Aflac Incorporated : 2022 Statutory Financial Results – Q2

QUARTERLY STATEMENT

OF THE

American Family Life Assurance Company of Columbus (Aflac)

TO THE

Insurance Department

OF THE

STATE OF

FOR THE QUARTER ENDED

JUNE 30, 2022

[ ] LIFE, ACCIDENT AND HEALTH

[ ] FRATERNAL BENEFIT SOCIETIES

2022

STATEMENT AS OF JUNE 30, 2022 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	11,810,756,542	0		11,810,756,542	11,362,401,770
2.	Stocks:
	2.1 Preferred stocks	0	0		0	0
	2.2 Common stocks	444,528,487	0		444,528,487	402,220,198

3. Mortgage loans on real estate:

	3.1 First liens					1,757,664,007	0	1,757,664,007	1,692,080,258
	3.2 Other than first liens				0	0	0	0
4.	Real estate:
	4.1 Properties occupied by the company (less $	0
	encumbrances)				20,669,859	0	20,669,859	21,440,712
	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 ($	26,648,704	), cash equivalents
	($	191,573,125	) and short-term
	investments ($	3,124,764 )		221,346,593	0	221,346,593	276,615,078
6.	Contract loans (including $		0	premium notes)	14,404,508	0	14,404,508	12,625,021
7.	Derivatives					488,291	0	488,291	0
8.	Other invested assets				456,441,849	0	456,441,849	430,479,891
9.	Receivables for securities				6,338,135	0	6,338,135	3,479,935
10.	Securities lending reinvested collateral assets		357,069,705	0	357,069,705	407,379,797
11.	Aggregate write-ins for invested assets		42,790,490	0	42,790,490	7,783,647
12.	Subtotals, cash and invested assets (Lines 1 to 11)		15,132,498,466	0	15,132,498,466	14,616,506,307
13.	Title plants less $		0 charged off (for Title insurers
	only)					0	0	0	0
14.	Investment income due and accrued		158,373,158	0	158,373,158	155,269,511
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of collection	413,796,787	50,918,616	362,878,171	386,645,249
	15.2 Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including $	0
	earned but unbilled premiums)		6,491,148	0	6,491,148	7,018,567
	15.3 Accrued retrospective premiums ($	0 ) and
	contracts subject to redetermination ($	0 )	0	0	0	0

16. Reinsurance:

	16.1	Amounts recoverable from reinsurers	5,329,191	0	5,329,191	7,373,314
	16.2	Funds held by or deposited with reinsured companies	0	0	0	0
	16.3	Other amounts receivable under reinsurance contracts	4,080,671	0	4,080,671	1,055,665
17.	Amounts receivable relating to uninsured plans	706,173	0	706,173	981,953
18.1	Current federal and foreign income tax recoverable and interest thereon	67,780,122	0	67,780,122	52,117,342
18.2	Net deferred tax asset	803,113,898	502,732,856	300,381,042	304,416,065
19.	Guaranty funds receivable or on deposit	31,818,930	0	31,818,930	34,740,553
20.	Electronic data processing equipment and software	7,535,848	3,771,487	3,764,361	4,539,507

21. Furniture and equipment, including health care delivery assets

	($	0 )	16,668,474	16,668,474	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	52,239,160	0	52,239,160	35,889,314
24.	Health care ($	0 ) and other amounts receivable	3,757,876	3,757,876	0	0
25.	Aggregate write-ins for other than invested assets	182,671,061	164,719,628	17,951,433	20,061,154

26. Total assets excluding Separate Accounts, Segregated Accounts and

Protected Cell Accounts (Lines 12 to 25)

16,886,860,963

742,568,937

16,144,292,026

15,626,614,501

27. From Separate Accounts, Segregated Accounts and Protected Cell

	Accounts	0	0	0	0
28.	Total (Lines 26 and 27)	16,886,860,963	742,568,937	16,144,292,026	15,626,614,501
	DETAILS OF WRITE-INS
1101.	Receivable for Cash Collateral Pledged		0		42,790,490		7,783,647
42,790,490
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)	42,790,490	0		42,790,490		7,783,647
2501.	Prepaid Premium Tax Recoverable	17,951,433	0		17,951,433		20,061,154
2502.	Other Assets	126,382,468	126,382,468		0		0
2503.	Prepaid Expenses	20,658,012	20,658,012		0		0
2598.	Summary of remaining write-ins for Line 25 from overflow page	17,679,148	17,679,148		0		0
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)	182,671,061	164,719,628		17,951,433		20,061,154

2

STATEMENT AS OF JUNE 30, 2022 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 $	833,886,971 less $	0 included in Line 6.3
	(including $	1,652,489	Modco Reserve)		833,886,971	803,613,158
2.	Aggregate reserve for accident and health contracts (including $	0 Modco Reserve)	8,941,512,559	8,889,136,845
3.	Liability for deposit-type contracts (including $	0 Modco Reserve)	603,143,572	400,904,776

4. Contract claims:

4.1	Life		55,347,491	52,951,669
4.2	Accident and health			1,468,220,957	1,440,679,290
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 $

40,381,430 accident and health premiums

41,335,333

24,931,537

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 $	83,646,457	assumed and $	284,745
		ceded					83,931,202	87,550,922
	9.4 Interest Maintenance Reserve					49,571,744	57,009,169
10.	Commissions to agents due or accrued-life and annuity contracts $	3,813,715 , accident and health
	$	62,734,362 and deposit-type contract funds $	0		66,548,077	69,340,665
11.	Commissions and expense allowances payable on reinsurance assumed			598,511	1,167,043
12.	General expenses due or accrued					164,782,915	224,038,124
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			43,465,792	36,115,426
15.1	Current federal and foreign income taxes, including $	665,966	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			2,785,914	2,498,974
18.	Amounts held for agents' account, including $	4,302,995 agents' credit balances		5,371,691	4,314,374
19.	Remittances and items not allocated					28,506,216	43,953,835
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				197,684,317	177,055,038
	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			193,839,269	184,635,862
	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				41,256,849	7,806,821
	24.09	Payable for securities				3,936,693	3,419,465
	24.10	Payable for securities lending				357,069,705	407,379,797
	24.11 Capital notes $	0 and interest thereon $		0	0	0
25.	Aggregate write-ins for liabilities				68,097,037	81,557,692
26.	Total liabilities excluding Separate Accounts business (Lines 1 to 25)			13,250,892,815	13,000,060,482
27.	From Separate Accounts Statement				0	0
28.	Total liabilities (Lines 26 and 27)				13,250,892,815	13,000,060,482
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)				2,167,865,620	1,901,020,428

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)	2,886,374,172	2,619,528,980
38.	Totals of Lines 29, 30 and 37					2,893,399,211	2,626,554,019
39.	Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)				16,144,292,026	15,626,614,501
	DETAILS OF WRITE-INS
2501.	Other liabilities						37,643,345	46,224,728
2502.	Funds held for escheat						24,963,478	29,842,750
2503.	Pension liability						5,490,214	5,490,214
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)
			68,097,037	81,557,692
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 JUNE 30, 2022 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	2,411,554,151	2,529,417,119	4,936,425,218
2.	Considerations for supplementary contracts with life contingencies	0	0	0
3.	Net investment income	340,805,297	402,164,894	741,587,746
4.	Amortization of Interest Maintenance Reserve (IMR)	1,107,082	1,553,243	3,379,064
5.	Separate Accounts net gain from operations excluding unrealized gains or losses	0	0	0
6.	Commissions and expense allowances on reinsurance ceded	62,910	69,305	138,296
7.	Reserve adjustments on reinsurance ceded	(32,311)	6,140	(26,500)

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	42,959,997	17,840,893	31,669,548
9.	Totals (Lines 1 to 8.3)	2,796,457,126	2,951,051,593	5,713,173,371
10.	Death benefits	67,092,210	65,725,358	139,982,799
11.	Matured endowments (excluding guaranteed annual pure endowments)	2,745	14,747	50,226
12.	Annuity benefits	0	0	0
13.	Disability benefits and benefits under accident and health contracts	951,269,388	841,852,151	1,799,156,029
14.	Coupons, guaranteed annual pure endowments and similar benefits	0	0	0
15.	Surrender benefits and withdrawals for life contracts	3,241,145	3,009,834	6,721,792
16.	Group conversions	0	0	0
17.	Interest and adjustments on contract or deposit-type contract funds	2,019,218	1,003,332	2,137,944
18.	Payments on supplementary contracts with life contingencies	0	0	0
19.	Increase in aggregate reserves for life and accident and health contracts	119,633,169
181,674,231	321,849,923
20.	Totals (Lines 10 to 19)	1,143,257,875	1,093,279,653	2,269,898,712

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

	business only)	317,914,167	324,912,690	647,671,346
22.	Commissions and expense allowances on reinsurance assumed	111,135,216	116,562,660	231,822,903
23.	General insurance expenses and fraternal expenses	455,426,887	473,077,958	1,029,231,714
24.	Insurance taxes, licenses and fees, excluding federal income taxes	65,099,254	66,443,061	121,817,175
25.	Increase in loading on deferred and uncollected premiums	(940,683)	88,886	(804,794)
26.	Net transfers to or (from) Separate Accounts net of reinsurance	0	0	0
27.	Aggregate write-ins for deductions	8,298,921	2,495,858	7,138,147
28.	Totals (Lines 20 to 27)	2,100,191,637	2,076,860,766	4,306,775,203

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

Line 28)	696,265,490	874,190,827	1,406,398,168
30. Dividends to policyholders and refunds to members	855	833	2,540

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

income taxes (Line 29 minus Line 30)	696,264,635	874,189,994	1,406,395,628
32. Federal and foreign income taxes incurred (excluding tax on capital gains)	151,912,613	169,638,009	281,246,423

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)		544,352,022	704,551,985	1,125,149,205
34.	Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital
	gains tax of $	(1,039,844) (excluding taxes of $	23,061
	transferred to the IMR)			2,315,703	7,553,240	20,925,645
35.	Net income (Line 33 plus Line 34)		546,667,724	712,105,225	1,146,074,850
		CAPITAL AND SURPLUS ACCOUNT
36.	Capital and surplus, December 31, prior year		2,626,554,019	2,088,047,686	2,088,047,686
37.	Net income (Line 35)			546,667,724	712,105,225	1,146,074,850
38.	Change in net unrealized capital gains (losses) less capital gains tax of $	(614,796)	9,243,515	(11,185,360)	42,058,755
39.	Change in net unrealized foreign exchange capital gain (loss)		0	0	0
40.	Change in net deferred income tax		6,326,000	3,310,625	(22,605,087)
41.	Change in nonadmitted assets		25,256,902	34,183,629	89,340,870
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		(20,629,279)	(30,992,380)	(67,116,188)
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	0	0
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	(299,998,670)	(149,998,633)	(653,653,184)
53.	Aggregate write-ins for gains and losses in surplus	(21,000)	(21,000)	4,406,317
54.	Net change in capital and surplus for the year (Lines 37 through 53)	266,845,192	557,402,106	538,506,333
55.	Capital and surplus, as of statement date (Lines 36 + 54)	2,893,399,211	2,645,449,792	2,626,554,019
	DETAILS OF WRITE-INS
08.301. Realized Foreign Exchange Gain (Loss)	37,220,306
13,257,671	21,972,962
08.302. Administrative Service Fees from Affiliates	2,838,864	2,462,341	4,690,233
08.303. Other Income from Reinsurance Assumed	2,091,541	2,173,232	4,311,020
08.398. Summary of remaining write-ins for Line 8.3 from overflow page	809,286	(52,351)	695,333
08.399. Totals (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above)	42,959,997	17,840,893	31,669,548
2701.	Reserve Adjustment from Reinsurance Assumed	8,298,921	2,495,858	7,138,147
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)	8,298,921	2,495,858	7,138,147
5301.	Minimum Pension Liability	0	0	4,427,317
5302.	Other Surplus Adjustment	(21,000)	(21,000)	(21,000)
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)	4,406,317

4