Aflac Incorporated : 2021 Statutory Financial Results – Q3

QUARTERLY STATEMENT

OF THE

American Family Life Assurance Company of Columbus (Aflac)

TO THE

Insurance Department

OF THE

STATE OF

FOR THE QUARTER ENDED

SEPTEMBER 30, 2021

[ ] LIFE, ACCIDENT AND HEALTH

[ ] FRATERNAL BENEFIT SOCIETIES

2021

STATEMENT AS OF SEPTEMBER 30, 2021 OF THE American Family Life Assurance Company of Columbus (Aflac)

ASSETS

			Current Statement Date		4
		1	2		3	December 31
					Net Admitted Assets	Prior Year Net
		Assets	Nonadmitted Assets		(Cols. 1 - 2)	Admitted Assets
1.	Bonds	11,234,094,215	0		11,234,094,215	10,857,792,510
2.	Stocks:
	2.1 Preferred stocks	0	0		0	0
	2.2 Common stocks	378,112,952	0		378,112,952	378,568,153

3. Mortgage loans on real estate:

	3.1 First liens				1,552,659,512	0	1,552,659,512	1,337,606,615
	3.2 Other than first liens			0	0	0	0
4.	Real estate:
	4.1 Properties occupied by the company (less $	0
	encumbrances)			22,269,612	0	22,269,612	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 ($	30,198,361	), cash equivalents
	($	540,173,348 ) and short-term
	investments ($	0 )		570,371,709	0	570,371,709	313,429,746
6.	Contract loans (including $	0	premium notes)	11,921,434	0	11,921,434	10,784,726
7.	Derivatives				0	0	0	0
8.	Other invested assets			405,121,219	0	405,121,219	363,282,462
9.	Receivables for securities			10,614,461	0	10,614,461	7,128,862
10.	Securities lending reinvested collateral assets		461,237,141	0	461,237,141	340,070,385
11.	Aggregate write-ins for invested assets		2,251,521	0	2,251,521	0
12.	Subtotals, cash and invested assets (Lines 1 to 11)		14,648,653,776	0	14,648,653,776	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		226,019,659	0	226,019,659	158,761,325
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	476,830,907	94,718,437	382,112,469	392,439,091
	15.2 Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including $	0
	earned but unbilled premiums)		7,392,591	0	7,392,591	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	8,763,709	0	8,763,709	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	1,066,961	0	1,066,961	1,354,724
17.	Amounts receivable relating to uninsured plans	127,372	0	127,372	574,613
18.1	Current federal and foreign income tax recoverable and interest thereon	23,815,793	0	23,815,793	98,556,598
18.2	Net deferred tax asset	817,217,682	495,482,569	321,735,113	271,636,944
19.	Guaranty funds receivable or on deposit	36,496,637	0	36,496,637	40,445,672
20.	Electronic data processing equipment and software	8,053,535	2,999,848	5,053,688	5,497,785

21. Furniture and equipment, including health care delivery assets

	($	0 )	17,717,907	17,717,907	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	33,313,173	0	33,313,173	30,548,950
24.	Health care ($	0 ) and other amounts receivable	3,902,742	3,902,742	0	0
25.	Aggregate write-ins for other than invested assets	189,864,230	170,240,274	19,623,956	13,942,008

26. Total assets excluding Separate Accounts, Segregated Accounts and

Protected Cell Accounts (Lines 12 to 25)

16,499,236,675

785,061,777

15,714,174,897

14,656,626,193

27. From Separate Accounts, Segregated Accounts and Protected Cell

	Accounts	0	0	0	0
28.	Total (Lines 26 and 27)	16,499,236,675	785,061,777	15,714,174,897	14,656,626,193
	DETAILS OF WRITE-INS
1101.	Receivable for cash collateral pledged		0		2,251,521		0
2,251,521
1102.
1103.
1198.	Summary of remaining write-ins for Line 11 from overflow page	0	0		0		0
1199.	Totals (Lines 1101 through 1103 plus 1198)(Line 11 above)	2,251,521	0		2,251,521		0
2501.	Prepaid premium tax recoverable	19,621,427	0		19,621,427		8,160,702
2502.	Other assets	134,418,452	134,415,923		2,529		5,781,306
2503.	Leasehold improvements	17,417,061	17,417,061		0		0
2598.	Summary of remaining write-ins for Line 25 from overflow page	18,407,290	18,407,290		0		0
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	189,864,230	170,240,274		19,623,956		13,942,008

2

STATEMENT AS OF SEPTEMBER 30, 2021 OF THE American Family Life Assurance Company of Columbus (Aflac)

LIABILITIES, SURPLUS AND OTHER FUNDS

					1	2
					Current	December 31
					Statement Date	Prior Year
1.	Aggregate reserve for life contracts $	794,910,322 less $	0 included in Line 6.3
	(including $	1,622,260	Modco Reserve)		794,910,322	743,535,083
2.	Aggregate reserve for accident and health contracts (including $	0 Modco Reserve)	8,844,666,251	8,649,602,816
3.	Liability for deposit-type contracts (including $	0 Modco Reserve)	320,567,762	301,360,896

4. Contract claims:

4.1	Life		47,268,125	40,356,925
4.2	Accident and health			1,426,297,336	1,545,349,159
5. Policyholders' dividends/refunds to members $	0 and coupons $	0 due
and unpaid		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 $

32,388,576 accident and health premiums

34,212,115

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 $	86,628,534	assumed and $	130,312
		ceded					86,758,846	80,544,004
	9.4 Interest Maintenance Reserve					51,009,355	45,583,959
10.	Commissions to agents due or accrued-life and annuity contracts $	3,966,799 , accident and health
	$	68,774,052 and deposit-type contract funds $	0		72,740,852	76,471,232
11.	Commissions and expense allowances payable on reinsurance assumed			530,908	532,649
12.	General expenses due or accrued					194,464,434	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			43,753,432	54,201,836
15.1	Current federal and foreign income taxes, including $	(8,080,024)	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			(249,953)	3,018,233
18.	Amounts held for agents' account, including $	3,390,222 agents' credit balances		4,276,224	6,318,372
19.	Remittances and items not allocated					38,857,331	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				163,639,336	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			179,646,889	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				2,338,936	0
	24.09	Payable for securities				15,108,245	7,445,478
	24.10	Payable for securities lending				461,237,141	340,070,385
	24.11 Capital notes $	0 and interest thereon $		0	0	0
25.	Aggregate write-ins for liabilities				87,704,235	88,499,411
26.	Total liabilities excluding Separate Accounts business (Lines 1 to 25)			12,869,738,122	12,568,578,507
27.	From Separate Accounts Statement				0	0
28.	Total liabilities (Lines 26 and 27)				12,869,738,122	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				588,508,552	588,508,552
34.	Aggregate write-ins for special surplus funds			0	0
35.	Unassigned funds (surplus)				2,118,903,184	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)	2,837,411,736	2,081,022,647
38.	Totals of Lines 29, 30 and 37					2,844,436,775	2,088,047,686
39.	Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)				15,714,174,897	14,656,626,193
	DETAILS OF WRITE-INS
2501.	Other liabilities						52,465,708	51,179,233
2502.	Funds held for escheat						24,144,115	26,225,766
2503.	Pension Liability						11,094,412	11,094,412
2598.	Summary of remaining write-ins for Line 25 from overflow page				0	0
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)				87,704,235	88,499,411
3101.
3102.
3103.
3198.	Summary of remaining write-ins for Line 31 from overflow page				0	0
3199.	Totals (Lines 3101 through 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 through 3403 plus 3498)(Line 34 above)				0	0

3

STATEMENT AS OF SEPTEMBER 30, 2021 OF THE American Family Life Assurance Company of Columbus (Aflac)

SUMMARY OF OPERATIONS

		1	2	3
		Current Year	Prior Year	Prior Year Ended
		To Date	To Date	December 31
1.	Premiums and annuity considerations for life and accident and health contracts	3,743,396,465	3,873,545,734	5,134,247,246
2.	Considerations for supplementary contracts with life contingencies	0	0	0
3.	Net investment income	569,490,390	490,795,479	679,209,305
4.	Amortization of Interest Maintenance Reserve (IMR)	2,362,957	4,111,530	5,482,944
5.	Separate Accounts net gain from operations excluding unrealized gains or losses	0	0	0
6.	Commissions and expense allowances on reinsurance ceded	101,476	110,463	145,372
7.	Reserve adjustments on reinsurance ceded	(13,673)	(86,483)	(109,575)

8. Miscellaneous Income:

	8.1 Income from fees associated with investment management, administration and contract
	guarantees from Separate Accounts	0	0	0
	8.2 Charges and fees for deposit-type contracts	0	0	0
	8.3 Aggregate write-ins for miscellaneous income	23,261,352	373,808	(2,512,445)
9.	Totals (Lines 1 to 8.3)	4,338,598,967	4,368,850,529	5,816,462,848
10.	Death benefits	94,252,612	48,154,061	77,345,525
11.	Matured endowments (excluding guaranteed annual pure endowments)	50,226	44,781	48,685
12.	Annuity benefits	0	0	0
13.	Disability benefits and benefits under accident and health contracts	1,302,565,139	1,529,275,187	2,083,639,179
14.	Coupons, guaranteed annual pure endowments and similar benefits	0	0	0
15.	Surrender benefits and withdrawals for life contracts	5,074,473	5,123,984	6,634,312
16.	Group conversions	0	0	0
17.	Interest and adjustments on contract or deposit-type contract funds	1,530,108	2,924,513	3,430,794
18.	Payments on supplementary contracts with life contingencies	0	0	0
19.	Increase in aggregate reserves for life and accident and health contracts	263,238,254
251,901,326	349,157,800
20.	Totals (Lines 10 to 19)	1,666,710,812	1,837,423,852	2,520,256,296

21. Commissions on premiums, annuity considerations, and deposit-type contract funds (direct

	business only)	483,373,632	501,914,416	678,907,577
22.	Commissions and expense allowances on reinsurance assumed	175,364,685	197,776,284	232,778,055
23.	General insurance expenses and fraternal expenses	720,756,629	700,775,791	1,095,916,852
24.	Insurance taxes, licenses and fees, excluding federal income taxes	98,972,592	94,836,657	122,929,574
25.	Increase in loading on deferred and uncollected premiums	(16,868)	977,749	1,197,608
26.	Net transfers to or (from) Separate Accounts net of reinsurance	0	0	0
27.	Aggregate write-ins for deductions	5,252,898	11,567,696	9,675,337
28.	Totals (Lines 20 to 27)	3,150,414,380	3,345,272,445	4,661,661,298

29. Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus

Line 28)	1,188,184,587	1,023,578,084	1,154,801,550
30. Dividends to policyholders and refunds to members	1,977	2,713	3,233

31. Net gain from operations after dividends to policyholders, refunds to members and before federal

income taxes (Line 29 minus Line 30)	1,188,182,610	1,023,575,371	1,154,798,316
32. Federal and foreign income taxes incurred (excluding tax on capital gains)	246,937,887	208,504,346	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)		941,244,723	815,071,025	919,265,666
34.	Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital
	gains tax of $	(8,080,024) (excluding taxes of $	2,070,322
	transferred to the IMR)			21,006,271	(50,352,146)	(47,725,890)
35.	Net income (Line 33 plus Line 34)		962,250,994	764,718,879	871,539,776
		CAPITAL AND SURPLUS ACCOUNT
36.	Capital and surplus, December 31, prior year		2,088,047,686	2,121,532,878	2,121,532,878
37.	Net income (Line 35)			962,250,994	764,718,879	871,539,776
38.	Change in net unrealized capital gains (losses) less capital gains tax of $	0	18,490,445	52,607,845	35,519,242
39.	Change in net unrealized foreign exchange capital gain (loss)		0	0	0
40.	Change in net deferred income tax		(2,737,387)	27,766,555	56,711,851
41.	Change in nonadmitted assets		72,105,037	(43,109,956)	(273,273,935)
42.	Change in liability for reinsurance in unauthorized and certified companies		0	0	0
43.	Change in reserve on account of change in valuation basis, (increase) or decrease	0	0	0
44.	Change in asset valuation reserve		(53,700,486)	22,331,721	5,135,327
45.	Change in treasury stock			0	0	0
46.	Surplus (contributed to) withdrawn from Separate Accounts during period		0	0	0
47.	Other changes in surplus in Separate Accounts Statement		0	0	0
48.	Change in surplus notes			0	130,000,000	130,000,000
49.	Cumulative effect of changes in accounting principles		0	0	0

50. Capital changes:

	50.1	Paid in	0	0	0
	50.2	Transferred from surplus (Stock Dividend)	0	0	0
	50.3	Transferred to surplus	0	0	0
51.	Surplus adjustment:
	51.1	Paid in	0	0	0
	51.2	Transferred to capital (Stock Dividend)	0	0	0
	51.3	Transferred from capital	0	0	0
	51.4	Change in surplus as a result of reinsurance	0	0	0
52.	Dividends to stockholders	(239,998,515)	(224,998,652)	(852,998,500)
53.	Aggregate write-ins for gains and losses in surplus	(21,000)	(21,000)	(6,118,952)
54.	Net change in capital and surplus for the year (Lines 37 through 53)	756,389,088	729,295,392	(33,485,191)
55.	Capital and surplus, as of statement date (Lines 36 + 54)	2,844,436,775	2,850,828,270	2,088,047,686
	DETAILS OF WRITE-INS
08.301. Other income from reinsurance assumed
3,248,211	3,432,791	4,548,546
08.302. Realized foreign exchange gain/(loss)	15,983,188	(6,419,200)	(10,632,348)
08.303. Administrative service fees from affiliates	3,628,834	1,077,212	1,367,349
08.398. Summary of remaining write-ins for Line 8.3 from overflow page	401,119	2,283,005	2,204,008
08.399. Totals (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above)	23,261,352	373,808	(2,512,445)
2701.	Reserve adjustment from reinsurance assumed	5,252,898	11,567,696	9,675,337
2702.
2703.
2798.	Summary of remaining write-ins for Line 27 from overflow page	0	0	0
2799.	Totals (Lines 2701 through 2703 plus 2798)(Line 27 above)	5,252,898	11,567,696	9,675,337
5301.	Other surplus adjustment	(21,000)	(21,000)	(21,000)
5302.	Minimum pension liability	0	0	(6,097,952)
5303.
5398.	Summary of remaining write-ins for Line 53 from overflow page	0	0	0
5399.	Totals (Lines 5301 through 5303 plus 5398)(Line 53 above)	(21,000)	(21,000)	(6,118,952)

4