AFL · 8-K · 20260806PR054333

FX / Currency Headwinds

AFLAC INC · 2026-08-06 · Importance 54 · Surprise 40

The average yen/dollar exchange rate weakened 9.3% to 159.45 in the second quarter from 144.60 a year earlier. Currency translation reduced Aflac Japan’s reported second-quarter net earned premiums by 12.7% to $1.537 billion and adjusted revenues by 12.6% to $2.161 billion, despite smaller declines in yen terms. Adjusted earnings per diluted share decreased 1.7% to $1.75 including currency, but increased 1.1% to $1.80 excluding the current-period foreign-currency impact. Shareholders’ equity included a $5.0 billion unrealized foreign-currency translation loss at June 30, 2026, compared with $4.3 billion a year earlier.

Key facts

• Adjusted book value excluding foreign currency remeasurement at June 30, 2026 was $20,704 million, compared with $22,980 million at June 30, 2025 (a 4.1% decrease per share to $41.22 from $42.97). source
• Shareholders’ equity included an unrealized foreign currency translation loss of $5.0 billion at June 30, 2026, compared with an unrealized foreign currency translation loss of $4.3 billion at June 30, 2025. source
• The weaker yen/dollar exchange rate had a negative $0.05 impact on adjusted earnings per share in the quarter. source
• Adjusted earnings per diluted share excluding current period foreign currency impact for the quarter was $1.80 compared with $1.78 a year ago, an increase of 1.1%. source
• The average yen/dollar exchange rate in the second quarter of 2026 was 159.45, which was 9.3% weaker than the average rate of 144.60 in the second quarter of 2025. source
• For the first six months, the average exchange rate was 158.14, or 6.2% weaker than the rate of 148.32 a year ago. source