092		33,051		3,429		47,572
Perpetual securities:
Banks/financial institutions	0		5,552		526		6,078
Other corporate	0		361		0		361
Total perpetual securities	0		5,913		526		6,439
Equity securities	15		6		4		25
Other assets:
Interest rate swaps	0		0		34		34
Foreign currency swaps	0		0		341		341
Total other assets	0		0		375		375
Cash and cash equivalents	2,249		0		0		2,249
Total assets	$	13,356	$	38,970	$	4,334	$	56,660
Liabilities:
Interest rate swaps	$	0	$	0	$	4	$	4
Foreign currency swaps	0		0		397		397
Credit default swaps	0		0		130		130
Total liabilities	$	0	$	0	$	531	$	531

Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost

The following tables present the fair values categorized by hierarchy levels for the Company's assets and liabilities that are carried at cost or amortized cost and for which fair value is disclosed.

	March 31, 2012
(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 held to maturity, carried at amortized cost:
Fixed maturities:
Government and agencies	$	23,067	$	0	$	0	$	23,067
Municipalities	0		550		0		550
Mortgage- and asset-backed securities	0		35		86		121
Public utilities	0		5,207		0		5,207
Sovereign and supranational	0		3,953		0		3,953
Banks/financial institutions	0		10,878		0		10,878
Other corporate	0		4,668		0		4,668
Total assets	$	23,067	$	25,291	$	86	$	48,444
Liabilities:
Notes payable (excluding capital leases)	$	0	$	0	$	4,354	$	4,354
Obligation to Japanese policyholder protection corporation	0		0		47		47
Total liabilities	$	0	$	0	$	4,401	$	4,401

	December 31, 2011
(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 held to maturity, carried at amortized cost:
Fixed maturities:
Government and agencies	$	19,071	$	0	$	0	$	19,071
Municipalities	0		584		0		584
Mortgage- and asset-backed securities	0		39		95		134
Public utilities	0		5,637		0		5,637
Sovereign and supranational	0		4,165		0		4,165
Banks/financial institutions	0		11,480		0		11,480
Other corporate	0		5,312		0		5,312
Total assets	$	19,071	$	27,217	$	95	$	46,383
Liabilities:
Notes payable (excluding capital leases)	$	0	$	0	$	3,536	$	3,536
Obligation to Japanese policyholder protection corporation	0		0		71		71
Total liabilities	$	0	$	0	$	3,607	$	3,607

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables present the changes in our available-for-sale investments and derivatives classified as Level 3.

Three Months Ended March 31, 2012
	Fixed Maturities														Perpetual Securities			Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities			Sovereign and Supranational			Banks/ Financial Institutions		Other Corporate			Banks/ Financial Institutions					Interest Rate Swaps			Foreign Currency Swaps			Credit Default Swaps			Total
Balance, beginning of period	$	394		$	422		$	434		$	1,074	$	1,105		$	526		$	4	$	30		$	(56	)	$	(130	)	$	3,803
Realized gains or losses included in earnings	0			0			0			0		2			49			0		(2		)	13			33			95
Unrealized gains or losses included in other comprehensive income	(23		)	(13		)	(16		)	23		(38		)	6			0		0			(12		)	0			(73		)
Purchases, issuances, sales and settlements:
Purchases	0			0			0			0		0			0			0		0			0			0			0
Issuances	0			0			0			0		0			0			0		0			0			0			0
Sales	0			0			0			0		(34		)	(256		)	0		0			0			0			(290		)
Settlements	(4		)	0			0			0		0			0			0		0			(24		)	0			(28		)
Transfers into Level 3	0			0			0			0		0			0			0		0			0			0			0
Transfers out of Level 3	0			0			0			0		0			0			0		0			0			0			0
Balance, end of period	$	367		$	409		$	418		$	1,097	$	1,035		$	325		$	4	$	28		$	(79	)	$	(97	)	$	3,507
Change in unrealized gains (losses) still held (1)	$	0		$	0		$	0		$	0	$	0		$	0		$	0	$	(2	)	$	13		$	33		$	44

⁽¹⁾Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains (losses) relating to assets classified as

Level 3 that were still held at March 31, 2012

Three Months Ended March 31, 2011
	Fixed Maturities													Perpetual Securities		Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities		Collateralized Debt Obligations		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate		Banks/ Financial Institutions				Foreign Currency Swaps			Credit Default Swaps			Total
Balance, beginning of period	$	267		$	0	$	5	$	0	$	386	$	0	$	0	$	4	$	241		$	(343	)	$	560
Realized gains or losses included in earnings	(6		)	0		0		0		1		0		0		0		(64		)	5			(64		)
Unrealized gains or losses included in other comprehensive income	(10		)	0		0		0		33		0		0		0		(51		)	0			(28		)
Purchases, issuances, sales and settlements:
Purchases	0			0		0		0		0		0		0		0		0			0			0
Issuances	0			0		0		0		0		0		0		0		0			0			0
Sales	0			0		0		0		0		0		0		0		0			0			0
Settlements	(3		)	0		0		0		0		0		0		0		0			0			(3		)
Transfers into Level 3	0			0		0		0		0		0		0		0		0			0			0
Transfers out of Level 3	0			0		0		0		0		0		0		0		0			0			0
Balance, end of period	$	248		$	0	$	5	$	0	$	420	$	0	$	0	$	4	$	126		$	(338	)	$	465
Change in unrealized gains    (losses) still held(1)	$	(6	)	$	0	$	0	$	0	$	1	$	0	$	0	$	0	$	(64	)	$	5		$	(64	)

⁽¹⁾Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains (losses) relating to assets classified as Level 3 that were still held at March 31, 2011

Discounted Cash Flow Pricing Model Sensitivity Analysis

The estimated effect of potential changes in interest rates, credit spreads and interest rate volatility on these fair values as of such date is as follows:

	Interest Rates						Credit Spreads						Interest Rate Volatility
Factor Change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)
	+50 bps		$	(978	)		+50 bps		$	(975	)		+50 %		$	(36	)
	-50 bps		999				-50 bps		1,011				-50 %		1

The fair values of our held-to-maturity fixed-maturity securities valued by our DCF pricing model totaled $23.9 billion at March 31, 2012. The estimated effect of potential changes in interest rates, credit spreads and interest rate volatility on these fair values as of such date is as follows:

	Interest Rates						Credit Spreads						Interest Rate Volatility
Factor Change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)
	+50 bps		$	(1,488	)		+50 bps		$	(1,379	)		+50 %		$	(132	)
	-50 bps		1,314				-50 bps		1,380				-50 %		167

Fair Value Inputs Assets Quantitative Information

The following tables summarize the significant unobservable inputs used in the valuation of our Level 3 available-for-sale investments and derivatives. 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, 2012
(In millions)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Mortgage- and asset-backed securities	$	367	Consensus pricing	Offered quotes	N/A	(e)
Public utilities	409		Discounted cash flow	Historical volatility	8.85%
Sovereign and supranational	418		Discounted cash flow	Historical volatility	8.85%
Banks/financial institutions	547		Discounted cash flow	Historical volatility	8.85%
	550		Consensus pricing	Offered quotes	N/A	(e)
Other corporate	594		Discounted cash flow	Historical volatility	8.85%
	441		Consensus pricing	Offered quotes	N/A	(e)
Perpetual securities:
Banks/financial institutions	325		Discounted cash flow	Historical volatility	8.85%
Equity securities	4		Net asset value	Offered quotes	$0-$993 ($4)
Other assets:
Interest rate swaps	31		Discounted cash flow	Base correlation	44% - 52%	(a)
				CDS spreads	3 - 1673 (136) bps
				Recovery rate	25% - 70% (40%)
Foreign currency swaps	81		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	6 - 157 (112) bps
				Foreign exchange rates	20.69%	(b)
	46		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	13 - 190 (97) bps
	113		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				Foreign exchange rates	20.69%	(b)
Total assets	$	3,926

Fair Value Inputs Liabilities Quantitative Information

March 31, 2012
(In millions)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Liabilities:
Interest rate swaps	$	3	Discounted cash flow	Base correlation	44% - 52%	(a)
				CDS spreads	3 - 1673 (136) bps
				Recovery rate	25% - 70% (40%)
Foreign currency swaps	91		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	14 - 239 (128) bps
				Foreign exchange rates	20.69%	(b)
	21		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	11 - 359 (214) bps
	207		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				Foreign exchange rates	20.69%	(b)
Credit default swaps	97		Discounted cash flow	Base correlations	44% - 52%	(a)
				CDS spreads	3 - 1673 (136) bps
				Recovery rate	25% - 70% (40%)
Total liabilities	$	419

XML

INVESTMENTS - Pretax Other-Than-Temporary Impairment Losses by Investment Category (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Gain (Loss) on Investments [Line Items]
Other-than-temporary impairment losses	$ 203	[1]	$ 405	[2]
Perpetual Securities
Gain (Loss) on Investments [Line Items]
Other-than-temporary impairment losses	140		0
Corporate Bonds
Gain (Loss) on Investments [Line Items]
Other-than-temporary impairment losses	63		397
Mortgage- and asset-backed Securities
Gain (Loss) on Investments [Line Items]
Other-than-temporary impairment losses	0		6
Municipalities
Gain (Loss) on Investments [Line Items]
Other-than-temporary impairment losses	0		1
Equity Securities
Gain (Loss) on Investments [Line Items]
Other-than-temporary impairment losses	0		1
Credit Related Impairment [Member]
Gain (Loss) on Investments [Line Items]
Other-than-temporary impairment losses	28
Change In Intent Impairment [Member]
Gain (Loss) on Investments [Line Items]
Other-than-temporary impairment losses	$ 175

[1] Includes $28 for credit-related impairments and $175 from change in intent to sell securities

[2] Consisted completely of credit-related impairments

XML

SHAREHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Schedule of Capital Units

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)	2012		2011
Common stock - issued:
Balance, beginning of period	663,639		662,660
Exercise of stock options and issuance of restricted shares	798		670
Balance, end of period	664,437		663,330
Treasury stock:
Balance, beginning of period	197,329		192,999
Purchases of treasury stock:
Open market	0		3,100
Other	199		151
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(381	)	(325	)
Exercise of stock options	(39	)	(81	)
Other	(134	)	(78	)
Balance, end of period	196,974		195,766
Shares outstanding, end of period	467,463		467,564

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 three-month periods ended March 31.

(In thousands)	2012	2011
Anti-dilutive share-based awards	5,457	2,592

XML

Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012		Mar. 31, 2011
Cash flows from operating activities:
Net earnings	$ 785		$ 389
Adjustments to reconcile net earnings to net cash provided by operating activities:
Change in receivables and advance premiums	1,587		461
Increase in deferred policy acquisition costs	(141)		(99)
Increase in policy liabilities	1,292		951
Change in income tax liabilities	(20)		(152)
Realized investment (gains) losses	45		579
Other, net	8		38
Net cash provided (used) by operating activities	3,556		2,167
Securities available for sale:
Fixed maturities sold	226		891
Fixed maturities matured or called	705		556
Perpetual securities sold	552		61
Perpetual securities matured or called	378		0
Securities held to maturity:
Fixed maturities matured or called	536		127
Securities available for sale:
Fixed maturities acquired	(1,025)		(2,914)
Securities held to maturity:
Fixed maturities acquired	(5,133)		(769)
Cash received as collateral on loaned securities, net	(645)		54
Other, net	(30)		(19)
Net cash provided (used) by investing activities	(4,436)		(2,013)
Cash flows from financing activities:
Purchases of treasury stock	(10)		(184)
Proceeds from borrowings	749		0
Principal payments under debt obligations	(1)		(1)
Dividends paid to shareholders	(148)		(135)
Change in investment-type contracts, net	297		124
Treasury stock reissued	5		16
Other, net	9		9
Net cash provided (used) by financing activities	901		(171)
Effect of exchange rate changes on cash and cash equivalents	(60)		(16)
Net change in cash and cash equivalents	(39)		(33)
Cash and cash equivalents, beginning of period	2,249		2,121
Cash and cash equivalents, end of period	2,210		2,088
Supplemental disclosures of cash flow information:
Income taxes paid	356		234
Interest paid	43		12
Impairment losses included in realized investment losses	203	[1]	405	[2]
Noncash financing activities:
Capitalized lease obligations	1		1
Associate stock bonus
Treasury stock issued for:
Treasury stock issued	8		0
Shareholder dividend reinvestment
Treasury stock issued for:
Treasury stock issued	6		6
Share-based compensation grants
Treasury stock issued for:
Treasury stock issued	$ 4		$ 2

[1] Includes $28 for credit-related impairments and $175 from change in intent to sell securities

[2] Consisted completely of credit-related impairments

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Consolidated Statements of Comprehensive Income (Loss) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Statement of Income and Comprehensive Income [Abstract]
Net earnings	$ 785	$ 389
Other comprehensive income (loss) before income taxes:
Unrealized foreign currency translation gains (losses) during period	(100)	4
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) on investment securities during period	324	(609)
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings	129	527
Unrealized gains (losses) on derivatives during period	(12)	(55)
Pension liability adjustment during period	5	4
Total other comprehensive income (loss) before income taxes	346	(129)
Income tax expense (benefit) related to items of other comprehensive income (loss)	311	9
Other comprehensive income (loss), net of income taxes	35	(138)
Total comprehensive income (loss)	$ 820	$ 251

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COMMITMENTS AND CONTINGENT LIABILITIES

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

 COMMITMENTS AND CONTINGENT LIABILITIES

We are a defendant in various lawsuits considered to be in the normal course of business. Members of our 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, we believe the outcome of pending litigation will not have a material adverse effect on our financial position, results of operations, or cash flows.

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2012	Apr. 27, 2012
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Trading Symbol	AFL
Entity Registrant Name	AFLAC INC
Entity Central Index Key	0000004977
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		467,628,735

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Description of Business

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 and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 77% and 74% of the Company's total revenues in the three-month periods ended March 31, 2012, and 2011, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 87% at March 31, 2012, and December 31, 2011.

Basis of Presentation

Basis of Presentation

We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to GAAP issued by the FASB are derived from the FASB Accounting Standards Codification^TM (ASC). The preparation of financial statements in conformity with GAAP requires us to make estimates when recording transactions resulting from business operations based on currently available information. The most significant items on our balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments, deferred policy acquisition costs, 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, we believe the amounts provided are adequate.

The 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, 2012, and December 31, 2011, and the consolidated statements of earnings, comprehensive income (loss), shareholders' equity and cash flows for the three-month periods ended March 31, 2012, and 2011. 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 our annual report to shareholders for the year ended December 31, 2011.

Deferred Policy Acquisition Costs

Deferred Policy Acquisition Costs: Certain direct and incremental costs of acquiring new business are deferred and amortized with interest over the premium payment periods in proportion to the ratio of annual premium income to total anticipated premium income. Anticipated premium income is estimated by using the same mortality, persistency and interest assumptions used in computing liabilities for future policy benefits. In this manner, the related acquisition expenses are matched with revenues. Deferred costs include the excess of current-year commissions over ultimate renewal-year commissions and certain incremental direct policy issue, underwriting and sales expenses. All of these incremental costs are directly related to successful policy acquisition.

For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. For internal replacement transactions where the resulting contract is substantially unchanged, the policy is accounted for as a continuation of the replaced contract. Unamortized deferred acquisition costs from the original policy continue to be amortized over the expected life of the new policy, and the costs of replacing the policy are accounted for as policy maintenance costs and expensed as incurred. Internal replacement transactions that result in a policy that is not substantially unchanged are accounted for as an extinguishment of the original policy and the issuance of a new policy. Unamortized deferred acquisition costs on the original policy that was replaced are immediately expensed, and the costs of acquiring the new policy are capitalized and amortized in accordance with our accounting policies for deferred acquisition costs.

Income Taxes

Income Taxes:Income tax provisions are generally based on pretax earnings reported for financial statement purposes, which differ from those amounts used in preparing our income tax returns. Deferred income taxes are recognized for temporary differences between the financial reporting basis and income tax basis of assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the periods in which we expect the temporary differences to reverse. We record deferred tax assets for tax positions taken based on our assessment of whether the tax position is more likely than not to be sustained upon examination by taxing authorities. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized.

As discussed in the Translation of Foreign Currencies section in Note 1 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011, Aflac Japan maintains a dollar-denominated investment portfolio on behalf of Aflac U.S. While there are no translation effects to record in other comprehensive income, the deferred tax expense or benefit associated with foreign exchange gains or losses on the portfolio is recognized in other comprehensive income until the securities mature or are sold. Total income tax expense (benefit) related to items of other comprehensive income (loss) included tax expense of $157 million and $51 million during the three-month periods ended March 31, 2012 and 2011, respectively, for this dollar-denominated portfolio. Excluding these amounts from total taxes on other comprehensive income would result in an effective income tax rate on pretax other comprehensive income (loss) of 44.5% and 32.4% in the three-month periods ended March 31, 2012 and 2011, respectively.

Recently Adopted Accounting Pronouncements

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Presentation of comprehensive income: In June 2011, the FASB issued guidance to amend the presentation of comprehensive income.The amendment requires that all non-owner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. We adopted this guidance as of January 1, 2012 and elected the option to report comprehensive income in two separate but consecutive statements. The adoption of this guidance did not have an impact on our financial position or results of operations. The amendment also requires reclassification adjustments for items that are reclassified from other comprehensive income to net income to be presented in the statements where the components of net income and the components of other comprehensive income are presented; however, in December 2011, the FASB issued guidance to temporarily defer the effective date of this additional requirement.

Fair value measurements and disclosures: In May 2011, the FASB issued guidance to amend the fair value measurement and disclosure requirements. Most of the amendments are clarifications of the FASB's intent about the application of existing fair value measurement and disclosure requirements. Other amendments change a particular principle or requirement for measuring fair value or disclosing information about fair value measurements. The new fair value measurement disclosures include additional quantitative and qualitative disclosures for Level 3 measurements, including a qualitative sensitivity analysis of fair value to changes in unobservable inputs, and categorization by fair value hierarchy level for items for which the fair value is only disclosed. We adopted this guidance as of January 1, 2012. The adoption of this guidance impacted our financial statement disclosures, but it did not affect our financial position or results of operations.

Accounting for costs associated with acquiring or renewing insurance contracts: In October 2010, the FASB issued amended accounting guidance on accounting for costs associated with acquiring or renewing insurance contracts. Under the previous guidance, costs that varied with and were primarily related to the acquisition of a policy were deferrable. Under the amended guidance, only incremental direct costs associated with the successful acquisition of a new or renewal contract may be capitalized, and direct-response advertising costs may be capitalized only if they meet certain criteria. This guidance is effective on a prospective or retrospective basis for interim and annual periods beginning after December 15, 2011. We retrospectively adopted this guidance as of January 1, 2012. The retrospective adoption of this accounting standard resulted in an after-tax cumulative reduction to retained earnings of $408 million and an after-tax cumulative reduction to unrealized foreign currency translation gains in accumulated other comprehensive income of $108 million, resulting in a total reduction to shareholders' equity of $516 million as of December 31, 2010. The adoption of this accounting standard had an immaterial impact on net income in 2011 and for all preceding years.

Recent accounting guidance not discussed above is not applicable or did not have an impact to our business.

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Mar. 31, 2012		Dec. 31, 2011
Securities available for sale, at fair value:
Equity securities (cost $21 in 2012 and $22 in 2011)	$ 25		$ 25
Securities held to maturity, at amortized cost:
Fixed maturities	48,834		47,009
Other investments	161		168
Cash and cash equivalents	2,210		2,249
Total investments and cash	103,104		103,462
Receivables	744		680
Accrued investment income	746		802
Deferred policy acquisition costs	9,542		9,789
Property and equipment, at cost less accumulated depreciation	591		617
Other	825	[1]	887	[1]
Total assets	115,552		116,237
Policy liabilities:
Future policy benefits	76,332		79,278
Unpaid policy claims	3,885		3,981
Unearned premiums	1,854		1,704
Other policyholders' funds	10,933		9,630
Total policy liabilities	93,004		94,593
Notes payable	3,964		3,285
Income taxes	2,599		2,308
Payables for return of cash collateral on loaned securities	193		838
Other	2,149	[2]	2,267	[2]
Commitments and contingent liabilities (Note 10)
Total liabilities	101,909		103,291
Shareholders' equity:
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2012 and 2011; issued 664,437 shares in 2012 and 663,639 shares in 2011	66		66
Additional paid-in capital	1,433		1,408
Retained earnings	15,779		15,148
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains	718		984
Unrealized gains (losses) on investment securities:
Unrealized gains (losses) on securities not other-than-temporarily impaired	1,448		1,143
Unrealized gains (losses) on derivatives	1		9
Pension liability adjustment	(167)		(171)
Treasury stock, at average cost	(5,635)		(5,641)
Total shareholders' equity	13,643		12,946
Total liabilities and shareholders' equity	115,552		116,237
Investments other than Consolidated Variable Interest Entities
Securities available for sale, at fair value:
Fixed maturities	41,276		42,222
Perpetual securities	4,159		5,149
Securities held to maturity, at amortized cost:
Fixed maturities	48,226		46,366
Variable Interest Entity, Consolidated
Securities available for sale, at fair value:
Fixed maturities	5,246		5,350
Perpetual securities	1,193		1,290
Securities held to maturity, at amortized cost:
Fixed maturities	$ 608		$ 643

[1] Includes $271 in 2012 and $375 in 2011 of derivatives from consolidated variable interest entities

[2] Includes $419 in 2012 and $531 in 2011 of derivatives from consolidated variable interest entities

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The carrying values and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2012				December 31, 2011
(In millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed-maturity securities	$	89,502	$	89,219	$	88,588	$	88,039
Fixed-maturity securities - consolidated variable interest entities	5,854		5,747		5,993		5,916
Perpetual securities	4,159		4,159		5,149		5,149
Perpetual securities - consolidated variable interest entities	1,193		1,193		1,290		1,290
Equity securities	25		25		25		25
Interest rate, foreign currency, and credit default swaps	318		318		375		375
Liabilities:
Notes payable (excluding capitalized leases)	3,955		4,354		3,275		3,536
Interest rate, foreign currency, and credit default swaps	428		428		531		531
Obligation to Japanese policyholder protection corporation	47		47		71		71

We determine the fair values of our fixed maturity securities, perpetual securities, privately issued equity securities and our derivatives using four basic pricing approaches or techniques: quoted market prices readily available from public exchange markets, price quotes and valuations from third party pricing vendors, a discounted cash flow (DCF) pricing model, and non-binding price quotes we obtain from outside brokers.

Our DCF pricing model incorporates an option adjusted spread and utilizes various market inputs we obtain from both active and inactive markets. The estimated fair values developed by the DCF pricing model is most sensitive to prevailing credit spreads, the level of interest rates (yields) and interest rate volatility. Credit spreads are derived using a bond index to create a credit spread matrix which takes into account the current credit spread, ratings and remaining time to maturity, and subordination levels for securities that are included in the bond index. Our DCF pricing model is based on a widely used global bond index that is comprised of investments in active markets. The index provides a broad-based measure of the global fixed-income bond market. This index covers bonds issued by European and American issuers, which account for the majority of bonds that we hold. We validate the reliability of the DCF pricing model periodically by using the model to price investments for which there are quoted market prices from active and inactive markets or, in the alternative, are quoted by our custodian for the same or similar securities.

The pricing data and market quotes we obtain from outside sources are reviewed internally for reasonableness. If a fair value appears unreasonable, we will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, we may compare the inputs to relevant market indices and other performance measurements. Based on that analysis, the valuation is confirmed or revised.

The fair values of our publicly issued notes payable were obtained from a limited number of independent brokers, and the fair values of our yen-denominated loans approximate their carrying values. The fair value of the obligation to the Japanese policyholder protection corporation is our estimated share of the industry's obligation calculated on a pro rata basis by projecting our percentage of the industry's premiums and reserves and applying that percentage to the total industry obligation payable in future years.

The carrying amounts for cash and cash equivalents, receivables, accrued investment income, accounts payable, cash collateral and payables for security transactions approximated their fair values due to the short-term nature of these instruments. Consequently, such instruments are not included in the above table. The preceding table also excludes liabilities for future policy benefits and unpaid policy claims as these liabilities are not financial instruments as defined by GAAP.

Fair Value Hierarchy

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, 2012
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Government and agencies	$	9,965	$	764	$	0	$	10,729
Municipalities	0		1,163		0		1,163
Mortgage- and asset-backed securities	0		897		367		1,264
Public utilities	0		6,926		409		7,335
Sovereign and supranational	0		1,787		418		2,205
Banks/financial institutions	0		6,612		1,097		7,709
Other corporate	0		15,082		1,035		16,117
Total fixed maturities	9,965		33,231		3,326		46,522
Perpetual securities:
Banks/financial institutions	0		4,676		325		5,001
Other corporate	0		351		0		351
Total perpetual securities	0		5,027		325		5,352
Equity securities	15		6		4		25
Other assets:
Interest rate swaps	0		0		31		31
Foreign currency swaps	0		47		240		287
Total other assets	0		47		271		318
Cash and cash equivalents	2,210		0		0		2,210
Total assets	$	12,190	$	38,311	$	3,926	$	54,427
Liabilities:
Interest rate swaps	$	0	$	0	$	3	$	3
Foreign currency swaps	0		9		319		328
Credit default swaps	0		0		97		97
Total liabilities	$	0	$	9	$	419	$	428

	December 31, 2011
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Government and agencies	$	11,092	$	721	$	0	$	11,813
Municipalities	0		1,159		0		1,159
Mortgage- and asset-backed securities	0		944		394		1,338
Public utilities	0		6,803		422		7,225
Sovereign and supranational	0		1,874		434		2,308
Banks/financial institutions	0		6,379		1,074		7,453
Other corporate	0		15,171		1,105		16,276
Total fixed maturities	11,092		33,051		3,429		47,572
Perpetual securities:
Banks/financial institutions	0		5,552		526		6,078
Other corporate	0		361		0		361
Total perpetual securities	0		5,913		526		6,439
Equity securities	15		6		4		25
Other assets:
Interest rate swaps	0		0		34		34
Foreign currency swaps	0		0		341		341
Total other assets	0		0		375		375
Cash and cash equivalents	2,249		0		0		2,249
Total assets	$	13,356	$	38,970	$	4,334	$	56,660
Liabilities:
Interest rate swaps	$	0	$	0	$	4	$	4
Foreign currency swaps	0		0		397		397
Credit default swaps	0		0		130		130
Total liabilities	$	0	$	0	$	531	$	531

The following tables present the fair values categorized by hierarchy levels for the Company's assets and liabilities that are carried at cost or amortized cost and for which fair value is disclosed.

	March 31, 2012
(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 held to maturity, carried at amortized cost:
Fixed maturities:
Government and agencies	$	23,067	$	0	$	0	$	23,067
Municipalities	0		550		0		550
Mortgage- and asset-backed securities	0		35		86		121
Public utilities	0		5,207		0		5,207
Sovereign and supranational	0		3,953		0		3,953
Banks/financial institutions	0		10,878		0		10,878
Other corporate	0		4,668		0		4,668
Total assets	$	23,067	$	25,291	$	86	$	48,444
Liabilities:
Notes payable (excluding capital leases)	$	0	$	0	$	4,354	$	4,354
Obligation to Japanese policyholder protection corporation	0		0		47		47
Total liabilities	$	0	$	0	$	4,401	$	4,401

	December 31, 2011
(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 held to maturity, carried at amortized cost:
Fixed maturities:
Government and agencies	$	19,071	$	0	$	0	$	19,071
Municipalities	0		584		0		584
Mortgage- and asset-backed securities	0		39		95		134
Public utilities	0		5,637		0		5,637
Sovereign and supranational	0		4,165		0		4,165
Banks/financial institutions	0		11,480		0		11,480
Other corporate	0		5,312		0		5,312
Total assets	$	19,071	$	27,217	$	95	$	46,383
Liabilities:
Notes payable (excluding capital leases)	$	0	$	0	$	3,536	$	3,536
Obligation to Japanese policyholder protection corporation	0		0		71		71
Total liabilities	$	0	$	0	$	3,607	$	3,607

As of March 31, 2012, approximately 51% of the fair value, or 77% of the number of holdings, of our available-for-sale fixed income and perpetual investments classified as Level 2 and 3% of the fair value, or 7% of the number of holdings, of our held-to-maturity fixed income investments classified as Level 2 are valued by obtaining quoted market prices from our investment custodian. The custodian obtains price quotes from various third party pricing services that estimate fair values based on observable market transactions for similar investments in active markets, market transactions for the same investments in inactive markets, or other observable market data where available. The fair value of approximately 42% of our Level 2 available-for-sale fixed income and perpetual investments, or 10% of the number of Level 2 available-for-sale holdings, and 95% of our Level 2 held-to-maturity fixed income investments, or 85% of the number of Level 2 held-to-maturity holdings, are determined using our DCF pricing model. The significant valuation inputs to the DCF model are obtained from, or corroborated by, observable market sources from both active and inactive markets. For the remaining 7% of Level 2 available-for-sale investment valuations, or 13% of the number of Level 2 available-for-sale holdings, and the remaining 2% of Level 2 held-to-maturity investment valuations, or 8% of the number of Level 2 held-to-maturity holdings, that are not provided by our custodian and are not priced using the DCF pricing model, we obtain quotes from other pricing services that estimate fair values based on observable market transactions for similar investments in active markets, market transactions for the same investment in inactive markets, or other observable market data where available.

Due to our reliance on third-party pricing services to provide valuations on 51% of our Level 2 available-for-sale portfolio and 3% of our Level 2 held-to-maturity portfolio, we regularly discuss and review pricing methodologies with the investment custodian. We also review the custodians' Service Organization Control (SOC 1) report for the period covering the current year to gain satisfaction with the controls and control environment of the custodian.

For securities in Level 2 that are below investment grade or have split ratings where the valuation calculated by our DCF model does not conform to current market conditions, a CDS spread is used in lieu of the index spread discussed above. The CDS is chosen based on an average of spreads of issues with the same issuer, rating and subordination.

We use 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 fair value of the foreign currency swaps associated with our senior notes is based on the amount we would expect to receive or pay to terminate the swaps. The determination of the fair value of the swaps is based on observable market inputs, therefore they are classified as Level 2.

For derivatives associated with VIEs where we are the primary beneficiary, we are 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. Prior to the third quarter of 2011, these derivative instruments were reported in Level 2 of the fair value hierarchy, except CDSs and certain foreign currency swaps which were classified as Level 3. The interest rate and certain foreign currency derivative instruments previously classified as Level 2 were priced by broker quotations. In the third quarter of 2011, we changed from receiving valuations from brokers to receiving valuations from a third party pricing vendor for our derivatives. Based on an analysis of these derivatives and a review of the methodology employed by the pricing vendor, we 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 our consolidated VIEs have been classified as Level 3 of the fair value hierarchy as of September 30, 2011 and thereafter.

The fixed maturities classified as Level 3 consist of securities for which there are limited or no observable valuation inputs. We estimate the fair value of these securities by obtaining non-binding broker quotes from a limited number of brokers. These brokers base their quotes on a combination of their knowledge of the current pricing environment and market conditions. We consider these inputs to be unobservable. The significant valuation inputs that are used in the valuation process for the below-investment-grade and private placement investments classified as Level 3 include forward exchange rates, yen swap rates, dollar swap rates, interest rate volatilities, credit spread data on specific issuers, assumed default and default recovery rates, and certain probability assumptions. In obtaining these valuation inputs, we have determined that certain pricing assumptions and data used by our pricing sources are difficult to validate or corroborate by the market and/or appear to be internally developed rather than observed in or corroborated by the market. The use of these unobservable valuation inputs causes more subjectivity in the valuation process for these securities.

The equity securities classified in Level 3 are related to investments in Japanese businesses, each of which are insignificant and in the aggregate are immaterial. Because fair values for these investments are not readily available, we carry them at their original cost. We review each of these investments periodically and, in the event we determine that any are other-than-temporarily impaired, we write them down to their estimated fair value at that time.

The fair values of our publicly issued notes payable classified as Level 3 were obtained from a limited number of independent brokers. These brokers base their quotes on a combination of their knowledge of the current pricing environment and market conditions. We consider these inputs to be unobservable. The fair value of the obligation to the Japanese policyholder protection corporation classified as Level 3 is our estimated share of the industry's obligation calculated on a pro rata basis by projecting our percentage of the industry's premiums and reserves and applying that percentage to the total industry obligation payable in future years. We consider our inputs for this valuation to be unobservable.

Historically, we have not adjusted the quotes or prices we obtain from the brokers and pricing services we use.

Level 3 Rollforward and Transfers between Hierarchy Levels

The following tables present the changes in our available-for-sale investments and derivatives classified as Level 3.

Three Months Ended March 31, 2012
	Fixed Maturities														Perpetual Securities			Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities			Sovereign and Supranational			Banks/ Financial Institutions		Other Corporate			Banks/ Financial Institutions					Interest Rate Swaps			Foreign Currency Swaps			Credit Default Swaps			Total
Balance, beginning of period	$	394		$	422		$	434		$	1,074	$	1,105		$	526		$	4	$	30		$	(56	)	$	(130	)	$	3,803
Realized gains or losses included in earnings	0			0			0			0		2			49			0		(2		)	13			33			95
Unrealized gains or losses included in other comprehensive income	(23		)	(13		)	(16		)	23		(38		)	6			0		0			(12		)	0			(73		)
Purchases, issuances, sales and settlements:
Purchases	0			0			0			0		0			0			0		0			0			0			0
Issuances	0			0			0			0		0			0			0		0			0			0			0
Sales	0			0			0			0		(34		)	(256		)	0		0			0			0			(290		)
Settlements	(4		)	0			0			0		0			0			0		0			(24		)	0			(28		)
Transfers into Level 3	0			0			0			0		0			0			0		0			0			0			0
Transfers out of Level 3	0			0			0			0		0			0			0		0			0			0			0
Balance, end of period	$	367		$	409		$	418		$	1,097	$	1,035		$	325		$	4	$	28		$	(79	)	$	(97	)	$	3,507
Change in unrealized gains (losses) still held (1)	$	0		$	0		$	0		$	0	$	0		$	0		$	0	$	(2	)	$	13		$	33		$	44

⁽¹⁾Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains (losses) relating to assets classified as

Level 3 that were still held at March 31, 2012

Three Months Ended March 31, 2011
	Fixed Maturities													Perpetual Securities		Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities			Public Utilities		Collateralized Debt Obligations		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate		Banks/ Financial Institutions				Foreign Currency Swaps			Credit Default Swaps			Total
Balance, beginning of period	$	267		$	0	$	5	$	0	$	386	$	0	$	0	$	4	$	241		$	(343	)	$	560
Realized gains or losses included in earnings	(6		)	0		0		0		1		0		0		0		(64		)	5			(64		)
Unrealized gains or losses included in other comprehensive income	(10		)	0		0		0		33		0		0		0		(51		)	0			(28		)
Purchases, issuances, sales and settlements:
Purchases	0			0		0		0		0		0		0		0		0			0			0
Issuances	0			0		0		0		0		0		0		0		0			0			0
Sales	0			0		0		0		0		0		0		0		0			0			0
Settlements	(3		)	0		0		0		0		0		0		0		0			0			(3		)
Transfers into Level 3	0			0		0		0		0		0		0		0		0			0			0
Transfers out of Level 3	0			0		0		0		0		0		0		0		0			0			0
Balance, end of period	$	248		$	0	$	5	$	0	$	420	$	0	$	0	$	4	$	126		$	(338	)	$	465
Change in unrealized gains    (losses) still held(1)	$	(6	)	$	0	$	0	$	0	$	1	$	0	$	0	$	0	$	(64	)	$	5		$	(64	)

⁽¹⁾Represents the amount of total gains or losses for the period, included in earnings, attributable to the change in unrealized gains (losses) relating to assets classified as Level 3 that were still held at March 31, 2011

Transfers into and/or out of Level 3 are attributable to a change in the observability of inputs. Transfers into and/or out of any fair value hierarchy level are assumed to occur at the balance sheet date. There were no transfers between Level 1 and 2 for the three-month periods ended March 31, 2012 and 2011.

Fair Value Sensitivity

DCF Sensitivity

Our DCF pricing model utilizes various market inputs we obtain from both active and inactive markets. The estimated fair values developed by the DCF pricing models are most sensitive to prevailing credit spreads, the level of interest rates (yields), and, for our callable securities, interest rate volatility. Management believes that under normal market conditions, a movement of 50 basis points (bps) in interest rates and credit spreads and 50 percent in interest rate volatility would be sufficiently reasonable stresses to illustrate the sensitivity of valuations to these risk factors. Therefore, we selected these magnitudes of movement and provided both upward and downward movements in these key assumptions used to estimate fair value. Since the changes in fair value are relatively linear, readers of these financial statements can make their own judgments as to the movement in interest rates and the change in fair value based upon this data. The following scenarios provide a view of the sensitivity of our securities priced by our DCF pricing model.

The fair values of our available-for-sale fixed-maturity and perpetual securities valued by our DCF pricing model totaled $18.2 billion at March 31, 2012. The estimated effect of potential changes in interest rates, credit spreads and interest rate volatility on these fair values as of such date is as follows:

	Interest Rates						Credit Spreads						Interest Rate Volatility
Factor Change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)
	+50 bps		$	(978	)		+50 bps		$	(975	)		+50 %		$	(36	)
	-50 bps		999				-50 bps		1,011				-50 %		1

The fair values of our held-to-maturity fixed-maturity securities valued by our DCF pricing model totaled $23.9 billion at March 31, 2012. The estimated effect of potential changes in interest rates, credit spreads and interest rate volatility on these fair values as of such date is as follows:

	Interest Rates						Credit Spreads						Interest Rate Volatility
Factor Change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)				Factor change		Change in fair value   (in millions)
	+50 bps		$	(1,488	)		+50 bps		$	(1,379	)		+50 %		$	(132	)
	-50 bps		1,314				-50 bps		1,380				-50 %		167

Level 3 Significant Unobservable Input Sensitivity

The following tables summarize the significant unobservable inputs used in the valuation of our Level 3 available-for-sale investments and derivatives. 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, 2012
(In millions)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturities:
Mortgage- and asset-backed securities	$	367	Consensus pricing	Offered quotes	N/A	(e)
Public utilities	409		Discounted cash flow	Historical volatility	8.85%
Sovereign and supranational	418		Discounted cash flow	Historical volatility	8.85%
Banks/financial institutions	547		Discounted cash flow	Historical volatility	8.85%
	550		Consensus pricing	Offered quotes	N/A	(e)
Other corporate	594		Discounted cash flow	Historical volatility	8.85%
	441		Consensus pricing	Offered quotes	N/A	(e)
Perpetual securities:
Banks/financial institutions	325		Discounted cash flow	Historical volatility	8.85%
Equity securities	4		Net asset value	Offered quotes	$0-$993 ($4)
Other assets:
Interest rate swaps	31		Discounted cash flow	Base correlation	44% - 52%	(a)
				CDS spreads	3 - 1673 (136) bps
				Recovery rate	25% - 70% (40%)
Foreign currency swaps	81		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	6 - 157 (112) bps
				Foreign exchange rates	20.69%	(b)
	46		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	13 - 190 (97) bps
	113		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				Foreign exchange rates	20.69%	(b)
Total assets	$	3,926

(a) Weighted-average range of base correlations for our bespoke tranches for attachment and detachment points corresponding to market indices

(b) Based on 10 year volatility of JPY/USD exchange rate

(c) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps

(d) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps

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

March 31, 2012
(In millions)	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Liabilities:
Interest rate swaps	$	3	Discounted cash flow	Base correlation	44% - 52%	(a)
				CDS spreads	3 - 1673 (136) bps
				Recovery rate	25% - 70% (40%)
Foreign currency swaps	91		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	14 - 239 (128) bps
				Foreign exchange rates	20.69%	(b)
	21		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				CDS spreads	11 - 359 (214) bps
	207		Discounted cash flow	Interest rates (USD)	2.29% - 3.05%	(c)
				Interest rates (JPY)	1.04% - 2.00%	(d)
				Foreign exchange rates	20.69%	(b)
Credit default swaps	97		Discounted cash flow	Base correlations	44% - 52%	(a)
				CDS spreads	3 - 1673 (136) bps
				Recovery rate	25% - 70% (40%)
Total liabilities	$	419

The following is a discussion of the significant unobservable inputs or valuation technique used in determining the fair value of securities and derivatives classified as Level 3. Listed below each discussion are the asset and derivative categories impacted by the respective input or valuation technique.

Annualized historical foreign exchange volatility

We own a portfolio of callable reverse dual-currency bonds (RDCs). RDCs are securities that have principal denominated in yen while paying U.S. dollar (USD) coupons. The significant unobservable input used for valuation is the historical foreign exchange volatility. The market standard approach is to use implied volatility to value options or instruments with optionality, because historical volatility may not represent current market participants' expectations about future volatility. Given the importance of this input to the overall valuation, use of historical volatility could result in a significant increase or decrease in fair value measurement.

• Public utilities, Other corporate, Sovereign and supranational, Banks/financial institutions

Net Asset Value

We hold 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.

• Equity securities

Offered quotes

In circumstances where our valuation model price is overridden because it implies a value that is not consistent with current market conditions, we will solicit bids from a limited number of brokers. We also receive unadjusted prices from brokers for our mortgage and asset-backed securities. These quotes are non-binding and are best estimates of value at that particular point in time.

• Mortgage- and asset-backed securities

• Banks/financial institutions

• Other Corporate

Interest Rates, CDS Spreads, Foreign exchange rates

The significant drivers of the valuation of the interest and foreign exchange swaps are interest rates, foreign exchange rates and CDS spreads. Our swaps have long maturities with fixed pay and receive legs. This increases the sensitivity of the swap to interest rate fluctuations. Since most of our yen-denominated cross currency swaps are in a net liability position, an increase in interest rates will decrease the liabilities and increase the value of the swap.

Foreign exchange swaps also have a lump-sum final settlement of foreign exchange principal receivables at the termination of the swap. An increase in yen interest rates will decrease the value of the final settlement foreign exchange receivables and decrease the value of the swap, and an increase in USD interest rates increase the swap value.

A similar sensitivity pattern is observed for the foreign exchange rates. When the spot U.S. dollar/Japanese yen (USD/JPY) foreign exchange rate decreases and the swap is receiving a final exchange payment in JPY, the swap value will increase due to the appreciation of the JPY. Most of our swaps are designed to receive payments in JPY at the termination and will thus be impacted by USD/JPY foreign exchange rate in this way. In cases where there is no final exchange foreign exchange receivable in JPY and we are paying JPY as interest payments, a decrease in the foreign exchange rate will lead to a decrease in the swap value.

The extinguisher feature in most of our 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, we apply 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.

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.

• Foreign currency swaps

Base Correlations, CDS Spreads

Our CDOs are tranches on baskets of single-name credit default swaps. The risks in these types of synthetic CDOs come from the single-name CDS risk and the correlations between the single names. The valuation of synthetic CDOs is dependent on the calibration of market prices for interest rates, single name CDS default probabilities and base correlation using financial modeling tools. Since there is limited or no observable data available for these tranches, these base correlations must be obtained from commonly traded market tranches such as the CDX and iTraxx indices. From the historical prices of these indices, base correlations can be obtained to develop a pricing curve of CDOs with different seniorities. Since the reference entities of the market indices do not match those in our portfolio underlying the synthetic CDO to be valued, several processing steps are taken to map the names in our portfolio to the indices. With the base correlation determined and the appropriate spreads selected, a valuation is calculated. An increase in the CDS spreads in the underlying portfolio leads to a decrease in the value due to higher probability of defaults and losses. The impact on the valuation due to base correlation depends on a number of factors, including the riskiness between market tranches and the modeled tranche based on our portfolio and the equivalence between detachment points in these tranches. Generally speaking, an increase in base correlation will decrease the value of the senior tranches while increasing the value of junior tranches. This may result in a positive or negative value change.

Our interest rate swaps are linked to the underlying synthetic CDOs. The valuation of these swaps is performed using a similar approach to that of the synthetic CDOs themselves; that is, the base correlation model is used to ensure consistency between the synthetic CDOs and the swaps.

• Credit default swaps, Interest rate swaps

For additional information on our 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 our annual report to shareholders for the year ended December 31, 2011.

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DERIVATIVE INSTRUMENTS

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

We do not use derivative financial instruments for trading purposes, nor do we engage in leveraged derivative transactions. The majority of our freestanding derivatives are interest rate, foreign currency and credit default swaps that are associated with investments in special-purpose entities, including VIEs where we are the primary beneficiary. The remaining derivatives are the interest rate swap associated with our variable interest rate yen-denominated debt and cross-currency interest rate swaps associated with our senior notes due in February 2017 and February 2022.

Derivative Types

Interest rate and credit default swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. Interest rate swaps are primarily used to convert interest receipts on floating-rate fixed-maturity securities contracts to fixed rates. These derivatives are predominantly used to better match cash receipts from assets with cash disbursements required to fund liabilities.

Credit default swaps are used to assume credit risk related to an individual security or an index. These contracts entitle the consolidated VIE to receive a periodic fee in exchange for an obligation to compensate the derivative counterparty should the referenced security issuers experience a credit event, as defined in the contract. The consolidated VIE is also exposed to credit risk due to embedded derivatives associated with credit-linked notes.

Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. 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 our Aflac Japan portfolio to convert foreign-denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations. We also use foreign currency swaps to convert certain of our dollar-denominated principal and interest senior note obligations into yen-denominated obligations.

Credit Risk Assumed through Derivatives

For the interest rate, foreign currency, and credit default swaps associated with our VIE investments for which we are the primary beneficiary, we bear the risk of foreign exchange or interest rate loss due to counterparty default even though we are not a direct counterparty to those contracts. We are exposed to credit risk in the event of nonperformance by counterparties to the cross-currency swaps related to our senior notes due in February 2017 and 2022 and the interest rate swap on our variable interest rate yen-denominated Samurai notes. The risk of counterparty default for both the VIE and senior note swaps is mitigated by collateral posting requirements the counterparty must meet. The counterparties to these swap agreements are financial institutions with the following credit ratings.

	March 31, 2012							December 31, 2011
	Fair Value				Notional Amount			Fair Value				Notional Amount
(In millions)	of Swaps				of Swaps			of Swaps				of Swaps
Counterparty credit rating:
AA		$	14			$	272		$	0			$	0
A		(124		)		5,756			(156		)		5,491
Total		$	(110	)		$	6,028		$	(156	)		$	5,491

Certain of our consolidated VIEs have credit default swap contracts that require them to assume credit risk from an asset pool. Those consolidated VIEs will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment by delivery of associated collateral, which consists of highly rated asset-backed securities, if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced obligations. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The diversified portfolios of corporate issuers are established within sector concentration limits.

The following tables present the maximum potential risk, fair value, weighted-average years to maturity, and underlying referenced credit obligation type for credit default swaps within consolidated VIE structures.

March 31, 2012
		Less than one year				One to three years				Three to five years						Five to ten years						Total
(In millions)	Credit Rating	Maximum potential risk		Estimated fair value		Maximum potential risk		Estimated fair value		Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value
Index exposure:
Corporate bonds:
	A	$	0	$	0	$	0	$	0	$	(139	)	$	(4	)	$	0		$	0		$	(139	)	$	(4	)
	BB or lower	0		0		0		0		0			0			(228		)	(93		)	(228		)	(93		)
Total		$	0	$	0	$	0	$	0	$	(139	)	$	(4	)	$	(228	)	$	(93	)	$	(367	)	$	(97	)

December 31, 2011
		Less than one year				One to three years				Three to five years						Five to ten years						Total
(In millions)	Credit Rating	Maximum potential risk		Estimated fair value		Maximum potential risk		Estimated fair value		Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value
Index exposure:
Corporate bonds:
	A	$	0	$	0	$	0	$	0	$	(146	)	$	(17	)	$	0		$	0		$	(146	)	$	(17	)
	BB or lower	0		0		0		0		0			0			(235		)	(113		)	(235		)	(113		)
Total		$	0	$	0	$	0	$	0	$	(146	)	$	(17	)	$	(235	)	$	(113	)	$	(381	)	$	(130	)

Derivative Balance Sheet Classification

The tables below summarize the balance sheet classification of our 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. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated. Notional amounts are not reflective of credit risk.

	March 31, 2012
(In millions)	Net Derivatives					Asset Derivatives		Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount		Fair Value			Fair Value		Fair Value
Cash flow hedges:
Interest rate swaps	$	67	$	0		$	0	$	0
Foreign currency swaps	75		24			24		0
Total cash flow hedges	142		24			24		0
Non-qualifying strategies:
Interest rate swaps	367		28			31		(3		)
Foreign currency swaps	5,152		(65		)	263		(328		)
Credit default swaps	367		(97		)	0		(97		)
Total non-qualifying strategies	5,886		(134		)	294		(428		)
Total cash flow hedges and non-qualifying strategies	$	6,028	$	(110	)	$	318	$	(428	)
Balance Sheet Location
Other assets	$	2,436	$	318		$	318	$	0
Other liabilities	3,592		(428		)	0		(428		)
Total derivatives	$	6,028	$	(110	)	$	318	$	(428	)
	December 31, 2011
(In millions)	Net Derivatives					Asset Derivatives		Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount		Fair Value			Fair Value		Fair Value
Cash flow hedges:
Interest rate swaps	$	71	$	0		$	0	$	0
Foreign currency swaps	75		36			36		0
Total cash flow hedges	146		36			36		0
Non-qualifying strategies:
Interest rate swaps	381		30			34		(4		)
Foreign currency swaps	4,583		(92		)	305		(397		)
Credit default swaps	381		(130		)	0		(130		)
Total non-qualifying strategies	5,345		(192		)	339		(531		)
Total cash flow hedges and non-qualifying strategies	$	5,491	$	(156	)	$	375	$	(531	)
Balance Sheet Location
Other assets	$	1,794	$	375		$	375	$	0
Other liabilities	3,697		(531		)	0		(531		)
Total derivatives	$	5,491	$	(156	)	$	375	$	(531	)

Hedging

Derivative Hedges

Certain of our consolidated VIEs have interest rate and/or foreign currency swaps that qualify for hedge accounting treatment. For those that have qualified, we have designated the derivative 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). We expect to continue this hedging activity for a weighted-average period of approximately 14 years. The remaining derivatives in our consolidated VIEs that have not qualified for hedge accounting have been designated as held for other investment purposes (“non-qualifying strategies”).

We have an interest rate swap agreement related to our 5.5 billion yen variable interest rate Samurai notes that we issued in July 2011 (see Note 6). By entering into this contract, we swapped the variable interest rate to a fixed interest rate of 1.475%. We have designated this interest rate swap as a hedge of the variability in our interest cash flows associated with the variable interest rate Samurai notes. The notional amount and terms of the swap match the principal amount and terms of the variable interest rate Samurai notes, and the swap had no value at inception. Changes in the fair value of the swap contract are recorded in other comprehensive income so long as the hedge is deemed effective. Should any portion of the hedge be deemed ineffective, that value would be reported in net earnings.

Hedge Documentation and Effectiveness Testing

To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in cash flow of the hedged item. At hedge inception, we formally document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as cash flow hedges to specific assets or liabilities on the statement of financial position or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. At the hedge's inception and on an ongoing quarterly basis, we also formally assess whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in cash flows of hedged items. Hedge effectiveness is assessed using qualitative and quantitative methods. Qualitative methods may include the comparison of critical terms of the derivative to the hedged item. Quantitative methods include regression or other statistical analysis of changes in cash flows associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships is measured each reporting period using the “Hypothetical Derivative Method.”

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current earnings as a component of realized investment gains (losses). All components of each derivative's gain or loss were included in the assessment of hedge effectiveness.

Discontinuance of Hedge Accounting

We discontinue hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item; (2) the derivative is de-designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised.

When hedge accounting is discontinued on a cash-flow hedge, including those where the derivative is sold, terminated or exercised, amounts previously deferred in other comprehensive income are reclassified into earnings when earnings are impacted by the cash flow of the hedged item.

Cash Flow Hedges

The following table presents the components of the gain or loss on derivatives that qualified as cash flow hedges.

Derivatives in Cash Flow Hedging Relationships

(In millions)	Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)				Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion)
Three Months Ended March 31, 2012:
Interest rate swaps		$	0			$	0
Foreign currency swaps		(12		)		0
Total		$	(12	)		$	0
Three Months Ended March 31, 2011:
Interest rate swaps		$	1			$	0
Foreign currency swaps		(56		)		(4		)
Total		$	(55	)		$	(4	)

In the third quarter of 2011, we de-designated certain of the foreign currency swaps with notional values totaling $500 million used in cash flow hedging strategies as a result of determining that these swaps would no longer be highly effective in offsetting the cash flows of the hedged item. As a result, the net gain recorded in accumulated other comprehensive income for these swaps that are no longer eligible for hedge accounting is being amortized into earnings over the expected life of the respective hedged item. The amount amortized from accumulated other comprehensive income into earnings related to these swaps was immaterial in 2011. There was no gain or loss reclassified from accumulated other comprehensive income into earnings related to our designated cash flow hedges for the three-month periods ended March 31, 2012 and 2011. As of March 31, 2012, deferred net gains on derivative instruments recorded in accumulated other comprehensive income that are expected to be reclassified to earnings during the next twelve months are immaterial.

Non-qualifying Strategies

For our 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 as realized investment gains (losses).

We have cross-currency swap agreements related to our $400 million senior notes due February 2017 and our $350 million senior notes due February 2022 (see Note 6). The notional amounts and terms of the swaps match the principal amount and terms of the senior notes. We entered into these cross-currency swaps to reduce interest expense by converting the dollar-denominated principal and interest on the senior notes we issued into yen-denominated obligations. By entering into these cross-currency swaps, we economically converted our $400 million liability into a 30.9 billion yen liability and reduced the interest rate on this debt from 2.65% in dollars to 1.22% in yen, and we economically converted our $350 million liability into a 27.0 billion yen liability and reduced the interest rate on this debt from 4.00% in dollars to 2.07% in yen.

The following table presents the gain or loss recognized in income on non-qualifying strategies.

Non-qualifying Strategies

Gain (Loss) Recognized within Realized Investment Gains (Losses)

	Three Months Ended March 31,
(In millions)	2012				2011
Interest rate swaps		$	(3	)		$	(5	)
Foreign currency swaps		50				(29		)
Credit default swaps		33				5
Other		0				3
Total		$	80			$	(26	)

The amount of gain or loss recognized in earnings for our 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 income or perpetual securities associated with these swaps is recorded through other comprehensive income.

Net Investment Hedge

Our primary exposure to be hedged is our net investment in Aflac Japan, which is affected by changes in the yen/dollar exchange rate. To mitigate this exposure, we have taken the following courses of action. First, Aflac Japan maintains an investment portfolio of dollar-denominated securities on behalf of Aflac U.S., which serves as an economic currency hedge of a portion of our investment in Aflac Japan. The functional currency for these investments is the U.S. dollar. The related investment income and realized/unrealized investment gains and losses are also denominated in U.S. dollars. The foreign exchange gains and losses related to this portfolio are taxable in Japan and the U.S. when the securities mature or are sold. Until maturity or sale, deferred tax expense or benefit associated with the foreign exchange gains or losses are recognized in other comprehensive income.

Second, we have designated a majority of the Parent Company's yen-denominated liabilities (Samurai and Uridashi notes and yen-denominated loans - see Note 6) as nonderivative hedges of the foreign currency exposure of our investment in Aflac Japan. Our net investment hedge was effective during the three-month periods ended March 31, 2012, and 2011.

Non-Derivative Hedging Instruments in

Net Investment Hedging Relationships

	Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion)
	Three Months Ended March 31,
(In millions)	2012			2011
Non-derivative hedging instruments		$	49		$	22

There was no gain or loss reclassified from accumulated other comprehensive income into earnings related to our net investment hedge during the three-month periods ended March 31, 2012 and 2011.

For additional information on our 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 our annual report to shareholders for the year ended December 31, 2011.

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NOTES PAYABLE (Tables)

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Schedule of Long-term Debt Instruments

A summary of notes payable follows:

(In millions)	March 31, 2012			December 31, 2011
8.50% senior notes due May 2019	$	850		$	850
6.45% senior notes due August 2040	448		(1)	448		(1)
6.90% senior notes due December 2039	396		(2)	396		(2)
3.45% senior notes due August 2015	300			300
2.65% senior notes due February 2017	400			0
4.00% senior notes due February 2022	349		(3)	0
Yen-denominated Uridashi notes:
2.26% notes due September 2016 (principal amount 8 billion yen)	97			103
Yen-denominated Samurai notes:
1.47% notes due July 2014 (principal amount 28.7 billion yen)	349			369
1.87% notes due June 2012 (principal amount 26.6 billion yen)	324			342
1.84% notes due July 2016 (principal amount 15.8 billion yen)	192			203
Variable interest rate notes due July 2014 (1.35% in 2012 and 1.34% in 2011, principal amount 5.5 billion yen)	67			71
Yen-denominated loans:
3.60% loan due July 2015 (principal amount 10 billion yen)	122			129
3.00% loan due August 2015 (principal amount 5 billion yen)	61			64
Capitalized lease obligations payable through 2022	9			10
Total notes payable	$	3,964		$	3,285

⁽¹⁾ $450 issuance net of a $2 underwriting discount that is being amortized over the life of the notes

⁽²⁾$400 issuance net of a $4 underwriting discount that is being amortized over the life of the notes

⁽³⁾ $350 issuance net of a $1 underwriting discount that is being amortized over the life of the notes

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BUSINESS SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Reconciliation of Revenue and Pretax Earnings from Segments to Consolidated

We then exclude income taxes related to operations to arrive at pretax operating earnings. Information regarding operations by segment follows:

	Three Months Ended March 31,
(In millions)	2012			2011
Revenues:
Aflac Japan:
Earned premiums	$	4,148		$	3,702
Net investment income	730			649
Other income	16			20
Total Aflac Japan	4,894			4,371
Aflac U.S.:
Earned premiums	1,231			1,169
Net investment income	152			144
Other income	2			3
Total Aflac U.S.	1,385			1,316
Other business segments	14			15
Total business segment revenues	6,293			5,702
Realized investment gains (losses)	(45		)	(579		)
Corporate	68			61
Intercompany eliminations	(76		)	(67		)
Total revenues	$	6,240		$	5,117

	Three Months Ended March 31,
(In millions)	2012			2011
Pretax earnings:
Aflac Japan	$	1,040		$	974
Aflac U.S.	271			251
Other business segments	0			0
Total business segment pretax operating earnings	1,311			1,225
Interest expense, noninsurance operations	(44		)	(41		)
Corporate and eliminations	(20		)	(14		)
Pretax operating earnings	1,247			1,170
Realized investment gains (losses)	(45		)	(579		)
Total earnings before income taxes	$	1,202		$	591
Income taxes applicable to pretax operating earnings	$	433		$	405
Effect of foreign currency translation on operating earnings	20			49

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

Reconciliation of Assets from Segment to Consolidated

Assets were as follows:

	March 31,			December 31,
(In millions)	2012			2011
Assets:
Aflac Japan	$	100,133		$	101,692
Aflac U.S.	14,207			13,942
Other business segments	159			160
Total business segment assets	114,499			115,794
Corporate	18,322			16,182
Intercompany eliminations	(17,269		)	(15,739		)
Total assets	$	115,552		$	116,237

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2012 related to deferred policy acquisition costs.

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SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

As of March 31, 2012, the Company has outstanding share-based awards under two long-term incentive compensation plans.

The first plan, which expired in February 2007, is a stock option plan which allowed grants for incentive stock options (ISOs) to employees and non-qualifying stock options (NQSOs) to employees and non-employee directors. The options have a term of 10 years and generally vest after three years. The exercise price of options granted under this plan is equal to the fair market value of a share of the Company's common stock at the date of grant. Options granted before the plan's expiration date remain outstanding in accordance with their terms.

The second long-term incentive plan allows awards to Company employees for ISOs, 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. Generally, the awards vest based upon time-based conditions or time- and performance-based conditions. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. Effective March 14, 2012, the board of directors approved an amendment and restatement of the long-term incentive plan subject to approval by shareholders at the Company's annual shareholders' meeting on May 7, 2012. If approved, the amendments to the plan would, among other things, extend its expiration date from 2014 to 2017, make clear that option strike prices can be set at the closing price on the date of grant (rather than only at the average high-low sales price), update the performance factors available for use under awards that are intended to qualify for favorable tax deduction treatment, and adjust the size of awards that may be granted to incumbent directors. There were no additional shares of common stock authorized for issuance under the amended and restated plan. As of March 31, 2012, approximately 14 million shares were available for future grants under the existing plan, and the only performance-based awards issued and outstanding were restricted stock awards.

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, 2012.

	Stock Option Shares (in thousands)	Weighted-Average Remaining Term (in years)	Aggregate Intrinsic Value (in millions)	Weighted-Average Exercise Price Per Share
Outstanding	14,452	5.0	$77	$43.49
Exercisable	12,102	4.3	74	42.48

We received cash from the exercise of stock options in the amount of $6 million during the first quarter of 2012, compared with $10 million in the first quarter of 2011. The tax benefit realized as a result of stock option exercises and restricted stock releases was $13 million in the first quarter of 2012, compared with $11 million in the first quarter of 2011.

As of March 31, 2012, total compensation cost not yet recognized in our financial statements related to restricted stock awards was $48 million, of which $24 million (734 thousand shares) was related to restricted stock awards with a performance-based vesting condition. We expect to recognize these amounts over a weighted-average period of approximately 2.1 years. There are no other contractual terms covering restricted stock awards once vested.

For additional information on our long-term share-based compensation plans and the types of share-based awards, see Note 11 of the Notes to the Consolidated Financial Statements included in our annual report to shareholders for the year ended December 31, 2011.

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SHAREHOLDERS' EQUITY - Reconciliation of Number of Shares of Common Stock (Detail)	3 Months Ended			3 Months Ended
	Mar. 31, 2011	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2012 Common Stock	Mar. 31, 2011 Common Stock	Mar. 31, 2012 Treasury Stock	Mar. 31, 2011 Treasury Stock
Common Stock Issued [Roll Forward]
Balance, beginning of period		664,437,000	663,639,000	663,639,000	662,660,000
Exercise of stock options and issuance of restricted shares				798,000	670,000
Balance, end of period		664,437,000	663,639,000	664,437,000	663,330,000
Treasury Stock [Roll Forward]
Balance, beginning of period						197,329,000	192,999,000
Open market	3,100,000					0	3,100,000
Other						199,000	151,000
Shares issued to AFL Stock Plan						(381,000)	(325,000)
Exercise of stock options						(39,000)	(81,000)
Other						(134,000)	(78,000)
Balance, end of period						196,974,000	195,766,000
Shares outstanding, end of period	467,564,000	467,463,000

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NOTES PAYABLE

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

NOTES PAYABLE

NOTES PAYABLE

A summary of notes payable follows:

(In millions)	March 31, 2012			December 31, 2011
8.50% senior notes due May 2019	$	850		$	850
6.45% senior notes due August 2040	448		(1)	448		(1)
6.90% senior notes due December 2039	396		(2)	396		(2)
3.45% senior notes due August 2015	300			300
2.65% senior notes due February 2017	400			0
4.00% senior notes due February 2022	349		(3)	0
Yen-denominated Uridashi notes:
2.26% notes due September 2016 (principal amount 8 billion yen)	97			103
Yen-denominated Samurai notes:
1.47% notes due July 2014 (principal amount 28.7 billion yen)	349			369
1.87% notes due June 2012 (principal amount 26.6 billion yen)	324			342
1.84% notes due July 2016 (principal amount 15.8 billion yen)	192			203
Variable interest rate notes due July 2014 (1.35% in 2012 and 1.34% in 2011, principal amount 5.5 billion yen)	67			71
Yen-denominated loans:
3.60% loan due July 2015 (principal amount 10 billion yen)	122			129
3.00% loan due August 2015 (principal amount 5 billion yen)	61			64
Capitalized lease obligations payable through 2022	9			10
Total notes payable	$	3,964		$	3,285

⁽¹⁾ $450 issuance net of a $2 underwriting discount that is being amortized over the life of the notes

⁽²⁾$400 issuance net of a $4 underwriting discount that is being amortized over the life of the notes

⁽³⁾ $350 issuance net of a $1 underwriting discount that is being amortized over the life of the notes

In February 2012, the Parent Company issued two series of senior notes totaling $750 million through a U.S. public debt offering. The first series, which totaled $400 million, bears interest at a fixed rate of 2.65% per annum, payable semi-annually, and has a five-year maturity. The second series, which totaled $350 million, bears interest at a fixed rate of 4.00% per annum, payable semi-annually, and has a ten-year maturity. We have entered into cross-currency swaps to reduce interest expense by converting the dollar-denominated principal and interest on the senior notes we issued into yen-denominated obligations. By entering into these cross-currency swaps, we economically converted our $400 million liability into a 30.9 billion yen liability and reduced the interest rate on this debt from 2.65% in dollars to 1.22% in yen, and we economically converted our $350 million liability into a 27.0 billion yen liability and reduced the interest rate on this debt from 4.00% in dollars to 2.07% in yen.

We have no restrictive financial covenants related to our notes payable. We were in compliance with all of the covenants of our notes payable at March 31, 2012. No events of default or defaults occurred during the three-month period ended March 31, 2012.

For additional information, see Notes 4 and 8 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011.

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SHAREHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [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)	2012		2011
Common stock - issued:
Balance, beginning of period	663,639		662,660
Exercise of stock options and issuance of restricted shares	798		670
Balance, end of period	664,437		663,330
Treasury stock:
Balance, beginning of period	197,329		192,999
Purchases of treasury stock:
Open market	0		3,100
Other	199		151
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(381	)	(325	)
Exercise of stock options	(39	)	(81	)
Other	(134	)	(78	)
Balance, end of period	196,974		195,766
Shares outstanding, end of period	467,463		467,564

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 three-month periods ended March 31.

(In thousands)	2012	2011
Anti-dilutive share-based awards	5,457	2,592

Share Repurchase Program:During the first quarter of 2012, we did not repurchase any shares of our common stock in the open market. We repurchased 3.1 million shares of our common stock in the first quarter of 2011.

As of March 31, 2012, a remaining balance of 24.4 million shares of our common stock was available for purchase under a share repurchase authorization by our board of directors in 2008.

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BENEFIT PLANS

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

BENEFIT PLANS

BENEFIT PLANS

We have funded defined benefit plans in Japan and the United States which cover substantially all of our full-time employees. Additionally, we maintain 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.

We provide 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. Substantially all of our U.S. employees may become eligible to receive other postretirement benefits if they retire at age 55 or older with at least 15 years of service or if they retire when their age plus service, in years, equals or exceeds 80. At retirement, an employee is given an opportunity to elect continuation of coverage under our medical plan until age 65.

For certain employees and former employees, additional coverage is provided for all medical expenses for life. Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statement of earnings, included the following components:

	Three Months Ended March 31,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2012			2011			2012			2011			2012		2011
Components of net periodic benefit cost:
Service cost	$	4		$	4		$	6		$	4		$	1	$	1
Interest cost	3			2			7			7			1		1
Expected return on plan assets	(1		)	(1		)	(4		)	(4		)	0		0
Amortization of net actuarial loss	1			1			2			1			0		0
Net periodic (benefit) cost	$	7		$	6		$	11		$	8		$	2	$	2

During the three months ended March 31, 2012, Aflac Japan contributed approximately $6 million (using the weighted-average yen/dollar exchange rate for the three-month period ending March 31, 2012) 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 our Japanese and U.S. benefit plans, see Note 13 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2011.

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SHARE-BASED COMPENSATION - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 plan Y	Mar. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of long-term incentive compensation plans	2
Shares available for future grants under the long-term incentive plan	14,000,000
Proceeds from Stock Options Exercised	$ 6	$ 10
Tax Benefit from Stock Options Exercised	13	11
Total compensation cost not yet recognized, restricted stock awards	48
Total compensation cost not yet recognized, restricted stock awards, weighted-average period (in years)	2.1
Stock Option Plan Effective until February 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Option plan, terms	10
Stock option plan, vesting period	3 years
Performance based Vesting Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized, restricted stock awards	$ 24
Total compensation cost not yet recognized, restricted stock awards, shares	734,000

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BENEFIT PLANS - Net Periodic (Benefit) Cost Included in Acquisition and Operating Expenses (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Japanese Pension Plan
Schedule of Net Periodic Benefit Cost and Assumptions for Defined Benefit Postretirement Plans [Line Items]
Service cost	$ 4	$ 4
Interest cost	3	2
Expected return on plan assets	(1)	(1)
Amortization of net actuarial loss	1	1
Net periodic (benefit) cost	7	6
U.S. Pension Plan
Schedule of Net Periodic Benefit Cost and Assumptions for Defined Benefit Postretirement Plans [Line Items]
Service cost	6	4
Interest cost	7	7
Expected return on plan assets	(4)	(4)
Amortization of net actuarial loss	2	1
Net periodic (benefit) cost	11	8
Other Postretirement Benefit Plans, Defined Benefit
Schedule of Net Periodic Benefit Cost and Assumptions for Defined Benefit Postretirement Plans [Line Items]
Service cost	1	1
Interest cost	1	1
Expected return on plan assets	0	0
Amortization of net actuarial loss	0	0
Net periodic (benefit) cost	$ 2	$ 2

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SHARE-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Detail) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 Y
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options Outstanding - Stock Option Shares	14,452
Options Outstanding - Weighted-Average Remaining Term (Yrs.)	5.0
Options Outstanding - Aggregate Intrinsic Value	$ 77
Options Outstanding - Weighted-Average Exercise Price Per Share	$ 43.49
Options Exercisable - Stock Option Shares	12,102
Options Exercisable - Weighted-Average Remaining Terms (Yrs.)	4.3
Options Exercisable - Aggregate Intrinsic Value	$ 74
Options Exercisable - Weighted-Average Exercise Price Per Share	$ 42.48

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INVESTMENTS - Total Investments in Bank and Financial Institution Sector, Including those Classified as Perpetual Securities (Detail) (Banks/financial Institutions, USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Summary of Investment Holdings [Line Items]
Amortized Cost	$ 24,328	$ 26,578
Fair Value	23,588	25,011
Percentage of Total Investment Portfolio, Amortized Cost	24.00%	27.00%
Percentage of Total Investment Portfolio, Fair Value	24.00%	25.00%
Debt Securities
Summary of Investment Holdings [Line Items]
Amortized Cost	19,132	20,025
Fair Value	18,587	18,933
Percentage of Total Investment Portfolio, Amortized Cost	19.00%	20.00%
Percentage of Total Investment Portfolio, Fair Value	19.00%	19.00%
Perpetual Securities | Upper Tier II
Summary of Investment Holdings [Line Items]
Amortized Cost	3,251	4,285
Fair Value	3,193	4,244
Percentage of Total Investment Portfolio, Amortized Cost	3.00%	5.00%
Percentage of Total Investment Portfolio, Fair Value	3.00%	4.00%
Perpetual Securities | Tier I
Summary of Investment Holdings [Line Items]
Amortized Cost	1,945	2,268
Fair Value	$ 1,808	$ 1,834
Percentage of Total Investment Portfolio, Amortized Cost	2.00%	2.00%
Percentage of Total Investment Portfolio, Fair Value	2.00%	2.00%

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FAIR VALUE MEASUREMENTS - Carrying Values and Estimated Fair Values of Financial Instruments (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Assets:
Equity securities	$ 25	$ 25
Liabilities:
Obligation to Japanese policyholder protection corporation	47	71
Investments other than Consolidated Variable Interest Entities
Assets:
Perpetual securities	4,159	5,149
Variable Interest Entity, Consolidated
Assets:
Perpetual securities	1,193	1,290
Interest rate, foreign currency, and credit default swaps	271	375
Carrying Value
Assets:
Equity securities	25	25
Interest rate, foreign currency, and credit default swaps	318	375
Liabilities:
Notes payable (excluding capitalized leases)	3,955	3,275
Interest rate, foreign currency, and credit default swaps	428	531
Obligation to Japanese policyholder protection corporation	47	71
Carrying Value | Investments other than Consolidated Variable Interest Entities
Assets:
Fixed-maturity securities	89,502	88,588
Perpetual securities	4,159	5,149
Carrying Value | Variable Interest Entity, Consolidated
Assets:
Fixed-maturity securities	5,854	5,993
Perpetual securities	1,193	1,290
Fair Value
Assets:
Equity securities	25	25
Interest rate, foreign currency, and credit default swaps	318	375
Liabilities:
Notes payable (excluding capitalized leases)	4,354	3,536
Interest rate, foreign currency, and credit default swaps	428	531
Obligation to Japanese policyholder protection corporation	47	71
Fair Value | Investments other than Consolidated Variable Interest Entities
Assets:
Fixed-maturity securities	89,219	88,039
Perpetual securities	4,159	5,149
Fair Value | Variable Interest Entity, Consolidated
Assets:
Fixed-maturity securities	5,747	5,916
Perpetual securities	$ 1,193	$ 1,290

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DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk

The counterparties to these swap agreements are financial institutions with the following credit ratings.

	March 31, 2012							December 31, 2011
	Fair Value				Notional Amount			Fair Value				Notional Amount
(In millions)	of Swaps				of Swaps			of Swaps				of Swaps
Counterparty credit rating:
AA		$	14			$	272		$	0			$	0
A		(124		)		5,756			(156		)		5,491
Total		$	(110	)		$	6,028		$	(156	)		$	5,491

Maximum Potential Risk, Fair Value, Weighted Average Years to Maturity, and Underlying Referenced Credit Obligation Type for Credit Derivatives

The following tables present the maximum potential risk, fair value, weighted-average years to maturity, and underlying referenced credit obligation type for credit default swaps within consolidated VIE structures.

March 31, 2012
		Less than one year				One to three years				Three to five years						Five to ten years						Total
(In millions)	Credit Rating	Maximum potential risk		Estimated fair value		Maximum potential risk		Estimated fair value		Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value
Index exposure:
Corporate bonds:
	A	$	0	$	0	$	0	$	0	$	(139	)	$	(4	)	$	0		$	0		$	(139	)	$	(4	)
	BB or lower	0		0		0		0		0			0			(228		)	(93		)	(228		)	(93		)
Total		$	0	$	0	$	0	$	0	$	(139	)	$	(4	)	$	(228	)	$	(93	)	$	(367	)	$	(97	)

December 31, 2011
		Less than one year				One to three years				Three to five years						Five to ten years						Total
(In millions)	Credit Rating	Maximum potential risk		Estimated fair value		Maximum potential risk		Estimated fair value		Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value			Maximum potential risk			Estimated fair value
Index exposure:
Corporate bonds:
	A	$	0	$	0	$	0	$	0	$	(146	)	$	(17	)	$	0		$	0		$	(146	)	$	(17	)
	BB or lower	0		0		0		0		0			0			(235		)	(113		)	(235		)	(113		)
Total		$	0	$	0	$	0	$	0	$	(146	)	$	(17	)	$	(235	)	$	(113	)	$	(381	)	$	(130	)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The tables below summarize the balance sheet classification of our 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. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated. Notional amounts are not reflective of credit risk.

	March 31, 2012
(In millions)	Net Derivatives					Asset Derivatives		Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount		Fair Value			Fair Value		Fair Value
Cash flow hedges:
Interest rate swaps	$	67	$	0		$	0	$	0
Foreign currency swaps	75		24			24		0
Total cash flow hedges	142		24			24		0
Non-qualifying strategies:
Interest rate swaps	367		28			31		(3		)
Foreign currency swaps	5,152		(65		)	263		(328		)
Credit default swaps	367		(97		)	0		(97		)
Total non-qualifying strategies	5,886		(134		)	294		(428		)
Total cash flow hedges and non-qualifying strategies	$	6,028	$	(110	)	$	318	$	(428	)
Balance Sheet Location
Other assets	$	2,436	$	318		$	318	$	0
Other liabilities	3,592		(428		)	0		(428		)
Total derivatives	$	6,028	$	(110	)	$	318	$	(428	)
	December 31, 2011
(In millions)	Net Derivatives					Asset Derivatives		Liability Derivatives
Hedge Designation/ Derivative Type	Notional Amount		Fair Value			Fair Value		Fair Value
Cash flow hedges:
Interest rate swaps	$	71	$	0		$	0	$	0
Foreign currency swaps	75		36			36		0
Total cash flow hedges	146		36			36		0
Non-qualifying strategies:
Interest rate swaps	381		30			34		(4		)
Foreign currency swaps	4,583		(92		)	305		(397		)
Credit default swaps	381		(130		)	0		(130		)
Total non-qualifying strategies	5,345		(192		)	339		(531		)
Total cash flow hedges and non-qualifying strategies	$	5,491	$	(156	)	$	375	$	(531	)
Balance Sheet Location
Other assets	$	1,794	$	375		$	375	$	0
Other liabilities	3,697		(531		)	0		(531		)
Total derivatives	$	5,491	$	(156	)	$	375	$	(531	)

Cash Flow Hedges Gains (Losses) Recognized in Other Comprehensive Income and Income

The following table presents the components of the gain or loss on derivatives that qualified as cash flow hedges.

Derivatives in Cash Flow Hedging Relationships

(In millions)	Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)				Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion)
Three Months Ended March 31, 2012:
Interest rate swaps		$	0			$	0
Foreign currency swaps		(12		)		0
Total		$	(12	)		$	0
Three Months Ended March 31, 2011:
Interest rate swaps		$	1			$	0
Foreign currency swaps		(56		)		(4		)
Total		$	(55	)		$	(4	)

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the gain or loss recognized in income on non-qualifying strategies.

Non-qualifying Strategies

Gain (Loss) Recognized within Realized Investment Gains (Losses)

	Three Months Ended March 31,
(In millions)	2012				2011
Interest rate swaps		$	(3	)		$	(5	)
Foreign currency swaps		50				(29		)
Credit default swaps		33				5
Other		0				3
Total		$	80			$	(26	)

Schedule of Net Investment Hedges Statements of Financial Performance and Financial Position Location

Non-Derivative Hedging Instruments in

Net Investment Hedging Relationships

	Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion)
	Three Months Ended March 31,
(In millions)	2012			2011
Non-derivative hedging instruments		$	49		$	22

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BENEFIT PLANS (Tables)

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Schedule of Net Benefit Costs

Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statement of earnings, included the following components:

	Three Months Ended March 31,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2012			2011			2012			2011			2012		2011
Components of net periodic benefit cost:
Service cost	$	4		$	4		$	6		$	4		$	1	$	1
Interest cost	3			2			7			7			1		1
Expected return on plan assets	(1		)	(1		)	(4		)	(4		)	0		0
Amortization of net actuarial loss	1			1			2			1			0		0
Net periodic (benefit) cost	$	7		$	6		$	11		$	8		$	2	$	2

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DERIVATIVE INSTRUMENTS - Non-Derivative Hedging Instruments in Net Investment Hedging Relationships (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized foreign currency translation gains (losses) during period	$ (100)	$ 4
Non-derivative hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized foreign currency translation gains (losses) during period	$ 49	$ 22

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INVESTMENTS - Investments in Variable Interest Entities (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Variable Interest Entity, Consolidated
Schedule of Equity Method Investments [Line Items]
Amortized Cost	$ 6,545	$ 6,997
Fair Value	6,940	7,206
Variable Interest Entity, Not Consolidated
Schedule of Equity Method Investments [Line Items]
Amortized Cost	12,795	13,753
Fair Value	12,832	13,714
Variable Interest Entities
Schedule of Equity Method Investments [Line Items]
Amortized Cost	19,340	20,750
Fair Value	$ 19,772	$ 20,920

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Securities available for sale, Equity securities, cost	$ 21	$ 22
Securities held to maturity, fixed maturities, fair value	48,444	46,383
Common stock, par value	$ 0.1	$ 0.1
Common stock, shares authorized	1,900,000,000	1,900,000,000
Common stock, shares issued	664,437,000	663,639,000
Investments other than Consolidated Variable Interest Entities
Securities available for sale, Fixed maturities, amortized cost	39,423	40,534
Securities available for sale, Perpetual securities, amortized cost	4,299	5,365
Securities held to maturity, fixed maturities, fair value	47,943	45,817
Variable Interest Entity, Consolidated
Securities available for sale, Fixed maturities, amortized cost	4,714	4,822
Securities available for sale, Perpetual securities, amortized cost	1,223	1,532
Securities held to maturity, fixed maturities, fair value	501	566
Asset Derivatives	271	375
Liability Derivatives	$ 419	$ 531

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INVESTMENTS

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

INVESTMENTS

INVESTMENTS

Investment Holdings

The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments are shown in the following tables.

	March 31, 2012
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale,   carried at fair value:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	10,007	$	604	$	0	$	10,611
Mortgage- and asset-backed securities	846		37		1		882
Public utilities	3,933		65		220		3,778
Sovereign and supranational	1,612		69		19		1,662
Banks/financial institutions	4,163		202		287		4,078
Other corporate	5,998		165		359		5,804
Total yen-denominated	26,559		1,142		886		26,815
Dollar-denominated:
U.S. government and agencies	100		18		0		118
Municipalities	1,061		110		8		1,163
Mortgage- and asset-backed securities	307		75		0		382
Public utilities	3,130		452		25		3,557
Sovereign and supranational	454		93		4		543
Banks/financial institutions	3,410		266		45		3,631
Other corporate	9,116		1,249		52		10,313
Total dollar-denominated	17,578		2,263		134		19,707
Total fixed maturities	44,137		3,405		1,020		46,522
Perpetual securities:
Yen-denominated:
Banks/financial institutions	4,879		110		301		4,688
Other corporate	326		25		0		351
Dollar-denominated:
Banks/financial institutions	317		13		17		313
Total perpetual securities	5,522		148		318		5,352
Equity securities	21		4		0		25
Total securities available for sale	$	49,680	$	3,557	$	1,338	$	51,899

	March 31, 2012
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity,   carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	22,783	$	287	$	3	$	23,067
Municipalities	522		31		3		550
Mortgage- and asset-backed securities	117		4		0		121
Public utilities	5,189		175		157		5,207
Sovereign and supranational	3,970		149		166		3,953
Banks/financial institutions	11,559		174		855		10,878
Other corporate	4,694		148		174		4,668
Total yen-denominated	48,834		968		1,358		48,444
Total securities held to maturity	$	48,834	$	968	$	1,358	$	48,444

	December 31, 2011
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale,   carried at fair value:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	11,108	$	670	$	0	$	11,778
Mortgage- and asset-backed securities	912		43		1		954
Public utilities	3,850		59		226		3,683
Sovereign and supranational	1,704		87		16		1,775
Banks/financial institutions	4,312		74		359		4,027
Other corporate	6,213		120		459		5,874
Total yen-denominated	28,099		1,053		1,061		28,091
Dollar-denominated:
U.S. government and agencies	31		4		0		35
Municipalities	1,060		107		8		1,159
Mortgage- and asset-backed securities	310		74		0		384
Public utilities	3,052		517		27		3,542
Sovereign and supranational	449		89		5		533
Banks/financial institutions	3,324		223		121		3,426
Other corporate	9,031		1,433		62		10,402
Total dollar-denominated	17,257		2,447		223		19,481
Total fixed maturities	45,356		3,500		1,284		47,572
Perpetual securities:
Yen-denominated:
Banks/financial institutions	6,217		155		604		5,768
Other corporate	344		17		0		361
Dollar-denominated:
Banks/financial institutions	336		3		29		310
Total perpetual securities	6,897		175		633		6,439
Equity securities	22		4		1		25
Total securities available for sale	$	52,275	$	3,679	$	1,918	$	54,036

	December 31, 2011
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities held to maturity,   carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	18,775	$	297	$	1	$	19,071
Municipalities	553		35		4		584
Mortgage- and asset-backed securities	129		5		0		134
Public utilities	5,615		188		166		5,637
Sovereign and supranational	4,200		148		183		4,165
Banks/financial institutions	12,389		170		1,079		11,480
Other corporate	5,348		149		185		5,312
Total yen-denominated	47,009		992		1,618		46,383
Total securities held to maturity	$	47,009	$	992	$	1,618	$	46,383

The methods of determining the fair values of our investments in debt securities, perpetual securities and equity securities are described in Note 5.

During the first three months of 2012, we reclassified one investment from the held-to-maturity portfolio to the available-for-sale portfolio as a result of a significant decline in the issuer's credit worthiness. At the time of transfer, the security had an amortized cost of $122 million and an unrealized loss of $23 million. This investment was issued by Energias de Portugal SA (EDP), an integrated electric utility domiciled in Portugal.

During the first three months of 2011, we reclassified eight investments from the held-to-maturity portfolio to the available-for-sale portfolio as a result of a significant decline in the issuers' credit worthiness.  At the time of the transfer, the securities had an aggregate amortized cost of $1.6 billion and an aggregate unrealized loss of $270 million.  The securities transferred included our investments in the Republic of Tunisia that had an aggregate amortized cost of $769 million and four securities associated with financial institutions in Portugal and Ireland with an aggregate amortized cost of $631 million.  The investments from the financial institutions in Portugal were subsequently sold by the end of the third quarter of 2011.

Contractual and Economic Maturities

The contractual maturities of our investments in fixed maturities at March 31, 2012, were as follows:

	Aflac Japan				Aflac U.S.
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair   Value
Available for sale:
Due in one year or less	$	2,123	$	2,168	$	13	$	13
Due after one year through five years	2,223		2,330		358		387
Due after five years through 10 years	3,940		4,201		894		1,036
Due after 10 years	25,754		26,463		7,559		8,523
Mortgage- and asset-backed securities	1,108		1,209		45		56
Total fixed maturities available for sale	$	35,148	$	36,371	$	8,869	$	10,015
Held to maturity:
Due in one year or less	$	460	$	463	$	0	$	0
Due after one year through five years	1,085		1,161		0		0
Due after five years through 10 years	3,226		3,544		0		0
Due after 10 years	43,946		43,155		0		0
Mortgage- and asset-backed securities	117		121		0		0
Total fixed maturities held to maturity	$	48,834	$	48,444	$	0	$	0

At March 31, 2012, the Parent Company had a portfolio of investment-grade available-for-sale fixed-maturity securities totaling $120 million at amortized cost and $136 million at fair value, which is not included in the table above.

Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties.

The majority of our perpetual securities are subordinated to other debt obligations of the issuer, but rank higher than the issuer's equity securities. Perpetual securities have characteristics of both debt and equity investments, along with unique features that create economic maturity dates for the securities. Although perpetual securities have no contractual maturity date, they have stated interest coupons that were fixed at their issuance and subsequently change to a floating short-term interest rate of 125 to more than 300 basis points above an appropriate market index, generally by the 25th year after issuance, thereby creating an economic maturity date. The economic maturities of our investments in perpetual securities, which were all reported as available for sale at March 31, 2012, were as follows:

	Aflac Japan				Aflac U.S.
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair   Value
Due in one year or less	$	304	$	308	$	0	$	0
Due after one year through five years	1,167		1,223		5		5
Due after five years through 10 years	521		551		0		0
Due after 10 years	3,353		3,089		172		176
Total perpetual securities available for sale	$	5,345	$	5,171	$	177	$	181

Investment Concentrations

Our investment discipline begins with a top-down approach for each investment opportunity we consider. Consistent with that approach, we first approve each country in which we invest. In our approach to sovereign analysis, we consider the political, legal and financial context of the sovereign entity in which an issuer is domiciled and operates. Next we approve the issuer's industry sector, considering such factors as the stability of results and the importance of the sector to the overall economy. Specific credit names within approved countries and industry sectors are evaluated for their market position and specific strengths and potential weaknesses. Structures in which we invest are chosen for specific portfolio management purposes, including asset/liability management, portfolio diversification and net investment income.

Banks and Financial Institutions

After Japan government bonds (JGBs), our second largest investment concentration as of March 31, 2012, was banks and financial institutions. Within the countries we approve for investment opportunities, we primarily invest in financial institutions that are strategically crucial to each approved country's economy. The bank and financial institution sector is a highly regulated industry and plays a strategic role in the global economy. We achieve some degree of diversification in the bank and financial institution sector through a geographically diverse universe of credit exposures. Within this sector, the more significant concentration of our credit risk by geographic region or country of issuer at March 31, 2012, based on amortized cost, was: Europe, excluding the United Kingdom (35%); United States (23%); United Kingdom (9%); Japan (8%); and other (25%).

Our total investments in the bank and financial institution sector, including those classified as perpetual securities, were as follows:

	March 31, 2012						December 31, 2011
	Total Investments in Banks and Financial Institutions Sector (in millions)			Percentage of Total Investment Portfolio			Total Investments in Banks and Financial Institutions Sector (in millions)			Percentage of Total Investment     Portfolio
Fixed maturities:
Amortized cost		$	19,132		19	%		$	20,025		20	%
Fair value		18,587			19			18,933			19
Perpetual securities:
Upper Tier II:
Amortized cost		$	3,251		3	%		$	4,285		5	%
Fair value		3,193			3			4,244			4
Tier I:
Amortized cost		1,945			2			2,268			2
Fair value		1,808			2			1,834			2
Total:
Amortized cost		$	24,328		24	%		$	26,578		27	%
Fair value		23,588			24			25,011			25

Derisking

During the three-month period ended March 31, 2012, we continued our efforts which began in the first quarter of 2011 of pursuing strategic investment activities to lower the risk profile of our investment portfolio. Our primary focus during the first quarter of 2012 was on reducing our exposure to perpetual and other subordinated securities of European issuers, particularly in the financial sector. See further details in the Realized Investment Gains and Losses section below.

Realized Investment Gains and Losses

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

	Three Months Ended March 31,
(In millions)	2012			2011
Realized investment gains (losses) on securities:
Fixed maturities:
Available for sale:
Gross gains from sales	$	14		$	26
Gross losses from sales	(1		)	(187		)
Net gains (losses) from redemptions	0			7
Other-than-temporary impairment losses	(63		)	(404		)
Total fixed maturities	(50		)	(558		)
Perpetual securities:
Available for sale:
Gross gains from sales	70			6
Gross losses from sales	(65		)	(2		)
Net gains (losses) from redemptions	60			0
Other-than-temporary impairment losses	(140		)	0
Total perpetual securities	(75		)	4
Equity securities:
Other-than-temporary impairment losses	0			(1		)
Total equity securities	0			(1		)
Derivatives and other:
Derivative gains (losses)	80			(30		)
Other	0			6
Total derivatives and other	80			(24		)
Total realized investment gains (losses)	$	(45	)	$	(579	)

During the three-month period ended March 31, 2012, sales and redemptions of securities generated a net realized investment gain. This net gain primarily resulted from both the redemption of a previously impaired perpetual security and sales related to our implemented plan to reduce the risk exposure in our investment portfolio (see the Investment Concentrations section above for more information). The other-than-temporary losses that we recognized were largely composed of impairments for two Tier I securities that were sold subsequent to the end of the quarter.

During the three-month period ended March 31, 2011, we recognized other-than-temporary impairment losses and realized investment losses from the sale of securities, primarily a result of an implemented plan to reduce the risk exposure in our investment portfolio coupled with the continued decline in the credit worthiness of certain issuers.

Other-than-temporary Impairment

The fair value of our debt and perpetual security investments fluctuates based on changes in credit spreads in the global financial markets. Credit spreads are most impacted by market rates of interest, the general and specific credit environment and global market liquidity. We believe that fluctuations in the fair value of our investment securities related to changes in credit spreads have little bearing on whether our investment is ultimately recoverable. Generally, we consider such declines in fair value to be temporary even in situations where an investment remains in an unrealized loss position for a year or more.

However, in the course of our credit review process, we may determine that it is unlikely that we will recover our investment in an issuer due to factors specific to an individual issuer, as opposed to general changes in global credit spreads. In this event, we consider such a decline in the investment's fair value, to the extent below the investment's cost or amortized cost, to be an other-than-temporary impairment of the investment and write the investment down to its fair value.

In addition to the usual investment risk associated with a debt instrument, our perpetual security holdings may be subject to the risk of nationalization of their issuers in connection with capital injections from an issuer's sovereign government. We cannot be assured that such capital support will extend to all levels of an issuer's capital structure. In addition, certain governments or regulators may consider imposing interest and principal payment restrictions on issuers of hybrid securities to preserve cash and build capital. In addition to the cash flow impact that additional deferrals would have on our portfolio, such deferrals could result in ratings downgrades of the affected securities, which in turn could impair the fair value of the securities and increase our regulatory capital requirements. We take factors such as these into account in our credit review process.

When determining our intention to sell a security prior to recovery of its fair value to amortized cost, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio and sales of securities to meet cash flow needs. We perform ongoing analyses of our liquidity needs, which includes cash flow testing of our policy liabilities, debt maturities, projected dividend payments and other cash flow and liquidity needs. Our cash flow testing includes extensive duration matching of our investment portfolio and policy liabilities. Based on our analyses, we have concluded that we have sufficient excess cash flows to meet our liquidity needs without liquidating any of our investments prior to their maturity. In years prior to 2011, provided that our credit review process resulted in a conclusion that we would collect all of our cash flows and recover our investment in an issuer and the investment was within our investment risk exposure guidelines, we generally did not sell investments prior to their maturity. However, starting in the fourth quarter of 2011, we determined that certain securities were no longer within our investment risk exposure guidelines and have started to reposition our security portfolio in an effort to enhance diversification and our credit profile by reducing our risk exposure through opportunistic investment transactions.

The following table details our pretax other-than-temporary impairment losses by investment category that resulted from our impairment evaluation process.

	Three Months Ended March 31,
(In millions)	2012			2011
Perpetual securities	$	140		$	0
Corporate bonds	63			397
Mortgage- and asset-backed securities	0			6
Municipalities	0			1
Equity securities	0			1
Total other-than-temporary impairment losses realized	$	203	(1)	$	405	(2)

⁽¹⁾ Includes $28 for credit-related impairments and $175 from change in intent to sell securities

⁽²⁾ Consisted completely of credit-related impairments

Unrealized Investment Gains and Losses

Effect on Shareholders’ Equity

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

(In millions)	March 31, 2012			December 31, 2011
Unrealized gains (losses) on securities available for sale	$	2,219		$	1,761
Unamortized unrealized gains on securities transferred to held to maturity	29			34
Deferred income taxes	(800		)	(652		)
Shareholders’ equity, unrealized gains (losses) on investment securities	$	1,448		$	1,143

Gross Unrealized Loss Aging

The following tables show the fair value and gross unrealized losses of our available-for-sale and held-to-maturity investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	March 31, 2012
	Total				Less than 12 months				12 months or longer
(In millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
Japan government and agencies:
Yen-denominated	$	3,674	$	3	$	3,597	$	2	$	77	$	1
Municipalities:
Dollar-denominated	60		8		29		1		31		7
Yen-denominated	58		3		0		0		58		3
Mortgage- and asset- backed securities:
Yen-denominated	143		1		0		0		143		1
Public utilities:
Dollar-denominated	439		25		284		11		155		14
Yen-denominated	4,779		377		2,094		131		2,685		246
Sovereign and supranational:
Dollar-denominated	68		4		17		0		51		4
Yen-denominated	2,589		185		592		17		1,997		168
Banks/financial institutions:
Dollar-denominated	593		45		219		9		374		36
Yen-denominated	9,247		1,142		926		11		8,321		1,131
Other corporate:
Dollar-denominated	1,286		52		1,112		28		174		24
Yen-denominated	5,523		533		1,606		69		3,917		464
Total fixed maturities	28,459		2,378		10,476		279		17,983		2,099
Perpetual securities:
Dollar-denominated	116		17		60		0		56		17
Yen-denominated	2,036		301		619		42		1,417		259
Total perpetual securities	2,152		318		679		42		1,473		276
Equity securities	4		0		2		0		2		0
Total	$	30,615	$	2,696	$	11,157	$	321	$	19,458	$	2,375

	December 31, 2011
	Total				Less than 12 months				12 months or longer
(In millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
Japan government and agencies:
Yen-denominated	$	940	$	1	$	859	$	1	$	81	$	0
Municipalities:
Dollar-denominated	54		8		22		1		32		7
Yen-denominated	60		4		0		0		60		4
Mortgage- and asset- backed securities:
Yen-denominated	151		1		0		0		151		1
Public utilities:
Dollar-denominated	295		27		110		3		185		24
Yen-denominated	4,995		392		2,404		141		2,591		251
Sovereign and supranational:
Dollar-denominated	66		5		34		2		32		3
Yen-denominated	2,349		199		749		62		1,600		137
Banks/financial institutions:
Dollar-denominated	770		121		391		56		379		65
Yen-denominated	10,175		1,438		1,639		46		8,536		1,392
Other corporate:
Dollar-denominated	834		62		639		27		195		35
Yen-denominated	6,106		644		2,523		110		3,583		534
Total fixed maturities	26,795		2,902		9,370		449		17,425		2,453
Perpetual securities:
Dollar-denominated	217		29		109		4		108		25
Yen-denominated	2,290		604		630		69		1,660		535
Total perpetual securities	2,507		633		739		73		1,768		560
Equity securities	8		1		6		1		2		0
Total	$	29,310	$	3,536	$	10,115	$	523	$	19,195	$	3,013

Analysis of Securities in Unrealized Loss Positions

The unrealized losses on our investments have been primarily related to changes in risk-free interest rates, foreign exchange rates or the general widening of credit spreads rather than specific issuer credit-related events. In addition, because we do not intend to sell and do not believe it is likely that we will be required to sell these investments before a recovery of fair value to amortized cost, we do not consider any of these investments to be other-than-temporarily impaired as of and for the three-month period ended March 31, 2012. The following summarizes our evaluation of investment categories with significant unrealized losses and securities that were rated below investment grade as of March 31, 2012.

Public Utilities

As of March 31, 2012, 69% of the unrealized losses on investments in the public utilities sector was related to investments that were investment grade, compared with 77% at December 31, 2011. For any credit-related declines in fair value, we perform a more focused review of the related issuer's credit ratings, financial statements and other available financial data, timeliness of payment, competitive environment and any other significant data related to the issuer. From those reviews, we evaluate the issuer's continued ability to service our investment. We have determined that the majority of the unrealized losses on the investments in the public utilities sector was caused by a decline in creditworthiness of a couple issuers in this sector. Also impacting the unrealized losses in the public utilities sector was widening credit spreads. Based on our credit analysis, we believe that the issuers of our investments in this sector have the ability to service their obligations to us.

Sovereign and Supranational

As of March 31, 2012, 94% of the unrealized losses on investment securities in the sovereign and supranational sector were related to investments that were investment grade, compared with 100% at December 31, 2011. For any credit-related declines in fair value, we perform a more focused review of the related issuers' credit ratings, financial statements and other available financial data, timeliness of payment, gross domestic product growth projections, balance of payments, foreign currency reserves, and any other significant data related to the issuers. From those reviews, we evaluate the issuers' continued ability to service our investments. We have determined that the majority of the unrealized losses on the investments in the sovereign and supranational sector was caused by a decline in creditworthiness of certain issuers in this sector. Also impacting the unrealized losses in the sovereign and supranational sector was widening credit spreads. Based on our credit analysis, we believe that the issuers of our investments in this sector have the ability to service their obligations to us.

Bank and Financial Institution Investments

Our efforts during 2011 and the three-month period ended March 31, 2012 to reduce risk in our investment portfolio included sales and impairments of certain investments in banks and financial institutions, with an emphasis on reducing our exposure to European financial institutions. The following table shows the composition of our investments in an unrealized loss position in the bank and financial institution sector by fixed-maturity securities and perpetual securities. The table reflects those securities in that sector that were in an unrealized loss position as a percentage of our total investment portfolio in an unrealized loss position and their respective unrealized losses as a percentage of total unrealized losses.

	March 31, 2012						December 31, 2011
	Percentage of Total Investments in an Unrealized Loss Position			Percentage of Total Unrealized Losses			Percentage of Total Investments in an Unrealized Loss Position			Percentage of Total Unrealized Losses
Fixed maturities		32	%		44	%		37	%		44	%
Perpetual securities:
Upper Tier II		4			5			4			6
Tier I		3			6			5			12
Total perpetual securities		7			11			9			18
Total		39	%		55	%		46	%		62	%

As of March 31, 2012, 85% of the $1.5 billion in unrealized losses on investments in the bank and financial institution sector, including perpetual securities, was related to investments that were investment grade, compared with 80% at December 31, 2011. Of the $12.0 billion in total investments, at fair value, in this sector in an unrealized loss position at March 31, 2012, only $629 million($227 million in unrealized losses) was below investment grade. Three issuers of investments comprised nearly 99% of the $227 million unrealized loss. The remaining unrealized loss comprised one investment with an unrealized loss of less than $3 million .

We conduct our own independent credit analysis for investments in the bank and financial institution sector. Our assessment includes analysis of financial information, as well as consultation with the issuers from time to time. Based on our credit analysis, we have determined that the majority of the unrealized losses on the investments in this sector was caused by widening credit spreads, the downturn in the global economic environment and, to a lesser extent, changes in foreign exchange rates. Unrealized gains or losses related to prevailing interest rate environments are impacted by the remaining time to maturity of an investment. Assuming no credit-related factors develop, as investments near maturity, the unrealized gains or losses can be expected to diminish. Based on our credit analysis, we believe that the issuers of our investments in this sector have the ability to service their obligations to us.

Other Corporate Investments

As of March 31, 2012, 75% of the unrealized losses on investments in the other corporate sector was related to investments that were investment grade, compared with 73% at December 31, 2011. For any credit-related declines in fair value, we perform a more focused review of the related issuer's credit ratings, financial statements and other available financial data, timeliness of payment, competitive environment and any other significant data related to the issuer. From that review, we evaluate the issuer's continued ability to service our investment. We have determined that the majority of the unrealized losses on the investments in the other corporate sector were caused by widening credit spreads. Also impacting the unrealized losses in this sector is the decline in creditworthiness of certain issuers in the other corporate sector. Based on our credit analysis, we believe that the issuers of our investments in this sector have the ability to service their obligations to us.

Perpetual Securities

As of March 31, 2012, 91% of the unrealized losses on investments in perpetual securities was related to investments that were investment grade, compared with 73% at December 31, 2011. The majority of our investments in Upper Tier II and Tier I perpetual securities were in highly rated global financial institutions. Upper Tier II securities have more debt-like characteristics than Tier I securities and are senior to Tier I securities, preferred stock, and common equity of the issuer. Conversely, Tier I securities have more equity-like characteristics, but are senior to the common equity of the issuer. They may also be senior to certain preferred shares, depending on the individual security, the issuer's capital structure and the regulatory jurisdiction of the issuer.

Details of our holdings of perpetual securities were as follows:

Perpetual Securities

		March 31, 2012							December 31, 2011
(In millions)	Credit Rating	Amortized Cost		Fair Value		Unrealized Gain (Loss)			Amortized Cost		Fair Value		Unrealized Gain (Loss)
Upper Tier II:
	AA	$	80	$	81	$	1		$	196	$	204	$	8
	A	530		544		14			2,108		2,046		(62		)
	BBB	2,641		2,569		(72		)	1,791		1,804		13
	BB or lower	0		0		0			190		190		0
Total Upper Tier II		3,251		3,194		(57		)	4,285		4,244		(41		)
Tier I:
	A	60		60		0			0		0		0
	BBB	1,350		1,238		(112		)	1,684		1,417		(267		)
	BB or lower	535		509		(26		)	584		417		(167		)
Total Tier I		1,945		1,807		(138		)	2,268		1,834		(434		)
Other subordinated - non-banks	BBB	326		351		25			344		361		17
Total		$	5,522	$	5,352	$	(170	)	$	6,897	$	6,439	$	(458	)

An aspect of our efforts during 2011 and the three-month period ended March 31, 2012 to reduce risk in our investment portfolio included sales and impairments of certain investments in perpetual securities. With the exception of the Icelandic bank securities that we completely impaired in 2008, none of the perpetual securities we own were in default on interest and principal payments at March 31, 2012. During the second quarter of 2011, we wrote off accrued interest income and stopped accruing further interest income for the Dexia S.A. Upper Tier II perpetual securities, which had a deferred coupon and were impaired during that quarter, and we recognized additional impairments on those securities in the third and fourth quarters of 2011. We collected the deferred coupon upon the sale of those securities as part of our derisking investment activities in the first quarter of 2012. Based on amortized cost as of March 31, 2012, the geographic breakdown of our perpetual securities by issuer was as follows: European countries, excluding the United Kingdom, (69%); the United Kingdom (11%); Japan (12%); and other (8%). To determine any credit-related declines in fair value, we perform a more focused review of the related issuer's credit ratings, financial statements and other available financial data, timeliness of payment, competitive environment and any other significant data related to the issuer. From that review, we evaluate the issuer's continued ability to service our investment.

We have determined that the majority of our unrealized losses in the perpetual security category was principally due to widening credit spreads, largely as the result of the contraction of liquidity in the capital markets. Based on our reviews, we concluded that the ability of the issuers to service our investments has not been compromised by these factors. Unrealized gains or losses related to prevailing interest rate environments are impacted by the remaining time to maturity of an investment. Assuming no credit-related factors develop, as the investments near economic maturity, the unrealized gains or losses can be expected to diminish. Based on our credit analyses, we believe that the issuers of our investments in this sector have the ability to service their obligations to us.

Variable Interest Entities (VIEs)

The following table details our investments in VIEs.

Investments in Variable Interest Entities

	March 31, 2012				December 31, 2011
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
VIEs:
VIEs consolidated	$	6,545	$	6,940	$	6,997	$	7,206
VIEs not consolidated	12,795		12,832		13,753		13,714
Total VIEs	$	19,340	$	19,772	$	20,750	$	20,920

As a condition to our involvement or investment in a VIE, we enter into certain protective rights and covenants that preclude changes in the structure of the VIE that would alter the creditworthiness of our investment or our beneficial interest in the VIE.

Our involvement with all of the VIEs in which we have an interest is passive in nature, and we are not the arranger of these entities. We have not been involved in establishing these entities, except as it relates to our review and evaluation of the structure of these VIEs in the normal course of our investment decision-making process. Further, we have not been nor are we required to purchase any securities issued in the future by these VIEs.

Our ownership interest in the VIEs is limited to holding the obligations issued by them. All of the VIEs in which we invest are static with respect to funding and have no ongoing forms of funding after the initial funding date. We have no direct or contingent obligations to fund the limited activities of these VIEs, nor do we have any direct or indirect financial guarantees related to the limited activities of these VIEs. We have not provided any assistance or any other type of financing support to any of the VIEs we invest in, nor do we have any intention to do so in the future. The weighted-average lives of our notes are very similar to the underlying collateral held by these VIEs where applicable.

Our risk of loss related to our interests in any of our VIEs is limited to our investment in the debt securities issued by them.

VIEs-Consolidated

We are substantively the only investor in the consolidated VIEs listed in the table above. As the sole investor in these VIEs, we have the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and are therefore considered to be the primary beneficiary of the VIEs that we consolidate. We also participate in substantially all of the variability created by these VIEs. The activities of these VIEs are limited to holding debt and perpetual securities and interest rate, foreign currency, and/or credit default swaps (CDSs), as appropriate, and utilizing the cash flows from these securities to service our investment. Neither we nor any of our 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, we are not a direct counterparty to the swap contracts and have no control over them. Our loss exposure to these VIEs is limited to our original investment. Our 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 our investment in senior secured bank loans through a unit trust structure that we began investing in during the second quarter of 2011, the underlying collateral assets and funding of our consolidated VIEs are generally static in nature and the underlying collateral and the reference corporate entities covered by any CDS contracts were all investment grade at the time of issuance.

We are exposed to credit losses within any consolidated collateralized debt obligations (CDOs) that could result in principal losses to our investments. We have mitigated our risk of credit loss through the structure of the VIE, which contractually requires the subordinated tranches within these VIEs to absorb the majority of the expected losses from the underlying credit default swaps. We currently own only senior CDO tranches. Based on our statistical analysis models, each of these VIEs can sustain a reasonable number of defaults in the underlying reference corporate entities in the CDSs with no loss to our investment.

VIEs-Not Consolidated

The VIEs that we are not required to consolidate are investments that are limited to loans in the form of debt obligations from the VIEs that are irrevocably and unconditionally guaranteed by their corporate parents. These VIEs are the primary financing vehicle used by their corporate sponsors to raise financing in the international capital markets. The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them. We do not have the power to direct the activities that most significantly impact the entity's economic performance, nor do we have (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. As such, we are not the primary beneficiary of these VIEs and are therefore not required to consolidate them. These VIE investments are comprised of securities from 161 separate issuers which have an average credit rating of A.

Securities Lending

We lend fixed-maturity securities to financial institutions in short-term security-lending transactions. These short-term security-lending arrangements increase investment income with minimal risk. Our security lending policy requires that the fair value of the securities and/or unrestricted cash received as collateral be 102% or more of the fair value of the loaned securities. The following table presents our security loans outstanding and the corresponding collateral held:

(In millions)	March 31, 2012		December 31, 2011
Security loans outstanding, fair value	$	188	$	812
Cash collateral on loaned securities	193		838

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NOTES PAYABLE - Summary of Notes Payable (Detail) In Millions, unless otherwise specified	Mar. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Mar. 31, 2012 6.45% senior notes due August 2040 USD ($)		Dec. 31, 2011 6.45% senior notes due August 2040 USD ($)		Mar. 31, 2012 8.50% senior notes due May 2019 USD ($)	Dec. 31, 2011 8.50% senior notes due May 2019 USD ($)	Mar. 31, 2012 6.90% senior notes due December 2039 USD ($)		Dec. 31, 2011 6.90% senior notes due December 2039 USD ($)		Mar. 31, 2012 3.45% senior notes due August 2015 USD ($)	Dec. 31, 2011 3.45% senior notes due August 2015 USD ($)	Mar. 31, 2012 2.65% senior notes due February 2017 USD ($)	Dec. 31, 2011 2.65% senior notes due February 2017 USD ($)	Mar. 31, 2012 4.00% senior notes due February 2022 USD ($)		Dec. 31, 2011 4.00% senior notes due February 2022 USD ($)	Mar. 31, 2012 2.26% yen-denominated Uridashi notes due September 2016 USD ($)	Mar. 31, 2012 2.26% yen-denominated Uridashi notes due September 2016 JPY (¥)	Dec. 31, 2011 2.26% yen-denominated Uridashi notes due September 2016 USD ($)	Dec. 31, 2011 2.26% yen-denominated Uridashi notes due September 2016 JPY (¥)	Mar. 31, 2012 1.47% yen-denominated Samurai notes due July 2014 USD ($)	Mar. 31, 2012 1.47% yen-denominated Samurai notes due July 2014 JPY (¥)	Dec. 31, 2011 1.47% yen-denominated Samurai notes due July 2014 USD ($)	Dec. 31, 2011 1.47% yen-denominated Samurai notes due July 2014 JPY (¥)	Mar. 31, 2012 1.87% yen-denominated Samurai notes due June 2012 USD ($)	Mar. 31, 2012 1.87% yen-denominated Samurai notes due June 2012 JPY (¥)	Dec. 31, 2011 1.87% yen-denominated Samurai notes due June 2012 USD ($)	Dec. 31, 2011 1.87% yen-denominated Samurai notes due June 2012 JPY (¥)	Mar. 31, 2012 1.84% yen-denominated Samurai notes due July 2016 USD ($)	Mar. 31, 2012 1.84% yen-denominated Samurai notes due July 2016 JPY (¥)	Dec. 31, 2011 1.84% yen-denominated Samurai notes due July 2016 USD ($)	Dec. 31, 2011 1.84% yen-denominated Samurai notes due July 2016 JPY (¥)	Mar. 31, 2012 Variable interest rate yen-denominated Samurai notes due July 2014 USD ($)	Mar. 31, 2012 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Dec. 31, 2011 Variable interest rate yen-denominated Samurai notes due July 2014 USD ($)	Dec. 31, 2011 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Jul. 31, 2011 Variable interest rate yen-denominated Samurai notes due July 2014 JPY (¥)	Mar. 31, 2012 3.60% yen-denominated loan due July 2015 USD ($)	Mar. 31, 2012 3.60% yen-denominated loan due July 2015 JPY (¥)	Dec. 31, 2011 3.60% yen-denominated loan due July 2015 USD ($)	Dec. 31, 2011 3.60% yen-denominated loan due July 2015 JPY (¥)	Mar. 31, 2012 3.00% yen-denominated loan due August 2015 USD ($)	Mar. 31, 2012 3.00% yen-denominated loan due August 2015 JPY (¥)	Dec. 31, 2011 3.00% yen-denominated loan due August 2015 USD ($)	Dec. 31, 2011 3.00% yen-denominated loan due August 2015 JPY (¥)	Mar. 31, 2012 Capitalized Lease Obligations USD ($)	Dec. 31, 2011 Capitalized Lease Obligations USD ($)
Debt Instrument [Line Items]
Notes payable	$ 3,964	$ 3,285	$ 448	[1]	$ 448	[1]	$ 850	$ 850	$ 396	[2]	$ 396	[2]	$ 300	$ 300	$ 400	$ 0	$ 349	[3]	$ 0	$ 97		$ 103		$ 349		$ 369		$ 324		$ 342		$ 192		$ 203		$ 67		$ 71			$ 122		$ 129		$ 61		$ 64		$ 9	$ 10
Notes payable, principal amount			450		450				400		400				400		350				8,000		8,000		28,700		28,700		26,600		26,600		15,800		15,800		5,500		5,500	5,500		10,000		10,000		5,000		5,000
Notes payable, underwriting discount			$ 2		$ 2				$ 4		$ 4						$ 1

[1] $450 issuance net of a $2 underwriting discount that is being amortized over the life of the notes

[2] $400 issuance net of a $4 underwriting discount that is being amortized over the life of the notes

[3] $350 issuance net of a $1 underwriting discount that is being amortized over the life of the notes

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended	3 Months Ended			12 Months Ended		3 Months Ended
	Dec. 31, 2010 Accounting Standards Update 2010-26	Mar. 31, 2012 Aflac Japan	Mar. 31, 2011 Aflac Japan	Dec. 31, 2011 Aflac Japan	Dec. 31, 2010 Retained earnings: Accounting Standards Update 2010-26	Dec. 31, 2010 Accumulated Other Comprehensive Income (Loss) Accounting Standards Update 2010-26	Mar. 31, 2012 Dollar denominated investment portfolio [Member] Aflac Japan	Mar. 31, 2011 Dollar denominated investment portfolio [Member] Aflac Japan
Significant Accounting Policies [Line Items]
Aflac Japan's percentage of the Company's total revenues		77.00%	74.00%
Aflac Japan's percentage of the Company's total assets		87.00%		87.00%
Other comprehensive income foreign exchange gains or losses, deferred tax expense (benefit)							$ 157	$ 51
Effective income tax rate excluding income tax expense (benefit) related to Aflac Japan's dollar-denominated portfolio							44.50%	32.40%
Adjustment to the shareholders' equity upon adoption of new DAC accounting guidance	$ (516)				$ (408)	$ (108)

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INVESTMENTS - Fair Value and Gross Unrealized Losses for Securities That Have Been in Continuous Unrealized Loss Position (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	$ 30,615	$ 29,310
Total Unrealized Losses	2,696	3,536
Less than 12 months Fair Value	11,157	10,115
Less than 12 months Unrealized Losses	321	523
12 months or longer Fair Value	19,458	19,195
12 months or longer Unrealized Losses	2,375	3,013
Banks/financial Institutions
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	12,000
Total Unrealized Losses	1,500
Fixed Maturities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	28,459	26,795
Total Unrealized Losses	2,378	2,902
Less than 12 months Fair Value	10,476	9,370
Less than 12 months Unrealized Losses	279	449
12 months or longer Fair Value	17,983	17,425
12 months or longer Unrealized Losses	2,099	2,453
Fixed Maturities | Japan government and agencies | Yen Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	3,674	940
Total Unrealized Losses	3	1
Less than 12 months Fair Value	3,597	859
Less than 12 months Unrealized Losses	2	1
12 months or longer Fair Value	77	81
12 months or longer Unrealized Losses	1	0
Fixed Maturities | Municipalities | Dollar Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	60	54
Total Unrealized Losses	8	8
Less than 12 months Fair Value	29	22
Less than 12 months Unrealized Losses	1	1
12 months or longer Fair Value	31	32
12 months or longer Unrealized Losses	7	7
Fixed Maturities | Municipalities | Yen Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	58	60
Total Unrealized Losses	3	4
Less than 12 months Fair Value	0	0
Less than 12 months Unrealized Losses	0	0
12 months or longer Fair Value	58	60
12 months or longer Unrealized Losses	3	4
Fixed Maturities | Mortgage- and asset-backed Securities | Yen Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	143	151
Total Unrealized Losses	1	1
Less than 12 months Fair Value	0	0
Less than 12 months Unrealized Losses	0	0
12 months or longer Fair Value	143	151
12 months or longer Unrealized Losses	1	1
Fixed Maturities | Public Utilities | Dollar Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	439	295
Total Unrealized Losses	25	27
Less than 12 months Fair Value	284	110
Less than 12 months Unrealized Losses	11	3
12 months or longer Fair Value	155	185
12 months or longer Unrealized Losses	14	24
Fixed Maturities | Public Utilities | Yen Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	4,779	4,995
Total Unrealized Losses	377	392
Less than 12 months Fair Value	2,094	2,404
Less than 12 months Unrealized Losses	131	141
12 months or longer Fair Value	2,685	2,591
12 months or longer Unrealized Losses	246	251
Fixed Maturities | Sovereign and Supranational | Dollar Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	68	66
Total Unrealized Losses	4	5
Less than 12 months Fair Value	17	34
Less than 12 months Unrealized Losses	0	2
12 months or longer Fair Value	51	32
12 months or longer Unrealized Losses	4	3
Fixed Maturities | Sovereign and Supranational | Yen Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	2,589	2,349
Total Unrealized Losses	185	199
Less than 12 months Fair Value	592	749
Less than 12 months Unrealized Losses	17	62
12 months or longer Fair Value	1,997	1,600
12 months or longer Unrealized Losses	168	137
Fixed Maturities | Banks/financial Institutions | Dollar Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	593	770
Total Unrealized Losses	45	121
Less than 12 months Fair Value	219	391
Less than 12 months Unrealized Losses	9	56
12 months or longer Fair Value	374	379
12 months or longer Unrealized Losses	36	65
Fixed Maturities | Banks/financial Institutions | Yen Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	9,247	10,175
Total Unrealized Losses	1,142	1,438
Less than 12 months Fair Value	926	1,639
Less than 12 months Unrealized Losses	11	46
12 months or longer Fair Value	8,321	8,536
12 months or longer Unrealized Losses	1,131	1,392
Fixed Maturities | Other Corporate | Dollar Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	1,286	834
Total Unrealized Losses	52	62
Less than 12 months Fair Value	1,112	639
Less than 12 months Unrealized Losses	28	27
12 months or longer Fair Value	174	195
12 months or longer Unrealized Losses	24	35
Fixed Maturities | Other Corporate | Yen Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	5,523	6,106
Total Unrealized Losses	533	644
Less than 12 months Fair Value	1,606	2,523
Less than 12 months Unrealized Losses	69	110
12 months or longer Fair Value	3,917	3,583
12 months or longer Unrealized Losses	464	534
Perpetual Securities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	2,152	2,507
Total Unrealized Losses	318	633
Less than 12 months Fair Value	679	739
Less than 12 months Unrealized Losses	42	73
12 months or longer Fair Value	1,473	1,768
12 months or longer Unrealized Losses	276	560
Perpetual Securities | Dollar Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	116	217
Total Unrealized Losses	17	29
Less than 12 months Fair Value	60	109
Less than 12 months Unrealized Losses	0	4
12 months or longer Fair Value	56	108
12 months or longer Unrealized Losses	17	25
Perpetual Securities | Yen Denominated
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	2,036	2,290
Total Unrealized Losses	301	604
Less than 12 months Fair Value	619	630
Less than 12 months Unrealized Losses	42	69
12 months or longer Fair Value	1,417	1,660
12 months or longer Unrealized Losses	259	535
Equity Securities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	4	8
Total Unrealized Losses	0	1
Less than 12 months Fair Value	2	6
Less than 12 months Unrealized Losses	0	1
12 months or longer Fair Value	2	2
12 months or longer Unrealized Losses	$ 0	$ 0

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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2012

Securities Available For Sale And Held To Maturity

The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments are shown in the following tables.

	March 31, 2012
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale,   carried at fair value:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	10,007	$	604	$	0	$	10,611
Mortgage- and asset-backed securities	846		37		1		882
Public utilities	3,933		65		220		3,778
Sovereign and supranational	1,612		69		19		1,662
Banks/financial institutions	4,163		202		287		4,078
Other corporate	5,998		165		359		5,804
Total yen-denominated	26,559		1,142		886		26,815
Dollar-denominated:
U.S. government and agencies	100		18		0		118
Municipalities	1,061		110		8		1,163
Mortgage- and asset-backed securities	307		75		0		382
Public utilities	3,130		452		25		3,557
Sovereign and supranational	454		93		4		543
Banks/financial institutions	3,410		266		45		3,631
Other corporate	9,116		1,249		52		10,313
Total dollar-denominated	17,578		2,263		134		19,707
Total fixed maturities	44,137		3,405		1,020		46,522
Perpetual securities:
Yen-denominated:
Banks/financial institutions	4,879		110		301		4,688
Other corporate	326		25		0		351
Dollar-denominated:
Banks/financial institutions	317		13		17		313
Total perpetual securities	5,522		148		318		5,352
Equity securities	21		4		0		25
Total securities available for sale	$	49,680	$	3,557	$	1,338	$	51,899

	March 31, 2012
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity,   carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	22,783	$	287	$	3	$	23,067
Municipalities	522		31		3		550
Mortgage- and asset-backed securities	117		4		0		121
Public utilities	5,189		175		157		5,207
Sovereign and supranational	3,970		149		166		3,953
Banks/financial institutions	11,559		174		855		10,878
Other corporate	4,694		148		174		4,668
Total yen-denominated	48,834		968		1,358		48,444
Total securities held to maturity	$	48,834	$	968	$	1,358	$	48,444

	December 31, 2011
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale,   carried at fair value:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	11,108	$	670	$	0	$	11,778
Mortgage- and asset-backed securities	912		43		1		954
Public utilities	3,850		59		226		3,683
Sovereign and supranational	1,704		87		16		1,775
Banks/financial institutions	4,312		74		359		4,027
Other corporate	6,213		120		459		5,874
Total yen-denominated	28,099		1,053		1,061		28,091
Dollar-denominated:
U.S. government and agencies	31		4		0		35
Municipalities	1,060		107		8		1,159
Mortgage- and asset-backed securities	310		74		0		384
Public utilities	3,052		517		27		3,542
Sovereign and supranational	449		89		5		533
Banks/financial institutions	3,324		223		121		3,426
Other corporate	9,031		1,433		62		10,402
Total dollar-denominated	17,257		2,447		223		19,481
Total fixed maturities	45,356		3,500		1,284		47,572
Perpetual securities:
Yen-denominated:
Banks/financial institutions	6,217		155		604		5,768
Other corporate	344		17		0		361
Dollar-denominated:
Banks/financial institutions	336		3		29		310
Total perpetual securities	6,897		175		633		6,439
Equity securities	22		4		1		25
Total securities available for sale	$	52,275	$	3,679	$	1,918	$	54,036

	December 31, 2011
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities held to maturity,   carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies	$	18,775	$	297	$	1	$	19,071
Municipalities	553		35		4		584
Mortgage- and asset-backed securities	129		5		0		134
Public utilities	5,615		188		166		5,637
Sovereign and supranational	4,200		148		183		4,165
Banks/financial institutions	12,389		170		1,079		11,480
Other corporate	5,348		149		185		5,312
Total yen-denominated	47,009		992		1,618		46,383
Total securities held to maturity	$	47,009	$	992	$	1,618	$	46,383

Investments Classified by Contractual Maturity Date

The contractual maturities of our investments in fixed maturities at March 31, 2012, were as follows:

	Aflac Japan				Aflac U.S.
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair   Value
Available for sale:
Due in one year or less	$	2,123	$	2,168	$	13	$	13
Due after one year through five years	2,223		2,330		358		387
Due after five years through 10 years	3,940		4,201		894		1,036
Due after 10 years	25,754		26,463		7,559		8,523
Mortgage- and asset-backed securities	1,108		1,209		45		56
Total fixed maturities available for sale	$	35,148	$	36,371	$	8,869	$	10,015
Held to maturity:
Due in one year or less	$	460	$	463	$	0	$	0
Due after one year through five years	1,085		1,161		0		0
Due after five years through 10 years	3,226		3,544		0		0
Due after 10 years	43,946		43,155		0		0
Mortgage- and asset-backed securities	117		121		0		0
Total fixed maturities held to maturity	$	48,834	$	48,444	$	0	$	0

Economic Maturities of Investments in Perpetual Securities

The economic maturities of our investments in perpetual securities, which were all reported as available for sale at March 31, 2012, were as follows:

	Aflac Japan				Aflac U.S.
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair   Value
Due in one year or less	$	304	$	308	$	0	$	0
Due after one year through five years	1,167		1,223		5		5
Due after five years through 10 years	521		551		0		0
Due after 10 years	3,353		3,089		172		176
Total perpetual securities available for sale	$	5,345	$	5,171	$	177	$	181

Bank and Financial Institution Investments

Our total investments in the bank and financial institution sector, including those classified as perpetual securities, were as follows:

	March 31, 2012						December 31, 2011
	Total Investments in Banks and Financial Institutions Sector (in millions)			Percentage of Total Investment Portfolio			Total Investments in Banks and Financial Institutions Sector (in millions)			Percentage of Total Investment     Portfolio
Fixed maturities:
Amortized cost		$	19,132		19	%		$	20,025		20	%
Fair value		18,587			19			18,933			19
Perpetual securities:
Upper Tier II:
Amortized cost		$	3,251		3	%		$	4,285		5	%
Fair value		3,193			3			4,244			4
Tier I:
Amortized cost		1,945			2			2,268			2
Fair value		1,808			2			1,834			2
Total:
Amortized cost		$	24,328		24	%		$	26,578		27	%
Fair value		23,588			24			25,011			25

Gain (Loss) on Investments

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

	Three Months Ended March 31,
(In millions)	2012			2011
Realized investment gains (losses) on securities:
Fixed maturities:
Available for sale:
Gross gains from sales	$	14		$	26
Gross losses from sales	(1		)	(187		)
Net gains (losses) from redemptions	0			7
Other-than-temporary impairment losses	(63		)	(404		)
Total fixed maturities	(50		)	(558		)
Perpetual securities:
Available for sale:
Gross gains from sales	70			6
Gross losses from sales	(65		)	(2		)
Net gains (losses) from redemptions	60			0
Other-than-temporary impairment losses	(140		)	0
Total perpetual securities	(75		)	4
Equity securities:
Other-than-temporary impairment losses	0			(1		)
Total equity securities	0			(1		)
Derivatives and other:
Derivative gains (losses)	80			(30		)
Other	0			6
Total derivatives and other	80			(24		)
Total realized investment gains (losses)	$	(45	)	$	(579	)

Other Than Temporary Impairment Losses on Investment Securities

The following table details our pretax other-than-temporary impairment losses by investment category that resulted from our impairment evaluation process.

	Three Months Ended March 31,
(In millions)	2012			2011
Perpetual securities	$	140		$	0
Corporate bonds	63			397
Mortgage- and asset-backed securities	0			6
Municipalities	0			1
Equity securities	0			1
Total other-than-temporary impairment losses realized	$	203	(1)	$	405	(2)

⁽¹⁾ Includes $28 for credit-related impairments and $175 from change in intent to sell securities

⁽²⁾ Consisted completely of credit-related impairments

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 investment securities was as follows:

(In millions)	March 31, 2012			December 31, 2011
Unrealized gains (losses) on securities available for sale	$	2,219		$	1,761
Unamortized unrealized gains on securities transferred to held to maturity	29			34
Deferred income taxes	(800		)	(652		)
Shareholders’ equity, unrealized gains (losses) on investment securities	$	1,448		$	1,143

Investments Gross Unrealized Loss Aging

The following tables show the fair value and gross unrealized losses of our available-for-sale and held-to-maturity investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	March 31, 2012
	Total				Less than 12 months				12 months or longer
(In millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
Japan government and agencies:
Yen-denominated	$	3,674	$	3	$	3,597	$	2	$	77	$	1
Municipalities:
Dollar-denominated	60		8		29		1		31		7
Yen-denominated	58		3		0		0		58		3
Mortgage- and asset- backed securities:
Yen-denominated	143		1		0		0		143		1
Public utilities:
Dollar-denominated	439		25		284		11		155		14
Yen-denominated	4,779		377		2,094		131		2,685		246
Sovereign and supranational:
Dollar-denominated	68		4		17		0		51		4
Yen-denominated	2,589		185		592		17		1,997		168
Banks/financial institutions:
Dollar-denominated	593		45		219		9		374		36
Yen-denominated	9,247		1,142		926		11		8,321		1,131
Other corporate:
Dollar-denominated	1,286		52		1,112		28		174		24
Yen-denominated	5,523		533		1,606		69		3,917		464
Total fixed maturities	28,459		2,378		10,476		279		17,983		2,099
Perpetual securities:
Dollar-denominated	116		17		60		0		56		17
Yen-denominated	2,036		301		619		42		1,417		259
Total perpetual securities	2,152		318		679		42		1,473		276
Equity securities	4		0		2		0		2		0
Total	$	30,615	$	2,696	$	11,157	$	321	$	19,458	$	2,375

	December 31, 2011
	Total				Less than 12 months				12 months or longer
(In millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed maturities:
Japan government and agencies:
Yen-denominated	$	940	$	1	$	859	$	1	$	81	$	0
Municipalities:
Dollar-denominated	54		8		22		1		32		7
Yen-denominated	60		4		0		0		60		4
Mortgage- and asset- backed securities:
Yen-denominated	151		1		0		0		151		1
Public utilities:
Dollar-denominated	295		27		110		3		185		24
Yen-denominated	4,995		392		2,404		141		2,591		251
Sovereign and supranational:
Dollar-denominated	66		5		34		2		32		3
Yen-denominated	2,349		199		749		62		1,600		137
Banks/financial institutions:
Dollar-denominated	770		121		391		56		379		65
Yen-denominated	10,175		1,438		1,639		46		8,536		1,392
Other corporate:
Dollar-denominated	834		62		639		27		195		35
Yen-denominated	6,106		644		2,523		110		3,583		534
Total fixed maturities	26,795		2,902		9,370		449		17,425		2,453
Perpetual securities:
Dollar-denominated	217		29		109		4		108		25
Yen-denominated	2,290		604		630		69		1,660		535
Total perpetual securities	2,507		633		739		73		1,768		560
Equity securities	8		1		6		1		2		0
Total	$	29,310	$	3,536	$	10,115	$	523	$	19,195	$	3,013

Bank and Financial Institution Investments in Unrealized Loss Position

The table reflects those securities in that sector that were in an unrealized loss position as a percentage of our total investment portfolio in an unrealized loss position and their respective unrealized losses as a percentage of total unrealized losses.

	March 31, 2012						December 31, 2011
	Percentage of Total Investments in an Unrealized Loss Position			Percentage of Total Unrealized Losses			Percentage of Total Investments in an Unrealized Loss Position			Percentage of Total Unrealized Losses
Fixed maturities		32	%		44	%		37	%		44	%
Perpetual securities:
Upper Tier II		4			5			4			6
Tier I		3			6			5			12
Total perpetual securities		7			11			9			18
Total		39	%		55	%		46	%		62	%

Investments in Variable Interest Entities

The following table details our investments in VIEs.

Investments in Variable Interest Entities

	March 31, 2012				December 31, 2011
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
VIEs:
VIEs consolidated	$	6,545	$	6,940	$	6,997	$	7,206
VIEs not consolidated	12,795		12,832		13,753		13,714
Total VIEs	$	19,340	$	19,772	$	20,750	$	20,920

Securities Lending

The following table presents our security loans outstanding and the corresponding collateral held:

(In millions)	March 31, 2012		December 31, 2011
Security loans outstanding, fair value	$	188	$	812
Cash collateral on loaned securities	193		838

Perpetual Securities

Schedule of Available-for-sale Securities Reconciliation

Details of our holdings of perpetual securities were as follows:

Perpetual Securities

		March 31, 2012							December 31, 2011
(In millions)	Credit Rating	Amortized Cost		Fair Value		Unrealized Gain (Loss)			Amortized Cost		Fair Value		Unrealized Gain (Loss)
Upper Tier II:
	AA	$	80	$	81	$	1		$	196	$	204	$	8
	A	530		544		14			2,108		2,046		(62		)
	BBB	2,641		2,569		(72		)	1,791		1,804		13
	BB or lower	0		0		0			190		190		0
Total Upper Tier II		3,251		3,194		(57		)	4,285		4,244		(41		)
Tier I:
	A	60		60		0			0		0		0
	BBB	1,350		1,238		(112		)	1,684		1,417		(267		)
	BB or lower	535		509		(26		)	584		417		(167		)
Total Tier I		1,945		1,807		(138		)	2,268		1,834		(434		)
Other subordinated - non-banks	BBB	326		351		25			344		361		17
Total		$	5,522	$	5,352	$	(170	)	$	6,897	$	6,439	$	(458	)