AFL · 10-Q · 2026Q3 · Full report

FX / Currency Headwinds

AFLAC INC · 2026-11-05 · Importance 36 · Surprise 40

For the three months ended September 30, 2026, Aflac Japan total adjusted revenues declined 0.3% in yen including currency changes and 1.8% excluding currency changes; for the nine months, they fell 3.1% both including and excluding currency changes. Aflac Japan pretax adjusted earnings declined 15.2% in the third quarter including currency changes and 17.9% excluding them, while nine-month earnings increased 13.1% under both measures. Adjusted net investment income increased 3.7% in the quarter including currency changes, but declined 1.6% excluding them; nine-month adjusted net investment income fell 0.9% including currency changes and 5.4% excluding them.

Key facts

• Aflac Incorporated shareholders’ equity included an unrealized foreign currency translation loss of $4.9 billion at September 30, 2026, compared with $4.8 billion at December 31, 2025. source
• Aflac Incorporated adjusted book value excluding foreign currency remeasurement was $20.2 billion, or $40.73 per share, at September 30, 2026, versus $22.1 billion, or $42.66 per share, at December 31, 2025. source
• The average yen/dollar rate was 158.49 in Q3 2026, 6.8% weaker than 147.68 in Q3 2025; the weaker yen reduced adjusted earnings per diluted share by $0.03. source
• The average yen/dollar rate was 158.28 in the first nine months of 2026, 6.5% weaker than 148.03 in the same 2025 period; the weaker yen reduced adjusted earnings per diluted share by $0.10. source
• Aflac Incorporated stated that Japanese yen weakening suppresses reported U.S.-dollar results relative to the comparable prior period, while yen strengthening magnifies reported results. source
• Aflac Incorporated stated that in recent periods the Japanese yen had weakened against the U.S. dollar and that its hedging strategies are intended to mitigate yen fluctuations’ effects on financial position and results of operations. source
• Aflac Japan annualized premiums in force translated into U.S. dollars were $7.4 billion at September 30, 2026, compared with $8.0 billion at September 30, 2025. source