POLICY LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Changes in Present Value of Expected Net Premiums and Expected Future Policy Benefits

The following tables present the changes in the present value of expected future net premiums and the present value of expected future policy benefits by reporting segment and disaggregated by product type. The present value of expected future net premiums and the present value of expected future policy benefits are presented gross of internal and external ceded reinsurance.


	March 31, 2025
	Aflac Japan								Aflac U.S.
(In millions)	Cancer		Medical and Other Health		Life Insurance		Other		Accident		Disability		Critical Care		Hospital Indemnity		Dental/ Vision		Life Insurance		Other
Present value of expected future net premiums:
Balance at December 31, 2024	$	14,184	$	11,817	$	5,156	$	846	$	2,497	$	1,635	$	3,901	$	1,122	$	196	$	909	$	826
Beginning balance at original discount rate	14,008		11,845		5,084		864		2,687		1,726		4,340		1,221		209		976		824
Effect of changes in cash flow assumptions	0		0		0		0		0		0		0		0		0		0		0
Effect of actual variances from expected experience	(6)		(45)		(10)		(2)		(14)		(18)		(9)		(1)		(4)		(9)		3
Adjusted beginning of period balance	14,002		11,800		5,074		862		2,673		1,708		4,331		1,220		205		967		827
Issuances	211		72		120		3		108		118		214		88		17		70		229
Interest accrual	91		72		27		4		27		17		44		12		2		10		11
Net premiums collected (1)	(350)		(268)		(201)		(24)		(119)		(99)		(142)		(61)		(10)		(41)		(22)
Foreign currency translation	812		685		292		50		0		0		0		0		0		0		0
Other	0		0		0		0		0		0		0		0		0		0		(10)
Ending balance at original discount rate	14,766		12,361		5,312		895		2,689		1,744		4,447		1,259		214		1,006		1,035
Effect of changes in discount rate assumptions	(270)		(415)		(29)		(42)		(160)		(72)		(389)		(86)		(11)		(53)		55
Balance at March 31, 2025	$	14,496	$	11,946	$	5,283	$	853	$	2,529	$	1,672	$	4,058	$	1,173	$	203	$	953	$	1,090
Present value of expected future policy benefits:
Balance at December 31, 2024	$	40,781	$	20,606	$	24,265	$	4,225	$	3,127	$	2,330	$	10,701	$	1,897	$	441	$	1,847	$	1,288
Beginning balance at original discount rate	37,856		21,957		26,330		4,765		3,386		2,466		12,013		2,073		477		2,126		1,293
Effect of changes in cash flow assumptions	0		0		0		0		0		0		0		0		0		0		0
Effect of actual variances from expected experience	(20)		(55)		(7)		(7)		(13)		(24)		(13)		(3)		(4)		(14)		4
Adjusted beginning of period balance	37,836		21,902		26,323		4,758		3,373		2,442		12,000		2,070		473		2,112		1,297
Issuances	215		75		122		4		113		125		226		92		15		77		232
Interest accrual	324		138		141		22		34		24		129		21		5		21		17
Benefit payments	(666)		(246)		(604)		(57)		(144)		(120)		(249)		(84)		(15)		(27)		(41)
Foreign currency translation	2,191		1,270		1,518		276		0		0		0		0		0		0		0
Other	0		0		0		0		0		0		0		0		0		0		0
Ending balance at original discount rate	39,900		23,139		27,500		5,003		3,376		2,471		12,106		2,099		478		2,183		1,505
Effect of changes in discount rate assumptions	1,538		(2,291)		(3,022)		(736)		(221)		(109)		(1,184)		(154)		(30)		(255)		52
Balance at March 31, 2025	41,438		20,848		24,478		4,267		3,155		2,362		10,922		1,945		448		1,928		1,557
Net liability for future policy benefits	26,942		8,902		19,195		3,414		626		690		6,864		772		245		975		467
Less: reinsurance recoverable	5,156		1,259		0		0		0		0		0		0		0		20		2
Net liability for future policy benefits after reinsurance recoverable	$	21,786	$	7,643	$	19,195	$	3,414	$	626	$	690	$	6,864	$	772	$	245	$	955	$	465

(1) Net premiums collected represent the portion of gross premiums collected from policyholders that is used to fund expected future benefit payments.


	December 31, 2024
	Aflac Japan								Aflac U.S.
(In millions)	Cancer		Medical and Other Health		Life Insurance		Other		Accident		Disability		Critical Care		Hospital Indemnity		Dental/ Vision		Life Insurance		Other
Present value of expected future net premiums:
Balance at December 31, 2023	$	17,509	$	14,697	$	6,488	$	1,088	$	2,488	$	1,652	$	4,074	$	1,107	$	206	$	853	$	277
Beginning balance at original discount rate	16,452		14,040		6,258		1,069		2,630		1,738		4,416		1,193		217		909		272
Effect of changes in cash flow assumptions	(625)		(154)		(190)		(19)		65		(47)		(106)		(21)		(17)		(5)		(8)
Effect of actual variances from expected experience	(71)		(164)		(97)		(14)		66		12		(100)		21		(12)		(29)		13
Adjusted beginning of period balance	15,756		13,722		5,971		1,036		2,761		1,703		4,210		1,193		188		875		277
Issuances	983		361		478		16		307		364		543		231		52		226		592
Interest accrual	378		302		110		17		106		66		173		46		9		37		25
Net premiums collected (1)	(1,453)		(1,135)		(862)		(101)		(479)		(401)		(578)		(244)		(39)		(157)		(53)
Foreign currency translation	(1,655)		(1,405)		(613)		(104)		0		0		0		0		0		0		0
Other	(1)		0		0		0		(8)		(6)		(8)		(5)		(1)		(5)		(17)
Ending balance at original discount rate	14,008		11,845		5,084		864		2,687		1,726		4,340		1,221		209		976		824
Effect of changes in discount rate assumptions	176		(28)		72		(18)		(190)		(91)		(439)		(99)		(13)		(67)		2
Balance at December 31, 2024	$	14,184	$	11,817	$	5,156	$	846	$	2,497	$	1,635	$	3,901	$	1,122	$	196	$	909	$	826
Present value of expected future policy benefits:
Balance at December 31, 2023	$	50,161	$	25,257	$	29,731	$	5,178	$	3,109	$	2,422	$	11,290	$	1,943	$	478	$	1,764	$	798
Beginning balance at original discount rate	43,626		25,023		30,256		5,444		3,302		2,541		12,120		2,076		506		1,971		769
Effect of changes in cash flow assumptions	(815)		(228)		(302)		(7)		109		(73)		(112)		(31)		(28)		(3)		(12)
Effect of actual variances from expected experience	(117)		(193)		(110)		(24)		91		(16)		(144)		21		(16)		(43)		(7)
Adjusted beginning of period balance	42,694		24,602		29,844		5,413		3,502		2,452		11,864		2,066		462		1,925		750
Issuances	1,004		373		488		22		311		381		559		237		55		231		597
Interest accrual	1,356		570		582		93		133		98		515		84		20		78		50
Benefit payments	(2,773)		(1,033)		(1,510)		(208)		(560)		(465)		(925)		(314)		(60)		(108)		(104)
Foreign currency translation	(4,425)		(2,555)		(3,074)		(555)		0		0		0		0		0		0		0
Other	0		0		0		0		0		0		0		0		0		0		0
Ending balance at original discount rate	37,856		21,957		26,330		4,765		3,386		2,466		12,013		2,073		477		2,126		1,293
Effect of changes in discount rate assumptions	2,925		(1,351)		(2,065)		(540)		(259)		(136)		(1,312)		(176)		(36)		(279)		(5)
Balance at December 31, 2024	40,781		20,606		24,265		4,225		3,127		2,330		10,701		1,897		441		1,847		1,288
Net liability for future policy benefits	26,597		8,789		19,109		3,379		630		695		6,800		775		245		938		462
Less: reinsurance recoverable	5,085		1,245		0		0		0		0		0		0		0		18		0
Net liability for future policy benefits after reinsurance recoverable	$	21,512	$	7,544	$	19,109	$	3,379	$	630	$	695	$	6,800	$	775	$	245	$	920	$	462

(1) Net premiums collected represent the portion of gross premiums collected from policyholders that is used to fund expected future benefit payments.

Schedule of Weighted-Average Interest Rate and Liability for Future Policy Benefit

The following tables present the weighted-average interest rates and weighted-average liability duration (calculated using the original discount rate) by reporting segment and disaggregated by product type.


	March 31, 2025
	Aflac Japan				Aflac U.S.
	Cancer	Medical and Other Health	Life Insurance	Other	Accident	Disability	Critical Care	Hospital Indemnity	Dental/ Vision	Life Insurance	Other
Weighted-average interest, original discount rate (1)	3.9 %	2.5 %	2.1 %	1.8 %	4.0 %	4.3 %	4.6 %	4.5 %	4.3 %	3.9 %	5.5 %
Weighted-average interest, current discount rate (1)	2.7 %	3.2 %	2.6 %	3.0 %	5.3 %	5.2 %	5.5 %	5.4 %	5.3 %	5.4 %	5.5 %
Weighted-average liability duration (years)	12.6	23.2	16.2	16.5	7.7	5.6	11.0	9.0	7.6	13.5	8.8

(1) The weighted-average interest rates are calculated using the reserve balances as the weights. No adjustments were made to observable market information.


	December 31, 2024
	Aflac Japan				Aflac U.S.
	Cancer	Medical and Other Health	Life Insurance	Other	Accident	Disability	Critical Care	Hospital Indemnity	Dental/ Vision	Life Insurance	Other
Weighted-average interest, original discount rate (1)	3.9 %	2.5 %	2.1 %	1.8 %	4.0 %	4.3 %	4.6 %	4.5 %	4.3 %	3.8 %	5.4 %
Weighted-average interest, current discount rate (1)	2.2 %	2.8 %	2.1 %	2.5 %	5.3 %	5.2 %	5.3 %	5.3 %	5.3 %	5.3 %	5.3 %
Weighted-average liability duration (years)	12.6	23.5	16.1	16.7	7.7	5.6	11.1	9.0	7.6	13.5	9.1

(1) The weighted-average interest rates are calculated using the reserve balances as the weights. No adjustments were made to observable market information.

Reconciliation of Future Policy Benefits

The following table presents a reconciliation of the disaggregated rollforwards above to the ending future policy benefits presented in the consolidated balance sheets. The deferred profit liability for limited-payment contracts and the deferred reinsurance gain liability are presented together with the liability for future policy benefits in the consolidated balance sheets and have been included as reconciling items in the table below.


(In millions)	March 31, 2025			December 31, 2024
Balances included in future policy benefits rollforward:
Aflac Japan
Cancer		$	26,942		$	26,597
Medical and other health		8,902			8,789
Life insurance		19,195			19,109
Other		3,414			3,379
Aflac U.S.
Accident		626			630
Disability		690			695
Critical care		6,864			6,800
Hospital indemnity		772			775
Dental/vision		245			245
Life insurance		975			938
Other		467			462
Corporate and other		5,116			5,072
Deferred profit liability		1,990			1,844
Deferred reinsurance gain liability		860			806
Intercompany eliminations (1)		(5,861)			(5,760)
Total		$	71,197		$	70,381

(1) Elimination entry necessary due to the internal reinsurance transactions with Aflac Re and to recapture a portion of policy liabilities ceded externally as a result of the reinsurance retrocession transaction. See Note 8 of the Notes to the Consolidated Financial Statements in the 2024 Annual Report.

Summary of Net Earned Premiums Recognized

The following table summarizes the amount of net earned premiums recognized in the consolidated statements of earnings by reporting segment and disaggregated by product type.


	Three Months Ended March 31,
(In millions)		2025		2024
Net earned premiums:
Aflac Japan
Cancer		$	839	$	878
Medical and other health		529		605
Life insurance		316		339
Other		32		34
Aflac U.S.
Accident		311		325
Disability		352		333
Critical care		441		444
Hospital indemnity		184		185
Dental/vision		49		59
Life insurance		169		138
Other		49		20
Corporate and other		198		165
Reinsurance ceded		(88)		(69)
Total		$	3,381	$	3,456

Summary of Interest Expense Related to Insurance Contracts Recognized

The following table summarizes the amount of interest expense related to insurance contracts recognized in benefits and claims, excluding reserve remeasurement in the consolidated statements of earnings by reporting segment and disaggregated by product type.


	Three Months Ended March 31,
(In millions)		2025		2024
Interest expense:
Aflac Japan
Cancer		$	233	$	246
Medical and other health		66		65
Life insurance		114		118
Other		18		19
Aflac U.S.
Accident		7		6
Disability		7		8
Critical care		85		85
Hospital indemnity		9		9
Dental/vision		3		3
Life insurance		11		10
Other		6		7

Total		$	559	$	576

Summary of Undiscounted and Discounted Expected Future Gross Premiums and Future Benefits and Expenses

The following tables summarize the amount of undiscounted expected future gross premiums and expected future policy benefits and expenses and discounted (discounted at the current period discount rate) expected future gross premiums and expected future policy benefits and expenses by reporting segment and disaggregated by product type. These tables are presented gross of internal and external ceded reinsurance. Future gross premiums represent the expected amount of future premiums to be received. For limited-payment policies, the premiums are collected over a shorter period than the policy term over which benefits are provided. As a result, once the policy reaches premium paid-up status, the future gross premiums can be significantly less than the future benefit payments. Further, benefits and expenses are generally greater in the later years of a policy. These are the primary factors that result in future gross premiums lower than future benefit and expense payments for certain lines of business of the Company.


	March 31, 2025						December 31, 2024
(In millions)	Gross Premiums			Benefits and Expenses			Gross Premiums			Benefits and Expenses
Undiscounted expected future gross premiums and expected future policy benefits and expenses:
Aflac Japan
Cancer		$	54,446		$	59,903		$	51,712		$	56,881
Medical and other health		34,739			36,751			33,250			34,864
Life insurance		11,492			39,412			10,915			37,520
Other		1,538			6,790			1,477			6,479
Aflac U.S.
Accident		8,843			4,673			8,862			4,687
Disability		5,748			3,110			5,727			3,094
Critical care		19,780			20,463			19,624			20,340
Hospital indemnity		4,937			3,052			4,859			3,017
Dental/vision		1,117			684			1,118			679
Life insurance		3,091			3,686			2,966			3,559
Other		2,764			2,691			2,143			2,273
Total		$	148,495		$	181,215		$	142,653		$	173,393


	March 31, 2025						December 31, 2024
(In millions)	Gross Premiums			Benefits and Expenses			Gross Premiums			Benefits and Expenses
Discounted expected future gross premiums and expected future policy benefits and expenses:
Aflac Japan
Cancer		$	40,989		$	41,438		$	40,170		$	40,781
Medical and other health		25,461			20,848			25,171			20,606
Life insurance		9,630			24,478			9,367			24,265
Other		1,219			4,267			1,204			4,225
Aflac U.S.
Accident		6,116			3,155			6,057			3,127
Disability		4,456			2,362			4,404			2,330
Critical care		12,152			10,922			11,900			10,701
Hospital indemnity		3,412			1,945			3,312			1,897
Dental/vision		768			448			761			441
Life insurance		2,160			1,928			2,050			1,847
Other		1,668			1,557			1,290			1,288
Total		$	108,031		$	113,348		$	105,686		$	111,508

Schedule of Changes in Other Policyholders' Funds

The following table presents the changes in other policyholders’ funds.


(In millions)	March 31, 2025		December 31, 2024
Other policyholders' funds:
Fixed annuities account balance, beginning of period (1)	$	5,221	$	5,939
Premiums received	29		104
Transfers from WAYS conversions	74		249
Surrenders and withdrawals	(18)		(58)
Benefit payments	(128)		(446)
Interest credited	12		49
Foreign currency translation and other	304		(616)
Fixed annuities account balance, end of period	5,494		5,221
Other deposit type reserves	369		239
Total	$	5,863	$	5,460

(1) Aflac Japan fixed annuities

Schedule of Other Policyholders' Funds by Guaranteed Crediting Rates

The following table presents other policyholders’ funds balances by range of guaranteed crediting rates.

March 31, 2025

December 31, 2024

(In millions)

Range of Guaranteed

Minimum Crediting

Rates (2)

At
Guaranteed
Minimum

Cash
Surrender
Value

Range of Guaranteed

Minimum Crediting

Rates (2)

At
Guaranteed
Minimum

Cash
Surrender
Value

Fixed annuities (1)

0.5% - 2.2%

$5,494

$5,420

0.5% - 2.2%

$5,221

$5,150

(1) Aflac Japan fixed annuities

(2) Weighted-average crediting rate of 1.5% at March 31, 2025 and December 31, 2024.