BUSINESS SEGMENT INFORMATION AND SELECTED FOREIGN CURRENCY TRANSLATION ITEMS (Tables)

12 Months Ended

Dec. 31, 2025

Reconciliation of Revenue from Segments to Consolidated

Information regarding operations by reportable segment and Corporate and other for the years ended December 31 is presented in the following tables.


(In millions)	2025			2024			2023
Revenues:
Aflac Japan:
Net earned premiums (1)		$	6,744		$	6,930		$	8,047
Adjusted net investment income		2,581			2,701			2,582
Other income		32			28			35
Total adjusted revenue Aflac Japan		9,357			9,659			10,664
Aflac U.S.:
Net earned premiums		5,999			5,829			5,675
Adjusted net investment income		830			847			820
Other income		74			63			128
Total adjusted revenue Aflac U.S.		6,903			6,739			6,623
Corporate and other (2)		1,277			1,007			460
Total adjusted revenues		17,537			17,405			17,747
Net investment gains (losses)		(572)			1,271			590
Reconciling items:
Amortized hedge costs		45			26			157
Amortized hedge income		(98)			(113)			(121)
Net interest (income) expense from derivatives associated with certain investment strategies		252			338			328
Total revenues		$	17,164		$	18,927		$	18,701

(1) Includes a gain (loss) of $(52), $(81) and $20 in 2025, 2024 and 2023, respectively, related to remeasurement of the deferred profit liability for limited-payment contracts.

(2) The change in value of federal historic rehabilitation and solar investments in partnerships of $65, $165 and $343 in 2025, 2024 and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $69, $164 and $334 in 2025, 2024 and 2023, respectively, have been reported as an income tax benefit in the consolidated statements of earnings. See Note 1 for additional information on these investments.

Reconciliation of Adjusted Profit (Loss) from Segments to Consolidated


(In millions)	2025			2024			2023
Adjusted revenues:
Aflac Japan (1)		$	9,357		$	9,659		$	10,664
Aflac U.S.		6,903			6,739			6,623
Corporate and other (2)		1,277			1,007			460
Total adjusted revenues		17,537			17,405			17,747
Benefits and adjusted expenses:
Aflac Japan:
Benefits and claims, excluding reserve remeasurement		4,528			4,761			5,409
Reserve remeasurement (gains) losses		(529)			(444)			(96)
Total benefits and claims, net		3,999			4,317			5,313
Adjusted expenses:
Amortization of deferred policy acquisition costs		323			321			326
Insurance commissions		427			435			491
Insurance and other expenses		1,168			1,092			1,300
Total benefits and adjusted expenses Aflac Japan		5,917			6,165			7,430
Aflac U.S.:
Benefits and claims, excluding reserve remeasurement		2,969			2,821			2,715
Reserve remeasurement (gains) losses		(132)			(95)			(284)
Total benefits and claims, net		2,837			2,726			2,431
Adjusted expenses:
Amortization of deferred policy acquisition costs		551			530			490
Insurance commissions		564			563			561
Insurance and other expenses		1,530			1,501			1,640
Total benefits and adjusted expenses Aflac U.S.		5,482			5,320			5,122
Corporate and other		1,176			975			885
Total adjusted expenses		$	12,575		$	12,460		$	13,437
Pretax earnings:
Aflac Japan (1)		$	3,440		$	3,494		$	3,234
Aflac U.S.		1,421			1,419			1,501
Corporate and other (2)		101			32			(425)
Pretax adjusted earnings		4,962			4,945			4,310
Other income (loss)		(54)			(23)			39
Net investment gains (losses)		(572)			1,271			590
Reconciling items:
Amortized hedge costs		45			26			157
Amortized hedge income		(98)			(113)			(121)
Net interest (income) expense from derivatives associated with certain investment strategies		252			338			328
Impact of interest from derivatives associated with notes payable		(2)			(27)			(41)
Total earnings before income taxes		$	4,533		$	6,417		$	5,262
Income taxes applicable to pretax adjusted earnings		$	954		$	873		$	577
Effect of foreign currency translation on after-tax adjusted earnings		19			(103)			(113)

(1) Includes a gain (loss) of $(52), $(81) and $20 for 2025, 2024 and 2023, respectively, related to remeasurement of the deferred profit liability for limited-payment contracts.

Schedule of Intercompany Transfers of Funds

Aflac Japan makes payments to the Parent Company for management fees and remittances of earnings. Information on transfers for each of the years ended December 31 is shown below. See Note 14 for information concerning restrictions on transfers from Aflac Japan.


(In millions)	2025			2024			2023
Management fees		$	73		$	69		$	67

Profit remittances		2,681			2,865			2,623
Total transfers from Aflac Japan		$	2,754		$	2,934		$	2,690

Reconciliation of Assets from Segments to Consolidated

The Company's total assets as of December 31 were as follows:


(In millions)	2025			2024
Assets:
Aflac Japan		$	88,537		$	90,210
Aflac U.S.		22,317			21,930
Corporate and other		5,616			5,426
Total assets		$	116,470		$	117,566

Foreign Currency Disclosure

The following table shows the Japanese yen/U.S. dollar (yen/dollar) exchange rates used for or during the periods ended December 31. For comparison, exchange effects for the current year were calculated using the yen/dollar exchange rate that was used in the prior year.


	2025				2024				2023
Statements of Earnings:
Weighted-average yen/dollar exchange rate (1)		149.32				150.97				140.57
Yen percent strengthening (weakening)		1.1		%		(6.9)		%		(7.4)		%
Exchange effect on pretax adjusted earnings (in millions)		$	24			$	(125)			$	(131)


	2025				2024
Balance Sheets:
Yen/dollar exchange rate at December 31(1)		156.56				158.18
Yen percent strengthening (weakening)		1.0		%		(10.3)		%
Exchange effect on total assets (in millions)		$	878			$	(6,127)
Exchange effect on total liabilities (in millions)		(2,159)				(9,624)

(1) Rates are based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).