AFL · 10-Q · 2026Q3 · Full report
Aflac Japan Segment Performance
AFLAC INC · 2026-11-05 · Importance 59 · Surprise 48
Aflac Japan’s third-quarter 2026 benefits-and-claims ratio to total premiums increased to 49.2% from 39.3%, primarily because annual cash flow assumption updates generated lower reserve remeasurement gains. The company said the Japan benefit ratio for full-year 2026 is expected to be slightly below its prior 60%–63% range. Japan’s third-quarter adjusted expense ratio rose to 21.2% of adjusted revenues from 19.8%, reflecting higher operating costs, costs related to the June 2026 Japan Cyber Incident, and lower adjusted revenues. Pretax adjusted profit margin declined in both the three- and nine-month periods, primarily because of the higher benefit ratio; 12-month premium persistency was 92.9% at September 30, 2026, versus 93.3% a year earlier.
Key facts
- Aflac Japan Q3 2026 benefits and claims increased primarily because reserve remeasurement gains were lower, including approximately ¥27 billion related to Q3 2026 annual cash flow assumption updates versus approximately ¥68 billion of assumption-related gains in Q3 2025. source
- Aflac Japan’s first-nine-month 2026 net earned premiums decreased due partly to approximately ¥12 billion from an external reinsurance transaction established in Q1 2026, approximately ¥12 billion from an internal cancer reinsurance transaction with Aflac Re established in Q3 2026, and approximately ¥10 billion from limited-pay products reaching premium paid-up status. source
- Aflac Japan first-nine-month 2026 benefits and claims decrease was partly offset by lower reserve remeasurement gains, including approximately ¥27 billion from Q3 2026 annual cash flow assumption updates versus approximately ¥68 billion of assumption-related gains in Q3 2025. source
- Aflac Japan’s net earned premiums in Q3 2026 decreased by approximately ¥12 billion from an internal cancer reinsurance transaction with Aflac Re established in Q3 2026, approximately ¥4 billion from an external reinsurance transaction established in Q1 2026, and approximately ¥3 billion from limited-pay products reaching premium paid-up status. source
- Aflac Japan net earned premiums included approximately ¥7 billion of deferred-profit-liability remeasurement gains from annual cash flow assumption updates in Q3 2026, compared with approximately ¥8 billion of assumption-related remeasurement losses in Q3 2025. source
- Aflac Japan Q3 2026 benefits and claims increases were partly offset by approximately ¥9 billion related to an internal cancer reinsurance transaction established in Q3 2026 and approximately ¥2 billion related to an external reinsurance transaction established in Q1 2026. source
- Aflac Japan first-nine-month 2026 net earned premiums included approximately ¥7 billion of deferred-profit-liability remeasurement gains from Q3 2026 annual cash flow assumption updates, compared with approximately ¥8 billion of assumption-related losses in Q3 2025. source
- Aflac Japan Q3 2026 adjusted expenses increased primarily due to higher business operating costs, including costs related to the June 2026 Japan Cyber Incident. source