AFL · 10-Q · 2026Q3 · Full report

Investment Portfolio Unrealized Losses

AFLAC INC · 2026-11-05 · Importance 25 · Surprise 6

At September 30, 2026, Aflac’s 10 largest unrealized loss positions included a $5.017 billion loss on Japan National Government securities, with $31.351 billion amortized cost and $26.334 billion fair value. The other nine listed loss positions ranged from $41 million to $76 million and included Urban Renaissance Agency, JPMorgan Chase, Berkshire Hathaway, Japan Expressway Holding and Debt, and Prologis. The company attributed fair-value declines generally to interest rates, yen-dollar exchange rates, market-driven spread changes, or issuer credit conditions. Aflac said it believed the listed issuers could continue making timely principal and interest payments.

Key facts

• Aflac's fixed maturity securities at September 30, 2026 had $81.880 billion amortized cost, $2.614 billion gross unrealized gains, $9.250 billion gross unrealized losses, and $75.244 billion fair value. source
• Aflac's largest unrealized loss position at September 30, 2026 was Japan National Government securities, with $31.351 billion amortized cost, $26.334 billion fair value, and a $5.017 billion unrealized loss. source
• Aflac Incorporated’s first-nine-month 2026 net investment losses were $1.2 billion, compared with $1.1 billion in the first nine months of 2025. source
• Aflac Incorporated shareholders’ equity was $29.3 billion, or $59.08 per share, at September 30, 2026, compared with $29.5 billion, or $56.85 per share, at December 31, 2025. source
• At September 30, 2026, Aflac Incorporated shareholders’ equity included a cumulative $12.3 billion increase from discount-rate assumption changes, versus $8.0 billion at December 31, 2025, and a $5.0 billion net unrealized investment-securities and derivatives loss, versus $1.8 billion. source
• Aflac Incorporated adjusted book value was $26.9 billion, or $54.21 per share, at September 30, 2026, compared with $28.0 billion, or $54.06 per share, at December 31, 2025. source
• Aflac's total below-investment-grade investments had $5.387 billion par value, $5.024 billion amortized cost, $4.949 billion fair value, and $75 million in unrealized losses at September 30, 2026. source
• Aflac reported that declines in investment fair values can result from interest-rate changes, yen/dollar exchange-rate changes, market-driven spread changes, or changes in an issuer's credit quality. source