AFLAC INC
For the period ended Sep 30, 2025. Filed Nov 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.
Sep 30, 2025 · Filed Nov 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 2025-06-30; filed 2025-08-05.
0000004977-25-000132
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive SummaryCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001628280-25-049279
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 53 previous paragraphs and 53 current paragraphs.
42 unchanged; 11 reworded; 0 added; 0 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.
Reworded paragraphs (11)
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 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.
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 nine-month periods ended September 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 $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.
Current wording
Total revenues were $4.7 billion in the third quarter of 2025, compared with $2.9 billion in the third quarter of 2024, primarily due to net investment gains of $275 million in the third quarter of 2025 compared with net investment losses of $1.4 billion in the third quarter of 2024. Net earnings were $1.6 billion, or $3.08 per diluted share, in the third quarter of 2025, compared with $(93) million, or $(.17) per diluted share, in the third quarter of 2024.
Previous wording
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 wording
Total revenues were $12.3 billion in the first nine months of 2025, compared with $13.5 billion in the first nine months of 2024, primarily due to net investment losses of $1.1 billion in the first nine months of 2025 compared with net investment gains of $239 million in the first nine months of 2024. Net earnings were $2.3 billion, or $4.21 per diluted share, in the first nine months of 2025, compared with $3.5 billion, or $6.23 per diluted share, in the first nine months of 2024.
Previous 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.
Current wording
Net earnings in the third quarter of 2025 included net investment gains of $275 million, compared with net investment losses of $1.4 billion in the third quarter of 2024. Net investment gains in the third quarter of 2025 included $285 million of net gains from certain derivative and foreign currency gains or losses; $33 million of net gains from sales and redemptions; a $10 million gain from an increase in the fair value of equity securities; offset by an increase in credit loss allowances of $53 million.
Previous wording
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 wording
Net earnings in the first nine months of 2025 included net investment losses of $1.1 billion, compared with net investment gains of $239 million in the first nine months of 2024. Net investment losses in the first nine months of 2025 included $1.1 billion of net losses from certain derivative and foreign currency gains or losses; an increase in credit loss allowances of $166 million and $6 million of impairments; offset by $71 million of net gains from sales and redemptions and a $47 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 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.
Current wording
The average yen/dollar exchange rate(1) for the three-month period ended September 30, 2025 was 147.68, or .2% stronger than the average yen/dollar exchange rate(1) of 147.95 for the same period in 2024. The average yen/dollar exchange rate(1) for the nine-month period ended September 30, 2025 was 148.03, or 1.7% stronger than the average yen/dollar exchange rate(1) of 150.60 for the same period in 2024.
Previous wording
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 wording
Adjusted earnings(2) in the third quarter of 2025 were $1.3 billion, or $2.49 per diluted share, compared with $1.2 billion, or $2.16 per diluted share in the third quarter of 2024. The slightly stronger yen/dollar exchange rate did not impact adjusted earnings per diluted share. Adjusted earnings(2) in the first nine months of 2025 were $3.2 billion, or $5.92 per diluted share, compared with $3.2 billion, or $5.64 per diluted share, in the first nine months of 2024. The stronger yen/dollar exchange rate positively impacted adjusted earnings per diluted share by $.03.
Previous 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.
Current wording
In the first nine months of 2025, Aflac Incorporated repurchased $2.7 billion, or 25.7 million of its common shares. At September 30, 2025, the Company had 121.6 million remaining shares authorized for repurchase.
Previous 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%.
Current wording
Shareholders’ equity was $28.7 billion, or $54.57 per share, at September 30, 2025, compared with $26.1 billion, or $47.45 per share, at December 31, 2024. Shareholders’ equity at September 30, 2025 included a cumulative increase of $6.8 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 $1.7 billion, compared with a net unrealized gain of $4 million at December 31, 2024. Shareholders’ equity at September 30, 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 third quarter of 2025 was 23.5%.
Previous 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%.
Current wording
Shareholders’ equity excluding accumulated other comprehensive income (AOCI)(2) (adjusted book value) was $28.0 billion, or $53.33 per share, at September 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 $24.4 billion, or $46.35 per share, at September 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 third quarter of 2025 was 22.1%.
Previous wording
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 wording
As previously disclosed, the Company identified an incident involving unauthorized access to its network in the U.S. on June 12, 2025. The Company promptly initiated its cybersecurity incident response protocols and continues to believe it contained the intrusion within hours. The Company's systems were not affected by ransomware, and the Company continues to serve its policyholders and underwrite policies, review claims, and otherwise service customers as usual. The Company also remains engaged with leading third-party cybersecurity experts to support the Company’s response to the incident.