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SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended
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Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract] |
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Statements of Earnings
| Years ended December 31,
(In millions) | 2024 |  | 2023 |  | 2022
Revenues: |  |  |  |  |  |  |  |  |  |  |
Management and service fees from subsidiaries(1) |  | $ | 163 |  |  |  |  | $ | 151 |  |  |  |  | $ | 136 |  |
Net investment income |  | 31 |  |  |  |  | (174) |  |  |  |  | 3 |  |
Interest from subsidiaries(1) |  | 1 |  |  |  |  | 1 |  |  |  |  | 2 |  |
Net investment gains (losses) |  | 503 |  |  |  |  | 301 |  |  |  |  | (228) |  |
Total revenues |  | 698 |  |  |  |  | 279 |  |  |  |  | (87) |  |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | 189 |  |  |  |  | 187 |  |  |  |  | 215 |  |
Other operating expenses |  | 282 |  |  |  |  | 295 |  |  |  |  | 275 |  |
Total operating expenses |  | 471 |  |  |  |  | 482 |  |  |  |  | 490 |  |
Earnings before income taxes and equity in earnings of subsidiaries |  | 227 |  |  |  |  | (203) |  |  |  |  | (577) |  |
Income tax expense (benefit) |  | (126) |  |  |  |  | (444) |  |  |  |  | (208) |  |
Earnings before equity in earnings of subsidiaries |  | 353 |  |  |  |  | 241 |  |  |  |  | (369) |  |
Equity in earnings of subsidiaries(1) |  | 5,090 |  |  |  |  | 4,418 |  |  |  |  | 4,787 |  |
Net earnings |  | $ | 5,443 |  |  |  |  | $ | 4,659 |  |  |  |  | $ | 4,418 |  |
(1)Eliminated in consolidation See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Statements of Comprehensive Income (Loss)
| Years ended December 31,
(In millions) | 2024 |  | 2023 |  | 2022
Net earnings |  | $ | 5,443 |  |  |  |  | $ | 4,659 |  |  |  |  | $ | 4,418 |  |
Other comprehensive income (loss) before income taxes: |  |  |  |  |  |  |  |  |  |  |
Unrealized foreign currency translation gains (losses) during period |  | (769) |  |  |  |  | (366) |  |  |  |  | (1,034) |  |
Unrealized gains (losses) on fixed maturity securities during period |  | (1,421) |  |  |  |  | 2,327 |  |  |  |  | (13,056) |  |
Unrealized gains (losses) on derivatives during period |  | 3 |  |  |  |  | 6 |  |  |  |  | 4 |  |
Effect of changes in discount rate assumptions during period |  | 5,780 |  |  |  |  | (582) |  |  |  |  | 17,384 |  |
Pension liability adjustment during period |  | 23 |  |  |  |  | 35 |  |  |  |  | 165 |  |
Total other comprehensive income (loss) before income taxes |  | 3,616 |  |  |  |  | 1,420 |  |  |  |  | 3,463 |  |
Income tax expense (benefit) related to items of other comprehensive income (loss) |  | 1,074 |  |  |  |  | 511 |  |  |  |  | 1,481 |  |
Other comprehensive income (loss), net of income taxes |  | 2,542 |  |  |  |  | 909 |  |  |  |  | 1,982 |  |
Total comprehensive income (loss) |  | $ | 7,985 |  |  |  |  | $ | 5,568 |  |  |  |  | $ | 6,400 |  |
See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Balance Sheets
| December 31,
(In millions, except for share and per-share amounts) | 2024 |  | 2023
Assets: |  |  |  |  |  |  |
Investments and cash: |  |  |  |  |  |  |
Fixed maturity securities available-for-sale, at fair value (no allowance for credit losses in 2024 and 2023, amortized cost $1,702 in 2024 and $1,447 in 2023) |  | $ | 1,713 |  |  |  |  | $ | 1,582 |  |
Investments in subsidiaries(1) |  | 27,890 |  |  |  |  | 24,508 |  |
Other investments |  | 1,239 |  |  |  |  | 1,126 |  |
Cash and cash equivalents |  | 2,308 |  |  |  |  | 1,007 |  |
Total investments and cash |  | 33,150 |  |  |  |  | 28,223 |  |
Due from subsidiaries(1) |  | 242 |  |  |  |  | 270 |  |
Income taxes receivable |  | 71 |  |  |  |  | 251 |  |
Other assets |  | 1,121 |  |  |  |  | 1,202 |  |
Total assets |  | $ | 34,584 |  |  |  |  | $ | 29,946 |  |
Liabilities and shareholders' equity: |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |
Employee benefit plans |  | $ | 347 |  |  |  |  | $ | 329 |  |
Notes payable and lease obligations |  | 7,219 |  |  |  |  | 6,819 |  |
Other liabilities |  | 920 |  |  |  |  | 813 |  |
Total liabilities |  | 8,486 |  |  |  |  | 7,961 |  |
Shareholders' equity: |  |  |  |  |  |  |
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2024 and 2023; issued 1,356,763 shares in 2024 and 1,355,398 shares in 2023 |  | 136 |  |  |  |  | 136 |  |
Additional paid-in capital |  | 2,894 |  |  |  |  | 2,771 |  |
Retained earnings |  | 52,277 |  |  |  |  | 47,993 |  |
Accumulated other comprehensive income (loss): |  |  |  |  |  |  |
Unrealized foreign currency translation gains (losses) |  | (4,998) |  |  |  |  | (4,069) |  |
Unrealized gains (losses) on fixed maturity securities |  | 24 |  |  |  |  | 1,139 |  |
Unrealized gains (losses) on derivatives |  | (20) |  |  |  |  | (22) |  |
Effect of changes in discount rate assumptions |  | 2,006 |  |  |  |  | (2,560) |  |
Pension liability adjustment |  | 10 |  |  |  |  | (8) |  |
Treasury stock, at average cost |  | (26,231) |  |  |  |  | (23,395) |  |
Total shareholders' equity |  | 26,098 |  |  |  |  | 21,985 |  |
Total liabilities and shareholders' equity |  | $ | 34,584 |  |  |  |  | $ | 29,946 |  |
(1)Eliminated in consolidation See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Statements of Cash Flows
| Years ended December 31,
(In millions) | 2024 |  | 2023 |  | 2022
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |
Net earnings |  | $ | 5,443 |  |  |  |  | $ | 4,659 |  |  |  |  | $ | 4,418 |  |
Adjustments to reconcile net earnings to net cash provided from operating activities: |  |  |  |  |  |  |  |  |  |  |
Equity in earnings of subsidiaries(1) |  | (5,090) |  |  |  |  | (4,418) |  |  |  |  | (4,787) |  |
Cash dividends received from subsidiaries |  | 4,274 |  |  |  |  | 3,410 |  |  |  |  | 2,705 |  |
Other, net |  | (292) |  |  |  |  | (686) |  |  |  |  | 18 |  |
Net cash provided (used) by operating activities |  | 4,335 |  |  |  |  | 2,965 |  |  |  |  | 2,354 |  |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities sold |  | 572 |  |  |  |  | 547 |  |  |  |  | 392 |  |
Fixed maturity securities purchased |  | (695) |  |  |  |  | (345) |  |  |  |  | (438) |  |
Other investments sold (purchased) |  | (243) |  |  |  |  | (34) |  |  |  |  | (206) |  |
Settlement of derivatives |  | 469 |  |  |  |  | 693 |  |  |  |  | 718 |  |
Additional capitalization of subsidiaries(1) |  | (84) |  |  |  |  | (203) |  |  |  |  | (294) |  |
Other, net |  | 0 |  |  |  |  | 1 |  |  |  |  | 1 |  |
Net cash provided (used) by investing activities |  | 19 |  |  |  |  | 659 |  |  |  |  | 173 |  |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |
Purchases of treasury stock |  | (2,800) |  |  |  |  | (2,801) |  |  |  |  | (2,401) |  |
Proceeds from borrowings |  | 823 |  |  |  |  | 0 |  |  |  |  | 1,277 |  |
Principal payments under debt obligations |  | 0 |  |  |  |  | 0 |  |  |  |  | (1,416) |  |
Dividends paid to shareholders |  | (1,087) |  |  |  |  | (966) |  |  |  |  | (979) |  |
Treasury stock reissued |  | 14 |  |  |  |  | 17 |  |  |  |  | 17 |  |
Proceeds from exercise of stock options |  | 9 |  |  |  |  | 13 |  |  |  |  | 12 |  |
Net change in amount due to/from subsidiaries(1) |  | (5) |  |  |  |  | (6) |  |  |  |  | 16 |  |
Other, net |  | (7) |  |  |  |  | (17) |  |  |  |  | (7) |  |
Net cash provided (used) by financing activities |  | (3,053) |  |  |  |  | (3,760) |  |  |  |  | (3,481) |  |
Net change in cash and cash equivalents |  | 1,301 |  |  |  |  | (136) |  |  |  |  | (954) |  |
Cash and cash equivalents, beginning of period |  | 1,007 |  |  |  |  | 1,143 |  |  |  |  | 2,097 |  |
Cash and cash equivalents, end of period |  | $ | 2,308 |  |  |  |  | $ | 1,007 |  |  |  |  | $ | 1,143 |  |
(1) Eliminated in consolidation See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Notes to Condensed Financial Statements The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Aflac Incorporated and Subsidiaries included in Part II, Item 8. of this report. (A) Notes Payable and Lease Obligations A summary of notes payable and lease obligations as of December 31 follows:
(In millions) | 2024 |  | 2023
1.125% senior sustainability notes due March 2026 |  | $ | 399 |  |  |  |  | $ | 398 |  |
2.875% senior notes due October 2026 |  | 299 |  |  |  |  | 299 |  |
3.60% senior notes due April 2030 |  | 994 |  |  |  |  | 993 |  |
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 |  | 542 |  |  |  |  | 542 |  |
Yen-denominated senior notes and subordinated debentures: |  |  |  |  |  |  |
.300% senior notes due September 2025 (principal amount ¥12.4 billion) |  | 79 |  |  |  |  | 87 |  |
.932% senior notes due January 2027 (principal amount ¥60.0 billion) |  | 378 |  |  |  |  | 422 |  |
1.048% senior notes due March 2029 (principal amount ¥13.0 billion) |  | 81 |  |  |  |  | 0 |  |
1.075% senior notes due September 2029 (principal amount ¥33.4 billion) |  | 211 |  |  |  |  | 234 |  |
.500% senior notes due December 2029 (principal amount ¥12.6 billion) |  | 79 |  |  |  |  | 88 |  |
.550% senior notes due March 2030 (principal amount ¥13.3 billion) |  | 84 |  |  |  |  | 93 |  |
1.159% senior notes due October 2030 (principal amount ¥29.3 billion) |  | 184 |  |  |  |  | 206 |  |
1.412% senior notes due March 2031 (principal amount ¥27.9 billion) |  | 176 |  |  |  |  | 0 |  |
.633% senior notes due April 2031 (principal amount ¥30.0 billion) |  | 189 |  |  |  |  | 211 |  |
.843% senior notes due December 2031 (principal amount ¥9.3 billion) |  | 58 |  |  |  |  | 65 |  |
.750% senior notes due March 2032 (principal amount ¥20.7 billion) |  | 130 |  |  |  |  | 145 |  |
1.320% senior notes due December 2032 (principal amount ¥21.1 billion) |  | 133 |  |  |  |  | 148 |  |
.844% senior notes due April 2033 (principal amount ¥12.0 billion) |  | 76 |  |  |  |  | 84 |  |
1.488% senior notes due October 2033 (principal amount ¥15.2 billion) |  | 95 |  |  |  |  | 106 |  |
1.682% senior notes due March 2034 (principal amount ¥7.7 billion) |  | 48 |  |  |  |  | 0 |  |
1.600% senior notes due March 2034 (principal amount ¥18.3 billion) |  | 115 |  |  |  |  | 0 |  |
.934% senior notes due December 2034 (principal amount ¥9.8 billion) |  | 62 |  |  |  |  | 69 |  |
.830% senior notes due March 2035 (principal amount ¥10.6 billion) |  | 66 |  |  |  |  | 74 |  |
1.740% senior notes due March 2036 (principal amount ¥15.0 billion) |  | 94 |  |  |  |  | 0 |  |
1.039% senior notes due April 2036 (principal amount ¥10.0 billion) |  | 63 |  |  |  |  | 70 |  |
1.594% senior notes due September 2037 (principal amount ¥6.5 billion) |  | 41 |  |  |  |  | 45 |  |
1.750% senior notes due October 2038 (principal amount ¥8.9 billion) |  | 56 |  |  |  |  | 62 |  |
1.920% senior notes due March 2039 (principal amount ¥16.5 billion) |  | 103 |  |  |  |  | 0 |  |
1.122% senior notes due December 2039 (principal amount ¥6.3 billion) |  | 39 |  |  |  |  | 44 |  |
1.264% senior notes due April 2041 (principal amount ¥10.0 billion) |  | 63 |  |  |  |  | 70 |  |
2.160% senior notes due March 2044 (principal amount ¥5.7 billion) |  | 35 |  |  |  |  | 0 |  |
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion) |  | 375 |  |  |  |  | 419 |  |
1.560% senior notes due April 2051 (principal amount ¥20.0 billion) |  | 125 |  |  |  |  | 140 |  |
2.144% senior notes due September 2052 (principal amount ¥12.0 billion) |  | 75 |  |  |  |  | 84 |  |
2.400% senior notes due March 2054 (principal amount ¥19.5 billion) |  | 122 |  |  |  |  | 0 |  |
Yen-denominated loans: |  |  |  |  |  |  |
Variable interest rate loan due August 2027 (.84% in 2024 and .35% in 2023, principal amount ¥11.7 billion) |  | 74 |  |  |  |  | 82 |  |
Variable interest rate loan due August 2029 (.94% in 2024 and .45% in 2023, principal amount ¥25.3 billion) |  | 160 |  |  |  |  | 178 |  |
Variable interest rate loan due August 2032 (1.09% in 2024 and .60% in 2023, principal amount ¥70.0 billion) |  | 441 |  |  |  |  | 492 |  |
Operating lease obligations payable through 2032 |  | 5 |  |  |  |  | 0 |  |
Total notes payable and lease obligations |  | $ | 7,219 |  |  |  |  | $ | 6,819 |  |
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 March 2024, the Parent Company issued five series of senior notes totaling ¥75.0 billion through a private placement. The first series, which totaled ¥18.3 billion, bears interest at a fixed rate of 1.600% per annum, payable semi-annually, and will mature in March 2034. The second series, which totaled ¥15.0 billion, bears interest at a fixed rate of 1.740% per annum, payable semi-annually, and will mature in March 2036. The third series, which totaled ¥16.5 billion, bears interest at a fixed rate of 1.920% per annum, payable semi-annually, and will mature in March 2039. The fourth series, which totaled ¥5.7 billion, bears interest at a fixed rate of 2.160% per annum, payable semi-annually, and will mature in March 2044. The fifth series, which totaled ¥19.5 billion, bears interest at a fixed rate of 2.400% per annum, payable semi-annually, and will mature in March 2054. These notes are redeemable at the Parent Company's option (i) in whole at any time or (ii) in part from time to time in an amount not less than 5% of the aggregate principal amount then outstanding of the notes to be redeemed. In March 2024, the Parent Company issued three series of senior notes totaling ¥48.6 billion through a public debt offering under its U.S. shelf registration statement. The first series, which totaled ¥13.0 billion, bears interest at a fixed rate of 1.048% per annum, payable semi-annually, and will mature in March 2029. The second series, which totaled ¥27.9 billion, bears interest at a fixed rate of 1.412% per annum, payable semi-annually, and will mature in March 2031. The third series, which totaled ¥7.7 billion, bears interest at a fixed rate of 1.682% per annum, payable semi-annually, and will mature in March 2034. These notes are redeemable at the Parent Company’s option 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. In addition, the notes maturing in March 2029, March 2031 and March 2034 are redeemable at the Parent Company's option, in whole or in part from time to time, on or after December 21, 2028, December 31, 2030 and September 21, 2033, respectively, at a redemption price equal to the aggregate principal amount of the applicable series to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption. The aggregate contractual maturities of notes payable during each of the years after December 31, 2024, are as follows:
(In millions) |  |
2025 | $ | 79 |  |
2026 | 700 |  |
2027 | 453 |  |
2028 | 0 |  |
2029 | 533 |  |
Thereafter | 5,500 |  |
Total | $ | 7,265 |  |
For further information regarding notes payable and lease obligations, see Note 9 of the Notes to the Consolidated Financial Statements. (B) Derivatives At December 31, 2024, the Parent Company's outstanding freestanding derivative contracts were swaps, foreign currency forwards and options. The cross-currency swap agreements relate to certain of the Parent Company's U.S. dollar-denominated senior notes to effectively convert a portion of the interest on the notes from U.S. dollar to Japanese yen. The foreign currency forwards and options are designated as derivative hedges of the foreign currency exposure of the Company's net investment in Aflac Japan. The Parent Company also enters into foreign currency forward contracts with Aflac Re to economically manage the currency mismatch between Aflac Re's assets which are mostly denominated in U.S. dollars and its liabilities which are mostly denominated in yen. The Parent Company does not use derivative financial instruments for trading purposes, nor does it engage in leveraged derivative transactions. For further information regarding these derivatives, see Notes 1 and 4 of the Notes to the Consolidated Financial Statements. (C) Income Taxes The Parent Company and its eligible U.S. subsidiaries file a consolidated U.S. federal income tax return. Income tax liabilities or benefits are recorded by each principal subsidiary based upon separate return calculations, and any difference between the consolidated provision and the aggregate amounts recorded by the subsidiaries is reflected in the Parent Company financial statements. For further information on income taxes, see Note 10 of the Notes to the Consolidated Financial Statements. (D) Dividend Restrictions See Note 13 of the Notes to the Consolidated Financial Statements for information regarding dividend restrictions. (E) Supplemental Disclosures of Cash Flow Information
(In millions) | 2024 |  | 2023 |  | 2022
Interest paid |  | $ | 180 |  |  |  |  | $ | 184 |  |  |  |  | $ | 211 |  |
Noncash financing activities: |  |  |  |  |  |  |  |  |  |  |
Treasury stock issued for shareholder dividend reinvestment |  | 41 |  |  |  |  | 37 |  |  |  |  | 37 |  |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 810 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481231/810-10-45-11 + Details
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