What changed in this filing

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Item 1. Financial Statements

2026-05-06 compared with 2025-11-05 · 473 added, 830 removed, 2032 unchanged (39% of the section changed)

2 unchanged sentences

Consolidated Statements of Earnings

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(In millions, except for share and per-share amounts - Unaudited) 2026 2025

27 unchanged sentences

Cash dividends per share $ .61 $ .58

(1) Includes a gain (loss) of $( 55 ) and $( 75 ) for the three-month periods and $( 55 ) and $( 80 ) for the nine-month periods ended September 30, 2025 and 2024, respectively, related to remeasurement of the deferred profit liability for limited-payment contracts.

(1) Includes a gain (loss) of an immaterial amount for the three-month periods ended March 31, 2026 and 2025, respectively, related to remeasurement of the deferred profit liability for limited-payment contracts.

See the accompanying Notes to the Consolidated Financial Statements.

1 unchanged sentence

Consolidated Statements of Comprehensive Income (Loss)

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(In millions - Unaudited) 2026 2025

19 unchanged sentences

Consolidated Balance Sheets

(In millions, except for share and per-share amounts) September 30,

(In millions, except for share and per-share amounts) March 31,

Investments and cash:

10 unchanged sentences

in 2025 (includes $ 7,907 in 2026 and $ 7,896 in 2025 of consolidated variable interest entities)

10,137 10,869

Other investments

64 unchanged sentences

Balance at March 31, 2026 $ 136 $ 3,064 $ 55,702 $ 1,901 $ ( 30,842 ) $ 29,961

Net earnings 0 0 599 0 0 599

Unrealized foreign currency translation

gains (losses) during period, net of

income taxes 0 0 0 267 0 267

Unrealized gains (losses) on fixed maturity

securities during period, net of income

taxes and reclassification adjustments 0 0 0 ( 595 ) 0 ( 595 )

Unrealized gains (losses) on derivatives

during period, net of income taxes 0 0 0 1 0 1

Effect of changes in discount rate assumptions

during period, net of income taxes 0 0 0 1,695 0 1,695

Pension liability adjustment during period,

net of income taxes 0 0 0 0 0 0

Dividends to shareholders (1)

($ .58 per share)

0 0 ( 312 ) 0 0 ( 312 )

Exercise of stock options 0 0 0 0 0 0

Share-based compensation 0 30 0 0 0 30

Purchases of treasury stock 0 0 0 0 ( 839 ) ( 839 )

Treasury stock reissued 0 9 0 0 7 16

Balance at June 30, 2025 $ 136 $ 2,958 $ 52,595 $ ( 491 ) $ ( 27,998 ) $ 27,200

(1) Dividends to shareholders are recorded in the period in which they are declared.

See the accompanying Notes to the Consolidated Financial Statements.

Aflac Incorporated and Subsidiaries

Consolidated Statements of Shareholders’ Equity (continued)

(In millions, except for per share amounts - Unaudited) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Shareholders'

Balance at June 30, 2025 $ 136 $ 2,958 $ 52,595 $ ( 491 ) $ ( 27,998 ) $ 27,200

Net earnings 0 0 1,639 0 0 1,639

Unrealized foreign currency translation

gains (losses) during period, net of

income taxes 0 0 0 ( 222 ) 0 ( 222 )

Unrealized gains (losses) on fixed maturity

securities during period, net of income

taxes and reclassification adjustments 0 0 0 127 0 127

Unrealized gains (losses) on derivatives

during period, net of income taxes 0 0 0 1 0 1

Effect of changes in discount rate assumptions

during period, net of income taxes 0 0 0 1,238 0 1,238

Pension liability adjustment during period,

net of income taxes 0 0 0 0 0 0

Dividends to shareholders (1)

($ .58 per share)

0 0 ( 311 ) 0 0 ( 311 )

Exercise of stock options 0 1 0 0 0 1

Share-based compensation 0 5 0 0 0 5

Purchases of treasury stock 0 0 0 0 ( 1,009 ) ( 1,009 )

Treasury stock reissued 0 13 0 0 6 19

Balance at September 30, 2025 $ 136 $ 2,977 $ 53,923 $ 653 $ ( 29,001 ) $ 28,688

(1) Dividends to shareholders are recorded in the period in which they are declared.

See the accompanying Notes to the Consolidated Financial Statements.

Aflac Incorporated and Subsidiaries

Consolidated Statements of Shareholders’ Equity (continued)

(In millions, except for per share amounts - Unaudited) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Shareholders'

Balance at December 31, 2024

Net earnings 0 0 1,879 0 0 1,879

Unrealized foreign currency translation

gains (losses) during period, net of

income taxes 0 0 0 ( 597 ) 0 ( 597 )

Unrealized gains (losses) on fixed maturity

securities during period, net of income

taxes and reclassification adjustments 0 0 0 ( 47 ) 0 ( 47 )

Unrealized gains (losses) on derivatives

during period, net of income taxes 0 0 0 ( 4 ) 0 ( 4 )

Effect of changes in discount rate assumptions

during period, net of income taxes 0 0 0 1,065 0 1,065

Pension liability adjustment during period,

net of income taxes 0 0 0 1 0 1

Dividends to shareholders (1)

($ .00 per share)

Exercise of stock options 0 4 0 0 0 4

Share-based compensation 0 18 0 0 0 18

Purchases of treasury stock 0 0 0 0 ( 793 ) ( 793 )

Treasury stock reissued 0 13 0 0 13 26

Balance at March 31, 2024 $ 136 $ 2,806 $ 49,872 $ ( 5,102 ) $ ( 24,175 ) $ 23,537

Net earnings 0 0 1,755 0 0 1,755

Unrealized foreign currency translation

gains (losses) during period, net of

income taxes 0 0 0 ( 425 ) 0 ( 425 )

Unrealized gains (losses) on fixed maturity

securities during period, net of income

taxes and reclassification adjustments 0 0 0 ( 691 ) 0 ( 691 )

Unrealized gains (losses) on derivatives

during period, net of income taxes 0 0 0 4 0 4

Effect of changes in discount rate assumptions

during period, net of income taxes 0 0 0 2,920 0 2,920

Pension liability adjustment during period,

net of income taxes 0 0 0 2 0 2

Dividends to shareholders (1)

($ .50 per share)

$ 136 $ 2,894 $ 52,277 $ ( 2,978 ) $ ( 26,231 ) $ 26,098

Exercise of stock options 0 2 0 0 0 2

Share-based compensation 0 12 0 0 0 12

Purchases of treasury stock 0 0 0 0 ( 810 ) ( 810 )

Treasury stock reissued 0 15 0 0 8 23

Balance at June 30, 2024 $ 136 $ 2,835 $ 51,345 $ ( 3,292 ) $ ( 24,977 ) $ 26,047

(1) Dividends to shareholders are recorded in the period in which they are declared.

See the accompanying Notes to the Consolidated Financial Statements.

Aflac Incorporated and Subsidiaries

Consolidated Statements of Shareholders’ Equity (continued)

(In millions, except for per share amounts - Unaudited) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Shareholders'

Balance at June 30, 2024 $ 136 $ 2,835 $ 51,345 $ ( 3,292 ) $ ( 24,977 ) $ 26,047

Net earnings 0 0 29 0 0 29

13 unchanged sentences

($ .00 per share)

0 0 ( 280 ) 0 0 ( 280 )

Exercise of stock options 0 4 0 0 0 4

2 unchanged sentences

Treasury stock reissued 0 13 0 0 14 27

Balance at September 30, 2024 $ 136 $ 2,876 $ 50,972 $ ( 3,677 ) $ ( 25,477 ) $ 24,830

Balance at March 31, 2025 $ 136 $ 2,919 $ 52,308 $ ( 1,859 ) $ ( 27,166 ) $ 26,338

(1) Dividends to shareholders are recorded in the period in which they are declared.

2 unchanged sentences

Consolidated Statements of Cash Flows

Nine Months Ended September 30,

Three Months Ended March 31,

(In millions - Unaudited) 2026 2025

5 unchanged sentences

Amortization of deferred policy acquisition costs 221 216

Increase in policy liabilities ( 732 ) ( 259 )

Change in policy liabilities 519 ( 136 )

Change in income tax liabilities 224 117

4 unchanged sentences

Proceeds from investments sold or matured:

Available-for-sale fixed maturity securities 9,566 4,832

Fixed maturity securities available-for-sale 1,563 5,935

Equity securities 251 96

Held-to-maturity fixed maturity securities 2 2

Fixed maturity securities held-to-maturity 33 0

Commercial mortgage and other loans 454 500

Costs of investments acquired:

Available-for-sale fixed maturity securities ( 10,760 ) ( 4,589 )

Fixed maturity securities available-for-sale ( 2,766 ) ( 6,624 )

Equity securities ( 245 ) ( 101 )

7 unchanged sentences

Purchases of treasury stock ( 1,000 ) ( 900 )

Proceeds from borrowings 1,039 823

Principal payments under debt obligations ( 400 ) 0

4 unchanged sentences

Net cash provided (used) by financing activities ( 1,762 ) ( 1,261 )

Effect of exchange rate changes on cash and cash equivalents ( 18 ) 70

Effect of foreign exchange rate changes on cash and cash equivalents ( 41 ) 33

Net change in cash and cash equivalents ( 591 ) ( 998 )

31 unchanged sentences

markets its consumer markets products through TOIC.

The Company's insurance operations in the U.S.

and Japan service the two markets for the Company's insurance business.

The Parent Company, other operating business units that are not individually reportable, reinsurance activities, including internal reinsurance activity with Aflac Re Bermuda Ltd.(Aflac Re), and other business activities not included in Aflac Japan or Aflac U.S., as well as intercompany eliminations, are included in Corporate and other.

The Company's insurance operations in Japan and the U.S.

service the two markets for the Company's insurance business.

The Parent Company, other operating business units that are not individually reportable, reinsurance activities, including reinsurance activity of Aflac Re Bermuda Ltd.

(Aflac Re), and other business activities not included in Aflac Japan or Aflac U.S., as well as intercompany eliminations, are included in Corporate and other.

Basis of Presentation

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GAAP issued by the FASB are derived from the FASB Accounting Standards Codification TM (ASC).

The unaudited consolidated financial statements include the accounts of the Parent Company, its subsidiaries, and those entities required to be consolidated under applicable accounting standards.

All material intercompany accounts and transactions have been eliminated.

Results of operations for interim periods are not necessarily indicative of results for the entire year.

As a result, these financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2025 (2025 Annual Report).

Use of Estimates

The preparation of financial statements in conformity with U.S.

GAAP requires the Company to make estimates based on currently available information when recording transactions resulting from business operations.

The most significant items on the Company's balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments and derivatives, deferred policy acquisition costs (DAC), liabilities for future policy benefits and income taxes.

These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, interest rates, mortality, morbidity, commission and other acquisition expenses and terminations by policyholders.

1 unchanged sentence

Although some variability is inherent in these estimates, the Company believes the amounts provided are reasonable and reflective of the best estimates of management.

The unaudited consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards.

All material intercompany accounts and transactions have been eliminated.

In the opinion of management, the accompanying unaudited consolidated financial statements of the Company contain all adjustments, consisting of normal recurring accruals, which are necessary to fairly present the consolidated balance sheets as of September 30, 2025 and December 31, 2024, the consolidated statements of earnings and comprehensive income (loss) for the three- and nine-month periods ended September 30, 2025 and 2024, the consolidated statements of shareholders' equity for the three-month periods ended March 31, 2025 and 2024, June 30, 2025 and 2024, and September 30, 2025 and 2024, and the consolidated statements of cash flows for the nine-month periods ended September 30, 2025 and 2024.

Results of operations for interim periods are not necessarily indicative of results for the entire year.

Reclassifications :

2 unchanged sentences

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Accounting Standards Update (ASU) 2023-07 Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued amendments that add certain segment disclosures related to significant segment expenses and require that a public entity disclose the title and position of the Chief Operating Decision Maker (CODM) and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

The Company adopted this guidance for the annual period beginning January 1, 2024, and interim periods beginning January 1, 2025.

The adoption of this guidance did not have an impact on the Company’s financial position or results of operations.

See Note 2 for expanded disclosures required as a result of the amended guidance.

Accounting Pronouncements Pending Adoption

8 unchanged sentences

The Company is evaluating the impact of adoption on its disclosures.

ASU 2023-09 Income Taxes (Topic 740) - Improvements to Income Tax Disclosures

In December 2023, the FASB issued amendments that require enhanced income tax disclosures including (1) disclosure of specific categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction.

It also includes certain other amendments to improve the effectiveness of income tax disclosures.

The amendments are effective for annual periods beginning after December 15, 2024.

Early adoption is permitted.

The adoption of this guidance has no impact on the Company’s financial position or results of operations.

The Company has developed the required disclosures in accordance with the new guidance, which will be reflected in the notes contained in the Company's 2025 Form 10-K..

Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to the Company's business.

3 unchanged sentences

Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance.

In addition, the Parent Company, other operating business units that are not individually reportable, reinsurance activities, including internal reinsurance activity with Aflac Re, and other business activities not included in Aflac Japan or Aflac U.S., as well as intercompany eliminations, are included in Corporate and other.

In addition, the Parent Company, other operating business units that are not individually reportable, reinsurance activities, including reinsurance activity of Aflac Re, and other business activities not included in Aflac Japan or Aflac U.S., as well as intercompany eliminations, are included in Corporate and other.

The Company does not allocate corporate overhead expenses to business segments.

The Company’s reportable segments are regularly reviewed by the Company's CODM, Senior Executive Vice President and Chief Financial Officer, in deciding how to allocate resources and in assessing performance.

The Company’s reportable segments are regularly reviewed by the Company's Chief Operating Decision Maker (CODM), Senior Executive Vice President and Chief Financial Officer, in deciding how to allocate resources and in assessing performance.

The Company's CODM reviews and approves the annual budget and operating forecast, which allocates resources to segments and serves as a key benchmark for tracking performance and accountability of each segment's operating results.

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GAAP total acquisition and operating expenses including the impact of interest from derivatives associated with notes payable but excluding any non-recurring or other items not associated with the normal course of the Company’s insurance operations and that do not reflect the Company’s underlying business performance.

Aflac Japan's adjusted revenues as a percentage of the Company's total adjusted revenues were 53 % and 55 % in the three-month periods and 53 % and 56 % in the nine-month periods ended September 30, 2025 and 2024, respectively.

The percentage of the Company's total assets attributable to Aflac Japan was 77 % at both September 30, 2025 and December 31, 2024.

Aflac Japan's adjusted revenues as a percentage of the Company's total adjusted revenues were 51 % and 53 % in the three-month periods ended March 31, 2026 and 2025, respectively.

The percentage of the Company's total assets attributable to Aflac Japan was 76 % at both March 31, 2026 and December 31, 2025.

Information regarding operations by reportable segment and Corporate and other is presented in the following tables.

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(In millions) 2026 2025

8 unchanged sentences

Total adjusted revenue Aflac U.S.

1,728 1,684 5,177 5,068

Corporate and other (2)

343 225 1,005 723

Total adjusted revenues 4,243 4,319

6 unchanged sentences

Total revenues $ 4,346 $ 3,398

(2) The change in value of federal historic rehabilitation and solar investments in partnerships of $ 6 and $ 57 for the three-month periods and $ 22 and $ 119 for the nine-month periods ended September 30, 2025, and 2024, respectively, is included as a reduction to net investment income.

Tax credits on these investments of $ 7 and $ 78 for the three-month periods and $ 24 and $ 142 for the nine-month periods ended September 30, 2025, and 2024, respectively, have been recorded as an income tax benefit in the consolidated statements of earnings.

See Note 3 for additional information on these investments.

Three Months Ended September 30, Nine Months Ended September 30,

(2) The change in value of federal historic rehabilitation and solar investments in partnerships of $ 5 and $ 8 for the three-month periods ended March 31, 2026 and 2025, respectively, is included as a reduction to net investment income.

Tax credits on these investments of $ 5 and $ 7 for the three-month periods ended March 31, 2026 and 2025, respectively, have been reported as an income tax benefit in the consolidated statements of earnings.

See Note 1 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report for additional information on these investments.

Three Months Ended March 31,

(In millions) 2026 2025

2 unchanged sentences

$ 2,172 $ 2,272

1,728 1,684 5,177 5,068

Corporate and other (2)

343 225 1,005 723

Total adjusted revenues 4,243 4,319

16 unchanged sentences

Total benefits and adjusted expenses Aflac U.S.

1,353 1,334 4,056 3,979

Corporate and other 292 283

2 unchanged sentences

Aflac Japan (1)

$ 1,216 $ 1,073 $ 2,728 $ 2,747

375 350 1,121 1,089

Corporate and other (2)

11 unchanged sentences

Effect of foreign currency translation on after-tax adjusted earnings ( 8 ) ( 8 )

See Note 3 for additional information on these investments.

(2) The change in value of federal historic rehabilitation and solar investments in partnerships of $ 5 and $ 8 for the three-month periods ended March 31, 2026, and 2025, respectively, is included as a reduction to net investment income.

Tax credits on these investments of $ 5 and $ 7 for the three-month periods ended March 31, 2026, and 2025, respectively, have been reported as an income tax benefit in the consolidated statements of earnings.

See Note 1 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report for additional information on these investments.

Internal Reinsurance:

Aflac Re is a Bermuda domiciled insurer that reinsures certain policies issued by Aflac Japan and is reported as a part of Corporate and other.

Under these internal reinsurance transactions, Aflac Japan's net earned premiums are reduced by the amount of premiums ceded to Aflac Re.

Aflac Re recorded net earned premiums of $ 173 million and $ 132 million for the three-month periods and $ 529 million and $ 396 million for the nine-month periods ended September 30, 2025 and 2024, respectively, related to these reinsurance transactions with Aflac Japan.

Aflac Re is a Bermuda-domiciled insurer that reinsures certain policies issued by Aflac Japan as well as external parties and is reported as part of Corporate and other.

Under the internal reinsurance transactions, Aflac Japan's net earned premiums are reduced by the amount of premiums ceded to Aflac Re.

Aflac Re recorded net earned premiums of $ 158 million and $ 178 million for the three-month periods ended March 31, 2026 and 2025, respectively, related to these reinsurance transactions with Aflac Japan.

These internal reinsurance transactions have no financial statement impact on a consolidated basis, except for the effect of foreign currency accounting.

2 unchanged sentences

The Company's total assets were as follows:

(In millions) September 30,

(In millions) March 31,

2026 December 31,

4 unchanged sentences

Investment Holdings

The amortized cost and allowance for credit losses for the Company's investments in fixed maturity securities and the fair values of these investments as well as the fair value of the Company's investments in equity securities are shown in the following tables.

September 30, 2025

March 31, 2026

(In millions) Amortized

53 unchanged sentences

Other currencies:

Mortgage- and asset-backed securities 44 0 4 0 48

Public utilities 52 0 4 0 56

Other corporate 25 0 2 0 27

1 unchanged sentence

Total securities available-for-sale $ 65,263 $ 0 $ 4,782 $ 5,924 $ 64,121

September 30, 2025

March 31, 2026

(In millions) Amortized

25 unchanged sentences

Total securities held-to-maturity $ 16,125 $ 5 $ 16,120 $ 87 $ 731 $ 15,476

September 30,

2026 December 31,

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Total equity securities $ 851 $ 887

The methods of determining the fair values of the Company's investments in fixed maturity securities and equity securities are described in Note 5.

During the first nine months of 2025 and 2024, respectively, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category.

For additional information on the Company's valuation methodology for fixed maturity and equity securities, see Note 5.

During the first three months of 2026 and 2025, respectively, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category.

Contractual and Economic Maturities

The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2025, were as follows:

The contractual and economic maturities of the Company's investments in fixed maturity securities at March 31, 2026, were as follows:

(In millions) Amortized

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(1) Net of allowance for credit losses

Economic maturities are used for certain debt instruments with no stated maturity where the expected maturity date is based on the combination of features in the financial instrument such as the right to call or prepay obligations or changes in coupon rates.

Economic maturities are used for certain fixed maturity securities with no stated maturity where the expected maturity date is based on the combination of features in the financial instrument such as the right to call or prepay obligations or changes in coupon rates.

Investment Concentrations

7 unchanged sentences

Investment exposures that individually exceeded 10% of shareholders' equity were as follows:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(In millions) Credit

5 unchanged sentences

Net Investment Gains and Losses

Information regarding pretax net gains and losses from investments is as follows:

Three Months Ended September 30, Nine Months Ended September 30,

Information regarding pretax net investment gains and losses was as follows:

Three Months Ended March 31,

(In millions) 2026 2025

11 unchanged sentences

Credit losses:

Fixed maturity securities held-to-maturity 1 0

Commercial mortgage and other loans ( 50 ) ( 53 )

Impairment losses 0 ( 55 ) 0 ( 55 )

Loan commitments 2 ( 2 )

6 unchanged sentences

Total net investment gains (losses) $ 49 $ ( 963 )

For the nine-month period ended September 30, 2025, the Company recognized an impairment loss of $ 6 million on an office-type real estate owned (REO) property classified as held-and-used for the production of income.

The impairment was based on the Company's evaluation of a material adverse change in occupancy and resulted in an estimated fair value of the REO property of $ 12 million.

For the three-month period ended March 31, 2026, the Company recognized impairment losses of $ 24 million on real estate owned (REO) properties classified as held-and-used for the production of income.

The impairments were based on the Company's evaluation of a material adverse change in occupancy and resulted in an estimated fair value of the REO properties of $ 179 million.

The fair value was based on expected future cash flows utilizing inputs classified as Level 3 under the fair value guidance in ASC 820.

The unrealized holding gains, net of losses, recorded as a component of net investment gains and losses for the three-month period ended September 30, 2025 that relate to equity securities held at the September 30, 2025 reporting date were $ 11 million.

The unrealized holding gains, net of losses, recorded as a component of net investment gains and losses for the three-month period ended September 30, 2024 that relate to equity securities held at the September 30, 2024 reporting date were $ 34 million.

The unrealized holding gains, net of losses, recorded as a component of net investment gains and losses for the nine-month period ended September 30, 2025 that relate to equity securities held at the September 30, 2025 reporting date were $ 46 million.

The unrealized holding gains, net of losses, recorded as a component of net investment gains and losses for the nine-month period ended September 30, 2024 that relate to equity securities held at the September 30, 2024 reporting date were $ 79 million.

The unrealized holding losses, net of gains, included in net investment gains and losses for the three-month period ended March 31, 2026 that relate to equity securities held at the March 31, 2026 reporting date were $ 30 million.

The unrealized holding gains, net of losses, included in net investment gains and losses for the three-month period ended March 31, 2025 that relate to equity securities held at the March 31, 2025 reporting date were $ 55 million.

Unrealized Investment Gains and Losses

1 unchanged sentence

The net effect on shareholders’ equity of unrealized gains and losses from fixed maturity securities was as follows:

(In millions) September 30,

(In millions) March 31,

2026 December 31,

3 unchanged sentences

Gross Unrealized Loss Aging

The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the periods ended September 30, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

September 30, 2025

The following tables present the fair values and gross unrealized losses of the Company's available-for-sale securities for the periods ended March 31, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

March 31, 2026

Total Less than 12 months 12 months or longer

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From these reviews, the Company evaluates the issuers' continued ability to service the Company's investment through payment of interest and principal.

Assuming no credit-related factors develop, unrealized gains and losses on available-for-sale securities are expected to diminish as investments near maturity.

Based on its credit analysis, the Company believes that the issuers of its available-for-sale investments in the sectors shown in the table above have the ability to service their obligations to the Company.

Assuming no credit-related factors develop and excluding any impact resulting from fluctuations in the yen/dollar exchange rate, unrealized gains and losses on available-for-sale securities are expected to diminish as investments near maturity.

Based on its credit analysis, the Company believes that the issuers of its available-for-sale securities in the sectors presented in the table above have the ability to service their obligations to the Company.

Further, the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

However, if the Company identifies certain available-for-sale securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit-related factors, an allowance for credit losses is recognized.

Based on an evaluation of its securities currently in an unrealized loss position, the Company has determined that those securities should not have an allowance for credit losses as of September 30, 2025 .

Refer to the Allowance for Credit Losses section below for additional information.

As of September 30, 2025 and December 31, 2024, the Company had an immaterial amount of fixed maturity securities on nonaccrual status.

Refer to the Allowance for Credit Losses Methodology section below for additional information.

As of March 31, 2026 and December 31, 2025, the Company had an immaterial amount of fixed maturity securities on nonaccrual status.

Commercial Mortgage and Other Loans

The Company classifies its transitional real estate loans (TREs), commercial mortgage loans (CMLs), middle market loans (MMLs), and other loans as held-for-investment and includes them in the commercial mortgage and other loans line on the consolidated balance sheets.

The Company carries them on the balance sheet at amortized cost less an estimated allowance for credit losses.

The following table reflects the composition of the carrying value for commercial mortgage and other loans by property type as of the periods presented.

September 30, 2025 December 31, 2024

The following table presents the composition of the carrying value for commercial mortgage and other loans by property type as of the periods presented.

March 31, 2026 December 31, 2025

(In millions) Amortized

21 unchanged sentences

Total net commercial mortgage and other loans $ 9,770 $ 9,765

CMLs and TREs are secured by properties entirely within the U.S.

Commercial mortgage loans (CMLs) and transitional real estate loans (TREs) are secured by properties entirely within the U.S.

(with the largest concentrations in California ( 22 %), Texas ( 14 %) and Florida ( 7 %)).

MMLs are issued only to companies domiciled within the U.S.

Middle market loans (MMLs) are issued only to companies domiciled within the U.S.

Transitional Real Estate Loans

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These loans provide funding for properties undergoing a change in their physical characteristics and/or economic profile and do not typically require any principal repayment prior to the maturity date.

As of September 30, 2025, the Company had $ 165 million in outstanding commitments to fund TREs.

As of March 31, 2026, the Company had $ 131 million in outstanding commitments to fund TREs.

These commitments are contingent on the final underwriting and due diligence to be performed.

5 unchanged sentences

These loans are generally considered to be below investment grade.

As of September 30, 2025, the Company had commitments of approximately $ 732 million to fund future MMLs.

As of March 31, 2026, the Company had commitments of approximately $ 692 million to fund future MMLs.

These commitments are contingent upon the availability of MMLs that meet the Company's underwriting criteria.

2 unchanged sentences

The infrastructure loan portfolio weighted average rating is investment grade.

As of September 30, 2025, the Company had commitments of approximately $ 1 million to fund future other loans.

As of March 31, 2026, the Company had commitments of approximately $ 1 million to fund future other loans.

These commitments are contingent upon the availability of other loans that meet the Company's underwriting criteria.

Credit Quality Indicators

For TREs, the Company’s key credit quality indicators include performance of the loan and loan-to-value (LTV), which is calculated by dividing the current outstanding loan balance by the estimated property value, primarily using values at origination.

Given that TREs involve properties undergoing a repositioning of their commercial profile, LTV provides the most insight into the credit risk of the loan.

The Company monitors the performance of the loans periodically, but not less frequently than quarterly.

The monitoring process also focuses on higher risk loans, which include those that are delinquent or for which foreclosure or deed in lieu of foreclosure is anticipated.

For CMLs, the Company’s key credit quality indicators include LTV and debt service coverage ratios (DSCR).

DSCR is the most recently available net operating income of the underlying property compared to the required debt service of the loan.

For MMLs and held-to-maturity fixed maturity securities, the Company’s key credit quality indicator is credit ratings.

The Company’s held-to-maturity portfolio is composed of investment grade securities that are senior unsecured instruments, while its MMLs generally have below-investment-grade ratings but are typically senior secured instruments.

The Company monitors the credit ratings periodically, but not less frequently than quarterly.

For other loans, the Company’s key credit quality indicator is credit ratings.

The Company monitors these credit ratings periodically, but not less frequently than quarterly.

The following tables present as of September 30, 2025 the amortized cost basis of TREs, CMLs, MMLs, and other loans by year of origination and credit quality indicator.

Transitional Real Estate Loans

(In millions) 2025 2024 2023 2022 2021 Prior Total

Loan-to-Value Ratio:

0%-59.99% $ 0 $ 0 $ 0 $ 371 $ 391 $ 10 $ 772

60%-69.99% 0 0 77 400 418 402 1,297

70%-79.99% 0 0 14 776 621 43 1,454

80% or greater 0 0 0 187 297 310 794

Total $ 0 $ 0 $ 91 $ 1,734 $ 1,727 $ 765 $ 4,317

Current-period gross

$ 0 $ 0 $ 0 $ 5 $ 0 $ 24 $ 29

Commercial Mortgage Loans

(In millions) 2025 2024 2023 2022 2021 Prior Total Weighted-Average DSCR

Loan-to-Value Ratio:

0%-59.99% $ 0 $ 0 $ 32 $ 0 $ 245 $ 949 $ 1,226 2.75

60%-69.99% 0 0 0 0 25 69 94 2.13

70%-79.99% 0 0 0 0 0 8 8 1.50

80% or greater 0 12 0 0 0 102 114 0.85

Total $ 0 $ 12 $ 32 $ 0 $ 270 $ 1,128 $ 1,442 2.55

Weighted Average DSCR 0.00 1.10 2.55 0.00 3.05 2.45

Current-period gross

$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Middle Market Loans

(In millions) 2025 2024 2023 2022 2021 Prior Revolving Loans Total

Credit Ratings:

BBB $ 39 $ 47 $ 32 $ 0 $ 58 $ 107 $ 9 $ 292

BB 322 428 37 349 326 619 61 2,142

B 112 204 47 286 405 412 26 1,492

CCC 26 2 0 9 75 195 14 321

CC 0 0 0 14 0 16 5 35

C and lower 0 0 0 0 17 83 5 105

Total $ 499 $ 681 $ 116 $ 658 $ 881 $ 1,432 $ 120 $ 4,387

Current-period gross

$ 0 $ 0 $ 0 $ 2 $ 23 $ 44 $ 0 $ 69

(In millions) 2025 2024 2023 2022 2021 Prior Revolving Loans Total

Credit Ratings:

A $ 0 $ 0 $ 0 $ 70 $ 0 $ 0 $ 0 $ 70

AA 0 0 0 8 3 0 0 11

BBB 6 232 69 25 0 0 0 332

Total $ 6 $ 232 $ 69 $ 103 $ 3 $ 0 $ 0 $ 413

Current-period gross

$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Past Due and Nonaccrual Loans

The following tables present an aging of past due and nonaccrual loans at amortized cost, before allowance for credit losses, as of the periods presented.

September 30, 2025

March 31, 2026

(In millions) Current Less Than

6 unchanged sentences

Total $ 9,536 $ 127 $ 564 $ 691 $ 10,227 $ 674

(1) As of September 30, 2025, there were no loans that were 90 days or more past due that continued to accrue interest.

(1) As of March 31, 2026, there were no loans that were 90 days or more past due that continued to accrue interest.

December 31, 2025

8 unchanged sentences

(1) As of December 31, 2025, there were no loans that were 90 days or more past due that continued to accrue interest.

For the three-month period ended September 30, 2025, the Company recognized no interest income for TREs, CMLs, MMLs, or other loans on nonaccrual status.

For the nine-month period ended September 30, 2025, the Company recognized $ 1 million of interest income for TREs, CMLs, MMLs, or other loans on nonaccrual status.

For the three- and nine-month periods ended September 30, 2024, the Company recognized no interest income for TREs, CMLs, MMLs, or other loans on nonaccrual status.

Of these loans, TREs with an amortized cost of $ 45 million and $ 140 million had no credit loss allowance as of September 30, 2025 and December 31, 2024, respectively, because these loans are collateral dependent assets for which the estimated fair values of the collateral were in excess of amortized cost.

As of September 30, 2025 and December 31, 2024, MMLs with an amortized cost of $ 21 million and $ 5 million, respectively, were on nonaccrual status without an allowance for credit loss.

• For the three-month periods ended March 31, 2026 and 2025, the Company recognized $ 7 million and $ 1 million, respectively, of interest income on loans that were on nonaccrual status.

• Of these loans, TREs with an amortized cost of $ 83 million and $ 30 million had no credit loss allowance as of March 31, 2026 and December 31, 2025, respectively, because these loans are collateral dependent assets for which the estimated fair values of the collateral were in excess of amortized cost.

• As of March 31, 2026 and December 31, 2025, MMLs with an amortized cost of $ 40 million and $ 36 million, respectively, were on nonaccrual status without an allowance for credit losses.

Loan Modifications to Borrowers Experiencing Financial Difficulties

The Company granted certain loan modifications to borrowers experiencing financial difficulty during the first nine months of 2025 and 2024.

The Company granted certain loan modifications to borrowers experiencing financial difficulty during the first three months of 2026 and 2025.

The types of modifications granted may include interest rate reductions, principal forgiveness, other-than-insignificant payment delays, term extensions or a combination of these types of modifications.

The amount, timing, and extent of modifications granted are considered in determining any credit loss allowance recorded.

The amount, timing, and extent of modifications granted are considered in determining any allowance for credit loss recorded.

Loans that have both been modified and are paid or written off during the period, resulting in an amortized cost balance of zero at the end of the period, are not included in the disclosures below.

1 unchanged sentence

Three Months Ended

September 30, 2025

March 31, 2026

(In millions) Amortized Cost (1)

1 unchanged sentence

Middle market loans:

Term extension $ 13 .3 % Term extension of 17 months on average

Principal forgiveness and term extension $ 5 .1 % Reduction in the amortized cost basis of $ 11 million and term extension of 13 months on average

Principal forgiveness, term

extension and interest rate reduction

13 .3 Reduction in the amortized cost basis of $ 5 million, term extension of 45 months on average and reduction in the weighted-average contractual interest rate from 10.5 % to 9.5 %.

(1) Net of allowance for credit losses

Three Months Ended

September 30, 2024

(In millions) Amortized Cost (1)

% of Total Financial Effect

Transitional Real Estate Loans:

Other-than-insignificant payment

delays $ 123 2.3 % Delay in payments of 24 months on average

(1) Net of allowance for credit losses

Nine Months Ended

September 30, 2025

March 31, 2025

(In millions) Amortized Cost (1)

% of Total Financial Effect

Transitional Real Estate Loans:

Term extension $ 158 3.9 % Term extension of 20 months on average

Term extension and interest rate reduction 155 3.8 Term extension of 26 months on average and reduction in the weighted-average contractual interest rate from 4.8 % to 4.3 %

Middle market loans:

Principal forgiveness $ 1 0.0 % Reduction in the amortized cost basis of $ 3 million

Term extension 46 1.1 Term extension of 9 months on average

Term extension 33 1.0 Term extension of six months on average

Other-than-insignificant

payment delays 47 1.0 Delay in principal and interest payments of 23 months on average

Principal forgiveness and term

extension 35 .8 Reduction in the amortized cost basis of $ 40 million and term extension of 33 months on average

Principal forgiveness, term

extension and interest rate reduction

13 .3 Reduction in the amortized cost basis of $ 5 million, term extension of 45 months on average and reduction in the weighted-average contractual interest rate from 10.5 % to 9.5 %.

(1) Net of allowance for credit losses

Nine Months Ended

September 30, 2024

(In millions) Amortized Cost (1)

% of Total Financial Effect

Transitional Real Estate Loans:

Other-than-insignificant payment

delays $ 198 3.8 % Delay in payments of 29 months on average

Other-than-insignificant payment delays and interest rate

216 4.1 Delay in payments of 47 months on average and reduction in the weighted-average contractual interest rate from 7.9 % to 6.6 %

(1) Net of allowance for credit losses

The following tables present an aging of loans that received modifications in the 12 months preceding the period presented, at amortized cost.

September 30, 2025

March 31, 2026

(In millions) Current Less Than

4 unchanged sentences

Total $ 331 $ 9 $ 43 $ 43

September 30, 2024

March 31, 2025

(In millions) Current Less Than

2 unchanged sentences

Transitional real estate loans $ 347 $ 0 $ 0 $ 0

Middle market loans 96 0 0 20

Total $ 443 $ 0 $ 0 $ 20

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

Loans that were granted a modification in the past 12 months, as of September 30, 2025 and 2024, and subsequently defaulted in the three- and nine-month periods ended September 30, 2025 and 2024, were immaterial.

As of September 30, 2025 and December 31, 2024, the Company had $ 14 million of outstanding commitments to lend additional funds to borrowers experiencing financial difficulty that were granted a loan modification.

Loans that were granted a modification in the past 12 months, as of March 31, 2026 and 2025, and subsequently defaulted in the three-month periods ended March 31, 2026 and 2025, were immaterial.

As of March 31, 2026, the Company had no outstanding commitments to lend additional funds to borrowers experiencing financial difficulty that were granted a loan modification in the current reporting period, compared with $ 15 million as of December 31, 2025.

Allowance for Credit Losses

The Company calculates its allowance for credit losses for held-to-maturity securities, loan receivables and loan commitments by grouping assets with similar risk characteristics when there is not a specific expectation of a loss for an individual asset.

For held-to-maturity securities, MMLs, and MML commitments, the Company groups assets by credit ratings, industry, and country.

The Company groups CMLs and TREs and respective loan commitments by property type, property location and the property’s LTV and DSCR.

On a quarterly basis, CMLs and TREs within a portfolio segment that share similar risk characteristics are pooled for calculation of credit loss allowance.

On an ongoing basis, TREs, CMLs and other loans with dissimilar risk characteristics (i.e., loans with significant declines in credit quality), such as collateral dependent mortgage loans (i.e., when the borrower is experiencing financial difficulty, including when foreclosure is probable), are evaluated individually for credit loss.

For example, the credit loss allowance for a collateral dependent loan is established as the excess of amortized cost over the estimated fair value of the loan’s underlying collateral, less selling cost when foreclosure is probable.

Accordingly, the change in the estimated fair value of the collateral dependent loans, which are evaluated individually for credit loss, is recorded as a change in the credit loss allowance as a component of net investment gains (losses) in the consolidated statements of earnings.

The credit allowance for held-to-maturity securities and loan receivables is estimated using a probability-of-default (PD) / loss-given-default (LGD) method, discounted for the time value of money.

For held-to-maturity securities, available-for-sale securities and loan receivables, the Company includes the change in present value due to the passage of time in the change in the allowance for credit losses.

The Company’s methodology for estimating credit losses utilizes the contractual maturity date of the financial asset, adjusted when necessary to reflect the expected timing of repayment (such as prepayment options, renewal options, call options, or extension options).

The Company applies reasonable and supportable forecasts of macroeconomic variables that impact the determination of PD / LGD over a two-year period for held-to-maturity securities and MMLs.

The Company reverts to historical loss information over one year, following the two-year forecast period.

For the CML and TRE portfolio, the Company applies reasonable and supportable forecasts of macroeconomic variables as well as national and local real-estate market factors to estimate future credit losses where the market factors revert back to historical levels over time with the period being dependent on current market conditions, projected market conditions and difference in the current and historical market levels for each factor.

The Company continuously monitors the estimation methodology, due to changes in portfolio composition, changes in underwriting practices and significant events or conditions and makes adjustments as necessary.

The Company’s held-to-maturity portfolio includes Japan Government and Agency securities of $ 16.1 billion amortized cost as of September 30, 2025 that meet the requirements for zero-credit-loss expectation and therefore these asset classes have been excluded from the current expected credit loss measurement.

An investment in an available-for-sale security may be impaired if the fair value falls below amortized cost.

The Company regularly reviews its available-for-sale portfolio for declines in fair value.

The Company's available-for-sale impairment model focuses on the ultimate collection of the cash flows from its investments and whether the Company has the intent to sell or if it is more likely than not the Company would be required to sell the security prior to recovery of its amortized cost.

The determination of the amount of impairments under this model is based upon the Company's periodic evaluation and assessment of known and inherent risks associated with the respective securities.

Such evaluations and assessments are revised as conditions change and new information becomes available.

When determining the Company's intention to sell a security prior to recovery of its amortized cost basis, the Company evaluates facts and circumstances such as, but not limited to, future cash flow needs, decisions to reposition its security portfolio, and risk profile of individual investment holdings.

The Company performs ongoing analyses of its liquidity needs, which includes cash flow testing of its policy liabilities, debt maturities, projected dividend payments, and other cash flow and liquidity needs.

The Company’s methodology for estimating credit losses for available-for-sale securities utilizes the discounted cash flow model, based on past events, current market conditions and future economic conditions, as well as industry analysis and credit ratings of the securities.

In addition, the Company evaluates the specific issuer’s probability of default and expected recovery of its position in the event of default based on the underlying financial condition and assets of the borrower as well as seniority and/or security of other debt holders in the issuer when developing management’s best estimate of expected cash flows.

The following table presents the roll forward of the allowance for credit losses by portfolio segment for loans and by accounting classification for securities.

6 unchanged sentences

Three Months Ended

September 30, 2025:

Balance at June 30, 2025

March 31, 2026:

Balance at December 31, 2025

$ ( 277 ) $ ( 9 ) $ ( 138 ) $ ( 17 ) $ ( 5 ) $ 0 $ ( 446 )

3 unchanged sentences

Change in foreign exchange 0 0 0 0 0 0 0

Balance at September 30, 2025

Balance at March 31, 2026

$ ( 286 ) $ ( 6 ) $ ( 163 ) $ ( 15 ) $ ( 4 ) $ 0 $ ( 474 )

Three Months Ended

September 30, 2024:

Balance at June 30, 2024

March 31, 2025:

Balance at December 31, 2024

$ ( 199 ) $ ( 14 ) $ ( 140 ) $ ( 17 ) $ ( 5 ) $ 0 $ ( 375 )

3 unchanged sentences

Change in foreign exchange 0 0 0 0 0 0 0

Balance at September 30, 2024

Balance at March 31, 2025

$ ( 203 ) $ ( 15 ) $ ( 150 ) $ ( 19 ) $ ( 5 ) $ 0 $ ( 392 )

Nine Months Ended

September 30, 2025:

Balance at December 31, 2024

As of March 31, 2026, the Company identified TREs with an amortized cost of $ 139 million in anticipation of potential foreclosure or deed in lieu of foreclosure transactions.

As of March 31, 2026, the Company established an allowance for credit losses of $ 61 million related to these loans.

As of March 31, 2026, the Company's held-to-maturity portfolio includes Japan Government and Agency securities with an amortized cost of $ 15.0 billion that meet the requirements for zero-credit-loss expectation and therefore have been excluded from the measurement of the allowance for credit losses.

Allowance for Credit Losses Methodology

Available-for-sale Securities

For available-for-sale securities, the Company evaluates estimated credit losses only when the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors.

The Company’s methodology for estimating an allowance for credit losses for available-for-sale securities utilizes the discounted cash flow model, based on past events, current market conditions and future economic conditions, as well as industry analysis and credit ratings of the securities.

An investment in an available-for-sale security may be impaired if the fair value falls below amortized cost.

The Company regularly reviews its available-for-sale portfolio for declines in fair value.

The determination of the amount of impairments under this model is based upon the Company's periodic evaluation and

assessment of known and inherent risks associated with the respective securities.

Such evaluations and assessments are revised as conditions change and new information becomes available.

Held-to-maturity Securities, Loan Receivables, and Loan Commitments

For held-to-maturity securities, MMLs, and MML commitments, the Company groups assets by industry, country, and key credit quality indicators.

The Company groups CMLs and TREs and respective loan commitments by property type, property location and key credit quality indicators.

On a quarterly basis, CMLs and TREs within a portfolio segment that share similar risk characteristics are pooled for the allowance calculation.

The allowance for credit losses for held-to-maturity securities and loan receivables is estimated using a probability-of-default (PD) / loss-given-default (LGD) method, discounted for the time value of money.

For held-to-maturity securities, available-for-sale securities, and loan receivables, the Company includes the change in present value due to the passage of time in the change in the allowance for credit losses.

The Company applies reasonable and supportable forecasts of macroeconomic variables that impact the determination of PD / LGD over a two-year period for held-to-maturity securities and MMLs.

The Company reverts to historical loss information over one year, following the two-year forecast period.

For off-balance sheet credit exposure primarily attributable to loan commitments that are not unconditionally cancellable, the Company considers the contractual period of exposure to credit risk, the likelihood that funding will occur, the risk of loss, and the current conditions and expectations of future economic conditions to estimate the allowance for credit losses.

Key Credit Quality Indicators

The Company’s key credit quality indicators used in the grouping of assets are outlined by investment type below.

• For held-to-maturity securities and MMLs, the Company’s key credit quality indicator is credit ratings.

The Company monitors the credit ratings periodically, but not less frequently than quarterly.

• For TREs, the Company’s key credit quality indicators include performance of the loan and loan-to-value (LTV), which is calculated by dividing the current outstanding loan balance by the estimated property value, primarily using values at origination.

Given that TREs involve properties undergoing a repositioning of their commercial profile, LTV provides the most insight into the credit risk of the loan.

The Company monitors the performance of the loans periodically, but not less frequently than quarterly.

The monitoring process also focuses on higher risk loans, which include those that are delinquent or for which foreclosure or deed in lieu of foreclosure is anticipated.

• For CMLs, the Company’s key credit quality indicators include LTV and debt service coverage ratios (DSCR).

DSCR is the most recently available net operating income of the underlying property compared to the required debt service of the loan.

• For other loans, the Company’s key credit quality indicator is credit ratings.

The Company monitors these credit ratings periodically, but not less frequently than quarterly.

The following tables present as of March 31, 2026 the amortized cost basis of TREs, CMLs, MMLs, and other loans by year of origination and key credit quality indicator.

Transitional Real Estate Loans

(In millions) 2026 2025 2024 2023 2022 Prior Total

Loan-to-Value Ratio:

0%-59.99% $ 0 $ 0 $ 0 $ 0 $ 317 $ 274 $ 591

(Addition to) release of allowance for credit losses

60%-69.99% 0 0 0 27 394 854 1,275

Writeoffs, net of recoveries 29 0 69 0 0 0 98

Change in foreign exchange 0 0 0 0 0 0 0

Balance at September 30, 2025

70%-79.99% 0 0 0 14 628 462 1,104

Nine Months Ended

September 30, 2024:

Balance at December 31, 2023

80% or greater 63 0 0 0 155 551 769

Total $ 63 $ 0 $ 0 $ 41 $ 1,494 $ 2,141 $ 3,739

Current-period gross

$ 0 $ 0 $ 0 $ 0 $ 8 $ 0 $ 8

(Addition to) release of allowance for credit losses

Commercial Mortgage Loans

(In millions) 2026 2025 2024 2023 2022 Prior Total Weighted-Average DSCR

Loan-to-Value Ratio:

0%-59.99% $ 0 $ 11 $ 0 $ 32 $ 0 $ 1,182 $ 1,225 2.73

Writeoffs, net of recoveries 54 3 50 0 0 0 107

Change in foreign exchange 0 0 0 0 0 0 0

Balance at September 30, 2024

60%-69.99% 13 20 0 0 0 63 96 2.02

As of September 30, 2025, the Company identified TREs with an amortized cost of $ 136 million in anticipation of potential foreclosure or deed in lieu of foreclosure transactions.

As of September 30, 2025, the Company established a credit allowance of $ 42 million related to these loans.

70%-79.99% 0 0 0 0 0 32 32 1.49

80% or greater 0 0 12 0 0 77 89 1.05

Total $ 13 $ 31 $ 12 $ 32 $ 0 $ 1,354 $ 1,442 2.55

Weighted Average DSCR 1.52 1.83 1.09 2.56 0.00 2.59

Current-period gross

$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Middle Market Loans

(In millions) 2026 2025 2024 2023 2022 Prior Revolving Loans Total

Credit Ratings:

BBB $ 0 $ 21 $ 55 $ 37 $ 0 $ 95 $ 10 $ 218

BB 164 388 533 73 312 805 67 2,342

B 0 248 132 45 253 690 37 1,405

CCC 0 25 3 0 34 300 31 393

CC 0 5 2 0 9 67 6 89

C and lower 6 0 0 0 0 40 5 51

Total $ 170 $ 687 $ 725 $ 155 $ 608 $ 1,997 $ 156 $ 4,498

Current-period gross

$ 0 $ 0 $ 0 $ 0 $ 0 $ 11 $ 0 $ 11

(In millions) 2026 2025 2024 2023 2022 Prior Revolving Loans Total

Credit Ratings:

A $ 0 $ 0 $ 0 $ 0 $ 64 $ 0 $ 0 $ 64

AA 0 0 0 0 8 3 0 11

BBB 74 36 249 0 25 24 0 408

BB 0 0 0 65 0 0 0 65

Total $ 74 $ 36 $ 249 $ 65 $ 97 $ 27 $ 0 $ 548

Current-period gross

$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Other Investments

The table below reflects the composition of the carrying value for other investments as of the periods presented.

(In millions) September 30,

The table below presents the composition of the carrying value for other investments as of the periods presented.

(In millions) March 31,

2026 December 31,

7 unchanged sentences

(2) Includes tax credit investments and asset classes such as private equity and real estate funds

The Parent Company invests in partnerships that specialize in rehabilitating historic structures or the installation of solar equipment in order to receive federal historic rehabilitation and solar tax credits.

These investments are classified as limited partnerships and included in other investments in the consolidated balance sheets.

The change in value of each investment is recorded as a reduction to net investment income.

Tax credits generated by these investments are recorded as an income tax benefit in the consolidated statements of earnings.

REO consists of office buildings or other commercial properties obtained through foreclosure or deed in lieu of foreclosure of certain of the Company’s TREs.

As of September 30, 2025 and December 31, 2024, all REO was classified as held-and-used for the production of income, which is carried at cost less accumulated depreciation.

Depreciation expense was $ 8 million and $ 4 million for the three-month periods and $ 21 million and $ 8 million for the nine-month periods ended September 30, 2025 and 2024, respectively.

Additionally, as of September 30, 2025 and December 31, 2024, accumulated depreciation was $ 35 million and $ 14 million, respectively.

The Company had $ 3.1 billion and $ 2.8 billion in outstanding commitments to fund investments in limited partnerships, which included $ 2.0 billion and $ 2.1 billion of unfunded commitments related to VIEs that are non-consolidated as of September 30, 2025 and December 31, 2024, respectively.

Variable Interest Entities (VIEs)

As of March 31, 2026 and December 31, 2025, all REO was classified as held-and-used for the production of income.

Depreciation expense on REO was $ 7 million and $ 6 million for the three-month periods ended March 31, 2026 and 2025, respectively.

Additionally, as of March 31, 2026 and December 31, 2025, accumulated depreciation on REO was $ 46 million and $ 41 million, respectively.

The Company had $ 2.8 billion and $ 3.0 billion in outstanding commitments to fund investments in limited partnerships, which included $ 2.1 billion and $ 2.1 billion of unfunded commitments related to variable interest entities (VIEs) that are non-consolidated as of March 31, 2026 and December 31, 2025, respectively.

Variable Interest Entities

In the normal course of its activities, the Company invests in legal entities that are VIEs.

The Company's variable interests in VIEs are limited to the debt and equity instruments issued by them.

The Company's variable interests in these VIEs are limited to the debt and equity instruments issued by them.

With the exception of commitments to limited partnerships and to certain loan investments made in the normal course of business, the Company has not provided any direct or contingent obligations to fund the limited activities of these VIEs, or support related to the limited activities of these VIEs, and does not have any intention to do so in the future, nor has it provided any direct or indirect financial guarantees.

The Company's risk of loss related to its interests in any of its VIEs is limited to the carrying value of the related investments, and in certain cases, to any unfunded commitments held in the VIE.

The Company's risk of loss related to its interests in any of its VIEs is typically limited to the carrying value of the related investments, and in certain cases, to any unfunded commitments held in the VIE.

For certain reinsurance-related trusts, however, the Company is contractually obligated to contribute additional assets to maintain required collateral levels, potentially exposing the Company to losses exceeding the carrying value of the assets held in the trust.

For those VIEs other than certain unit trust structures, the Company's involvement is passive in nature.

4 unchanged sentences

Investments in Consolidated Variable Interest Entities

(In millions) September 30,

(In millions) March 31,

2026 December 31,

6 unchanged sentences

Total liabilities of consolidated VIEs $ 806 $ 765

(1) As of March 31, 2026, the Company's investments in consolidated VIEs also held cash and cash equivalents of $ 975 million, of which $ 709 million was restricted.

(2) Consists entirely of alternative investments in limited partnerships, which represent VIEs where the Company is not the primary beneficiary and therefore are not consolidated

11 unchanged sentences

Investments in Unit Trust Structures

The Company also utilizes unit trust structures in its Aflac Japan segment to invest in various asset classes, which include CMLs, MMLs, TREs, other loans and limited partnerships.

As the sole investor of these VIEs, the Company is required to consolidate these trusts under U.S.

The limited partnership investments are comprised of private equity and real estate funds.

The Company utilizes unit trust structures in Aflac Japan to invest in various asset classes, which include CMLs, MMLs, TREs, other loans and limited partnerships.

As the sole investor of these VIEs, the Company is required to consolidate these trusts.

The limited partnership investments are comprised of private equity and real estate.

The Company's loss exposure to these VIEs is limited to its original investments, together with any unfunded portion of the Company's commitments made in the normal course of business to fund certain loan investments and limited partnership investments, as described in the Commercial Mortgage and Other Loans and Other Investments sections of this note.

Excluding these commitments, the Company does not provide financial or other support to consolidated VIEs.

Reinsurance-Related Trust

In connection with an assumed reinsurance transaction, assets transferred by the ceding company were placed in a trust to collateralize the Company's obligations to the ceding company.

Cash and other assets placed in the trust continue to be owned by the Company;

however, their use is restricted based on the terms of the transaction.

The trust is a VIE, and the Company consolidates the trust as its primary beneficiary.

VIEs - Not Consolidated

The table below reflects the carrying value and balance sheet caption in which the Company's investments in VIEs that are not consolidated are reported.

The table below presents the carrying value and balance sheet caption in which the Company's investments in VIEs that are not consolidated are reported.

Investments in Variable Interest Entities Not Consolidated

(In millions) September 30,

(In millions) March 31,

2026 December 31,

6 unchanged sentences

The Company's involvement in the related VIEs is limited to that of a passive investor in asset-backed securities issued by the VIEs.

The Company also invests in fixed maturity debt securities issued by VIEs that are the primary financing vehicles used by their corporate sponsors to raise financing in the capital markets.

The Company also invests in fixed maturity securities issued by VIEs that are the primary financing vehicles used by their corporate sponsors to raise financing in the capital markets.

The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them.

9 unchanged sentences

Securities Lending and Pledged Securities

The Company lends fixed maturity securities and, from time to time, public equity securities to financial institutions in short-term securities lending transactions.

These short-term securities lending arrangements increase investment income with minimal risk.

The Company receives cash or other securities as collateral for such loans.

The Company's securities lending policy requires that the fair value of the securities received as collateral be 102 % or more of the fair value of the loaned securities and that unrestricted cash received as collateral be 100 % or more of the fair value of the loaned securities.

The securities loaned continue to be carried as investment assets on the Company's balance sheet during the terms of the loans and are not reported as sales.

For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral.

For loans where the Company receives as collateral securities that the Company is not permitted to sell or repledge, the collateral is not reflected in the consolidated financial statements.

Details of collateral by loaned security type and remaining maturity of the agreements were as follows:

In the normal course of business, the Company enters into securities lending transactions.

Details of the collateral by loaned security type and remaining maturity of the agreements were as follows:

Securities Lending Transactions Accounted for as Secured Borrowings

Remaining Contractual Maturity of the Agreements

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(In millions) Overnight

2 unchanged sentences

Continuous (1)

days 30-90 days Total

Securities lending

11 unchanged sentences

therefore, they are classified as Overnight and Continuous.

In connection with securities lending, in addition to cash collateral received, the Company received from counterparties securities collateral of $ 1.6 billion and $ 3.0 billion at September 30, 2025 and December 31, 2024, respectively, which may not be sold or re-pledged, unless the counterparty is in default.

Such securities collateral is not reflected on the consolidated financial statements.

The Company did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of September 30, 2025, and December 31, 2024, respectively.

In connection with securities lending, in addition to cash collateral received, the Company received from counterparties securities collateral of $ 327 million and $ 2.2 billion at March 31, 2026 and December 31, 2025, respectively, which may not be sold or re-pledged, unless the counterparty is in default.

Such securities collateral is not reflected in the consolidated balance sheets.

The Company did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of March 31, 2026, and December 31, 2025, respectively.

Certain fixed maturity securities can be pledged as collateral as part of derivative transactions, or pledged to support state deposit requirements on certain investment programs.

For additional information regarding pledged securities related to derivative transactions, see Note 4.

For additional information on the Company's investments and financial instruments, see the accompanying Notes 4 and 5 and Notes 1, 4 and 5 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.

DERIVATIVE INSTRUMENTS

The Company's freestanding derivative financial instruments include:

• foreign currency forwards and options used in hedging foreign exchange risk on U.S.

dollar-denominated investments in Aflac Japan's portfolio, with options used on a standalone basis and/or in a collar strategy;

• foreign currency forwards and options used to economically hedge certain portions of forecasted cash flows denominated in yen and hedge the Company's long term exposure to a weakening yen;

• foreign currency swaps used to hedge the foreign currency exchange risk associated with certain investments denominated in other foreign currencies in Aflac Japan's portfolio;

• cross-currency swaps, also referred to as foreign currency swaps, associated with certain senior notes and subordinated debentures;

• foreign currency swaps that are associated with VIE bond purchase commitments, and investments in special-purpose entities, including VIEs where the Company is the primary beneficiary;

• interest rate swaps used to economically hedge interest rate fluctuations in certain variable-rate investments;

• interest rate swaptions used to hedge changes in the fair value associated with interest rate fluctuations for certain U.S.

dollar-denominated available-for-sale fixed-maturity securities;

• bond purchase commitments at the inception of investments in consolidated VIEs.

Some of the Company's derivatives are designated as cash flow hedges, fair value hedges or net investment hedges;

however, other derivatives do not qualify for hedge accounting or the Company elects not to designate them as accounting hedges.

Derivative Types

Foreign currency forwards and options are executed for the Aflac Japan segment in order to hedge the currency risk on the carrying value of certain U.S.

The Company's freestanding derivative instruments include:

• Foreign currency forwards

• Foreign currency options

• Foreign currency swaps

• Cross-currency swaps

• Interest rate swaps

• Interest rate swaptions (swaptions)

• Bond purchase commitments

Foreign currency forwards and options are executed for Aflac Japan in order to hedge the foreign currency exchange risk on the carrying value of certain U.S.

dollar-denominated investments.

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In situations where the maturity of the forwards and options is shorter than the underlying investment being hedged, the Company may enter into new forwards and options near maturity of the existing derivative in order to continue hedging the underlying investment.

In forward transactions, Aflac Japan agrees with another party to buy a fixed amount of yen and sell a corresponding amount of U.S.

In forward transactions, Aflac Japan agrees with another party to buy a fixed amount of Japanese yen and sell a corresponding amount of U.S.

dollars at a specified future date.

The Company also uses one-sided foreign currency put options to mitigate the settlement risk on U.S.

dollar-denominated assets related to extreme foreign currency rate changes.

dollar-denominated assets related to extreme foreign exchange rate changes.

From time to time, Aflac Japan also executes foreign currency option transactions in a collar strategy, where Aflac Japan agrees with another party to simultaneously purchase put options and sell call options.

In the purchased put transactions, Aflac Japan obtains the option to buy a fixed amount of yen and sell a corresponding amount of U.S.

In the purchased put transactions, Aflac Japan obtains the option to buy a fixed amount of Japanese yen and sell a corresponding amount of U.S.

dollars at a specified future date.

In the sold call transactions, Aflac Japan agrees to sell a fixed amount of yen and buy a corresponding amount of U.S.

In the sold call transactions, Aflac Japan agrees to sell a fixed amount of Japanese yen and buy a corresponding amount of U.S.

dollars at a specified future date.

The combination of purchasing the put option and selling the call option results in no net premium being paid (i.e.

a costless or zero-cost collar).

From time to time, the Company may also enter into foreign currency forwards and options to hedge the currency risk associated with the net investment in Aflac Japan.

The combination of purchasing the put option and selling the call option results in no net premium being paid (i.e., a costless or zero-cost collar).

From time to time, the Company may also enter into foreign currency forwards and options to hedge the foreign currency exchange risk associated with the net investment in Aflac Japan.

In these forward transactions, the Company agrees with another party to buy a fixed amount of U.S.

dollars and sell a corresponding amount of yen at a specified price at a specified future date.

In the option transactions, the Company may use a combination of foreign currency options to protect expected future cash flows by simultaneously purchasing yen put options (options that protect against a weakening yen) and selling yen call options (options that limit participation in a strengthening yen).

dollars and sell a corresponding amount of Japanese yen at a specified price at a specified future date.

In the option transactions, the Company may use a combination of foreign currency options to protect expected future cash flows by simultaneously purchasing Japanese yen put options (options that protect against a weakening Japanese yen) and selling Japanese yen call options (options that limit participation in a strengthening Japanese yen).

The combination of these two actions create a zero-cost collar.

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There may also be periodic exchanges of payments at specified intervals based on the agreed upon rates and notional amounts.

Foreign currency swaps are used primarily in the consolidated VIEs in the Company's Aflac Japan portfolio to convert foreign-denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations.

The Company also uses foreign currency swaps to economically hedge the foreign exchange rate risk on certain investments denominated in other foreign currencies in Aflac Japan's portfolio, as well as to economically

convert certain of its U.S.

dollar-denominated senior note and subordinated debenture principal and interest obligations into yen-denominated obligations.

Foreign currency swaps are used primarily in the consolidated VIEs held by Aflac Japan to convert foreign-denominated cash flows to Japanese yen in order to minimize cash flow fluctuations.

The Company also uses foreign currency swaps to economically hedge the foreign currency exchange risk on certain fixed maturity securities

denominated in other foreign currencies held by Aflac Japan, as well as to economically convert certain of its U.S.

dollar-denominated senior note and subordinated debenture principal and interest obligations into Japanese yen-denominated obligations.

The Company also uses foreign currency forwards to economically hedge the foreign currency exchange risk on certain variable-rate investments denominated in other foreign currencies held by Aflac Japan.

In order to reduce investment income volatility from its variable-rate investments, the Company enters into receive–fixed, pay–floating interest rate swaps.

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In order to maximize the efficiency of the collars while minimizing cost, a collar strategy is used whereby the Company purchases a long payer swaption (the Company purchases an option that allows it to enter into a swap where the Company will pay the fixed rate and receive the floating rate of the swap) and sells a short receiver swaption (the Company sells an option that provides the counterparty with the right to enter into a swap where the Company will receive the fixed rate and pay the floating rate of the swap).

The combination of purchasing the long payer swaption and selling the short receiver swaption results in no net premium being paid (i.e.

a costless or zero-cost collar).

The combination of purchasing the long payer swaption and selling the short receiver swaption results in no net premium being paid (i.e., a costless or zero-cost collar).

Bond purchase commitments result from repackaged bond structures that are consolidated VIEs whereby there is a delay in the trade date and settlement date of the bond within the structure to ensure completion of all necessary legal agreements to support the consolidated VIE that issues the repackaged bond.

Since the Company has a commitment to purchase the underlying bond at a specified price, the agreement meets the definition of a derivative where the value is derived based on the current market value of the bond compared to the fixed purchase price to be paid on the settlement date.

Additionally, bond purchase commitments are used to economically hedge interest rate risk on certain fixed income investments.

Since the Company has a commitment to purchase the underlying bond at a specified price, the agreement meets the definition of a derivative.

The fair value of the derivative is derived based on the current market value of the bond compared to the fixed purchase price to be paid on the settlement date.

Derivative Balance Sheet Classification

The table below summarizes the balance sheet classification of the Company's derivative fair value amounts, as well as the gross asset and liability fair value amounts.

The fair value amounts presented do not include income accruals.

Derivative assets are included in other assets, while derivative liabilities are included in other liabilities within the Company’s consolidated balance sheets.

The table below summarizes the balance sheet classification of the Company's derivative instruments at fair value.

The fair value amounts presented exclude income accruals.

The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not reflective of exposure or credit risk.

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(In millions) Asset

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Interest rate swaps 32,850 0 142 36,728 14 189

Forward bond purchase

commitment 688 0 5 0 0 0

Total non-qualifying strategies 64,147 68 1,010 65,682 59 967

Total derivatives $ 66,239 $ 211 $ 1,016 $ 67,528 $ 179 $ 972

Cash Flow Hedges

From time to time, for certain variable-rate available-for-sale securities held by Aflac Japan via consolidated VIEs, foreign currency swaps are used to swap the variable rate interest to fixed rate interest as well as interest cash flows between Japanese yen and U.S.

The Company has designated foreign currency swaps as a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset (“cash flow” hedge).

The remaining maximum length of time for which these cash flows are hedged is approximately one year .

The derivatives in the Company's consolidated VIEs that are not designated as accounting hedges are discussed in the Non-qualifying Strategies section of this note.

Fair Value Hedges

Cash Flow Hedge

The Company designates and accounts for certain foreign currency swaps as cash flow hedges when they meet the requirements for hedge accounting.

For certain variable-rate U.S.

dollar-denominated available-for-sale securities held by Aflac Japan via consolidated VIEs, foreign currency swaps are used to swap the U.S.

dollar variable rate interest and principal payments to fixed rate Japanese yen interest and principal payments.

The remaining maximum length of time over which these cash flows are hedged is approximately one year .

Fair Value Hedge

The Company designates and accounts for certain foreign currency forwards, options, and interest rate swaptions as fair value hedges when they meet the requirements for hedge accounting.

The Company recognizes gains and losses on these derivatives as well as the offsetting gain or loss on the related hedged items in current earnings.

Foreign currency forwards and options hedge the foreign currency exposure of certain U.S.

dollar-denominated available-for-sale fixed-maturity investments held in Aflac Japan.

The change in the fair value of the foreign currency forwards related to the changes in the difference between the spot rate and the forward price is excluded from the assessment of hedge effectiveness.

The change in fair value of the foreign currency option related to the time value of the option is recognized in current earnings and is excluded from the assessment of hedge effectiveness.

Interest rate swaptions hedge the interest rate exposure of certain U.S.

dollar-denominated available-for-sale securities held in Aflac Japan.

For these hedging relationships, the Company excludes time value from the assessment of hedge effectiveness and recognizes changes in the intrinsic value of the swaptions in current earnings within net investment income.

The change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into earnings (net investment income) over its legal term.

The following table shows the carrying amounts of assets designated and qualifying as hedged items in fair value hedges of interest rate risk and the related cumulative hedge adjustment included in the carrying amount.

The Company had no fair value hedges of interest rate risk as of September 30, 2025 and December 31, 2024;

Foreign currency forwards and options hedge the foreign currency exchange risk associated with certain U.S.

dollar-denominated available-for-sale securities held by Aflac Japan.

For these derivatives and the related hedged items, gains and losses included in the assessment of hedge effectiveness are included in current earnings.

The change in the fair value of the foreign currency forwards related to changes in the difference between the spot rate and the forward price, and the change in fair value of the foreign currency option related to the time value of the option, are excluded from the assessment of hedge effectiveness and are included in current earnings.

Interest rate swaptions hedge the interest rate risk associated with certain U.S.

dollar-denominated available-for-sale securities held by Aflac Japan.

Gains and losses associated with these derivatives and included in the assessment of hedge effectiveness, premium amortization and time value amortization while the hedge items are still outstanding, are included in current earnings.

If the interest rate swaption is terminated but the hedged item is still outstanding, the amortization of the disposal amount of the interest rate swaption is included in current earnings over the remaining life of the hedged items.

When the related hedged items are redeemed, the time value gains and losses for the interest rate swaptions are included in current earnings, which is consistent with the accounting for the impact of the hedged item.

The change in the fair value of interest rate swaptions related to the time value of the swaption is excluded from the assessment of hedge effectiveness and is included in the consolidated statements of comprehensive income (loss) and amortized into earnings over its legal term.

Fair Value Hedging Relationships

The following table presents the carrying amounts of (1) assets designated and qualified as hedged items in fair value hedges of interest rate risk and (2) the related cumulative hedge adjustment included in the carrying amount.

The Company had no fair value hedges of interest rate risk as of March 31, 2026 and December 31, 2025;

therefore, the amounts presented in the table below are related to previous fair value hedges of interest rate risk that were discontinued.

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Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of Hedged Assets/(Liabilities)

September 30,

2026 December 31,

2024 September 30,

2025 March 31,

2026 December 31,

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Net Investment Hedge

The Company's investment in Aflac Japan is affected by changes in the yen/dollar exchange rate.

To mitigate this exposure, the Parent Company's yen-denominated liabilities (see Note 9) have been designated as non-derivative hedges and certain foreign currency forwards and options have been designated as derivative hedges of the foreign currency exposure of the Company's net investment in Aflac Japan.

The Company's net investment hedge was effective during the three- and nine-month periods ended September 30, 2025 and 2024, respectively.

The Company's investment in Aflac Japan is affected by changes in the foreign exchange rate.

To mitigate this exposure, the Parent Company designated some of its Japanese yen-denominated liabilities (see Note 9) as non-derivative net investment hedges and certain foreign currency forwards and options as derivative net investment hedges of the foreign currency exchange risk associated with the Company's net investment in Aflac Japan.

The Company's net investment hedge was effective during the three-month periods ended March 31, 2026 and 2025, respectively.

Non-qualifying Strategies

For the Company's derivative instruments in consolidated VIEs that do not qualify for hedge accounting treatment, all changes in their fair value are reported in current period earnings in n et i nvestment gains (losses).

The amount of gain or loss recognized in earnings for the Company's VIEs is attributable to the derivatives in those investment structures.

While the change in value of the swaps is recorded in current period earnings, the change in value of the available-for-sale fixed maturity securities associated with these swaps is recorded in other comprehensive income.

The Company uses foreign currency swaps to hedge the foreign currency exchange risk associated with certain investments denominated in other foreign currencies in the Aflac Japan segment.

The Parent Company had cross-currency swap agreements related to certain of its U.S.

dollar-denominated senior notes to effectively convert interest and principal on the notes from U.S.

dollar to Japanese yen.

These swaps matured in March 2025.

Changes in the values of these swaps were recorded in earnings in the period where they occurred.

The Company uses foreign currency forwards and options to economically mitigate the currency risk of some of its U.S.

dollar-denominated loan receivables and U.S.

government fixed maturity securities held in the Aflac Japan segment.

These arrangements are not designated as accounting hedges, as the foreign currency remeasurement of the loan receivables impacts current period earnings, and substantially offsets gains and losses from foreign currency forwards within net investment gains (losses).

The Company also has certain foreign currency forwards on U.S.

dollar-denominated available-for-sale securities where hedge accounting is not being applied.

The Company uses foreign currency swaps to economically hedge the foreign currency exchange risk associated with certain investments denominated in other foreign currencies held by Aflac Japan.

For the Company's derivative instruments in consolidated VIEs that do not qualify for hedge accounting, changes in fair value are reported in current earnings.

The gain or loss in earnings includes amounts attributable to the derivatives in those investment structures.

While the change in fair value of the derivative instrument is reported in current earnings, the change in the fair value of the available-for-sale securities associated with these instruments is included in accumulated other comprehensive income.

The Company uses foreign currency forwards and options to economically hedge the foreign currency exchange risk associated with certain U.S.

dollar-denominated loan receivables held by Aflac Japan.

These arrangements are not designated as accounting hedges because the foreign currency remeasurement gains and losses associated with the loan receivables substantially offsets gains and losses from foreign currency forwards in current period earnings.

Additionally, the Company uses foreign currency forwards to economically hedge the foreign currency exchange risk associated with certain U.S.

dollar-denominated available-for-sale securities and certain investments denominated in other foreign currencies held by Aflac Japan.

The Company uses interest rate swaps to economically convert the variable rate investment income to a fixed rate on certain variable-rate investments.

The Company uses bond purchase commitments to economically hedge interest rate risk on certain fixed income investments, including certain bonds within the VIE structure.

Impact of Derivatives and Hedging Instruments

The following table summarizes the impact to earnings and other comprehensive income (loss) from all derivatives and hedging instruments.

Three Months Ended September 30,

Three Months Ended March 31,

(In millions) Net

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Non-qualifying strategies:

Foreign currency swaps - VIE ( 115 ) 44

Foreign currency forwards ( 16 ) 0

Foreign currency options ( 10 ) 191

Interest rate swaps ( 4 ) 159

Total non-qualifying strategies ( 145 ) 394

Total $ ( 1 ) $ ( 123 ) $ 206 $ ( 1 ) $ 436 $ ( 745 )

(1) Impact of cash flow hedges reported as net investment gains (losses) includes $ 1 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended September 30, 2025, and $ 1 of losses during the three-month period ended September 30, 2024.

Nine Months Ended September 30,

(In millions) Net

(Losses) Other

Comprehensive

Income (Loss) Net

(Losses) Other

Comprehensive

Income (Loss)

Qualifying hedges:

Cash flow hedges:

Foreign currency swaps - VIE $ ( 1 ) $ ( 3 ) $ 4 $ ( 1 ) $ ( 3 ) $ 3

Total cash flow hedges ( 1 ) ( 3 ) (1)

4 ( 1 ) ( 3 ) (1)

Net investment hedge:

Non-derivative hedging

instruments 0 ( 228 ) 0 ( 21 )

Foreign currency forwards 85 ( 171 ) 119 74

Total net investment hedge 85 ( 399 ) 119 53

Non-qualifying strategies:

Foreign currency swaps 1 0

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Interest rate swaps ( 11 ) ( 18 )

Forward bond purchase

commitment ( 5 ) 0

Total non-qualifying strategies ( 110 ) ( 80 )

Total $ 0 $ ( 95 ) $ 148 $ 0 $ ( 45 ) $ ( 382 )

(1) Impact of cash flow hedges reported as net investment gains (losses) includes $ 3 of losses reclassified from accumulated other comprehensive income (loss) into earnings during the nine-month period ended September 30, 2025, and $ 3 of losses during the nine-month period ended September 30, 2024.

Interest expense/income on cash flow hedges are recorded in net investment income.

For interest rate swaptions classified as fair value hedges, the change in the time value of the swaptions is recognized in other comprehensive income (loss) and amortized into net investment income over its legal term.

If the swaption is early terminated but the hedged item is still outstanding, the amortization of disposal amount of the swaptions is recorded in net investment income over the remaining life of the hedged items.

Gains and losses on cash flow hedges and the change in the fair value of interest rate swaptions related to the time value of the swaptions in fair value hedges are recorded as unrealized gains (losses).

Gains and losses on net investment hedges related to changes in foreign currency spot rates are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statements of comprehensive income (loss).

As of September 30, 2025, $ 1 million of deferred losses on derivative instruments recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next 12 months.

(1) Impact of cash flow hedges reported as net investment gains (losses) includes $ 4 of gains reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended March 31, 2026, and $ 1 of losses during the three-month period ended March 31, 2025.

As of March 31, 2026, an immaterial amount of deferred losses on derivative instruments recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next 12 months.

Credit Risk Assumed through Derivatives

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The risk of counterparty default for the Company's foreign currency swaps, certain foreign currency forwards, and foreign currency options is mitigated by collateral posting requirements that counterparties to those transactions must meet.

As of September 30, 2025, all of the Company's derivative agreement counterparties were investment grade.

As of March 31, 2026, all of the Company's derivative agreement counterparties were investment grade.

The Company engages in over-the-counter (OTC) bilateral derivative transactions directly with unaffiliated third parties under International Swaps and Derivatives Association, Inc.

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Collateral posted by the Company to third parties for derivative transactions can generally be repledged or resold by the counterparties.

The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $ 851 million and $ 804 million as of September 30, 2025 and December 31, 2024, respectively.

If the credit-risk-related contingent features underlying these agreements had been triggered on September 30, 2025, the Company estimates that it would be required to post a maximum of $ 629 million of additional collateral to these derivative counterparties.

The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $ 879 million and $ 861 million as of March 31, 2026 and December 31, 2025, respectively.

If the credit-risk-related contingent features underlying these agreements had been triggered on March 31, 2026, the Company estimates that it would be required to post a maximum of $ 698 million of additional collateral to these derivative counterparties.

The Company is generally allowed to sell or repledge collateral obtained from its derivative counterparties, although it does not typically exercise such rights.

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Offsetting of Financial Assets and Derivative Assets

September 30, 2025

March 31, 2026

Gross Amounts Not Offset

7 unchanged sentences

OTC - bilateral $ 168 $ 0 $ 168 $ ( 23 ) $ ( 36 ) $ ( 102 ) $ 7

OTC - cleared 16 0 16 ( 16 ) 0 0 0

Total derivative

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OTC - bilateral $ 122 $ 0 $ 122 $ ( 1 ) $ ( 34 ) $ ( 84 ) $ 3

OTC - cleared 12 0 12 ( 12 ) 0 0 0

Total derivative

15 unchanged sentences

Offsetting of Financial Liabilities and Derivative Liabilities

September 30, 2025

March 31, 2026

Gross Amounts Not Offset

33 unchanged sentences

to a master netting

OTC - bilateral $ 19 $ 0 $ 19 $ ( 1 ) $ ( 17 ) $ 0 $ 1

OTC - cleared 188 0 188 ( 12 ) ( 24 ) ( 151 ) 1

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Total $ 4,961 $ 0 $ 4,961 $ ( 3,958 ) $ ( 41 ) $ ( 151 ) $ 811

For additional information on the Company's financial instruments, see the accompanying Notes 3 and 5 and Notes 1, 3 and 5 of the Notes to the Consolidated Financial Statements in the 2024 Annual Report.

For additional information on the Company's derivative and other financial instruments, see the accompanying Notes 3 and 5 and Notes 1, 3 and 5 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.

FAIR VALUE MEASUREMENTS

6 unchanged sentences

The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis.

September 30, 2025

March 31, 2026

(In millions) Quoted Prices in

21 unchanged sentences

Foreign currency options 0 23 0 23

Interest rate swaps 0 16 0 16

Total other assets 0 211 0 211

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Foreign currency forwards 0 23 0 23

Foreign currency options 0 40 0 40

Interest rate swaps 0 142 0 142

Forward bond purchase commitment 0 5 0 5

Total liabilities $ 0 $ 1,016 $ 0 $ 1,016

22 unchanged sentences

Foreign currency forwards 0 120 0 120

Interest rate swaps 0 14 0 14

Total other assets 0 179 0 179

2 unchanged sentences

Foreign currency swaps $ 0 $ 765 $ 0 $ 765

Foreign currency forwards 0 18 0 18

Interest rate swaps 0 189 0 189

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The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value.

September 30, 2025

March 31, 2026

(In millions) Carrying

66 unchanged sentences

The models and associated processes and controls are executed by Company personnel.

These models are discounted cash flow (DCF) valuation models but also use information from related markets, specifically public bond markets and the credit default swap (CDS) market, to estimate expected cash flows.

These models are discounted cash flow valuation models but also use information from related markets, specifically public bond markets and the credit default swap (CDS) market, to estimate expected cash flows.

The models take into consideration any unique characteristics of the securities and make various adjustments to arrive at an appropriate issuer-specific loss adjusted credit curve using the most appropriate comparable security(ies) of the issuer and issuer-specific CDS spreads.

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The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities.

September 30, 2025

March 31, 2026

(In millions) Quoted Prices in

45 unchanged sentences

Total equity securities $ 692 $ 0 $ 159 $ 851

September 30, 2025

March 31, 2026

(In millions) Quoted Prices in

100 unchanged sentences

However, the derivative instrument may not be classified in the same fair value hierarchy level as the associated asset.

The significant inputs to pricing derivatives are generally observable in the market or can be derived by observable market data.

The significant inputs to pricing derivatives are generally observable in the market or can be derived from observable market data.

When these inputs are observable, the derivatives are classified as Level 2.

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Interest rate volatility (1)

Foreign currency exchange rate derivatives - Non-VIEs (forwards, swaps and options) Foreign currency forward rates

Foreign exchange rate derivatives - Non-VIEs (forwards, swaps and options) Foreign currency forward rates

Swap yield curves

2 unchanged sentences

Foreign currency volatility (1)

Foreign currency exchange rate derivatives - VIEs (swaps) Foreign currency spot rates

Foreign exchange rate derivatives - VIEs (swaps) Foreign currency spot rates

Swap yield curves

4 unchanged sentences

(1) Option-based only

The fair values of the foreign currency forwards and options are based on observable market inputs, therefore they are classified as Level 2.

The Parent Company had cross-currency swap agreements related to certain of its U.S.

dollar-denominated senior notes to effectively convert a portion of the interest on the notes from U.S.

dollar to Japanese yen.

These swaps matured in March 2025.

Their fair values were based on observable market inputs;

therefore, they were classified as Level 2.

The fair values of the foreign currency forwards and options are based on observable market inputs;

therefore, they are classified as Level 2.

To determine the fair value of its interest rate derivatives, the Company uses inputs that are generally observable in the market or can be derived from observable market data.

1 unchanged sentence

In a cleared swap contract, the clearinghouse provides benefits to the counterparties similar to contracts listed for investment traded on an exchange since it maintains a daily margin to mitigate counterparties' credit risk.

These derivatives are priced using observable inputs, accordingly, they are classified as Level 2.

These derivatives are priced using observable inputs;

accordingly, they are classified as Level 2.

For derivatives associated with VIEs where the Company is the primary beneficiary, the Company is not the direct counterparty to the swap contracts.

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For these derivatives, the Company utilizes valuation models developed by independent valuation analytics providers.

The models are market standard DCF models and all associated processes and controls are executed by Company personnel.

The models are market standard discounted cash flow models and all associated processes and controls are executed by Company personnel.

These models take into consideration any unique characteristics of the derivatives in determining the appropriate valuation methodology to estimate expected cash flows.

The fair values of these swaps are based on observable market inputs and are classified as Level 2 within the fair value hierarchy.

For forward bond purchase commitments with VIEs, the fair value of the derivative is based on the difference in the fixed purchase price and the current market value of the related bond prior to the settlement date.

For forward bond purchase commitments, the fair value of the derivative is based on the difference in the fixed purchase price and the current market value of the related bond prior to the settlement date.

Since the bond is typically a public bond with readily available pricing, the derivatives associated with the forward purchase commitment are classified as Level 2 within the fair value hierarchy.

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The fair values of the Company's publicly issued notes payable are determined by utilizing available sources of observable inputs from third-party pricing vendors and are classified as Level 2.

The Company's private placement notes payable are valued using the same internal models that the Company uses for its yen-denominated and U.S.

The Company's private placement notes payable are valued using the same internal models that the Company uses for its Japanese yen-denominated and U.S.

dollar-denominated private placement investment portfolio.

The fair values for these private placements are deemed Level 2 valuations, as they are model-derived valuations that are generated internally with all significant valuation inputs being observed in active markets.

The fair values of the Company's yen-denominated loans approximate their carrying values and are classified as Level 3.

The fair values of the Company's Japanese yen-denominated loans approximate their carrying values and are classified as Level 3.

Transfers between Hierarchy Levels and Level 3 Rollforward

5 unchanged sentences

Three Months Ended

September 30, 2025

March 31, 2026

Fixed Maturity Securities Equity

24 unchanged sentences

Three Months Ended

September 30, 2024

March 31, 2025

Fixed Maturity Securities Equity

23 unchanged sentences

included in earnings $ 0 $ 0 $ 0 $ 0 $ 0 $ 1 $ 1

Nine Months Ended

September 30, 2025

Fixed Maturity Securities Equity

(In millions) Mortgage-

Securities Public

Utilities Sovereign

Supranational Banks/

Institutions Other

Corporate Total

Balance, beginning of period $ 1,156 $ 647 $ 23 $ 10 $ 231 $ 157 $ 2,224

Net investment gains (losses) included

in earnings 0 0 0 0 0 0 0

Unrealized gains (losses) included in

other comprehensive income (loss) 36 29 1 ( 1 ) 4 0 69

Purchases, issuances, sales

and settlements:

Purchases 817 167 0 0 24 8 1,016

Issuances 0 0 0 0 0 0 0

Sales 0 0 0 0 0 ( 2 ) ( 2 )

Settlements ( 121 ) ( 37 ) ( 2 ) 0 ( 1 ) 0 ( 161 )

Transfers into Level 3 358 0 0 0 0 0 358

Transfers out of Level 3 0 0 0 0 ( 95 ) 0 ( 95 )

Balance, end of period $ 2,246 $ 806 $ 22 $ 9 $ 163 $ 163 $ 3,409

Changes in unrealized gains

(losses) relating to Level 3 assets

and liabilities still held at the end

of the period included in earnings $ 0 $ 0 $ 0 $ 0 $ 0 $ 4 $ 4

Nine Months Ended

September 30, 2024

Fixed Maturity Securities Equity

(In millions) Mortgage-

Securities Public

Utilities Sovereign

Supranational Banks/

Institutions Other

Corporate Total

Balance, beginning of period $ 772 $ 253 $ 30 $ 78 $ 648 $ 248 $ 2,029

Net investment gains (losses) included

in earnings 3 0 0 0 0 ( 5 ) ( 2 )

Unrealized gains (losses) included in

other comprehensive income (loss) 48 8 0 ( 9 ) 16 0 63

Purchases, issuances, sales and

Purchases 338 147 0 9 193 3 690

Issuances 0 0 0 0 0 0 0

Sales 0 0 0 0 0 ( 1 ) ( 1 )

Settlements ( 67 ) ( 26 ) ( 2 ) ( 9 ) ( 4 ) ( 84 ) ( 192 )

Transfers into Level 3 205 421 0 0 5 0 631

Transfers out of Level 3 ( 90 ) ( 233 ) 0 ( 59 ) ( 484 ) 0 ( 866 )

Balance, end of period $ 1,209 $ 570 $ 28 $ 10 $ 374 $ 161 $ 2,352

Changes in unrealized gains

(losses) relating to Level 3 assets

and liabilities still held at the end

of the period included in earnings $ 3 $ 0 $ 0 $ 0 $ 0 $ 0 $ 3

Fair Value Sensitivity

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Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

September 30, 2025

March 31, 2026

(In millions) Fair Value Valuation Technique(s) Unobservable Input Range Weighted Average

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The following tables present a rollforward of deferred policy acquisition costs by reporting segment and disaggregated by product type.

September 30, 2025

March 31, 2026

Aflac Japan Aflac U.S.

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other ( 62 ) ( 38 ) ( 9 ) 0 0 0 0 0 0 0 0 ( 109 )

Balance at September 30, 2025

Balance at March 31, 2026

$ 2,937 $ 1,805 $ 443 $ 50 $ 904 $ 640 $ 1,352 $ 463 $ 87 $ 295 $ 0 $ 8,976

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$ 2,965 $ 1,840 $ 446 $ 51 $ 909 $ 641 $ 1,355 $ 463 $ 87 $ 277 $ 0 $ 9,034

The Company uses the following constant level bases to amortize deferred policy acquisition costs:

Policy Type Constant-level Basis

Life Products (U.S.) Face Amount

Health Products (U.S.) Number of Policies in Force

Health & Life Products (Japan) Units in Force

Face amount is the stated dollar amount that the policy’s beneficiaries receive upon the death of the insured.

For life and health products issued in Japan, the constant-level basis used is units in force, which is a proxy for face amount and insurance in force, respectively.

Future DAC amortization is impacted by persistency.

There were no changes to the inputs, judgments or methods used to determine amortization amounts during the nine-month periods ended September 30, 2025 and 2024.

The Company updated the assumptions used to determine amortization using the same assumptions as those used for measuring the liability for future policy benefits during the nine-month periods ended September 30, 2025 and 2024.

The Company recognizes the effects of changes in assumptions prospectively over the remaining contract term as a revision of the future amortization pattern.

There were no changes to the inputs, judgments, assumptions or methods used to determine amortization amounts during the three-month periods ended March 31, 2026 and 2025.

For additional information on deferred policy acquisition costs, see Notes 1 and 6 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.

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Future Policy Benefits

The liability for future policy benefits is determined as the present value of expected future policy benefits to be paid to or on the behalf of policyholders and certain related expenses less the present value of expected future net premiums receivable under the Company's insurance contracts.

Future net premiums receivable are future gross premiums receivable under the contract multiplied by the net premium ratio (NPR).

The following tables present the changes in the present value of expected future net premiums and the present value of expected future policy benefits by reporting segment and disaggregated by product type.

The present value of expected future net premiums and the present value of expected future policy benefits are presented gross of internal and external ceded reinsurance.

September 30, 2025

March 31, 2026

Aflac Japan Aflac U.S.

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Effect of changes in discount rate assumptions ( 1,252 ) ( 1,402 ) ( 303 ) ( 86 ) ( 148 ) ( 62 ) ( 360 ) ( 75 ) ( 9 ) ( 42 ) 65

Balance at September 30, 2025

Balance at March 31, 2026

$ 11,518 $ 9,625 $ 4,287 $ 677 $ 2,485 $ 1,689 $ 3,958 $ 1,183 $ 202 $ 1,061 $ 2,330

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Effect of changes in discount rate assumptions ( 2,470 ) ( 4,862 ) ( 5,333 ) ( 1,181 ) ( 211 ) ( 96 ) ( 1,176 ) ( 146 ) ( 27 ) ( 251 ) 63

Balance at September 30, 2025

Balance at March 31, 2026

32,936 16,476 19,394 3,435 3,125 2,322 10,690 1,946 434 2,118 2,804

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The following tables present the weighted-average interest rates and weighted-average liability duration (calculated using the original discount rate) by reporting segment and disaggregated by product type.

September 30, 2025

March 31, 2026

Aflac Japan Aflac U.S.

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No adjustments were made to observable market information.

The following table presents a reconciliation of the disaggregated rollforwards above to the ending future policy benefits presented in the consolidated balance sheets.

The following table presents a reconciliation of the disaggregated rollforwards above to the ending liability for future policy benefits presented in the consolidated balance sheets.

The deferred profit liability for limited-payment contracts and the deferred reinsurance gain liability are presented together with the liability for future policy benefits in the consolidated balance sheets and have been included as reconciling items in the table below.

(In millions) September 30,

(In millions) March 31,

2026 December 31,

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See Note 8 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.

There were no changes to the inputs, judgments, assumptions or methods used in measuring the liability for future policy benefits during the three-month periods ended March 31, 2026 and 2025.

Discount Rate Methodology

The Company's discount rate methodology involves constructing a current discount rate curve separately for discounting cash flows used to calculate the Japan and U.S.

LFPB, reflective of the characteristics of the insurance liabilities, such as currency and tenor.

Discount rates are updated each reporting period and require estimation techniques (e.g., interpolation, extrapolation) for determination of points on the curve for which there is limited or no observable market data.

Discount rates are determined using upper-medium grade (low credit risk) fixed-income instrument yields that reflect the duration characteristics of the liability.

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The single discount rate for each issue-year cohort is determined by solving for a rate that produces an equivalent NPR to the forward curve and will remain unchanged after the calendar year of issue.

The Company constructs a current discount rate curve separately for discounting cash flows used to calculate each of the Japan and U.S.

liabilities for future policy benefits, reflective of the characteristics of the corresponding insurance liabilities, such as currency and tenor.

In the Aflac Japan segment, all long-duration insurance policies are denominated in yen.

A significant portion of policies are characterized by tenors exceeding the availability of liquid market data in Japan for single-A rated (as a proxy for upper-medium grade) corporate yen-denominated debt.

In the Aflac Japan segment, all long-duration insurance policies are denominated in Japanese yen.

The discount rate curve is designed to prioritize the observable inputs where available, while past the last liquid point, the data is derived based on estimation techniques consistent with the fair value guidance in ASC 820.

The Aflac Japan segment curve utilizes liquid market indices tracking publicly traded yen-denominated single-A corporate debt for the initial 10-year tenor.

The Aflac Japan segment's curve utilizes liquid market indices tracking publicly traded Japanese yen-denominated single-A corporate debt for the initial 10-year tenor.

For the bonds within these market indices where only local ratings are available, the Company prioritizes the bonds with local ratings that are equivalent to a single-A rating based on international rating standards.

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Lastly, for the tenors where there is limited or no observable single-A or similar market data or risk-free government rates (beyond 30 years), the discount curve is derived by extrapolation of risk-free rates beyond their last liquid point following the Smith-Wilson method and grading of the estimated forward credit spread anchored by the ultimate forward rate.

The ultimate forward rate is based on the economic value-based solvency regime, which is consistent with the International Association of Insurance Supervisors (IAIS) Insurance Capital Standards (ICS) (effective for Aflac Japan's 2025 fiscal year-end), and is adjusted for credit and inflation components.

The ultimate forward rate is based on the economic value-based solvency regime, which is consistent with the International Association of Insurance Supervisors (IAIS) Insurance Capital Standards (ICS) (effective for Aflac Japan's 2025 fiscal year-end, which is March 31, 2026), and is adjusted for credit and inflation components.

For the Aflac U.S.

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and Japan segments is based on the assumption of long-term global economic convergence.

There were no changes to the methods used to determine the discount rates during the nine-month periods ended September 30, 2025 and 2024.

Mortality rate assumptions are based on industry tables and adjusted for the Company's actual or expected experience where credible or appropriate.

There were no changes to the methods used to determine the discount rates during the three-month periods ended March 31, 2026 and 2025.

Cash Flow Assumptions

Cash flow assumptions include (1) mortality, (2) morbidity and (3) termination or lapses.

Mortality rate assumptions are based on industry tables and adjusted for the Company's actual or expected experience.

These assumptions typically vary by age, gender, and other demographic characteristics such as smoking status.

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Policy provisions, such as reaching premium paid-up status, are taken into account when setting assumptions.

For the three- and nine-month periods ended September 30, 2025 and 2024, the variance of actual experience from expected experience was primarily due to favorable variances in morbidity assumptions as compared to actual experience.

There were no changes to the inputs, judgments or methods used in measuring the liability for future policy benefits during the nine-month periods ended September 30, 2025 and 2024.

The Company performs an annual review of its assumptions during the third quarter.

The Company evaluates actual experience compared with expected experience for cash flow assumptions each quarter.

• For the three-month periods ended March 31, 2026 and 2025, the variance of actual experience from expected experience was primarily due to favorable variances in morbidity assumptions as compared to actual experience.

The Company performs a more detailed annual review of its assumptions annually during the third quarter.

• In 2025, the Company's annual assumption review process resulted in favorable changes largely due to favorable morbidity assumptions in Japan and favorable morbidity and termination assumptions in the U.S.

In 2024, the Company's annual assumption review process resulted in favorable changes largely due to reflecting more favorable Japan morbidity experience.

Favorable morbidity experience has been reflected in the annual assumptions primarily due to lower utilization of certain cancer benefits, including reduced hospitalizations and fewer first-occurrence claims influenced by COVID-19-related behavioral changes.

While recognizing ongoing uncertainty, management has reviewed these trends and incorporated elements of the observed experience into its assumptions where considered appropriate.

The following table summarizes the amount of net earned premiums recognized in the consolidated statements of earnings by reporting segment and disaggregated by product type.

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(In millions) 2026 2025

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Life insurance 298 316

Other 34 35 99 104

Accident 305 311

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Life insurance 198 169

Other 53 29 143 75

Corporate and other 182 198

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The following table summarizes the amount of interest expense related to insurance contracts recognized in benefits and claims, excluding reserve remeasurement in the consolidated statements of earnings by reporting segment and disaggregated by product type.

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(In millions) 2026 2025

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Life insurance 108 114

Other 19 20 57 57

Accident 7 7 20 20

Disability 7 7

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Life insurance 12 11

Other 6 7 18 20

Total $ 537 $ 559

The following tables summarize the amount of undiscounted expected future gross premiums and expected future policy benefits and expenses and discounted (discounted at the current period discount rate) expected future gross premiums and expected future policy benefits and expenses by reporting segment and disaggregated by product type.

The following tables present the amount of expected future gross premiums and expected future policy benefits and expenses (undiscounted and discounted at the current period discount rate) by reporting segment and disaggregated by product type.

These tables are presented gross of internal and external ceded reinsurance.

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These are the primary factors that result in future gross premiums lower than future benefit and expense payments for certain lines of business of the Company.

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(In millions) Gross

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Total $ 141,365 $ 170,011 $ 143,474 $ 173,047

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(In millions) Gross

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Total $ 95,919 $ 95,680 $ 99,697 $ 100,522

Loss expense as a result of NPR capping for the three- and nine-month periods ended September 30, 2025 and 2024 was immaterial.

Loss expense as a result of NPR capping for the three-month periods ended March 31, 2026 and 2025 was immaterial.

Other Policyholders' Funds

As of September 30, 2025 and December 31, 2024, the largest component of the other policyholders' funds liability was the Company's annuity line of business in Aflac Japan.

As of March 31, 2026 and December 31, 2025, the largest component of the other policyholders' funds liability was the Company's annuity line of business in Aflac Japan.

The Company's annuities have fixed benefits and premiums.

The following table presents the changes in other policyholders’ funds.

(In millions) September 30,

(In millions) March 31,

2026 December 31,

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The following table presents other policyholders’ funds balances by range of guaranteed crediting rates.

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(In millions) Range of Guaranteed

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(1) Aflac Japan fixed annuities

(2) Weighted-average crediting rate of 1.5 % at September 30, 2025 and December 31, 2024.

(2) Weighted-average crediting rate of 1.5 % at March 31, 2026 and December 31, 2025.

Aflac Japan’s fixed annuities have guaranteed fixed crediting rates which results in the policyholders' funds balances being sufficient to cover all guaranteed benefit amounts.

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In the event that the reinsurer is unable to meet their obligations, the Company remains liable for the reinsured claims.

For certain assumed reinsurance transactions involving the reinsurance of in force blocks of business, the Company receives initial consideration for assumed reserves at inception.

The consideration received is recognized in the consolidated balance sheets at fair value and a liability for future policy benefits is recorded for assumed reserves.

For each of the reinsurance agreements it has entered into, the Company records either a deferred reinsurance gain liability when the consideration received exceeds the recorded reserves, or a cost of reinsurance asset when the recorded reserves exceed the consideration received.

The cost of reinsurance asset balance is considered recoverable and is periodically assessed for recoverability.

Inter-segment amounts associated with internal reinsurance transactions are eliminated in consolidation.

The following table reconciles direct earned premiums, direct benefits and claims, excluding reserve remeasurement gains and losses, and reserve remeasurement gains and losses to net amounts after the effect of reinsurance.

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(In millions) 2026 2025

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Ceded ( 88 ) ( 56 )

Assumed 22 15 47 45

Benefits and claims, excluding reserve remeasurement 1,914 1,986

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Total benefits and claims, net $ 1,832 $ 1,945

The Company has recorded a deferred reinsurance gain liability related to reinsurance transactions which represents ceded reserves in excess of consideration paid, or consideration received in excess of assumed reserves.

The remaining consolidated deferred reinsurance gain liability of $ 148 million and $ 146 million as of September 30, 2025 and December 31, 2024, respectively, is included in future policy benefits in the consolidated balance sheets and is being amortized into income over the expected lives of the policies.

The Company has also recorded a reinsurance recoverable for reinsurance transactions.

The reinsurance recoverable, which is included in other assets in the consolidated balance sheets, is reported net of allowance for credit losses and had a remaining balance of $ 172 million and $ 163 million as of September 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025 and December 31, 2024, the allowance for credit losses related to the Company's reinsurance recoverable balance was $ 4 million.

The credit allowance for the reinsurance recoverable balance is estimated using a PD / LGD method and the key credit quality indicator is the credit rating of the Company’s significant reinsurance counterparties.

The Company reported a deferred reinsurance gain liability related to reinsurance transactions.

The remaining consolidated deferred reinsurance gain liability of $ 294 million and $ 125 million as of March 31, 2026 and December 31, 2025, respectively, is included in future policy benefits in the consolidated balance sheets and it is being amortized over the expected premium period based on annualized premiums, units in force, or over the remaining expected life of the reinsurance contract based on benefit payments.

The amortization is included in benefits and claims in the consolidated statements of earnings.

The Company also reported a reinsurance recoverable with a remaining balance, net of allowance for credit losses of $ 466 million and $ 161 million as of March 31, 2026 and December 31, 2025, respectively.

As of March 31, 2026, the related allowance for credit losses was $ 17 million, compared with $ 4 million as of December 31, 2025.

The allowance for credit losses is estimated using a PD / LGD method and the key credit quality indicator is the credit rating of the Company’s significant reinsurance counterparties.

The Company uses external credit ratings focused on these reinsurers' financial strength and credit worthiness.

As of September 30, 2025, the Company's significant reinsurance counterparties were rated A+.

The Company monitors the credit ratings periodically, but not less frequently than quarterly.

Aflac Re is a Bermuda domiciled insurer that reinsures certain policies issued by ALIJ.

The inter-segment amounts associated with these internal reinsurance transactions are eliminated in consolidation.

As of March 31, 2026, the Company's significant reinsurance counterparties were rated A+.

The Company monitors these credit ratings periodically, but not less frequently than quarterly.

In March 2026, Aflac Re entered into a coinsurance transaction whereby it assumed approximately $ 551 million of reserves associated with an in force block of individual whole life annuities from an external ceding company, which is a related party due to its affiliation with Japan Post Holdings Co., Ltd.

Aflac Re received approximately $ 636 million in cash as consideration for assuming the reinsurance risk.

The cash was placed in a trust to collateralize Aflac Re's obligations to the ceding company.

Cash and any other assets placed in the trust continue to be owned by Aflac Re, but their use is restricted based on the terms of the transaction.

If the fair market value of the assets in the trust is less than a contractually determined threshold, Aflac Re will be required to contribute additional assets to the trust.

Refer to the Reinsurance-Related Trust section of Note 3 for additional information.

In January 2026, ALIJ entered into a coinsurance transaction whereby it ceded 100 % of the liabilities associated with certain life insurance policies to an external reinsurer.

This transaction transferred approximately $ 333 million of reserves associated with these policies, and ALIJ transferred approximately $ 236 million in cash to the reinsurer as consideration for assuming the reinsurance risk.

For additional information on reinsurance, see Notes 1 and 8 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.

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A summary of notes payable and lease obligations follows:

(In millions) September 30,

(In millions) March 31,

2026 December 31,

1.125 % senior sustainability notes due March 2026

1.125 % senior sustainability notes paid March 2026

2.875 % senior notes due October 2026

5 unchanged sentences

Yen-denominated senior notes and subordinated debentures:

.300 % senior notes paid September 2025 (principal amount ¥ 12.4 billion)

.932 % senior notes due January 2027 (principal amount ¥ 60.0 billion)

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Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes.

In September 2025, the Parent Company extinguished ¥ 12.4 billion of .300 % senior notes upon their maturity.

In June 2025, the Parent Company issued four series of senior notes totaling ¥ 74.9 billion through a public debt offering under its U.S.

shelf registration statement.

The first series, which totaled ¥ 35.0 billion, bears interest at a fixed rate of 1.726 % per annum, payable semi-annually, and will mature in October 2030.

The second series, which totaled ¥ 23.4 billion, bears interest at a fixed rate of 2.003 % per annum, payable semi-annually, and will mature in December 2032.

The third series, which totaled ¥ 9.5 billion, bears interest at a fixed rate of 2.369 % per annum, payable semi-annually, and will mature in June 2035.

The fourth series, which totaled ¥ 7.0 billion, bears interest at a fixed rate of 2.779 % per annum, payable semi-annually, and will mature in June 2040.

These notes are redeemable at the Parent Company’s option at any time, in whole but not in part, upon the occurrence of certain changes affecting U.S.

taxation, as specified in the indenture governing the terms of the issuance.

In addition, the notes maturing in October 2030, December 2032, June 2035 and June 2040 are redeemable at the Parent Company's option, in whole or in part from time to time, on or after July 18, 2030, September 14, 2032, December 5, 2034, and December 5, 2039, respectively, at a redemption price equal to the aggregate principal amount of the applicable series to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption.

In May 2025, the Parent Company issued four series of senior notes totaling ¥ 75.1 billion through a private placement.

The first series, which totaled ¥ 18.2 billion, bears interest at a fixed rate of 1.990 % per annum, payable semi-annually, and will mature in May 2032.

The second series, which totaled ¥ 38.3 billion, bears interest at a fixed rate of 2.320 % per annum, payable semi-annually, and will mature in May 2035.

The third series, which totaled ¥ 11.6 billion, bears interest at a fixed rate of 2.650 % per annum, payable semi-annually, and will mature in May 2040.

The fourth series, which totaled ¥ 7.0 billion, bears interest at a fixed rate of 3.040 % per annum, payable semi-annually, and will mature in May 2045.

These notes are redeemable at the Parent Company's option (i) in whole at any time or (ii) in part from time to time in an amount not less than 5% of the aggregate principal amount then outstanding of the notes to be redeemed.

Interest expense related to the Company's notes payable, which is included in interest expense in the consolidated statements of earnings, was $ 56 million and $ 49 million for the three-month periods and $ 157 million and $ 145 million for the nine-month periods ended September 30, 2025 and 2024, respectively.

In March 2026, the Parent Company extinguished $ 400 million of 1.125 % senior sustainability notes upon their maturity.

Interest expense related to the Company's notes payable, which is included in interest expense in the consolidated statements of earnings, was $ 59 million and $ 49 million for the three-month periods ended March 31, 2026 and 2025, respectively.

Senior Note Facility Agreements

In August 2025, the Parent Company entered into two separate facility agreements:

The Parent Company has two separate facility agreements:

a 10 -year facility agreement (2035 Facility Agreement) with a Delaware trust (2035 Trust) and a 30 -year facility agreement (2055 Facility Agreement) with a Delaware trust (2055 Trust).

In connection with these transactions, the trusts issued and sold pre-capitalized trust securities in private placements and invested the proceeds in a portfolio of principal and/or interest strips of U.S.

The trusts issued and sold pre-capitalized trust securities in private placements and invested the proceeds in a portfolio of principal and/or interest strips of U.S.

Treasury securities (the Strips).

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The 2035 Facility Agreement provides the Parent Company the right to issue and sell to the 2035 Trust from time to time up to $ 1.0 billion of 5.251 % senior notes due August 2035 in exchange for a corresponding amount of the Strips held by the 2035 Trust.

In return, the Parent Company agreed to pay a semi-annual facility fee to the 2035 Trust at a rate of 0.9875 % per annum applied to the unexercised amount of senior notes that the Parent Company could issue and sell to the 2035 Trust.

The 2055 Facility Agreement provides the Parent Company the right to issue and sell to the 2055 Trust from time to time up to $ 1.0 billion of 5.991 % senior notes due August 2055 in exchange for a corresponding amount of the Strips held by the 2055 Trust.

In return, the Parent Company agreed to pay a semi-annual facility fee to the 2055 Trust at a rate of 1.1218 % per annum applied to the unexercised amount of senior notes that the Parent Company could issue and sell to the 2055 Trust.

The Parent Company can redeem the senior notes at any time, in whole or in part, by returning the Strips to the trusts or by delivering cash at a redemption price equal to the greater of the principal amount or a make-whole redemption price, in each case plus accrued and unpaid interest to, but excluding, the date of redemption.

As of September 30, 2025, the Parent Company had no senior note issuances under these facility agreements.

A summary of the Company's lines of credit as of September 30, 2025 follows:

As of March 31, 2026, the Parent Company had no senior note issuances under these facility agreements.

For additional information, see Note 9 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.

A summary of the Company's lines of credit as of March 31, 2026 follows:

Borrower(s) Type Term Expiration

12 unchanged sentences

Aflac Incorporated

and Aflac unsecured revolving 5 years November 15, 2027, or the date commitments are terminated pursuant to an event of default $ 1.0 billion

and Aflac unsecured revolving 5 years February 13, 2031, or the date commitments are terminated pursuant to an event of default $ 1.0 billion

$ 0.0 billion

A rate per annum equal to, at the Company's option, either, (a) Secured Overnight Financing Rate (SOFR) for U.S.

dollar-denominated borrowings or TIBOR for Japanese yen-denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by the agent as its prime rate, or (3) SOFR for an interest period of one month plus 1.00%, in each case plus an applicable margin No later than November 15, 2027 .08 % to

.15 %, depending on the Parent Company's debt ratings as of the date of determination

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and Aflac uncommitted bilateral None specified None specified $ 50 million

A rate per annum equal to, at the Parent Company's option, either (a) a rate determined by reference to SOFR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (1) the lender's USD short-term commercial loan rate and (2) the federal funds rate plus 1/2 of 1% Up to 3 months

dollar short-term commercial loan rate and (2) the federal funds rate plus 1/2 of 1% Up to 3 months

None General corporate purposes

uncommitted revolving 364 days December 1, 2025 $ 250 million

uncommitted revolving 364 days November 30,

2026 $ 250 million

Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum No later than December 1, 2026 None General corporate purposes

Aflac Incorporated (1)

uncommitted revolving 364 days November 25, 2025 ¥ 50.0 billion

uncommitted revolving 364 days November 25,

2026 ¥ 50.0 billion

Three-month yen TIBOR plus 75 basis points per annum No later than November 26, 2025 None General corporate purposes

¥ 0.0 billion

Three-month Japanese yen TIBOR plus 75 basis points per annum No later than November 27, 2026 None General corporate purposes

Aflac Incorporated (1)

uncommitted revolving 364 days November 25, 2025 ¥ 50.0 billion

uncommitted revolving 364 days November 25,

2026 ¥ 50.0 billion

Three-month yen TIBOR plus 75 basis points per annum No later than November 26, 2025 None General corporate purposes

¥ 0.0 billion

Three-month Japanese yen TIBOR plus 75 basis points per annum No later than November 27, 2026 None General corporate purposes

Aflac New York (1)

uncommitted revolving 364 days December 1, 2025 $ 25 million

uncommitted revolving 364 days December 1,

2026 $ 25 million

Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum No later than December 2, 2026 None General corporate purposes

uncommitted revolving 364 days December 1, 2025 $ 15 million

uncommitted revolving 364 days December 1,

2026 $ 15 million

Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum No later than December 2, 2026 None General corporate purposes

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Outstanding Interest Rate on Borrowed Amount Maturity Period Commitment

uncommitted revolving 364 days December 1, 2025 $ 0.3 million

uncommitted revolving 364 days December 1,

2026 $ 0.3 million

Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum No later than December 2, 2026 None General corporate purposes

Aflac GI Holdings LLC (1)

uncommitted revolving 364 days December 1, 2025 $ 30 million

uncommitted revolving 364 days December 1,

2026 $ 30 million

Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum No later than December 2, 2026 None General corporate purposes

Aflac Incorporated (1)

uncommitted revolving 364 days December 1, 2025 $ 400 million

uncommitted revolving 364 days December 1,

2026 $ 400 million

Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 97 basis points per annum for U.S.

dollar-denominated borrowings or three-month TIBOR plus 97 basis points per annum for Japanese yen-denominated borrowings No later than December 2, 2026 None General corporate purposes

uncommitted revolving 364 days December 1, 2025 $ 400 million

uncommitted revolving 364 days December 1,

2026 $ 400 million

Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S.

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Aflac Asset Management LLC (1)

uncommitted revolving 364 days December 1, 2025 $ 25 million

uncommitted revolving 364 days December 1,

2026 $ 25 million

Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S.

1 unchanged sentence

Aflac Global Ventures LLC (1)

uncommitted revolving 364 days December 1, 2025 $ 2 million

uncommitted revolving 364 days December 1,

2026 $ 2 million

Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S.

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(1) Intercompany credit agreement

The Company was in compliance with all of the covenants of its notes payable and lines of credit at September 30, 2025.

No events of default or defaults occurred during the nine-month period ended September 30, 2025.

The Company was in compliance with all of the covenants of its notes payable and lines of credit at March 31, 2026.

No events of default or defaults occurred during the three-month period ended March 31, 2026.

For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.

SHAREHOLDERS’ EQUITY

The following table is a reconciliation of the number of shares of the Company's common stock for the nine-month periods ended September 30.

The following table is a reconciliation of the number of shares of the Company's common stock for the three-month periods ended March 31.

(In thousands of shares) 2026 2025

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Share Repurchase Program:

During the first nine months of 2025, the Company repurchased 25.7 million shares of its common stock for $ 2.7 billion as part of its share repurchase program.

During the first nine months of 2024, the Company repurchased 23.4 million shares of its common stock for $ 2.1 billion as part of its share repurchase program.

In August 2025, the Company's board of directors authorized the purchase of an additional 100 million shares of its common stock.

As of September 30, 2025, a remaining balance of 121.6 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its board of directors.

During the first three months of 2026, the Company repurchased 9.0 million shares of its common stock for $ 1.0 billion as part of its share repurchase program.

During the first three months of 2025, the Company repurchased 8.5 million shares of its common stock for $ 900 million as part of its share repurchase program.

As of March 31, 2026, a remaining balance of 105.3 million shares of the Company's common stock was available for purchase under share repurchase authorizations by its board of directors.

Outstanding share-based awards are excluded from the calculation of weighted-average shares used in the computation of basic earnings per share (EPS), but are included in the calculation of weighted-average shares used in the computation of diluted EPS.

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The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted EPS for the following periods.

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands) 2026 2025

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Three Months Ended

September 30, 2025

(In millions) Unrealized Foreign

Currency Translation

Gains (Losses) Unrealized

Gains (Losses)

on Fixed Maturity Securities Unrealized

Gains (Losses)

on Derivatives Effect of Changes in Discount Rate Assumptions Pension

Adjustment Total

Balance at June 30, 2025 $ ( 4,282 ) $ ( 1,828 ) $ ( 17 ) $ 5,594 $ 42 $ ( 491 )

Other comprehensive

income (loss) before

reclassification ( 222 ) 152 0 1,238 0 1,168

Amounts reclassified from

accumulated other

comprehensive income

(loss) 0 ( 25 ) 1 0 0 ( 24 )

Net current-period other

comprehensive

income (loss) ( 222 ) 127 1 1,238 0 1,144

Balance at September 30, 2025 $ ( 4,504 ) $ ( 1,701 ) $ ( 16 ) $ 6,832 $ 42 $ 653

All amounts in the table above are net of tax.

Three Months Ended

September 30, 2024

(In millions) Unrealized Foreign

Currency Translation

Gains (Losses) Unrealized

Gains (Losses)

on Fixed Maturity Securities Unrealized

Gains (Losses)

on Derivatives Effect of Changes in Discount Rate Assumptions Pension

Adjustment Total

Balance at June 30, 2024 $ ( 5,091 ) $ 401 $ ( 22 ) $ 1,425 $ ( 5 ) $ ( 3,292 )

Other comprehensive

income (loss) before

reclassification 952 198 1 ( 1,492 ) ( 3 ) ( 344 )

Amounts reclassified from

accumulated other

comprehensive income

(loss) 0 ( 42 ) 1 0 0 ( 41 )

Net current-period other

comprehensive

income (loss) 952 156 2 ( 1,492 ) ( 3 ) ( 385 )

Balance at September 30, 2024 $ ( 4,139 ) $ 557 $ ( 20 ) $ ( 67 ) $ ( 8 ) $ ( 3,677 )

All amounts in the table above are net of tax.

Nine Months Ended

September 30, 2025

March 31, 2026

(In millions) Unrealized Foreign

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income (loss) ( 114 ) ( 856 ) ( 3 ) 1,423 ( 1 ) 449

Balance at September 30, 2025 $ ( 4,504 ) $ ( 1,701 ) $ ( 16 ) $ 6,832 $ 42 $ 653

Balance at March 31, 2026 $ ( 4,961 ) $ ( 2,665 ) $ ( 16 ) $ 9,458 $ 85 $ 1,901

All amounts in the table above are net of tax.

Nine Months Ended

September 30, 2024

Three Months Ended

March 31, 2025

(In millions) Unrealized Foreign

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income (loss) 449 ( 1,257 ) 2 1,893 32 1,119

Balance at September 30, 2024 $ ( 4,139 ) $ 557 $ ( 20 ) $ ( 67 ) $ ( 8 ) $ ( 3,677 )

Balance at March 31, 2025 $ ( 4,549 ) $ ( 1,233 ) $ ( 18 ) $ 3,899 $ 42 $ ( 1,859 )

All amounts in the table above are net of tax.

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(In millions) Three Months Ended

September 30, 2025

March 31, 2026

Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the

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(In millions) Three Months Ended

September 30, 2024

Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the

Statements of Earnings

Unrealized gains (losses) on available-for-sale

securities $ 53 Net investment gains (losses)

( 11 ) Tax (expense) or benefit (1)

$ 42 Net of tax

Unrealized gains (losses) on derivatives $ ( 1 ) Net investment gains (losses)

0 Tax (expense) or benefit (1)

$ ( 1 ) Net of tax

Amortization of defined benefit pension items:

Actuarial gains (losses) $ 0 Acquisition and operating expenses (2)

Prior service (cost) credit 0 Acquisition and operating expenses (2)

0 Tax (expense) or benefit (1)

$ 0 Net of tax

Total reclassifications for the period $ 41 Net of tax

(1) Based on 21 % tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost (see Note 12 for additional details).

(In millions) Nine Months Ended

September 30, 2025

Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the

Statements of Earnings

Unrealized gains (losses) on available-for-sale

securities $ 58 Net investment gains (losses)

( 12 ) Tax (expense) or benefit (1)

$ 46 Net of tax

Unrealized gains (losses) on derivatives $ ( 3 ) Net investment gains (losses)

1 Tax (expense) or benefit (1)

$ ( 2 ) Net of tax

Amortization of defined benefit pension items:

Actuarial gains (losses) $ 0 Acquisition and operating expenses (2)

Prior service (cost) credit 0 Acquisition and operating expenses (2)

0 Tax (expense) or benefit (1)

$ 0 Net of tax

Total reclassifications for the period $ 44 Net of tax

(1) Based on 21 % tax rate

(2) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost (see Note 12 for additional details).

(In millions) Nine Months Ended

September 30, 2024

March 31, 2025

Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the

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SHARE-BASED COMPENSATION

As of September 30, 2025, the Company has outstanding share-based awards under the Aflac Incorporated Long-Term Incentive Plan (As Amended and Restated February 14, 2017), as further amended on August 9, 2022 (the Plan).

The Company has outstanding share-based awards under the Aflac Incorporated Long-Term Incentive Plan (as Amended and Restated February 14, 2017), as further amended on August 9, 2022 (the Plan).

Share-based awards are designed to reward employees for their long-term contributions to the Company and provide incentives for them to remain with the Company.

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The Plan allows for a maximum number of shares issuable over its term of 75 million shares, including 38 million shares that may be awarded in respect of awards other than options or stock appreciation rights.

If any awards granted under the

Plan are forfeited or are terminated before being exercised or settled for any reason other than tax forfeiture, then the shares underlying the awards will again be available under the Plan.

The Plan allows awards to Company employees for incentive stock options (ISOs), non-qualifying stock options (NQSOs), stock appreciation rights, restricted stock and restricted stock units.

Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights.

As of September 30, 2025, approximately 32.6 million shares were available for future grants under this plan.

The ISOs, NQSOs and stock appreciation rights granted under the amended Plan have an exercise price of at least the fair market value of the underlying stock on the grant date and have an expiration date no later than 10 years from the grant date.

The share-based awards vest upon time-based conditions or time and performance-based conditions.

Time-based vesting generally occurs after three years .

Performance-based vesting conditions generally include the attainment of goals related to the Company's financial performance.

As of September 30, 2025, the only performance-based awards issued and outstanding were restricted stock awards and units.

The Compensation Committee of the Board of Directors has the discretion to determine vesting schedules.

If any awards granted under the Plan are forfeited or are terminated before being exercised or settled for any reason other than tax forfeiture, then the shares underlying the awards will again be available under the Plan.

As of March 31, 2026, approximately 31.8 million shares were available for future grants under the Plan.

The Plan allows awards to Company employees as follows:

• Stock options

◦ Incentive stock options

◦ Non-qualifying stock options

• Performance-based restricted stock awards and units (performance-based restricted stock)

• Restricted stock awards and units (restricted stock)

• Stock appreciation rights

Non-employee directors are eligible for grants of non-qualifying stock options, restricted stock, and stock appreciation rights.

Share-based awards granted to U.S.-based grantees are settled with authorized but unissued Company stock, while those issued to Japan-based grantees are settled with treasury shares.

The following table provides information on stock options outstanding and exercisable at September 30, 2025.

Vesting Schedules

Stock options and stock appreciation rights have an expiration date of no later than 10 years from the grant date.

Generally, the vesting period for share-based awards is the requisite service period, which is typically three years for employees and one year for non-employee directors.

Vesting for employees is generally on a ratable basis over the three years , typically subject to continued employment.

For performance-based restricted stock, vesting is also contingent on certain performance conditions typically achieved over three years .

The Compensation Committee of the board of directors has the discretion to determine vesting schedules.

Stock Options

The following table provides information on stock options outstanding and exercisable at March 31, 2026.

Option Shares

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Exercisable 229 1.4 16 38.48

The Company received cash from the exercise of stock options in the amount of $ 7 million and $ 11 million during the first nine months of 2025 and 2024, respectively.

The tax benefit realized as a result of stock option exercises and restricted stock releases was $ 31 million in the first nine months of 2025, compared with $ 28 million in the first nine months of 2024.

As of September 30, 2025, total compensation cost not yet recognized in the Company's consolidated financial statements related to restricted stock awards and units was $ 33 million, of which $ 15 million ( 1.6 million shares) was related to restricted stock awards and units with a performance-based vesting condition.

The Company expects to recognize these amounts over a weighted-average period of approximately 1.7 years.

There are no other contractual terms covering restricted stock awards once vested.

The following table summarizes restricted stock activity during the nine-month period ended September 30, 2025.

The Company received cash from the exercise of stock options in the amount of $ 3 million and $ 5 million during the first three months of 2026 and 2025, respectively.

The tax benefit realized as a result of stock option exercises and restricted stock releases was $ 27 million in the first three months of 2026, compared with $ 29 million in the first three months of 2025.

Performance-Based Restricted Stock

In 2026, the Company granted 289 thousand shares of performance-based stock, which are contingent on the achievement of the Company's financial performance metrics and certain market conditions.

On the date of grant, the Company estimated the fair value of performance-based restricted stock with market conditions using a Monte Carlo simulation model.

The model discounts the value of the stock at the assumed vesting date based on a risk-free interest rate.

Based on estimates of actual performance versus the vesting thresholds, the calculated fair value percentage pay-out estimate will be updated each quarter.

Actual performance, including modification for relative total shareholder return, may result in the ultimate award of 0 % to 200 % of the initial number of performance-based restricted stock issued, with the potential for no award if the Company's performance goals are not achieved.

The Company uses third-party analyses to assist in developing the assumptions used in, as well as calibrating, a Monte Carlo simulation model.

The Company is responsible for determining the assumptions used in estimating the fair value of its share-based compensation awards.

Restricted Stock

The value of restricted stock is based on the fair market value of the Company's common stock at the date of grant.

The following table summarizes restricted stock activity during the three-month period ended March 31, 2026.

(In thousands of shares) Shares Weighted-Average

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Canceled in 2026

( 12 ) 100.18

Vested in 2026

( 1,064 ) 74.68

Restricted stock at September 30, 2025

Restricted stock at March 31, 2026

1,675 $ 102.57

In February 2025, the Company granted 284 thousand performance-based stock awards and units, which are contingent on the achievement of the Company's financial performance metrics and its market-based conditions.

On the date of grant, the Company estimated the fair value of restricted stock awards and units with market-based conditions using a Monte Carlo simulation model.

The model discounts the value of the stock at the assumed vesting date based on the risk-free interest rate.

Based on estimates of actual performance versus the vesting thresholds, the calculated fair value percentage payout estimate will be updated each quarter.

The Company uses third-party analyses to assist in developing the assumptions used in, as well as calibrating, a Monte Carlo simulation model.

The Company is responsible for determining the assumptions used in estimating the fair value of its share-based payment awards.

For additional information on the Company's long-term share-based compensation plans and the types of share-based awards, see Note 12 of the Notes to the Consolidated Financial Statements included in the 2024 Annual Report.

As of March 31, 2026, total compensation cost not yet recognized in the Company's consolidated financial statements related to restricted stock was $ 97 million, of which $ 52 million ( 1.4 million shares) was related to performance-based restricted stock.

The Company expects to recognize these amounts over a weighted-average period of approximately 1.7 years.

There are no other contractual terms covering restricted stock once vested.

BENEFIT PLANS

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As a result, the Company recognized a settlement charge of $ 55 million in the first quarter of 2025.

Effective April 1, 2025, the external insurer began making annuity payments to plan participants.

Effective April 1, 2025, the external insurer began making annuity payments to plan participants, and substantially all of the outstanding benefit obligations under the plan were transferred to the external insurer and/or the Pension Benefit Guaranty Corporation.

Therefore, the Company is no longer responsible for those obligations.

The Company also maintains non-qualified, unfunded supplemental retirement plans that provide defined pension benefits in excess of limits imposed by federal tax law for certain Japanese, U.S.

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However, future benefits under the Company's Supplemental Executive Retirement Plan and Retirement Plan for Senior Officers were frozen effective January 1, 2024, provided that actively employed participants may continue to accrue service toward eligibility for early retirement benefits or delayed early retirement benefits.

The Company provides certain health care benefits for eligible U.S.

retired employees, their beneficiaries and covered dependents (other postretirement benefits).

The health care plan is contributory and unfunded.

For certain employees and former employees, additional coverage is provided for all medical expenses for life.

Pension and other postretirement benefit expenses are included in acquisition and operating expenses in the consolidated statements of earnings, which includes other components of net periodic pension cost and postretirement costs (other than service costs) of $ 4 million and $ 3 million for the three-month periods and $ 64 million and $ 7 million for the nine-month periods ended September 30, 2025 and 2024, respectively.

Pension expenses are included in acquisition and operating expenses in the consolidated statements of earnings, which includes other components of net periodic pension costs (other than service costs) of $ 1 million and $ 57 million for the three-month periods ended March 31, 2026 and 2025, respectively.

Total net periodic benefit cost includes the following components:

Three Months Ended September 30,

Pension Benefits Other

Postretirement Benefits

(In millions) 2025 2024 2025 2024 2025 2024

Components of net periodic

benefit cost:

Service cost $ 4 $ 3 $ 0 $ 0 $ 0 $ 0

Interest cost 2 2 3 9 1 1

Expected return on plan assets ( 2 ) ( 2 ) 0 ( 7 ) 0 0

Amortization of net actuarial

(gain) loss 0 0 0 0 0 0

Settlement (gain) loss 0 0 0 0 0 0

Net periodic benefit cost (credit) $ 4 $ 3 $ 3 $ 2 $ 1 $ 1

Nine Months Ended September 30,

Pension Benefits Other

Postretirement Benefits

Three Months Ended March 31,

Pension Benefits

(In millions) 2026 2025 2026 2025

Components of net periodic

benefit cost:

Components of net periodic benefit cost:

Service cost $ 2 $ 3 $ 0 $ 0

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Expected return on plan assets ( 3 ) ( 2 ) 0 ( 5 )

Amortization of net actuarial

(gain) loss 0 0 ( 1 ) ( 1 ) 1 0

Amortization of net actuarial (gain) loss 0 0 0 ( 1 )

Settlement (gain) loss 0 0 0 55

Net periodic benefit cost (credit) $ 1 $ 3 $ 2 $ 57

During the nine months ended September 30, 2025, Aflac Japan contributed approximately $ 19 million (using the weighted-average yen/dollar exchange rate for the nine-month period ended September 30, 2025) to the Japanese funded defined benefit plan, and Aflac U.S.

During the three months ended March 31, 2026, Aflac Japan contributed approximately $ 6 million (using the weighted-average Japanese yen/U.S.

dollar exchange rate for the three-month period ended March 31, 2026) to the Japanese funded defined benefit plan, and Aflac U.S.

did not make a contribution to the U.S.

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Cyber Incident

As previously disclosed, the Company identified an incident involving unauthorized access to its network in the U.S.

As previously disclosed, the Company identified an incident involving unauthorized access to a limited number of its systems in the U.S.

on June 12, 2025.

The Company promptly initiated its cybersecurity incident response protocols and continues to believe it contained the intrusion within hours.

The Company is still in the process of validating the extent and nature of the files that were involved in the incident and the Company believes that the potential amount of loss cannot be reasonably estimated at this time.

The Company's systems were not affected by ransomware, and the Company continues to serve its policyholders and underwrite policies, review claims, and otherwise service customers as usual.

The Company promptly initiated its cybersecurity incident response protocols and believes it contained the unauthorized access within hours.

The Company's systems were not affected by ransomware, and the Company remained able to serve its policyholders and underwrite policies, review claims, and otherwise service customers as usual.

In December 2025, the Company determined that personal information associated with approximately 22.65 million individuals was involved.

The Company remains in communication with regulators and has pending disputes related to the June 2025 incident.

The Company believes that the potential amount of loss cannot be reasonably estimated at this time.

Outsourcing Agreements and Other Commitments

In May 2025, the Company renewed an outsourcing agreement with an information technology and data services company to provide application maintenance and development services for Aflac Japan.

The agreement has a remaining term of three years with an aggregate remaining cost of ¥ 10.1 billion ($ 68 million using the September 30, 2025 exchange rate).

In February 2025, the Company renewed an outsourcing agreement with an information technology and data services company to provide application maintenance and development services for Aflac Japan.

The agreement has a remaining term of three years with an aggregate remaining cost of ¥ 8.6 billion ($ 58 million using the September 30, 2025 exchange rate).

See Note 3 for details on certain investment commitments.

In March 2026, the Company renewed an outsourcing agreement with a technology and consulting company that provides for mainframe computer operations, distributed mid-range server computer operations, and related support for Aflac Japan.

The agreement has a remaining term of four years with an aggregate remaining cost of ¥ 42.7 billion ($ 267 million using the March 31, 2026 foreign exchange rate).

For additional information on certain outsourcing agreements, see Note 15 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.

For details on certain investment commitments, see the accompanying Note 3.

Guaranty Fund Assessments

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Under state guaranty association laws, certain insurance companies can be assessed (up to prescribed limits) for certain obligations to the policyholders and claimants of impaired or insolvent insurance companies that write the same line or similar lines of business.

Guaranty fund assessments for the three- and nine-month periods ended September 30, 2025 and 2024 were immaterial.

Guaranty fund assessments for the three-month periods ended March 31, 2026 and 2025 were immaterial.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements