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Item 1. Financial Statements

2026-08-07 compared with 2026-05-06 · 490 added, 164 removed, 2341 unchanged (22% of the section changed)

2 unchanged sentences

Consolidated Statements of Earnings

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

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

27 unchanged sentences

Cash dividends per share $ .61 $ .58 $ 1.22 $ 1.16

(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.

(1) Includes a gain (loss) of an immaterial amount for the three- and six-month periods ended June 30, 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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions - Unaudited) 2026 2025 2026 2025

19 unchanged sentences

Consolidated Balance Sheets

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

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

Investments and cash:

76 unchanged sentences

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

Net earnings 0 0 825 0 0 825

Unrealized foreign currency translation

gains (losses) during period, net of

income taxes 0 0 0 ( 87 ) 0 ( 87 )

Unrealized gains (losses) on fixed maturity

securities during period, net of income

taxes and reclassification adjustments 0 0 0 ( 88 ) 0 ( 88 )

Unrealized gains (losses) on derivatives

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

Effect of changes in discount rate assumptions

during period, net of income taxes 0 0 0 957 0 957

Pension liability adjustment during period,

net of income taxes 0 0 0 ( 2 ) 0 ( 2 )

Dividends to shareholders (1)

($ .61 per share)

0 0 ( 309 ) 0 0 ( 309 )

Exercise of stock options 0 2 0 0 0 2

Share-based compensation 0 26 0 0 0 26

Purchases of treasury stock 0 0 0 0 ( 992 ) ( 992 )

Treasury stock reissued 0 13 0 0 6 19

Balance at June 30, 2026 $ 136 $ 3,105 $ 56,218 $ 2,681 $ ( 31,828 ) $ 30,312

(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'

21 unchanged sentences

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

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.

2 unchanged sentences

Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

(In millions - Unaudited) 2026 2025

27 unchanged sentences

Purchases of treasury stock ( 1,984 ) ( 1,729 )

Proceeds from borrowings 911 1,039

Principal payments under debt obligations ( 400 ) 0

50 unchanged sentences

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 June 30, 2026 and December 31, 2025, the consolidated statements of earnings and comprehensive income (loss) for the three- and six-month periods ended June 30, 2026 and 2025, the consolidated statements of shareholders' equity for the three-month periods ended March 31, 2026 and 2025 and June 30, 2026 and 2025, and the consolidated statements of cash flows for the six-month periods ended June 30, 2026 and 2025.

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

12 unchanged sentences

Accounting Pronouncements Pending Adoption

ASU 2024-03 Income Statement (Topic 220) - Disaggregation of Income Statement Expenses

Accounting Standards Update (ASU) 2024-03 Income Statement (Topic 220) - Disaggregation of Income Statement Expenses

In November 2024, the FASB issued amendments that require disaggregated disclosure, in the notes to the financial statements, of specified information about certain costs and expenses including (1) the amounts of employee compensation, depreciation, and intangible asset amortization;

23 unchanged sentences

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 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.

Aflac Japan's adjusted revenues as a percentage of the Company's total adjusted revenues were 51 % and 54 % in the three-month periods and 51 % and 54 % in the six-month periods ended June 30, 2026 and 2025, respectively.

The percentage of the Company's total assets attributable to Aflac Japan was 75 % at June 30, 2026, compared with 76 % at December 31, 2025.

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

8 unchanged sentences

Total adjusted revenue Aflac U.S.

1,771 1,728 3,550 3,449

Corporate and other (2)

291 336 583 662

Total adjusted revenues 4,223 4,536 8,466 8,855

6 unchanged sentences

Total revenues $ 4,117 $ 4,160 $ 8,463 $ 7,558

(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.

(2) The change in value of federal historic rehabilitation and solar investments in partnerships of $ 6 and $ 8 for the three-month periods and $ 11 and $ 16 for the six-month periods ended June 30, 2026 and 2025, respectively, is included as a reduction to net investment income.

Tax credits on these investments of $ 5 and $ 9 for the three-month periods and $ 10 and $ 16 for the six-month periods ended June 30, 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,

Three Months Ended

Six Months Ended

(In millions) 2026 2025 2026 2025

2 unchanged sentences

$ 2,161 $ 2,472 $ 4,333 $ 4,744

1,771 1,728 3,550 3,449

Corporate and other (2)

291 336 583 662

Total adjusted revenues 4,223 4,536 8,466 8,855

16 unchanged sentences

Total benefits and adjusted expenses Aflac U.S.

1,401 1,340 2,817 2,703

Corporate and other 301 316 593 599

2 unchanged sentences

Aflac Japan (1)

$ 741 $ 790 $ 1,500 $ 1,512

370 388 733 746

Corporate and other (2)

( 10 ) 20 ( 10 ) 63

Pretax adjusted earnings 1,101 1,198 2,223 2,321

10 unchanged sentences

Effect of foreign currency translation on after-tax adjusted earnings ( 27 ) 23 ( 35 ) 15

(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.

2 unchanged sentences

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.

Aflac Re recorded net earned premiums of $ 152 million and $ 178 million for the three-month periods and $ 310 million and $ 356 million for the six-month periods ended June 30, 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) March 31,

(In millions) June 30,

2026 December 31,

5 unchanged sentences

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 presented in the following tables.

March 31, 2026

June 30, 2026

(In millions) Amortized

58 unchanged sentences

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

March 31, 2026

June 30, 2026

(In millions) Amortized

33 unchanged sentences

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.

During the first six 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 March 31, 2026, were as follows:

The contractual and economic maturities of the Company's investments in fixed maturity securities at June 30, 2026, were as follows:

(In millions) Amortized

23 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In millions) Credit

6 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

9 unchanged sentences

Equity securities 87

Real estate owned impairments ( 24 ) 0

Impairment losses ( 11 ) ( 6 ) ( 35 ) ( 6 )

Credit losses:

9 unchanged sentences

Total net investment gains (losses) $ ( 153 ) $ ( 421 ) $ ( 104 ) $ ( 1,384 )

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.

In the three-month period ended June 30, 2026, the Company did not recognize impairment losses on real estate owned (REO) properties.

In the six-month period ended June 30, 2026, the Company recognized impairment losses of $ 24 million on 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 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.

In the three-month and six-month periods ended June 30, 2025, the Company recognized impairment losses of $ 6 million on office-type 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.

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, included in net investment gains and losses for the three-month period ended June 30, 2026 that relate to equity securities held at the June 30, 2026 reporting date were $ 60 million.

The unrealized holding gains, net of losses, included in net investment gains and losses for the three-month period ended June 30, 2025 that relate to equity securities held at the June 30, 2025 reporting date were $ 101 million.

The unrealized holding gains, net of losses, included in net investment gains and losses for the six-month period ended June 30, 2026 that relate to equity securities held at the June 30, 2026 reporting date were $ 29 million.

The unrealized holding gains, net of losses, included in net investment gains and losses for the six-month period ended June 30, 2025 that relate to equity securities held at the June 30, 2025 reporting date were $ 47 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) March 31,

(In millions) June 30,

2026 December 31,

3 unchanged sentences

Gross Unrealized Loss Aging

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

The following tables present the fair values and gross unrealized losses of the Company's available-for-sale securities for the periods ended June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

June 30, 2026

Total Less than 12 months 12 months or longer

71 unchanged sentences

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 March 31, 2026 .

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.

As of June 30, 2026 and December 31, 2025, the Company had an immaterial amount of fixed maturity securities on nonaccrual status.

Commercial Mortgage and Other Loans

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

June 30, 2026 December 31, 2025

(In millions) Amortized

22 unchanged sentences

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 %)).

(with the largest concentrations in California ( 20 %), Texas ( 14 %) and Arizona ( 7 %)).

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

2 unchanged sentences

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

As of June 30, 2026, the Company had $ 125 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 March 31, 2026, the Company had commitments of approximately $ 692 million to fund future MMLs.

As of June 30, 2026, the Company had commitments of approximately $ 696 million to fund future MMLs.

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

Other loans are primarily infrastructure loans.

Infrastructure loans are typically senior secured, financing operating portfolios of renewable and conventional energy generation assets characterized by predictable, often contractual cash flows for loan repayment.

Infrastructure loans are typically senior secured, financing portfolios of renewable and conventional energy generation assets characterized by predictable, often contractual cash flows for loan repayment.

The infrastructure loan portfolio weighted average rating is investment grade.

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

As of June 30, 2026, the Company had commitments of approximately $ 83 million to fund future other loans.

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

1 unchanged sentence

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.

March 31, 2026

June 30, 2026

(In millions) Current Less Than

6 unchanged sentences

Total $ 8,992 $ 163 $ 732 $ 895 $ 9,887 $ 797

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

(1) As of June 30, 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 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.

• For the three-month period ended June 30, 2026, the Company recognized interest income of $ 1 million on loans that were on nonaccrual status.

For the three-month period ended June 30, 2025, the Company recognized no interest income on loans that were on nonaccrual status.

For the six-month periods ended June 30, 2026 and 2025, the Company recognized interest income of $ 7 million and $ 1 million, respectively, on loans that were on nonaccrual status.

• Of these loans, TREs with an amortized cost of $ 168 million and $ 30 million had no credit loss allowance as of June 30, 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 June 30, 2026, there were no MMLs on nonaccrual status without an allowance for credit loss.

As of December 31, 2025, MMLs with an amortized cost of $ 36 million, were on nonaccrual status without an allowance for credit loss.

Loan Modifications to Borrowers Experiencing Financial Difficulties

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

The Company granted certain loan modifications to borrowers experiencing financial difficulty during the first six 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.

3 unchanged sentences

Three Months Ended

March 31, 2026

June 30, 2026

(In millions) Amortized Cost (1)

% of Total Financial Effect

Transitional Real Estate Loans:

Other-than-insignificant payment

delays $ 107 3.5 % Delay in payments of three months on average

Term extension and interest rate reduction 149 4.9 Term extension of 24 months on average and reduction in the weighted-average contractual interest rate from 6.6 % to 2.2 %

Middle market loans:

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

Term extension $ 27 .6 % Term extension of six months on average

(1) Net of allowance for credit losses

Three Months Ended

March 31, 2025

June 30, 2025

(In millions) Amortized Cost (1)

% of Total Financial Effect

Transitional real estate loans:

Term extension $ 128 3.1 % Term extension of 22 months on average

Term extension and interest rate reduction 152 3.7 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 $ 4 .1 % Reduction in the amortized cost basis of $ 0.3 million

Principal forgiveness and term

extension 25 .6 Reduction in the amortized cost basis of $ 34 million and term extension of 30 months on average

(1) Net of allowance for credit losses

Six Months Ended

June 30, 2026

(In millions) Amortized Cost (1)

% of Total Financial Effect

Transitional real estate loans:

Other-than-insignificant payment

delays $ 107 3.5 % Delay in payments of three months on average

Term extension and interest rate reduction 149 4.9 Term extension of 24 months on average and reduction in the weighted-average contractual interest rate from 6.6 % to 2.2 %

Middle market loans:

Term extension $ 27 .6 % Term extension of six months on average

Principal forgiveness and term

extension 6 .1 Reduction in the amortized cost basis of $ 11 million and term extension of 13 months on average

(1) Net of allowance for credit losses

Six Months Ended

June 30, 2025

(In millions) Amortized Cost (1)

% of Total Financial Effect

Transitional real estate loans:

Term extension $ 159 3.9 % Term extension of 20 months on average

Term extension and interest rate reduction 152 3.7 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 $ 6 .1 % Reduction in the amortized cost basis of $ 4 million

Term extension 33 .8 Term extension of six months on average

Other-than-insignificant

payment delays 28 .7 Delay in principal and interest payments of 35 months on average

Principal forgiveness and term

extension 25 .6 Reduction in the amortized cost basis of $ 34 million and term extension of 30 months on average

(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.

March 31, 2026

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

June 30, 2026

(In millions) Current Less Than

4 unchanged sentences

Total $ 219 $ 56 $ 89 $ 135

March 31, 2025

June 30, 2025

(In millions) Current Less Than

5 unchanged sentences

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 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.

Loans that were granted a modification in the past 12 months, as of June 30, 2026 and 2025, and subsequently defaulted in the three- and six-month periods ended June 30, 2026 and 2025, were immaterial.

As of June 30, 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

7 unchanged sentences

Three Months Ended

March 31, 2026:

Balance at December 31, 2025

June 30, 2026:

Balance at March 31, 2026

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

3 unchanged sentences

Change in foreign exchange 0 0 0 0 0 0 0

Balance at March 31, 2026

Balance at June 30, 2026

$ ( 315 ) $ ( 6 ) $ ( 209 ) $ ( 17 ) $ ( 4 ) $ 0 $ ( 551 )

Three Months Ended

March 31, 2025:

June 30, 2025:

Balance at March 31, 2025

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

(Addition to) release of allowance for credit losses

( 45 ) 3 ( 19 ) 2 0 0 ( 59 )

Writeoffs, net of recoveries 5 0 42 0 0 0 47

Change in foreign exchange 0 0 0 0 0 0 0

Balance at June 30, 2025

$ ( 243 ) $ ( 12 ) $ ( 127 ) $ ( 17 ) $ ( 5 ) $ 0 $ ( 404 )

Six Months Ended

June 30, 2026:

Balance at December 31, 2025

4 unchanged sentences

Change in foreign exchange 0 0 0 0 0 0 0

Balance at March 31, 2025

Balance at June 30, 2026

$ ( 315 ) $ ( 6 ) $ ( 209 ) $ ( 17 ) $ ( 4 ) $ 0 $ ( 551 )

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.

Six Months Ended

June 30, 2025:

Balance at December 31, 2024

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

(Addition to) release of allowance for credit losses

( 73 ) 2 ( 43 ) 0 0 0 ( 114 )

Writeoffs, net of recoveries 29 0 56 0 0 0 85

Change in foreign exchange 0 0 0 0 0 0 0

Balance at June 30, 2025

$ ( 243 ) $ ( 12 ) $ ( 127 ) $ ( 17 ) $ ( 5 ) $ 0 $ ( 404 )

As of June 30, 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 June 30, 2026, the Company established an allowance for credit losses of $ 86 million related to these loans.

As of June 30, 2026, the Company's held-to-maturity portfolio includes Japan Government and Agency securities with an amortized cost of $ 14.8 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

6 unchanged sentences

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.

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.

28 unchanged sentences

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.

The following tables present as of June 30, 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

42 unchanged sentences

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

(In millions) March 31,

(In millions) June 30,

2026 December 31,

7 unchanged sentences

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

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.

As of June 30, 2026 and December 31, 2025, all REO was classified as held-and-used for the production of income.

Depreciation expense on REO was $ 8 million for each of the three-month periods ended June 30, 2026 and 2025, and $ 15 million and $ 14 million for the six-month periods ended June 30, 2026 and 2025, respectively.

Additionally, as of June 30, 2026 and December 31, 2025, accumulated depreciation on REO was $ 53 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 $ 2.2 billion and $ 2.1 billion of unfunded commitments related to variable interest entities (VIEs) that are non-consolidated as of June 30, 2026 and December 31, 2025, respectively.

Variable Interest Entities

10 unchanged sentences

Investments in Consolidated Variable Interest Entities

(In millions) March 31,

(In millions) June 30,

2026 December 31,

6 unchanged sentences

Total liabilities of consolidated VIEs $ 887 $ 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.

(1) As of June 30, 2026, the Company's investments in consolidated VIEs also held cash and cash equivalents of $ 382 million, of which $ 63 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

21 unchanged sentences

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

As of June 30, 2026, assets held in the trust consisted of available-for-sale securities with a carrying value of $ 618 million and $ 6 million of cash and cash equivalents.

VIEs - Not Consolidated

1 unchanged sentence

Investments in Variable Interest Entities Not Consolidated

(In millions) March 31,

(In millions) June 30,

2026 December 31,

22 unchanged sentences

Remaining Contractual Maturity of the Agreements

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In millions) Overnight

16 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 $ 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.

In connection with securities lending, in addition to cash collateral received, the Company received from counterparties no securities collateral at June 30, 2026, compared with $ 2.2 billion at December 31, 2025, 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.

The Company did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of June 30, 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.

14 unchanged sentences

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 Japanese 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.

16 unchanged sentences

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.

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.

16 unchanged sentences

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.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In millions) Asset

18 unchanged sentences

Interest rate swaps 25,950 0 107 36,728 14 189

Forward bond purchase

commitment 688 0 5 0 0 0

Total non-qualifying strategies 39,594 62 1,066 65,682 59 967

5 unchanged sentences

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 .

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

Fair Value Hedge

12 unchanged sentences

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;

The Company had no fair value hedges of interest rate risk as of June 30, 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.

2 unchanged sentences

2026 December 31,

2025 March 31,

2025 June 30,

2026 December 31,

4 unchanged sentences

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.

The Company's net investment hedge was effective during the three- and six-month periods ended June 30, 2026 and 2025, respectively.

Non-qualifying Strategies

12 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30,

(In millions) Net

25 unchanged sentences

Total $ 0 $ ( 134 ) $ 124 $ 0 $ 23 $ ( 219 )

(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.

(1) Impact of cash flow hedges reported as net investment gains (losses) includes an immaterial amount of losses reclassified from accumulated other comprehensive income (loss) into earnings during the three-month period ended June 30, 2026, and $ 1 of losses during the three-month period ended June 30, 2025.

Six Months Ended June 30,

(In millions) Net

(Losses) Other

Comprehensive

Income (Loss) Net

(Losses) Other

Comprehensive

Income (Loss)

Qualifying hedges:

Cash flow hedges:

Foreign currency swaps - VIE $ 0 $ 4 $ ( 4 ) $ 0 $ ( 2 ) $ 3

Total cash flow hedges 0 4 (1)

( 4 ) 0 ( 2 ) (1)

Net investment hedge:

Non-derivative hedging

instruments 0 189 0 ( 379 )

Foreign currency forwards 24 87 62 ( 225 )

Total net investment hedge 24 276 62 ( 604 )

Non-qualifying strategies:

Foreign currency swaps 2 0

Foreign currency swaps - VIE ( 153 ) ( 27 )

Foreign currency forwards ( 49 ) ( 7 )

Foreign currency options ( 43 ) ( 19 )

Interest rate swaps ( 15 ) ( 29 )

Forward bond purchase

commitment 1 0

Total non-qualifying strategies ( 257 ) ( 82 )

Total $ 0 $ ( 229 ) $ 272 $ 0 $ ( 22 ) $ ( 601 )

(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 six-month period ended June 30, 2026, and $ 2 of losses during the six-month period ended June 30, 2025.

As of June 30, 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

4 unchanged sentences

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

As of June 30, 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.

7 unchanged sentences

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 $ 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 aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $ 957 million and $ 861 million as of June 30, 2026 and December 31, 2025, respectively.

If the credit-risk-related contingent features underlying these agreements had been triggered on June 30, 2026, the Company estimates that it would be required to post a maximum of $ 796 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.

9 unchanged sentences

Offsetting of Financial Assets and Derivative Assets

March 31, 2026

June 30, 2026

Gross Amounts Not Offset

51 unchanged sentences

Offsetting of Financial Liabilities and Derivative Liabilities

March 31, 2026

June 30, 2026

Gross Amounts Not Offset

60 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.

March 31, 2026

June 30, 2026

(In millions) Quoted Prices in

28 unchanged sentences

Interest rate swaps 0 107 0 107

Forward bond purchase commitment 0 5 0 5

Total liabilities $ 0 $ 1,072 $ 0 $ 1,072

31 unchanged sentences

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.

March 31, 2026

June 30, 2026

(In millions) Carrying

76 unchanged sentences

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

March 31, 2026

June 30, 2026

(In millions) Quoted Prices in

45 unchanged sentences

Total equity securities $ 767 $ 0 $ 158 $ 925

March 31, 2026

June 30, 2026

(In millions) Quoted Prices in

164 unchanged sentences

Three Months Ended

March 31, 2026

June 30, 2026

Fixed Maturity Securities Equity

24 unchanged sentences

Three Months Ended

March 31, 2025

June 30, 2025

Fixed Maturity Securities Equity

23 unchanged sentences

included in earnings $ 0 $ 0 $ 0 $ 0 $ 0 $ 3 $ 3

Six Months Ended

June 30, 2026

Fixed Maturity Securities Equity

(In millions) Mortgage-

Securities Public

Utilities Sovereign

Supranational Banks/

Institutions Other

Corporate Total

Balance, beginning of period $ 2,294 $ 876 $ 19 $ 9 $ 159 $ 160 $ 3,517

Net investment gains (losses) included

in earnings 14 5 0 0 6 ( 3 ) 22

Unrealized gains (losses) included in

other comprehensive income (loss) ( 48 ) ( 24 ) 0 0 ( 8 ) 0 ( 80 )

Purchases, issuances, sales

and settlements:

Purchases 491 49 0 0 0 1 541

Issuances 0 0 0 0 0 0 0

Sales 0 0 0 0 0 0 0

Settlements ( 171 ) ( 54 ) ( 2 ) 0 ( 22 ) 0 ( 249 )

Transfers into Level 3 259 0 0 0 0 0 259

Transfers out of Level 3 ( 86 ) 0 0 ( 5 ) 0 0 ( 91 )

Balance, end of period $ 2,753 $ 852 $ 17 $ 4 $ 135 $ 158 $ 3,919

Changes in unrealized gains

(losses) relating to Level 3 assets

and liabilities still held at the end

of the period included in earnings $ 2 $ 1 $ 0 $ 0 $ 0 $ 1 $ 4

Six Months Ended

June 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 4 4

Unrealized gains (losses) included in

other comprehensive income (loss) 30 20 2 ( 1 ) 4 0 55

Purchases, issuances, sales and

Purchases 609 158 0 0 24 7 798

Issuances 0 0 0 0 0 0 0

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

Settlements ( 56 ) ( 33 ) ( 2 ) 0 ( 1 ) 0 ( 92 )

Transfers into Level 3 183 0 0 0 0 0 183

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

Balance, end of period $ 1,922 $ 792 $ 23 $ 9 $ 163 $ 167 $ 3,076

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

Fair Value Sensitivity

2 unchanged sentences

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

March 31, 2026

June 30, 2026

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

53 unchanged sentences

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

March 31, 2026

June 30, 2026

Aflac Japan Aflac U.S.

11 unchanged sentences

other ( 109 ) ( 67 ) ( 16 ) ( 1 ) 0 0 0 0 0 0 0 ( 193 )

Balance at March 31, 2026

Balance at June 30, 2026

$ 2,933 $ 1,777 $ 437 $ 49 $ 900 $ 638 $ 1,349 $ 463 $ 87 $ 315 $ 0 $ 8,948

15 unchanged sentences

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

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.

There were no changes to the inputs, judgments, assumptions or methods used to determine amortization amounts during the six-month periods ended June 30, 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.

3 unchanged sentences

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.

March 31, 2026

June 30, 2026

Aflac Japan Aflac U.S.

20 unchanged sentences

Effect of changes in discount rate assumptions ( 1,467 ) ( 1,577 ) ( 350 ) ( 96 ) ( 147 ) ( 64 ) ( 352 ) ( 74 ) ( 9 ) ( 40 ) 171

Balance at March 31, 2026

Balance at June 30, 2026

$ 10,986 $ 9,181 $ 4,083 $ 636 $ 2,455 $ 1,683 $ 3,941 $ 1,178 $ 203 $ 1,088 $ 2,487

14 unchanged sentences

Effect of changes in discount rate assumptions ( 3,323 ) ( 5,274 ) ( 5,681 ) ( 1,254 ) ( 210 ) ( 98 ) ( 1,146 ) ( 144 ) ( 27 ) ( 243 ) 167

Balance at March 31, 2026

Balance at June 30, 2026

31,311 15,685 18,440 3,261 3,090 2,310 10,687 1,936 431 2,179 2,958

52 unchanged sentences

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.

March 31, 2026

June 30, 2026

Aflac Japan Aflac U.S.

27 unchanged sentences

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) March 31,

(In millions) June 30,

2026 December 31,

19 unchanged sentences

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.

There were no changes to the inputs, judgments, assumptions or methods used in measuring the liability for future policy benefits during the six-month periods ended June 30, 2026 and 2025.

Discount Rate Methodology

4 unchanged sentences

Locked-in discount rates are determined separately for each issue-year cohort as a single discount rate, calculated as the weighted-average of monthly upper-medium grade (low credit risk) fixed-income instrument forward curves in the calendar year, where the weights are the annualized premiums issued for each month of the cohort.

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

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

5 unchanged sentences

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, which is March 31, 2026), 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), and is adjusted for credit and inflation components.

For the Aflac U.S.

6 unchanged sentences

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 three-month periods ended March 31, 2026 and 2025.

There were no changes to the methods used to determine the discount rates during the six-month periods ended June 30, 2026 and 2025.

Cash Flow Assumptions

10 unchanged sentences

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.

• For the three- and six-month periods ended June 30, 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.

3 unchanged sentences

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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

3 unchanged sentences

Life insurance 292 328 590 644

Other 28 33 57 65

Accident 303 309 608 620

4 unchanged sentences

Life insurance 196 170 394 339

Other 72 41 135 90

Corporate and other 176 206 358 404

2 unchanged sentences

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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

3 unchanged sentences

Life insurance 104 116 212 230

Other 18 20 36 38

Accident 7 6 14 13

Disability 7 8 14 15

3 unchanged sentences

Life insurance 13 12 25 23

Other 6 6 12 12

Total $ 528 $ 576 $ 1,065 $ 1,135

6 unchanged sentences

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.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In millions) Gross

16 unchanged sentences

Total $ 138,849 $ 167,353 $ 143,474 $ 173,047

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In millions) Gross

16 unchanged sentences

Total $ 92,615 $ 92,288 $ 99,697 $ 100,522

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

Loss expense as a result of NPR capping for the three- and six-month periods ended June 30, 2026 and 2025 was immaterial.

Other Policyholders' Funds

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.

As of June 30, 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) March 31,

(In millions) June 30,

2026 December 31,

13 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In millions) Range of Guaranteed

7 unchanged sentences

(1) Aflac Japan fixed annuities

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

(2) Weighted-average crediting rate of 1.5 % at June 30, 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.

11 unchanged sentences

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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2026 2025 2026 2025

7 unchanged sentences

Ceded ( 100 ) ( 64 ) ( 188 ) ( 120 )

Assumed 21 14 28 25

Benefits and claims, excluding reserve remeasurement 1,898 2,047 3,812 4,033

2 unchanged sentences

Ceded ( 2 ) 0 ( 3 ) 0

Assumed ( 1 ) 0 ( 1 ) 0

Reserve remeasurement (gains) losses ( 46 ) ( 37 ) ( 128 ) ( 78 )

1 unchanged sentence

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 remaining consolidated deferred reinsurance gain liability of $ 282 million and $ 125 million as of June 30, 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 Company also reported a reinsurance recoverable with a remaining balance, net of allowance for credit losses of $ 444 million and $ 161 million as of June 30, 2026 and December 31, 2025, respectively.

As of June 30, 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 March 31, 2026, the Company's significant reinsurance counterparties were rated A+.

As of June 30, 2026, the Company's significant reinsurance counterparties were rated A+.

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

10 unchanged sentences

A summary of notes payable and lease obligations follows:

(In millions) March 31,

(In millions) June 30,

2026 December 31,

2 unchanged sentences

3.60 % senior notes due April 2030

5.150 % senior notes due May 2036

6.90 % senior notes due December 2039

5 unchanged sentences

1.048 % senior notes due March 2029 (principal amount ¥ 13.0 billion)

2.117 % senior notes due May 2029 (principal amount ¥ 3.1 billion)

1.075 % senior notes due September 2029 (principal amount ¥ 33.4 billion)

6 unchanged sentences

.843 % senior notes due December 2031 (principal amount ¥ 9.3 billion)

2.802 % senior notes due December 2031 (principal amount ¥ 41.8 billion)

.750 % senior notes due March 2032 (principal amount ¥ 20.7 billion)

3 unchanged sentences

.844 % senior notes due April 2033 (principal amount ¥ 12.0 billion)

3.123 % senior notes due May 2033 (principal amount ¥ 13.1 billion)

1.488 % senior notes due October 2033 (principal amount ¥ 15.2 billion)

7 unchanged sentences

1.039 % senior notes due April 2036 (principal amount ¥ 10.0 billion)

3.482 % senior notes due May 2036 (principal amount ¥ 7.9 billion)

1.594 % senior notes due September 2037 (principal amount ¥ 6.5 billion)

12 unchanged sentences

2.400 % senior notes due March 2054 (principal amount ¥ 19.5 billion)

(In millions) June 30,

2026 December 31,

Yen-denominated loans:

9 unchanged sentences

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 May 2026, the Parent Company issued four series of senior notes totaling ¥ 65.9 billion through a public debt offering under its U.S.

shelf registration statement.

The first series, which totaled ¥ 3.1 billion, bears interest at a fixed rate of 2.117 % per annum, payable semiannually, and will mature in May 2029.

The second series, which totaled ¥ 41.8 billion, bears interest at a fixed rate of 2.802 % per annum, payable semiannually, and will mature in December 2031.

The third series, which totaled ¥ 13.1 billion, bears interest at a fixed rate of 3.123 % per annum, payable semiannually, and will mature in May 2033.

The fourth series, which totaled ¥ 7.9 billion, bears interest at a fixed rate of 3.482 % per annum, payable semiannually, and will mature in May 2036.

These notes are redeemable at the Parent Company's option (i) 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, or (ii) in whole or in part from time to time, on or after the date that is three months prior to the stated maturity date of the applicable series in the case of the notes maturing in May 2029, December 2031 and May 2033, and on or after the date that is six months prior to the stated maturity date of the applicable series in the case of the notes maturing in May 2036, 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 2026, the Parent Company issued $ 500 million of senior notes through a U.S.

public debt offering.

The notes bear interest at a fixed rate of 5.150 % per annum, payable semiannually, and will mature in May 2036.

These notes are redeemable at the Parent Company's option, in whole or in part, at any time and from time to time, at a redemption price equal to the greater of:

(i) the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed discounted to the redemption date on a semiannual basis at the yield to maturity for a U.S.

Treasury security with a maturity comparable to the remaining term of the notes, plus 15 basis points, less interest accrued to the date of redemption, or (ii) the aggregate principal amount of the notes to be redeemed, plus, in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to the redemption date.

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.

Interest expense related to the Company's notes payable, which is included in interest expense in the consolidated statements of earnings, was $ 63 million and $ 51 million for the three-month periods and $ 122 million and $ 100 million for the six-month periods ended June 30, 2026 and 2025, respectively.

Senior Note Facility Agreements

6 unchanged sentences

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.

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

As of June 30, 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:

A summary of the Company's lines of credit as of June 30, 2026 follows:

Borrower(s) Type Term Expiration

74 unchanged sentences

(1) Intercompany credit agreement

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.

The Company was in compliance with all of the covenants of its notes payable and lines of credit at June 30, 2026.

No events of default or defaults occurred during the six-month period ended June 30, 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 three-month periods ended March 31.

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

(In thousands of shares) 2026 2025

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Share Repurchase Program:

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.

During the first six months of 2026, the Company repurchased 17.5 million shares of its common stock for $ 2.0 billion as part of its share repurchase program.

During the first six months of 2025, the Company repurchased 16.4 million shares of its common stock for $ 1.7 billion as part of its share repurchase program.

As of June 30, 2026, a remaining balance of 96.8 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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In thousands) 2026 2025 2026 2025

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Three Months Ended

March 31, 2026

June 30, 2026

(In millions) Unrealized Foreign

6 unchanged sentences

Adjustment Total

Balance at December 31, 2025 $ ( 4,847 ) $ ( 1,809 ) $ ( 13 ) $ 8,035 $ 86 $ 1,452

Balance at March 31, 2026 $ ( 4,961 ) $ ( 2,665 ) $ ( 16 ) $ 9,458 $ 85 $ 1,901

Other comprehensive

8 unchanged sentences

income (loss) ( 87 ) ( 88 ) 0 957 ( 2 ) 780

Balance at March 31, 2026 $ ( 4,961 ) $ ( 2,665 ) $ ( 16 ) $ 9,458 $ 85 $ 1,901

Balance at June 30, 2026 $ ( 5,048 ) $ ( 2,753 ) $ ( 16 ) $ 10,415 $ 83 $ 2,681

All amounts in the table above are net of tax.

Three Months Ended

March 31, 2025

June 30, 2025

(In millions) Unrealized Foreign

6 unchanged sentences

Adjustment Total

Balance at March 31, 2025 $ ( 4,549 ) $ ( 1,233 ) $ ( 18 ) $ 3,899 $ 42 $ ( 1,859 )

Other comprehensive

income (loss) before

reclassification 267 ( 606 ) 0 1,695 ( 1 ) 1,355

Amounts reclassified from

accumulated other

comprehensive income

(loss) 0 11 1 0 1 13

Net current-period other

comprehensive

income (loss) 267 ( 595 ) 1 1,695 0 1,368

Balance at June 30, 2025 $ ( 4,282 ) $ ( 1,828 ) $ ( 17 ) $ 5,594 $ 42 $ ( 491 )

All amounts in the table above are net of tax.

Six Months Ended

June 30, 2026

(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 December 31, 2025 $ ( 4,847 ) $ ( 1,809 ) $ ( 13 ) $ 8,035 $ 86 $ 1,452

9 unchanged sentences

income (loss) ( 201 ) ( 944 ) ( 3 ) 2,380 ( 3 ) 1,229

Balance at March 31, 2025 $ ( 4,549 ) $ ( 1,233 ) $ ( 18 ) $ 3,899 $ 42 $ ( 1,859 )

Balance at June 30, 2026 $ ( 5,048 ) $ ( 2,753 ) $ ( 16 ) $ 10,415 $ 83 $ 2,681

All amounts in the table above are net of tax.

Six Months Ended

June 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 December 31, 2024 $ ( 4,998 ) $ 24 $ ( 20 ) $ 2,006 $ 10 $ ( 2,978 )

Other comprehensive

income (loss) before

reclassification 716 ( 1,831 ) 1 3,588 32 2,506

Amounts reclassified from

accumulated other

comprehensive income

(loss) 0 ( 21 ) 2 0 0 ( 19 )

Net current-period other

comprehensive

income (loss) 716 ( 1,852 ) 3 3,588 32 2,487

Balance at June 30, 2025 $ ( 4,282 ) $ ( 1,828 ) $ ( 17 ) $ 5,594 $ 42 $ ( 491 )

All amounts in the table above are net of tax.

The tables below summarize the amounts reclassified from each component of accumulated other comprehensive income into net earnings for the following periods.

1 unchanged sentence

(In millions) Three Months Ended

March 31, 2026

June 30, 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

March 31, 2025

June 30, 2025

Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the

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(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) Six Months Ended

June 30, 2026

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 $ ( 258 ) Net investment gains (losses)

54 Tax (expense) or benefit (1)

$ ( 204 ) Net of tax

Unrealized gains (losses) on derivatives $ 4 Net investment gains (losses)

( 1 ) Tax (expense) or benefit (1)

$ 3 Net of tax

Amortization of defined benefit pension items:

Actuarial gains (losses) $ 1 Acquisition and operating expenses (2)

Prior service (cost) credit 0 Acquisition and operating expenses (2)

0 Tax (expense) or benefit (1)

$ 1 Net of tax

Total reclassifications for the period $ ( 200 ) 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) Six Months Ended

June 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 $ 26 Net investment gains (losses)

( 5 ) Tax (expense) or benefit (1)

$ 21 Net of tax

Unrealized gains (losses) on derivatives $ ( 2 ) Net investment gains (losses)

0 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 $ 19 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).

SHARE-BASED COMPENSATION

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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.

As of June 30, 2026, approximately 31.7 million shares were available for future grants under the Plan.

The Plan allows awards to Company employees as follows:

14 unchanged sentences

Stock Options

The following table provides information on stock options outstanding and exercisable at March 31, 2026.

The following table provides information on stock options outstanding and exercisable at June 30, 2026.

Option Shares

6 unchanged sentences

Exercisable 169 1.2 13 38.34

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.

The Company received cash from the exercise of stock options in the amount of $ 5 million during the first six months of both 2026 and 2025.

The tax benefit realized as a result of stock option exercises and restricted stock releases was $ 28 million in the first six months of 2026, compared with $ 30 million in the first six months of 2025.

Performance-Based Restricted Stock

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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.

The following table summarizes restricted stock activity during the six-month period ended June 30, 2026.

(In thousands of shares) Shares Weighted-Average

7 unchanged sentences

( 1,093 ) 75.39

Restricted stock at March 31, 2026

Restricted stock at June 30, 2026

1,684 $ 102.84

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.

As of June 30, 2026, total compensation cost not yet recognized in the Company's consolidated financial statements related to restricted stock was $ 82 million, of which $ 42 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 1.6 years.

10 unchanged sentences

Therefore, the Company is no longer responsible for those obligations.

Upon termination of the U.S.

defined pension plan, approximately $ 13 million of excess assets were transferred to the Company's 401(k) plan in 2026.

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.

1 unchanged sentence

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.

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.

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 $ 2 million and $ 2 million for the three-month periods and $ 3 million and $ 59 million for the six-month periods ended June 30, 2026 and 2025, respectively.

Total net periodic benefit cost includes the following components:

Three Months Ended March 31,

Three Months Ended June 30,

Pension Benefits

7 unchanged sentences

Net periodic benefit cost (credit) $ 2 $ 3 $ 3 $ 2

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.

Six Months Ended June 30,

Pension Benefits

(In millions) 2026 2025 2026 2025

Components of net periodic benefit cost:

Service cost $ 5 $ 6 $ 0 $ 0

Interest cost 5 4 5 10

Expected return on plan assets ( 6 ) ( 4 ) 0 ( 5 )

Amortization of net actuarial (gain) loss ( 1 ) 0 0 ( 1 )

Settlement (gain) loss 0 0 0 55

Net periodic benefit cost (credit) $ 3 $ 6 $ 5 $ 59

During the six months ended June 30, 2026, Aflac Japan contributed approximately $ 11 million (using the weighted-average Japanese yen/U.S.

dollar exchange rate for the six-month period ended June 30, 2026) to the Japanese funded defined benefit plan, and Aflac U.S.

did not make a contribution to the U.S.

9 unchanged sentences

Although some of this litigation is pending in states where large punitive damages, bearing little relation to the actual damages sustained by plaintiffs, have been awarded in recent years, the Company believes the outcome of pending litigation will not have a material adverse effect on its financial position, results of operations, or cash flows.

Cyber Incident

Cyber Incidents

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 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 12, 2025 incident.

The Company believes that the potential amount of loss cannot be reasonably estimated at this time.

As previously disclosed, on June 30, 2026, Aflac Japan issued a press release announcing that, on June 25, 2026, it had detected an unauthorized third-party had accessed certain Aflac Japan systems.

Upon identifying the unauthorized access, Aflac Japan promptly took steps designed to contain the incident and prevent further access, including suspending certain systems.

Notwithstanding the suspension of certain systems, Aflac Japan continues to serve its policyholders as it responds to this incident and there was no indication of ransomware.

This incident is limited to systems in Japan.

The Company’s systems related to its U.S.

business were not accessed by the unauthorized third-party.

Based on the information currently available, as of the date of this report, the Company believes that the potential amount of loss cannot be reasonably estimated.

Outsourcing Agreements and Other 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).

The agreement has a remaining term of four years with an aggregate remaining cost of ¥ 40.1 billion ($ 247 million using the June 30, 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.

5 unchanged sentences

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-month periods ended March 31, 2026 and 2025 were immaterial.

Guaranty fund assessments for the three- and six-month periods ended June 30, 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