AFLAC INC
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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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, 2026 · Filed Nov 5, 2026
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 2026-06-30; filed 2026-08-07.
0001628280-26-054618
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive SummaryCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001628280-26-070776
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 58 previous paragraphs and 58 current paragraphs.
41 unchanged; 12 reworded; 4 added; 5 removed; 0 previous and 1 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 (4)
Current report
Net earnings were $303 million, or $.61 per diluted share, in the third quarter of 2026, compared with $1.6 billion, or $3.08 per diluted share, in the third quarter of 2025. Net earnings in the third quarter of 2026 included a $51 million tax capital loss valuation allowance established against a portion of the Company's deferred tax assets associated with tax capital loss carryforwards.
Current report
Total revenues were $11.7 billion in the first nine months of 2026, compared with $12.3 billion in the first nine months of 2025.
Current report
Net earnings were $2.1 billion, or $4.24 per diluted share, in the first nine months of 2026, compared with $2.3 billion, or $4.21 per diluted share, in the first nine months of 2025. Net earnings in the first nine months of 2026 included a $51 million tax capital loss valuation allowance established against a portion of the Company's deferred tax assets associated with tax capital loss carryforwards.
Current report
As previously disclosed, Aflac Japan detected an unauthorized third-party had accessed certain Aflac Japan systems on June 25, 2026 (the June 2026 Japan Cyber Incident). Aflac Japan remains in communication with regulators and other relevant authorities. Based on the information currently available, as of the date of this report, the Company believes that the potential amount of loss cannot be reasonably estimated.
Removed paragraphs (5)
Previous report
Total revenues were $4.1 billion in the second quarter of 2026, compared with $4.2 billion in the second quarter of 2025.
Previous report
Net earnings were $825 million, or $1.63 per diluted share, in the second quarter of 2026, compared with $599 million, or $1.11 per diluted share, in the second quarter of 2025.
Previous report
Net earnings were $1.8 billion, or $3.61 per diluted share, in the first six months of 2026, compared with $628 million, or $1.16 per diluted share, in the first six months of 2025.
Previous report
As previously disclosed, on June 30, 2026, Aflac Japan issued a press release announcing that, on June 25, 2026, it had detected an unauthorized third-party had accessed certain Aflac Japan systems (the June 2026 Japan Cyber Incident). Upon identifying the unauthorized access, Aflac Japan promptly took steps designed to contain the incident and prevent further access, including suspending certain systems. Notwithstanding the suspension of certain systems, Aflac Japan continues to serve its policyholders as it responds to the June 2026 Japan Cyber Incident and there was no indication of ransomware.
Previous report
Aflac Japan, with assistance from third-party cybersecurity experts, has completed its investigation. Aflac Japan has determined that certain impacted files contain policy and coverage details, personal information, and bank account information. Aflac Japan has notified the Japan Financial Services Agency and other relevant authorities. As of the date of this report, Aflac Japan has completed the notification process to individuals affected by the June 2026 Japan Cyber Incident. Based on the information currently available, as of the date of this report, the Company believes that the potential amount of loss cannot be reasonably estimated.
Reworded paragraphs (12)
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, 2026 and 2025, 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, 2025 (2025 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, 2026 and 2025, 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, 2025 (2025 Annual Report). In this MD&A, amounts may not foot due to rounding.
Previous wording
Total revenues were $8.5 billion in the first six months of 2026, compared with $7.6 billion in the first six months of 2025, primarily due to net investment losses of $104 million in the first six months of 2026 compared with net investment losses of $1.4 billion in the first six months of 2025.
Current wording
Total revenues were $3.3 billion in the third quarter of 2026, compared with $4.7 billion in the third quarter of 2025, primarily due to net investment losses of $1.1 billion in the third quarter of 2026 largely associated with a strategic repositioning of the investment portfolio, compared with net investment gains of $275 million in the third quarter of 2025.
Previous wording
Net earnings in the second quarter of 2026 included net investment losses of $153 million, compared with net investment losses of $421 million in the second quarter of 2025. Net investment losses in the second quarter of 2026 included $238 million of net losses from sales and redemptions; an increase in credit loss allowances of $77 million; $11 million of impairments; offset by an $87 million gain from an increase in the fair value of equity securities; and $86 million of net gains from certain derivative and foreign currency gains or losses.
Current wording
Net earnings in the third quarter of 2026 included net investment losses of $1.1 billion, compared with net investment gains of $275 million in the third quarter of 2025. Net investment losses in the third quarter of 2026 included $842 million of net losses from sales and redemptions; $146 million of net losses from certain derivative and foreign currency gains or losses; an increase in credit loss allowances of $102 million; $1 million of impairments; offset by a gain of $19 million from an increase in the fair value of equity securities.
Previous wording
Net earnings in the first six months of 2026 included net investment losses of $104 million, compared with net investment losses of $1.4 billion in the first six months of 2025. Net investment losses in the first six months of 2026 included $254 million of net losses from sales and redemptions; an increase in credit loss allowances of $138 million; $35 million of impairments; offset by $250 million of net gains from certain derivative and foreign currency gains or losses; and a $73 million gain from an increase in the fair value of equity securities.
Current wording
Net earnings in the first nine months of 2026 included net investment losses of $1.2 billion, compared with net investment losses of $1.1 billion in the first nine months of 2025. Net investment losses in the first nine months of 2026 included $1.1 billion of net losses from sales and redemptions; an increase in credit loss allowances of $240 million; $36 million of impairments; offset by $104 million of net gains from certain derivative and foreign currency gains or losses; and a gain of $92 million from an increase in the fair value of equity securities.
Previous wording
Adjusted earnings(1) in the second quarter of 2026 were $883 million, or $1.75 per diluted share, compared with $957 million, or $1.78 per diluted share, in the second quarter of 2025. The average yen/dollar exchange rate(2) for the three-month period ended June 30, 2026 was 159.45, or 9.3% weaker than the average rate of 144.60 for the same period in 2025. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per diluted share by $.05.
Current wording
Adjusted earnings(1) in the third quarter of 2026 were $1.2 billion, or $2.43 per diluted share, compared with $1.3 billion, or $2.49 per diluted share, in the third quarter of 2025. The average yen/dollar exchange rate(2) for the three-month period ended September 30, 2026 was 158.49, or 6.8% weaker than the average rate of 147.68 for the same period in 2025. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per diluted share by $.03.
Previous wording
Adjusted earnings(1) in the first six months of 2026 were $1.8 billion, or $3.50 per diluted share, compared with $1.9 billion, or $3.43 per diluted share, in the first six months of 2025. The average yen/dollar exchange rate(2) for the six-month period ended June 30, 2026 was 158.14, or 6.2% weaker than the average rate of 148.32 for the same period in 2025. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per diluted share by $.07.
Current wording
Adjusted earnings(1) in 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 the first nine months of 2025. The average yen/dollar exchange rate(2) for the nine-month period ended September 30, 2026 was 158.28, or 6.5% weaker than the average rate of 148.03 for the same period in 2025. The weaker yen/dollar exchange rate negatively impacted adjusted earnings per diluted share by $.10.
Previous wording
Shareholders’ equity was $30.3 billion, or $60.35 per share, at June 30, 2026, compared with $29.5 billion, or $56.85 per share, at December 31, 2025.
Current wording
Shareholders’ equity was $29.3 billion, or $59.08 per share, at September 30, 2026, compared with $29.5 billion, or $56.85 per share, at December 31, 2025.
Previous wording
Shareholders’ equity at June 30, 2026 included a cumulative increase of $10.4 billion from the effect of changes in discount rate assumptions on insurance reserves, compared with a corresponding cumulative increase of $8.0 billion at December 31, 2025, and a net unrealized loss on investment securities and derivatives of $2.8 billion, compared with a net unrealized loss of $1.8 billion at December 31, 2025. Shareholders’ equity at June 30, 2026 also included an unrealized foreign currency translation loss of $5.0 billion, compared with an unrealized foreign currency translation loss of $4.8 billion at December 31, 2025. The annualized return on average shareholders’ equity in the second quarter of 2026 was 10.9%.
Current wording
December 31, 2025, and a net unrealized loss on investment securities and derivatives of $5.0 billion, compared with a net unrealized loss of $1.8 billion at December 31, 2025. Shareholders’ equity at September 30, 2026 also included an unrealized foreign currency translation loss of $4.9 billion, compared with an unrealized foreign currency translation loss of $4.8 billion at December 31, 2025. The annualized return on average shareholders’ equity in the third quarter of 2026 was 4.1%.
Previous wording
Shareholders’ equity excluding accumulated other comprehensive income (adjusted book value(1)) was $27.6 billion, or $55.01 per share, at June 30, 2026, compared with $28.0 billion, or $54.06 per share, at December 31, 2025. Adjusted book value excluding foreign currency remeasurement(1) was $20.7 billion, or $41.22 per share, at June 30, 2026, compared with $22.1 billion, or $42.66 per share, at December 31, 2025. The annualized adjusted return on equity excluding foreign currency remeasurement(1) in the second quarter of 2026 was 16.6%.
Current wording
Shareholders’ equity excluding accumulated other comprehensive income (adjusted book value(1)) was $26.9 billion, or $54.21 per share, at September 30, 2026, compared with $28.0 billion, or $54.06 per share, at December 31, 2025. Adjusted book value excluding foreign currency remeasurement(1) was $20.2 billion, or $40.73 per share, at September 30, 2026, compared with $22.1 billion, or $42.66 per share, at December 31, 2025. The annualized adjusted return on equity excluding foreign currency remeasurement(1) in the third quarter of 2026 was 23.7%.
Previous wording
In the first six months of 2026, Aflac Incorporated repurchased $2.0 billion, or 17.5 million of its common shares. At June 30, 2026, the Company had 96.8 million remaining shares authorized for repurchase.
Current wording
In the first nine months of 2026, Aflac Incorporated repurchased $2.8 billion, or 24.3 million of its common shares. At September 30, 2026, the Company had 90.0 million remaining shares authorized for repurchase.
Previous wording
Based on the information currently available, as of the date of this report, the Company does not believe that the June 2025 U.S. Cyber Incident is reasonably likely to have a material impact on the Company’s financial condition or results of operations. The Company continues to assess the financial impact of the June 2025 U.S. Cyber Incident, including how much of the financial impact will be covered by insurance. As a result of the June 2025 U.S. Cyber 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 litigation, governmental investigations, or potential 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. Based on the information currently available, as of the date of this report, the Company believes that the potential amount of loss cannot be reasonably estimated.
Current wording
Based on the information currently available, as of the date of this report, the Company does not believe that the June 2025 U.S. Cyber Incident is reasonably likely to have a material impact on the Company’s financial condition or results of operations. The Company continues to assess the financial impact of the June 2025 U.S. Cyber Incident, including how much of the financial impact will be covered by insurance. As a result of the June 2025 U.S. Cyber 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; incident response costs; expenses arising from litigation, governmental investigations, or potential 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. Based on the information currently available, as of the date of this report, the Company believes that the potential amount of loss cannot be reasonably estimated.
Previous wording
The June 2026 Japan Cyber Incident is limited to systems in Japan. The Company’s systems related to its U.S. business were not accessed by the unauthorized third-party. At this time, the full scope and potential ultimate impact of the June 2026 Japan Cyber Incident on the Company are not known. Based on the information currently available, as of the date of this report, the Company does not believe that the June 2026 Japan Cyber Incident is reasonably likely to have a material impact on the Company’s financial condition or results of operations.
Current wording
The June 2026 Japan Cyber Incident is limited to systems in Japan. The Company’s systems related to its U.S. business were not accessed by the unauthorized third-party. Based on the information currently available, as of the date of this report, the Company does not believe that the June 2026 Japan Cyber Incident is reasonably likely to have a material impact on the Company’s financial condition or results of operations.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Shareholders’ equity at September 30, 2026 included a cumulative increase of $12.3 billion from the effect of changes in discount rate assumptions on insurance reserves, compared with a corresponding cumulative increase of $8.0 billion at