Aflac Incorporated : 2021 Statutory Financial Results

ANNUAL STATEMENT

OF THE

American Family Life Assurance Company of Columbus (Aflac)

TO THE

Insurance Department

OF THE

STATE OF

FOR THE YEAR ENDED

DECEMBER 31, 2021

[ ] LIFE, ACCIDENT AND HEALTH

[ ] FRATERNAL BENEFIT SOCIETIES

2021

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE American Family Life Assurance Company of Columbus (Aflac)

ASSETS

			Current Year		Prior Year
		1	2	3	4
				Net Admitted Assets	Net Admitted
		Assets	Nonadmitted Assets	(Cols. 1 - 2)	Assets
1.	Bonds (Schedule D)	11,362,401,770	0	11,362,401,770	10,857,792,510
2.	Stocks (Schedule D):
	2.1 Preferred stocks	0	0	0	0
	2.2 Common stocks	402,220,198	0	402,220,198	378,568,153

3. Mortgage loans on real estate (Schedule B):

	3.1 First liens				1,692,080,258	0	1,692,080,258	1,337,606,615
	3.2 Other than first liens				0	0	0	0
4.	Real estate (Schedule A):
	4.1 Properties occupied by the company (less $		0
	encumbrances)				21,440,712	0	21,440,712	22,000,317
	4.2 Properties held for the production of income (less
	$		0 encumbrances)			0	0	0	0
	4.3 Properties held for sale (less $	0
	encumbrances)				0	0	0	0
5.	Cash ($	(16,777,104) , Schedule E - Part 1), cash equivalents
	($	290,267,418	, Schedule E - Part 2) and short-term
	investments ($	3,124,764 , Schedule DA)		276,615,078	0	276,615,078	313,429,746
6.	Contract loans (including $	0	premium notes)		12,625,021	0	12,625,021	10,784,726
7.	Derivatives (Schedule DB)				0	0	0	0
8.	Other invested assets (Schedule BA)			430,479,891	0	430,479,891	363,282,462
9.	Receivables for securities				3,479,935	0	3,479,935	7,128,862
10.	Securities lending reinvested collateral assets (Schedule DL)		407,379,797	0	407,379,797	340,070,385
11.	Aggregate write-ins for invested assets			7,783,647	0	7,783,647	0
12.	Subtotals, cash and invested assets (Lines 1 to 11)		14,616,506,307	0	14,616,506,307	13,630,663,774
13.	Title plants less $	0 charged off (for Title insurers
	only)				0	0	0	0
14.	Investment income due and accrued		155,269,511	0	155,269,511	158,761,325

15. Premiums and considerations:

15.1	Uncollected premiums and agents' balances in the course of collection	460,262,004	73,616,755	386,645,249	392,439,091
15.2	Deferred premiums and agents' balances and installments booked but
	deferred and not yet due (including $	0
	earned but unbilled premiums)		7,018,567	0	7,018,567	7,072,270
15.3	Accrued retrospective premiums ($	0 ) and
	contracts subject to redetermination ($	0 )	0	0	0	0

16. Reinsurance:

	16.1	Amounts recoverable from reinsurers	7,373,314	0	7,373,314	5,132,438
	16.2	Funds held by or deposited with reinsured companies	0	0	0	0
	16.3	Other amounts receivable under reinsurance contracts	1,055,665	0	1,055,665	1,354,724
17.	Amounts receivable relating to uninsured plans	981,953	0	981,953	574,613
18.1	Current federal and foreign income tax recoverable and interest thereon	52,117,342	0	52,117,342	98,556,598
18.2	Net deferred tax asset		796,173,102	491,757,037	304,416,065	271,636,944
19.	Guaranty funds receivable or on deposit	34,740,553	0	34,740,553	40,445,672
20.	Electronic data processing equipment and software	8,765,995	4,226,488	4,539,507	5,497,785
21.	Furniture and equipment, including health care delivery assets
	($	0 )	18,320,930	18,320,930	0	0
22.	Net adjustment in assets and liabilities due to foreign exchange rates	0	0	0	0
23.	Receivables from parent, subsidiaries and affiliates	35,889,314	0	35,889,314	30,548,950
24.	Health care ($	0 ) and other amounts receivable	4,944,605	4,944,605	0	0
25.	Aggregate write-ins for other than invested assets	195,022,297	174,961,143	20,061,154	13,942,008

26. Total assets excluding Separate Accounts, Segregated Accounts and

Protected Cell Accounts (Lines 12 to 25)

16,394,441,459

767,826,958

15,626,614,501

14,656,626,193

27. From Separate Accounts, Segregated Accounts and Protected Cell

	Accounts	0	0	0	0
28.	Total (Lines 26 and 27)	16,394,441,459	767,826,958	15,626,614,501	14,656,626,193
	DETAILS OF WRITE-INS
1101.	Receivable for Cash Collateral Pledged	7,783,647	0	7,783,647	0
1102.
1103.
1198.	Summary of remaining write-ins for Line 11 from overflow page	0	0	0	0
1199.	Totals (Lines 1101 thru 1103 plus 1198)(Line 11 above)	7,783,647	0	7,783,647	0
2501.	Prepaid Premium Tax Recoverable	20,061,154	0	20,061,154	8,160,702
2502.	Other Assets	138,844,152	138,844,152	0	5,781,306
2503.	Leasehold Improvements	17,997,613	17,997,613	0	0
2598.	Summary of remaining write-ins for Line 25 from overflow page	18,119,378	18,119,378	0	0
2599.	Totals (Lines 2501 thru 2503 plus 2598)(Line 25 above)	195,022,297	174,961,143	20,061,154	13,942,008

2

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE American Family Life Assurance Company of Columbus (Aflac)

LIABILITIES, SURPLUS AND OTHER FUNDS

					1	2
					Current Year	Prior Year
1.	Aggregate reserve for life contracts $	803,613,158 (Exh. 5, Line 9999999) less $	0
	included in Line 6.3 (including $	1,642,196 Modco Reserve)			803,613,158	743,535,083
2.	Aggregate reserve for accident and health contracts (including $	0 Modco Reserve)	8,889,136,845	8,649,602,816
3.	Liability for deposit-type contracts (Exhibit 7, Line 14, Col. 1) (including $	0	Modco Reserve)	400,904,776	301,360,896

4. Contract claims:

4.1	Life (Exhibit 8, Part 1, Line 4.4, Col. 1 less sum of Cols. 9, 10 and 11)		52,951,669	40,356,925
4.2	Accident and health (Exhibit 8, Part 1, Line 4.4, sum of Cols. 9, 10 and 11)		1,440,679,290	1,545,349,159
5. Policyholders' dividends/refunds to members $	0 and coupons $	0 due
and unpaid (Exhibit 4, Line 10)		0	0

6. Provision for policyholders' dividends, refunds to members and coupons payable in following calendar year - estimated amounts:

6.1	Policyholders' dividends and refunds to members apportioned for payment (including $	0
	Modco)			0	0
6.2	Policyholders' dividends and refunds to members not yet apportioned (including $	0 Modco)	0	0
6.3	Coupons and similar benefits (including $	0 Modco)		0	0
7. Amount provisionally held for deferred dividend policies not included in Line 6		0	0

8. Premiums and annuity considerations for life and accident and health contracts received in advance less

$	0 discount; including $	23,443,658 accident and health premiums (Exhibit 1,
Part 1, Col. 1, sum of lines 4 and 14)	24,931,537	25,215,723

9. Contract liabilities not included elsewhere:

	9.1	Surrender values on canceled contracts					0	0
	9.2	Provision for experience rating refunds, including the liability of $	0	accident and health
		experience rating refunds of which $	0 is for medical loss ratio rebate per the Public Health
		Service Act						0	0
	9.3 Other amounts payable on reinsurance, including $	87,550,922	assumed and $	0
		ceded						87,550,922	80,544,004
	9.4 Interest maintenance reserve (IMR, Line 6)					57,009,169	45,583,959
10.	Commissions to agents due or accrued-life and annuity contracts $	3,675,506	accident and health
	$	65,665,159 and deposit-type contract funds $	0			69,340,665	76,471,232
11.	Commissions and expense allowances payable on reinsurance assumed				1,167,043	532,649
12.	General expenses due or accrued (Exhibit 2, Line 12, Col. 7)					224,038,124	226,846,892
13.	Transfers to Separate Accounts due or accrued (net) (including $	0	accrued for expense
	allowances recognized in reserves, net of reinsured allowances)				0	0
14.	Taxes, licenses and fees due or accrued, excluding federal income taxes (Exhibit 3, Line 9, Col. 6)		36,115,426	54,201,836
15.1	Current federal and foreign income taxes, including $	(7,982,062) on realized capital gains (losses)		0	0
15.2	Net deferred tax liability						0	0
16.	Unearned investment income						0	0
17.	Amounts withheld or retained by reporting entity as agent or trustee				2,498,974	3,018,233
18.	Amounts held for agents' account, including $	3,226,084 agents' credit balances		4,314,374	6,318,372
19.	Remittances and items not allocated						43,953,835	45,999,139
20.	Net adjustment in assets and liabilities due to foreign exchange rates				0	0
21.	Liability for benefits for employees and agents if not included above				0	0
22.	Borrowed money $	0 and interest thereon $	0			0	0
23.	Dividends to stockholders declared and unpaid					0	0

24. Miscellaneous liabilities:

	24.01	Asset valuation reserve (AVR, Line 16, Col. 7)			177,055,038	109,938,850
	24.02 Reinsurance in unauthorized and certified ($	0 ) companies		0	0
	24.03 Funds held under reinsurance treaties with unauthorized and certified ($	0 ) reinsurers	0	0
	24.04	Payable to parent, subsidiaries and affiliates			184,635,862	177,687,464
	24.05	Drafts outstanding				0	0
	24.06	Liability for amounts held under uninsured plans			0	0
	24.07	Funds held under coinsurance				0	0
	24.08	Derivatives				7,806,821	0
	24.09	Payable for securities				3,419,465	7,445,478
	24.10	Payable for securities lending				407,379,797	340,070,385
	24.11 Capital notes $	0 and interest thereon $		0	0	0
25.	Aggregate write-ins for liabilities				81,557,692	88,499,411
26.	Total liabilities excluding Separate Accounts business (Lines 1 to 25)			13,000,060,482	12,568,578,507
27.	From Separate Accounts Statement				0	0
28.	Total liabilities (Lines 26 and 27)				13,000,060,482	12,568,578,507
29.	Common capital stock				7,025,039	7,025,039
30.	Preferred capital stock				0	0
31.	Aggregate write-ins for other than special surplus funds			0	0
32.	Surplus notes				130,000,000	130,000,000
33.	Gross paid in and contributed surplus (Page 3, Line 33, Col. 2 plus Page 4, Line 51.1, Col. 1)		588,508,552	588,508,552
34.	Aggregate write-ins for special surplus funds			0	0
35.	Unassigned funds (surplus)				1,901,020,428	1,362,514,095

36. Less treasury stock, at cost:

	36.1	0 shares common (value included in Line 29	$	0	)	0	0
	36.2	0 shares preferred (value included in Line 30	$	0	)	0	0
37.	Surplus (Total Lines 31+32+33+34+35-36) (including $		0 in Separate Accounts Statement)	2,619,528,980	2,081,022,647
38.	Totals of Lines 29, 30 and 37 (Page 4, Line 55)				2,626,554,019	2,088,047,686
39.	Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)				15,626,614,501	14,656,626,193
	DETAILS OF WRITE-INS
2501.	Other liabilities					46,224,728
				51,179,233
2502.	Funds held for escheat					29,842,750	26,225,766
2503.	Pension liability					5,490,214	11,094,412
2598.	Summary of remaining write-ins for Line 25 from overflow page				0	0
2599.	Totals (Lines 2501 thru 2503 plus 2598)(Line 25 above)				81,557,692	88,499,411
3101.
3102.
3103.
3198.	Summary of remaining write-ins for Line 31 from overflow page				0	0
3199.	Totals (Lines 3101 thru 3103 plus 3198)(Line 31 above)				0	0
3401.
3402.
3403.
3498.	Summary of remaining write-ins for Line 34 from overflow page				0	0
3499.	Totals (Lines 3401 thru 3403 plus 3498)(Line 34 above)				0	0

3

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE American Family Life Assurance Company of Columbus (Aflac)

SUMMARY OF OPERATIONS

		1	2
		Current Year	Prior Year
1.	Premiums and annuity considerations for life and accident and health contracts (Exhibit 1, Part 1, Line 20.4, Col. 1, less
	Col. 11)	4,936,425,218	5,134,247,246
2.	Considerations for supplementary contracts with life contingencies	0	0
3.	Net investment income (Exhibit of Net Investment Income, Line 17)	741,587,746	679,209,305
4.	Amortization of Interest Maintenance Reserve (IMR, Line 5)	3,379,064	5,482,944
5.	Separate Accounts net gain from operations excluding unrealized gains or losses	0	0
6.	Commissions and expense allowances on reinsurance ceded (Exhibit 1, Part 2, Line 26.1, Col. 1)	138,296	145,372
7.	Reserve adjustments on reinsurance ceded	(26,500)	(109,575)

8. Miscellaneous Income:

	8.1 Income from fees associated with investment management, administration and contract guarantees from Separate
	Accounts	0	0
	8.2 Charges and fees for deposit-type contracts	0	0
	8.3 Aggregate write-ins for miscellaneous income	31,669,548	(2,512,445)
9.	Total (Lines 1 to 8.3)	5,713,173,371	5,816,462,848
10.	Death benefits	139,982,799	77,345,525
11.	Matured endowments (excluding guaranteed annual pure endowments)	50,226	48,685
12.	Annuity benefits (Exhibit 8, Part 2, Line 6.4, Cols. 4 + 8)	0	0
13.	Disability benefits and benefits under accident and health contracts	1,799,156,029	2,083,639,179
14.	Coupons, guaranteed annual pure endowments and similar benefits	0	0
15.	Surrender benefits and withdrawals for life contracts	6,721,792	6,634,312
16.	Group conversions	0	0
17.	Interest and adjustments on contract or deposit-type contract funds	2,137,944	3,430,794
18.	Payments on supplementary contracts with life contingencies	0	0
19.	Increase in aggregate reserves for life and accident and health contracts	321,849,923	349,157,800
20.	Totals (Lines 10 to 19)	2,269,898,712	2,520,256,296

21. Commissions on premiums, annuity considerations, and deposit-type contract funds (direct business only) (Exhibit 1, Part

	2, Line 31, Col. 1)			647,671,346	678,907,577
22.	Commissions and expense allowances on reinsurance assumed (Exhibit 1, Part 2, Line 26.2, Col. 1)	231,822,903	232,778,055
23.	General insurance expenses and fraternal expenses (Exhibit 2, Line 10, Cols. 1, 2, 3, 4 and 6)	1,029,231,714	1,095,916,852
24.	Insurance taxes, licenses and fees, excluding federal income taxes (Exhibit 3, Line 7, Cols. 1 + 2 + 3 + 5)	121,817,175	122,929,574
25.	Increase in loading on deferred and uncollected premiums			(804,794)	1,197,608
26.	Net transfers to or (from) Separate Accounts net of reinsurance		0	0
27.	Aggregate write-ins for deductions			7,138,147	9,675,337
28.	Totals (Lines 20 to 27)			4,306,775,203	4,661,661,298
29.	Net gain from operations before dividends to policyholders, refunds to members and federal income taxes (Line 9 minus
	Line 28)				1,406,398,168	1,154,801,550
30.	Dividends to policyholders and refunds to members			2,540	3,233
31.	Net gain from operations after dividends to policyholders, refunds to members and before federal income taxes (Line 29
	minus Line 30)			1,406,395,628	1,154,798,316
32.	Federal and foreign income taxes incurred (excluding tax on capital gains)		281,246,423	235,532,651
33.	Net gain from operations after dividends to policyholders, refunds to members and federal income taxes and before
	realized capital gains or (losses) (Line 31 minus Line 32)			1,125,149,205	919,265,666
34.	Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital gains tax of
	$	(7,982,062) (excluding taxes of $	3,935,313	transferred to the IMR)	20,925,645	(47,725,890)
35.	Net income (Line 33 plus Line 34)			1,146,074,850	871,539,776
		CAPITAL AND SURPLUS ACCOUNT
36.	Capital and surplus, December 31, prior year (Page 3, Line 38, Col. 2)
	2,088,047,686	2,121,532,878
37.	Net income (Line 35)			1,146,074,850	871,539,776
38.	Change in net unrealized capital gains (losses) less capital gains tax of $	0	42,058,755	35,519,242
39.	Change in net unrealized foreign exchange capital gain (loss)			0	0
40.	Change in net deferred income tax			(22,605,087)	56,711,851
41.	Change in nonadmitted assets			89,340,870	(273,273,935)
42.	Change in liability for reinsurance in unauthorized and certified companies		0	0
43.	Change in reserve on account of change in valuation basis, (increase) or decrease	0	0
44.	Change in asset valuation reserve			(67,116,188)	5,135,327
45.	Change in treasury stock (Page 3, Lines 36.1 and 36.2, Col. 2 minus Col. 1)	0	0
46.	Surplus (contributed to) withdrawn from Separate Accounts during period		0	0
47.	Other changes in surplus in Separate Accounts Statement			0	0
48.	Change in surplus notes			0	130,000,000
49.	Cumulative effect of changes in accounting principles			0	0

50. Capital changes:

50.1	Paid in	0	0
50.2	Transferred from surplus (Stock Dividend)	0	0
50.3	Transferred to surplus	0	0

51. Surplus adjustment:

	51.1 Paid in	0	0
	51.2 Transferred to capital (Stock Dividend)	0	0
	51.3 Transferred from capital	0	0
	51.4 Change in surplus as a result of reinsurance	0	0
52.	Dividends to stockholders	(653,653,184)	(852,998,500)
53.	Aggregate write-ins for gains and losses in surplus	4,406,317	(6,118,952)
54.	Net change in capital and surplus for the year (Lines 37 through 53)	538,506,333	(33,485,191)
55.	Capital and surplus, December 31, current year (Lines 36 + 54) (Page 3, Line 38)	2,626,554,019	2,088,047,686
	DETAILS OF WRITE-INS
08.301. Realized Foreign Exchange Gain (Loss)	21,972,962
(10,632,348)
08.302. Administrative Service Fees from Affiliates	4,690,233	1,367,349
08.303. Other Income from Reinsurance Assumed	4,311,020	4,548,546
08.398. Summary of remaining write-ins for Line 8.3 from overflow page	695,333	2,204,008
08.399. Totals (Lines 08.301 thru 08.303 plus 08.398)(Line 8.3 above)	31,669,548	(2,512,445)
2701.	Reserve Adjustment from Reinsurance Assumed	7,138,147	9,675,337
2702.
2703.
2798.	Summary of remaining write-ins for Line 27 from overflow page	0	0
2799.	Totals (Lines 2701 thru 2703 plus 2798)(Line 27 above)	7,138,147	9,675,337
5301.	Minimum Pension Liability	4,427,317	(6,097,952)
5302.	Other Surplus Adjustment	(21,000)	(21,000)
5303.
5398.	Summary of remaining write-ins for Line 53 from overflow page	0	0
5399.	Totals (Lines 5301 thru 5303 plus 5398)(Line 53 above)	4,406,317	(6,118,952)

4