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David Young
Aflac Incorporated and Subsidiaries
Aflac Japan
Aflac Japan
Aflac Japan
Aflac Japan
Aflac Japan
Aflac Japan
Aflac Japan
Aflac Japan
Aflac Japan
Aflac Japan
Financial Analysts Briefing Supplement – Form 8-K
U.S. Regulated Equity Markets (Alternative Disclosure) via PUBT
Financial Analysts Briefing Supplement
Fourth Quarter 2022 - As Adjusted
This document is a statistical supplement to the Financial Analysts Briefing (FAB) book. Throughout the presentation, amounts presented may not foot due to rounding. As you review the supplement, please note the non-U.S. GAAP financial measures and definitions found at the back of this document.
The Company adopted the Financial Accounting Standards Board's Accounting Standard Update 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by (i) ASU 2019-09 Financial Services - Insurance: Effective Date, and (ii) ASU 2020-11 Financial Services - Insurance: Effective Date and Early Application (collectively, "LDTI") as of January 1, 2023 . The amended guidance is applied as of the beginning of the earliest period presented in the Company's quarterly and annual financial statements, which results in a January 1, 2021 Transition Date. The impacts to the 2021 and 2022 data in the FAB Supplement are being reflected at this time voluntarily and for comparative purposes only. In conjunction with the adoption of LDTI, the Company will change its practice of recording the change in the deferred profit liability on products with limited-payment features from the benefits and claims, net line item to the net earned premiums line item in the consolidated statement of earnings. This change in presentation will have no impact on net earnings and will be made for all comparative periods presented in quarterly and annual financial statements. This change has been reflected in the updated FAB Supplement. Updates to the original FAB Supplement for these items are highlighted in yellow herein.
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Aflac |
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Statement of Pretax Adjusted Earnings
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22,23
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Corporate and Other | |
Non- |
For more information, contact:
Phone. 706.596.3264
Share Data | |||||||||||||
(In Thousands) | |||||||||||||
Beginning | Shares Issued | Shares Purchased | Ending | QTD Weighted Avg. Shares | YTD Weighted Avg. Shares | ||||||||
Shares | Stk. Bon. | Stk. Opt. | Treas. | Misc. | Shares | Avg. | Dilutive | Avg. | Avg. | Dilutive | Avg. | ||
Period | Outstanding | & DRP | & Misc. | Shares |
Purch.(1)
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Outstanding | Shares | Shares | Diluted | Shares | Shares | Diluted | |
2020 | 1 | 726,793 | 468 | 1,613 | 9,984 | 508 | 718,382 | 724,366 | 3,146 | 727,512 | 724,366 | 3,146 | 727,512 |
2 | 718,382 | 648 | 100 | 5,209 | 13 | 713,908 | 717,889 | 1,875 | 719,764 | 721,128 | 2,510 | 723,638 | |
3 | 713,908 | 468 | 134 | 10,916 | 20 | 703,574 | 711,698 | 2,095 | 713,793 | 717,962 | 2,372 | 720,333 | |
4 | 703,574 | 437 | 235 | 11,791 | 1 | 692,454 | 701,016 | 2,843 | 703,859 | 713,702 | 2,490 | 716,192 | |
2021 | 1 | 692,454 | 387 | 1,684 | 13,440 | 378 | 680,707 | 688,938 | 3,002 | 691,940 | 688,938 | 3,002 | 691,940 |
2 | 680,707 | 330 | 130 | 9,174 | 3 | 671,990 | 678,050 | 2,871 | 680,921 | 683,464 | 2,936 | 686,400 | |
3 | 671,990 | 250 | 188 | 9,572 | 39 | 662,817 | 668,762 | 3,163 | 671,925 | 678,509 | 3,012 | 681,521 | |
4 | 662,817 | 249 | 224 | 11,140 | 18 | 652,132 | 659,100 | 3,412 | 662,512 | 673,617 | 3,112 | 676,729 | |
2022 | 1 | 652,132 | 259 | 1,308 | 8,007 | 343 | 645,349 | 649,753 | 3,074 | 652,827 | 649,753 | 3,074 | 652,827 |
2 | 645,349 | 269 | 101 | 11,185 | 8 | 634,526 | 640,707 | 2,536 | 643,243 | 645,205 | 2,805 | 648,010 | |
3 | 634,526 | 258 | 144 | 11,057 | 3 | 623,868 | 629,350 | 2,597 | 631,947 | 639,862 | 2,735 | 642,597 | |
4 | 623,868 | 222 | 120 | 8,938 | 16 | 615,256 | 619,845 | 3,149 | 622,994 | 634,816 | 2,839 | 637,655 | |
(1) Includes previously owned shares used to purchase options (swapped shares) and/or shares purchased for deferred compensation program
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Summary of Adjusted Results by Business Segment | ||||||||||||||||||||
(In Millions, except per-share data and where noted) | ||||||||||||||||||||
Years Ended |
3 Months Ended |
12 Months Ended |
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% | % | |||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||
$ | 3,054 | $ | 3,208 | $ | 3,261 | $ | 3,263 | $ | 3,755 | $ | 897 | $ | 720 | (19.7) | $ | 3,755 | $ | 3,281 | (12.6) | |
Aflac |
1,245 | 1,285 | 1,272 | 1,268 | 1,356 | 282 | 339 | 20.2 | 1,356 | 1,359 | .2 | |||||||||
Corporate and other (1)
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(214) | (139) | (72) | (115) | (293) | (152) | (45) | (293) | (218) | |||||||||||
Pretax adjusted earnings | 4,086 | 4,354 | 4,461 | 4,416 | 4,819 | 1,026 | 1,015 | (1.1) | 4,819 | 4,422 | (8.2) | |||||||||
Income taxes (1)
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1,370 | 1,129 | 1,147 | 864 | 893 | 151 | 198 | 31.1 | 893 | 808 | (9.5) | |||||||||
Adjusted earnings (2)
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2,716 | 3,226 | 3,314 | 3,552 | 3,925 | 875 | 817 | (6.6) | 3,925 | 3,614 | (7.9) | |||||||||
Reconciling items: | ||||||||||||||||||||
Adjusted net investment gains (losses) | - | (297) | (15) | (229) | 462 | 246 | (477) | 462 | 447 | |||||||||||
Other and non-recurring income (loss) (3)
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(69) | (75) | (1) | (28) | (73) | (6) | - | (73) | 1 | |||||||||||
Income tax benefit (expense) on items excluded from adjusted earnings (4)
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24 | 83 | 3 | 72 | (83) | (50) | (144) | (83) | 357 | |||||||||||
Tax reform adjustment (5)
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1,933 | (18) | 4 | - | - | - | - | - | - | |||||||||||
Tax valuation allowance release (6)
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- | - | - | 1,411 | - | - | - | - | - | |||||||||||
Net earnings | $ | 4,604 | $ | 2,920 | $ | 3,304 | $ | 4,778 | $ | 4,231 | $ | 1,065 | $ | 196 | (81.6) | $ | 4,231 | $ | 4,418 | 4.4 |
Effective Tax rate | (14.6) | % | 26.7 | % | 25.7 | % | (14.9) | % | 18.7 | % | 15.9 | % | 63.6 | % | 18.7 | % | 9.3 | % | ||
Earnings per share of common stock: | ||||||||||||||||||||
Net earnings (basic) | $ | 5.81 | $ | 3.79 | $ | 4.45 | $ | 6.69 | $ | 6.28 | $ | 1.62 | $ | 0.32 | (80.2) | $ | 6.28 | $ | 6.96 | 10.8 |
Net earnings (diluted) | 5.77 | 3.77 | 4.43 | 6.67 | 6.25 | 1.61 | 0.31 | (80.7) | 6.25 | 6.93 | 10.9 | |||||||||
Adjusted earnings (basic) (2)
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$ | 3.43 | $ | 4.20 | $ | 4.46 | $ | 4.98 | $ | 5.83 | $ | 1.33 | $ | 1.32 | (.8) | $ | 5.83 | $ | 5.69 | (2.4) |
Adjusted earnings (diluted) (2)
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3.40 | 4.16 | 4.44 | 4.96 | 5.80 | 1.32 | 1.31 | (.8) | 5.80 | 5.67 | (2.2) | |||||||||
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of
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(2) See non-
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(3) Foreign currency gains and losses for all periods have been reclassified from Other and non-recurring income (loss) to Net investment gains and losses.
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(4) Primarily reflects release of
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(5) The impact of Tax Reform was adjusted in 2018 for return-to-provision adjustments, various amended returns filed by the Company, and final true-ups of deferred tax liabilities. Further impacts were recorded in 2019 as a result of additional guidance released by the
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(6) Tax benefit recognized in 2020 represents the release of valuation allowances on deferred tax benefits related to foreign tax credits.
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3
Consolidated Statements of Earnings - |
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(In Millions, except per-share data) | ||||||||||||||||||||
Years Ended |
3 Months Ended |
12 Months Ended |
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% | % | |||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||
Revenues: | ||||||||||||||||||||
Net earned premiums | ||||||||||||||||||||
Gross premiums | $ | 18,875 | $ | 19,018 | $ | 19,122 | $ | 18,955 | $ | 17,305 | $ | 4,180 | $ | 3,553 | $ | 17,305 | $ | 15,025 | ||
Assumed (ceded) | (345) | (341) | (342) | (333) | (210) | (48) | (30) | (210) | (124) | |||||||||||
Total net earned premiums | 18,531 | 18,677 | 18,780 | 18,622 | 17,095 | 4,132 | 3,523 | (14.7) | 17,095 | 14,901 | (12.8) | |||||||||
Net investment income | 3,220 | 3,442 | 3,578 | 3,638 | 3,818 | 910 | 896 | (1.5) | 3,818 | 3,656 | (4.2) | |||||||||
Net investment gains (losses) (1)
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(151) | (430) | (135) | (270) | 468 | 243 | (521) | 468 | 363 | |||||||||||
Other income (1)
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67 | 69 | 84 | 157 | 173 | 37 | 50 | 173 | 220 | |||||||||||
Total revenues | 21,667 | 21,758 | 22,307 | 22,147 | 21,554 | 5,322 | 3,948 | (25.8) | 21,554 | 19,140 | (11.2) | |||||||||
Benefits and Claims: | ||||||||||||||||||||
Benefits and claims, net | ||||||||||||||||||||
Incurred claims -direct | 8,853 | 9,121 | 9,279 | 9,364 | 8,949 | 2,199 | 1,826 | 8,949 | 8,271 | |||||||||||
Incurred claims -assumed (ceded) | (446) | (421) | (372) | (296) | (147) | (24) | (18) | (147) | (108) | |||||||||||
Increase in FPB (2)-direct
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3,628 | 3,167 | 2,952 | 2,707 | 1,819 | 370 | 312 | 1,819 | 888 | |||||||||||
Increase in FPB (2)-assumed (ceded)
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146 | 133 | 83 | 21 | 3 | 2 | (3) | 3 | 51 | |||||||||||
Total net benefits and claims, excluding reserve remeasurement |
N/A | N/A | N/A | N/A | 10,623 | 2,547 | 2,117 | 10,623 | 9,102 | |||||||||||
Reserve remeasurement gain (loss) | N/A | N/A | N/A | N/A | (147) | (17) | (63) | (147) | (215) | |||||||||||
Total net benefits and claims | 12,181 | 12,000 | 11,942 | 11,796 | 10,476 | 2,529 | 2,054 | (18.8) | 10,476 | 8,887 | (15.2) | |||||||||
Acquisition and operating expenses: | ||||||||||||||||||||
Amortization of DAC (3)
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1,132 | 1,245 | 1,282 | 1,214 | 835 | 208 | 194 | 835 | 792 | |||||||||||
Insurance commissions | 1,316 | 1,320 | 1,321 | 1,316 | 1,256 | 304 | 271 | 1,256 | 1,117 | |||||||||||
Insurance expenses | 2,780 | 2,988 | 3,089 | 3,420 | 3,541 | 958 | 836 | 3,541 | 3,249 | |||||||||||
Interest expense | 240 | 222 | 228 | 242 | 238 | 57 | 55 | 238 | 226 | |||||||||||
Other expenses | - | - | - | - | - | - | - | - | - | |||||||||||
Total acquisition and operating expenses | 5,468 | 5,775 | 5,920 | 6,192 | 5,870 | 1,527 | 1,356 | (11.2) | 5,870 | 5,384 | (8.3) | |||||||||
Total benefits and claims | 17,649 | 17,775 | 17,862 | 17,988 | 16,346 | 4,056 | 3,410 | (15.9) | 16,346 | 14,271 | (12.7) | |||||||||
Pretax earnings | 4,018 | 3,983 | 4,445 | 4,159 | 5,208 | 1,266 | 538 | 5,208 | 4,869 | |||||||||||
Income tax expense (benefit) (4)
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(586) | 1,063 | 1,141 | (619) | 977 | 201 | 342 | 977 | 451 | |||||||||||
Net earnings | $ | 4,604 | $ | 2,920 | $ | 3,304 | $ | 4,778 | $ | 4,231 | $ | 1,065 | $ | 196 | (81.6) | $ | 4,231 | $ | 4,418 | 4.4 |
(1) Foreign currency gains and losses for all periods have been reclassified from Other income to Net investment gains and losses for consistency with current period presentation.
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(2) Future policy benefits
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(3) Deferred acquisition costs
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(4) Primarily reflects release of
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4
Analysis of Net Earnings and Net Earnings Per Diluted Share | |||||||||
(In Millions, except for per-share data) | |||||||||
Other and | Foreign | ||||||||
Net | Other and Non- | Foreign | Net | Net | Non-Recurring | Currency | |||
Net | Investment | Recurring | Currency | Earnings | Investment | Items | Impact | ||
Period | Earnings |
Gains (Losses) (1)
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Items (1)(3)(4)
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Impact (2)
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Per Share |
Gains (Losses) (1)
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Per Share (1)(3)(4)
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Per Share (2)
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2017 | 4,604 | - | 1,888 | (41) | 5.77 | - | 2.37 | (.05) | |
2018 | 2,920 | (230) | (76) | 28 | 3.77 | (.30) | (.09) | .04 | |
2019 | 3,304 | (13) | 3 | 15 | 4.43 | (.02) | .01 | .02 | |
2020 | 4,778 | (181) | 1,407 | 31 | 6.67 | (.25) | 1.96 | .04 | |
2021 | 4,231 | 365 | (59) | (42) | 6.25 | .54 | (.09) | (.06) | |
2022 | 4,418 | 803 | 1 | (262) | 6.93 | 1.26 | - | (.41) | |
2020 | 1 | 566 | (322) | 5 | 9 | .78 | (.44) | .01 | .01 |
2 | 805 | (116) | - | 5 | 1.12 | (.16) | - | .01 | |
3 | 2,456 | 45 | 1,418 | 3 | 3.44 | .06 | 1.99 | - | |
4 | 951 | 212 | (15) | 14 | 1.35 | .30 | (.02) | .02 | |
2021 | 1 | 1,224 | 240 | (5) | 5 | 1.77 | .35 | (.01) | .01 |
2 | 1,027 | 67 | (42) | (6) | 1.51 | .10 | (.06) | (.01) | |
3 | 915 | (136) | (7) | (12) | 1.36 | (.20) | (.01) | (.02) | |
4 | 1,065 | 194 | (5) | (29) | 1.61 | .29 | (.01) | (.04) | |
2022 | 1 | 1,047 | 106 | - | (35) | 1.60 | .16 | - | (.05) |
2 | 1,394 | 448 | - | (59) | 2.17 | .70 | - | (.09) | |
3 | 1,781 | 871 | 1 | (97) | 2.82 | 1.38 | - | (.15) | |
4 | 196 | (621) | - | (70) | .31 | (1.00) | - | (.11) | |
(1) Items are presented net of tax.
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(2) See non-
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(3) Foreign currency gains and losses and amortized hedge costs/income for all periods have been reclassified from Other income to Net investment gains and losses for consistency with current period presentation.
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(4 )Tax benefit recognized in the third quarter of 2020 represents the release of valuation allowances on deferred tax benefits related to foreign tax credits.
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Consolidated Balance Sheets | ||||||||||||
(In Millions, except per-share data) | ||||||||||||
Assets: | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||
Investments and cash: | ||||||||||||
Securities available for sale: | ||||||||||||
Fixed maturity securities available for sale, at fair value | $ | 78,804 | $ | 78,429 | $ | 86,950 | $ | 101,286 | $ | 94,206 | $ | 71,936 |
Fixed maturity securities available for sale - consolidated variable interest entities, at fair value | 5,509 | 4,466 | 4,312 | 4,596 | 4,490 | 3,805 | ||||||
Fixed maturity securities held to maturity, at amortized cost, net of allowance for credit losses | 31,430 | 30,318 | 30,085 | 24,464 | 22,000 | 19,056 | ||||||
Equity securities, at fair value | 1,023 | 987 | 802 | 1,283 | 1,603 | 1,091 | ||||||
Commercial mortgage and other loans, net of allowance for credit losses | 3,002 | 6,919 | 9,569 | 10,554 | 11,786 | 13,496 | ||||||
Other investments | 400 | 787 | 1,477 | 2,429 | 3,842 | 4,070 | ||||||
Cash and cash equivalents | 3,491 | 4,337 | 4,896 | 5,141 | 5,051 | 3,943 | ||||||
Total investments and cash | 123,659 | 126,243 | 138,091 | 149,753 | 142,978 | 117,397 | ||||||
Receivables, net of allowance for credit losses (1)
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820 | 844 | 816 | 778 | 672 | 647 | ||||||
Accrued investment income | 769 | 773 | 772 | 780 | 737 | 745 | ||||||
Deferred policy acquisition costs | 9,505 | 9,875 | 10,128 | 10,441 | 9,848 | 9,239 | ||||||
Property and equipment, net | 434 | 443 | 581 | 601 | 538 | 530 | ||||||
Other assets, net of allowance for credit losses (1) (2)
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2,030 | 2,228 | 2,380 | 2,733 | 3,377 | 3,180 | ||||||
Total assets | $ | 137,217 | $ | 140,406 | $ | 152,768 | $ | 165,086 | $ | 158,150 | $ | 131,738 |
Liabilities and Shareholders' Equity: | ||||||||||||
Liabilities: | ||||||||||||
Total policy liabilities | $ | 99,147 | $ | 103,188 | $ | 106,554 | $ | 114,391 | $ | 126,331 | $ | 96,910 |
Notes payable | 5,289 | 5,778 | 6,569 | 7,899 | 7,956 | 7,442 | ||||||
Income taxes, primarily deferred | 4,745 | 4,020 | 5,370 | 4,661 | 30 | 698 | ||||||
Other liabilities | 3,438 | 3,958 | 5,316 | 4,576 | 6,802 | 6,548 | ||||||
Total liabilities | 112,619 | 116,944 | 123,809 | 131,527 | 141,119 | 111,598 | ||||||
Shareholders' equity: | ||||||||||||
Common stock | 135 | 135 | 135 | 135 | 135 | 135 | ||||||
Additional paid-in capital | 2,052 | 2,177 | 2,313 | 2,410 | 2,529 | 2,641 | ||||||
Retained earnings | 29,895 | 31,788 | 34,291 | 37,984 | 40,963 | 44,367 | ||||||
Accumulated other comprehensive income (loss): | ||||||||||||
Unrealized foreign currency translation gains (losses) | (1,750) | (1,847) | (1,623) | (1,109) | (1,985) | (3,564) | ||||||
Unrealized gains (losses) on fixed maturity securities | 5,964 | 4,234 | 8,548 | 10,361 | 9,602 | (702) | ||||||
Unrealized gains (losses) on derivatives | (23) | (24) | (33) | (34) | (30) | (27) | ||||||
Effect on change in discount rate assumption(s) | N/A | N/A | N/A | N/A | (15,832) | (2,100) | ||||||
Pension liability adjustment | (163) | (212) | (277) | (284) | (166) | (36) | ||||||
(11,512) | (12,789) | (14,395) | (15,904) | (18,185) | (20,574) | |||||||
Total shareholders' equity | 24,598 | 23,462 | 28,959 | 33,559 | 17,031 | 20,140 | ||||||
Total liabilities & shareholders' equity | $ | 137,217 | $ | 140,406 | $ | 152,768 | $ | 165,086 | $ | 158,150 | $ | 131,738 |
(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity
(2) Includes goodwill of $265 million in 2022, $268 in 2021, $269 in 2020, $140 million in 2019, $67 million in 2018 and $67 million in 2017
6
Quarterly Financial Results | |||||||||||||
(Dollars In Millions, except per-share data) | |||||||||||||
Total | |||||||||||||
Net | Net | Benefits | Acquisitions | Total | Net EPS |
Adj. EPS (1)
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Earned | Inv. | Total | & | & | Pretax | Net | Adjusted | ||||||
Period | Premiums | Income | Revenues | Claims, net | Adj. Exp. | Earn. | Earn. |
Earn. (1)
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Basic | Dil. | Basic | Dil. | |
2017 | 18,531 | 3,220 | 21,667 | 12,181 | 5,468 | 4,018 | 4,604 | 2,716 | 5.81 | 5.77 | 3.43 | 3.40 | |
2018 | 18,677 | 3,442 | 21,758 | 12,000 | 5,775 | 3,983 | 2,920 | 3,226 | 3.79 | 3.77 | 4.20 | 4.16 | |
2019 | 18,780 | 3,578 | 22,307 | 11,942 | 5,920 | 4,445 | 3,304 | 3,314 | 4.45 | 4.43 | 4.46 | 4.44 | |
2020 | 18,622 | 3,638 | 22,147 | 11,796 | 6,192 | 4,159 | 4,778 | 3,552 | 6.69 | 6.67 | 4.98 | 4.96 | |
2021 | 17,095 | 3,818 | 21,554 | 10,476 | 5,870 | 5,208 | 4,231 | 3,925 | 6.28 | 6.25 | 5.83 | 5.80 | |
2022 | 14,901 | 3,656 | 19,140 | 8,887 | 5,384 | 4,869 | 4,418 | 3,614 | 6.96 | 6.93 | 5.69 | 5.67 | |
2020 | 1 | 4,681 | 904 | 5,162 | 2,939 | 1,503 | 720 | 566 | 882 | 0.78 | 0.78 | 1.22 | 1.21 |
2 | 4,664 | 870 | 5,407 | 2,897 | 1,440 | 1,070 | 805 | 921 | 1.12 | 1.12 | 1.28 | 1.28 | |
3 | 4,623 | 896 | 5,665 | 2,985 | 1,527 | 1,153 | 2,456 | 994 | 3.45 | 3.44 | 1.40 | 1.39 | |
4 | 4,653 | 968 | 5,913 | 2,974 | 1,723 | 1,216 | 951 | 755 | 1.36 | 1.35 | 1.08 | 1.07 | |
2021 | 1 | 4,434 | 925 | 5,710 | 2,771 | 1,420 | 1,519 | 1,224 | 989 | 1.78 | 1.77 | 1.44 | 1.43 |
2 | 4,301 | 993 | 5,424 | 2,672 | 1,474 | 1,277 | 1,027 | 1,002 | 1.51 | 1.51 | 1.48 | 1.47 | |
3 | 4,229 | 991 | 5,098 | 2,503 | 1,450 | 1,146 | 915 | 1,058 | 1.37 | 1.36 | 1.58 | 1.57 | |
4 | 4,132 | 910 | 5,322 | 2,529 | 1,527 | 1,266 | 1,065 | 875 | 1.62 | 1.61 | 1.33 | 1.32 | |
2022 | 1 | 4,079 | 903 | 5,173 | 2,483 | 1,396 | 1,295 | 1,047 | 942 | 1.61 | 1.60 | 1.45 | 1.44 |
2 | 3,764 | 937 | 5,315 | 2,274 | 1,334 | 1,708 | 1,394 | 945 | 2.18 | 2.17 | 1.47 | 1.47 | |
3 | 3,535 | 920 | 4,704 | 2,076 | 1,299 | 1,329 | 1,781 | 910 | 2.83 | 2.82 | 1.45 | 1.44 | |
4 | 3,523 | 896 | 3,948 | 2,054 | 1,356 | 538 | 196 | 817 | 0.32 | 0.31 | 1.32 | 1.31 | |
(1) See non-U.S. GAAP financial measures for definition of adjusted earnings.
7
Quarterly Book Value Per Share | |||||||
(Dollars In Millions, except per-share data) | |||||||
Per Share Incl | |||||||
Equity | AOCI | Per Share Incl | Foreign Currency | ||||
BV Per | BV Per | Per Share | Foreign Currency | Translation G/(L) | |||
Period | Share | Share |
Per Share (1)
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% Change |
Translation G/(L)(1)
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% Change | |
2017 | 31.50 | 5.16 | 26.34 | 19.7% | 24.10 | 23.3% | |
2018 | 31.06 | 2.85 | 28.22 | 7.1% | 25.77 | 6.9% | |
2019 | 39.84 | 9.10 | 30.74 | 8.9% | 28.51 | 10.6% | |
2020 | 48.46 | 12.90 | 35.56 | 15.7% | 33.96 | 19.1% | |
2021 | 26.12 | (12.90) | 39.01 | 9.7% | 35.97 | 5.9% | |
2022 | 32.73 | (10.45) | 43.18 | 10.7% | 37.39 | 3.9% | |
2020 | 1 | 36.75 | 5.83 | 30.92 | 7.0% | 28.77 | 8.9% |
2 | 41.21 | 9.45 | 31.75 | 7.5% | 29.70 | 7.7% | |
3 | 46.16 | 11.25 | 34.91 | 15.7% | 33.08 | 17.4% | |
4 | 48.46 | 12.90 | 35.56 | 15.7% | 33.96 | 19.1% | |
2021 | 1 | 22.98 | (13.60) | 36.59 | 18.3% | 34.15 | 18.7% |
2 | 24.39 | (13.18) | 37.57 | 18.3% | 35.12 | 18.2% | |
3 | 25.19 | (13.20) | 38.39 | 10.0% | 35.77 | 8.1% | |
4 | 26.12 | (12.90) | 39.01 | 9.7% | 35.97 | 5.9% | |
2022 | 1 | 27.21 | (13.09) | 40.30 | 10.1% | 36.53 | 7.0% |
2 | 30.82 | (11.00) | 41.82 | 11.3% | 36.75 | 4.6% | |
3 | 31.97 | (12.03) | 44.00 | 14.6% | 36.99 | 3.4% | |
4 | 32.73 | (10.45) | 43.18 | 10.7% | 37.39 | 3.9% | |
(1) See non-U.S. GAAP financial measures for definition of adjusted book value and adjusted book value including unrealized foreign currency translation gains and losses.
8
Retuon Equity | ||||||||||||
Year Ended |
||||||||||||
2017 | 2018 | 2019 | 2020 |
2021(4)
|
2022 | |||||||
|
20.4 | % | 12.2 | % | 12.6 | % | 15.3 | % | 26.7 | % | 23.8 | % |
Impact of excluding unrealized foreign currency translation gains (losses) | (2.0) | (1.0) | (1.0) | (0.9) | (1.7) | (2.5) | ||||||
Impact of excluding unrealized gains (losses) on securities and derivatives | 5.8 | 3.0 | 3.6 | 6.2 | 10.7 | 4.1 | ||||||
Impact of excluding effect on change in discount rate assumptions | N/A | N/A | N/A | N/A | (18.5) | (8.2) | ||||||
Impact of excluding pension liability adjustment | (0.2) | (0.1) | (0.1) | (0.2) | (0.2) | (0.1) | ||||||
Impact of excluding AOCI | 3.6 | 1.8 | 2.5 | 5.1 | (9.7) | (6.8) | ||||||
24.0 | 13.9 | 15.1 | 20.3 | 17.0 | 17.0 | |||||||
Differences between adjusted earnings and net earnings (2)
|
(9.8) | 1.5 | 0.0 | (5.2) | (1.2) | (3.1) | ||||||
Adjusted ROE - reported (3)
|
14.2 | 15.4 | 15.2 | 15.1 | 15.8 | 13.9 | ||||||
(1)
|
||||||||||||
(2)
|
See separate reconciliation of net income to adjusted earnings. | |||||||||||
(3)
|
Impact of foreign currency is calculated by restating all foreign currency components of the income statement to the weighted average foreign currency exchange rate for the comparable prior year period. | |||||||||||
(4)
|
Retuon equity calculations for 2021 use beginning retained earnings and accumulated other comprehensive income adjusted for the adoption of LDTI. |
9
Adjusted Earnings Per Share Excluding Current Period Foreign Currency Impact (1)
|
|||||||||||
(Diluted Basis) | |||||||||||
Change | |||||||||||
QTD | YTD | Excluding | Excluding | ||||||||
Foreign | Foreign | Foreign | Foreign | ||||||||
Adjusted | Currency | Currency | Currency | Currency | |||||||
Period |
EPS(1)
|
Growth |
Impact(1)
|
Impact(1)
|
Impact(1)
|
Impact | |||||
2017 | $ | 3.40 | 4.6 | % | N/A | (.05) | $ | 3.45 | 6.2 | % | |
2018 | $ | 4.16 | 22.4 | % | N/A | .04 | $ | 4.13 | 21.5 | % | |
2019 | $ | 4.44 | 6.7 | % | N/A | .02 | $ | 4.42 | 6.3 | % | |
2020 | $ | 4.96 | 11.7 | % | N/A | .04 | $ | 4.92 | 10.8 | % | |
2021 | $ | 5.80 | 16.9 | % | N/A | (.06) | $ | 5.86 | 18.1 | % | |
2022 | $ | 5.67 | (2.2) | % | N/A | (.41) | $ | 6.08 | 4.8 | % | |
2020 | 1 | $ | 1.21 | 8.0 | % | .01 | .01 | $ | 1.20 | 7.1 | % |
2 | 1.28 | 13.3 | .01 | .02 | 1.27 | 12.4 | |||||
3 | 1.39 | 19.8 | - | .02 | 1.39 | 19.8 | |||||
4 | 1.07 | 3.9 | .02 | .04 | 1.05 | 1.9 | |||||
$ | 4.96 | 11.7 | % | $ | 4.92 | 10.8 | % | ||||
2021 | 1 | $ | 1.43 | 18.2 | % | .01 | .01 | $ | 1.42 | 17.4 | % |
2 | 1.47 | 14.8 | (.01) | - | 1.48 | 15.6 | |||||
3 | 1.57 | 12.9 | (.02) | (.02) | 1.59 | 14.4 | |||||
4 | 1.32 | 23.4 | (.04) | (.06) | 1.36 | 27.1 | |||||
$ | 5.80 | 16.9 | % | $ | 5.86 | 18.1 | % | ||||
2022 | 1 | $ | 1.44 | .7 | % | (.05) | (.05) | $ | 1.50 | 4.9 | % |
2 | 1.47 | - | (.09) | (.15) | 1.56 | 6.1 | |||||
3 | 1.44 | (8.3) | (.15) | (.30) | 1.59 | 1.3 | |||||
4 | 1.31 | (.8) | (.11) | (.41) | 1.43 | 8.3 | |||||
$ | 5.67 | (2.2) | % | $ | 6.08 | 4.8 | % | ||||
(1) See non-U.S.GAAP financial measures for definition of adjusted earnings and adjusted earnings excluding current period foreign currency impact
|
10
Composition of Invested Assets | ||||||||||||
(In Millions) | ||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||
|
$ | 106,562 | $ | 107,174 | $ | 109,456 | $ | 116,056 | $ | 107,369 | $ | 94,525 |
Commercial mortgage and other loans, net of allowance for credit losses (1)
|
||||||||||||
1,235 | 4,378 | 5,450 | 5,231 | 5,246 | 6,455 | |||||||
Middle Market Loans (floating rate) | 859 | 1,478 | 2,412 | 3,635 | 4,601 | 5,028 | ||||||
Commercial Mortgage Loans | 908 | 1,063 | 1,707 | 1,688 | 1,874 | 2,013 | ||||||
Total Commercial mortgage and other loans, net of allowance for credit losses(1)
|
3,002 | 6,919 | 9,569 | 10,554 | 11,721 | 13,496 | ||||||
846 | 987 | 802 | 1,283 | 1,603 | 1,091 | |||||||
Alternatives(2)
|
113 | 370 | 551 | 919 | 1,703 | 2,107 | ||||||
Total Portfolio | $ | 110,523 | $ | 115,450 | $ | 120,378 | $ | 128,812 | $ | 122,396 | $ | 111,219 |
Unrealized Gains (Losses) on Invested Assets | ||||||||||||
(In Millions) | ||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||
Available For Sale - Gross Gains | $ | 9,985 | $ | 7,733 | $ | 12,266 | $ | 14,771 | $ | 13,566 | $ | 4,800 |
Available For Sale - Gross Losses | (804) | (1,694) | (375) | (481) | (239) | (4,528) | ||||||
Total Available For Sale | 9,181 | 6,039 | 11,891 | 14,290 | 13,327 | 272 | ||||||
Held to Maturity - Gross Gains | 6,651 | 6,470 | 7,519 | 5,935 | 4,869 | 2,154 | ||||||
Held to Maturity - Gross Losses | (9) | (66) | (10) | - | - | - | ||||||
Total Held to Maturity | $ | 6,642 | $ | 6,404 | $ | 7,509 | $ | 5,935 | $ | 4,869 | $ | 2,154 |
Credit Ratings on Fixed Maturities | ||||||||||||
(At Amortized Cost) | ||||||||||||
Credit Rating | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||
1.0 | % | 1.0 | % | 1.1 | % | 1.0 | % | 1.0 | % | 1.6 | % | |
AA | 3.9 | 3.9 | 4.3 | 4.5 | 5.1 | 5.2 | ||||||
A | 65.8 | 67.9 | 68.6 | 69.3 | 68.9 | 68.0 | ||||||
BBB | 24.0 | 23.2 | 23.1 | 21.9 | 22.5 | 23.0 | ||||||
BB or Lower | 5.3 | 4.0 | 2.9 | 3.3 | 2.5 | 2.2 | ||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |
(1) Presented at amortized cost, net of reserves beginning in 2020
|
||||||||||||
(2) Presented at carrying value; includes asset classes such as private equity and real estate managed by
|
11
Supplemental Investment Data by Segment | ||||||||||||||||
3 Months Ended | ||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2021 | 2022 | |||||||||
Invested assets (in millions)(1)
|
¥ | 11,017,560 | ¥ | 11,442,444 | ¥ | 11,784,586 | ¥ | 11,936,087 | ¥ | 12,405,531 | ¥ | 12,617,181 | ¥ | 12,405,531 | ¥ | 12,617,181 |
Retuon average invested assets(2)
|
2.31 | % | 2.33 | % | 2.33 | % | 2.38 | % | 2.72 | % | 2.78 | % | 2.83 | % | 2.70 | % |
Portfolio book yield at end of period(3)
|
2.56 | % | 2.61 | % | 2.64 | % | 2.59 | % | 2.60 | % | 3.06 | % | 2.60 | % | 3.06 | % |
Total purchases for period (in millions)(3)
|
¥ | 1,078,586 | ¥ | 1,298,376 | ¥ | 1,003,885 | ¥ | 714,124 | ¥ | 952,038 | ¥ | 716,964 | ¥ | 262,311 | ¥ | 82,065 |
New money yield(3)(4)
|
1.98 | % | 3.06 | % | 3.83 | % | 3.75 | % | 3.50 | % | 4.48 | % | 3.82 | % | 6.81 | % |
Aflac |
||||||||||||||||
Invested assets (in millions)(1)
|
$ | 13,764 | $ | 13,798 | $ | 14,036 | $ | 14,848 | $ | 15,841 | $ | 16,772 | $ | 15,841 | $ | 16,772 |
Retuon average invested assets(2)
|
5.07 | % | 5.16 | % | 5.70 | % | 4.90 | % | 4.87 | % | 4.72 | % | 4.98 | % | 4.65 | % |
Portfolio book yield at end of period(3)
|
5.52 | % | 5.55 | % | 5.40 | % | 5.18 | % | 4.94 | % | 5.39 | % | 4.94 | % | 5.39 | % |
Total purchases for period (in millions)(3)
|
$ | 1,434 | $ | 2,155 | $ | 1,835 | $ | 1,050 | $ | 2,130 | $ | 1,701 | $ | 778 | $ | 307 |
New money yield(3)(4)
|
4.49 | % | 4.55 | % | 4.51 | % | 3.04 | % | 3.41 | % | 5.16 | % | 3.10 | % | 6.30 | % |
Hedge Costs/Income Metrics (5)(6)
|
||||||||||||||||
3 Months Ended | ||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2021 | 2022 | |||||||||
FX hedged notional at end of period (in billions)(7)
|
$ | 9.3 | $ | 9.9 | $ | 8.8 | $ | 6.0 | $ | 6.4 | $ | 4.1 | $ | 6.4 | $ | 4.1 |
Weighted average remaining tenor (in months)(8)
|
27.7 | 21.4 | 8.5 | 13.0 | 2.6 | 0.7 | 2.6 | 0.7 | ||||||||
Amortized hedge costs for period (in millions) | $ | (228) | $ | (236) | $ | (257) | $ | (206) | $ | (76) | $ | (112) | $ | (21) | $ | (28) |
Corporate and Other (Parent Company): | ||||||||||||||||
FX hedged notional at end of period (in billions)(7)
|
$ | - | $ | 2.5 | $ | 4.9 | $ | 5.0 | $ | 5.0 | $ | 5.0 | $ | 5.0 | $ | 5.0 |
Weighted average remaining tenor (in months)(8)
|
- | 16.1 | 13.7 | 12.1 | 11.5 | 10.8 | 11.5 | 10.8 | ||||||||
Amortized hedge income (costs) for period (in millions) | $ | - | $ | 36 | $ | 89 | $ | 97 | $ | 57 | $ | 68 | $ | 12 | $ | 25 |
(1) Invested assets, including cash and short term investments, are stated at amortized cost; except for equities, which are at fair value.
|
||||||||||||||||
(2) Net of investment expenses and amortized hedge costs, year-to-date number reflected on a quarterly average basis
|
||||||||||||||||
(3) Includes fixed maturity securities, commercial mortgage and other loans, equity securities, and excludes alternative investments in limited partnerships, and any impacts from hedging
activities
|
||||||||||||||||
(4) Reported on a gross yield basis; excludes investment expenses, external management fees, and amortized hedge costs
|
||||||||||||||||
(5) See non-
|
||||||||||||||||
(6)
|
||||||||||||||||
(7) Notional is reported net of any offsetting positions within
|
||||||||||||||||
(8) Tenor based on period reporting date to settlement date
|
12
Japan Segment Portfolio Allocation by Currency (1)
|
||||||||
(Dollars In Millions, |
||||||||
Amortized
Cost (2) |
Fair Value |
Amortized
Cost (2) |
Fair Value |
|||||
JGB | $ | 50,186 | $ | 57,862 | $ | 42,618 | $ | 44,178 |
Other | 23,661 | 27,684 | 20,930 | 21,277 | ||||
Total yen denominated | 73,847 | 85,546 | 63,548 | 65,455 | ||||
USD Program | 28,913 | 31,946 | 27,212 | 27,885 | ||||
Other | 2,236 | 3,328 | 2,209 | 2,795 | ||||
US dollar denominated | 31,149 | 35,274 | 29,421 | 30,680 | ||||
Total | $ | 104,996 | $ | 120,820 | $ | 92,969 | $ | 96,135 |
Distribution of Consolidated Fixed Maturities by Sector | ||||||||
(In millions) |
Amortized Cost (2)
|
% of Total |
||||||
Government and agencies | $ | 43,854 | 46.4 | % | ||||
Municipalities | 2,590 | 2.7 | ||||||
Mortgage- and asset-backed securities | 2,167 | 2.3 | ||||||
Public utilities | 7,450 | 7.9 | ||||||
Electric | 6,036 | 6.4 | ||||||
Natural Gas | 249 | .3 | ||||||
Other | 565 | .6 | ||||||
Utility/Energy | 600 | .6 | ||||||
Sovereign and supranational | 1,238 | 1.3 | ||||||
Banks/financial institutions | 9,340 | 9.9 | ||||||
Banking | 5,633 | 6.0 | ||||||
Insurance | 1,703 | 1.8 | ||||||
Other | 2,004 | 2.1 | ||||||
Other corporate | 27,886 | 29.5 | ||||||
Basic Industry | 2,452 | 2.6 | ||||||
Capital Goods | 3,394 | 3.6 | ||||||
Communications | 2,866 | 3.0 | ||||||
Consumer Cyclical | 2,206 | 2.3 | ||||||
Consumer Non-Cyclical | 6,238 | 6.7 | ||||||
Energy | 2,664 | 2.8 | ||||||
Other | 1,371 | 1.5 | ||||||
Technology | 3,534 | 3.7 | ||||||
Transportation | 3,161 | 3.3 | ||||||
Total fixed maturity securities | $ | 94,525 | 100.0 | % | ||||
(1) The entire
|
||||||||
(2) Net of reserves
|
13
Long-Term Debt Data | ||||||||||||
Adjusted Leverage Ratios | ||||||||||||
(In Millions) | ||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||
Notes payable | $ | 5,289 | $ | 5,778 | $ | 6,569 | $ | 7,899 | $ | 7,956 | $ | 7,442 |
50% of subordinated debentures and perpetual bonds | (263) | (268) | (407.5) | (432) | (389) | (337) | ||||||
Pre-funding of debt maturities | - | - | (348) | - | - | - | ||||||
Adjusted debt (1)
|
5,026 | 5,510 | 5,814 | 7,467 | 7,568 | 7,105 | ||||||
Total Shareholders' Equity | 24,598 | 23,462 | 28,959 | 33,559 | 17,031 | 20,140 | ||||||
Accumulated other comprehensive (income) loss: | ||||||||||||
Unrealized foreign currency translation (gains) losses | 1,750 | 1,847 | 1,623 | 1,109 | 1,985 | 3,564 | ||||||
Unrealized (gains) losses on fixed maturity securities | (5,964) | (4,234) | (8,548) | (10,361) | (9,602) | 702 | ||||||
Unrealized (gains) losses on derivatives | 23 | 24 | 33 | 34 | 30 | 27 | ||||||
Effect on change in discount rate assumptions | N/A | N/A | N/A | N/A | 15,832 | 2,100 | ||||||
Pension liability adjustment | 163 | 212 | 277 | 284 | 166 | 36 | ||||||
Adjusted book value (1)
|
20,570 | 21,311 | 22,344 | 24,625 | 25,442 | 26,569 | ||||||
Adjusted capitalization ex-AOCI (1) (2)
|
$ | 25,859 | $ | 27,089 | $ | 28,565 | $ | 32,524 | $ | 33,398 | $ | 34,011 |
Adjusted debt to adjusted capitalization ex-AOCI | 19.4 | % | 20.3 | % | 20.4 | % | 23.0 | % | 22.7 | % | 20.9 | % |
Adjusted capitalization (1) (3)
|
$ | 23,946 | $ | 25,030 | $ | 26,665 | $ | 31,131 | $ | 31,247 | $ | 30,411 |
Adjusted debt to adjusted capitalization | 21.0 | % | 22.0 | % | 21.8 | % | 24.0 | % | 24.2 | % | 23.4 | % |
Debt Maturities(4)
|
||||||||||||
(In Millions) | ||||||||||||
≤ 1 year | 1 > 5 years | 5 > 10 years | 10 > 20 years | 20 years + | Total | |||||||
Senior Notes | $ | - | $ | 1,334 | $ | 2,997 | $ | 1,153 | $ | 1,191 | $ | 6,675 |
Subordinated debt | - | - | - | - | 678 | 678 | ||||||
Total | $ | - | $ | 1,334 | $ | 2,997 | $ | 1,153 | $ | 1,869 | $ | 7,353 |
(1) See non-U.S. GAAP financial measures for definition of: adjusted debt; adjusted book value; adjusted debt, including 50% of subordinated debentures and perpetual bonds; and adjusted book value, including unrealized foreign currency translation gains and losses and pension liability adjustment
(2) Adjusted capitalization ex-AOCI is the sum of adjusted debt, including 50% of subordinated debentures and perpetual bonds, plus adjusted book value
(3)Adjusted capitalization is sum of adjusted debt, including 50% of subordinated debentures and perpetual bonds, plus adjusted book value, including unrealized foreign currency translation gains and losses and pension liability adjustment
(4) Debt maturity amounts do not include discounts, premiums, deferred charges, or capital lease obligations.
14
Insurer Financial Strength Ratings | |||||
AM Best | S&P | JCR | R&I | ||
Aflac of Columbus | A+ | Aa3 | A+ | AA | AA |
Aflac of |
A+ | _ | A+ | _ | _ |
A+ | _ | _ | _ | _ | |
A+ | Aa3 | A+ | AA | AA | |
_ | _ | _ | AA | _ | |
Issuer Credit Ratings | |||||
AM Best | S&P | JCR | R&I | ||
Long-term Senior Debt | a | A3 | A- | A+ | A+ |
Junior Subordinated Debt | a- | Baa1 | BBB | _ | A- |
Aflac of Columbus | |||||
Long-term Senior Debt | aa | _ | A+ | AA | _ |
Long-term Senior Debt | aa | _ | A+ | AA | _ |
Subordinated Bonds | _ | _ | _ | AA- | _ |
The outlook for all ratings assigned by |
|||||
15
Aflac |
||||||||||||||||||||
Statements of Pretax Adjusted Earnings | ||||||||||||||||||||
(Before Management Fee) | ||||||||||||||||||||
(In Millions) | ||||||||||||||||||||
Years Ended |
3 Months Ended |
12 Months Ended |
||||||||||||||||||
% | % | |||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||
Revenues: | ||||||||||||||||||||
Net earned premiums | ||||||||||||||||||||
Gross premiums | $ | 5,563 | $ | 5,711 | $ | 5,818 | $ | 5,762 | $ | 5,540 | $ | 1,371 | $ | 1,366 | $ | 5,540 | $ | 5,467 | ||
Assumed (ceded) | - | (3) | (11) | (4) | 73 | 19 | 22 | 73 | 103 | |||||||||||
Total net earned premiums | 5,563 | 5,708 | 5,808 | 5,758 | 5,613 | 1,391 | 1,388 | (.2) | 5,613 | 5,570 | (.8) | |||||||||
Adjusted net investment income | 721 | 727 | 720 | 705 | 754 | 197 | 192 | (2.5) | 754 | 755 | .1 | |||||||||
Other income excl. realized foreign | ||||||||||||||||||||
exchange gains (losses) | 5 | 8 | 22 | 102 | 121 | 31 | 41 | 121 | 161 | |||||||||||
Total adjusted revenues | 6,289 | 6,443 | 6,550 | 6,565 | 6,489 | 1,619 | 1,621 | .1 | 6,489 | 6,486 | - | |||||||||
Benefits and claims: | ||||||||||||||||||||
Benefits and claims, net | ||||||||||||||||||||
Incurred claims -direct | 2,526 | 2,560 | 2,611 | 2,498 | 2,183 | 598 | 526 | 2,183 | 2,245 | |||||||||||
Incurred claims -assumed (ceded) | (4) | (4) | (5) | (1) | 89 | 33 | 19 | 89 | 104 | |||||||||||
Increase in FPB -direct | 363 | 331 | 268 | 271 | 463 | 42 | 111 | 463 | 326 | |||||||||||
Increase in FPB -assumed (ceded) | - | (1) | (2) | (3) | (11) | (2) | (2) | (11) | 4 | |||||||||||
Total benefits and claims, net, excluding reserve remeasurement |
N/A | N/A | N/A | N/A | 2,724 | 672 | 655 | 2,724 | 2,679 | |||||||||||
Reserve remeasurement gain (loss) | N/A | N/A | N/A | N/A | (85) | (11) | (41) | (85) | (124) | |||||||||||
Total benefits and claims, net | 2,885 | 2,887 | 2,871 | 2,765 | 2,639 | 660 | 614 | (7.0) | 2,639 | 2,555 | (3.2) | |||||||||
Adjusted expenses: | ||||||||||||||||||||
Amortization of deferred policy | ||||||||||||||||||||
acquisition costs | 502 | 534 | 573 | 570 | 442 | 110 | 115 | 4.5 | 442 | 455 | 2.9 | |||||||||
Insurance commissions | 580 | 585 | 590 | 576 | 550 | 138 | 142 | 2.9 | 550 | 553 | .5 | |||||||||
Insurance and other expenses | 1,077 | 1,152 | 1,244 | 1,386 | 1,502 | 428 | 411 | (4.0) | 1,502 | 1,564 | 4.1 | |||||||||
Total adjusted expenses | 2,159 | 2,271 | 2,407 | 2,532 | 2,494 | 676 | 667 | 2,494 | 2,573 | |||||||||||
Total benefits and adjusted expenses | 5,044 | 5,158 | 5,279 | 5,297 | 5,132 | 1,337 | 1,282 | (4.1) | 5,132 | 5,127 | (.1) | |||||||||
Pretax adjusted earnings | $ | 1,245 | $ | 1,285 | $ | 1,272 | $ | 1,268 | $ | 1,356 | $ | 282 | $ | 339 | 20.2 | $ | 1,356 | $ | 1,359 | .2 |
16
Aflac |
||||||||||||
Balance Sheets | ||||||||||||
(In Millions) | ||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||
Assets: | ||||||||||||
Investments and cash | $ | 15,488 | $ | 14,518 | $ | 16,141 | $ | 17,949 | $ | 18,324 | $ | 15,987 |
Receivables, net of allowance for credit losses (1)
|
498 | 561 | 650 | 667 | 574 | 584 | ||||||
Accrued investment income | 184 | 178 | 174 | 172 | 169 | 184 | ||||||
Deferred policy acquisition costs | 3,355 | 3,491 | 3,544 | 3,450 | 3,366 | 3,463 | ||||||
Other assets (1)
|
368 | 352 | 436 | 626 | 758 | 784 | ||||||
Total assets | $ | 19,893 | $ | 19,100 | $ | 20,945 | $ | 22,864 | $ | 23,191 | $ | 21,002 |
Liabilities and Shareholders' Equity: | ||||||||||||
Future policy benefits | $ | 8,806 | $ | 9,137 | $ | 9,404 | $ | 9,674 | $ | 14,212 | $ | 10,870 |
Policy and contract claims | 1,700 | 1,727 | 1,779 | 2,010 | 151 | 200 | ||||||
Other policy liabilities | 119 | 116 | 111 | 126 | 119 | 117 | ||||||
Deferred income taxes | 982 | (397) | 51 | 235 | (328) | (243) | ||||||
Other liabilities | 1,625 | 1,577 | 1,803 | 2,016 | 2,010 | 2,080 | ||||||
Shareholders' equity | 6,661 | 6,939 | 7,796 | 8,803 | 7,027 | 7,978 | ||||||
Total liabilities & shareholders' equity | $ | 19,893 | $ | 19,100 | $ | 20,945 | $ | 22,864 | $ | 23,191 | $ | 21,002 |
(1) Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on
net earnings or total shareholders' equity.
17
Aflac |
|||||||||||||||
Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes | |||||||||||||||
(Restated to conform to current classifications) | |||||||||||||||
(Dollars In Millions) | |||||||||||||||
Net | Total | Benefits | Total | Pretax | |||||||||||
Earned | % | Adjusted | % | Adjusted | % | & | % | % | Adjusted | % | Adjusted | % | |||
Period | Premiums | Change | NII | Change | Revenues | Change | Claims, Net | Change | Amort. | Change | Expenses | Change | Earn. | Change | |
2017 | 5,563 | 2.0 | 721 | 2.6 | 6,289 | 2.0 | 2,885 | .6 | 502 | 1.0 | 2,159 | 3.3 | 1,245 | 3.1 | |
2018 | 5,708 | 2.6 | 727 | .8 | 6,443 | 2.4 | 2,887 | .1 | 534 | 6.4 | 2,271 | 5.2 | 1,285 | 3.2 | |
2019 | 5,808 | 1.8 | 720 | (1.0) | 6,550 | 1.7 | 2,871 | (.6) | 573 | 7.3 | 2,407 | 6.0 | 1,272 | (1.0) | |
2020 | 5,758 | (.9) | 705 | (2.1) | 6,565 | .2 | 2,765 | (3.7) | 570 | (.5) | 2,532 | 5.2 | 1,268 | (.3) | |
2021 | 5,614 | (2.5) | 754 | 7.0 | 6,489 | (1.2) | 2,639 | (4.6) | 442 | (22.5) | 2,494 | (1.5) | 1,356 | 6.9 | |
2022 | 5,570 | (.8) | 755 | .1 | 6,486 | - | 2,555 | (3.2) | 455 | 2.9 | 2,573 | 3.2 | 1,359 | .2 | |
2020 | 1 | 1,483 | 1.5 | 177 | - | 1,687 | 2.9 | 713 | (1.1) | 160 | .6 | 648 | 8.7 | 326 | .9 |
2 | 1,458 | (.1) | 172 | (4.4) | 1,656 | .9 | 646 | (11.7) | 134 | 2.3 | 584 | 2.3 | 426 | 26.0 | |
3 | 1,407 | (2.6) | 175 | (4.4) | 1,606 | (1.5) | 679 | (4.4) | 141 | 1.4 | 597 | 2.1 | 329 | (1.8) | |
4 | 1,410 | (2.3) | 182 | 1.1 | 1,617 | (1.3) | 727 | 2.5 | 135 | (6.3) | 703 | 7.5 | 187 | (32.0) | |
2021 | 1 | 1,422 | (4.1) | 176 | (.6) | 1,628 | (3.5) | 696 | (2.4) | 111 | (30.6) | 600 | (7.4) | 331 | 1.5 |
2 | 1,408 | (3.4) | 189 | 9.9 | 1,627 | (1.8) | 690 | 6.8 | 111 | (17.2) | 599 | 2.6 | 338 | (20.7) | |
3 | 1,393 | (1.0) | 191 | 9.1 | 1,616 | .6 | 592 | (12.8) | 110 | (22.0) | 618 | 3.5 | 405 | 23.1 | |
4 | 1,391 | (1.3) | 197 | 8.2 | 1,619 | .1 | 660 | (9.2) | 110 | (18.5) | 676 | (3.8) | 282 | 50.8 | |
2022 | 1 | 1,413 | (.6) | 184 | 4.5 | 1,639 | .7 | 666 | (4.3) | 114 | 2.7 | 640 | 6.7 | 333 | .6 |
2 | 1,394 | (1.0) | 193 | 2.1 | 1,628 | .1 | 658 | (4.6) | 113 | 1.8 | 627 | 4.7 | 343 | 1.5 | |
3 | 1,375 | (1.3) | 185 | (3.1) | 1,599 | (1.1) | 616 | 4.1 | 114 | 3.6 | 638 | 3.2 | 345 | (14.8) | |
4 | 1,388 | (0.2) | 192 | (2.5) | 1,621 | 0.1 | 614 | (7.0) | 115 | 4.5 | 667 | (1.3) | 339 | 20.2 | |
18
Aflac U.S.
Operating Ratios | |||||||
(Before Management Fee) | |||||||
12-Mo. Rolling | Total Adjusted | Combined | Pretax | ||||
Premium | Tot. Ben./ | Amort./ | Expenses/ | Ratio/ | Profit | ||
Period |
Persistency (1)
|
Premium | Premium | Total Adj. Rev. | Total Adj. Rev. | Margin | |
2017 | 78.4 | 51.9 | 9.0 | 34.3 | 80.2 | 19.8 | |
2018 | 78.7 | 50.6 | 9.4 | 35.2 | 80.1 | 19.9 | |
2019 | 77.7 | 49.4 | 9.9 | 36.7 | 80.6 | 19.4 | |
2020 | 79.3 | 48.0 | 9.9 | 38.6 | 80.7 | 19.3 | |
2021 | 79.6 | 47.0 | 7.9 | 38.4 | 79.1 | 20.9 | |
2022 | 77.0 | 45.9 | 8.2 | 39.7 | 79.0 | 21.0 | |
2020 | 1 | 77.6 | 48.1 | 10.8 | 38.4 | 80.7 | 19.3 |
2 | 78.3 | 44.3 | 9.2 | 35.3 | 74.3 | 25.7 | |
3 | 78.8 | 48.3 | 10.0 | 37.2 | 79.5 | 20.5 | |
4 | 79.3 | 51.6 | 9.6 | 43.5 | 88.4 | 11.6 | |
2021 | 1 | 80.0 | 48.9 | 7.8 | 36.9 | 79.6 | 20.3 |
2 | 80.1 | 49.0 | 7.9 | 36.8 | 79.2 | 20.8 | |
3 | 79.9 | 42.5 | 7.9 | 38.2 | 74.9 | 25.1 | |
4 | 79.6 | 47.4 | 7.9 | 41.8 | 82.6 | 17.4 | |
2022 | 1 | 78.5 | 47.1 | 8.1 | 39.0 | 79.7 | 20.3 |
2 | 77.9 | 47.2 | 8.1 | 38.5 | 78.9 | 21.1 | |
3 | 77.6 | 44.8 | 8.3 | 39.9 | 78.4 | 21.6 | |
4 | 77.0 | 44.2 | 8.3 | 41.1 | 79.1 | 20.9 | |
(1) Excludes Network Dental & Vision, Consumer Markets, and Group Premier Life, Absence Management, and Disability Solutions products
|
|||||||
19
Aflac U.S.
Aflac |
|||||
(Dollars In Millions) | |||||
Annl. | New Annl. | ||||
Prem. | % | Prem. | % | ||
Period | In Force | Change | Sales | Change | |
2017 | 6,052 | 2.6 | 1,552 | 4.7 | |
2018 | 6,231 | 3.0 | 1,601 | 3.2 | |
2019 | 6,301 | 1.1 | 1,580 | (1.3) | |
2020 | 6,099 | (3.2) | 1,093 | (30.8) | |
2021 | 6,003 | (1.6) | 1,278 | 16.9 | |
2022 | 5,967 | (.6) | 1,483 | 16.1 | |
2020 | 1 | 6,224 | .7 | 323 | (5.2) |
2 | 6,079 | (1.7) | 161 | (55.6) | |
3 | 5,969 | (2.9) | 221 | (35.7) | |
4 | 6,099 | (3.2) | 388 | (27.2) | |
2021 | 1 | 6,027 | (3.2) | 251 | (22.1) |
2 | 5,988 | (1.5) | 264 | 64.1 | |
3 | 5,929 | (.7) | 299 | 35.0 | |
4 | 6,003 | (1.6) | 464 | 19.6 | |
2022 | 1 | 5,942 | (1.4) | 299 | 19.0 |
2 | 5,926 | (1.0) | 305 | 15.6 | |
3 | 5,889 | (.7) | 334 | 11.8 | |
4 | 5,967 | (.6) | 545 | 17.4 | |
20
Aflac U.S.
Aflac |
||||||||||||||
(New Annualized Premium Sales, Dollars in Millions) | ||||||||||||||
% of | % of | % of | Critical | % of | Hospital | % of | Dental/ | % of | ||||||
Period | Disability | Total | Life | Total | Accident | Total |
Care(1)
|
Total | Indemnity | Total | Vision | Total | Total | |
2017 | 356 | 22.9 | 78 | 5.0 | 456 | 29.4 | 354 | 22.8 | 229 | 14.8 | 79 | 5.1 | 1,552 | |
2018 | 363 | 22.7 | 88 | 5.5 | 468 | 29.2 | 354 | 22.1 | 253 | 15.8 | 75 | 4.7 | 1,601 | |
2019 | 355 | 22.5 | 97 | 6.1 | 450 | 28.5 | 346 | 21.9 | 263 | 16.6 | 69 | 4.4 | 1,580 | |
2020 | 243 | 22.3 | 80 | 7.3 | 285 | 26.1 | 242 | 22.2 | 197 | 18.0 | 45 | 4.1 | 1,093 | |
2021 | 296 | 23.1 | 114 | 9.0 | 321 | 25.1 | 273 | 21.3 | 209 | 16.4 | 65 | 5.1 | 1,278 | |
2022 | 378 | 25.5 | 156 | 10.5 | 338 | 22.8 | 299 | 20.1 | 226 | 15.3 | 85 | 5.8 | 1,483 | |
2020 | 1 | 73 | 22.6 | 25 | 7.7 | 88 | 27.3 | 68 | 21.1 | 55 | 16.9 | 14 | 4.4 | 323 |
2 | 38 | 23.9 | 14 | 8.6 | 41 | 25.7 | 33 | 20.6 | 28 | 17.1 | 7 | 4.1 | 161 | |
3 | 54 | 24.2 | 16 | 7.1 | 58 | 26.4 | 45 | 20.5 | 37 | 16.8 | 11 | 5.0 | 221 | |
4 | 79 | 20.4 | 26 | 6.6 | 98 | 25.2 | 95 | 24.5 | 77 | 20.0 | 13 | 3.3 | 388 | |
2021 | 1 | 58 | 23.1 | 17 | 6.7 | 66 | 26.3 | 57 | 22.6 | 42 | 16.7 | 11 | 4.6 | 251 |
2 | 60 | 22.7 | 19 | 7.3 | 72 | 27.2 | 56 | 21.0 | 43 | 16.4 | 14 | 5.4 | 264 | |
3 | 79 | 26.2 | 27 | 9.2 | 76 | 25.5 | 57 | 19.1 | 45 | 15.1 | 15 | 4.9 | 299 | |
4 | 100 | 21.4 | 51 | 11.0 | 107 | 23.1 | 104 | 22.3 | 79 | 17.0 | 24 | 5.2 | 464 | |
2022 | 1 | 70 | 23.3 | 24 | 7.9 | 75 | 25.3 | 63 | 21.2 | 50 | 16.7 | 17 | 5.6 | 299 |
2 | 77 | 25.2 | 26 | 8.3 | 75 | 24.6 | 63 | 20.6 | 45 | 14.9 | 19 | 6.4 | 305 | |
3 | 97 | 28.9 | 33 | 10.0 | 76 | 22.6 | 60 | 18.1 | 47 | 14.1 | 21 | 6.3 | 334 | |
4 | 135 | 24.9 | 73 | 13.4 | 112 | 20.5 | 112 | 20.6 | 84 | 15.4 | 28 | 5.2 | 545 |
Aflac |
||||||
Average | Productivity | |||||
Weekly | (Production/ | |||||
Recruited Agents | Producer | Avg. Weekly | ||||
Period | Career | Broker | Total | Equivalents | Producers) | |
2017 | 16,817 | 3,073 | 19,890 | 8,808 | 176,183 | |
2018 | 15,774 | 3,380 | 19,154 | 8,531 | 187,720 | |
2019 | 15,227 | 3,603 | 18,830 | 8,184 | 193,120 | |
2020 | 11,826 | 1,861 | 13,687 | 5,918 | 184,706 | |
2021 | 10,641 | 5,445 | 16,086 | 5,993 | 213,235 | |
2022 | 9,550 | 1,500 | 11,050 | 6,186 | 239,786 | |
2020 | 1 | 3,436 | 494 | 3,930 | 7,411 | 43,517 |
2 | 2,190 | 381 | 2,571 | 4,252 | 37,814 | |
3 | 3,136 | 486 | 3,622 | 5,485 | 40,367 | |
4 | 3,064 | 500 | 3,564 | 6,523 | 59,533 | |
2021 | 1 | 2,890 | 1,063 | 3,953 | 5,643 | 44,530 |
2 | 2,754 | 1,355 | 4,109 | 5,925 | 44,540 | |
3 | 2,502 | 1,615 | 4,117 | 5,926 | 50,448 | |
4 | 2,495 | 1,412 | 3,907 | 6,477 | 71,723 | |
2022 | 1 | 1,987 | 455 | 2,442 | 6,061 | 49,322 |
2 | 2,937 | 391 | 3,328 | 6,067 | 50,264 | |
3 | 2,358 | 339 | 2,697 | 6,010 | 55,599 | |
4 | 2,268 | 315 | 2,583 | 6,607 | 82,538 |
(1) Includes cancer, critical illness, and hospital intensive care products
21
Statements of Pretax Adjusted Earnings | ||||||||||||||||||||
(Before Management Fee) | ||||||||||||||||||||
(In Millions) | ||||||||||||||||||||
Years Ended |
3 Months Ended |
12 Months Ended |
||||||||||||||||||
% | % | |||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||
Revenues: | ||||||||||||||||||||
Net earned premiums | ||||||||||||||||||||
Gross premiums | ¥ | 1,493,299 | ¥ | 1,468,894 | ¥ | 1,450,586 | ¥ | 1,409,134 | ¥ | 1,290,527 | ¥ | 319,367 | ¥ | 309,305 | ¥ | 1,290,527 | ¥ | 1,246,657 | ||
Assumed (ceded) | (62,873) | (60,198) | (57,974) | (55,926) | (50,864) | (12,555) | (11,990) | (50,864) | (48,578) | |||||||||||
Total net earned premiums | 1,430,426 | 1,408,697 | 1,392,612 | 1,353,208 | 1,239,663 | 306,812 | 297,315 | (3.1) | 1,239,663 | 1,198,079 | (3.4) | |||||||||
Net investment income (1)
|
||||||||||||||||||||
Yen denominated | 145,114 | 141,575 | 142,473 | 138,397 | 138,513 | 34,321 | 34,272 | (.1) | 138,513 | 149,449 | 7.9 | |||||||||
US$ denominated | 131,168 | 149,801 | 157,717 | 167,541 | 202,905 | 55,667 | 55,386 | (.5) | 202,905 | 215,171 | 6.0 | |||||||||
Net investment income | 276,282 | 291,377 | 300,191 | 305,938 | 341,419 | 89,988 | 89,658 | (.4) | 341,419 | 364,621 | 6.8 | |||||||||
Amortized hedge costs on foreign investments (2)
|
(24,528) | (25,858) | (28,938) | (22,816) | (8,391) | (2,297) | (3,478) | 51.4 | (8,391) | (13,155) | 56.8 | |||||||||
Adjusted net investment income | 251,754 | 265,519 | 271,253 | 283,122 | 333,028 | 87,690 | 86,180 | (1.7) | 333,028 | 351,466 | 5.5 | |||||||||
Other income excl. realized foreign | ||||||||||||||||||||
currency gains (losses) | 4,640 | 4,636 | 4,869 | 4,497 | 4,512 | 1,071 | 1,023 | 4,512 | 4,442 | |||||||||||
Total adjusted revenues | 1,686,820 | 1,678,852 | 1,668,734 | 1,640,827 | 1,577,203 | 395,573 | 384,517 | (2.8) | 1,577,203 | 1,553,988 | (1.5) | |||||||||
Benefits and claims: | ||||||||||||||||||||
Benefits and claims, net | ||||||||||||||||||||
Incurred claims -direct | 710,251 | 724,556 | 727,491 | 734,471 | 743,247 | 182,324 | 184,223 | 743,247 | 788,572 | |||||||||||
Incurred claims -assumed (ceded) | (55,691) | (51,892) | (45,657) | (37,806) | (31,798) | (8,112) | (7,091) | (31,798) | (36,141) | |||||||||||
Increase in FPB -direct | 366,376 | 313,343 | 292,444 | 260,200 | 149,084 | 37,389 | 28,524 | 149,084 | 73,592 | |||||||||||
Increase in FPB -assumed (ceded) | (1,557) | (2,000) | (6,497) | (11,377) | (11,425) | (2,559) | (3,343) | (11,425) | (5,618) | |||||||||||
Total benefits and claims, net, excluding reserve remeasurement |
N/A | N/A | N/A | N/A | 849,108 | 209,041 | 202,312 | 849,108 | 820,405 | |||||||||||
Reserve remeasurement gain (loss) | N/A | N/A | N/A | N/A | (6,879) | (898) | (3,062) | (6,879) | (13,337) | |||||||||||
Total benefits and claims, net | 1,019,378 | 984,007 | 967,782 | 945,487 | 842,229 | 208,143 | 199,250 | (2.8) | 842,229 | 807,068 | (2.6) | |||||||||
Adjusted expenses: | ||||||||||||||||||||
Amortization of deferred policy | ||||||||||||||||||||
acquisition costs | 70,670 | 78,459 | 77,286 | 68,818 | 43,131 | 11,134 | 11,201 | .6 | 43,131 | 44,123 | 2.3 | |||||||||
Insurance commissions | 82,495 | 81,045 | 79,661 | 79,036 | 77,449 | 18,796 | 18,155 | (3.4) | 77,449 | 73,482 | (5.1) | |||||||||
Insurance and other expenses | 170,636 | 181,139 | 189,203 | 199,606 | 202,586 | 55,527 | 53,126 | (4.3) | 202,586 | 198,493 | (2.0) | |||||||||
Total adjusted expenses | 323,801 | 340,643 | 346,150 | 347,460 | 323,166 | 85,457 | 82,482 | 323,166 | 316,097 | |||||||||||
Total benefits and adjusted expenses | 1,343,180 | 1,324,651 | 1,313,932 | 1,292,947 | 1,165,395 | 293,601 | 281,732 | (4.0) | 1,165,395 | 1,123,165 | (3.6) | |||||||||
Pretax adjusted earnings | ¥ | 343,640 | ¥ | 354,201 | ¥ | 354,802 | ¥ | 347,881 | ¥ | 411,808 | ¥ | 101,973 | ¥ | 102,785 | .8 | ¥ | 411,808 | ¥ | 430,823 | 4.6 |
(1) Includes the net interest cash flows from derivatives associated with certain investment strategies
|
||||||||||||||||||||
(2) See non-
|
22
Statements of Pretax Adjusted Earnings | ||||||||||||||||||||
(Before Management Fee) | ||||||||||||||||||||
(In Millions) | ||||||||||||||||||||
Years Ended |
3 Months Ended |
12 Months Ended |
||||||||||||||||||
% | % | |||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||
Revenues: | ||||||||||||||||||||
Net earned premiums | ||||||||||||||||||||
Gross premiums | $ | 13,312 | $ | 13,307 | $ | 13,304 | $ | 13,193 | $ | 11,765 | $ | 2,809 | $ | 2,187 | $ | 11,765 | $ | 9,558 | ||
Assumed (ceded) | (561) | (546) | (532) | (524) | (463) | (110) | (85) | (463) | (372) | |||||||||||
Total net earned premiums | 12,752 | 12,762 | 12,772 | 12,670 | 11,301 | 2,698 | 2,102 | (22.1) | 11,301 | 9,186 | (18.7) | |||||||||
Net investment income (1)
|
||||||||||||||||||||
Yen denominated | 1,294 | 1,283 | 1,307 | 1,296 | 1,262 | 302 | 242 | (19.9) | 1,262 | 1,140 | (9.7) | |||||||||
US$ denominated | 1,169 | 1,356 | 1,446 | 1,569 | 1,845 | 490 | 390 | (20.4) | 1,845 | 1,641 | (11.1) | |||||||||
Net investment income | 2,463 | 2,639 | 2,753 | 2,865 | 3,107 | 792 | 632 | (20.2) | 3,107 | 2,782 | (10.5) | |||||||||
Amortized hedge costs on foreign investments (2)
|
(228) | (236) | (257) | (206) | (76) | (21) | (28) | 33.3 | (76) | (112) | 47.4 | |||||||||
Adjusted net investment income | 2,235 | 2,403 | 2,496 | 2,659 | 3,031 | 771 | 604 | (21.7) | 3,031 | 2,669 | (11.9) | |||||||||
Other income excl. realized foreign | ||||||||||||||||||||
currency gains (losses) | 41 | 41 | 45 | 42 | 41 | 10 | 7 | 41 | 35 | |||||||||||
Total adjusted revenues | 15,028 | 15,206 | 15,313 | 15,371 | 14,373 | 3,478 | 2,713 | (22.0) | 14,373 | 11,889 | (17.3) | |||||||||
Benefits and claims | ||||||||||||||||||||
Benefits and claims, net | ||||||||||||||||||||
Incurred claims -direct | 6,332 | 6,566 | 6,671 | 6,875 | 6,776 | 1,603 | 1,303 | 6,776 | 6,038 | |||||||||||
Incurred claims -assumed (ceded) | (497) | (471) | (419) | (354) | (290) | (71) | (50) | (290) | (275) | |||||||||||
Increase in FPB -direct | 3,265 | 2,836 | 2,684 | 2,437 | 1,356 | 327 | 201 | 1,356 | 562 | |||||||||||
Increase in FPB -assumed (ceded) | (14) | (18) | (60) | (107) | (104) | (22) | (23) | (104) | (43) | |||||||||||
Total benefits and claims, net, excluding reserve remeasurement |
N/A | N/A | N/A | N/A | 7,738 | 1,837 | 1,431 | 7,738 | 6,282 | |||||||||||
Reserve remeasurement gain (loss) | N/A | N/A | N/A | N/A | (62) | (6) | (22) | (62) | (91) | |||||||||||
Total benefits and claims, net | 9,087 | 8,913 | 8,877 | 8,851 | 7,675 | 1,830 | 1,408 | (21.8) | 7,675 | 6,191 | (18.1) | |||||||||
Adjusted expenses: | ||||||||||||||||||||
Amortization of deferred policy | ||||||||||||||||||||
acquisition costs | 630 | 710 | 709 | 644 | 393 | 98 | 55 | 79 | (19.4) | 393 | 338 | (14.0) | ||||||||
Insurance commissions | 736 | 735 | 731 | 740 | 706 | 165 | 128 | (22.4) | 706 | 563 | (20.3) | |||||||||
Insurance and other expenses | 1,521 | 1,640 | 1,734 | 1,873 | 1,843 | 488 | 377 | (22.7) | 1,843 | 1,517 | (17.7) | |||||||||
Total adjusted expenses | 2,887 | 3,085 | 3,174 | 3,257 | 2,942 | 751 | 584 | 2,942 | 2,417 | |||||||||||
Total benefits and adjusted expenses | 11,974 | 11,998 | 12,051 | 12,108 | 10,618 | 2,582 | 1,993 | (22.8) | 10,618 | 8,609 | (18.9) | |||||||||
Pretax adjusted earnings | $ | 3,054 | $ | 3,208 | $ | 3,261 | $ | 3,263 | $ | 3,755 | $ | 897 | $ | 720 | (19.7) | $ | 3,755 | $ | 3,281 | (12.6) |
(1) Includes the net interest cash flows from derivatives associated with certain investment strategies
|
||||||||||||||||||||
(2) See non-
|
23
Balance Sheets | ||||||||||||
(In Millions) | ||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||
Assets: | ||||||||||||
Investments and cash | ¥ | 11,854,224 | ¥ | 12,031,549 | ¥ | 12,847,994 | ¥ | 13,080,154 | ¥ | 13,645,902 | ¥ | 12,777,746 |
Receivables, net of allowance for credit losses | 37,692 | 37,083 | 28,219 | 20,782 | 22,439 | 23,138 | ||||||
Accrued investment income | 64,439 | 66,350 | 65,485 | 62,722 | 67,493 | 76,489 | ||||||
Deferred policy acquisition costs | 695,025 | 708,638 | 721,341 | 723,579 | 745,510 | 766,506 | ||||||
Other assets | 276,050 | 292,335 | 308,411 | 320,351 | 386,832 | 387,065 | ||||||
Total assets | ¥ | 12,927,431 | ¥ | 13,135,956 | ¥ | 13,971,450 | ¥ | 14,207,588 | ¥ | 14,868,176 | ¥ | 14,030,944 |
Liabilities and Shareholders' Equity: | ||||||||||||
Future policy benefits | ¥ | 8,323,560 | ¥ | 8,637,152 | ¥ | 8,924,868 | ¥ | 9,175,501 | ¥ | 11,755,704 | ¥ | 10,315,140 |
Policy and contract claims | 304,248 | 317,043 | 315,477 | 328,778 | - | 28 | ||||||
Unearned premiums | 659,977 | 552,419 | 453,133 | 361,010 | 284,045 | 227,732 | ||||||
Other policyholders' funds | 784,117 | 793,148 | 801,588 | 808,429 | 877,690 | 880,989 | ||||||
Income taxes (prim. deferred) | 431,949 | 510,528 | 618,901 | 478,969 | 36,166 | 114,688 | ||||||
Other liabilities | 150,143 | 194,949 | 357,135 | 253,219 | 502,633 | 575,554 | ||||||
Shareholders' equity | 2,273,438 | 2,130,718 | 2,500,349 | 2,801,682 | 1,411,938 | 1,916,812 | ||||||
Total liabilities & shareholders' equity | ¥ | 12,927,431 | ¥ | 13,135,956 | ¥ | 13,971,450 | ¥ | 14,207,588 | ¥ | 14,868,176 | ¥ | 14,030,944 |
24
Balance Sheets | ||||||||||||
(In Millions) | ||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |||||||
Assets: | ||||||||||||
Investments and cash | $ | 104,905 | $ | 108,392 | $ | 117,269 | $ | 126,378 | $ | 118,639 | $ | 96,290 |
Receivables, net of allowance for credit losses | 334 | 334 | 258 | 201 | 195 | 174 | ||||||
Accrued investment income | 570 | 598 | 598 | 606 | 587 | 576 | ||||||
Deferred policy acquisition costs | 6,150 | 6,384 | 6,584 | 6,991 | 6,482 | 5,776 | ||||||
Other assets | 2,443 | 2,634 | 2,815 | 3,095 | 3,363 | 2,917 | ||||||
Total assets | $ | 114,402 | $ | 118,342 | $ | 127,523 | $ | 137,271 | $ | 129,266 | $ | 105,734 |
Liabilities and Shareholders' Equity: | ||||||||||||
Future policy benefits | $ | 73,661 | $ | 77,812 | $ | 81,461 | $ | 88,652 | $ | 102,206 | $ | 77,733 |
Policy and contract claims | 2,692 | 2,856 | 2,879 | 3,177 | - | - | ||||||
Unearned premiums | 5,840 | 4,977 | 4,136 | 3,488 | 2,470 | 1,716 | ||||||
Other policyholders' funds | 6,939 | 7,145 | 7,316 | 7,811 | 7,631 | 6,639 | ||||||
Income taxes (prim. deferred) | 3,823 | 4,601 | 5,650 | 4,630 | 314 | 781 | ||||||
Other liabilities | 1,328 | 1,756 | 3,260 | 2,447 | 4,369 | 4,337 | ||||||
Shareholders' equity | 20,119 | 19,194 | 22,820 | 27,068 | 12,276 | 14,528 | ||||||
Total liabilities & shareholders' equity | $ | 114,402 | $ | 118,342 | $ | 127,523 | $ | 137,271 | $ | 129,266 | $ | 105,734 |
25
Quarterly Statements of Pretax Adjusted Earnings and Percentage Changes | |||||||||||||||
(Yen In Millions) | |||||||||||||||
Net | Total | Benefits | Total | Pretax | |||||||||||
Earned | % | Adjusted | % | Adjusted | % | & | % | % | Adjusted | % | Adjusted | % | |||
Period | Premiums | Change | NII | Change | Revenues | Change | Claims, Net | Change | Amort. | Change | Expense | Change | Earn. | Change | |
2017 | 1,430,426 | (2.7) | 251,754 | (2.0) | 1,686,820 | (2.5) | 1,019,378 | (4.5) | 70,670 | 1.2 | 323,801 | .5 | 343,640 | .6 | |
2018 | 1,408,697 | (1.5) | 265,519 | 5.5 | 1,678,852 | (.5) | 984,007 | (3.5) | 78,460 | 11.0 | 340,642 | 5.2 | 354,201 | 3.1 | |
2019 | 1,392,612 | (1.1) | 271,253 | 2.2 | 1,668,734 | (.6) | 967,782 | (1.6) | 77,286 | (1.5) | 346,150 | 1.6 | 354,802 | .2 | |
2020 | 1,353,208 | (2.8) | 283,122 | 4.4 | 1,640,827 | (1.7) | 945,487 | (2.3) | 68,818 | (11.0) | 347,459 | .4 | 347,881 | (2.0) | |
2021 | 1,239,663 | (8.4) | 333,028 | 17.6 | 1,577,203 | (3.9) | 842,229 | (10.9) | 43,131 | (37.3) | 323,166 | (7.0) | 411,808 | 18.4 | |
2022 | 1,198,079 | (3.4) | 351,466 | 5.5 | 1,553,988 | (1.5) | 807,068 | (4.2) | 44,123 | 2.3 | 316,097 | (2.2) | 430,823 | 4.6 | |
2020 | 1 | 343,054 | (2.1) | 69,812 | 4.0 | 414,045 | (1.1) | 238,148 | (1.7) | 18,842 | (5.9) | 82,939 | (2.0) | 92,958 | 1.2 |
2 | 339,891 | (2.5) | 68,036 | 2.0 | 409,126 | (1.8) | 237,328 | (1.2) | 16,697 | (14.3) | 81,648 | (4.1) | 90,150 | (1.2) | |
3 | 336,488 | (3.3) | 70,219 | (.2) | 407,874 | (2.8) | 240,025 | (1.4) | 16,001 | (16.5) | 88,661 | 2.5 | 79,188 | (11.6) | |
4 | 333,775 | (3.5) | 75,054 | 11.9 | 409,782 | (1.0) | 229,986 | (4.9) | 17,277 | (7.2) | 94,211 | 4.9 | 85,585 | 4.2 | |
2021 | 1 | 313,769 | (8.5) | 74,621 | 6.9 | 389,679 | (5.9) | 215,445 | (9.5) | 10,534 | (44.1) | 77,715 | (6.3) | 96,519 | 3.8 |
2 | 311,733 | (8.3) | 86,681 | 27.4 | 399,488 | (2.4) | 212,617 | (10.4) | 10,700 | (35.9) | 79,234 | (3.0) | 107,637 | 19.4 | |
3 | 307,350 | (8.7) | 84,035 | 19.7 | 392,463 | (3.8) | 206,023 | (14.2) | 10,762 | (32.7) | 80,760 | (8.9) | 105,680 | 33.5 | |
4 | 306,812 | (8.1) | 87,690 | 16.8 | 395,573 | (3.5) | 208,143 | (9.5) | 11,134 | (35.6) | 85,457 | (9.3) | 101,973 | 19.1 | |
2022 | 1 | 304,884 | (2.8) | 79,042 | 5.9 | 385,000 | (1.2) | 206,890 | (4.0) | 10,886 | 3.3 | 77,095 | (.8) | 101,015 | 4.7 |
2 | 302,213 | (3.1) | 94,004 | 8.4 | 397,358 | (.5) | 204,807 | (3.7) | 10,964 | 2.5 | 79,022 | (.3) | 113,529 | 5.5 | |
3 | 293,667 | (4.5) | 92,241 | 9.8 | 387,113 | (1.4) | 196,121 | (4.8) | 11,073 | 2.9 | 77,498 | (4.0) | 113,494 | 7.4 | |
4 | 297,315 | (3.1) | 86,180 | (1.7) | 384,517 | (2.8) | 199,250 | (4.3) | 11,201 | .6 | 82,482 | (3.5) | 102,785 | .8 | |
26
Operating Ratios | ||||||||
(Before Management Fee) | ||||||||
12-Mo. Rolling | Tot. Ben./ | Tot. Adj. | Combined | Pretax | ||||
Premium | Tot. Ben./ | Premiums | Amort./ | Expenses/ | Ratio/ | Profit | ||
Period |
Persistency(1)
|
Premium | (3rd sector) | Premium | Total Adj. Rev. | Total Adj. Rev. | Margin | |
2017 | 94.9 | 71.3 | 60.5 | 4.9 | 19.2 | 79.6 | 20.4 | |
2018 | 94.1 | 69.9 | 59.2 | 5.6 | 20.3 | 78.9 | 21.1 | |
2019 | 94.4 | 69.5 | 59.3 | 5.5 | 20.7 | 78.7 | 21.3 | |
2020 | 95.1 | 69.9 | 59.7 | 5.1 | 21.2 | 78.8 | 21.2 | |
2021 | 94.3 | 67.9 | 58.7 | 3.5 | 20.5 | 73.9 | 26.1 | |
2022 | 94.1 | 67.4 | 58.5 | 3.7 | 20.3 | 72.3 | 27.7 | |
2020 | 1 | 94.5 | 69.4 | 59.0 | 5.5 | 20.0 | 77.5 | 22.5 |
2 | 94.8 | 69.8 | 59.6 | 4.9 | 20.0 | 78.0 | 22.0 | |
3 | 95.0 | 71.3 | 61.7 | 4.8 | 21.7 | 80.6 | 19.4 | |
4 | 95.1 | 68.9 | 58.6 | 5.2 | 23.0 | 79.1 | 20.9 | |
2021 | 1 | 95.0 | 68.7 | 59.6 | 3.4 | 19.9 | 75.2 | 24.8 |
2 | 94.7 | 68.2 | 59.0 | 3.4 | 19.8 | 73.1 | 26.9 | |
3 | 94.5 | 67.0 | 57.8 | 3.5 | 20.6 | 73.1 | 26.9 | |
4 | 94.3 | 67.8 | 58.4 | 3.6 | 21.6 | 74.2 | 25.8 | |
2022 | 1 | 94.3 | 67.9 | 58.5 | 3.6 | 20.0 | 73.8 | 26.2 |
2 | 94.3 | 67.8 | 58.5 | 3.6 | 19.9 | 71.4 | 28.6 | |
3 | 94.3 | 66.8 | 59.4 | 3.8 | 20.0 | 70.7 | 29.3 | |
4 | 94.1 | 67.0 | 57.7 | 3.8 | 21.5 | 73.3 | 26.7 | |
(1) Premium persistency presented on a 12-month rolling basis for all periods, rather than year to date
27
Aflac Japan Sales Results | |||||||
(Yen In Millions, unless otherwise noted) | |||||||
Annl. | Third Sector | ||||||
Prem. | New Annl. | Total | |||||
In Force | % | Prem. | % | New Annual. | % | ||
Period | (Billions) | Change | Sales | Change | Premium Sales | Change | |
2017 | 1,552.2 | (3.4) | 87,417 | 4.1 | 94,851 | (16.6) | |
2018 | 1,527.1 | (1.6) | 88,813 | 1.6 | 95,894 | 1.1 | |
2019 | 1,489.3 | (2.5) | 72,836 | (18.0) | 79,697 | (16.9) | |
2020 | 1,426.5 | (4.2) | 45,110 | (38.1) | 50,852 | (36.2) | |
2021 | 1,360.6 | (4.7) | 48,977 | 8.6 | 54,764 | 7.7 | |
2022 | 1,301.0 | (4.4) | 47,998 | (2.0) | 54,765 | - | |
2020 | 1 | 1,474.3 | (2.8) | 12,486 | (26.7) | 14,021 | (25.4) |
2 | 1,457.7 | (3.4) | 8,656 | (60.9) | 9,827 | (58.8) | |
3 | 1,441.9 | (.5) | 11,167 | (33.7) | 12,601 | (32.0) | |
4 | 1,426.5 | (4.2) | 12,801 | (23.8) | 14,404 | (22.2) | |
2021 | 1 | 1,410.0 | (4.4) | 12,492 | - | 13,998 | (.2) |
2 | 1,391.7 | (4.5) | 12,125 | 40.1 | 13,602 | 38.4 | |
3 | 1,375.0 | (4.6) | 11,275 | 1.0 | 12,605 | - | |
4 | 1,360.6 | (4.7) | 13,084 | 2.2 | 14,559 | 1.1 | |
2022 | 1 | 1,345.6 | (4.6) | 10,679 | (19.0) | 11,925 | (14.8) |
2 | 1,332.0 | (4.3) | 11,372 | (6.2) | 12,731 | (6.4) | |
3 | 1,315.7 | (4.3) | 12,639 | 12.1 | 13,884 | 10.2 | |
4 | 1,301.0 | (4.4) | 13,308 | 1.7 | 16,224 | 11.4 | |
28
Aflac Japan Product Mix | ||||||||||||||||
(New Annualized Premium Sales, Yen In Billions) | ||||||||||||||||
% of | % of | Income | % of | Child | % of | % of | Ordinary | % of | % of | |||||||
Period | Cancer | Total | Medical | Total | Support | Total | Endowment | Total | WAYS | Total | Life Other | Total | Other | Total | Total | |
2017 | 53.0 | 55.8 | 32.4 | 34.1 | 2.2 | 2.3 | .5 | .5 | .6 | .6 | 5.6 | 6.0 | .6 | .7 | 94.9 | |
2018 | 63.1 | 65.8 | 23.9 | 25.0 | 1.7 | 1.8 | .3 | .3 | .5 | .5 | 5.9 | 6.1 | .5 | .5 | 95.9 | |
2019 | 47.2 | 59.2 | 24.6 | 31.0 | 1.0 | 1.2 | .2 | .2 | .4 | .5 | 5.9 | 7.4 | .4 | .5 | 79.7 | |
2020 | 28.8 | 56.6 | 15.9 | 31.2 | .5 | 1.0 | .2 | .4 | .4 | .7 | 4.8 | 9.5 | .3 | .6 | 50.9 | |
2021 | 27.0 | 49.2 | 20.4 | 37.2 | .3 | .5 | .2 | .3 | .4 | .8 | 4.9 | 9.0 | 1.6 | 3.0 | 54.8 | |
2022 | 30.9 | 56.5 | 14.6 | 26.6 | .7 | 1.3 | .2 | .3 | 1.9 | 3.5 | 4.5 | 8.1 | 2.0 | 3.7 | 54.8 | |
2020 | 1 | 7.8 | 55.5 | 4.5 | 32.4 | .2 | 1.2 | - | .3 | .1 | .6 | 1.3 | 9.3 | .1 | .7 | 14.0 |
2 | 5.4 | 54.7 | 3.2 | 32.5 | .1 | .9 | - | .4 | .1 | .8 | 1.0 | 10.0 | - | .7 | 9.8 | |
3 | 7.0 | 55.7 | 4.0 | 32.0 | .1 | .9 | .1 | .4 | .1 | .8 | 1.2 | 9.6 | .1 | .6 | 12.6 | |
4 | 8.6 | 59.7 | 4.1 | 28.4 | .1 | .8 | .1 | .3 | .1 | .8 | 1.3 | 9.3 | .1 | .7 | 14.4 | |
2021 | 1 | 6.4 | 45.4 | 6.1 | 43.3 | .1 | .6 | - | .3 | .1 | .7 | 1.2 | 8.9 | .1 | .8 | 14.0 |
2 | 6.7 | 48.9 | 5.4 | 39.7 | .1 | .6 | - | .4 | .1 | .8 | 1.2 | 8.9 | .1 | .7 | 13.6 | |
3 | 6.3 | 49.9 | 4.6 | 36.3 | .1 | .5 | - | .3 | .1 | .7 | 1.1 | 9.0 | .4 | 3.3 | 12.6 | |
4 | 7.7 | 52.7 | 4.4 | 29.9 | .1 | .4 | - | .3 | .1 | .8 | 1.2 | 8.6 | 1.1 | 7.3 | 14.6 | |
2022 | 1 | 6.4 | 53.0 | 3.8 | 31.4 | .1 | 1.1 | .1 | .3 | .1 | .7 | 1.1 | 9.0 | .5 | 4.5 | 11.9 |
2 | 6.8 | 53.4 | 3.8 | 29.9 | .3 | 2.2 | - | .2 | .1 | .8 | 1.2 | 9.2 | .6 | 4.3 | 12.7 | |
3 | 8.4 | 60.1 | 3.7 | 26.4 | .2 | 1.2 | - | .2 | .1 | .6 | 1.0 | 7.7 | .5 | 3.8 | 13.9 | |
4 | 9.5 | 58.2 | 3.4 | 20.8 | .1 | .8 | .1 | .4 | 1.6 | 10.1 | 1.1 | 7.2 | .4 | 2.5 | 16.2 | |
29
Aflac Japan Sales Force Data | ||||||||||
Number of Agencies by Type | Sales Contribution by Agency Type | |||||||||
Period | Individual/ Independent Corporate | Affiliated Corporate |
Bank | Total | Individual/ Independent Corporate | Affiliated Corporate |
Bank |
Licensed Sales
Associates(1) |
Recruited Agencies |
|
2017 | 9,492 | 1,455 | 374 | 11,321 | 42.8 | 52.0 | 5.2 | 109,197 | 174 | |
2018 | 8,453 | 1,392 | 371 | 10,216 | 40.1 | 55.3 | 4.6 | 109,482 | 85 | |
2019 | 7,683 | 1,343 | 367 | 9,393 | 45.7 | 50.0 | 4.3 | 109,265 | 77 | |
2020 | 7,231 | 1,312 | 361 | 8,904 | 52.3 | 42.6 | 5.1 | 111,886 | 48 | |
2021 | 6,779 | 1,283 | 360 | 8,422 | 51.1 | 43.7 | 5.2 | 111,854 | 62 | |
2022 | 6,159 | 1,239 | 359 | 7,757 | 49.5 | 46.5 | 4.0 | 110,259 | 38 | |
2020 | 1 | 7,537 | 1,332 | 364 | 9,233 | 52.8 | 42.7 | 4.5 | 110,129 | 17 |
2 | 7,426 | 1,329 | 364 | 9,119 | 53.8 | 42.8 | 3.4 | 109,850 | 5 | |
3 | 7,312 | 1,317 | 364 | 8,993 | 51.7 | 41.4 | 6.9 | 111,016 | 19 | |
4 | 7,231 | 1,312 | 361 | 8,904 | 51.3 | 43.4 | 5.3 | 111,886 | 7 | |
2021 | 1 | 7,142 | 1,308 | 360 | 8,810 | 54.3 | 40.6 | 5.1 | 112,252 | 13 |
2 | 7,055 | 1,305 | 359 | 8,719 | 51.1 | 44.0 | 4.9 | 113,259 | 22 | |
3 | 6,898 | 1,299 | 360 | 8,557 | 49.9 | 43.8 | 6.3 | 112,100 | 13 | |
4 | 6,779 | 1,283 | 360 | 8,422 | 49.2 | 46.3 | 4.5 | 111,854 | 14 | |
2022 | 1 | 6,447 | 1,266 | 360 | 8,073 | 48.9 | 46.5 | 4.6 | 109,873 | 6 |
2 | 6,335 | 1,255 | 359 | 7,949 | 48.4 | 48.1 | 3.5 | 110,096 | 12 | |
3 | 6,260 | 1,246 | 359 | 7,865 | 49.3 | 46.2 | 4.5 | 110,400 | 12 | |
4 | 6,159 | 1,239 | 359 | 7,757 | 51.2 | 45.4 | 3.4 | 110,259 | 8 | |
(1) Excludes Dai-ichi Life, banks, Japan Post Group and Daido Life
30
Yen/Dollar Exchange Rates | |||||
Yearly | |||||
Closing | Qtr | Cum | % | ||
Period |
Rate(1)
|
Avg | Avg | Change | |
2017 | 113.00 | N/A | 112.16 | (3.1) | |
2018 | 111.00 | N/A | 110.39 | 1.6 | |
2019 | 109.56 | N/A | 109.07 | 1.2 | |
2020 | 103.50 | N/A | 106.86 | 2.1 | |
2021 | 115.02 | N/A | 109.79 | (2.7) | |
2022 | 132.70 | N/A | 130.17 | (15.7) | |
2020 | 1 | 108.83 | 108.84 | 108.84 | 1.3 |
2 | 107.74 | 107.65 | 108.25 | 1.7 | |
3 | 105.80 | 106.23 | 107.63 | 1.4 | |
4 | 103.50 | 104.57 | 106.86 | 2.1 | |
2021 | 1 | 110.71 | 105.88 | 105.88 | 2.8 |
2 | 110.58 | 109.48 | 107.79 | .4 | |
3 | 111.92 | 110.11 | 108.58 | (.9) | |
4 | 115.02 | 113.70 | 109.79 | (2.7) | |
2022 | 1 | 122.39 | 116.18 | 116.18 | (8.9) |
2 | 136.68 | 129.39 | 122.79 | (12.2) | |
3 | 144.81 | 137.08 | 126.65 | (14.3) | |
4 | 132.70 | 141.87 | 130.17 | (15.7) | |
(1) Closing rate is based on the latest available and published
|
31
Corporate and Other
Statements of Pretax Adjusted Earnings | ||||||||||||||||||||
(Before Management Fee) | ||||||||||||||||||||
(In Millions) | ||||||||||||||||||||
Years Ended |
3 Months Ended |
12 Months Ended |
||||||||||||||||||
% | % | |||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2021 | 2022 | Change | 2021 | 2022 | Change | ||||||||||
Revenues: | ||||||||||||||||||||
Total net earned premiums | $ | 216 | $ | 208 | $ | 200 | $ | 194 | $ | 180 | $ | 42 | $ | 33 | (21.4) | $ | 180 | $ | 145 | (19.4) |
Net investment income (1)
|
35 | 77 | 88 | 80 | (73) | (88) | 19 | 121.6 | (73) | 30 | 141.1 | |||||||||
Amortized hedge income (2)
|
- | 36 | 89 | 97 | 57 | 11 | 25 | 127.3 | 57 | 68 | 19.3 | |||||||||
Adjusted net investment income | 35 | 113 | 177 | 177 | (16) | (77) | 44 | 157.1 | (16) | 98 | 712.5 | |||||||||
Other income | 21 | 18 | 15 | 13 | 11 | - | 2 | - | 11 | 24 | 118.2 | |||||||||
Total adjusted revenues | 272 | 339 | 393 | 384 | 175 | (35) | 79 | 325.7 | 175 | 267 | 52.6 | |||||||||
Benefits and expenses: | ||||||||||||||||||||
Total net benefits and claims | 209 | 199 | 194 | 180 | 161 | 38 | 31 | (18.4) | 161 | 141 | (12.4) | |||||||||
Interest expense | 122 | 120 | 133 | 164 | 165 | 39 | 39 | - | 165 | 162 | (1.8) | |||||||||
Other adjusted expenses | 154 | 159 | 137 | 155 | 142 | 40 | 53 | 32.5 | 142 | 181 | 27.5 | |||||||||
Total benefits and adjusted expenses | 486 | 478 | 464 | 499 | 469 | 118 | 123 | 4.2 | 469 | 485 | 3.4 | |||||||||
Pretax adjusted earnings | $ | (214) | $ | (139) | $ | (72) | $ | (115) | $ | (293) | $ | (152) | $ | (45) | 70.4 | $ | (293) | $ | (218) | 25.6 |
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of |
||||||||||||||||||||
(2) See non-
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32
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 yen weakens, translating yen into dollars results in fewer dollars being reported. When the yen strengthens, translating yen into dollars results in more dollars being reported. Consequently, yen weakening has the effect of suppressing current period results in relation to the comparable prior period, while 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 yen and never converted into dollars but translated into 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 document as follows:
•
|
Adjusted book value is the
|
•
|
Adjusted book value including unrealized foreign currency translation gains and losses is adjusted book value plus unrealized foreign currency translation gains and losses. Adjusted book value including unrealized foreign currency translation gains and losses per common share is adjusted book value plus unrealized foreign currency translation gains and losses at the period end divided by the ending outstanding common shares for the period presented. The Company considers adjusted book value including unrealized foreign currency translation gains and losses, and its related per share financial measure, important as they exclude certain components of AOCI, which fluctuate due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac's Japan operation. The most comparable
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•
|
Adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment is adjusted book value plus unrealized foreign currency translation gains and losses and pension liability adjustment. The Company considers adjusted book value including unrealized foreign currency translation gains and losses and pension liability adjustment important as it excludes certain components of AOCI, which fluctuates due to market movements that are outside management's control; however, it includes the impact of foreign currency as a result of the significance of Aflac's Japan operation. The most comparable
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•
|
Adjusted debt is the sum of notes payable, as recorded on the
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•
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Adjusted debt including 50% of subordinated debentures and perpetual bonds is the sum of notes payable, as recorded on the
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33
•
|
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 cannot be predicted or that are outside management's control. Adjusted revenues are
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•
|
Adjusted earnings 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. 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
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•
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Amortized hedge costs/income represent costs/income incurred or recognized as a result of using foreign currency derivatives to hedge certain foreign exchange risks in the Company's Japan segment or in Corporate and other. 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 term of the hedge. 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
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•
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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 cash flows 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 cash flows 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
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•
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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 cash flows 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
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•
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Adjusted retuon equity is adjusted earnings divided by average shareholders' equity, excluding accumulated other comprehensive income (AOCI). Management uses adjusted retuon 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 retuon equity important as it excludes components of AOCI, which fluctuate due to market movements that are outside management's control. The most comparable
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34
Attachments
Disclaimer
UNIVERSAL HEALTH SERVICES INC – 10-K – Management's Discussion and Analysis of Financial Condition and Results of Operations
PROASSURANCE CORP – 10-K – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
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