AFL · 8-K · 20260806PR054333
Investment Income and Losses
AFLAC INC · 2026-08-06 · Importance 57 · Surprise 64 · From source text
Second-quarter net investment losses declined to $153 million from $421 million a year earlier, including $238 million of losses from sales and redemptions, $77 million of CECL, and $11 million of impairments. An $87 million gain on equity-security fair values and $86 million of gains on derivatives and foreign-currency activities partially offset those losses. Adjusted net investment income decreased 9.6% to $937 million from $1.036 billion, while first-half adjusted net investment income decreased 5.6% to $1.839 billion. Aflac Japan’s second-quarter adjusted net investment income declined 2.9% in yen to ¥98.3 billion because of reduced call income and lower dollar-denominated floating-rate income.
Key facts
- Net investment losses in the second quarter of 2026 were $153 million, compared with net investment losses of $421 million a year ago. source
- Aflac Japan adjusted net investment income for 2Q26 was ¥98 billion, down 2.9% from ¥101 billion a year ago (¥98 -> $616 million vs $699 million, an 11.9% decrease). source
- Shareholders’ equity included a net unrealized loss on investment securities and derivatives of $2.8 billion at June 30, 2026, compared with a net unrealized loss of $1.8 billion at June 30, 2025. source
- Net investment income for the three months ended June 30, 2026 was $984 million, a 9.0% decrease from $1,081 million in 2025. source
- Adjusted net investment income for the three months ended June 30, 2026 was $937 million, a 9.6% decrease from $1,036 million in 2025. source
- Adjusted net investment income for Aflac U.S. in the quarter was $208 million, a 0.5% increase from $207 million a year ago. source
- Net investment losses in the quarter included net losses from sales and redemptions of $238 million; $77 million of CECL; impairments of $11 million; an $87 million gain from increase in fair value of equity securities; and net gains of $86 million on certain derivatives and foreign currency activities. source
- Amortized hedge income was $19 million in the quarter, compared with $30 million a year ago. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -3.7% | Net investment losses in the second quarter of 2026 were $153 million, compared with net investment losses of $421 million a year ago. |
| net_income | negative | realized | -2.4% | Adjusted net investment income for the three months ended June 30, 2026 was $937 million, a 9.6% decrease from $1,036 million in 2025. |
| net_income | negative | realized | -2.4% | Net investment income for the three months ended June 30, 2026 was $984 million, a 9.0% decrease from $1,081 million in 2025. |
| net_income | negative | realized | -2.0% | Aflac Japan adjusted net investment income for 2Q26 was ¥98 billion, down 2.9% from ¥101 billion a year ago (¥98 -> $616 million vs $699… |
| assets | negative | realized | -0.9% | Shareholders’ equity included a net unrealized loss on investment securities and derivatives of $2.8 billion at June 30, 2026, compared… |