AFL · 10-Q · 2026Q2 · Full report

Interest Rate Environment

AFLAC INC · 2026-08-07 · Importance 43 · Surprise 32

Higher Japanese yen interest rates increased Aflac Japan’s six-month 2026 new-money yield to 4.45%, from 3.85% in the prior-year period. Conversely, Aflac U.S.’s new-money yield declined to 6.30% for the six months ended June 30, 2026, from 6.75%, primarily because of lower rates on fixed-rate assets. Interest-rate movements also contributed to significant unrealized losses, including a $5.102 billion loss on Japan National Government securities as of June 30, 2026.

Key facts

• Aflac U.S. stated the decrease in their new money yield in the three- and six-month periods ended June 30, 2026 was primarily due to lower rates on fixed rate assets. source
• Aflac Japan stated the decrease in the new money yield in the three-month period ended June 30, 2026 was primarily due to higher allocations to lower yielding asset classes, while the increase in the six-month period was primarily due to higher Japanese yen interest rates. source