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BUSINESS SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2024
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, reinsurance activities, including internal reinsurance activity with Aflac Re, and other business activities not included in Aflac Japan or Aflac U.S., as well as intercompany eliminations, 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. •Pretax adjusted earnings are adjusted revenues less benefits and adjusted expenses. The adjustments to both revenues and expenses account for certain items that are outside management’s control because they tend to be driven by general economic conditions and events or are related to infrequent activities not directly associated with insurance operations. The Company excludes income taxes related to operations to arrive at pretax adjusted earnings. ◦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 income/expense from derivatives associated with certain investment strategies, which are reclassified from net investment gains (losses) and included in adjusted earnings as a component of adjusted net investment income when analyzing operations. ◦Adjusted expenses are U.S. GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring 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. Aflac Japan's adjusted revenues accounted for 56% and 61% of the Company's total adjusted revenues in the three-month periods ended March 31, 2024 and 2023, respectively. The percentage of the Company's total assets attributable to Aflac Japan was 79% at March 31, 2024, compared with 80% at December 31, 2023. Information regarding operations by reportable segment and Corporate and other, follows:
|  |  | Three Months Ended March 31, |
(In millions) |  |  |  |  | 2024 |  | 2023 |
Revenues: |  |  |  |  |  |  |  |
Aflac Japan: |  |  |  |  |  |  |  |
Net earned premiums |  |  |  |  | $ | 1,816 |  |  | $ | 2,170 |  |
Adjusted net investment income |  |  |  |  | 648 |  |  | 611 |  |
Other income |  |  |  |  | 9 |  |  | 9 |  |
Total adjusted revenue Aflac Japan |  |  |  |  | 2,473 |  |  | 2,790 |  |
Aflac U.S.: |  |  |  |  |  |  |  |
Net earned premiums |  |  |  |  | 1,475 |  |  | 1,428 |  |
Adjusted net investment income |  |  |  |  | 206 |  |  | 197 |  |
Other income |  |  |  |  | 18 |  |  | 35 |  |
Total adjusted revenue Aflac U.S. |  |  |  |  | 1,699 |  |  | 1,660 |  |
Corporate and other (1) |  |  |  |  | 247 |  |  | 129 |  |
Total adjusted revenues |  |  |  |  | 4,419 |  |  | 4,579 |  |
Net investment gains (losses) |  |  |  |  | 951 |  |  | 123 |  |
Reconciling items: |  |  |  |  |  |  |  |
Amortized hedge costs |  |  |  |  | 6 |  |  | 58 |  |
Amortized hedge income |  |  |  |  | (28) |  |  | (29) |  |
Net interest (income) expense from derivatives associated with certain investment strategies |  |  |  |  | 88 |  |  | 69 |  |
Total revenues |  |  |  |  | $ | 5,436 |  |  | $ | 4,800 |  |
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $32 and $51 for the three-month periods ended March 31, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $33 and $52 for the three-month periods ended March 31, 2024, and 2023, respectively, have been recorded as an income tax benefit in the consolidated statements of earnings. See Note 3 for additional information on these investments.
|  |  | Three Months Ended March 31, |
(In millions) |  |  |  |  | 2024 |  | 2023 |
Pretax earnings: |  |  |  |  |  |  |  |
Aflac Japan |  |  |  |  | $ | 810 |  |  | $ | 788 |  |
Aflac U.S. |  |  |  |  | 356 |  |  | 352 |  |
Corporate and other (1) |  |  |  |  | (3) |  |  | (7) |  |
Pretax adjusted earnings |  |  |  |  | 1,163 |  |  | 1,133 |  |
Other income (loss) |  |  |  |  | (2) |  |  | 0 |  |
Net investment gains (losses) |  |  |  |  | 951 |  |  | 123 |  |
Reconciling items: |  |  |  |  |  |  |  |
Amortized hedge costs |  |  |  |  | 6 |  |  | 58 |  |
Amortized hedge income |  |  |  |  | (28) |  |  | (29) |  |
Net interest (income) expense from derivatives associated with certain investment strategies |  |  |  |  | 88 |  |  | 69 |  |
Impact of interest from derivatives associated with notes payable |  |  |  |  | (8) |  |  | (12) |  |
Total earnings before income taxes |  |  |  |  | $ | 2,170 |  |  | $ | 1,342 |  |
Income taxes applicable to pretax adjusted earnings |  |  |  |  | $ | 202 |  |  | $ | 180 |  |
Effect of foreign currency translation on after-tax adjusted earnings |  |  |  |  | (44) |  |  | (41) |  |
(1)The change in value of federal historic rehabilitation and solar investments in partnerships of $32 and $51 for the three-month periods ended March 31, 2024, and 2023, respectively, is included as a reduction to net investment income. Tax credits on these investments of $33 and $52 for the three-month periods ended March 31, 2024, and 2023, respectively, have been recorded as an income tax benefit in the consolidated statements of earnings. See Note 3 for additional information on these investments. Assets were as follows:
(In millions) | March 31, 2024 |  | December 31, 2023
Assets: |  |  |  |  |  |  |
Aflac Japan |  | $ | 98,189 |  |  |  |  | $ | 101,541 |  |
Aflac U.S. |  | 21,850 |  |  |  |  | 21,861 |  |
Corporate and other |  | 4,703 |  |  |  |  | 3,322 |  |
Total assets |  | $ | 124,742 |  |  |  |  | $ | 126,724 |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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