INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Available-for-sale Securities

	December 31, 2015
(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		$	17,293		$	1,862		$	0		$	19,155
Municipalities		128			9			0			137
Mortgage- and asset-backed securities		322			33			0			355
Public utilities		1,400			210			10			1,600
Sovereign and supranational		791			180			0			971
Banks/financial institutions		2,321			325			105			2,541
Other corporate		3,337			448			33			3,752
Total yen-denominated		25,592			3,067			148			28,511
Dollar-denominated:
U.S. government and agencies		110			11			0			121
Municipalities		926			151			6			1,071
Mortgage- and asset-backed securities		200			27			0			227
Public utilities		5,464			636			221			5,879
Sovereign and supranational		331			105			0			436
Banks/financial institutions		2,865			634			21			3,478
Other corporate		25,154			1,774			1,302			25,626
Total dollar-denominated		35,050			3,338			1,550			36,838
Total fixed maturities		60,642			6,405			1,698			65,349
Perpetual securities:
Yen-denominated:
Banks/financial institutions		1,581			143			93			1,631
Other corporate		183			22			0			205
Dollar-denominated:
Banks/financial institutions		77			35			1			111
Total perpetual securities		1,841			200			94			1,947
Equity securities:
Yen-denominated		472			19			4			487
Dollar-denominated		8			3			0			11
Total equity securities		480			22			4			498
Total securities available for sale		$	62,963		$	6,627		$	1,796		$	67,794

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, 2016
(In millions)	Cost or Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair   Value
Securities available for sale, carried at fair value:
Fixed maturities:
Yen-denominated:
Japan government and agencies		$	19,715		$	3,950		$	0		$	23,665
Municipalities		142			36			0			178
Mortgage- and asset-backed securities		336			40			0			376
Public utilities		1,497			221			18			1,700
Sovereign and supranational		847			160			0			1,007
Banks/financial institutions		2,514			326			156			2,684
Other corporate		3,591			516			72			4,035
Total yen-denominated		28,642			5,249			246			33,645
Dollar-denominated:
U.S. government and agencies		104			12			0			116
Municipalities		940			161			9			1,092
Mortgage- and asset-backed securities		207			22			0			229
Public utilities		5,584			667			132			6,119
Sovereign and supranational		340			104			0			444
Banks/financial institutions		2,654			533			15			3,172
Other corporate		26,177			2,069			935			27,311
Total dollar-denominated		36,006			3,568			1,091			38,483
Total fixed maturities		64,648			8,817			1,337			72,128
Perpetual securities:
Yen-denominated:
Banks/financial institutions		1,692			100			172			1,620
Other corporate		196			21			0			217
Dollar-denominated:
Banks/financial institutions		51			21			0			72
Total perpetual securities		1,939			142			172			1,909
Equity securities:
Yen-denominated		602			26			48			580
Dollar-denominated		273			16			0			289
Total equity securities		875			42			48			869
Total securities available for sale		$	67,462		$	9,001		$	1,557		$	74,906

Held-to-maturity Securities

	March 31, 2016
(In millions)	Cost or Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair   Value
Securities held to maturity, carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies		$	21,409		$	6,186		$	0		$	27,595
Municipalities		365			122			0			487
Mortgage- and asset-backed securities		37			3			0			40
Public utilities		3,309			282			71			3,520
Sovereign and supranational		2,735			263			11			2,987
Banks/financial institutions		4,566			215			50			4,731
Other corporate		3,094			393			40			3,447
Total yen-denominated		35,515			7,464			172			42,807
Total securities held to maturity		$	35,515		$	7,464		$	172		$	42,807

	December 31, 2015
(In millions)	Cost or Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies		$	20,004		$	3,387		$	0		$	23,391
Municipalities		341			74			0			415
Mortgage- and asset-backed securities		36			2			0			38
Public utilities		3,092			205			94			3,203
Sovereign and supranational		2,555			182			26			2,711
Banks/financial institutions		4,431			168			53			4,546
Other corporate		3,000			260			44			3,216
Total yen-denominated		33,459			4,278			217			37,520
Total securities held to maturity		$	33,459		$	4,278		$	217		$	37,520

Investments Classified by Contractual Maturity Date

The contractual maturities of our investments in fixed maturities at March 31, 2016, 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		$	182		$	192		$	74		$	76
Due after one year through five years		3,305			3,560			712			768
Due after five years through 10 years		11,490			11,675			2,222			2,381
Due after 10 years		36,829			42,681			8,885			9,763
Mortgage- and asset-backed securities		388			444			35			41
Total fixed maturities available for sale		$	52,194		$	58,552		$	11,928		$	13,029
Held to maturity:
Due in one year or less		$	222		$	223		$	0		$	0
Due after one year through five years		1,811			1,904			0			0
Due after five years through 10 years		1,904			2,038			0			0
Due after 10 years		31,541			38,602			0			0
Mortgage- and asset-backed securities		37			40			0			0
Total fixed maturities held to maturity		$	35,515		$	42,807		$	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, 2016, were as follows:

	Aflac Japan						Aflac U.S.
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair   Value
Due in one year or less		$	322		$	284		$	0		$	0
Due after one year through five years		284			295			0			0
Due after 10 years		1,294			1,276			39			54
Total perpetual securities available for sale		$	1,900		$	1,855		$	39		$	54

Investment Exposures Exceeding Ten Percent Shareholders Equity

Investment exposures that individually exceeded 10% of shareholders' equity as of March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016			December 31, 2015
(In millions)	Credit Rating	Amortized Cost	Fair Value	Credit Rating	Amortized Cost	Fair Value
Japan National Government(1)	A	$40,655	$50,636	A	$36,859	$42,025

⁽¹⁾JGBs or JGB-backed securities

Gain (Loss) on Investments

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

	Three Months Ended March 31,
(In millions)	2016			2015
Realized investment gains (losses) on securities:
Fixed maturities:
Available for sale:
Gross gains from sales	$	2		$	49
Gross losses from sales	(4		)	0
Net gains (losses) from redemptions	83			19
Other-than-temporary impairment losses	(12		)	(6		)
Total fixed maturities	69			62
Perpetual securities:
Available for sale:
Net gains (losses) from redemptions	10			0
Other-than-temporary impairment losses	(2		)	0
Total perpetual securities	8			0
Derivatives and other:
Derivative gains (losses)	(4		)	(49		)
Total derivatives and other	(4		)	(49		)
Total realized investment gains (losses)	$	73		$	13

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)	2016		2015
Perpetual securities	$	2	$	0
Corporate bonds	12		2
Bank/financial institution bonds	0		4
Total other-than-temporary impairment losses realized (1)	$	14	$	6

⁽¹⁾ Includes $14 and $6 for the three-month periods ended March 31, 2016 and 2015, respectively, from change in intent to sell securities

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, 2016				December 31, 2015
Unrealized gains (losses) on securities available for sale		$	7,444			$	4,831
Deferred income taxes		(2,760		)		(1,845		)
Shareholders’ equity, unrealized gains (losses) on investment securities		$	4,684			$	2,986

Investments Gross Unrealized Loss Aging

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

	March 31, 2016
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed Maturities:
Municipalities:
Dollar-denominated		$	44		$	9		$	0		$	0		$	44		$	9
Public utilities:
Dollar-denominated		1,491			132			662			38			829			94
Yen-denominated		1,526			89			725			47			801			42
Sovereign and supranational:
Yen-denominated		309			11			97			1			212			10
Banks/financial institutions:
Dollar-denominated		211			15			184			6			27			9
Yen-denominated		2,108			206			949			12			1,159			194
Other corporate:
Dollar-denominated		10,079			935			4,167			282			5,912			653
Yen-denominated		1,786			112			919			39			867			73
Total fixed maturities		17,554			1,509			7,703			425			9,851			1,084
Perpetual securities:
Yen-denominated		815			172			392			49			423			123
Total perpetual securities		815			172			392			49			423			123
Equity securities:
Yen-denominated		355			48			355			48			0			0
Total equity securities		355			48			355			48			0			0
Total		$	18,724		$	1,729		$	8,450		$	522		$	10,274		$	1,207

	December 31, 2015
	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:
Municipalities:
Dollar-denominated		$	80		$	6		$	80		$	6		$	0		$	0
Public utilities:
Dollar-denominated		2,127			221			1,689			132			438			89
Yen-denominated		1,487			104			1,062			73			425			31
Sovereign and supranational:
Yen-denominated		580			26			385			13			195			13
Banks/financial institutions:
Dollar-denominated		366			21			348			11			18			10
Yen-denominated		2,350			158			1,147			14			1,203			144
Other corporate:
Dollar-denominated		13,430			1,302			11,068			770			2,362			532
Yen-denominated		1,151			77			343			5			808			72
Total fixed maturities		21,571			1,915			16,122			1,024			5,449			891
Perpetual securities:
Dollar-denominated		6			1			0			0			6			1
Yen-denominated		645			93			216			12			429			81
Total perpetual securities		651			94			216			12			435			82
Equity securities:
Yen-denominated		191			4			191			4			0			0
Total equity securities		191			4			191			4			0			0
Total		$	22,413		$	2,013		$	16,529		$	1,040		$	5,884		$	973

Investments in Unrealized Loss Position

The following table provides more information on our unrealized loss position on fixed maturities, perpetual securities and equity securities.

		March 31, 2016									December 31, 2015
(In millions)	Investments in an Unrealized Loss Position			Gross Unrealized Losses			Gross Unrealized Losses that are Investment Grade			Investments in an Unrealized Loss Position			Gross Unrealized Losses			Gross Unrealized Losses that are Investment Grade
Fixed Maturities:
Public utilities		16	%		13	%		92	%		16	%		16	%		93	%
Sovereign and supranational		2			1			100			3			1			100
Banks/financial institutions		13			13			46			12			9			59
Other corporate		63			60			64			66			69			86
Total fixed maturities		94			87						97			95
Perpetual securities		4			10			100			3			5			100
Equity securities		2			3						0			0
Total		100	%		100	%					100	%		100	%

Securities Lending Transactions Accounted for as Secured Borrowings

Securities Lending Transactions Accounted for as Secured Borrowings
March 31, 2016
Remaining Contractual Maturity of the Agreements
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Japan government and agencies	$	0	$	392	$	392
Public utilities	109		0		109
Banks/financial institutions	19		0		19
Other corporate	310		0		310
Total borrowings	$	438	$	392	$	830
Gross amount of recognized liabilities for securities lending transactions					$	830
Amounts related to agreements not included in offsetting disclosure in Note 4					$	0

⁽¹⁾ These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.

Securities Lending Transactions Accounted for as Secured Borrowings
December 31, 2015
Remaining Contractual Maturity of the Agreements
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Japan government and agencies	$	0	$	499	$	499
Public utilities	108		0		108
Banks/financial institutions	13		0		13
Other corporate	321		0		321
Total borrowings	$	442	$	499	$	941
Gross amount of recognized liabilities for securities lending transactions					$	941
Amounts related to agreements not included in offsetting disclosure in Note 4					$	0

⁽¹⁾ These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.

Variable Interest Entity, Consolidated

Investments in Variable Interest Entities

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

Investments in Consolidated Variable Interest Entities

	March 31, 2016						December 31, 2015
(In millions)	Cost or Amortized Cost			Fair Value			Cost or Amortized Cost			Fair Value
Assets:
Fixed maturities, available for sale		$	4,110		$	4,861		$	3,739		$	4,554
Perpetual securities, available for sale		244			186			255			228
Equity securities		683			648			363			363
Other investments		20			21			0			0
Other assets		114			114			102			102
Total assets of consolidated VIEs		$	5,171		$	5,830		$	4,459		$	5,247
Liabilities:
Other liabilities		$	175		$	175		$	293		$	293
Total liabilities of consolidated VIEs		$	175		$	175		$	293		$	293

Variable Interest Entity, Not Consolidated

Investments in Variable Interest Entities

VIEs-Not Consolidated

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

Investments in Variable Interest Entities Not Consolidated

	March 31, 2016						December 31, 2015
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturities, available for sale		$	4,908		$	5,291		$	4,731		$	5,093
Perpetual securities, available for sale		266			256			249			253
Fixed maturities, held to maturity		2,651			2,886			2,477			2,636
Total investments in VIEs not consolidated		$	7,825		$	8,433		$	7,457		$	7,982