DEFERRED POLICY ACQUISITION COSTS

9 Months Ended

Sep. 30, 2025

Deferred Policy Acquisition Costs Disclosures [Abstract]

The following tables present a rollforward of deferred policy acquisition costs by reporting segment and disaggregated by product type.


	September 30, 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		Total
Deferred policy acquisition costs:
Balance at December 31, 2024	$	2,776	$	1,833	$	441	$	52	$	915	$	636	$	1,348	$	452	$	86	$	219	$	0	$	8,758
Capitalization	256		67		24		2		98		91		116		63		9		70		0		796
Amortization expense	(143)		(75)		(25)		(2)		(107)		(91)		(116)		(58)		(9)		(29)		0		(655)

Foreign currency translation and other	172		115		28		2		0		0		0		0		0		0		0		317
Balance at September 30, 2025	$	3,061	$	1,940	$	468	$	54	$	906	$	636	$	1,348	$	457	$	86	$	260	$	0	$	9,216


	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		Total
Deferred policy acquisition costs:
Balance at December 31, 2023	$	2,971	$	2,041	$	491	$	56	$	917	$	625	$	1,336	$	436	$	86	$	172	$	1	$	9,132
Capitalization	300		103		36		4		141		129		165		89		12		77		0		1,056
Amortization expense	(184)		(100)		(34)		(3)		(143)		(118)		(153)		(73)		(12)		(30)		(1)		(851)

Foreign currency translation and other	(311)		(211)		(52)		(5)		0		0		0		0		0		0		0		(579)
Balance at December 31, 2024	$	2,776	$	1,833	$	441	$	52	$	915	$	636	$	1,348	$	452	$	86	$	219	$	0	$	8,758

The Company uses the following constant level bases to amortize deferred policy acquisition costs:


Policy Type						Constant-level Basis
Life Products (U.S.)						Face Amount
Health Products (U.S.)						Number of Policies in Force
Health & Life Products (Japan)						Units in Force

Face amount is the stated dollar amount that the policy’s beneficiaries receive upon the death of the insured. For life and health products issued in Japan, the constant-level basis used is units in force, which is a proxy for face amount and insurance in force, respectively. Future DAC amortization is impacted by persistency.

There were no changes to the inputs, judgments or methods used to determine amortization amounts during the nine-month periods ended September 30, 2025 and 2024. The Company updated the assumptions used to determine amortization using the same assumptions as those used for measuring the liability for future policy benefits during the nine-month periods ended September 30, 2025 and 2024. The Company recognizes the effects of changes in assumptions prospectively over the remaining contract term as a revision of the future amortization pattern. For additional information on deferred policy acquisition costs, see Notes 1 and 6 of the Notes to the Consolidated Financial Statements in the 2024 Annual Report.