AFL · 10-Q · 2026Q2 · Full report

Commercial Real Estate Credit Risk

AFLAC INC · 2026-08-07 · Importance 40 · Surprise 42

Aflac’s transitional real estate and commercial mortgage loan portfolios are collateralized by commercial real estate, including office properties, and have been affected by weakness in the commercial real estate market. Certain loans are currently in default on interest or maturity payments, with resolution options including loan continuance, loan sales, foreclosure or deed in lieu of foreclosure. In the six months ended June 30, 2025, the company foreclosed on or accepted deeds in lieu for $257 million of transitional real estate loans and recognized a $10 million net investment loss; no such transactions occurred in the first six months of 2026.

Key facts

• In the six-month period ended June 30, 2025, the Company completed foreclosure or deed in lieu of foreclosure on TREs collateralized with commercial real estate properties with an amortized cost of $257 million and recognized a net loss of $10 million in net investment gains (losses) for that period. source
• The Company did not complete any foreclosure or deed in lieu of foreclosure transactions in the six-month period ended June 30, 2026. source