Aflac Incorporated (AFL) SEC Filings & Earnings Calls

Cyber incident risk

“the Company identified an incident involving unauthorized access to a limited number of its systems in the U.S. on June 12, 2025” · word for word

Japan cyber incident risk

“on June 25, 2026, it had detected an unauthorized third-party had accessed certain Aflac Japan systems” · word for word

Foreign exchange risk

“The average yen/dollar exchange rate for the three-month period ended June 30, 2026 was 159.45, or 9.3% weaker than the average rate of 144.60 for the same period in 2025.”

Net investment losses of $153M in Q2, though improved from $421M a year ago; investment portfolio risk remains.

“Net earnings included net investment losses of $153 million, compared with net investment losses of $421 million a year ago.”

Adjusted earnings declined 7.7% YoY, indicating underlying business pressure despite GAAP beat.

“Adjusted earnings were $883 million, compared with $957 million a year ago, reflecting a decrease of 7.7%.” · word for word

Cyber breach liability pressure: unauthorized access to policyholder data may lead to regulatory fines, litigation, and reputational damage.

“Aflac Japan has determined that certain impacted files contain policy and coverage details, personal information, and bank account information.” · word for word

Increased debt load may pressure future cash flows; however, notes are unsecured and rank equally with existing senior debt.

“The Notes are general unsecured obligations and rank equally in right of payment with any of the Company’s existing and future unsecured senior indebtedness.” · word for word

Increased leverage from $500M debt issuance, but manageable given Aflac's size.

“$500M senior notes issued.”

Cybersecurity incident with potential material costs

“In December 2025, the Company determined that personal information associated with approximately 22.65 million individuals was involved.” · word for word

Foreign currency exposure to yen/dollar exchange rate

“The weaker yen/dollar exchange rate negatively impacted adjusted earnings per diluted share by $.02.” · word for word

Yen weakness negatively impacting adjusted EPS; Japan premiums declining in yen terms (-3.8% YoY).

“The weaker yen/dollar exchange rate had a negative $0.02 impact on adjusted earnings per share. Japan total net earned premiums -3.8% YoY in yen.” · word for word

Adjusted earnings slightly down YoY (-0.6%); variable investment income below long-term expectations.

“Adjusted earnings* in the first quarter were $901 million, compared with $906 million a year ago, reflecting a decrease of 0.6%. Variable investment income ran $14 million below the company's long-term return expectations.” · word for word

Net unrealized loss on investment securities and derivatives increased to $2.7B from $1.3B YoY.

“net unrealized loss on investment securities and derivatives of $2.7 billion, compared with a net unrealized loss of $1.3 billion at March 31, 2025” · word for word

Cybersecurity incident

“The Company and our Management team's preparedness activities allowed for a timely response to a June 2025 cybersecurity incident impacting a limited number of Company systems, with removal of the threat actors within hours.” · word for word

Foreign currency exposure

“Aflac Japan’s performance is important to our results, as the Japan segment accounted for approximately 53% of total adjusted revenues for the year ending December 31, 2025.” · word for word

Japan net earned premium decline

“Net earned premiums decreased 3.9% due primarily to the 2024 reinsurance transaction and first sector policies reaching paid up status.” · word for word

Concentration in Japan

“Japan is the largest market for the Company's insurance products, and the Company owns substantial holdings in Japan Government Bonds (JGBs).” · word for word

Cybersecurity incident

“uncertainty regarding the impact of the incident involving unauthorized access to the Company’s network in June 2025” · word for word

Interest rate and foreign exchange risk

“The continuing difference between U.S. dollar and Japanese yen interest rates also contributes to costs of hedging foreign currency exchange risk of U.S. dollar-denominated investments held by Aflac Japan.” · word for word

Japan premium decline due to limited pay products reaching paid-up status.

“Aflac Japan's net earned premiums were ¥252.6 billion for the quarter, or 1.9% lower than a year ago, mainly due to limited pay products reaching paid-up status.” · word for word

Foreign exchange risk from yen/dollar exposure.

“The average yen/dollar exchange rate in the fourth quarter of 2025 was 154.20, or 1.2% weaker than the average rate of 152.35 in the fourth quarter of 2024.” · word for word

Cyber Incident Liability

“The Company is aware of the exfiltration of certain data including claims information, health information, social security numbers and/or other personal information relating to a substantial number of customers.” · word for word

Foreign Currency Exposure

“A significant portion of the Company’s business is conducted in yen and never converted into dollars but translated into dollars for U.S. GAAP reporting purposes.” · word for word

Foreign exchange exposure to yen/dollar rate; yen slightly stronger but impact minimal.

“Average yen/dollar exchange rate 147.68 vs 147.95; adjusted EPS not impacted.”

Investment portfolio volatility from derivatives and CECL.

“Net investment gains of $275 million driven by derivatives; $53 million CECL.”