10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2021

or

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

For the transition period from                      to                     

Commission File Number: 001-07434

Aflac Incorporated

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Georgia			58-1167100
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
1932 Wynnton Road	Columbus,	Georgia	31999
(Address of principal executive offices)			(ZIP Code)

706. 323.3431

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

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

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

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

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

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

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

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 661,528,219 shares of the issuer's common stock were outstanding as of October 19, 2021.

Aflac Incorporated and Subsidiaries

Quarterly Report on Form 10-Q

For the Quarter Ended September 30, 2021

Table of Contents

PART I.		FINANCIAL INFORMATION:	Page
	Item 1.	Financial Statements (Unaudited)
		Consolidated Statements of Earnings   Three Months Ended September 30, 2021 and 2020   Nine Months Ended September 30, 2021 and 2020	1
		Consolidated Statements of Comprehensive Income (Loss)    Three Months Ended September 30, 2021 and 2020   Nine Months Ended September 30, 2021 and 2020	2
		Consolidated Balance Sheets   September 30, 2021, and December 31, 2020	3
		Consolidated Statements of Shareholders' Equity   Three Months Ended March 31, 2021 and 2020    Three Months Ended June 30, 2021 and 2020    Three Months Ended September 30, 2021 and 2020	4
		Consolidated Statements of Cash Flows   Nine Months Ended September 30, 2021 and 2020	8
		Notes to the Consolidated Financial Statements	9
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	70
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	106
	Item 4.	Controls and Procedures	106
PART II.		OTHER INFORMATION:
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	107
	Item 6.	Exhibits	108
Glossary of Selected Terms			110

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

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Aflac Incorporated and Subsidiaries

Consolidated Statements of Earnings

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions, except for share and per-share amounts - Unaudited)	2021			2020			2021			2020
Revenues:
Net premiums, principally supplemental health insurance		$	4,372		$	4,623		$	13,406		$	13,969
Net investment income		991			896			2,908			2,669
Net investment gains (losses)		(171)			108			224			(525)
Other income (loss)		45			38			132			121
Total revenues		5,237			5,665			16,670			16,234
Benefits and expenses:
Benefits and claims, net		2,609			2,985			7,996			8,822
Acquisition and operating expenses:
Amortization of deferred policy acquisition costs		278			292			869			914
Insurance commissions		311			325			952			993
Insurance and other expenses (1)		869			847			2,582			2,382
Interest expense		57			63			181			181
Total acquisition and operating expenses		1,515			1,527			4,584			4,470
Total benefits and expenses		4,124			4,512			12,580			13,292
Earnings before income taxes		1,113			1,153			4,090			2,942
Income taxes		225			(1,303)			804			(884)
Net earnings		$	888		$	2,456		$	3,286		$	3,826
Net earnings per share:
Basic		$	1.33		$	3.45		$	4.84		$	5.33
Diluted		1.32			3.44			4.82			5.31
Weighted-average outstanding common shares used in   computing earnings per share (In thousands):
Basic		668,762			711,698			678,509			717,962
Diluted		671,925			713,793			681,521			720,333
Cash dividends per share		$	.33		$	.28		$	.99		$	.84

(1) Includes expense of $48 and $15 for the nine-month periods ended September 30, 2021 and 2020, respectively, for the early extinguishment of debt.

See the accompanying Notes to the Consolidated Financial Statements.

1

Aflac Incorporated and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions - Unaudited)	2021			2020			2021			2020
Net earnings		$	888		$	2,456		$	3,286		$	3,826
Other comprehensive income (loss) before income taxes:
Unrealized foreign currency translation gains (losses) during    period		(93)			172			(646)			329
Unrealized gains (losses) on fixed maturity securities:
Unrealized holding gains (losses) on fixed maturity securities    during period		(316)			1,420			(800)			26
Reclassification adjustment for (gains) losses on    fixed maturity securities included in net earnings		(13)			(13)			2			132
Unrealized gains (losses) on derivatives during period		2			2			3			(3)
Pension liability adjustment during period		1			(1)			7			(1)
Total other comprehensive income (loss) before income taxes		(419)			1,580			(1,434)			483
Income tax expense (benefit) related to items of other comprehensive    income (loss)		(62)			413			(162)			29
Other comprehensive income (loss), net of income taxes		(357)			1,167			(1,272)			454
Total comprehensive income (loss)		$	531		$	3,623		$	2,014		$	4,280

See the accompanying Notes to the Consolidated Financial Statements.

2

Aflac Incorporated and Subsidiaries

Consolidated Balance Sheets

(In millions, except for share and per-share amounts)	September 30, 2021 (Unaudited)			December 31, 2020
Assets:
Investments and cash:
Fixed maturity securities available for sale, at fair value, (no allowance for credit losses in   2021 and $38 in 2020, amortized cost $84,000 in 2021 and $88,143 in 2020)		$	96,285		$	101,286
Fixed maturity securities available for sale - consolidated variable interest entities, at fair value   (amortized cost $3,228 in 2021 and $3,487 in 2020)		4,437			4,596
Fixed maturity securities held to maturity, at amortized cost, net of allowance   for credit losses of $9 in 2021 and $10 in 2020 (fair value $27,748 in 2021 and $30,399 in 2020)		22,613			24,464
Equity securities, at fair value		1,461			1,283
Commercial mortgage and other loans, net of allowance for credit losses of $165 in 2021 and $180   in 2020 (includes $9,543 in 2021 and $8,964 in 2020 of consolidated variable interest entities)		11,388			10,554
Other investments   (includes $1,272 in 2021 and $826 in 2020 of consolidated variable interest entities)		3,612			2,429
Cash and cash equivalents		6,208			5,141
Total investments and cash		146,004			149,753
Receivables		787			796
Accrued investment income		701			780
Deferred policy acquisition costs		9,714			10,441
Property and equipment, at cost less accumulated depreciation		542			601
Other		2,849			2,715
Total assets		$	160,597		$	165,086
Liabilities and shareholders’ equity:
Liabilities:
Policy liabilities:
Future policy benefits		$	92,434		$	97,783
Unpaid policy claims		4,909			5,187
Unearned premiums		2,814			3,597
Other policyholders’ funds		7,286			7,824
Total policy liabilities		107,443			114,391
Income taxes		4,577			4,661
Payables for return of cash collateral on loaned securities		2,849			964
Notes payable and lease obligations		8,066			7,899
Other		4,110			3,612
Total liabilities		127,045			131,527
Commitments and contingent liabilities (Note 12)
Shareholders’ equity:
Common stock of $.10 par value. In thousands: authorized 1,900,000    shares in 2021 and 2020; issued 1,352,562 shares in 2021 and 1,351,018 shares in 2020		135			135
Additional paid-in capital		2,491			2,410
Retained earnings		40,830			37,984
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains (losses)		(1,760)			(1,109)
Unrealized gains (losses) on fixed maturity securities		9,731			10,361
Unrealized gains (losses) on derivatives		(31)			(34)
Pension liability adjustment		(278)			(284)
Treasury stock, at average cost		(17,566)			(15,904)
Total shareholders’ equity		33,552			33,559
Total liabilities and shareholders’ equity		$	160,597		$	165,086

See the accompanying Notes to the Consolidated Financial Statements.

3

Aflac Incorporated and Subsidiaries

Consolidated Statements of Shareholders’ Equity

(In millions, except for per share amounts - Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Shareholders' Equity
Balance at December 31, 2020	$	135	$	2,410	$	37,984	$	8,934	$	(15,904)	$	33,559
Net earnings	0		0		1,293		0		0		1,293
Unrealized foreign currency translation    gains (losses) during period, net of    income taxes	0		0		0		(565)		0		(565)
Unrealized gains (losses) on fixed maturity    securities during period, net of income    taxes and reclassification adjustments	0		0		0		(1,567)		0		(1,567)
Unrealized gains (losses) on derivatives    during period, net of income taxes	0		0		0		1		0		1
Pension liability adjustment during period,    net of income taxes	0		0		0		4		0		4
Dividends to shareholders   ($.00 per share)	0		0		0		0		0		0
Exercise of stock options	0		9		0		0		0		9
Share-based compensation	0		9		0		0		0		9
Purchases of treasury stock	0		0		0		0		(668)		(668)
Treasury stock reissued	0		10		0		0		18		28
Balance at March 31, 2021	$	135	$	2,438	$	39,277	$	6,807	$	(16,554)	$	32,103
Net earnings	0		0		1,105		0		0		1,105
Unrealized foreign currency translation    gains (losses) during period, net of    income taxes	0		0		0		13		0		13
Unrealized gains (losses) on fixed maturity    securities during period, net of income    taxes and reclassification adjustments	0		0		0		1,198		0		1,198
Unrealized gains (losses) on derivatives    during period, net of income taxes	0		0		0		0		0		0
Pension liability adjustment during period,    net of income taxes	0		0		0		1		0		1
Dividends to shareholders   ($.33 per share)	0		0		(220)		0		0		(220)
Exercise of stock options	0		2		0		0		0		2
Share-based compensation	0		20		0		0		0		20
Purchases of treasury stock	0		0		0		0		(500)		(500)
Treasury stock reissued	0		5		0		0		8		13
Balance at June 30, 2021	$	135	$	2,465	$	40,162	$	8,019	$	(17,046)	$	33,735

See the accompanying Notes to the Consolidated Financial Statements.

(continued)

4

Aflac Incorporated and Subsidiaries

Consolidated Statements of Shareholders’ Equity (continued)

(In millions, except for per share amounts - Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Shareholders' Equity
Balance at June 30, 2021	$	135	$	2,465	$	40,162	$	8,019	$	(17,046)	$	33,735
Net earnings	0		0		888		0		0		888
Unrealized foreign currency translation    gains (losses) during period, net of    income taxes	0		0		0		(99)		0		(99)
Unrealized gains (losses) on fixed maturity    securities during period, net of income    taxes and reclassification adjustments	0		0		0		(261)		0		(261)
Unrealized gains (losses) on derivatives    during period, net of income taxes	0		0		0		2		0		2
Pension liability adjustment during period,    net of income taxes	0		0		0		1		0		1
Dividends to shareholders   ($.33 per share)	0		0		(220)		0		0		(220)
Exercise of stock options	0		2		0		0		0		2
Share-based compensation	0		16		0		0		0		16
Purchases of treasury stock	0		0		0		0		(527)		(527)
Treasury stock reissued	0		8		0		0		7		15
Balance at September 30, 2021	$	135	$	2,491	$	40,830	$	7,662	$	(17,566)	$	33,552

See the accompanying Notes to the Consolidated Financial Statements.

(continued)

5

Aflac Incorporated and Subsidiaries

Consolidated Statements of Shareholders’ Equity (continued)

(In millions, except for per share amounts - Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Shareholders' Equity
Balance at December 31, 2019	$	135	$	2,313	$	34,291	$	6,615	$	(14,395)	$	28,959
Cumulative effect of change in accounting   principle - Accounting Standards Update (ASU)   2016-13, net of income taxes (1)	0		0		(56)		0		0		(56)
Cumulative effect of change in accounting   principle - ASU 2019-04, net of income taxes (1)	0		0		0		848		0		848
Balance at January 1, 2020	135		2,313		34,235		7,463		(14,395)		29,751
Net earnings	0		0		566		0		0		566
Unrealized foreign currency translation    gains (losses) during period, net of    income taxes	0		0		0		80		0		80
Unrealized gains (losses) on fixed maturity    securities during period, net of income    taxes and reclassification adjustments	0		0		0		(3,353)		0		(3,353)
Unrealized gains (losses) on derivatives    during period, net of income taxes	0		0		0		(2)		0		(2)
Pension liability adjustment during period,    net of income taxes	0		0		0		0		0		0
Dividends to shareholders   ($.28 per share)	0		0		(202)		0		0		(202)
Exercise of stock options	0		5		0		0		0		5
Share-based compensation	0		7		0		0		0		7
Purchases of treasury stock	0		0		0		0		(476)		(476)
Treasury stock reissued	0		9		0		0		17		26
Balance at March 31, 2020	$	135	$	2,334	$	34,599	$	4,188	$	(14,854)	$	26,402
Net earnings	0		0		805		0		0		805
Unrealized foreign currency translation    gains (losses) during period, net of    income taxes	0		0		0		74		0		74
Unrealized gains (losses) on fixed maturity    securities during period, net of income    taxes and reclassification adjustments	0		0		0		2,489		0		2,489
Unrealized gains (losses) on derivatives    during period, net of income taxes	0		0		0		(1)		0		(1)
Pension liability adjustment during period,    net of income taxes	0		0		0		0		0		0
Dividends to shareholders   ($.28 per share)	0		0		(200)		0		0		(200)
Exercise of stock options	0		1		0		0		0		1
Share-based compensation	0		16		0		0		0		16
Purchases of treasury stock	0		0		0		0		(189)		(189)
Treasury stock reissued	0		7		0		0		16		23
Balance at June 30, 2020	$	135	$	2,358	$	35,204	$	6,750	$	(15,027)	$	29,420

(1) See Note 1 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.

See the accompanying Notes to the Consolidated Financial Statements.

(continued)

6

Aflac Incorporated and Subsidiaries

Consolidated Statements of Shareholders’ Equity (continued)

(In millions, except for per share amounts - Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Shareholders' Equity
Balance at June 30, 2020	$	135	$	2,358	$	35,204	$	6,750	$	(15,027)	$	29,420
Net earnings	0		0		2,456		0		0		2,456
Unrealized foreign currency translation    gains (losses) during period, net of    income taxes	0		0		0		179		0		179
Unrealized gains (losses) on fixed maturity    securities during period, net of income    taxes and reclassification adjustments	0		0		0		988		0		988
Unrealized gains (losses) on derivatives    during period, net of income taxes	0		0		0		1		0		1
Pension liability adjustment during period,    net of income taxes	0		0		0		(1)		0		(1)
Dividends to shareholders   ($.28 per share)	0		0		(200)		0		0		(200)
Exercise of stock options	0		2		0		0		0		2
Share-based compensation	0		16		0		0		0		16
Purchases of treasury stock	0		0		0		0		(400)		(400)
Treasury stock reissued	0		7		0		0		11		18
Balance at September 30, 2020	$	135	$	2,383	$	37,460	$	7,917	$	(15,416)	$	32,479

See the accompanying Notes to the Consolidated Financial Statements.

7

Aflac Incorporated and Subsidiaries

Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
(In millions - Unaudited)	2021			2020
Cash flows from operating activities:
Net earnings		$	3,286		$	3,826
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Change in receivables and advance premiums		22			12
Capitalization of deferred policy acquisition costs		(778)			(870)
Amortization of deferred policy acquisition costs		869			914
Increase in policy liabilities		770			1,601
Change in income tax liabilities		325			(1,509)
Net investment (gains) losses		(224)			525
Other, net		(89)			102
Net cash provided (used) by operating activities		4,181			4,601
Cash flows from investing activities:
Proceeds from investments sold or matured:
Available-for-sale fixed maturity securities		2,719			2,688
Equity securities		210			217
Held-to-maturity fixed maturity securities		2			3
Commercial mortgage and other loans		2,625			1,115
Costs of investments acquired:
Available-for-sale fixed maturity securities		(4,187)			(3,710)
Equity securities		(458)			(275)
Commercial mortgage and other loans		(3,434)			(2,554)
Other investments, net		(929)			(405)
Settlement of derivatives, net		171			15
Cash received (pledged or returned) as collateral, net		2,123			(420)
Other, net		(13)			(185)
Net cash provided (used) by investing activities		(1,171)			(3,511)
Cash flows from financing activities:
Purchases of treasury stock		(1,676)			(1,037)
Proceeds from borrowings		1,153			1,545
Principal payments under debt obligations		(700)			(350)
Dividends paid to shareholders		(647)			(580)
Change in investment-type contracts, net		(25)			(7)
Treasury stock reissued		13			27
Other, net		(15)			(29)
Net cash provided (used) by financing activities		(1,897)			(431)
Effect of exchange rate changes on cash and cash equivalents		(46)			8
Net change in cash and cash equivalents		1,067			667
Cash and cash equivalents, beginning of period		5,141			4,896
Cash and cash equivalents, end of period		$	6,208		$	5,563
Supplemental disclosures of cash flow information:
Income taxes paid		$	478		$	626
Interest paid		146			131
Noncash interest		36			47
Noncash financing activities:
Lease obligations		36			31
Treasury stock issued for:
Associate stock bonus		16			12
Shareholder dividend reinvestment		23			22
Share-based compensation grants		4			6

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 (U.S.) and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac) in the U.S. and through Aflac Life Insurance Japan Ltd. (ALIJ) in Japan. The Company’s operations consist of two reportable business segments: Aflac U.S., which includes Aflac, and Aflac Japan, which includes ALIJ. American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. With the exception of group dental and vision products administered by Argus Dental & Vision, Inc. (Argus) and certain group life insurance products, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. The Company's insurance operations in the U.S. and Japan service the two markets for the Company's insurance business. Aflac Japan's revenues, including net gains and losses on its investment portfolio, accounted for 69% and 68% of the Company's total revenues in the nine-month periods ended September 30, 2021 and 2020, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 82% at September 30, 2021, compared with 83% at December 31, 2020.

Basis of Presentation

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

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

In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of September 30, 2021 and December 31, 2020, the consolidated statements of earnings and comprehensive income (loss) for the three- and nine-month periods ended September 30, 2021 and 2020, the consolidated statement of shareholders' equity for the three-month periods ended March 31, 2021 and 2020, June 30, 2021 and 2020, and September 30, 2021 and 2020, and the consolidated statement of cash flows for the nine-month periods ended September 30, 2021 and 2020. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report).

COVID-19: The impact of the COVID-19 global pandemic on the Company continues to evolve, and its future effects remain uncertain. The Company took prompt action at the beginning of the pandemic to strengthen its capital and liquidity position, and continues to monitor its investment portfolios to adjust to market conditions, including the continuing recovery and inflation expectations. Both Aflac Japan and Aflac U.S. have accelerated investments in digital initiatives to improve productivity, efficiency and customer service over the long term.

9

The Company continues to closely monitor the effects and risks of COVID-19, including its variants, to assess its impact on economic conditions in Japan and the U.S. and on the Company's business, financial condition, results of operations, liquidity and capital position.

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

New Accounting Pronouncements

Accounting Pronouncements Pending Adoption

ASU 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by:

ASU 2019-09 Financial Services - Insurance: Effective Date

ASU 2020-11 Financial Services - Insurance: Effective Date and Early Application

In August 2018, the FASB issued amendments that will significantly change how insurers account for long-duration contracts. The amendments will change existing recognition, measurement, presentation, and disclosure requirements. Issues addressed in the new guidance include: 1) a requirement to review and, if there is a change, update assumptions for the liability for future policy benefits at least annually, and to update the discount rate assumption quarterly, 2) accounting for market risk benefits at fair value, 3) simplified amortization for deferred acquisition costs, and 4) enhanced financial statement presentation and disclosures.

In November 2019, the FASB issued an amendment extending the effective date for public business entities that meet the definition of an SEC filer, excluding entities eligible to be small reporting companies as defined by the SEC, by one year.

In November 2020, the FASB issued an amendment providing an additional year deferral for all insurance entities due to the impact of COVID-19. The amendments are now effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application of the amendments is permitted.

The Company continues to evaluate the impact of adoption and expects that the adoption will have a significant impact on the Company’s financial position, results of operations, and disclosures. The Company anticipates that the requirement to update assumptions for liability for future policy benefits (LFPB) will have a significant impact on its results of operations, systems, processes and controls and that the requirement to update discount rates will have a significant impact on its equity.

As part of working toward implementation of the updated standard, the Company has made progress on key accounting policy decisions, including processes to identify insurance policy groupings (cohorts) for LFPB measurement and DAC amortization purposes, applicable discount rates, development of liability cash flow and claim expense assumptions, and DAC amortization methodology.

The Company will not early adopt the updated standard and has selected the modified retrospective transition method. Based upon this transition method, the Company currently estimates that the January 1, 2021 transition date (Transition Date) impact from adoption is likely to result in a decrease in accumulated other comprehensive income (AOCI) in a range between $18 billion and $20 billion. This is due to updating the LFPB discount rate assumptions from the rates locked in for reserves held as of the Transition Date to rates determined by reference to the Transition Date market level yields for upper-medium-grade (low credit risk) fixed income instruments (as of December 31, 2020). The variability around the impact of adoption results from the Company making certain estimates, primarily related to the determination of Transition Date market level yields.

The Company has advanced and continues to refine the design of its discount rate methodology for both the U.S. and Japan insurance business. The methodology incorporates constructing a discount rate curve separately for discounting cash flows used to calculate the U.S. and Japan LFPB, with each curve intended to be reflective of the currency, tenor and characteristics of the insurance liabilities. Discount rates comprising each curve will be determined by reference to upper-medium grade (low credit risk) fixed-income instrument yields that are intended to reflect the duration characteristics of the corresponding insurance liabilities. The Company intends to use for these yields single-A rated fixed income instruments with credit ratings based on international rating standards. Where only local ratings are available, the Company intends to select the fixed-income instruments with local ratings that are equivalent to a single-A rating based on international rating standards. The methodology will be designed to prioritize observable inputs based on market data available in the local debt markets where the respective policies were issued in the currency in which the policies are

10

denominated. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company will use various estimation techniques consistent with the fair value guidance in ASC 820, which include, but are not limited to: (i) for tenors where there is less observable market data and/or the observable market data is available for similar instruments, estimating tenor-specific single-A credit spreads and applying them to risk-free government rates; (ii) for tenors where there is very limited or no observable single-A or similar market data, interpolation and extrapolation techniques. Discount rates will be updated each reporting period.

Long duration insurance contracts issued by the Company will be grouped into annual calendar-year cohorts based on the contract issue date, reportable segment, legal entity and product type. Limited pay contracts will be grouped into separate cohorts from other traditional products in the same manner and will be further separated based on their premium payment structures. Riders will be combined with base policies with similar insurance coverage types and the same contract issue years.

In addition to the preliminary policy elections related to cohorts and LFPB discount rates directly impacting Transition Date AOCI, the Company has also advanced the following accounting policies relevant to the post-Transition Date accounting:

•Cash flow assumptions underlying insurance liabilities will be evaluated as to whether an update is needed at least annually in the same fiscal quarter each year. To facilitate the review, experience studies will be performed annually in the consistent quarter year-to-year to substantiate assumptions, including mortality, morbidity, and terminations in future periods.

•Locked-in discount rates used for the computation of interest accretion on LFPB for policies issued on or after January 1, 2021 will be determined for each issue-year cohort as a single discount rate, calculated as the weighted-average of monthly upper-medium grade (low-credit risk) fixed-income instrument forward curves over the calendar year, determined using the methodology described above and weighted using issued annualized premiums for each issue month. The single discount rate for each issue-year cohort will remain unchanged after the calendar year of issue. Locked-in discount rates on the policies held at Transition Date reflect the locked-in rates in existence immediately before the Transition Date.

•For DAC amortization, the Company has made a preliminary election to group insurance policies into cohorts that are consistent with the groupings used in estimating the associated LFPB. DAC will be amortized on a constant-level basis for the grouped contracts over the expected remaining term of the related contracts. For both life and health products issued by Aflac Japan, the constant-level basis used will be units in force, which is a proxy for face amount and insurance in force, respectively. For life products issued by Aflac U.S., the constant level basis used will be face amount of policies in force; for health products issued by Aflac U.S., the constant level basis used will be the number of policies in force.

•The Company has made a preliminary entity-wide election to use locked-in claim expense assumptions determined for each issue-year cohort as a percentage of incurred claims; these assumptions would remain unchanged over the term of the insurance policy.

The Company has created a governance framework and a plan to support implementation of the updated standard. As part of its implementation plan, the Company has also advanced the modernization of its actuarial technology platform to enhance its modeling, data management, experience study and analytical capabilities, increase the end-to-end automation of key reporting and analytical processes and optimize its control framework. The Company has also put in place internal controls related to the new processes created as part of implementing the updated standard and will continue to refine and maturate these internal controls until the formal implementation in the first quarter of 2023.

The Company has recently begun testing its reporting and disclosure capabilities under the new ASU for post-Transition Date accounting periods.

The Company currently has no products with market risk benefits.

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

For additional information on new accounting pronouncements and recent accounting guidance and their impact, if any, on the Company's financial position, results of operations or disclosures, see Note 1 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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2.    BUSINESS SEGMENT INFORMATION

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

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Revenues:
Aflac Japan:
Net earned premiums	$	2,934	$	3,168	$	9,045	$	9,476
Adjusted net investment income (1),(2)	763		663		2,260		1,939
Other income	10		11		32		32
Total adjusted revenue Aflac Japan	3,707		3,842		11,337		11,447
Aflac U.S.:
Net earned premiums	1,393		1,407		4,223		4,348
Adjusted net investment income (3)	191		175		557		523
Other income	32		24		90		78
Total adjusted revenue Aflac U.S.	1,616		1,606		4,870		4,949
Corporate and other (4),(5)	72		87		205		292
Total adjusted revenues	5,395		5,535		16,412		16,688
Net investment gains (losses) (1),(2),(3),(4)	(158)		130		258		(454)
Total revenues	$	5,237	$	5,665	$	16,670	$	16,234

(1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

(2) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

(3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

(4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.

(5) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, are included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

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	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Pretax earnings:
Aflac Japan (1),(2)	$	976	$	747	$	2,867	$	2,442
Aflac U.S. (3)	358		329		1,217		1,082
Corporate and other (4),(5),(6)	(41)		(39)		(144)		(69)
Pretax adjusted earnings (7)	1,293		1,037		3,940		3,455
Net investment gains (losses) (1),(2),(3),(4),(5)	(172)		117		216		(497)
Other income (loss)	(8)		(1)		(66)		(16)
Total earnings before income taxes	$	1,113	$	1,153	$	4,090	$	2,942
Income taxes applicable to pretax adjusted earnings	$	262	$	43	$	771	$	659
Effect of foreign currency translation on after-tax   adjusted earnings	(14)		3		(8)		17

(1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

(2) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

(3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

(4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.

(5) A gain of $14 and $13 for the three-month periods and $41 and $43 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.

(6) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, is included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

(7) Includes $40 and $44 for the three-month periods and $130 and $122 for the nine-month periods ended September 30, 2021, and 2020, respectively, of interest expense on debt.

Assets were as follows:

(In millions)	September 30, 2021			December 31, 2020
Assets:
Aflac Japan		$	131,651		$	137,271
Aflac U.S.		23,304			22,864
Corporate and other		5,642			4,951
Total assets		$	160,597		$	165,086

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3.     INVESTMENTS

Investment Holdings

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

	September 30, 2021
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair   value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	31,549	$	0	$	3,574	$	62	$	35,061
Municipalities	1,224		0		323		5		1,542
Mortgage- and asset-backed securities	310		0		21		1		330
Public utilities	4,584		0		930		2		5,512
Sovereign and supranational	781		0		81		0		862
Banks/financial institutions	7,149		0		834		66		7,917
Other corporate	7,377		0		1,575		22		8,930
Total yen-denominated	52,974		0		7,338		158		60,154
U.S. dollar-denominated:
U.S. government and agencies	155		0		10		0		165
Municipalities	1,217		0		179		1		1,395
Mortgage- and asset-backed securities	932		0		30		0		962
Public utilities	3,887		0		920		4		4,803
Sovereign and supranational	225		0		59		4		280
Banks/financial institutions	3,081		0		745		1		3,825
Other corporate	24,757		0		4,448		67		29,138
Total U.S. dollar-denominated	34,254		0		6,391		77		40,568
Total securities available for sale	$	87,228	$	0	$	13,729	$	235	$	100,722

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	December 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair   value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	32,959	$	0	$	4,182	$	52	$	37,089
Municipalities	1,324		0		374		5		1,693
Mortgage- and asset-backed securities	342		0		27		1		368
Public utilities	4,777		0		1,096		1		5,872
Sovereign and supranational	981		0		108		0		1,089
Banks/financial institutions	7,552		0		886		102		8,336
Other corporate	8,114		0		1,747		37		9,824
Total yen-denominated	56,049		0		8,420		198		64,271
U.S. dollar-denominated:
U.S. government and agencies	245		0		16		0		261
Municipalities	1,154		0		173		2		1,325
Mortgage- and asset-backed securities	667		0		8		5		670
Public utilities	4,013		0		947		15		4,945
Sovereign and supranational	232		0		64		3		293
Banks/financial institutions	2,973		0		758		7		3,724
Other corporate	26,297		38		4,385		251		30,393
Total U.S. dollar-denominated	35,581		38		6,351		283		41,611
Total securities available for sale	$	91,630	$	38	$	14,771	$	481	$	105,882

	September 30, 2021
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity, carried at   amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	21,676	$	3	$	21,673	$	4,868	$	0	$	26,541
Municipalities	346		0		346		107		0		453
Public utilities	45		1		44		13		0		57
Sovereign and supranational	533		5		528		139		0		667
Other corporate	22		0		22		8		0		30
Total yen-denominated	22,622		9		22,613		5,135		0		27,748
Total securities held to maturity	$	22,622	$	9	$	22,613	$	5,135	$	0	$	27,748

15

	December 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity, carried at   amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	23,448	$	3	$	23,445	$	5,625	$	0	$	29,070
Municipalities	377		0		377		122		0		499
Public utilities	48		1		47		14		0		61
Sovereign and supranational	577		6		571		165		0		736
Other corporate	24		0		24		9		0		33
Total yen-denominated	24,474		10		24,464		5,935		0		30,399
Total securities held to maturity	$	24,474	$	10	$	24,464	$	5,935	$	0	$	30,399

(In millions)	September 30, 2021			December 31, 2020
Equity securities, carried at fair value through net earnings:	Fair Value			Fair Value
Equity securities:
Yen-denominated		$	753		$	680
U.S. dollar-denominated		667			603
Other currencies		41			0
Total equity securities		$	1,461		$	1,283

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

During the first nine months of 2021, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During the second and third quarter of 2020, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During the first quarter of 2020, as a result of the adoption of ASU 2019-04, the Company reclassified $6.9 billion (at amortized cost) of pre-payable fixed-maturity securities from the held-to-maturity category to the available-for-sale category. This reclassification resulted in recording in accumulated other comprehensive income a net unrealized gain of $848 million on an after-tax basis.

Contractual and Economic Maturities

The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2021, were as follows:

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(In millions)	Amortized Cost (1)			Fair Value
Available for sale:
Due in one year or less		$	914		$	930
Due after one year through five years		8,302			8,909
Due after five years through 10 years		13,291			15,565
Due after 10 years		63,479			74,026
Mortgage- and asset-backed securities		1,242			1,292
Total fixed maturity securities available for sale		$	87,228		$	100,722
Held to maturity:
Due in one year or less		$	0		$	0
Due after one year through five years		45			49
Due after five years through 10 years		8,753			10,207
Due after 10 years		13,815			17,492
Mortgage- and asset-backed securities		0			0
Total fixed maturity securities held to maturity		$	22,613		$	27,748

(1) Net of allowance for credit losses

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

Investment Concentrations

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

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

	September 30, 2021			December 31, 2020
(In millions)	Credit Rating	Amortized Cost	Fair Value	Credit Rating	Amortized Cost	Fair Value
Japan National Government(1)	A+	$51,953	$60,106	A+	$55,153	$64,657

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

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Net Investment Gains and Losses

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales	$	24	$	7	$	40	$	28
Gross losses from sales	(36)		0		(39)		(46)
Foreign currency gains (losses) on sales and redemptions	(2)		(5)		(21)		(39)
Total sales and redemptions	(14)		2		(20)		(57)
Equity securities	(119)		12		(17)		(106)
Credit losses:
Fixed maturity securities available for sale	27		0		38		(75)
Fixed maturity securities held to maturity	0		0		1		1
Commercial mortgage and other loans	(29)		78		15		(86)
Impairment losses	0		0		(20)		0
Loan commitments	3		64		3		(17)
Reinsurance recoverables and other	0		0		(2)		(2)
Total credit losses	1		142		35		(179)
Derivatives and other:
Derivative gains (losses)	(174)		138		(557)		173
Foreign currency gains (losses)	135		(186)		783		(356)
Total derivatives and other	(39)		(48)		226		(183)
Total net investment gains (losses)	$	(171)	$	108	$	224	$	(525)

The unrealized holding gains, net of losses, recorded as a component of net investment gains and losses for the three-month period ended September 30, 2021, that relate to equity securities still held at the September 30, 2021 reporting date, were $170 million. The unrealized holding losses, net of gains, recorded as a component of net investment gains and losses for the nine-month period ended September 30, 2021, that relate to equity securities still held at the September 30, 2021 reporting date, were $33 million.

Unrealized Investment Gains and Losses

Effect on Shareholders’ Equity

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

(In millions)	September 30, 2021			December 31, 2020
Unrealized gains (losses) on securities available for sale		$	13,494		$	14,290
Deferred income taxes		(3,763)			(3,929)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities		$	9,731		$	10,361

Gross Unrealized Loss Aging

The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the periods ended September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

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	September 30, 2021
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available    for sale:
Japan government and       agencies:
Yen-denominated		$	2,980		$	62		$	342		$	2		$	2,638		$	60
Municipalities:
U.S. dollar-denominated		56			1			56			1			0			0
Yen-denominated		168			5			30			0			138			5
Mortgage- and asset-     backed securities:
Yen-denominated		34			1			0			0			34			1
Public utilities:
U.S. dollar-denominated		195			4			108			2			87			2
Yen-denominated		242			2			182			1			60			1
Sovereign and supranational:
U.S. dollar-denominated		6			4			6			1			0			3
Banks/financial institutions:
U.S. dollar-denominated		152			1			146			1			6			0
Yen-denominated		1,824			66			735			5			1,089			61
Other corporate:
U.S. dollar-denominated		1,731			67			898			17			833			50
Yen-denominated		558			22			106			1			452			21
Total		$	7,946		$	235		$	2,609		$	31		$	5,337		$	204

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	December 31, 2020
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available    for sale:
Japan government and       agencies:
Yen-denominated		$	2,604		$	52		$	2,604		$	52		$	0		$	0
Municipalities:
U.S. dollar-denominated		94			2			94			2			0			0
Yen-denominated		183			5			169			4			14			1
Mortgage- and asset-     backed securities:
U.S. dollar-denominated		360			5			360			5			0			0
Yen-denominated		37			1			37			1			0			0
Public utilities:
U.S. dollar-denominated		326			15			208			7			118			8
Yen-denominated		135			1			135			1			0			0
Sovereign and supranational:
U.S. dollar-denominated		39			3			39			3			0			0
Banks/financial institutions:
U.S. dollar-denominated		82			7			44			1			38			6
Yen-denominated		1,809			102			765			36			1,044			66
Other corporate:
U.S. dollar-denominated		4,499			251			2,157			59			2,342			192
Yen-denominated		613			37			290			13			323			24
Total		$	10,781		$	481		$	6,902		$	184		$	3,879		$	297

Analysis of Securities in Unrealized Loss Positions

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

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

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

However, from time to time the Company identifies certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a

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result, a credit allowance will be calculated. Refer to the Allowance for Credit Losses section below for additional information.

Commercial Mortgage and Other Loans

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

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

(In millions)	September 30, 2021				December 31, 2020
	Amortized Cost		% of Total		Amortized Cost		% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office	$	1,944	16.8	%	$	2,115	19.7	%
Retail	140		1.2		125		1.2
Apartments/Multi-Family	1,666		14.4		1,782		16.6
Industrial	46		0.4		85		.8
Hospitality	1,075		9.3		1,106		10.3
Other	340		3.0		81		.7
Total transitional real estate loans	5,211		45.1		5,294		49.3
Commercial mortgage loans:
Office	395		3.4		401		3.7
Retail	334		3.0		340		3.2
Apartments/Multi-Family	640		5.5		588		5.5
Industrial	478		4.1		391		3.6
Other	14		0.1		0		0.0
Total commercial mortgage loans	1,861		16.1		1,720		16.0
Middle market loans	4,481		38.8		3,720		34.7
Total commercial mortgage and other loans	$	11,553	100.0	%	$	10,734	100.0	%
Allowance for credit losses	(165)				(180)
Total net commercial mortgage and other loans	$	11,388			$	10,554

CMLs and TREs were secured by properties entirely within the U.S. (with the largest concentrations in California (18%), Texas (13%) and Florida (9%)). Middle market loans are issued only to companies domiciled within the U.S. and Canada.

Transitional Real Estate Loans

TREs are commercial mortgage loans that are typically relatively short-term floating rate instruments secured by a first lien on the property. These loans provide funding for properties undergoing a change in their physical characteristics and/or economic profile and do not typically require any principal repayment prior to the maturity date. This loan portfolio is generally considered to be investment grade. As of September 30, 2021, the Company had $645 million in outstanding commitments to fund TREs. These commitments are contingent on the final underwriting and due diligence to be performed.

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Commercial Mortgage Loans

CMLs are typically fixed rate loans on commercial real estate with partial repayment of principal over the life of the loan with the remaining outstanding principal being repaid upon maturity. This loan portfolio is generally considered higher quality investment grade loans. As of September 30, 2021, the Company had no outstanding commitments to fund CMLs. These commitments are contingent on the final underwriting and due diligence to be performed.

Middle Market Loans

MMLs are typically first lien senior secured cash flow loans to small to mid-size companies for working capital, refinancing, acquisition, and recapitalization. These loans are generally considered to be below investment grade. The carrying value for MMLs included $25 million for a short term credit facility that is reflected in other liabilities on the consolidated balance sheets, as of September 30, 2021, and December 31, 2020.

As of September 30, 2021, the Company had commitments of approximately $1.7 billion to fund future MMLs. These commitments are contingent upon the availability of middle market loans that meet the Company's underwriting criteria.

Credit Quality Indicators

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

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

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

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

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The following tables present as of September 30, 2021 the amortized cost basis of TREs, CMLs and MMLs by year of origination and credit quality indicator.

Transitional Real Estate Loans
(In millions)	2021		2020		2019		2018		2017		Total
Loan-to-Value Ratio:
0%-59.99%	$	449	$	55	$	439	$	353	$	77	$	1,373
60%-69.99%	417		136		831		543		182		2,109
70%-79.99%	569		184		443		323		182		1,701
80% or greater	0		28		0		0		0		28
Total	$	1,435	$	403	$	1,713	$	1,219	$	441	$	5,211

Commercial Mortgage Loans
(In millions)	2021		2020		2019		2018		2017		Prior		Total		Weighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%	$	174	$	47	$	559	$	168	$	68	$	561	$	1,577	2.51
60%-69.99%	34		0		87		0		0		138		259		1.97
70%-79.99%	0		0		0		0		0		25		25		1.67
Total	208		47		646		168		68		724		1,861		2.42
Weighted Average DSCR	2.49		1.94		2.55		2.32		2.78		2.30

Middle Market Loans
(In millions)	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
Credit Ratings:
BBB	$	54	$	78	$	51	$	39	$	10	$	3	$	68	$	303
BB	346		347		283		163		106		27		221		1,493
B	357		493		635		323		154		121		170		2,253
CCC	0		19		64		81		79		49		87		379
CC	0		0		0		14		26		0		5		45
C and lower	0		8		0		0		0		0		0		8
Total	$	757	$	945	$	1,033	$	620	$	375	$	200	$	551	$	4,481

Allowance for Credit Losses

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

The credit allowance for held-to-maturity fixed maturity securities and loan receivables is estimated using a PD / LGD method, discounted for the time value of money. For held-to-maturity fixed maturity securities, available-for-sale fixed maturity securities and loan receivables, the Company includes the change in present value due to the passage of time in the change in the allowance for credit losses. The Company’s methodology for estimating credit losses utilizes the contractual maturity date of the financial asset, adjusted when necessary to reflect the expected timing of repayment (such as prepayment options, renewal options, call options, or extension options). The Company applies reasonable and supportable forecasts of macroeconomic variables that impact the determination of PD/LGD over a two-year period for

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held-to-maturity fixed maturity securities and MMLs. The Company reverts to historical loss information over one year, following the two-year forecast period. For the CML and TRE portfolio, the Company applies reasonable and supportable forecasts of macroeconomic variables as well as national and local real-estate market factors to estimate future credit losses where the market factors revert back to historical levels over time with the period being dependent on current market conditions, projected market conditions and difference in the current and historical market levels for each factor. The Company continuously monitors the estimation methodology, due to changes in portfolio composition, changes in underwriting practices and significant events or conditions and makes adjustments as necessary.

The Company’s held-to-maturity fixed maturity portfolio includes Japan Government and Agency securities of $21.5 billion amortized cost as of September 30, 2021 that meet the requirements for zero-credit-loss expectation and therefore these asset classes have been excluded from the current expected credit loss measurement.

An investment in an available-for-sale fixed maturity security is impaired if the fair value falls below amortized cost. The Company regularly reviews its fixed maturity security investments portfolio for declines in fair value. The Company's debt impairment model focuses on the ultimate collection of the cash flows from its investments and whether the Company has the intent to sell or if it is more likely than not the Company would be required to sell the security prior to recovery of its amortized cost. The determination of the amount of impairments under this model is based upon the Company's periodic evaluation and assessment of known and inherent risks associated with the respective securities. Such evaluations and assessments are revised as conditions change and new information becomes available.

When determining the Company's intention to sell a security prior to recovery of its fair value to amortized cost, the Company evaluates facts and circumstances such as, but not limited to, future cash flow needs, decisions to reposition its security portfolio, and risk profile of individual investment holdings. The Company performs ongoing analyses of its liquidity needs, which includes cash flow testing of its policy liabilities, debt maturities, projected dividend payments, and other cash flow and liquidity needs.

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

The Company granted certain loan modifications in its MML and TRE portfolios during the period ended September 30, 2021. As of September 30, 2021, these loan modifications did not have a material impact on the Company’s results of operations.

The Company had no troubled debt restructurings (TDRs) during the period ended September 30, 2021 and an immaterial amount due to COVID-19 during the year ended December 31, 2020.

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

As of September 30, 2021 and December 31, 2020, the Company had an immaterial amount of loans or fixed maturities on nonaccrual status.

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The following table presents the roll forward of the allowance for credit losses by portfolio segment.

(in millions)	Transitional Real Estate Loans		Commercial Mortgage Loans		Middle Market Loans		Held to Maturity Securities		Available for Sale Securities		Reinsurance Recoverables
Three Months Ended September 30, 2021:
Balance at June 30, 2021	$	(41)	$	(22)	$	(76)	$	(8)	$	(26)	$	(13)
(Addition to) release of allowance for credit    losses	(18)		5		(13)		(1)		0		0
Write-offs, net of recoveries	0		0		0		0		26		0
Balance at September 30, 2021	$	(59)	$	(17)	$	(89)	$	(9)	$	0	$	(13)
Three Months Ended September 30, 2020:
Balance at June 30, 2020	$	(66)	$	(42)	$	(134)	$	(9)	$	(38)	$	(11)
(Addition to) release of allowance for credit    losses	13		14		59		0		(1)		0
Write-offs, net of recoveries	0		0		(9)		0		1		0
Balance at September 30, 2020	$	(53)	$	(28)	$	(84)	$	(9)	$	(38)	$	(11)
Nine Months Ended September 30, 2021:
Balance at December 31, 2020	$	(63)	$	(32)	$	(85)	$	(10)	$	(38)	$	(12)
(Addition to) release of allowance for credit    losses	4		15		(4)		1		26		(1)
Write-offs, net of recoveries	0		0		0		0		12		0
Balance at September 30, 2021	$	(59)	$	(17)	$	(89)	$	(9)	$	0	$	(13)
Nine Months Ended September 30, 2020:
Balance at December 31, 2019 (1)	$	(22)	$	(3)	$	(20)	$	0	$	0	$	0
Transition impact to retained earnings	(2)		(8)		(33)		(10)		0		(11)
(Addition to) release of allowance for credit    losses	(29)		(17)		(31)		1		(75)		0
Write-offs, net of recoveries	0		0		0		0		37		0
Balance at September 30, 2020	$	(53)	$	(28)	$	(84)	$	(9)	$	(38)	$	(11)

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

For assets that are subject to the credit loss measurement, the change in credit loss allowance will be significantly impacted by purchases and sales in those assets during the period as well as entering into new non-cancelable loan commitments. The estimate of credit losses for loan commitments as of September 30, 2021 was $32 million.

Other Investments

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

(In millions)	September 30, 2021			December 31, 2020
Other investments:
Policy loans		$	241		$	260
Short-term investments (1)		1,833			1,139
Limited partnerships		1,519			1,004
Other		19			26
Total other investments		$	3,612		$	2,429

(1) Includes securities lending collateral

The Parent Company invests in partnerships that specialize in rehabilitating historic structures or the installation of solar equipment in order to receive federal historic rehabilitation and solar tax credits. These investments are classified as limited partnerships and included in other investments in the consolidated balance sheet. The change in value of each investment is recorded as a reduction to net investment income. Offsetting tax credits generated by these investments are recorded as an income tax benefit in the consolidated statement of earnings.

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As of September 30, 2021, the Company had $1.9 billion in outstanding commitments to fund alternative investments in limited partnerships.

Variable Interest Entities (VIEs)

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

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

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

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

VIEs - Consolidated

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

Investments in Consolidated Variable Interest Entities

	September 30, 2021						December 31, 2020
(In millions)	Amortized Cost (1)			Fair Value			Amortized Cost (1)			Fair Value
Assets:
Fixed maturity securities, available for sale		$	3,228		$	4,437		$	3,487		$	4,596
Commercial mortgage and other loans		9,543			9,723			8,964			9,040
Other investments (2)		1,272			1,272			826			826
Other assets (3)		99			99			133			133
Total assets of consolidated VIEs		$	14,142		$	15,531		$	13,410		$	14,595
Liabilities:
Other liabilities (3)		$	356		$	356		$	231		$	231
Total liabilities of consolidated VIEs		$	356		$	356		$	231		$	231

(1) Net of allowance for credit losses

(2) Consists entirely of alternative investments in limited partnerships

(3) Consists entirely of derivatives

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

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With the exception of its investment in unit trust structures, the underlying collateral assets and funding of the Company's consolidated VIEs are generally static in nature.

Investments in Unit Trust Structures

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

VIEs - Not Consolidated

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

Investments in Variable Interest Entities Not Consolidated

	September 30, 2021						December 31, 2020
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	4,990		$	6,119		$	5,477		$	6,767
Other investments (1)		247			247			178			178
Total investments in VIEs not consolidated		$	5,237		$	6,366		$	5,655		$	6,945

(1) Consists entirely of alternative investments in limited partnerships

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

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

Securities Lending and Pledged Securities

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

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

Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
	September 30, 2021						December 31, 2020
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total		Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Fixed maturity securities:
Japan government and   agencies	$	0	$	1,587	$	1,587	$	0	$	0	$	0
Public utilities	27		0		27		57		0		57
Sovereign and supranational	2		0		2		3		0		3
Banks/financial institutions	81		0		81		63		0		63
Other corporate	1,152		0		1,152		841		0		841
Total borrowings	$	1,262	$	1,587	$	2,849	$	964	$	0	$	964
Gross amount of recognized liabilities for securities    lending transactions					$	2,849					$	964

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

In connection with securities lending, in addition to cash collateral received, the Company received from counterparties securities collateral of $7,969 million and $6,654 million at September 30, 2021 and December 31, 2020, respectively, which may not be sold or re-pledged, unless the counterparty is in default. Such securities collateral is not reflected on the consolidated financial statements.

The Company did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of September 30, 2021, and December 31, 2020, respectively.

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

4.    DERIVATIVE INSTRUMENTS

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

•foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio, with options used on a standalone basis and/or in a collar strategy

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

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

•foreign currency swaps that are associated with VIE bond purchase commitments, and investments in special-purpose entities, including VIEs where the Company is the primary beneficiary

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

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

•bond purchase commitments at the inception of investments in consolidated VIEs.

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

Derivative Types

Foreign currency forwards and options are executed for the Aflac Japan segment in order to hedge the currency risk on the carrying value of certain U.S. dollar-denominated investments. The average maturity of these forwards and options can change depending on factors such as market conditions and types of investments being held. In situations where the maturity of the forwards and options is shorter than the underlying investment being hedged, the Company may enter into new forwards and options near maturity of the existing derivative in order to continue hedging the underlying investment. In forward transactions, Aflac Japan agrees with another party to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. Aflac Japan also executes foreign currency option transactions in a collar strategy, where Aflac Japan agrees with another party to simultaneously purchase put options and sell call options. In the purchased put transactions, Aflac Japan obtains the option to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. In the sold call transactions, Aflac Japan agrees to sell a fixed amount of yen and buy a corresponding amount of U.S. dollars at a specified future date. The combination of purchasing the put option and selling the call option results in no net premium being paid (i.e. a costless or zero-cost collar). The Company also uses one sided foreign currency put options to mitigate the settlement risk on U.S. dollar-denominated assets related to extreme foreign currency rate changes.

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

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

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

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

Bond purchase commitments result from repackaged bond structures that are consolidated VIEs whereby there is a delay in the trade date and settlement date of the bond within the structure to ensure completion of all necessary legal agreements to support the consolidated VIE that issues the repackaged bond. Since the Company has a commitment to purchase the underlying bond at a specified price, the agreement meets the definition of a derivative where the value is derived based on the current market value of the bond compared to the fixed purchase price to be paid on the settlement date.

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Derivative Balance Sheet Classification

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

		September 30, 2021									December 31, 2020
(In millions)				Asset Derivatives			Liability Derivatives						Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative   Type	Notional Amount			Fair Value			Fair Value			Notional Amount			Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps - VIE		$	18		$	0		$	2		$	18		$	0		$	1
Total cash flow hedges		18			0			2			18			0			1
Fair value hedges:
Foreign currency forwards		62			0			3			64			2			0
Foreign currency options		8,410			1			0			8,865			0			0
Total fair value hedges		8,472			1			3			8,929			2			0
Net investment hedge:
Foreign currency forwards		4,996			240			0			5,010			14			84
Foreign currency options		1,954			0			0			2,027			1			0
Total net investment hedge		6,950			240			0			7,037			15			84
Non-qualifying strategies:
Foreign currency swaps		2,250			52			22			2,250			47			81
Foreign currency swaps - VIE		3,141			99			354			2,857			133			230
Foreign currency forwards		14,153			353			872			26,528			386			301
Foreign currency options		3,165			0			0			11,037			0			0
Interest rate swaps		3,500			0			16			0			0			0
Forward bond purchase commitment - VIE		45			0			1			0			0			0
Total non-qualifying strategies		26,254			504			1,265			42,672			566			612
Total derivatives		$	41,694		$	745		$	1,270		$	58,656		$	583		$	697

Cash Flow Hedges

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

Fair Value Hedges

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

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

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

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

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

Fair Value Hedging Relationships

(In millions)		Hedging Derivatives						Hedged Items
Hedging Derivatives	Hedged Items	Total Gains (Losses)		Gains (Losses) Excluded from Effectiveness Testing(1)		Gains (Losses) Included in Effectiveness Testing(2)		Gains (Losses)(2)		Net Investment Gains (Losses) Recognized for Fair Value Hedge
Three Months Ended September 30, 2021:
Foreign currency forwards	Fixed maturity securities	$	(1)	$	0	$	(1)	$	1	$	0
Foreign currency options	Fixed maturity securities	(5)		(5)		0		0		0
Total gains (losses)		$	(6)	$	(5)	$	(1)	$	1	$	0
Nine Months Ended September 30, 2021:
Foreign currency forwards	Fixed maturity securities	$	(5)	$	0	$	(5)	$	5	$	0
Foreign currency options	Fixed maturity securities	(16)		(15)		(1)		4		3
Total gains (losses)		$	(21)	$	(15)	$	(6)	$	9	$	3
Three Months Ended September 30, 2020:
Foreign currency forwards	Fixed maturity securities	$	1	$	0	$	1	$	(1)	$	0
Foreign currency options	Fixed maturity securities	(2)		(2)		0		0		0
Total gains (losses)		$	(1)	$	(2)	$	1	$	(1)	$	0
Nine Months Ended September 30, 2020:
Foreign currency forwards	Fixed maturity securities	$	(15)	$	(8)	$	(7)	$	8	$	1
Foreign currency options	Fixed maturity securities	(4)		(3)		(1)		1		0
Total gains (losses)		$	(19)	$	(11)	$	(8)	$	9	$	1

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

(2) Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month and nine-month periods ended September 30, 2021 and 2020, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial.

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

(In millions)	Carrying Amount of the Hedged Assets/(Liabilities)(1)					Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
		September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Fixed maturity securities		$	3,261	$	4,331	$	216	$	237

(1) The balance includes hedging adjustment on discontinued hedging relationships of $216 in 2021 and $237 in 2020.

Net Investment Hedge

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

The Company's net investment hedge was effective during the three- and nine-month periods ended September 30, 2021 and 2020, respectively.

Non-qualifying Strategies

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

As of September 30, 2021, the Parent Company had $2.3 billion notional amount of cross-currency interest rate swap agreements related to certain of its U.S. dollar-denominated senior notes to effectively convert a portion of the interest on the notes from U.S dollar to Japanese yen. Changes in the values of these swaps are recorded through current period earnings. For additional information regarding these swaps, see Note 9 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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

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

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Impact of Derivatives and Hedging Instruments

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

	Three Months Ended September 30,
	2021										2020
(In millions)	Net Investment Income (1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)			Net Investment Income (1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	0		$	(1)			$	1		$	0		$	0			$	2
Total cash flow hedges		0			(1)		(3)		1			0			0		(3)		2
Fair value hedges:
Foreign currency forwards (3)					0										0
Foreign currency options (3)					(5)										(2)
Interest rate swaptions (3)		(1)			(1)				1			0			0				0
Total fair value hedges		(1)			(6)				1			0			(2)				0
Net investment hedge:
Non-derivative hedging           instruments					0				41						0				(51)
Foreign currency forwards					(42)				55						(16)				(91)
Foreign currency options					(1)				0						(2)				0
Total net investment hedge					(43)				96						(18)				(142)
Non-qualifying strategies:
Foreign currency swaps					6										(27)
Foreign currency swaps - VIE					(36)										40
Foreign currency forwards					(84)										139
Foreign currency options					0										4
Interest rate swaps					(9)										0
Forward bond purchase          commitment- VIE					(1)										2
Total non- qualifying strategies					(124)										158
Total		$	(1)		$	(174)			$	98		$	0		$	138			$	(140)

(1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items.

(2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

(3) Impact of cash flow hedges reported as net investment gains (losses) includes $1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the three-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail).

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	Nine Months Ended September 30,
	2021										2020
(In millions)	Net Investment Income(1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)			Net Investment Income(1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	0		$	(3)			$	2		$	(1)		$	0			$	(4)
Total cash flow hedges		0			(3)		(3)		2			(1)			0		(3)		(4)
Fair value hedges:
Foreign currency forwards(3)					0										(7)
Foreign currency options(3)					(12)										(3)
Interest rate swaptions(3)		(1)			(1)				1			(1)			0				1
Total fair value hedges		(1)			(13)				1			(1)			(10)				1
Net investment hedge:
Non-derivative hedging          instruments					0				237						0				(72)
Foreign currency forwards					7				396						136				(166)
Foreign currency options					(4)				0						(3)				0
Total net investment hedge					3				633						133				(238)
Non-qualifying strategies:
Foreign currency swaps					105										54
Foreign currency swaps - VIE					(115)										(185)
Foreign currency forwards					(527)										133
Foreign currency options					1										(1)
Interest rate swaps					(6)										49
Forward bond purchase   commitment - VIE					(2)										0
Total non-qualifying strategies					(544)										50
Total		$	(1)		$	(557)			$	636		$	(2)		$	173			$	(241)

(1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items.

(2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

(3) Impact of cash flow hedges reported as net investment gains (losses) includes $3 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail).

As of September 30, 2021, $5 million of deferred losses on derivative instruments recorded in accumulated other comprehensive income are expected to be reclassified to earnings during the next twelve months.

Credit Risk Assumed through Derivatives

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

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

As of September 30, 2021, all of the Company's derivative agreement counterparties were investment grade.

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

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

Collateral posted by the Company to third parties for derivative transactions can generally be repledged or resold by the counterparties. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $694 million and $268 million as of September 30, 2021, and December 31, 2020, respectively. If the credit-risk-related contingent features underlying these agreements had been triggered on September 30, 2021, the Company estimates that it would be required to post a maximum of $169 million of additional collateral to these derivative counterparties. The Company is generally allowed to sell or repledge collateral obtained from its derivative counterparties, although it does not typically exercise such rights. (See the Offsetting tables below for collateral posted or received as of the reported balance sheet dates.)

Offsetting of Financial Instruments and Derivatives

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

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

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

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Offsetting of Financial Assets and Derivative Assets

September 30, 2021
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Received			Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	646		$	0		$	646		$	(375)	$	(21)		$	(249)		$	1
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		646			0			646			(375)		(21)			(249)			1
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		99						99											99
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		99						99											99
Total derivative       assets		745			0			745			(375)		(21)			(249)			100
Securities lending    and similar    arrangements		2,827			0			2,827			0		0			(2,827)			0
Total		$	3,572		$	0		$	3,572		$	(375)	$	(21)		$	(3,076)		$	100

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December 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Received			Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	450		$	0		$	450		$	(295)	$	(73)		$	(76)		$	6
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		450			0			450			(295)		(73)			(76)			6
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		133						133											133
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		133						133											133
Total derivative       assets		583			0			583			(295)		(73)			(76)			139
Securities lending    and similar    arrangements		940			0			940			0		0			(940)			0
Total		$	1,523		$	0		$	1,523		$	(295)	$	(73)		$	(1,016)		$	139

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Offsetting of Financial Liabilities and Derivative Liabilities

September 30, 2021
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Pledged			Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	898		$	0		$	898		$	(375)	$	(491)		$	(19)		$	13
OTC - cleared		16			0			16			0		0			(15)			1
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		914			0			914			(375)		(491)			(34)			14
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		356						356											356
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		356						356											356
Total derivative       liabilities		1,270			0			1,270			(375)		(491)			(34)			370
Securities lending    and similar    arrangements		2,849			0			2,849			(2,827)		0			0			22
Total		$	4,119		$	0		$	4,119		$	(3,202)	$	(491)		$	(34)		$	392

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December 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Pledged			Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	466		$	0		$	466		$	(295)	$	(43)		$	(69)		$	59
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		466			0			466			(295)		(43)			(69)			59
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		231						231											231
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		231						231											231
Total derivative       liabilities		697			0			697			(295)		(43)			(69)			290
Securities lending    and similar    arrangements		964			0			964			(940)		0			0			24
Total		$	1,661		$	0		$	1,661		$	(1,235)	$	(43)		$	(69)		$	314

For additional information on the Company's financial instruments, see the accompanying Notes 1, 3 and 5 and Notes 1, 3 and 5 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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5.    FAIR VALUE MEASUREMENTS

Fair Value Hierarchy

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

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.

	September 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at   fair value:
Fixed maturity securities:
Government and agencies		$	33,903		$	1,323		$	0		$	35,226
Municipalities		0			2,937			0			2,937
Mortgage- and asset-backed securities		0			1,042			250			1,292
Public utilities		0			9,792			523			10,315
Sovereign and supranational		0			1,097			45			1,142
Banks/financial institutions		0			11,696			46			11,742
Other corporate		0			37,762			306			38,068
Total fixed maturity securities		33,903			65,649			1,170			100,722
Equity securities		1,210			90			161			1,461
Other investments		1,833			0			0			1,833
Cash and cash equivalents		6,208			0			0			6,208
Other assets:
Foreign currency swaps		0			52			99			151
Foreign currency forwards		0			593			0			593
Foreign currency options		0			1			0			1
Total other assets		0			646			99			745
Total assets		$	43,154		$	66,385		$	1,430		$	110,969
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	22		$	356		$	378
Foreign currency forwards		0			875			0			875
Interest rate swaps		0			16			0			16
Forward bond purchase commitment		0			1			0			1
Total liabilities		$	0		$	914		$	356		$	1,270

40

	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at   fair value:
Fixed maturity securities:
Government and agencies		$	36,032		$	1,318		$	0		$	37,350
Municipalities		0			3,018			0			3,018
Mortgage- and asset-backed securities		0			814			224			1,038
Public utilities		0			10,395			422			10,817
Sovereign and supranational		0			1,334			48			1,382
Banks/financial institutions		0			12,036			24			12,060
Other corporate		0			39,918			299			40,217
Total fixed maturity securities		36,032			68,833			1,017			105,882
Equity securities		1,095			86			102			1,283
Other investments		1,139			0			0			1,139
Cash and cash equivalents		5,141			0			0			5,141
Other assets:
Foreign currency swaps		0			47			133			180
Foreign currency forwards		0			402			0			402
Foreign currency options		0			1			0			1
Total other assets		0			450			133			583
Total assets		$	43,407		$	69,369		$	1,252		$	114,028
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	81		$	231		$	312
Foreign currency forwards		0			385			0			385
Total liabilities		$	0		$	466		$	231		$	697

41

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

	September 30, 2021
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity,     carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	21,673		$	26,304		$	237		$	0		$	26,541
Municipalities		346			0			453			0			453
Public utilities		44			0			57			0			57
Sovereign and    supranational		528			0			667			0			667
Other corporate		22			0			30			0			30
Commercial mortgage and     other loans		11,388			0			0			11,596			11,596
Other investments (1)		19			0			19			0			19
Total assets		$	34,020		$	26,304		$	1,463		$	11,596		$	39,363
Liabilities:
Other policyholders’ funds		$	7,286		$	0		$	0		$	7,175		$	7,175
Notes payable    (excluding leases)		7,937			0			8,416			266			8,682
Total liabilities		$	15,223		$	0		$	8,416		$	7,441		$	15,857

(1) Excludes policy loans of $241 and equity method investments of $1,519, at carrying value

42

	December 31, 2020
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity,    carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	23,445		$	28,810		$	260		$	0		$	29,070
Municipalities		377			0			499			0			499
Public utilities		47			0			61			0			61
Sovereign and    supranational		571			0			736			0			736
Other corporate		24			0			33			0			33
Commercial mortgage and     other loans		10,554			0			0			10,655			10,655
Other investments (1)		26			0			26			0			26
Total assets		$	35,044		$	28,810		$	1,615		$	10,655		$	41,080
Liabilities:
Other policyholders’ funds		$	7,824		$	0		$	0		$	7,709		$	7,709
Notes payable    (excluding leases)		7,745			0			8,396			288			8,684
Total liabilities		$	15,569		$	0		$	8,396		$	7,997		$	16,393

(1) Excludes policy loans of $260 and equity method investments of $1,004, at carrying value

Fair Value of Financial Instruments

Fixed maturity and equity securities

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

A third party pricing vendor has developed valuation models to determine fair values of privately issued securities. Starting in June 2021, these models and associated processes and controls were substantially transitioned to and executed by company personnel. These models are discounted cash flow (DCF) valuation models, but also use information from related markets, specifically the credit default swap (CDS) market to estimate expected cash flows. These models take into consideration any unique characteristics of the securities and make various adjustments to arrive at an appropriate issuer-specific loss adjusted credit curve. This credit curve is then used with the relevant recovery rates to estimate expected cash flows and modeling of additional features, including illiquidity adjustments, if necessary, to price the security by discounting those loss adjusted cash flows. In cases where a credit curve cannot be developed from the specific security features, the valuation methodology takes into consideration other market observable inputs, including:

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

2) issuer-specific CDS spreads

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

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

The pricing data and market quotes the Company obtains from outside sources, including third party pricing services, are reviewed internally for reasonableness. If a fair value appears unreasonable, the Company will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, the Company may compare the inputs to relevant market indices and other performance measurements. Based on management's analysis, the valuation is confirmed or may be revised if there is evidence of a more appropriate estimate of fair value based on available market data. Beginning in the third quarter of 2020, the Company refined these valuation models to explicitly incorporate currency

43

basis swap adjustments (market observable data) to assumed interest rate curves where appropriate. The Company has performed verification of the inputs and calculations in any valuation models to confirm that the valuations represent reasonable estimates of fair value.

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

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

44

	September 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	33,903		$	831		$	0		$	34,734
Internal		0			492			0			492
Total government and agencies		33,903			1,323			0			35,226
Municipalities:
Third party pricing vendor		0			2,114			0			2,114
Internal		0			823			0			823
Total municipalities		0			2,937			0			2,937
Mortgage- and asset-backed securities:
Third party pricing vendor		0			1,021			0			1,021
Broker/other		0			21			250			271
Total mortgage- and asset-backed securities		0			1,042			250			1,292
Public utilities:
Third party pricing vendor		0			4,628			0			4,628
Internal		0			5,163			0			5,163
Broker/other		0			1			523			524
Total public utilities		0			9,792			523			10,315
Sovereign and supranational:
Third party pricing vendor		0			279			0			279
Internal		0			818			0			818
Broker/other		0			0			45			45
Total sovereign and supranational		0			1,097			45			1,142
Banks/financial institutions:
Third party pricing vendor		0			5,191			0			5,191
Internal		0			6,505			0			6,505
Broker/other		0			0			46			46
Total banks/financial institutions		0			11,696			46			11,742
Other corporate:
Third party pricing vendor		0			29,601			0			29,601
Internal		0			8,155			0			8,155
Broker/other		0			6			306			312
Total other corporate		0			37,762			306			38,068
Total securities available for sale		$	33,903		$	65,649		$	1,170		$	100,722
Equity securities, carried at fair value:
Third party pricing vendor		$	1,210		$	90		$	0		$	1,300
Broker/other		0			0			161			161
Total equity securities		$	1,210		$	90		$	161		$	1,461

45

	September 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair  Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	26,304		$	237		$	0		$	26,541
Total government and agencies		26,304			237			0			26,541
Municipalities:
Third party pricing vendor		0			453			0			453
Total municipalities		0			453			0			453
Public utilities:
Third party pricing vendor		0			57			0			57
Total public utilities		0			57			0			57
Sovereign and supranational:
Third party pricing vendor		0			322			0			322
Broker/other		0			345			0			345
Total sovereign and supranational		0			667			0			667
Other corporate:
Third party pricing vendor		0			30			0			30
Total other corporate		0			30			0			30
Total securities held to maturity		$	26,304		$	1,444		$	0		$	27,748

46

	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	36,032		$	1,318		$	0		$	37,350
Total government and agencies		36,032			1,318			0			37,350
Municipalities:
Third party pricing vendor		0			3,018			0			3,018
Total municipalities		0			3,018			0			3,018
Mortgage- and asset-backed securities:
Third party pricing vendor		0			364			0			364
Broker/other		0			450			224			674
Total mortgage- and asset-backed securities		0			814			224			1,038
Public utilities:
Third party pricing vendor		0			10,395			0			10,395
Broker/other		0			0			422			422
Total public utilities		0			10,395			422			10,817
Sovereign and supranational:
Third party pricing vendor		0			1,334			0			1,334
Broker/other		0			0			48			48
Total sovereign and supranational		0			1,334			48			1,382
Banks/financial institutions:
Third party pricing vendor		0			12,036			0			12,036
Broker/other		0			0			24			24
Total banks/financial institutions		0			12,036			24			12,060
Other corporate:
Third party pricing vendor		0			39,886			0			39,886
Broker/other		0			32			299			331
Total other corporate		0			39,918			299			40,217
Total securities available for sale		$	36,032		$	68,833		$	1,017		$	105,882
Equity securities, carried at fair value:
Third party pricing vendor		$	1,095		$	86		$	0		$	1,181
Broker/other		0			0			102			102
Total equity securities		$	1,095		$	86		$	102		$	1,283

47

	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair  Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	28,810		$	260		$	0		$	29,070
Total government and agencies		28,810			260			0			29,070
Municipalities:
Third party pricing vendor		0			499			0			499
Total municipalities		0			499			0			499
Public utilities:
Third party pricing vendor		0			61			0			61
Total public utilities		0			61			0			61
Sovereign and supranational:
Third party pricing vendor		0			736			0			736
Total sovereign and supranational		0			736			0			736
Other corporate:
Third party pricing vendor		0			33			0			33
Total other corporate		0			33			0			33
Total securities held to maturity		$	28,810		$	1,589		$	0		$	30,399

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

Derivatives

The Company uses derivative instruments to manage the risk associated with certain assets. However, the derivative instrument may not be classified in the same fair value hierarchy level as the associated asset. The significant inputs to pricing derivatives are generally observable in the market or can be derived by observable market data. When these inputs are observable, the derivatives are classified as Level 2.

The Company uses present value techniques to value non-option based derivatives. It also uses option pricing models to value option based derivatives. Key inputs are as follows:

Instrument Type	Level 2	Level 3
Interest rate derivatives	Swap yield curves Basic curves Interest rate volatility (1)	Not applicable
Foreign currency exchange rate derivatives - Non-VIES (forwards, swaps and options)	Foreign currency forward rates Swap yield curves Basis curves Foreign currency spot rates Cross foreign currency basis curves Foreign currency volatility (1)	Not applicable
Foreign currency exchange rate derivatives - VIEs (swaps)	Foreign currency spot rates	Swap yield curves (2) Credit default swap curves (2) Basis curves (2) Recovery rates Foreign currency forward rates (2) Foreign cross currency basis curves (2)

(1) Option-based only

(2) Extrapolation beyond the observable limits of the curve(s).

48

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

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

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

For forward bond purchase commitments with VIEs, the fair value of the derivative is based on the difference in the fixed purchase price and the current market value of the related bond prior to the settlement date. Since the bond is typically a public bond with readily available pricing, the derivatives associated with the forward purchase commitment are classified as Level 2 of the fair value hierarchy.

Commercial mortgage and other loans

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

Other investments

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

Other policyholders' funds

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

Notes payable

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

49

Transfers between Hierarchy Levels and Level 3 Rollforward

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3. Derivative assets and liabilities are presented as a net value.

Three Months Ended September 30, 2021
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	258	$	480	$	45	$	38	$	316	$	158	$	(200)	$	1,095
Net investment gains (losses) included in    earnings	0		0		0		0		2		(1)		(57)		(56)
Unrealized gains (losses) included in other    comprehensive income (loss)	(4)		(3)		0		0		(7)		0		0		(14)
Purchases, issuances, sales and   settlements:
Purchases	35		54		0		8		0		12		0		109
Issuances	0		0		0		0		0		0		0		0
Sales	0		0		0		0		0		(8)		0		(8)
Settlements	0		(8)		0		0		0		0		0		(8)
Transfers into Level 3	0		0		0		0		0		0		0		0
Transfers out of Level 3	(39)		0		0		0		(5)		0		0		(44)
Balance, end of period	$	250	$	523	$	45	$	46	$	306	$	161	$	(257)	$	1,074
Changes in unrealized gains (losses)   relating to Level 3 assets and liabilities   still held at the end of the period   included in earnings	$	(4)	$	(3)	$	0	$	0	$	(7)	$	(1)	$	(57)	$	(72)

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Three Months Ended September 30, 2020
	Fixed Maturity Securities								Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Banks/ Financial Institutions		Other Corporate					Foreign Currency Swaps		Total
Balance, beginning of period	$	188	$	322	$	24	$	243	$	86		$	(168)	$	695
Net investment gains (losses) included   in earnings	0		0		0		0		0			23		23
Unrealized gains (losses) included in   other comprehensive income (loss)	3		15		0		24		0			2		44
Purchases, issuances, sales and settlements:
Purchases	0		33		0		1		5			0		39
Issuances	0		0		0		0		0			0		0
Sales	0		0		0		0		(5)			0		(5)
Settlements	0		(2)		0		0		0			0		(2)
Transfers into Level 3	0		0		0		0		0			0		0
Transfers out of Level 3	0		0		0		0		0			0		0
Balance, end of period	$	191	$	368	$	24	$	268	$	86		$	(143)	$	794
Changes in unrealized gains (losses)   relating to Level 3 assets and liabilities   still held at the end of the period   included in earnings	$	0	$	0	$	0	$	0	$	0		$	23	$	23

Nine Months Ended September 30, 2021
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	224	$	422	$	48	$	24	$	299	$	102	$	(98)	$	1,021
Net investment gains (losses) included   in earnings	0		0		0		0		2		21		(158)		(135)
Unrealized gains (losses) included in   other comprehensive income (loss)	(19)		(13)		(3)		(1)		(5)		0		(1)		(42)
Purchases, issuances, sales   and settlements:
Purchases	99		132		0		23		0		29		0		283
Issuances	0		0		0		0		0		17		0		17
Sales	0		0		(23)		0		0		(8)		0		(31)
Settlements	0		(18)		0		0		(17)		0		0		(35)
Transfers into Level 3	0		0		23		0		32		0		0		55
Transfers out of Level 3	(54)		0		0		0		(5)		0		0		(59)
Balance, end of period	$	250	$	523	$	45	$	46	$	306	$	161	$	(257)	$	1,074
Changes in unrealized gains   (losses) relating to Level 3 assets   and liabilities still held at the end   of the period included in earnings	$	(19)	$	(13)	$	(3)	$	(1)	$	(5)	$	21	$	(158)	$	(178)

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Nine Months Ended September 30, 2020
	Fixed Maturity Securities								Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	178	$	224	$	23	$	262	$	80	$	43	$	810
Net investment gains (losses) included    in earnings	0		0		0		0		0		(184)		(184)
Unrealized gains (losses) included in other    comprehensive income (loss)	5		6		0		8		0		(2)		17
Purchases, issuances, sales and settlements:
Purchases	0		129		1		13		12		0		155
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		(6)		0		(6)
Settlements	(1)		(6)		0		0		0		0		(7)
Transfers into Level 3	9		15		0		0		0		0		24
Transfers out of Level 3	0		0		0		(15)		0		0		(15)
Balance, end of period	$	191	$	368	$	24	$	268	$	86	$	(143)	$	794
Changes in unrealized gains (losses) relating    to Level 3 assets and liabilities still held at    the end of the period included in earnings	$	0	$	0	$	0	$	0	$	0	$	(184)	$	(184)

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Fair Value Sensitivity

Level 3 Significant Unobservable Input Sensitivity

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

September 30, 2021
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	250	Consensus pricing	Offered quotes	N/A			(a)
Public utilities		523		Discounted cash flow	Credit spreads	N/A			(a)
Sovereign and supranational		45		Discounted cash flow	Historical volatility	N/A			(a)
Banks/financial institutions		46		Consensus pricing	Offered quotes	N/A			(a)
Other corporate		306		Discounted cash flow	Credit spreads	N/A			(a)
Equity securities		161		Net asset value	Offered quotes	N/A			(a)
Other assets:
Foreign currency swaps		34		Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
					CDS spreads	23 bps	-	124 bps
		65		Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
Total assets		$	1,430
Liabilities:
Other liabilities:
Foreign currency swaps		$	167	Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
					CDS spreads	23 bps	-	182 bps
		189		Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
Total liabilities		$	356

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

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

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

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December 31, 2020
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	224	Consensus pricing	Offered quotes	N/A			(a)
Public utilities		422		Discounted cash flow	Credit spreads	N/A			(a)
Sovereign and supranational		48		Discounted cash flow	Historical volatility	N/A			(a)
Banks/financial institutions		24		Consensus pricing	Offered quotes	N/A			(a)
Other corporate		299		Discounted cash flow	Credit spreads	N/A			(a)
Equity securities		102		Net asset value	Offered quotes	N/A			(a)
Other assets:
Foreign currency swaps		69		Discounted cash flow	Interest rates (USD)	.93%	-	1.40%	(b)
					Interest rates (JPY)	.05%	-	.43%	(c)
					CDS spreads	22 bps	-	128 bps
		64		Discounted cash flow	Interest rates (USD)	.93%	-	1.40%	(b)
					Interest rates (JPY)	.05%	-	.43%	(c)
Total assets		$	1,252
Liabilities:
Other liabilities:
Foreign currency swaps		$	160	Discounted cash flow	Interest rates (USD)	.93%	-	1.12%	(b)
					Interest rates (JPY)	.05%	-	.35%	(c)
					CDS spreads	41 bps	-	140 bps
		71		Discounted cash flow	Interest rates (USD)	.93%	-	1.12%	(b)
					Interest rates (JPY)	.05%	-	.35%	(c)
Total liabilities		$	231

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

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

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

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

Net Asset Value

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

Offered Quotes

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

Interest Rates and CDS Spreads

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

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

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

For additional information on the Company's investments and financial instruments, see the accompanying Notes 1, 3 and 4 and Notes 1, 3 and 4 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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6.    POLICY LIABILITIES

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

	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)		2021		2020			2021		2020
Unpaid supplemental health claims, beginning of period		$	4,162	$	4,041		$	4,389	$	3,968
Less reinsurance recoverables		37		37			39		31
Net balance, beginning of period		4,125		4,004			4,350		3,937
Add claims incurred during the period related to:
Current year		1,720		1,780			5,302		5,354
Prior years		(215)		(105)			(739)		(408)
Total incurred		1,505		1,675			4,563		4,946
Less claims paid during the period on claims incurred during:
Current year		1,279		1,295			2,947		2,971
Prior years		219		249			1,676		1,811
Total paid		1,498		1,544			4,623		4,782
Effect of foreign exchange rate changes on unpaid claims		(29)		42			(187)		76
Net balance, end of period		4,103		4,177			4,103		4,177
Add reinsurance recoverables		39		40			39		40
Unpaid supplemental health claims, end of period		4,142		4,217			4,142		4,217
Unpaid life claims, end of period		767		759			767		759
Total liability for unpaid policy claims		$	4,909	$	4,976		$	4,909	$	4,976

The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates. The favorable claims development of $739 million for the nine-month period ended September 30, 2021 comprises approximately $369 million from Japan and $370 million from the U.S., representing 49.9% and 50.1% of the total, respectively. Excluding the impact of foreign exchange of a loss of approximately $11 million from December 31, 2020 to September 30, 2021, the favorable claims development in Japan would have been approximately $380 million, representing approximately 51% of the total.

The Company has experienced continued favorable claim trends in 2021 for its core health products in Japan. During the first nine months of 2021, there were impacts from lower utilization of healthcare services, due to the COVID-19 pandemic. This impacted both cancer and medical products, as the Japan population was avoiding doctor and hospital visits and staying home more. This resulted in lower sickness, accident, and cancer incurred claims. In addition, cancer treatment patterns in Japan are continuing to be influenced by significant advances in early-detection techniques and by the increased use of pathological diagnosis rather than clinical exams. Additionally, follow-up radiation and chemotherapy treatments are occurring more often on an outpatient basis. Such changes in treatment not only increase the quality of life and initial outcomes for the patients, but also decrease the average length of each hospital stay, resulting in favorable claims development.

For the majority of the Company's major U.S. accident and health lines of business, including accident, hospital indemnity, cancer, critical illness and short-term disability, the incurred claims development related to prior years reflects favorable claims experience compared to previous estimates. The U.S. portion of the favorable claims development includes $143 million related to refinements in estimates for COVID and non-COVID claims as experience emerged.

7.    REINSURANCE

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

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The Company has recorded a deferred profit liability related to reinsurance transactions. The remaining deferred profit liability of $900 million and $1.0 billion as of September 30, 2021 and December 31, 2020, respectively, is included in future policy benefits in the consolidated balance sheet and is being amortized into income over the expected lives of the policies. The Company has also recorded a reinsurance recoverable for reinsurance transactions, which is included in other assets in the consolidated balance sheet and had a remaining balance of $962 million and $1.0 billion as of September 30, 2021 and December 31, 2020, respectively. The spot yen/dollar exchange rate weakened by approximately 7.5% and ceded reserves decreased approximately 7.2% from December 31, 2020 to September 30, 2021.

The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance which also includes the elimination of inter-segment amounts associated with affiliated reinsurance.

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2021			2020			2021			2020
Direct premium income		$	4,426		$	4,711		$	13,567		$	14,236
Ceded to other companies:
Ceded Aflac Japan closed blocks		(107)			(116)			(329)			(349)
Other		(19)			(22)			(54)			(69)
Assumed from other companies:
Retrocession activities		45			49			138			146
Other		27			1			84			5
Net premium income		$	4,372		$	4,623		$	13,406		$	13,969
Direct benefits and claims		$	2,649		$	3,051		$	8,112		$	9,054
Ceded benefits and change in reserves for future benefits:
Ceded Aflac Japan closed blocks		(94)			(103)			(288)			(314)
Eliminations		8			10			24			29
Other		(9)			(10)			(25)			(54)
Assumed from other companies:
Retrocession activities		42			47			126			133
Eliminations		(8)			(10)			(24)			(29)
Other		21			0			71			3
Benefits and claims, net		$	2,609		$	2,985		$	7,996		$	8,822

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

As a part of its capital contingency plan, the Company entered into a committed reinsurance facility agreement on December 1, 2015 in the amount of approximately ¥120 billion of reserves. This reinsurance facility agreement was renewed in 2020 and is effective until December 31, 2021. There are also additional commitment periods of a one-year duration, each of which are automatically extended unless notification is received from the reinsurer within 60 days prior to the expiration. The reinsurer can withdraw from the committed facility if Aflac's Standard and Poor's (S&P) rating drops below BBB-. As of September 30, 2021, the Company has not executed a reinsurance treaty under this committed reinsurance facility.

8.    NOTES PAYABLE AND LEASE OBLIGATIONS

A summary of notes payable and lease obligations follows:

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(In millions)	September 30, 2021			December 31, 2020
3.625% senior notes paid May 2021		$	0		$	698
3.625% senior notes due November 2024		748			747
3.25% senior notes due March 2025		448			448
1.125% senior sustainability notes due March 2026		397			0
2.875% senior notes due October 2026		298			298
3.60% senior notes due April 2030		991			990
6.90% senior notes due December 2039		221			221
6.45% senior notes due August 2040		255			254
4.00% senior notes due October 2046		394			394
4.750% senior notes due January 2049		541			541
Yen-denominated senior notes and subordinated debentures:
.300% senior notes due September 2025 (principal amount ¥12.4 billion)		110			119
.932% senior notes due January 2027 (principal amount ¥60.0 billion)		534			578
.500% senior notes due December 2029 (principal amount ¥12.6 billion)		112			121
.550% senior notes due March 2030 (principal amount ¥13.3 billion)		118			127
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)		261			282
.633% senior notes due April 2031 (principal amount ¥30.0 billion)		266			0
.843% senior notes due December 2031 (principal amount ¥9.3 billion)		83			90
.750% senior notes due March 2032 (principal amount ¥20.7 billion)		183			198
.844% senior notes due April 2033 (principal amount ¥12.0 billion)		107			0
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)		135			146
.934% senior notes due December 2034 (principal amount ¥9.8 billion)		87			94
.830% senior notes due March 2035 (principal amount ¥10.6 billion)		94			101
1.039% senior notes due April 2036 (principal amount ¥10.0 billion)		88			0
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)		79			85
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)		56			61
1.264% senior notes due April 2041 (principal amount ¥10.0 billion)		89			0
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)		532			575
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion)		267			289
1.560% senior notes due April 2051 (principal amount ¥20.0 billion)		177			0
Yen-denominated loans:
Variable interest rate loan due September 2026 (.41% in 2021 and .43% in 2020,   principal amount ¥5.0 billion)		44			48
Variable interest rate loan due September 2029 (.56% in 2021 and .58% in 2020,   principal amount ¥25.0 billion)		222			240
Finance lease obligations payable through 2027		13			11
Operating lease obligations payable through 2049		116			143
Total notes payable and lease obligations		$	8,066		$	7,899

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

In April 2021, the Parent Company issued five series of senior notes totaling ¥82.0 billion through a public debt offering under its then existing U.S. shelf registration statement. The first series, which totaled ¥30.0 billion, bears interest at a fixed rate of .633% per annum, payable semi-annually, and will mature in April 2031. The second series, which totaled ¥12.0 billion, bears interest at a fixed rate of .844% per annum, payable semi-annually, and will mature in April 2033. The third series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.039% per annum, payable semi-annually, and will mature in April 2036. The fourth series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.264% per annum, payable semi-annually, and will mature in April 2041. The fifth series, which totaled ¥20.0 billion, bears interest at a fixed rate of 1.560% per annum, payable semi-annually, and will mature in April 2051. The notes are redeemable at the Parent Company’s option (i) at any time, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance or (ii) on or after the date that is six months prior to the

58

stated maturity date of the series, in whole or in part, at a redemption price equal to the aggregate principal amount to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption.

In May 2021, the Parent Company used a portion of the net proceeds from the April 2021 issuance of its various series of senior notes to redeem $700 million of the Parent Company's 3.625% senior notes due June 2023.

In March 2021, the Parent Company issued $400 million of senior sustainability notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually, and will mature in March 2026. The Company intends, but is not contractually committed, to allocate an amount at least equivalent to the net proceeds from this issuance exclusively to existing or future investments in, or financing of, assets, businesses or projects that meet the eligibility criteria of the Company's sustainability bond framework described in the offering documentation in connection with such notes. These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 10 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date.

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A summary of the Company's lines of credit as of September 30, 2021 follows:

Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
Aflac Incorporated and Aflac	uncommitted bilateral	364 days	December 17, 2021	$100 million	$0 million	The rate quoted by the bank and agreed upon at the time of borrowing	Up to 3 months	None	General corporate purposes
Aflac Incorporated	unsecured revolving	5 years	March 29, 2024, or the date commitments are terminated pursuant to an event of default	¥100.0 billion	¥0.0 billion	A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period	No later than March 29, 2024	.30% to .50%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	unsecured revolving	5 years	November 18, 2024, or the date commitments are terminated pursuant to an event of default	$1.0 billion	$0.0 billion	A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) for U.S. dollar denominated borrowings or TIBOR for Japanese yen denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin	No later than November 18, 2024	.085% to .225%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	uncommitted bilateral	None specified	None specified	$50 million	$0 million	A rate per annum equal to, at the Company's option, either (a) a rate determined by reference to LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (a) the lender's U.S. dollar short-term commercial loan rate, (b) the federal funds rate plus 1/2 of 1% and (c) one-month LIBOR plus 1%. LIBOR is subject to replacement with Secured Overnight Financing Rate (SOFR) under certain circumstances	Up to 3 months	None	General corporate purposes
Aflac(1)	uncommitted revolving	364 days	November 30, 2021	$250 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	April 4, 2022	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	November 26, 2021	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac New York(1)	uncommitted revolving	364 days	April 8, 2022	$25 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
CAIC(1)	uncommitted revolving	364 days	March 21, 2022	$15 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes

(1) Intercompany credit agreement

(continued)

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Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
Tier One Insurance Company(1)	uncommitted revolving	364 days	March 21, 2022	$0.3 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
AGV Management Services Japan K.K.(1)	uncommitted revolving	364 days	May 2, 2022	¥500 million	¥350 million	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period	No later than May 2, 2022	None	General corporate purposes
Hatch Healthcare K.K.(1)	uncommitted revolving	364 days	January 3, 2022	¥900 million	¥0 million	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period	No later than January 3, 2022	None	General corporate purposes
Hatch Insight K.K.(1)	uncommitted revolving	364 days	January 3, 2022	¥600 million	¥0 million	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period	No later than January 3, 2022	None	General corporate purposes
Aflac GI Holdings LLC(1)	uncommitted revolving	364 days	July 18, 2022	$30 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	No later than July 18, 2022	None	General corporate purposes

(1) Intercompany credit agreement

The Company was in compliance with all of the covenants of its notes payable and lines of credit at September 30, 2021. No events of default or defaults occurred during the nine-month period ended September 30, 2021.

For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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9.    SHAREHOLDERS’ EQUITY

The following table is a reconciliation of the number of shares of the Company's common stock for the nine-month periods ended September 30.

(In thousands of shares)	2021	2020
Common stock - issued:
Balance, beginning of period	1,351,018	1,349,309
Exercise of stock options and issuance of restricted shares	1,544	1,546
Balance, end of period	1,352,562	1,350,855
Treasury stock:
Balance, beginning of period	658,564	622,516
Purchases of treasury stock:
Share repurchase program	32,186	26,108
Other	419	541
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(967)	(1,584)
Exercise of stock options	(240)	(49)
Other	(217)	(251)
Balance, end of period	689,745	647,281
Shares outstanding, end of period	662,817	703,574

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2021		2020		2021		2020
Anti-dilutive share-based awards		0		592		1		857

Share Repurchase Program

During the first nine months of 2021, the Company repurchased 32.2 million shares of its common stock for $1.7 billion as part of its share repurchase program. During the first nine months of 2020, the Company repurchased 26.1 million shares of its common stock for $1.0 billion as part of its share repurchase program. As of September 30, 2021, a remaining balance of 67.0 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its board of directors.

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Reclassifications from Accumulated Other Comprehensive Income

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

Changes in Accumulated Other Comprehensive Income

Three Months Ended September 30, 2021
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at June 30, 2021		$	(1,661)		$	9,992		$	(33)		$	(279)		$	8,019
Other comprehensive    income (loss) before    reclassification		(99)			(251)			0			(5)			(355)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(10)			2			6			(2)
Net current-period other    comprehensive    income (loss)		(99)			(261)			2			1			(357)
Balance at September 30, 2021		$	(1,760)		$	9,731		$	(31)		$	(278)		$	7,662

All amounts in the table above are net of tax.

Three Months Ended September 30, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at June 30, 2020		$	(1,469)		$	8,532		$	(36)		$	(277)		$	6,750
Other comprehensive    income (loss) before    reclassification		179			995			1			(5)			1,170
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(7)			0			4			(3)
Net current-period other    comprehensive    income (loss)		179			988			1			(1)			1,167
Balance at September 30, 2020		$	(1,290)		$	9,520		$	(35)		$	(278)		$	7,917

All amounts in the table above are net of tax.

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Nine Months Ended September 30, 2021
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at December 31, 2020		$	(1,109)		$	10,361		$	(34)		$	(284)		$	8,934
Other comprehensive    income (loss) before    reclassification		(651)			(632)			0			(15)			(1,298)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			2			3			21			26
Net current-period other    comprehensive    income (loss)		(651)			(630)			3			6			(1,272)
Balance at September 30, 2021		$	(1,760)		$	9,731		$	(31)		$	(278)		$	7,662

All amounts in the table above are net of tax.

Nine Months Ended September 30, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at December 31, 2019		$	(1,623)		$	8,548		$	(33)		$	(277)		$	6,615
Cumulative effect of change    in accounting principle -    ASU 2019-04		0			848			0			0			848
Balance at January 1, 2020		$	(1,623)		$	9,396		$	(33)		$	(277)		$	7,463
Other comprehensive    income (loss) before    reclassification		333			20			(2)			(18)			333
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			104			0			17			121
Net current-period other    comprehensive    income (loss)		333			124			(2)			(1)			454
Balance at September 30, 2020		$	(1,290)		$	9,520		$	(35)		$	(278)		$	7,917

All amounts in the table above are net of tax.

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

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Reclassifications Out of Accumulated Other Comprehensive Income

(In millions)	Three Months Ended September 30, 2021
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	13	Net investment gains (losses)
		(3)		Tax (expense) or benefit(1)
		$	10	Net of tax
Unrealized gains (losses) on derivatives		$	(2)	Net investment gains (losses)
		0		Tax (expense) or benefit(1)
		$	(2)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(8)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		2		Tax (expense) or benefit(1)
		$	(6)	Net of tax
Total reclassifications for the period		$	2	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Three Months Ended September 30, 2020
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	13	Net investment gains (losses)
		(6)		Tax (expense) or benefit(1)
		$	7	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(7)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		3		Tax (expense) or benefit(1)
		$	(4)	Net of tax
Total reclassifications for the period		$	3	Net of tax

(1) Based on 21% tax rate, with a cumulative adjustment to the first six months of 2020 due to the effects of Final and Proposed Regulations released on September 29, 2020 by the U.S. Treasury and Internal Revenue Service and addressing, among other items, the allocation of insurance expenses in the calculation of the foreign tax credit limitation. See Note 10 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

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(In millions)	Nine Months Ended September 30, 2021
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	(2)	Net investment gains (losses)
		0		Tax (expense) or benefit(1)
		$	(2)	Net of tax
Unrealized gains (losses) on derivatives		$	(4)	Net investment gains (losses)
		1		Tax (expense) or benefit(1)
		$	(3)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(27)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		6		Tax (expense) or benefit(1)
		$	(21)	Net of tax
Total reclassifications for the period		$	(26)	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Nine Months Ended September 30, 2020
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	(132)	Net investment gains (losses)
		28		Tax (expense) or benefit(1)
		$	(104)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(22)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		5		Tax (expense) or benefit(1)
		$	(17)	Net of tax
Total reclassifications for the period		$	(121)	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

10.    SHARE-BASED COMPENSATION

As of September 30, 2021, the Company has outstanding share-based awards under the Aflac Incorporated Long-Term Incentive Plan (the Plan). Share-based awards are designed to reward employees for their long-term contributions to the Company and provide incentives for them to remain with the Company. The number and frequency of share-based awards are based on competitive practices, operating results of the Company, government regulations, and other factors.

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

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The Plan allows awards to Company employees for incentive stock options (ISOs), non-qualifying stock options (NQSOs), restricted stock, restricted stock units, and stock appreciation rights. Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights. As of September 30, 2021, approximately 36.7 million shares were available for future grants under this plan. The ISOs and NQSOs have a term of 10 years, and the share-based awards generally vest upon time-based conditions or time and performance-based conditions. Time-based vesting generally occurs after three years. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. As of September 30, 2021, the only performance-based awards issued and outstanding were restricted stock awards and units.

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

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

The following table provides information on stock options outstanding and exercisable at September 30, 2021.

	Stock Option Shares (in thousands)		Weighted-Average Remaining Term (in years)		Aggregate Intrinsic Value (in millions)			Weighted-Average Exercise Price Per Share
Outstanding		2,317		3.6		$	49		$	30.87
Exercisable		2,317		3.6		49			30.87

The Company received cash from the exercise of stock options in the amount of $20 million during the first nine months of 2021, compared with $9 million in the first nine months of 2020. The tax benefit realized as a result of stock option exercises and restricted stock releases was $16 million in the first nine months of 2021, compared with $19 million in the first nine months of 2020.

As of September 30, 2021, total compensation cost not yet recognized in the Company's consolidated financial statements related to restricted stock awards and units was $45 million, of which $19 million (1.7 million shares) was related to restricted stock awards and units with a performance-based vesting condition. The Company expects to recognize these amounts over a weighted-average period of approximately 1.7 years. There are no other contractual terms covering restricted stock awards once vested.

The following table summarizes restricted stock activity during the nine-month period ended September 30, 2021.

(In thousands of shares)	Shares	Weighted-Average Grant-Date Fair Value Per Share
Restricted stock at December 31, 2020	2,580		$	48.57
Granted in 2021	1,454		47.70
Canceled in 2021	(102)		48.89
Vested in 2021	(1,317)		45.91
Restricted stock at September 30, 2021	2,615		$	49.20

In February 2021, the Company granted 474 thousand performance-based stock awards, which are contingent on the achievement of the Company's financial performance metrics and its market-based conditions. On the date of grant, the Company estimated the fair value of restricted stock awards with market-based conditions using a Monte Carlo simulation model. The model discounts the value of the stock at the assumed vesting date based on the risk-free interest rate. Based on estimates of actual performance versus the vesting thresholds, the calculated fair value percentage pay-out estimate will be updated each quarter.

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

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For additional information on the Company's long-term share-based compensation plans and the types of share-based awards, see Note 12 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report.

11.    BENEFIT PLANS

The Company has funded defined benefit plans in Japan and the U.S., however the U.S. plan was frozen to new participants effective October 1, 2013. The Company also maintains non-qualified, unfunded supplemental retirement plans that provide defined pension benefits in excess of limits imposed by federal tax law for certain Japanese, U.S. and former employees, however the U.S. plan was frozen to new participants effective January 1, 2015. U.S. employees who are not participants in the defined benefit plan receive a nonelective 401(k) employer contribution. Effective January 1, 2021, the Company increased this nonelective contribution to 4% of an employee's annual cash compensation.

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

Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statement of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) $4 million and $6 million for the three-month periods ended September 30, 2021 and 2020, respectively and $18 million for the nine-month periods ended September 30, 2021 and 2020. Total net periodic cost includes the following components:

	Three Months Ended September 30,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2021			2020			2021			2020			2021			2020
Components of net periodic   benefit cost:
Service cost		$	6		$	6		$	7		$	7		$	0		$	0
Interest cost		1			1			8			9			0			0
Expected return on plan assets		(2)			(2)			(11)			(9)			0			0
Amortization of net actuarial loss		1			1			7			6			0			0
Net periodic (benefit) cost		$	6		$	6		$	11		$	13		$	0		$	0

	Nine Months Ended September 30,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2021			2020			2021			2020			2021			2020
Components of net periodic   benefit cost:
Service cost		$	18		$	18		$	21		$	21		$	0		$	0
Interest cost		3			3			24			25			1			1
Expected return on plan assets		(6)			(6)			(31)			(27)			0			0
Amortization of net actuarial loss		2			3			23			18			2			1
Net periodic (benefit) cost		$	17		$	18		$	37		$	37		$	3		$	2

During the nine months ended September 30, 2021, Aflac Japan contributed approximately $29 million (using the weighted-average yen/dollar exchange rate for the nine-month period ended September 30, 2021) to the Japanese funded defined benefit plan, and Aflac U.S. did not make a contribution to the U.S. funded defined benefit plan.

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For additional information regarding the Company's Japanese and U.S. benefit plans, see Note 14 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

12.    COMMITMENTS AND CONTINGENT LIABILITIES

Effective for 2021, the Company entered into an outsourcing agreement with a technology and consulting company to provide mainframe computer operations for Aflac Japan. As of September 30, 2021, the agreement has a remaining term of four years and an aggregate remaining cost of ¥29.3 billion ($262 million using the September 30, 2021 exchange rate).

Effective for 2021, the Company entered into an outsourcing agreement with a management consulting and technology services company to provide application maintenance and development services for Aflac Japan. As of September 30, 2021, the agreement has a remaining term of six years and an aggregate remaining cost of ¥16.9 billion ($151 million using the September 30, 2021 exchange rate).

Effective for 2021, the Company entered into an enterprise agreement with an information technology and data services company to license software for Aflac Japan. As of September 30, 2021, the agreement has a remaining term of three years and an aggregate remaining cost of ¥1.8 billion ($16 million using the September 30, 2021 exchange rate).

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

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

Guaranty Fund Assessments

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

In 2009, the Pennsylvania Insurance Commissioner placed long-term care insurer Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company (collectively referred to as Penn Treaty), neither of which is affiliated with Aflac, in rehabilitation and petitioned a state court for approval to liquidate Penn Treaty. A final order of liquidation was granted by a recognized judicial authority on March 1, 2017, and as a result, Penn Treaty is in the process of liquidation. The Company estimated and recognized the impact of its share of guaranty fund assessments resulting from the liquidation using a discounted rate of 4.25%. The Company recognized a discounted liability for the assessments of $62 million (undiscounted $94 million), offset by discounted premium tax credits of $48 million (undiscounted $74 million), for a net $14 million impact to net income in the quarter ended March 31, 2017. The Company paid a majority of these assessments by September 30, 2021. The Company used the cost estimate provided as of the liquidation date by the National Organization of Life and Health Guaranty Associations (NOLHGA) to calculate its estimated assessments and tax credits.

Guaranty fund assessments for the nine-month periods ended September 30, 2021 and 2020 were immaterial.

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

FORWARD-LOOKING INFORMATION

The Private Securities Litigation Reform Act of 1995 provides a safe harbor to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. Aflac Incorporated (the Parent Company) and its subsidiaries (collectively with the Parent Company, the Company) desire to take advantage of these provisions. This report contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by Company officials in communications with the financial community and contained in documents filed with the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as the ones listed below or similar words, as well as specific projections of future results, generally qualify as forward-looking. The Company undertakes no obligation to update such forward-looking statements.

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

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

•difficult conditions in global capital markets and the economy, including those caused by COVID-19

•defaults and credit downgrades of investments

•exposure to significant interest rate risk

•concentration of business in Japan

•limited availability of acceptable yen-denominated investments

•foreign currency fluctuations in the yen/dollar exchange rate

•differing judgments applied to investment valuations

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

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

•decline in creditworthiness of other financial institutions

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

•the effects of COVID-19 and its variants (both known and emerging), and any resulting economic effects and government interventions, on the Company's business and financial results

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

•deviations in actual experience from pricing and reserving assumptions

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

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

•subsidiaries' ability to pay dividends to the Parent Company

•inherent limitations to risk management policies and procedures

•the level of sales of Aflac Japan products in the Japan Post channel

•tax rates applicable to the Company may change

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

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

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

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

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

•ability to effectively manage key executive succession

•changes in accounting standards

•level and outcome of litigation

•allegations or determinations of worker misclassification in the United States

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MD&A OVERVIEW

MD&A is intended to inform the reader about matters affecting the financial condition and results of operations of Aflac Incorporated and its subsidiaries for the nine-month periods ended September 30, 2021 and 2020, respectively. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, the following discussion should be read in conjunction with the consolidated financial statements and notes that are included in the Company's annual report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report). In this MD&A, amounts may not foot due to rounding. For additional information on the Company’s performance measures included in this MD&A, see the Glossary of Selected Terms found directly following Part II. Other Information. 

This MD&A is divided into the following sections:

	Page
Executive Summary	72
Results of Operations	76
Investments	91
Hedging Activities	96
Deferred Policy Acquisition Costs	100
Policy Liabilities	100
Benefit Plans	100
Policyholder Protection	100
Off-Balance Sheet Arrangements	100
Liquidity and Capital Resources	101
Critical Accounting Estimates	106

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EXECUTIVE SUMMARY

Company Overview

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

COVID-19

The impact of the COVID-19 global pandemic on the Company continues to evolve, and its future effects remain uncertain. At the onset of the pandemic in 2020, the majority of the Company’s employees in Japan and the U.S. shifted to remote working environments, with returns to office undertaken as warranted by local conditions. Both Aflac Japan and Aflac U.S. have taken measures to address employee health and safety and increase employees’ ability to develop and maintain more flexible working conditions, and operations remained stable throughout the first nine months of 2021. The Company also took prompt action at the beginning of the pandemic to strengthen its capital and liquidity position, and continues to monitor its investment portfolios to adjust to market conditions, including the continuing recovery and inflation expectations. Both Aflac Japan and Aflac U.S. have accelerated investments in digital initiatives to improve productivity, efficiency and customer service over the long term.

In the three-month period ended September 30, 2021, sales for Aflac Japan, in yen terms, were essentially flat, compared to the same period in 2020. Aflac Japan sales in the nine-month period ended September 30, 2021 increased 10.3%, compared to the same period in 2020, reflecting the launch of a new medical product in January 2021 and favorable comparisons due to pandemic conditions in 2020. In the three- and nine-month periods ended September 30, 2021, sales for Aflac U.S. increased 35.0% and 15.5%, respectively, compared to the same periods in 2020, reflecting increased sales activity as a result of the ongoing economic reopening in the U.S. and favorable comparisons due to pandemic conditions in 2020.

Pandemic-related claims and associated reserve increases in both Japan and the U.S. have not materially impacted financial results in the first nine months of 2021 and were more than offset by a reduction in claims related to non-COVID-19 medical needs. The pandemic’s impact on economic conditions have contributed to sales declines, pressuring premium growth rates. This has been partially offset by lower lapse rates in the U.S. The Company has not experienced material realized losses or impairments and credit losses associated with the pandemic. The Company continues to monitor the effects and risks of COVID-19, including its variants, to assess its impact on economic conditions in Japan and the U.S. and on the Company's business, financial condition, results of operations, liquidity and capital position. Those impacts may cause changes to estimates of future earnings, capital deployment, regulatory capital position, segment dividend payout ratios and other measures the Company provided under 2021 Outlook in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of the 2020 Annual Report.

The Company’s efforts and other developments are outlined below.

•Liquidity and Capital Resources

The Company entered the crisis in a strong capital and liquidity position, having maintained capital ratios in Japan and the U.S. at a level designed to absorb a degree of market volatility. The Company has the ability to adjust cash flow management from other sources of liquidity including reinvestment cash flows and selling investments.

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

The Company is committed to maintaining a strong Aflac Japan solvency margin ratio (SMR) and Aflac U.S. risk-based capital (RBC) ratios.

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The Company regularly evaluates adjustments to its foreign currency-hedging program in Aflac Japan to mitigate hedging cost and settlement risk while maintaining a strong SMR, including changes in the level of hedging employed with the U.S dollar-denominated investments. See the Liquidity and Capital Resources section of this MD&A for additional information regarding other potential sources of liquidity and capital resources.

•Investment Portfolio

The Company's investment portfolio was well-positioned entering the crisis, and the Company continues to follow its strategy of investing primarily in fixed maturity securities to generate a reliable stream of income. Fundamental credit analysis and de-risking activity in prior periods contributed to the current quality of the Company’s investments. Economic and market conditions have continued to improve throughout most of 2021. The continued path of the recovery remains uncertain given the potential longer term impacts of the pandemic. This includes structural changes in employment patterns which are impacting multiple sectors of the economy and contributing to disruptions in the global supply chain, triggering price increases across several areas of the broader economy. Supply shortages, upward pressure on wages to attract employees and higher commodity prices have all driven near-term increases in inflation. It remains unclear whether the current elevated levels of inflation are transitory or more lasting, making the ultimate impact on the global economy and markets uncertain, with resulting uncertainty as to the impact on the Company's investments.

•Crisis Management

The Company established command centers in Japan and the U.S. to monitor and communicate pandemic developments to the Company's leadership. The command centers participate in regular updates to the Company's leadership, including government and regulatory actions, operations, employee policies and conditions and distribution status. In addition, updates on cybersecurity are provided, including with respect to the Company's remote workforce. Moreover, the Company's financial leadership group has been meeting more frequently since the onset of the pandemic and has focused on the capital markets, capital and liquidity position, stress testing and any defensive actions that may be necessary.

•Aflac Japan initiatives

Aflac Japan has maintained certain measures implemented at the onset of the pandemic, such as restrictions on travel, working from home, staggered work hours and limitations on the number of personnel attending in-person meetings. As of September 30, 2021, Aflac Japan had approximately 57% of its workforce working remotely. Aflac Japan continues to evaluate return to the office measures; however, throughout the pandemic, Aflac Japan has evaluated its operational capabilities and anticipates that the remote configuration could remain for an indefinite period of time without materially impacting operations.

In June 2021, in response to the Government of Japan's initiative to accelerate vaccinations, Aflac Japan began offering workplace vaccinations to employees, temporary workers and contractors, including employee co-resident spouses, children and relatives who wish to be vaccinated. Aflac Japan also introduced a special paid leave system for employees who wish to receive a COVID-19 vaccination.

Aflac Japan remains focused on generating new business to existing and prospective customers through direct mail and digital methods. Aflac Japan has also accelerated investments in digital and paperless initiatives designed to increase long term productivity, efficiency, customer service and business continuity.

•Aflac U.S. and Corporate and Other initiatives

The Parent Company and Aflac U.S. continue to maintain certain employee and worksite safety measures that were first implemented at the onset of the pandemic, as well as protocols to limit in-person meetings applicable to U.S. employees. As of September 30, 2021, over 80% of U.S. employees were working remotely. The Company's return to worksite for U.S. based employees is expected to be a phased approach that begins in the first quarter of 2022, subject to factors including vaccination rates, the return schedule of school systems and the availability of child care, the number of COVID–19 cases and the COVID–19 replication rate, the emergence of new variants and hospital capacity in areas of the U.S. where the Company has significant operations. For those employees who are working in one of the Company's worksites, safety protocols have been put in place that align with or exceed those recommended by the Centers for Disease Control and Prevention (CDC). After the return to worksite, the Parent Company and Aflac U.S. expect to adopt a workforce model comprised of a mix of full time

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office employees, full time remote employees, and employees who will split their time between office and remote work.

The Parent Company and Aflac U.S. also continue to maintain several actions taken for its employees. These include a commitment to cover the costs of COVID-19 testing and extended paid leave in certain circumstances.

Aflac U.S. policy sales, enrollment and agent recruiting functions are highly dependent upon face-to-face interaction between independent agents and brokers with prospective and new customers and agents. Throughout the pandemic, opportunities for such interaction have been significantly reduced by reactions to the pandemic, such as social distancing, shelter in place orders and work from home initiatives. Notwithstanding the general improvement of economic conditions to date in 2021, the impact of pandemic conditions on Aflac U.S. sales remains subject to uncertainty as the effects of varying levels of vaccination and the emergence of COVID-19 variants continue to develop. Aflac U.S. has accelerated investments in digital initiatives designed to improve long term productivity, efficiency and customer service. Further, Aflac U.S. is in its third year of the build-out of the Consumer Markets business for the digital direct-to-consumer sale of insurance and sales made through that platform have continued to grow.

•Major government initiatives

Government authorities in Japan and the U.S. have implemented several initiatives in response to the COVID-19 pandemic, including actions designed to mitigate the adverse health effects of the virus and those designed to provide broad-based relief and economic support to all aspects of the economy.

In January 2021, in response to the spread of COVID-19, the Government of Japan issued a state of emergency declaration covering 11 prefectures, including Tokyo and Osaka. The declaration was lifted in stages in areas where improvements in infection rates and lower healthcare system utilization were observed, and it was lifted in all areas on March 21, 2021. On April 23, 2021, due to the continued spread of COVID-19, the Government of Japan issued a state of emergency declaration covering four prefectures, including Tokyo and Osaka, from April 25, 2021 until May 11, 2021. This declaration was expanded to ten prefectures and extended until June 20, 2021, due to the emergence of COVID-19 variants and the continued increase in infections and impacts on the healthcare system. On June 20, 2021, the declaration was lifted in nine prefectures, including Tokyo and Osaka, and extended only in Okinawa until July 11. On July 8, 2021, due to a rise in COVID-19 infections, the Government of Japan issued a new state of emergency declaration for Tokyo for the period from July 12, 2021 to August 22, 2021. The state of emergency declaration for Okinawa was also further extended to August 22, 2021. Subsequently, the Government of Japan further extended the state of emergency declaration to 19 prefectures, and extended the emergency declaration period until September 30, 2021. On September 30, 2021, the state of emergency declaration was fully lifted by the Government of Japan. In addition to the restrictions imposed by these emergency declarations, certain local governments continue to request a reduction of the onsite workforce and restraint from non-urgent traveling.

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

Throughout the pandemic, Aflac Japan has also followed the guidance of the FSA in terms of treating customers with care, ensuring ease and timeliness of claims payments and extended coverage for temporary medical facilities and telemedicine in certain circumstances, and waiver of interest on certain policyholder loans. In January 2021, the grace period on premium payments was extended to July 31, 2021 for the policyholders who live in areas under the state of emergency and in February 2021, the scope was expanded to all regions in Japan. Furthermore, in response to the state of emergency declaration in April 2021, in May 2021, in July 2021 and August 2021, the grace period on premium payments was extended to October, 31, 2021, November 30, 2021, January 31, 2022 and February 28, 2022, respectively. Aflac Japan will continue to provide flexibility for policyholders who live in areas under the state of emergency, including extending the payment grace period for a maximum of six months from the state of emergency declaration. Policyholders are required to file for relief through this extension.

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During 2021, in response to fluctuations in COVID-19 infection rates and the declaration of a state of emergency by the Government of Japan, Aflac Japan has responded to requests of the Government of Japan and local governments while also giving priority to customer service quality and business continuity.

In the U.S., initial statewide shelter in place or stay at home orders were lifted although restrictions such as social distancing, mask or vaccination requirements exist in some localities. A September 9, 2021 executive order and related September 24, 2021 guidance issued by the Biden Administration will require COVID-19 vaccination of certain federal contractor employees, except in certain limited circumstances, as well as masking and social distancing measures applicable to such employees and workplace visitors.The Company is reviewing the order and guidance to determine their potential impact on the Company's operations.

Throughout the pandemic, Aflac U.S. has taken steps to comply with COVID-19-related directives issued by state regulatory authorities, including those requiring or requesting premium grace periods. As of September 30, 2021, premium grace periods remained in effect in three states and Puerto Rico. Aflac U.S. experienced some increase in policy lapses in the first nine months of 2021 in certain states where premium grace periods expired. If the premium grace periods continue to expire throughout 2021, Aflac U.S. would expect an increase in lapse rates, and a decrease in corresponding persistency rates.

The U.S. government took action in response to the COVID-19 pandemic by providing broad-based relief and economic support to all aspects of the economy.

The American Rescue Plan (ARP) Act of 2021 was signed into law in March 2021 and was designed to provide approximately $1.9 trillion in financial stimulus in the form of financial aid to individuals, businesses, nonprofits, states, and municipalities. Among other measures, the ARP Act provides funding for vaccines and testing; for states, tribal and local governments; and for small businesses. The ARP Act also expands eligibility for the Paycheck Protection Program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted in March 2020.

Performance Highlights

Total revenues were $5.2 billion in the third quarter of 2021, compared with $5.7 billion in the third quarter of 2020. Net earnings were $888 million, or $1.32 per diluted share in the third quarter of 2021, compared with $2.5 billion, or $3.44 per diluted share, in the third quarter of 2020. Net earnings in the third quarter of 2020 reflects a $1.4 billion benefit primarily from the release of valuation allowances on deferred foreign tax credits, which were allowed due to U.S. tax regulations released in September 2020.

Total revenues were $16.7 billion in the first nine months of 2021, compared with $16.2 billion in the first nine months of 2020. Net earnings were $3.3 billion, or $4.82 per diluted share in the first nine months of 2021, compared with $3.8 billion, or $5.31 per diluted share, in the first nine months of 2020. Net earnings in the first nine months of 2020 reflects a $1.4 billion benefit primarily from the release of valuation allowances on deferred foreign tax credits, which were allowed due to U.S. tax regulations released in September 2020.

Results in the third quarter of 2021 included pretax net investment losses of $171 million, compared with pretax net investment gains of $108 million in the third quarter of 2020. Net investment losses in the third quarter of 2021 included a decrease in credit loss allowances of $1 million; $39 million of net losses from certain derivative and foreign currency gains or losses; $119 million of net losses on equity securities; and $14 million of net losses from sales and redemptions.

Results in the first nine months of 2021 included pretax net investment gains of $224 million, compared with pretax net investment losses of $525 million in the first nine months of 2020. Net investment gains in the first nine months of 2021 included a decrease in credit loss allowances of $35 million; $226 million of net gains from certain derivative and foreign currency gains or losses; $17 million of net losses on equity securities; and $20 million of net losses from sales and redemptions.

The average yen/dollar exchange rate(1) for the three-month period ended September 30, 2021 was 110.11, or 3.5% weaker than the average yen/dollar exchange rate(1) of 106.23 for the same period in 2020. The average yen/dollar exchange rate(1) for the nine-month period ended September 30, 2021 was 108.58, or .9% weaker than the average yen/dollar exchange rate(1) of 107.63 for the same period in 2020.

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Adjusted earnings(2) in the third quarter of 2021 were $1.0 billion, or $1.53 per diluted share, compared with $994 million, or $1.39 per diluted share, in the third quarter of 2020. The weaker yen/dollar exchange rate impacted adjusted earnings per diluted share by $.02. Adjusted earnings(2) in the first nine months of 2021 were $3.2 billion, or $4.65 per diluted share, compared with $2.8 billion, or $3.88 per diluted share, in the first nine months of 2020. The weaker yen/dollar exchange rate impacted adjusted earnings per diluted share by $.01.

Total investments and cash at September 30, 2021 were $146.0 billion, compared with $146.1 billion at September 30, 2020. In the first nine months of 2021, Aflac Incorporated repurchased $1.7 billion, or 32.2 million of its common shares. At September 30, 2021, the Company had 67.0 million remaining shares authorized for repurchase.

Shareholders’ equity was $33.6 billion, or $50.62 per share, at September 30, 2021, compared with $32.5 billion, or $46.16 per share, at September 30, 2020. Shareholders’ equity at September 30, 2021 included a net unrealized gain on investment securities and derivatives of $9.7 billion, compared with a net unrealized gain of $9.5 billion at September 30, 2020. Shareholders’ equity at September 30, 2021 also included an unrealized foreign currency translation loss of $1.8 billion, compared with an unrealized foreign currency translation loss of $1.3 billion at September 30, 2020. The annualized return on average shareholders’ equity in the third quarter of 2021 was 10.6%.

Shareholders’ equity excluding accumulated other comprehensive income (AOCI)(2) (adjusted book value) was $25.9 billion, or $39.06 per share at September 30, 2021, compared with $24.6 billion, or $34.91 per share, at September 30, 2020. The annualized adjusted return on equity (ROE) excluding foreign currency impact(2) in the third quarter of 2021 was 16.2%.

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

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

RESULTS OF OPERATIONS

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

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

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

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

•Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that cannot be predicted or that are outside management’s control. Adjusted revenues are U.S. GAAP total

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revenues excluding adjusted net investment gains and losses. Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest cash flows from derivatives associated with notes payable but excluding any nonrecurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company's underlying business performance. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively.

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

•Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign exchange risks in the Company's Japan segment or in the Corporate and Other segment. These amortized hedge costs/ income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the term of the hedge. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/ income.

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

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

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

•U.S. dollar-denominated investment income excluding foreign currency impact represents amounts excluding foreign currency impact on U.S. dollar-denominated investment income using the average foreign currency exchange rate for the comparable prior year period. The Company considers U.S. dollar-denominated investment income excluding foreign currency impact important as it eliminates the impact of foreign currency

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changes on the Aflac Japan segment results, which are outside management’s control. The most comparable U.S. GAAP financial measure for U.S. dollar-denominated investment income excluding foreign currency impact is the corresponding net investment income amount from the U.S. dollar denominated investments translated to yen.

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

Reconciliation of Net Earnings to Adjusted Earnings(1)

	In Millions				Per Diluted Share				In Millions				Per Diluted Share
	Three Months Ended September 30,								Nine Months Ended September 30,
	2021		2020		2021		2020		2021		2020		2021		2020
Net earnings	$	888	$	2,456	$	1.32	$	3.44	$	3,286	$	3,826	$	4.82	$	5.31
Items impacting net earnings:
Adjusted net investment (gains) losses (2)	172		(117)		.26		(.16)		(216)		497		(.32)		.69
Other and non-recurring (income) loss	8		1		.01		.00		67		16		.10		.02
Income tax (benefit) expense on items excluded from adjusted earnings	(37)		72		(.06)		.10		32		(125)		.05		(.17)
Tax valuation allowance   release (3)	0		(1,418)		.00		(1.99)		0		(1,418)		.00		(1.97)
Adjusted earnings	1,031		994		1.53		1.39		3,169		2,797		4.65		3.88
Current period foreign currency impact (4)	14		N/A		.02		N/A		8		N/A		.01		N/A
Adjusted earnings excluding current period foreign currency impact	$	1,045	$	994	$	1.56	$	1.39	$	3,177	$	2,797	$	4.66	$	3.88

(1) Amounts may not foot due to rounding.

(2) See reconciliation of net investment (gains) losses to adjusted net investment (gains) losses below

(3) One-time tax benefit recognized in the third quarter of 2020 representing the release of valuation allowances on deferred foreign tax credits due to new tax regulations.

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

Reconciling Items

Net Investment Gains and Losses

Reconciliation of Net Investment (Gains) Losses to Adjusted Net Investment (Gains) Losses(1)

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Net investment (gains) losses	$	171	$	(108)	$	(224)	$	525
Items impacting net investment (gains) losses:
Amortized hedge costs	(20)		(51)		(55)		(155)
Amortized hedge income	13		22		45		78
Net interest cash flows from derivatives associated   with certain investment strategies	(6)		7		(23)		7
Interest rate component of the change in fair value   of foreign currency swaps on notes payable	14		13		41		43
Adjusted net investment (gains) losses	$	172	$	(117)	$	(216)	$	497

(1) Amounts may not foot due to rounding.

The Company's investment strategy is to invest primarily in fixed maturity securities to provide a reliable stream of investment income, which is one of the drivers of the Company’s profitability. This investment strategy incorporates asset-liability matching (ALM) to align the expected cash flows of the portfolio to the needs of the Company's liability structure. The Company does not purchase securities with the intent of generating investment gains or losses. However, investment

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gains and losses may be realized as a result of changes in the financial markets and the creditworthiness of specific issuers, tax planning strategies, and/or general portfolio management and rebalancing. The realization of investment gains and losses is independent of the underwriting and administration of the Company's insurance products. Net investment gains and losses excluded from adjusted earnings include the following:

•Securities Transactions

•Credit Losses

•Changes in the Fair Value of Equity Securities

•Certain Derivative and Foreign Currency Activities.

Securities Transactions, Credit Losses and Changes in the Fair Value of Equity Securities

Securities transactions include gains and losses from sales and redemptions of investments where the amount received is different from the amortized cost of the investment. Credit losses include losses for held-to-maturity fixed maturity securities, available-for-sale fixed maturity securities, loan receivables, loan commitments and reinsurance recoverables. Changes in the fair value of equity securities are the result of gains or losses driven by fluctuations in market prices.

Certain Derivative and Foreign Currency Activities

The Company's derivative activities include:

•foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio, with options used on a standalone basis and/or in a collar strategy

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

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

•foreign currency swaps that are associated with VIE bond purchase commitments, and investments in special-purpose entities, including VIEs where the Company is the primary beneficiary

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

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

•bond purchase commitments at the inception of investments in consolidated VIEs.

Gains and losses are recognized as a result of valuing these derivatives, net of the effects of hedge accounting. The Company also excludes from adjusted earnings the accounting impacts of remeasurement associated with changes in the foreign currency exchange rate.

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

Other and Non-recurring Items

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

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

Other items excluded from adjusted earnings included integration costs related to the Company's acquisition of Zurich North America's U.S. Corporate Life and Pensions business; these costs primarily consist of expenditures for legal, accounting, consulting, integration of systems and processes and other similar services. These integration costs amounted to $8 million and $20 million for the three- and nine-month periods ended September 30, 2021, respectively.

The Company considers the costs associated with the early redemption of its debt to be unrelated to the underlying fundamentals and trends in its insurance operations. Additionally, these costs are driven by changes in interest rates subsequent to the issuance of the debt, and the Company considers these interest rate changes to represent economic conditions not directly associated with its insurance operations. In May 2021, the Parent Company used a portion of the net proceeds from its April 2021 issuance of various series of senior notes to redeem $700 million of the its 3.625% senior notes due June 2023. The pretax expense due to the early redemption of these notes was $48 million. In January 2020, the Parent Company used the net proceeds from senior notes issued in December 2019 to redeem $350 million of its 4.00% senior notes due February 2022. The pretax expense due to the early redemption of these notes was $15 million.

Income Taxes

The Company's combined U.S. and Japanese effective income tax rate on pretax earnings was 20.2% for the three-month period ended September 30, 2021, compared with (112.9)% for the same period in 2020. The Company's combined U.S. and Japanese effective income tax rate on pretax earnings was 19.7% for the nine-month period ended September 30, 2021, compared with (30.0)% for the same period in 2020. In 2021, the combined effective tax rate differs from the U.S. statutory rate primarily due to new tax regulations released in the third quarter of 2020 and historic and solar tax credits. In 2020, the combined effective tax rate differs from the U.S. statutory rate primarily due to the release of certain valuation allowances established on the Company's deferred foreign tax credit benefits. The release of these valuation allowances was a result of the issuance of Final and Proposed Regulations issued by the U.S. Treasury and Internal Revenue Service on September 29, 2020, and resulted in a one-time income tax benefit of $1.4 billion in the third quarter of 2020. For additional information, see Note 10 of the Notes to the Consolidated Financial Statements and the Critical Accounting Estimates - Income Taxes section of the MD&A in the 2020 Annual Report.

The Company expects that its effective tax rate for future periods will be approximately 20%. The effective tax rate continues to be subject to future tax law changes both in the U.S. and in foreign jurisdictions. See risk factor entitled "Tax rates applicable to the Company may change" in the 2020 Annual Report for more information.

Foreign Currency Translation

Aflac Japan’s premiums and a significant portion of its investment income are received in yen, and its claims and most expenses are paid in yen. Aflac Japan purchases yen-denominated assets and U.S. dollar-denominated assets, which may be hedged to yen, to support yen-denominated policy liabilities. Yen-denominated income statement accounts are translated to U.S. dollars using a weighted average Japanese yen/U.S. dollar foreign exchange rate, except realized gains and losses on security transactions which are translated at the exchange rate on the trade date of each transaction. Yen-denominated balance sheet accounts are translated to U.S. dollars using a spot Japanese yen/U.S. dollar foreign exchange rate.

RESULTS OF OPERATIONS BY SEGMENT

U.S. GAAP financial reporting requires that a company report financial and descriptive information about operating segments in its annual and interim period financial statements. Furthermore, the Company is required to report a measure of segment profit or loss, certain revenue and expense items, and segment assets. The Company's insurance business consists of two segments: Aflac Japan and Aflac U.S. Aflac Japan is the principal contributor to consolidated earnings. Businesses that are not individually reportable, such as the Parent Company, asset management subsidiaries and other business activities, including reinsurance retrocession activities, are included in the Corporate and other segment. See the Item 1. Business section of the 2020 Annual Report for a summary of each segment's products and distribution channels.

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

•Operating Ratios

•New Annualized Premium Sales

•New Money Yield

•Return on Average Invested Assets

•Average Weekly Producer

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

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AFLAC JAPAN SEGMENT

Aflac Japan Pretax Adjusted Earnings

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

Aflac Japan Summary of Operating Results

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Net premium income	$	2,934	$	3,168	$	9,045	$	9,476
Net investment income: (1)
Yen-denominated investment income	317		331		960		972
U.S. dollar-denominated investment income	465		383		1,355		1,122
Net investment income	783		714		2,315		2,094
Amortized hedge costs related to certain foreign currency exposure   management strategies	20		51		55		155
Adjusted net investment income	763		663		2,260		1,939
Other income (loss)	10		11		32		32
Total adjusted revenues	3,707		3,842		11,337		11,447
Benefits and claims, net	1,938		2,259		6,072		6,651
Adjusted expenses:
Amortization of deferred policy acquisition costs	154		151		496		479
Insurance commissions	175		185		541		553
Insurance and other expenses	462		500		1,360		1,323
Total adjusted expenses	792		835		2,397		2,355
Total benefits and adjusted expenses	2,731		3,094		8,469		9,006
Pretax adjusted earnings	$	976	$	747	$	2,867	$	2,442
Weighted-average yen/dollar exchange rate	110.11		106.23		108.58		107.63

	In Dollars								In Yen
Percentage change over  previous period:	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020		2021		2020		2021		2020
Net premium income	(7.4)	%	(2.3)	%	(4.5)	%	(1.2)	%	(4.0)	%	(3.3)	%	(3.8)	%	(2.6)	%
Adjusted net investment    income	15.1		.6		16.6		3.2		19.7		(.2)		17.9		1.9
Total adjusted revenues	(3.5)		(1.8)		(1.0)		(.5)		.1		(2.8)		(.1)		(1.9)
Pretax adjusted earnings	30.7		(10.9)		17.4		(2.5)		35.8		(11.6)		18.7		(3.8)

(1) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

In the three- and nine-month periods ended September 30, 2021, Aflac Japan's net premium income decreased, in yen terms, due to an anticipated decrease in first sector premiums as savings products reached premium paid-up status and constrained sales during the COVID-19 pandemic. Adjusted net investment income increased in the three- and nine-month periods ended September 30, 2021, primarily due to higher alternative and floating rate income and lower hedge costs.

Annualized premiums in force decreased 4.6% to ¥1.38 trillion as of September 30, 2021, compared with ¥1.44 trillion as of September 30, 2020. The decrease in annualized premiums in force in yen was driven primarily by limited-pay products reaching paid up status and lower sales during the COVID-19 pandemic. Annualized premiums in force, translated into dollars at respective period-end exchange rates, were $12.3 billion at September 30, 2021, compared with $13.6 billion at September 30, 2020.

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

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

Aflac Japan Percentage Changes Over Previous Period

(Yen Operating Results)

For the Periods Ended September 30,

	Including Foreign Currency Changes								Excluding Foreign Currency Changes
	Three Months				Nine Months				Three Months				Nine Months
	2021		2020		2021		2020		2021		2020		2021	2020
Adjusted net investment income	19.7	%	(.2)	%	17.9	%	1.9	%	17.2	%	.4	%	17.2	2.8	%
Total adjusted revenues	.1		(2.8)		(.1)		(1.9)		(.3)		(2.7)		(.2)	(1.8)
Pretax adjusted earnings	35.8		(11.6)		18.7		(3.8)		33.7		(11.1)		18.2	(3.2)

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Ratios to total adjusted revenues:	2021		2020		2021		2020
Benefits and claims, net	52.3	%	58.8	%	53.5	%	58.1	%
Adjusted expenses:
Amortization of deferred policy acquisition costs	4.2		3.9		4.4		4.2
Insurance commissions	4.7		4.8		4.8		4.8
Insurance and other expenses	12.5		13.0		12.0		11.5
Total adjusted expenses	21.4		21.7		21.2		20.6
Pretax adjusted earnings	26.3		19.4		25.3		21.3
Ratios to total premiums:
Benefits and claims, net	66.1	%	71.3	%	67.1	%	70.2	%
Adjusted expenses:
Amortization of deferred policy acquisition costs	5.3		4.8		5.5		5.1

In the three- and nine-month periods ended September 30, 2021, the benefit ratio decreased, compared with the same periods in the prior year. This is primarily due to the continued change in mix of first and third sector business, favorable third sector claim experience, and higher surrenders in Aflac Japan's third sector business. In the three-month period ended September 30, 2021, the adjusted expense ratio decreased mainly due to a decrease in loss adjustment expenses, compared to the same period in the prior year. In the nine-month period ended September 30, 2021, the adjusted expense ratio increased mainly due to an increase in outsourcing expenses related to enhancement of business continuity infrastructure in times of crisis such as the COVID-19 pandemic situation. In total, the pretax adjusted profit margin increased in the three- and nine-month periods ended September 30, 2021 primarily due to lower benefit ratios. For the full year of 2021, the Company will continue to monitor the situation with respect to COVID-19, and potential impacts on the pretax adjusted profit margin and benefit ratio.

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Aflac Japan Sales

The following table presents Aflac Japan’s new annualized premium sales for the periods ended September 30.

	In Dollars												In Yen
	Three Months						Nine Months						Three Months						Nine Months
(In millions of dollars and billions of yen)	2021			2020			2021			2020			2021			2020			2021			2020
New annualized premium sales	$	114		$	119		$	371		$	339		¥	12.6		¥	12.6		¥	40.2		¥	36.4
Increase (decrease) over prior period	(3.8)		%	(31.0)		%	9.4		%	(39.5)		%	.0		%	(32.0)		%	10.3		%	(40.4)		%

The following table details the contributions to Aflac Japan's new annualized premium sales by major insurance product for the periods ended September 30.

	Three Months				Nine Months
	2021		2020		2021		2020
Cancer	49.9	%	55.7	%	48.0	%	55.3	%
Medical	36.3		32.0		39.9		32.3
Income support	.5		.9		.6		1.0
Ordinary life:
WAYS	.7		.8		.7		.7
Child endowment	.3		.4		.3		.4
Other ordinary life (1)	9.0		9.6		9.1		9.6
Other	3.3		.6		1.4		.7
Total	100.0	%	100.0	%	100.0	%	100.0	%

(1) Includes term and whole life

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

Sales of protection-type first sector and third sector products on a yen basis were essentially flat in the third quarter of 2021, compared with the same period in 2020.

Sales of Aflac Japan cancer products in the Japan Post Group channel experienced a material decline beginning in August 2019 which has continued in 2021. Japan Post Group began resuming proactive sales of cancer insurance policies on April 1, 2021 and Aflac Japan continues to strengthen the strategic alliance. The Company expects continued collaboration to further position both companies for long-term growth and a gradual improvement of Japan Post Group cancer insurance sales in the intermediate term. For additional information, see the risk factor entitled "Events related to the ongoing Japan Post investigation and other matters regarding sales of Japan Post Insurance products could negatively impact the Company’s sales and results of operations," in Item 1A. Risk Factors in the 2020 Annual Report. Beginning in the second quarter of 2020 and continuing into 2021, Aflac Japan experienced a sharp drop-off in total sales, as compared to pre-pandemic levels, due to the ongoing effects of the COVID-19 pandemic.

In response to the COVID-19 pandemic, Aflac Japan continues to promote digital and web-based sales to groups and use of its system that enables smart device-based insurance application by allowing the customer and an Aflac Japan operator to see the same screen through their smart devices. Further, Aflac Japan continues to utilize its virtual sales tool that enables online consultations and policy applications to be completed entirely online.

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The following table details the contributions to Aflac Japan's new annualized premium sales by agency type for the three-month periods ended September 30.

	2021		2020
Independent corporate and individual	49.9	%	51.7	%
Affiliated corporate (1)	43.8		41.4
Bank	6.3		6.9
Total	100.0	%	100.0	%

(1) Includes Japan Post

During the three-month period ended September 30, 2021, Aflac Japan recruited 13 new sales agencies. At September 30, 2021, Aflac Japan was represented by approximately 8,200 sales agencies, with more than 112,000 licensed sales associates employed by those agencies. The number of sales agencies has declined in recent years due to Aflac Japan's focus on supporting agencies with strong management frameworks, high productivity and more producing agents.

At September 30, 2021, Aflac Japan had agreements to sell its products at 360 banks, approximately 90% of the total number of banks in Japan.

Strategic Alliance with Japan Post Holdings

As previously reported, on December 19, 2018, the Parent Company and Aflac Japan entered into a Basic Agreement with Japan Post Holdings Co., Ltd., a Japanese corporation (Japan Post Holdings). Pursuant to the terms of the Basic Agreement, among other items, Japan Post Holdings and Aflac Japan agreed to reconfirm existing initiatives regarding cancer insurance and to consider new joint initiatives, including leveraging digital technology in various processes and cooperation in new product development to promote customer-centric business management. In June 2021, the Parent Company and Aflac Japan, Japan Post Holdings, Japan Post Co., Ltd. and Japan Post Insurance Co., Ltd. agreed to pursue several specific initiatives toward building a "'Co-creation Platform' to support customers and local communities," consistent with Japan Post Group's medium-term management plan announced in May 2021. The initiatives are directed at, among other items, the promotion of Aflac Japan cancer insurance, digital transformation within the Japan Post Group, and certain diversity efforts.

Aflac Japan Investments

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

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

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The following table details the investment purchases for Aflac Japan.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Yen-denominated:
Fixed maturity securities:
Japan government and agencies	$	0	$	94	$	1,181	$	830
Private placements	146		154		456		267
Other fixed maturity securities	25		45		161		316
Equity securities	75		121		197		263
Other investments	3		0		8		0
Total yen-denominated	$	249	$	414	$	2,003	$	1,676
U.S. dollar-denominated:
Fixed maturity securities:
Other fixed maturity securities	$	363	$	314	$	1,362	$	1,231
Infrastructure debt	0		0		0		55
Collateralized loan obligations	40		99		194		99
Equity securities	0		0		8		0
Commercial mortgage and other loans:
Transitional real estate loans	390		152		1,089		617
Commercial mortgage loans	0		0		17		12
Middle market loans	496		238		1,762		1,665
Other investments	94		60		241		158
Total dollar-denominated	$	1,383	$	863	$	4,673	$	3,837
Total Aflac Japan purchases	$	1,632	$	1,277	$	6,676	$	5,513

See the Investments section of this MD&A for further discussion of these investment programs, and see Notes 3 and 4 of the Notes to the Consolidated Financial Statements and Notes 1, 3 and 4 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report for more information regarding loans and loan receivables.

The following table presents the results of Aflac Japan’s investment yields for the periods ended September 30.

	Three Months						Nine Months
	2021			2020			2021			2020
Total purchases for the period (in millions) (1)	$	1,535		$	1,217		$	6,427		$	5,355
New money yield (1), (2)	3.99		%	3.14		%	3.38		%	3.73		%
Return on average invested assets (3)	2.72			2.35			2.68			2.33
Portfolio book yield, including U.S. dollar-denominated investments, end of period (1)	2.60		%	2.62		%	2.60		%	2.62		%

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

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

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

The increase in the Aflac Japan new money yield in the three-month period ended September 30, 2021 was primarily due to higher allocation to floating rate asset classes. The decrease in the Aflac Japan new money yield in the nine-month period ended September 30, 2021 was primarily due to lower yields on floating rate asset classes. See Notes 3, 4 and 5 of the Notes to the Consolidated Financial Statements and the Investments section of this MD&A for additional information on the Company's investments and hedging strategies.

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AFLAC U.S. SEGMENT

Aflac U.S. Pretax Adjusted Earnings

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

Aflac U.S. Summary of Operating Results

	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2021			2020		2021			2020
Net premium income	$	1,393		$	1,407	$	4,223		$	4,348
Adjusted net investment income (1)	191			175		557			523
Other income	32			24		90			78
Total adjusted revenues	1,616			1,606		4,870			4,949
Benefits and claims	628			679		1,798			2,038
Adjusted expenses:
Amortization of deferred policy acquisition costs	123			141		373			435
Insurance commissions	136			140		411			439
Insurance and other expenses	370			316		1,071			955
Total adjusted expenses	629			597		1,855			1,829
Total benefits and adjusted expenses	1,257			1,277		3,653			3,867
Pretax adjusted earnings	$	358		$	329	$	1,217		$	1,082
Percentage change over previous period:
Net premium income	(1.0)		%	(2.6)		(2.9)		%	(.4)		%
Adjusted net investment income	9.1			(4.4)		6.5			(3.1)
Total adjusted revenues	.6			(1.5)		(1.6)			.8
Pretax adjusted earnings	8.8			(1.8)		12.5			8.6

(1) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

In the three- and nine-month periods ended September 30, 2021, net premium income for Aflac U.S. decreased primarily due to constrained sales as a result of the COVID-19 pandemic. Total adjusted revenues increased in the three-month period ended September 30, 2021, mainly due to the increase in adjusted net investment income from higher variable net investment income. Total adjusted revenues decreased in the nine-month period ended September 30, 2021, mainly due to the decline in net premium income from reduced sales activity, partially offset by the increase in adjusted net investment income from higher variable net investment income. Pretax adjusted earnings increased in the three- and nine-month periods ended September 30, 2021, driven primarily by the lower-than-expected benefit ratios due to lower incurred claims related to pandemic conditions.

Annualized premiums in force decreased .7% to $5.9 billion at September 30, 2021, compared with $6.0 billion at September 30, 2020.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
Ratios to total adjusted revenues:	2021		2020		2021		2020
Benefits and claims	38.9	%	42.3	%	36.9	%	41.2	%
Adjusted expenses:
Amortization of deferred policy acquisition costs	7.6		8.8		7.7		8.8
Insurance commissions	8.4		8.7		8.4		8.9
Insurance and other expenses	22.9		19.7		22.0		19.3
Total adjusted expenses	38.9		37.2		38.1		37.0
Pretax adjusted earnings	22.2		20.5		25.0		21.9
Ratios to total premiums:
Benefits and claims	45.1	%	48.3	%	42.6	%	46.9	%
Adjusted expenses:
Amortization of deferred policy acquisition costs	8.8		10.0		8.8		10.0

For the three- and nine-month periods ended September 30, 2021, the benefit ratio decreased compared with the same periods in 2020, reflecting reduced estimates of both COVID-19-related and non-COVID-19-related incurred claims since the advent of the pandemic. The adjusted expense ratio increased in the three- and nine-month periods ended September 30, 2021, when compared with the same periods in 2020, primarily due to planned spending on buy-to-build investments, offset slightly by lower DAC amortization related to elevated persistency. The pretax adjusted profit margin increased in the three- and nine-month periods ended September 30, 2021, compared with the same periods in 2020, primarily due to lower benefit ratios. For the full year of 2021, the Company will continue to monitor the situation with respect to COVID-19, and potential impacts on the pretax adjusted profit margin and benefit ratio.

Aflac U.S. Sales

The following table presents Aflac's U.S. new annualized premium sales for the periods ended September 30.

	Three Months						Nine Months
(In millions)	2021			2020			2021			2020
New annualized premium sales	$	299		$	221		$	814		$	705
Increase (decrease) over prior period	35.0		%	(35.7)		%	15.5		%	(32.7)		%

The following table details the contributions to Aflac's U.S. new annualized premium sales by major insurance product category for the periods ended September 30.

	Three Months				Nine Months
	2021		2020		2021		2020
Accident	25.5	%	26.4	%	26.3	%	26.6	%
Disability	26.2		24.2		24.1		23.3
Critical care(1)	19.1		20.5		20.8		20.8
Hospital indemnity	15.1		16.8		16.0		16.9
Dental/vision	4.9		5.0		5.0		4.5
Life	9.2		7.1		7.8		7.9
Total	100.0	%	100.0	%	100.0	%	100.0	%

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

New annualized premium sales for accident insurance, the leading Aflac U.S. product category, increased 30.6%; disability sales increased 41.7%; critical care insurance sales (including cancer insurance) increased 25.4%; and hospital indemnity insurance sales increased 20.9% in the third quarter of 2021, compared with the same period in 2020. The increase in sales for Aflac U.S. in the third quarter of 2021 is primarily attributable to increased sales activity as a result of the ongoing economic reopening in the U.S. and favorable comparisons due to pandemic conditions in 2020. See the Executive Summary section entitled COVID-19 of this MD&A for additional information.

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In the third quarter of 2021, the Aflac U.S. sales force included an average of approximately 5,900 U.S. agents, including brokers, who were actively producing business on a weekly basis. The Company believes that this average weekly producer equivalent metric allows sales management to monitor progress and needs, as well as serve as a leading indicator of future production capacity. Aflac U.S. believes that during the third quarter, constraints in the labor market have limited its recruiting of new sales agents, and that during the second and third quarters of 2021 limitations on face-to-face sales opportunities during the COVID-19 pandemic suppressed the development of newly recruited agents into business producers and the productivity of veteran agents and brokers. While gains were made in recruiting during the second and third quarter of 2021 compared with the same time in 2020, most notably among recruited brokers, Aflac U.S. believes that the above factors have acted as a headwind to sales and to growth in the number of average weekly producers during 2021. Aflac U.S. remains focused on mitigating and reversing these trends as the U.S. economy continues to recover from the pandemic.

In response to the COVID-19 pandemic, Aflac U.S. remains focused on supporting its agency channel, most of which are small businesses, by offering financial support and an extended value proposition. The Aflac U.S. sales team has pivoted to accommodate preferred enrollment conditions which include realizing sales at the worksite through in-person enrollment, an enrollment call center, video enrollment through co-browsing and self-enrollment. The traditional agent sales team is also using virtual recruiting and training through video conferencing in order to maintain or increase the recruiting pipeline. The Aflac U.S. broker sales team is focused on product enhancements due to COVID-19 as well as leveraging technology based solutions to drive enrollment.

Aflac U.S. Investments

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

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

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Fixed maturity securities:
Other fixed maturity securities	$	141	$	166	$	517	$	434
Infrastructure debt	30		0		30		20
Collateralized loan obligations	22		56		52		67
Equity securities	91		0		203		5
Commercial mortgage and other loans:
Transitional real estate loans	109		43		245		88
Commercial mortgage loans	0		0		163		37
Middle market loans	37		20		138		63
Other investments	10		7		27		18
Total Aflac U.S. Purchases	$	440	$	292	$	1,375	$	732

See Note 3 of the Notes to the Consolidated Financial Statements and Notes 1 and 3 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report for more information regarding loans and loans receivables.

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The following table presents the results of Aflac's U.S. investment yields for the periods ended September 30.

	Three Months						Nine Months
	2021			2020			2021			2020
Total purchases for period (in millions) (1)	$	430		$	285		$	1,348		$	714
New money yield (1), (2)	3.87		%	2.80		%	3.59		%	3.24		%
Return on average invested assets (3)	4.88			4.75			4.84			4.86
Portfolio book yield, end of period (1)	5.04		%	5.26		%	5.04		%	5.26		%

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

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

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

The increase in the Aflac U.S. new money yield for the three- and nine-month periods ended September 30, 2021 was primarily due to higher yields on floating rate asset classes. See Notes 3 and 5 of the Notes to the Consolidated Financial Statements and the Analysis of Financial Condition section of this MD&A for additional information on the Company's investments.

CORPORATE AND OTHER

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

Corporate and Other Summary of Operating Results

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Premium income	$	45	$	49	$	138	$	146
Net investment income (loss) (1)	11		14		14		59
Amortized hedge income related to certain foreign currency   management strategies	13		22		45		78
Adjusted net investment income	24		36		59		137
Other income	3		2		8		9
Total adjusted revenues	72		87		205		292
Benefits and claims, net	42		47		126		134
Adjusted expenses:
Interest expense	39		44		126		120
Other adjusted expenses	32		35		97		107
Total adjusted expenses	71		79		223		227
Total benefits and adjusted expenses	113		126		349		361
Pretax adjusted earnings	$	(41)	$	(39)	$	(144)	$	(69)

(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, is included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

In the three- and nine-month periods ended September 30, 2021, the decrease in total adjusted revenues was primarily driven by a decline in adjusted net investment income as a result of the change in value of federal historic rehabilitation and solar investments in partnerships discussed below, as well as lower amortized hedge income. The decrease in pretax adjusted earnings in the three-month period ended September 30, 2021, was primarily driven by lower adjusted net investment income. The decrease in pretax adjusted earnings for the nine-month period ended September 30, 2021, was primarily driven by lower adjusted net investment income and higher interest expense associated with debt issuances.

The Parent Company invests in partnerships that specialize in rehabilitating historic structures or the installation of solar equipment in order to receive federal historic rehabilitation and solar tax credits. These investments are classified as

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limited partnerships and included in other investments in the consolidated balance sheet. The change in value of each investment is recorded as a reduction to net investment income. Offsetting tax credits generated by these investments are recorded as an income tax benefit in the consolidated statement of earnings. Beginning in 2020, net investment income also includes the Company's portion of earnings from its strategic equity investment in an asset management company.

INVESTMENTS

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

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

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The following tables detail investments by segment.

Investment Securities by Segment

	September 30, 2021
(In millions)	Aflac Japan		Aflac U.S.		Corporate and Other		Total
Available for sale, fixed maturity securities,    at fair value	$	83,894	$	14,835	$	1,993	$	100,722
Held to maturity, fixed maturity securities,    at amortized cost (1)	22,613		0		0		22,613
Equity securities	731		273		457		1,461
Commercial mortgage and other loans:
Transitional real estate loans (1)	4,186		960		6		5,152
Commercial mortgage loans (1)	1,251		588		5		1,844
Middle market loans (1)	4,107		285		0		4,392
Other investments:
Policy loans	222		19		0		241
Short-term investments (2)	593		322		918		1,833
Limited partnerships	1,264		139		116		1,519
Other	0		19		0		19
Total investments	118,861		17,440		3,495		139,796
Cash and cash equivalents	2,785		1,039		2,384		6,208
Total investments and cash	$	121,646	$	18,479	$	5,879	$	146,004

(1) Net of allowance for credit losses

(2) Includes securities lending collateral

	December 31, 2020
(In millions)	Aflac Japan		Aflac U.S.		Corporate and Other		Total
Available for sale, fixed maturity securities,    at fair value	$	88,757	$	15,133	$	1,992	$	105,882
Held to maturity, fixed maturity securities,    at amortized cost (1)	24,464		0		0		24,464
Equity securities	674		66		543		1,283
Commercial mortgage and other loans:
Transitional real estate loans (1)	4,331		900		0		5,231
Commercial mortgage loans (1)	1,268		420		0		1,688
Middle market loans (1)	3,365		270		0		3,635
Other investments:
Policy loans	242		18		0		260
Short-term investments (2)	449		242		448		1,139
Limited partnerships	828		91		85		1,004
Other	0		26		0		26
Total investments	124,378		17,166		3,068		144,612
Cash and cash equivalents	2,001		785		2,355		5,141
Total investments and cash	$	126,379	$	17,951	$	5,423	$	149,753

(1) Net of allowance for credit losses

(2) Includes securities lending collateral

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

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

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

Composition of Fixed Maturity Securities by Credit Rating

		September 30, 2021						December 31, 2020
	Amortized Cost			Fair       Value			Amortized Cost			Fair       Value
AAA		1.0	%		0.9	%		1.0	%		.9	%
AA		5.0			5.1			4.5			4.6
A		69.4			69.2			69.3			69.5
BBB		21.9			22.1			21.9			21.9
BB or lower		2.7			2.7			3.3			3.1
Total		100.0	%		100.0	%		100.0	%		100.0	%

As of September 30, 2021, the Company's direct and indirect exposure to securities in its investment portfolio that were guaranteed by third parties was immaterial both individually and in the aggregate.

The following table presents the 10 largest unrealized loss positions in the Company's portfolio as of September 30, 2021.

(In millions)	Credit Rating		Amortized Cost			Fair Value			Unrealized Loss
KLM Royal Dutch Airlines		B		$	148		$	135		$	(13)
Intesa Sanpaolo Spa		BBB		139			132			(7)
Kommunal Landspensjonskasse (KLP)		BBB		134			128			(6)
Nippon Prologis REIT Inc.		A		89			84			(5)
Alphabet Inc.		AA		173			168			(5)
Grenke Finance PLC		BBB		63			59			(4)
Lloyds Banking Group PLC		A		206			202			(4)
Commonwealth of the Bahamas		BB		43			39			(4)
Heathrow Funding Ltd.		BBB		89			86			(3)
Mitsui Fudosan Co. Ltd.		A		93			90			(3)

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

Below-Investment-Grade Securities

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

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Below-Investment-Grade Investments

	September 30, 2021
(In millions)	Par Value		Amortized Cost (1)		Fair Value		Unrealized Gain (Loss)
Investcorp Capital Limited	$	381	$	380	$	388	$	8
Commerzbank	357		249		412		163
Pemex Project Funding Master Trust	268		268		276		8
Autostrade Per Litalia Spa	179		177		210		33
KLM Royal Dutch Airlines	179		148		135		(13)
Telecom Italia SpA	179		179		236		57
Apache Corporation	138		123		169		46
Ovintiv Inc.	119		114		161		47
IKB Deutsche Industriebank AG	116		53		108		55
Arconic Inc.	100		83		125		42
Other Issuers	415		370		471		101
Subtotal (2)	2,431		2,144		2,691		547
High yield corporate bonds	805		787		843		56
Middle market loans	4,215		4,088		4,154		66
Grand Total	$	7,451	$	7,019	$	7,688	$	669

(1) Net of allowance for credit losses

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

The Company invests in middle market loans primarily to U.S. corporate borrowers, most of which have below-investment-grade ratings. 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 and hedge costs through the acquisition of floating rate assets.

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

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Fixed Maturity Securities by Sector

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

	September 30, 2021
(In millions)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		% of Total
Government and agencies	$	53,377	$	8,453	$	(62)	$	61,767	48.6	%
Municipalities	2,787		608		(6)		3,390		2.5
Mortgage- and asset-backed securities	1,242		51		(1)		1,292		1.1
Public utilities	8,515		1,862		(7)		10,372		7.9
Electric	6,892		1,543		(4)		8,431		6.3
Natural Gas	294		51		0		346		.3
Other	607		126		(1)		732		.6
Utility/Energy	722		142		(2)		863		.7
Sovereign and Supranational	1,534		279		(4)		1,809		1.4
Banks/financial institutions	10,230		1,579		(66)		11,742		9.3
Banking	6,039		1,031		(23)		7,046		5.5
Insurance	1,917		373		(24)		2,266		1.7
Other	2,274		175		(19)		2,430		2.1
Other corporate	32,156		6,032		(89)		38,098		29.2
Basic Industry	3,146		684		(9)		3,820		2.9
Capital Goods	3,410		560		(8)		3,962		3.1
Communications	3,324		771		(3)		4,091		3.0
Consumer Cyclical	2,661		504		(2)		3,164		2.4
Consumer Non-Cyclical	6,929		1,218		(12)		8,135		6.3
Energy	3,410		762		(16)		4,156		3.1
Other	1,499		209		(4)		1,704		1.4
Technology	4,217		494		(16)		4,695		3.8
Transportation	3,560		830		(19)		4,371		3.2
Total fixed maturity securities	$	109,841	$	18,864	$	(235)	$	128,470	100.0	%

(1) Net of allowance for credit losses

Securities by Type of Issuance

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

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The following table details investment securities by type of issuance.

Investment Securities by Type of Issuance 

		September 30, 2021						December 31, 2020
(In millions)	Amortized Cost (1)			Fair    Value			Amortized Cost (1)			Fair   Value
Publicly issued securities:
Fixed maturity securities		$	90,630		$	105,427		$	95,545		$	111,479
Equity securities		1,018			1,018			740			740
Total publicly issued		91,648			106,445			96,285			112,219
Privately issued securities: (2)
Fixed maturity securities (3)		19,211			23,043			20,511			24,802
Equity securities		443			443			543			543
Total privately issued		19,654			23,486			21,054			25,345
Total investment securities		$	111,302		$	129,931		$	117,339		$	137,564

(1) Net of allowance for credit losses

(2) Primarily consists of securities owned by Aflac Japan

(3) Excludes Rule 144A securities

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

Reverse-Dual Currency Securities(1)

(Amortized cost, in millions)	September 30, 2021				December 31, 2020
Privately issued reverse-dual currency securities		$	4,913			$	5,300
Publicly issued collateral structured as reverse-dual currency securities		1,641				1,775
Total reverse-dual currency securities		$	6,554			$	7,075
Reverse-dual currency securities as a percentage of total investment    securities		5.9		%		6.0		%

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

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

HEDGING ACTIVITIES

The Company uses derivative contracts to hedge foreign currency exchange rate risk and interest rate risk. The Company uses various strategies, including derivatives, to manage these risks. See item “7A. Quantitative and Qualitative Disclosures About Market Risk” in the 2020 Annual Report for more information about market risk and the Company’s use of derivatives.

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

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

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

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

Foreign Currency Exchange Rate Risk Hedge Program

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

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

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

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

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

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

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

	September 30, 2021				December 31, 2020
(In millions)	Amortized Cost (1)		Fair Value		Amortized Cost (1)		Fair Value
Available-for-sale securities:
Fixed maturity securities (excluding bank loans)	$	17,886	$	20,444	$	19,249	$	21,108
Fixed maturity securities - bank loans (floating rate)	0		0		319		283
Equity securities	24		24		20		20
Commercial mortgage and other loans:
Transitional real estate loans (floating rate)	4,187		4,236		4,331		4,298
Commercial mortgage loans	1,250		1,315		1,268		1,365
Middle market loans (floating rate)	4,106		4,171		3,365		3,377
Other investments	1,264		1,264		828		828
Total U.S. Dollar Program	28,717		31,454		29,380		31,279
Available-for-sale securities:
Fixed maturity securities - economically converted to yen	2,227		3,294		2,085		3,094
Total U.S. dollar-denominated investments in Aflac Japan	$	30,944	$	34,748	$	31,465	$	34,373

(1) Net of allowance for credit losses

U.S. Dollar Program includes all U.S. dollar-denominated investments in Aflac Japan other than the investments in certain consolidated VIEs where the instrument is economically converted to yen as a result of a derivative in the consolidated VIE. Aflac Japan maintains an options program (collars and one sided options) on a portion of its US dollar program to mitigate against more extreme moves in foreign exchange and therefore support SMR. Depending on further developments, including the possibility of further market volatility, there may be additional costs associated with maintaining the options program. The Company is continually evaluating other adjustments, including the possibility of changing the level of hedging employed with the U.S dollar-denominated investments.

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As of September 30, 2021, Aflac Japan had $6.4 billion outstanding notional amounts of foreign currency forwards and $8.0 billion outstanding notional amounts of foreign currency options, of which none were in-the-money, hedging its U.S. dollar-denominated investments. The fair value of Aflac Japan's unhedged U.S. dollar-denominated portfolio was $15.1 billion (excluding certain U.S. dollar-denominated assets shown in the table above as a result of consolidation that have been economically converted to yen using derivatives).

Foreign exchange derivatives used for hedging are periodically settled, which results in cash receipt or payment at maturity or early termination. The following table presents the settlements associated with the Company's currency derivatives used for hedging Aflac Japan’s U.S. dollar-denominated investments.

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2021			2020			2021			2020
Net cash inflows (outflows)		$	(14)		$	(2)		$	88		$	(34)

Enterprise Corporate Hedging Program

The Company has designated certain yen-denominated liabilities and foreign currency forwards and options of the Parent Company as accounting hedges of its net investment in Aflac Japan. The Company's consolidated yen-denominated net asset position was partially hedged at $10.3 billion as of September 30, 2021, compared with $9.9 billion as of December 31, 2020.

The Company makes its accounting designation of net investment hedge at the beginning of each quarter. If the total of the designated Parent Company non-derivative and derivative notional is equal to or less than the Company's net investment in Aflac Japan, the hedge is deemed to be effective, and the currency exchange effect on the yen-denominated liabilities and the change in estimated fair value of the derivatives are reported in the unrealized foreign currency component of other comprehensive income. The Company's net investment hedge was effective during the three- and nine-month periods ended September 30, 2021 and 2020, respectively. For additional information on the Company's net investment hedging strategy, see Note 4 of the Notes to the Consolidated Financial Statements.

In order to economically mitigate risks associated with the enterprise-wide exposure to the yen and the level and volatility of hedge costs, the Parent Company enters into foreign exchange forward and option contracts. By buying U.S. dollars and selling yen, the Parent Company is effectively lowering its overall economic exposure to the yen, while Aflac Japan's U.S dollar exposure remains reduced as a result of Aflac Japan's U.S. dollar-denominated hedge program that economically creates yen assets. Among other objectives, this strategy is intended to offset the enterprise-wide amortized hedge costs by generating amortized hedge income. The portion of the enterprise-wide amortized hedge income contributed by this strategy was $13 million and $22 million for the three-month periods and $45 million and $78 million for the nine-month periods ended September 30, 2021 and 2020, respectively. This activity is reported in Corporate and Other. As this program evolves, the Company will continue to evaluate the program’s efficacy. See the Results of Operations section of this MD&A for the Company's definition of amortized hedge costs/income.

The following table presents metrics related to Aflac Japan amortized hedge costs and the Parent Company amortized hedge income for the periods ended September 30.

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Hedge Cost/Income Metrics(1)

	Three Months		Nine Months
	2021	2020	2021	2020
Aflac Japan:
FX Forwards
FX forward (sell USD, buy yen) notional at end of period (in billions)(2)	$6.4	$9.2	$6.4	$9.2
Weighted average remaining tenor (in months)(3)	3.7	10.3	3.7	10.3
Amortized hedge income (cost) for period (in millions)	$(13)	$(49)	$(42)	$(150)
FX Options
FX option notional at the end of period (in billions) (2)	$8.0	$9.0	$8.0	$9.0
Weighted average remaining tenor (in months) (3)	3.6	1.2	3.6	1.2
Amortized hedge income (cost) for period (in millions)	$(7)	$(2)	$(13)	$(5)
Corporate and Other (Parent Company):
FX Forwards
FX forward (buy USD, sell yen) notional at end of period (in billions)(2)	$5.0	$5.0	$5.0	$5.0
Weighted average remaining tenor (in months)(3)	12.2	12.5	12.2	12.5
Amortized hedge income (cost) for period (in millions)	$14	$24	$49	$81
FX Options
FX option notional at the end of period (in billions) (2)	$2.0	$2.1	$2.0	$2.1
Weighted average remaining tenor (in months) (3)	7.2	6.8	7.2	6.8
Amortized hedge income (cost) for period (in millions)	$(1)	$(2)	$(4)	$(3)

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

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

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

Amortized hedge costs/income can fluctuate based upon many factors, including the derivative notional amount, the length of time of the derivative contract, changes in both U.S. and Japan interest rates, and supply and demand for dollar funding. Amortized hedge costs and income have fluctuated in recent periods due to changes in the previously mentioned factors.

Interest Rate Risk Hedge Program

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

For additional discussion of the risks associated with the foreign currency exposure refer to the Currency Risk section in Item 7A., Quantitative and Qualitative Disclosures about Market Risk, and Item 1A, specifically to the Risk Factor titled “The Company is exposed to foreign currency fluctuations in the yen/dollar exchange rate" and “Lack of availability of acceptable yen-denominated investments could adversely affect the Company's results of operations, financial position or liquidity" in the 2020 Annual Report.

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

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DEFERRED POLICY ACQUISITION COSTS

The following table presents deferred policy acquisition costs by segment.

(In millions)	September 30, 2021			December 31, 2020			% Change
Aflac Japan		$	6,418		$	6,991		(8.2)	%	(1)
Aflac U.S.		3,296			3,450			(4.5)
Total		$	9,714		$	10,441		(7.0)	%

(1) Aflac Japan’s deferred policy acquisition costs decreased .7% in yen during the nine months ended September 30, 2021.

See Note 6 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report for additional information on the Company's deferred policy acquisition costs.

POLICY LIABILITIES

The following table presents policy liabilities by segment.

(In millions)	September 30, 2021			December 31, 2020			% Change
Aflac Japan		$	96,039		$	103,128		(6.9)	%	(1)
Aflac U.S.		11,882			11,810			.6
Other		280			274			2.2
Intercompany eliminations(2)		(758)			(821)			(7.7)
Total		$	107,443		$	114,391		(6.1)	%

(1) Aflac Japan’s policy liabilities increased .7% in yen during the nine months ended September 30, 2021.

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

BENEFIT PLANS

Aflac Japan and Aflac U.S. have various benefit plans. For additional information on the Company's Japanese and U.S. plans, see Note 11 of the accompanying Notes to the Consolidated Financial Statements and Note 14 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

POLICYHOLDER PROTECTION

Policyholder Protection Corporation

The Japanese insurance industry has a policyholder protection system that provides funds for the policyholders of insolvent insurers. Legislation enacted regarding the framework of the Life Insurance Policyholder Protection Corporation (LIPPC) included government fiscal measures supporting the LIPPC. In November 2016, Japan's Diet passed legislation that extended the government's fiscal support of the LIPPC through March 2022. Effective April 2014, the annual LIPPC contribution amount for the total life industry was lowered from ¥40 billion to ¥33 billion. Aflac Japan recognized an expense of ¥1.8 billion and ¥1.9 billion for the nine-month periods ended September 30, 2021 and 2020, respectively, for LIPPC assessments.

Guaranty Fund Assessments

Under U.S. state guaranty association laws, certain insurance companies can be assessed (up to prescribed limits) for certain obligations to the policyholders and claimants of impaired or insolvent insurance companies that write the same line or similar lines of business. The amount of the guaranty fund assessment that an insurer is assessed is based on its proportionate share of premiums in that state. Guaranty fund assessments for the nine-month periods ended September 30, 2021 and 2020 were immaterial.

OFF-BALANCE SHEET ARRANGEMENTS

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

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As of September 30, 2021, the Company had no material letters of credit, standby letters of credit, guarantees or standby repurchase obligations. See Note 15 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report for information on material unconditional purchase obligations that are not recorded on the Company's balance sheet.

LIQUIDITY AND CAPITAL RESOURCES

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

•business investment and growth needs

•strategic growth objectives

•financial flexibility and obligations

•capital support for hedging activity

•a constantly evolving business and economic environment

•a balanced approach to capital allocation and shareholder deployment.

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

The Company's cash and cash equivalents include unrestricted cash on hand, money market instruments, and other debt instruments with a maturity of 90 days or less when purchased, all of which has minimal market, settlement or other risk exposure. The target minimum amount for the Parent Company’s cash and cash equivalents is approximately $2.0 billion to provide a capital buffer and liquidity support at the holding company. This amount excludes $400 million of proceeds from the issuance of senior sustainability notes discussed below, which proceeds contribute to the capital buffer but are not intended to support holding company liquidity. Amid the COVID-19 pandemic, the Company remains committed to prudent liquidity and capital management. At September 30, 2021, the Company held $6.2 billion in cash and cash equivalents for stress conditions, which includes the Parent Company's target minimum amount of $2.0 billion. For additional information on the Company’s liquidity and capital resources in response to COVID-19, see the Executive Summary section of this MD&A.

Aflac Japan and Aflac U.S. provide the primary sources of liquidity to the Parent Company through management fees and dividends, with Aflac Japan being the largest contributor. The primary uses of cash by the Parent Company are shareholder dividends, the repurchase of its common stock and interest on its outstanding indebtedness and operating expenses.

The following table presents the amounts provided to the Parent Company for the nine-month periods ended September 30.

Liquidity Provided by Subsidiaries to Parent Company

(In millions)	2021		2020
Dividends declared or paid by subsidiaries	$	2,016	$	892
Management fees paid by subsidiaries	96		100

The following table details Aflac Japan remittances for the nine-month periods ended September 30.

Aflac Japan Remittances 

(In millions of dollars and billions of yen)	2021		2020
Aflac Japan management fees paid to Parent Company	$	44	$	54
Aflac Japan dividends declared or paid to Parent Company (in dollars)	1,776		667
Aflac Japan dividends declared or paid to Parent Company (in yen)	¥	195.6	¥	72.8

The Company intends to maintain higher than historical levels of liquidity and capital at the Parent Company for stress conditions and with the goals of addressing the Company’s hedge costs and related potential need for collateral and mitigating against long-term weakening of the Japanese yen. Further, the Company plans to continue to maintain a

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portfolio of unhedged U.S. dollar based investments at Aflac Japan and to consider whether the amount of such investments should be increased or decreased relative to the Company’s view of economic equity surplus in Aflac Japan in light of potentially rising hedge costs and other factors. See the Hedging Activity subsection of this MD&A for more information.

In addition to cash and equivalents, the Company also maintains credit facilities, both intercompany and with external partners, and a number of other available tools to support liquidity needs on a global basis. In September 2021, the Parent Company filed a shelf registration statement with the SEC that allows the Company to issue an indefinite amount of debt securities, in one or more series, from time to time until September 2024. The Company believes outside sources for additional debt and equity capital, if needed, will continue to be available. Additionally, as of September 30, 2021, the Parent Company and Aflac had four lines of credit with third parties as well as ten intercompany lines of credit. For additional information, see Note 8 of the Notes to the Consolidated Financial Statements.

The Company's consolidated financial statements convey its financing arrangements during the periods presented. The Company has not engaged in material intra-period short-term financings during the periods presented that are not otherwise reported in its balance sheet or disclosed therein. The Company was in compliance with all of the covenants of its notes payable and lines of credit at September 30, 2021. The Company has not entered into transactions involving the transfer of financial assets with an obligation to repurchase financial assets that have been accounted for as a sale under applicable accounting standards, including securities lending transactions. See Notes 3 and 4 of the Notes to the Consolidated Financial Statements and Notes 1, 3, and 4 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report for more information on the Company's securities lending and derivative activities. With the exception of disclosed activities in those referenced footnotes and the Risk Factors in the 2020 Annual Report entitled, "The Company is exposed to foreign currency fluctuations in the yen/dollar exchange rate" and "Lack of availability of acceptable yen-denominated investments could adversely affect the Company's results of operations, financial position or liquidity," the Company is not aware of any trend, demand, commitment, event or uncertainty that would reasonably result in its liquidity increasing or decreasing by a material amount.

Consolidated Cash Flows

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

The following table summarizes consolidated cash flows by activity for the nine-month periods ended September 30.

(In millions)	2021		2020
Operating activities	$	4,181	$	4,601
Investing activities	(1,171)		(3,511)
Financing activities	(1,897)		(431)
Exchange effect on cash and cash equivalents	(46)		8
Net change in cash and cash equivalents	$	1,067	$	667

Operating Activities

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

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

Investing Activities

The Company's investment objectives provide for liquidity primarily through the purchase of publicly traded investment-grade debt securities. Prudent portfolio management dictates that the Company attempts to match the duration of its assets with the duration of its liabilities. Currently, when the Company's fixed maturity securities mature, the proceeds may be reinvested at a yield below that required for the accretion of policy benefit liabilities on policies issued in earlier years. However, the long-term nature of the Company's business and its strong cash flows provide the Company with the ability

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to minimize the effect of mismatched durations and/or yields identified by various asset adequacy analyses. From time to time or when market opportunities arise, the Company disposes of selected fixed maturity securities that are available for sale to improve the duration matching of assets and liabilities, improve future investment yields, and/or re-balance its portfolio. As a result, dispositions before maturity can vary significantly from year to year.

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

As part of an arrangement with Federal Home Loan Bank of Atlanta (FHLB), Aflac U.S. obtains low-cost funding from FHLB supported by acceptable forms of collateral pledged by Aflac U.S. In the first nine months of 2021, Aflac U.S. borrowed and repaid $78 million under this program. As of September 30, 2021, Aflac U.S. had outstanding borrowings of $320 million reported in its balance sheet.

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

Financing Activities

Consolidated cash used by financing activities was $1.9 billion in the first nine months of 2021, compared with consolidated cash used by financing activities of $431 million for the same period of 2020.

In April 2021, the Parent Company issued five series of senior notes totaling ¥82.0 billion through a public debt offering under its then existing U.S. shelf registration statement. The first series, which totaled ¥30.0 billion, bears interest at a fixed rate of .633% per annum, payable semi-annually, and will mature in April 2031. The second series, which totaled ¥12.0 billion, bears interest at a fixed rate of .844% per annum, payable semi-annually, and will mature in April 2033. The third series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.039% per annum, payable semi-annually, and will mature in April 2036. The fourth series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.264% per annum, payable semi-annually, and will mature in April 2041. The fifth series, which totaled ¥20.0 billion, bears interest at a fixed rate of 1.560% per annum, payable semi-annually, and will mature in April 2051. The notes are redeemable at the Parent Company’s option (i) at any time, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance or (ii) on or after the date that is six months prior to the stated maturity date of the series, in whole or in part, at a redemption price equal to the aggregate principal amount to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption.

In May 2021, the Parent Company used a portion of the net proceeds from the April 2021 issuance of its various series of senior notes to redeem $700 million of the Parent Company's 3.625% senior notes due June 2023.

In March 2021, the Parent Company issued $400 million of senior sustainability notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually, and will mature in March 2026. The Company intends, but is not contractually committed, to allocate an amount at least equivalent to the net proceeds from this issuance exclusively to existing or future investments in, or financing of, assets, businesses or projects that meet the eligibility criteria of the Company's sustainability bond framework described in the offering documentation in connection with such notes. These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 10 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date.

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

The Company was in compliance with all of the covenants of its notes payable and lines of credit at September 30, 2021.

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Cash returned to shareholders through treasury stock purchases and dividends was $2.3 billion during the nine-month period ended September 30, 2021, compared with $1.6 billion during the nine-month period ended September 30, 2020.

The following tables present a summary of treasury stock activity during the nine-month periods ended September 30.

Treasury Stock Purchased

(In millions of dollars and thousands of shares)	2021		2020
Treasury stock purchases	$	1,676	$	1,037
Number of shares purchased:
Share repurchase program	32,186		26,108
Other	419		541
Total shares purchased	32,605		26,649

Treasury Stock Issued

(In millions of dollars and thousands of shares)	2021		2020
Stock issued from treasury:
Cash financing	$	13	$	27
Noncash financing	43		40
Total stock issued from treasury	$	56	$	67
Number of shares issued	1,424		1,884

During the first nine months of 2021, the Company repurchased 32.2 million shares of its common stock for $1.7 billion as part of its share repurchase program. As of September 30, 2021, a remaining balance of 67.0 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its board of directors. For information on the impact of COVID-19 on the Company's share repurchase program, see the Executive Summary section of this MD&A.

Cash dividends paid to shareholders were $.33 per share in the third quarter of 2021, compared with $.28 per share in the third quarter of 2020. The following table presents the dividend activity for the nine-month periods ended September 30.

(In millions)	2021		2020
Dividends paid in cash	$	647	$	580
Dividends through issuance of treasury shares	23		22
Total dividends to shareholders	$	670	$	602

In October 2021, the board of directors declared the fourth quarter cash dividend of $.33 per share, an increase of 17.9% compared with the same period in 2020. The dividend is payable on December 1, 2021 to shareholders of record at the close of business on November 17, 2021.

Regulatory Restrictions

Aflac Japan

Aflac Japan is required to meet certain financial criteria as governed by Japanese corporate law in order to provide dividends to the Parent Company. Under these criteria, dividend capacity at the Japan subsidiary is basically defined as total equity excluding common stock, accumulated other comprehensive income amounts, capital reserves (representing statutorily required amounts in Japan) but reduced for net after-tax unrealized losses on available-for-sale securities. These dividend capacity requirements are generally aligned with the SMR. Japan's FSA maintains its own solvency standard which is quantified through the SMR. Aflac Japan's SMR is sensitive to interest rate, credit spread, and foreign exchange rate changes, therefore the Company continues to evaluate alternatives for reducing this sensitivity, including the reduction of subsidiary dividends paid to the Parent Company and Parent Company capital contributions. In the event of a rapid change in market risk conditions causing SMR to decline, the Company has one senior unsecured revolving credit facility in the amount of ¥100 billion and a committed reinsurance facility in the amount of approximately ¥120 billion as a capital contingency plan. Additionally, the Company could take action to enter into derivatives on unhedged U.S.

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dollar-denominated investments with foreign currency options or forwards. See Notes 7 and 8 of the Notes to the Consolidated Financial Statements for additional information.

The Company has already undertaken various measures to mitigate the sensitivity of Aflac Japan's SMR. For example, the Company employs policy reserve matching (PRM) investment strategies, which is a Japan-specific accounting treatment that reduces SMR interest rate sensitivity since PRM-designated investments are carried at amortized cost consistent with corresponding liabilities. In order for a PRM-designated asset to be held at amortized cost, there are certain criteria that must be maintained. The primary criterion relates to maintaining the duration of designated assets and liabilities within a specified tolerance range. If the duration difference is not maintained within the specified range without rebalancing, then a certain portion of the assets must be re-classified as available for sale and held at fair value with any associated unrealized gain or loss recorded in surplus. To rebalance, assets may need to be sold in order to maintain the duration with the specified range, resulting in realizing a gain or loss from the sale. For U.S. GAAP, PRM investments are categorized as available for sale. The Company also uses foreign currency derivatives to hedge a portion of its U.S. dollar-denominated investments. See Notes 3, 4 and 8 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report for additional information on the Company's investment strategies, hedging activities, and reinsurance, respectively.

As of September 30, 2021, Aflac Japan's SMR remains high and reflects a strong capital and surplus position. The Company is committed to maintaining strong capital levels throughout the pandemic, consistent with maintaining current insurance financial strength and credit ratings. For additional information see the Executive Summary COVID-19 section of this MD&A.

Aflac U.S.

A life insurance company’s statutory capital and surplus is determined according to rules prescribed by the National Association of Insurance Commissioners (NAIC), as modified by the insurance department in the insurance company’s state of domicile. Statutory accounting rules are different from U.S. GAAP and are intended to emphasize policyholder protection and company solvency. The continued long-term growth of the Company's business may require increases in the statutory capital and surplus of its insurance operations. The Company's insurance operations may secure additional statutory capital through various sources, such as internally generated statutory earnings, reduced dividends paid to the Parent Company, capital contributions by the Parent Company from funds generated through debt or equity offerings, or reinsurance transactions. The NAIC’s RBC formula is used by insurance regulators to help identify inadequately capitalized insurance companies. The RBC formula quantifies insurance risk, business risk, asset risk and interest rate risk by weighing the types and mixtures of risks inherent in the insurer’s operations. As of September 30, 2021, Aflac’s RBC ratio remains high and reflects a strong capital and surplus position.

Aflac, CAIC and TOIC are domiciled in Nebraska and are subject to its regulations. The maximum amount of dividends that can be paid to the Parent Company by Aflac, CAIC and TOIC without prior approval of Nebraska's director of insurance is the greater of the net income from operations, which excludes net investment gains, for the previous year determined under statutory accounting principles, or 10% of statutory capital and surplus as of the previous year-end. Dividends declared by Aflac during 2021 in excess of $872 million would be considered extraordinary and require such approval. Similar laws apply in New York, the domiciliary jurisdiction of Aflac New York.

Privacy and Cybersecurity Governance

The Company’s Board of Directors has adopted an information security policy directing management to establish and operate a global information security program with the goals of monitoring existing and emerging threats and ensuring that the Company’s information assets and data, and the data of its customers, are appropriately protected from loss or theft. The Board has delegated oversight of the Company’s information security program to the Audit and Risk Committee. The Company’s senior officers, including its Global Security and Chief Information Security Officer, are responsible for the operation of the global information security program and communicates quarterly with the Audit and Risk Committee on the program, including with respect to the state of the program, compliance with applicable regulations, current and evolving threats, and recommendations for changes in the information security program. The global information security program also includes a cybersecurity incident response plan that is designed to provide a management framework across Company functions for a coordinated assessment and response to potential security incidents. This framework establishes a protocol to report certain incidents to the Global Security and Chief Information Security Officer and other senior officers, with the goal of timely assessing such incidents, determining applicable disclosure requirements and communicating with the Audit and Risk Committee. The incident response plan directs the executive officers to report certain incidents immediately and directly to the Lead Non-Management Director.

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Other

For information regarding commitments and contingent liabilities, see Note 12 of the Notes to the Consolidated Financial Statements.

Additional Information

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

CRITICAL ACCOUNTING ESTIMATES

The Company prepares its financial statements in accordance with U.S. GAAP. These principles are established primarily by the FASB. In this MD&A, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification™ (ASC). The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates based on currently available information when recording transactions resulting from business operations. The estimates that the Company deems to be most critical to an understanding of Aflac’s results of operations and financial condition are those related to the valuation of investments and derivatives, DAC, liabilities for future policy benefits and unpaid policy claims, and income taxes. The preparation and evaluation of these critical accounting estimates involve the use of various assumptions developed from management’s analyses and judgments. The application of these critical accounting estimates determines the values at which 93% of the Company's assets and 80% of its liabilities are reported as of September 30, 2021, and thus has a direct effect on net earnings and shareholders’ equity. Subsequent experience or use of other assumptions could produce significantly different results.

There have been no changes in the items the Company has identified as critical accounting estimates during the nine months ended September 30, 2021. For additional information, see the Critical Accounting Estimates section of MD&A included in the 2020 Annual Report.

New Accounting Pronouncements

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

Item 3.Quantitative and Qualitative Disclosures about Market Risk

The Company is exposed primarily to the following types of market risks: currency risk, interest rate risk, credit risk and equity risk. The Company regularly monitors its market risks and uses a variety of strategies to manage its exposure to these market risks. A description of the Company's market risk exposures may be found under “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A, of the 2020 Annual Report. There have been no changes to the Company's market risk exposures from the market risk exposures previously disclosed in the 2020 Annual Report except as outlined below.

Item 4.Controls and Procedures

Disclosure Controls and Procedures

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

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Changes in Internal Control Over Financial Reporting

During the first nine months of 2021, the Company has executed internal controls associated with new processes supporting the implementation of Accounting Standards Update (ASU) 2018-12 for long-duration insurance contracts (LDTI). These controls provide assurance over the reasonableness of the estimated range of impact to the Company's accumulated other comprehensive income (AOCI) that is expected upon adoption of LDTI on January 1, 2023 as disclosed in Note 1 of the Notes to the Consolidated Financial Statements. The Company will continue to refine and maturate the internal controls associated with LDTI until adoption on January 1, 2023. Except for the change in controls over the Company's implementation of LDTI, there have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) during the third fiscal quarter of 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

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

Issuer Purchases of Equity Securities

During the first nine months of 2021, the Company repurchased shares of its common stock as follows:

Period	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 - January 31	2,850,664		$	45.60	2,850,664	96,304,954
February 1 - February 28	5,034,979		47.30		4,661,812	91,643,142
March 1 - March 31	5,932,047		50.55		5,927,500	85,715,642
April 1 - April 30	2,266,200		52.73		2,266,200	83,449,442
May 1 - May 31	2,855,900		55.81		2,855,900	80,593,542
June 1  - June 30	4,055,001		54.61		4,052,204	76,541,338
July 1 - July 31	2,436,400		53.51		2,436,400	74,104,938
August 1 - August 31	3,706,404		56.51		3,675,122	70,429,816
September 1  - September 30	3,467,904		54.09		3,460,300	66,969,516
Total	32,605,499	(1)	$	52.01	32,186,102	66,969,516

(1) During the first nine months of 2021, 419,397 shares were purchased in connection with income tax withholding obligations related to the vesting of restricted-share-based awards during the period.

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Item 6.    Exhibits

(a)	EXHIBIT INDEX
	3.0	-	Articles of Incorporation, as amended – incorporated by reference from Form 10-Q for June 30, 2008, Exhibit 3.0.
	3.1	-	Bylaws of the Corporation, as amended and restated – incorporated by reference from Form 8-K dated April 6, 2020, Exhibit 3.1.
	31.1	-	Certification of CEO dated October 28, 2021, required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934.
	31.2	-	Certification of CFO dated October 28, 2021, 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 October 28, 2021, pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	101.INS	-	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
	101.SCH	-	Inline XBRL Taxonomy Extension Schema.
	101.CAL	-	Inline XBRL Taxonomy Extension Calculation Linkbase.
	101.DEF	-	Inline XBRL Taxonomy Extension Definition Linkbase.
	101.LAB	-	Inline XBRL Taxonomy Extension Label Linkbase.
	101.PRE	-	Inline XBRL Taxonomy Extension Presentation Linkbase.
	104	-	Cover Page Interactive Data File - formatted as Inline XBRL and contained in Exhibit 101.

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Defined Terms

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

ALM	Asset-Liability Matching
AOCI	Accumulated Other Comprehensive Income
ARP	American Rescue Plan
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
CARES	Coronavirus Aid, Relief, and Economic Security
CDS	Credit Default Swap
CMLs	Commercial Mortgage Loans
CSAs	Credit Support Annexes
DAC	Deferred Policy Acquisition Costs
DSCR	Debt Service Coverage Ratios
EPS	Earnings Per Share
FASB	Financial Accounting Standard Boards
FHLB	Federal Home Loan Bank of Atlanta
FSA	Japanese Financial Services Agency
ISDA	International Swaps and Derivatives Association, Inc.
ISOs	Incentive Stock Options
JGB	Japan Government Bond
LDTI	Long-Duration Targeted Improvements
LGD	Loss-Given-Default
LIBOR	London Interbank Offered Rate
LIPPC	Life Insurance Policyholder Protection Corporation
LTV	Loan-to-Value
MD&A	Management's Discussion and Analysis of Financial Condition and Results of Operations
MMLs	Middle Market Loans
NAIC	National Association of Insurance Commissioners
NOLHGA	National Organization of Life and Health Guaranty Associations
NQSOs	Non-qualifying Stock Options
NRSROs	Nationally Recognized Statistical Rating Organizations
OTC	Over-the-Counter
PD	Probability-of-Default
PRM	Policy Reserve Matching
RBC	Risk-Based Capital
ROE	Return on Equity
S&P	Standard & Poor's
SEC	Securities and Exchange Commission
SMR	Solvency Margin Ratio
The Plan	Aflac Incorporated Long-Term Incentive Plan
TIBOR	Tokyo Interbank Market Rate
TDRs	Troubled Debt Restructurings
TREs	Transitional Real Estate Loans
TTM	Telegraphic Transfer Middle Rate
U.S. GAAP	U.S. Generally Accepted Accounting Principles
VIEs	Variable Interest Entities

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Glossary of Selected Terms

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

Adjusted Net Investment Income - Net Investment Income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity and ii) net interest cash flows from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and (losses) to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company's investments and related hedging strategies. The metric is used in segment reporting as a component of segment profitability.

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

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

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

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

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

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

Group Insurance – Insurance issued to a group, such as an employer or trade association, that covers

employees or association members and their dependents through certificates of coverage.

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

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

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

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

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

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

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

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

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

Pretax Adjusted Earnings – Earnings as adjusted earnings before the application of income taxes. This measure is used in the Company's segment reporting.

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

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

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

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

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

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

111

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
October 28, 2021	/s/ Max K. Brodén
	(Max K. Brodén)
	Executive Vice President; Chief Financial Officer and Treasurer
October 28, 2021	/s/ June Howard
	(June Howard)
	Senior Vice President, Financial Services; Chief Accounting Officer

112

EX-31.1

Aflac Incorporated 3rd Quarter 2021 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:	October 28, 2021	/s/ Daniel P. Amos
		Daniel P. Amos
		Chairman and Chief Executive Officer

EX-31.2

Aflac Incorporated 3rd Quarter 2021 Form 10-Q

EXHIBIT 31.2

Certification of Chief Financial Officer

I, Max K. Brodén, 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:	October 28, 2021	/s/ Max K. Brodén
		Max K. Brodén
		Executive Vice President, Chief Financial Officer and Treasurer

EX-32

Aflac Incorporated 3rd Quarter 2021 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 September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Daniel P. Amos, as Chief Executive Officer of the Company, and Max K. Brodén, 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:	October 28, 2021

/s/ Max K. Brodén
Name:	Max K. Brodén
Title:	Chief Financial Officer
Date:	October 28, 2021

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Oct. 19, 2021
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-07434
Entity Registrant Name	Aflac Incorporated
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-1167100
Entity Address, Address Line One	1932 Wynnton Road
Entity Address, City or Town	Columbus,
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	31999
City Area Code	706.
Local Phone Number	323.3431
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		661,528,219
Amendment Flag	false
Entity Central Index Key	0000004977
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
NEW YORK STOCK EXCHANGE, INC.
Title of 12(b) Security	Common Stock, $.10 par value per share
Trading Symbol	AFL
Security Exchange Name	NYSE

XML

Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Net premium income		$ 4,372	$ 4,623	$ 13,406	$ 13,969
Net investment income		991	896	2,908	2,669
Net investment gains (losses)		(171)	108	224	(525)
Other income (loss)		45	38	132	121
Total revenues		5,237	5,665	16,670	16,234
Benefits and expenses:
Benefits and claims, net		2,609	2,985	7,996	8,822
Acquisition and operating expenses:
Amortization of deferred policy acquisition costs		278	292	869	914
Insurance commissions		311	325	952	993
Insurance and other expenses	[1]	869	847	2,582	2,382
Interest expense		57	63	181	181
Total acquisition and operating expenses		1,515	1,527	4,584	4,470
Total benefits and expenses		4,124	4,512	12,580	13,292
Earnings before income taxes		1,113	1,153	4,090	2,942
Income taxes		225	(1,303)	804	(884)
Net earnings		$ 888	$ 2,456	$ 3,286	$ 3,826
Net earnings per share:
Basic (in dollars per share)		$ 1.33	$ 3.45	$ 4.84	$ 5.33
Diluted (in dollars per share)		$ 1.32	$ 3.44	$ 4.82	$ 5.31
Weighted-average outstanding common shares used in computing earnings per share (In thousands):
Basic (in shares)		668,762	711,698	678,509	717,962
Diluted (in shares)		671,925	713,793	681,521	720,333
Cash dividends per share		$ 0.33	$ 0.28	$ 0.99	$ 0.84

[1] Includes expense of $48 and $15 for the nine-month periods ended September 30, 2021 and 2020, respectively, for the early extinguishment of debt.

XML

Consolidated Statements of Earnings (Parenthetical) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
3.625% senior notes paid May 2021
Expense on extinguishment of debt	$ 48
4.00% senior notes paid January 2020
Expense on extinguishment of debt		$ 15

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net earnings	$ 888	$ 2,456	$ 3,286	$ 3,826
Other comprehensive income (loss) before income taxes:
Unrealized foreign currency translation gains (losses) during period	(93)	172	(646)	329
Unrealized gains (losses) on fixed maturity securities:
Unrealized holding gains (losses) on fixed maturity securities during period	(316)	1,420	(800)	26
Reclassification adjustment for (gains) losses on fixed maturity securities included in net earnings	(13)	(13)	2	132
Unrealized gains (losses) on derivatives during period	2	2	3	(3)
Pension liability adjustment during period	1	(1)	7	(1)
Total other comprehensive income (loss) before income taxes	(419)	1,580	(1,434)	483
Income tax expense (benefit) related to items of other comprehensive income (loss)	(62)	413	(162)	29
Other comprehensive income (loss), net of income taxes	(357)	1,167	(1,272)	454
Total comprehensive income (loss)	$ 531	$ 3,623	$ 2,014	$ 4,280

XML

Consolidated Balance Sheets - USD ($) $ in Millions		Sep. 30, 2021		Dec. 31, 2020
Investments and Cash:
Available for sale, fixed maturity securities		$ 100,722		$ 105,882
Held to maturity, fixed maturity securities		22,613	[1]	24,464
Equity securities		1,461		1,283
Commercial mortgage and other loans		11,388		10,554
Other investments		3,612		2,429
Cash and cash equivalents		6,208		5,141
Total investments and cash		146,004		149,753
Receivables		787		796
Accrued investment income		701		780
Deferred policy acquisition costs		9,714		10,441
Property and equipment, at cost less accumulated depreciation		542		601
Other		2,849		2,715
Total assets		160,597		165,086
Policy Liabilities:
Future policy benefits		92,434		97,783
Unpaid policy claims		4,909		5,187
Unearned premiums		2,814		3,597
Other policyholders’ funds		7,286		7,824
Total policy liabilities		107,443		114,391
Income taxes		4,577		4,661
Payables for return of cash collateral on loaned securities		2,849		964
Notes payable and lease obligations		8,066		7,899
Other		4,110		3,612
Total liabilities		127,045		131,527
Commitments and contingent liabilities (Note 12)
Shareholders’ equity:
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2021 and 2020; issued 1,352,562 shares in 2021 and 1,351,018 shares in 2020		135		135
Additional paid-in capital		2,491		2,410
Retained earnings		40,830		37,984
Accumulated other comprehensive income (loss):
Unrealized foreign currency translation gains (losses)		(1,760)		(1,109)
Unrealized gains (losses) on fixed maturity securities		9,731		10,361
Unrealized gains (losses) on derivatives		(31)		(34)
Pension liability adjustment		(278)		(284)
Treasury stock, at average cost		(17,566)		(15,904)
Total shareholders’ equity		33,552		33,559
Total liabilities and shareholders’ equity		160,597		165,086
Consolidated Entity Excluding Variable Interest Entities (VIE)
Investments and Cash:
Available for sale, fixed maturity securities		96,285		101,286
Variable Interest Entity, Consolidated
Investments and Cash:
Available for sale, fixed maturity securities		4,437		4,596
Commercial mortgage and other loans	[2]	9,543		8,964
Other investments	[2],[3]	1,272		826
Policy Liabilities:
Total liabilities	[2]	$ 356		$ 231

[1] Net of allowance for credit losses

[2] Net of allowance for credit losses

[3] Consists entirely of alternative investments in limited partnerships

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Available for sale, fixed maturity securities, amortized cost		$ 87,228	$ 91,630
Available for sale, fixed maturity securities, allowance for credit losses		0	38
Held to maturity, fixed maturity securities, fair value		27,748	30,399
Held-to-maturity, fixed maturity securities, allowance for credit losses		9	10
Commercial mortgage and other loans		11,388	10,554
Commercial mortgage and other loans, allowance for credit losses		165	180
Other investments		$ 3,612	$ 2,429
Common stock, par value (in dollars per share)		$ 0.10	$ 0.10
Common stock, shares authorized (in shares)		1,900,000	1,900,000
Common stock, shares issued (in shares)		1,352,562	1,351,018
Consolidated Entity Excluding Variable Interest Entities (VIE)
Available for sale, fixed maturity securities, amortized cost		$ 84,000	$ 88,143
Available for sale, fixed maturity securities, allowance for credit losses		0	38
Variable Interest Entity, Consolidated
Available for sale, fixed maturity securities, amortized cost	[1]	3,228	3,487
Commercial mortgage and other loans	[1]	9,543	8,964
Other investments	[1],[2]	$ 1,272	$ 826

[1] Net of allowance for credit losses

[2] Consists entirely of alternative investments in limited partnerships

XML

Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions		Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)	Treasury stock	Cumulative effect, period of adoption, adjustment	Cumulative effect, period of adoption, adjustment Common stock	Cumulative effect, period of adoption, adjustment Additional paid-in capital	Cumulative effect, period of adoption, adjustment Retained earnings	Cumulative effect, period of adoption, adjustment Accumulated other comprehensive income (loss)	Cumulative effect, period of adoption, adjustment Treasury stock	Cumulative effect, period of adoption, adjusted balance	Cumulative effect, period of adoption, adjusted balance Common stock	Cumulative effect, period of adoption, adjusted balance Additional paid-in capital	Cumulative effect, period of adoption, adjusted balance Retained earnings	Cumulative effect, period of adoption, adjusted balance Accumulated other comprehensive income (loss)	Cumulative effect, period of adoption, adjusted balance Treasury stock
Balance, beginning of period at Dec. 31, 2019		$ 28,959	$ 135	$ 2,313	$ 34,291	$ 6,615	$ (14,395)							$ 29,751	$ 135	$ 2,313	$ 34,235	$ 7,463	$ (14,395)
Balance, beginning of period (Accounting Standards Update 2016-13) at Dec. 31, 2019	[1]							$ (56)	$ 0	$ 0	$ (56)	$ 0	$ 0
Balance, beginning of period (Accounting Standards Update 2019-04) at Dec. 31, 2019	[1]							848	0	0	0	848	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		566	0	0	566	0	0
Unrealized foreign currency translation gains (losses) during period, net of income taxes		80	0	0	0	80	0
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments		(3,353)	0	0	0	(3,353)	0
Unrealized gains (losses) on derivatives during period, net of income taxes		(2)	0	0	0	(2)	0
Pension liability adjustment during period, net of income taxes		0	0	0	0	0	0
Dividends to shareholders		(202)	0	0	(202)	0	0
Exercise of stock options		5	0	5	0	0	0
Share-based compensation		7	0	7	0	0	0
Purchases of treasury stock		(476)	0	0	0	0	(476)
Treasury stock reissued		26	0	9	0	0	17
Balance, end of period at Mar. 31, 2020		26,402	135	2,334	34,599	4,188	(14,854)
Balance, beginning of period at Dec. 31, 2019		28,959	135	2,313	34,291	6,615	(14,395)							$ 29,751	$ 135	$ 2,313	$ 34,235	$ 7,463	$ (14,395)
Balance, beginning of period (Accounting Standards Update 2016-13) at Dec. 31, 2019	[1]							(56)	0	0	(56)	0	0
Balance, beginning of period (Accounting Standards Update 2019-04) at Dec. 31, 2019	[1]							$ 848	$ 0	$ 0	$ 0	$ 848	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		3,826
Balance, end of period at Sep. 30, 2020		32,479	135	2,383	37,460	7,917	(15,416)
Balance, beginning of period at Mar. 31, 2020		26,402	135	2,334	34,599	4,188	(14,854)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		805	0	0	805	0	0
Unrealized foreign currency translation gains (losses) during period, net of income taxes		74	0	0	0	74	0
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments		2,489	0	0	0	2,489	0
Unrealized gains (losses) on derivatives during period, net of income taxes		(1)	0	0	0	(1)	0
Pension liability adjustment during period, net of income taxes		0	0	0	0	0	0
Dividends to shareholders		(200)	0	0	(200)	0	0
Exercise of stock options		1	0	1	0	0	0
Share-based compensation		16	0	16	0	0	0
Purchases of treasury stock		(189)	0	0	0	0	(189)
Treasury stock reissued		23	0	7	0	0	16
Balance, end of period at Jun. 30, 2020		29,420	135	2,358	35,204	6,750	(15,027)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		2,456	0	0	2,456	0	0
Unrealized foreign currency translation gains (losses) during period, net of income taxes		179	0	0	0	179	0
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments		988	0	0	0	988	0
Unrealized gains (losses) on derivatives during period, net of income taxes		1	0	0	0	1	0
Pension liability adjustment during period, net of income taxes		(1)	0	0	0	(1)	0
Dividends to shareholders		(200)	0	0	(200)	0	0
Exercise of stock options		2	0	2	0	0	0
Share-based compensation		16	0	16	0	0	0
Purchases of treasury stock		(400)	0	0	0	0	(400)
Treasury stock reissued		18	0	7	0	0	11
Balance, end of period at Sep. 30, 2020		32,479	135	2,383	37,460	7,917	(15,416)
Balance, beginning of period at Dec. 31, 2020		33,559	135	2,410	37,984	8,934	(15,904)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		1,293	0	0	1,293	0	0
Unrealized foreign currency translation gains (losses) during period, net of income taxes		(565)	0	0	0	(565)	0
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments		(1,567)	0	0	0	(1,567)	0
Unrealized gains (losses) on derivatives during period, net of income taxes		1	0	0	0	1	0
Pension liability adjustment during period, net of income taxes		4	0	0	0	4	0
Dividends to shareholders		0	0	0	0	0	0
Exercise of stock options		9	0	9	0	0	0
Share-based compensation		9	0	9	0	0	0
Purchases of treasury stock		(668)	0	0	0	0	(668)
Treasury stock reissued		28	0	10	0	0	18
Balance, end of period at Mar. 31, 2021		32,103	135	2,438	39,277	6,807	(16,554)
Balance, beginning of period at Dec. 31, 2020		33,559	135	2,410	37,984	8,934	(15,904)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		3,286
Balance, end of period at Sep. 30, 2021		33,552	135	2,491	40,830	7,662	(17,566)
Balance, beginning of period at Mar. 31, 2021		32,103	135	2,438	39,277	6,807	(16,554)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		1,105	0	0	1,105	0	0
Unrealized foreign currency translation gains (losses) during period, net of income taxes		13	0	0	0	13	0
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments		1,198	0	0	0	1,198	0
Unrealized gains (losses) on derivatives during period, net of income taxes		0	0	0	0	0	0
Pension liability adjustment during period, net of income taxes		1	0	0	0	1	0
Dividends to shareholders		(220)	0	0	(220)	0	0
Exercise of stock options		2	0	2	0	0	0
Share-based compensation		20	0	20	0	0	0
Purchases of treasury stock		(500)	0	0	0	0	(500)
Treasury stock reissued		13	0	5	0	0	8
Balance, end of period at Jun. 30, 2021		33,735	135	2,465	40,162	8,019	(17,046)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings		888	0	0	888	0	0
Unrealized foreign currency translation gains (losses) during period, net of income taxes		(99)	0	0	0	(99)	0
Unrealized gains (losses) on fixed maturity securities during period, net of income taxes and reclassification adjustments		(261)	0	0	0	(261)	0
Unrealized gains (losses) on derivatives during period, net of income taxes		2	0	0	0	2	0
Pension liability adjustment during period, net of income taxes		1	0	0	0	1	0
Dividends to shareholders		(220)	0	0	(220)	0	0
Exercise of stock options		2	0	2	0	0	0
Share-based compensation		16	0	16	0	0	0
Purchases of treasury stock		(527)	0	0	0	0	(527)
Treasury stock reissued		15	0	8	0	0	7
Balance, end of period at Sep. 30, 2021		$ 33,552	$ 135	$ 2,491	$ 40,830	$ 7,662	$ (17,566)

[1] See Note 1 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020
Retained earnings
Dividends to shareholders (in dollars per share)	$ 0.33	$ 0.33	$ 0.00	$ 0.28	$ 0.28	$ 0.28

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net earnings	$ 3,286	$ 3,826
Adjustments to reconcile net earnings to net cash provided by operating activities:
Change in receivables and advance premiums	22	12
Capitalization of deferred policy acquisition costs	(778)	(870)
Amortization of deferred policy acquisition costs	869	914
Increase in policy liabilities	770	1,601
Change in income tax liabilities	325	(1,509)
Net investment (gains) losses	(224)	525
Other, net	(89)	102
Net cash provided (used) by operating activities	4,181	4,601
Proceeds from investments sold or matured:
Available-for-sale fixed maturity securities	2,719	2,688
Equity securities	210	217
Held-to-maturity fixed maturity securities	2	3
Commercial mortgage and other loans	2,625	1,115
Costs of investments acquired:
Available for sale fixed maturity securities	(4,187)	(3,710)
Equity securities	(458)	(275)
Commercial mortgage and other loans	(3,434)	(2,554)
Other investments, net	(929)	(405)
Settlement of derivatives, net	171	15
Cash received (pledged or returned) as collateral, net	2,123	(420)
Other, net	(13)	(185)
Net cash provided (used) by investing activities	(1,171)	(3,511)
Cash flows from financing activities:
Purchases of treasury stock	(1,676)	(1,037)
Proceeds from borrowings	1,153	1,545
Principal payments under debt obligations	(700)	(350)
Dividends paid to shareholders	(647)	(580)
Change in investment-type contracts, net	(25)	(7)
Treasury stock reissued	13	27
Other, net	(15)	(29)
Net cash provided (used) by financing activities	(1,897)	(431)
Effect of exchange rate changes on cash and cash equivalents	(46)	8
Net change in cash and cash equivalents	1,067	667
Cash and cash equivalents, beginning of period	5,141	4,896
Cash and cash equivalents, end of period	6,208	5,563
Supplemental disclosures of cash flow information:
Income taxes paid	478	626
Interest paid	146	131
Noncash interest	36	47
Noncash financing activities:
Lease obligations	36	31
Associate stock bonus
Treasury stock issued for:
Treasury stock issued	16	12
Shareholder dividend reinvestment
Treasury stock issued for:
Treasury stock issued	23	22
Share-based compensation grants
Treasury stock issued for:
Treasury stock issued	$ 4	$ 6

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States (U.S.) and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac) in the U.S. and through Aflac Life Insurance Japan Ltd. (ALIJ) in Japan. The Company’s operations consist of two reportable business segments: Aflac U.S., which includes Aflac, and Aflac Japan, which includes ALIJ. American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. With the exception of group dental and vision products administered by Argus Dental & Vision, Inc. (Argus) and certain group life insurance products, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. The Company's insurance operations in the U.S. and Japan service the two markets for the Company's insurance business. Aflac Japan's revenues, including net gains and losses on its investment portfolio, accounted for 69% and 68% of the Company's total revenues in the nine-month periods ended September 30, 2021 and 2020, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 82% at September 30, 2021, compared with 83% at December 31, 2020.

Basis of Presentation

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

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

In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of September 30, 2021 and December 31, 2020, the consolidated statements of earnings and comprehensive income (loss) for the three- and nine-month periods ended September 30, 2021 and 2020, the consolidated statement of shareholders' equity for the three-month periods ended March 31, 2021 and 2020, June 30, 2021 and 2020, and September 30, 2021 and 2020, and the consolidated statement of cash flows for the nine-month periods ended September 30, 2021 and 2020. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report).

COVID-19: The impact of the COVID-19 global pandemic on the Company continues to evolve, and its future effects remain uncertain. The Company took prompt action at the beginning of the pandemic to strengthen its capital and liquidity position, and continues to monitor its investment portfolios to adjust to market conditions, including the continuing recovery and inflation expectations. Both Aflac Japan and Aflac U.S. have accelerated investments in digital initiatives to improve productivity, efficiency and customer service over the long term.

The Company continues to closely monitor the effects and risks of COVID-19, including its variants, to assess its impact on economic conditions in Japan and the U.S. and on the Company's business, financial condition, results of operations, liquidity and capital position.

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

New Accounting Pronouncements

Accounting Pronouncements Pending Adoption

ASU 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by:

ASU 2019-09 Financial Services - Insurance: Effective Date

ASU 2020-11 Financial Services - Insurance: Effective Date and Early Application

In August 2018, the FASB issued amendments that will significantly change how insurers account for long-duration contracts. The amendments will change existing recognition, measurement, presentation, and disclosure requirements. Issues addressed in the new guidance include: 1) a requirement to review and, if there is a change, update assumptions for the liability for future policy benefits at least annually, and to update the discount rate assumption quarterly, 2) accounting for market risk benefits at fair value, 3) simplified amortization for deferred acquisition costs, and 4) enhanced financial statement presentation and disclosures.

In November 2019, the FASB issued an amendment extending the effective date for public business entities that meet the definition of an SEC filer, excluding entities eligible to be small reporting companies as defined by the SEC, by one year.

In November 2020, the FASB issued an amendment providing an additional year deferral for all insurance entities due to the impact of COVID-19. The amendments are now effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application of the amendments is permitted.

The Company continues to evaluate the impact of adoption and expects that the adoption will have a significant impact on the Company’s financial position, results of operations, and disclosures. The Company anticipates that the requirement to update assumptions for liability for future policy benefits (LFPB) will have a significant impact on its results of operations, systems, processes and controls and that the requirement to update discount rates will have a significant impact on its equity.

As part of working toward implementation of the updated standard, the Company has made progress on key accounting policy decisions, including processes to identify insurance policy groupings (cohorts) for LFPB measurement and DAC amortization purposes, applicable discount rates, development of liability cash flow and claim expense assumptions, and DAC amortization methodology.

The Company will not early adopt the updated standard and has selected the modified retrospective transition method. Based upon this transition method, the Company currently estimates that the January 1, 2021 transition date (Transition Date) impact from adoption is likely to result in a decrease in accumulated other comprehensive income (AOCI) in a range between $18 billion and $20 billion. This is due to updating the LFPB discount rate assumptions from the rates locked in for reserves held as of the Transition Date to rates determined by reference to the Transition Date market level yields for upper-medium-grade (low credit risk) fixed income instruments (as of December 31, 2020). The variability around the impact of adoption results from the Company making certain estimates, primarily related to the determination of Transition Date market level yields.

The Company has advanced and continues to refine the design of its discount rate methodology for both the U.S. and Japan insurance business. The methodology incorporates constructing a discount rate curve separately for discounting cash flows used to calculate the U.S. and Japan LFPB, with each curve intended to be reflective of the currency, tenor and characteristics of the insurance liabilities. Discount rates comprising each curve will be determined by reference to upper-medium grade (low credit risk) fixed-income instrument yields that are intended to reflect the duration characteristics of the corresponding insurance liabilities. The Company intends to use for these yields single-A rated fixed income instruments with credit ratings based on international rating standards. Where only local ratings are available, the Company intends to select the fixed-income instruments with local ratings that are equivalent to a single-A rating based on international rating standards. The methodology will be designed to prioritize observable inputs based on market data available in the local debt markets where the respective policies were issued in the currency in which the policies are

denominated. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company will use various estimation techniques consistent with the fair value guidance in ASC 820, which include, but are not limited to: (i) for tenors where there is less observable market data and/or the observable market data is available for similar instruments, estimating tenor-specific single-A credit spreads and applying them to risk-free government rates; (ii) for tenors where there is very limited or no observable single-A or similar market data, interpolation and extrapolation techniques. Discount rates will be updated each reporting period.

Long duration insurance contracts issued by the Company will be grouped into annual calendar-year cohorts based on the contract issue date, reportable segment, legal entity and product type. Limited pay contracts will be grouped into separate cohorts from other traditional products in the same manner and will be further separated based on their premium payment structures. Riders will be combined with base policies with similar insurance coverage types and the same contract issue years.

In addition to the preliminary policy elections related to cohorts and LFPB discount rates directly impacting Transition Date AOCI, the Company has also advanced the following accounting policies relevant to the post-Transition Date accounting:

•Cash flow assumptions underlying insurance liabilities will be evaluated as to whether an update is needed at least annually in the same fiscal quarter each year. To facilitate the review, experience studies will be performed annually in the consistent quarter year-to-year to substantiate assumptions, including mortality, morbidity, and terminations in future periods.

•Locked-in discount rates used for the computation of interest accretion on LFPB for policies issued on or after January 1, 2021 will be determined for each issue-year cohort as a single discount rate, calculated as the weighted-average of monthly upper-medium grade (low-credit risk) fixed-income instrument forward curves over the calendar year, determined using the methodology described above and weighted using issued annualized premiums for each issue month. The single discount rate for each issue-year cohort will remain unchanged after the calendar year of issue. Locked-in discount rates on the policies held at Transition Date reflect the locked-in rates in existence immediately before the Transition Date.

•For DAC amortization, the Company has made a preliminary election to group insurance policies into cohorts that are consistent with the groupings used in estimating the associated LFPB. DAC will be amortized on a constant-level basis for the grouped contracts over the expected remaining term of the related contracts. For both life and health products issued by Aflac Japan, the constant-level basis used will be units in force, which is a proxy for face amount and insurance in force, respectively. For life products issued by Aflac U.S., the constant level basis used will be face amount of policies in force; for health products issued by Aflac U.S., the constant level basis used will be the number of policies in force.

•The Company has made a preliminary entity-wide election to use locked-in claim expense assumptions determined for each issue-year cohort as a percentage of incurred claims; these assumptions would remain unchanged over the term of the insurance policy.

The Company has created a governance framework and a plan to support implementation of the updated standard. As part of its implementation plan, the Company has also advanced the modernization of its actuarial technology platform to enhance its modeling, data management, experience study and analytical capabilities, increase the end-to-end automation of key reporting and analytical processes and optimize its control framework. The Company has also put in place internal controls related to the new processes created as part of implementing the updated standard and will continue to refine and maturate these internal controls until the formal implementation in the first quarter of 2023.

The Company has recently begun testing its reporting and disclosure capabilities under the new ASU for post-Transition Date accounting periods.

The Company currently has no products with market risk benefits.

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

For additional information on new accounting pronouncements and recent accounting guidance and their impact, if any, on the Company's financial position, results of operations or disclosures, see Note 1 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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BUSINESS SEGMENT INFORMATION

3 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

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

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Revenues:
Aflac Japan:
Net earned premiums	$	2,934	$	3,168	$	9,045	$	9,476
Adjusted net investment income (1),(2)	763		663		2,260		1,939
Other income	10		11		32		32
Total adjusted revenue Aflac Japan	3,707		3,842		11,337		11,447
Aflac U.S.:
Net earned premiums	1,393		1,407		4,223		4,348
Adjusted net investment income (3)	191		175		557		523
Other income	32		24		90		78
Total adjusted revenue Aflac U.S.	1,616		1,606		4,870		4,949
Corporate and other (4),(5)	72		87		205		292
Total adjusted revenues	5,395		5,535		16,412		16,688
Net investment gains (losses) (1),(2),(3),(4)	(158)		130		258		(454)
Total revenues	$	5,237	$	5,665	$	16,670	$	16,234

(1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

(2) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

(3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

(4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.

(5) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, are included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Pretax earnings:
Aflac Japan (1),(2)	$	976	$	747	$	2,867	$	2,442
Aflac U.S. (3)	358		329		1,217		1,082
Corporate and other (4),(5),(6)	(41)		(39)		(144)		(69)
Pretax adjusted earnings (7)	1,293		1,037		3,940		3,455
Net investment gains (losses) (1),(2),(3),(4),(5)	(172)		117		216		(497)
Other income (loss)	(8)		(1)		(66)		(16)
Total earnings before income taxes	$	1,113	$	1,153	$	4,090	$	2,942
Income taxes applicable to pretax adjusted earnings	$	262	$	43	$	771	$	659
Effect of foreign currency translation on after-tax   adjusted earnings	(14)		3		(8)		17

(1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

(2) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

(3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

(4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.

(5) A gain of $14 and $13 for the three-month periods and $41 and $43 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.

(6) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, is included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

(7) Includes $40 and $44 for the three-month periods and $130 and $122 for the nine-month periods ended September 30, 2021, and 2020, respectively, of interest expense on debt.

Assets were as follows:

(In millions)	September 30, 2021			December 31, 2020
Assets:
Aflac Japan		$	131,651		$	137,271
Aflac U.S.		23,304			22,864
Corporate and other		5,642			4,951
Total assets		$	160,597		$	165,086

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INVESTMENTS

9 Months Ended

Sep. 30, 2021

Investments [Abstract]

INVESTMENTS

INVESTMENTS

Investment Holdings

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

	September 30, 2021
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair   value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	31,549	$	0	$	3,574	$	62	$	35,061
Municipalities	1,224		0		323		5		1,542
Mortgage- and asset-backed securities	310		0		21		1		330
Public utilities	4,584		0		930		2		5,512
Sovereign and supranational	781		0		81		0		862
Banks/financial institutions	7,149		0		834		66		7,917
Other corporate	7,377		0		1,575		22		8,930
Total yen-denominated	52,974		0		7,338		158		60,154
U.S. dollar-denominated:
U.S. government and agencies	155		0		10		0		165
Municipalities	1,217		0		179		1		1,395
Mortgage- and asset-backed securities	932		0		30		0		962
Public utilities	3,887		0		920		4		4,803
Sovereign and supranational	225		0		59		4		280
Banks/financial institutions	3,081		0		745		1		3,825
Other corporate	24,757		0		4,448		67		29,138
Total U.S. dollar-denominated	34,254		0		6,391		77		40,568
Total securities available for sale	$	87,228	$	0	$	13,729	$	235	$	100,722

	December 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair   value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	32,959	$	0	$	4,182	$	52	$	37,089
Municipalities	1,324		0		374		5		1,693
Mortgage- and asset-backed securities	342		0		27		1		368
Public utilities	4,777		0		1,096		1		5,872
Sovereign and supranational	981		0		108		0		1,089
Banks/financial institutions	7,552		0		886		102		8,336
Other corporate	8,114		0		1,747		37		9,824
Total yen-denominated	56,049		0		8,420		198		64,271
U.S. dollar-denominated:
U.S. government and agencies	245		0		16		0		261
Municipalities	1,154		0		173		2		1,325
Mortgage- and asset-backed securities	667		0		8		5		670
Public utilities	4,013		0		947		15		4,945
Sovereign and supranational	232		0		64		3		293
Banks/financial institutions	2,973		0		758		7		3,724
Other corporate	26,297		38		4,385		251		30,393
Total U.S. dollar-denominated	35,581		38		6,351		283		41,611
Total securities available for sale	$	91,630	$	38	$	14,771	$	481	$	105,882

	September 30, 2021
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity, carried at   amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	21,676	$	3	$	21,673	$	4,868	$	0	$	26,541
Municipalities	346		0		346		107		0		453
Public utilities	45		1		44		13		0		57
Sovereign and supranational	533		5		528		139		0		667
Other corporate	22		0		22		8		0		30
Total yen-denominated	22,622		9		22,613		5,135		0		27,748
Total securities held to maturity	$	22,622	$	9	$	22,613	$	5,135	$	0	$	27,748

	December 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity, carried at   amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	23,448	$	3	$	23,445	$	5,625	$	0	$	29,070
Municipalities	377		0		377		122		0		499
Public utilities	48		1		47		14		0		61
Sovereign and supranational	577		6		571		165		0		736
Other corporate	24		0		24		9		0		33
Total yen-denominated	24,474		10		24,464		5,935		0		30,399
Total securities held to maturity	$	24,474	$	10	$	24,464	$	5,935	$	0	$	30,399

(In millions)	September 30, 2021			December 31, 2020
Equity securities, carried at fair value through net earnings:	Fair Value			Fair Value
Equity securities:
Yen-denominated		$	753		$	680
U.S. dollar-denominated		667			603
Other currencies		41			0
Total equity securities		$	1,461		$	1,283

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

During the first nine months of 2021, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During the second and third quarter of 2020, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During the first quarter of 2020, as a result of the adoption of ASU 2019-04, the Company reclassified $6.9 billion (at amortized cost) of pre-payable fixed-maturity securities from the held-to-maturity category to the available-for-sale category. This reclassification resulted in recording in accumulated other comprehensive income a net unrealized gain of $848 million on an after-tax basis.

Contractual and Economic Maturities

The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2021, were as follows:

(In millions)	Amortized Cost (1)			Fair Value
Available for sale:
Due in one year or less		$	914		$	930
Due after one year through five years		8,302			8,909
Due after five years through 10 years		13,291			15,565
Due after 10 years		63,479			74,026
Mortgage- and asset-backed securities		1,242			1,292
Total fixed maturity securities available for sale		$	87,228		$	100,722
Held to maturity:
Due in one year or less		$	0		$	0
Due after one year through five years		45			49
Due after five years through 10 years		8,753			10,207
Due after 10 years		13,815			17,492
Mortgage- and asset-backed securities		0			0
Total fixed maturity securities held to maturity		$	22,613		$	27,748

(1) Net of allowance for credit losses

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

Investment Concentrations

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

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

	September 30, 2021			December 31, 2020
(In millions)	Credit Rating	Amortized Cost	Fair Value	Credit Rating	Amortized Cost	Fair Value
Japan National Government(1)	A+	$51,953	$60,106	A+	$55,153	$64,657

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

Net Investment Gains and Losses

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales	$	24	$	7	$	40	$	28
Gross losses from sales	(36)		0		(39)		(46)
Foreign currency gains (losses) on sales and redemptions	(2)		(5)		(21)		(39)
Total sales and redemptions	(14)		2		(20)		(57)
Equity securities	(119)		12		(17)		(106)
Credit losses:
Fixed maturity securities available for sale	27		0		38		(75)
Fixed maturity securities held to maturity	0		0		1		1
Commercial mortgage and other loans	(29)		78		15		(86)
Impairment losses	0		0		(20)		0
Loan commitments	3		64		3		(17)
Reinsurance recoverables and other	0		0		(2)		(2)
Total credit losses	1		142		35		(179)
Derivatives and other:
Derivative gains (losses)	(174)		138		(557)		173
Foreign currency gains (losses)	135		(186)		783		(356)
Total derivatives and other	(39)		(48)		226		(183)
Total net investment gains (losses)	$	(171)	$	108	$	224	$	(525)

The unrealized holding gains, net of losses, recorded as a component of net investment gains and losses for the three-month period ended September 30, 2021, that relate to equity securities still held at the September 30, 2021 reporting date, were $170 million. The unrealized holding losses, net of gains, recorded as a component of net investment gains and losses for the nine-month period ended September 30, 2021, that relate to equity securities still held at the September 30, 2021 reporting date, were $33 million.

Unrealized Investment Gains and Losses

Effect on Shareholders’ Equity

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

(In millions)	September 30, 2021			December 31, 2020
Unrealized gains (losses) on securities available for sale		$	13,494		$	14,290
Deferred income taxes		(3,763)			(3,929)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities		$	9,731		$	10,361

Gross Unrealized Loss Aging

The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the periods ended September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	September 30, 2021
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available    for sale:
Japan government and       agencies:
Yen-denominated		$	2,980		$	62		$	342		$	2		$	2,638		$	60
Municipalities:
U.S. dollar-denominated		56			1			56			1			0			0
Yen-denominated		168			5			30			0			138			5
Mortgage- and asset-     backed securities:
Yen-denominated		34			1			0			0			34			1
Public utilities:
U.S. dollar-denominated		195			4			108			2			87			2
Yen-denominated		242			2			182			1			60			1
Sovereign and supranational:
U.S. dollar-denominated		6			4			6			1			0			3
Banks/financial institutions:
U.S. dollar-denominated		152			1			146			1			6			0
Yen-denominated		1,824			66			735			5			1,089			61
Other corporate:
U.S. dollar-denominated		1,731			67			898			17			833			50
Yen-denominated		558			22			106			1			452			21
Total		$	7,946		$	235		$	2,609		$	31		$	5,337		$	204

	December 31, 2020
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available    for sale:
Japan government and       agencies:
Yen-denominated		$	2,604		$	52		$	2,604		$	52		$	0		$	0
Municipalities:
U.S. dollar-denominated		94			2			94			2			0			0
Yen-denominated		183			5			169			4			14			1
Mortgage- and asset-     backed securities:
U.S. dollar-denominated		360			5			360			5			0			0
Yen-denominated		37			1			37			1			0			0
Public utilities:
U.S. dollar-denominated		326			15			208			7			118			8
Yen-denominated		135			1			135			1			0			0
Sovereign and supranational:
U.S. dollar-denominated		39			3			39			3			0			0
Banks/financial institutions:
U.S. dollar-denominated		82			7			44			1			38			6
Yen-denominated		1,809			102			765			36			1,044			66
Other corporate:
U.S. dollar-denominated		4,499			251			2,157			59			2,342			192
Yen-denominated		613			37			290			13			323			24
Total		$	10,781		$	481		$	6,902		$	184		$	3,879		$	297

Analysis of Securities in Unrealized Loss Positions

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

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

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

However, from time to time the Company identifies certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a

result, a credit allowance will be calculated. Refer to the Allowance for Credit Losses section below for additional information.

Commercial Mortgage and Other Loans

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

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

(In millions)	September 30, 2021				December 31, 2020
	Amortized Cost		% of Total		Amortized Cost		% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office	$	1,944	16.8	%	$	2,115	19.7	%
Retail	140		1.2		125		1.2
Apartments/Multi-Family	1,666		14.4		1,782		16.6
Industrial	46		0.4		85		.8
Hospitality	1,075		9.3		1,106		10.3
Other	340		3.0		81		.7
Total transitional real estate loans	5,211		45.1		5,294		49.3
Commercial mortgage loans:
Office	395		3.4		401		3.7
Retail	334		3.0		340		3.2
Apartments/Multi-Family	640		5.5		588		5.5
Industrial	478		4.1		391		3.6
Other	14		0.1		0		0.0
Total commercial mortgage loans	1,861		16.1		1,720		16.0
Middle market loans	4,481		38.8		3,720		34.7
Total commercial mortgage and other loans	$	11,553	100.0	%	$	10,734	100.0	%
Allowance for credit losses	(165)				(180)
Total net commercial mortgage and other loans	$	11,388			$	10,554

CMLs and TREs were secured by properties entirely within the U.S. (with the largest concentrations in California (18%), Texas (13%) and Florida (9%)). Middle market loans are issued only to companies domiciled within the U.S. and Canada.

Transitional Real Estate Loans

TREs are commercial mortgage loans that are typically relatively short-term floating rate instruments secured by a first lien on the property. These loans provide funding for properties undergoing a change in their physical characteristics and/or economic profile and do not typically require any principal repayment prior to the maturity date. This loan portfolio is generally considered to be investment grade. As of September 30, 2021, the Company had $645 million in outstanding commitments to fund TREs. These commitments are contingent on the final underwriting and due diligence to be performed.

Commercial Mortgage Loans

CMLs are typically fixed rate loans on commercial real estate with partial repayment of principal over the life of the loan with the remaining outstanding principal being repaid upon maturity. This loan portfolio is generally considered higher quality investment grade loans. As of September 30, 2021, the Company had no outstanding commitments to fund CMLs. These commitments are contingent on the final underwriting and due diligence to be performed.

Middle Market Loans

MMLs are typically first lien senior secured cash flow loans to small to mid-size companies for working capital, refinancing, acquisition, and recapitalization. These loans are generally considered to be below investment grade. The carrying value for MMLs included $25 million for a short term credit facility that is reflected in other liabilities on the consolidated balance sheets, as of September 30, 2021, and December 31, 2020.

As of September 30, 2021, the Company had commitments of approximately $1.7 billion to fund future MMLs. These commitments are contingent upon the availability of middle market loans that meet the Company's underwriting criteria.

Credit Quality Indicators

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

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

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

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

The following tables present as of September 30, 2021 the amortized cost basis of TREs, CMLs and MMLs by year of origination and credit quality indicator.

Transitional Real Estate Loans
(In millions)	2021		2020		2019		2018		2017		Total
Loan-to-Value Ratio:
0%-59.99%	$	449	$	55	$	439	$	353	$	77	$	1,373
60%-69.99%	417		136		831		543		182		2,109
70%-79.99%	569		184		443		323		182		1,701
80% or greater	0		28		0		0		0		28
Total	$	1,435	$	403	$	1,713	$	1,219	$	441	$	5,211

Commercial Mortgage Loans
(In millions)	2021		2020		2019		2018		2017		Prior		Total		Weighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%	$	174	$	47	$	559	$	168	$	68	$	561	$	1,577	2.51
60%-69.99%	34		0		87		0		0		138		259		1.97
70%-79.99%	0		0		0		0		0		25		25		1.67
Total	208		47		646		168		68		724		1,861		2.42
Weighted Average DSCR	2.49		1.94		2.55		2.32		2.78		2.30

Middle Market Loans
(In millions)	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
Credit Ratings:
BBB	$	54	$	78	$	51	$	39	$	10	$	3	$	68	$	303
BB	346		347		283		163		106		27		221		1,493
B	357		493		635		323		154		121		170		2,253
CCC	0		19		64		81		79		49		87		379
CC	0		0		0		14		26		0		5		45
C and lower	0		8		0		0		0		0		0		8
Total	$	757	$	945	$	1,033	$	620	$	375	$	200	$	551	$	4,481

Allowance for Credit Losses

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

The credit allowance for held-to-maturity fixed maturity securities and loan receivables is estimated using a PD / LGD method, discounted for the time value of money. For held-to-maturity fixed maturity securities, available-for-sale fixed maturity securities and loan receivables, the Company includes the change in present value due to the passage of time in the change in the allowance for credit losses. The Company’s methodology for estimating credit losses utilizes the contractual maturity date of the financial asset, adjusted when necessary to reflect the expected timing of repayment (such as prepayment options, renewal options, call options, or extension options). The Company applies reasonable and supportable forecasts of macroeconomic variables that impact the determination of PD/LGD over a two-year period for

held-to-maturity fixed maturity securities and MMLs. The Company reverts to historical loss information over one year, following the two-year forecast period. For the CML and TRE portfolio, the Company applies reasonable and supportable forecasts of macroeconomic variables as well as national and local real-estate market factors to estimate future credit losses where the market factors revert back to historical levels over time with the period being dependent on current market conditions, projected market conditions and difference in the current and historical market levels for each factor. The Company continuously monitors the estimation methodology, due to changes in portfolio composition, changes in underwriting practices and significant events or conditions and makes adjustments as necessary.

The Company’s held-to-maturity fixed maturity portfolio includes Japan Government and Agency securities of $21.5 billion amortized cost as of September 30, 2021 that meet the requirements for zero-credit-loss expectation and therefore these asset classes have been excluded from the current expected credit loss measurement.

An investment in an available-for-sale fixed maturity security is impaired if the fair value falls below amortized cost. The Company regularly reviews its fixed maturity security investments portfolio for declines in fair value. The Company's debt impairment model focuses on the ultimate collection of the cash flows from its investments and whether the Company has the intent to sell or if it is more likely than not the Company would be required to sell the security prior to recovery of its amortized cost. The determination of the amount of impairments under this model is based upon the Company's periodic evaluation and assessment of known and inherent risks associated with the respective securities. Such evaluations and assessments are revised as conditions change and new information becomes available.

When determining the Company's intention to sell a security prior to recovery of its fair value to amortized cost, the Company evaluates facts and circumstances such as, but not limited to, future cash flow needs, decisions to reposition its security portfolio, and risk profile of individual investment holdings. The Company performs ongoing analyses of its liquidity needs, which includes cash flow testing of its policy liabilities, debt maturities, projected dividend payments, and other cash flow and liquidity needs.

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

The Company granted certain loan modifications in its MML and TRE portfolios during the period ended September 30, 2021. As of September 30, 2021, these loan modifications did not have a material impact on the Company’s results of operations.

The Company had no troubled debt restructurings (TDRs) during the period ended September 30, 2021 and an immaterial amount due to COVID-19 during the year ended December 31, 2020.

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

As of September 30, 2021 and December 31, 2020, the Company had an immaterial amount of loans or fixed maturities on nonaccrual status.

The following table presents the roll forward of the allowance for credit losses by portfolio segment.

(in millions)	Transitional Real Estate Loans		Commercial Mortgage Loans		Middle Market Loans		Held to Maturity Securities		Available for Sale Securities		Reinsurance Recoverables
Three Months Ended September 30, 2021:
Balance at June 30, 2021	$	(41)	$	(22)	$	(76)	$	(8)	$	(26)	$	(13)
(Addition to) release of allowance for credit    losses	(18)		5		(13)		(1)		0		0
Write-offs, net of recoveries	0		0		0		0		26		0
Balance at September 30, 2021	$	(59)	$	(17)	$	(89)	$	(9)	$	0	$	(13)
Three Months Ended September 30, 2020:
Balance at June 30, 2020	$	(66)	$	(42)	$	(134)	$	(9)	$	(38)	$	(11)
(Addition to) release of allowance for credit    losses	13		14		59		0		(1)		0
Write-offs, net of recoveries	0		0		(9)		0		1		0
Balance at September 30, 2020	$	(53)	$	(28)	$	(84)	$	(9)	$	(38)	$	(11)
Nine Months Ended September 30, 2021:
Balance at December 31, 2020	$	(63)	$	(32)	$	(85)	$	(10)	$	(38)	$	(12)
(Addition to) release of allowance for credit    losses	4		15		(4)		1		26		(1)
Write-offs, net of recoveries	0		0		0		0		12		0
Balance at September 30, 2021	$	(59)	$	(17)	$	(89)	$	(9)	$	0	$	(13)
Nine Months Ended September 30, 2020:
Balance at December 31, 2019 (1)	$	(22)	$	(3)	$	(20)	$	0	$	0	$	0
Transition impact to retained earnings	(2)		(8)		(33)		(10)		0		(11)
(Addition to) release of allowance for credit    losses	(29)		(17)		(31)		1		(75)		0
Write-offs, net of recoveries	0		0		0		0		37		0
Balance at September 30, 2020	$	(53)	$	(28)	$	(84)	$	(9)	$	(38)	$	(11)

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

For assets that are subject to the credit loss measurement, the change in credit loss allowance will be significantly impacted by purchases and sales in those assets during the period as well as entering into new non-cancelable loan commitments. The estimate of credit losses for loan commitments as of September 30, 2021 was $32 million.

Other Investments

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

(In millions)	September 30, 2021			December 31, 2020
Other investments:
Policy loans		$	241		$	260
Short-term investments (1)		1,833			1,139
Limited partnerships		1,519			1,004
Other		19			26
Total other investments		$	3,612		$	2,429

(1) Includes securities lending collateral

The Parent Company invests in partnerships that specialize in rehabilitating historic structures or the installation of solar equipment in order to receive federal historic rehabilitation and solar tax credits. These investments are classified as limited partnerships and included in other investments in the consolidated balance sheet. The change in value of each investment is recorded as a reduction to net investment income. Offsetting tax credits generated by these investments are recorded as an income tax benefit in the consolidated statement of earnings.

As of September 30, 2021, the Company had $1.9 billion in outstanding commitments to fund alternative investments in limited partnerships.

Variable Interest Entities (VIEs)

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

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

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

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

VIEs - Consolidated

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

Investments in Consolidated Variable Interest Entities

	September 30, 2021						December 31, 2020
(In millions)	Amortized Cost (1)			Fair Value			Amortized Cost (1)			Fair Value
Assets:
Fixed maturity securities, available for sale		$	3,228		$	4,437		$	3,487		$	4,596
Commercial mortgage and other loans		9,543			9,723			8,964			9,040
Other investments (2)		1,272			1,272			826			826
Other assets (3)		99			99			133			133
Total assets of consolidated VIEs		$	14,142		$	15,531		$	13,410		$	14,595
Liabilities:
Other liabilities (3)		$	356		$	356		$	231		$	231
Total liabilities of consolidated VIEs		$	356		$	356		$	231		$	231

(1) Net of allowance for credit losses

(2) Consists entirely of alternative investments in limited partnerships

(3) Consists entirely of derivatives

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

With the exception of its investment in unit trust structures, the underlying collateral assets and funding of the Company's consolidated VIEs are generally static in nature.

Investments in Unit Trust Structures

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

VIEs - Not Consolidated

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

Investments in Variable Interest Entities Not Consolidated

	September 30, 2021						December 31, 2020
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	4,990		$	6,119		$	5,477		$	6,767
Other investments (1)		247			247			178			178
Total investments in VIEs not consolidated		$	5,237		$	6,366		$	5,655		$	6,945

(1) Consists entirely of alternative investments in limited partnerships

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

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

Securities Lending and Pledged Securities

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

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

Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
	September 30, 2021						December 31, 2020
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total		Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Fixed maturity securities:
Japan government and   agencies	$	0	$	1,587	$	1,587	$	0	$	0	$	0
Public utilities	27		0		27		57		0		57
Sovereign and supranational	2		0		2		3		0		3
Banks/financial institutions	81		0		81		63		0		63
Other corporate	1,152		0		1,152		841		0		841
Total borrowings	$	1,262	$	1,587	$	2,849	$	964	$	0	$	964
Gross amount of recognized liabilities for securities    lending transactions					$	2,849					$	964

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

In connection with securities lending, in addition to cash collateral received, the Company received from counterparties securities collateral of $7,969 million and $6,654 million at September 30, 2021 and December 31, 2020, respectively, which may not be sold or re-pledged, unless the counterparty is in default. Such securities collateral is not reflected on the consolidated financial statements.

The Company did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of September 30, 2021, and December 31, 2020, respectively.

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

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DERIVATIVE INSTRUMENTS

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

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

•foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio, with options used on a standalone basis and/or in a collar strategy

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

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

•foreign currency swaps that are associated with VIE bond purchase commitments, and investments in special-purpose entities, including VIEs where the Company is the primary beneficiary

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

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

•bond purchase commitments at the inception of investments in consolidated VIEs.

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

Derivative Types

Foreign currency forwards and options are executed for the Aflac Japan segment in order to hedge the currency risk on the carrying value of certain U.S. dollar-denominated investments. The average maturity of these forwards and options can change depending on factors such as market conditions and types of investments being held. In situations where the maturity of the forwards and options is shorter than the underlying investment being hedged, the Company may enter into new forwards and options near maturity of the existing derivative in order to continue hedging the underlying investment. In forward transactions, Aflac Japan agrees with another party to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. Aflac Japan also executes foreign currency option transactions in a collar strategy, where Aflac Japan agrees with another party to simultaneously purchase put options and sell call options. In the purchased put transactions, Aflac Japan obtains the option to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. In the sold call transactions, Aflac Japan agrees to sell a fixed amount of yen and buy a corresponding amount of U.S. dollars at a specified future date. The combination of purchasing the put option and selling the call option results in no net premium being paid (i.e. a costless or zero-cost collar). The Company also uses one sided foreign currency put options to mitigate the settlement risk on U.S. dollar-denominated assets related to extreme foreign currency rate changes.

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

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

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

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

Bond purchase commitments result from repackaged bond structures that are consolidated VIEs whereby there is a delay in the trade date and settlement date of the bond within the structure to ensure completion of all necessary legal agreements to support the consolidated VIE that issues the repackaged bond. Since the Company has a commitment to purchase the underlying bond at a specified price, the agreement meets the definition of a derivative where the value is derived based on the current market value of the bond compared to the fixed purchase price to be paid on the settlement date.

Derivative Balance Sheet Classification

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

		September 30, 2021									December 31, 2020
(In millions)				Asset Derivatives			Liability Derivatives						Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative   Type	Notional Amount			Fair Value			Fair Value			Notional Amount			Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps - VIE		$	18		$	0		$	2		$	18		$	0		$	1
Total cash flow hedges		18			0			2			18			0			1
Fair value hedges:
Foreign currency forwards		62			0			3			64			2			0
Foreign currency options		8,410			1			0			8,865			0			0
Total fair value hedges		8,472			1			3			8,929			2			0
Net investment hedge:
Foreign currency forwards		4,996			240			0			5,010			14			84
Foreign currency options		1,954			0			0			2,027			1			0
Total net investment hedge		6,950			240			0			7,037			15			84
Non-qualifying strategies:
Foreign currency swaps		2,250			52			22			2,250			47			81
Foreign currency swaps - VIE		3,141			99			354			2,857			133			230
Foreign currency forwards		14,153			353			872			26,528			386			301
Foreign currency options		3,165			0			0			11,037			0			0
Interest rate swaps		3,500			0			16			0			0			0
Forward bond purchase commitment - VIE		45			0			1			0			0			0
Total non-qualifying strategies		26,254			504			1,265			42,672			566			612
Total derivatives		$	41,694		$	745		$	1,270		$	58,656		$	583		$	697

Cash Flow Hedges

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

Fair Value Hedges

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

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

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

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

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

Fair Value Hedging Relationships

(In millions)		Hedging Derivatives						Hedged Items
Hedging Derivatives	Hedged Items	Total Gains (Losses)		Gains (Losses) Excluded from Effectiveness Testing(1)		Gains (Losses) Included in Effectiveness Testing(2)		Gains (Losses)(2)		Net Investment Gains (Losses) Recognized for Fair Value Hedge
Three Months Ended September 30, 2021:
Foreign currency forwards	Fixed maturity securities	$	(1)	$	0	$	(1)	$	1	$	0
Foreign currency options	Fixed maturity securities	(5)		(5)		0		0		0
Total gains (losses)		$	(6)	$	(5)	$	(1)	$	1	$	0
Nine Months Ended September 30, 2021:
Foreign currency forwards	Fixed maturity securities	$	(5)	$	0	$	(5)	$	5	$	0
Foreign currency options	Fixed maturity securities	(16)		(15)		(1)		4		3
Total gains (losses)		$	(21)	$	(15)	$	(6)	$	9	$	3
Three Months Ended September 30, 2020:
Foreign currency forwards	Fixed maturity securities	$	1	$	0	$	1	$	(1)	$	0
Foreign currency options	Fixed maturity securities	(2)		(2)		0		0		0
Total gains (losses)		$	(1)	$	(2)	$	1	$	(1)	$	0
Nine Months Ended September 30, 2020:
Foreign currency forwards	Fixed maturity securities	$	(15)	$	(8)	$	(7)	$	8	$	1
Foreign currency options	Fixed maturity securities	(4)		(3)		(1)		1		0
Total gains (losses)		$	(19)	$	(11)	$	(8)	$	9	$	1

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

(2) Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month and nine-month periods ended September 30, 2021 and 2020, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial.

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

(In millions)	Carrying Amount of the Hedged Assets/(Liabilities)(1)					Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
		September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Fixed maturity securities		$	3,261	$	4,331	$	216	$	237

(1) The balance includes hedging adjustment on discontinued hedging relationships of $216 in 2021 and $237 in 2020.

Net Investment Hedge

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

The Company's net investment hedge was effective during the three- and nine-month periods ended September 30, 2021 and 2020, respectively.

Non-qualifying Strategies

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

As of September 30, 2021, the Parent Company had $2.3 billion notional amount of cross-currency interest rate swap agreements related to certain of its U.S. dollar-denominated senior notes to effectively convert a portion of the interest on the notes from U.S dollar to Japanese yen. Changes in the values of these swaps are recorded through current period earnings. For additional information regarding these swaps, see Note 9 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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

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

Impact of Derivatives and Hedging Instruments

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

	Three Months Ended September 30,
	2021										2020
(In millions)	Net Investment Income (1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)			Net Investment Income (1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	0		$	(1)			$	1		$	0		$	0			$	2
Total cash flow hedges		0			(1)		(3)		1			0			0		(3)		2
Fair value hedges:
Foreign currency forwards (3)					0										0
Foreign currency options (3)					(5)										(2)
Interest rate swaptions (3)		(1)			(1)				1			0			0				0
Total fair value hedges		(1)			(6)				1			0			(2)				0
Net investment hedge:
Non-derivative hedging           instruments					0				41						0				(51)
Foreign currency forwards					(42)				55						(16)				(91)
Foreign currency options					(1)				0						(2)				0
Total net investment hedge					(43)				96						(18)				(142)
Non-qualifying strategies:
Foreign currency swaps					6										(27)
Foreign currency swaps - VIE					(36)										40
Foreign currency forwards					(84)										139
Foreign currency options					0										4
Interest rate swaps					(9)										0
Forward bond purchase          commitment- VIE					(1)										2
Total non- qualifying strategies					(124)										158
Total		$	(1)		$	(174)			$	98		$	0		$	138			$	(140)

(1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items.

(2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

(3) Impact of cash flow hedges reported as net investment gains (losses) includes $1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the three-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail).

	Nine Months Ended September 30,
	2021										2020
(In millions)	Net Investment Income(1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)			Net Investment Income(1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	0		$	(3)			$	2		$	(1)		$	0			$	(4)
Total cash flow hedges		0			(3)		(3)		2			(1)			0		(3)		(4)
Fair value hedges:
Foreign currency forwards(3)					0										(7)
Foreign currency options(3)					(12)										(3)
Interest rate swaptions(3)		(1)			(1)				1			(1)			0				1
Total fair value hedges		(1)			(13)				1			(1)			(10)				1
Net investment hedge:
Non-derivative hedging          instruments					0				237						0				(72)
Foreign currency forwards					7				396						136				(166)
Foreign currency options					(4)				0						(3)				0
Total net investment hedge					3				633						133				(238)
Non-qualifying strategies:
Foreign currency swaps					105										54
Foreign currency swaps - VIE					(115)										(185)
Foreign currency forwards					(527)										133
Foreign currency options					1										(1)
Interest rate swaps					(6)										49
Forward bond purchase   commitment - VIE					(2)										0
Total non-qualifying strategies					(544)										50
Total		$	(1)		$	(557)			$	636		$	(2)		$	173			$	(241)

(1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items.

(2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

(3) Impact of cash flow hedges reported as net investment gains (losses) includes $3 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail).

As of September 30, 2021, $5 million of deferred losses on derivative instruments recorded in accumulated other comprehensive income are expected to be reclassified to earnings during the next twelve months.

Credit Risk Assumed through Derivatives

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

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

As of September 30, 2021, all of the Company's derivative agreement counterparties were investment grade.

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

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

Collateral posted by the Company to third parties for derivative transactions can generally be repledged or resold by the counterparties. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $694 million and $268 million as of September 30, 2021, and December 31, 2020, respectively. If the credit-risk-related contingent features underlying these agreements had been triggered on September 30, 2021, the Company estimates that it would be required to post a maximum of $169 million of additional collateral to these derivative counterparties. The Company is generally allowed to sell or repledge collateral obtained from its derivative counterparties, although it does not typically exercise such rights. (See the Offsetting tables below for collateral posted or received as of the reported balance sheet dates.)

Offsetting of Financial Instruments and Derivatives

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

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

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

Offsetting of Financial Assets and Derivative Assets

September 30, 2021
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Received			Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	646		$	0		$	646		$	(375)	$	(21)		$	(249)		$	1
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		646			0			646			(375)		(21)			(249)			1
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		99						99											99
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		99						99											99
Total derivative       assets		745			0			745			(375)		(21)			(249)			100
Securities lending    and similar    arrangements		2,827			0			2,827			0		0			(2,827)			0
Total		$	3,572		$	0		$	3,572		$	(375)	$	(21)		$	(3,076)		$	100

December 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Received			Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	450		$	0		$	450		$	(295)	$	(73)		$	(76)		$	6
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		450			0			450			(295)		(73)			(76)			6
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		133						133											133
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		133						133											133
Total derivative       assets		583			0			583			(295)		(73)			(76)			139
Securities lending    and similar    arrangements		940			0			940			0		0			(940)			0
Total		$	1,523		$	0		$	1,523		$	(295)	$	(73)		$	(1,016)		$	139

Offsetting of Financial Liabilities and Derivative Liabilities

September 30, 2021
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Pledged			Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	898		$	0		$	898		$	(375)	$	(491)		$	(19)		$	13
OTC - cleared		16			0			16			0		0			(15)			1
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		914			0			914			(375)		(491)			(34)			14
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		356						356											356
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		356						356											356
Total derivative       liabilities		1,270			0			1,270			(375)		(491)			(34)			370
Securities lending    and similar    arrangements		2,849			0			2,849			(2,827)		0			0			22
Total		$	4,119		$	0		$	4,119		$	(3,202)	$	(491)		$	(34)		$	392

December 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Pledged			Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	466		$	0		$	466		$	(295)	$	(43)		$	(69)		$	59
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		466			0			466			(295)		(43)			(69)			59
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		231						231											231
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		231						231											231
Total derivative       liabilities		697			0			697			(295)		(43)			(69)			290
Securities lending    and similar    arrangements		964			0			964			(940)		0			0			24
Total		$	1,661		$	0		$	1,661		$	(1,235)	$	(43)		$	(69)		$	314

For additional information on the Company's financial instruments, see the accompanying Notes 1, 3 and 5 and Notes 1, 3 and 5 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Fair Value Hierarchy

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

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

	September 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at   fair value:
Fixed maturity securities:
Government and agencies		$	33,903		$	1,323		$	0		$	35,226
Municipalities		0			2,937			0			2,937
Mortgage- and asset-backed securities		0			1,042			250			1,292
Public utilities		0			9,792			523			10,315
Sovereign and supranational		0			1,097			45			1,142
Banks/financial institutions		0			11,696			46			11,742
Other corporate		0			37,762			306			38,068
Total fixed maturity securities		33,903			65,649			1,170			100,722
Equity securities		1,210			90			161			1,461
Other investments		1,833			0			0			1,833
Cash and cash equivalents		6,208			0			0			6,208
Other assets:
Foreign currency swaps		0			52			99			151
Foreign currency forwards		0			593			0			593
Foreign currency options		0			1			0			1
Total other assets		0			646			99			745
Total assets		$	43,154		$	66,385		$	1,430		$	110,969
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	22		$	356		$	378
Foreign currency forwards		0			875			0			875
Interest rate swaps		0			16			0			16
Forward bond purchase commitment		0			1			0			1
Total liabilities		$	0		$	914		$	356		$	1,270

	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at   fair value:
Fixed maturity securities:
Government and agencies		$	36,032		$	1,318		$	0		$	37,350
Municipalities		0			3,018			0			3,018
Mortgage- and asset-backed securities		0			814			224			1,038
Public utilities		0			10,395			422			10,817
Sovereign and supranational		0			1,334			48			1,382
Banks/financial institutions		0			12,036			24			12,060
Other corporate		0			39,918			299			40,217
Total fixed maturity securities		36,032			68,833			1,017			105,882
Equity securities		1,095			86			102			1,283
Other investments		1,139			0			0			1,139
Cash and cash equivalents		5,141			0			0			5,141
Other assets:
Foreign currency swaps		0			47			133			180
Foreign currency forwards		0			402			0			402
Foreign currency options		0			1			0			1
Total other assets		0			450			133			583
Total assets		$	43,407		$	69,369		$	1,252		$	114,028
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	81		$	231		$	312
Foreign currency forwards		0			385			0			385
Total liabilities		$	0		$	466		$	231		$	697

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

	September 30, 2021
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity,     carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	21,673		$	26,304		$	237		$	0		$	26,541
Municipalities		346			0			453			0			453
Public utilities		44			0			57			0			57
Sovereign and    supranational		528			0			667			0			667
Other corporate		22			0			30			0			30
Commercial mortgage and     other loans		11,388			0			0			11,596			11,596
Other investments (1)		19			0			19			0			19
Total assets		$	34,020		$	26,304		$	1,463		$	11,596		$	39,363
Liabilities:
Other policyholders’ funds		$	7,286		$	0		$	0		$	7,175		$	7,175
Notes payable    (excluding leases)		7,937			0			8,416			266			8,682
Total liabilities		$	15,223		$	0		$	8,416		$	7,441		$	15,857

(1) Excludes policy loans of $241 and equity method investments of $1,519, at carrying value

	December 31, 2020
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity,    carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	23,445		$	28,810		$	260		$	0		$	29,070
Municipalities		377			0			499			0			499
Public utilities		47			0			61			0			61
Sovereign and    supranational		571			0			736			0			736
Other corporate		24			0			33			0			33
Commercial mortgage and     other loans		10,554			0			0			10,655			10,655
Other investments (1)		26			0			26			0			26
Total assets		$	35,044		$	28,810		$	1,615		$	10,655		$	41,080
Liabilities:
Other policyholders’ funds		$	7,824		$	0		$	0		$	7,709		$	7,709
Notes payable    (excluding leases)		7,745			0			8,396			288			8,684
Total liabilities		$	15,569		$	0		$	8,396		$	7,997		$	16,393

(1) Excludes policy loans of $260 and equity method investments of $1,004, at carrying value

Fair Value of Financial Instruments

Fixed maturity and equity securities

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

A third party pricing vendor has developed valuation models to determine fair values of privately issued securities. Starting in June 2021, these models and associated processes and controls were substantially transitioned to and executed by company personnel. These models are discounted cash flow (DCF) valuation models, but also use information from related markets, specifically the credit default swap (CDS) market to estimate expected cash flows. These models take into consideration any unique characteristics of the securities and make various adjustments to arrive at an appropriate issuer-specific loss adjusted credit curve. This credit curve is then used with the relevant recovery rates to estimate expected cash flows and modeling of additional features, including illiquidity adjustments, if necessary, to price the security by discounting those loss adjusted cash flows. In cases where a credit curve cannot be developed from the specific security features, the valuation methodology takes into consideration other market observable inputs, including:

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

2) issuer-specific CDS spreads

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

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

The pricing data and market quotes the Company obtains from outside sources, including third party pricing services, are reviewed internally for reasonableness. If a fair value appears unreasonable, the Company will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, the Company may compare the inputs to relevant market indices and other performance measurements. Based on management's analysis, the valuation is confirmed or may be revised if there is evidence of a more appropriate estimate of fair value based on available market data. Beginning in the third quarter of 2020, the Company refined these valuation models to explicitly incorporate currency

basis swap adjustments (market observable data) to assumed interest rate curves where appropriate. The Company has performed verification of the inputs and calculations in any valuation models to confirm that the valuations represent reasonable estimates of fair value.

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

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

	September 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	33,903		$	831		$	0		$	34,734
Internal		0			492			0			492
Total government and agencies		33,903			1,323			0			35,226
Municipalities:
Third party pricing vendor		0			2,114			0			2,114
Internal		0			823			0			823
Total municipalities		0			2,937			0			2,937
Mortgage- and asset-backed securities:
Third party pricing vendor		0			1,021			0			1,021
Broker/other		0			21			250			271
Total mortgage- and asset-backed securities		0			1,042			250			1,292
Public utilities:
Third party pricing vendor		0			4,628			0			4,628
Internal		0			5,163			0			5,163
Broker/other		0			1			523			524
Total public utilities		0			9,792			523			10,315
Sovereign and supranational:
Third party pricing vendor		0			279			0			279
Internal		0			818			0			818
Broker/other		0			0			45			45
Total sovereign and supranational		0			1,097			45			1,142
Banks/financial institutions:
Third party pricing vendor		0			5,191			0			5,191
Internal		0			6,505			0			6,505
Broker/other		0			0			46			46
Total banks/financial institutions		0			11,696			46			11,742
Other corporate:
Third party pricing vendor		0			29,601			0			29,601
Internal		0			8,155			0			8,155
Broker/other		0			6			306			312
Total other corporate		0			37,762			306			38,068
Total securities available for sale		$	33,903		$	65,649		$	1,170		$	100,722
Equity securities, carried at fair value:
Third party pricing vendor		$	1,210		$	90		$	0		$	1,300
Broker/other		0			0			161			161
Total equity securities		$	1,210		$	90		$	161		$	1,461

	September 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair  Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	26,304		$	237		$	0		$	26,541
Total government and agencies		26,304			237			0			26,541
Municipalities:
Third party pricing vendor		0			453			0			453
Total municipalities		0			453			0			453
Public utilities:
Third party pricing vendor		0			57			0			57
Total public utilities		0			57			0			57
Sovereign and supranational:
Third party pricing vendor		0			322			0			322
Broker/other		0			345			0			345
Total sovereign and supranational		0			667			0			667
Other corporate:
Third party pricing vendor		0			30			0			30
Total other corporate		0			30			0			30
Total securities held to maturity		$	26,304		$	1,444		$	0		$	27,748

	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	36,032		$	1,318		$	0		$	37,350
Total government and agencies		36,032			1,318			0			37,350
Municipalities:
Third party pricing vendor		0			3,018			0			3,018
Total municipalities		0			3,018			0			3,018
Mortgage- and asset-backed securities:
Third party pricing vendor		0			364			0			364
Broker/other		0			450			224			674
Total mortgage- and asset-backed securities		0			814			224			1,038
Public utilities:
Third party pricing vendor		0			10,395			0			10,395
Broker/other		0			0			422			422
Total public utilities		0			10,395			422			10,817
Sovereign and supranational:
Third party pricing vendor		0			1,334			0			1,334
Broker/other		0			0			48			48
Total sovereign and supranational		0			1,334			48			1,382
Banks/financial institutions:
Third party pricing vendor		0			12,036			0			12,036
Broker/other		0			0			24			24
Total banks/financial institutions		0			12,036			24			12,060
Other corporate:
Third party pricing vendor		0			39,886			0			39,886
Broker/other		0			32			299			331
Total other corporate		0			39,918			299			40,217
Total securities available for sale		$	36,032		$	68,833		$	1,017		$	105,882
Equity securities, carried at fair value:
Third party pricing vendor		$	1,095		$	86		$	0		$	1,181
Broker/other		0			0			102			102
Total equity securities		$	1,095		$	86		$	102		$	1,283

	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair  Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	28,810		$	260		$	0		$	29,070
Total government and agencies		28,810			260			0			29,070
Municipalities:
Third party pricing vendor		0			499			0			499
Total municipalities		0			499			0			499
Public utilities:
Third party pricing vendor		0			61			0			61
Total public utilities		0			61			0			61
Sovereign and supranational:
Third party pricing vendor		0			736			0			736
Total sovereign and supranational		0			736			0			736
Other corporate:
Third party pricing vendor		0			33			0			33
Total other corporate		0			33			0			33
Total securities held to maturity		$	28,810		$	1,589		$	0		$	30,399

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

Derivatives

The Company uses derivative instruments to manage the risk associated with certain assets. However, the derivative instrument may not be classified in the same fair value hierarchy level as the associated asset. The significant inputs to pricing derivatives are generally observable in the market or can be derived by observable market data. When these inputs are observable, the derivatives are classified as Level 2.

The Company uses present value techniques to value non-option based derivatives. It also uses option pricing models to value option based derivatives. Key inputs are as follows:

Instrument Type	Level 2	Level 3
Interest rate derivatives	Swap yield curves Basic curves Interest rate volatility (1)	Not applicable
Foreign currency exchange rate derivatives - Non-VIES (forwards, swaps and options)	Foreign currency forward rates Swap yield curves Basis curves Foreign currency spot rates Cross foreign currency basis curves Foreign currency volatility (1)	Not applicable
Foreign currency exchange rate derivatives - VIEs (swaps)	Foreign currency spot rates	Swap yield curves (2) Credit default swap curves (2) Basis curves (2) Recovery rates Foreign currency forward rates (2) Foreign cross currency basis curves (2)

(1) Option-based only

(2) Extrapolation beyond the observable limits of the curve(s).

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

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

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

For forward bond purchase commitments with VIEs, the fair value of the derivative is based on the difference in the fixed purchase price and the current market value of the related bond prior to the settlement date. Since the bond is typically a public bond with readily available pricing, the derivatives associated with the forward purchase commitment are classified as Level 2 of the fair value hierarchy.

Commercial mortgage and other loans

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

Other investments

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

Other policyholders' funds

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

Notes payable

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

Transfers between Hierarchy Levels and Level 3 Rollforward

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3. Derivative assets and liabilities are presented as a net value.

Three Months Ended September 30, 2021
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	258	$	480	$	45	$	38	$	316	$	158	$	(200)	$	1,095
Net investment gains (losses) included in    earnings	0		0		0		0		2		(1)		(57)		(56)
Unrealized gains (losses) included in other    comprehensive income (loss)	(4)		(3)		0		0		(7)		0		0		(14)
Purchases, issuances, sales and   settlements:
Purchases	35		54		0		8		0		12		0		109
Issuances	0		0		0		0		0		0		0		0
Sales	0		0		0		0		0		(8)		0		(8)
Settlements	0		(8)		0		0		0		0		0		(8)
Transfers into Level 3	0		0		0		0		0		0		0		0
Transfers out of Level 3	(39)		0		0		0		(5)		0		0		(44)
Balance, end of period	$	250	$	523	$	45	$	46	$	306	$	161	$	(257)	$	1,074
Changes in unrealized gains (losses)   relating to Level 3 assets and liabilities   still held at the end of the period   included in earnings	$	(4)	$	(3)	$	0	$	0	$	(7)	$	(1)	$	(57)	$	(72)

Three Months Ended September 30, 2020
	Fixed Maturity Securities								Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Banks/ Financial Institutions		Other Corporate					Foreign Currency Swaps		Total
Balance, beginning of period	$	188	$	322	$	24	$	243	$	86		$	(168)	$	695
Net investment gains (losses) included   in earnings	0		0		0		0		0			23		23
Unrealized gains (losses) included in   other comprehensive income (loss)	3		15		0		24		0			2		44
Purchases, issuances, sales and settlements:
Purchases	0		33		0		1		5			0		39
Issuances	0		0		0		0		0			0		0
Sales	0		0		0		0		(5)			0		(5)
Settlements	0		(2)		0		0		0			0		(2)
Transfers into Level 3	0		0		0		0		0			0		0
Transfers out of Level 3	0		0		0		0		0			0		0
Balance, end of period	$	191	$	368	$	24	$	268	$	86		$	(143)	$	794
Changes in unrealized gains (losses)   relating to Level 3 assets and liabilities   still held at the end of the period   included in earnings	$	0	$	0	$	0	$	0	$	0		$	23	$	23

Nine Months Ended September 30, 2021
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	224	$	422	$	48	$	24	$	299	$	102	$	(98)	$	1,021
Net investment gains (losses) included   in earnings	0		0		0		0		2		21		(158)		(135)
Unrealized gains (losses) included in   other comprehensive income (loss)	(19)		(13)		(3)		(1)		(5)		0		(1)		(42)
Purchases, issuances, sales   and settlements:
Purchases	99		132		0		23		0		29		0		283
Issuances	0		0		0		0		0		17		0		17
Sales	0		0		(23)		0		0		(8)		0		(31)
Settlements	0		(18)		0		0		(17)		0		0		(35)
Transfers into Level 3	0		0		23		0		32		0		0		55
Transfers out of Level 3	(54)		0		0		0		(5)		0		0		(59)
Balance, end of period	$	250	$	523	$	45	$	46	$	306	$	161	$	(257)	$	1,074
Changes in unrealized gains   (losses) relating to Level 3 assets   and liabilities still held at the end   of the period included in earnings	$	(19)	$	(13)	$	(3)	$	(1)	$	(5)	$	21	$	(158)	$	(178)

Nine Months Ended September 30, 2020
	Fixed Maturity Securities								Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	178	$	224	$	23	$	262	$	80	$	43	$	810
Net investment gains (losses) included    in earnings	0		0		0		0		0		(184)		(184)
Unrealized gains (losses) included in other    comprehensive income (loss)	5		6		0		8		0		(2)		17
Purchases, issuances, sales and settlements:
Purchases	0		129		1		13		12		0		155
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		(6)		0		(6)
Settlements	(1)		(6)		0		0		0		0		(7)
Transfers into Level 3	9		15		0		0		0		0		24
Transfers out of Level 3	0		0		0		(15)		0		0		(15)
Balance, end of period	$	191	$	368	$	24	$	268	$	86	$	(143)	$	794
Changes in unrealized gains (losses) relating    to Level 3 assets and liabilities still held at    the end of the period included in earnings	$	0	$	0	$	0	$	0	$	0	$	(184)	$	(184)

Fair Value Sensitivity

Level 3 Significant Unobservable Input Sensitivity

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

September 30, 2021
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	250	Consensus pricing	Offered quotes	N/A			(a)
Public utilities		523		Discounted cash flow	Credit spreads	N/A			(a)
Sovereign and supranational		45		Discounted cash flow	Historical volatility	N/A			(a)
Banks/financial institutions		46		Consensus pricing	Offered quotes	N/A			(a)
Other corporate		306		Discounted cash flow	Credit spreads	N/A			(a)
Equity securities		161		Net asset value	Offered quotes	N/A			(a)
Other assets:
Foreign currency swaps		34		Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
					CDS spreads	23 bps	-	124 bps
		65		Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
Total assets		$	1,430
Liabilities:
Other liabilities:
Foreign currency swaps		$	167	Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
					CDS spreads	23 bps	-	182 bps
		189		Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
Total liabilities		$	356

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

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

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

December 31, 2020
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	224	Consensus pricing	Offered quotes	N/A			(a)
Public utilities		422		Discounted cash flow	Credit spreads	N/A			(a)
Sovereign and supranational		48		Discounted cash flow	Historical volatility	N/A			(a)
Banks/financial institutions		24		Consensus pricing	Offered quotes	N/A			(a)
Other corporate		299		Discounted cash flow	Credit spreads	N/A			(a)
Equity securities		102		Net asset value	Offered quotes	N/A			(a)
Other assets:
Foreign currency swaps		69		Discounted cash flow	Interest rates (USD)	.93%	-	1.40%	(b)
					Interest rates (JPY)	.05%	-	.43%	(c)
					CDS spreads	22 bps	-	128 bps
		64		Discounted cash flow	Interest rates (USD)	.93%	-	1.40%	(b)
					Interest rates (JPY)	.05%	-	.43%	(c)
Total assets		$	1,252
Liabilities:
Other liabilities:
Foreign currency swaps		$	160	Discounted cash flow	Interest rates (USD)	.93%	-	1.12%	(b)
					Interest rates (JPY)	.05%	-	.35%	(c)
					CDS spreads	41 bps	-	140 bps
		71		Discounted cash flow	Interest rates (USD)	.93%	-	1.12%	(b)
					Interest rates (JPY)	.05%	-	.35%	(c)
Total liabilities		$	231

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

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

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

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

Net Asset Value

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

Offered Quotes

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

Interest Rates and CDS Spreads

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

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

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

For additional information on the Company's investments and financial instruments, see the accompanying Notes 1, 3 and 4 and Notes 1, 3 and 4 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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POLICY LIABILITIES

9 Months Ended

Sep. 30, 2021

Insurance Loss Reserves [Abstract]

POLICY LIABILITIES

POLICY LIABILITIES

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

	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)		2021		2020			2021		2020
Unpaid supplemental health claims, beginning of period		$	4,162	$	4,041		$	4,389	$	3,968
Less reinsurance recoverables		37		37			39		31
Net balance, beginning of period		4,125		4,004			4,350		3,937
Add claims incurred during the period related to:
Current year		1,720		1,780			5,302		5,354
Prior years		(215)		(105)			(739)		(408)
Total incurred		1,505		1,675			4,563		4,946
Less claims paid during the period on claims incurred during:
Current year		1,279		1,295			2,947		2,971
Prior years		219		249			1,676		1,811
Total paid		1,498		1,544			4,623		4,782
Effect of foreign exchange rate changes on unpaid claims		(29)		42			(187)		76
Net balance, end of period		4,103		4,177			4,103		4,177
Add reinsurance recoverables		39		40			39		40
Unpaid supplemental health claims, end of period		4,142		4,217			4,142		4,217
Unpaid life claims, end of period		767		759			767		759
Total liability for unpaid policy claims		$	4,909	$	4,976		$	4,909	$	4,976

The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates. The favorable claims development of $739 million for the nine-month period ended September 30, 2021 comprises approximately $369 million from Japan and $370 million from the U.S., representing 49.9% and 50.1% of the total, respectively. Excluding the impact of foreign exchange of a loss of approximately $11 million from December 31, 2020 to September 30, 2021, the favorable claims development in Japan would have been approximately $380 million, representing approximately 51% of the total.

The Company has experienced continued favorable claim trends in 2021 for its core health products in Japan. During the first nine months of 2021, there were impacts from lower utilization of healthcare services, due to the COVID-19 pandemic. This impacted both cancer and medical products, as the Japan population was avoiding doctor and hospital visits and staying home more. This resulted in lower sickness, accident, and cancer incurred claims. In addition, cancer treatment patterns in Japan are continuing to be influenced by significant advances in early-detection techniques and by the increased use of pathological diagnosis rather than clinical exams. Additionally, follow-up radiation and chemotherapy treatments are occurring more often on an outpatient basis. Such changes in treatment not only increase the quality of life and initial outcomes for the patients, but also decrease the average length of each hospital stay, resulting in favorable claims development.

For the majority of the Company's major U.S. accident and health lines of business, including accident, hospital indemnity, cancer, critical illness and short-term disability, the incurred claims development related to prior years reflects favorable claims experience compared to previous estimates. The U.S. portion of the favorable claims development includes $143 million related to refinements in estimates for COVID and non-COVID claims as experience emerged.

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REINSURANCE

9 Months Ended

Sep. 30, 2021

Reinsurance Disclosures [Abstract]

REINSURANCE

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

The Company has recorded a deferred profit liability related to reinsurance transactions. The remaining deferred profit liability of $900 million and $1.0 billion as of September 30, 2021 and December 31, 2020, respectively, is included in future policy benefits in the consolidated balance sheet and is being amortized into income over the expected lives of the policies. The Company has also recorded a reinsurance recoverable for reinsurance transactions, which is included in other assets in the consolidated balance sheet and had a remaining balance of $962 million and $1.0 billion as of September 30, 2021 and December 31, 2020, respectively. The spot yen/dollar exchange rate weakened by approximately 7.5% and ceded reserves decreased approximately 7.2% from December 31, 2020 to September 30, 2021.

The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance which also includes the elimination of inter-segment amounts associated with affiliated reinsurance.

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2021			2020			2021			2020
Direct premium income		$	4,426		$	4,711		$	13,567		$	14,236
Ceded to other companies:
Ceded Aflac Japan closed blocks		(107)			(116)			(329)			(349)
Other		(19)			(22)			(54)			(69)
Assumed from other companies:
Retrocession activities		45			49			138			146
Other		27			1			84			5
Net premium income		$	4,372		$	4,623		$	13,406		$	13,969
Direct benefits and claims		$	2,649		$	3,051		$	8,112		$	9,054
Ceded benefits and change in reserves for future benefits:
Ceded Aflac Japan closed blocks		(94)			(103)			(288)			(314)
Eliminations		8			10			24			29
Other		(9)			(10)			(25)			(54)
Assumed from other companies:
Retrocession activities		42			47			126			133
Eliminations		(8)			(10)			(24)			(29)
Other		21			0			71			3
Benefits and claims, net		$	2,609		$	2,985		$	7,996		$	8,822

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

As a part of its capital contingency plan, the Company entered into a committed reinsurance facility agreement on December 1, 2015 in the amount of approximately ¥120 billion of reserves. This reinsurance facility agreement was renewed in 2020 and is effective until December 31, 2021. There are also additional commitment periods of a one-year duration, each of which are automatically extended unless notification is received from the reinsurer within 60 days prior to the expiration. The reinsurer can withdraw from the committed facility if Aflac's Standard and Poor's (S&P) rating drops below BBB-. As of September 30, 2021, the Company has not executed a reinsurance treaty under this committed reinsurance facility.

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NOTES PAYABLE AND LEASE OBLIGATIONS

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

NOTES PAYABLE AND LEASE OBLIGATIONS

NOTES PAYABLE AND LEASE OBLIGATIONSA summary of notes payable and lease obligations follows:

(In millions)	September 30, 2021			December 31, 2020
3.625% senior notes paid May 2021		$	0		$	698
3.625% senior notes due November 2024		748			747
3.25% senior notes due March 2025		448			448
1.125% senior sustainability notes due March 2026		397			0
2.875% senior notes due October 2026		298			298
3.60% senior notes due April 2030		991			990
6.90% senior notes due December 2039		221			221
6.45% senior notes due August 2040		255			254
4.00% senior notes due October 2046		394			394
4.750% senior notes due January 2049		541			541
Yen-denominated senior notes and subordinated debentures:
.300% senior notes due September 2025 (principal amount ¥12.4 billion)		110			119
.932% senior notes due January 2027 (principal amount ¥60.0 billion)		534			578
.500% senior notes due December 2029 (principal amount ¥12.6 billion)		112			121
.550% senior notes due March 2030 (principal amount ¥13.3 billion)		118			127
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)		261			282
.633% senior notes due April 2031 (principal amount ¥30.0 billion)		266			0
.843% senior notes due December 2031 (principal amount ¥9.3 billion)		83			90
.750% senior notes due March 2032 (principal amount ¥20.7 billion)		183			198
.844% senior notes due April 2033 (principal amount ¥12.0 billion)		107			0
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)		135			146
.934% senior notes due December 2034 (principal amount ¥9.8 billion)		87			94
.830% senior notes due March 2035 (principal amount ¥10.6 billion)		94			101
1.039% senior notes due April 2036 (principal amount ¥10.0 billion)		88			0
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)		79			85
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)		56			61
1.264% senior notes due April 2041 (principal amount ¥10.0 billion)		89			0
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)		532			575
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion)		267			289
1.560% senior notes due April 2051 (principal amount ¥20.0 billion)		177			0
Yen-denominated loans:
Variable interest rate loan due September 2026 (.41% in 2021 and .43% in 2020,   principal amount ¥5.0 billion)		44			48
Variable interest rate loan due September 2029 (.56% in 2021 and .58% in 2020,   principal amount ¥25.0 billion)		222			240
Finance lease obligations payable through 2027		13			11
Operating lease obligations payable through 2049		116			143
Total notes payable and lease obligations		$	8,066		$	7,899

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

In April 2021, the Parent Company issued five series of senior notes totaling ¥82.0 billion through a public debt offering under its then existing U.S. shelf registration statement. The first series, which totaled ¥30.0 billion, bears interest at a fixed rate of .633% per annum, payable semi-annually, and will mature in April 2031. The second series, which totaled ¥12.0 billion, bears interest at a fixed rate of .844% per annum, payable semi-annually, and will mature in April 2033. The third series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.039% per annum, payable semi-annually, and will mature in April 2036. The fourth series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.264% per annum, payable semi-annually, and will mature in April 2041. The fifth series, which totaled ¥20.0 billion, bears interest at a fixed rate of 1.560% per annum, payable semi-annually, and will mature in April 2051. The notes are redeemable at the Parent Company’s option (i) at any time, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance or (ii) on or after the date that is six months prior to the

stated maturity date of the series, in whole or in part, at a redemption price equal to the aggregate principal amount to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption.

In May 2021, the Parent Company used a portion of the net proceeds from the April 2021 issuance of its various series of senior notes to redeem $700 million of the Parent Company's 3.625% senior notes due June 2023.

In March 2021, the Parent Company issued $400 million of senior sustainability notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually, and will mature in March 2026. The Company intends, but is not contractually committed, to allocate an amount at least equivalent to the net proceeds from this issuance exclusively to existing or future investments in, or financing of, assets, businesses or projects that meet the eligibility criteria of the Company's sustainability bond framework described in the offering documentation in connection with such notes. These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 10 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date.

A summary of the Company's lines of credit as of September 30, 2021 follows:

Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
Aflac Incorporated and Aflac	uncommitted bilateral	364 days	December 17, 2021	$100 million	$0 million	The rate quoted by the bank and agreed upon at the time of borrowing	Up to 3 months	None	General corporate purposes
Aflac Incorporated	unsecured revolving	5 years	March 29, 2024, or the date commitments are terminated pursuant to an event of default	¥100.0 billion	¥0.0 billion	A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period	No later than March 29, 2024	.30% to .50%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	unsecured revolving	5 years	November 18, 2024, or the date commitments are terminated pursuant to an event of default	$1.0 billion	$0.0 billion	A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) for U.S. dollar denominated borrowings or TIBOR for Japanese yen denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin	No later than November 18, 2024	.085% to .225%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	uncommitted bilateral	None specified	None specified	$50 million	$0 million	A rate per annum equal to, at the Company's option, either (a) a rate determined by reference to LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (a) the lender's U.S. dollar short-term commercial loan rate, (b) the federal funds rate plus 1/2 of 1% and (c) one-month LIBOR plus 1%. LIBOR is subject to replacement with Secured Overnight Financing Rate (SOFR) under certain circumstances	Up to 3 months	None	General corporate purposes
Aflac(1)	uncommitted revolving	364 days	November 30, 2021	$250 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	April 4, 2022	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	November 26, 2021	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac New York(1)	uncommitted revolving	364 days	April 8, 2022	$25 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
CAIC(1)	uncommitted revolving	364 days	March 21, 2022	$15 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes

(1) Intercompany credit agreement

(continued)

Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
Tier One Insurance Company(1)	uncommitted revolving	364 days	March 21, 2022	$0.3 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
AGV Management Services Japan K.K.(1)	uncommitted revolving	364 days	May 2, 2022	¥500 million	¥350 million	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period	No later than May 2, 2022	None	General corporate purposes
Hatch Healthcare K.K.(1)	uncommitted revolving	364 days	January 3, 2022	¥900 million	¥0 million	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period	No later than January 3, 2022	None	General corporate purposes
Hatch Insight K.K.(1)	uncommitted revolving	364 days	January 3, 2022	¥600 million	¥0 million	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period	No later than January 3, 2022	None	General corporate purposes
Aflac GI Holdings LLC(1)	uncommitted revolving	364 days	July 18, 2022	$30 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	No later than July 18, 2022	None	General corporate purposes

(1) Intercompany credit agreement

The Company was in compliance with all of the covenants of its notes payable and lines of credit at September 30, 2021. No events of default or defaults occurred during the nine-month period ended September 30, 2021.

For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2021

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

The following table is a reconciliation of the number of shares of the Company's common stock for the nine-month periods ended September 30.

(In thousands of shares)	2021	2020
Common stock - issued:
Balance, beginning of period	1,351,018	1,349,309
Exercise of stock options and issuance of restricted shares	1,544	1,546
Balance, end of period	1,352,562	1,350,855
Treasury stock:
Balance, beginning of period	658,564	622,516
Purchases of treasury stock:
Share repurchase program	32,186	26,108
Other	419	541
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(967)	(1,584)
Exercise of stock options	(240)	(49)
Other	(217)	(251)
Balance, end of period	689,745	647,281
Shares outstanding, end of period	662,817	703,574

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2021		2020		2021		2020
Anti-dilutive share-based awards		0		592		1		857

Share Repurchase Program

During the first nine months of 2021, the Company repurchased 32.2 million shares of its common stock for $1.7 billion as part of its share repurchase program. During the first nine months of 2020, the Company repurchased 26.1 million shares of its common stock for $1.0 billion as part of its share repurchase program. As of September 30, 2021, a remaining balance of 67.0 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its board of directors.

Reclassifications from Accumulated Other Comprehensive Income

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

Changes in Accumulated Other Comprehensive Income

Three Months Ended September 30, 2021
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at June 30, 2021		$	(1,661)		$	9,992		$	(33)		$	(279)		$	8,019
Other comprehensive    income (loss) before    reclassification		(99)			(251)			0			(5)			(355)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(10)			2			6			(2)
Net current-period other    comprehensive    income (loss)		(99)			(261)			2			1			(357)
Balance at September 30, 2021		$	(1,760)		$	9,731		$	(31)		$	(278)		$	7,662

All amounts in the table above are net of tax.

Three Months Ended September 30, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at June 30, 2020		$	(1,469)		$	8,532		$	(36)		$	(277)		$	6,750
Other comprehensive    income (loss) before    reclassification		179			995			1			(5)			1,170
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(7)			0			4			(3)
Net current-period other    comprehensive    income (loss)		179			988			1			(1)			1,167
Balance at September 30, 2020		$	(1,290)		$	9,520		$	(35)		$	(278)		$	7,917

All amounts in the table above are net of tax.

Nine Months Ended September 30, 2021
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at December 31, 2020		$	(1,109)		$	10,361		$	(34)		$	(284)		$	8,934
Other comprehensive    income (loss) before    reclassification		(651)			(632)			0			(15)			(1,298)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			2			3			21			26
Net current-period other    comprehensive    income (loss)		(651)			(630)			3			6			(1,272)
Balance at September 30, 2021		$	(1,760)		$	9,731		$	(31)		$	(278)		$	7,662

All amounts in the table above are net of tax.

Nine Months Ended September 30, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at December 31, 2019		$	(1,623)		$	8,548		$	(33)		$	(277)		$	6,615
Cumulative effect of change    in accounting principle -    ASU 2019-04		0			848			0			0			848
Balance at January 1, 2020		$	(1,623)		$	9,396		$	(33)		$	(277)		$	7,463
Other comprehensive    income (loss) before    reclassification		333			20			(2)			(18)			333
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			104			0			17			121
Net current-period other    comprehensive    income (loss)		333			124			(2)			(1)			454
Balance at September 30, 2020		$	(1,290)		$	9,520		$	(35)		$	(278)		$	7,917

All amounts in the table above are net of tax.

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

Reclassifications Out of Accumulated Other Comprehensive Income

(In millions)	Three Months Ended September 30, 2021
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	13	Net investment gains (losses)
		(3)		Tax (expense) or benefit(1)
		$	10	Net of tax
Unrealized gains (losses) on derivatives		$	(2)	Net investment gains (losses)
		0		Tax (expense) or benefit(1)
		$	(2)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(8)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		2		Tax (expense) or benefit(1)
		$	(6)	Net of tax
Total reclassifications for the period		$	2	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Three Months Ended September 30, 2020
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	13	Net investment gains (losses)
		(6)		Tax (expense) or benefit(1)
		$	7	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(7)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		3		Tax (expense) or benefit(1)
		$	(4)	Net of tax
Total reclassifications for the period		$	3	Net of tax

(1) Based on 21% tax rate, with a cumulative adjustment to the first six months of 2020 due to the effects of Final and Proposed Regulations released on September 29, 2020 by the U.S. Treasury and Internal Revenue Service and addressing, among other items, the allocation of insurance expenses in the calculation of the foreign tax credit limitation. See Note 10 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Nine Months Ended September 30, 2021
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	(2)	Net investment gains (losses)
		0		Tax (expense) or benefit(1)
		$	(2)	Net of tax
Unrealized gains (losses) on derivatives		$	(4)	Net investment gains (losses)
		1		Tax (expense) or benefit(1)
		$	(3)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(27)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		6		Tax (expense) or benefit(1)
		$	(21)	Net of tax
Total reclassifications for the period		$	(26)	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Nine Months Ended September 30, 2020
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	(132)	Net investment gains (losses)
		28		Tax (expense) or benefit(1)
		$	(104)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(22)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		5		Tax (expense) or benefit(1)
		$	(17)	Net of tax
Total reclassifications for the period		$	(121)	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

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SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

As of September 30, 2021, the Company has outstanding share-based awards under the Aflac Incorporated Long-Term Incentive Plan (the Plan). Share-based awards are designed to reward employees for their long-term contributions to the Company and provide incentives for them to remain with the Company. The number and frequency of share-based awards are based on competitive practices, operating results of the Company, government regulations, and other factors.

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

The Plan allows awards to Company employees for incentive stock options (ISOs), non-qualifying stock options (NQSOs), restricted stock, restricted stock units, and stock appreciation rights. Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights. As of September 30, 2021, approximately 36.7 million shares were available for future grants under this plan. The ISOs and NQSOs have a term of 10 years, and the share-based awards generally vest upon time-based conditions or time and performance-based conditions. Time-based vesting generally occurs after three years. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. As of September 30, 2021, the only performance-based awards issued and outstanding were restricted stock awards and units.

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

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

The following table provides information on stock options outstanding and exercisable at September 30, 2021.

	Stock Option Shares (in thousands)		Weighted-Average Remaining Term (in years)		Aggregate Intrinsic Value (in millions)			Weighted-Average Exercise Price Per Share
Outstanding		2,317		3.6		$	49		$	30.87
Exercisable		2,317		3.6		49			30.87

The Company received cash from the exercise of stock options in the amount of $20 million during the first nine months of 2021, compared with $9 million in the first nine months of 2020. The tax benefit realized as a result of stock option exercises and restricted stock releases was $16 million in the first nine months of 2021, compared with $19 million in the first nine months of 2020.

As of September 30, 2021, total compensation cost not yet recognized in the Company's consolidated financial statements related to restricted stock awards and units was $45 million, of which $19 million (1.7 million shares) was related to restricted stock awards and units with a performance-based vesting condition. The Company expects to recognize these amounts over a weighted-average period of approximately 1.7 years. There are no other contractual terms covering restricted stock awards once vested.

The following table summarizes restricted stock activity during the nine-month period ended September 30, 2021.

(In thousands of shares)	Shares	Weighted-Average Grant-Date Fair Value Per Share
Restricted stock at December 31, 2020	2,580		$	48.57
Granted in 2021	1,454		47.70
Canceled in 2021	(102)		48.89
Vested in 2021	(1,317)		45.91
Restricted stock at September 30, 2021	2,615		$	49.20

In February 2021, the Company granted 474 thousand performance-based stock awards, which are contingent on the achievement of the Company's financial performance metrics and its market-based conditions. On the date of grant, the Company estimated the fair value of restricted stock awards with market-based conditions using a Monte Carlo simulation model. The model discounts the value of the stock at the assumed vesting date based on the risk-free interest rate. Based on estimates of actual performance versus the vesting thresholds, the calculated fair value percentage pay-out estimate will be updated each quarter.

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

For additional information on the Company's long-term share-based compensation plans and the types of share-based awards, see Note 12 of the Notes to the Consolidated Financial Statements included in the 2020 Annual Report.

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BENEFIT PLANS

9 Months Ended

Sep. 30, 2021

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

BENEFIT PLANS

BENEFIT PLANS

The Company has funded defined benefit plans in Japan and the U.S., however the U.S. plan was frozen to new participants effective October 1, 2013. The Company also maintains non-qualified, unfunded supplemental retirement plans that provide defined pension benefits in excess of limits imposed by federal tax law for certain Japanese, U.S. and former employees, however the U.S. plan was frozen to new participants effective January 1, 2015. U.S. employees who are not participants in the defined benefit plan receive a nonelective 401(k) employer contribution. Effective January 1, 2021, the Company increased this nonelective contribution to 4% of an employee's annual cash compensation.

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

Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statement of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) $4 million and $6 million for the three-month periods ended September 30, 2021 and 2020, respectively and $18 million for the nine-month periods ended September 30, 2021 and 2020. Total net periodic cost includes the following components:

	Three Months Ended September 30,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2021			2020			2021			2020			2021			2020
Components of net periodic   benefit cost:
Service cost		$	6		$	6		$	7		$	7		$	0		$	0
Interest cost		1			1			8			9			0			0
Expected return on plan assets		(2)			(2)			(11)			(9)			0			0
Amortization of net actuarial loss		1			1			7			6			0			0
Net periodic (benefit) cost		$	6		$	6		$	11		$	13		$	0		$	0

	Nine Months Ended September 30,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2021			2020			2021			2020			2021			2020
Components of net periodic   benefit cost:
Service cost		$	18		$	18		$	21		$	21		$	0		$	0
Interest cost		3			3			24			25			1			1
Expected return on plan assets		(6)			(6)			(31)			(27)			0			0
Amortization of net actuarial loss		2			3			23			18			2			1
Net periodic (benefit) cost		$	17		$	18		$	37		$	37		$	3		$	2

During the nine months ended September 30, 2021, Aflac Japan contributed approximately $29 million (using the weighted-average yen/dollar exchange rate for the nine-month period ended September 30, 2021) to the Japanese funded defined benefit plan, and Aflac U.S. did not make a contribution to the U.S. funded defined benefit plan.

For additional information regarding the Company's Japanese and U.S. benefit plans, see Note 14 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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COMMITMENTS AND CONTINGENT LIABILITIES

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

COMMITMENTS AND CONTINGENT LIABILITIES

Effective for 2021, the Company entered into an outsourcing agreement with a technology and consulting company to provide mainframe computer operations for Aflac Japan. As of September 30, 2021, the agreement has a remaining term of four years and an aggregate remaining cost of ¥29.3 billion ($262 million using the September 30, 2021 exchange rate).

Effective for 2021, the Company entered into an outsourcing agreement with a management consulting and technology services company to provide application maintenance and development services for Aflac Japan. As of September 30, 2021, the agreement has a remaining term of six years and an aggregate remaining cost of ¥16.9 billion ($151 million using the September 30, 2021 exchange rate).

Effective for 2021, the Company entered into an enterprise agreement with an information technology and data services company to license software for Aflac Japan. As of September 30, 2021, the agreement has a remaining term of three years and an aggregate remaining cost of ¥1.8 billion ($16 million using the September 30, 2021 exchange rate).

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

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

Guaranty Fund Assessments

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

In 2009, the Pennsylvania Insurance Commissioner placed long-term care insurer Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company (collectively referred to as Penn Treaty), neither of which is affiliated with Aflac, in rehabilitation and petitioned a state court for approval to liquidate Penn Treaty. A final order of liquidation was granted by a recognized judicial authority on March 1, 2017, and as a result, Penn Treaty is in the process of liquidation. The Company estimated and recognized the impact of its share of guaranty fund assessments resulting from the liquidation using a discounted rate of 4.25%. The Company recognized a discounted liability for the assessments of $62 million (undiscounted $94 million), offset by discounted premium tax credits of $48 million (undiscounted $74 million), for a net $14 million impact to net income in the quarter ended March 31, 2017. The Company paid a majority of these assessments by September 30, 2021. The Company used the cost estimate provided as of the liquidation date by the National Organization of Life and Health Guaranty Associations (NOLHGA) to calculate its estimated assessments and tax credits.

Guaranty fund assessments for the nine-month periods ended September 30, 2021 and 2020 were immaterial.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Basis of Presentation

Description of Business

Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States (U.S.) and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac) in the U.S. and through Aflac Life Insurance Japan Ltd. (ALIJ) in Japan. The Company’s operations consist of two reportable business segments: Aflac U.S., which includes Aflac, and Aflac Japan, which includes ALIJ. American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. With the exception of group dental and vision products administered by Argus Dental & Vision, Inc. (Argus) and certain group life insurance products, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. The Company's insurance operations in the U.S. and Japan service the two markets for the Company's insurance business. Aflac Japan's revenues, including net gains and losses on its investment portfolio, accounted for 69% and 68% of the Company's total revenues in the nine-month periods ended September 30, 2021 and 2020, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 82% at September 30, 2021, compared with 83% at December 31, 2020.

Basis of Presentation

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

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

In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of September 30, 2021 and December 31, 2020, the consolidated statements of earnings and comprehensive income (loss) for the three- and nine-month periods ended September 30, 2021 and 2020, the consolidated statement of shareholders' equity for the three-month periods ended March 31, 2021 and 2020, June 30, 2021 and 2020, and September 30, 2021 and 2020, and the consolidated statement of cash flows for the nine-month periods ended September 30, 2021 and 2020. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report).

COVID-19: The impact of the COVID-19 global pandemic on the Company continues to evolve, and its future effects remain uncertain. The Company took prompt action at the beginning of the pandemic to strengthen its capital and liquidity position, and continues to monitor its investment portfolios to adjust to market conditions, including the continuing recovery and inflation expectations. Both Aflac Japan and Aflac U.S. have accelerated investments in digital initiatives to improve productivity, efficiency and customer service over the long term.

The Company continues to closely monitor the effects and risks of COVID-19, including its variants, to assess its impact on economic conditions in Japan and the U.S. and on the Company's business, financial condition, results of operations, liquidity and capital position.

Reclassifications

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

Recently Adopted Accounting Pronouncements

Description of Accounting Pronouncements Pending Adoption

ASU 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by:

ASU 2019-09 Financial Services - Insurance: Effective Date

ASU 2020-11 Financial Services - Insurance: Effective Date and Early Application

In August 2018, the FASB issued amendments that will significantly change how insurers account for long-duration contracts. The amendments will change existing recognition, measurement, presentation, and disclosure requirements. Issues addressed in the new guidance include: 1) a requirement to review and, if there is a change, update assumptions for the liability for future policy benefits at least annually, and to update the discount rate assumption quarterly, 2) accounting for market risk benefits at fair value, 3) simplified amortization for deferred acquisition costs, and 4) enhanced financial statement presentation and disclosures.

In November 2019, the FASB issued an amendment extending the effective date for public business entities that meet the definition of an SEC filer, excluding entities eligible to be small reporting companies as defined by the SEC, by one year.

In November 2020, the FASB issued an amendment providing an additional year deferral for all insurance entities due to the impact of COVID-19. The amendments are now effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application of the amendments is permitted.

The Company continues to evaluate the impact of adoption and expects that the adoption will have a significant impact on the Company’s financial position, results of operations, and disclosures. The Company anticipates that the requirement to update assumptions for liability for future policy benefits (LFPB) will have a significant impact on its results of operations, systems, processes and controls and that the requirement to update discount rates will have a significant impact on its equity.

As part of working toward implementation of the updated standard, the Company has made progress on key accounting policy decisions, including processes to identify insurance policy groupings (cohorts) for LFPB measurement and DAC amortization purposes, applicable discount rates, development of liability cash flow and claim expense assumptions, and DAC amortization methodology.

The Company will not early adopt the updated standard and has selected the modified retrospective transition method. Based upon this transition method, the Company currently estimates that the January 1, 2021 transition date (Transition Date) impact from adoption is likely to result in a decrease in accumulated other comprehensive income (AOCI) in a range between $18 billion and $20 billion. This is due to updating the LFPB discount rate assumptions from the rates locked in for reserves held as of the Transition Date to rates determined by reference to the Transition Date market level yields for upper-medium-grade (low credit risk) fixed income instruments (as of December 31, 2020). The variability around the impact of adoption results from the Company making certain estimates, primarily related to the determination of Transition Date market level yields.

The Company has advanced and continues to refine the design of its discount rate methodology for both the U.S. and Japan insurance business. The methodology incorporates constructing a discount rate curve separately for discounting cash flows used to calculate the U.S. and Japan LFPB, with each curve intended to be reflective of the currency, tenor and characteristics of the insurance liabilities. Discount rates comprising each curve will be determined by reference to upper-medium grade (low credit risk) fixed-income instrument yields that are intended to reflect the duration characteristics of the corresponding insurance liabilities. The Company intends to use for these yields single-A rated fixed income instruments with credit ratings based on international rating standards. Where only local ratings are available, the Company intends to select the fixed-income instruments with local ratings that are equivalent to a single-A rating based on international rating standards. The methodology will be designed to prioritize observable inputs based on market data available in the local debt markets where the respective policies were issued in the currency in which the policies are

denominated. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company will use various estimation techniques consistent with the fair value guidance in ASC 820, which include, but are not limited to: (i) for tenors where there is less observable market data and/or the observable market data is available for similar instruments, estimating tenor-specific single-A credit spreads and applying them to risk-free government rates; (ii) for tenors where there is very limited or no observable single-A or similar market data, interpolation and extrapolation techniques. Discount rates will be updated each reporting period.

Long duration insurance contracts issued by the Company will be grouped into annual calendar-year cohorts based on the contract issue date, reportable segment, legal entity and product type. Limited pay contracts will be grouped into separate cohorts from other traditional products in the same manner and will be further separated based on their premium payment structures. Riders will be combined with base policies with similar insurance coverage types and the same contract issue years.

In addition to the preliminary policy elections related to cohorts and LFPB discount rates directly impacting Transition Date AOCI, the Company has also advanced the following accounting policies relevant to the post-Transition Date accounting:

•Cash flow assumptions underlying insurance liabilities will be evaluated as to whether an update is needed at least annually in the same fiscal quarter each year. To facilitate the review, experience studies will be performed annually in the consistent quarter year-to-year to substantiate assumptions, including mortality, morbidity, and terminations in future periods.

•Locked-in discount rates used for the computation of interest accretion on LFPB for policies issued on or after January 1, 2021 will be determined for each issue-year cohort as a single discount rate, calculated as the weighted-average of monthly upper-medium grade (low-credit risk) fixed-income instrument forward curves over the calendar year, determined using the methodology described above and weighted using issued annualized premiums for each issue month. The single discount rate for each issue-year cohort will remain unchanged after the calendar year of issue. Locked-in discount rates on the policies held at Transition Date reflect the locked-in rates in existence immediately before the Transition Date.

•For DAC amortization, the Company has made a preliminary election to group insurance policies into cohorts that are consistent with the groupings used in estimating the associated LFPB. DAC will be amortized on a constant-level basis for the grouped contracts over the expected remaining term of the related contracts. For both life and health products issued by Aflac Japan, the constant-level basis used will be units in force, which is a proxy for face amount and insurance in force, respectively. For life products issued by Aflac U.S., the constant level basis used will be face amount of policies in force; for health products issued by Aflac U.S., the constant level basis used will be the number of policies in force.

•The Company has made a preliminary entity-wide election to use locked-in claim expense assumptions determined for each issue-year cohort as a percentage of incurred claims; these assumptions would remain unchanged over the term of the insurance policy.

The Company has created a governance framework and a plan to support implementation of the updated standard. As part of its implementation plan, the Company has also advanced the modernization of its actuarial technology platform to enhance its modeling, data management, experience study and analytical capabilities, increase the end-to-end automation of key reporting and analytical processes and optimize its control framework. The Company has also put in place internal controls related to the new processes created as part of implementing the updated standard and will continue to refine and maturate these internal controls until the formal implementation in the first quarter of 2023.

The Company has recently begun testing its reporting and disclosure capabilities under the new ASU for post-Transition Date accounting periods.

The Company currently has no products with market risk benefits.

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BUSINESS SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

Information regarding operations by reportable segment and Corporate and other, follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Revenues:
Aflac Japan:
Net earned premiums	$	2,934	$	3,168	$	9,045	$	9,476
Adjusted net investment income (1),(2)	763		663		2,260		1,939
Other income	10		11		32		32
Total adjusted revenue Aflac Japan	3,707		3,842		11,337		11,447
Aflac U.S.:
Net earned premiums	1,393		1,407		4,223		4,348
Adjusted net investment income (3)	191		175		557		523
Other income	32		24		90		78
Total adjusted revenue Aflac U.S.	1,616		1,606		4,870		4,949
Corporate and other (4),(5)	72		87		205		292
Total adjusted revenues	5,395		5,535		16,412		16,688
Net investment gains (losses) (1),(2),(3),(4)	(158)		130		258		(454)
Total revenues	$	5,237	$	5,665	$	16,670	$	16,234

(1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

(2) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

(3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

(4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.

(5) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, are included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

Reconciliation of Adjusted Profit (Loss) from Segments to Consolidated

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Pretax earnings:
Aflac Japan (1),(2)	$	976	$	747	$	2,867	$	2,442
Aflac U.S. (3)	358		329		1,217		1,082
Corporate and other (4),(5),(6)	(41)		(39)		(144)		(69)
Pretax adjusted earnings (7)	1,293		1,037		3,940		3,455
Net investment gains (losses) (1),(2),(3),(4),(5)	(172)		117		216		(497)
Other income (loss)	(8)		(1)		(66)		(16)
Total earnings before income taxes	$	1,113	$	1,153	$	4,090	$	2,942
Income taxes applicable to pretax adjusted earnings	$	262	$	43	$	771	$	659
Effect of foreign currency translation on after-tax   adjusted earnings	(14)		3		(8)		17

(1) Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

(2) Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

(3) Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

(4) Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.

(5) A gain of $14 and $13 for the three-month periods and $41 and $43 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.

(6) The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, is included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

(7) Includes $40 and $44 for the three-month periods and $130 and $122 for the nine-month periods ended September 30, 2021, and 2020, respectively, of interest expense on debt.

Reconciliation of Assets from Segment to Consolidated

Assets were as follows:

(In millions)	September 30, 2021			December 31, 2020
Assets:
Aflac Japan		$	131,651		$	137,271
Aflac U.S.		23,304			22,864
Corporate and other		5,642			4,951
Total assets		$	160,597		$	165,086

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INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Available-for-Sale Debt Securities

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

	September 30, 2021
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair   value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	31,549	$	0	$	3,574	$	62	$	35,061
Municipalities	1,224		0		323		5		1,542
Mortgage- and asset-backed securities	310		0		21		1		330
Public utilities	4,584		0		930		2		5,512
Sovereign and supranational	781		0		81		0		862
Banks/financial institutions	7,149		0		834		66		7,917
Other corporate	7,377		0		1,575		22		8,930
Total yen-denominated	52,974		0		7,338		158		60,154
U.S. dollar-denominated:
U.S. government and agencies	155		0		10		0		165
Municipalities	1,217		0		179		1		1,395
Mortgage- and asset-backed securities	932		0		30		0		962
Public utilities	3,887		0		920		4		4,803
Sovereign and supranational	225		0		59		4		280
Banks/financial institutions	3,081		0		745		1		3,825
Other corporate	24,757		0		4,448		67		29,138
Total U.S. dollar-denominated	34,254		0		6,391		77		40,568
Total securities available for sale	$	87,228	$	0	$	13,729	$	235	$	100,722

	December 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities available for sale, carried at fair   value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	32,959	$	0	$	4,182	$	52	$	37,089
Municipalities	1,324		0		374		5		1,693
Mortgage- and asset-backed securities	342		0		27		1		368
Public utilities	4,777		0		1,096		1		5,872
Sovereign and supranational	981		0		108		0		1,089
Banks/financial institutions	7,552		0		886		102		8,336
Other corporate	8,114		0		1,747		37		9,824
Total yen-denominated	56,049		0		8,420		198		64,271
U.S. dollar-denominated:
U.S. government and agencies	245		0		16		0		261
Municipalities	1,154		0		173		2		1,325
Mortgage- and asset-backed securities	667		0		8		5		670
Public utilities	4,013		0		947		15		4,945
Sovereign and supranational	232		0		64		3		293
Banks/financial institutions	2,973		0		758		7		3,724
Other corporate	26,297		38		4,385		251		30,393
Total U.S. dollar-denominated	35,581		38		6,351		283		41,611
Total securities available for sale	$	91,630	$	38	$	14,771	$	481	$	105,882

Held-to-maturity Securities

	September 30, 2021
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity, carried at   amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	21,676	$	3	$	21,673	$	4,868	$	0	$	26,541
Municipalities	346		0		346		107		0		453
Public utilities	45		1		44		13		0		57
Sovereign and supranational	533		5		528		139		0		667
Other corporate	22		0		22		8		0		30
Total yen-denominated	22,622		9		22,613		5,135		0		27,748
Total securities held to maturity	$	22,622	$	9	$	22,613	$	5,135	$	0	$	27,748

	December 31, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held to maturity, carried at   amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	23,448	$	3	$	23,445	$	5,625	$	0	$	29,070
Municipalities	377		0		377		122		0		499
Public utilities	48		1		47		14		0		61
Sovereign and supranational	577		6		571		165		0		736
Other corporate	24		0		24		9		0		33
Total yen-denominated	24,474		10		24,464		5,935		0		30,399
Total securities held to maturity	$	24,474	$	10	$	24,464	$	5,935	$	0	$	30,399

Equity securities, FV-NI

(In millions)	September 30, 2021			December 31, 2020
Equity securities, carried at fair value through net earnings:	Fair Value			Fair Value
Equity securities:
Yen-denominated		$	753		$	680
U.S. dollar-denominated		667			603
Other currencies		41			0
Total equity securities		$	1,461		$	1,283

Investments Classified by Contractual Maturity Date

The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2021, were as follows:

(In millions)	Amortized Cost (1)			Fair Value
Available for sale:
Due in one year or less		$	914		$	930
Due after one year through five years		8,302			8,909
Due after five years through 10 years		13,291			15,565
Due after 10 years		63,479			74,026
Mortgage- and asset-backed securities		1,242			1,292
Total fixed maturity securities available for sale		$	87,228		$	100,722
Held to maturity:
Due in one year or less		$	0		$	0
Due after one year through five years		45			49
Due after five years through 10 years		8,753			10,207
Due after 10 years		13,815			17,492
Mortgage- and asset-backed securities		0			0
Total fixed maturity securities held to maturity		$	22,613		$	27,748

(1) Net of allowance for credit losses

Investment Exposures Exceeding Ten Percent Shareholders Equity

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

	September 30, 2021			December 31, 2020
(In millions)	Credit Rating	Amortized Cost	Fair Value	Credit Rating	Amortized Cost	Fair Value
Japan National Government(1)	A+	$51,953	$60,106	A+	$55,153	$64,657

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

Gain (Loss) on Investments

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales	$	24	$	7	$	40	$	28
Gross losses from sales	(36)		0		(39)		(46)
Foreign currency gains (losses) on sales and redemptions	(2)		(5)		(21)		(39)
Total sales and redemptions	(14)		2		(20)		(57)
Equity securities	(119)		12		(17)		(106)
Credit losses:
Fixed maturity securities available for sale	27		0		38		(75)
Fixed maturity securities held to maturity	0		0		1		1
Commercial mortgage and other loans	(29)		78		15		(86)
Impairment losses	0		0		(20)		0
Loan commitments	3		64		3		(17)
Reinsurance recoverables and other	0		0		(2)		(2)
Total credit losses	1		142		35		(179)
Derivatives and other:
Derivative gains (losses)	(174)		138		(557)		173
Foreign currency gains (losses)	135		(186)		783		(356)
Total derivatives and other	(39)		(48)		226		(183)
Total net investment gains (losses)	$	(171)	$	108	$	224	$	(525)

Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities

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

(In millions)	September 30, 2021			December 31, 2020
Unrealized gains (losses) on securities available for sale		$	13,494		$	14,290
Deferred income taxes		(3,763)			(3,929)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities		$	9,731		$	10,361

Investments Gross Unrealized Loss Aging

The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the periods ended September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	September 30, 2021
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available    for sale:
Japan government and       agencies:
Yen-denominated		$	2,980		$	62		$	342		$	2		$	2,638		$	60
Municipalities:
U.S. dollar-denominated		56			1			56			1			0			0
Yen-denominated		168			5			30			0			138			5
Mortgage- and asset-     backed securities:
Yen-denominated		34			1			0			0			34			1
Public utilities:
U.S. dollar-denominated		195			4			108			2			87			2
Yen-denominated		242			2			182			1			60			1
Sovereign and supranational:
U.S. dollar-denominated		6			4			6			1			0			3
Banks/financial institutions:
U.S. dollar-denominated		152			1			146			1			6			0
Yen-denominated		1,824			66			735			5			1,089			61
Other corporate:
U.S. dollar-denominated		1,731			67			898			17			833			50
Yen-denominated		558			22			106			1			452			21
Total		$	7,946		$	235		$	2,609		$	31		$	5,337		$	204

	December 31, 2020
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available    for sale:
Japan government and       agencies:
Yen-denominated		$	2,604		$	52		$	2,604		$	52		$	0		$	0
Municipalities:
U.S. dollar-denominated		94			2			94			2			0			0
Yen-denominated		183			5			169			4			14			1
Mortgage- and asset-     backed securities:
U.S. dollar-denominated		360			5			360			5			0			0
Yen-denominated		37			1			37			1			0			0
Public utilities:
U.S. dollar-denominated		326			15			208			7			118			8
Yen-denominated		135			1			135			1			0			0
Sovereign and supranational:
U.S. dollar-denominated		39			3			39			3			0			0
Banks/financial institutions:
U.S. dollar-denominated		82			7			44			1			38			6
Yen-denominated		1,809			102			765			36			1,044			66
Other corporate:
U.S. dollar-denominated		4,499			251			2,157			59			2,342			192
Yen-denominated		613			37			290			13			323			24
Total		$	10,781		$	481		$	6,902		$	184		$	3,879		$	297

Composition of the Carrying Value for Commercial Mortgage and Other Loans by Property Type

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

(In millions)	September 30, 2021				December 31, 2020
	Amortized Cost		% of Total		Amortized Cost		% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office	$	1,944	16.8	%	$	2,115	19.7	%
Retail	140		1.2		125		1.2
Apartments/Multi-Family	1,666		14.4		1,782		16.6
Industrial	46		0.4		85		.8
Hospitality	1,075		9.3		1,106		10.3
Other	340		3.0		81		.7
Total transitional real estate loans	5,211		45.1		5,294		49.3
Commercial mortgage loans:
Office	395		3.4		401		3.7
Retail	334		3.0		340		3.2
Apartments/Multi-Family	640		5.5		588		5.5
Industrial	478		4.1		391		3.6
Other	14		0.1		0		0.0
Total commercial mortgage loans	1,861		16.1		1,720		16.0
Middle market loans	4,481		38.8		3,720		34.7
Total commercial mortgage and other loans	$	11,553	100.0	%	$	10,734	100.0	%
Allowance for credit losses	(165)				(180)
Total net commercial mortgage and other loans	$	11,388			$	10,554

Allowance for Loan Losses by Portfolio Segment

The following table presents the roll forward of the allowance for credit losses by portfolio segment.

(in millions)	Transitional Real Estate Loans		Commercial Mortgage Loans		Middle Market Loans		Held to Maturity Securities		Available for Sale Securities		Reinsurance Recoverables
Three Months Ended September 30, 2021:
Balance at June 30, 2021	$	(41)	$	(22)	$	(76)	$	(8)	$	(26)	$	(13)
(Addition to) release of allowance for credit    losses	(18)		5		(13)		(1)		0		0
Write-offs, net of recoveries	0		0		0		0		26		0
Balance at September 30, 2021	$	(59)	$	(17)	$	(89)	$	(9)	$	0	$	(13)
Three Months Ended September 30, 2020:
Balance at June 30, 2020	$	(66)	$	(42)	$	(134)	$	(9)	$	(38)	$	(11)
(Addition to) release of allowance for credit    losses	13		14		59		0		(1)		0
Write-offs, net of recoveries	0		0		(9)		0		1		0
Balance at September 30, 2020	$	(53)	$	(28)	$	(84)	$	(9)	$	(38)	$	(11)
Nine Months Ended September 30, 2021:
Balance at December 31, 2020	$	(63)	$	(32)	$	(85)	$	(10)	$	(38)	$	(12)
(Addition to) release of allowance for credit    losses	4		15		(4)		1		26		(1)
Write-offs, net of recoveries	0		0		0		0		12		0
Balance at September 30, 2021	$	(59)	$	(17)	$	(89)	$	(9)	$	0	$	(13)
Nine Months Ended September 30, 2020:
Balance at December 31, 2019 (1)	$	(22)	$	(3)	$	(20)	$	0	$	0	$	0
Transition impact to retained earnings	(2)		(8)		(33)		(10)		0		(11)
(Addition to) release of allowance for credit    losses	(29)		(17)		(31)		1		(75)		0
Write-offs, net of recoveries	0		0		0		0		37		0
Balance at September 30, 2020	$	(53)	$	(28)	$	(84)	$	(9)	$	(38)	$	(11)

Other Investments

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

(In millions)	September 30, 2021			December 31, 2020
Other investments:
Policy loans		$	241		$	260
Short-term investments (1)		1,833			1,139
Limited partnerships		1,519			1,004
Other		19			26
Total other investments		$	3,612		$	2,429

(1) Includes securities lending collateral

Securities Lending Transactions Accounted for as Secured Borrowings

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

Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
	September 30, 2021						December 31, 2020
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total		Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Fixed maturity securities:
Japan government and   agencies	$	0	$	1,587	$	1,587	$	0	$	0	$	0
Public utilities	27		0		27		57		0		57
Sovereign and supranational	2		0		2		3		0		3
Banks/financial institutions	81		0		81		63		0		63
Other corporate	1,152		0		1,152		841		0		841
Total borrowings	$	1,262	$	1,587	$	2,849	$	964	$	0	$	964
Gross amount of recognized liabilities for securities    lending transactions					$	2,849					$	964

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

Variable Interest Entity, Consolidated

Investments in Variable Interest Entities

VIEs - Consolidated

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

Investments in Consolidated Variable Interest Entities

	September 30, 2021						December 31, 2020
(In millions)	Amortized Cost (1)			Fair Value			Amortized Cost (1)			Fair Value
Assets:
Fixed maturity securities, available for sale		$	3,228		$	4,437		$	3,487		$	4,596
Commercial mortgage and other loans		9,543			9,723			8,964			9,040
Other investments (2)		1,272			1,272			826			826
Other assets (3)		99			99			133			133
Total assets of consolidated VIEs		$	14,142		$	15,531		$	13,410		$	14,595
Liabilities:
Other liabilities (3)		$	356		$	356		$	231		$	231
Total liabilities of consolidated VIEs		$	356		$	356		$	231		$	231

(1) Net of allowance for credit losses

(2) Consists entirely of alternative investments in limited partnerships

(3) Consists entirely of derivatives

Variable Interest Entity, Not Consolidated

Investments in Variable Interest Entities

VIEs - Not Consolidated

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

Investments in Variable Interest Entities Not Consolidated

	September 30, 2021						December 31, 2020
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	4,990		$	6,119		$	5,477		$	6,767
Other investments (1)		247			247			178			178
Total investments in VIEs not consolidated		$	5,237		$	6,366		$	5,655		$	6,945

(1) Consists entirely of alternative investments in limited partnerships

Transitional real estate loans

Financing Receivable Credit Quality Indicators

Transitional Real Estate Loans
(In millions)	2021		2020		2019		2018		2017		Total
Loan-to-Value Ratio:
0%-59.99%	$	449	$	55	$	439	$	353	$	77	$	1,373
60%-69.99%	417		136		831		543		182		2,109
70%-79.99%	569		184		443		323		182		1,701
80% or greater	0		28		0		0		0		28
Total	$	1,435	$	403	$	1,713	$	1,219	$	441	$	5,211

Commercial mortgage loans

Financing Receivable Credit Quality Indicators

Commercial Mortgage Loans
(In millions)	2021		2020		2019		2018		2017		Prior		Total		Weighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%	$	174	$	47	$	559	$	168	$	68	$	561	$	1,577	2.51
60%-69.99%	34		0		87		0		0		138		259		1.97
70%-79.99%	0		0		0		0		0		25		25		1.67
Total	208		47		646		168		68		724		1,861		2.42
Weighted Average DSCR	2.49		1.94		2.55		2.32		2.78		2.30

Middle market loans

Financing Receivable Credit Quality Indicators

Middle Market Loans
(In millions)	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
Credit Ratings:
BBB	$	54	$	78	$	51	$	39	$	10	$	3	$	68	$	303
BB	346		347		283		163		106		27		221		1,493
B	357		493		635		323		154		121		170		2,253
CCC	0		19		64		81		79		49		87		379
CC	0		0		0		14		26		0		5		45
C and lower	0		8		0		0		0		0		0		8
Total	$	757	$	945	$	1,033	$	620	$	375	$	200	$	551	$	4,481

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DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

		September 30, 2021									December 31, 2020
(In millions)				Asset Derivatives			Liability Derivatives						Asset Derivatives			Liability Derivatives
Hedge Designation/ Derivative   Type	Notional Amount			Fair Value			Fair Value			Notional Amount			Fair Value			Fair Value
Cash flow hedges:
Foreign currency swaps - VIE		$	18		$	0		$	2		$	18		$	0		$	1
Total cash flow hedges		18			0			2			18			0			1
Fair value hedges:
Foreign currency forwards		62			0			3			64			2			0
Foreign currency options		8,410			1			0			8,865			0			0
Total fair value hedges		8,472			1			3			8,929			2			0
Net investment hedge:
Foreign currency forwards		4,996			240			0			5,010			14			84
Foreign currency options		1,954			0			0			2,027			1			0
Total net investment hedge		6,950			240			0			7,037			15			84
Non-qualifying strategies:
Foreign currency swaps		2,250			52			22			2,250			47			81
Foreign currency swaps - VIE		3,141			99			354			2,857			133			230
Foreign currency forwards		14,153			353			872			26,528			386			301
Foreign currency options		3,165			0			0			11,037			0			0
Interest rate swaps		3,500			0			16			0			0			0
Forward bond purchase commitment - VIE		45			0			1			0			0			0
Total non-qualifying strategies		26,254			504			1,265			42,672			566			612
Total derivatives		$	41,694		$	745		$	1,270		$	58,656		$	583		$	697

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

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

Fair Value Hedging Relationships

(In millions)		Hedging Derivatives						Hedged Items
Hedging Derivatives	Hedged Items	Total Gains (Losses)		Gains (Losses) Excluded from Effectiveness Testing(1)		Gains (Losses) Included in Effectiveness Testing(2)		Gains (Losses)(2)		Net Investment Gains (Losses) Recognized for Fair Value Hedge
Three Months Ended September 30, 2021:
Foreign currency forwards	Fixed maturity securities	$	(1)	$	0	$	(1)	$	1	$	0
Foreign currency options	Fixed maturity securities	(5)		(5)		0		0		0
Total gains (losses)		$	(6)	$	(5)	$	(1)	$	1	$	0
Nine Months Ended September 30, 2021:
Foreign currency forwards	Fixed maturity securities	$	(5)	$	0	$	(5)	$	5	$	0
Foreign currency options	Fixed maturity securities	(16)		(15)		(1)		4		3
Total gains (losses)		$	(21)	$	(15)	$	(6)	$	9	$	3
Three Months Ended September 30, 2020:
Foreign currency forwards	Fixed maturity securities	$	1	$	0	$	1	$	(1)	$	0
Foreign currency options	Fixed maturity securities	(2)		(2)		0		0		0
Total gains (losses)		$	(1)	$	(2)	$	1	$	(1)	$	0
Nine Months Ended September 30, 2020:
Foreign currency forwards	Fixed maturity securities	$	(15)	$	(8)	$	(7)	$	8	$	1
Foreign currency options	Fixed maturity securities	(4)		(3)		(1)		1		0
Total gains (losses)		$	(19)	$	(11)	$	(8)	$	9	$	1

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

(2) Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month and nine-month periods ended September 30, 2021 and 2020, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial.

Schedule of Interest Rate Fair Value Hedges Hedged Items

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

(In millions)	Carrying Amount of the Hedged Assets/(Liabilities)(1)					Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)
		September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Fixed maturity securities		$	3,261	$	4,331	$	216	$	237

(1) The balance includes hedging adjustment on discontinued hedging relationships of $216 in 2021 and $237 in 2020.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

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

	Three Months Ended September 30,
	2021										2020
(In millions)	Net Investment Income (1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)			Net Investment Income (1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	0		$	(1)			$	1		$	0		$	0			$	2
Total cash flow hedges		0			(1)		(3)		1			0			0		(3)		2
Fair value hedges:
Foreign currency forwards (3)					0										0
Foreign currency options (3)					(5)										(2)
Interest rate swaptions (3)		(1)			(1)				1			0			0				0
Total fair value hedges		(1)			(6)				1			0			(2)				0
Net investment hedge:
Non-derivative hedging           instruments					0				41						0				(51)
Foreign currency forwards					(42)				55						(16)				(91)
Foreign currency options					(1)				0						(2)				0
Total net investment hedge					(43)				96						(18)				(142)
Non-qualifying strategies:
Foreign currency swaps					6										(27)
Foreign currency swaps - VIE					(36)										40
Foreign currency forwards					(84)										139
Foreign currency options					0										4
Interest rate swaps					(9)										0
Forward bond purchase          commitment- VIE					(1)										2
Total non- qualifying strategies					(124)										158
Total		$	(1)		$	(174)			$	98		$	0		$	138			$	(140)

(1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items.

(2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

(3) Impact of cash flow hedges reported as net investment gains (losses) includes $1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the three-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail).

	Nine Months Ended September 30,
	2021										2020
(In millions)	Net Investment Income(1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)			Net Investment Income(1)			Net Investment Gains (Losses)				Other Comprehensive Income (Loss)(2)
Qualifying hedges:
Cash flow hedges:
Foreign currency swaps - VIE		$	0		$	(3)			$	2		$	(1)		$	0			$	(4)
Total cash flow hedges		0			(3)		(3)		2			(1)			0		(3)		(4)
Fair value hedges:
Foreign currency forwards(3)					0										(7)
Foreign currency options(3)					(12)										(3)
Interest rate swaptions(3)		(1)			(1)				1			(1)			0				1
Total fair value hedges		(1)			(13)				1			(1)			(10)				1
Net investment hedge:
Non-derivative hedging          instruments					0				237						0				(72)
Foreign currency forwards					7				396						136				(166)
Foreign currency options					(4)				0						(3)				0
Total net investment hedge					3				633						133				(238)
Non-qualifying strategies:
Foreign currency swaps					105										54
Foreign currency swaps - VIE					(115)										(185)
Foreign currency forwards					(527)										133
Foreign currency options					1										(1)
Interest rate swaps					(6)										49
Forward bond purchase   commitment - VIE					(2)										0
Total non-qualifying strategies					(544)										50
Total		$	(1)		$	(557)			$	636		$	(2)		$	173			$	(241)

(1) Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items.

(2) Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

(3) Impact of cash flow hedges reported as net investment gains (losses) includes $3 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail).

Offsetting Assets

Offsetting of Financial Assets and Derivative Assets

September 30, 2021
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Received			Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	646		$	0		$	646		$	(375)	$	(21)		$	(249)		$	1
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		646			0			646			(375)		(21)			(249)			1
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		99						99											99
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		99						99											99
Total derivative       assets		745			0			745			(375)		(21)			(249)			100
Securities lending    and similar    arrangements		2,827			0			2,827			0		0			(2,827)			0
Total		$	3,572		$	0		$	3,572		$	(375)	$	(21)		$	(3,076)		$	100

December 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Assets			Gross Amount Offset in Balance Sheet			Net Amount of Assets Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Received			Net Amount
Derivative   assets:
Derivative       assets subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	450		$	0		$	450		$	(295)	$	(73)		$	(76)		$	6
Total derivative       assets subject to a       master netting       agreement or       offsetting       arrangement		450			0			450			(295)		(73)			(76)			6
Derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		133						133											133
Total derivative       assets not subject       to a master netting       agreement or       offsetting       arrangement		133						133											133
Total derivative       assets		583			0			583			(295)		(73)			(76)			139
Securities lending    and similar    arrangements		940			0			940			0		0			(940)			0
Total		$	1,523		$	0		$	1,523		$	(295)	$	(73)		$	(1,016)		$	139

Offsetting Liabilities

Offsetting of Financial Liabilities and Derivative Liabilities

September 30, 2021
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Pledged			Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	898		$	0		$	898		$	(375)	$	(491)		$	(19)		$	13
OTC - cleared		16			0			16			0		0			(15)			1
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		914			0			914			(375)		(491)			(34)			14
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		356						356											356
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		356						356											356
Total derivative       liabilities		1,270			0			1,270			(375)		(491)			(34)			370
Securities lending    and similar    arrangements		2,849			0			2,849			(2,827)		0			0			22
Total		$	4,119		$	0		$	4,119		$	(3,202)	$	(491)		$	(34)		$	392

December 31, 2020
										Gross Amounts Not Offset in Balance Sheet
(In millions)	Gross Amount of Recognized Liabilities			Gross Amount Offset in Balance Sheet			Net Amount of Liabilities Presented  in Balance Sheet			Financial Instruments			Securities Collateral		Cash Collateral Pledged			Net Amount
Derivative   liabilities:
Derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement
OTC - bilateral		$	466		$	0		$	466		$	(295)	$	(43)		$	(69)		$	59
Total derivative       liabilities subject       to a master netting       agreement or       offsetting       arrangement		466			0			466			(295)		(43)			(69)			59
Derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement
OTC - bilateral		231						231											231
Total derivative       liabilities not       subject to a       master netting       agreement or       offsetting       arrangement		231						231											231
Total derivative       liabilities		697			0			697			(295)		(43)			(69)			290
Securities lending    and similar    arrangements		964			0			964			(940)		0			0			24
Total		$	1,661		$	0		$	1,661		$	(1,235)	$	(43)		$	(69)		$	314

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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis

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

	September 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at   fair value:
Fixed maturity securities:
Government and agencies		$	33,903		$	1,323		$	0		$	35,226
Municipalities		0			2,937			0			2,937
Mortgage- and asset-backed securities		0			1,042			250			1,292
Public utilities		0			9,792			523			10,315
Sovereign and supranational		0			1,097			45			1,142
Banks/financial institutions		0			11,696			46			11,742
Other corporate		0			37,762			306			38,068
Total fixed maturity securities		33,903			65,649			1,170			100,722
Equity securities		1,210			90			161			1,461
Other investments		1,833			0			0			1,833
Cash and cash equivalents		6,208			0			0			6,208
Other assets:
Foreign currency swaps		0			52			99			151
Foreign currency forwards		0			593			0			593
Foreign currency options		0			1			0			1
Total other assets		0			646			99			745
Total assets		$	43,154		$	66,385		$	1,430		$	110,969
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	22		$	356		$	378
Foreign currency forwards		0			875			0			875
Interest rate swaps		0			16			0			16
Forward bond purchase commitment		0			1			0			1
Total liabilities		$	0		$	914		$	356		$	1,270

	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at   fair value:
Fixed maturity securities:
Government and agencies		$	36,032		$	1,318		$	0		$	37,350
Municipalities		0			3,018			0			3,018
Mortgage- and asset-backed securities		0			814			224			1,038
Public utilities		0			10,395			422			10,817
Sovereign and supranational		0			1,334			48			1,382
Banks/financial institutions		0			12,036			24			12,060
Other corporate		0			39,918			299			40,217
Total fixed maturity securities		36,032			68,833			1,017			105,882
Equity securities		1,095			86			102			1,283
Other investments		1,139			0			0			1,139
Cash and cash equivalents		5,141			0			0			5,141
Other assets:
Foreign currency swaps		0			47			133			180
Foreign currency forwards		0			402			0			402
Foreign currency options		0			1			0			1
Total other assets		0			450			133			583
Total assets		$	43,407		$	69,369		$	1,252		$	114,028
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	81		$	231		$	312
Foreign currency forwards		0			385			0			385
Total liabilities		$	0		$	466		$	231		$	697

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

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

	September 30, 2021
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity,     carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	21,673		$	26,304		$	237		$	0		$	26,541
Municipalities		346			0			453			0			453
Public utilities		44			0			57			0			57
Sovereign and    supranational		528			0			667			0			667
Other corporate		22			0			30			0			30
Commercial mortgage and     other loans		11,388			0			0			11,596			11,596
Other investments (1)		19			0			19			0			19
Total assets		$	34,020		$	26,304		$	1,463		$	11,596		$	39,363
Liabilities:
Other policyholders’ funds		$	7,286		$	0		$	0		$	7,175		$	7,175
Notes payable    (excluding leases)		7,937			0			8,416			266			8,682
Total liabilities		$	15,223		$	0		$	8,416		$	7,441		$	15,857

(1) Excludes policy loans of $241 and equity method investments of $1,519, at carrying value

	December 31, 2020
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity,    carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	23,445		$	28,810		$	260		$	0		$	29,070
Municipalities		377			0			499			0			499
Public utilities		47			0			61			0			61
Sovereign and    supranational		571			0			736			0			736
Other corporate		24			0			33			0			33
Commercial mortgage and     other loans		10,554			0			0			10,655			10,655
Other investments (1)		26			0			26			0			26
Total assets		$	35,044		$	28,810		$	1,615		$	10,655		$	41,080
Liabilities:
Other policyholders’ funds		$	7,824		$	0		$	0		$	7,709		$	7,709
Notes payable    (excluding leases)		7,745			0			8,396			288			8,684
Total liabilities		$	15,569		$	0		$	8,396		$	7,997		$	16,393

(1) Excludes policy loans of $260 and equity method investments of $1,004, at carrying value

Fair Value Assets Securities Carried At Fair Value Primary Pricing Sources

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

	September 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	33,903		$	831		$	0		$	34,734
Internal		0			492			0			492
Total government and agencies		33,903			1,323			0			35,226
Municipalities:
Third party pricing vendor		0			2,114			0			2,114
Internal		0			823			0			823
Total municipalities		0			2,937			0			2,937
Mortgage- and asset-backed securities:
Third party pricing vendor		0			1,021			0			1,021
Broker/other		0			21			250			271
Total mortgage- and asset-backed securities		0			1,042			250			1,292
Public utilities:
Third party pricing vendor		0			4,628			0			4,628
Internal		0			5,163			0			5,163
Broker/other		0			1			523			524
Total public utilities		0			9,792			523			10,315
Sovereign and supranational:
Third party pricing vendor		0			279			0			279
Internal		0			818			0			818
Broker/other		0			0			45			45
Total sovereign and supranational		0			1,097			45			1,142
Banks/financial institutions:
Third party pricing vendor		0			5,191			0			5,191
Internal		0			6,505			0			6,505
Broker/other		0			0			46			46
Total banks/financial institutions		0			11,696			46			11,742
Other corporate:
Third party pricing vendor		0			29,601			0			29,601
Internal		0			8,155			0			8,155
Broker/other		0			6			306			312
Total other corporate		0			37,762			306			38,068
Total securities available for sale		$	33,903		$	65,649		$	1,170		$	100,722
Equity securities, carried at fair value:
Third party pricing vendor		$	1,210		$	90		$	0		$	1,300
Broker/other		0			0			161			161
Total equity securities		$	1,210		$	90		$	161		$	1,461

	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	36,032		$	1,318		$	0		$	37,350
Total government and agencies		36,032			1,318			0			37,350
Municipalities:
Third party pricing vendor		0			3,018			0			3,018
Total municipalities		0			3,018			0			3,018
Mortgage- and asset-backed securities:
Third party pricing vendor		0			364			0			364
Broker/other		0			450			224			674
Total mortgage- and asset-backed securities		0			814			224			1,038
Public utilities:
Third party pricing vendor		0			10,395			0			10,395
Broker/other		0			0			422			422
Total public utilities		0			10,395			422			10,817
Sovereign and supranational:
Third party pricing vendor		0			1,334			0			1,334
Broker/other		0			0			48			48
Total sovereign and supranational		0			1,334			48			1,382
Banks/financial institutions:
Third party pricing vendor		0			12,036			0			12,036
Broker/other		0			0			24			24
Total banks/financial institutions		0			12,036			24			12,060
Other corporate:
Third party pricing vendor		0			39,886			0			39,886
Broker/other		0			32			299			331
Total other corporate		0			39,918			299			40,217
Total securities available for sale		$	36,032		$	68,833		$	1,017		$	105,882
Equity securities, carried at fair value:
Third party pricing vendor		$	1,095		$	86		$	0		$	1,181
Broker/other		0			0			102			102
Total equity securities		$	1,095		$	86		$	102		$	1,283

Fair Value Assets Held-To-Maturity Securities Primary Pricing Sources

	September 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair  Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	26,304		$	237		$	0		$	26,541
Total government and agencies		26,304			237			0			26,541
Municipalities:
Third party pricing vendor		0			453			0			453
Total municipalities		0			453			0			453
Public utilities:
Third party pricing vendor		0			57			0			57
Total public utilities		0			57			0			57
Sovereign and supranational:
Third party pricing vendor		0			322			0			322
Broker/other		0			345			0			345
Total sovereign and supranational		0			667			0			667
Other corporate:
Third party pricing vendor		0			30			0			30
Total other corporate		0			30			0			30
Total securities held to maturity		$	26,304		$	1,444		$	0		$	27,748

	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair  Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	28,810		$	260		$	0		$	29,070
Total government and agencies		28,810			260			0			29,070
Municipalities:
Third party pricing vendor		0			499			0			499
Total municipalities		0			499			0			499
Public utilities:
Third party pricing vendor		0			61			0			61
Total public utilities		0			61			0			61
Sovereign and supranational:
Third party pricing vendor		0			736			0			736
Total sovereign and supranational		0			736			0			736
Other corporate:
Third party pricing vendor		0			33			0			33
Total other corporate		0			33			0			33
Total securities held to maturity		$	28,810		$	1,589		$	0		$	30,399

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

The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3. Derivative assets and liabilities are presented as a net value.

Three Months Ended September 30, 2021
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	258	$	480	$	45	$	38	$	316	$	158	$	(200)	$	1,095
Net investment gains (losses) included in    earnings	0		0		0		0		2		(1)		(57)		(56)
Unrealized gains (losses) included in other    comprehensive income (loss)	(4)		(3)		0		0		(7)		0		0		(14)
Purchases, issuances, sales and   settlements:
Purchases	35		54		0		8		0		12		0		109
Issuances	0		0		0		0		0		0		0		0
Sales	0		0		0		0		0		(8)		0		(8)
Settlements	0		(8)		0		0		0		0		0		(8)
Transfers into Level 3	0		0		0		0		0		0		0		0
Transfers out of Level 3	(39)		0		0		0		(5)		0		0		(44)
Balance, end of period	$	250	$	523	$	45	$	46	$	306	$	161	$	(257)	$	1,074
Changes in unrealized gains (losses)   relating to Level 3 assets and liabilities   still held at the end of the period   included in earnings	$	(4)	$	(3)	$	0	$	0	$	(7)	$	(1)	$	(57)	$	(72)

Three Months Ended September 30, 2020
	Fixed Maturity Securities								Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Banks/ Financial Institutions		Other Corporate					Foreign Currency Swaps		Total
Balance, beginning of period	$	188	$	322	$	24	$	243	$	86		$	(168)	$	695
Net investment gains (losses) included   in earnings	0		0		0		0		0			23		23
Unrealized gains (losses) included in   other comprehensive income (loss)	3		15		0		24		0			2		44
Purchases, issuances, sales and settlements:
Purchases	0		33		0		1		5			0		39
Issuances	0		0		0		0		0			0		0
Sales	0		0		0		0		(5)			0		(5)
Settlements	0		(2)		0		0		0			0		(2)
Transfers into Level 3	0		0		0		0		0			0		0
Transfers out of Level 3	0		0		0		0		0			0		0
Balance, end of period	$	191	$	368	$	24	$	268	$	86		$	(143)	$	794
Changes in unrealized gains (losses)   relating to Level 3 assets and liabilities   still held at the end of the period   included in earnings	$	0	$	0	$	0	$	0	$	0		$	23	$	23

Nine Months Ended September 30, 2021
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	224	$	422	$	48	$	24	$	299	$	102	$	(98)	$	1,021
Net investment gains (losses) included   in earnings	0		0		0		0		2		21		(158)		(135)
Unrealized gains (losses) included in   other comprehensive income (loss)	(19)		(13)		(3)		(1)		(5)		0		(1)		(42)
Purchases, issuances, sales   and settlements:
Purchases	99		132		0		23		0		29		0		283
Issuances	0		0		0		0		0		17		0		17
Sales	0		0		(23)		0		0		(8)		0		(31)
Settlements	0		(18)		0		0		(17)		0		0		(35)
Transfers into Level 3	0		0		23		0		32		0		0		55
Transfers out of Level 3	(54)		0		0		0		(5)		0		0		(59)
Balance, end of period	$	250	$	523	$	45	$	46	$	306	$	161	$	(257)	$	1,074
Changes in unrealized gains   (losses) relating to Level 3 assets   and liabilities still held at the end   of the period included in earnings	$	(19)	$	(13)	$	(3)	$	(1)	$	(5)	$	21	$	(158)	$	(178)

Nine Months Ended September 30, 2020
	Fixed Maturity Securities								Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	178	$	224	$	23	$	262	$	80	$	43	$	810
Net investment gains (losses) included    in earnings	0		0		0		0		0		(184)		(184)
Unrealized gains (losses) included in other    comprehensive income (loss)	5		6		0		8		0		(2)		17
Purchases, issuances, sales and settlements:
Purchases	0		129		1		13		12		0		155
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		(6)		0		(6)
Settlements	(1)		(6)		0		0		0		0		(7)
Transfers into Level 3	9		15		0		0		0		0		24
Transfers out of Level 3	0		0		0		(15)		0		0		(15)
Balance, end of period	$	191	$	368	$	24	$	268	$	86	$	(143)	$	794
Changes in unrealized gains (losses) relating    to Level 3 assets and liabilities still held at    the end of the period included in earnings	$	0	$	0	$	0	$	0	$	0	$	(184)	$	(184)

Fair Value Measurement Inputs and Valuation Techniques

Level 3 Significant Unobservable Input Sensitivity

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

September 30, 2021
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	250	Consensus pricing	Offered quotes	N/A			(a)
Public utilities		523		Discounted cash flow	Credit spreads	N/A			(a)
Sovereign and supranational		45		Discounted cash flow	Historical volatility	N/A			(a)
Banks/financial institutions		46		Consensus pricing	Offered quotes	N/A			(a)
Other corporate		306		Discounted cash flow	Credit spreads	N/A			(a)
Equity securities		161		Net asset value	Offered quotes	N/A			(a)
Other assets:
Foreign currency swaps		34		Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
					CDS spreads	23 bps	-	124 bps
		65		Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
Total assets		$	1,430
Liabilities:
Other liabilities:
Foreign currency swaps		$	167	Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
					CDS spreads	23 bps	-	182 bps
		189		Discounted cash flow	Interest rates (USD)	1.51%	-	1.79%	(b)
					Interest rates (JPY)	.11%	-	.53%	(c)
Total liabilities		$	356

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

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

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

December 31, 2020
(In millions)	Fair Value			Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Mortgage- and asset-backed securities		$	224	Consensus pricing	Offered quotes	N/A			(a)
Public utilities		422		Discounted cash flow	Credit spreads	N/A			(a)
Sovereign and supranational		48		Discounted cash flow	Historical volatility	N/A			(a)
Banks/financial institutions		24		Consensus pricing	Offered quotes	N/A			(a)
Other corporate		299		Discounted cash flow	Credit spreads	N/A			(a)
Equity securities		102		Net asset value	Offered quotes	N/A			(a)
Other assets:
Foreign currency swaps		69		Discounted cash flow	Interest rates (USD)	.93%	-	1.40%	(b)
					Interest rates (JPY)	.05%	-	.43%	(c)
					CDS spreads	22 bps	-	128 bps
		64		Discounted cash flow	Interest rates (USD)	.93%	-	1.40%	(b)
					Interest rates (JPY)	.05%	-	.43%	(c)
Total assets		$	1,252
Liabilities:
Other liabilities:
Foreign currency swaps		$	160	Discounted cash flow	Interest rates (USD)	.93%	-	1.12%	(b)
					Interest rates (JPY)	.05%	-	.35%	(c)
					CDS spreads	41 bps	-	140 bps
		71		Discounted cash flow	Interest rates (USD)	.93%	-	1.12%	(b)
					Interest rates (JPY)	.05%	-	.35%	(c)
Total liabilities		$	231

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

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

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

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POLICY LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2021

Insurance Loss Reserves [Abstract]

Schedule of Liability for Unpaid Claims Adjustment Expense

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

	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)		2021		2020			2021		2020
Unpaid supplemental health claims, beginning of period		$	4,162	$	4,041		$	4,389	$	3,968
Less reinsurance recoverables		37		37			39		31
Net balance, beginning of period		4,125		4,004			4,350		3,937
Add claims incurred during the period related to:
Current year		1,720		1,780			5,302		5,354
Prior years		(215)		(105)			(739)		(408)
Total incurred		1,505		1,675			4,563		4,946
Less claims paid during the period on claims incurred during:
Current year		1,279		1,295			2,947		2,971
Prior years		219		249			1,676		1,811
Total paid		1,498		1,544			4,623		4,782
Effect of foreign exchange rate changes on unpaid claims		(29)		42			(187)		76
Net balance, end of period		4,103		4,177			4,103		4,177
Add reinsurance recoverables		39		40			39		40
Unpaid supplemental health claims, end of period		4,142		4,217			4,142		4,217
Unpaid life claims, end of period		767		759			767		759
Total liability for unpaid policy claims		$	4,909	$	4,976		$	4,909	$	4,976

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REINSURANCE (Tables)

9 Months Ended

Sep. 30, 2021

Reinsurance Disclosures [Abstract]

Effects of Reinsurance

The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance which also includes the elimination of inter-segment amounts associated with affiliated reinsurance.

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2021			2020			2021			2020
Direct premium income		$	4,426		$	4,711		$	13,567		$	14,236
Ceded to other companies:
Ceded Aflac Japan closed blocks		(107)			(116)			(329)			(349)
Other		(19)			(22)			(54)			(69)
Assumed from other companies:
Retrocession activities		45			49			138			146
Other		27			1			84			5
Net premium income		$	4,372		$	4,623		$	13,406		$	13,969
Direct benefits and claims		$	2,649		$	3,051		$	8,112		$	9,054
Ceded benefits and change in reserves for future benefits:
Ceded Aflac Japan closed blocks		(94)			(103)			(288)			(314)
Eliminations		8			10			24			29
Other		(9)			(10)			(25)			(54)
Assumed from other companies:
Retrocession activities		42			47			126			133
Eliminations		(8)			(10)			(24)			(29)
Other		21			0			71			3
Benefits and claims, net		$	2,609		$	2,985		$	7,996		$	8,822

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NOTES PAYABLE AND LEASE OBLIGATIONS (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

A summary of notes payable and lease obligations follows:

(In millions)	September 30, 2021			December 31, 2020
3.625% senior notes paid May 2021		$	0		$	698
3.625% senior notes due November 2024		748			747
3.25% senior notes due March 2025		448			448
1.125% senior sustainability notes due March 2026		397			0
2.875% senior notes due October 2026		298			298
3.60% senior notes due April 2030		991			990
6.90% senior notes due December 2039		221			221
6.45% senior notes due August 2040		255			254
4.00% senior notes due October 2046		394			394
4.750% senior notes due January 2049		541			541
Yen-denominated senior notes and subordinated debentures:
.300% senior notes due September 2025 (principal amount ¥12.4 billion)		110			119
.932% senior notes due January 2027 (principal amount ¥60.0 billion)		534			578
.500% senior notes due December 2029 (principal amount ¥12.6 billion)		112			121
.550% senior notes due March 2030 (principal amount ¥13.3 billion)		118			127
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)		261			282
.633% senior notes due April 2031 (principal amount ¥30.0 billion)		266			0
.843% senior notes due December 2031 (principal amount ¥9.3 billion)		83			90
.750% senior notes due March 2032 (principal amount ¥20.7 billion)		183			198
.844% senior notes due April 2033 (principal amount ¥12.0 billion)		107			0
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)		135			146
.934% senior notes due December 2034 (principal amount ¥9.8 billion)		87			94
.830% senior notes due March 2035 (principal amount ¥10.6 billion)		94			101
1.039% senior notes due April 2036 (principal amount ¥10.0 billion)		88			0
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)		79			85
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)		56			61
1.264% senior notes due April 2041 (principal amount ¥10.0 billion)		89			0
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)		532			575
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion)		267			289
1.560% senior notes due April 2051 (principal amount ¥20.0 billion)		177			0
Yen-denominated loans:
Variable interest rate loan due September 2026 (.41% in 2021 and .43% in 2020,   principal amount ¥5.0 billion)		44			48
Variable interest rate loan due September 2029 (.56% in 2021 and .58% in 2020,   principal amount ¥25.0 billion)		222			240
Finance lease obligations payable through 2027		13			11
Operating lease obligations payable through 2049		116			143
Total notes payable and lease obligations		$	8,066		$	7,899

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

Schedule of Line of Credit Facilities

A summary of the Company's lines of credit as of September 30, 2021 follows:

Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
Aflac Incorporated and Aflac	uncommitted bilateral	364 days	December 17, 2021	$100 million	$0 million	The rate quoted by the bank and agreed upon at the time of borrowing	Up to 3 months	None	General corporate purposes
Aflac Incorporated	unsecured revolving	5 years	March 29, 2024, or the date commitments are terminated pursuant to an event of default	¥100.0 billion	¥0.0 billion	A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period	No later than March 29, 2024	.30% to .50%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	unsecured revolving	5 years	November 18, 2024, or the date commitments are terminated pursuant to an event of default	$1.0 billion	$0.0 billion	A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) for U.S. dollar denominated borrowings or TIBOR for Japanese yen denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin	No later than November 18, 2024	.085% to .225%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	uncommitted bilateral	None specified	None specified	$50 million	$0 million	A rate per annum equal to, at the Company's option, either (a) a rate determined by reference to LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (a) the lender's U.S. dollar short-term commercial loan rate, (b) the federal funds rate plus 1/2 of 1% and (c) one-month LIBOR plus 1%. LIBOR is subject to replacement with Secured Overnight Financing Rate (SOFR) under certain circumstances	Up to 3 months	None	General corporate purposes
Aflac(1)	uncommitted revolving	364 days	November 30, 2021	$250 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	April 4, 2022	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	November 26, 2021	¥50.0 billion	¥0.0 billion	Three-month TIBOR plus 70 basis points per annum	3 months	None	General corporate purposes
Aflac New York(1)	uncommitted revolving	364 days	April 8, 2022	$25 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
CAIC(1)	uncommitted revolving	364 days	March 21, 2022	$15 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes

(1) Intercompany credit agreement

(continued)

Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
Tier One Insurance Company(1)	uncommitted revolving	364 days	March 21, 2022	$0.3 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	3 months	None	General corporate purposes
AGV Management Services Japan K.K.(1)	uncommitted revolving	364 days	May 2, 2022	¥500 million	¥350 million	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period	No later than May 2, 2022	None	General corporate purposes
Hatch Healthcare K.K.(1)	uncommitted revolving	364 days	January 3, 2022	¥900 million	¥0 million	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period	No later than January 3, 2022	None	General corporate purposes
Hatch Insight K.K.(1)	uncommitted revolving	364 days	January 3, 2022	¥600 million	¥0 million	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period	No later than January 3, 2022	None	General corporate purposes
Aflac GI Holdings LLC(1)	uncommitted revolving	364 days	July 18, 2022	$30 million	$0 million	USD three-month LIBOR plus 75 basis points per annum	No later than July 18, 2022	None	General corporate purposes

(1) Intercompany credit agreement

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SHAREHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2021

Stockholders' Equity Note [Abstract]

Schedule of Common Stock Outstanding Roll Forward

The following table is a reconciliation of the number of shares of the Company's common stock for the nine-month periods ended September 30.

(In thousands of shares)	2021	2020
Common stock - issued:
Balance, beginning of period	1,351,018	1,349,309
Exercise of stock options and issuance of restricted shares	1,544	1,546
Balance, end of period	1,352,562	1,350,855
Treasury stock:
Balance, beginning of period	658,564	622,516
Purchases of treasury stock:
Share repurchase program	32,186	26,108
Other	419	541
Dispositions of treasury stock:
Shares issued to AFL Stock Plan	(967)	(1,584)
Exercise of stock options	(240)	(49)
Other	(217)	(251)
Balance, end of period	689,745	647,281
Shares outstanding, end of period	662,817	703,574

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

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

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2021		2020		2021		2020
Anti-dilutive share-based awards		0		592		1		857

Changes in Accumulated Other Comprehensive Income (Loss)

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

Changes in Accumulated Other Comprehensive Income

Three Months Ended September 30, 2021
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at June 30, 2021		$	(1,661)		$	9,992		$	(33)		$	(279)		$	8,019
Other comprehensive    income (loss) before    reclassification		(99)			(251)			0			(5)			(355)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(10)			2			6			(2)
Net current-period other    comprehensive    income (loss)		(99)			(261)			2			1			(357)
Balance at September 30, 2021		$	(1,760)		$	9,731		$	(31)		$	(278)		$	7,662

All amounts in the table above are net of tax.

Three Months Ended September 30, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at June 30, 2020		$	(1,469)		$	8,532		$	(36)		$	(277)		$	6,750
Other comprehensive    income (loss) before    reclassification		179			995			1			(5)			1,170
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			(7)			0			4			(3)
Net current-period other    comprehensive    income (loss)		179			988			1			(1)			1,167
Balance at September 30, 2020		$	(1,290)		$	9,520		$	(35)		$	(278)		$	7,917

All amounts in the table above are net of tax.

Nine Months Ended September 30, 2021
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at December 31, 2020		$	(1,109)		$	10,361		$	(34)		$	(284)		$	8,934
Other comprehensive    income (loss) before    reclassification		(651)			(632)			0			(15)			(1,298)
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			2			3			21			26
Net current-period other    comprehensive    income (loss)		(651)			(630)			3			6			(1,272)
Balance at September 30, 2021		$	(1,760)		$	9,731		$	(31)		$	(278)		$	7,662

All amounts in the table above are net of tax.

Nine Months Ended September 30, 2020
(In millions)	Unrealized Foreign Currency Translation Gains (Losses)			Unrealized Gains (Losses) on Fixed Maturity Securities			Unrealized Gains (Losses) on Derivatives			Pension Liability Adjustment			Total
Balance at December 31, 2019		$	(1,623)		$	8,548		$	(33)		$	(277)		$	6,615
Cumulative effect of change    in accounting principle -    ASU 2019-04		0			848			0			0			848
Balance at January 1, 2020		$	(1,623)		$	9,396		$	(33)		$	(277)		$	7,463
Other comprehensive    income (loss) before    reclassification		333			20			(2)			(18)			333
Amounts reclassified from    accumulated other    comprehensive income   (loss)		0			104			0			17			121
Net current-period other    comprehensive    income (loss)		333			124			(2)			(1)			454
Balance at September 30, 2020		$	(1,290)		$	9,520		$	(35)		$	(278)		$	7,917

All amounts in the table above are net of tax.

Reclassification Out Of Accumulated Other Comprehensive Income

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

Reclassifications Out of Accumulated Other Comprehensive Income

(In millions)	Three Months Ended September 30, 2021
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	13	Net investment gains (losses)
		(3)		Tax (expense) or benefit(1)
		$	10	Net of tax
Unrealized gains (losses) on derivatives		$	(2)	Net investment gains (losses)
		0		Tax (expense) or benefit(1)
		$	(2)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(8)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		2		Tax (expense) or benefit(1)
		$	(6)	Net of tax
Total reclassifications for the period		$	2	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Three Months Ended September 30, 2020
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	13	Net investment gains (losses)
		(6)		Tax (expense) or benefit(1)
		$	7	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(7)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		3		Tax (expense) or benefit(1)
		$	(4)	Net of tax
Total reclassifications for the period		$	3	Net of tax

(1) Based on 21% tax rate, with a cumulative adjustment to the first six months of 2020 due to the effects of Final and Proposed Regulations released on September 29, 2020 by the U.S. Treasury and Internal Revenue Service and addressing, among other items, the allocation of insurance expenses in the calculation of the foreign tax credit limitation. See Note 10 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Nine Months Ended September 30, 2021
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	(2)	Net investment gains (losses)
		0		Tax (expense) or benefit(1)
		$	(2)	Net of tax
Unrealized gains (losses) on derivatives		$	(4)	Net investment gains (losses)
		1		Tax (expense) or benefit(1)
		$	(3)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(27)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		6		Tax (expense) or benefit(1)
		$	(21)	Net of tax
Total reclassifications for the period		$	(26)	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

(In millions)	Nine Months Ended September 30, 2020
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statements of Earnings
Unrealized gains (losses) on available-for-sale    securities		$	(132)	Net investment gains (losses)
		28		Tax (expense) or benefit(1)
		$	(104)	Net of tax
Amortization of defined benefit pension items:
Actuarial gains (losses)		$	(22)	Acquisition and operating expenses(2)
Prior service (cost) credit		0		Acquisition and operating expenses(2)
		5		Tax (expense) or benefit(1)
		$	(17)	Net of tax
Total reclassifications for the period		$	(121)	Net of tax

(1) Based on 21% tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

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SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Options Outstanding and Exercisable

The following table provides information on stock options outstanding and exercisable at September 30, 2021.

	Stock Option Shares (in thousands)		Weighted-Average Remaining Term (in years)		Aggregate Intrinsic Value (in millions)			Weighted-Average Exercise Price Per Share
Outstanding		2,317		3.6		$	49		$	30.87
Exercisable		2,317		3.6		49			30.87

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes restricted stock activity during the nine-month period ended September 30, 2021.

(In thousands of shares)	Shares	Weighted-Average Grant-Date Fair Value Per Share
Restricted stock at December 31, 2020	2,580		$	48.57
Granted in 2021	1,454		47.70
Canceled in 2021	(102)		48.89
Vested in 2021	(1,317)		45.91
Restricted stock at September 30, 2021	2,615		$	49.20

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BENEFIT PLANS (Tables)

9 Months Ended

Sep. 30, 2021

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Schedule of Net Benefit Costs

Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statement of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) $4 million and $6 million for the three-month periods ended September 30, 2021 and 2020, respectively and $18 million for the nine-month periods ended September 30, 2021 and 2020. Total net periodic cost includes the following components:

	Three Months Ended September 30,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2021			2020			2021			2020			2021			2020
Components of net periodic   benefit cost:
Service cost		$	6		$	6		$	7		$	7		$	0		$	0
Interest cost		1			1			8			9			0			0
Expected return on plan assets		(2)			(2)			(11)			(9)			0			0
Amortization of net actuarial loss		1			1			7			6			0			0
Net periodic (benefit) cost		$	6		$	6		$	11		$	13		$	0		$	0

	Nine Months Ended September 30,
	Pension Benefits												Other
	Japan						U.S.						Postretirement Benefits
(In millions)	2021			2020			2021			2020			2021			2020
Components of net periodic   benefit cost:
Service cost		$	18		$	18		$	21		$	21		$	0		$	0
Interest cost		3			3			24			25			1			1
Expected return on plan assets		(6)			(6)			(31)			(27)			0			0
Amortization of net actuarial loss		2			3			23			18			2			1
Net periodic (benefit) cost		$	17		$	18		$	37		$	37		$	3		$	2

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Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jan. 01, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Significant Accounting Policies [Line Items]
Number of reportable insurance business segments | segment	2
Accumulated other comprehensive income (loss)	$ 7,662	$ 7,917	$ 8,019		$ 8,934	$ 6,750	$ 6,615
Lower Limit | Pro Forma | Accounting Standards Update 2018-12 | Cumulative effect, period of adoption, adjustment
Significant Accounting Policies [Line Items]
Accumulated other comprehensive income (loss)				$ (18,000)
Upper Limit | Pro Forma | Accounting Standards Update 2018-12 | Cumulative effect, period of adoption, adjustment
Significant Accounting Policies [Line Items]
Accumulated other comprehensive income (loss)				$ (20,000)
Aflac Japan
Significant Accounting Policies [Line Items]
Percentage of the Company's total revenues	69.00%	68.00%
Percentage of the Company's total assets	82.00%				83.00%

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BUSINESS SEGMENT INFORMATION - Operations by Segment - Revenues (Details) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)
Segment Reporting, Revenue Reconciling Item [Line Items]
Number of reportable insurance business segments | segment				2
Net earned premiums		$ 4,372	$ 4,623	$ 13,406	$ 13,969
Total adjusted revenues		5,395	5,535	16,412	16,688
Net investment gains (losses)	[1],[2],[3],[4]	(158)	130	258	(454)
Total revenues		5,237	5,665	16,670	16,234
Aflac Japan
Segment Reporting, Revenue Reconciling Item [Line Items]
Net earned premiums		2,934	3,168	9,045	9,476
Adjusted net investment income	[1],[3]	763	663	2,260	1,939
Other income		10	11	32	32
Total adjusted revenues		3,707	3,842	11,337	11,447
Hedge costs		20	51	55	155
Net interest cash flows from derivatives		(7)	6	(24)	5
Aflac U.S.
Segment Reporting, Revenue Reconciling Item [Line Items]
Net earned premiums		1,393	1,407	4,223	4,348
Adjusted net investment income	[4]	191	175	557	523
Other income		32	24	90	78
Total adjusted revenues		1,616	1,606	4,870	4,949
Net interest cash flows from derivatives		1	1	1	2
Corporate and other
Segment Reporting, Revenue Reconciling Item [Line Items]
Total adjusted revenues	[2],[5]	72	87	205	292
Hedge income		13	$ 22	45	$ 78
Corporate and Other
Segment Reporting, Revenue Reconciling Item [Line Items]
Income (loss) from federal historic rehabilitation and solar tax credit investments		(5)		(35)
Federal historic rehabilitation and solar tax credits, amount		$ 10		$ 35

[1] Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

[2] Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations.

[3] Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

[4] Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

[5] The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, are included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

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BUSINESS SEGMENT INFORMATION - Operations by Segment - Pretax Earnings (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]
Pretax adjusted earnings	[1]	$ 1,293	$ 1,037	$ 3,940	$ 3,455
Net investment gains (losses)	[2],[3],[4],[5],[6]	(172)	117	216	(497)
Other income (loss)		(8)	(1)	(66)	(16)
Earnings before income taxes		1,113	1,153	4,090	2,942
Income taxes applicable to pretax adjusted earnings		262	43	771	659
Effect of foreign currency translation on after tax adjusted earnings		(14)	3	(8)	17
Interest expense on debt		40	44	130	122
Aflac Japan
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]
Pretax adjusted earnings	[2],[5]	976	747	2,867	2,442
Hedge costs		20	51	55	155
Net interest cash flows from derivatives		(7)	6	(24)	5
Aflac U.S.
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]
Pretax adjusted earnings	[6]	358	329	1,217	1,082
Net interest cash flows from derivatives		1	1	1	2
Corporate and other
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]
Pretax adjusted earnings	[3],[4],[7]	(41)	(39)	(144)	(69)
Hedge income		13	22	45	78
Gain (loss) on change in fair value of derivative, interest rate component		14	$ 13	41	$ 43
Corporate and Other
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]
Income (loss) from federal historic rehabilitation and solar tax credit investments		(5)		(35)
Federal historic rehabilitation and solar tax credits, amount		$ 10		$ 35

[1] Includes $40 and $44 for the three-month periods and $130 and $122 for the nine-month periods ended September 30, 2021, and 2020, respectively, of interest expense on debt.

[2] Amortized hedge costs of $20 and $51 for the three-month periods and $55 and $155 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.

[3] A gain of $14 and $13 for the three-month periods and $41 and $43 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.

[4] Amortized hedge income of $13 and $22 for the three-month periods and $45 and $78 for the nine-month periods ended September 30, 2021, and 2020, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.

[5] Net interest cash flows from derivatives associated with certain investment strategies of $(7) and $6 for the three-month periods and $(24) and $5 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.

[6] Net interest cash flows from derivatives associated with certain investment strategies of $1 for both three-month periods and $1 and $2 for the nine-month periods ended September 30, 2021 and 2020, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income.

[7] The change in value of federal historic rehabilitation and solar investments in partnerships of $5 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, is included as a reduction to net investment income. Offsetting tax credits on these investments of $10 and $35 for the three- and nine-month periods ended September 30, 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.

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BUSINESS SEGMENT INFORMATION - Operations by Segment - Assets (Detail) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 160,597	$ 165,086
Aflac Japan
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	131,651	137,271
Aflac U.S.
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	23,304	22,864
Corporate and other
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 5,642	$ 4,951

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INVESTMENTS - Available-for-sale Debt Securities (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 87,228	$ 91,630
Allowance for Credit Losses	0	38
Gross Unrealized Gains	13,729	14,771
Gross Unrealized Losses	235	481
Fair Value	100,722	105,882
Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	52,974	56,049
Allowance for Credit Losses	0	0
Gross Unrealized Gains	7,338	8,420
Gross Unrealized Losses	158	198
Fair Value	60,154	64,271
Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	34,254	35,581
Allowance for Credit Losses	0	38
Gross Unrealized Gains	6,391	6,351
Gross Unrealized Losses	77	283
Fair Value	40,568	41,611
Japan government and agencies | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	31,549	32,959
Allowance for Credit Losses	0	0
Gross Unrealized Gains	3,574	4,182
Gross Unrealized Losses	62	52
Fair Value	35,061	37,089
Municipalities
Debt Securities, Available-for-sale [Line Items]
Fair Value	2,937	3,018
Municipalities | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,224	1,324
Allowance for Credit Losses	0	0
Gross Unrealized Gains	323	374
Gross Unrealized Losses	5	5
Fair Value	1,542	1,693
Municipalities | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,217	1,154
Allowance for Credit Losses	0	0
Gross Unrealized Gains	179	173
Gross Unrealized Losses	1	2
Fair Value	1,395	1,325
Mortgage- and asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Fair Value	1,292	1,038
Mortgage- and asset-backed securities | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	310	342
Allowance for Credit Losses	0	0
Gross Unrealized Gains	21	27
Gross Unrealized Losses	1	1
Fair Value	330	368
Mortgage- and asset-backed securities | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	932	667
Allowance for Credit Losses	0	0
Gross Unrealized Gains	30	8
Gross Unrealized Losses	0	5
Fair Value	962	670
Public utilities
Debt Securities, Available-for-sale [Line Items]
Fair Value	10,315	10,817
Public utilities | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	4,584	4,777
Allowance for Credit Losses	0	0
Gross Unrealized Gains	930	1,096
Gross Unrealized Losses	2	1
Fair Value	5,512	5,872
Public utilities | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,887	4,013
Allowance for Credit Losses	0	0
Gross Unrealized Gains	920	947
Gross Unrealized Losses	4	15
Fair Value	4,803	4,945
Sovereign and supranational
Debt Securities, Available-for-sale [Line Items]
Fair Value	1,142	1,382
Sovereign and supranational | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	781	981
Allowance for Credit Losses	0	0
Gross Unrealized Gains	81	108
Gross Unrealized Losses	0	0
Fair Value	862	1,089
Sovereign and supranational | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	225	232
Allowance for Credit Losses	0	0
Gross Unrealized Gains	59	64
Gross Unrealized Losses	4	3
Fair Value	280	293
Banks/financial institutions
Debt Securities, Available-for-sale [Line Items]
Fair Value	11,742	12,060
Banks/financial institutions | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	7,149	7,552
Allowance for Credit Losses	0	0
Gross Unrealized Gains	834	886
Gross Unrealized Losses	66	102
Fair Value	7,917	8,336
Banks/financial institutions | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,081	2,973
Allowance for Credit Losses	0	0
Gross Unrealized Gains	745	758
Gross Unrealized Losses	1	7
Fair Value	3,825	3,724
Other corporate
Debt Securities, Available-for-sale [Line Items]
Fair Value	38,068	40,217
Other corporate | Yen-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	7,377	8,114
Allowance for Credit Losses	0	0
Gross Unrealized Gains	1,575	1,747
Gross Unrealized Losses	22	37
Fair Value	8,930	9,824
Other corporate | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	24,757	26,297
Allowance for Credit Losses	0	38
Gross Unrealized Gains	4,448	4,385
Gross Unrealized Losses	67	251
Fair Value	29,138	30,393
U.S. government and agencies | Dollar-denominated
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	155	245
Allowance for Credit Losses	0	0
Gross Unrealized Gains	10	16
Gross Unrealized Losses	0	0
Fair Value	$ 165	$ 261

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INVESTMENTS - Held-to-Maturity Debt Securities (Details) - USD ($) $ in Millions	Sep. 30, 2021		Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	$ 22,622		$ 24,474
Allowance for Credit Loss	9		10
Net Carrying Amount	22,613	[1]	24,464
Gross Unrealized Gains	5,135		5,935
Gross Unrealized Losses	0		0
Fair Value	27,748		30,399
Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	22,622		24,474
Allowance for Credit Loss	9		10
Net Carrying Amount	22,613		24,464
Gross Unrealized Gains	5,135		5,935
Gross Unrealized Losses	0		0
Fair Value	27,748		30,399
Japan government and agencies | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	21,676		23,448
Allowance for Credit Loss	3		3
Net Carrying Amount	21,673		23,445
Gross Unrealized Gains	4,868		5,625
Gross Unrealized Losses	0		0
Fair Value	26,541		29,070
Municipalities
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	346		377
Fair Value	453		499
Municipalities | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	346		377
Allowance for Credit Loss	0		0
Net Carrying Amount	346		377
Gross Unrealized Gains	107		122
Gross Unrealized Losses	0		0
Fair Value	453		499
Public utilities
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	44		47
Fair Value	57		61
Public utilities | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	45		48
Allowance for Credit Loss	1		1
Net Carrying Amount	44		47
Gross Unrealized Gains	13		14
Gross Unrealized Losses	0		0
Fair Value	57		61
Sovereign and supranational
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	528		571
Fair Value	667		736
Sovereign and supranational | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	533		577
Allowance for Credit Loss	5		6
Net Carrying Amount	528		571
Gross Unrealized Gains	139		165
Gross Unrealized Losses	0		0
Fair Value	667		736
Other corporate
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	22		24
Fair Value	30		33
Other corporate | Yen-denominated
Schedule of Held-to-maturity Securities [Line Items]
Securities held to maturity, fixed maturities, amortized cost	22		24
Allowance for Credit Loss	0		0
Net Carrying Amount	22		24
Gross Unrealized Gains	8		9
Gross Unrealized Losses	0		0
Fair Value	$ 30		$ 33

[1] Net of allowance for credit losses

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INVESTMENTS - Equity Securities (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Equity Securities, FV-NI [Line Items]
Fair Value	$ 1,461	$ 1,283
Yen-denominated
Equity Securities, FV-NI [Line Items]
Fair Value	753	680
Dollar-denominated
Equity Securities, FV-NI [Line Items]
Fair Value	667	603
Other currencies
Equity Securities, FV-NI [Line Items]
Fair Value	$ 41	$ 0

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INVESTMENTS - Contractual and Economic Maturities of Investments in Fixed Maturities (Detail) - USD ($) $ in Millions		Sep. 30, 2021		Dec. 31, 2020
Available for sale:
Due in one year or less	[1]	$ 914
Due after one year through five years	[1]	8,302
Due after five years through 10 years	[1]	13,291
Due after 10 years	[1]	63,479
Mortgage- and asset-backed securities	[1]	1,242
Total fixed maturity securities, available for sale, amortized cost	[1]	87,228
Held to maturity:
Due in one year or less	[1]	0
Due after one year through five years	[1]	45
Due after five years through 10 years	[1]	8,753
Due after 10 years	[1]	13,815
Mortgage- and asset-backed securities	[1]	0
Total fixed maturity securities, held to maturity, amortized cost		22,613	[1]	$ 24,464
Available for sale:
Due in one year or less		930
Due after one year through five years		8,909
Due after five years through 10 years		15,565
Due after 10 years		74,026
Mortgage- and asset-backed securities		1,292
Total fixed maturity securities, available for sale, fair value		100,722		105,882
Held to maturity:
Due in one year or less		0
Due after one year through five years		49
Due after five years through 10 years		10,207
Due after 10 years		17,492
Mortgage- and asset-backed securities		0
Total fixed maturity securities, held to maturity, fair value		$ 27,748		$ 30,399

[1] Net of allowance for credit losses

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INVESTMENTS - Investment Exposures Individually Exceeded 10% of Shareholders' Equity (Details) - Japan National Government - USD ($) $ in Millions		9 Months Ended	12 Months Ended
		Sep. 30, 2021	Dec. 31, 2020
Summary of Investment Holdings [Line Items]
Credit Rating	[1]	A+	A+
Amortized Cost	[1]	$ 51,953	$ 55,153
Fair Value	[1]	$ 60,106	$ 64,657

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

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INVESTMENTS - Information Regarding Pretax Net Gains and Losses From Investments (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Gain (Loss) on Securities [Line Items]
Total net investment gains (losses)	$ (171)	$ 108	$ 224	$ (525)
Credit Losses
Fixed maturity securities available for sale	27	0	38	(75)
Fixed maturity securities held to maturity	0	0	1	1
Commercial mortgage and other loans	(29)	78	15	(86)
Impairment losses	0	0	(20)	0
Loan commitments	3	64	3	(17)
Reinsurance recoverable and other	0	0	(2)	(2)
Total credit losses	1	142	35	(179)
Derivatives and Other
Derivative gains (losses)	(174)	138	(557)	173
Foreign currency gains (losses)	135	(186)	783	(356)
Derivatives and other
Gain (Loss) on Securities [Line Items]
Total net investment gains (losses)	(39)	(48)	226	(183)
Equity securities
Gain (Loss) on Securities [Line Items]
Total net investment gains (losses)	(119)	12	(17)	(106)
Fixed maturity securities
Gain (Loss) on Securities [Line Items]
Gross gains from sales	24	7	40	28
Gross losses from sales	(36)	0	(39)	(46)
Foreign currency gains (losses) on sales and redemptions	(2)	(5)	(21)	(39)
Total net investment gains (losses)	$ (14)	$ 2	$ (20)	$ (57)

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INVESTMENTS - Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Investments [Abstract]
Unrealized gains (losses) on securities available for sale	$ 13,494	$ 14,290
Deferred income taxes	(3,763)	(3,929)
Shareholders' equity, unrealized gains (losses) on fixed maturity securities	$ 9,731	$ 10,361

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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	Sep. 30, 2021	Dec. 31, 2020
Fixed maturity securities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	$ 7,946	$ 10,781
Total Unrealized Losses	235	481
Less than 12 months Fair Value	2,609	6,902
Less than 12 months Unrealized Losses	31	184
12 months or Longer Fair Value	5,337	3,879
12 months or Longer Unrealized Losses	204	297
Yen-denominated | Fixed maturity securities | Japan government and agencies
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	2,980	2,604
Total Unrealized Losses	62	52
Less than 12 months Fair Value	342	2,604
Less than 12 months Unrealized Losses	2	52
12 months or Longer Fair Value	2,638	0
12 months or Longer Unrealized Losses	60	0
Yen-denominated | Fixed maturity securities | Municipalities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	168	183
Total Unrealized Losses	5	5
Less than 12 months Fair Value	30	169
Less than 12 months Unrealized Losses	0	4
12 months or Longer Fair Value	138	14
12 months or Longer Unrealized Losses	5	1
Yen-denominated | Fixed maturity securities | Mortgage- and asset-backed securities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	34	37
Total Unrealized Losses	1	1
Less than 12 months Fair Value	0	37
Less than 12 months Unrealized Losses	0	1
12 months or Longer Fair Value	34	0
12 months or Longer Unrealized Losses	1	0
Yen-denominated | Fixed maturity securities | Public utilities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	242	135
Total Unrealized Losses	2	1
Less than 12 months Fair Value	182	135
Less than 12 months Unrealized Losses	1	1
12 months or Longer Fair Value	60	0
12 months or Longer Unrealized Losses	1	0
Yen-denominated | Fixed maturity securities | Other corporate
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	558	613
Total Unrealized Losses	22	37
Less than 12 months Fair Value	106	290
Less than 12 months Unrealized Losses	1	13
12 months or Longer Fair Value	452	323
12 months or Longer Unrealized Losses	21	24
Yen-denominated | Fixed maturity securities | Banks/financial institutions
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	1,824	1,809
Total Unrealized Losses	66	102
Less than 12 months Fair Value	735	765
Less than 12 months Unrealized Losses	5	36
12 months or Longer Fair Value	1,089	1,044
12 months or Longer Unrealized Losses	61	66
Dollar-denominated | Fixed maturity securities | Municipalities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	56	94
Total Unrealized Losses	1	2
Less than 12 months Fair Value	56	94
Less than 12 months Unrealized Losses	1	2
12 months or Longer Fair Value	0	0
12 months or Longer Unrealized Losses	0	0
Dollar-denominated | Fixed maturity securities | Mortgage- and asset-backed securities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value		360
Total Unrealized Losses		5
Less than 12 months Fair Value		360
Less than 12 months Unrealized Losses		5
12 months or Longer Fair Value		0
12 months or Longer Unrealized Losses		0
Dollar-denominated | Fixed maturity securities | Public utilities
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	195	326
Total Unrealized Losses	4	15
Less than 12 months Fair Value	108	208
Less than 12 months Unrealized Losses	2	7
12 months or Longer Fair Value	87	118
12 months or Longer Unrealized Losses	2	8
Dollar-denominated | Fixed maturity securities | Other corporate
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	1,731	4,499
Total Unrealized Losses	67	251
Less than 12 months Fair Value	898	2,157
Less than 12 months Unrealized Losses	17	59
12 months or Longer Fair Value	833	2,342
12 months or Longer Unrealized Losses	50	192
Dollar-denominated | Fixed maturity securities | Sovereign and supranational
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	6	39
Total Unrealized Losses	4	3
Less than 12 months Fair Value	6	39
Less than 12 months Unrealized Losses	1	3
12 months or Longer Fair Value	0	0
12 months or Longer Unrealized Losses	3	0
Dollar-denominated | Fixed maturity securities | Banks/financial institutions
Investments, Unrealized Loss Position [Line Items]
Total Fair Value	152	82
Total Unrealized Losses	1	7
Less than 12 months Fair Value	146	44
Less than 12 months Unrealized Losses	1	1
12 months or Longer Fair Value	6	38
12 months or Longer Unrealized Losses	$ 0	$ 6

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INVESTMENTS - Commercial Mortgage and Other Loans by Portfolio Segment (Details) - USD ($) $ in Millions	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	[1]
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 11,553		$ 10,734
Percent of total commercial mortgage and other loans	100.00%		100.00%
Allowance for credit losses	$ (165)		$ (180)
Total net commercial mortgage and other loans	11,388		10,554
Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 5,211		$ 5,294
Percent of total commercial mortgage and other loans	45.10%		49.30%
Allowance for credit losses	$ (59)	$ (41)	$ (63)	$ (53)	$ (66)	$ (22)
Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 1,861		$ 1,720
Percent of total commercial mortgage and other loans	16.10%		16.00%
Allowance for credit losses	$ (17)	(22)	$ (32)	(28)	(42)	(3)
Middle market loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 4,481		$ 3,720
Percent of total commercial mortgage and other loans	38.80%		34.70%
Allowance for credit losses	$ (89)	$ (76)	$ (85)	$ (84)	$ (134)	$ (20)
Office | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 1,944		$ 2,115
Percent of total commercial mortgage and other loans	16.80%		19.70%
Office | Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 395		$ 401
Percent of total commercial mortgage and other loans	3.40%		3.70%
Retail | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 140		$ 125
Percent of total commercial mortgage and other loans	1.20%		1.20%
Retail | Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 334		$ 340
Percent of total commercial mortgage and other loans	3.00%		3.20%
Apartment/Multi-Family | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 1,666		$ 1,782
Percent of total commercial mortgage and other loans	14.40%		16.60%
Apartment/Multi-Family | Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 640		$ 588
Percent of total commercial mortgage and other loans	5.50%		5.50%
Industrial | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 46		$ 85
Percent of total commercial mortgage and other loans	0.40%		0.80%
Industrial | Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 478		$ 391
Percent of total commercial mortgage and other loans	4.10%		3.60%
Hospitality | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 1,075		$ 1,106
Percent of total commercial mortgage and other loans	9.30%		10.30%
Other | Transitional real estate loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 340		$ 81
Percent of total commercial mortgage and other loans	3.00%		0.70%
Other | Commercial mortgage loans
Participating Mortgage Loans [Line Items]
Commercial mortgage and other loans, gross	$ 14		$ 0
Percent of total commercial mortgage and other loans	0.10%		0.00%

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

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INVESTMENTS - Transitional Real Estate Loans by Key Credit Quality Indicators (Details) - Transitional real estate loans $ in Millions	Sep. 30, 2021 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 1,435
2020	403
2019	1,713
2018	1,219
2017	441
Total Financing Receivable	5,211
Loan to Value Ratio, Zero to Fifty-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2021	449
2020	55
2019	439
2018	353
2017	77
Total Financing Receivable	1,373
Loan to Value Ratio, Sixty to Sixty-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2021	417
2020	136
2019	831
2018	543
2017	182
Total Financing Receivable	2,109
Loan to Value Ratio, Seventy to Seventy-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2021	569
2020	184
2019	443
2018	323
2017	182
Total Financing Receivable	1,701
Loan-to-Value Ratio Eighty Percent and Above
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	28
2019	0
2018	0
2017	0
Total Financing Receivable	$ 28

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INVESTMENTS - Commercial Mortgage Loans by Key Credit Quality Indicators (Details) - Commercial mortgage loans $ in Millions	Sep. 30, 2021 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 208
2020	47
2019	646
2018	168
2017	68
Prior	724
Total Financing Receivable	$ 1,861
Weighted Average Debt Service Coverage Ratio	2.42
2021
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	2.49
2020
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	1.94
2019
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	2.55
2018
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	2.32
2017
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	2.78
Prior
Financing Receivable, Credit Quality Indicator [Line Items]
Weighted Average Debt Service Coverage Ratio	2.30
Loan to Value Ratio, Zero to Fifty-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 174
2020	47
2019	559
2018	168
2017	68
Prior	561
Total Financing Receivable	$ 1,577
Weighted Average Debt Service Coverage Ratio	2.51
Loan to Value Ratio, Sixty to Sixty-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 34
2020	0
2019	87
2018	0
2017	0
Prior	138
Total Financing Receivable	$ 259
Weighted Average Debt Service Coverage Ratio	1.97
Loan to Value Ratio, Seventy to Seventy-nine Point Nine-nine Percent
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 0
2020	0
2019	0
2018	0
2017	0
Prior	25
Total Financing Receivable	$ 25
Weighted Average Debt Service Coverage Ratio	1.67

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INVESTMENTS - Middle Market Loans by Key Credit Quality Indicators (Details) - Middle market loans $ in Millions	Sep. 30, 2021 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 757
2020	945
2019	1,033
2018	620
2017	375
Prior	200
Revolving Loans	551
Total Financing Receivable	4,481
BBB Credit Rating
Financing Receivable, Credit Quality Indicator [Line Items]
2021	54
2020	78
2019	51
2018	39
2017	10
Prior	3
Revolving Loans	68
Total Financing Receivable	303
BB Credit Rating
Financing Receivable, Credit Quality Indicator [Line Items]
2021	346
2020	347
2019	283
2018	163
2017	106
Prior	27
Revolving Loans	221
Total Financing Receivable	1,493
B Credit Rating
Financing Receivable, Credit Quality Indicator [Line Items]
2021	357
2020	493
2019	635
2018	323
2017	154
Prior	121
Revolving Loans	170
Total Financing Receivable	2,253
CCC Credit Rating
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	19
2019	64
2018	81
2017	79
Prior	49
Revolving Loans	87
Total Financing Receivable	379
CC Credit Rating
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	14
2017	26
Prior	0
Revolving Loans	5
Total Financing Receivable	45
C and Lower Credit Rating
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	8
2019	0
2018	0
2017	0
Prior	0
Revolving Loans	0
Total Financing Receivable	$ 8

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INVESTMENTS - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020		Dec. 31, 2019
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period			$ (180)
Balance, end of period	$ (165)		(165)
Transitional real estate loans
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	(41)	$ (66)	(63)	$ (22)	[1]
Cumulative Effect of Adoption of 2016-13						$ (2)
(Addition to) release of allowance for credit losses	(18)	13	4	(29)
Write-offs, net of recoveries	0	0	0	0
Balance, end of period	(59)	(53)	(59)	(53)
Commercial mortgage loans
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	(22)	(42)	(32)	(3)	[1]
Cumulative Effect of Adoption of 2016-13						(8)
(Addition to) release of allowance for credit losses	5	14	15	(17)
Write-offs, net of recoveries	0	0	0	0
Balance, end of period	(17)	(28)	(17)	(28)
Middle market loans
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	(76)	(134)	(85)	(20)	[1]
Cumulative Effect of Adoption of 2016-13						(33)
(Addition to) release of allowance for credit losses	(13)	59	(4)	(31)
Write-offs, net of recoveries	0	(9)	0	0
Balance, end of period	(89)	(84)	(89)	(84)
Held-to-maturity securities
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	(8)	(9)	(10)	0	[1]
Cumulative Effect of Adoption of 2016-13						(10)
(Addition to) release of allowance for credit losses	(1)	0	1	1
Write-offs, net of recoveries	0	0	0	0
Balance, end of period	(9)	(9)	(9)	(9)
Available-for-sale securities
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	(26)	(38)	(38)	0	[1]
Cumulative Effect of Adoption of 2016-13						0
(Addition to) release of allowance for credit losses	0	(1)	26	(75)
Write-offs, net of recoveries	26	1	12	37
Balance, end of period	0	(38)	0	(38)
Reinsurance recoverables
Allowance for Loan Losses by Portfolio Segment [Roll Forward]
Balance, beginning of period	(13)	(11)	(12)	0	[1]
Cumulative Effect of Adoption of 2016-13						$ (11)
(Addition to) release of allowance for credit losses	0	0	(1)	0
Write-offs, net of recoveries	0	0	0	0
Balance, end of period	$ (13)	$ (11)	$ (13)	$ (11)

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

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INVESTMENTS - Other Investments (Details) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Investment Holdings [Line Items]
Other investments		$ 3,612	$ 2,429
Policy loans
Investment Holdings [Line Items]
Other investments		241	260
Short-term investments
Investment Holdings [Line Items]
Other investments	[1]	1,833	1,139
Limited partnerships
Investment Holdings [Line Items]
Other investments		1,519	1,004
Other
Investment Holdings [Line Items]
Other investments		$ 19	$ 26

[1] Includes securities lending collateral

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INVESTMENTS - Investments in Consolidated Variable Interest Entities (Detail) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Available for sale, fixed maturity securities, amortized cost		$ 87,228	$ 91,630
Available for sale, fixed maturity securities		100,722	105,882
Equity securities		1,461	1,283
Commercial mortgage and other loans		11,388	10,554
Commercial mortgage and other loans, fair value		11,596	10,655
Other investments		3,612	2,429
Asset derivatives		745	583
Assets, fair value		110,969	114,028
Liability derivatives		1,270	697
Liabilities		127,045	131,527
Liabilities, fair value		1,270	697
Variable Interest Entity, Consolidated
Variable Interest Entity [Line Items]
Available for sale, fixed maturity securities, amortized cost	[1]	3,228	3,487
Available for sale, fixed maturity securities		4,437	4,596
Commercial mortgage and other loans	[1]	9,543	8,964
Commercial mortgage and other loans, fair value		9,723	9,040
Other investments	[1],[2]	1,272	826
Other investments, fair value	[2]	1,272	826
Asset derivatives, amortized cost	[1],[3]	99	133
Asset derivatives	[3]	99	133
Assets, amortized cost	[1]	14,142	13,410
Assets, fair value		15,531	14,595
Liability derivatives, amortized cost	[1],[3]	356	231
Liability derivatives	[3]	356	231
Liabilities	[1]	356	231
Liabilities, fair value		$ 356	$ 231

[1] Net of allowance for credit losses

[2] Consists entirely of alternative investments in limited partnerships

[3] Consists entirely of derivatives

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INVESTMENTS - Investments in Variable Interest Entities Not Consolidated (Details) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Available for sale, fixed maturity securities, amortized cost		$ 87,228	$ 91,630
Available for sale, fixed maturity securities		100,722	105,882
Securities held to maturity, fixed maturities, amortized cost		22,622	24,474
Held to maturity, fixed maturity securities, fair value		27,748	30,399
Other investments		3,612	2,429
Assets, fair value		110,969	114,028
Variable Interest Entity, Not Consolidated
Variable Interest Entity [Line Items]
Available for sale, fixed maturity securities, amortized cost		4,990	5,477
Available for sale, fixed maturity securities		6,119	6,767
Other investments	[1]	247	178
Other investments, fair value	[1]	247	178
Assets, amortized cost		5,237	5,655
Assets, fair value		$ 6,366	$ 6,945

[1] Consists entirely of alternative investments in limited partnerships

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INVESTMENTS - Securities Lending Transactions Accounted for as Secured Borrowings (Details) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		$ 2,849	$ 964
Gross amount of recognized liabilities for securities lending		2,849	964
Japan government and agencies
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		1,587	0
Public utilities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		27	57
Sovereign and supranational
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		2	3
Banks/financial institutions
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		81	63
Other corporate
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		1,152	841
Maturity Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	1,262	964
Maturity Overnight and Continuous | Japan government and agencies
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	0	0
Maturity Overnight and Continuous | Public utilities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	27	57
Maturity Overnight and Continuous | Sovereign and supranational
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	2	3
Maturity Overnight and Continuous | Banks/financial institutions
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	81	63
Maturity Overnight and Continuous | Other corporate
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred	[1]	1,152	841
Maturity up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		1,587	0
Maturity up to 30 Days | Japan government and agencies
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		1,587	0
Maturity up to 30 Days | Public utilities
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		0	0
Maturity up to 30 Days | Sovereign and supranational
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		0	0
Maturity up to 30 Days | Banks/financial institutions
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		0	0
Maturity up to 30 Days | Other corporate
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred		$ 0	$ 0

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

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INVESTMENTS - Additional Information (Detail) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2020 investment	Jun. 30, 2020 investment	Sep. 30, 2021 USD ($) investment	Dec. 31, 2020 USD ($)	Jan. 01, 2020 USD ($)
Schedule of Investments [Line Items]
Held to maturity securities transferred to available for sale securities, number of investments | investment		0	0	0
Equity securities, FV-NI, unrealized gain (loss)	$ 170			$ (33)
Available for sale, fixed maturity securities, allowance for credit losses	0			0	$ 38
Transitional real estate loan commitments	645			645
Commercial mortgage loan commitments	0			0
Middle market loan program unfunded amount	25			25
Middle market loan commitments	1,700			1,700
Securities held to maturity, fixed maturities, amortized cost	22,622			22,622	24,474
Loan Commitments, Allowance for Credit Loss	32			32
Limited partnerships investment commitments	$ 1,900			$ 1,900
Percentage that the lending policy requires that the fair value of the securities received as collateral be of the fair value of the loaned securities	102.00%			102.00%
Percentage that the lending policy requires that the fair value of the unrestricted cash received as collateral be of the fair value of the loaned securities	100.00%			100.00%
Securities Lending, Securities Received as Collateral	$ 7,969			$ 7,969	6,654
Financing Receivable, Troubled Debt Restructuring	0			0
Repurchase Agreements and Repurchase-to-Maturity Transactions Outstanding	0			0	$ 0
Accounting Standards Update 2019-04
Schedule of Investments [Line Items]
New Accounting Pronouncement Or Change In Accounting Principle Effect Of Adoption Reclassification From Held To Maturity To Available For Sale Debt Securities						$ 6,900
New Accounting Pronouncement Or Change In Accounting Principle Effect Of Adoption Unrealized Gain Loss Net Of Tax Reclassification To Accumulated Other Comprehensive Income						$ 848
Zero-credit-loss expectation | Japan government and agencies
Schedule of Investments [Line Items]
Securities held to maturity, fixed maturities, amortized cost	$ 21,500			$ 21,500
CALIFORNIA | Commercial Mortgage and Transitional Real Estate Loans | Mortgages
Schedule of Investments [Line Items]
Concentration Risk, Percentage				18.00%
TEXAS | Commercial Mortgage and Transitional Real Estate Loans | Mortgages
Schedule of Investments [Line Items]
Concentration Risk, Percentage				13.00%
FLORIDA | Commercial Mortgage and Transitional Real Estate Loans | Mortgages
Schedule of Investments [Line Items]
Concentration Risk, Percentage				9.00%

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DERIVATIVE INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Notional Amount	$ 41,694	$ 58,656
Derivative, net liability position, aggregate fair value	694	$ 268
Additional Collateral, Aggregate Fair Value	169
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred	$ (5)
Maximum Length of Time Hedged in Cash Flow Hedge	5 years
Senior notes | Interest rate swaps
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Notional Amount	$ 2,300

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DERIVATIVE INSTRUMENTS - Summary of Balance Sheet Classification of Derivative Fair Value Amounts, as well as Gross Asset and Liability Fair Value Amounts (Detail) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Notional Amount	$ 41,694	$ 58,656
Derivative asset, fair value, gross asset including not subject to master netting arrangement	745	583
Derivative liability, fair value, gross liability including not subject to master netting arrangement	1,270	697
Asset derivatives fair value	646	450
Liability derivatives fair value	914	466
Cash flow hedges
Derivatives, Fair Value [Line Items]
Notional Amount	18	18
Asset derivatives fair value	0	0
Liability derivatives fair value	2	1
Cash flow hedges | Foreign currency swaps | Variable Interest Entity, Consolidated
Derivatives, Fair Value [Line Items]
Notional Amount	18	18
Asset derivatives fair value	0	0
Liability derivatives fair value	2	1
Fair value hedges
Derivatives, Fair Value [Line Items]
Notional Amount	8,472	8,929
Asset derivatives fair value	1	2
Liability derivatives fair value	3	0
Fair value hedges | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Notional Amount	62	64
Asset derivatives fair value	0	2
Liability derivatives fair value	3	0
Fair value hedges | Foreign currency options
Derivatives, Fair Value [Line Items]
Notional Amount	8,410	8,865
Asset derivatives fair value	1	0
Liability derivatives fair value	0	0
Net investment hedge
Derivatives, Fair Value [Line Items]
Notional Amount	6,950	7,037
Asset derivatives fair value	240	15
Liability derivatives fair value	0	84
Net investment hedge | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Notional Amount	4,996	5,010
Asset derivatives fair value	240	14
Liability derivatives fair value	0	84
Net investment hedge | Foreign currency options
Derivatives, Fair Value [Line Items]
Notional Amount	1,954	2,027
Asset derivatives fair value	0	1
Liability derivatives fair value	0	0
Non-qualifying strategies
Derivatives, Fair Value [Line Items]
Notional Amount	26,254	42,672
Asset derivatives fair value	504	566
Liability derivatives fair value	1,265	612
Non-qualifying strategies | Foreign currency swaps | Variable Interest Entity, Consolidated
Derivatives, Fair Value [Line Items]
Notional Amount	3,141	2,857
Asset derivatives fair value	99	133
Liability derivatives fair value	354	230
Non-qualifying strategies | Foreign currency swaps | Consolidated Entity Excluding Variable Interest Entities (VIE)
Derivatives, Fair Value [Line Items]
Notional Amount	2,250	2,250
Asset derivatives fair value	52	47
Liability derivatives fair value	22	81
Non-qualifying strategies | Foreign currency forwards
Derivatives, Fair Value [Line Items]
Notional Amount	14,153	26,528
Asset derivatives fair value	353	386
Liability derivatives fair value	872	301
Non-qualifying strategies | Foreign currency options
Derivatives, Fair Value [Line Items]
Notional Amount	3,165	11,037
Asset derivatives fair value	0	0
Liability derivatives fair value	0	0
Non-qualifying strategies | Interest rate swaps
Derivatives, Fair Value [Line Items]
Notional Amount	3,500	0
Asset derivatives fair value	0	0
Liability derivatives fair value	16	0
Non-qualifying strategies | Forward bond purchase commitment | Variable Interest Entity, Consolidated
Derivatives, Fair Value [Line Items]
Notional Amount	45	0
Asset derivatives fair value	0	0
Liability derivatives fair value	$ 1	$ 0

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DERIVATIVE INSTRUMENTS - Gains (Losses) Recognized on Fair Value Hedging Relationships (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) recognized for derivatives		$ (6)	$ (1)	$ (21)	$ (19)
Gains (losses) on derivatives excluded from effectiveness testing	[1]	(5)	(2)	(15)	(11)
Gains (losses) on derivatives included in effectiveness testing	[2]	(1)	1	(6)	(8)
Gains (losses) recognized for hedged items	[2]	1	(1)	9	9
Net realized gains (losses) recognized for fair value hedge		0	0	3	1
Fixed maturity securities | Foreign currency forwards
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) recognized for derivatives		(1)	1	(5)	(15)
Gains (losses) on derivatives excluded from effectiveness testing	[1]	0	0	0	(8)
Gains (losses) on derivatives included in effectiveness testing	[2]	(1)	1	(5)	(7)
Gains (losses) recognized for hedged items	[2]	1	(1)	5	8
Net realized gains (losses) recognized for fair value hedge		0	0	0	1
Fixed maturity securities | Foreign currency options
Derivative Instruments, Gain (Loss) [Line Items]
Total gains (losses) recognized for derivatives		(5)	(2)	(16)	(4)
Gains (losses) on derivatives excluded from effectiveness testing	[1]	(5)	(2)	(15)	(3)
Gains (losses) on derivatives included in effectiveness testing	[2]	0	0	(1)	(1)
Gains (losses) recognized for hedged items	[2]	0	0	4	1
Net realized gains (losses) recognized for fair value hedge		$ 0	$ 0	$ 3	$ 0

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

[2] Gains and losses on foreign currency forwards and options and related hedged items are reported in the consolidated statement of earnings as net investment gains (losses). For interest rate swaptions and related hedged items, gains and losses included in the hedge assessment, premium amortization and time value amortization while the hedge items are still outstanding are reported within net investment income. The time value gains and losses for interest rate swaptions when the related hedged items are redeemed are reported in net investment gains and losses consistent with the impact of the hedged item. For the three-month and nine-month periods ended September 30, 2021 and 2020, gains and losses included in the hedge assessment on interest rate swaptions and related hedged items were immaterial.

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DERIVATIVE INSTRUMENTS - Schedule of Interest Rate Fair Value Hedges Hedged Items (Details) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount		$ 41,694	$ 58,656
Fair value hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount		8,472	8,929
Fixed maturity securities | Interest rate swaptions
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying Amount of Hedged Assets/ (Liabilities)	[1]	3,261	4,331
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)		$ 216	$ 237

[1] The balance includes hedging adjustment on discontinued hedging relationships of $216 in 2021 and $237 in 2020.

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DERIVATIVE INSTRUMENTS - Derivatives and Hedging Instruments Gain (Loss) Summary (Details) - USD ($) $ in Millions		3 Months Ended				9 Months Ended
		Sep. 30, 2021		Sep. 30, 2020		Sep. 30, 2021		Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other comprehensive income on derivative		$ 2		$ 2		$ 3		$ (3)
Unrealized foreign currency translation gains (losses) during period		(93)		172		(646)		329
Derivative and non-derivative hedging instruments, gain (loss) recognized in other comprehensive income, before tax	[1]	98		(140)		636		(241)
Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	[2]	(1)		0		(1)		(2)
Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(174)		138		(557)		173
Reclassification Out Of Accumulated Other Comprehensive Income
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments, cash flow hedges, gains (losses) reclassified from accumulated other comprehensive income into earnings		(1)				(3)
Derivative instruments, fair value hedges excluded component, gains (losses) reclassified from accumulated other comprehensive income into earnings		(1)				(1)
Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other comprehensive income on derivative	[1]	1		2		2		(4)
Cash flow hedges | Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	[2]	0		0		0		(1)
Cash flow hedges | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(1)	[3]	0	[3]	(3)	[4]	0	[4]
Cash flow hedges | Foreign currency swaps | Variable Interest Entity
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other comprehensive income on derivative	[1]	1		2		2		(4)
Cash flow hedges | Foreign currency swaps | Variable Interest Entity | Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	[2]	0		0		0		(1)
Cash flow hedges | Foreign currency swaps | Variable Interest Entity | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(1)		0		(3)		0
Fair value hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other comprehensive income on derivative	[1]	1		0		1		1
Fair value hedges | Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	[2]	(1)		0		(1)		(1)
Fair value hedges | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(6)		(2)		(13)		(10)
Fair value hedges | Foreign currency forwards | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		0	[3]	0	[3]	0	[4]	(7)	[4]
Fair value hedges | Foreign currency options | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(5)	[3]	(2)	[3]	(12)	[4]	(3)	[4]
Fair value hedges | Interest rate swaptions
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in other comprehensive income on derivative	[1]	1	[3]	0	[3]	1	[4]	1	[4]
Fair value hedges | Interest rate swaptions | Net investment income
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative	[2]	(1)	[3]	0	[3]	(1)	[4]	(1)	[4]
Fair value hedges | Interest rate swaptions | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(1)	[3]	0	[3]	(1)	[4]	0	[4]
Net investment hedge
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized foreign currency translation gains (losses) during period	[1]	96		(142)		633		(238)
Net investment hedge | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(43)		(18)		3		133
Net investment hedge | Foreign currency forwards
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized foreign currency translation gains (losses) during period	[1]	55		(91)		396		(166)
Net investment hedge | Foreign currency forwards | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(42)		(16)		7		136
Net investment hedge | Foreign currency options
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized foreign currency translation gains (losses) during period	[1]	0		0		0		0
Net investment hedge | Foreign currency options | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(1)		(2)		(4)		(3)
Net investment hedge | Non-derivative hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized foreign currency translation gains (losses) during period	[1]	41		(51)		237		(72)
Net investment hedge | Non-derivative hedging instruments | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		0		0		0		0
Non-qualifying strategies | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(124)		158		(544)		50
Non-qualifying strategies | Foreign currency swaps | Variable Interest Entity | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(36)		40		(115)		(185)
Non-qualifying strategies | Foreign currency swaps | Consolidated Entity Excluding Variable Interest Entities (VIE) | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		6		(27)		105		54
Non-qualifying strategies | Foreign currency forwards | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(84)		139		(527)		133
Non-qualifying strategies | Foreign currency options | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		0		4		1		(1)
Non-qualifying strategies | Interest rate swaps | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		(9)		0		(6)		49
Non-qualifying strategies | Forward bond purchase commitment | Variable Interest Entity | Net investment gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in income on derivative		$ (1)		$ 2		$ (2)		$ 0

[1] Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses). Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).

[2] Interest expense/income on cash flow hedges are recorded in net investment income. For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term. If the swaption is early terminated but the hedge item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items.

[3] Impact of cash flow hedges reported as net investment gains (losses) includes $1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the three-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail).

[4] Impact of cash flow hedges reported as net investment gains (losses) includes $3 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month period ended September 30, 2021. In addition, $1 of losses and an immaterial amount were reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month periods ended September 30, 2021 and 2020, respectively, related to fair value hedges excluded component. Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail).

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DERIVATIVE INSTRUMENTS - Offsetting of Financial Assets and Derivative Assets (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Offsetting Assets [Line Items]
Gross amount of recognized derivative assets	$ 646	$ 450
Gross amount of liabilities offset in balance sheet	0	0
Net amount of derivative assets presented in balance sheet	646	450
Financial instruments, amount not offset	(375)	(295)
Derivative, collateral, obligation to return securities	(21)	(73)
Derivative, collateral, obligation to return cash	(249)	(76)
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement	1	6
Derivative asset, not subject to master netting arrangement	99	133
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement	99	133
Derivative asset, fair value, gross asset including not subject to master netting arrangement	745	583
Net amount of derivative assets presented in balance sheet	745	583
Derivative asset, fair value, amount offset against collateral	100	139
Gross amounts of recognized financial instruments	3,572	1,523
Gross amounts offset in balance sheet	0	0
Net amounts of assets presented in balance sheet	3,572	1,523
Carrying value of financial instruments not offset in balance sheet	(375)	(295)
Securities collateral, not offset in balance sheet	(21)	(73)
Cash collateral, not offset in balance sheet	(3,076)	(1,016)
Financial instruments, amount of assets offset against collateral	100	139
Over the Counter - Bilateral
Offsetting Assets [Line Items]
Gross amount of recognized derivative assets	646	450
Gross amount of liabilities offset in balance sheet	0	0
Net amount of derivative assets presented in balance sheet	646	450
Financial instruments, amount not offset	(375)	(295)
Derivative, collateral, obligation to return securities	(21)	(73)
Derivative, collateral, obligation to return cash	(249)	(76)
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement	1	6
Derivative asset, not subject to master netting arrangement	99	133
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement	99	133
Securities Lending and Similar Arrangements
Offsetting Assets [Line Items]
Gross amounts of recognized financial instruments	2,827	940
Gross amounts offset in balance sheet	0	0
Net amounts of assets presented in balance sheet	2,827	940
Carrying value of financial instruments not offset in balance sheet	0	0
Securities collateral, not offset in balance sheet	0	0
Cash collateral, not offset in balance sheet	(2,827)	(940)
Financial instruments, amount of assets offset against collateral	$ 0	$ 0

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DERIVATIVE INSTRUMENTS - Offsetting of Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Offsetting Liabilities [Line Items]
Gross amount of recognized derivative liabilities	$ 914	$ 466
Gross amount of assets offset in balance sheet	0	0
Derivative liability, fair value, amount not offset against collateral	914	466
Financial instruments, amount not offset	(375)	(295)
Derivative, collateral, right to reclaim securities	(491)	(43)
Derivative, collateral, right to reclaim cash	(34)	(69)
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement	14	59
Derivative liability, not subject to master netting arrangement	356	231
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement	356	231
Derivative liability, fair value, gross liability including not subject to master netting arrangement	1,270	697
Net amount of derivative liabilities presented in balance sheet	1,270	697
Derivative liability, fair value, amount offset against collateral	370	290
Gross Amounts of Recognized Financial Instruments, Offsetting Liabilities	4,119	1,661
Gross Amounts Offset in Statement of Financial Position, Offsetting Liabilities	0	0
Net Amounts of Financial Instruments Presented in Balance Sheet, Offsetting Liabilities	4,119	1,661
Carrying value of financial instruments, liabilities not offset in balance sheet	(3,202)	(1,235)
Securities Collateral, Liabilities Not Offset in Balance Sheet	(491)	(43)
Cash Collateral, Liabilities Not Offset in Balance Sheet	(34)	(69)
Financial instruments, amount of liabilities offset against collateral	392	314
Over the Counter - Bilateral
Offsetting Liabilities [Line Items]
Gross amount of recognized derivative liabilities	898	466
Gross amount of assets offset in balance sheet	0	0
Derivative liability, fair value, amount not offset against collateral	898	466
Financial instruments, amount not offset	(375)	(295)
Derivative, collateral, right to reclaim securities	(491)	(43)
Derivative, collateral, right to reclaim cash	(19)	(69)
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement	13	59
Derivative liability, not subject to master netting arrangement	356	231
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement	356	231
Securities Lending and Similar Arrangements
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Financial Instruments, Offsetting Liabilities	2,849	964
Gross Amounts Offset in Statement of Financial Position, Offsetting Liabilities	0	0
Net Amounts of Financial Instruments Presented in Balance Sheet, Offsetting Liabilities	2,849	964
Carrying value of financial instruments, liabilities not offset in balance sheet	(2,827)	(940)
Securities Collateral, Liabilities Not Offset in Balance Sheet	0	0
Cash Collateral, Liabilities Not Offset in Balance Sheet	0	0
Financial instruments, amount of liabilities offset against collateral	22	$ 24
Other the Counter - Cleared
Offsetting Liabilities [Line Items]
Gross amount of recognized derivative liabilities	16
Gross amount of assets offset in balance sheet	0
Derivative liability, fair value, amount not offset against collateral	16
Financial instruments, amount not offset	0
Derivative, collateral, right to reclaim securities	0
Derivative, collateral, right to reclaim cash	(15)
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement	$ 1

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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	Sep. 30, 2021	Dec. 31, 2020
Assets:
Available for sale, fixed maturity securities	$ 100,722	$ 105,882
Equity securities	1,461	1,283
Other investments	1,833	1,139
Cash and cash equivalents	6,208	5,141
Asset derivatives	745	583
Total assets	110,969	114,028
Liabilities:
Liability derivatives	1,270	697
Total liabilities	1,270	697
Foreign currency swaps
Assets:
Asset derivatives	151	180
Liabilities:
Liability derivatives	378	312
Foreign currency forwards
Assets:
Asset derivatives	593	402
Liabilities:
Liability derivatives	875	385
Foreign currency options
Assets:
Asset derivatives	1	1
Interest rate swaps
Liabilities:
Liability derivatives	16
Forward bond purchase commitment
Liabilities:
Liability derivatives	1
Government and agencies
Assets:
Available for sale, fixed maturity securities	35,226	37,350
Municipalities
Assets:
Available for sale, fixed maturity securities	2,937	3,018
Mortgage- and asset-backed securities
Assets:
Available for sale, fixed maturity securities	1,292	1,038
Public utilities
Assets:
Available for sale, fixed maturity securities	10,315	10,817
Sovereign and supranational
Assets:
Available for sale, fixed maturity securities	1,142	1,382
Banks/financial institutions
Assets:
Available for sale, fixed maturity securities	11,742	12,060
Other corporate
Assets:
Available for sale, fixed maturity securities	38,068	40,217
Level 1
Assets:
Available for sale, fixed maturity securities	33,903	36,032
Equity securities	1,210	1,095
Other investments	1,833	1,139
Cash and cash equivalents	6,208	5,141
Asset derivatives	0	0
Total assets	43,154	43,407
Liabilities:
Total liabilities	0	0
Level 1 | Foreign currency swaps
Assets:
Asset derivatives	0	0
Liabilities:
Liability derivatives	0	0
Level 1 | Foreign currency forwards
Assets:
Asset derivatives	0	0
Liabilities:
Liability derivatives	0	0
Level 1 | Foreign currency options
Assets:
Asset derivatives	0	0
Level 1 | Interest rate swaps
Liabilities:
Liability derivatives	0
Level 1 | Forward bond purchase commitment
Liabilities:
Liability derivatives	0
Level 1 | Government and agencies
Assets:
Available for sale, fixed maturity securities	33,903	36,032
Level 1 | Municipalities
Assets:
Available for sale, fixed maturity securities	0	0
Level 1 | Mortgage- and asset-backed securities
Assets:
Available for sale, fixed maturity securities	0	0
Level 1 | Public utilities
Assets:
Available for sale, fixed maturity securities	0	0
Level 1 | Sovereign and supranational
Assets:
Available for sale, fixed maturity securities	0	0
Level 1 | Banks/financial institutions
Assets:
Available for sale, fixed maturity securities	0	0
Level 1 | Other corporate
Assets:
Available for sale, fixed maturity securities	0	0
Level 2
Assets:
Available for sale, fixed maturity securities	65,649	68,833
Equity securities	90	86
Other investments	0	0
Cash and cash equivalents	0	0
Asset derivatives	646	450
Total assets	66,385	69,369
Liabilities:
Total liabilities	914	466
Level 2 | Foreign currency swaps
Assets:
Asset derivatives	52	47
Liabilities:
Liability derivatives	22	81
Level 2 | Foreign currency forwards
Assets:
Asset derivatives	593	402
Liabilities:
Liability derivatives	875	385
Level 2 | Foreign currency options
Assets:
Asset derivatives	1	1
Level 2 | Interest rate swaps
Liabilities:
Liability derivatives	16
Level 2 | Forward bond purchase commitment
Liabilities:
Liability derivatives	1
Level 2 | Government and agencies
Assets:
Available for sale, fixed maturity securities	1,323	1,318
Level 2 | Municipalities
Assets:
Available for sale, fixed maturity securities	2,937	3,018
Level 2 | Mortgage- and asset-backed securities
Assets:
Available for sale, fixed maturity securities	1,042	814
Level 2 | Public utilities
Assets:
Available for sale, fixed maturity securities	9,792	10,395
Level 2 | Sovereign and supranational
Assets:
Available for sale, fixed maturity securities	1,097	1,334
Level 2 | Banks/financial institutions
Assets:
Available for sale, fixed maturity securities	11,696	12,036
Level 2 | Other corporate
Assets:
Available for sale, fixed maturity securities	37,762	39,918
Level 3
Assets:
Available for sale, fixed maturity securities	1,170	1,017
Equity securities	161	102
Other investments	0	0
Cash and cash equivalents	0	0
Asset derivatives	99	133
Total assets	1,430	1,252
Liabilities:
Total liabilities	356	231
Level 3 | Foreign currency swaps
Assets:
Asset derivatives	99	133
Liabilities:
Liability derivatives	356	231
Level 3 | Foreign currency forwards
Assets:
Asset derivatives	0	0
Liabilities:
Liability derivatives	0	0
Level 3 | Foreign currency options
Assets:
Asset derivatives	0	0
Level 3 | Interest rate swaps
Liabilities:
Liability derivatives	0
Level 3 | Forward bond purchase commitment
Liabilities:
Liability derivatives	0
Level 3 | Government and agencies
Assets:
Available for sale, fixed maturity securities	0	0
Level 3 | Municipalities
Assets:
Available for sale, fixed maturity securities	0	0
Level 3 | Mortgage- and asset-backed securities
Assets:
Available for sale, fixed maturity securities	250	224
Level 3 | Public utilities
Assets:
Available for sale, fixed maturity securities	523	422
Level 3 | Sovereign and supranational
Assets:
Available for sale, fixed maturity securities	45	48
Level 3 | Banks/financial institutions
Assets:
Available for sale, fixed maturity securities	46	24
Level 3 | Other corporate
Assets:
Available for sale, fixed maturity securities	$ 306	$ 299

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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	Sep. 30, 2021		Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments	$ 3,612		$ 2,429
Assets:
Securities held to maturity, fixed maturities, amortized cost	22,622		24,474
Held to maturity, fixed maturity securities, fair value	27,748		30,399
Commercial mortgage and other loans	11,388		10,554
Commercial mortgage and other loans, fair value	11,596		10,655
Other investments carried at amortized cost	19	[1]	26	[2]
Other investments carried at amortized cost, fair value	19	[1]	26	[2]
Total financial instruments assets not carried at fair value	34,020		35,044
Assets fair value disclosure financial instruments carried at cost	39,363		41,080
Liabilities:
Other policyholders’ funds	7,286		7,824
Other policyholders' funds fair value disclosure	7,175		7,709
Notes payable	7,937		7,745
Notes payable, fair value disclosure	8,682		8,684
Total financial instrument liabilities not carried at fair value	15,223		15,569
Liabilities fair value disclosure financial instruments carried at cost	15,857		16,393
Government and agencies
Assets:
Securities held to maturity, fixed maturities, amortized cost	21,673		23,445
Held to maturity, fixed maturity securities, fair value	26,541		29,070
Municipalities
Assets:
Securities held to maturity, fixed maturities, amortized cost	346		377
Held to maturity, fixed maturity securities, fair value	453		499
Public utilities
Assets:
Securities held to maturity, fixed maturities, amortized cost	44		47
Held to maturity, fixed maturity securities, fair value	57		61
Sovereign and supranational
Assets:
Securities held to maturity, fixed maturities, amortized cost	528		571
Held to maturity, fixed maturity securities, fair value	667		736
Other corporate
Assets:
Securities held to maturity, fixed maturities, amortized cost	22		24
Held to maturity, fixed maturity securities, fair value	30		33
Policy loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments	241		260
Equity method investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other investments	1,519		1,004
Level 1
Assets:
Held to maturity, fixed maturity securities, fair value	26,304		28,810
Commercial mortgage and other loans, fair value	0		0
Other investments carried at amortized cost, fair value	0	[1]	0	[2]
Assets fair value disclosure financial instruments carried at cost	26,304		28,810
Liabilities:
Other policyholders' funds fair value disclosure	0		0
Notes payable, fair value disclosure	0		0
Liabilities fair value disclosure financial instruments carried at cost	0		0
Level 1 | Government and agencies
Assets:
Held to maturity, fixed maturity securities, fair value	26,304		28,810
Level 1 | Municipalities
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 1 | Public utilities
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 1 | Sovereign and supranational
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 1 | Other corporate
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 2
Assets:
Held to maturity, fixed maturity securities, fair value	1,444		1,589
Commercial mortgage and other loans, fair value	0		0
Other investments carried at amortized cost, fair value	19	[1]	26	[2]
Assets fair value disclosure financial instruments carried at cost	1,463		1,615
Liabilities:
Other policyholders' funds fair value disclosure	0		0
Notes payable, fair value disclosure	8,416		8,396
Liabilities fair value disclosure financial instruments carried at cost	8,416		8,396
Level 2 | Government and agencies
Assets:
Held to maturity, fixed maturity securities, fair value	237		260
Level 2 | Municipalities
Assets:
Held to maturity, fixed maturity securities, fair value	453		499
Level 2 | Public utilities
Assets:
Held to maturity, fixed maturity securities, fair value	57		61
Level 2 | Sovereign and supranational
Assets:
Held to maturity, fixed maturity securities, fair value	667		736
Level 2 | Other corporate
Assets:
Held to maturity, fixed maturity securities, fair value	30		33
Level 3
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Commercial mortgage and other loans, fair value	11,596		10,655
Other investments carried at amortized cost, fair value	0	[1]	0	[2]
Assets fair value disclosure financial instruments carried at cost	11,596		10,655
Liabilities:
Other policyholders' funds fair value disclosure	7,175		7,709
Notes payable, fair value disclosure	266		288
Liabilities fair value disclosure financial instruments carried at cost	7,441		7,997
Level 3 | Government and agencies
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 3 | Municipalities
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 3 | Public utilities
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 3 | Sovereign and supranational
Assets:
Held to maturity, fixed maturity securities, fair value	0		0
Level 3 | Other corporate
Assets:
Held to maturity, fixed maturity securities, fair value	$ 0		$ 0

[1] Excludes policy loans of $241 and equity method investments of $1,519, at carrying value

[2] Excludes policy loans of $260 and equity method investments of $1,004, at carrying value

XML

FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Securities Carried at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	$ 100,722	$ 105,882
Equity securities	1,461	1,283
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	33,903	36,032
Equity securities	1,210	1,095
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	65,649	68,833
Equity securities	90	86
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,170	1,017
Equity securities	161	102
Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	1,300	1,181
Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	1,210	1,095
Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	90	86
Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0	0
Net asset value valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	161	102
Net asset value valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0	0
Net asset value valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	0	0
Net asset value valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	161	102
Government and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	35,226	37,350
Government and agencies | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	33,903	36,032
Government and agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,323	1,318
Government and agencies | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Government and agencies | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	34,734	37,350
Government and agencies | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	33,903	36,032
Government and agencies | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	831	1,318
Government and agencies | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Government and agencies | Internal valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	492
Government and agencies | Internal valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Government and agencies | Internal valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	492
Government and agencies | Internal valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Municipalities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	2,937	3,018
Municipalities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Municipalities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	2,937	3,018
Municipalities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Municipalities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	2,114	3,018
Municipalities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Municipalities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	2,114	3,018
Municipalities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Municipalities | Internal valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	823
Municipalities | Internal valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Municipalities | Internal valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	823
Municipalities | Internal valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Mortgage- and asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,292	1,038
Mortgage- and asset-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Mortgage- and asset-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,042	814
Mortgage- and asset-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	250	224
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,021	364
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,021	364
Mortgage- and asset-backed securities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Mortgage- and asset-backed securities | Consensus pricing valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	271	674
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	21	450
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	250	224
Public utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	10,315	10,817
Public utilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Public utilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	9,792	10,395
Public utilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	523	422
Public utilities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	4,628	10,395
Public utilities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Public utilities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	4,628	10,395
Public utilities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Public utilities | Discounted cash flow technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	524	422
Public utilities | Discounted cash flow technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Public utilities | Discounted cash flow technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1	0
Public utilities | Discounted cash flow technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	523	422
Public utilities | Internal valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	5,163
Public utilities | Internal valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Public utilities | Internal valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	5,163
Public utilities | Internal valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Sovereign and supranational
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,142	1,382
Sovereign and supranational | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Sovereign and supranational | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	1,097	1,334
Sovereign and supranational | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	45	48
Sovereign and supranational | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	279	1,334
Sovereign and supranational | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Sovereign and supranational | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	279	1,334
Sovereign and supranational | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Sovereign and supranational | Discounted cash flow technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	45	48
Sovereign and supranational | Discounted cash flow technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Sovereign and supranational | Discounted cash flow technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Sovereign and supranational | Discounted cash flow technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	45	48
Sovereign and supranational | Internal valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	818
Sovereign and supranational | Internal valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Sovereign and supranational | Internal valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	818
Sovereign and supranational | Internal valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Banks/financial institutions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	11,742	12,060
Banks/financial institutions | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	11,696	12,036
Banks/financial institutions | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	46	24
Banks/financial institutions | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	5,191	12,036
Banks/financial institutions | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	5,191	12,036
Banks/financial institutions | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions | Consensus pricing valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	46	24
Banks/financial institutions | Consensus pricing valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions | Consensus pricing valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Banks/financial institutions | Consensus pricing valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	46	24
Banks/financial institutions | Internal valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	6,505
Banks/financial institutions | Internal valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Banks/financial institutions | Internal valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	6,505
Banks/financial institutions | Internal valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Other corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	38,068	40,217
Other corporate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Other corporate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	37,762	39,918
Other corporate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	306	299
Other corporate | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	29,601	39,886
Other corporate | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Other corporate | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	29,601	39,886
Other corporate | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Other corporate | Discounted cash flow technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	312	331
Other corporate | Discounted cash flow technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0	0
Other corporate | Discounted cash flow technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	6	32
Other corporate | Discounted cash flow technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	306	$ 299
Other corporate | Internal valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	8,155
Other corporate | Internal valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	0
Other corporate | Internal valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	8,155
Other corporate | Internal valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale, fixed maturity securities	$ 0

XML

FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Securities Carried at Amortized Cost (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	$ 27,748	$ 30,399
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	26,304	28,810
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	1,444	1,589
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Government and agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	26,541	29,070
Government and agencies | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	26,304	28,810
Government and agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	237	260
Government and agencies | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Government and agencies | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	26,541	29,070
Government and agencies | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	26,304	28,810
Government and agencies | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	237	260
Government and agencies | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Municipalities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	453	499
Municipalities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Municipalities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	453	499
Municipalities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Municipalities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	453	499
Municipalities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Municipalities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	453	499
Municipalities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Public utilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	57	61
Public utilities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Public utilities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	57	61
Public utilities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Public utilities | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	57	61
Public utilities | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Public utilities | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	57	61
Public utilities | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Sovereign and supranational
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	667	736
Sovereign and supranational | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Sovereign and supranational | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	667	736
Sovereign and supranational | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Sovereign and supranational | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	322	736
Sovereign and supranational | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Sovereign and supranational | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	322	736
Sovereign and supranational | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Sovereign and supranational | Consensus pricing valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	345
Sovereign and supranational | Consensus pricing valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0
Sovereign and supranational | Consensus pricing valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	345
Sovereign and supranational | Consensus pricing valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0
Other corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	30	33
Other corporate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Other corporate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	30	33
Other corporate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Other corporate | Third party pricing vendor valuation technique
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	30	33
Other corporate | Third party pricing vendor valuation technique | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	0	0
Other corporate | Third party pricing vendor valuation technique | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	30	33
Other corporate | Third party pricing vendor valuation technique | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Held to maturity, fixed maturity securities, fair value	$ 0	$ 0

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FAIR VALUE MEASUREMENTS - Changes in Investments and Derivatives Carried at Fair Value Classified as Level 3 (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 1,095	$ 695	$ 1,021	$ 810
Net investment gains (losses) included in earnings	(56)	23	(135)	(184)
Unrealized gains (losses) included in other comprehensive income (loss)	(14)	44	(42)	17
Purchases	109	39	283	155
Issuances	0	0	17	0
Sales	(8)	(5)	(31)	(6)
Settlements	(8)	(2)	(35)	(7)
Transfers into Level 3	0	0	55	24
Transfers out of Level 3	(44)	0	(59)	(15)
Balance, end of period	1,074	794	1,074	794
Change in unrealized gains (losses) still held	(72)	23	(178)	(184)
Foreign currency swaps
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	(200)	(168)	(98)	43
Net investment gains (losses) included in earnings	(57)	23	(158)	(184)
Unrealized gains or losses included in other comprehensive income (loss)	0	2	(1)	(2)
Purchases	0	0	0	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Balance, end of period	(257)	(143)	(257)	(143)
Changes in unrealized gain (losses) still held	(57)	23	(158)	(184)
Fixed maturity securities | Mortgage- and asset-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	258	188	224	178
Net investment gains (losses) included in earnings	0	0	0	0
Unrealized gains (losses) included in other comprehensive income (loss)	(4)	3	(19)	5
Purchases	35	0	99	0
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	(1)
Transfers into Level 3	0	0	0	9
Transfers out of Level 3	(39)	0	(54)	0
Balance, end of period	250	191	250	191
Change in unrealized gains (losses) still held	(4)	0	(19)	0
Fixed maturity securities | Public utilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	480	322	422	224
Net investment gains (losses) included in earnings	0	0	0	0
Unrealized gains (losses) included in other comprehensive income (loss)	(3)	15	(13)	6
Purchases	54	33	132	129
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	(8)	(2)	(18)	(6)
Transfers into Level 3	0	0	0	15
Transfers out of Level 3	0	0	0	0
Balance, end of period	523	368	523	368
Change in unrealized gains (losses) still held	(3)	0	(13)	0
Fixed maturity securities | Sovereign and supranational
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	45		48
Net investment gains (losses) included in earnings	0		0
Unrealized gains (losses) included in other comprehensive income (loss)	0		(3)
Purchases	0		0
Issuances	0		0
Sales	0		(23)
Settlements	0		0
Transfers into Level 3	0		23
Transfers out of Level 3	0		0
Balance, end of period	45		45
Change in unrealized gains (losses) still held	0		(3)
Fixed maturity securities | Banks/financial institutions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	38	24	24	23
Net investment gains (losses) included in earnings	0	0	0	0
Unrealized gains (losses) included in other comprehensive income (loss)	0	0	(1)	0
Purchases	8	0	23	1
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Balance, end of period	46	24	46	24
Change in unrealized gains (losses) still held	0	0	(1)	0
Fixed maturity securities | Other corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	316	243	299	262
Net investment gains (losses) included in earnings	2	0	2	0
Unrealized gains (losses) included in other comprehensive income (loss)	(7)	24	(5)	8
Purchases	0	1	0	13
Issuances	0	0	0	0
Sales	0	0	0	0
Settlements	0	0	(17)	0
Transfers into Level 3	0	0	32	0
Transfers out of Level 3	(5)	0	(5)	(15)
Balance, end of period	306	268	306	268
Change in unrealized gains (losses) still held	(7)	0	(5)	0
Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	158	86	102	80
Net investment gains (losses) included in earnings	(1)	0	21	0
Unrealized gains (losses) included in other comprehensive income (loss)	0	0	0	0
Purchases	12	5	29	12
Issuances	0	0	17	0
Sales	(8)	(5)	(8)	(6)
Settlements	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Balance, end of period	161	86	161	86
Change in unrealized gains (losses) still held	$ (1)	$ 0	$ 21	$ 0

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FAIR VALUE MEASUREMENTS - Fair Value Measurement Inputs and Valuation Techniques (Details) $ in Millions		Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		$ 100,722	$ 105,882
Equity securities		1,461	1,283
Asset derivatives		745	583
Liability derivatives		1,270	697
Assets, fair value		110,969	114,028
Liabilities, fair value		1,270	697
Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		1,170	1,017
Equity securities		161	102
Asset derivatives		99	133
Assets, fair value		1,430	1,252
Liabilities, fair value		356	231
Net asset value valuation technique
Fair Value Measurement Inputs and Valuation Techniques
Equity securities		161	102
Net asset value valuation technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Equity securities		161	102
Foreign currency swaps
Fair Value Measurement Inputs and Valuation Techniques
Asset derivatives		151	180
Liability derivatives		378	312
Foreign currency swaps | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Asset derivatives		99	133
Liability derivatives		356	231
Foreign currency swaps | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Discounted cash flow technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Asset derivatives		34	69
Liability derivatives		167	160
Foreign currency swaps | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Discounted cash flow technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Asset derivatives		65	64
Liability derivatives		$ 189	$ 71
Foreign currency swaps | Credit Spread | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input		0.0023	0.0022
Derivative liability, measurement input		0.0023	0.0041
Foreign currency swaps | Credit Spread | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input		0.0124	0.0128
Derivative liability, measurement input		0.0182	0.0140
Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		$ 40,568	$ 41,611
Equity securities		$ 667	$ 603
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[1]	0.0151	0.0093
Derivative liability, measurement input	[1]	0.0151	0.0093
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[1]	0.0179	0.0140
Derivative liability, measurement input	[1]	0.0179	0.0112
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Lower Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[1]	0.0151	0.0093
Derivative liability, measurement input	[1]	0.0151	0.0093
Dollar-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Upper Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[1]	0.0179	0.0140
Derivative liability, measurement input	[1]	0.0179	0.0112
Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		$ 60,154	$ 64,271
Equity securities		$ 753	$ 680
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Lower Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[2]	0.0011	0.0005
Derivative liability, measurement input	[2]	0.0011	0.0005
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY) and CDS Spreads | Upper Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[2]	0.0053	0.0043
Derivative liability, measurement input	[2]	0.0053	0.0035
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Lower Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[2]	0.0011	0.0005
Derivative liability, measurement input	[2]	0.0011	0.0005
Yen-denominated | Foreign currency swaps | Discount Rate | Fair Value, Unobservable Input, Interest Rates (USD) and Interest Rates (JPY) | Upper Limit | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Derivative asset, measurement input	[2]	0.0053	0.0043
Derivative liability, measurement input	[2]	0.0053	0.0035
Mortgage- and asset-backed securities
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		$ 1,292	$ 1,038
Mortgage- and asset-backed securities | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		250	224
Mortgage- and asset-backed securities | Consensus pricing valuation technique
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		271	674
Mortgage- and asset-backed securities | Consensus pricing valuation technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		250	224
Mortgage- and asset-backed securities | Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		962	670
Mortgage- and asset-backed securities | Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		330	368
Public utilities
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		10,315	10,817
Public utilities | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		523	422
Public utilities | Discounted cash flow technique
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		524	422
Public utilities | Discounted cash flow technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		523	422
Public utilities | Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		4,803	4,945
Public utilities | Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		5,512	5,872
Sovereign and supranational
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		1,142	1,382
Sovereign and supranational | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		45	48
Sovereign and supranational | Discounted cash flow technique
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		45	48
Sovereign and supranational | Discounted cash flow technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		45	48
Sovereign and supranational | Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		280	293
Sovereign and supranational | Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		862	1,089
Banks/financial institutions
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		11,742	12,060
Banks/financial institutions | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		46	24
Banks/financial institutions | Consensus pricing valuation technique
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		46	24
Banks/financial institutions | Consensus pricing valuation technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		46	24
Banks/financial institutions | Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		3,825	3,724
Banks/financial institutions | Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		7,917	8,336
Other corporate
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		38,068	40,217
Other corporate | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		306	299
Other corporate | Discounted cash flow technique
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		312	331
Other corporate | Discounted cash flow technique | Level 3
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		306	299
Other corporate | Dollar-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		29,138	30,393
Other corporate | Yen-denominated
Fair Value Measurement Inputs and Valuation Techniques
Available for sale, fixed maturity securities		$ 8,930	$ 9,824

[1] Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps

[2] Inputs derived from Japan long-term rates to accommodate long maturity nature of the Company's swaps

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POLICY LIABILITIES - Changes in Liability for Unpaid Policy Claims (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Liability for Unpaid Claims and Claims Expenses
Net balance, beginning of period			$ 5,187
Less claims paid during the period on claims incurred during:
Net balance, end of period	$ 4,909		4,909
Total liability for unpaid policy claims	4,909	$ 4,976	4,909	$ 4,976
Health insurance
Liability for Unpaid Claims and Claims Expenses
Unpaid supplemental health claims, beginning of period	4,162	4,041	4,389	3,968
Less reinsurance recoverables	37	37	39	31
Net balance, beginning of period	4,125	4,004	4,350	3,937
Add claims incurred during the period related to:
Current year	1,720	1,780	5,302	5,354
Prior years	(215)	(105)	(739)	(408)
Total incurred	1,505	1,675	4,563	4,946
Less claims paid during the period on claims incurred during:
Current year	1,279	1,295	2,947	2,971
Prior years	219	249	1,676	1,811
Total paid	1,498	1,544	4,623	4,782
Effect of foreign exchange rate changes on unpaid claims	(29)	42	(187)	76
Net balance, end of period	4,103	4,177	4,103	4,177
Add reinsurance recoverables	39	40	39	40
Total liability for unpaid policy claims	4,142	4,217	4,142	4,217
Life insurance
Less claims paid during the period on claims incurred during:
Total liability for unpaid policy claims	$ 767	$ 759	$ 767	$ 759

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POLICY LIABILITIES - Additional Information (Details) - Health insurance - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Liability for Future Policy Benefit, by Product Segment [Line Items]
Prior years claims and claims adjustment expense	$ (215)	$ (105)	$ (739)	$ (408)
Aflac Japan
Liability for Future Policy Benefit, by Product Segment [Line Items]
Prior years claims and claims adjustment expense			$ (369)
Percentage of total prior year claims and claims adjustment expense			49.90%
Liability for unpaid claims and claims adjustment expense, foreign currency translation gain (loss), prior year claims adjustment expense			$ (11)
Prior year claims and claims adjustment expense excluding effect of foreign currency			$ (380)
Percentage of total prior year claims and claims adjustment expense excluding effect of foreign currency			51.00%
Aflac U.S.
Liability for Future Policy Benefit, by Product Segment [Line Items]
Prior years claims and claims adjustment expense			$ (370)
Percentage of total prior year claims and claims adjustment expense			50.10%
Prior Year Claims And Claims Adjustment Expense From Refinement of Estimates			$ (143)

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REINSURANCE - Additional Information (Details) $ in Millions, ¥ in Billions	9 Months Ended
	Sep. 30, 2021 JPY (¥)	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Effects of Reinsurance [Line Items]
Percent change in spot yen/dollar exchange rate		(7.50%)
Percent change in ceded reserves		(7.20%)
Aflac Japan
Effects of Reinsurance [Line Items]
Committed reinsurance facility | ¥	¥ 120
Aflac Japan | Closed Block
Effects of Reinsurance [Line Items]
Reinsurance deferred profit liability		$ 900	$ 1,000
Reinsurance recoverable		$ 962	$ 1,000

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REINSURANCE - Effect of Reinsurance on Premiums and Benefits and Claims (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Effects of Reinsurance [Line Items]
Direct premium income	$ 4,426	$ 4,711	$ 13,567	$ 14,236
Net premium income	4,372	4,623	13,406	13,969
Direct benefits and claims	2,649	3,051	8,112	9,054
Benefits and claims, net	2,609	2,985	7,996	8,822
Intercompany eliminations
Effects of Reinsurance [Line Items]
Ceded benefits and claims	8	10	24	29
Assumed benefits and claims from other companies	(8)	(10)	(24)	(29)
All other
Effects of Reinsurance [Line Items]
Ceded premiums	(19)	(22)	(54)	(69)
Assumed premiums earned	27	1	84	5
Ceded benefits and claims	(9)	(10)	(25)	(54)
Assumed benefits and claims from other companies	21	0	71	3
Aflac Japan
Effects of Reinsurance [Line Items]
Net premium income	2,934	3,168	9,045	9,476
Aflac Japan | Closed Block
Effects of Reinsurance [Line Items]
Ceded premiums	(107)	(116)	(329)	(349)
Assumed premiums earned	45	49	138	146
Ceded benefits and claims	(94)	(103)	(288)	(314)
Assumed benefits and claims from other companies	$ 42	$ 47	$ 126	$ 133

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NOTES PAYABLE AND LEASE OBLIGATIONS - Additional Information (Details) $ in Millions, ¥ in Billions	1 Months Ended
	May 31, 2021 USD ($)	Mar. 31, 2021 USD ($)	Sep. 30, 2021 JPY (¥)	Sep. 30, 2021 USD ($)	Apr. 30, 2021 JPY (¥) series	Dec. 31, 2020
Debt Instrument [Line Items]
Number of series of senior notes issued through a U.S. public debt offering | series					5
Senior notes
Debt Instrument [Line Items]
Debt instrument, principal amount					¥ 82.0
.633% senior notes due April 2031
Debt Instrument [Line Items]
Debt instrument, principal amount			¥ 30.0		¥ 30.0
Debt instrument, interest rate			0.633%	0.633%	0.633%
.844% senior notes due April 2033
Debt Instrument [Line Items]
Debt instrument, principal amount			¥ 12.0		¥ 12.0
Debt instrument, interest rate			0.844%	0.844%	0.844%
1.039% senior notes due April 2036
Debt Instrument [Line Items]
Debt instrument, principal amount			¥ 10.0		¥ 10.0
Debt instrument, interest rate			1.039%	1.039%	1.039%
1.264% senior notes due April 2041
Debt Instrument [Line Items]
Debt instrument, principal amount			¥ 10.0		¥ 10.0
Debt instrument, interest rate			1.264%	1.264%	1.264%
1.560% senior notes due April 2051
Debt Instrument [Line Items]
Debt instrument, principal amount			¥ 20.0		¥ 20.0
Debt instrument, interest rate			1.56%	1.56%	1.56%
3.625% senior notes paid May 2021
Debt Instrument [Line Items]
Debt instrument, interest rate	3.625%		3.625%	3.625%		3.625%
Repayments of debt | $	$ 700
1.125% senior sustainability notes due March 2026
Debt Instrument [Line Items]
Debt instrument, principal amount | $		$ 400
Debt instrument, interest rate		1.125%	1.125%	1.125%		1.125%
Debt instrument, redemption, description		These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 10 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date.
Notes payable
Debt Instrument [Line Items]
Debt instrument, debt default, amount | $				$ 0
Lines of credit
Debt Instrument [Line Items]
Debt instrument, debt default, amount | $				$ 0

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NOTES PAYABLE AND LEASE OBLIGATIONS - Summary of Notes Payable (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Notes payable and lease obligations	$ 8,066	$ 7,899
Finance lease obligations	13	11
Operating lease obligations	116	143
3.625% senior notes paid May 2021
Debt Instrument [Line Items]
Notes payable and lease obligations	0	698
3.625% senior notes due November 2024
Debt Instrument [Line Items]
Notes payable and lease obligations	748	747
3.25% senior notes due March 2025
Debt Instrument [Line Items]
Notes payable and lease obligations	448	448
1.125% senior sustainability notes due March 2026
Debt Instrument [Line Items]
Notes payable and lease obligations	397	0
2.875% senior notes due October 2026
Debt Instrument [Line Items]
Notes payable and lease obligations	298	298
3.60% senior notes due April 2030
Debt Instrument [Line Items]
Notes payable and lease obligations	991	990
6.90% senior notes due December 2039
Debt Instrument [Line Items]
Notes payable and lease obligations	221	221
6.45% senior notes due August 2040
Debt Instrument [Line Items]
Notes payable and lease obligations	255	254
4.00% senior notes due October 2046
Debt Instrument [Line Items]
Notes payable and lease obligations	394	394
4.750% senior notes due January 2049
Debt Instrument [Line Items]
Notes payable and lease obligations	541	541
.300% senior notes due September 2025
Debt Instrument [Line Items]
Notes payable and lease obligations	110	119
.932% senior notes due January 2027
Debt Instrument [Line Items]
Notes payable and lease obligations	534	578
.500% senior notes due December 2029
Debt Instrument [Line Items]
Notes payable and lease obligations	112	121
.550% senior notes due March 2030
Debt Instrument [Line Items]
Notes payable and lease obligations	118	127
1.159% senior notes due October 2030
Debt Instrument [Line Items]
Notes payable and lease obligations	261	282
.633% senior notes due April 2031
Debt Instrument [Line Items]
Notes payable and lease obligations	266	0
.843% senior notes due December 2031
Debt Instrument [Line Items]
Notes payable and lease obligations	83	90
.750% senior notes due March 2032
Debt Instrument [Line Items]
Notes payable and lease obligations	183	198
.844% senior notes due April 2033
Debt Instrument [Line Items]
Notes payable and lease obligations	107	0
1.488% senior notes due October 2033
Debt Instrument [Line Items]
Notes payable and lease obligations	135	146
.934% senior notes due December 2034
Debt Instrument [Line Items]
Notes payable and lease obligations	87	94
.830% senior notes due March 2035
Debt Instrument [Line Items]
Notes payable and lease obligations	94	101
1.039% senior notes due April 2036
Debt Instrument [Line Items]
Notes payable and lease obligations	88	0
1.750% senior notes due October 2038
Debt Instrument [Line Items]
Notes payable and lease obligations	79	85
1.122% senior notes due December 2039
Debt Instrument [Line Items]
Notes payable and lease obligations	56	61
1.264% senior notes due April 2041
Debt Instrument [Line Items]
Notes payable and lease obligations	89	0
2.108% subordinated notes due October 2047
Debt Instrument [Line Items]
Notes payable and lease obligations	532	575
.963% subordinated bonds due April 2049
Debt Instrument [Line Items]
Notes payable and lease obligations	267	289
1.560% senior notes due April 2051
Debt Instrument [Line Items]
Notes payable and lease obligations	177	0
Yen-denominated loan variable interest rate due September 2026
Debt Instrument [Line Items]
Notes payable and lease obligations	44	48
Yen-denominated loan variable interest rate due September 2029
Debt Instrument [Line Items]
Notes payable and lease obligations	$ 222	$ 240

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NOTES PAYABLE AND LEASE OBLIGATIONS - Summary of Notes Payable Parenthetical (Details) $ in Millions, ¥ in Billions	Sep. 30, 2021 JPY (¥)	May 31, 2021	Apr. 30, 2021 JPY (¥)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 JPY (¥)
3.625% senior notes paid May 2021
Debt Instrument [Line Items]
Debt instrument, interest rate	3.625%	3.625%			3.625%
3.625% senior notes due November 2024
Debt Instrument [Line Items]
Debt instrument, interest rate	3.625%				3.625%
3.25% senior notes due March 2025
Debt Instrument [Line Items]
Debt instrument, interest rate	3.25%				3.25%
1.125% senior sustainability notes due March 2026
Debt Instrument [Line Items]
Debt instrument, interest rate	1.125%			1.125%	1.125%
Debt instrument, principal amount | $				$ 400
2.875% senior notes due October 2026
Debt Instrument [Line Items]
Debt instrument, interest rate	2.875%				2.875%
3.60% senior notes due April 2030
Debt Instrument [Line Items]
Debt instrument, interest rate	3.60%				3.60%
6.90% senior notes due December 2039
Debt Instrument [Line Items]
Debt instrument, interest rate	6.90%				6.90%
6.45% senior notes due August 2040
Debt Instrument [Line Items]
Debt instrument, interest rate	6.45%				6.45%
4.00% senior notes due October 2046
Debt Instrument [Line Items]
Debt instrument, interest rate	4.00%				4.00%
4.750% senior notes due January 2049
Debt Instrument [Line Items]
Debt instrument, interest rate	4.75%				4.75%
.300% senior notes due September 2025
Debt Instrument [Line Items]
Debt instrument, interest rate	0.30%				0.30%
Debt instrument, principal amount	¥ 12.4				¥ 12.4
.932% senior notes due January 2027
Debt Instrument [Line Items]
Debt instrument, interest rate	0.932%				0.932%
Debt instrument, principal amount	¥ 60.0				¥ 60.0
.500% senior notes due December 2029
Debt Instrument [Line Items]
Debt instrument, interest rate	0.50%				0.50%
Debt instrument, principal amount	¥ 12.6				¥ 12.6
.550% senior notes due March 2030
Debt Instrument [Line Items]
Debt instrument, interest rate	0.55%				0.55%
Debt instrument, principal amount	¥ 13.3				¥ 13.3
1.159% senior notes due October 2030
Debt Instrument [Line Items]
Debt instrument, interest rate	1.159%				1.159%
Debt instrument, principal amount	¥ 29.3				¥ 29.3
.633% senior notes due April 2031
Debt Instrument [Line Items]
Debt instrument, interest rate	0.633%		0.633%
Debt instrument, principal amount	¥ 30.0		¥ 30.0
.843% senior notes due December 2031
Debt Instrument [Line Items]
Debt instrument, interest rate	0.843%				0.843%
Debt instrument, principal amount	¥ 9.3				¥ 9.3
.750% senior notes due March 2032
Debt Instrument [Line Items]
Debt instrument, interest rate	0.75%				0.75%
Debt instrument, principal amount	¥ 20.7				¥ 20.7
.844% senior notes due April 2033
Debt Instrument [Line Items]
Debt instrument, interest rate	0.844%		0.844%
Debt instrument, principal amount	¥ 12.0		¥ 12.0
1.488% senior notes due October 2033
Debt Instrument [Line Items]
Debt instrument, interest rate	1.488%				1.488%
Debt instrument, principal amount	¥ 15.2				¥ 15.2
.934% senior notes due December 2034
Debt Instrument [Line Items]
Debt instrument, interest rate	0.934%				0.934%
Debt instrument, principal amount	¥ 9.8				¥ 9.8
.830% senior notes due March 2035
Debt Instrument [Line Items]
Debt instrument, interest rate	0.83%				0.83%
Debt instrument, principal amount	¥ 10.6				¥ 10.6
1.039% senior notes due April 2036
Debt Instrument [Line Items]
Debt instrument, interest rate	1.039%		1.039%
Debt instrument, principal amount	¥ 10.0		¥ 10.0
1.750% senior notes due October 2038
Debt Instrument [Line Items]
Debt instrument, interest rate	1.75%				1.75%
Debt instrument, principal amount	¥ 8.9				¥ 8.9
1.122% senior notes due December 2039
Debt Instrument [Line Items]
Debt instrument, interest rate	1.122%				1.122%
Debt instrument, principal amount	¥ 6.3				¥ 6.3
1.264% senior notes due April 2041
Debt Instrument [Line Items]
Debt instrument, interest rate	1.264%		1.264%
Debt instrument, principal amount	¥ 10.0		¥ 10.0
2.108% subordinated notes due October 2047
Debt Instrument [Line Items]
Debt instrument, interest rate	2.108%				2.108%
Debt instrument, principal amount	¥ 60.0				¥ 60.0
.963% subordinated bonds due April 2049
Debt Instrument [Line Items]
Debt instrument, interest rate	0.963%				0.963%
Debt instrument, principal amount	¥ 30.0				¥ 30.0
1.560% senior notes due April 2051
Debt Instrument [Line Items]
Debt instrument, interest rate	1.56%		1.56%
Debt instrument, principal amount	¥ 20.0		¥ 20.0
Yen-denominated loan variable interest rate due September 2026
Debt Instrument [Line Items]
Debt instrument, interest rate	0.41%				0.43%
Debt instrument, principal amount	¥ 5.0				¥ 5.0
Yen-denominated loan variable interest rate due September 2029
Debt Instrument [Line Items]
Debt instrument, interest rate	0.56%				0.58%
Debt instrument, principal amount	¥ 25.0				¥ 25.0

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NOTES PAYABLE AND LEASE OBLIGATIONS - Summary of Lines of Credit (Details) - 9 months ended Sep. 30, 2021 ¥ in Millions, $ in Millions	USD ($)	JPY (¥)
$100 million line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity	$ 100.0
Line of credit facility, amount outstanding	$ 0.0
Line of credit facility, interest rate description	The rate quoted by the bank and agreed upon at the time of borrowing
100.0 billion yen line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	5 years
Line of credit facility, maximum borrowing capacity | ¥		¥ 100,000
Line of credit facility, amount outstanding | ¥		0
Line of credit facility, interest rate description	A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period
$1 billion line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	5 years
Line of credit facility, maximum borrowing capacity	$ 1,000.0
Line of credit facility, amount outstanding	$ 0.0
Line of credit facility, interest rate description	A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) for U.S. dollar denominated borrowings or TIBOR for Japanese yen denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin
$50 million line of credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 50.0
Line of credit facility, amount outstanding	$ 0.0
Line of credit facility, interest rate description	A rate per annum equal to, at the Company's option, either (a) a rate determined by reference to LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (a) the lender's U.S. dollar short-term commercial loan rate, (b) the federal funds rate plus 1/2 of 1% and (c) one-month LIBOR plus 1%. LIBOR is subject to replacement with Secured Overnight Financing Rate (SOFR) under certain circumstances
$250 million line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity	$ 250.0
Line of credit facility, amount outstanding	$ 0.0
Line of credit facility, interest rate description	USD three-month LIBOR plus 75 basis points per annum
Debt instrument, term	3 months
50.0 billion yen line of credit expiring April 2022
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity | ¥		50,000
Line of credit facility, amount outstanding | ¥		0
Line of credit facility, interest rate description	Three-month TIBOR plus 70 basis points per annum
Debt instrument, term	3 months
50.0 billion yen line of credit expiring November 2021
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity | ¥		50,000
Line of credit facility, amount outstanding | ¥		0
Line of credit facility, interest rate description	Three-month TIBOR plus 70 basis points per annum
Debt instrument, term	3 months
$25 million line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity	$ 25.0
Line of credit facility, amount outstanding	$ 0.0
Line of credit facility, interest rate description	USD three-month LIBOR plus 75 basis points per annum
Debt instrument, term	3 months
$15 million line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity	$ 15.0
Line of credit facility, amount outstanding	$ 0.0
Line of credit facility, interest rate description	USD three-month LIBOR plus 75 basis points per annum
Debt instrument, term	3 months
$300 thousand line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity	$ 0.3
Line of credit facility, amount outstanding	$ 0.0
Line of credit facility, interest rate description	USD three-month LIBOR plus 75 basis points per annum
Debt instrument, term	3 months
500 million yen line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity | ¥		500
Line of credit facility, amount outstanding | ¥		350
Line of credit facility, interest rate description	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period
900 million yen line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity | ¥		900
Line of credit facility, amount outstanding | ¥		0
Line of credit facility, interest rate description	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period
600 million yen line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity | ¥		600
Line of credit facility, amount outstanding | ¥		¥ 0
Line of credit facility, interest rate description	A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period
$30 million line of credit
Line of Credit Facility [Line Items]
Line of credit facility term	364 days
Line of credit facility, maximum borrowing capacity	$ 30.0
Line of credit facility, amount outstanding	$ 0.0
Line of credit facility, interest rate description	USD three-month LIBOR plus 75 basis points per annum
Lower Limit | 100.0 billion yen line of credit
Line of Credit Facility [Line Items]
Line of credit facility, commitment fee percentage	0.30%
Lower Limit | $1 billion line of credit
Line of Credit Facility [Line Items]
Line of credit facility, commitment fee percentage	0.085%
Upper Limit | $100 million line of credit
Line of Credit Facility [Line Items]
Debt instrument, term	3 months
Upper Limit | 100.0 billion yen line of credit
Line of Credit Facility [Line Items]
Line of credit facility, commitment fee percentage	0.50%
Upper Limit | $1 billion line of credit
Line of Credit Facility [Line Items]
Line of credit facility, commitment fee percentage	0.225%
Upper Limit | $50 million line of credit
Line of Credit Facility [Line Items]
Debt instrument, term	3 months

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SHAREHOLDERS' EQUITY - Reconciliation of Number of Shares of Common Stock (Detail) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Common Stock Issued [Roll Forward]
Balance, beginning of period	1,351,018	1,349,309
Exercise of stock options and issuance of restricted shares	1,544	1,546
Balance, end of period	1,352,562	1,350,855
Treasury Stock [Roll Forward]
Balance, beginning of period	658,564	622,516
Balance, end of period	689,745	647,281
Shares outstanding, end of period	662,817	703,574
Treasury Stock
Treasury Stock [Roll Forward]
Stock acquired under share repurchase program, shares	32,186	26,108
Other purchases	419	541
Shares issued to AFL Stock Plan	(967)	(1,584)
Exercise of stock options	(240)	(49)
Other dispositions	(217)	(251)

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SHAREHOLDERS' EQUITY - Anti-Dilutive Share-Based Awards Excluded from Calculation of Diluted Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Stockholders' Equity Note [Abstract]
Anti-dilutive share-based awards	0	592	1	857

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SHAREHOLDERS' EQUITY - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Stockholders Equity Note [Line Items]
Common stock, share repurchase, dollar amount	$ 1,676	$ 1,037
Remaining common stock available for purchase under share repurchase authorizations	67.0
Share Repurchase Program
Stockholders Equity Note [Line Items]
Stock acquired under share repurchase program, shares	32.2	26.1
Common stock, share repurchase, dollar amount	$ 1,700	$ 1,000

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SHAREHOLDERS' EQUITY - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period	$ 8,019	$ 6,750	$ 8,934	$ 6,615
Other comprehensive income (loss) before reclassifications net of tax	(355)	1,170	(1,298)	333
Amounts reclassified from accumulated other comprehensive income net of tax	(2)	(3)	26	121
Other comprehensive income (loss), net of tax	(357)	1,167	(1,272)	454
Balance, end of period	7,662	7,917	7,662	7,917
Unrealized foreign currency translation gains (losses)
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period	(1,661)	(1,469)	(1,109)	(1,623)
Other comprehensive income (loss) before reclassifications net of tax	(99)	179	(651)	333
Amounts reclassified from accumulated other comprehensive income net of tax	0	0	0	0
Other comprehensive income (loss), net of tax	(99)	179	(651)	333
Balance, end of period	(1,760)	(1,290)	(1,760)	(1,290)
Unrealized gains (losses) on fixed maturity securities
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period	9,992	8,532	10,361	8,548
Other comprehensive income (loss) before reclassifications net of tax	(251)	995	(632)	20
Amounts reclassified from accumulated other comprehensive income net of tax	(10)	(7)	2	104
Other comprehensive income (loss), net of tax	(261)	988	(630)	124
Balance, end of period	9,731	9,520	9,731	9,520
Unrealized gains (losses) on derivatives
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period	(33)	(36)	(34)	(33)
Other comprehensive income (loss) before reclassifications net of tax	0	1	0	(2)
Amounts reclassified from accumulated other comprehensive income net of tax	2	0	3	0
Other comprehensive income (loss), net of tax	2	1	3	(2)
Balance, end of period	(31)	(35)	(31)	(35)
Pension liability adjustment
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period	(279)	(277)	(284)	(277)
Other comprehensive income (loss) before reclassifications net of tax	(5)	(5)	(15)	(18)
Amounts reclassified from accumulated other comprehensive income net of tax	6	4	21	17
Other comprehensive income (loss), net of tax	1	(1)	6	(1)
Balance, end of period	$ (278)	$ (278)	$ (278)	(278)
Cumulative effect, period of adoption, adjustment | Accounting Standards Update 2019-04
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period				848
Cumulative effect, period of adoption, adjustment | Unrealized foreign currency translation gains (losses) | Accounting Standards Update 2019-04
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period				0
Cumulative effect, period of adoption, adjustment | Unrealized gains (losses) on fixed maturity securities | Accounting Standards Update 2019-04
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period				848
Cumulative effect, period of adoption, adjustment | Unrealized gains (losses) on derivatives | Accounting Standards Update 2019-04
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period				0
Cumulative effect, period of adoption, adjustment | Pension liability adjustment | Accounting Standards Update 2019-04
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period				0
Cumulative effect, period of adoption, adjusted balance
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period				7,463
Cumulative effect, period of adoption, adjusted balance | Unrealized foreign currency translation gains (losses)
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period				(1,623)
Cumulative effect, period of adoption, adjusted balance | Unrealized gains (losses) on fixed maturity securities
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period				9,396
Cumulative effect, period of adoption, adjusted balance | Unrealized gains (losses) on derivatives
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period				(33)
Cumulative effect, period of adoption, adjusted balance | Pension liability adjustment
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning of period				$ (277)

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SHAREHOLDERS' EQUITY - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions		3 Months Ended								9 Months Ended
		Sep. 30, 2021		Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020		Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021		Sep. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)		$ (13)				$ (13)				$ 2		$ 132
Income tax (expense) or benefit		(225)				1,303				(804)		884
Net of tax		$ 888		$ 1,105	$ 1,293	$ 2,456		$ 805	$ 566	$ 3,286		$ 3,826
U.S. federal statutory income tax rate		21.00%				21.00%				21.00%		21.00%
Reclassification Out Of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains (losses) on derivatives during period		$ (1)								$ (3)
Net of tax		2				$ 3				(26)		$ (121)
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized gains (losses) on available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net investment gains (losses)		13				13				(2)		(132)
Income tax (expense) or benefit		(3)	[1]			(6)	[2]			0	[1]	28	[1]
Net of tax		10				7				(2)		(104)
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains (losses) on derivatives during period		(2)								(4)
Income tax (expense) or benefit	[1]	0								1
Net of tax		(2)								(3)
Reclassification Out Of Accumulated Other Comprehensive Income | Pension liability adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Acquisition and operating expenses, actuarial gains (losses)	[3]	(8)				(7)				(27)		(22)
Acquisition and operating expenses, prior service (cost) credit	[3]	0				0				0		0
Income tax (expense) or benefit		2	[1]			3	[2]			6	[1]	5	[1]
Net of tax		$ (6)				$ (4)				$ (21)		$ (17)

[1] Based on 21% tax rate

[2] Based on 21% tax rate, with a cumulative adjustment to the first six months of 2020 due to the effects of Final and Proposed Regulations released on September 29, 2020 by the U.S. Treasury and Internal Revenue Service and addressing, among other items, the allocation of insurance expenses in the calculation of the foreign tax credit limitation. See Note 10 of the Notes to the Consolidated Financial Statements in the Company's 2020 Annual Report on Form 10-K.

[3] These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 11 for additional details).

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SHARE-BASED COMPENSATION - Additional Information (Detail) - USD ($) shares in Thousands, $ in Millions	1 Months Ended	9 Months Ended
	Feb. 28, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from stock options exercised		$ 20	$ 9
Tax benefit from exercise of stock options		$ 16	$ 19
Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, maximum number of shares issuable		75,000
Share-based compensation arrangement by share-based payment award, maximum number of shares issuable other than options and stock appreciation rights		38,000
Shares available for future grants under the long-term incentive plan		36,700
Long-term incentive plan awards, term (in years)		10 years
Long-term incentive plan awards, vesting period		3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized, restricted stock awards		$ 45
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number, shares		2,615		2,580
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition		1 year 8 months 12 days
Restricted stock awards, grants in period		1,454
Performance based Vesting Condition | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized, restricted stock awards		$ 19
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number, shares		1,700
Restricted stock awards, grants in period	474

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SHARE-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Detail) $ / shares in Units, shares in Thousands, $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares
Share-based Payment Arrangement [Abstract]
Options Outstanding - Stock Option Shares | shares	2,317
Options Outstanding - Weighted-Average Remaining Term (Yrs)	3 years 7 months 6 days
Options Outstanding - Aggregate Intrinsic Value | $	$ 49
Options Outstanding - Weighted-Average Exercise Price Per Share | $ / shares	$ 30.87
Options Exercisable - Stock Option Shares | shares	2,317
Options Exercisable - Weighted-Average Remaining Term (Yrs.)	3 years 7 months 6 days
Options Exercisable - Aggregate Intrinsic Value | $	$ 49
Options Exercisable - Weighted-Average Exercise Price Per Share | $ / shares	$ 30.87

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SHARE-BASED COMPENSATION - Restricted Stock Activity (Details) - Restricted Stock shares in Thousands	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Shares
Beginning Balance | shares	2,580
Granted | shares	1,454
Canceled | shares	(102)
Vested | shares	(1,317)
Ending Balance | shares	2,615
Weighted-Average Grant-Date Fair Value Per Share
Beginning Balance | $ / shares	$ 48.57
Granted | $ / shares	47.70
Cancelled | $ / shares	48.89
Vested | $ / shares	45.91
Ending Balance | $ / shares	$ 49.20

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BENEFIT PLANS - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended		6 Months Ended	9 Months Ended
	Jan. 01, 2021	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2014	Sep. 30, 2021	Sep. 30, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Amount of years active employees have left to meet rule of 80 in order to be eligible for postretirement medical benefits				5 years
Amount of years left to meet 15 year service requirement for active employees age 55 or older to be eligible for postretirement medical benefits				5 years
Net periodic (benefit) cost, excluding service cost		$ 4	$ 6		$ 18	$ 18
Lower Limit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Health care plan, retirement age and years of service combined years for eligibility (rule of 80)				80 years
Health care plan, retirement age for eligibility, (in years)				55 years
Health care plan, number of years of service for eligibility				15 years
Upper Limit
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Percentage of matching contributions by the Company to employee's contributions to 401(k) plan	4.00%
Japan | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions					29
U.S. | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions					$ 0

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BENEFIT PLANS - Net Periodic (Benefit) Cost Included in Acquisition and Operating Expenses (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other Postretirement Benefits Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	0	0	1	1
Expected return on plan assets	0	0	0	0
Amortization of net actuarial loss	0	0	2	1
Net periodic (benefit) cost	0	0	3	2
Japan | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	6	6	18	18
Interest cost	1	1	3	3
Expected return on plan assets	(2)	(2)	(6)	(6)
Amortization of net actuarial loss	1	1	2	3
Net periodic (benefit) cost	6	6	17	18
U.S. | Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	7	7	21	21
Interest cost	8	9	24	25
Expected return on plan assets	(11)	(9)	(31)	(27)
Amortization of net actuarial loss	7	6	23	18
Net periodic (benefit) cost	$ 11	$ 13	$ 37	$ 37

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COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Details) $ in Millions, ¥ in Billions	3 Months Ended
	Sep. 30, 2021 JPY (¥)	Sep. 30, 2021 USD ($)	Mar. 31, 2017 USD ($)
Commitments and Contingencies Disclosure [Line Items]
Loss contingency accrual, insurance-related assessment, discount rate			4.25%
Loss contingency, discounted amount of insurance-related assessment liability			$ 62
Loss contingency, undiscounted amount of insurance-related assessment liability			94
Loss contingency, insurance-related assessment, discounted amount of premium tax offset			48
Loss contingency, insurance-related assessment, undiscounted amount of premium tax offset			74
Loss contingency, loss in period			$ 14
Mainframe and server computer operations and support
Commitments and Contingencies Disclosure [Line Items]
Outsourcing agreement, remaining term	4 years	4 years
Outsourcing agreement, aggregate remaining cost	¥ 29.3	$ 262
Management consulting and technology services company application maintenance and development services
Commitments and Contingencies Disclosure [Line Items]
Outsourcing agreement, remaining term	6 years	6 years
Outsourcing agreement, aggregate remaining cost	¥ 16.9	$ 151
Enterprise software licensing agreement
Commitments and Contingencies Disclosure [Line Items]
Outsourcing agreement, remaining term	3 years	3 years
Outsourcing agreement, aggregate remaining cost	¥ 1.8	$ 16