AFL · 10-Q · 2026Q2 · Full report
Investment Portfolio Unrealized Losses
AFLAC INC · 2026-08-07 · Importance 31 · Surprise 6 · No source text
Aflac reported $80,695 million of fixed maturity securities at amortized cost and $77,104 million at fair value as of June 30, 2026. The portfolio carried $7,888 million of gross unrealized losses, including a $5,102 million loss on Japan National Government securities with $29,714 million of amortized cost and $24,612 million of fair value. Government and agency securities represented 40.3% of fixed maturity fair value, while other corporate securities represented 29.5%. The company attributed fair-value declines to interest rates, yen-dollar exchange rates, market spreads, and issuer credit quality, while stating that the issuers could continue timely principal and interest payments.
Key facts
- Shareholders’ equity at June 30, 2026 included a net unrealized loss on investment securities and derivatives of $2.8 billion. source
- Total fixed maturity securities amortized cost was $80,695 million with gross unrealized gains $4,297 million and gross unrealized losses $(7,888) million, fair value $77,104 million as of June 30, 2026. source
- The Company’s total investments as of June 30, 2026 were $73,230 million for Aflac Japan, $16,580 million for Aflac U.S., $7,073 million for Corporate and other, totaling $96,883 million. source
- Fixed maturity securities available-for-sale, at fair value as of June 30, 2026 were $42,962 million for Aflac Japan, $12,500 million for Aflac U.S., $7,386 million for Corporate and other, totaling $62,848 million. source
- Fixed maturity securities held-to-maturity, at amortized cost were $15,505 million as of June 30, 2026. source
- Total investment securities amortized cost was $81,620 million and fair value $78,029 million as of June 30, 2026. source
- The 10 largest unrealized loss positions as of June 30, 2026 include Japan National Government with amortized cost $29,714 million, fair value $24,612 million and unrealized loss $(5,102) million. source
- Unrealized gains (losses) on securities and derivatives were $(2,769) million at June 30 and $(1,822) million at December 31 (amounts shown in reconciliation table). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +83.2% | The Company’s total investments as of June 30, 2026 were $73,230 million for Aflac Japan, $16,580 million for Aflac U.S., $7,073 million… |
| assets | positive | realized | +54.0% | Fixed maturity securities available-for-sale, at fair value as of June 30, 2026 were $42,962 million for Aflac Japan, $12,500 million for… |
| assets | positive | realized | +13.3% | Fixed maturity securities held-to-maturity, at amortized cost were $15,505 million as of June 30, 2026. |
| assets | negative | realized | -3.1% | Total fixed maturity securities amortized cost was $80,695 million with gross unrealized gains $4,297 million and gross unrealized losses… |
| assets | negative | realized | -2.4% | Shareholders’ equity at June 30, 2026 included a net unrealized loss on investment securities and derivatives of $2.8 billion. |