AFLAC INC
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
AFL$124.06-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive SummaryCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive SummaryThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 47 previous paragraphs and 53 current paragraphs.
38 unchanged; 8 reworded; 7 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Total revenues were $7.6 billion in the first six months of 2025, compared with $10.6 billion in the first six months of 2024, primarily due to net investment losses of $1.4 billion in the first six months of 2025 compared with net investment gains of $1.6 billion in the first six months of 2024. Net earnings were $628 million, or $1.16 per diluted share, in the first six months of 2025, compared with $3.6 billion, or $6.35 per diluted share, in the first six months of 2024.
Current report
Net earnings in the first six months of 2025 included net investment losses of $1.4 billion, compared with net investment gains of $1.6 billion in the first six months of 2024. Net investment losses in the first six months of 2025 included $1.3 billion of net losses from certain derivative and foreign currency gains or losses; an increase in credit loss allowances of $113 million and $6 million of impairments; offset by $38 million of net gains from sales and redemptions and a $37 million gain from an increase in the fair value of equity securities.
Current report
Adjusted earnings(2) in the second quarter of 2025 were $957 million, or $1.78 per diluted share, compared with $1.0 billion, or $1.83 per diluted share in the second quarter of 2024. The stronger yen/dollar exchange rate positively impacted adjusted earnings per diluted share by $.04. Adjusted earnings(2) in the first six months of 2025 were $1.9 billion, or $3.43 per diluted share, compared with $2.0 billion, or $3.49 per diluted share, in the first six months of 2024. The stronger yen/dollar exchange rate positively impacted adjusted earnings per diluted share by $.03.
Current report
On June 12, 2025, the Company identified an incident involving unauthorized access to its network in the U.S. The Company promptly initiated its cybersecurity incident response protocols and believes that it contained the intrusion within hours. The Company’s business remains operational, and its systems were not affected by ransomware. The Company continues to serve its policyholders as it responds to this incident and can underwrite policies, review claims, and otherwise service customers as usual. The Company has engaged leading third-party cybersecurity experts to support the Company’s response to the incident.
Current report
The Company is aware of the exfiltration of certain data including claims information, health information, social security numbers and/or other personal information relating to a substantial number of customers, beneficiaries, employees, agents, and other individuals in the Company’s U.S. business. The Company is still in the process of validating the extent and nature of the files that were involved.
Current report
Based on the information currently available and the investigation to date, as of the date of this report, the Company has not determined that the incident is reasonably likely to have a material impact on the Company’s financial condition or results of operations. However, the Company’s investigation remains ongoing and as a result, it does not yet know the full impact of the cybersecurity incident, including how much of the financial impact will be covered by insurance. As a result of the cybersecurity incident, the Company has incurred certain costs and may, depending on future developments, incur additional costs, including but not limited to: costs to provide credit monitoring, identity theft protection, and Medical Shield to impacted individuals and maintain a call center related to the provision of such services; incident response costs; expenses arising from potential litigation, governmental investigations, or enforcement actions; expenses related to compliance, finance, and legal advisory services; elevated cybersecurity insurance premiums; and costs incurred in meeting evolving legal and regulatory requirements concerning cybersecurity governance, monitoring, and disclosure. The costs associated with the incident to date, including the cost to investigate and respond to the incident as well as related legal and other professional services, resulted in a slight increase to the Company's expenses and are recorded in the insurance and other expenses line in the consolidated statement of earnings.
Removed paragraphs (1)
Previous report
Adjusted earnings(2) in the first quarter of 2025 were $906 million, or $1.66 per diluted share, compared with $961 million, or $1.66 per diluted share, in the first quarter of 2024. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per diluted share by $.01.
Reworded paragraphs (8)
Previous wording
•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
Current wording
•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
Previous wording
MD&A is intended to inform the reader about matters affecting the financial condition and results of operations of Aflac Incorporated and its subsidiaries for the three-month periods ended March 31, 2025 and 2024, respectively. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, the following discussion should be read in conjunction with the consolidated financial statements and notes that are included in the Company's annual report on Form 10-K for the year ended December 31, 2024 (2024 Annual Report). In this MD&A, amounts may not foot due to rounding.
Current wording
MD&A is intended to inform the reader about matters affecting the financial condition and results of operations of Aflac Incorporated and its subsidiaries for the six-month periods ended June 30, 2025 and 2024, respectively. Results of operations for interim periods are not necessarily indicative of results for the entire year. As a result, the following discussion should be read in conjunction with the consolidated financial statements and notes that are included in the Company's annual report on Form 10-K for the year ended December 31, 2024 (2024 Annual Report). In this MD&A, amounts may not foot due to rounding.
Previous wording
Total revenues were $3.4 billion in the first quarter of 2025, compared with $5.4 billion in the first quarter of 2024, primarily due to net investment losses of $963 million in the first quarter of 2025 compared with net investment gains of $951 million in the first quarter of 2024. Net earnings were $29 million, or $.05 per diluted share, in the first quarter of 2025, compared with $1.9 billion, or $3.25 per diluted share, in the first quarter of 2024.
Current wording
Total revenues were $4.2 billion in the second quarter of 2025, compared with $5.1 billion in the second quarter of 2024, primarily due to net investment losses of $421 million in the second quarter of 2025 compared with net investment gains of $696 million in the second quarter of 2024. Net earnings were $599 million, or $1.11 per diluted share, in the second quarter of 2025, compared with $1.8 billion, or $3.10 per diluted share, in the second quarter of 2024.
Previous wording
Net earnings in the first quarter of 2025 included net investment losses of $963 million, compared with net investment gains of $951 million in the first quarter of 2024. Net investment losses in the first quarter of 2025 included $888 million of net losses from certain derivative and foreign currency gains or losses; $61 million of net losses on equity securities; an increase in credit loss allowances of $55 million; and $41 million of net gains from sales and redemptions.
Current wording
Net earnings in the second quarter of 2025 included net investment losses of $421 million, compared with net investment gains of $696 million in the second quarter of 2024. Net investment losses in the second quarter of 2025 included $452 million of net losses from certain derivative and foreign currency gains or losses; an increase in credit loss allowances of $58 million; $6 million of impairments and $3 million of net losses from sales and redemptions; offset by a $98 million gain from an increase in the fair value of equity securities.
Previous wording
The average yen/dollar exchange rate(1) for the three-month period ended March 31, 2025 was 152.40, or 2.4% weaker than the average yen/dollar exchange rate(1) of 148.67 for the same period in 2024.
Current wording
The average yen/dollar exchange rate(1) for the three-month period ended June 30, 2025 was 144.60, or 7.7% stronger than the average yen/dollar exchange rate(1) of 155.70 for the same period in 2024. The average yen/dollar exchange rate(1) for the six-month period ended June 30, 2025 was 148.32, or 2.7% stronger than the average yen/dollar exchange rate(1) of 152.30 for the same period in 2024.
Previous wording
In the first three months of 2025, Aflac Incorporated repurchased $900 million, or 8.5 million of its common shares. At March 31, 2025, the Company had 38.8 million remaining shares authorized for repurchase.
Current wording
In the first six months of 2025, Aflac Incorporated repurchased $1.7 billion, or 16.4 million of its common shares. At June 30, 2025, the Company had 30.9 million remaining shares authorized for repurchase.
Previous wording
Shareholders’ equity was $26.3 billion, or $48.55 per share, at March 31, 2025, compared with $26.1 billion, or $47.45 per share, at December 31, 2024. Shareholders’ equity at March 31, 2025 included a cumulative increase of $3.9 billion from the effect of changes in discount rate assumptions on insurance reserves, compared with a corresponding cumulative increase of $2.0 billion at December 31, 2024, and a net unrealized loss on investment securities and derivatives of $1.3 billion, compared with a net unrealized gain of $4 million at December 31, 2024. Shareholders’ equity at March 31, 2025 also included an unrealized foreign currency translation loss of $4.5 billion, compared with an unrealized foreign currency translation loss of $5.0 billion at December 31, 2024. The annualized return on average shareholders’ equity in the first quarter of 2025 was .4%.
Current wording
Shareholders’ equity was $27.2 billion, or $50.86 per share, at June 30, 2025, compared with $26.1 billion, or $47.45 per share, at December 31, 2024. Shareholders’ equity at June 30, 2025 included a cumulative increase of $5.6 billion from the effect of changes in discount rate assumptions on insurance reserves, compared with a corresponding cumulative increase of $2.0 billion at December 31, 2024, and a net unrealized loss on investment securities and derivatives of $1.8 billion, compared with a net unrealized gain of $4 million at December 31, 2024. Shareholders’ equity at June 30, 2025 also included an unrealized foreign currency translation loss of $4.3 billion, compared with an unrealized foreign currency translation loss of $5.0 billion at December 31, 2024. The annualized return on average shareholders’ equity in the second quarter of 2025 was 9.0%.
Previous wording
Shareholders’ equity excluding accumulated other comprehensive income (AOCI)(2) (adjusted book value) was $28.2 billion, or $51.98 per share, at March 31, 2025, compared with $29.1 billion, or $52.87 per share, at December 31, 2024. Adjusted book value excluding foreign currency remeasurement(2) was $23.1 billion, or $42.61 per share, at March 31, 2025, compared with $23.4 billion, or $42.46 per share, at December 31, 2024. The annualized adjusted return on equity (ROE) excluding foreign currency remeasurement(2) in the first quarter of 2025 was 15.6%.
Current wording
Shareholders’ equity excluding accumulated other comprehensive income (AOCI)(2) (adjusted book value) was $27.7 billion, or $51.78 per share, at June 30, 2025, compared with $29.1 billion, or $52.87 per share, at December 31, 2024. Adjusted book value excluding foreign currency remeasurement(2) was $23.6 billion, or $44.17 per share, at June 30, 2025, compared with $23.4 billion, or $42.46 per share, at December 31, 2024. The annualized adjusted return on equity (ROE) excluding foreign currency remeasurement(2) in the second quarter of 2025 was 16.4%.