Aflac Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Key takeaways

Net earnings declined 81.5%: The third-quarter figure was $303 million, against $1,639 million a year earlier. Source
Adjusted earnings declined 8.5%: Adjusted earnings came to $1,214 million against $1,327 million a year earlier. Source
Reserve remeasurement gains aided results: Reserve remeasurement gains are tied to unlocking actuarial assumptions, according to the segment discussion. Source
Japan pretax earnings fell 15.2%: On a currency-neutral basis the Japan decline was 17.9%. Source
U.S. pretax earnings rose 31.5%: The U.S. pretax adjusted profit margin was 27.7%, against 21.7% a year earlier. Source
Capital returned $1.1 billion: Share repurchases were the larger part of the total; dividends were $305 million. Source
Reinsurance strategy shows in Corporate: Management said the reinsurance strategy affects Japan's reported results, which are included in Corporate and Other. Source

“Aflac delivered solid adjusted earnings for the quarter and for the first nine months.”
Daniel P. Amos, Chairman and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Dividend Source	Fourth quarter 2026 dividend	$0.61 per share	Kept

What changed from last quarter

New: Aflac Japan ceded about ¥500 billion of FSA-basis reserves on cancer policies to Aflac Re Bermuda. Source

Results and earnings drivers

Net earnings declined 81.5%: The third-quarter figure was $303 million, against $1,639 million a year earlier. Source
Adjusted earnings declined 8.5%: Adjusted earnings came to $1,214 million against $1,327 million a year earlier. Source
Adjusted EPS declined 2.4%: The prior-year quarter was $2.49; excluding current-period currency impact, the figure is $2.46. Source
Reserve remeasurement gains aided results: Reserve remeasurement gains are tied to unlocking actuarial assumptions, according to the segment discussion. Source
Nine-month adjusted EPS unchanged: Excluding a $0.10 per share currency impact, nine-month adjusted EPS rose 1.7% to $6.02. Source

Segments and regions

Japan pretax earnings fell 15.2%: On a currency-neutral basis the Japan decline was 17.9%. Source
Japan margin down to 44.4%: Pretax adjusted earnings divided by total adjusted revenues, compared with the same quarter last year. Source
Japan premiums cut by reinsurance: Net earned premiums in yen were ¥240.3 billion, 2.0% lower; limited-pay products reaching paid-up status also contributed. Source
U.S. pretax earnings rose 31.5%: The U.S. pretax adjusted profit margin was 27.7%, against 21.7% a year earlier. Source
U.S. premiums rose 3.3%: Premiums rose on improved sales and persistency, per the company's description. Source
Corporate and Other pretax rose 4.3%: The cited drivers were higher reserve remeasurement gains and new reinsurance transactions. Source

“These results demonstrate our drive to execute our strategy and create long-term value for our shareholders.”
Daniel P. Amos, Chairman and Chief Executive Officer

Products and sales

Japan sales fell 4.0%: Nine-month Japan sales rose 3.0% to ¥56.1 billion, or $354 million; Tsumitasu and Anshin Palette grew in the quarter. Source
U.S. sales rose 3.5%: Nine-month U.S. sales were $1.1 billion, up 3.1%. Source
Japan products span life stages: Management listed Anshin Palette, Miraito and Tsumitasu as Japan products addressing customers at different life stages. Source

Investment income

Japan yen investment income rose 3.7%: Lower floating-rate income and higher expenses offset part of the increase. Source
U.S. investment income declined 0.9%: Total adjusted revenues for the U.S. segment rose 3.1% over the same period. Source
Corporate investment income lower: Corporate and Other income from investments fell, with lower short-term balances and a smaller hedge program cited. Source

“We continue to deploy our balanced approach of investing in growth and driving long-term value while being there for our policyholders when they need us most.”
Daniel P. Amos, Chairman and Chief Executive Officer

Costs and benefits

Corporate expenses rose: Other adjusted expenses rose 23.3% to $148 million; interest expense rose 21.8% to $67 million. Source
Corporate nine-month earnings lower: Corporate and Other nine-month pretax adjusted earnings were $62 million, against $132 million. Source
Japan benefits rose on lower gains: The Japan pretax decline reflected higher benefits, as reserve remeasurement gains were lower than a year earlier. Source

Capital, strategy and returns

Capital returned $1.1 billion: Share repurchases were the larger part of the total; dividends were $305 million. Source
Adjusted book value excluding FX lower: The measure excludes accumulated other comprehensive income and cumulative currency remeasurement gains and losses. Source
Adjusted return on equity 23.7%: Annualized, excluding foreign currency remeasurement; the U.S. GAAP return figure is reported separately and is lower. Source
Reinsurance strategy shows in Corporate: Management said the reinsurance strategy affects Japan's reported results, which are included in Corporate and Other. Source
Focus on profitable growth: Management said its focus remains on profitable growth and capital deployment. Source

Coming up, as management said on 4 November 2026

Dividend payment and record dates: The fourth quarter dividend is payable December 1, 2026 to holders of record at the close of business on November 18, 2026. Source

Figures management reported

Figure	Reported
Investment income Source	$957 million adjusted net investment income, third quarter (down 5.1%)
Book value per share Source	$59.08 per share at September 30, 2026

Risks management discussed

Financial: Investment losses of $1.1 billion, including $842 million from sales and redemptions, reduced third-quarter net earnings. Source
Financial: A $51 million tax capital loss valuation allowance was set against part of the deferred tax assets. Source
External: Weaker yen cut adjusted earnings per share by $0.03 in the quarter. Source
Demand: Japan sales were lower against a high prior-year sales base for Miraito cancer insurance. Source

Earlier plans management reported on

Met: The Board aimed to extend the dividend increase record in 2026; the third quarter release reports 44 consecutive years reached.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Aflac Incorporated Announces Third Quarter 2026 Results,

Declares Fourth Quarter Dividend

COLUMBUS, Ga. - November 4, 2026 - Aflac Incorporated (NYSE: AFL) today reported its third quarter results.

For the Quarter

Net earnings were $303 million, or $0.61 per diluted share, compared with $1.6 billion, or $3.08 per diluted share a year ago.
Adjusted earnings* were $1.2 billion, compared with $1.3 billion a year ago, reflecting a decrease of 8.5%.
Adjusted earnings per diluted share* decreased 2.4% to $2.43.
Adjusted earnings benefited from reserve remeasurement gains of $453 million.
Annualized return on average shareholders’ equity was 4.1%.
Annualized adjusted return on equity excluding foreign currency remeasurement* was 23.7%.
The Company returned $1.1 billion to shareholders, consisting of $804 million in share repurchase and $305 million in dividends.
Aflac Incorporated reached the milestone of 44 consecutive years of dividend increases with the fourth quarter declaration of $0.61.
Aflac Japan ceded approximately ¥500 billion of reserves on an FSA basis associated with cancer insurance policies to Aflac Re Bermuda.

Commenting on the company’s results, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos stated: "Aflac delivered solid adjusted earnings for the quarter and for the first nine months. These results demonstrate our drive to execute our strategy and create long-term value for our shareholders. In Japan, we have continued to address our customers' needs at different life stages through products including Anshin Palette (medical insurance), Miraito (cancer insurance) and Tsumitasu (savings-type life insurance). In addition, the Aflac Japan results reflect the impact of our reinsurance strategy on the income statement included within Corporate and Other results, where Aflac Re Bermuda is consolidated. In the U.S., our focus remains on meeting the evolving needs of employers and their employees with supplemental health products and related benefits.

"We remain focused on more profitable growth and the tactical, opportunistic deployment of capital. We treasure our 2026 milestone of 44 consecutive years of dividend increases. We continue to deploy our balanced approach of investing in growth and driving long-term value while being there for our policyholders when they need us most."

AFLAC INCORPORATED CONSOLIDATED RESULTS

	3Q26	3Q25	% Change
AFLAC INCORPORATED SELECTED OPERATING RESULTS FOR THE QUARTER
(IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
Total revenues	$3,271	$4,740	(31.0)%
Net earnings	303	1,639	(81.5)%
Adjusted earnings*	1,214	1,327	(8.5)%
Net earnings per share (diluted)	0.61	3.08	(80.2)%
Adjusted earnings per share (diluted)*	2.43	2.49	(2.4)%
Total shareholders' equity	29,283	28,688	2.1%
Total liabilities and shareholders' equity	113,511	122,306	(7.2)%

Total revenues were $3.3 billion in the third quarter of 2026, compared with $4.7 billion in the third quarter of 2025. Net earnings were $303 million, or $0.61 per diluted share, compared with $1.6 billion, or $3.08 per diluted share a year ago, primarily due to realized losses associated with the strategic repositioning of the portfolio during the third quarter. In addition, net earnings in the third quarter of 2026 included a $51 million, or $0.10 per diluted share, tax capital loss valuation allowance established against a portion of the Company's deferred tax assets associated with tax capital loss carryforwards. Net earnings in the third quarter of 2026 also included net investment losses of $1.1 billion, or $2.15 per diluted share, compared with net investment gains of $275 million, or $0.52 per diluted share a year ago. These net investment losses include net losses from sales and redemptions of $842 million; net losses of $146 million on certain derivatives and foreign currency activities; $102 million of current expected credit losses (CECL); and impairments of $1 million; offset by a $19 million gain from an increase in the fair value of equity securities.

Adjusted earnings* in the third quarter were $1.2 billion, compared with $1.3 billion in the third quarter of 2025, reflecting a decrease of 8.5%. Adjusted earnings per diluted share* decreased 2.4% to $2.43 in the quarter. The average yen/dollar exchange rate in the third quarter of 2026 was 158.49, or 6.8% weaker than the average rate of 147.68 in the third quarter of 2025. The weaker yen/dollar exchange rate had a negative $0.03 impact on adjusted earnings per share.

Shareholders’ equity was $29.3 billion, or $59.08 per share, at September 30, 2026, compared with $28.7 billion, or $54.57 per share, at September 30, 2025. Shareholders’ equity at the end of the third quarter included a cumulative increase of $12.3 billion for the effect of the change in discount rate assumptions on insurance reserves, compared with a corresponding cumulative increase of $6.8 billion at September 30, 2025 and a net unrealized loss on investment securities and derivatives of $5.0 billion, compared with a net unrealized loss of $1.7 billion at September 30, 2025. Shareholders’ equity at the end of the third quarter also included an unrealized foreign currency translation loss of $4.9 billion, compared with an unrealized foreign currency translation loss of $4.5 billion at September 30, 2025.

For the first nine months of 2026, total revenues were down 4.6% to $11.7 billion, compared with $12.3 billion in the first nine months of 2025. Net earnings were $2.1 billion, or $4.24 per diluted share, compared with $2.3 billion, or $4.21 per diluted share, for the first nine months of 2025. Adjusted earnings for the first nine months of 2026 were $3.0 billion, or $5.92 per diluted share, compared with $3.2 billion, or $5.92 per diluted share, in 2025. For the first nine months, the average exchange rate was 158.28, or 6.5% weaker than the rate of 148.03 a year ago. Excluding the negative impact of $0.10 per share from the weaker yen/dollar exchange rate, adjusted earnings per diluted share increased 1.7% to $6.02 for the first nine months of 2026.

Shareholders’ equity excluding accumulated other comprehensive income (AOCI), or adjusted book value,* was $26.9 billion, or $54.21 per share at September 30, 2026, compared with $28.0 billion, or $53.33 per share, at September 30, 2025. Adjusted book value excluding foreign currency remeasurement* was $20.2 billion, or $40.73 per share at September 30, 2026, compared with $22.9 billion, or $43.52 per share, at September 30, 2025. The annualized adjusted return on equity excluding foreign currency remeasurement* in the third quarter was 23.7%.

AFLAC JAPAN

	3Q26	3Q25	% Change	3Q26	3Q25	% Change
AFLAC JAPAN SELECTED OPERATING RESULTS FOR THE QUARTER
(IN BILLIONS OF YEN AND MILLIONS OF DOLLARS)
Total net earned premiums	¥240	¥245	(2.0)%	$1,508	$1,663	(9.3)%
Yen-denominated investment income	33	32	2.2%	205	217	(5.5)%
U.S. dollar-denominated investment income	71	68	4.0%	445	461	(3.5)%
Adjusted net investment income	102	98	3.7%	639	665	(3.9)%
Total adjusted revenues	343	344	(0.3)%	2,156	2,335	(7.7)%
Total benefits and claims, net	118	96	22.5%	737	656	12.3%
Total adjusted expenses	73	68	6.6%	458	463	(1.1)%
Pretax adjusted earnings	152	180	(15.2)%	961	1,216	(21.0)%
			Change in bps
Premium persistency (12-mo. rolling)	92.9%	93.3%	(40)
Total benefits and claims, net / Total net earned premiums	49.2%	39.3%	990
Total adjusted expenses / Total adjusted revenues	21.2%	19.8%	140
Pretax adjusted earnings / Total adjusted revenues	44.4%	52.2%	(780)

In yen terms, Aflac Japan's net earned premiums were ¥240.3 billion for the quarter, or 2.0% lower than a year ago, mainly due to the combined impact of an external reinsurance transaction effective during the first quarter and an internal reinsurance transaction on blocks of cancer insurance effective during the third quarter, as well as limited pay products reaching paid-up status. Adjusted net investment income increased 3.7% to ¥101.6 billion, primarily due to higher fixed-rate income and higher income on U.S. dollar-denominated assets from the weakening yen; offset by lower floating-rate income and higher expenses. Total adjusted revenues in yen declined 0.3% to ¥343.2 billion. Pretax adjusted earnings in yen for the quarter declined 15.2% on a reported basis to ¥152.3 billion, primarily driven by higher benefits due to lower reserve remeasurement gains as a result of unlocking actuarial assumptions, compared to the previous year. Pretax adjusted earnings decreased 17.9% on a currency-neutral basis. The pretax adjusted profit margin for the Japan segment was 44.4%, compared with 52.2% a year ago.

For the first nine months, net earned premiums in yen were ¥732.1 billion, or 3.2% lower than a year ago. Adjusted net investment income increased 1.5% to ¥292.7 billion. Total adjusted revenues in yen were down 1.9% to ¥1.0 trillion. Pretax adjusted earnings were ¥389.7 billion, or 3.5% lower than a year ago. As a result, the pretax adjusted profit margin for the Japan segment was 37.9%, compared with 38.5% a year ago.

In dollar terms, net earned premiums decreased 9.3% to $1.5 billion in the third quarter. Adjusted net investment income decreased 3.9% to $639 million. Total adjusted revenues declined by 7.7% to $2.2 billion. Pretax adjusted earnings declined 21.0% to $961 million.

For the first nine months, net earned premiums in dollars were $4.6 billion, or 9.5% lower than a year ago. Adjusted net investment income decreased 5.3% to $1.8 billion. Total adjusted revenues were down 8.3% to $6.5 billion. Pretax adjusted earnings were $2.5 billion, or 9.8% lower than a year ago.

For the quarter, total new annualized premium sales (sales) decreased 4.0% to ¥18.8 billion, or $118 million, reflecting high prior-year sales for Miraito cancer insurance following its launch in March 2025, partially offset by solid growth in the Tsumitasu savings-type life insurance refreshed in the second quarter of 2026 and Anshin Palette, the medical insurance product launched in December 2025. For the first nine months, sales increased 3.0% to ¥56.1 billion, or $354 million.

AFLAC U.S.

	3Q26	3Q25	% Change
AFLAC U.S. SELECTED OPERATING RESULTS FOR THE QUARTER
(IN MILLIONS OF DOLLARS)
Total net earned premiums	$1,544	$1,495	3.3%
Adjusted net investment income	212	214	(0.9)%
Total adjusted revenues	1,781	1,728	3.1%
Total benefits and claims, net	629	681	(7.6)%
Total adjusted expenses	659	672	(1.9)%
Pretax adjusted earnings	493	375	31.5%
			Change in bps
Premium persistency (12-mo. rolling)	79.7%	79.0%	70
Total benefits and claims, net / Total net earned premiums	40.7%	45.6%	(490)
Total adjusted expenses / Total adjusted revenues	37.0%	38.9%	(190)
Pretax adjusted earnings / Total adjusted revenues	27.7%	21.7%	600

Aflac U.S. net earned premiums increased 3.3% to $1.5 billion in the third quarter compared to the prior year, reflecting improved sales and strong persistency. Adjusted net investment income decreased 0.9% to $212 million. Total adjusted revenues were up 3.1% to $1.8 billion. Pretax adjusted earnings were $493 million, 31.5% higher than a year ago, primarily driven by lower benefits from higher reserve remeasurement gains as a result of unlocking actuarial assumptions and higher premiums as well as lower expenses. The pretax adjusted profit margin for the U.S. segment was 27.7%, compared with 21.7% a year ago.

For the first nine months, net earned premiums increased 3.0% to $4.6 billion. Adjusted net investment income remained relatively flat at $621 million. Total adjusted revenues were up 3.0% to $5.3 billion. Pretax adjusted earnings were $1.2 billion, 9.4% higher than a year ago. As a result, the pretax adjusted profit margin for the U.S. segment was 23.0%, compared with 21.7% a year ago.

Aflac U.S. sales increased 3.5% in the quarter to $403 million, primarily benefiting from sales of network dental as well as group life and disability products. For the first nine months, total new sales increased 3.1% to $1.1 billion.

CORPORATE AND OTHER

	3Q26	3Q25	% Change
CORPORATE AND OTHER SELECTED OPERATING RESULTS
(IN MILLIONS OF DOLLARS)
Total net earned premiums	$252	$214	17.8%
Adjusted net investment income	106	130	(18.5)%
Total adjusted revenues	360	343	5.0%
Total benefits and claims, net	73	99	(26.3)%
Interest expense	67	55	21.8%
Other adjusted expenses	148	120	23.3%
Total benefits and adjusted expenses	288	274	5.1%
Pretax adjusted earnings	72	69	4.3%

For the quarter, total adjusted revenues increased 5.0% to $360 million. Pretax adjusted earnings were $72 million, compared with $69 million last year, primarily driven by higher reserve remeasurement gains as a result of unlocking actuarial assumptions and new reinsurance transactions. These earnings results were impacted by higher total adjusted expenses, as well as lower adjusted net investment income from reduced short-term asset balances and a smaller hedge program.

For the first nine months, total adjusted revenues decreased 6.2% to $943 million. Pretax adjusted earnings were $62 million, compared with $132 million a year ago.

SHAREHOLDER DIVIDEND

The board of directors declared the fourth quarter dividend of $0.61 per share, payable on December 1, 2026 to shareholders of record at the close of business on November 18, 2026.

*See Non-U.S. GAAP Financial Measures section for an explanation of foreign exchange and its impact on the financial statements and definitions of the non-U.S. GAAP financial measures used in this earnings release, as well as a reconciliation of such non-U.S. GAAP financial measures to the most comparable U.S. GAAP financial measures.

ABOUT AFLAC INCORPORATED

Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for more than seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products. In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force. The company takes pride in being there for its policyholders when they need us most, as well as being included in the World’s Most Ethical Companies by Ethisphere for 20 consecutive years (2026) and Fortune’s World’s Most Admired Companies for 25 years (2026). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/espanol.

LIMRA 2025 U.S. Supplemental Health Insurance Total Market Report

As of March 31, 2025, Aflac estimates based on company data

Aflac Incorporated periodically provides information for investors on its corporate website, investors.aflac.com, including information regarding its commitment to corporate social responsibility and sustainability, press releases, financial information, SEC filings, corporate governance materials, annual meeting information, and other information that may be important to investors.

A copy of Aflac’s financial supplement for the quarter can be found at investors.aflac.com.

Aflac Incorporated will webcast its third quarter 2026 earnings conference call on Thursday, November 5, 2026 at 8:00 a.m. (ET).

Note: Tables within this document may not foot due to rounding.

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED - IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
THREE MONTHS ENDED SEPTEMBER 30,		2026		2025	% Change
Total revenues	$3,271		$4,740		(31.0)%
Benefits and claims, net	1,439		1,436		0.2
Total acquisition and operating expenses	1,332		1,310		1.7
Earnings before income taxes	500		1,994		(74.9)
Income taxes	197		355
Net earnings	$303		$1,639		(81.5)%
Net earnings per share - basic	$0.61		$3.09		(80.3)%
Net earnings per share - diluted	0.61		3.08		(80.2)
Shares used to compute earnings per share (000):
Basic	496,976		530,050		(6.2)%
Diluted	498,684		532,015		(6.3)
Dividends paid per share	$0.61		$0.58		5.2%

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED INCOME STATEMENT
(UNAUDITED - IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
NINE MONTHS ENDED SEPTEMBER 30,		2026		2025	% Change
Total revenues	$11,734		$12,298		(4.6)%
Benefits and claims, net	5,123		5,391		(5.0)
Total acquisition and operating expenses	3,891		3,946		(1.4)
Earnings before income taxes	2,720		2,961		(8.1)
Income taxes	573		694
Net earnings	$2,147		$2,267		(5.3)%
Net earnings per share - basic	$4.25		$4.22		0.7%
Net earnings per share - diluted	4.24		4.21		0.7
Shares used to compute earnings per share (000):
Basic	504,664		537,095		(6.0)%
Diluted	506,285		539,052		(6.1)
Dividends paid per share	$1.83		$1.74		5.2%

AFLAC INCORPORATED AND SUBSIDIARIES CONDENSED BALANCE SHEET
(UNAUDITED - IN MILLIONS, EXCEPT FOR SHARE AMOUNTS)
SEPTEMBER 30,		2026		2025	% Change
Assets:
Total investments and cash	$100,433		$109,516		(8.3)%
Deferred policy acquisition costs	9,186		9,216		(0.3)
Other assets	3,892		3,574		8.9
Total assets	$113,511		$122,306		(7.2)%
Liabilities and shareholders’ equity:
Policy liabilities	$63,517		$74,737		(15.0)%
Notes payable and lease obligations	8,900		8,685		2.5
Other liabilities	11,811		10,196		15.8
Shareholders’ equity	29,283		28,688		2.1
Total liabilities and shareholders’ equity	$113,511		$122,306		(7.2)%
Shares outstanding at end of period (000)	495,651		525,710		(5.7)%

NON-U.S. GAAP FINANCIAL MEASURES

This document includes references to the Company’s financial performance measures which are not calculated in accordance with United States generally accepted accounting principles (U.S. GAAP) (non-U.S. GAAP). The financial measures exclude items that the Company believes may obscure the underlying fundamentals and trends in insurance operations because they tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with insurance operations.

Due to the size of Aflac Japan, where the functional currency is the Japanese yen, fluctuations in the yen/dollar exchange rate can have a significant effect on reported results. In periods when the Japanese yen weakens, translating Japanese yen into U.S. dollars results in fewer U.S. dollars being reported. When the Japanese yen strengthens, translating Japanese yen into U.S. dollars results in more U.S. dollars being reported. Consequently, Japanese yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while Japanese yen strengthening has the effect of magnifying current period results in relation to the comparable prior period. A significant portion of the Company’s business is conducted in Japanese yen and never converted into U.S. dollars but translated into U.S. dollars for U.S. GAAP reporting purposes, which results in foreign currency impact to earnings, cash flows and book value on a U.S. GAAP basis. Management evaluates the Company's financial performance both including and excluding the impact of foreign currency translation to monitor, respectively, cumulative currency impacts and the currency-neutral operating performance over time. The average yen/dollar exchange rate is based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM).

The company defines the non-U.S. GAAP financial measures included in this earnings release as follows:

Adjusted earnings are adjusted revenues less benefits and adjusted expenses. Adjusted earnings per share (basic or diluted) are the adjusted earnings for the period divided by the weighted average outstanding shares (basic or diluted) for the period presented. The adjustments to both revenues and expenses account for certain items that are outside of 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. Adjusted revenues are U.S. GAAP total revenues excluding adjusted net investment gains and losses. 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. Management uses adjusted earnings and adjusted earnings per diluted share to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of these financial measures is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The most comparable U.S. GAAP financial measures for adjusted earnings and adjusted earnings per share (basic or diluted) are net earnings and net earnings per share, respectively.
Adjusted earnings excluding current period foreign currency impact are computed using the average foreign exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign exchange rate changes. Adjusted earnings per diluted share excluding current period foreign currency impact is adjusted earnings excluding current period foreign currency impact divided by the weighted average outstanding diluted shares for the period presented. The Company considers adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact important because a significant portion of the Company's business is conducted in Japan and foreign exchange rates are outside management’s control; therefore, the Company believes it is important to understand the impact of translating foreign currency (primarily Japanese yen) into U.S. dollars. The most comparable U.S. GAAP financial measures for adjusted earnings excluding current period foreign currency impact and adjusted earnings per diluted share excluding current period foreign currency impact are net earnings and net earnings per share, respectively.
Adjusted return on equity is annualized adjusted earnings divided by average shareholders’ equity, excluding accumulated other comprehensive income. Management uses adjusted return on equity to evaluate the financial performance of the Company’s insurance operations on a consolidated basis and believes that a presentation of this financial measure is vitally important to an understanding of the underlying profitability drivers and trends of the Company’s insurance business. The Company considers adjusted return on equity important as it excludes components of accumulated other comprehensive income, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity is return on equity as determined using annualized net earnings and average total shareholders’ equity.
Adjusted return on equity excluding foreign currency remeasurement is annualized adjusted earnings divided by average shareholders’ equity, excluding both accumulated other comprehensive income and the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The Company considers adjusted return on equity excluding foreign currency remeasurement important because it excludes both accumulated other comprehensive income and the cumulative foreign currency remeasurement gains/losses, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measure for adjusted return on equity excluding foreign currency remeasurement is return on equity as determined using annualized net earnings and average total shareholders’ equity.
Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign currency exchange risks. These amortized hedge costs/income are estimated at the inception of the derivatives based on the specific terms of each contract and are recognized on a straight-line basis over the contractual term of the derivative. The Company believes that amortized hedge costs/income measure the periodic currency risk management costs/income related to hedging certain foreign currency exchange risks and are an important component of net investment income. There is no comparable U.S. GAAP financial measure for amortized hedge costs/income.
Adjusted book value is the U.S. GAAP book value (representing total shareholders’ equity), less accumulated other comprehensive income as recorded on the U.S. GAAP balance sheet. Adjusted book value per common share is adjusted book value at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value and adjusted book value per common share important as they exclude accumulated other comprehensive income, which fluctuates due to market movements that are outside management’s control. The most comparable U.S. GAAP financial measures for adjusted book value and adjusted book value per common share are total book value and total book value per common share, respectively.
Adjusted book value excluding foreign currency remeasurement is the U.S. GAAP book value (representing total shareholders’ equity), less accumulated other comprehensive income as recorded on the U.S. GAAP balance sheet and excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. Adjusted book value excluding foreign currency remeasurement per common share is adjusted book value excluding foreign currency remeasurement at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value excluding foreign currency remeasurement and adjusted book value excluding foreign currency remeasurement per common share important as they exclude both accumulated other comprehensive income and the cumulative foreign currency remeasurement gains/losses, which fluctuate due to market movements that are outside management's control. The most comparable U.S. GAAP financial measures for adjusted book value excluding foreign currency remeasurement and adjusted book value excluding foreign currency remeasurement per common share are total book value and total book value per common share, respectively.
Adjusted net investment income is net investment income adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, and ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are reclassified from net investment gains and losses to net investment income. The Company considers adjusted net investment income important because it provides a more comprehensive understanding of the costs and income associated with the Company’s investments and related hedging strategies. The most comparable U.S. GAAP financial measure for adjusted net investment income is net investment income.
Adjusted net investment gains and losses are net investment gains and losses adjusted for i) amortized hedge cost/income related to foreign currency exposure management strategies and certain derivative activity, ii) net interest income/expense from foreign currency and interest rate derivatives associated with certain investment strategies, which are both reclassified to net investment income, and iii) the impact of interest from derivatives associated with notes payable, which is reclassified to interest expense as a component of total adjusted expenses. The Company considers adjusted net investment gains and losses important as it represents the remainder amount that is considered outside management’s control, while excluding the components that are within management’s control and are accordingly reclassified to net investment income and interest expense. The most comparable U.S. GAAP financial measure for adjusted net investment gains and losses is net investment gains and losses.

RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED - IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
THREE MONTHS ENDED SEPTEMBER 30,		2026		2025	% Change
Net earnings	$303		$1,639		(81.5)%
Items impacting net earnings:
Adjusted net investment (gains) losses	1,026		(335)
Other and non-recurring (income) loss	-		1
Income tax (benefit) expense on items excluded from adjusted earnings	(166)		22
Tax valuation allowance	51		-
Adjusted earnings	1,214		1,327		(8.5)%
Current period foreign currency impact	14			N/A
Adjusted earnings excluding current period foreign currency impact	$1,228		$1,327		(7.5)%
Net earnings per diluted share	$0.61		$3.08		(80.2)%
Items impacting net earnings:
Adjusted net investment (gains) losses	2.06		(0.63)
Other and non-recurring (income) loss	-		-
Income tax (benefit) expense on items excluded from adjusted earnings	(0.33)		0.04
Tax valuation allowance	0.10		-
Adjusted earnings per diluted share	2.43		2.49		(2.4)%
Current period foreign currency impact	0.03			N/A
Adjusted earnings per diluted share excluding current period foreign currency impact	$2.46		$2.49		(1.2)%

Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.

Amounts excluding current period foreign currency impact are computed using the average foreign currency exchange rate for the comparable prior-year period, which eliminates fluctuations driven solely by foreign currency exchange rate changes.

RECONCILIATION OF NET EARNINGS TO ADJUSTED EARNINGS
(UNAUDITED - IN MILLIONS, EXCEPT FOR PER-SHARE AMOUNTS)
NINE MONTHS ENDED SEPTEMBER 30,		2026		2025	% Change
Net earnings	$2,147		$2,267		(5.3)%
Items impacting net earnings:
Adjusted net investment (gains) losses	1,029		966
Other and non-recurring (income) loss	-		54
Income tax (benefit) expense on items excluded from adjusted earnings	(229)		(97)
Tax valuation allowance	51		-
Adjusted earnings	2,998		3,190		(6.0)%
Current period foreign currency impact	49			N/A
Adjusted earnings excluding current period foreign currency impact	$3,047		$3,190		(4.5)%
Net earnings per diluted share	$4.24		$4.21		0.7%
Items impacting net earnings:
Adjusted net investment (gains) losses	2.03		1.79
Other and non-recurring (income) loss	-		0.10
Income tax (benefit) expense on items excluded from adjusted earnings	(0.45)		(0.18)
Tax valuation allowance	0.10		-
Adjusted earnings per diluted share	5.92		5.92		- %
Current period foreign currency impact	0.10			N/A
Adjusted earnings per diluted share excluding current period foreign currency impact	$6.02		$5.92		1.7%

Prior period foreign currency impact reflected as “N/A” to isolate change for current period only.

RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED - IN MILLIONS)
THREE MONTHS ENDED SEPTEMBER 30,		2026		2025	% Change
Net investment (gains) losses	$1,072		$(275)		489.8%
Items impacting net investment (gains) losses:
Amortized hedge costs	(11)		(13)
Amortized hedge income	14		20
Net interest income (expense) from derivatives associated with certain investment strategies	(49)		(66)
Impact of interest from derivatives associated with notes payable	-		(1)
Adjusted net investment (gains) losses	$1,026		$(335)		406.3%

Amounts are included with interest expenses that are a component of adjusted expenses.

RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED - IN MILLIONS)
THREE MONTHS ENDED SEPTEMBER 30,		2026		2025	% Change
Net investment income	$1,003		$1,067		(6.0)%
Items impacting net investment income:
Amortized hedge costs	(11)		(13)
Amortized hedge income	14		20
Net interest income (expense) from derivatives associated with certain investment strategies	(49)		(66)
Adjusted net investment income	$957		$1,008		(5.1)%

RECONCILIATION OF NET INVESTMENT (GAINS) LOSSES TO ADJUSTED NET INVESTMENT (GAINS) LOSSES
(UNAUDITED - IN MILLIONS)
NINE MONTHS ENDED SEPTEMBER 30,		2026		2025	% Change
Net investment (gains) losses	$1,176		$1,109		6.0%
Items impacting net investment (gains) losses:
Amortized hedge costs	(38)		(31)
Amortized hedge income	51		80
Net interest income (expense) from derivatives associated with certain investment strategies	(160)		(195)
Impact of interest from derivatives associated with notes payable	-		3
Adjusted net investment (gains) losses	$1,029		$966		6.5%

Amounts are included with interest expenses that are a component of adjusted expenses.

RECONCILIATION OF NET INVESTMENT INCOME TO ADJUSTED NET INVESTMENT INCOME
(UNAUDITED - IN MILLIONS)
NINE MONTHS ENDED SEPTEMBER 30,		2026		2025	% Change
Net investment income	$2,943		$3,103		(5.2)%
Items impacting net investment income:
Amortized hedge costs	(38)		(31)
Amortized hedge income	51		80
Net interest income (expense) from derivatives associated with certain investment strategies	(160)		(195)
Adjusted net investment income	$2,796		$2,957		(5.4)%

RECONCILIATION OF U.S. GAAP BOOK VALUE TO ADJUSTED BOOK VALUE
(EXCLUDING FOREIGN CURRENCY REMEASUREMENT)
(UNAUDITED - IN MILLIONS, EXCEPT FOR SHARE AND PER-SHARE AMOUNTS)
SEPTEMBER 30,		2026		2025	% Change
U.S. GAAP book value	$29,283		$28,688
Less:
Unrealized foreign currency translation gains (losses)	(4,925)		(4,504)
Unrealized gains (losses) on securities and derivatives	(5,011)		(1,717)
Effect of changes in discount rate assumptions	12,264		6,832
Pension liability adjustment	85		42
Total AOCI	2,413		653
Adjusted book value	$26,870		$28,035
Less:
Foreign currency remeasurement gains (losses)	6,681		5,157
Adjusted book value excluding foreign currency remeasurement	$20,189		$22,878
Number of outstanding shares at end of period (000)	495,651		525,710
U.S. GAAP book value per common share	$59.08		$54.57		8.3%
Less:
Unrealized foreign currency translation gains (losses) per common share	(9.94)		(8.57)
Unrealized gains (losses) on securities and derivatives per common share	(10.11)		(3.27)
Effect of changes in discount rate assumptions per common share	24.74		13.00
Pension liability adjustment per common share	0.17		0.08
Total AOCI per common share	4.87		1.24
Adjusted book value per common share	$54.21		$53.33		1.7%
Less:
Foreign currency remeasurement gains (losses) per common share	13.48		9.81
Adjusted book value excluding foreign currency remeasurement per common share	$40.73		$43.52		(6.4)%

RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)
THREE MONTHS ENDED SEPTEMBER 30,		2026		2025
U.S. GAAP ROE - Net earnings	4.1%		23.5%
Impact of excluding unrealized foreign currency translation gains (losses)	(0.8)		(5.4)
Impact of excluding unrealized gains (losses) on securities and derivatives	(0.6)		(2.2)
Impact of excluding effect of changes in discount rate assumptions	1.8		7.7
Impact of excluding pension liability adjustment	-		0.1
Impact of excluding AOCI	0.4		0.1
U.S. GAAP ROE - less AOCI	4.4		23.5
Differences between adjusted earnings and net earnings	13.4		(4.5)
Adjusted ROE - reported	17.8		19.1
Impact of excluding gains (losses) associated with foreign currency remeasurement	5.9			4.0
Adjusted ROE, excluding foreign currency remeasurement	23.7		23.1

U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.

See separate reconciliation of net earnings to adjusted earnings.

Impact of gains/losses associated with foreign currency remeasurement is calculated by excluding the cumulative (beginning January 1, 2021) foreign currency gains/losses associated with i) foreign currency remeasurement and ii) sales and redemptions of invested assets. The impact is the difference of adjusted return on equity - reported compared with adjusted return on equity, excluding from shareholders' equity, gains/losses associated with foreign currency remeasurement.

RECONCILIATION OF U.S. GAAP RETURN ON EQUITY (ROE) TO ADJUSTED ROE
(EXCLUDING IMPACT OF FOREIGN CURRENCY)
NINE MONTHS ENDED SEPTEMBER 30,		2026		2025
U.S. GAAP ROE - Net earnings	9.7%		11.0%
Impact of excluding unrealized foreign currency translation gains (losses)	(1.8)		(1.6)
Impact of excluding unrealized gains (losses) on securities and derivatives	(1.2)		(0.3)
Impact of excluding effect of changes in discount rate assumptions	3.7		1.5
Impact of excluding pension liability adjustment	-		-
Impact of excluding AOCI	0.7		(0.4)
U.S. GAAP ROE - less AOCI	10.4		10.6
Differences between adjusted earnings and net earnings	4.1		4.3
Adjusted ROE - reported	14.6		14.9
Impact of excluding gains (losses) associated with foreign currency remeasurement	4.3			3.5
Adjusted ROE, excluding foreign currency remeasurement	18.9		18.4

U.S. GAAP ROE is calculated by dividing net earnings (annualized) by average shareholders' equity.

See separate reconciliation of net earnings to adjusted earnings.

EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS
(SELECTED PERCENTAGE CHANGES, UNAUDITED)
THREE MONTHS ENDED SEPTEMBER 30, 2026	Including Currency Changes	ExcludingCurrencyChanges
Net earned premiums	(2.0)%	2.1%
Adjusted net investment income	(5.1)	(3.3)
Total benefits and expenses	0.9	6.0
Adjusted earnings	(8.5)	(7.5)
Adjusted earnings per diluted share	(2.4)	(1.2)

Refer to previously defined adjusted earnings, adjusted earnings per diluted share, and adjusted net investment income.

Amounts excluding currency changes were determined using the same foreign currency exchange rate for the current period as the comparable period in the prior year, which eliminates dollar-based fluctuations driven solely from currency rate changes.

Net of reinsurance

EFFECT OF FOREIGN CURRENCY ON ADJUSTED RESULTS
(SELECTED PERCENTAGE CHANGES, UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30, 2026	Including Currency Changes	ExcludingCurrencyChanges
Net earned premiums	(3.5)%	0.1%
Adjusted net investment income	(5.4)	(4.0)
Total benefits and expenses	(2.9)	0.9
Adjusted earnings	(6.0)	(4.5)
Adjusted earnings per diluted share	0.0	1.7

Refer to previously defined adjusted earnings and adjusted earnings per diluted share, and adjusted net investment income.

Net of reinsurance

GLOSSARY OF OPERATIONAL MEASURES

The Company defines the operational measures included in this document as follows:

Operating ratios are used to evaluate the Company's financial condition and profitability. Examples include: (1) Ratios to total adjusted revenues, which present expenses as percentage of total revenues and (2) Ratios to total premium, including benefit ratio. Operating ratios include: Benefit Ratio and Expense Ratio.
New annualized premium sales are sometimes referred to as new sales or sales. An operating measure that is not reflected on the Company's financial statements. New annualized premium sales generally represent annual premiums on policies and riders the Company sold and incremental increases from policy conversions that would be collected over a 12-month period assuming the policies remain in force for that entire period. For Aflac Japan, new annualized premium sales are determined by applications submitted during the reporting period. For Aflac U.S., new annualized premium sales are determined by applications that are issued during the reporting period. Policy conversions are defined as the positive difference in the annualized premium when a policy upgrades in the current reporting period. The Company believes that this metric is a key indicator of the Company's future source of earnings.
Premium persistency is the percentage of premiums remaining in force at the end of a period, usually one year, and presented on a trailing 12-month average basis. For example, 95% persistency would mean that 95% of the premiums in force at the beginning of a period are still in force at the end of the period. The Company believes that this metric is a key driver of in force levels, which is a key measure of the size of the Company's business and future sources of earnings.

FORWARD-LOOKING INFORMATION

Forward-looking statements notice

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” to encourage companies to provide prospective information, so long as those informational statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those included in the forward-looking statements. Aflac Incorporated (the Parent Company) and its subsidiaries (collectively with the Parent Company, the Company) desire to take advantage of these provisions. This document contains cautionary statements identifying important factors that could cause actual results to differ materially from those projected herein, and in any other statements made by Company officials in communications with the financial community and contained in documents filed with or furnished to the Securities and Exchange Commission (SEC). Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Furthermore, forward-looking information is subject to numerous assumptions, risks and uncertainties. In particular, statements containing words such as “expect,” “anticipate,” “believe,” “goal,” “objective,” "strategy," “may,” “should,” “estimate,” “intend,” “project,” "future," “will,” “assume,” “potential,” “target,” "outlook," "continue" or similar words as well as specific projections of future results, generally qualify as forward-looking. The Company undertakes no obligation to update such forward-looking statements, except as may be required by law.

The Company cautions readers that the following factors, in addition to other factors mentioned from time to time, could cause actual results to differ materially from those contemplated by the forward-looking statements:

difficult conditions in global capital markets and the economy, including inflation
defaults and credit downgrades of investments
global fluctuations in interest rates and exposure to significant interest rate risk
concentration of business in Japan
limited availability of acceptable Japanese yen-denominated investments
foreign currency fluctuations in the yen/dollar exchange rate
differing interpretations applied to investment valuations
significant valuation judgments in determination of expected credit losses recorded on the Company's investments
decreases in the Company's financial strength or debt ratings
decline in creditworthiness of other financial institutions
the Company's ability to attract and retain qualified sales associates, brokers, employees, and distribution partners
deviations in actual experience from pricing and reserving assumptions
ability to continue to develop and implement improvements in information technology systems and on successful execution of revenue growth and expense management initiatives
interruption in telecommunication, information technology and other operational systems, or a failure to maintain the security, confidentiality, integrity or privacy of sensitive data residing on such systems, and uncertainty regarding the impact of the

incident involving unauthorized access to the Company’s network in June 2025

subsidiaries' ability to pay dividends to the Parent Company
inherent limitations to risk management policies and procedures
operational risks of third-party vendors
tax rates applicable to the Company may change
failure to comply with restrictions on policyholder privacy and information security
extensive regulation and changes in law or regulation by governmental authorities
competitive environment and ability to anticipate and respond to market trends
catastrophic events, including, but not limited to, epidemics, pandemics, tornadoes, hurricanes, earthquakes, tsunamis, war or other military action, major public health issues, terrorism or other acts of violence, and damage incidental to such events
ability to protect the Aflac brand and the Company's reputation
ability to effectively manage key executive succession
changes in accounting standards
level and outcome of litigation or regulatory inquiries
allegations or determinations of worker misclassification in the United States

Analyst and investor contact - David A. Young, 706.596.3264; 800.235.2667 or aflacir@aflac.com

Media contact - Ines Gutzmer, 762.207.7601 or igutzmer@aflac.com