Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 15, 2017 | Jun. 30, 2016 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AFL | ||
Entity Registrant Name | AFLAC INC | ||
Entity Central Index Key | 4,977 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 401,426,860 | ||
Entity Public Float | $ 29,327,044,586 | ||
Maximum | |||
Estimation of Percent of Revenues Within Scope of the Guidance to Total Revenues | 1.00% |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Revenues: | |||||
Net premiums, principally supplemental health insurance | $ 19,225 | $ 17,570 | $ 19,072 | ||
Net investment income | 3,278 | 3,135 | 3,319 | ||
Realized investment gains (losses): | |||||
Other-than-temporary impairment losses realized | (83) | (153) | (31) | ||
Sales and redemptions | 215 | 303 | 215 | ||
Derivative and other gains (losses) | (255) | (10) | 31 | ||
Total realized investment gains (losses) | (123) | 140 | 215 | ||
Other income (loss) | 179 | 27 | 122 | ||
Total revenues | 22,559 | 20,872 | 22,728 | ||
Benefits and expenses: | |||||
Benefits and claims, net | 12,919 | 11,746 | 12,937 | ||
Acquisition and operating expenses: | |||||
Amortization of deferred policy acquisition costs | 1,141 | 1,066 | 1,108 | ||
Insurance commissions | 1,368 | 1,303 | 1,436 | ||
Insurance expenses | 2,452 | 2,214 | 2,261 | ||
Interest expense | 268 | 289 | 317 | ||
Other operating expenses | 344 | [1] | 392 | [1] | 178 |
Total acquisition and operating expenses | 5,573 | 5,264 | 5,300 | ||
Total benefits and expenses | 18,492 | 17,010 | 18,237 | ||
Earnings before income taxes | 4,067 | 3,862 | 4,491 | ||
Income Tax Expense: | |||||
Current | 884 | 1,288 | 1,079 | ||
Deferred | 524 | 41 | 461 | ||
Total income tax expense | 1,408 | 1,329 | 1,540 | ||
Net earnings | $ 2,659 | $ 2,533 | $ 2,951 | ||
Net earnings per share: | |||||
Basic (in dollars per share) | $ 6.46 | $ 5.88 | $ 6.54 | ||
Diluted (in dollars per share) | $ 6.42 | $ 5.85 | $ 6.50 | ||
Weighted-average outstanding common shares used in computing earnings per share (In thousands): | |||||
Basic (in shares) | 411,471 | 430,654 | 451,204 | ||
Diluted (in shares) | 413,921 | 433,172 | 454,000 | ||
Senior Notes due 2039 and 2040 | |||||
Expense on extinguishment of debt | $ 137 | ||||
8.50% senior notes due May 2019 | |||||
Expense on extinguishment of debt | $ 230 | ||||
[1] | Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 2,659 | $ 2,533 | $ 2,951 |
Other comprehensive income (loss) before income taxes: | |||
Unrealized foreign currency translation gains (losses) during period | 283 | 360 | (1,455) |
Unrealized gains (losses) on investment securities: | |||
Unrealized holding gains (losses) on investment securities during period | 2,852 | (2,534) | 5,947 |
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings | (53) | (61) | (54) |
Unrealized gains (losses) on derivatives during period | 3 | 0 | (17) |
Pension liability adjustment during period | (45) | (20) | (76) |
Total other comprehensive income (loss) before income taxes | 3,040 | (2,255) | 4,345 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 1,035 | (901) | 1,803 |
Other comprehensive income (loss), net of income taxes | 2,005 | (1,354) | 2,542 |
Total comprehensive income (loss) | $ 4,664 | $ 1,179 | $ 5,493 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Securities held to maturity, at amortized cost: | ||||
Fixed maturities | $ 33,350 | $ 33,459 | ||
Other investments | 1,450 | [1] | 294 | |
Cash and cash equivalents | 4,859 | 4,350 | ||
Total investments and cash | 116,361 | 105,897 | ||
Receivables | 669 | 705 | ||
Accrued investment income | 754 | 768 | ||
Deferred policy acquisition costs | 8,993 | 8,511 | ||
Property and equipment, at cost less accumulated depreciation | 433 | 427 | ||
Other | [2] | 2,609 | 1,948 | |
Total assets | 129,819 | 118,256 | ||
Policy liabilities: | ||||
Future policy benefits | 76,106 | 69,687 | ||
Unpaid policy claims | 4,045 | 3,802 | ||
Unearned premiums | 6,916 | 7,857 | ||
Other policyholders' funds | 6,659 | 6,285 | ||
Total policy liabilities | 93,726 | 87,631 | ||
Income taxes | 5,387 | 4,340 | ||
Payables for return of cash collateral on loaned securities | 526 | 941 | ||
Notes payable | 5,360 | 4,971 | ||
Other | [3] | 4,338 | 2,665 | |
Commitments and contingent liabilities (Note 15) | ||||
Total liabilities | 109,337 | 100,548 | ||
Shareholders' equity: | ||||
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2016 and 2015; issued 671,249 shares in 2016 and 669,723 shares in 2015 | 67 | 67 | ||
Additional paid-in capital | 1,976 | 1,828 | ||
Retained earnings | 25,981 | 24,007 | ||
Accumulated other comprehensive income (loss): | ||||
Unrealized foreign currency translation gains (losses) | (1,983) | (2,196) | ||
Unrealized gains (losses) on investment securities | 4,805 | 2,986 | ||
Unrealized gains (losses) on derivatives | (24) | (26) | ||
Pension liability adjustment | (168) | (139) | ||
Treasury stock, at average cost | (10,172) | (8,819) | ||
Total shareholders' equity | 20,482 | 17,708 | ||
Total liabilities and shareholders' equity | 129,819 | 118,256 | ||
Investments Other Than Consolidated Variable Interest Entities | ||||
Securities available for sale, at fair value: | ||||
Fixed maturities | 68,778 | 60,795 | ||
Perpetual securities | 1,425 | 1,719 | ||
Equity securities | 265 | 135 | ||
Securities held to maturity, at amortized cost: | ||||
Fixed maturities | 33,350 | 33,459 | ||
Variable Interest Entity, Consolidated | ||||
Securities available for sale, at fair value: | ||||
Fixed maturities | 4,982 | 4,554 | ||
Perpetual securities | 208 | 228 | ||
Equity securities | $ 1,044 | $ 363 | ||
[1] | Includes $819 in 2016 of loan receivables from consolidated variable interest entities | |||
[2] | Includes $127 in 2016 and $102 in 2015 of derivatives from consolidated variable interest entities | |||
[3] | Includes $146 in 2016 and $293 in 2015 of derivatives from consolidated variable interest entities |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Securities held to maturity, fixed maturities, fair value | $ 40,021 | $ 37,520 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 1,900,000 | 1,900,000 |
Common stock, shares issued (in shares) | 671,249 | 669,723 |
Asset derivatives | $ 1,207 | $ 676 |
Liability derivatives | 1,998 | 371 |
Investments Other Than Consolidated Variable Interest Entities | ||
Securities available for sale, fixed maturities, amortized cost | 62,195 | 56,903 |
Securities available for sale, perpetual securities, amortized cost | 1,269 | 1,586 |
Securities available for sale, equity securities, cost | 231 | 117 |
Securities held to maturity, fixed maturities, fair value | 40,021 | 37,520 |
Variable Interest Entity, Consolidated | ||
Securities available for sale, fixed maturities, amortized cost | 4,168 | 3,739 |
Securities available for sale, perpetual securities, amortized cost | 237 | 255 |
Securities available for sale, equity securities, cost | 972 | 363 |
Asset derivatives | 127 | 102 |
Liability derivatives | 146 | $ 293 |
Commercial mortgage and middle market loans [Member] | Variable Interest Entity, Consolidated | ||
Other investments held in unit trust, net of reserves, amortized cost | $ 819 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common stock: | Additional paid-in capital: | Retained earnings: | Accumulated other comprehensive income (loss): | Treasury stock: |
Balance, beginning of period at Dec. 31, 2013 | $ 67 | $ 1,644 | $ 19,885 | $ (563) | $ (6,413) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | 29 | |||||
Share-based compensation | (3) | |||||
Net earnings | $ 2,951 | 2,951 | ||||
Dividends to shareholders ($1.66 per share in 2016, $1.58 per share in 2015 and $1.50 per share in 2014) | (680) | |||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | (1,036) | |||||
Unrealized gains (losses) on investment securities during the period, net of income taxes and reclassification adjustments | 3,637 | |||||
Unrealized gains (losses) on derivatives during period, net of income taxes | (14) | |||||
Pension liability adjustment during period, net of income taxes | (45) | |||||
Purchases of treasury stock | (1,210) | |||||
Treasury stock reissued | 41 | 57 | ||||
Balance, end of period at Dec. 31, 2014 | 18,347 | 67 | 1,711 | 22,156 | 1,979 | (7,566) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | 43 | |||||
Share-based compensation | 36 | |||||
Net earnings | 2,533 | 2,533 | ||||
Dividends to shareholders ($1.66 per share in 2016, $1.58 per share in 2015 and $1.50 per share in 2014) | (682) | |||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | 345 | |||||
Unrealized gains (losses) on investment securities during the period, net of income taxes and reclassification adjustments | (1,686) | |||||
Unrealized gains (losses) on derivatives during period, net of income taxes | 0 | |||||
Pension liability adjustment during period, net of income taxes | (13) | |||||
Purchases of treasury stock | (1,315) | |||||
Treasury stock reissued | 38 | 62 | ||||
Balance, end of period at Dec. 31, 2015 | 17,708 | 67 | 1,828 | 24,007 | 625 | (8,819) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | 46 | |||||
Share-based compensation | 64 | |||||
Net earnings | 2,659 | 2,659 | ||||
Dividends to shareholders ($1.66 per share in 2016, $1.58 per share in 2015 and $1.50 per share in 2014) | (685) | |||||
Unrealized foreign currency translation gains (losses) during period, net of income taxes | 213 | |||||
Unrealized gains (losses) on investment securities during the period, net of income taxes and reclassification adjustments | 1,819 | |||||
Unrealized gains (losses) on derivatives during period, net of income taxes | 2 | |||||
Pension liability adjustment during period, net of income taxes | (29) | |||||
Purchases of treasury stock | (1,422) | |||||
Treasury stock reissued | 38 | 69 | ||||
Balance, end of period at Dec. 31, 2016 | $ 20,482 | $ 67 | $ 1,976 | $ 25,981 | $ 2,630 | $ (10,172) |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Retained earnings: | |||
Dividends to shareholders (in dollars per share) | $ 1.66 | $ 1.58 | $ 1.50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Cash flows from operating activities: | |||||
Net earnings | $ 2,659 | $ 2,533 | $ 2,951 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Change in receivables and advance premiums | 42 | 147 | (7) | ||
Increase in deferred policy acquisition costs | (306) | (241) | (225) | ||
Increase in policy liabilities | 3,331 | 3,524 | 3,614 | ||
Change in income tax liabilities | (93) | (36) | 123 | ||
Realized investment (gains) losses | 123 | (140) | (215) | ||
Other, net | 231 | [1] | 989 | [1] | 309 |
Net cash provided (used) by operating activities | 5,987 | 6,776 | 6,550 | ||
Securities available for sale: | |||||
Fixed maturities sold | 5,157 | 3,224 | 4,178 | ||
Fixed maturities matured or called | 1,096 | 1,132 | 1,001 | ||
Perpetual securities matured or called | 470 | 647 | 203 | ||
Equity securities sold | 350 | 1 | 0 | ||
Securities held to maturity: | |||||
Fixed maturities matured or called | 1,399 | 766 | 8,475 | ||
Costs of investments acquired: | |||||
Available for sale fixed maturities acquired | (10,890) | (6,507) | (10,978) | ||
Available-for-sale equity securities acquired | (1,079) | (454) | (5) | ||
Held to maturity fixed maturities acquired | 0 | 0 | (3,564) | ||
Other investments, net | (1,118) | (70) | 272 | ||
Purchase of subsidiary | 0 | (40) | 0 | ||
Settlement of derivatives, net | 1,252 | (2,119) | (636) | ||
Cash received (pledged or returned) as collateral, net | (416) | (1,391) | (3,217) | ||
Other, net | (76) | (86) | 30 | ||
Net cash provided (used) by investing activities | (3,855) | (4,897) | (4,241) | ||
Cash flows from financing activities: | |||||
Purchases of treasury stock | (1,422) | (1,315) | (1,210) | ||
Proceeds from borrowings | 986 | 998 | 750 | ||
Principal payments under debt obligations | (610) | (1,272) | (335) | ||
Dividends paid to shareholders | (658) | (656) | (654) | ||
Change in investment-type contracts, net | 159 | 256 | 1,253 | ||
Treasury stock reissued | 46 | 36 | 33 | ||
Other, net | (120) | [1] | (234) | [1] | 16 |
Net cash provided (used) by financing activities | (1,619) | (2,187) | (147) | ||
Effect of exchange rate changes on cash and cash equivalents | (4) | 0 | (47) | ||
Net change in cash and cash equivalents | 509 | (308) | 2,115 | ||
Cash and cash equivalents, beginning of period | 4,350 | 4,658 | 2,543 | ||
Cash and cash equivalents, end of period | 4,859 | 4,350 | 4,658 | ||
Supplemental disclosures of cash flow information: | |||||
Income taxes paid | 1,526 | 996 | 1,416 | ||
Interest paid | 211 | 236 | 241 | ||
Noncash interest | 57 | 53 | 76 | ||
Impairment losses included in realized investment losses | 83 | 153 | 31 | ||
Noncash financing activities: | |||||
Capitalized lease obligations | 1 | 6 | 9 | ||
Associate stock bonus | |||||
Noncash financing activities: | |||||
Treasury stock issued | 30 | 35 | 35 | ||
Shareholder dividend reinvestment | |||||
Noncash financing activities: | |||||
Treasury stock issued | 27 | 26 | 26 | ||
Share-based compensation grants | |||||
Noncash financing activities: | |||||
Treasury stock issued | 4 | 3 | $ 4 | ||
Senior Notes due 2039 and 2040 | |||||
Expense on extinguishment of debt | $ 137 | ||||
8.50% senior notes due May 2019 | |||||
Expense on extinguishment of debt | $ 230 | ||||
[1] | Operating activities excludes and financing activities includes a cash outflow of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 71% of the Company's total revenues in 2016 , compared with 70% in 2015 and 72% in 2014 . The percentage of the Company's total assets attributable to Aflac Japan was 83% at both December 31, 2016 and 2015 . Basis of Presentation We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification TM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates when recording transactions resulting from business operations based on currently available information. The most significant items on our balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments, deferred policy acquisition costs, liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, we believe the amounts provided are adequate. The consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated. Significant Accounting Policies Translation of Foreign Currencies: The functional currency of Aflac Japan's insurance operations is the Japanese yen. We translate our yen-denominated financial statement accounts into U.S. dollars as follows. Assets and liabilities are translated at end-of-period exchange rates. Realized gains and losses on security transactions are translated at the exchange rate on the trade date of each transaction. Other revenues, expenses and cash flows are translated using average exchange rates for the period. The resulting currency translation adjustments are reported in accumulated other comprehensive income. We include in earnings the realized currency exchange gains and losses resulting from foreign currency transactions. We have designated a majority of the Parent Company's yen-denominated liabilities (notes payable and yen-denominated loans) as non-derivative hedges and designated foreign currency forwards and options as derivative hedges of the foreign currency exposure of our investment in Aflac Japan. Outstanding principal and related accrued interest on these Parent Company liabilities and the fair value of these derivatives are translated into U.S. dollars at end-of-period exchange rates. Currency translation adjustments and changes in the fair value of these derivatives are recorded as unrealized foreign currency translation gains (losses) in other comprehensive income and are included in accumulated other comprehensive income. Insurance Revenue and Expense Recognition: The supplemental health and life insurance policies we issue are classified as long-duration contracts. The contract provisions generally cannot be changed or canceled during the contract period; however, we may adjust premiums for supplemental health policies issued in the United States within prescribed guidelines and with the approval of state insurance regulatory authorities. Insurance premiums for most of the Company's health and life policies, including cancer, accident, hospital, critical illness, dental, vision, term life, whole life, long-term care and disability, are recognized as revenue over the premium-paying periods of the contracts when due from policyholders. When revenues are reported, the related amounts of benefits and expenses are charged against such revenues, so that profits are recognized in proportion to premium revenues during the period the policies are expected to remain in force. This association is accomplished by means of annual additions to the liability for future policy benefits and the deferral and subsequent amortization of policy acquisition costs. Premiums from the Company's products with limited-pay features, including term life, whole life, WAYS, and child endowment, are collected over a significantly shorter period than the period over which benefits are provided. Premiums for these products are recognized as revenue over the premium-paying periods of the contracts when due from policyholders. Any gross premium in excess of the net premium is deferred and recorded in earnings, such that profits are recognized in a constant relationship with insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net premium method. At the policyholder's option, customers can also pay discounted advanced premiums for certain of our products. Advanced premiums are deferred and recognized when due from policyholders over the regularly scheduled premium payment period. The calculation of deferred policy acquisition costs (DAC) and the liability for future policy benefits requires the use of estimates based on sound actuarial valuation techniques. For new policy issues, we review our actuarial assumptions and deferrable acquisition costs each year and revise them when necessary to more closely reflect recent experience and studies of actual acquisition costs. For policies in force, we evaluate DAC by major product groupings to determine that they are recoverable from future revenues, and any amounts determined not to be recoverable are charged against net earnings. We have not had any material charges to earnings for DAC that was determined not to be recoverable in any of the years presented in this Form 10-K. Advertising expense is reported as incurred in insurance expenses in the consolidated statements of earnings. Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, money market instruments and other debt instruments with a maturity of 90 days or less when purchased. Investments: Our debt securities consist of fixed-maturity securities, which are classified as either held to maturity or available for sale. Securities classified as held to maturity are securities that we have the ability and intent to hold to maturity or redemption and are carried at amortized cost. All other fixed-maturity debt securities, our perpetual securities and our equity securities are classified as available for sale and are carried at fair value. If the fair value is higher than the amortized cost for debt and perpetual securities, or the purchase cost for equity securities, the excess is an unrealized gain, and if lower than cost, the difference is an unrealized loss. The net unrealized gains and losses on securities available for sale, plus the unamortized unrealized gains and losses on debt securities transferred to the held-to-maturity portfolio, less related deferred income taxes, are recorded through other comprehensive income and included in accumulated other comprehensive income. Amortized cost of debt and perpetual securities is based on our purchase price adjusted for accrual of discount, or amortization of premium, and recognition of impairment charges, if any. The amortized cost of debt and perpetual securities we purchase at a discount or premium will equal the face or par value at maturity or the call date, if applicable. Interest is reported as income when earned and is adjusted for amortization of any premium or discount. We have investments in variable interest entities (VIEs). Criteria for evaluating VIEs for consolidation focuses on identifying which enterprise has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. We are the primary beneficiary of certain VIEs, and therefore consolidate these entities in our financial statements. While the VIEs generally operate within a defined set of documents, there are certain powers that are retained by us that are considered significant in our conclusion that we are the primary beneficiary. These powers vary by structure but generally include the initial selection of the underlying collateral or, for collateralized debt obligations (CDOs), the reference credits to include in the structure; the ability to obtain the underlying collateral in the event of default; and the ability to appoint or dismiss key parties in the structure. In particular, our powers surrounding the underlying collateral were considered to be the most significant powers since those most significantly impact the economics of the VIE. We have no obligation to provide any continuing financial support to any of the entities in which we are the primary beneficiary. Our maximum loss is limited to our original investment. Neither we nor any of our creditors have the ability to obtain the underlying collateral, nor do we have control over the instruments in the VIEs, unless there is an event of default. For those entities where we are the primary beneficiary, the assets consolidated are fixed-maturity securities, perpetual securities, equity securities, and derivative instruments; collateral consisting of these asset classes is reported separately with the caption "- consolidated variable interest entities" on our balance sheet. For the mortgage- and asset-backed securities held in our fixed maturities portfolio, we recognize income using a constant effective yield, which is based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in mortgage- and asset-backed securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition. This adjustment is reflected in net investment income. We use the specific identification method to determine the gain or loss from securities transactions and report the realized gain or loss in the consolidated statements of earnings. Securities transactions are accounted for based on values as of the trade date of the transaction. An investment in a fixed maturity, perpetual security or equity security is impaired if the fair value falls below book value. We regularly review our entire investment portfolio for declines in value. Our fixed maturities and investment-grade perpetual securities investments are evaluated for other-than-temporary impairment using our debt impairment model. Our debt impairment model focuses on the ultimate collection of the cash flows from our investments and whether we have the intent to sell or if it is more likely than not we would be required to sell the security prior to recovery of its amortized cost. The determination of the amount of impairments under this model is based upon our periodic evaluation and assessment of known and inherent risks associated with the respective securities. Such evaluations and assessments are revised as conditions change and new information becomes available. When determining our intention to sell a security prior to recovery of its fair value to amortized cost, we evaluate facts and circumstances such as, but not limited to, future cash flow needs, decisions to reposition our security portfolio, and risk profile of individual investment holdings. We perform ongoing analyses of our liquidity needs, which includes cash flow testing of our policy liabilities, debt maturities, projected dividend payments and other cash flow and liquidity needs. Our cash flow testing includes extensive duration analysis of our investment portfolio and policy liabilities. Based on our analyses, we have concluded that we have sufficient excess cash flows to meet our liquidity needs without selling any of our investments prior to their maturity. The determination of whether an impairment in value of our debt securities is other than temporary is based largely on our evaluation of the issuer ' s creditworthiness. We must apply considerable judgment in determining the likelihood of the security recovering in value while we own it. Factors that may influence this include the overall level of interest rates, credit spreads, the credit quality of the underlying issuer, and other factors. This process requires consideration of risks which can be controlled to a certain extent, such as credit risk, and risks which cannot be controlled, such as interest rate risk and foreign currency risk. If, after monitoring and analyses, management believes that fair value will not recover to amortized cost prior to the disposal of the security, we recognize an other-than-temporary impairment of the security. Once a security is considered to be other-than-temporarily impaired, the impairment loss is separated into two separate components: the portion of the impairment related to credit and the portion of the impairment related to factors other than credit. We recognize a charge to earnings for the credit-related portion of other-than-temporary impairments. Impairments related to factors other than credit are charged to earnings in the event we intend to sell the security prior to the recovery of its amortized cost or if it is more likely than not that we would be required to dispose of the security prior to recovery of its amortized cost; otherwise, non-credit-related other-than-temporary impairments are charged to other comprehensive income. Our investments in perpetual securities that are rated below investment grade and equity securities are evaluated for other-than-temporary impairment under our equity impairment model. Our equity impairment model focuses on the severity of a security's decline in fair value coupled with the length of time the fair value of the security has been below amortized cost and the financial condition and near-term prospects of the issuer. For equity securities that have declines in value that are deemed to be temporary, we make an assertion as to our ability and intent to retain the security until recovery. Once identified, these equity securities are restricted from trading unless authorized based upon significant events that could not have been foreseen at the time we asserted our ability and intent to retain the security until recovery. If management believes that the equity security will not recover prior to the disposal of the security, we recognize an other-than-temporary impairment of the security. Once an equity security is considered to be other-than-temporarily impaired, its fair value on that date becomes the new cost basis and the impairment loss is recognized in earnings. We lend fixed-maturity securities to financial institutions in short-term security lending transactions. These securities continue to be carried as investment assets on our balance sheet during the terms of the loans and are not reported as sales. We receive cash or other securities as collateral for such loans. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral. Other investments include policy loans, middle market loans, commercial mortgage loans, and other short-term investments with maturities of one year or less, but greater than 90 days, at the time of purchase. We invest in middle market loans through participation rights, and commercial mortgage loans that are accounted for as loan receivables and recorded at amortized cost on the acquisition date. Since we have the intent and ability to hold these loan receivables for the foreseeable future or until they mature, they are considered held for investment and are carried at adjusted amortized cost in the other investments line on our consolidated balance sheets. The adjusted amortized cost of the loan receivables reflects allowances for expected incurred losses estimated based on past events and current economic conditions as of each reporting date. Other short-term investments are stated at amortized cost, which approximates estimated fair value. Derivatives and Hedging: Freestanding derivative instruments are reported in the consolidated balance sheet at fair value and are reported in other assets and other liabilities, with changes in value reported in earnings and/or other comprehensive income. These freestanding derivatives are interest rate swaps, foreign currency swaps, credit default swaps (CDSs), foreign currency forwards, foreign currency options, and options on interest rate swaps (or interest rate swaptions). Interest rate and foreign currency swaps are used within VIEs to hedge the risk arising from interest rate and currency exchange risk, while the CDSs are used to increase the yield and improve the diversification of the portfolio. Foreign currency forwards and options are used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio. Foreign currency forwards and options are used to hedge certain portions of forecasted cash flows denominated in yen. Interest rate swaps are used to hedge the variability of interest cash flows associated with our variable interest rate notes. Cross-currency interest rate swaps, also referred to as foreign currency swaps, are used to economically convert certain U.S. dollar-denominated note obligations into yen-denominated principal and interest obligations. Interest rate swaptions have been used to hedge interest rate risk for certain U.S. dollar-denominated available-for-sale securities. We do not use derivatives for trading purposes, nor do we engage in leveraged derivative transactions. From time to time, we purchase certain investments that contain an embedded derivative. We assess whether this embedded derivative is clearly and closely related to the asset that serves as its host contract. If we deem that the embedded derivative's terms are not clearly and closely related to the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the derivative is separated from that contract, held at fair value and reported with the host instrument in the consolidated balance sheet, with changes in fair value reported in earnings. If we have elected the fair value option, the embedded derivative is not bifurcated, and the entire investment is held at fair value with changes in fair value reported in earnings. For those relationships where we seek hedge accounting, we formally document all relationships between hedging instruments and hedged items, as well as our risk-management objectives and strategies for undertaking various hedge transactions. This process includes linking derivatives and non-derivative financial instruments that are designated as hedges to specific assets or liabilities on the balance sheet. We also assess, both at inception and on an ongoing basis, whether the derivatives and non-derivative financial instruments used in hedging activities are highly effective in offsetting changes in fair values or cash flows of the hedged items. The assessment of hedge effectiveness determines the accounting treatment of noncash changes in fair value. Changes in the fair value of any of our derivatives that are designated and qualify as cash flow hedges are recorded in other comprehensive income as long as they are deemed effective. Any hedge ineffectiveness is recorded immediately in current period earnings within derivative and other gains (losses). Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of earnings in which the cash flows of the hedged item are recorded. Changes in the estimated fair value of derivative instruments that are designated and qualify as fair value hedges, including amounts measured as ineffectiveness, and changes in the estimated fair value of the hedged item related to the designated risk being hedged, are reported in current earnings within derivative and other gains (losses). We have designated the majority of the Parent Company's yen-denominated liabilities (notes payable and yen-denominated loans) as non-derivative hedges and designated certain derivatives as hedges of the foreign currency exposure to our investment in Aflac Japan. At the beginning of each quarter, we make our net investment hedge designation. If the total of the designated Parent Company non-derivative and derivatives notional is equal to or less than our net investment in Aflac Japan, the hedge is deemed to be effective, and the exchange effect on the yen-denominated liabilities and the change in estimated fair value of the derivatives are reported in the unrealized foreign currency component of other comprehensive income. Should these designated net investment hedge positions exceed our net investment in Aflac Japan, the foreign exchange effect on the portion that exceeds our investment in Aflac Japan would be recognized in current earnings within derivative and other gains (losses). Derivatives that are not designated as hedges are carried at fair value with all changes in fair value recorded in current period earnings within derivative and other gains (losses). We include the fair value of all freestanding derivatives in either other assets or other liabilities on the balance sheet. We receive and pledge cash or other securities as collateral on open derivative positions. Cash received as collateral is reported as an asset with a corresponding liability for the return of the collateral. Cash pledged as collateral is recorded as a reduction to cash, and a corresponding receivable is recognized for the return of the cash collateral. We generally can repledge or resell collateral obtained by us, although we do not typically exercise such rights. Securities received as collateral are not recognized unless we were to exercise our right to sell that collateral or exercise remedies on that collateral upon a counterparty default. Securities that we have pledged as collateral continue to be carried as investment assets on our balance sheet. Freestanding derivatives are carried at estimated fair value in our consolidated balance sheets either as other assets or as other liabilities. See Note 5 for a discussion on how we determine the fair value of our derivatives. Accruals on derivatives are typically recorded in accrued investment income or within other liabilities in the consolidated balance sheets. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are generally reported within derivative and other gains(losses), which is a component of realized investment gains (losses). The fluctuations in estimated fair value of derivatives that have not been designated for hedge accounting can result in volatility in net earnings. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. At the inception of the hedging relationship for hedges we elect to designate for hedge accounting treatment, we formally document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking each hedge transaction. We document the designation of each hedge as either (i) a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability or the hedge of a forecasted transaction ("cash flow hedge"); (ii) a hedge of the estimated fair value of a recognized asset or liability ("fair value hedge"); or (iii) a hedge of a net investment in a foreign operation. The documentation process includes linking derivatives and nonderivatives that are designated as hedges to specific assets or groups of assets or liabilities on the statement of financial position or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. At the hedge's inception and on an ongoing quarterly basis, we also formally assess whether the derivatives that are used in hedging transactions have been, and are expected to continue to be, highly effective in offsetting their designated risk. Hedge effectiveness is assessed using qualitative and quantitative methods. For assessing hedge effectiveness of cash flow hedges, qualitative methods may include the comparison of critical terms of the derivative to the hedged item, and quantitative methods may include regression or other statistical analysis of changes in cash flows associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships on our VIE cash flow hedges is measured each reporting period using the “Hypothetical Derivative Method.” For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current earnings within derivative and other gains (losses). All components of each derivative's gain or loss are included in the assessment of hedge effectiveness. For assessing hedge effectiveness of fair value hedges, qualitative methods may include the comparison of critical terms of the derivative to the hedged item, and quantitative methods may include regression or other statistical analysis of changes in fair value associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships is measured each reporting period using the dollar offset method. For derivative instruments that are designated and qualify as fair value hedges, changes in the estimated fair value of the derivative, including amounts measured as ineffectiveness, and changes in the estimated fair value of the hedged item related to the designated risk being hedged, are reported in current earnings within derivative and other gains (losses). When assessing the effectiveness of our fair value hedges, we exclude the changes in fair value related to the difference between the spot and the forward rate on our foreign currency forwards and the time value of options. For the hedge of our net investment in Aflac Japan, we have designated Parent Company yen-denominated liabilities as non-derivative hedging instruments and have designated certain foreign currency forwards and options as derivative hedging instruments. We make our net investment hedge designation at the beginning of each quarter. For assessing hedge effectiveness of net investment hedges, if the total of the designated Parent Company non-derivative and derivatives notional is equal to or less than our net investment in Aflac Japan, the hedge is deemed to be effective. If the hedge is effective, the related exchange effect on the yen-denominated liabilities is reported in the unrealized foreign currency component of other comprehensive income. For derivatives designated as net investment hedges, Aflac follows the forward-rate method. According to that method, all changes in fair value, including changes related to the forward-rate component of foreign currency forward contracts and the time value of foreign currency options, are reported in the unrealized foreign currency component of other comprehensive income. Should these designated net investment hedge positions exceed our net investment in Aflac Japan, the foreign exchange effect on the portion that exceeds our investment in Aflac Japan would be recognized in current earnings within derivative and other gains (losses). We discontinue hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated cash flows or fair value of a hedged item; (2) the derivative is de-designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. When hedge accounting is discontinued on a cash flow hedge or fair value hedge, the derivative is carried in the consolidated balance sheets at its estimated fair value, with changes in estimated fair value recognized in current period earnings. For discontinued cash flow hedges, including those where the derivative is sold, terminated or exercised, amounts previously deferred in other comprehensive income (loss) are reclassified into earnings when earnings are impacted by the cash flow of the hedged item. Deferred Policy Acquisition Costs: Certain direct and incremental costs of acquiring new business are deferred and amortized with interest over the premium payment periods in proportion to the ratio of annual premium income to total anticipated premium income. Anticipated premium income is estimated by using the same mortality, persistency and interest assumptions used in computing liabilities for future policy benefits. In this manner, the related acquisition expenses are matched with revenues. Deferred costs include the excess of current-year commissions over ultimate renewal-year commissions and certain incremental direct policy issue, underwriting and sales expenses. All of these incremental costs are directly related to successful policy acquisition. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. The Company performs a two-stage analysis of the internal replacements to determine if the modification is substantive to the base policy. The stages of evaluation are as follows: 1) determine if the modification is integrated with the base policy, and 2) if it is integrated, determine if the resulting contract is substantially changed. For internal replacement transactions where the resulting contract is substantially unchanged, the policy is accounted for as a continuation of the replaced contract. Unamortized deferred acquisition costs from the original policy continue to be amortized over the expected life of the new policy, and the costs of replacing the policy are accounted for as policy maintenance costs and expensed as incurred. Examples include conversions of same age bands, certain family coverage changes, pricing era changes (decrease), and ordinary life becomes reduced paid-up and certain reinstatements. An internal replacement transaction that results in a policy that is substantially changed is accounted for as an extinguishment of the original policy and the issuance of a new policy. Unamortized deferred acquisition costs on the original policy are immediately expensed, and the costs of acquiring the new policy are capitalized and amortized in accordance with our accounting policies for deferred acquisition costs. Further, the policy reserves are evaluated based on the new |
BUSINESS SEGMENT AND FOREIGN IN
BUSINESS SEGMENT AND FOREIGN INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT AND FOREIGN INFORMATION The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. Operating business segments that are not individually reportable and business activities, including reinsurance retrocession activities, not included in Aflac Japan or Aflac U.S. are included in the "Other business segments" category. We do not allocate corporate overhead expenses to business segments. Consistent with U.S. GAAP accounting guidance for segment reporting, we evaluate and manage our business segments using a financial performance measure called pretax operating earnings. Our definition of operating earnings includes interest cash flows associated with notes payable and excludes the following items from net earnings on an after-tax basis: realized investment gains/losses (securities transactions, impairments, and the impact of derivative and hedging activities), nonrecurring items and other non-operating income (loss). We then exclude income taxes related to operations to arrive at pretax operating earnings. Information regarding operations by segment for the years ended December 31 follows: (In millions) 2016 2015 2014 Revenues: Aflac Japan: Net earned premiums Cancer $ 5,639 $ 4,933 $ 5,596 Medical and other health 3,429 3,092 3,770 Life insurance 4,469 4,021 4,495 Net investment income 2,554 2,436 2,662 Other income 40 31 32 Total Aflac Japan 16,131 14,513 16,555 Aflac U.S.: Net earned premiums: Accident/disability 2,469 2,391 2,303 Cancer 1,299 1,293 1,279 Other health 1,415 1,395 1,371 Life insurance 271 268 258 Net investment income 703 678 645 Other income 10 8 3 Total Aflac U.S. 6,167 6,033 5,859 Other business segments 275 225 43 Total business segment revenues 22,573 20,771 22,457 Realized investment gains (losses) (1) (208 ) 55 171 Corporate 284 282 281 Intercompany eliminations (199 ) (201 ) (248 ) Other non-operating income (loss) 109 (35 ) (2) 67 Total revenues $ 22,559 $ 20,872 $ 22,728 (1) Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations (2) Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. The loss was offset by derivative gains included in realized investment gains (losses). (In millions) 2016 2015 2014 Pretax earnings: Aflac Japan $ 3,334 $ 3,175 $ 3,458 Aflac U.S. 1,208 1,101 1,073 Other business segments 18 14 (2 ) Total business segment pretax operating earnings 4,560 4,290 4,529 Interest expense, noninsurance operations (128 ) (146 ) (198 ) Corporate and eliminations (129 ) (71 ) (78 ) Pretax operating earnings 4,303 4,073 4,253 Realized investment gains (losses) (1) (208 ) 55 171 Other non-operating income (loss) (28 ) (3) (266 ) (2),(3) 67 Total earnings before income taxes $ 4,067 $ 3,862 $ 4,491 Income taxes applicable to pretax operating earnings $ 1,491 $ 1,403 $ 1,456 Effect of foreign currency translation on after-tax operating 141 (198 ) (117 ) (1) Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations (2) Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. This loss was offset by derivative gains included in realized investment gains (losses). (3) Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt Assets as of December 31 were as follows: (In millions) 2016 2015 2014 Assets: Aflac Japan $ 107,858 $ 97,646 $ 98,525 Aflac U.S. 19,453 18,537 18,383 Other business segments 270 188 128 Total business segment assets 127,581 116,371 117,036 Corporate 26,476 23,375 24,596 Intercompany eliminations (24,238 ) (21,490 ) (21,905 ) Total assets $ 129,819 $ 118,256 $ 119,727 Prior year amounts have been adjusted for the adoption of the accounting guidance on January 1, 2016 related to debt issuance costs. Yen-Translation Effects: The following table shows the yen/dollar exchange rates used for or during the periods ended December 31 . Exchange effects were calculated using the same yen/dollar exchange rate for the current year as for each respective prior year. 2016 2015 2014 Statements of Earnings: Weighted-average yen/dollar exchange rate 108.70 120.99 105.46 Yen percent strengthening (weakening) 11.3 % (12.8 )% (7.5 )% Exchange effect on pretax operating earnings (in millions) $ 218 $ (288 ) $ (180 ) 2016 2015 Balance Sheets: Yen/dollar exchange rate at December 31 116.49 120.61 Yen percent strengthening (weakening) 3.54 % (.05 )% Exchange effect on total assets (in millions) $ 2,820 $ (36 ) Exchange effect on total liabilities (in millions) 3,109 (41 ) Transfers of funds from Aflac Japan: Aflac Japan makes payments to the Parent Company for management fees and to Aflac U.S. for allocated expenses and profit repatriations. Information on transfers for each of the years ended December 31 is shown below. See Note 13 for information concerning restrictions on transfers from Aflac Japan. (In millions) 2016 2015 2014 Management fees $ 79 $ 53 $ 39 Allocated expenses 106 101 71 Profit repatriation 1,286 2,139 1,704 Total transfers from Aflac Japan $ 1,471 $ 2,293 $ 1,814 Property and Equipment: The costs of buildings, furniture and equipment are depreciated principally on a straight-line basis over their estimated useful lives (maximum of 50 years for buildings and 20 years for furniture and equipment). Expenditures for maintenance and repairs are expensed as incurred; expenditures for betterments are capitalized and depreciated. Classes of property and equipment as of December 31 were as follows: (In millions) 2016 2015 Property and equipment: Land $ 166 $ 166 Buildings 421 400 Equipment and furniture 355 329 Total property and equipment 942 895 Less accumulated depreciation 509 468 Net property and equipment $ 433 $ 427 Receivables: Receivables consist primarily of monthly insurance premiums due from individual policyholders or their employers for payroll deduction of premiums, net of an allowance for doubtful accounts. At December 31, 2016 , $207 million , or 30.9% of total receivables, were related to Aflac Japan's operations, compared with $257 million , or 36.4% , at December 31, 2015 . |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS Net Investment Income The components of net investment income for the years ended December 31 were as follows: (In millions) 2016 2015 2014 Fixed-maturity securities $ 3,214 $ 3,094 $ 3,249 Perpetual securities 94 114 141 Equity securities 35 3 1 Other investments 31 15 6 Short-term investments and cash equivalents 11 4 2 Gross investment income 3,385 3,230 3,399 Less investment expenses 107 95 80 Net investment income $ 3,278 $ 3,135 $ 3,319 Investment Holdings The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments at December 31 are shown in the following tables. 2016 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value: Fixed maturities: Yen-denominated: Japan government and agencies $ 22,857 $ 3,359 $ 160 $ 26,056 Municipalities 246 29 8 267 Mortgage- and asset-backed securities 1,096 33 8 1,121 Public utilities 1,533 318 3 1,848 Sovereign and supranational 862 186 5 1,043 Banks/financial institutions 2,673 403 74 3,002 Other corporate 3,192 623 3 3,812 Total yen-denominated 32,459 4,951 261 37,149 Dollar-denominated: U.S. government and agencies 148 10 0 158 Municipalities 894 142 8 1,028 Mortgage- and asset-backed securities 196 20 0 216 Public utilities 5,205 690 60 5,835 Sovereign and supranational 335 91 0 426 Banks/financial institutions 2,570 507 16 3,061 Other corporate 24,556 2,021 690 25,887 Total dollar-denominated 33,904 3,481 774 36,611 Total fixed maturities 66,363 8,432 1,035 73,760 Perpetual securities: Yen-denominated: Banks/financial institutions 1,266 128 49 1,345 Other corporate 189 24 0 213 Dollar-denominated: Banks/financial institutions 51 24 0 75 Total perpetual securities 1,506 176 49 1,633 Equity securities: Yen-denominated 624 83 2 705 Dollar-denominated 579 31 6 604 Total equity securities 1,203 114 8 1,309 Total securities available for sale $ 69,072 $ 8,722 $ 1,092 $ 76,702 2016 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturities: Yen-denominated: Japan government and agencies $ 20,702 $ 5,338 $ 0 $ 26,040 Municipalities 350 107 0 457 Mortgage- and asset-backed securities 30 2 0 32 Public utilities 3,201 358 23 3,536 Sovereign and supranational 2,602 283 8 2,877 Banks/financial institutions 3,731 195 26 3,900 Other corporate 2,734 452 7 3,179 Total yen-denominated 33,350 6,735 64 40,021 Total securities held to maturity $ 33,350 $ 6,735 $ 64 $ 40,021 2015 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value: Fixed maturities: Yen-denominated: Japan government and agencies $ 17,293 $ 1,862 $ 0 $ 19,155 Municipalities 128 9 0 137 Mortgage- and asset-backed securities 322 33 0 355 Public utilities 1,400 210 10 1,600 Sovereign and supranational 791 180 0 971 Banks/financial institutions 2,321 325 105 2,541 Other corporate 3,337 448 33 3,752 Total yen-denominated 25,592 3,067 148 28,511 Dollar-denominated: U.S. government and agencies 110 11 0 121 Municipalities 926 151 6 1,071 Mortgage- and asset-backed securities 200 27 0 227 Public utilities 5,464 636 221 5,879 Sovereign and supranational 331 105 0 436 Banks/financial institutions 2,865 634 21 3,478 Other corporate 25,154 1,774 1,302 25,626 Total dollar-denominated 35,050 3,338 1,550 36,838 Total fixed maturities 60,642 6,405 1,698 65,349 Perpetual securities: Yen-denominated: Banks/financial institutions 1,581 143 93 1,631 Other corporate 183 22 0 205 Dollar-denominated: Banks/financial institutions 77 35 1 111 Total perpetual securities 1,841 200 94 1,947 Equity securities: Yen-denominated 472 19 4 487 Dollar-denominated 8 3 0 11 Total equity securities 480 22 4 498 Total securities available for sale $ 62,963 $ 6,627 $ 1,796 $ 67,794 2015 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturities: Yen-denominated: Japan government and agencies $ 20,004 $ 3,387 $ 0 $ 23,391 Municipalities 341 74 0 415 Mortgage- and asset-backed securities 36 2 0 38 Public utilities 3,092 205 94 3,203 Sovereign and supranational 2,555 182 26 2,711 Banks/financial institutions 4,431 168 53 4,546 Other corporate 3,000 260 44 3,216 Total yen-denominated 33,459 4,278 217 37,520 Total securities held to maturity $ 33,459 $ 4,278 $ 217 $ 37,520 The methods of determining the fair values of our investments in fixed-maturity securities, perpetual securities and equity securities are described in Note 5. Beginning in 2015 and continuing into 2016, we increased our investment in yen-denominated publicly traded equity securities. In 2016, we also increased our investment in U.S. dollar-denominated publicly traded equity securities. These securities are classified as available for sale and carried on our balance sheet at fair value. During 2016 and 2015, we did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During 2014, we reclassified three investments from the held-to-maturity category to the available-for-sale category as a result of the issuers being downgraded to below investment grade. At the time of the transfer, the securities had an aggregate amortized cost of $424 million and an aggregate unrealized loss of $54 million . Contractual and Economic Maturities The contractual maturities of our investments in fixed maturities at December 31, 2016 , were as follows: Aflac Japan Aflac U.S. (In millions) Amortized Fair Amortized Fair Available for sale: Due in one year or less $ 180 $ 204 $ 103 $ 105 Due after one year through five years 3,441 3,696 617 668 Due after five years through 10 years 9,374 9,694 2,860 3,018 Due after 10 years 39,461 45,125 8,545 9,411 Mortgage- and asset-backed securities 1,144 1,184 43 48 Total fixed maturities available for sale $ 53,600 $ 59,903 $ 12,168 $ 13,250 Held to maturity: Due after one year through five years 2,009 2,112 0 0 Due after five years through 10 years 1,584 1,737 0 0 Due after 10 years 29,727 36,140 0 0 Mortgage- and asset-backed securities 30 32 0 0 Total fixed maturities held to maturity $ 33,350 $ 40,021 $ 0 $ 0 At December 31, 2016 , the Parent Company and other business segments had portfolios of available-for-sale fixed-maturity securities totaling $595 million at amortized cost and $607 million at fair value, which are not included in the table above. Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties. The majority of our perpetual securities are subordinated to other debt obligations of the issuer, but rank higher than the issuer's equity securities. Perpetual securities have characteristics of both debt and equity investments, along with unique features that create economic maturity dates for the securities. Although perpetual securities have no contractual maturity date, they have stated interest coupons that were fixed at their issuance and subsequently change to a floating short-term interest rate after some period of time. The instruments are generally callable by the issuer at the time of changing from a fixed coupon rate to a new variable rate of interest, which is determined by the combination of some market index plus a fixed amount of basis points. The net effect is to create an expected maturity date for the instrument. The economic maturities of our investments in perpetual securities, which were all reported as available for sale at December 31, 2016 , were as follows: Aflac Japan Aflac U.S. (In millions) Amortized Fair Amortized Fair Due in one year or less $ 87 $ 82 $ 0 $ 0 Due after one year through five years 189 213 0 0 Due after 10 years 1,191 1,282 39 56 Total perpetual securities available for sale $ 1,467 $ 1,577 $ 39 $ 56 Investment Concentrations Our process for investing in credit-related investments begins with an independent approach to underwriting each issuer's fundamental credit quality. We evaluate independently those factors which we believe could influence an issuer's ability to make payments under the contractual terms of our instruments. This includes a thorough analysis of a variety of items including the issuer's country of domicile (including political, legal, and financial considerations); the industry in which the issuer competes (with an analysis of industry structure, end-market dynamics, and regulation); company specific issues (such as management, assets, earnings, cash generation, and capital needs); and contractual provisions of the instrument (such as financial covenants and position in the capital structure). We further evaluate the investment considering broad business and portfolio management objectives, including asset/liability needs, portfolio diversification, and expected income. Investment exposures that individually exceeded 10% of shareholders' equity as of December 31 were as follows: 2016 2015 (In millions) Credit Amortized Fair Credit Amortized Fair Japan National Government (1) A $42,931 $51,345 A $36,859 $42,025 (1) Japan Government Bonds (JGBs) or JGB-backed securities Realized Investment Gains and Losses Information regarding pretax realized gains and losses from investments for the years ended December 31 follows: (In millions) 2016 2015 2014 Realized investment gains (losses): Fixed maturities: Available for sale: Gross gains from sales $ 77 $ 224 $ 192 Gross losses from sales (134 ) (1) (8 ) (12 ) Net gains (losses) from redemptions (1) 186 52 34 Other-than-temporary impairment losses (24 ) (1) (152 ) (31 ) Held to maturity: Net gains (losses) from redemptions 0 0 1 Total fixed maturities 105 116 184 Perpetual securities: Available for sale: Net gains (losses) from redemptions 64 35 0 Other-than-temporary impairment losses (2 ) 0 0 Total perpetual securities 62 35 0 Equity securities: Net gains (losses) from redemptions 22 0 0 Other-than-temporary impairment losses (57 ) (1 ) 0 Total equity securities (35 ) (1 ) 0 Derivatives and other: Derivative gains (losses) (255 ) (10 ) 31 Total derivatives and other (255 ) (10 ) 31 Total realized investment gains (losses) $ (123 ) $ 140 $ 215 (1) Primarily driven by foreign exchange In 2016, the impairments we recorded related to fixed maturity securities were due to a change in intent to sell securities. In 2016, the impairments we recorded related to equity securities were a result of significant and/or prolonged declines in fair value, as well as expected portfolio rebalancing where we were not able to assert our ability and intent to hold certain securities until recovery. Unrealized Investment Gains and Losses Information regarding changes in unrealized gains and losses from investments for the years ended December 31 follows: (In millions) 2016 2015 2014 Changes in unrealized gains (losses): Fixed maturities: Available for sale $ 2,690 $ (2,481 ) $ 5,629 Transferred to held to maturity 0 0 (10 ) Perpetual securities: Available for sale 21 (123 ) 269 Equity securities 88 9 5 Total change in unrealized gains (losses) $ 2,799 $ (2,595 ) $ 5,893 Effect on Shareholders' Equity The net effect on shareholders' equity of unrealized gains and losses from investment securities at December 31 was as follows: (In millions) 2016 2015 Unrealized gains (losses) on securities available for sale $ 7,630 $ 4,831 Deferred income taxes (2,825 ) (1,845 ) Shareholders’ equity, unrealized gains (losses) on investment securities $ 4,805 $ 2,986 Gross Unrealized Loss Aging The following tables show the fair values and gross unrealized losses of our available-for-sale and held-to-maturity investments that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31 . 2016 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: Japan government and Yen-denominated $ 3,958 $ 160 $ 3,958 $ 160 $ 0 $ 0 Municipalities: Dollar-denominated 44 8 0 0 44 8 Yen-denominated 105 8 105 8 0 0 Mortgage- and asset- Yen-denominated 713 8 713 8 0 0 Public utilities: Dollar-denominated 1,265 60 790 32 475 28 Yen-denominated 635 26 347 14 288 12 Sovereign and supranational: Yen-denominated 244 13 38 5 206 8 Banks/financial institutions: Dollar-denominated 268 16 238 10 30 6 Yen-denominated 1,521 100 636 19 885 81 Other corporate: Dollar-denominated 10,462 690 7,252 346 3,210 344 Yen-denominated 321 10 321 10 0 0 Total fixed maturities 19,536 1,099 14,398 612 5,138 487 Perpetual securities: Yen-denominated 479 49 85 1 394 48 Total perpetual securities 479 49 85 1 394 48 Equity securities: Dollar-denominated 211 6 211 6 0 0 Yen-denominated 49 2 49 2 0 0 Total equity securities 260 8 260 8 0 0 Total $ 20,275 $ 1,156 $ 14,743 $ 621 $ 5,532 $ 535 2015 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: Municipalities: Dollar-denominated $ 80 $ 6 $ 80 $ 6 $ 0 $ 0 Public utilities: Dollar-denominated 2,127 221 1,689 132 438 89 Yen-denominated 1,487 104 1,062 73 425 31 Sovereign and supranational: Yen-denominated 580 26 385 13 195 13 Banks/financial institutions: Dollar-denominated 366 21 348 11 18 10 Yen-denominated 2,350 158 1,147 14 1,203 144 Other corporate: Dollar-denominated 13,430 1,302 11,068 770 2,362 532 Yen-denominated 1,151 77 343 5 808 72 Total fixed maturities 21,571 1,915 16,122 1,024 5,449 891 Perpetual securities: Dollar-denominated 6 1 0 0 6 1 Yen-denominated 645 93 216 12 429 81 Total perpetual securities 651 94 216 12 435 82 Equity securities: Yen-denominated 191 4 191 4 0 0 Total equity securities 191 4 191 4 0 0 Total $ 22,413 $ 2,013 $ 16,529 $ 1,040 $ 5,884 $ 973 Analysis of Securities in Unrealized Loss Positions The unrealized losses on our fixed income or perpetual securities investments have been primarily related to general market changes in interest rates, foreign exchange rates, and/or the levels of credit spreads rather than specific concerns with the issuer's ability to pay interest and repay principal. The unrealized losses on our investments in equity securities are primarily related to foreign exchange rates, general market conditions which reflect prospects for the economy as a whole, or specific information pertaining to an industry or an individual company. For any significant declines in fair value of our fixed income or perpetual securities, we perform a more focused review of the related issuers' credit profile. For corporate issuers, we evaluate their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, we analyze all sources of credit support, including issuer-specific factors. We utilize information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. We also consider ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security we own including seniority in the issuer's capital structure, covenant predictions, or other relevant features. From these reviews, we evaluate the issuers' continued ability to service our investment through payment of interest and principal. For any significant declines in fair value of our equity securities, we review the severity of the security’s decline in fair value coupled with the length of time the fair value of the security has been below cost. We also perform a more focused review of the financial condition and near-term prospects of the issuer as well as general market conditions reflecting the prospects for the economy as a whole, and determine whether we have the intent to hold the securities until they recover in value. Assuming no credit-related factors develop, unrealized gains and losses on fixed maturities and perpetual securities are expected to diminish as investments near maturity. Based on our credit analysis, we believe that the issuers of our fixed maturity and perpetual security investments in the sectors shown in the table above have the ability to service their obligations to us. Variable Interest Entities (VIEs) As a condition to our involvement or investment in a VIE, we enter into certain protective rights and covenants that preclude changes in the structure of the VIE that would alter the creditworthiness of our investment or our beneficial interest in the VIE. For those VIEs other than certain unit trust structures, our involvement is passive in nature. We are not, nor have we been, required to purchase any securities issued in the future by these VIEs. Our ownership interest in VIEs is limited to holding the obligations issued by them. We have no direct or contingent obligations to fund the limited activities of these VIEs, nor do we have any direct or indirect financial guarantees related to the limited activities of these VIEs. We have not provided any assistance or any other type of financing support to any of the VIEs we invest in, nor do we have any intention to do so in the future. For those VIEs in which we hold debt obligations, the weighted-average lives of our notes are very similar to the underlying collateral held by these VIEs where applicable. We also utilize unit trust structures in our Aflac Japan segment to invest in various asset classes. As the sole investor of these VIEs, we are required to consolidate these entities under U.S. GAAP. Our risk of loss related to our interests in any of our VIEs is limited to the carrying value of the related investments held in the VIE. VIEs - Consolidated The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported as of December 31. Investments in Consolidated Variable Interest Entities 2016 2015 (In millions) Cost or Amortized Fair Cost or Amortized Fair Assets: Fixed maturities, available for sale $ 4,168 $ 4,982 $ 3,739 $ 4,554 Perpetual securities, available for sale 237 208 255 228 Equity securities 972 1,044 363 363 Other investments 819 789 0 0 Other assets 127 127 102 102 Total assets of consolidated VIEs $ 6,323 $ 7,150 $ 4,459 $ 5,247 Liabilities: Other liabilities $ 146 $ 146 $ 293 $ 293 Total liabilities of consolidated VIEs $ 146 $ 146 $ 293 $ 293 We are substantively the only investor in the consolidated VIEs listed in the table above. As the sole investor in these VIEs, we have the power to direct the activities of the variable interest entity that most significantly impact the entity's economic performance and are therefore considered to be the primary beneficiary of the VIEs that we consolidate. We also participate in substantially all of the variability created by these VIEs. The activities of these VIEs are limited to holding invested assets and foreign currency, and/or CDS, as appropriate, and utilizing the cash flows from these securities to service our investment. Neither we nor any of our creditors are able to obtain the underlying collateral of the VIEs unless there is an event of default or other specified event. For those VIEs that contain a swap, we are not a direct counterparty to the swap contracts and have no control over them. Our loss exposure to these VIEs is limited to our original investment. Our consolidated VIEs do not rely on outside or ongoing sources of funding to support their activities beyond the underlying collateral and swap contracts, if applicable. With the exception of our investments in unit trust structures, the underlying collateral assets and funding of our consolidated VIEs are generally static in nature and the underlying collateral and the reference corporate entities covered by any CDS contracts were all investment grade at the time of issuance. Investments in Unit Trust Structures We invest through unit trust structures in yen-denominated public equity securities, U.S. dollar-denominated public equity securities, bank loans, commercial mortgage loans, and middle market loans in which we are the only investor, requiring us to consolidate these trusts under U.S. GAAP. The yen-denominated and U.S. dollar-denominated equity securities are classified as available-for-sale in the financial statements. As of December 31, 2016 , the amortized cost and fair value of these equity securities was $972 million and $1.0 billion , compared with amortized cost and fair value of $363 million as of December 31, 2015. The bank loans are classified as available-for-sale fixed-maturity securities in the financial statements. As of December 31, 2016 , the amortized cost and fair value of our bank loan investments was $2.0 billion and $1.9 billion , respectively, compared with an amortized cost and fair value of $1.4 billion as of December 31, 2015. The commercial mortgage loans, all of which were purchased in 2016, are classified as held for investment and reflected in other investments on the consolidated balance sheets. As of December 31, 2016 , the amortized cost of these loans, net of loan loss reserves, was $745 million . The middle market loans, which were purchased in 2016, are classified as held for investment and reflected in other investments on the consolidated balance sheets. As of December 31, 2016 , the amortized cost of these loans, net of loan loss reserves, was $74 million . VIEs - Not Consolidated The table below reflects the amortized cost, fair value and balance sheet caption in which our investment in VIEs not consolidated are reported as of December 31. Investments in Variable Interest Entities Not Consolidated 2016 2015 (In millions) Amortized Fair Amortized Fair Assets: Fixed maturities, available for sale $ 4,729 $ 5,261 $ 4,731 $ 5,093 Perpetual securities, available for sale 172 200 249 253 Fixed maturities, held to maturity 2,563 2,948 2,477 2,636 Other investments 1 1 0 0 Total investments in VIEs not consolidated $ 7,465 $ 8,410 $ 7,457 $ 7,982 Prior year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to consolidations. The VIEs that we are not required to consolidate are investments that are in the form of debt obligations from the VIEs that are irrevocably and unconditionally guaranteed by their corporate parents or sponsors. These VIEs are the primary financing vehicles used by their corporate sponsors to raise financing in the capital markets. The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them. We do not have the power to direct the activities that most significantly impact the entity's economic performance, nor do we have the obligation to absorb losses of the entity or the right to receive benefits from the entity. As such, we are not the primary beneficiary of these VIEs and are therefore not required to consolidate them. These VIE investments comprise securities from 145 separate issuers with an average credit rating of BBB as of December 31, 2016, compared with 169 separate issuers with an average credit rating of BBB as of December 31, 2015. Loans and Loan Receivables We classify our loans and loan receivables as held-for-investment and include them in the other investments line on the consolidated balance sheets. We carry them on the balance sheet at amortized cost less an estimated allowance for loan losses. Our loan allowance for losses is established using both specific and general allowances. The specific allowance is used on an individual loan basis for those impaired loans where we expect to incur a loss. The general allowance is used for loans grouped by similar risk characteristics where a loan-specific or market-specific risk has not been identified, but for which we anticipate to incur a loss. Middle Market Loans As of December 31, 2016 and 2015, our investment in middle market loan receivables, net of loan loss reserves and inclusive of those loans held in unit trust structures as discussed above, was $319 million and $118 million , respectively. These balances include an unfunded amount of $91 million and $53 million as of December 31, 2016 and 2015, respectively, that was reflected in other liabilities on the consolidated balance sheets. As of December 31, 2016 and 2015, we had no loans that were past due in regards to principal and/or interest payments. Additionally, we held no loans that were on nonaccrual status or considered impaired as of December 31, 2016 and 2015. Our middle market loan allowance for losses was immaterial as of December 31, 2016 and 2015. Our middle market loan allowance for losses is established using a general allowance methodology by applying industry average long term historical loss rates to our outstanding middle market loan balances. We had no troubled debt restructurings during December 31, 2016 and 2015. As of December 31, 2016 , we had commitments of $779 million to fund potential future loan originations related to this investment program, inclusive of loans held in unit trust structures. These commitments are contingent upon the availability of middle market loans that meet our underwriting criteria. Commercial Mortgage Loans In 2016, we began funding investments in commercial mortgage loans. As of December 31, 2016 , the amortized cost of these investments, net of loan loss reserves and inclusive of those loans held in unit trust structures as discussed above, was $855 million . We had no loans that were past due in regards to principal and/or interest payments, and we held no loans that were on nonaccrual status or considered impaired as of December 31, 2016 . Our commercial mortgage loan allowance for losses was immaterial as of December 31, 2016 . We had no troubled debt restructurings during the year ended December 31, 2016 . As of December 31, 2016 , we had $19 million in outstanding commitments to fund commercial mortgage loans, inclusive of loans held in unit trust structures. These commitments are contingent on the final underwriting and due diligence to be performed. Securities Lending and Pledged Securities We lend fixed-maturity securities to financial institutions in short-term security-lending transactions. These short-term security-lending arrangements increase investment income with minimal risk. Our security lending policy requires that the fair value of the securities and/or unrestricted cash received as collateral be 102% or more of the fair value of the loaned securities. These securities continue to be carried as investment assets on our balance sheet during the terms of the loans and are not reported as sales. We receive cash or other securities as collateral for such loans. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral. Details of our securities lending activities as of December 31 were as follows: Securities Lending Transactions Accounted for as Secured Borrowings 2016 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 Total Securities lending transactions: Public utilities $ 62 $ 0 $ 62 Banks/financial institutions 34 0 34 Other corporate 430 0 430 Total borrowings $ 526 $ 0 $ 526 Gross amount of recognized liabilities for securities lending transactions $ 526 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 0 (1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous. Securities Lending Transactions Accounted for as Secured Borrowings 2015 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 Total Securities lending transactions: Japan government and agencies $ 0 $ 499 $ 499 Public utilities 108 0 108 Banks/financial institutions 13 0 13 Other corporate 321 0 321 Total borrowings $ 442 $ 499 $ 941 Gross amount of recognized liabilities for securities lending transactions $ 941 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 0 (1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous. We did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of December 31, 2016 and 2015, respectively. Certain fixed-maturity securities can be pledged as collateral as part of derivative transactions, or pledged to support state deposit requirements on certain investment programs. For additional information regarding pledged securities related to derivative transactions, see Note 4. At December 31, 2016 , debt securities with a fair value of $17 million were on deposit with regulatory authorities in the United States (including U.S. territories) and Japan. We retain ownership of all securities on deposit and receive the related investment income. For general information regarding our investment accounting policies, see Note 1. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Our freestanding derivative financial instruments have historically consisted of: (1) foreign currency swaps and credit default swaps that are associated with investments in special-purpose entities, including VIEs where we are the primary beneficiary; (2) foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio; (3) foreign currency forwards and options used to hedge foreign exchange risk from our net investment in Aflac Japan and economically hedge certain portions of forecasted cash flows denominated in yen; (4) swaps associated with our notes payable, consisting of cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with certain senior notes and our subordinated debentures; and (5) options on interest rate swaps (or interest rate swaptions) and futures used to hedge interest rate risk for certain available-for-sale securities. We do not use derivative financial instruments for trading purposes, nor do we engage in leveraged derivative transactions. Some of our derivatives are designated as cash flow hedges, fair value hedges or net investment hedges; however, other derivatives do not qualify for hedge accounting or we elect not to designate them as an accounting hedge. We utilize a net investment hedge to mitigate foreign exchange exposure resulting from our net investment in Aflac Japan. In addition to designating derivatives as hedging instruments, we have designated the majority of the Parent Company's yen-denominated liabilities (notes payable and loans) as non-derivative hedging instruments for this net investment hedge. Derivative Types We enter into foreign currency swaps pursuant to which we exchange an initial principal amount in one currency for an initial principal amount of another currency, with an agreement to re-exchange the currencies at a future date at an agreed upon exchange rate. There may also be periodic exchanges of payments at specified intervals based on the agreed upon rates and notional amounts. Foreign currency swaps are used primarily in the consolidated VIEs in our Aflac Japan portfolio to convert foreign-denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations. We also use foreign currency swaps to economically convert certain of our dollar-denominated senior note and subordinated debenture principal and interest obligations into yen-denominated obligations. Foreign currency forwards and options are executed for the Aflac Japan segment in order to hedge the currency risk on the carrying value of certain U.S. dollar-denominated investments. The maturities of these forwards and options are typically two years or less. In forward transactions, Aflac Japan agrees with another party to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. Aflac Japan also executes foreign currency option transactions in a collar strategy, where Aflac Japan agrees with another party to simultaneously purchase a fixed amount of U.S. dollar put options and sell U.S. dollar call options. The combination of these two actions results in no net premium being paid (i.e. a costless or zero-cost collar). The foreign currency forwards and options are used in fair value hedging relationships to mitigate the foreign exchange risk associated with U.S. dollar-denominated investments supporting yen-denominated liabilities. Foreign currency forwards and options are also used to hedge the currency risk associated with the net investment in Aflac Japan. In these forward transactions, Aflac agrees with another party to buy a fixed amount of U.S. dollars and sell a corresponding amount of yen at a specified future date. In the option transactions, we use a combination of foreign currency options to protect expected future cash flows by simultaneously purchasing yen put options (options that protect against a weakening yen) and selling yen call options (options that limit participation in a strengthening yen). The combination of these two actions results in no net premium being paid (i.e. a costless or zero-cost collar). The only CDS that we currently hold relates to components of an investment in a VIE and is used to assume credit risk related to an individual security. This CDS contract entitles the consolidated VIE to receive periodic fees in exchange for an obligation to compensate the derivative counterparties should the referenced security issuer experience a credit event, as defined in the contract. Interest rate swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. No cash or principal payments are exchanged at the inception of the contract. Interest rate swaps are primarily used to convert interest receipts on floating-rate fixed-maturity securities contracts to fixed rates. These derivatives are predominantly used to better match cash receipts from assets with cash disbursements required to fund liabilities. Interest rate swaptions are options on interest rate swaps. Interest rate collars are combinations of two swaption positions and are executed in order to hedge certain U.S. dollar-denominated available-for-sale securities that are held in the Aflac Japan segment. We use collars to protect against significant changes in the fair value associated with our U.S. dollar-denominated available-for-sale securities due to interest rates. In order to maximize the efficiency of the collars while minimizing cost, we set the strike price on each collar so that the premium paid for the ‘payer leg’ is offset by the premium received for having sold the ‘receiver leg’. Periodically, we may enter into other derivative transactions depending on general economic conditions. Derivative Balance Sheet Classification The tables below summarize the balance sheet classification of our derivative fair value amounts, as well as the gross asset and liability fair value amounts, at December 31. The fair value amounts presented do not include income accruals. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not reflective of exposure or credit risk. 2016 (In millions) Net Derivatives Asset Liability Hedge Designation/ Derivative Type Notional Fair Value Fair Value Fair Value Cash flow hedges: Foreign currency swaps $ 75 $ (10 ) $ 0 $ (10 ) Total cash flow hedges 75 (10 ) 0 (10 ) Fair value hedges: Foreign currency forwards 10,965 (759 ) 0 (759 ) Foreign currency options 4,224 (30 ) 2 (32 ) Total fair value hedges 15,189 (789 ) 2 (791 ) Net investment hedge: Foreign currency forwards 209 3 5 (2 ) Foreign currency options 843 24 41 (17 ) Total net investment hedge 1,052 27 46 (19 ) Non-qualifying strategies: Foreign currency swaps 6,266 270 490 (220 ) Foreign currency forwards 21,218 (289 ) 667 (956 ) Foreign currency options 41 (2 ) 0 (2 ) Credit default swaps 86 2 2 0 Total non-qualifying strategies 27,611 (19 ) 1,159 (1,178 ) Total derivatives $ 43,927 $ (791 ) $ 1,207 $ (1,998 ) Balance Sheet Location Other assets $ 18,329 $ 1,207 $ 1,207 $ 0 Other liabilities 25,598 (1,998 ) 0 (1,998 ) Total derivatives $ 43,927 $ (791 ) $ 1,207 $ (1,998 ) 2015 (In millions) Net Derivatives Asset Liability Hedge Designation/ Derivative Type Notional Fair Value Fair Value Fair Value Cash flow hedges: Foreign currency swaps $ 75 $ (15 ) $ 0 $ (15 ) Total cash flow hedges 75 (15 ) 0 (15 ) Fair value hedges: Foreign currency forwards 13,080 45 88 (43 ) Foreign currency options 1,250 0 0 0 Total fair value hedges 14,330 45 88 (43 ) Net investment hedge: Foreign currency forwards 763 13 19 (6 ) Foreign currency options 266 (3 ) 5 (8 ) Total net investment hedge 1,029 10 24 (14 ) Non-qualifying strategies: Foreign currency swaps 6,599 264 563 (299 ) Foreign currency forwards 11 0 0 0 Credit default swaps 83 1 1 0 Total non-qualifying strategies 6,693 265 564 (299 ) Total derivatives $ 22,127 $ 305 $ 676 $ (371 ) Balance Sheet Location Other assets $ 11,413 $ 676 $ 676 $ 0 Other liabilities 10,714 (371 ) 0 (371 ) Total derivatives $ 22,127 $ 305 $ 676 $ (371 ) The derivative notional amount increased from 2015 to 2016 primarily due to an increase in non-qualifying strategies. The increase in non-qualifying strategies related to entering into longer duration foreign currency forwards designated as fair value hedges that resulted in the dedesignation of existing foreign currency forwards. We also entered into offsetting foreign currency forwards for the remaining term of the foreign currency forwards that were dedesignated, both of which are included in the notional amounts presented for non-qualifying strategies. Cash Flow Hedges Certain of our consolidated VIEs have foreign currency swaps that qualify for hedge accounting treatment. For those that have qualified, we have designated the derivative as a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset (“cash flow” hedge). We expect to continue this hedging activity for a weighted-average period of approximately nine years. The remaining derivatives in our consolidated VIEs that have not qualified for hedge accounting are included in "non-qualifying strategies." Fair Value Hedges We designate and account for certain foreign currency forwards and options as fair value hedges when they meet the requirements for hedge accounting. These foreign currency forwards and options hedge the foreign currency exposure of certain U.S. dollar-denominated investments. We recognize gains and losses on these derivatives and the related hedged items in current earnings within derivative and other gains (losses). The change in the fair value of the foreign currency forwards related to the changes in the difference between the spot rate and the forward price is excluded from the assessment of hedge effectiveness. The change in fair value of the foreign currency option related to the time value of the option is excluded from the assessment of hedge effectiveness. We designate and account for interest rate swaptions as fair value hedges when they meet the requirements for hedge accounting. These interest rate swaptions hedge the interest rate exposure of certain U.S. dollar-denominated fixed maturity securities within the investment portfolio of our Aflac Japan segment. We recognize gains and losses on these derivatives and the related hedged items in current earnings within derivative and other gains (losses). The change in the fair value of the interest rate swaptions related to the time value of the option is excluded from the assessment of hedge effectiveness. The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges for the years ended December 31. Fair Value Hedging Relationships (In millions) Hedging Derivatives Hedged Items Hedging Derivatives Hedged Items Total Gains (Losses) Gains (Losses) Gains (Losses) Ineffectiveness 2016: Foreign currency Fixed-maturity securities and equity securities $ 207 $ (338 ) $ 545 $ (566 ) $ (21 ) Foreign currency Fixed-maturity securities (95 ) (18 ) (77 ) 70 (7 ) 2015: Foreign currency forwards Fixed-maturity securities $ (133 ) $ (136 ) $ 3 $ (5 ) $ (2 ) Foreign currency options Fixed-maturity securities (4 ) 3 (7 ) 7 0 Interest rate Fixed-maturity securities (95 ) 19 (114 ) 99 (15 ) 2014: Foreign currency forwards Fixed-maturity securities $ (1,835 ) $ (38 ) $ (1,797 ) $ 1,819 $ 22 Foreign currency options Fixed-maturity securities (41 ) (4 ) (37 ) 38 1 Interest rate Fixed-maturity securities (318 ) (36 ) (282 ) 316 34 Net Investment Hedge Our primary exposure to be hedged is our net investment in Aflac Japan, which is affected by changes in the yen/dollar exchange rate. To mitigate this exposure, we have designated the Parent Company's yen-denominated liabilities (see Note 9) as non-derivative hedges and designated foreign currency forwards and options as derivative hedges of the foreign currency exposure of our net investment in Aflac Japan. We used foreign exchange forwards and options to hedge foreign exchange risk on 114.0 billion yen of profit repatriation received from Aflac Japan in 2016. As of December 31, 2016 , we had entered into foreign exchange forwards and options as part of a hedge on 122.6 billion yen of future profit repatriation. Our net investment hedge was effective for the years ended December 31, 2016 , 2015 and 2014 . Non-qualifying Strategies For our derivative instruments in consolidated VIEs that do not qualify for hedge accounting treatment, all changes in their fair value are reported in current period earnings within derivative and other gains (losses). The amount of gain or loss recognized in earnings for our VIEs is attributable to the derivatives in those investment structures. While the change in value of the swaps is recorded through current period earnings, the change in value of the available-for-sale fixed-maturity or perpetual securities associated with these swaps is recorded through other comprehensive income. We have cross-currency interest rate swap agreements related to our $400 million senior notes due February 2017, $550 million senior notes due March 2020, $350 million senior notes due February 2022, $700 million senior notes due June 2023, $750 million senior notes due November 2024, $450 million senior notes due March 2025, and $500 million subordinated debentures due September 2052. Changes in the values of these swaps are recorded through current period earnings. For additional information regarding these swaps, see Note 9. In the fourth quarter of 2016, we began using foreign exchange forwards to mitigate the currency risk of our U.S. dollar-denominated middle market loan portfolio held within the Aflac Japan segment. As of December 31, 2016 , the outstanding derivative notional amounts associated with these U.S. dollar-denominated middle market loans was approximately $109 million . In the third quarter of 2016, we began using foreign exchange forwards to mitigate the currency risk of our U.S. dollar-denominated commercial loan portfolio held within the Aflac Japan segment. As of December 31, 2016 , the outstanding derivative notional amounts associated with these U.S. dollar-denominated commercial mortgage loans was approximately $710 million . We have not elected to apply hedge accounting for these middle market loans and commercial mortgage loans. The change in fair value of the foreign exchange forwards and the foreign currency remeasurement of the middle market loans and commercial mortgage loans are each recorded through current period earnings, and generally offset each other. Impact of Derivatives and Hedging Instruments The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments for the years ended December 31. 2016 2015 2014 (In millions) Realized Investment Other (1) Realized Investment Other (1) Realized Other (1) Qualifying hedges: Cash flow hedges: Foreign currency swaps $ 1 $ 3 $ 0 $ 0 $ (2 ) $ (17 ) Total cash flow hedges 1 3 0 0 (2 ) (17 ) Fair value hedges: Foreign currency forwards (2) (359 ) 0 (138 ) 0 (16 ) 0 Foreign currency options ( 2) (25 ) 0 3 0 (3 ) 0 Interest rate swaptions (2) 0 0 4 0 (2 ) 0 Total fair value hedges (384 ) 0 (131 ) 0 (21 ) 0 Net investment hedge: Non-derivative hedging 0 0 0 3 0 39 Foreign currency forwards 0 (118 ) 0 4 0 89 Foreign currency options 0 73 0 0 0 (3 ) Total net investment hedge 0 (45 ) 0 7 0 125 Non-qualifying strategies: Foreign currency swaps 117 0 16 0 151 0 Foreign currency forwards 9 0 100 0 (11 ) 0 Credit default swaps 2 0 1 0 3 0 Interest rate swaps 0 0 5 0 (1 ) 0 Interest rate swaptions 0 0 0 0 1 0 Futures 0 0 (1 ) 0 (89 ) 0 Total non- qualifying strategies 128 0 121 0 54 0 Total $ (255 ) $ (42 ) $ (10 ) $ 7 $ 31 $ 108 (1) Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). (2) Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail) We reclassified a de minimus amount from accumulated other comprehensive income (loss) into earnings related to our designated cash flow hedges for the years ended December 31, 2016, 2015 and 2014, respectively. There was no gain or loss reclassified from accumulated other comprehensive income (loss) into earnings related to the net investment hedge for the years ended December 31, 2016 , 2015 and 2014 . As of December 31, 2016 , deferred gains and losses on derivative instruments recorded in accumulated other comprehensive income that are expected to be reclassified to earnings during the next twelve months were immaterial. Credit Risk Assumed through Derivatives For the foreign currency and credit default swaps associated with our VIE investments for which we are the primary beneficiary, we bear the risk of foreign exchange loss due to counterparty default even though we are not a direct counterparty to those contracts. We are a direct counterparty to the foreign currency swaps that we have entered into in connection with certain of our senior notes, subordinated debentures, and Samurai notes; foreign currency forwards; foreign currency options; and interest rate swaptions, and therefore we are exposed to credit risk in the event of nonperformance by the counterparties in those contracts. The risk of counterparty default for our VIE swaps, foreign currency swaps, certain foreign currency forwards, foreign currency options and interest rate swaptions is mitigated by collateral posting requirements that counterparties to those transactions must meet. As of December 31, 2016 , there were 16 counterparties to our derivative agreements, with five comprising 63% of the aggregate notional amount. The counterparties to these derivatives are financial institutions with the following credit ratings as of December 31: 2016 2015 (In millions) Notional Amount Asset Derivatives Liability Derivatives Notional Amount Asset Derivatives Liability Derivatives Counterparties' credit rating: AA $ 6,844 $ 247 $ (308 ) $ 2,187 $ 166 $ (35 ) A 36,019 900 (1,621 ) 19,940 510 (336 ) BBB 1,064 60 (69 ) 0 0 0 Total $ 43,927 $ 1,207 $ (1,998 ) $ 22,127 $ 676 $ (371 ) We engage in derivative transactions directly with unaffiliated third parties under International Swaps and Derivatives Association, Inc. (ISDA) agreements and other documentation. Most of the ISDA agreements also include Credit Support Annexes (CSAs) provisions, which generally provide for two-way collateral postings at the first dollar of exposure. We mitigate the risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value while generally requiring that collateral be posted at the outset of the transaction. In addition, a significant portion of the derivative transactions have provisions that give the counterparty the right to terminate the transaction upon a downgrade of Aflac’s financial strength rating. The actual amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions, and other factors prevailing at and after the time of the downgrade. Collateral posted by us to third parties for derivative transactions can generally be repledged or resold by the counterparties. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $1.2 billion and $26 million as of December 31, 2016 and 2015 , respectively. We are generally allowed to sell or repledge collateral obtained from our derivative counterparties, although we do not typically exercise such rights. (See the Offsetting tables below for collateral posted or received as of the reported balance sheet dates.) Offsetting of Financial Instruments and Derivatives Some of the Company's derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Parent Company or Aflac and its respective counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements with the master netting arrangements generally provide that the Company will receive or pledge financial collateral at the first dollar of exposure. We have securities lending agreements with unaffiliated financial institutions that post collateral to us in return for the use of our fixed maturity securities (see Note 3). When we have entered into securities lending agreements with the same counterparty, the agreements generally provide for net settlement in the event of default by the counterparty. This right of set-off allows us to keep and apply collateral received if the counterparty failed to return the securities borrowed from us as contractually agreed. For additional information on the Company's accounting policy for securities lending, see Note 1. The tables below summarize our derivatives and securities lending transactions as of December 31, and as reflected in the tables, in accordance with U.S. GAAP, our policy is to not offset these financial instruments in the Consolidated Balance Sheets. Offsetting of Financial Assets and Derivative Assets 2016 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement $ 1,080 $ 0 $ 1,080 $ (698 ) $ 0 $ (382 ) $ 0 Derivative assets not subject to a master netting agreement or offsetting arrangement 127 127 127 Total derivative assets 1,207 0 1,207 (698 ) 0 (382 ) 127 Securities lending and similar arrangements 513 0 513 0 0 (513 ) 0 Total $ 1,720 $ 0 $ 1,720 $ (698 ) $ 0 $ (895 ) $ 127 2015 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement $ 574 $ 0 $ 574 $ (51 ) $ (190 ) $ (326 ) $ 7 Derivative assets not subject to a master netting agreement or offsetting arrangement 102 102 102 Total derivative assets 676 0 676 (51 ) (190 ) (326 ) 109 Securities lending and similar arrangements 921 0 921 0 0 (921 ) 0 Total $ 1,597 $ 0 $ 1,597 $ (51 ) $ (190 ) $ (1,247 ) $ 109 Offsetting of Financial Liabilities and Derivative Liabilities 2016 Gross Amounts Not Offset in Balance Sheet (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement $ (1,852 ) $ 0 $ (1,852 ) $ 698 $ 1,130 $ 21 $ (3 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement (146 ) (146 ) (146 ) Total derivative liabilities (1,998 ) 0 (1,998 ) 698 1,130 21 (149 ) Securities lending and similar arrangements (526 ) 0 (526 ) 513 0 0 (13 ) Total $ (2,524 ) $ 0 $ (2,524 ) $ 1,211 $ 1,130 $ 21 $ (162 ) 2015 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement $ (78 ) $ 0 $ (78 ) $ 51 $ 18 $ 3 $ (6 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement (293 ) (293 ) $ (293 ) Total derivative liabilities (371 ) 0 (371 ) 51 18 3 (299 ) Securities lending and similar arrangements (941 ) 0 (941 ) 921 0 0 (20 ) Total $ (1,312 ) $ 0 $ (1,312 ) $ 972 $ 18 $ 3 $ (319 ) For additional information on our financial instruments, see the accompanying Notes 1, 3 and 5. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair Value Hierarchy U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. These two types of inputs create three valuation hierarchy levels. Level 1 valuations reflect quoted market prices for identical assets or liabilities in active markets. Level 2 valuations reflect quoted market prices for similar assets or liabilities in an active market, quoted market prices for identical or similar assets or liabilities in non-active markets or model-derived valuations in which all significant valuation inputs are observable in active markets. Level 3 valuations reflect valuations in which one or more of the significant inputs are not observable in an active market. The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis as of December 31. 2016 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturities: Government and agencies $ 25,387 $ 827 $ 0 $ 26,214 Municipalities 0 1,295 0 1,295 Mortgage- and asset-backed securities 0 1,139 198 1,337 Public utilities 0 7,667 16 7,683 Sovereign and supranational 0 1,469 0 1,469 Banks/financial institutions 0 6,038 25 6,063 Other corporate 0 29,699 0 29,699 Total fixed maturities 25,387 48,134 239 73,760 Perpetual securities: Banks/financial institutions 0 1,420 0 1,420 Other corporate 0 213 0 213 Total perpetual securities 0 1,633 0 1,633 Equity securities 1,300 6 3 1,309 Other assets: Foreign currency swaps 0 365 125 490 Foreign currency forwards 0 672 0 672 Foreign currency options 0 43 0 43 Credit default swaps 0 0 2 2 Total other assets 0 1,080 127 1,207 Other investments 276 0 0 276 Cash and cash equivalents 4,859 0 0 4,859 Total assets $ 31,822 $ 50,853 $ 369 $ 83,044 Liabilities: Foreign currency swaps $ 0 $ 84 $ 146 $ 230 Foreign currency forwards 0 1,717 0 1,717 Foreign currency options 0 51 0 51 Total liabilities $ 0 $ 1,852 $ 146 $ 1,998 2015 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturities: Government and agencies $ 18,669 $ 607 $ 0 $ 19,276 Municipalities 0 1,208 0 1,208 Mortgage- and asset-backed securities 0 362 220 582 Public utilities 0 7,479 0 7,479 Sovereign and supranational 0 1,407 0 1,407 Banks/financial institutions 0 5,993 26 6,019 Other corporate 0 29,378 0 29,378 Total fixed maturities 18,669 46,434 246 65,349 Perpetual securities: Banks/financial institutions 0 1,742 0 1,742 Other corporate 0 205 0 205 Total perpetual securities 0 1,947 0 1,947 Equity securities 489 6 3 498 Other assets: Foreign currency swaps 0 462 101 563 Foreign currency forwards 0 107 0 107 Foreign currency options 0 5 0 5 Credit default swaps 0 0 1 1 Total other assets 0 574 102 676 Other investments 176 0 0 176 Cash and cash equivalents 4,350 0 0 4,350 Total assets $ 23,684 $ 48,961 $ 351 $ 72,996 Liabilities: Foreign currency swaps $ 0 $ 21 $ 293 $ 314 Foreign currency forwards 0 49 0 49 Foreign currency options 0 8 0 8 Total liabilities $ 0 $ 78 $ 293 $ 371 The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value as of December 31. 2016 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturities: Government and agencies $ 20,702 $ 26,040 $ 0 $ 0 $ 26,040 Municipalities 350 0 457 0 457 Mortgage and asset-backed 30 0 10 22 32 Public utilities 3,201 0 3,536 0 3,536 Sovereign and 2,602 0 2,877 0 2,877 Banks/financial institutions 3,731 0 3,900 0 3,900 Other corporate 2,734 0 3,179 0 3,179 Other investments 1,174 0 0 1,142 1,142 Total assets $ 34,524 $ 26,040 $ 13,959 $ 1,164 $ 41,163 Liabilities: Other policyholders’ funds $ 6,659 $ 0 $ 0 $ 6,540 $ 6,540 Notes payable 5,339 0 0 5,530 5,530 Total liabilities $ 11,998 $ 0 $ 0 $ 12,070 $ 12,070 2015 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturities: Government and agencies $ 20,004 $ 23,391 $ 0 $ 0 $ 23,391 Municipalities 341 0 415 0 415 Mortgage and asset-backed 36 0 12 26 38 Public utilities 3,092 0 3,203 0 3,203 Sovereign and 2,555 0 2,711 0 2,711 Banks/financial institutions 4,431 0 4,546 0 4,546 Other corporate 3,000 0 3,216 0 3,216 Other investments 118 0 0 118 118 Total assets $ 33,577 $ 23,391 $ 14,103 $ 144 $ 37,638 Liabilities: Other policyholders’ funds $ 6,285 $ 0 $ 0 $ 6,160 $ 6,160 Notes payable 4,951 0 0 5,256 5,256 Total liabilities $ 11,236 $ 0 $ 0 $ 11,416 $ 11,416 Amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs. Fair Value of Financial Instruments U.S. GAAP requires disclosure of the fair value of certain financial instruments including those that are not carried at fair value. The carrying amounts for cash and cash equivalents, other investments (excluding loan receivables), receivables, accrued investment income, accounts payable, cash collateral and payables for security transactions approximated their fair values due to the nature of these instruments. Liabilities for future policy benefits and unpaid policy claims are not financial instruments as defined by U.S. GAAP. Fixed maturities, perpetual securities, and equity securities We determine the fair values of our fixed maturity securities, perpetual securities, and public and privately issued equity securities using the following approaches or techniques: price quotes and valuations from third party pricing vendors (including quoted market prices readily available from public exchange markets) and non-binding price quotes we obtain from outside brokers. A third party pricing vendor has developed valuation models to determine fair values of privately issued securities to reflect the impact of the persistent economic environment and the changing regulatory framework. These models are discounted cash flow (DCF) valuation models, but also use information from related markets, specifically the CDS market to estimate expected cash flows. These models take into consideration any unique characteristics of the securities and make various adjustments to arrive at an appropriate issuer-specific loss adjusted credit curve. This credit curve is then used with the relevant recovery rates to estimate expected cash flows and modeling of additional features, including illiquidity adjustments, if necessary, to price the security by discounting those loss adjusted cash flows. In cases where a credit curve cannot be developed from the specific security features, the valuation methodology takes into consideration other market observable inputs, including: 1) the most appropriate comparable security(ies) of the issuer; 2) issuer-specific CDS spreads; 3) bonds or CDS spreads of comparable issuers with similar characteristics such as rating, geography, or sector; or 4) bond indices that are comparative in rating, industry, maturity and region. The pricing data and market quotes we obtain from outside sources, including third party pricing services, are reviewed internally for reasonableness. If a fair value appears unreasonable, we will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, we may compare the inputs to relevant market indices and other performance measurements. The output of this analysis is presented to the Company's Valuation and Classifications Subcommittee, or VCS. Based on the analysis provided to the VCS, the valuation is confirmed or may be revised if there is evidence of a more appropriate estimate of fair value based on available market data. We have performed verification of the inputs and calculations in any valuation models to confirm that the valuations represent reasonable estimates of fair value. The fixed maturities classified as Level 3 consist of securities for which there are limited or no observable valuation inputs. For Level 3 securities that are investment grade, we estimate the fair value of these securities by obtaining non-binding broker quotes from a limited number of brokers. These brokers base their quotes on a combination of their knowledge of the current pricing environment and market conditions. We consider these inputs to be unobservable. For Level 3 investments that are below-investment-grade securities, we consider a variety of significant valuation inputs in the valuation process, including forward exchange rates, yen swap rates, dollar swap rates, interest rate volatilities, credit spread data on specific issuers, assumed default and default recovery rates, and certain probability assumptions. In obtaining these valuation inputs, we have determined that certain pricing assumptions and data used by our pricing sources are difficult to validate or corroborate by the market and/or appear to be internally developed rather than observed in or corroborated by the market. The use of these unobservable valuation inputs causes more subjectivity in the valuation process for these securities. For the periods presented, we have not adjusted the quotes or prices we obtain from the pricing services and brokers we use. The following tables present the pricing sources for the fair values of our fixed maturities, perpetual securities, and equity securities as of December 31. 2016 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturities: Government and agencies: Third party pricing vendor $ 25,387 $ 827 $ 0 $ 26,214 Total government and agencies 25,387 827 0 26,214 Municipalities: Third party pricing vendor 0 1,295 0 1,295 Total municipalities 0 1,295 0 1,295 Mortgage- and asset-backed securities: Third party pricing vendor 0 1,139 0 1,139 Broker/other 0 0 198 198 Total mortgage- and asset-backed securities 0 1,139 198 1,337 Public utilities: Third party pricing vendor 0 7,667 0 7,667 Broker/other 0 0 16 16 Total public utilities 0 7,667 16 7,683 Sovereign and supranational: Third party pricing vendor 0 1,469 0 1,469 Total sovereign and supranational 0 1,469 0 1,469 Banks/financial institutions: Third party pricing vendor 0 6,038 0 6,038 Broker/other 0 0 25 25 Total banks/financial institutions 0 6,038 25 6,063 Other corporate: Third party pricing vendor 0 29,699 0 29,699 Total other corporate 0 29,699 0 29,699 Total fixed maturities 25,387 48,134 239 73,760 Perpetual securities: Banks/financial institutions: Third party pricing vendor 0 1,420 0 1,420 Total banks/financial institutions 0 1,420 0 1,420 Other corporate: Third party pricing vendor 0 213 0 213 Total other corporate 0 213 0 213 Total perpetual securities 0 1,633 0 1,633 Equity securities: Third party pricing vendor 1,300 6 0 1,306 Broker/other 0 0 3 3 Total equity securities 1,300 6 3 1,309 Total securities available for sale $ 26,687 $ 49,773 $ 242 $ 76,702 2016 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturities: Government and agencies: Third party pricing vendor $ 26,040 $ 0 $ 0 $ 26,040 Total government and agencies 26,040 0 0 26,040 Municipalities: Third party pricing vendor 0 457 0 457 Total municipalities 0 457 0 457 Mortgage- and asset-backed securities: Third party pricing vendor 0 10 0 10 Broker/other 0 0 22 22 Total mortgage- and asset-backed securities 0 10 22 32 Public utilities: Third party pricing vendor 0 3,536 0 3,536 Total public utilities 0 3,536 0 3,536 Sovereign and supranational: Third party pricing vendor 0 2,877 0 2,877 Total sovereign and supranational 0 2,877 0 2,877 Banks/financial institutions: Third party pricing vendor 0 3,900 0 3,900 Total banks/financial institutions 0 3,900 0 3,900 Other corporate: Third party pricing vendor 0 3,179 0 3,179 Total other corporate 0 3,179 0 3,179 Total securities held to maturity $ 26,040 $ 13,959 $ 22 $ 40,021 2015 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturities: Government and agencies: Third party pricing vendor $ 18,669 $ 607 $ 0 $ 19,276 Total government and agencies 18,669 607 0 19,276 Municipalities: Third party pricing vendor 0 1,208 0 1,208 Total municipalities 0 1,208 0 1,208 Mortgage- and asset-backed securities: Third party pricing vendor 0 362 0 362 Broker/other 0 0 220 220 Total mortgage- and asset-backed securities 0 362 220 582 Public utilities: Third party pricing vendor 0 7,479 0 7,479 Total public utilities 0 7,479 0 7,479 Sovereign and supranational: Third party pricing vendor 0 1,407 0 1,407 Total sovereign and supranational 0 1,407 0 1,407 Banks/financial institutions: Third party pricing vendor 0 5,993 0 5,993 Broker/other 0 0 26 26 Total banks/financial institutions 0 5,993 26 6,019 Other corporate: Third party pricing vendor 0 29,378 0 29,378 Total other corporate 0 29,378 0 29,378 Total fixed maturities 18,669 46,434 246 65,349 Perpetual securities: Banks/financial institutions: Third party pricing vendor 0 1,742 0 1,742 Total banks/financial institutions 0 1,742 0 1,742 Other corporate: Third party pricing vendor 0 205 0 205 Total other corporate 0 205 0 205 Total perpetual securities 0 1,947 0 1,947 Equity securities: Third party pricing vendor 489 6 0 495 Broker/other 0 0 3 3 Total equity securities 489 6 3 498 Total securities available for sale $ 19,158 $ 48,387 $ 249 $ 67,794 2015 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturities: Government and agencies: Third party pricing vendor $ 23,391 $ 0 $ 0 $ 23,391 Total government and agencies 23,391 0 0 23,391 Municipalities: Third party pricing vendor 0 415 0 415 Total municipalities 0 415 0 415 Mortgage- and asset-backed securities: Third party pricing vendor 0 12 0 12 Broker/other 0 0 26 26 Total mortgage- and asset-backed securities 0 12 26 38 Public utilities: Third party pricing vendor 0 3,203 0 3,203 Total public utilities 0 3,203 0 3,203 Sovereign and supranational: Third party pricing vendor 0 2,711 0 2,711 Total sovereign and supranational 0 2,711 0 2,711 Banks/financial institutions: Third party pricing vendor 0 4,546 0 4,546 Total banks/financial institutions 0 4,546 0 4,546 Other corporate: Third party pricing vendor 0 3,189 0 3,189 Broker/other 0 27 0 27 Total other corporate 0 3,216 0 3,216 Total securities held to maturity $ 23,391 $ 14,103 $ 26 $ 37,520 The following is a discussion of the determination of fair value of our remaining financial instruments. Derivatives We use derivative instruments to manage the risk associated with certain assets. However, the derivative instrument may not be classified in the same fair value hierarchy level as the associated asset. Inputs used to value derivatives include, but are not limited to, interest rates, credit spreads, foreign currency forward and spot rates, and interest volatility. The fair values of the foreign currency forwards, options, and interest rate swaptions associated with certain investments; the foreign currency forwards and options used to hedge foreign exchange risk from our net investment in Aflac Japan and economically hedge certain portions of forecasted cash flows denominated in yen; and the foreign currency swaps associated with certain senior notes and our subordinated debentures are based on the amounts we would expect to receive or pay. The determination of the fair value of these derivatives is based on observable market inputs, therefore they are classified as Level 2. For derivatives associated with VIEs where we are the primary beneficiary, we are not the direct counterparty to the swap contracts. As a result, the fair value measurements incorporate the credit risk of the collateral associated with the VIE. We receive valuations from a third party pricing vendor for these derivatives. Based on an analysis of these derivatives and a review of the methodology employed by the pricing vendor, we determined that due to the long duration of these swaps and the need to extrapolate from short-term observable data to derive and measure long-term inputs, certain inputs, assumptions and judgments are required to value future cash flows that cannot be corroborated by current inputs or current observable market data. As a result, the derivatives associated with our consolidated VIEs are classified as Level 3 of the fair value hierarchy. Loan Receivables Our loan receivables do not have readily determinable market prices and generally lack market liquidity. Fair values for loan receivables are determined based on the present value of expected future cash flows discounted at the applicable U.S. Treasury or London Interbank Offered Rate (LIBOR) yield plus an appropriate spread that considers other risk factors, such as credit and liquidity risk. These spreads are provided by the applicable asset managers based on their knowledge of the current loan pricing environment and market conditions. The spreads are a significant component of the pricing inputs and are generally considered unobservable. Therefore, these investments have been assigned a Level 3 within the fair value hierarchy. Loan receivables are included in other investments on the consolidated balance sheets. Other policyholders' funds The largest component of the other policyholders' funds liability is our annuity line of business in Aflac Japan. Our annuities have fixed benefits and premiums. For this product, we estimated the fair value to be equal to the cash surrender value. This is analogous to the value paid to policyholders on the valuation date if they were to surrender their policy. We periodically check the cash value against discounted cash flow projections for reasonableness. We consider our inputs for this valuation to be unobservable and have accordingly classified this valuation as Level 3. Notes payable The fair values of our publicly issued notes payable classified as Level 3 were obtained from a limited number of independent brokers. These brokers base their quotes on a combination of their knowledge of the current pricing environment and market conditions. We consider these inputs to be unobservable. The fair values of our yen-denominated loans approximate their carrying values. Transfers between Hierarchy Levels and Level 3 Rollforward There were no transfers between Level 1 and 2 for the years ended December 31, 2016 and 2015 , respectively. The following tables present the changes in fair value of our available-for-sale investments and derivatives classified as Level 3 as of December 31. 2016 Fixed Maturities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Foreign Credit Total Balance, beginning of period $ 220 $ 0 $ 26 $ 3 $ (192 ) $ 1 $ 58 Realized investment gains (losses) included 0 0 0 0 194 1 195 Unrealized gains (losses) included in other 38 0 (1 ) 0 (22 ) 0 15 Purchases, issuances, sales and settlements: Purchases 0 16 0 0 0 0 16 Issuances 0 0 0 0 0 0 0 Sales 0 0 0 0 0 0 0 Settlements (60 ) 0 0 0 (1 ) 0 (61 ) Transfers into Level 3 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 Balance, end of period $ 198 $ 16 $ 25 $ 3 $ (21 ) $ 2 $ 223 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 194 $ 1 $ 195 (1) Derivative assets and liabilities are presented net 2015 Fixed Maturities Perpetual Equity Derivatives (1) (In millions) Mortgage- Banks/ Banks/ Foreign Credit Total Balance, beginning of period $ 223 $ 26 $ 149 $ 3 $ (212 ) $ 0 $ 189 Realized investment gains (losses) included in 0 0 0 0 (15 ) 1 (14 ) Unrealized gains (losses) included in other (1 ) 0 (2 ) 0 (1 ) 0 (4 ) Purchases, issuances, sales and settlements: Purchases 0 0 0 0 0 0 0 Issuances 0 0 0 0 0 0 0 Sales 0 0 (147 ) 0 0 0 (147 ) Settlements (2 ) 0 0 0 36 0 34 Transfers into Level 3 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 Balance, end of period $ 220 $ 26 $ 0 $ 3 $ (192 ) $ 1 $ 58 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ (15 ) $ 1 $ (14 ) (1) Derivative assets and liabilities are presented net Level 3 Significant Unobservable Input Sensitivity The following tables summarize the significant unobservable inputs used in the valuation of our Level 3 available-for-sale investments and derivatives as of December 31. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments. 2016 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturities: Mortgage- and asset-backed securities $ 198 Consensus pricing Offered quotes N/A (d) Public utilities 16 Discounted cash flow Historical volatility N/A (d) Banks/financial institutions 25 Consensus pricing Offered quotes N/A (d) Equity securities 3 Net asset value Offered quotes $1 - $701 ($8) Other assets: Foreign currency swaps 16 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 17 - 172 bps Foreign exchange rates 21.47% (c) 29 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 16 - 88 bps 80 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) Foreign exchange rates 21.47% (c) Credit default swaps 2 Discounted cash flow Base correlation 52.18% - 56.07% (e) CDS spreads 54 bps Recovery rate 36.69% Total assets $ 369 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate (d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices 2016 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Liabilities: Foreign currency swaps $ 113 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 17 - 172 bps Foreign exchange rates 21.47% (c) 23 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 24 - 216 bps 10 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) Foreign exchange rates 21.47% (c) Total liabilities $ 146 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate 2015 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturities: Mortgage- and asset-backed securities $ 220 Consensus pricing Offered quotes N/A (d) Banks/financial institutions 26 Consensus pricing Offered quotes N/A (d) Equity securities 3 Net asset value Offered quotes $1-$677 ($7) Other assets: Foreign currency swaps 7 Discounted cash flow Interest rates (USD) 2.20% - 2.62% (a) Interest rates (JPY) .42% - 1.22% (b) CDS spreads 32 - 147 bps Foreign exchange rates 20.05% (c) 94 Discounted cash flow Interest rates (USD) 2.20% - 2.62% (a) Interest rates (JPY) .42% - 1.22% (b) Foreign exchange rates 20.05% (c) Credit default swaps 1 Discounted cash flow Base correlation 53.26% - 58.40% (e) CDS spreads 123 bps Recovery rate 36.87% Total assets $ 351 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate (d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices 2015 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Liabilities: Foreign currency swaps $ 158 Discounted cash flow Interest rates (USD) 2.20% - 2.62% (a) Interest rates (JPY) .42% - 1.22% (b) CDS spreads 32 - 147 bps Foreign exchange rates 20.05% (c) 120 Discounted cash flow Interest rates (USD) 2.20% - 2.62% (a) Interest rates (JPY) .42% - 1.22% (b) CDS spreads 35 - 213 bps 15 Discounted cash flow Interest rates (USD) 2.20% - 2.62% (a) Interest rates (JPY) .42% - 1.22% (b) Foreign exchange rates 20.05% (c) Total liabilities $ 293 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate The following is a discussion of the significant unobservable inputs or valuation technique used in determining the fair value of securities and derivatives classified as Level 3. Net Asset Value We hold certain unlisted equity securities whose fair value is derived based on the financial statements published by the investee. These securities do not trade on an active market and the valuations derived are dependent on the availability of timely financial reporting of the investee. Net asset value is an unobservable input in the determination of fair value of equity securities. Offered Quotes In circumstances where our valuation model price is overridden because it implies a value that is not consistent with current market conditions, we will solicit bids from a limited number of brokers. We also receive unadjusted prices from brokers for our mortgage and asset-backed securities. These quotes are non-binding but are reflective of valuation best estimates at that particular point in time. Offered quotes are an unobservable input in the determination of fair value of mortgage- and asset-backed securities, certain banks/financial institutions, certain other corporate, and equity securities investments. Interest Rates, CDS Spreads, Foreign Exchange Rates The significant drivers of the valuation of the interest and foreign exchange swaps are interest rates, foreign exchange rates and CDS spreads. Our swaps have long maturities that increase the sensitivity of the swaps to interest rate fluctuations. Since most of our yen-denominated cross currency swaps are in a net liability position, an increase in interest rates will decrease the liabilities and increase the value of the swap. Foreign exchange swaps also have a lump-sum final settlement of foreign exchange principal receivables at the termination of the swap. An increase in yen interest rates will decrease the value of the final settlement foreign exchange receivables and decrease the value of the swap, and an increase in U.S. dollar interest rates increase the swap value. A similar sensitivity pattern is observed for the foreign exchange rates. When the spot U.S. dollar/Japanese yen (USD/JPY) foreign exchange rate decreases and the swap is receiving a final exchange payment in JPY, the swap value will increase due to the appreciation of the JPY. Most of our swaps are designed to receive payments in JPY at the termination and will thus be impacted by the USD/JPY foreign exchange rate in this way. In cases where there is no final foreign exchange receivable in JPY and we are paying JPY as interest payments and receiving USD, a decrease in the foreign exchange rate will lead to a decrease in the swap value. The extinguisher feature in most of our swaps results in a cessation of cash flows and no further payments between the parties to the swap in the event of a default on the referenced or underlying collateral. To price this feature, we apply the survival probability of the referenced entity to the projected cash flows. The survival probability uses the CDS spreads and recovery rates to adjust the present value of the cash flows. For extinguisher swaps with positive values, an increase in CDS spreads decreases the likelihood of receiving the final exchange payments and reduces the value of the swap. Due to the long duration of these swaps and the need to extrapolate from short-term observable data to derive and measure long-term inputs, certain inputs, assumptions and judgments are required to value future cash flows that cannot be corroborated by current inputs or current observable market data. Interest rates, CDS spreads, and foreign exchange rates are unobservable inputs in the determination of fair value of foreign currency swaps. Base Correlations, CDS Spreads, Recovery Rates Our remaining CDO is a tranche on a basket of single-name credit default swaps. The risk in this synthetic CDO comes from the single-name CDS risk and the correlations between the single names. The valuation of synthetic CDOs is dependent on the calibration of market prices for interest rates, single name CDS default probabilities and base correlation using financial modeling tools. Since there is limited or no observable data available for this tranche, the base correlations must be obtained from commonly traded market tranches such as the CDX and iTraxx indices. From the historical prices of these indices, base correlations can be obtained to develop a pricing curve of CDOs with different seniorities. Since the reference entities of the market indices do not match those in the portfolio underlying the synthetic CDO to be valued, several processing steps are taken to map the CDO in our portfolio to the indices. With the base correlation determined and the appropriate spreads selected, a valuation is calculated. An increase in the CDS spreads in the underlying portfolio leads to a decrease in the value due to higher probability of defaults and losses. The impact on the valuation due to base correlation depends on a number of factors, including the riskiness between market tranches and the modeled tranche based on our portfolio and the equivalence between detachment points in these tranches. Generally speaking, an increase in base correlation will decrease the value of the senior tranches while increasing the value of junior tranches. This may result in a positive or negative value change. The CDO tranche in our portfolio is a senior mezzanine tranche and, due to the low level of credit support for this type of tranche, exhibits equity-like behavior. As a result, an increase in recovery rates tends to cause its value to decrease. Base correlations, CDS spreads, and recovery rates are unobservable inputs in the determination of fair value of credit default swaps. For additional information on our investments and financial instruments, see the accompanying Notes 1, 3 and 4. |
DEFERRED POLICY ACQUISITION COS
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES | DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES Consolidated policy acquisition costs deferred were $1.4 billion in 2016 , compared with $1.3 billion in 2015 and 2014 . The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31. 2016 2015 (In millions) Japan U.S. Japan U.S. Deferred policy acquisition costs: Balance, beginning of year $ 5,370 $ 3,141 $ 5,211 $ 3,062 Capitalization 864 583 738 578 Amortization (644 ) (497 ) (578 ) (488 ) Foreign currency translation and other 175 1 (1 ) (11 ) Balance, end of year $ 5,765 $ 3,228 $ 5,370 $ 3,141 Commissions deferred as a percentage of total acquisition costs deferred were 74% in 2016 and 2015 , compared with 77% in 2014 . Personnel, compensation and benefit expenses as a percentage of insurance expenses were 53% in 2016 , compared with 52% in 2015 and 2014 . Advertising expense, which is included in insurance expenses in the consolidated statements of earnings, was as follows for the years ended December 31: (In millions) 2016 2015 2014 Advertising expense: Aflac Japan $ 100 $ 82 $ 103 Aflac U.S. 124 129 126 Total advertising expense $ 224 $ 211 $ 229 Depreciation and other amortization expenses, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31: (In millions) 2016 2015 2014 Depreciation expense $ 48 $ 44 $ 47 Other amortization expense 6 6 8 Total depreciation and other amortization expense $ 54 $ 50 $ 55 Lease and rental expense, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31: (In millions) 2016 2015 2014 Lease and rental expense: Aflac Japan $ 53 $ 46 $ 52 Aflac U.S. 21 18 15 Other 1 1 1 Total lease and rental expense $ 75 $ 65 $ 68 |
POLICY LIABILITIES
POLICY LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Insurance Loss Reserves [Abstract] | |
POLICY LIABILITIES | POLICY LIABILITIES Policy liabilities consist of future policy benefits, unpaid policy claims, unearned premiums, and other policyholders' funds, which accounted for 81% , 4% , 8% and 7% of total policy liabilities at December 31, 2016 , respectively. We regularly review the adequacy of our policy liabilities in total and by component. The liability for future policy benefits as of December 31 consisted of the following: Liability Amounts Interest Rates (In millions) Policy 2016 2015 Year of In 20 Health insurance: Japan: 1992 - 2016 $ 8,912 $ 7,633 1.0 - 2.5 % 1.0 - 2.5 % 1974 - 2013 1,118 1,078 2.7 - 2.75 2.25 - 2.75 1998 - 2016 11,687 11,008 3.0 3.0 1997 - 1999 2,485 2,435 3.5 3.5 1994 - 1996 3,069 2,998 4.0 - 4.5 4.0 - 4.5 1987 - 1994 14,372 14,161 5.5 5.5 1985 - 1991 1,871 1,868 5.25 - 6.75 5.25 - 5.5 1978 - 1984 2,134 2,163 6.5 5.5 U.S.: 2013 - 2016 75 57 3.0 - 3.5 3.0 - 3.5 2012 - 2016 1,062 794 3.75 3.75 2011 319 300 4.75 4.75 2005 - 2010 3,004 2,986 5.5 5.5 1988 - 2004 669 687 8.0 6.0 1986 - 2004 1,265 1,276 6.0 6.0 1981 - 1986 166 174 6.5 - 7.0 5.5 - 6.5 1998 - 2004 1,295 1,279 7.0 7.0 Other 19 21 Intercompany eliminations: 2015 (630 ) (1) (646 ) (1) 2.0 2.0 Life insurance: Japan: 2001 - 2016 7,255 5,441 1.0 - 1.85 1.0 - 1.85 2011 - 2016 4,151 3,226 2.0 2.0 2009 - 2011 2,861 2,332 2.25 2.25 1992 - 2006 5 5 2.19 1.55 2005 - 2011 1,488 1,330 2.5 2.5 1985 - 2006 2,007 1,962 2.7 2.25 2007 - 2011 1,220 1,105 2.75 2.75 1999 - 2011 2,102 1,988 3.0 3.0 1996 - 2009 657 635 3.5 3.5 1994 - 1996 897 877 4.0 - 4.5 4.0 - 4.5 U.S.: 1956 - 2016 571 514 3.5 - 6.0 3.5 - 6.0 Total $ 76,106 $ 69,687 (1) Elimination entry necessary due to recapture of a portion of policy liabilities ceded externally, as a result of the reinsurance retrocession transaction as described in Note 8 of the Notes to the Consolidated Financial Statements The weighted-average interest rates reflected in the consolidated statements of earnings for future policy benefits for Japanese policies were 3.5% in 2016 , compared with 3.6% in 2015 and 3.8% in 2014 ; and for U.S. policies, 5.5% in 2016 , compared with 5.6% in 2015 and 5.7% in 2014 . Changes in the liability for unpaid policy claims were as follows for the years ended December 31: (In millions) 2016 2015 2014 Unpaid supplemental health claims, beginning of year $ 3,548 $ 3,412 $ 3,537 Less reinsurance recoverables 26 7 9 Net balance, beginning of year 3,522 3,405 3,528 Add claims incurred during the year related to: Current year 7,037 6,416 6,866 Prior years (465 ) (353 ) (301 ) Total incurred 6,572 6,063 6,565 Less claims paid during the year on claims incurred during: Current year 4,613 4,227 4,532 Prior years 1,865 1,718 1,873 Total paid 6,478 5,945 6,405 Effect of foreign exchange rate changes on unpaid claims 64 (1 ) (283 ) Net balance, end of year 3,680 3,522 3,405 Add reinsurance recoverables 27 26 7 Unpaid supplemental health claims, end of year 3,707 3,548 3,412 Unpaid life claims, end of year 338 254 218 Total liability for unpaid policy claims $ 4,045 $ 3,802 $ 3,630 Total incurred claims increased from 2015 to 2016 partially due to the impact of foreign exchange rates as well as normal increases in inforce and policyholder aging. The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates, primarily in our lines of business in Japan. As of December 31, 2016 and 2015 , unearned premiums consisted primarily of discounted advance premiums on deposit. Discounted advance premiums are premiums on deposit from policyholders in conjunction with their purchase of certain Aflac Japan limited-pay insurance products. These advanced premiums are deferred upon collection and recognized as premium revenue over the contractual premium payment period. These advanced premiums represented 76% of the December 31, 2016 and 77% of the December 31, 2015 unearned premiums balances. As of December 31, 2016 and 2015 , the largest component of the other policyholders' funds liability is our annuity line of business in Aflac Japan. Our annuities have fixed benefits and premiums. These annuities represented 98% of both the December 31, 2016 and 2015 other policyholders' funds liability. |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE We enter into fixed quota-share coinsurance agreements with other companies in the normal course of business. For each of our reinsurance agreements, we determine whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and benefits are reported net of insurance ceded. Effective March 31, 2015, we entered into a coinsurance transaction whereby we ceded 30.0% of the sickness hospital benefit of one of Aflac Japan’s closed in-force blocks of business. We have an agreement for a $90 million letter of credit as collateral for this reinsurance transaction (see Note 13 for additional information). Effective April 1, 2015, we entered into a retrocession coinsurance transaction whereby we assumed 27.0% of the sickness hospital benefit of one of Aflac Japan’s closed in-force blocks of business through our subsidiary CAIC. Effective October 1, 2014 and September 30, 2013, we entered into coinsurance reinsurance transactions whereby we ceded 16.7% and 33.3% , respectively, of the hospital benefit of one of Aflac Japan’s closed medical in-force blocks of business. Effective December 31, 2014, we entered into a retrocession coinsurance reinsurance transaction whereby we assumed 8.35% of the reinsured hospital benefit of one of Aflac Japan’s closed medical in-force blocks of business through our subsidiary CAIC. For our reinsurance transactions to date, we have recorded a deferred profit liability related to the reinsurance transactions. The remaining deferred profit liability of $870 million , as of December 31, 2016 , included in future policy benefits in the consolidated balance sheet, is being amortized into income over the expected lives of the policies. We also have recorded a reinsurance recoverable for reinsurance transactions, which is included in other assets in the consolidated balance sheet and had a remaining balance of $860 million and $805 million as of December 31, 2016 and 2015, respectively. The increase in the reinsurance recoverable balance was driven by two aggregating factors: yen strengthening and the growth in reserves related to the business that has been reinsured as the policies age. The spot yen/dollar exchange rate strengthened by approximately 4% and ceded reserves increased approximately 3% from December 31, 2015 to December 31, 2016. The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance for the years ended December 31. (In millions) 2016 2015 Direct premium income $ 19,592 $ 17,904 Ceded to other companies: Ceded Aflac Japan closed blocks (560 ) (481 ) Other (48 ) (39 ) Assumed from other companies: Retrocession activities 234 178 Other 7 8 Net premium income $ 19,225 $ 17,570 Direct benefits and claims $ 13,240 $ 12,041 Ceded benefits and change in reserves for future benefits: Ceded Aflac Japan closed blocks (509 ) (437 ) Eliminations 58 46 Other (38 ) (30 ) Assumed from other companies: Retrocession activities 222 167 Eliminations (58 ) (46 ) Other 4 5 Benefits and claims, net $ 12,919 $ 11,746 These reinsurance transactions are indemnity reinsurance that do not relieve us from our obligations to policyholders. In the event that the reinsurer is unable to meet their obligations, we remain liable for the reinsured claims. As a part of our capital contingency plan, we entered into a committed reinsurance facility agreement on December 1, 2015 in the amount of approximately 110 billion yen. This reinsurance facility agreement was renewed in 2016 and is effective until December 31, 2017. There are also additional commitment periods of a one-year duration each which are automatically extended unless notification is received from the reinsurer within 60 days prior to the expiration. The reinsurer can withdraw from the committed facility if Aflac‘s Standard and Poor's (S&P) rating drops below BBB-. As of December 31, 2016 , we have not executed a reinsurance treaty under this committed reinsurance facility. |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTES PAYABLE A summary of notes payable as of December 31 follows: (In millions) 2016 2015 2.65% senior notes due February 2017 $ 649 $ 651 2.40% senior notes due March 2020 547 546 4.00% senior notes due February 2022 348 348 3.625% senior notes due June 2023 696 696 3.625% senior notes due November 2024 745 744 3.25% senior notes due March 2025 445 445 2.875% senior notes due October 2026 298 0 6.90% senior notes due December 2039 220 393 6.45% senior notes due August 2040 254 445 4.00% senior notes due October 2046 394 0 5.50% subordinated debentures due September 2052 486 486 Yen-denominated Uridashi notes: 2.26% notes paid September 2016 (principal amount 8 billion yen) 0 66 Yen-denominated Samurai notes: 1.84% notes paid July 2016 (principal amount 15.8 billion yen) 0 131 Yen-denominated loans: Variable interest rate loan due September 2021 (.31% in 2016, principal amount 5.0 billion yen) 43 0 Variable interest rate loan due September 2023 (.46% in 2016, principal amount 25.0 billion yen) 214 0 Capitalized lease obligations payable through 2023 21 20 Total notes payable $ 5,360 $ 4,971 Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs. Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes. In September 2016, the Parent Company issued two series of senior notes totaling $700 million through a U.S. public debt offering. The first series, which totaled $300 million , bears interest at a fixed rate of 2.875% per annum, payable semi-annually and has a 10 -year maturity. The second series, which totaled $400 million , bears interest at a fixed rate of 4.00% per annum, payable semi-annually, and has a 30 -year maturity. In September 2016, the Parent Company entered into two series of senior unsecured term loan facilities totaling 30.0 billion yen. The first series, which totaled 5.0 billion yen, bears an interest rate per annum equal to the Tokyo interbank market rate (TIBOR), or alternate TIBOR, if applicable, plus the applicable TIBOR margin and has a five-year maturity. The applicable margin ranges between .20% and .60%, depending on the Parent Company's debt ratings as of the date of determination. The second series, which totaled 25.0 billion yen, bears an interest rate per annum equal to TIBOR, or alternate TIBOR, if applicable, plus the applicable TIBOR margin and has a seven-year maturity. The applicable margin ranges between .35% and .75%, depending on the Parent Company's debt ratings as of the date of determination. In March 2015, the Parent Company issued two series of senior notes totaling $1.0 billion through a U.S. public debt offering. The first series, which totaled $550 million , bears interest at a fixed rate of 2.40% per annum, payable semi-annually, and has a five -year maturity. The second series, which totaled $450 million , bears interest at a fixed rate of 3.25% per annum, payable semi-annually, and has a 10 -year maturity. We have entered into cross-currency swaps that convert the U.S. dollar-denominated principal and interest on the senior notes into yen-denominated obligations which results in lower nominal net interest rates on the debt. By entering into these cross-currency swaps, we economically converted our $550 million liability into a 67.0 billion yen liability and reduced the interest rate on this debt from 2.40% in dollars to .24% in yen, and we economically converted our $450 million liability into a 55.0 billion yen liability and reduced the interest rate on this debt from 3.25% in dollars to .82% in yen. In November 2014, the Parent Company issued $750 million of senior notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 3.625% per annum, payable semi-annually, and have a 10 -year maturity. These notes are redeemable at our option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the treasury rate plus 20 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date. We entered into cross-currency interest rate swaps to reduce interest expense by converting the U.S. dollar-denominated principal and interest on the senior notes we issued into yen-denominated obligations. By entering into the swaps, we economically converted our $750 million liability into an 85.3 billion yen liability and reduced the interest rate on this debt from 3.625% in dollars to 1.00% in yen. In June 2013, the Parent Company issued $700 million of senior notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 3.625% per annum, payable semi-annually, and have a 10 -year maturity. These notes are redeemable at our option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the treasury rate plus 20 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date. We entered into cross-currency interest rate swaps to reduce interest expense by converting the U.S. dollar-denominated principal and interest on the senior notes we issued into yen-denominated obligations. By entering into these swaps, we economically converted our $700 million liability into a 69.8 billion yen liability and reduced the interest rate on this debt from 3.625% in dollars to 1.50% in yen. In September 2012, the Parent Company issued $450 million of subordinated debentures through a U.S. public debt offering. The debentures bear interest at a fixed rate of 5.50% per annum, payable quarterly, and have a 40 -year maturity. In five years, on or after September 26, 2017 , we may redeem the debentures, in whole or in part, at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption; provided that if the debentures are not redeemed in whole, at least $25 million aggregate principal amount of the debentures must remain outstanding after giving effect to such redemption. The debentures may only be redeemed prior to September 26, 2017 , in whole but not in part, upon the occurrence of certain tax events or certain rating agency events, as specified in the indenture governing the terms of the debentures. We entered into cross-currency interest rate swaps to convert the U.S. dollar-denominated principal and interest on the subordinated debentures we issued into yen-denominated obligations. By entering into these swaps, we economically converted our $450 million liability into a 35.3 billion yen liability and reduced the interest rate on this debt from 5.50% in dollars to 4.41% in yen. The swaps will expire after the initial five -year non-callable period for the debentures. In October 2012 , the underwriters exercised their option, pursuant to the underwriting agreement, to purchase an additional $50 million principal amount of the debentures discussed above. We entered into a cross-currency interest rate swap to economically convert this $50 million liability into a 3.9 billion yen liability and reduce the interest rate from 5.50% in dollars to 4.42% in yen. The swap will expire after the initial five -year non-callable period for the debentures. In February 2012, the Parent Company issued two series of senior notes totaling $750 million through a U.S. public debt offering. The first series, which totaled $400 million , bears interest at a fixed rate of 2.65% per annum, payable semiannually, and has a five -year maturity. The second series, which totaled $350 million , bears interest at a fixed rate of 4.00% per annum, payable semiannually, and has a 10 -year maturity. These notes are redeemable at our option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the principal amount of the notes or (ii) the present value of the remaining scheduled payments of principal and interest to be redeemed, discounted to the redemption date, plus accrued and unpaid interest. We entered into cross-currency interest rate swaps to reduce interest expense by converting the U.S. dollar-denominated principal and interest on the senior notes we issued into yen-denominated obligations. By entering into these swaps, we economically converted our $400 million liability into a 30.9 billion yen liability and reduced the interest rate on this debt from 2.65% in dollars to 1.22% in yen. We also economically converted our $350 million liability into a 27.0 billion yen liability and reduced the interest rate on this debt from 4.00% in dollars to 2.07% in yen. In July 2012, the Parent Company issued $250 million of senior notes that are an addition to the original first series of senior notes issued in February 2012. These notes have a five -year maturity and a fixed rate of 2.65% per annum, payable semiannually. In 2010 and 2009, we issued senior notes through U.S. public debt offerings; the details of these notes are as follows. In August 2010, we issued $450 million of senior notes that have a 30 -year maturity. In December 2009, we issued $400 million of senior notes that have a 30 -year maturity. These senior notes pay interest semiannually and are redeemable at our option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the principal amount of the notes or (ii) the present value of the remaining scheduled payments of principal and interest to be redeemed, discounted to the redemption date, plus accrued and unpaid interest. In December 2016, the Parent Company completed a tender offer in which it extinguished $176 million principal of its 6.90% senior notes due 2039 and $193 million principal of its 6.45% senior notes due 2040. The pretax loss due to the early redemption of these notes was $137 million . In September 2016, we extinguished 8.0 billion yen of 2.26% fixed rate Uridashi notes upon their maturity and in July 2016, we extinguished 15.8 billion yen of 1.84% fixed rate Samurai notes upon their maturity. For our yen-denominated notes and loans, the principal amount as stated in dollar terms will fluctuate from period to period due to changes in the yen/dollar exchange rate. We have designated the majority of our yen-denominated notes payable as a nonderivative hedge of the foreign currency exposure of our investment in Aflac Japan. The aggregate contractual maturities of notes payable during each of the years after December 31, 2016 , are as follows: (In millions) Long-term Capitalized Total 2017 $ 650 $ 6 $ 656 2018 0 6 6 2019 0 5 5 2020 550 2 552 2021 43 1 44 Thereafter 4,145 1 4,146 Total $ 5,388 $ 21 $ 5,409 In October 2016, the Parent Company and Aflac renewed a 364 -day uncommitted bilateral line of credit that provides for borrowings in the amount of $100 million . Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period. There are no related facility fees, upfront expenses or financial covenant requirements. Borrowings under this credit agreement may be used for general corporate purposes. Borrowings under the financing agreement will mature no later than three months after the last drawdown date of October 14, 2017. As of December 31, 2016 , we did not have any borrowings outstanding under our $100 million credit agreement. In March 2016, the Parent Company entered into a three -year senior unsecured revolving credit facility agreement with a syndicate of financial institutions that provides for borrowings of up to 100.0 billion yen on a revolving basis. Borrowings bear interest at a rate per annum equal to TIBOR plus, at our option, either (a) the applicable TIBOR margin during the period from the closing date to the commitment termination date or (b) the applicable TIBOR margin during the term out period. The applicable margin ranges between .35% and .75% during the period from the closing date to the commitment termination date and .70% and 1.50% during the term out period, depending on the Parent Company’s debt ratings as of the date of determination. In addition, the Parent Company is required to pay a facility fee on the commitments ranging between .30% and .50% , also based on the Parent Company’s debt ratings as of the date of determination. Borrowings under this credit agreement may be used for general corporate purposes, including a capital contingency plan for the operations of the Parent Company, and will expire on the earlier of (a) March 31, 2019, or (b) the date the commitments are terminated pursuant to an event of default, as such term is defined in the credit agreement. The credit facility requires compliance with certain financial covenants on a quarterly basis. As of December 31, 2016 , we did not have any borrowings outstanding under our 100.0 billion yen revolving credit agreement. The Parent Company and Aflac have a five -year senior unsecured revolving credit facility agreement with a syndicate of financial institutions that provides for borrowings of up to 55.0 billion yen or the equivalent of yen in U.S. dollars on a revolving basis. This credit agreement provides for borrowings in Japanese yen or the equivalent of Japanese yen in U.S. dollars on a revolving basis. Borrowings bear interest at a rate per annum equal to, at our option, either (a) a eurocurrency rate determined by reference to the LIBOR for the interest period relevant to such borrowing adjusted for certain additional costs or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus ½ of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate and (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin. The applicable margin ranges between .79% and 1.275% for eurocurrency rate borrowings and 0.0% and .275% for base rate borrowings, depending on the Parent Company’s debt ratings as of the date of determination. In addition, the Parent Company and Aflac are required to pay a facility fee on the commitments ranging between .085% and .225% , also based on the Parent Company’s debt ratings as of the date of determination. Borrowings under the amended and restated credit facility may be used for general corporate purposes, including a capital contingency plan for the operations of the Parent Company and Aflac. The amended and restated credit facility requires compliance with certain financial covenants on a quarterly basis and will expire on the earlier of (a) September 18, 2020, or (b) the date the commitments are terminated pursuant to an event of default, as such term is defined in the credit agreement. As of December 31, 2016 , we did not have any borrowings outstanding under our 55.0 billion yen revolving credit agreement. The Parent Company and Aflac have an uncommitted bilateral line of credit with a third party that provides for borrowings in the amount of $50 million . Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period. There are no related facility fees, upfront expenses or financial covenant requirements. Borrowings under this credit agreement may be used for general corporate purposes. As of December 31, 2016 , we did not have any borrowings outstanding under our $50 million credit agreement. We were in compliance with all of the covenants of our notes payable and lines of credit at December 31, 2016 . No events of default or defaults occurred during 2016 and 2015 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense (benefit) applicable to pretax earnings for the years ended December 31 were as follows: (In millions) Foreign U.S. Total 2016: Current $ 650 $ 234 $ 884 Deferred 136 388 524 Total income tax expense $ 786 $ 622 $ 1,408 2015: Current $ 1,063 $ 225 $ 1,288 Deferred 42 (1 ) 41 Total income tax expense $ 1,105 $ 224 $ 1,329 2014: Current $ 995 $ 84 $ 1,079 Deferred 125 336 461 Total income tax expense $ 1,120 $ 420 $ 1,540 The Japan income tax rate for the fiscal year 2014 was 33.3% . The rate was reduced to 30.8% for the fiscal year 2015 and reduced to 28.8% for the fiscal year 2016. Income tax expense in the accompanying statements of earnings varies from the amount computed by applying the expected U.S. tax rate of 35% to pretax earnings. The principal reasons for the differences and the related tax effects for the years ended December 31 were as follows: (In millions) 2016 2015 2014 Income taxes based on U.S. statutory rates $ 1,424 $ 1,352 $ 1,572 Utilization of foreign tax credit (30 ) (27 ) (32 ) Nondeductible expenses 8 3 5 Other, net 6 1 (5 ) Income tax expense $ 1,408 $ 1,329 $ 1,540 Total income tax expense for the years ended December 31 was allocated as follows: (In millions) 2016 2015 2014 Statements of earnings $ 1,408 $ 1,329 $ 1,540 Other comprehensive income (loss): Unrealized foreign currency translation gains (losses) during period 70 16 (419 ) Unrealized gains (losses) on investment securities: Unrealized holding gains (losses) on investment 962 (931 ) 2,237 Reclassification adjustment for realized (gains) losses 18 21 19 Unrealized gains (losses) on derivatives during period 1 0 (3 ) Pension liability adjustment during period (16 ) (7 ) (31 ) Total income tax expense (benefit) related to items of 1,035 (901 ) 1,803 Additional paid-in capital (exercise of stock options) (10 ) 4 (7 ) Total income taxes $ 2,433 $ 432 $ 3,336 The income tax effects of the temporary differences that gave rise to deferred income tax assets and liabilities as of December 31 were as follows: (In millions) 2016 2015 Deferred income tax liabilities: Deferred policy acquisition costs $ 2,439 $ 2,282 Unrealized gains on investment securities 2,636 1,684 Premiums receivable 111 139 Policy benefit reserves 1,638 1,313 Depreciation 70 61 Other 0 0 Total deferred income tax liabilities 6,894 5,479 Deferred income tax assets: Other basis differences in investment securities 1,167 1,422 Unfunded retirement benefits 13 15 Other accrued expenses 11 7 Policy and contract claims 146 113 Foreign currency loss on Japan branch 185 208 Deferred compensation 210 181 Capital loss carryforwards 3 0 Other 103 95 Total deferred income tax assets 1,838 2,041 Net deferred income tax liability 5,056 3,438 Current income tax liability 331 902 Total income tax liability $ 5,387 $ 4,340 Based upon a review of the Company's anticipated future taxable income, and including all other available evidence, both positive and negative, the Company's management has concluded that it is more likely than not that the net deferred tax assets will be realized. Under U.S. income tax rules, only 35% of non-life operating losses can be offset against life insurance taxable income each year . For current U.S. income tax purposes, there were no unused operating loss carryforwards available to offset against future taxable income. The Company has capital loss carryforwards of $9 million available to offset capital gains which expire in 2021. The Company files federal income tax returns in the United States and Japan as well as state or prefecture income tax returns in various jurisdictions in the two countries. The Company is currently under audit by the State of Illinois for tax years 2006-2012. There are currently no other open Federal, State, or local U.S. income tax audits. U.S. federal income tax returns for years before 2011 are no longer subject to examination. The Company is currently under a corporate income tax audit in Japan by the National Tax Agency (NTA) for tax years 2012-2015. Japan corporate income tax returns for years before 2012 are no longer subject to examination. Management believes it has established adequate tax liabilities and final resolution of all open audits is not expected to have a material impact on the Company's consolidated financial statements. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31: (In millions) 2016 2015 Balance, beginning of year $ 264 $ 309 Additions for tax positions of prior years 33 0 Reductions for tax positions of prior years (3 ) (45 ) Balance, end of year $ 294 $ 264 Included in the balance of the liability for unrecognized tax benefits at December 31, 2016 , are $293 million of tax positions for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility, compared with $261 million at December 31, 2015 . Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate, but would accelerate the payment of cash to the taxing authority to an earlier period. The Company has accrued approximately $1 million as of December 31, 2016 , for permanent uncertainties, which if reversed would not have a material effect on the annual effective rate. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. We recognized approximately $13 million in interest and penalties in 2016 , compared with $11 million in 2015 and 2014 . The Company has accrued approximately $26 million for the payment of interest and penalties as of December 31, 2016 , compared with $22 million a year ago. As of December 31, 2016 , there were no material uncertain tax positions for which the total amounts of unrecognized tax benefits will significantly increase or decrease within the next 12 months. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY The following table is a reconciliation of the number of shares of the Company's common stock for the years ended December 31. (In thousands of shares) 2016 2015 2014 Common stock - issued: Balance, beginning of period 669,723 668,132 667,046 Exercise of stock options and issuance of restricted shares 1,526 1,591 1,086 Balance, end of period 671,249 669,723 668,132 Treasury stock: Balance, beginning of period 245,343 225,687 207,633 Purchases of treasury stock: Open market 21,618 21,179 19,660 Other 330 247 157 Dispositions of treasury stock: Shares issued to AFL Stock Plan (1,064) (1,209) (1,251) Exercise of stock options (683) (465) (391) Other (105) (96) (121) Balance, end of period 265,439 245,343 225,687 Shares outstanding, end of period 405,810 424,380 442,445 Outstanding share-based awards are excluded from the calculation of weighted-average shares used in the computation of basic EPS. The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share at December 31: (In thousands) 2016 2015 2014 Anti-dilutive share-based awards 911 1,862 1,215 The weighted-average shares used in calculating earnings per share for the years ended December 31 were as follows: (In thousands of shares) 2016 2015 2014 Weighted-average outstanding shares used for calculating basic EPS 411,471 430,654 451,204 Dilutive effect of share-based awards 2,450 2,518 2,796 Weighted-average outstanding shares used for calculating diluted EPS 413,921 433,172 454,000 Share Repurchase Program: During 2016 , we purchased 21.6 million shares of our common stock in the open market, compared with 21.2 million shares in 2015 and 19.7 million shares in 2014 . As of December 31, 2016 , a remaining balance of 26.8 million shares of our common stock was available for purchase under share repurchase authorizations by our board of directors. Voting Rights: In accordance with the Parent Company's articles of incorporation, shares of common stock are generally entitled to one vote per share until they have been held by the same beneficial owner for a continuous period of 48 months , at which time they become entitled to 10 votes per share. Reclassifications from Accumulated Other Comprehensive Income The table below is a reconciliation of accumulated other comprehensive income by component for the years ended December 31. Changes in Accumulated Other Comprehensive Income 2016 (In millions) Unrealized Foreign Unrealized Unrealized Pension Total Balance, beginning of period $ (2,196 ) $ 2,986 $ (26 ) $ (139 ) $ 625 Other comprehensive 213 1,854 2 (32 ) 2,037 Amounts reclassified from 0 (35 ) 0 3 (32 ) Net current-period other 213 1,819 2 (29 ) 2,005 Balance, end of period $ (1,983 ) $ 4,805 $ (24 ) $ (168 ) $ 2,630 All amounts in the table above are net of tax. 2015 (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (2,541 ) $ 4,672 $ (26 ) $ (126 ) $ 1,979 Other comprehensive 345 (1,646 ) 0 (13 ) (1,314 ) Amounts reclassified from 0 (40 ) 0 0 (40 ) Net current-period other 345 (1,686 ) 0 (13 ) (1,354 ) Balance, end of period $ (2,196 ) $ 2,986 $ (26 ) $ (139 ) $ 625 All amounts in the table above are net of tax. 2014 (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (1,505 ) $ 1,035 $ (12 ) $ (81 ) $ (563 ) Other comprehensive (1,036 ) 3,672 (14 ) (44 ) 2,578 Amounts reclassified from 0 (35 ) 0 (1 ) (36 ) Net current-period other (1,036 ) 3,637 (14 ) (45 ) 2,542 Balance, end of period $ (2,541 ) $ 4,672 $ (26 ) $ (126 ) $ 1,979 All amounts in the table above are net of tax. The table below summarizes the amounts reclassified from each component of accumulated other comprehensive income based on source for the years ended December 31. Reclassifications Out of Accumulated Other Comprehensive Income (In millions) 2016 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ 136 Sales and redemptions (83 ) Other-than-temporary impairment 53 Total before tax (18 ) Tax (expense) or benefit (1) $ 35 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (15 ) Acquisition and operating expenses (2) Prior service (cost) credit 11 Acquisition and operating expenses (2) 1 Tax (expense) or benefit (1) $ (3 ) Net of tax Total reclassifications for the period $ 32 Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). (In millions) 2015 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ 214 Sales and redemptions (153 ) Other-than-temporary impairment 61 Total before tax (21 ) Tax (expense) or benefit (1) $ 40 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (17 ) Acquisition and operating expenses (2) Prior service (cost) credit 17 Acquisition and operating expenses (2) 0 Tax (expense) or benefit (1) $ 0 Net of tax Total reclassifications for the period $ 40 Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). (In millions) 2014 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ 57 Sales and redemptions (3 ) Other-than-temporary impairment 54 Total before tax (19 ) Tax (expense) or benefit (1) $ 35 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (15 ) Acquisition and operating expenses (2) Prior service (cost) credit 17 Acquisition and operating expenses (2) (1 ) Tax (expense) or benefit (1) $ 1 Net of tax Total reclassifications for the period $ 36 Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION As of December 31, 2016 , the Company has outstanding share-based awards under two long-term incentive compensation plans. The first plan, which expired in February 2007, is a stock option plan which allowed grants for incentive stock options (ISOs) to employees and non-qualifying stock options (NQSOs) to employees and non-employee directors. The options have a term of 10 years. The exercise price of options granted under this plan is equal to the fair market value of a share of the Company's common stock at the date of grant. Options granted before the plan's expiration date remain outstanding in accordance with their terms. The second long-term incentive compensation plan allows awards to Company employees for ISOs, NQSOs, restricted stock, restricted stock units, and stock appreciation rights. Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights. The ISOs and NQSOs have a term of 10 years, and the share-based awards generally vest upon time-based conditions or time- and performance-based conditions. Time-based vesting generally occurs after three years. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. As of December 31, 2016 , approximately 8.8 million shares were available for future grants under this plan, and the only performance-based awards issued and outstanding were restricted stock awards. Share-based awards granted to U.S.-based grantees are settled with authorized but unissued Company stock, while those issued to Japan-based grantees are settled with treasury shares. The following table presents the impact of the expense recognized in connection with share-based awards for the periods ended December 31. (In millions, except for per-share amounts) 2016 2015 2014 Impact on earnings from continuing operations $ 68 $ 39 $ 41 Impact on earnings before income taxes 68 39 41 Impact on net earnings 46 27 28 Impact on net earnings per share: Basic $ .11 $ .06 $ .06 Diluted .11 .06 .06 We estimate the fair value of each stock option granted using the Black-Scholes-Merton multiple option approach. Expected volatility is based on historical periods generally commensurate with the estimated terms of the options. We use historical data to estimate option exercise and termination patterns within the model. Separate groups of employees that have similar historical exercise patterns are stratified and considered separately for valuation purposes. The expected term of options granted is derived from the output of our option model and represents the weighted-average period of time that options granted are expected to be outstanding. We base the risk-free interest rate on the Treasury note rate with a term comparable to that of the estimated term of the options. The weighted-average fair value of options at their grant date was $12.70 per share for 2016 , compared with $9.46 for 2015 and $16.24 in 2014 . The following table presents the assumptions used in valuing options granted during the years ended December 31. 2016 2015 2014 Expected term (years) 6.4 6.3 6.3 Expected volatility 27.0 % 20.0 % 30.0 % Annual forfeiture rate 3.2 2.8 2.7 Risk-free interest rate 2.2 2.0 2.8 Dividend yield 2.9 2.7 2.3 The following table summarizes stock option activity. (In thousands of shares) Stock Weighted-Average Outstanding at December 31, 2013 9,980 $ 47.03 Granted in 2014 678 61.81 Canceled in 2014 (115 ) 52.01 Exercised in 2014 (1,236 ) 41.04 Outstanding at December 31, 2014 9,307 48.84 Granted in 2015 855 61.47 Canceled in 2015 (231 ) 55.70 Exercised in 2015 (2,013 ) 45.15 Outstanding at December 31, 2015 7,918 50.94 Granted in 2016 664 61.39 Canceled in 2016 (181 ) 55.63 Exercised in 2016 (2,061 ) 48.91 Outstanding at December 31, 2016 6,340 $ 52.56 (In thousands of shares) 2016 2015 2014 Shares exercisable, end of year 4,493 6,085 7,497 The following table summarizes information about stock options outstanding and exercisable at December 31, 2016 . (In thousands of shares) Options Outstanding Options Exercisable Range of Stock Option Wgtd.-Avg. Wgtd.-Avg. Stock Option Wgtd.-Avg. $ 14.99 - $ 47.06 1,639 3.0 $ 36.38 1,639 $ 36.38 47.23 - 55.72 1,348 3.8 51.11 1,348 51.11 56.24 - 61.45 1,706 7.0 59.05 632 57.92 61.81 - 63.16 1,322 4.1 62.10 802 61.87 63.34 - 72.42 325 8.5 67.36 72 67.50 $ 14.99 - $ 72.42 6,340 4.8 $ 52.56 4,493 $ 48.88 The aggregate intrinsic value represents the difference between the exercise price of the stock options and the quoted closing common stock price of $69.60 as of December 31, 2016 , for those awards that have an exercise price currently below the closing price. As of December 31, 2016 , the aggregate intrinsic value of stock options outstanding was $108 million , with a weighted-average remaining term of 4.8 years. The aggregate intrinsic value of stock options exercisable at that same date was $93 million , with a weighted-average remaining term of 3.3 years. The following table summarizes stock option activity during the years ended December 31. (In millions) 2016 2015 2014 Total intrinsic value of options exercised $ 41 $ 36 $ 25 Cash received from options exercised 68 68 39 Tax benefit realized as a result of options exercised and 45 25 17 The value of restricted stock awards is based on the fair market value of our common stock at the date of grant. The following table summarizes restricted stock activity during the years ended December 31. (In thousands of shares) Shares Weighted-Average Restricted stock at December 31, 2013 1,671 $ 52.12 Granted in 2014 584 62.12 Canceled in 2014 (27 ) 52.66 Vested in 2014 (348 ) 56.95 Restricted stock at December 31, 2014 1,880 54.33 Granted in 2015 638 61.51 Canceled in 2015 (145 ) 57.52 Vested in 2015 (558 ) 48.41 Restricted stock at December 31, 2015 1,815 58.42 Granted in 2016 878 61.68 Canceled in 2016 (76 ) 60.65 Vested in 2016 (749 ) 53.68 Restricted stock at December 31, 2016 1,868 $ 61.76 As of December 31, 2016 , total compensation cost not yet recognized in our financial statements related to restricted stock awards was $33 million , of which $10 million ( 953 thousand shares) was related to restricted stock awards with a performance-based vesting condition. We expect to recognize these amounts over a weighted-average period of approximately 1.0 years. There are no other contractual terms covering restricted stock awards once vested. |
STATUTORY ACCOUNTING AND DIVIDE
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS | STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS Our insurance subsidiaries are required to report their results of operations and financial position to state insurance regulatory authorities on the basis of statutory accounting practices prescribed or permitted by such authorities. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. Aflac, the Company's most significant insurance subsidiary, reports statutory financial statements that are prepared on the basis of accounting practices prescribed or permitted by the Nebraska Department of Insurance (NDOI). The NDOI recognizes statutory accounting principles and practices prescribed or permitted by the state of Nebraska for determining and reporting the financial condition and results of operations of an insurance company, and for determining a company's solvency under Nebraska insurance law. The National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual (SAP) has been adopted by the state of Nebraska as a component of those prescribed or permitted practices. Additionally, the Director of the NDOI has the right to permit other specific practices which deviate from prescribed practices. Aflac has been given explicit permission by the Director of the NDOI for two such permitted practices. These permitted practices, which do not impact the calculation of net income on a statutory basis or prevent the triggering of a regulatory event in the Company's risk-based capital calculation, are as follows: • Aflac has reported as admitted assets the refundable lease deposits on the leases of commercial office space which house Aflac Japan's sales operations. These lease deposits are unique and part of the ordinary course of doing business in the country of Japan; these assets would be non-admitted under SAP. • Aflac entered into a reinsurance agreement effective March 31, 2015 with a then unauthorized reinsurer. The effective date of this agreement predated the effective date of Nebraska's Amended Credit for Reinsurance statute (44-416) allowing certified reinsurers and also predated the subsequent approval of the agreement's assuming reinsurer as a Certified Reinsurer, which occurred on August 30, 2015 and December 24, 2015, respectively. Aflac has obtained a permitted practice to recognize this treaty and counterparty as Certified Reinsurer for the purpose of determining the collateral required to receive reinsurance reserve credit. A reconciliation of Aflac's capital and surplus between SAP and practices permitted by the state of Nebraska is shown below: (In millions) 2016 2015 Capital and surplus, Nebraska state basis $ 11,221 $ 11,298 State Permitted Practice: Refundable lease deposits – Japan (40 ) (38 ) Reinsurance - Japan (764 ) (707 ) Capital and surplus, NAIC basis $ 10,417 $ 10,553 As of December 31, 2016 , Aflac's capital and surplus significantly exceeded the required company action level capital and surplus of $1.3 billion . As determined on a U.S. statutory accounting basis, Aflac's net income was $2.8 billion in 2016 , $2.3 billion in 2015 and $2.4 billion in 2014 . Aflac Japan must report its results of operations and financial position to the Japanese Financial Services Agency (FSA) on a Japanese regulatory accounting basis as prescribed by the FSA. Capital and surplus of the Japan branch, based on Japanese regulatory accounting practices, was $5.6 billion at December 31, 2016 , compared with $4.7 billion at December 31, 2015 . Japanese regulatory accounting practices differ in many respects from U.S. GAAP. Under Japanese regulatory accounting practices, policy acquisition costs are expensed immediately; policy benefit and claim reserving methods and assumptions are different; premium income is recognized on a cash basis; different consolidation criteria apply to VIEs; reinsurance is recognized on a different basis; and investments can have a separate accounting classification and treatment referred to as policy reserve matching bonds (PRM). The Parent Company depends on its subsidiaries for cash flow, primarily in the form of dividends and management fees. Consolidated retained earnings in the accompanying financial statements largely represent the undistributed earnings of our insurance subsidiary. Amounts available for dividends, management fees and other payments to the Parent Company by its insurance subsidiary may fluctuate due to different accounting methods required by regulatory authorities. These payments are also subject to various regulatory restrictions and approvals related to safeguarding the interests of insurance policyholders. Our insurance subsidiary must maintain adequate risk-based capital for U.S. regulatory authorities and our Japan branch must maintain adequate solvency margins for Japanese regulatory authorities. Additionally, the maximum amount of dividends that can be paid to the Parent Company by Aflac without prior approval of Nebraska's director of insurance is the greater of the net income from operations, which excludes net realized investment gains, for the previous year determined under statutory accounting principles, or 10% of statutory capital and surplus as of the previous year-end. Dividends declared by Aflac during 2017 in excess of $2.8 billion would require such approval. Aflac declared dividends of $2.0 billion during 2016 . A portion of Aflac Japan earnings, as determined on a Japanese regulatory accounting basis, can be repatriated each year to Aflac U.S. after complying with solvency margin provisions and satisfying various conditions imposed by Japanese regulatory authorities for protecting policyholders. Profit repatriations to the United States can fluctuate due to changes in the amounts of Japanese regulatory earnings. Among other items, factors affecting regulatory earnings include Japanese regulatory accounting practices and fluctuations in currency translation of Aflac Japan's U.S. dollar-denominated investments and related investment income into yen. Profits repatriated by Aflac Japan to Aflac U.S. were as follows for the years ended December 31: In Dollars In Yen (In millions of dollars and billions of yen) 2016 2015 2014 2016 2015 2014 Profit repatriation $ 1,286 $ 2,139 $ 1,704 138.5 259.0 181.4 We entered into foreign exchange forwards and options as part of an economic hedge on foreign exchange risk on 114.0 billion yen of profit repatriation received in 2016 , resulting in $64 million less funds received when the yen were exchanged into dollars. As of December 31, 2016 , we had foreign exchange forwards and options as part of a hedging strategy on 122.6 billion yen of future profit repatriation. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS Pension and Other Postretirement Plans We have funded defined benefit plans in Japan and the United States, however the U.S. plan was frozen to new participants effective October 1, 2013. We also maintain non-qualified, unfunded supplemental retirement plans that provide defined pension benefits in excess of limits imposed by federal tax law for certain Japanese, U.S. and former employees, however the U.S. plan was frozen to new participants effective January 1, 2015. U.S. employees who are not participants in the defined benefit plan receive a nonelective 401(k) employer contribution. We provide certain health care benefits for eligible U.S. retired employees, their beneficiaries and covered dependents ("other postretirement benefits"). The health care plan is contributory and unfunded. On October 1, 2013, a change was made to postretirement medical benefits to limit the eligibility for the benefits beginning January 1, 2014 to include the following: (1) active employees whose age plus service, in years, equaled or exceeded 80 (rule of 80 ); (2) active employees who were age 55 or older and had met the 15 years of service requirement; (3) active employees who would meet the rule of 80 in the next five years ; (4) active employees who were age 55 or older and who would meet the 15 years of service requirement within the next five years ; and (5) current retirees. Effective October 1, 2013, this change was accounted for as a negative plan amendment and resulted in a reduction to the postretirement benefit obligation of approximately $51 million , with an offset to accumulated other comprehensive income (AOCI). Starting in the fourth quarter of 2013, this reduction is being amortized as a reduction to net periodic benefit cost over three years. The postretirement plan obligation was remeasured using a discount rate of 4.75% as of October 1, 2013. For certain employees and former employees, additional coverage is provided for all medical expenses for life. Information with respect to our benefit plans' assets and obligations as of December 31 was as follows: Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2016 2015 2016 2015 2016 2015 Projected benefit obligation: Benefit obligation, beginning of year $ 276 $ 267 $ 735 $ 717 $ 40 $ 44 Service cost 16 15 23 23 1 1 Interest cost 9 1 29 18 2 2 Actuarial (gain) loss 29 0 29 (6 ) (4 ) (5 ) Benefits and expenses paid (8 ) (7 ) (18 ) (17 ) (2 ) (2 ) Effect of foreign exchange 7 0 0 0 0 0 Benefit obligation, end of year 329 276 798 735 37 40 Plan assets: Fair value of plan assets, 198 183 336 341 0 0 Actual return on plan assets 9 1 24 (6 ) 0 0 Employer contributions 25 21 17 18 2 2 Benefits and expenses paid (8 ) (7 ) (18 ) (17 ) (2 ) (2 ) Effect of foreign exchange 5 0 0 0 0 0 Fair value of plan assets, end of year 229 198 359 336 0 0 Funded status of the plans (1) $ (100 ) $ (78 ) $ (439 ) $ (399 ) $ (37 ) $ (40 ) Amounts recognized in accumulated other Net actuarial (gain) loss $ 67 $ 42 $ 189 $ 175 $ 7 $ 12 Prior service (credit) cost (2 ) (2 ) (4 ) (4 ) 0 (11 ) Total included in accumulated $ 65 $ 40 $ 185 $ 171 $ 7 $ 1 Accumulated benefit obligation $ 288 $ 244 $ 670 $ 621 N/A (2) N/A (2) (1) Recognized in other liabilities in the consolidated balance sheets (2) Not applicable Pension Benefits Other Japan U.S. Postretirement Benefits 2016 2015 2014 2016 2015 2014 2016 2015 2014 Weighted-average actuarial assumptions: Discount rate - net periodic benefit cost 1.75 % 1.75 % 2.25 % 4.50 % 4.50 % 4.75 % 4.50 % 4.50 % 4.75 % Discount rate - benefit obligations 1.25 1.75 1.75 4.25 4.50 4.50 4.25 4.50 4.50 Expected long-term return on plan assets 2.00 2.00 2.00 7.00 7.25 7.50 N/A (1) N/A (1) N/A (1) Rate of compensation increase N/A (1) N/A (1) N/A (1) 4.00 4.00 4.00 N/A (1) N/A (1) N/A (1) Health care cost trend rates N/A (1) N/A (1) N/A (1) N/A (1) N/A (1) N/A (1) 5.20 (2) 5.30 (2) 5.70 (2) (1) Not applicable (2) For the years 2016 , 2015 and 2014 , the health care cost trend rates are expected to trend down to 4.5% in 74 years , 4.5% in 78 years , and 4.6% in 78 years , respectively. We determine our discount rate assumption for our pension retirement obligations based on indices for AA corporate bonds with an average duration of approximately 20 years for the Japan pension plans and 17 years for the U.S. pension plans, and determination of the U.S. pension plans discount rate utilizes the 85 -year extrapolated yield curve. In Japan, participant salary and future salary increases are not factors in determining pension benefit cost or the related pension benefit obligation. We base our assumption for the long-term rate of return on assets on historical trends ( 10 -year or longer historical rates of return for the Japanese plan assets and 15 -year historical rates of return for the U.S. plan assets), expected future market movement, as well as the portfolio mix of securities in the asset portfolio including, but not limited to, style, class and equity and fixed income allocations. In addition, our consulting actuaries evaluate our assumptions for long-term rates of return under Actuarial Standards of Practice (ASOP). Under the ASOP, the actual portfolio type, mix and class is modeled to determine a best estimate of the long-term rate of return. We in turn use those results to further validate our own assumptions. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects as of December 31, 2016 : (In millions) One percentage point increase: Increase in total service and interest costs $ 0 Increase in postretirement benefit obligation 2 One percentage point decrease: Decrease in total service and interest costs $ 0 Decrease in postretirement benefit obligation 2 Components of Net Periodic Benefit Cost Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statements of earnings for the years ended December 31, included the following components: Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Service cost $ 16 $ 15 $ 15 $ 23 $ 23 $ 20 $ 1 $ 1 $ 1 Interest cost 9 1 9 29 18 38 2 2 2 Expected return on plan (4 ) (4 ) (4 ) (23 ) (22 ) (20 ) 0 0 0 Amortization of net actuarial 1 1 1 13 14 11 1 2 3 Amortization of prior service 0 0 0 0 0 0 (11 ) (17 ) (17 ) Net periodic (benefit) cost $ 22 $ 13 $ 21 $ 42 $ 33 $ 49 $ (7 ) $ (12 ) $ (11 ) Changes in Accumulated Other Comprehensive Income The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December 31: Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Net actuarial loss (gain) $ 26 $ 3 $ 12 $ 27 $ 22 $ 67 $ (4 ) $ (5 ) $ (3 ) Amortization of net actuarial loss (1 ) (1 ) (1 ) (13 ) (14 ) (11 ) (1 ) (2 ) (3 ) Amortization of prior 0 0 0 0 0 0 11 17 17 Total $ 25 $ 2 $ 11 $ 14 $ 8 $ 56 $ 6 $ 10 $ 11 Prior service credits of $51 million were incurred in 2013 for the plan amendment related to the change in eligibility for postretirement medical benefits, all of which had been amortized as of December 31, 2016. No transition obligations arose during 2016 , and the transition obligations amortized to expense were immaterial for the years ended December 31, 2016 , 2015 and 2014 . Amortization of actuarial losses to expense in 2017 is estimated to be $2 million for the Japanese plans, $14 million for the U.S. plans and $1 million for the other postretirement benefits plan. Amortization of prior service costs and credits and transition obligations for all plans is expected to be negligible in 2017 . Benefit Payments The following table provides expected benefit payments, which reflect expected future service, as appropriate. Pension Benefits Other (In millions) Japan U.S. Postretirement Benefits 2017 $ 13 $ 22 $ 2 2018 8 23 2 2019 9 24 3 2020 10 25 3 2021 10 27 3 2022-2026 74 180 18 Funding We plan to make contributions of $21 million to the Japanese funded defined benefit plan and $10 million to the U.S. funded defined benefit plan in 2017 . The funding policy for our non-qualified supplemental defined benefit pension plans and other postretirement benefits plan is to contribute the amount of the benefit payments made during the year. Plan Assets The investment objective of our Japanese and U.S. funded defined benefit plans is to preserve the purchasing power of the plan's assets and earn a reasonable inflation-adjusted rate of return over the long term. Furthermore, we seek to accomplish these objectives in a manner that allows for the adequate funding of plan benefits and expenses. In order to achieve these objectives, our goal is to maintain a conservative, well-diversified and balanced portfolio of high-quality equity, fixed-income and money market securities. As a part of our strategy, we have established strict policies covering quality, type and concentration of investment securities. For our Japanese plan, these policies include limitations on investments in derivatives including futures, options and swaps, and low-liquidity investments such as real estate, venture capital investments, and privately issued securities. For our U.S. plan, these policies prohibit investments in precious metals, limited partnerships, venture capital, and direct investments in real estate. We are also prohibited from trading on margin. The plan fiduciaries for our funded defined benefit plans have developed guidelines for asset allocations reflecting a percentage of total assets by asset class, which are reviewed on an annual basis. Asset allocation targets as of December 31, 2016 were as follows: Japan Pension U.S. Pension Domestic equities 11 % 40 % International equities 15 20 Fixed income securities 59 40 Other 15 0 Total 100 % 100 % The following table presents the fair value of Aflac Japan's pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 2 in the fair value hierarchy, except cash and cash equivalents which are classified as Level 1. (In millions) 2016 2015 Japan pension plan assets: Equities: Japanese equity securities $ 28 $ 22 International equity securities 40 33 Fixed income securities: Japanese bonds 79 71 International bonds 55 48 Insurance contracts 27 23 Cash and cash equivalents 0 1 Total $ 229 $ 198 The following table presents the fair value of Aflac U.S.'s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 1 in the fair value hierarchy. (In millions) 2016 2015 U.S. pension plan assets: Mutual funds: Large cap equity funds $ 104 $ 94 Mid cap equity funds 19 16 Real estate equity funds 10 10 International equity funds 85 77 Fixed income bond funds 136 134 Aflac Incorporated common stock 4 4 Cash and cash equivalents 1 1 Total $ 359 $ 336 The fair values of our pension plan investments categorized as Level 1, consisting of mutual funds and common stock, are based on quoted market prices for identical securities traded in active markets that are readily and regularly available to us. The fair values of our pension plan investments classified as Level 2 are based on quoted prices for similar assets in markets that are not active, other inputs that are observable, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates, or other market-corroborated inputs. 401(k) Plan The Company sponsors a 401(k) plan in which we match a portion of U.S. employees' contributions. The plan provides for salary reduction contributions by employees and, in 2016 , 2015 , and 2014 , provided matching contributions by the Company of 50% of each employee's contributions which were not in excess of 6% of the employee's annual cash compensation. On January 1, 2014, the Company began providing a nonelective contribution to the 401(k) plan of 2% of annual cash compensation for employees who elected to opt out of the future benefits of the U.S. defined benefit plan during the election period provided during the fourth quarter of 2013 and for new U.S. employees who started working for the Company after September 30, 2013. The 401(k) contributions by the Company, included in acquisition and operating expenses in the consolidated statements of earnings, were $11 million in 2016 , $9 million in 2015 and $7 million in 2014 . The plan trustee held approximately one million shares of our common stock for plan participants at December 31, 2016 . Stock Bonus Plan Aflac U.S. maintains a stock bonus plan for eligible U.S. sales associates. Plan participants receive shares of Aflac Incorporated common stock based on their new annualized premium sales and their first-year persistency of substantially all new insurance policies. The cost of this plan, which was capitalized as deferred policy acquisition costs, amounted to $31 million in 2016 , compared with $34 million in 2015 and $36 million in 2014 . |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES We have two outsourcing agreements with a technology and consulting corporation. The first agreement provides mainframe computer operations, distributed mid-range server computer operations, and related support for Aflac Japan. It has a remaining term of four years and an aggregate remaining cost of 36.7 billion yen ( $315 million using the December 31, 2016 , exchange rate). The second agreement provides application maintenance and development services for Aflac Japan. It has a remaining term of five years and an aggregate remaining cost of 11.9 billion yen ( $102 million using the December 31, 2016 , exchange rate). We have an outsourcing agreement with a management consulting and technology services company to provide application maintenance and development services for our Japanese operation. The agreement has a remaining term of five years with an aggregate remaining cost of 15.4 billion yen ( $132 million using the December 31, 2016 , exchange rate). We have two outsourcing agreements with information technology and data services companies to provide application maintenance and development services for our Japanese operation. The first agreement has a remaining term of three years with an aggregate remaining cost of 6.1 billion yen ( $53 million using the December 31, 2016 , exchange rate). The second agreement has a remaining term of one year with an aggregate remaining cost of 740 million yen ( $6 million using the December 31, 2016 , exchange rate). As of December 31, 2016 , we have commitments of $779 million to fund potential future loan originations related to our investment in middle market loans. These commitments are contingent upon the availability of middle market loans that meet our underwriting criteria. In addition, we had commitments of $19 million to fund potential future loan originations related to our investment in commercial mortgage loans. These commitments are contingent on the final underwriting and due diligence to be performed and may or may not be funded. See Note 3 of the Notes to the Consolidated Financial Statements for more details on these investment programs. We lease office space and equipment under agreements that expire in various years through 2026 . Future minimum lease payments due under non-cancelable operating leases at December 31, 2016 , were as follows: (In millions) 2017 $ 62 2018 41 2019 18 2020 13 2021 11 Thereafter 0 Total future minimum lease payments $ 145 We are a defendant in various lawsuits considered to be in the normal course of business. Members of our senior legal and financial management teams review litigation on a quarterly and annual basis. The final results of any litigation cannot be predicted with certainty. Although some of this litigation is pending in states where large punitive damages, bearing little relation to the actual damages sustained by plaintiffs, have been awarded in recent years, we believe the outcome of pending litigation will not have a material adverse effect on our financial position, results of operations, or cash flows. |
UNAUDITED CONSOLIDATED QUARTERL
UNAUDITED CONSOLIDATED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED CONSOLIDATED QUARTERLY FINANCIAL DATA | UNAUDITED CONSOLIDATED QUARTERLY FINANCIAL DATA In management's opinion, the following quarterly financial information fairly presents the results of operations for such periods and is prepared on a basis consistent with our annual audited financial statements. (In millions, except for per-share amounts) March 31, June 30, September 30, December 31, Net premium income $ 4,602 $ 4,823 $ 5,022 $ 4,778 Net investment income 801 822 842 813 Realized investment gains (losses) 73 (187 ) (146 ) 137 Other income (loss) (25 ) (21 ) (2 ) 227 Total revenues 5,451 5,437 5,716 5,955 Total benefits and expenses 4,334 4,603 4,753 4,802 Earnings before income taxes 1,117 834 963 1,153 Total income tax 386 286 334 402 Net earnings $ 731 $ 548 $ 629 $ 751 Net earnings per basic share $ 1.75 $ 1.33 $ 1.54 $ 1.85 Net earnings per diluted share 1.74 1.32 1.53 1.84 Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding. (In millions, except for per-share amounts) March 31, June 30, September 30, December 31, Net premium income $ 4,432 $ 4,364 $ 4,380 $ 4,394 Net investment income 782 777 784 792 Realized investment gains (losses) 13 127 (114 ) 114 Other income (loss) (1 ) 19 (10 ) 19 Total revenues 5,226 5,287 5,040 5,319 Total benefits and expenses 4,213 4,413 4,176 4,209 Earnings before income taxes 1,013 874 864 1,110 Total income tax 350 301 297 380 Net earnings $ 663 $ 573 $ 567 $ 730 Net earnings per basic share $ 1.52 $ 1.33 $ 1.32 $ 1.72 Net earnings per diluted share 1.51 1.32 1.32 1.71 Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In January 2017, the Parent Company issued 60.0 billion yen of senior notes through a U.S. public debt offering. The notes bear interest at a fixed rate of .932% per annum, payable semi-annually, and have a 10 -year maturity. These notes may only be redeemed before maturity, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance. |
SCHEDULE II CONDENSED FINANCIAL
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Statements of Earnings Years ended December 31, (In millions) 2016 2015 2014 Revenues: Dividends from subsidiaries (1) $ 2,020 $ 2,393 $ 1,483 Management and service fees from subsidiaries (1) 265 260 272 Net investment income 18 22 13 Interest from subsidiaries (1) 5 6 6 Realized investment gains (losses) 84 86 45 Change in fair value of the cross-currency interest rate swaps (159 ) (53 ) 314 Other income (loss) 0 0 (11 ) Total revenues 2,233 2,714 2,122 Operating expenses: Interest expense 213 231 243 Other operating expenses 277 (2) 321 (2) 88 Total operating expenses 490 552 331 Earnings before income taxes and equity in undistributed earnings of 1,743 2,162 1,791 Income tax expense (benefit): Current 3 2 1 Deferred (105 ) (82 ) 120 Total income taxes (102 ) (80 ) 121 Earnings before equity in undistributed earnings of subsidiaries 1,845 2,242 1,670 Equity in undistributed earnings of subsidiaries (1) 814 291 1,281 Net earnings $ 2,659 $ 2,533 $ 2,951 (1) Eliminated in consolidation (2) Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Statements of Comprehensive Income (Loss) Years ended December 31, (In millions) 2016 2015 2014 Net earnings $ 2,659 $ 2,533 $ 2,951 Other comprehensive income (loss) before income taxes: Foreign currency translation adjustments: Unrealized foreign currency translation gains (losses) 0 3 39 Equity in unrealized foreign currency translation gains (losses) of 283 357 (1,494 ) Unrealized gains (losses) on investment securities: Unrealized holding gains (losses) on investment securities 2 (8 ) 9 Equity in unrealized holding gains (losses) on investment securities 2,850 (2,526 ) 5,938 Equity in reclassification adjustment for realized (gains) losses of (53 ) (61 ) (54 ) Unrealized gains (losses) on derivatives during period 3 0 (17 ) Pension liability adjustment during period (45 ) (20 ) (76 ) Total other comprehensive income (loss) before 3,040 (2,255 ) 4,345 Income tax expense (benefit) related to items of other comprehensive 1,035 (901 ) 1,803 Other comprehensive income (loss), net of income taxes 2,005 (1,354 ) 2,542 Total comprehensive income (loss) $ 4,664 $ 1,179 $ 5,493 See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Balance Sheets December 31, (In millions, except for share and per-share amounts) 2016 2015 Assets: Investments and cash: Fixed maturity securities available for sale, at fair value $ 496 $ 493 Investments in subsidiaries (1) 23,353 20,500 Other investments 3 9 Cash and cash equivalents 2,037 1,721 Total investments and cash 25,889 22,723 Due from subsidiaries (1) 75 113 Income taxes receivable 103 0 Other assets 497 542 Total assets $ 26,564 $ 23,378 Liabilities and shareholders' equity: Liabilities: Income taxes $ 0 $ 8 Employee benefit plans 293 274 Notes payable 5,339 4,968 Other liabilities 450 420 Total liabilities 6,082 5,670 Shareholders' equity: Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 67 67 Additional paid-in capital 1,976 1,828 Retained earnings 25,981 24,007 Accumulated other comprehensive income (loss): Unrealized foreign currency translation gains (1,983 ) (2,196 ) Unrealized gains (losses) on investment securities 4,805 2,986 Unrealized gains (losses) on derivatives (24 ) (26 ) Pension liability adjustment (168 ) (139 ) Treasury stock, at average cost (10,172 ) (8,819 ) Total shareholders' equity 20,482 17,708 Total liabilities and shareholders' equity $ 26,564 $ 23,378 (1) Eliminated in consolidation Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs. See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Statements of Cash Flows Years ended December 31, (In millions) 2016 2015 2014 Cash flows from operating activities: Net earnings $ 2,659 $ 2,533 $ 2,951 Adjustments to reconcile net earnings to net cash provided from Equity in undistributed earnings of subsidiaries (1) (814 ) (291 ) (1,281 ) Change in income tax liabilities (112 ) 6 115 Other, net 406 (2) 149 (2) (72 ) Net cash provided (used) by operating activities 2,139 2,397 1,713 Cash flows from investing activities: Fixed maturity securities sold 225 121 38 Fixed maturity securities purchased (229 ) (202 ) (105 ) Other investments sold (purchased) 6 14 291 Settlement of derivatives 0 147 (1 ) Additional capitalization of subsidiaries (1) (36 ) (43 ) 0 Other, net (25 ) 0 0 Net cash provided (used) by investing activities (59 ) 37 223 Cash flows from financing activities: Purchases of treasury stock (1,422 ) (1,315 ) (1,210 ) Proceeds from borrowings 986 998 750 Principal payments under debt obligations (621 ) (1,272 ) (335 ) Dividends paid to shareholders (658 ) (656 ) (654 ) Treasury stock reissued 46 36 33 Proceeds from exercise of stock options 36 47 23 Net change in amount due to/from subsidiaries (1) (6 ) 43 14 Other, net (125 ) (2) (232 ) (2) 0 Net cash provided (used) by financing activities (1,764 ) (2,351 ) (1,379 ) Net change in cash and cash equivalents 316 83 557 Cash and cash equivalents, beginning of period 1,721 1,638 1,081 Cash and cash equivalents, end of period $ 2,037 $ 1,721 $ 1,638 (1) Eliminated in consolidation (2) Operating activities excludes and financing activities includes a cash outflow of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. (A) Notes Payable A summary of notes payable as of December 31 follows: (In millions) 2016 2015 2.65% senior notes due February 2017 $ 649 $ 651 2.40% senior notes due March 2020 547 546 4.00% senior notes due February 2022 348 348 3.625% senior notes due June 2023 696 696 3.625% senior notes due November 2024 745 744 3.25% senior notes due March 2025 445 445 2.875% senior notes due October 2026 298 0 6.90% senior notes due December 2039 220 393 6.45% senior notes due August 2040 254 445 4.00% senior notes due October 2046 394 0 5.50% subordinated debentures due September 2052 486 486 Yen-denominated Uridashi notes: 2.26% notes paid September 2016 (principal amount 10 billion yen) 0 83 Yen-denominated Samurai notes: 1.84% notes paid July 2016 (principal amount 15.8 billion yen) 0 131 Yen-denominated loans: Variable interest rate loan due September 2021 (.31% in 2016, principal amount 5.0 43 0 Variable interest rate loan due September 2023 (.46% in 2016, principal amount 25.0 214 0 Total notes payable $ 5,339 $ 4,968 Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs. Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes. During 2009 , Aflac Japan bought on the open market 2.0 billion yen of yen-denominated Uridashi notes issued by the Parent Company. These notes were redeemed in September 2016. In consolidation, those notes were extinguished; however, they remained an outstanding liability for the Parent Company until their maturity date. The aggregate contractual maturities of notes payable during each of the years after December 31, 2016 , are as follows: (In millions) 2017 $ 650 2018 0 2019 0 2020 550 2021 43 Thereafter 4,145 Total $ 5,388 For further information regarding notes payable, see Note 9 of the Notes to the Consolidated Financial Statements. (B) Derivatives At December 31, 2016 , the Parent Company's outstanding freestanding derivative contracts were swaps associated with our notes payable, consisting of cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with our senior notes due in February 2017, March 2020, February 2022, June 2023, November 2024 and March 2025, and subordinated debentures due in September 2052. We do not use derivative financial instruments for trading purposes, nor do we engage in leveraged derivative transactions. For further information regarding these derivatives, see Notes 1, 4 and 9 of the Notes to the Consolidated Financial Statements. (C) Income Taxes The Parent Company and its eligible U.S. subsidiaries file a consolidated U.S. federal income tax return. Income tax liabilities or benefits are recorded by each principal subsidiary based upon separate return calculations, and any difference between the consolidated provision and the aggregate amounts recorded by the subsidiaries is reflected in the Parent Company financial statements. For further information on income taxes, see Note 10 of the Notes to the Consolidated Financial Statements. (D) Dividend Restrictions See Note 13 of the Notes to the Consolidated Financial Statements for information regarding dividend restrictions. (E) Supplemental Disclosures of Cash Flow Information (In millions) 2016 2015 2014 Interest paid $ 209 $ 235 $ 241 Noncash financing activities: Treasury stock issued for shareholder dividend reinvestment 26 26 26 |
SCHEDULE III SUPPLEMENTARY INSU
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Insurance Information [Abstract] | |
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION Aflac Incorporated and Subsidiaries Years ended December 31, (In millions) Deferred Policy Future Policy Unearned Other 2016: Aflac Japan $ 5,765 $ 70,684 $ 6,798 $ 6,659 Aflac U.S. 3,228 10,094 118 0 All other 0 91 0 0 Intercompany eliminations 0 (718 ) 0 0 Total $ 8,993 $ 80,151 $ 6,916 $ 6,659 2015: Aflac Japan $ 5,370 $ 64,437 $ 7,739 $ 6,285 Aflac U.S. 3,141 9,696 118 0 All other 0 43 0 0 Intercompany eliminations 0 (687 ) 0 0 Total $ 8,511 $ 73,489 $ 7,857 $ 6,285 Segment amounts may not agree in total to the corresponding consolidated amounts due to rounding. Years Ended December 31, (In millions) Net Net Benefits and Amortization of Other Premiums 2016: Aflac Japan $ 13,537 $ 2,554 $ 9,828 $ 644 $ 2,326 $ 12,762 Aflac U.S. 5,454 703 2,869 497 1,593 5,452 All other 234 21 222 0 513 0 Total $ 19,225 $ 3,278 $ 12,919 $ 1,141 $ 4,432 $ 18,214 2015: Aflac Japan $ 12,046 $ 2,436 $ 8,705 $ 578 $ 2,055 $ 11,740 Aflac U.S. 5,347 678 2,873 488 1,570 5,343 All other 177 21 168 0 573 0 Total $ 17,570 $ 3,135 $ 11,746 $ 1,066 $ 4,198 $ 17,083 2014: Aflac Japan $ 13,861 $ 2,662 $ 10,084 $ 649 $ 2,364 $ 13,352 Aflac U.S. 5,211 645 2,853 459 1,474 5,198 All other 0 12 0 0 354 0 Total $ 19,072 $ 3,319 $ 12,937 $ 1,108 $ 4,192 $ 18,550 Segment amounts may not agree in total to the corresponding consolidated amounts due to rounding. See the accompanying Report of Independent Registered Public Accounting Firm. |
SCHEDULE IV REINSURANCE
SCHEDULE IV REINSURANCE | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
SCHEDULE IV REINSURANCE | SCHEDULE IV REINSURANCE Aflac Incorporated and Subsidiaries Years Ended December 31, (In millions) Gross Ceded to Assumed Net Percentage 2016: Life insurance in force $ 151,093 $ 3,741 $ 0 $ 147,352 0 % Premiums: Health insurance $ 14,839 $ 595 $ 241 $ 14,485 1 % Life insurance 4,753 13 0 4,740 0 Total earned premiums $ 19,592 $ 608 $ 241 $ 19,225 1 % 2015: Life insurance in force $ 146,610 $ 3,547 $ 0 $ 143,063 0 % Premiums: Health insurance $ 13,604 $ 509 $ 186 $ 13,281 1 % Life insurance 4,300 11 0 4,289 0 Total earned premiums $ 17,904 $ 520 $ 186 $ 17,570 1 % 2014: Life insurance in force $ 144,374 $ 3,298 $ 0 $ 141,076 0 % Premiums: Health insurance $ 14,648 $ 339 $ 10 $ 14,319 0 % Life insurance 4,764 11 0 4,753 0 Total earned premiums $ 19,412 $ 350 $ 10 $ 19,072 0 % Premiums by type may not agree in total to the corresponding consolidated amounts due to rounding. See the accompanying Report of Independent Registered Public Accounting Firm. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 71% of the Company's total revenues in 2016 , compared with 70% in 2015 and 72% in 2014 . The percentage of the Company's total assets attributable to Aflac Japan was 83% at both December 31, 2016 and 2015 . Basis of Presentation We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards Codification TM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates when recording transactions resulting from business operations based on currently available information. The most significant items on our balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments, deferred policy acquisition costs, liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, we believe the amounts provided are adequate. The consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated. |
Translation of Foreign Currencies | Translation of Foreign Currencies: The functional currency of Aflac Japan's insurance operations is the Japanese yen. We translate our yen-denominated financial statement accounts into U.S. dollars as follows. Assets and liabilities are translated at end-of-period exchange rates. Realized gains and losses on security transactions are translated at the exchange rate on the trade date of each transaction. Other revenues, expenses and cash flows are translated using average exchange rates for the period. The resulting currency translation adjustments are reported in accumulated other comprehensive income. We include in earnings the realized currency exchange gains and losses resulting from foreign currency transactions. We have designated a majority of the Parent Company's yen-denominated liabilities (notes payable and yen-denominated loans) as non-derivative hedges and designated foreign currency forwards and options as derivative hedges of the foreign currency exposure of our investment in Aflac Japan. Outstanding principal and related accrued interest on these Parent Company liabilities and the fair value of these derivatives are translated into U.S. dollars at end-of-period exchange rates. Currency translation adjustments and changes in the fair value of these derivatives are recorded as unrealized foreign currency translation gains (losses) in other comprehensive income and are included in accumulated other comprehensive income. |
Insurance Revenue and Expense Recognition | Insurance Revenue and Expense Recognition: The supplemental health and life insurance policies we issue are classified as long-duration contracts. The contract provisions generally cannot be changed or canceled during the contract period; however, we may adjust premiums for supplemental health policies issued in the United States within prescribed guidelines and with the approval of state insurance regulatory authorities. Insurance premiums for most of the Company's health and life policies, including cancer, accident, hospital, critical illness, dental, vision, term life, whole life, long-term care and disability, are recognized as revenue over the premium-paying periods of the contracts when due from policyholders. When revenues are reported, the related amounts of benefits and expenses are charged against such revenues, so that profits are recognized in proportion to premium revenues during the period the policies are expected to remain in force. This association is accomplished by means of annual additions to the liability for future policy benefits and the deferral and subsequent amortization of policy acquisition costs. Premiums from the Company's products with limited-pay features, including term life, whole life, WAYS, and child endowment, are collected over a significantly shorter period than the period over which benefits are provided. Premiums for these products are recognized as revenue over the premium-paying periods of the contracts when due from policyholders. Any gross premium in excess of the net premium is deferred and recorded in earnings, such that profits are recognized in a constant relationship with insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net premium method. At the policyholder's option, customers can also pay discounted advanced premiums for certain of our products. Advanced premiums are deferred and recognized when due from policyholders over the regularly scheduled premium payment period. The calculation of deferred policy acquisition costs (DAC) and the liability for future policy benefits requires the use of estimates based on sound actuarial valuation techniques. For new policy issues, we review our actuarial assumptions and deferrable acquisition costs each year and revise them when necessary to more closely reflect recent experience and studies of actual acquisition costs. For policies in force, we evaluate DAC by major product groupings to determine that they are recoverable from future revenues, and any amounts determined not to be recoverable are charged against net earnings. We have not had any material charges to earnings for DAC that was determined not to be recoverable in any of the years presented in this Form 10-K. Advertising expense is reported as incurred in insurance expenses in the consolidated statements of earnings. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, money market instruments and other debt instruments with a maturity of 90 days or less when purchased. |
Investments | Investments: Our debt securities consist of fixed-maturity securities, which are classified as either held to maturity or available for sale. Securities classified as held to maturity are securities that we have the ability and intent to hold to maturity or redemption and are carried at amortized cost. All other fixed-maturity debt securities, our perpetual securities and our equity securities are classified as available for sale and are carried at fair value. If the fair value is higher than the amortized cost for debt and perpetual securities, or the purchase cost for equity securities, the excess is an unrealized gain, and if lower than cost, the difference is an unrealized loss. The net unrealized gains and losses on securities available for sale, plus the unamortized unrealized gains and losses on debt securities transferred to the held-to-maturity portfolio, less related deferred income taxes, are recorded through other comprehensive income and included in accumulated other comprehensive income. Amortized cost of debt and perpetual securities is based on our purchase price adjusted for accrual of discount, or amortization of premium, and recognition of impairment charges, if any. The amortized cost of debt and perpetual securities we purchase at a discount or premium will equal the face or par value at maturity or the call date, if applicable. Interest is reported as income when earned and is adjusted for amortization of any premium or discount. We have investments in variable interest entities (VIEs). Criteria for evaluating VIEs for consolidation focuses on identifying which enterprise has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. We are the primary beneficiary of certain VIEs, and therefore consolidate these entities in our financial statements. While the VIEs generally operate within a defined set of documents, there are certain powers that are retained by us that are considered significant in our conclusion that we are the primary beneficiary. These powers vary by structure but generally include the initial selection of the underlying collateral or, for collateralized debt obligations (CDOs), the reference credits to include in the structure; the ability to obtain the underlying collateral in the event of default; and the ability to appoint or dismiss key parties in the structure. In particular, our powers surrounding the underlying collateral were considered to be the most significant powers since those most significantly impact the economics of the VIE. We have no obligation to provide any continuing financial support to any of the entities in which we are the primary beneficiary. Our maximum loss is limited to our original investment. Neither we nor any of our creditors have the ability to obtain the underlying collateral, nor do we have control over the instruments in the VIEs, unless there is an event of default. For those entities where we are the primary beneficiary, the assets consolidated are fixed-maturity securities, perpetual securities, equity securities, and derivative instruments; collateral consisting of these asset classes is reported separately with the caption "- consolidated variable interest entities" on our balance sheet. For the mortgage- and asset-backed securities held in our fixed maturities portfolio, we recognize income using a constant effective yield, which is based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in mortgage- and asset-backed securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition. This adjustment is reflected in net investment income. We use the specific identification method to determine the gain or loss from securities transactions and report the realized gain or loss in the consolidated statements of earnings. Securities transactions are accounted for based on values as of the trade date of the transaction. An investment in a fixed maturity, perpetual security or equity security is impaired if the fair value falls below book value. We regularly review our entire investment portfolio for declines in value. Our fixed maturities and investment-grade perpetual securities investments are evaluated for other-than-temporary impairment using our debt impairment model. Our debt impairment model focuses on the ultimate collection of the cash flows from our investments and whether we have the intent to sell or if it is more likely than not we would be required to sell the security prior to recovery of its amortized cost. The determination of the amount of impairments under this model is based upon our periodic evaluation and assessment of known and inherent risks associated with the respective securities. Such evaluations and assessments are revised as conditions change and new information becomes available. When determining our intention to sell a security prior to recovery of its fair value to amortized cost, we evaluate facts and circumstances such as, but not limited to, future cash flow needs, decisions to reposition our security portfolio, and risk profile of individual investment holdings. We perform ongoing analyses of our liquidity needs, which includes cash flow testing of our policy liabilities, debt maturities, projected dividend payments and other cash flow and liquidity needs. Our cash flow testing includes extensive duration analysis of our investment portfolio and policy liabilities. Based on our analyses, we have concluded that we have sufficient excess cash flows to meet our liquidity needs without selling any of our investments prior to their maturity. The determination of whether an impairment in value of our debt securities is other than temporary is based largely on our evaluation of the issuer ' s creditworthiness. We must apply considerable judgment in determining the likelihood of the security recovering in value while we own it. Factors that may influence this include the overall level of interest rates, credit spreads, the credit quality of the underlying issuer, and other factors. This process requires consideration of risks which can be controlled to a certain extent, such as credit risk, and risks which cannot be controlled, such as interest rate risk and foreign currency risk. If, after monitoring and analyses, management believes that fair value will not recover to amortized cost prior to the disposal of the security, we recognize an other-than-temporary impairment of the security. Once a security is considered to be other-than-temporarily impaired, the impairment loss is separated into two separate components: the portion of the impairment related to credit and the portion of the impairment related to factors other than credit. We recognize a charge to earnings for the credit-related portion of other-than-temporary impairments. Impairments related to factors other than credit are charged to earnings in the event we intend to sell the security prior to the recovery of its amortized cost or if it is more likely than not that we would be required to dispose of the security prior to recovery of its amortized cost; otherwise, non-credit-related other-than-temporary impairments are charged to other comprehensive income. Our investments in perpetual securities that are rated below investment grade and equity securities are evaluated for other-than-temporary impairment under our equity impairment model. Our equity impairment model focuses on the severity of a security's decline in fair value coupled with the length of time the fair value of the security has been below amortized cost and the financial condition and near-term prospects of the issuer. For equity securities that have declines in value that are deemed to be temporary, we make an assertion as to our ability and intent to retain the security until recovery. Once identified, these equity securities are restricted from trading unless authorized based upon significant events that could not have been foreseen at the time we asserted our ability and intent to retain the security until recovery. If management believes that the equity security will not recover prior to the disposal of the security, we recognize an other-than-temporary impairment of the security. Once an equity security is considered to be other-than-temporarily impaired, its fair value on that date becomes the new cost basis and the impairment loss is recognized in earnings. We lend fixed-maturity securities to financial institutions in short-term security lending transactions. These securities continue to be carried as investment assets on our balance sheet during the terms of the loans and are not reported as sales. We receive cash or other securities as collateral for such loans. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral. Other investments include policy loans, middle market loans, commercial mortgage loans, and other short-term investments with maturities of one year or less, but greater than 90 days, at the time of purchase. We invest in middle market loans through participation rights, and commercial mortgage loans that are accounted for as loan receivables and recorded at amortized cost on the acquisition date. Since we have the intent and ability to hold these loan receivables for the foreseeable future or until they mature, they are considered held for investment and are carried at adjusted amortized cost in the other investments line on our consolidated balance sheets. The adjusted amortized cost of the loan receivables reflects allowances for expected incurred losses estimated based on past events and current economic conditions as of each reporting date. Other short-term investments are stated at amortized cost, which approximates estimated fair value. |
Derivatives and Hedging | Derivatives and Hedging: Freestanding derivative instruments are reported in the consolidated balance sheet at fair value and are reported in other assets and other liabilities, with changes in value reported in earnings and/or other comprehensive income. These freestanding derivatives are interest rate swaps, foreign currency swaps, credit default swaps (CDSs), foreign currency forwards, foreign currency options, and options on interest rate swaps (or interest rate swaptions). Interest rate and foreign currency swaps are used within VIEs to hedge the risk arising from interest rate and currency exchange risk, while the CDSs are used to increase the yield and improve the diversification of the portfolio. Foreign currency forwards and options are used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio. Foreign currency forwards and options are used to hedge certain portions of forecasted cash flows denominated in yen. Interest rate swaps are used to hedge the variability of interest cash flows associated with our variable interest rate notes. Cross-currency interest rate swaps, also referred to as foreign currency swaps, are used to economically convert certain U.S. dollar-denominated note obligations into yen-denominated principal and interest obligations. Interest rate swaptions have been used to hedge interest rate risk for certain U.S. dollar-denominated available-for-sale securities. We do not use derivatives for trading purposes, nor do we engage in leveraged derivative transactions. From time to time, we purchase certain investments that contain an embedded derivative. We assess whether this embedded derivative is clearly and closely related to the asset that serves as its host contract. If we deem that the embedded derivative's terms are not clearly and closely related to the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the derivative is separated from that contract, held at fair value and reported with the host instrument in the consolidated balance sheet, with changes in fair value reported in earnings. If we have elected the fair value option, the embedded derivative is not bifurcated, and the entire investment is held at fair value with changes in fair value reported in earnings. For those relationships where we seek hedge accounting, we formally document all relationships between hedging instruments and hedged items, as well as our risk-management objectives and strategies for undertaking various hedge transactions. This process includes linking derivatives and non-derivative financial instruments that are designated as hedges to specific assets or liabilities on the balance sheet. We also assess, both at inception and on an ongoing basis, whether the derivatives and non-derivative financial instruments used in hedging activities are highly effective in offsetting changes in fair values or cash flows of the hedged items. The assessment of hedge effectiveness determines the accounting treatment of noncash changes in fair value. Changes in the fair value of any of our derivatives that are designated and qualify as cash flow hedges are recorded in other comprehensive income as long as they are deemed effective. Any hedge ineffectiveness is recorded immediately in current period earnings within derivative and other gains (losses). Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of earnings in which the cash flows of the hedged item are recorded. Changes in the estimated fair value of derivative instruments that are designated and qualify as fair value hedges, including amounts measured as ineffectiveness, and changes in the estimated fair value of the hedged item related to the designated risk being hedged, are reported in current earnings within derivative and other gains (losses). We have designated the majority of the Parent Company's yen-denominated liabilities (notes payable and yen-denominated loans) as non-derivative hedges and designated certain derivatives as hedges of the foreign currency exposure to our investment in Aflac Japan. At the beginning of each quarter, we make our net investment hedge designation. If the total of the designated Parent Company non-derivative and derivatives notional is equal to or less than our net investment in Aflac Japan, the hedge is deemed to be effective, and the exchange effect on the yen-denominated liabilities and the change in estimated fair value of the derivatives are reported in the unrealized foreign currency component of other comprehensive income. Should these designated net investment hedge positions exceed our net investment in Aflac Japan, the foreign exchange effect on the portion that exceeds our investment in Aflac Japan would be recognized in current earnings within derivative and other gains (losses). Derivatives that are not designated as hedges are carried at fair value with all changes in fair value recorded in current period earnings within derivative and other gains (losses). We include the fair value of all freestanding derivatives in either other assets or other liabilities on the balance sheet. We receive and pledge cash or other securities as collateral on open derivative positions. Cash received as collateral is reported as an asset with a corresponding liability for the return of the collateral. Cash pledged as collateral is recorded as a reduction to cash, and a corresponding receivable is recognized for the return of the cash collateral. We generally can repledge or resell collateral obtained by us, although we do not typically exercise such rights. Securities received as collateral are not recognized unless we were to exercise our right to sell that collateral or exercise remedies on that collateral upon a counterparty default. Securities that we have pledged as collateral continue to be carried as investment assets on our balance sheet. Freestanding derivatives are carried at estimated fair value in our consolidated balance sheets either as other assets or as other liabilities. See Note 5 for a discussion on how we determine the fair value of our derivatives. Accruals on derivatives are typically recorded in accrued investment income or within other liabilities in the consolidated balance sheets. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are generally reported within derivative and other gains(losses), which is a component of realized investment gains (losses). The fluctuations in estimated fair value of derivatives that have not been designated for hedge accounting can result in volatility in net earnings. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. At the inception of the hedging relationship for hedges we elect to designate for hedge accounting treatment, we formally document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking each hedge transaction. We document the designation of each hedge as either (i) a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability or the hedge of a forecasted transaction ("cash flow hedge"); (ii) a hedge of the estimated fair value of a recognized asset or liability ("fair value hedge"); or (iii) a hedge of a net investment in a foreign operation. The documentation process includes linking derivatives and nonderivatives that are designated as hedges to specific assets or groups of assets or liabilities on the statement of financial position or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. At the hedge's inception and on an ongoing quarterly basis, we also formally assess whether the derivatives that are used in hedging transactions have been, and are expected to continue to be, highly effective in offsetting their designated risk. Hedge effectiveness is assessed using qualitative and quantitative methods. For assessing hedge effectiveness of cash flow hedges, qualitative methods may include the comparison of critical terms of the derivative to the hedged item, and quantitative methods may include regression or other statistical analysis of changes in cash flows associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships on our VIE cash flow hedges is measured each reporting period using the “Hypothetical Derivative Method.” For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current earnings within derivative and other gains (losses). All components of each derivative's gain or loss are included in the assessment of hedge effectiveness. For assessing hedge effectiveness of fair value hedges, qualitative methods may include the comparison of critical terms of the derivative to the hedged item, and quantitative methods may include regression or other statistical analysis of changes in fair value associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships is measured each reporting period using the dollar offset method. For derivative instruments that are designated and qualify as fair value hedges, changes in the estimated fair value of the derivative, including amounts measured as ineffectiveness, and changes in the estimated fair value of the hedged item related to the designated risk being hedged, are reported in current earnings within derivative and other gains (losses). When assessing the effectiveness of our fair value hedges, we exclude the changes in fair value related to the difference between the spot and the forward rate on our foreign currency forwards and the time value of options. For the hedge of our net investment in Aflac Japan, we have designated Parent Company yen-denominated liabilities as non-derivative hedging instruments and have designated certain foreign currency forwards and options as derivative hedging instruments. We make our net investment hedge designation at the beginning of each quarter. For assessing hedge effectiveness of net investment hedges, if the total of the designated Parent Company non-derivative and derivatives notional is equal to or less than our net investment in Aflac Japan, the hedge is deemed to be effective. If the hedge is effective, the related exchange effect on the yen-denominated liabilities is reported in the unrealized foreign currency component of other comprehensive income. For derivatives designated as net investment hedges, Aflac follows the forward-rate method. According to that method, all changes in fair value, including changes related to the forward-rate component of foreign currency forward contracts and the time value of foreign currency options, are reported in the unrealized foreign currency component of other comprehensive income. Should these designated net investment hedge positions exceed our net investment in Aflac Japan, the foreign exchange effect on the portion that exceeds our investment in Aflac Japan would be recognized in current earnings within derivative and other gains (losses). We discontinue hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated cash flows or fair value of a hedged item; (2) the derivative is de-designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. When hedge accounting is discontinued on a cash flow hedge or fair value hedge, the derivative is carried in the consolidated balance sheets at its estimated fair value, with changes in estimated fair value recognized in current period earnings. For discontinued cash flow hedges, including those where the derivative is sold, terminated or exercised, amounts previously deferred in other comprehensive income (loss) are reclassified into earnings when earnings are impacted by the cash flow of the hedged item. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs: Certain direct and incremental costs of acquiring new business are deferred and amortized with interest over the premium payment periods in proportion to the ratio of annual premium income to total anticipated premium income. Anticipated premium income is estimated by using the same mortality, persistency and interest assumptions used in computing liabilities for future policy benefits. In this manner, the related acquisition expenses are matched with revenues. Deferred costs include the excess of current-year commissions over ultimate renewal-year commissions and certain incremental direct policy issue, underwriting and sales expenses. All of these incremental costs are directly related to successful policy acquisition. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. The Company performs a two-stage analysis of the internal replacements to determine if the modification is substantive to the base policy. The stages of evaluation are as follows: 1) determine if the modification is integrated with the base policy, and 2) if it is integrated, determine if the resulting contract is substantially changed. For internal replacement transactions where the resulting contract is substantially unchanged, the policy is accounted for as a continuation of the replaced contract. Unamortized deferred acquisition costs from the original policy continue to be amortized over the expected life of the new policy, and the costs of replacing the policy are accounted for as policy maintenance costs and expensed as incurred. Examples include conversions of same age bands, certain family coverage changes, pricing era changes (decrease), and ordinary life becomes reduced paid-up and certain reinstatements. An internal replacement transaction that results in a policy that is substantially changed is accounted for as an extinguishment of the original policy and the issuance of a new policy. Unamortized deferred acquisition costs on the original policy are immediately expensed, and the costs of acquiring the new policy are capitalized and amortized in accordance with our accounting policies for deferred acquisition costs. Further, the policy reserves are evaluated based on the new policy features, and any change (up or down) necessary is recognized at the date of contract change/modification. Examples include conversions-higher age bands, certain family coverage changes, pricing era changes (increase), lapse & re-issue, certain reinstatements and certain contract conversions. Riders can be considered internal replacements that are either integrated or non-integrated resulting in either substantially changed or substantially unchanged treatment. Riders are evaluated based on the specific facts and circumstances of the rider and are considered expansion of the existing benefits with additional premium required. Non-integrated riders to existing contracts do not change the Company's profit expectations for the related products and are treated as a new policy establishment for incremental coverage. We measure the recoverability of DAC and the adequacy of our policy reserves annually by performing gross premium valuations on our business. (See the following discussion for further information regarding policy reserves.) |
Policy Liabilities - Future Policy Benefits | Policy Liabilities: Future policy benefits represent claims that are expected to occur in the future and are computed by a net level premium method using estimated future investment yields, persistency and recognized morbidity and mortality tables modified to reflect our experience, including a provision for adverse deviation. These assumptions are generally established and considered locked at policy inception. These assumptions may only be unlocked in certain circumstances based on the results of periodic DAC recoverability and premium deficiency testing. |
Policy Liabilities - Unpaid Policy Claims | Unpaid policy claims are estimates computed on an undiscounted basis using statistical analyses of historical claims experience adjusted for current trends and changed conditions. The ultimate liability may vary significantly from such estimates. We regularly adjust these estimates as new claims experience emerges and reflect the changes in operating results in the year such adjustments are made. |
Other Policy Liabilities | Other policy liabilities consist primarily of discounted advance premiums on deposit from policyholders in conjunction with their purchase of certain Aflac Japan limited-pay insurance products. These advanced premiums are deferred upon collection and recognized as premium revenue over the contractual premium payment period. |
Internal Replacements of Insurance Contracts | For internal replacements that are determined to not be substantially unchanged, policy liabilities related to the original policy that was replaced are immediately released, and policy liabilities are established for the new insurance contract; however, for internal replacements that are considered substantially unchanged, no changes to the reserves are recognized. |
Reinsurance Accounting Policy | Reinsurance: We enter into reinsurance agreements with other companies in the normal course of business. For each of our reinsurance agreements, we determine if the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums, benefits and DAC are reported net of insurance ceded. See Note 8 of the Notes to the Consolidated Financial Statements for additional information. |
Income Taxes | Income Taxes: Income tax provisions are generally based on pretax earnings reported for financial statement purposes, which differ from those amounts used in preparing our income tax returns. Deferred income taxes are recognized for temporary differences between the financial reporting basis and income tax basis of assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the periods in which we expect the temporary differences to reverse. We record deferred tax assets for tax positions taken based on our assessment of whether the tax position is more likely than not to be sustained upon examination by taxing authorities. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized. |
Policyholder Protection Corporation and State Guaranty Association Assessments | Policyholder Protection Corporation and State Guaranty Association Assessments: In Japan, the government has required the insurance industry to contribute to a policyholder protection corporation. We recognize a charge for our estimated share of the industry's obligation once it is determinable. We review the estimated liability for policyholder protection corporation contributions on an annual basis and report any adjustments in Aflac Japan's expenses. In the United States, each state has a guaranty association that supports insolvent insurers operating in those states. To date, our state guaranty association assessments have not been material. |
Treasury Stock | Treasury Stock: Treasury stock is reflected as a reduction of shareholders' equity at cost. We use the weighted-average purchase cost to determine the cost of treasury stock that is reissued. We include any gains and losses in additional paid-in capital when treasury stock is reissued. |
Share-Based Compensation | Share-Based Compensation: We measure compensation cost related to our share-based payment transactions at fair value on the grant date, and we recognize those costs in the financial statements over the vesting period during which the employee provides service in exchange for the award. |
Earnings Per Share | Earnings Per Share: We compute basic earnings per share (EPS) by dividing net earnings by the weighted-average number of unrestricted shares outstanding for the period. Diluted EPS is computed by dividing net earnings by the weighted-average number of shares outstanding for the period plus the shares representing the dilutive effect of share-based awards. |
Reclassifications | Reclassifications: Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity. |
Recently Adopted Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements Business Combinations - Simplifying the Accounting for Measurement-Period Adjustments: In September 2015, the FASB issued guidance requiring that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustments are determined. In the same period’s financial statements, the acquirer is required to record income effects of the adjustments as if the accounting had been completed at the acquisition date. The acquirer is also required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Financial Services - Insurance - Disclosures about Short-Duration Contracts: In May 2015, the FASB issued updated guidance requiring enhanced disclosures by all insurance entities that issue short-duration contracts. The amendments require insurance entities to disclose for annual reporting periods information about the liability for unpaid claims and claim adjustment expenses. The amendments also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses. In addition, the amendments require insurance entities to disclose for annual and interim reporting periods a roll-forward of the liability for unpaid claims and claim adjustment expenses. For health insurance claims, the amendments require the disclosure of the total of incurred-but-not-reported liabilities and expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses. We adopted this guidance as of December 31, 2016, and have no insurance contracts classified as short-duration. The adoption of this guidance did not have a significant impact on our disclosures. Fair Value Measurement - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent): In May 2015, the FASB issued updated guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our disclosures. Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs: In April 2015, the FASB issued updated guidance to simplify presentation of debt issuance costs. The updated guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this amendment. In August 2015, the FASB issued updated Securities and Exchange Commission (SEC) Staff guidance pertaining to the presentation of debt issuance costs related to line-of-credit arrangements. The guidance states that an entity may defer and present debt issuance costs as an asset, subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We retrospectively adopted this guidance as of January 1, 2016. The retrospective adoption of this accounting standard resulted in a $40 million reduction to notes payable and other assets as of December 31, 2015, the earliest balance sheet date presented in the period of adoption, but did not have a significant impact on our financial position, results of operations, or disclosures. Consolidation - Amendments to the Consolidation Analysis: In February 2015, the FASB issued updated guidance that affects evaluation of whether limited partnerships and similar legal entities (limited liability corporations and securitization structures, etc.) are VIEs, evaluation of whether fees paid to a decision maker or a service provider are a variable interest, and evaluation of the effect of fee arrangements and the effect of related parties on the determination of the primary beneficiary under the VIE model for consolidation. The updated guidance eliminates the presumption that a general partner should consolidate a limited partnership. Limited partnership and similar legal entities that provide partners with either substantive kick-out rights or substantive participating rights over the general partner will now be evaluated under the voting interest model rather than the VIE model for consolidation. In situations where no single party has a controlling financial interest in a VIE, the related party relationships under common control should be considered in their entirety in determining whether that common control group has a controlling financial interest in the VIE. We adopted this guidance as of January 1, 2016. The adoption of this guidance impacted our footnote disclosures, but did not have a significant impact on our financial position or results of operations. Derivatives and Hedging - Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity: In November 2014, the FASB issued guidance to clarify how to evaluate the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. The guidance also clarifies that an entity should assess the substance of the relevant terms and features when considering how to weight those terms and features. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Presentation of Financial Statements - Going Concern - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern: In August 2014, the FASB issued this amendment that provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The new guidance requires a formal assessment of going concern by management based on criteria prescribed in the new guidance. We adopted this guidance as of December 31, 2016. The adoption of this guidance did not have a significant impact our financial position, results of operations, or disclosures, and no substantial doubt currently exists about the Company’s ability to continue as a going concern. Compensation - Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period: In June 2014, the FASB issued this amendment that provides guidance on certain share-based payment awards that require a specific performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance to awards with performance conditions that affect vesting to account for such awards. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Income Statement - Extraordinary and Unusual Items - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items: In January 2015, the FASB issued updated guidance that eliminates from U.S. GAAP the concept of extraordinary items. Presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained. We adopted this guidance as of January 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Receivables - Troubled Debt Restructurings by Creditors - Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure: In August 2014, the FASB issued updated guidance for troubled debt restructurings affecting creditors that hold government guaranteed mortgage loans. The guidance requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if certain conditions are met. We adopted the guidance as of January 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Transfers and Servicing - Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures: In June 2014, the FASB issued updated guidance for repurchase agreement and security lending transactions to change the accounting for repurchase-to-maturity transactions and linked repurchase financings to be accounted for as secured borrowings, consistent with the accounting for other repurchase agreements. The amendments also require new disclosures to increase transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. We adopted accounting changes for the new guidance as of January 1, 2015, and adopted the required disclosures as of April 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Receivables - Troubled Debt Restructurings by Creditors - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure: In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. We adopted the guidance as of January 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists: In July 2013, the FASB issued guidance to amend the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new guidance states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. We adopted this guidance as of January 1, 2014. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. Other Expenses - Fees Paid to the Federal Government by Health Insurers: In July 2011, the FASB issued guidance on the accounting for fees owed by health insurers as mandated by the Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act, which imposes an annual fee on health insurers for each calendar year beginning on or after January 1, 2014. A health insurer's portion of the annual fee is payable by September 30 of the applicable calendar year once the entity provides health insurance for any U.S. health risk in that year. The accounting guidance specifies that the liability for the fee should be estimated and recorded in full in the applicable calendar year in which the fee is payable. We adopted this guidance as of January 1, 2014. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures. |
Description of Accounting Pronouncements Pending Adoption | Accounting Pronouncements Pending Adoption Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment: In January 2017, the FASB issued amendments simplifying the subsequent measurement of goodwill. An entity, under this update, is no longer required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, the entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendments are effective for public business entities that are U.S. SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after Dec. 15, 2019. Early adoption is permitted for any goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures. Business Combinations - Clarifying the Definition of a Business: In January 2017, the FASB issued amendments clarifying when a set of assets and activities is a business. The amendments provide a screen to determine when a set of assets and activities is not a business. The amendments are effective for public business entities beginning after December 15, 2017, including interim periods within those periods. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures. Statement of Cash Flows - Restricted Cash: In November 2016, the FASB issued amendments requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures. Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory: In October 2016, the FASB issued amendments that require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. We are evaluating the impact of adoption of this guidance on our financial position, results of operations, or disclosures. Consolidation - Interests Held through Related Parties That Are under Common Control: In October 2016, the FASB issued amendments which clarify the consolidation guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, or disclosures. Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payment s: In August 2016, the FASB issued amendments that provide guidance on eight specific statement of cash flows classification issues. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for any interim or annual period. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, disclosures, or statements of cash flows. Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments: In June 2016, the FASB issued amendments that require a financial asset (or a group of financial assets) measured on an amortized cost basis to be presented net of an allowance for credit losses in order to reflect the amount expected to be collected on the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform about a credit loss. Credit losses on available-for-sale debt securities will continue to be measured in a manner similar to current GAAP. However, the amendments require that credit losses be presented as an allowance rather than as a writedown. Other amendments include changes to the balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant amount of credit deterioration since origination. The amendments are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Companies may early adopt this guidance as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, loans and loan receivables and reinsurance recoverables (See Notes 3 and 8 for current balances of instruments in scope). We are continuing to evaluate the impact of adoption of this guidance on our financial position, results of operations and disclosures. Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting: In March 2016, the FASB issued amendments which simplify several aspects for share-based payment award transactions, including income tax consequences, classification of awards as either liability or equities, and classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. The amendment requires prospective recognition of excess tax benefits and deficiencies in the income statement, rather than in paid-in capital. As a result of applying this requirement, we estimate that recognition of excess tax benefits will increase volatility in our statement of operations but will not have a significant impact on our statement of financial position, operations, or disclosures. We continue to evaluate the impact of this guidance as estimates will vary from the actual expense based on changes in actual share price. The amendment also requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The guidance requires modified retrospective transition for settlements on all outstanding awards (both historical and future) that did not give rise to an excess benefit to be recorded through retained earnings on a cumulative-effect basis. We estimate that the adoption of these amendments in the guidance will not have a significant impact on our financial position, results of operations, or disclosures. Additionally, the amendment requires that the minimum statutory tax withholding for all outstanding liability awards be reclassified at the date of adoption to equity (assuming equity classification results from the guidance change), and record a cumulative-effect adjustment to equity on a modified retrospective basis. We estimate that the adoption of these amendments in the guidance will not have a significant impact on our financial position, results of operations, or disclosures. The guidance requires certain reclassifications of balances on the statement of cash flows to or from operating and financing activities. The reclassification guidance will not have a significant impact on our statement of cash flows. The amendment allows an entity to elect whether to use estimates of forfeitures, or to account for forfeitures as they occur, using modified retrospective application. We estimate that the election and adoption of this amendment in the guidance will not have a significant impact on our financial position, results of operations, or disclosures. Investments - Equity Method and Joint Ventures - Simplifying the Transition to the Equity Method of Accounting: In March 2016, the FASB issued amendments which eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. Per the amendments, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. We have evaluated the adoption of this guidance and do not expect the guidance to have a significant impact on our financial position, results of operations, or disclosures. Derivatives and Hedging - Contingent Put and Call Options in Debt Instruments: In March 2016, the FASB issued amendments which clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have evaluated the adoption of this guidance and do not expect the guidance to have a significant impact on our financial position, results of operations, or disclosures. Derivatives and Hedging - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships: In March 2016, the FASB issued amendments which clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria remain intact. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have evaluated the adoption of this guidance and do not expect the guidance to have a significant impact on our financial position, results of operations, or disclosures. Leases: In February 2016, the FASB issued updated guidance for accounting for leases. Per the amendments, lessees will be required to recognize all leases on the balance sheet, with the exception of short-term leases. A lease liability will be recorded for the obligation of a lessee to make lease payments arising from a lease. A right-of-use asset, will be recorded which represents the lessee’s right to use, or to control the use of, a specified asset for a lease term. Under the new guidance, lessor accounting is largely unchanged. The amendments are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have identified certain operating leases in scope of this guidance to include office space and equipment leases (See Note 15 for current balances of leases in scope). The leases within scope of this guidance will increase our right-of-use assets recorded on our financial position, however we estimate leases within scope of the guidance to represent less than 1% of our total assets as of December 31, 2016. We estimate that the adoption of this guidance will not have a significant impact on our financial position, results of operations and disclosures. Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities: In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require that equity investments be measured at fair value with changes recognized in net income; that changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option be recognized in other comprehensive income; and that entities would make the assessment of the ability to realize a deferred tax asset (DTA) related to an available-for-sale (AFS) debt security in combination with the entity's other DTAs. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted, with the exception of the own credit provision if an entity has elected to measure a liability at fair value. We have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, perpetual securities and equity securities (See Note 3 for current balances of instruments in scope). We estimate that the impact of this guidance will increase volatility in our statement of operations and we are continuing to evaluate the impact of this guidance on our statement of financial position, operations, or disclosures. Revenue from Contracts with Customers: In May 2014, the FASB issued updated guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date for this standard to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Other updates related to the new guidance, which are effective as of the same reporting period, pertain to improvements in certain areas. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods. We have identified revenue in scope of this guidance to include certain revenues associated with affiliated entities in support of our operations. We estimate the revenue within scope of the guidance to represent less than 1% of our total revenues as of December 31, 2016. We estimate that the adoption of this guidance will not have a significant impact on our financial position, results of operations and disclosures. |
BUSINESS SEGMENT AND FOREIGN 30
BUSINESS SEGMENT AND FOREIGN INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Information regarding operations by segment for the years ended December 31 follows: (In millions) 2016 2015 2014 Revenues: Aflac Japan: Net earned premiums Cancer $ 5,639 $ 4,933 $ 5,596 Medical and other health 3,429 3,092 3,770 Life insurance 4,469 4,021 4,495 Net investment income 2,554 2,436 2,662 Other income 40 31 32 Total Aflac Japan 16,131 14,513 16,555 Aflac U.S.: Net earned premiums: Accident/disability 2,469 2,391 2,303 Cancer 1,299 1,293 1,279 Other health 1,415 1,395 1,371 Life insurance 271 268 258 Net investment income 703 678 645 Other income 10 8 3 Total Aflac U.S. 6,167 6,033 5,859 Other business segments 275 225 43 Total business segment revenues 22,573 20,771 22,457 Realized investment gains (losses) (1) (208 ) 55 171 Corporate 284 282 281 Intercompany eliminations (199 ) (201 ) (248 ) Other non-operating income (loss) 109 (35 ) (2) 67 Total revenues $ 22,559 $ 20,872 $ 22,728 (1) Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations (2) Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. The loss was offset by derivative gains included in realized investment gains (losses). |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | (In millions) 2016 2015 2014 Pretax earnings: Aflac Japan $ 3,334 $ 3,175 $ 3,458 Aflac U.S. 1,208 1,101 1,073 Other business segments 18 14 (2 ) Total business segment pretax operating earnings 4,560 4,290 4,529 Interest expense, noninsurance operations (128 ) (146 ) (198 ) Corporate and eliminations (129 ) (71 ) (78 ) Pretax operating earnings 4,303 4,073 4,253 Realized investment gains (losses) (1) (208 ) 55 171 Other non-operating income (loss) (28 ) (3) (266 ) (2),(3) 67 Total earnings before income taxes $ 4,067 $ 3,862 $ 4,491 Income taxes applicable to pretax operating earnings $ 1,491 $ 1,403 $ 1,456 Effect of foreign currency translation on after-tax operating 141 (198 ) (117 ) (1) Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations (2) Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. This loss was offset by derivative gains included in realized investment gains (losses). (3) Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt |
Reconciliation of Assets from Segment to Consolidated | Assets as of December 31 were as follows: (In millions) 2016 2015 2014 Assets: Aflac Japan $ 107,858 $ 97,646 $ 98,525 Aflac U.S. 19,453 18,537 18,383 Other business segments 270 188 128 Total business segment assets 127,581 116,371 117,036 Corporate 26,476 23,375 24,596 Intercompany eliminations (24,238 ) (21,490 ) (21,905 ) Total assets $ 129,819 $ 118,256 $ 119,727 Prior year amounts have been adjusted for the adoption of the accounting guidance on January 1, 2016 related to debt issuance costs |
Foreign Currency Disclosure | Yen-Translation Effects: The following table shows the yen/dollar exchange rates used for or during the periods ended December 31 . Exchange effects were calculated using the same yen/dollar exchange rate for the current year as for each respective prior year. 2016 2015 2014 Statements of Earnings: Weighted-average yen/dollar exchange rate 108.70 120.99 105.46 Yen percent strengthening (weakening) 11.3 % (12.8 )% (7.5 )% Exchange effect on pretax operating earnings (in millions) $ 218 $ (288 ) $ (180 ) 2016 2015 Balance Sheets: Yen/dollar exchange rate at December 31 116.49 120.61 Yen percent strengthening (weakening) 3.54 % (.05 )% Exchange effect on total assets (in millions) $ 2,820 $ (36 ) Exchange effect on total liabilities (in millions) 3,109 (41 ) |
Schedule of Intercompany Transfers of Funds | Information on transfers for each of the years ended December 31 is shown below. See Note 13 for information concerning restrictions on transfers from Aflac Japan. (In millions) 2016 2015 2014 Management fees $ 79 $ 53 $ 39 Allocated expenses 106 101 71 Profit repatriation 1,286 2,139 1,704 Total transfers from Aflac Japan $ 1,471 $ 2,293 $ 1,814 |
Property, Plant and Equipment | Classes of property and equipment as of December 31 were as follows: (In millions) 2016 2015 Property and equipment: Land $ 166 $ 166 Buildings 421 400 Equipment and furniture 355 329 Total property and equipment 942 895 Less accumulated depreciation 509 468 Net property and equipment $ 433 $ 427 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule Of Net Investment Income | The components of net investment income for the years ended December 31 were as follows: (In millions) 2016 2015 2014 Fixed-maturity securities $ 3,214 $ 3,094 $ 3,249 Perpetual securities 94 114 141 Equity securities 35 3 1 Other investments 31 15 6 Short-term investments and cash equivalents 11 4 2 Gross investment income 3,385 3,230 3,399 Less investment expenses 107 95 80 Net investment income $ 3,278 $ 3,135 $ 3,319 |
Available-for-sale Securities | The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments at December 31 are shown in the following tables. 2016 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value: Fixed maturities: Yen-denominated: Japan government and agencies $ 22,857 $ 3,359 $ 160 $ 26,056 Municipalities 246 29 8 267 Mortgage- and asset-backed securities 1,096 33 8 1,121 Public utilities 1,533 318 3 1,848 Sovereign and supranational 862 186 5 1,043 Banks/financial institutions 2,673 403 74 3,002 Other corporate 3,192 623 3 3,812 Total yen-denominated 32,459 4,951 261 37,149 Dollar-denominated: U.S. government and agencies 148 10 0 158 Municipalities 894 142 8 1,028 Mortgage- and asset-backed securities 196 20 0 216 Public utilities 5,205 690 60 5,835 Sovereign and supranational 335 91 0 426 Banks/financial institutions 2,570 507 16 3,061 Other corporate 24,556 2,021 690 25,887 Total dollar-denominated 33,904 3,481 774 36,611 Total fixed maturities 66,363 8,432 1,035 73,760 Perpetual securities: Yen-denominated: Banks/financial institutions 1,266 128 49 1,345 Other corporate 189 24 0 213 Dollar-denominated: Banks/financial institutions 51 24 0 75 Total perpetual securities 1,506 176 49 1,633 Equity securities: Yen-denominated 624 83 2 705 Dollar-denominated 579 31 6 604 Total equity securities 1,203 114 8 1,309 Total securities available for sale $ 69,072 $ 8,722 $ 1,092 $ 76,702 2015 (In millions) Cost or Gross Gross Fair Securities available for sale, carried at fair value: Fixed maturities: Yen-denominated: Japan government and agencies $ 17,293 $ 1,862 $ 0 $ 19,155 Municipalities 128 9 0 137 Mortgage- and asset-backed securities 322 33 0 355 Public utilities 1,400 210 10 1,600 Sovereign and supranational 791 180 0 971 Banks/financial institutions 2,321 325 105 2,541 Other corporate 3,337 448 33 3,752 Total yen-denominated 25,592 3,067 148 28,511 Dollar-denominated: U.S. government and agencies 110 11 0 121 Municipalities 926 151 6 1,071 Mortgage- and asset-backed securities 200 27 0 227 Public utilities 5,464 636 221 5,879 Sovereign and supranational 331 105 0 436 Banks/financial institutions 2,865 634 21 3,478 Other corporate 25,154 1,774 1,302 25,626 Total dollar-denominated 35,050 3,338 1,550 36,838 Total fixed maturities 60,642 6,405 1,698 65,349 Perpetual securities: Yen-denominated: Banks/financial institutions 1,581 143 93 1,631 Other corporate 183 22 0 205 Dollar-denominated: Banks/financial institutions 77 35 1 111 Total perpetual securities 1,841 200 94 1,947 Equity securities: Yen-denominated 472 19 4 487 Dollar-denominated 8 3 0 11 Total equity securities 480 22 4 498 Total securities available for sale $ 62,963 $ 6,627 $ 1,796 $ 67,794 |
Held-to-maturity Securities | 2016 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturities: Yen-denominated: Japan government and agencies $ 20,702 $ 5,338 $ 0 $ 26,040 Municipalities 350 107 0 457 Mortgage- and asset-backed securities 30 2 0 32 Public utilities 3,201 358 23 3,536 Sovereign and supranational 2,602 283 8 2,877 Banks/financial institutions 3,731 195 26 3,900 Other corporate 2,734 452 7 3,179 Total yen-denominated 33,350 6,735 64 40,021 Total securities held to maturity $ 33,350 $ 6,735 $ 64 $ 40,021 2015 (In millions) Cost or Gross Gross Fair Securities held to maturity, carried at amortized cost: Fixed maturities: Yen-denominated: Japan government and agencies $ 20,004 $ 3,387 $ 0 $ 23,391 Municipalities 341 74 0 415 Mortgage- and asset-backed securities 36 2 0 38 Public utilities 3,092 205 94 3,203 Sovereign and supranational 2,555 182 26 2,711 Banks/financial institutions 4,431 168 53 4,546 Other corporate 3,000 260 44 3,216 Total yen-denominated 33,459 4,278 217 37,520 Total securities held to maturity $ 33,459 $ 4,278 $ 217 $ 37,520 |
Investments Classified by Contractual Maturity Date | The contractual maturities of our investments in fixed maturities at December 31, 2016 , were as follows: Aflac Japan Aflac U.S. (In millions) Amortized Fair Amortized Fair Available for sale: Due in one year or less $ 180 $ 204 $ 103 $ 105 Due after one year through five years 3,441 3,696 617 668 Due after five years through 10 years 9,374 9,694 2,860 3,018 Due after 10 years 39,461 45,125 8,545 9,411 Mortgage- and asset-backed securities 1,144 1,184 43 48 Total fixed maturities available for sale $ 53,600 $ 59,903 $ 12,168 $ 13,250 Held to maturity: Due after one year through five years 2,009 2,112 0 0 Due after five years through 10 years 1,584 1,737 0 0 Due after 10 years 29,727 36,140 0 0 Mortgage- and asset-backed securities 30 32 0 0 Total fixed maturities held to maturity $ 33,350 $ 40,021 $ 0 $ 0 |
Economic Maturities of Investments in Perpetual Securities | The economic maturities of our investments in perpetual securities, which were all reported as available for sale at December 31, 2016 , were as follows: Aflac Japan Aflac U.S. (In millions) Amortized Fair Amortized Fair Due in one year or less $ 87 $ 82 $ 0 $ 0 Due after one year through five years 189 213 0 0 Due after 10 years 1,191 1,282 39 56 Total perpetual securities available for sale $ 1,467 $ 1,577 $ 39 $ 56 |
Investment Exposures Exceeding 10 Percent Shareholders Equity | Investment exposures that individually exceeded 10% of shareholders' equity as of December 31 were as follows: 2016 2015 (In millions) Credit Amortized Fair Credit Amortized Fair Japan National Government (1) A $42,931 $51,345 A $36,859 $42,025 (1) Japan Government Bonds (JGBs) or JGB-backed securities |
Gain (Loss) on Investments | Information regarding pretax realized gains and losses from investments for the years ended December 31 follows: (In millions) 2016 2015 2014 Realized investment gains (losses): Fixed maturities: Available for sale: Gross gains from sales $ 77 $ 224 $ 192 Gross losses from sales (134 ) (1) (8 ) (12 ) Net gains (losses) from redemptions (1) 186 52 34 Other-than-temporary impairment losses (24 ) (1) (152 ) (31 ) Held to maturity: Net gains (losses) from redemptions 0 0 1 Total fixed maturities 105 116 184 Perpetual securities: Available for sale: Net gains (losses) from redemptions 64 35 0 Other-than-temporary impairment losses (2 ) 0 0 Total perpetual securities 62 35 0 Equity securities: Net gains (losses) from redemptions 22 0 0 Other-than-temporary impairment losses (57 ) (1 ) 0 Total equity securities (35 ) (1 ) 0 Derivatives and other: Derivative gains (losses) (255 ) (10 ) 31 Total derivatives and other (255 ) (10 ) 31 Total realized investment gains (losses) $ (123 ) $ 140 $ 215 (1) Primarily driven by foreign exchange |
Unrealized Gain (Loss) on Investments | Information regarding changes in unrealized gains and losses from investments for the years ended December 31 follows: (In millions) 2016 2015 2014 Changes in unrealized gains (losses): Fixed maturities: Available for sale $ 2,690 $ (2,481 ) $ 5,629 Transferred to held to maturity 0 0 (10 ) Perpetual securities: Available for sale 21 (123 ) 269 Equity securities 88 9 5 Total change in unrealized gains (losses) $ 2,799 $ (2,595 ) $ 5,893 |
Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities | The net effect on shareholders' equity of unrealized gains and losses from investment securities at December 31 was as follows: (In millions) 2016 2015 Unrealized gains (losses) on securities available for sale $ 7,630 $ 4,831 Deferred income taxes (2,825 ) (1,845 ) Shareholders’ equity, unrealized gains (losses) on investment securities $ 4,805 $ 2,986 |
Investments Gross Unrealized Loss Aging | The following tables show the fair values and gross unrealized losses of our available-for-sale and held-to-maturity investments that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31 . 2016 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: Japan government and Yen-denominated $ 3,958 $ 160 $ 3,958 $ 160 $ 0 $ 0 Municipalities: Dollar-denominated 44 8 0 0 44 8 Yen-denominated 105 8 105 8 0 0 Mortgage- and asset- Yen-denominated 713 8 713 8 0 0 Public utilities: Dollar-denominated 1,265 60 790 32 475 28 Yen-denominated 635 26 347 14 288 12 Sovereign and supranational: Yen-denominated 244 13 38 5 206 8 Banks/financial institutions: Dollar-denominated 268 16 238 10 30 6 Yen-denominated 1,521 100 636 19 885 81 Other corporate: Dollar-denominated 10,462 690 7,252 346 3,210 344 Yen-denominated 321 10 321 10 0 0 Total fixed maturities 19,536 1,099 14,398 612 5,138 487 Perpetual securities: Yen-denominated 479 49 85 1 394 48 Total perpetual securities 479 49 85 1 394 48 Equity securities: Dollar-denominated 211 6 211 6 0 0 Yen-denominated 49 2 49 2 0 0 Total equity securities 260 8 260 8 0 0 Total $ 20,275 $ 1,156 $ 14,743 $ 621 $ 5,532 $ 535 2015 Total Less than 12 months 12 months or longer (In millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: Municipalities: Dollar-denominated $ 80 $ 6 $ 80 $ 6 $ 0 $ 0 Public utilities: Dollar-denominated 2,127 221 1,689 132 438 89 Yen-denominated 1,487 104 1,062 73 425 31 Sovereign and supranational: Yen-denominated 580 26 385 13 195 13 Banks/financial institutions: Dollar-denominated 366 21 348 11 18 10 Yen-denominated 2,350 158 1,147 14 1,203 144 Other corporate: Dollar-denominated 13,430 1,302 11,068 770 2,362 532 Yen-denominated 1,151 77 343 5 808 72 Total fixed maturities 21,571 1,915 16,122 1,024 5,449 891 Perpetual securities: Dollar-denominated 6 1 0 0 6 1 Yen-denominated 645 93 216 12 429 81 Total perpetual securities 651 94 216 12 435 82 Equity securities: Yen-denominated 191 4 191 4 0 0 Total equity securities 191 4 191 4 0 0 Total $ 22,413 $ 2,013 $ 16,529 $ 1,040 $ 5,884 $ 973 |
Securities Lending Transactions Accounted for as Secured Borrowings | Details of our securities lending activities as of December 31 were as follows: Securities Lending Transactions Accounted for as Secured Borrowings 2016 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 Total Securities lending transactions: Public utilities $ 62 $ 0 $ 62 Banks/financial institutions 34 0 34 Other corporate 430 0 430 Total borrowings $ 526 $ 0 $ 526 Gross amount of recognized liabilities for securities lending transactions $ 526 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 0 (1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous. Securities Lending Transactions Accounted for as Secured Borrowings 2015 Remaining Contractual Maturity of the Agreements (In millions) Overnight (1) Up to 30 Total Securities lending transactions: Japan government and agencies $ 0 $ 499 $ 499 Public utilities 108 0 108 Banks/financial institutions 13 0 13 Other corporate 321 0 321 Total borrowings $ 442 $ 499 $ 941 Gross amount of recognized liabilities for securities lending transactions $ 941 Amounts related to agreements not included in offsetting disclosure in Note 4 $ 0 (1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous. |
Variable Interest Entity, Consolidated | |
Investments in Variable Interest Entities | The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported as of December 31. Investments in Consolidated Variable Interest Entities 2016 2015 (In millions) Cost or Amortized Fair Cost or Amortized Fair Assets: Fixed maturities, available for sale $ 4,168 $ 4,982 $ 3,739 $ 4,554 Perpetual securities, available for sale 237 208 255 228 Equity securities 972 1,044 363 363 Other investments 819 789 0 0 Other assets 127 127 102 102 Total assets of consolidated VIEs $ 6,323 $ 7,150 $ 4,459 $ 5,247 Liabilities: Other liabilities $ 146 $ 146 $ 293 $ 293 Total liabilities of consolidated VIEs $ 146 $ 146 $ 293 $ 293 |
Variable Interest Entity, Not Consolidated | |
Investments in Variable Interest Entities | The table below reflects the amortized cost, fair value and balance sheet caption in which our investment in VIEs not consolidated are reported as of December 31. Investments in Variable Interest Entities Not Consolidated 2016 2015 (In millions) Amortized Fair Amortized Fair Assets: Fixed maturities, available for sale $ 4,729 $ 5,261 $ 4,731 $ 5,093 Perpetual securities, available for sale 172 200 249 253 Fixed maturities, held to maturity 2,563 2,948 2,477 2,636 Other investments 1 1 0 0 Total investments in VIEs not consolidated $ 7,465 $ 8,410 $ 7,457 $ 7,982 Prior year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to consolidations. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk | The counterparties to these derivatives are financial institutions with the following credit ratings as of December 31: 2016 2015 (In millions) Notional Amount Asset Derivatives Liability Derivatives Notional Amount Asset Derivatives Liability Derivatives Counterparties' credit rating: AA $ 6,844 $ 247 $ (308 ) $ 2,187 $ 166 $ (35 ) A 36,019 900 (1,621 ) 19,940 510 (336 ) BBB 1,064 60 (69 ) 0 0 0 Total $ 43,927 $ 1,207 $ (1,998 ) $ 22,127 $ 676 $ (371 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 2016 (In millions) Net Derivatives Asset Liability Hedge Designation/ Derivative Type Notional Fair Value Fair Value Fair Value Cash flow hedges: Foreign currency swaps $ 75 $ (10 ) $ 0 $ (10 ) Total cash flow hedges 75 (10 ) 0 (10 ) Fair value hedges: Foreign currency forwards 10,965 (759 ) 0 (759 ) Foreign currency options 4,224 (30 ) 2 (32 ) Total fair value hedges 15,189 (789 ) 2 (791 ) Net investment hedge: Foreign currency forwards 209 3 5 (2 ) Foreign currency options 843 24 41 (17 ) Total net investment hedge 1,052 27 46 (19 ) Non-qualifying strategies: Foreign currency swaps 6,266 270 490 (220 ) Foreign currency forwards 21,218 (289 ) 667 (956 ) Foreign currency options 41 (2 ) 0 (2 ) Credit default swaps 86 2 2 0 Total non-qualifying strategies 27,611 (19 ) 1,159 (1,178 ) Total derivatives $ 43,927 $ (791 ) $ 1,207 $ (1,998 ) Balance Sheet Location Other assets $ 18,329 $ 1,207 $ 1,207 $ 0 Other liabilities 25,598 (1,998 ) 0 (1,998 ) Total derivatives $ 43,927 $ (791 ) $ 1,207 $ (1,998 ) 2015 (In millions) Net Derivatives Asset Liability Hedge Designation/ Derivative Type Notional Fair Value Fair Value Fair Value Cash flow hedges: Foreign currency swaps $ 75 $ (15 ) $ 0 $ (15 ) Total cash flow hedges 75 (15 ) 0 (15 ) Fair value hedges: Foreign currency forwards 13,080 45 88 (43 ) Foreign currency options 1,250 0 0 0 Total fair value hedges 14,330 45 88 (43 ) Net investment hedge: Foreign currency forwards 763 13 19 (6 ) Foreign currency options 266 (3 ) 5 (8 ) Total net investment hedge 1,029 10 24 (14 ) Non-qualifying strategies: Foreign currency swaps 6,599 264 563 (299 ) Foreign currency forwards 11 0 0 0 Credit default swaps 83 1 1 0 Total non-qualifying strategies 6,693 265 564 (299 ) Total derivatives $ 22,127 $ 305 $ 676 $ (371 ) Balance Sheet Location Other assets $ 11,413 $ 676 $ 676 $ 0 Other liabilities 10,714 (371 ) 0 (371 ) Total derivatives $ 22,127 $ 305 $ 676 $ (371 ) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges for the years ended December 31. Fair Value Hedging Relationships (In millions) Hedging Derivatives Hedged Items Hedging Derivatives Hedged Items Total Gains (Losses) Gains (Losses) Gains (Losses) Ineffectiveness 2016: Foreign currency Fixed-maturity securities and equity securities $ 207 $ (338 ) $ 545 $ (566 ) $ (21 ) Foreign currency Fixed-maturity securities (95 ) (18 ) (77 ) 70 (7 ) 2015: Foreign currency forwards Fixed-maturity securities $ (133 ) $ (136 ) $ 3 $ (5 ) $ (2 ) Foreign currency options Fixed-maturity securities (4 ) 3 (7 ) 7 0 Interest rate Fixed-maturity securities (95 ) 19 (114 ) 99 (15 ) 2014: Foreign currency forwards Fixed-maturity securities $ (1,835 ) $ (38 ) $ (1,797 ) $ 1,819 $ 22 Foreign currency options Fixed-maturity securities (41 ) (4 ) (37 ) 38 1 Interest rate Fixed-maturity securities (318 ) (36 ) (282 ) 316 34 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments for the years ended December 31. 2016 2015 2014 (In millions) Realized Investment Other (1) Realized Investment Other (1) Realized Other (1) Qualifying hedges: Cash flow hedges: Foreign currency swaps $ 1 $ 3 $ 0 $ 0 $ (2 ) $ (17 ) Total cash flow hedges 1 3 0 0 (2 ) (17 ) Fair value hedges: Foreign currency forwards (2) (359 ) 0 (138 ) 0 (16 ) 0 Foreign currency options ( 2) (25 ) 0 3 0 (3 ) 0 Interest rate swaptions (2) 0 0 4 0 (2 ) 0 Total fair value hedges (384 ) 0 (131 ) 0 (21 ) 0 Net investment hedge: Non-derivative hedging 0 0 0 3 0 39 Foreign currency forwards 0 (118 ) 0 4 0 89 Foreign currency options 0 73 0 0 0 (3 ) Total net investment hedge 0 (45 ) 0 7 0 125 Non-qualifying strategies: Foreign currency swaps 117 0 16 0 151 0 Foreign currency forwards 9 0 100 0 (11 ) 0 Credit default swaps 2 0 1 0 3 0 Interest rate swaps 0 0 5 0 (1 ) 0 Interest rate swaptions 0 0 0 0 1 0 Futures 0 0 (1 ) 0 (89 ) 0 Total non- qualifying strategies 128 0 121 0 54 0 Total $ (255 ) $ (42 ) $ (10 ) $ 7 $ 31 $ 108 (1) Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). (2) Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail) |
Offsetting Assets | Offsetting of Financial Assets and Derivative Assets 2016 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement $ 1,080 $ 0 $ 1,080 $ (698 ) $ 0 $ (382 ) $ 0 Derivative assets not subject to a master netting agreement or offsetting arrangement 127 127 127 Total derivative assets 1,207 0 1,207 (698 ) 0 (382 ) 127 Securities lending and similar arrangements 513 0 513 0 0 (513 ) 0 Total $ 1,720 $ 0 $ 1,720 $ (698 ) $ 0 $ (895 ) $ 127 2015 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Assets Gross Amount Offset in Balance Sheet Net Amount of Assets Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Received Net Amount Derivative assets: Derivative assets subject to a master netting agreement or offsetting arrangement $ 574 $ 0 $ 574 $ (51 ) $ (190 ) $ (326 ) $ 7 Derivative assets not subject to a master netting agreement or offsetting arrangement 102 102 102 Total derivative assets 676 0 676 (51 ) (190 ) (326 ) 109 Securities lending and similar arrangements 921 0 921 0 0 (921 ) 0 Total $ 1,597 $ 0 $ 1,597 $ (51 ) $ (190 ) $ (1,247 ) $ 109 |
Offsetting Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities 2016 Gross Amounts Not Offset in Balance Sheet (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement $ (1,852 ) $ 0 $ (1,852 ) $ 698 $ 1,130 $ 21 $ (3 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement (146 ) (146 ) (146 ) Total derivative liabilities (1,998 ) 0 (1,998 ) 698 1,130 21 (149 ) Securities lending and similar arrangements (526 ) 0 (526 ) 513 0 0 (13 ) Total $ (2,524 ) $ 0 $ (2,524 ) $ 1,211 $ 1,130 $ 21 $ (162 ) 2015 Gross Amounts Not Offset (In millions) Gross Amount of Recognized Liabilities Gross Amount Offset in Balance Sheet Net Amount of Liabilities Presented in Balance Sheet Financial Instruments Securities Collateral Cash Collateral Pledged Net Amount Derivative liabilities: Derivative liabilities subject to a master netting agreement or offsetting arrangement $ (78 ) $ 0 $ (78 ) $ 51 $ 18 $ 3 $ (6 ) Derivative liabilities not subject to a master netting agreement or offsetting arrangement (293 ) (293 ) $ (293 ) Total derivative liabilities (371 ) 0 (371 ) 51 18 3 (299 ) Securities lending and similar arrangements (941 ) 0 (941 ) 921 0 0 (20 ) Total $ (1,312 ) $ 0 $ (1,312 ) $ 972 $ 18 $ 3 $ (319 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis as of December 31. 2016 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturities: Government and agencies $ 25,387 $ 827 $ 0 $ 26,214 Municipalities 0 1,295 0 1,295 Mortgage- and asset-backed securities 0 1,139 198 1,337 Public utilities 0 7,667 16 7,683 Sovereign and supranational 0 1,469 0 1,469 Banks/financial institutions 0 6,038 25 6,063 Other corporate 0 29,699 0 29,699 Total fixed maturities 25,387 48,134 239 73,760 Perpetual securities: Banks/financial institutions 0 1,420 0 1,420 Other corporate 0 213 0 213 Total perpetual securities 0 1,633 0 1,633 Equity securities 1,300 6 3 1,309 Other assets: Foreign currency swaps 0 365 125 490 Foreign currency forwards 0 672 0 672 Foreign currency options 0 43 0 43 Credit default swaps 0 0 2 2 Total other assets 0 1,080 127 1,207 Other investments 276 0 0 276 Cash and cash equivalents 4,859 0 0 4,859 Total assets $ 31,822 $ 50,853 $ 369 $ 83,044 Liabilities: Foreign currency swaps $ 0 $ 84 $ 146 $ 230 Foreign currency forwards 0 1,717 0 1,717 Foreign currency options 0 51 0 51 Total liabilities $ 0 $ 1,852 $ 146 $ 1,998 2015 (In millions) Quoted Prices in Significant Significant Total Assets: Securities available for sale, carried at Fixed maturities: Government and agencies $ 18,669 $ 607 $ 0 $ 19,276 Municipalities 0 1,208 0 1,208 Mortgage- and asset-backed securities 0 362 220 582 Public utilities 0 7,479 0 7,479 Sovereign and supranational 0 1,407 0 1,407 Banks/financial institutions 0 5,993 26 6,019 Other corporate 0 29,378 0 29,378 Total fixed maturities 18,669 46,434 246 65,349 Perpetual securities: Banks/financial institutions 0 1,742 0 1,742 Other corporate 0 205 0 205 Total perpetual securities 0 1,947 0 1,947 Equity securities 489 6 3 498 Other assets: Foreign currency swaps 0 462 101 563 Foreign currency forwards 0 107 0 107 Foreign currency options 0 5 0 5 Credit default swaps 0 0 1 1 Total other assets 0 574 102 676 Other investments 176 0 0 176 Cash and cash equivalents 4,350 0 0 4,350 Total assets $ 23,684 $ 48,961 $ 351 $ 72,996 Liabilities: Foreign currency swaps $ 0 $ 21 $ 293 $ 314 Foreign currency forwards 0 49 0 49 Foreign currency options 0 8 0 8 Total liabilities $ 0 $ 78 $ 293 $ 371 |
Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost | The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value as of December 31. 2016 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturities: Government and agencies $ 20,702 $ 26,040 $ 0 $ 0 $ 26,040 Municipalities 350 0 457 0 457 Mortgage and asset-backed 30 0 10 22 32 Public utilities 3,201 0 3,536 0 3,536 Sovereign and 2,602 0 2,877 0 2,877 Banks/financial institutions 3,731 0 3,900 0 3,900 Other corporate 2,734 0 3,179 0 3,179 Other investments 1,174 0 0 1,142 1,142 Total assets $ 34,524 $ 26,040 $ 13,959 $ 1,164 $ 41,163 Liabilities: Other policyholders’ funds $ 6,659 $ 0 $ 0 $ 6,540 $ 6,540 Notes payable 5,339 0 0 5,530 5,530 Total liabilities $ 11,998 $ 0 $ 0 $ 12,070 $ 12,070 2015 (In millions) Carrying Quoted Prices in Significant Significant Total Assets: Securities held to maturity, Fixed maturities: Government and agencies $ 20,004 $ 23,391 $ 0 $ 0 $ 23,391 Municipalities 341 0 415 0 415 Mortgage and asset-backed 36 0 12 26 38 Public utilities 3,092 0 3,203 0 3,203 Sovereign and 2,555 0 2,711 0 2,711 Banks/financial institutions 4,431 0 4,546 0 4,546 Other corporate 3,000 0 3,216 0 3,216 Other investments 118 0 0 118 118 Total assets $ 33,577 $ 23,391 $ 14,103 $ 144 $ 37,638 Liabilities: Other policyholders’ funds $ 6,285 $ 0 $ 0 $ 6,160 $ 6,160 Notes payable 4,951 0 0 5,256 5,256 Total liabilities $ 11,236 $ 0 $ 0 $ 11,416 $ 11,416 Amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs. |
Fair Value Assets Available-for-Sale Securities Primary Pricing Sources | The following tables present the pricing sources for the fair values of our fixed maturities, perpetual securities, and equity securities as of December 31. 2016 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturities: Government and agencies: Third party pricing vendor $ 25,387 $ 827 $ 0 $ 26,214 Total government and agencies 25,387 827 0 26,214 Municipalities: Third party pricing vendor 0 1,295 0 1,295 Total municipalities 0 1,295 0 1,295 Mortgage- and asset-backed securities: Third party pricing vendor 0 1,139 0 1,139 Broker/other 0 0 198 198 Total mortgage- and asset-backed securities 0 1,139 198 1,337 Public utilities: Third party pricing vendor 0 7,667 0 7,667 Broker/other 0 0 16 16 Total public utilities 0 7,667 16 7,683 Sovereign and supranational: Third party pricing vendor 0 1,469 0 1,469 Total sovereign and supranational 0 1,469 0 1,469 Banks/financial institutions: Third party pricing vendor 0 6,038 0 6,038 Broker/other 0 0 25 25 Total banks/financial institutions 0 6,038 25 6,063 Other corporate: Third party pricing vendor 0 29,699 0 29,699 Total other corporate 0 29,699 0 29,699 Total fixed maturities 25,387 48,134 239 73,760 Perpetual securities: Banks/financial institutions: Third party pricing vendor 0 1,420 0 1,420 Total banks/financial institutions 0 1,420 0 1,420 Other corporate: Third party pricing vendor 0 213 0 213 Total other corporate 0 213 0 213 Total perpetual securities 0 1,633 0 1,633 Equity securities: Third party pricing vendor 1,300 6 0 1,306 Broker/other 0 0 3 3 Total equity securities 1,300 6 3 1,309 Total securities available for sale $ 26,687 $ 49,773 $ 242 $ 76,702 2015 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities available for sale, carried at fair value: Fixed maturities: Government and agencies: Third party pricing vendor $ 18,669 $ 607 $ 0 $ 19,276 Total government and agencies 18,669 607 0 19,276 Municipalities: Third party pricing vendor 0 1,208 0 1,208 Total municipalities 0 1,208 0 1,208 Mortgage- and asset-backed securities: Third party pricing vendor 0 362 0 362 Broker/other 0 0 220 220 Total mortgage- and asset-backed securities 0 362 220 582 Public utilities: Third party pricing vendor 0 7,479 0 7,479 Total public utilities 0 7,479 0 7,479 Sovereign and supranational: Third party pricing vendor 0 1,407 0 1,407 Total sovereign and supranational 0 1,407 0 1,407 Banks/financial institutions: Third party pricing vendor 0 5,993 0 5,993 Broker/other 0 0 26 26 Total banks/financial institutions 0 5,993 26 6,019 Other corporate: Third party pricing vendor 0 29,378 0 29,378 Total other corporate 0 29,378 0 29,378 Total fixed maturities 18,669 46,434 246 65,349 Perpetual securities: Banks/financial institutions: Third party pricing vendor 0 1,742 0 1,742 Total banks/financial institutions 0 1,742 0 1,742 Other corporate: Third party pricing vendor 0 205 0 205 Total other corporate 0 205 0 205 Total perpetual securities 0 1,947 0 1,947 Equity securities: Third party pricing vendor 489 6 0 495 Broker/other 0 0 3 3 Total equity securities 489 6 3 498 Total securities available for sale $ 19,158 $ 48,387 $ 249 $ 67,794 |
Fair Value Assets Held-To-Maturity Securities Primary Pricing Sources | 2016 (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturities: Government and agencies: Third party pricing vendor $ 26,040 $ 0 $ 0 $ 26,040 Total government and agencies 26,040 0 0 26,040 Municipalities: Third party pricing vendor 0 457 0 457 Total municipalities 0 457 0 457 Mortgage- and asset-backed securities: Third party pricing vendor 0 10 0 10 Broker/other 0 0 22 22 Total mortgage- and asset-backed securities 0 10 22 32 Public utilities: Third party pricing vendor 0 3,536 0 3,536 Total public utilities 0 3,536 0 3,536 Sovereign and supranational: Third party pricing vendor 0 2,877 0 2,877 Total sovereign and supranational 0 2,877 0 2,877 Banks/financial institutions: Third party pricing vendor 0 3,900 0 3,900 Total banks/financial institutions 0 3,900 0 3,900 Other corporate: Third party pricing vendor 0 3,179 0 3,179 Total other corporate 0 3,179 0 3,179 Total securities held to maturity $ 26,040 $ 13,959 $ 22 $ 40,021 2015 (In millions) Quoted Prices in Active Markets Significant Observable Significant Unobservable Inputs Total Securities held to maturity, carried at amortized cost: Fixed maturities: Government and agencies: Third party pricing vendor $ 23,391 $ 0 $ 0 $ 23,391 Total government and agencies 23,391 0 0 23,391 Municipalities: Third party pricing vendor 0 415 0 415 Total municipalities 0 415 0 415 Mortgage- and asset-backed securities: Third party pricing vendor 0 12 0 12 Broker/other 0 0 26 26 Total mortgage- and asset-backed securities 0 12 26 38 Public utilities: Third party pricing vendor 0 3,203 0 3,203 Total public utilities 0 3,203 0 3,203 Sovereign and supranational: Third party pricing vendor 0 2,711 0 2,711 Total sovereign and supranational 0 2,711 0 2,711 Banks/financial institutions: Third party pricing vendor 0 4,546 0 4,546 Total banks/financial institutions 0 4,546 0 4,546 Other corporate: Third party pricing vendor 0 3,189 0 3,189 Broker/other 0 27 0 27 Total other corporate 0 3,216 0 3,216 Total securities held to maturity $ 23,391 $ 14,103 $ 26 $ 37,520 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present the changes in fair value of our available-for-sale investments and derivatives classified as Level 3 as of December 31. 2016 Fixed Maturities Equity Derivatives (1) (In millions) Mortgage- Public Banks/ Foreign Credit Total Balance, beginning of period $ 220 $ 0 $ 26 $ 3 $ (192 ) $ 1 $ 58 Realized investment gains (losses) included 0 0 0 0 194 1 195 Unrealized gains (losses) included in other 38 0 (1 ) 0 (22 ) 0 15 Purchases, issuances, sales and settlements: Purchases 0 16 0 0 0 0 16 Issuances 0 0 0 0 0 0 0 Sales 0 0 0 0 0 0 0 Settlements (60 ) 0 0 0 (1 ) 0 (61 ) Transfers into Level 3 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 Balance, end of period $ 198 $ 16 $ 25 $ 3 $ (21 ) $ 2 $ 223 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ 194 $ 1 $ 195 (1) Derivative assets and liabilities are presented net 2015 Fixed Maturities Perpetual Equity Derivatives (1) (In millions) Mortgage- Banks/ Banks/ Foreign Credit Total Balance, beginning of period $ 223 $ 26 $ 149 $ 3 $ (212 ) $ 0 $ 189 Realized investment gains (losses) included in 0 0 0 0 (15 ) 1 (14 ) Unrealized gains (losses) included in other (1 ) 0 (2 ) 0 (1 ) 0 (4 ) Purchases, issuances, sales and settlements: Purchases 0 0 0 0 0 0 0 Issuances 0 0 0 0 0 0 0 Sales 0 0 (147 ) 0 0 0 (147 ) Settlements (2 ) 0 0 0 36 0 34 Transfers into Level 3 0 0 0 0 0 0 0 Transfers out of Level 3 0 0 0 0 0 0 0 Balance, end of period $ 220 $ 26 $ 0 $ 3 $ (192 ) $ 1 $ 58 Changes in unrealized gains (losses) relating $ 0 $ 0 $ 0 $ 0 $ (15 ) $ 1 $ (14 ) (1) Derivative assets and liabilities are presented net |
Fair Value Inputs Assets Quantitative Information | 2015 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturities: Mortgage- and asset-backed securities $ 220 Consensus pricing Offered quotes N/A (d) Banks/financial institutions 26 Consensus pricing Offered quotes N/A (d) Equity securities 3 Net asset value Offered quotes $1-$677 ($7) Other assets: Foreign currency swaps 7 Discounted cash flow Interest rates (USD) 2.20% - 2.62% (a) Interest rates (JPY) .42% - 1.22% (b) CDS spreads 32 - 147 bps Foreign exchange rates 20.05% (c) 94 Discounted cash flow Interest rates (USD) 2.20% - 2.62% (a) Interest rates (JPY) .42% - 1.22% (b) Foreign exchange rates 20.05% (c) Credit default swaps 1 Discounted cash flow Base correlation 53.26% - 58.40% (e) CDS spreads 123 bps Recovery rate 36.87% Total assets $ 351 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate (d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices The following tables summarize the significant unobservable inputs used in the valuation of our Level 3 available-for-sale investments and derivatives as of December 31. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments. 2016 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Assets: Securities available for sale, carried at fair value: Fixed maturities: Mortgage- and asset-backed securities $ 198 Consensus pricing Offered quotes N/A (d) Public utilities 16 Discounted cash flow Historical volatility N/A (d) Banks/financial institutions 25 Consensus pricing Offered quotes N/A (d) Equity securities 3 Net asset value Offered quotes $1 - $701 ($8) Other assets: Foreign currency swaps 16 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 17 - 172 bps Foreign exchange rates 21.47% (c) 29 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 16 - 88 bps 80 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) Foreign exchange rates 21.47% (c) Credit default swaps 2 Discounted cash flow Base correlation 52.18% - 56.07% (e) CDS spreads 54 bps Recovery rate 36.69% Total assets $ 369 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate (d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs. (e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices |
Fair Value Inputs Liabilities Quantitative Information | 2016 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Liabilities: Foreign currency swaps $ 113 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 17 - 172 bps Foreign exchange rates 21.47% (c) 23 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) CDS spreads 24 - 216 bps 10 Discounted cash flow Interest rates (USD) 2.34% - 2.59% (a) Interest rates (JPY) .22% - .80% (b) Foreign exchange rates 21.47% (c) Total liabilities $ 146 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate 2015 (In millions) Fair Value Valuation Technique(s) Unobservable Input Range Liabilities: Foreign currency swaps $ 158 Discounted cash flow Interest rates (USD) 2.20% - 2.62% (a) Interest rates (JPY) .42% - 1.22% (b) CDS spreads 32 - 147 bps Foreign exchange rates 20.05% (c) 120 Discounted cash flow Interest rates (USD) 2.20% - 2.62% (a) Interest rates (JPY) .42% - 1.22% (b) CDS spreads 35 - 213 bps 15 Discounted cash flow Interest rates (USD) 2.20% - 2.62% (a) Interest rates (JPY) .42% - 1.22% (b) Foreign exchange rates 20.05% (c) Total liabilities $ 293 (a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps (b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps (c) Based on 10 year volatility of JPY/USD exchange rate |
DEFERRED POLICY ACQUISITION C34
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule of Deferred Policy Acquisition Costs | The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31. 2016 2015 (In millions) Japan U.S. Japan U.S. Deferred policy acquisition costs: Balance, beginning of year $ 5,370 $ 3,141 $ 5,211 $ 3,062 Capitalization 864 583 738 578 Amortization (644 ) (497 ) (578 ) (488 ) Foreign currency translation and other 175 1 (1 ) (11 ) Balance, end of year $ 5,765 $ 3,228 $ 5,370 $ 3,141 |
Advertising Expense | Advertising expense, which is included in insurance expenses in the consolidated statements of earnings, was as follows for the years ended December 31: (In millions) 2016 2015 2014 Advertising expense: Aflac Japan $ 100 $ 82 $ 103 Aflac U.S. 124 129 126 Total advertising expense $ 224 $ 211 $ 229 |
Schedule Of Depreciation And Amortization Expense | Depreciation and other amortization expenses, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31: (In millions) 2016 2015 2014 Depreciation expense $ 48 $ 44 $ 47 Other amortization expense 6 6 8 Total depreciation and other amortization expense $ 54 $ 50 $ 55 |
Schedule of Lease Expenses | Lease and rental expense, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31: (In millions) 2016 2015 2014 Lease and rental expense: Aflac Japan $ 53 $ 46 $ 52 Aflac U.S. 21 18 15 Other 1 1 1 Total lease and rental expense $ 75 $ 65 $ 68 |
POLICY LIABILITIES (Tables)
POLICY LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance Loss Reserves [Abstract] | |
Liability for Future Policy Benefits by Product Segment | The liability for future policy benefits as of December 31 consisted of the following: Liability Amounts Interest Rates (In millions) Policy 2016 2015 Year of In 20 Health insurance: Japan: 1992 - 2016 $ 8,912 $ 7,633 1.0 - 2.5 % 1.0 - 2.5 % 1974 - 2013 1,118 1,078 2.7 - 2.75 2.25 - 2.75 1998 - 2016 11,687 11,008 3.0 3.0 1997 - 1999 2,485 2,435 3.5 3.5 1994 - 1996 3,069 2,998 4.0 - 4.5 4.0 - 4.5 1987 - 1994 14,372 14,161 5.5 5.5 1985 - 1991 1,871 1,868 5.25 - 6.75 5.25 - 5.5 1978 - 1984 2,134 2,163 6.5 5.5 U.S.: 2013 - 2016 75 57 3.0 - 3.5 3.0 - 3.5 2012 - 2016 1,062 794 3.75 3.75 2011 319 300 4.75 4.75 2005 - 2010 3,004 2,986 5.5 5.5 1988 - 2004 669 687 8.0 6.0 1986 - 2004 1,265 1,276 6.0 6.0 1981 - 1986 166 174 6.5 - 7.0 5.5 - 6.5 1998 - 2004 1,295 1,279 7.0 7.0 Other 19 21 Intercompany eliminations: 2015 (630 ) (1) (646 ) (1) 2.0 2.0 Life insurance: Japan: 2001 - 2016 7,255 5,441 1.0 - 1.85 1.0 - 1.85 2011 - 2016 4,151 3,226 2.0 2.0 2009 - 2011 2,861 2,332 2.25 2.25 1992 - 2006 5 5 2.19 1.55 2005 - 2011 1,488 1,330 2.5 2.5 1985 - 2006 2,007 1,962 2.7 2.25 2007 - 2011 1,220 1,105 2.75 2.75 1999 - 2011 2,102 1,988 3.0 3.0 1996 - 2009 657 635 3.5 3.5 1994 - 1996 897 877 4.0 - 4.5 4.0 - 4.5 U.S.: 1956 - 2016 571 514 3.5 - 6.0 3.5 - 6.0 Total $ 76,106 $ 69,687 (1) Elimination entry necessary due to recapture of a portion of policy liabilities ceded externally, as a result of the reinsurance retrocession transaction as described in Note 8 of the Notes to the Consolidated Financial Statements |
Schedule of Liability for Unpaid Claims Adjustment Expense | Changes in the liability for unpaid policy claims were as follows for the years ended December 31: (In millions) 2016 2015 2014 Unpaid supplemental health claims, beginning of year $ 3,548 $ 3,412 $ 3,537 Less reinsurance recoverables 26 7 9 Net balance, beginning of year 3,522 3,405 3,528 Add claims incurred during the year related to: Current year 7,037 6,416 6,866 Prior years (465 ) (353 ) (301 ) Total incurred 6,572 6,063 6,565 Less claims paid during the year on claims incurred during: Current year 4,613 4,227 4,532 Prior years 1,865 1,718 1,873 Total paid 6,478 5,945 6,405 Effect of foreign exchange rate changes on unpaid claims 64 (1 ) (283 ) Net balance, end of year 3,680 3,522 3,405 Add reinsurance recoverables 27 26 7 Unpaid supplemental health claims, end of year 3,707 3,548 3,412 Unpaid life claims, end of year 338 254 218 Total liability for unpaid policy claims $ 4,045 $ 3,802 $ 3,630 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Effects of Reinsurance | The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance for the years ended December 31. (In millions) 2016 2015 Direct premium income $ 19,592 $ 17,904 Ceded to other companies: Ceded Aflac Japan closed blocks (560 ) (481 ) Other (48 ) (39 ) Assumed from other companies: Retrocession activities 234 178 Other 7 8 Net premium income $ 19,225 $ 17,570 Direct benefits and claims $ 13,240 $ 12,041 Ceded benefits and change in reserves for future benefits: Ceded Aflac Japan closed blocks (509 ) (437 ) Eliminations 58 46 Other (38 ) (30 ) Assumed from other companies: Retrocession activities 222 167 Eliminations (58 ) (46 ) Other 4 5 Benefits and claims, net $ 12,919 $ 11,746 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | A summary of notes payable as of December 31 follows: (In millions) 2016 2015 2.65% senior notes due February 2017 $ 649 $ 651 2.40% senior notes due March 2020 547 546 4.00% senior notes due February 2022 348 348 3.625% senior notes due June 2023 696 696 3.625% senior notes due November 2024 745 744 3.25% senior notes due March 2025 445 445 2.875% senior notes due October 2026 298 0 6.90% senior notes due December 2039 220 393 6.45% senior notes due August 2040 254 445 4.00% senior notes due October 2046 394 0 5.50% subordinated debentures due September 2052 486 486 Yen-denominated Uridashi notes: 2.26% notes paid September 2016 (principal amount 8 billion yen) 0 66 Yen-denominated Samurai notes: 1.84% notes paid July 2016 (principal amount 15.8 billion yen) 0 131 Yen-denominated loans: Variable interest rate loan due September 2021 (.31% in 2016, principal amount 5.0 billion yen) 43 0 Variable interest rate loan due September 2023 (.46% in 2016, principal amount 25.0 billion yen) 214 0 Capitalized lease obligations payable through 2023 21 20 Total notes payable $ 5,360 $ 4,971 Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs. Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes. |
Schedule of Maturities of Long Term Debt | The aggregate contractual maturities of notes payable during each of the years after December 31, 2016 , are as follows: (In millions) Long-term Capitalized Total 2017 $ 650 $ 6 $ 656 2018 0 6 6 2019 0 5 5 2020 550 2 552 2021 43 1 44 Thereafter 4,145 1 4,146 Total $ 5,388 $ 21 $ 5,409 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) applicable to pretax earnings for the years ended December 31 were as follows: (In millions) Foreign U.S. Total 2016: Current $ 650 $ 234 $ 884 Deferred 136 388 524 Total income tax expense $ 786 $ 622 $ 1,408 2015: Current $ 1,063 $ 225 $ 1,288 Deferred 42 (1 ) 41 Total income tax expense $ 1,105 $ 224 $ 1,329 2014: Current $ 995 $ 84 $ 1,079 Deferred 125 336 461 Total income tax expense $ 1,120 $ 420 $ 1,540 |
Schedule of Effective Income Tax Rate Reconciliation | The principal reasons for the differences and the related tax effects for the years ended December 31 were as follows: (In millions) 2016 2015 2014 Income taxes based on U.S. statutory rates $ 1,424 $ 1,352 $ 1,572 Utilization of foreign tax credit (30 ) (27 ) (32 ) Nondeductible expenses 8 3 5 Other, net 6 1 (5 ) Income tax expense $ 1,408 $ 1,329 $ 1,540 |
Schedule of Income Tax Expense Benefit Intraperiod Tax Allocation | Total income tax expense for the years ended December 31 was allocated as follows: (In millions) 2016 2015 2014 Statements of earnings $ 1,408 $ 1,329 $ 1,540 Other comprehensive income (loss): Unrealized foreign currency translation gains (losses) during period 70 16 (419 ) Unrealized gains (losses) on investment securities: Unrealized holding gains (losses) on investment 962 (931 ) 2,237 Reclassification adjustment for realized (gains) losses 18 21 19 Unrealized gains (losses) on derivatives during period 1 0 (3 ) Pension liability adjustment during period (16 ) (7 ) (31 ) Total income tax expense (benefit) related to items of 1,035 (901 ) 1,803 Additional paid-in capital (exercise of stock options) (10 ) 4 (7 ) Total income taxes $ 2,433 $ 432 $ 3,336 |
Schedule of Deferred Tax Assets and Liabilities | The income tax effects of the temporary differences that gave rise to deferred income tax assets and liabilities as of December 31 were as follows: (In millions) 2016 2015 Deferred income tax liabilities: Deferred policy acquisition costs $ 2,439 $ 2,282 Unrealized gains on investment securities 2,636 1,684 Premiums receivable 111 139 Policy benefit reserves 1,638 1,313 Depreciation 70 61 Other 0 0 Total deferred income tax liabilities 6,894 5,479 Deferred income tax assets: Other basis differences in investment securities 1,167 1,422 Unfunded retirement benefits 13 15 Other accrued expenses 11 7 Policy and contract claims 146 113 Foreign currency loss on Japan branch 185 208 Deferred compensation 210 181 Capital loss carryforwards 3 0 Other 103 95 Total deferred income tax assets 1,838 2,041 Net deferred income tax liability 5,056 3,438 Current income tax liability 331 902 Total income tax liability $ 5,387 $ 4,340 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31: (In millions) 2016 2015 Balance, beginning of year $ 264 $ 309 Additions for tax positions of prior years 33 0 Reductions for tax positions of prior years (3 ) (45 ) Balance, end of year $ 294 $ 264 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward | The following table is a reconciliation of the number of shares of the Company's common stock for the years ended December 31. (In thousands of shares) 2016 2015 2014 Common stock - issued: Balance, beginning of period 669,723 668,132 667,046 Exercise of stock options and issuance of restricted shares 1,526 1,591 1,086 Balance, end of period 671,249 669,723 668,132 Treasury stock: Balance, beginning of period 245,343 225,687 207,633 Purchases of treasury stock: Open market 21,618 21,179 19,660 Other 330 247 157 Dispositions of treasury stock: Shares issued to AFL Stock Plan (1,064) (1,209) (1,251) Exercise of stock options (683) (465) (391) Other (105) (96) (121) Balance, end of period 265,439 245,343 225,687 Shares outstanding, end of period 405,810 424,380 442,445 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share at December 31: (In thousands) 2016 2015 2014 Anti-dilutive share-based awards 911 1,862 1,215 |
Schedule of Weighted Average Number of Shares | The weighted-average shares used in calculating earnings per share for the years ended December 31 were as follows: (In thousands of shares) 2016 2015 2014 Weighted-average outstanding shares used for calculating basic EPS 411,471 430,654 451,204 Dilutive effect of share-based awards 2,450 2,518 2,796 Weighted-average outstanding shares used for calculating diluted EPS 413,921 433,172 454,000 |
Changes in Accumulated Other Comprehensive Income (Detail) | The table below is a reconciliation of accumulated other comprehensive income by component for the years ended December 31. Changes in Accumulated Other Comprehensive Income 2016 (In millions) Unrealized Foreign Unrealized Unrealized Pension Total Balance, beginning of period $ (2,196 ) $ 2,986 $ (26 ) $ (139 ) $ 625 Other comprehensive 213 1,854 2 (32 ) 2,037 Amounts reclassified from 0 (35 ) 0 3 (32 ) Net current-period other 213 1,819 2 (29 ) 2,005 Balance, end of period $ (1,983 ) $ 4,805 $ (24 ) $ (168 ) $ 2,630 All amounts in the table above are net of tax. 2015 (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (2,541 ) $ 4,672 $ (26 ) $ (126 ) $ 1,979 Other comprehensive 345 (1,646 ) 0 (13 ) (1,314 ) Amounts reclassified from 0 (40 ) 0 0 (40 ) Net current-period other 345 (1,686 ) 0 (13 ) (1,354 ) Balance, end of period $ (2,196 ) $ 2,986 $ (26 ) $ (139 ) $ 625 All amounts in the table above are net of tax. 2014 (In millions) Unrealized Foreign Unrealized Unrealized Pension Liability Adjustment Total Balance, beginning of period $ (1,505 ) $ 1,035 $ (12 ) $ (81 ) $ (563 ) Other comprehensive (1,036 ) 3,672 (14 ) (44 ) 2,578 Amounts reclassified from 0 (35 ) 0 (1 ) (36 ) Net current-period other (1,036 ) 3,637 (14 ) (45 ) 2,542 Balance, end of period $ (2,541 ) $ 4,672 $ (26 ) $ (126 ) $ 1,979 All amounts in the table above are net of tax. |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The table below summarizes the amounts reclassified from each component of accumulated other comprehensive income based on source for the years ended December 31. Reclassifications Out of Accumulated Other Comprehensive Income (In millions) 2016 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ 136 Sales and redemptions (83 ) Other-than-temporary impairment 53 Total before tax (18 ) Tax (expense) or benefit (1) $ 35 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (15 ) Acquisition and operating expenses (2) Prior service (cost) credit 11 Acquisition and operating expenses (2) 1 Tax (expense) or benefit (1) $ (3 ) Net of tax Total reclassifications for the period $ 32 Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). (In millions) 2015 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ 214 Sales and redemptions (153 ) Other-than-temporary impairment 61 Total before tax (21 ) Tax (expense) or benefit (1) $ 40 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (17 ) Acquisition and operating expenses (2) Prior service (cost) credit 17 Acquisition and operating expenses (2) 0 Tax (expense) or benefit (1) $ 0 Net of tax Total reclassifications for the period $ 40 Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). (In millions) 2014 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Unrealized gains (losses) on available-for-sale $ 57 Sales and redemptions (3 ) Other-than-temporary impairment 54 Total before tax (19 ) Tax (expense) or benefit (1) $ 35 Net of tax Amortization of defined benefit pension items: Actuarial gains (losses) $ (15 ) Acquisition and operating expenses (2) Prior service (cost) credit 17 Acquisition and operating expenses (2) (1 ) Tax (expense) or benefit (1) $ 1 Net of tax Total reclassifications for the period $ 36 Net of tax (1) Based on 35% tax rate (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Expense Recognized in Connection with Share Based Awards | The following table presents the impact of the expense recognized in connection with share-based awards for the periods ended December 31. (In millions, except for per-share amounts) 2016 2015 2014 Impact on earnings from continuing operations $ 68 $ 39 $ 41 Impact on earnings before income taxes 68 39 41 Impact on net earnings 46 27 28 Impact on net earnings per share: Basic $ .11 $ .06 $ .06 Diluted .11 .06 .06 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table presents the assumptions used in valuing options granted during the years ended December 31. 2016 2015 2014 Expected term (years) 6.4 6.3 6.3 Expected volatility 27.0 % 20.0 % 30.0 % Annual forfeiture rate 3.2 2.8 2.7 Risk-free interest rate 2.2 2.0 2.8 Dividend yield 2.9 2.7 2.3 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity. (In thousands of shares) Stock Weighted-Average Outstanding at December 31, 2013 9,980 $ 47.03 Granted in 2014 678 61.81 Canceled in 2014 (115 ) 52.01 Exercised in 2014 (1,236 ) 41.04 Outstanding at December 31, 2014 9,307 48.84 Granted in 2015 855 61.47 Canceled in 2015 (231 ) 55.70 Exercised in 2015 (2,013 ) 45.15 Outstanding at December 31, 2015 7,918 50.94 Granted in 2016 664 61.39 Canceled in 2016 (181 ) 55.63 Exercised in 2016 (2,061 ) 48.91 Outstanding at December 31, 2016 6,340 $ 52.56 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable | (In thousands of shares) 2016 2015 2014 Shares exercisable, end of year 4,493 6,085 7,497 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding and exercisable at December 31, 2016 . (In thousands of shares) Options Outstanding Options Exercisable Range of Stock Option Wgtd.-Avg. Wgtd.-Avg. Stock Option Wgtd.-Avg. $ 14.99 - $ 47.06 1,639 3.0 $ 36.38 1,639 $ 36.38 47.23 - 55.72 1,348 3.8 51.11 1,348 51.11 56.24 - 61.45 1,706 7.0 59.05 632 57.92 61.81 - 63.16 1,322 4.1 62.10 802 61.87 63.34 - 72.42 325 8.5 67.36 72 67.50 $ 14.99 - $ 72.42 6,340 4.8 $ 52.56 4,493 $ 48.88 |
Schedule of Cash Proceeds Received from Share-based Payment Awards | The following table summarizes stock option activity during the years ended December 31. (In millions) 2016 2015 2014 Total intrinsic value of options exercised $ 41 $ 36 $ 25 Cash received from options exercised 68 68 39 Tax benefit realized as a result of options exercised and 45 25 17 |
Schedule of Nonvested Restricted Stock Units Activity | The value of restricted stock awards is based on the fair market value of our common stock at the date of grant. The following table summarizes restricted stock activity during the years ended December 31. (In thousands of shares) Shares Weighted-Average Restricted stock at December 31, 2013 1,671 $ 52.12 Granted in 2014 584 62.12 Canceled in 2014 (27 ) 52.66 Vested in 2014 (348 ) 56.95 Restricted stock at December 31, 2014 1,880 54.33 Granted in 2015 638 61.51 Canceled in 2015 (145 ) 57.52 Vested in 2015 (558 ) 48.41 Restricted stock at December 31, 2015 1,815 58.42 Granted in 2016 878 61.68 Canceled in 2016 (76 ) 60.65 Vested in 2016 (749 ) 53.68 Restricted stock at December 31, 2016 1,868 $ 61.76 |
STATUTORY ACCOUNTING AND DIVI41
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Reconciliation of Capital and Surplus between NAIC and Nebraska state basis | A reconciliation of Aflac's capital and surplus between SAP and practices permitted by the state of Nebraska is shown below: (In millions) 2016 2015 Capital and surplus, Nebraska state basis $ 11,221 $ 11,298 State Permitted Practice: Refundable lease deposits – Japan (40 ) (38 ) Reinsurance - Japan (764 ) (707 ) Capital and surplus, NAIC basis $ 10,417 $ 10,553 |
Profits Repatriated Disclosure | Profits repatriated by Aflac Japan to Aflac U.S. were as follows for the years ended December 31: In Dollars In Yen (In millions of dollars and billions of yen) 2016 2015 2014 2016 2015 2014 Profit repatriation $ 1,286 $ 2,139 $ 1,704 138.5 259.0 181.4 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Net Funded Status | Information with respect to our benefit plans' assets and obligations as of December 31 was as follows: Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2016 2015 2016 2015 2016 2015 Projected benefit obligation: Benefit obligation, beginning of year $ 276 $ 267 $ 735 $ 717 $ 40 $ 44 Service cost 16 15 23 23 1 1 Interest cost 9 1 29 18 2 2 Actuarial (gain) loss 29 0 29 (6 ) (4 ) (5 ) Benefits and expenses paid (8 ) (7 ) (18 ) (17 ) (2 ) (2 ) Effect of foreign exchange 7 0 0 0 0 0 Benefit obligation, end of year 329 276 798 735 37 40 Plan assets: Fair value of plan assets, 198 183 336 341 0 0 Actual return on plan assets 9 1 24 (6 ) 0 0 Employer contributions 25 21 17 18 2 2 Benefits and expenses paid (8 ) (7 ) (18 ) (17 ) (2 ) (2 ) Effect of foreign exchange 5 0 0 0 0 0 Fair value of plan assets, end of year 229 198 359 336 0 0 Funded status of the plans (1) $ (100 ) $ (78 ) $ (439 ) $ (399 ) $ (37 ) $ (40 ) Amounts recognized in accumulated other Net actuarial (gain) loss $ 67 $ 42 $ 189 $ 175 $ 7 $ 12 Prior service (credit) cost (2 ) (2 ) (4 ) (4 ) 0 (11 ) Total included in accumulated $ 65 $ 40 $ 185 $ 171 $ 7 $ 1 Accumulated benefit obligation $ 288 $ 244 $ 670 $ 621 N/A (2) N/A (2) (1) Recognized in other liabilities in the consolidated balance sheets (2) Not applicable |
Schedule of Assumptions Used | Pension Benefits Other Japan U.S. Postretirement Benefits 2016 2015 2014 2016 2015 2014 2016 2015 2014 Weighted-average actuarial assumptions: Discount rate - net periodic benefit cost 1.75 % 1.75 % 2.25 % 4.50 % 4.50 % 4.75 % 4.50 % 4.50 % 4.75 % Discount rate - benefit obligations 1.25 1.75 1.75 4.25 4.50 4.50 4.25 4.50 4.50 Expected long-term return on plan assets 2.00 2.00 2.00 7.00 7.25 7.50 N/A (1) N/A (1) N/A (1) Rate of compensation increase N/A (1) N/A (1) N/A (1) 4.00 4.00 4.00 N/A (1) N/A (1) N/A (1) Health care cost trend rates N/A (1) N/A (1) N/A (1) N/A (1) N/A (1) N/A (1) 5.20 (2) 5.30 (2) 5.70 (2) (1) Not applicable (2) For the years 2016 , 2015 and 2014 , the health care cost trend rates are expected to trend down to 4.5% in 74 years , 4.5% in 78 years , and 4.6% in 78 years , respectively. |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects as of December 31, 2016 : (In millions) One percentage point increase: Increase in total service and interest costs $ 0 Increase in postretirement benefit obligation 2 One percentage point decrease: Decrease in total service and interest costs $ 0 Decrease in postretirement benefit obligation 2 |
Schedule of Net Benefit Costs | Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statements of earnings for the years ended December 31, included the following components: Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Service cost $ 16 $ 15 $ 15 $ 23 $ 23 $ 20 $ 1 $ 1 $ 1 Interest cost 9 1 9 29 18 38 2 2 2 Expected return on plan (4 ) (4 ) (4 ) (23 ) (22 ) (20 ) 0 0 0 Amortization of net actuarial 1 1 1 13 14 11 1 2 3 Amortization of prior service 0 0 0 0 0 0 (11 ) (17 ) (17 ) Net periodic (benefit) cost $ 22 $ 13 $ 21 $ 42 $ 33 $ 49 $ (7 ) $ (12 ) $ (11 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December 31: Pension Benefits Other Japan U.S. Postretirement Benefits (In millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Net actuarial loss (gain) $ 26 $ 3 $ 12 $ 27 $ 22 $ 67 $ (4 ) $ (5 ) $ (3 ) Amortization of net actuarial loss (1 ) (1 ) (1 ) (13 ) (14 ) (11 ) (1 ) (2 ) (3 ) Amortization of prior 0 0 0 0 0 0 11 17 17 Total $ 25 $ 2 $ 11 $ 14 $ 8 $ 56 $ 6 $ 10 $ 11 |
Schedule of Expected Benefit Payments | The following table provides expected benefit payments, which reflect expected future service, as appropriate. Pension Benefits Other (In millions) Japan U.S. Postretirement Benefits 2017 $ 13 $ 22 $ 2 2018 8 23 2 2019 9 24 3 2020 10 25 3 2021 10 27 3 2022-2026 74 180 18 |
Schedule of Allocation of Plan Assets | Asset allocation targets as of December 31, 2016 were as follows: Japan Pension U.S. Pension Domestic equities 11 % 40 % International equities 15 20 Fixed income securities 59 40 Other 15 0 Total 100 % 100 % |
Plan Assets | |
Fair Value, Assets Measured on Recurring Basis | The following table presents the fair value of Aflac Japan's pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 2 in the fair value hierarchy, except cash and cash equivalents which are classified as Level 1. (In millions) 2016 2015 Japan pension plan assets: Equities: Japanese equity securities $ 28 $ 22 International equity securities 40 33 Fixed income securities: Japanese bonds 79 71 International bonds 55 48 Insurance contracts 27 23 Cash and cash equivalents 0 1 Total $ 229 $ 198 The following table presents the fair value of Aflac U.S.'s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 1 in the fair value hierarchy. (In millions) 2016 2015 U.S. pension plan assets: Mutual funds: Large cap equity funds $ 104 $ 94 Mid cap equity funds 19 16 Real estate equity funds 10 10 International equity funds 85 77 Fixed income bond funds 136 134 Aflac Incorporated common stock 4 4 Cash and cash equivalents 1 1 Total $ 359 $ 336 |
COMMITMENTS AND CONTINGENT LI43
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments due under non-cancelable operating leases at December 31, 2016 , were as follows: (In millions) 2017 $ 62 2018 41 2019 18 2020 13 2021 11 Thereafter 0 Total future minimum lease payments $ 145 |
Unaudited Consolidated Quarte44
Unaudited Consolidated Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | In management's opinion, the following quarterly financial information fairly presents the results of operations for such periods and is prepared on a basis consistent with our annual audited financial statements. (In millions, except for per-share amounts) March 31, June 30, September 30, December 31, Net premium income $ 4,602 $ 4,823 $ 5,022 $ 4,778 Net investment income 801 822 842 813 Realized investment gains (losses) 73 (187 ) (146 ) 137 Other income (loss) (25 ) (21 ) (2 ) 227 Total revenues 5,451 5,437 5,716 5,955 Total benefits and expenses 4,334 4,603 4,753 4,802 Earnings before income taxes 1,117 834 963 1,153 Total income tax 386 286 334 402 Net earnings $ 731 $ 548 $ 629 $ 751 Net earnings per basic share $ 1.75 $ 1.33 $ 1.54 $ 1.85 Net earnings per diluted share 1.74 1.32 1.53 1.84 Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding. (In millions, except for per-share amounts) March 31, June 30, September 30, December 31, Net premium income $ 4,432 $ 4,364 $ 4,380 $ 4,394 Net investment income 782 777 784 792 Realized investment gains (losses) 13 127 (114 ) 114 Other income (loss) (1 ) 19 (10 ) 19 Total revenues 5,226 5,287 5,040 5,319 Total benefits and expenses 4,213 4,413 4,176 4,209 Earnings before income taxes 1,013 874 864 1,110 Total income tax 350 301 297 380 Net earnings $ 663 $ 573 $ 567 $ 730 Net earnings per basic share $ 1.52 $ 1.33 $ 1.32 $ 1.72 Net earnings per diluted share 1.51 1.32 1.32 1.71 Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding. |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Summary of Signficant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Aflac Japan | |||
Significant Accounting Policies [Line Items] | |||
Aflac Japan's percentage of the Company's total revenues | 71.00% | 70.00% | 72.00% |
Percentage of the Company assets | 83.00% | 83.00% | |
Accounting Standards Update 2015-03 | |||
Significant Accounting Policies [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Liabilities | $ 40 | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Estimation of Percent of Leases Within Scope of the Guidance to Total Assets | 1.00% | ||
Estimation of Percent of Revenues Within Scope of the Guidance to Total Revenues | 1.00% |
BUSINESS SEGMENT AND FOREIGN 46
BUSINESS SEGMENT AND FOREIGN INFORMATION - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||
Reportable insurance business segments | segment | 2 | |
Total receivables related to Aflac Japan's operations | $ 669 | $ 705 |
Aflac Japan | ||
Segment Reporting Information [Line Items] | ||
Total receivables related to Aflac Japan's operations | $ 207 | $ 257 |
Percentage of total receivables related to Aflac Japan's operations | 30.90% | 36.40% |
Maximum | Machinery and equipment | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Maximum | Building | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Useful Life | 50 years | |
Maximum | Furniture and fixtures | ||
Segment Reporting Information [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years |
BUSINESS SEGMENT AND FOREIGN 47
BUSINESS SEGMENT AND FOREIGN INFORMATION - Operations by Segment - Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | $ 4,778 | $ 5,022 | $ 4,823 | $ 4,602 | $ 4,394 | $ 4,380 | $ 4,364 | $ 4,432 | $ 19,225 | $ 17,570 | $ 19,072 | ||
Net investment income | 813 | 842 | 822 | 801 | 792 | 784 | 777 | 782 | 3,278 | 3,135 | 3,319 | ||
Total revenues | $ 5,955 | $ 5,716 | $ 5,437 | $ 5,451 | $ 5,319 | $ 5,040 | $ 5,287 | $ 5,226 | 22,559 | 20,872 | 22,728 | ||
Other non-operating income (loss) | 109 | (35) | [1] | 67 | |||||||||
Realized investment gains (losses), non-operating | [2] | (208) | 55 | 171 | |||||||||
Gain (loss) on change in fair value of derivative, interest rate component, operating | 85 | 85 | 44 | ||||||||||
Life insurance | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | 4,740 | 4,289 | 4,753 | ||||||||||
Aflac Japan | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | 13,537 | 12,046 | 13,861 | ||||||||||
Net investment income | 2,554 | 2,436 | 2,662 | ||||||||||
Other income (loss) | 40 | 31 | 32 | ||||||||||
Total revenues | 16,131 | 14,513 | 16,555 | ||||||||||
Aflac Japan | Cancer | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | 5,639 | 4,933 | 5,596 | ||||||||||
Aflac Japan | Medical and other health | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | 3,429 | 3,092 | 3,770 | ||||||||||
Aflac Japan | Life insurance | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | 4,469 | 4,021 | 4,495 | ||||||||||
Aflac U.S. | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | 5,454 | 5,347 | 5,211 | ||||||||||
Net investment income | 703 | 678 | 645 | ||||||||||
Other income (loss) | 10 | 8 | 3 | ||||||||||
Total revenues | 6,167 | 6,033 | 5,859 | ||||||||||
Aflac U.S. | Cancer | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | 1,299 | 1,293 | 1,279 | ||||||||||
Aflac U.S. | Life insurance | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | 271 | 268 | 258 | ||||||||||
Aflac U.S. | Accident and disability | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | 2,469 | 2,391 | 2,303 | ||||||||||
Aflac U.S. | Other health | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Premiums Earned, Net | 1,415 | 1,395 | 1,371 | ||||||||||
Other business segments | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Total revenues | 275 | 225 | 43 | ||||||||||
Total Business Segments | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Total revenues | 22,573 | 20,771 | 22,457 | ||||||||||
Corporate | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Total revenues | 284 | 282 | 281 | ||||||||||
Intercompany eliminations | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Total revenues | $ (199) | (201) | $ (248) | ||||||||||
Twenty Fifteen Profit Repatriation | |||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||
Foreign currency transaction gain (loss), realized | $ (20) | ||||||||||||
[1] | Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. The loss was offset by derivative gains included in realized investment gains (losses). | ||||||||||||
[2] | Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations |
BUSINESS SEGMENT AND FOREIGN 48
BUSINESS SEGMENT AND FOREIGN INFORMATION - Operations by Segment - Pretax Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Pretax operating earnings | $ 4,303 | $ 4,073 | $ 4,253 | |||||||||||
Realized investment gains (losses), non-operating | [1] | (208) | 55 | 171 | ||||||||||
Other non-operating income (loss) | (28) | [2] | (266) | [2],[3] | 67 | |||||||||
Earnings before income taxes | $ 1,153 | $ 963 | $ 834 | $ 1,117 | $ 1,110 | $ 864 | $ 874 | $ 1,013 | 4,067 | 3,862 | 4,491 | |||
Income taxes applicable to pretax operating earnings | 1,491 | 1,403 | 1,456 | |||||||||||
Effect of foreign currency translation on operating earnings | 141 | (198) | (117) | |||||||||||
Gain (loss) on change in fair value of derivative, interest rate component, operating | 85 | 85 | 44 | |||||||||||
Aflac Japan | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Pretax operating earnings | 3,334 | 3,175 | 3,458 | |||||||||||
Aflac U.S. | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Pretax operating earnings | 1,208 | 1,101 | 1,073 | |||||||||||
Other business segments | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Pretax operating earnings | 18 | 14 | (2) | |||||||||||
Total Business Segments | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Pretax operating earnings | 4,560 | 4,290 | 4,529 | |||||||||||
Interest expense, noninsurance operations | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Pretax operating earnings | (128) | (146) | (198) | |||||||||||
Corporate and eliminations | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Pretax operating earnings | (129) | (71) | $ (78) | |||||||||||
Senior Notes due 2039 and 2040 | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Expense on extinguishment of debt | $ 137 | |||||||||||||
8.50% senior notes due May 2019 | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Expense on extinguishment of debt | 230 | |||||||||||||
Twenty Fifteen Profit Repatriation | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Foreign currency transaction gain (loss), realized | $ (20) | |||||||||||||
[1] | Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations | |||||||||||||
[2] | Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt | |||||||||||||
[3] | Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. This loss was offset by derivative gains included in realized investment gains (losses). |
BUSINESS SEGMENT AND FOREIGN 49
BUSINESS SEGMENT AND FOREIGN INFORMATION - Operations by Segment - Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 129,819 | $ 118,256 | $ 119,727 |
Aflac Japan | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 107,858 | 97,646 | 98,525 |
Aflac U.S. | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 19,453 | 18,537 | 18,383 |
Other business segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 270 | 188 | 128 |
Total Business Segments | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 127,581 | 116,371 | 117,036 |
Corporate | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 26,476 | 23,375 | 24,596 |
Intercompany eliminations | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ (24,238) | $ (21,490) | $ (21,905) |
BUSINESS SEGMENT AND FOREIGN 50
BUSINESS SEGMENT AND FOREIGN INFORMATION - Yen/Dollar Exchange Rates Used (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)¥ / $ | Dec. 31, 2015USD ($)¥ / $ | Dec. 31, 2014USD ($)¥ / $ | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Weighted-average yen/dollar exchange rate | ¥ / $ | 108.70 | 120.99 | 105.46 |
Yen percent strengthening (weakening) | 11.30% | (12.80%) | (7.50%) |
Exchange effect on pretax operating earnings (in millions) | $ 218 | $ (288) | $ (180) |
Yen/dollar exchange rate at December 31 | ¥ / $ | 116.49 | 120.61 | |
Yen percent strengthening (weakening) | 3.54% | (0.05%) | |
Exchange effect on total assets | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Exchange effect | $ 2,820 | $ (36) | |
Exchange effect on total liabilities | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Exchange effect | $ 3,109 | $ (41) |
BUSINESS SEGMENT AND FOREIGN 51
BUSINESS SEGMENT AND FOREIGN INFORMATION - Information on Transfers of Funds from Aflac Japan (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | |||
Management fees | $ 79 | $ 53 | $ 39 |
Allocated expenses | 106 | 101 | 71 |
Profit repatriation | 1,286 | 2,139 | 1,704 |
Total transfers from Aflac Japan | $ 1,471 | $ 2,293 | $ 1,814 |
BUSINESS SEGMENT AND FOREIGN 52
BUSINESS SEGMENT AND FOREIGN INFORMATION - Classes of Property and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property and equipment: | ||
Land | $ 166 | $ 166 |
Buildings | 421 | 400 |
Equipment | 355 | 329 |
Total property and equipment | 942 | 895 |
Less accumulated depreciation | 509 | 468 |
Net property and equipment | $ 433 | $ 427 |
INVESTMENTS - Components of Net
INVESTMENTS - Components of Net Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income | $ 3,385 | $ 3,230 | $ 3,399 | ||||||||
Less investment expenses | 107 | 95 | 80 | ||||||||
Net investment income | $ 813 | $ 842 | $ 822 | $ 801 | $ 792 | $ 784 | $ 777 | $ 782 | 3,278 | 3,135 | 3,319 |
Fixed maturities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income | 3,214 | 3,094 | 3,249 | ||||||||
Perpetual securities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income | 94 | 114 | 141 | ||||||||
Equity securities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income | 35 | 3 | 1 | ||||||||
Other Investments | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income | 31 | 15 | 6 | ||||||||
Short term investments and cash equivalents | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross investment income | $ 11 | $ 4 | $ 2 |
INVESTMENTS - Available-For-Sal
INVESTMENTS - Available-For-Sale Investments in Debt Securities, Perpetual Securities and Equity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 69,072 | $ 62,963 |
Gross Unrealized Gains | 8,722 | 6,627 |
Gross Unrealized Losses | 1,092 | 1,796 |
Fair Value | 76,702 | 67,794 |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 66,363 | 60,642 |
Gross Unrealized Gains | 8,432 | 6,405 |
Gross Unrealized Losses | 1,035 | 1,698 |
Fair Value | 73,760 | 65,349 |
Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 1,506 | 1,841 |
Gross Unrealized Gains | 176 | 200 |
Gross Unrealized Losses | 49 | 94 |
Fair Value | 1,633 | 1,947 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 1,203 | 480 |
Gross Unrealized Gains | 114 | 22 |
Gross Unrealized Losses | 8 | 4 |
Fair Value | 1,309 | 498 |
Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 32,459 | 25,592 |
Gross Unrealized Gains | 4,951 | 3,067 |
Gross Unrealized Losses | 261 | 148 |
Fair Value | 37,149 | 28,511 |
Yen-denominated | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 624 | 472 |
Gross Unrealized Gains | 83 | 19 |
Gross Unrealized Losses | 2 | 4 |
Fair Value | 705 | 487 |
Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 33,904 | 35,050 |
Gross Unrealized Gains | 3,481 | 3,338 |
Gross Unrealized Losses | 774 | 1,550 |
Fair Value | 36,611 | 36,838 |
Dollar-denominated | Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 579 | 8 |
Gross Unrealized Gains | 31 | 3 |
Gross Unrealized Losses | 6 | 0 |
Fair Value | 604 | 11 |
Japan government and agencies | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 22,857 | 17,293 |
Gross Unrealized Gains | 3,359 | 1,862 |
Gross Unrealized Losses | 160 | 0 |
Fair Value | 26,056 | 19,155 |
Municipalities | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,295 | 1,208 |
Municipalities | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 246 | 128 |
Gross Unrealized Gains | 29 | 9 |
Gross Unrealized Losses | 8 | 0 |
Fair Value | 267 | 137 |
Municipalities | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 894 | 926 |
Gross Unrealized Gains | 142 | 151 |
Gross Unrealized Losses | 8 | 6 |
Fair Value | 1,028 | 1,071 |
Mortgage- and asset-backed securities | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,337 | 582 |
Mortgage- and asset-backed securities | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 1,096 | 322 |
Gross Unrealized Gains | 33 | 33 |
Gross Unrealized Losses | 8 | 0 |
Fair Value | 1,121 | 355 |
Mortgage- and asset-backed securities | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 196 | 200 |
Gross Unrealized Gains | 20 | 27 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 216 | 227 |
Public utilities | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 7,683 | 7,479 |
Public utilities | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 1,533 | 1,400 |
Gross Unrealized Gains | 318 | 210 |
Gross Unrealized Losses | 3 | 10 |
Fair Value | 1,848 | 1,600 |
Public utilities | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 5,205 | 5,464 |
Gross Unrealized Gains | 690 | 636 |
Gross Unrealized Losses | 60 | 221 |
Fair Value | 5,835 | 5,879 |
Sovereign and supranational | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,469 | 1,407 |
Sovereign and supranational | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 862 | 791 |
Gross Unrealized Gains | 186 | 180 |
Gross Unrealized Losses | 5 | 0 |
Fair Value | 1,043 | 971 |
Sovereign and supranational | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 335 | 331 |
Gross Unrealized Gains | 91 | 105 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 426 | 436 |
Banks/financial institutions | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 6,063 | 6,019 |
Banks/financial institutions | Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,420 | 1,742 |
Banks/financial institutions | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 2,673 | 2,321 |
Gross Unrealized Gains | 403 | 325 |
Gross Unrealized Losses | 74 | 105 |
Fair Value | 3,002 | 2,541 |
Banks/financial institutions | Yen-denominated | Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 1,266 | 1,581 |
Gross Unrealized Gains | 128 | 143 |
Gross Unrealized Losses | 49 | 93 |
Fair Value | 1,345 | 1,631 |
Banks/financial institutions | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 2,570 | 2,865 |
Gross Unrealized Gains | 507 | 634 |
Gross Unrealized Losses | 16 | 21 |
Fair Value | 3,061 | 3,478 |
Banks/financial institutions | Dollar-denominated | Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 51 | 77 |
Gross Unrealized Gains | 24 | 35 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 75 | 111 |
Other corporate | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 29,699 | 29,378 |
Other corporate | Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 213 | 205 |
Other corporate | Yen-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 3,192 | 3,337 |
Gross Unrealized Gains | 623 | 448 |
Gross Unrealized Losses | 3 | 33 |
Fair Value | 3,812 | 3,752 |
Other corporate | Yen-denominated | Perpetual securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 189 | 183 |
Gross Unrealized Gains | 24 | 22 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 213 | 205 |
Other corporate | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 24,556 | 25,154 |
Gross Unrealized Gains | 2,021 | 1,774 |
Gross Unrealized Losses | 690 | 1,302 |
Fair Value | 25,887 | 25,626 |
U.S. Government and Agencies | Dollar-denominated | Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 148 | 110 |
Gross Unrealized Gains | 10 | 11 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 158 | $ 121 |
INVESTMENTS - Held-to-Maturity
INVESTMENTS - Held-to-Maturity Investments in Debt Securities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | $ 33,350 | $ 33,459 |
Gross Unrealized Gains | 6,735 | 4,278 |
Gross Unrealized Losses | 64 | 217 |
Fair Value | 40,021 | 37,520 |
Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value | 40,021 | 37,520 |
Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 33,350 | 33,459 |
Gross Unrealized Gains | 6,735 | 4,278 |
Gross Unrealized Losses | 64 | 217 |
Fair Value | 40,021 | 37,520 |
Japan government and agencies | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 20,702 | |
Gross Unrealized Gains | 5,338 | 3,387 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 26,040 | 23,391 |
Municipalities | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 350 | 341 |
Fair Value | 457 | 415 |
Municipalities | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 350 | |
Gross Unrealized Gains | 107 | 74 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 457 | 415 |
Mortgage- and asset-backed securities | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 30 | 36 |
Fair Value | 32 | 38 |
Mortgage- and asset-backed securities | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 30 | |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 32 | 38 |
Public utilities | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 3,201 | 3,092 |
Fair Value | 3,536 | 3,203 |
Public utilities | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 3,201 | |
Gross Unrealized Gains | 358 | 205 |
Gross Unrealized Losses | 23 | 94 |
Fair Value | 3,536 | 3,203 |
Sovereign and supranational | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 2,602 | 2,555 |
Fair Value | 2,877 | 2,711 |
Sovereign and supranational | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 2,602 | |
Gross Unrealized Gains | 283 | 182 |
Gross Unrealized Losses | 8 | 26 |
Fair Value | 2,877 | 2,711 |
Banks/financial institutions | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 3,731 | 4,431 |
Fair Value | 3,900 | 4,546 |
Banks/financial institutions | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 3,731 | |
Gross Unrealized Gains | 195 | 168 |
Gross Unrealized Losses | 26 | 53 |
Fair Value | 3,900 | 4,546 |
Other corporate | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 2,734 | 3,000 |
Fair Value | 3,179 | 3,216 |
Other corporate | Yen-denominated | Fixed maturities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities held to maturity, fixed maturities, amortized cost | 2,734 | |
Gross Unrealized Gains | 452 | 260 |
Gross Unrealized Losses | 7 | 44 |
Fair Value | $ 3,179 | $ 3,216 |
INVESTMENTS - Additional Inform
INVESTMENTS - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)issuerinvestment | Dec. 31, 2015USD ($)issuerinvestment | Dec. 31, 2014USD ($)investment | |
Schedule of Investments [Line Items] | |||
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, number of investments | investment | 0 | 0 | 3 |
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, amortized cost | $ 424 | ||
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, aggregate unrealized gain (loss) | $ (54) | ||
Percentage that the lending policy requires that the fair value of the securities and/or unrestricted cash received as collateral be of the fair value of the loaned securities | 102.00% | ||
Fair value of debt securities on deposit with regulatory authorities in the United States and Japan | $ 17 | ||
Middle market loan program unfunded amount | 91 | $ 53 | |
Middle Market Loan Commitment | 779 | ||
Commercial mortgage loan commitments | 19 | ||
Variable Interest Entity, Consolidated | |||
Schedule of Investments [Line Items] | |||
Securities available for sale, fixed maturities, amortized cost | 4,168 | 3,739 | |
Securities available for sale, equity securities, fair value | 1,044 | 363 | |
Securities available for sale, fixed maturities, fair value | 4,982 | 4,554 | |
Securities available for sale, equity securities, cost | 972 | 363 | |
Variable Interest Entity, Not Consolidated | |||
Schedule of Investments [Line Items] | |||
Securities available for sale, fixed maturities, amortized cost | 4,729 | 4,731 | |
Securities available for sale, fixed maturities, fair value | $ 5,261 | $ 5,093 | |
Number of issuers of VIEs not-consolidated | issuer | 145 | 169 | |
Middle market loans | |||
Schedule of Investments [Line Items] | |||
Other investments, net of reserves, amortized cost | $ 319 | $ 118 | |
Middle market loans | Variable Interest Entity, Consolidated | |||
Schedule of Investments [Line Items] | |||
Other investments held in unit trust, net of reserves, amortized cost | 74 | ||
Bank loans | Variable Interest Entity, Consolidated | |||
Schedule of Investments [Line Items] | |||
Securities available for sale, fixed maturities, amortized cost | 2,000 | 1,400 | |
Securities available for sale, fixed maturities, fair value | 1,900 | $ 1,400 | |
Commercial mortgage loans | |||
Schedule of Investments [Line Items] | |||
Other investments, net of reserves, amortized cost | 855 | ||
Commercial mortgage loans | Variable Interest Entity, Consolidated | |||
Schedule of Investments [Line Items] | |||
Other investments held in unit trust, net of reserves, amortized cost | 745 | ||
Parent Company and Other Business Segments | |||
Schedule of Investments [Line Items] | |||
Securities available for sale, fixed maturities, amortized cost | 595 | ||
Securities available for sale, fixed maturities, fair value | $ 607 |
INVESTMENTS - Contractual Matur
INVESTMENTS - Contractual Maturities of Investments in Fixed Maturities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Held to maturity: | ||
Total fixed maturities held to maturity, amortized cost | $ 33,350 | $ 33,459 |
Held to maturity: | ||
Total fixed maturities held to maturity, fair value | 40,021 | $ 37,520 |
Aflac Japan | ||
Available for sale: | ||
Due in one year or less | 180 | |
Due after one year through five years | 3,441 | |
Due after five years through 10 years | 9,374 | |
Due after 10 years | 39,461 | |
Mortgage- and asset-backed securities | 1,144 | |
Total fixed maturities available for sale, amortized cost | 53,600 | |
Held to maturity: | ||
Due after one year through five years | 2,009 | |
Due after five years through 10 years | 1,584 | |
Due after 10 years | 29,727 | |
Mortgage- and asset-backed securities | 30 | |
Total fixed maturities held to maturity, amortized cost | 33,350 | |
Available for sale: | ||
Due in one year or less | 204 | |
Due after one year through five years | 3,696 | |
Due after five years through 10 years | 9,694 | |
Due after 10 years | 45,125 | |
Mortgage- and asset-backed securities | 1,184 | |
Total fixed maturities available for sale, fair value | 59,903 | |
Held to maturity: | ||
Due after one year through five years | 2,112 | |
Due after five years through 10 years | 1,737 | |
Due after 10 years | 36,140 | |
Mortgage- and asset-backed securities | 32 | |
Total fixed maturities held to maturity, fair value | 40,021 | |
Aflac U.S. | ||
Available for sale: | ||
Due in one year or less | 103 | |
Due after one year through five years | 617 | |
Due after five years through 10 years | 2,860 | |
Due after 10 years | 8,545 | |
Mortgage- and asset-backed securities | 43 | |
Total fixed maturities available for sale, amortized cost | 12,168 | |
Held to maturity: | ||
Due after one year through five years | 0 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 0 | |
Mortgage- and asset-backed securities | 0 | |
Total fixed maturities held to maturity, amortized cost | 0 | |
Available for sale: | ||
Due in one year or less | 105 | |
Due after one year through five years | 668 | |
Due after five years through 10 years | 3,018 | |
Due after 10 years | 9,411 | |
Mortgage- and asset-backed securities | 48 | |
Total fixed maturities available for sale, fair value | 13,250 | |
Held to maturity: | ||
Due after one year through five years | 0 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 0 | |
Mortgage- and asset-backed securities | 0 | |
Total fixed maturities held to maturity, fair value | $ 0 |
INVESTMENTS - Economic Maturiti
INVESTMENTS - Economic Maturities of Investments in Perpetual Securities (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Aflac Japan | |
Investments Classified by Economic Maturity Date [Line Items] | |
Due in one year or less | $ 87 |
Due after one year through five years | 189 |
Due after 10 years | 1,191 |
Total perpetual securities available for sale | 1,467 |
Due in one year or less | 82 |
Due after one year through five years | 213 |
Due after 10 years | 1,282 |
Total perpetual securities available for sale | 1,577 |
Aflac U.S. | |
Investments Classified by Economic Maturity Date [Line Items] | |
Due in one year or less | 0 |
Due after one year through five years | 0 |
Due after 10 years | 39 |
Total perpetual securities available for sale | 39 |
Due in one year or less | 0 |
Due after one year through five years | 0 |
Due after 10 years | 56 |
Total perpetual securities available for sale | $ 56 |
INVESTMENTS - Investment Exposu
INVESTMENTS - Investment Exposures Individually Exceeded Ten Percent of Shareholders' Equity (Detail) - Japan National Government - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Summary of Investment Holdings [Line Items] | |||
Credit Rating | A | A | |
Amortized Cost | [1] | $ 42,931 | $ 36,859 |
Fair Value | [1] | $ 51,345 | $ 42,025 |
[1] | Japan Government Bonds (JGBs) or JGB-backed securities |
INVESTMENTS - Information Regar
INVESTMENTS - Information Regarding Pretax Realized Gains and Losses From Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Gain (Loss) on Investments [Line Items] | |||||
Other-than-temporary impairment losses realized | $ (83) | $ (153) | $ (31) | ||
Derivative gains (losses) | (255) | (10) | 31 | ||
Total realized investment gains (losses) | (123) | 140 | 215 | ||
Fixed maturities | |||||
Gain (Loss) on Investments [Line Items] | |||||
Total realized investment gains (losses) | 105 | 116 | 184 | ||
Perpetual securities | |||||
Gain (Loss) on Investments [Line Items] | |||||
Total realized investment gains (losses) | 62 | 35 | 0 | ||
Equity securities | |||||
Gain (Loss) on Investments [Line Items] | |||||
Net gains (losses) from redemptions | 22 | 0 | 0 | ||
Other-than-temporary impairment losses realized | (57) | (1) | 0 | ||
Total realized investment gains (losses) | (35) | (1) | 0 | ||
Derivatives and other | |||||
Gain (Loss) on Investments [Line Items] | |||||
Total realized investment gains (losses) | (255) | (10) | 31 | ||
Available-for-sale securities | Fixed maturities | |||||
Gain (Loss) on Investments [Line Items] | |||||
Gross gains from sales | 77 | 224 | 192 | ||
Gross losses from sales | (134) | [1] | (8) | (12) | |
Net gains (losses) from redemptions | [1] | 186 | 52 | 34 | |
Other-than-temporary impairment losses realized | (24) | [1] | (152) | (31) | |
Available-for-sale securities | Perpetual securities | |||||
Gain (Loss) on Investments [Line Items] | |||||
Net gains (losses) from redemptions | 64 | 35 | 0 | ||
Other-than-temporary impairment losses realized | (2) | 0 | 0 | ||
Held-to-maturity Securities | Fixed maturities | |||||
Gain (Loss) on Investments [Line Items] | |||||
Net gains (losses) from redemptions | $ 0 | $ 0 | $ 1 | ||
[1] | Primarily driven by foreign exchange |
INVESTMENTS - Pretax Other-Than
INVESTMENTS - Pretax Other-Than-Temporary Impairment Losses by Investment Category (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gain (Loss) on Investments [Line Items] | |||
Other-than-temporary impairment losses | $ 83 | $ 153 | $ 31 |
Equity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Other-than-temporary impairment losses | $ 57 | $ 1 | $ 0 |
INVESTMENTS - Information Reg62
INVESTMENTS - Information Regarding Changes in Unrealized Gains and Losses from Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in unrealized gains (losses): | |||
Changes in unrealized gains (losses) | $ 2,799 | $ (2,595) | $ 5,893 |
Fixed maturities | Available-for-sale securities | |||
Changes in unrealized gains (losses): | |||
Changes in unrealized gains (losses) | 2,690 | (2,481) | 5,629 |
Fixed maturities | Transferred to held to maturity securities | |||
Changes in unrealized gains (losses): | |||
Changes in unrealized gains (losses) | 0 | 0 | (10) |
Perpetual securities | Available-for-sale securities | |||
Changes in unrealized gains (losses): | |||
Changes in unrealized gains (losses) | 21 | (123) | 269 |
Equity securities | |||
Changes in unrealized gains (losses): | |||
Changes in unrealized gains (losses) | $ 88 | $ 9 | $ 5 |
INVESTMENTS - Net Effect on Sha
INVESTMENTS - Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments [Abstract] | ||
Unrealized Gain (Losses) on Available-for-sale Securities | $ 7,630 | $ 4,831 |
Deferred income taxes | (2,825) | (1,845) |
Shareholders' equity, unrealized gains (losses) on investment securities | $ 4,805 | $ 2,986 |
INVESTMENTS - Fair Value and Gr
INVESTMENTS - Fair Value and Gross Unrealized Losses for Securities That Have Been in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | $ 20,275 | $ 22,413 |
Total Unrealized Losses | 1,156 | 2,013 |
Less Than 12 months Fair Value | 14,743 | 16,529 |
Less Than 12 months Unrealized Losses | 621 | 1,040 |
12 months or longer Fair Value | 5,532 | 5,884 |
12 months or longer Unrealized Losses | 535 | 973 |
Fixed maturities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 19,536 | 21,571 |
Total Unrealized Losses | 1,099 | 1,915 |
Less Than 12 months Fair Value | 14,398 | 16,122 |
Less Than 12 months Unrealized Losses | 612 | 1,024 |
12 months or longer Fair Value | 5,138 | 5,449 |
12 months or longer Unrealized Losses | 487 | 891 |
Perpetual securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 479 | 651 |
Total Unrealized Losses | 49 | 94 |
Less Than 12 months Fair Value | 85 | 216 |
Less Than 12 months Unrealized Losses | 1 | 12 |
12 months or longer Fair Value | 394 | 435 |
12 months or longer Unrealized Losses | 48 | 82 |
Equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 260 | 191 |
Total Unrealized Losses | 8 | 4 |
Less Than 12 months Fair Value | 260 | 191 |
Less Than 12 months Unrealized Losses | 8 | 4 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Yen-denominated | Fixed maturities | Japan government and agencies | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 3,958 | |
Total Unrealized Losses | 160 | |
Less Than 12 months Fair Value | 3,958 | |
Less Than 12 months Unrealized Losses | 160 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Yen-denominated | Fixed maturities | Municipalities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 105 | |
Total Unrealized Losses | 8 | |
Less Than 12 months Fair Value | 105 | |
Less Than 12 months Unrealized Losses | 8 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Yen-denominated | Fixed maturities | Mortgage- and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 713 | |
Total Unrealized Losses | 8 | |
Less Than 12 months Fair Value | 713 | |
Less Than 12 months Unrealized Losses | 8 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Yen-denominated | Fixed maturities | Public utilities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 635 | 1,487 |
Total Unrealized Losses | 26 | 104 |
Less Than 12 months Fair Value | 347 | 1,062 |
Less Than 12 months Unrealized Losses | 14 | 73 |
12 months or longer Fair Value | 288 | 425 |
12 months or longer Unrealized Losses | 12 | 31 |
Yen-denominated | Fixed maturities | Sovereign and supranational | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 244 | 580 |
Total Unrealized Losses | 13 | 26 |
Less Than 12 months Fair Value | 38 | 385 |
Less Than 12 months Unrealized Losses | 5 | 13 |
12 months or longer Fair Value | 206 | 195 |
12 months or longer Unrealized Losses | 8 | 13 |
Yen-denominated | Fixed maturities | Banks/financial institutions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 1,521 | 2,350 |
Total Unrealized Losses | 100 | 158 |
Less Than 12 months Fair Value | 636 | 1,147 |
Less Than 12 months Unrealized Losses | 19 | 14 |
12 months or longer Fair Value | 885 | 1,203 |
12 months or longer Unrealized Losses | 81 | 144 |
Yen-denominated | Fixed maturities | Other corporate | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 321 | 1,151 |
Total Unrealized Losses | 10 | 77 |
Less Than 12 months Fair Value | 321 | 343 |
Less Than 12 months Unrealized Losses | 10 | 5 |
12 months or longer Fair Value | 0 | 808 |
12 months or longer Unrealized Losses | 0 | 72 |
Yen-denominated | Perpetual securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 479 | 645 |
Total Unrealized Losses | 49 | 93 |
Less Than 12 months Fair Value | 85 | 216 |
Less Than 12 months Unrealized Losses | 1 | 12 |
12 months or longer Fair Value | 394 | 429 |
12 months or longer Unrealized Losses | 48 | 81 |
Yen-denominated | Equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 49 | 191 |
Total Unrealized Losses | 2 | 4 |
Less Than 12 months Fair Value | 49 | 191 |
Less Than 12 months Unrealized Losses | 2 | 4 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Dollar-denominated | Fixed maturities | Municipalities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 44 | 80 |
Total Unrealized Losses | 8 | 6 |
Less Than 12 months Fair Value | 0 | 80 |
Less Than 12 months Unrealized Losses | 0 | 6 |
12 months or longer Fair Value | 44 | 0 |
12 months or longer Unrealized Losses | 8 | 0 |
Dollar-denominated | Fixed maturities | Public utilities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 1,265 | 2,127 |
Total Unrealized Losses | 60 | 221 |
Less Than 12 months Fair Value | 790 | 1,689 |
Less Than 12 months Unrealized Losses | 32 | 132 |
12 months or longer Fair Value | 475 | 438 |
12 months or longer Unrealized Losses | 28 | 89 |
Dollar-denominated | Fixed maturities | Banks/financial institutions | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 268 | 366 |
Total Unrealized Losses | 16 | 21 |
Less Than 12 months Fair Value | 238 | 348 |
Less Than 12 months Unrealized Losses | 10 | 11 |
12 months or longer Fair Value | 30 | 18 |
12 months or longer Unrealized Losses | 6 | 10 |
Dollar-denominated | Fixed maturities | Other corporate | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 10,462 | 13,430 |
Total Unrealized Losses | 690 | 1,302 |
Less Than 12 months Fair Value | 7,252 | 11,068 |
Less Than 12 months Unrealized Losses | 346 | 770 |
12 months or longer Fair Value | 3,210 | 2,362 |
12 months or longer Unrealized Losses | 344 | 532 |
Dollar-denominated | Perpetual securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 6 | |
Total Unrealized Losses | 1 | |
Less Than 12 months Fair Value | 0 | |
Less Than 12 months Unrealized Losses | 0 | |
12 months or longer Fair Value | 6 | |
12 months or longer Unrealized Losses | $ 1 | |
Dollar-denominated | Equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Total Fair Value | 211 | |
Total Unrealized Losses | 6 | |
Less Than 12 months Fair Value | 211 | |
Less Than 12 months Unrealized Losses | 6 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | $ 0 |
INVESTMENTS - Investments in Co
INVESTMENTS - Investments in Consolidated Variable Interest Entities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Other investments, amortized cost | $ 1,450 | [1] | $ 294 |
Asset derivatives | 1,207 | 676 | |
Assets, fair value | 83,044 | 72,996 | |
Liability derivatives, fair value | 1,998 | 371 | |
Liabilities, amortized cost | 109,337 | 100,548 | |
Liabilities, fair value disclosure | 1,998 | 371 | |
Variable Interest Entity, Consolidated | |||
Variable Interest Entity [Line Items] | |||
Securities available for sale, fixed maturities, amortized cost | 4,168 | 3,739 | |
Securities available for sale, fixed maturities, fair value | 4,982 | 4,554 | |
Securities available for sale, perpetual securities, amortized cost | 237 | 255 | |
Securities available for sale, perpetual securities, fair value | 208 | 228 | |
Securities available for sale, equity securities, cost | 972 | 363 | |
Securities available for sale, equity securities, fair value | 1,044 | 363 | |
Other investments, amortized cost | 819 | 0 | |
Other investments, fair value disclosure | 789 | 0 | |
Asset derivatives, amortized cost | 127 | 102 | |
Asset derivatives | 127 | 102 | |
Assets, amortized cost | 6,323 | 4,459 | |
Assets, fair value | 7,150 | 5,247 | |
Liability derivatives, amortized cost | 146 | 293 | |
Liability derivatives, fair value | 146 | 293 | |
Liabilities, amortized cost | 146 | 293 | |
Liabilities, fair value disclosure | $ 146 | $ 293 | |
[1] | Includes $819 in 2016 of loan receivables from consolidated variable interest entities |
INVESTMENTS - Investments in Va
INVESTMENTS - Investments in Variable Interest Entities Not Consolidated (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Securities held to maturity, fixed maturities, amortized cost | $ 33,350 | $ 33,459 | |
Securities held to maturity, fixed maturities, fair value | 40,021 | 37,520 | |
Other investments, amortized cost | 1,450 | [1] | 294 |
Assets, fair value | 83,044 | 72,996 | |
Variable Interest Entity, Not Consolidated | |||
Variable Interest Entity [Line Items] | |||
Securities available for sale, fixed maturities, amortized cost | 4,729 | 4,731 | |
Securities available for sale, fixed maturities, fair value | 5,261 | 5,093 | |
Securities available for sale, perpetual securities, amortized cost | 172 | 249 | |
Securities available for sale, perpetual securities, fair value | 200 | 253 | |
Securities held to maturity, fixed maturities, amortized cost | 2,563 | 2,477 | |
Securities held to maturity, fixed maturities, fair value | 2,948 | 2,636 | |
Other investments, amortized cost | 1 | 0 | |
Other investments, fair value disclosure | 1 | 0 | |
Assets, amortized cost | 7,465 | 7,457 | |
Assets, fair value | $ 8,410 | $ 7,982 | |
[1] | Includes $819 in 2016 of loan receivables from consolidated variable interest entities |
INVESTMENTS - Securities Lendin
INVESTMENTS - Securities Lending Accounted for as Secured Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | $ 526 | $ 941 | |
Gross amount of recognized liabilities for securities lending | 526 | 941 | |
Amounts related to agreements not included in offsetting disclosure in Note 4 | 0 | 0 | |
Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 499 | ||
Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 62 | 108 | |
Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 34 | 13 | |
Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 430 | 321 | |
Maturity Overnight and Continuous | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | [1] | 526 | 442 |
Maturity Overnight and Continuous | Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | [1] | 0 | |
Maturity Overnight and Continuous | Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | [1] | 62 | 108 |
Maturity Overnight and Continuous | Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | [1] | 34 | 13 |
Maturity Overnight and Continuous | Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | [1] | 430 | 321 |
Maturity up to 30 Days | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 0 | 499 | |
Maturity up to 30 Days | Japan government and agencies | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 499 | ||
Maturity up to 30 Days | Public utilities | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 0 | 0 | |
Maturity up to 30 Days | Banks/financial institutions | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | 0 | 0 | |
Maturity up to 30 Days | Other corporate | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Securities lending transactions | $ 0 | $ 0 | |
[1] | These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous. |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Detail) ¥ in Billions | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($)yrcounterpartiescurrency | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016JPY (¥)yrcounterpartiescurrency | Mar. 31, 2015USD ($) | Nov. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Oct. 31, 2012USD ($) | Sep. 30, 2012USD ($) | Jul. 31, 2012USD ($) | Feb. 29, 2012USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Number of currencies related to foreign currency swaps | currency | 1 | 1 | |||||||||
Number of counterparties | counterparties | 16 | 16 | |||||||||
Number of counterparties that comprise majority of aggregate notional amount of swaps | counterparties | 5 | 5 | |||||||||
Percentage of notional amount of swaps from certain number of counterparties | 63.00% | 63.00% | |||||||||
Derivative, Net Liability Position, Aggregate Fair Value | $ 1,200,000,000 | $ 26,000,000 | |||||||||
Hedging activity, weighted-average period (in years) | yr | 9 | 9 | |||||||||
Net Derivatives Notional Amount | $ 43,927,000,000 | 22,127,000,000 | |||||||||
Cash flow hedges | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Net Derivatives Notional Amount | 75,000,000 | 75,000,000 | |||||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | $ 0 | ||||||||
Net investment hedge | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Net Derivatives Notional Amount | 1,052,000,000 | 1,029,000,000 | |||||||||
Net investment hedge gain loss reclassified to earnings net | 0 | 0 | $ 0 | ||||||||
Net investment hedge | Foreign currency forwards | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Net Derivatives Notional Amount | 209,000,000 | $ 763,000,000 | |||||||||
3.625% senior notes due November 2024 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Debt instrument, principal amount | 750,000,000 | $ 750,000,000 | |||||||||
3.25% senior notes due March 2025 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Debt instrument, principal amount | 450,000,000 | $ 450,000,000 | |||||||||
3.625% senior notes due June 2023 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Debt instrument, principal amount | 700,000,000 | $ 700,000,000 | |||||||||
2.65% senior notes due February 2017 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Debt instrument, principal amount | 400,000,000 | $ 250,000,000 | $ 400,000,000 | ||||||||
2.40% senior notes due March 2020 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Debt instrument, principal amount | 550,000,000 | $ 550,000,000 | |||||||||
4.00% senior notes due February 2022 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Debt instrument, principal amount | 350,000,000 | $ 350,000,000 | |||||||||
5.50% subordinated notes due September 2052 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Debt instrument, principal amount | 500,000,000 | $ 50,000,000 | $ 450,000,000 | ||||||||
Twenty Sixteen Profit Repatriation | Foreign currency forwards and options | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Net Derivatives Notional Amount | ¥ | ¥ 114 | ||||||||||
Future profit repatriation | Foreign currency forwards and options | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Net Derivatives Notional Amount | ¥ | ¥ 122.6 | ||||||||||
Middle market loans | Foreign currency forwards | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Net Derivatives Notional Amount | 109,000,000 | ||||||||||
Commercial mortgage loans | Foreign currency forwards | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||||
Net Derivatives Notional Amount | $ 710,000,000 |
DERIVATIVE INSTRUMENTS - Summar
DERIVATIVE INSTRUMENTS - Summary of Balance Sheet Classification of Derivative Fair Value Amounts, as well as Gross Asset and Liability Fair Value Amounts (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | $ 43,927 | $ 22,127 |
Net Derivatives Fair Value | (791) | 305 |
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 1,207 | 676 |
Derivative liability, fair value, gross liability including not subject to master netting arrangement | 1,998 | 371 |
Asset Derivatives Fair Value | 1,080 | 574 |
Liability Derivatives Fair Value | (1,852) | (78) |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 18,329 | 11,413 |
Net Derivatives Fair Value | 1,207 | 676 |
Asset Derivatives Fair Value | 1,207 | 676 |
Liability Derivatives Fair Value | 0 | 0 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 25,598 | 10,714 |
Net Derivatives Fair Value | (1,998) | (371) |
Asset Derivatives Fair Value | 0 | 0 |
Liability Derivatives Fair Value | (1,998) | (371) |
Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 75 | 75 |
Net Derivatives Fair Value | (10) | (15) |
Asset Derivatives Fair Value | 0 | 0 |
Liability Derivatives Fair Value | (10) | (15) |
Cash flow hedges | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 75 | 75 |
Net Derivatives Fair Value | (10) | (15) |
Asset Derivatives Fair Value | 0 | 0 |
Liability Derivatives Fair Value | (10) | (15) |
Fair value hedges | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 15,189 | 14,330 |
Net Derivatives Fair Value | (789) | 45 |
Asset Derivatives Fair Value | 2 | 88 |
Liability Derivatives Fair Value | (791) | (43) |
Fair value hedges | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 10,965 | 13,080 |
Net Derivatives Fair Value | (759) | 45 |
Asset Derivatives Fair Value | 0 | 88 |
Liability Derivatives Fair Value | (759) | (43) |
Fair value hedges | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 4,224 | 1,250 |
Net Derivatives Fair Value | (30) | 0 |
Asset Derivatives Fair Value | 2 | 0 |
Liability Derivatives Fair Value | (32) | 0 |
Net investment hedge | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 1,052 | 1,029 |
Net Derivatives Fair Value | 27 | 10 |
Asset Derivatives Fair Value | 46 | 24 |
Liability Derivatives Fair Value | (19) | (14) |
Net investment hedge | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 209 | 763 |
Net Derivatives Fair Value | 3 | 13 |
Asset Derivatives Fair Value | 5 | 19 |
Liability Derivatives Fair Value | (2) | (6) |
Net investment hedge | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 843 | 266 |
Net Derivatives Fair Value | 24 | (3) |
Asset Derivatives Fair Value | 41 | 5 |
Liability Derivatives Fair Value | (17) | (8) |
Non-qualifying strategies | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 27,611 | 6,693 |
Net Derivatives Fair Value | (19) | 265 |
Asset Derivatives Fair Value | 1,159 | 564 |
Liability Derivatives Fair Value | (1,178) | (299) |
Non-qualifying strategies | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 6,266 | 6,599 |
Net Derivatives Fair Value | 270 | 264 |
Asset Derivatives Fair Value | 490 | 563 |
Liability Derivatives Fair Value | (220) | (299) |
Non-qualifying strategies | Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 21,218 | 11 |
Net Derivatives Fair Value | (289) | 0 |
Asset Derivatives Fair Value | 667 | 0 |
Liability Derivatives Fair Value | (956) | 0 |
Non-qualifying strategies | Foreign currency options | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 41 | |
Net Derivatives Fair Value | (2) | |
Asset Derivatives Fair Value | 0 | |
Liability Derivatives Fair Value | (2) | |
Non-qualifying strategies | Credit default swaps | ||
Derivatives, Fair Value [Line Items] | ||
Net Derivatives Notional Amount | 86 | 83 |
Net Derivatives Fair Value | 2 | 1 |
Asset Derivatives Fair Value | 2 | 1 |
Liability Derivatives Fair Value | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Gains
DERIVATIVE INSTRUMENTS - Gains (Losses) Recognized on Fair Value Hedging Relationships (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed-maturity securities and equity securities | Foreign currency forwards | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized for derivatives | $ 207 | ||
Gains (losses) on derivatives excluded from effectiveness testing | (338) | ||
Gains (losses) on derivatives included in effectiveness testing | 545 | ||
Gains (losses) recognized for hedged items | (566) | ||
Ineffectiveness recognized for fair value hedge | (21) | ||
Fixed maturities | Foreign currency forwards | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized for derivatives | $ (133) | $ (1,835) | |
Gains (losses) on derivatives excluded from effectiveness testing | (136) | (38) | |
Gains (losses) on derivatives included in effectiveness testing | 3 | (1,797) | |
Gains (losses) recognized for hedged items | (5) | 1,819 | |
Ineffectiveness recognized for fair value hedge | (2) | 22 | |
Fixed maturities | Foreign currency options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized for derivatives | (95) | (4) | (41) |
Gains (losses) on derivatives excluded from effectiveness testing | (18) | 3 | (4) |
Gains (losses) on derivatives included in effectiveness testing | (77) | (7) | (37) |
Gains (losses) recognized for hedged items | 70 | 7 | 38 |
Ineffectiveness recognized for fair value hedge | $ (7) | 0 | 1 |
Fixed maturities | Interest rate swaptions | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized for derivatives | (95) | (318) | |
Gains (losses) on derivatives excluded from effectiveness testing | 19 | (36) | |
Gains (losses) on derivatives included in effectiveness testing | (114) | (282) | |
Gains (losses) recognized for hedged items | 99 | 316 | |
Ineffectiveness recognized for fair value hedge | $ (15) | $ 34 |
DERIVATIVE INSTRUMENTS - Deriva
DERIVATIVE INSTRUMENTS - Derivatives and Hedging Instruments Gain (Loss) Summary (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized foreign currency translation gains (losses) during period | $ 283 | $ 360 | $ (1,455) | |
Derivative and other gains (losses) | (255) | (10) | 31 | |
Derivative and non-derivative hedging instruments gain loss recognized in other comprehensive income effective portion before tax | [1] | (42) | 7 | 108 |
Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 1 | 0 | (2) | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 3 | 0 | (17) |
Cash flow hedges | Foreign currency swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 1 | 0 | (2) | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 3 | 0 | (17) |
Fair value hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | (384) | (131) | (21) | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 | 0 |
Fair value hedges | Foreign currency forwards | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | [2] | (359) | (138) | (16) |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1],[2] | 0 | 0 | 0 |
Fair value hedges | Foreign currency options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | [2] | (25) | 3 | (3) |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1],[2] | 0 | 0 | 0 |
Fair value hedges | Interest rate swaptions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | [2] | 0 | 4 | (2) |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1],[2] | 0 | 0 | 0 |
Net investment hedge | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | (45) | 7 | 125 |
Net investment hedge | Foreign currency forwards | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | (118) | 4 | 89 |
Net investment hedge | Foreign currency options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | 73 | 0 | (3) |
Net investment hedge | Non-derivative hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | |
Unrealized foreign currency translation gains (losses) during period | [1] | 0 | 3 | 39 |
Non-qualifying strategies | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instrument, Gain (Loss) Recognized in Income, Net | 128 | 121 | 54 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 | 0 |
Non-qualifying strategies | Foreign currency swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instrument, Gain (Loss) Recognized in Income, Net | 117 | 16 | 151 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 | 0 |
Non-qualifying strategies | Foreign currency forwards | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instrument, Gain (Loss) Recognized in Income, Net | 9 | 100 | (11) | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 | 0 |
Non-qualifying strategies | Interest rate swaptions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instrument, Gain (Loss) Recognized in Income, Net | 0 | 0 | 1 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 | 0 |
Non-qualifying strategies | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instrument, Gain (Loss) Recognized in Income, Net | 0 | 5 | (1) | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 | 0 |
Non-qualifying strategies | Credit default swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instrument, Gain (Loss) Recognized in Income, Net | 2 | 1 | 3 | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | 0 | 0 | 0 |
Non-qualifying strategies | Futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instrument, Gain (Loss) Recognized in Income, Net | 0 | (1) | (89) | |
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | [1] | $ 0 | $ 0 | $ 0 |
[1] | Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss). | |||
[2] | Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail) |
DERIVATIVE INSTRUMENTS - Offset
DERIVATIVE INSTRUMENTS - Offsetting of Financial Assets and Derivative Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Gross amount of recognized derivative assets | $ 1,080 | $ 574 |
Gross amount of liabilities offset in balance sheet | 0 | 0 |
Net amount of derivative assets presented in balance sheet | 1,080 | 574 |
Financial instruments, amounts not offset | (698) | (51) |
Derivative, collateral, obligation to return securities | 0 | (190) |
Derivative, collateral, obligation to return cash | (382) | (326) |
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement | 0 | 7 |
Derivative asset, not subject to master netting arrangement | 127 | 102 |
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement | 127 | 102 |
Derivative asset, fair value, gross asset including not subject to master netting arrangement | 1,207 | 676 |
Net amount of derivative assets presented in balance sheet | 1,207 | 676 |
Derivative asset, fair value, amount offset against collateral | 127 | 109 |
Offsetting assets | ||
Offsetting Assets [Line Items] | ||
Gross amounts of recognized financial instruments | 1,720 | 1,597 |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of financial instruments presented in balance sheet | 1,720 | 1,597 |
Carrying value of financial instruments not offset in balance sheet | (698) | (51) |
Securities collateral, not offset in balance sheet | 0 | (190) |
Cash collateral, not offset in balance sheet | (895) | (1,247) |
Financial instruments, amount offset against collateral | 127 | 109 |
Offsetting assets | Securities lending and similar arrangements | ||
Offsetting Assets [Line Items] | ||
Gross amounts of recognized financial instruments | 513 | 921 |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of financial instruments presented in balance sheet | 513 | 921 |
Carrying value of financial instruments not offset in balance sheet | 0 | 0 |
Securities collateral, not offset in balance sheet | 0 | 0 |
Cash collateral, not offset in balance sheet | (513) | (921) |
Financial instruments, amount offset against collateral | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Offs73
DERIVATIVE INSTRUMENTS - Offsetting of Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Gross amount of recognized derivative liabilities | $ (1,852) | $ (78) |
Gross amount of assets offset in balance sheet | 0 | 0 |
Derivative liability, fair value, amount not offset against collateral | (1,852) | (78) |
Financial instruments, amounts not offset | 698 | 51 |
Derivative, collateral, right to reclaim securities | 1,130 | 18 |
Derivative, collateral, right to reclaim cash | 21 | 3 |
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement | (3) | (6) |
Derivative liability, not subject to master netting arrangement | (146) | (293) |
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement | (146) | (293) |
Derivative liability, fair value, gross liability including not subject to master netting arrangement | (1,998) | (371) |
Net amount of derivative liabilities presented in balance sheet | (1,998) | (371) |
Derivative liability, fair value, amount offset against collateral | (149) | (299) |
Offsetting liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized financial instruments | (2,524) | (1,312) |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of financial instruments presented in balance sheet | (2,524) | (1,312) |
Carrying value of financial instruments not offset in balance sheet | 1,211 | 972 |
Securities collateral, not offset in balance sheet | 1,130 | 18 |
Cash collateral, not offset in balance sheet | 21 | 3 |
Financial instruments, amount offset against collateral | (162) | (319) |
Offsetting liabilities | Securities lending and similar arrangements | ||
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized financial instruments | (526) | (941) |
Gross amounts offset in balance sheet | 0 | 0 |
Net amounts of financial instruments presented in balance sheet | (526) | (941) |
Carrying value of financial instruments not offset in balance sheet | 513 | 921 |
Securities collateral, not offset in balance sheet | 0 | 0 |
Cash collateral, not offset in balance sheet | 0 | 0 |
Financial instruments, amount offset against collateral | $ (13) | $ (20) |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value and Notional Amount of Derivatives with Counterparty Credit RIsk [Line Items] | ||
Notional Amount of Derivatives | $ 43,927 | $ 22,127 |
Asset Derivatives Fair Value | 1,207 | 676 |
Liability Derivatives Fair Value | (1,998) | (371) |
AA | ||
Fair Value and Notional Amount of Derivatives with Counterparty Credit RIsk [Line Items] | ||
Notional Amount of Derivatives | 6,844 | 2,187 |
Asset Derivatives Fair Value | 247 | 166 |
Liability Derivatives Fair Value | (308) | (35) |
A | ||
Fair Value and Notional Amount of Derivatives with Counterparty Credit RIsk [Line Items] | ||
Notional Amount of Derivatives | 36,019 | 19,940 |
Asset Derivatives Fair Value | 900 | 510 |
Liability Derivatives Fair Value | (1,621) | (336) |
BBB | ||
Fair Value and Notional Amount of Derivatives with Counterparty Credit RIsk [Line Items] | ||
Notional Amount of Derivatives | 1,064 | 0 |
Asset Derivatives Fair Value | 60 | 0 |
Liability Derivatives Fair Value | $ (69) | $ 0 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Available-for-sale securities | $ 76,702 | $ 67,794 |
Asset derivatives | 1,207 | 676 |
Other investments | 276 | 176 |
Cash and cash equivalents | 4,859 | 4,350 |
Total assets | 83,044 | 72,996 |
Liabilities: | ||
Liability derivatives | 1,998 | 371 |
Total liabilities | 1,998 | 371 |
Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 490 | 563 |
Liabilities: | ||
Liability derivatives | 230 | 314 |
Foreign currency forwards | ||
Assets: | ||
Asset derivatives | 672 | 107 |
Liabilities: | ||
Liability derivatives | 1,717 | 49 |
Foreign currency options | ||
Assets: | ||
Asset derivatives | 43 | 5 |
Liabilities: | ||
Liability derivatives | 51 | 8 |
Credit default swaps | ||
Assets: | ||
Asset derivatives | 2 | 1 |
Fixed maturities | ||
Assets: | ||
Available-for-sale securities | 73,760 | 65,349 |
Fixed maturities | Government and agencies | ||
Assets: | ||
Available-for-sale securities | 26,214 | 19,276 |
Fixed maturities | Municipalities | ||
Assets: | ||
Available-for-sale securities | 1,295 | 1,208 |
Fixed maturities | Mortgage- and asset-backed securities | ||
Assets: | ||
Available-for-sale securities | 1,337 | 582 |
Fixed maturities | Public utilities | ||
Assets: | ||
Available-for-sale securities | 7,683 | 7,479 |
Fixed maturities | Sovereign and supranational | ||
Assets: | ||
Available-for-sale securities | 1,469 | 1,407 |
Fixed maturities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale securities | 6,063 | 6,019 |
Fixed maturities | Other corporate | ||
Assets: | ||
Available-for-sale securities | 29,699 | 29,378 |
Perpetual securities | ||
Assets: | ||
Available-for-sale securities | 1,633 | 1,947 |
Perpetual securities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale securities | 1,420 | 1,742 |
Perpetual securities | Other corporate | ||
Assets: | ||
Available-for-sale securities | 213 | 205 |
Equity securities | ||
Assets: | ||
Available-for-sale securities | 1,309 | 498 |
Level 1 | ||
Assets: | ||
Available-for-sale securities | 26,687 | 19,158 |
Asset derivatives | 0 | 0 |
Other investments | 276 | 176 |
Cash and cash equivalents | 4,859 | 4,350 |
Total assets | 31,822 | 23,684 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 1 | Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Liabilities: | ||
Liability derivatives | 0 | 0 |
Level 1 | Foreign currency forwards | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Liabilities: | ||
Liability derivatives | 0 | 0 |
Level 1 | Foreign currency options | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Liabilities: | ||
Liability derivatives | 0 | 0 |
Level 1 | Credit default swaps | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Level 1 | Fixed maturities | ||
Assets: | ||
Available-for-sale securities | 25,387 | 18,669 |
Level 1 | Fixed maturities | Government and agencies | ||
Assets: | ||
Available-for-sale securities | 25,387 | 18,669 |
Level 1 | Fixed maturities | Municipalities | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Fixed maturities | Mortgage- and asset-backed securities | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Fixed maturities | Public utilities | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Fixed maturities | Sovereign and supranational | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Fixed maturities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Fixed maturities | Other corporate | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Perpetual securities | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Perpetual securities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Perpetual securities | Other corporate | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Equity securities | ||
Assets: | ||
Available-for-sale securities | 1,300 | 489 |
Level 2 | ||
Assets: | ||
Available-for-sale securities | 49,773 | 48,387 |
Asset derivatives | 1,080 | 574 |
Other investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Total assets | 50,853 | 48,961 |
Liabilities: | ||
Total liabilities | 1,852 | 78 |
Level 2 | Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 365 | 462 |
Liabilities: | ||
Liability derivatives | 84 | 21 |
Level 2 | Foreign currency forwards | ||
Assets: | ||
Asset derivatives | 672 | 107 |
Liabilities: | ||
Liability derivatives | 1,717 | 49 |
Level 2 | Foreign currency options | ||
Assets: | ||
Asset derivatives | 43 | 5 |
Liabilities: | ||
Liability derivatives | 51 | 8 |
Level 2 | Credit default swaps | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Level 2 | Fixed maturities | ||
Assets: | ||
Available-for-sale securities | 48,134 | 46,434 |
Level 2 | Fixed maturities | Government and agencies | ||
Assets: | ||
Available-for-sale securities | 827 | 607 |
Level 2 | Fixed maturities | Municipalities | ||
Assets: | ||
Available-for-sale securities | 1,295 | 1,208 |
Level 2 | Fixed maturities | Mortgage- and asset-backed securities | ||
Assets: | ||
Available-for-sale securities | 1,139 | 362 |
Level 2 | Fixed maturities | Public utilities | ||
Assets: | ||
Available-for-sale securities | 7,667 | 7,479 |
Level 2 | Fixed maturities | Sovereign and supranational | ||
Assets: | ||
Available-for-sale securities | 1,469 | 1,407 |
Level 2 | Fixed maturities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale securities | 6,038 | 5,993 |
Level 2 | Fixed maturities | Other corporate | ||
Assets: | ||
Available-for-sale securities | 29,699 | 29,378 |
Level 2 | Perpetual securities | ||
Assets: | ||
Available-for-sale securities | 1,633 | 1,947 |
Level 2 | Perpetual securities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale securities | 1,420 | 1,742 |
Level 2 | Perpetual securities | Other corporate | ||
Assets: | ||
Available-for-sale securities | 213 | 205 |
Level 2 | Equity securities | ||
Assets: | ||
Available-for-sale securities | 6 | 6 |
Level 3 | ||
Assets: | ||
Available-for-sale securities | 242 | 249 |
Asset derivatives | 127 | 102 |
Other investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Total assets | 369 | 351 |
Liabilities: | ||
Total liabilities | 146 | 293 |
Level 3 | Foreign currency swaps | ||
Assets: | ||
Asset derivatives | 125 | 101 |
Liabilities: | ||
Liability derivatives | 146 | 293 |
Level 3 | Foreign currency forwards | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Liabilities: | ||
Liability derivatives | 0 | 0 |
Level 3 | Foreign currency options | ||
Assets: | ||
Asset derivatives | 0 | 0 |
Liabilities: | ||
Liability derivatives | 0 | 0 |
Level 3 | Credit default swaps | ||
Assets: | ||
Asset derivatives | 2 | 1 |
Level 3 | Fixed maturities | ||
Assets: | ||
Available-for-sale securities | 239 | 246 |
Level 3 | Fixed maturities | Government and agencies | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Fixed maturities | Municipalities | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Fixed maturities | Mortgage- and asset-backed securities | ||
Assets: | ||
Available-for-sale securities | 198 | 220 |
Level 3 | Fixed maturities | Public utilities | ||
Assets: | ||
Available-for-sale securities | 16 | 0 |
Level 3 | Fixed maturities | Sovereign and supranational | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Fixed maturities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale securities | 25 | 26 |
Level 3 | Fixed maturities | Other corporate | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Perpetual securities | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Perpetual securities | Banks/financial institutions | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Perpetual securities | Other corporate | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Equity securities | ||
Assets: | ||
Available-for-sale securities | $ 3 | $ 3 |
FAIR VALUE MEASUREMENTS - Fai76
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Securities held to maturity, fixed maturities, amortized cost | $ 33,350 | $ 33,459 |
Securities held to maturity, fixed maturities, fair value | 40,021 | 37,520 |
Other investments, carried at amortized cost | 1,174 | 118 |
Other investments, carried at amortized cost, fair value | 1,142 | 118 |
Total financial instruments, assets, not carried at fair value | 34,524 | 33,577 |
Assets, fair value disclosure, financial instruments, carried at cost | 41,163 | 37,638 |
Liabilities: | ||
Other policyholders' funds | 6,659 | 6,285 |
Other policyholders' funds fair value disclosure | 6,540 | 6,160 |
Notes payable | 5,339 | 4,951 |
Notes payable, fair value disclosure | 5,530 | 5,256 |
Total financial instrument liabilities not carried at fair value | 11,998 | 11,236 |
Liabilities fair value disclosure financial instruments carried at cost | 12,070 | 11,416 |
Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 40,021 | 37,520 |
Government and agencies | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, amortized cost | 20,702 | 20,004 |
Securities held to maturity, fixed maturities, fair value | 26,040 | 23,391 |
Municipalities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, amortized cost | 350 | 341 |
Securities held to maturity, fixed maturities, fair value | 457 | 415 |
Mortgage- and asset-backed securities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, amortized cost | 30 | 36 |
Securities held to maturity, fixed maturities, fair value | 32 | 38 |
Public utilities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, amortized cost | 3,201 | 3,092 |
Securities held to maturity, fixed maturities, fair value | 3,536 | 3,203 |
Sovereign and supranational | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, amortized cost | 2,602 | 2,555 |
Securities held to maturity, fixed maturities, fair value | 2,877 | 2,711 |
Banks/financial institutions | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, amortized cost | 3,731 | 4,431 |
Securities held to maturity, fixed maturities, fair value | 3,900 | 4,546 |
Other corporate | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, amortized cost | 2,734 | 3,000 |
Securities held to maturity, fixed maturities, fair value | 3,179 | 3,216 |
Level 1 | ||
Assets: | ||
Other investments, carried at amortized cost, fair value | 0 | 0 |
Assets, fair value disclosure, financial instruments, carried at cost | 26,040 | 23,391 |
Liabilities: | ||
Other policyholders' funds fair value disclosure | 0 | 0 |
Notes payable, fair value disclosure | 0 | 0 |
Liabilities fair value disclosure financial instruments carried at cost | 0 | 0 |
Level 1 | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 26,040 | 23,391 |
Level 1 | Government and agencies | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 26,040 | 23,391 |
Level 1 | Municipalities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 1 | Mortgage- and asset-backed securities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 1 | Public utilities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 1 | Sovereign and supranational | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 1 | Banks/financial institutions | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 1 | Other corporate | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Other investments, carried at amortized cost, fair value | 0 | 0 |
Assets, fair value disclosure, financial instruments, carried at cost | 13,959 | 14,103 |
Liabilities: | ||
Other policyholders' funds fair value disclosure | 0 | 0 |
Notes payable, fair value disclosure | 0 | 0 |
Liabilities fair value disclosure financial instruments carried at cost | 0 | 0 |
Level 2 | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 13,959 | 14,103 |
Level 2 | Government and agencies | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 2 | Municipalities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 457 | 415 |
Level 2 | Mortgage- and asset-backed securities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 10 | 12 |
Level 2 | Public utilities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 3,536 | 3,203 |
Level 2 | Sovereign and supranational | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 2,877 | 2,711 |
Level 2 | Banks/financial institutions | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 3,900 | 4,546 |
Level 2 | Other corporate | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 3,179 | 3,216 |
Level 3 | ||
Assets: | ||
Other investments, carried at amortized cost, fair value | 1,142 | 118 |
Assets, fair value disclosure, financial instruments, carried at cost | 1,164 | 144 |
Liabilities: | ||
Other policyholders' funds fair value disclosure | 6,540 | 6,160 |
Notes payable, fair value disclosure | 5,530 | 5,256 |
Liabilities fair value disclosure financial instruments carried at cost | 12,070 | 11,416 |
Level 3 | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 22 | 26 |
Level 3 | Government and agencies | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 3 | Municipalities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 3 | Mortgage- and asset-backed securities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 22 | 26 |
Level 3 | Public utilities | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 3 | Sovereign and supranational | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 3 | Banks/financial institutions | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Level 3 | Other corporate | Fixed maturities | ||
Assets: | ||
Securities held to maturity, fixed maturities, fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fai77
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Available-for-sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | $ 76,702 | $ 67,794 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 26,687 | 19,158 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 49,773 | 48,387 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 242 | 249 |
Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 73,760 | 65,349 |
Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 25,387 | 18,669 |
Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 48,134 | 46,434 |
Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 239 | 246 |
Perpetual securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,633 | 1,947 |
Perpetual securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Perpetual securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,633 | 1,947 |
Perpetual securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,309 | 498 |
Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,300 | 489 |
Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 6 | 6 |
Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 3 | 3 |
Equity securities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,306 | 495 |
Equity securities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,300 | 489 |
Equity securities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 6 | 6 |
Equity securities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Equity securities | Net asset value valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 3 | 3 |
Equity securities | Net asset value valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Equity securities | Net asset value valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Equity securities | Net asset value valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 3 | 3 |
Government and agencies | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 26,214 | 19,276 |
Government and agencies | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 25,387 | 18,669 |
Government and agencies | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 827 | 607 |
Government and agencies | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 26,214 | 19,276 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 25,387 | 18,669 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 827 | 607 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Municipalities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,295 | 1,208 |
Municipalities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Municipalities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,295 | 1,208 |
Municipalities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,295 | 1,208 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,295 | 1,208 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,337 | 582 |
Mortgage- and asset-backed securities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,139 | 362 |
Mortgage- and asset-backed securities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 198 | 220 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,139 | 362 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,139 | 362 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 198 | 220 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 198 | 220 |
Public utilities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 7,683 | 7,479 |
Public utilities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Public utilities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 7,667 | 7,479 |
Public utilities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 16 | 0 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 7,667 | 7,479 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 7,667 | 7,479 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 16 | |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 16 | |
Sovereign and supranational | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,469 | 1,407 |
Sovereign and supranational | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Sovereign and supranational | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,469 | 1,407 |
Sovereign and supranational | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,469 | 1,407 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,469 | 1,407 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 6,063 | 6,019 |
Banks/financial institutions | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 6,038 | 5,993 |
Banks/financial institutions | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 25 | 26 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 6,038 | 5,993 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 6,038 | 5,993 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 25 | 26 |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 25 | 26 |
Banks/financial institutions | Perpetual securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,420 | 1,742 |
Banks/financial institutions | Perpetual securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Banks/financial institutions | Perpetual securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,420 | 1,742 |
Banks/financial institutions | Perpetual securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,420 | 1,742 |
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,420 | 1,742 |
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Other corporate | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 29,699 | 29,378 |
Other corporate | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Other corporate | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 29,699 | 29,378 |
Other corporate | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 29,699 | 29,378 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 29,699 | 29,378 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Other corporate | Perpetual securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 213 | 205 |
Other corporate | Perpetual securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Other corporate | Perpetual securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 213 | 205 |
Other corporate | Perpetual securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 213 | 205 |
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | 213 | 205 |
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fai78
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels by Pricing Source, Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | $ 40,021 | $ 37,520 |
Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 40,021 | 37,520 |
Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 26,040 | 23,391 |
Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 13,959 | 14,103 |
Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 22 | 26 |
Government and agencies | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 26,040 | 23,391 |
Government and agencies | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 26,040 | 23,391 |
Government and agencies | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Government and agencies | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 26,040 | 23,391 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 26,040 | 23,391 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Municipalities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 457 | 415 |
Municipalities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Municipalities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 457 | 415 |
Municipalities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 457 | 415 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 457 | 415 |
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 32 | 38 |
Mortgage- and asset-backed securities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 10 | 12 |
Mortgage- and asset-backed securities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 22 | 26 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 10 | 12 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 10 | 12 |
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 22 | 26 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 22 | 26 |
Public utilities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,536 | 3,203 |
Public utilities | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Public utilities | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,536 | 3,203 |
Public utilities | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,536 | 3,203 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,536 | 3,203 |
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Sovereign and supranational | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 2,877 | 2,711 |
Sovereign and supranational | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Sovereign and supranational | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 2,877 | 2,711 |
Sovereign and supranational | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 2,877 | 2,711 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 2,877 | 2,711 |
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Banks/financial institutions | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,900 | 4,546 |
Banks/financial institutions | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Banks/financial institutions | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,900 | 4,546 |
Banks/financial institutions | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,900 | 4,546 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,900 | 4,546 |
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Other corporate | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,179 | 3,216 |
Other corporate | Fixed maturities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Other corporate | Fixed maturities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,179 | 3,216 |
Other corporate | Fixed maturities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,179 | 3,189 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | 0 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 3,179 | 3,189 |
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | $ 0 | 0 |
Other corporate | Fixed maturities | Consensus pricing valuation technique | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 27 | |
Other corporate | Fixed maturities | Consensus pricing valuation technique | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 0 | |
Other corporate | Fixed maturities | Consensus pricing valuation technique | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | 27 | |
Other corporate | Fixed maturities | Consensus pricing valuation technique | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities held to maturity, fixed maturities, fair value | $ 0 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Available-For-Sale Investments and Derivatives Classified as Level 3 (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | $ 58 | $ 189 | |
Realized gains or losses included in earnings | 195 | (14) | |
Unrealized gains or losses included in other comprehensive income (loss) | 15 | (4) | |
Purchases | 16 | 0 | |
Issuances | 0 | 0 | |
Sales | 0 | (147) | |
Settlements | (61) | 34 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance, end of period | 223 | 58 | |
Change in unrealized gain (losses) still held | 195 | (14) | |
Foreign currency swaps | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance, beginning of period | [1] | (192) | (212) |
Realized gains or losses included in earnings | [1] | 194 | (15) |
Unrealized gains or losses included in other comprehensive income (loss) | [1] | (22) | (1) |
Purchases | [1] | 0 | 0 |
Issuances | [1] | 0 | 0 |
Sales | [1] | 0 | 0 |
Settlements | [1] | (1) | 36 |
Transfers into Level 3 | [1] | 0 | 0 |
Transfers out of Level 3 | [1] | 0 | 0 |
Balance, end of period | [1] | (21) | (192) |
Change in unrealized gain (losses) still held | [1] | 194 | (15) |
Credit default swaps | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance, beginning of period | [1] | 1 | 0 |
Realized gains or losses included in earnings | [1] | 1 | 1 |
Unrealized gains or losses included in other comprehensive income (loss) | [1] | 0 | 0 |
Purchases | [1] | 0 | 0 |
Issuances | [1] | 0 | 0 |
Sales | [1] | 0 | 0 |
Settlements | [1] | 0 | 0 |
Transfers into Level 3 | [1] | 0 | 0 |
Transfers out of Level 3 | [1] | 0 | 0 |
Balance, end of period | [1] | 2 | 1 |
Change in unrealized gain (losses) still held | [1] | 1 | 1 |
Fixed maturities | Mortgage- and asset-backed securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 220 | 223 | |
Realized gains or losses included in earnings | 0 | 0 | |
Unrealized gains or losses included in other comprehensive income (loss) | 38 | (1) | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Sales | 0 | 0 | |
Settlements | (60) | (2) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance, end of period | 198 | 220 | |
Change in unrealized gain (losses) still held | 0 | 0 | |
Fixed maturities | Public utilities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 0 | ||
Realized gains or losses included in earnings | 0 | ||
Unrealized gains or losses included in other comprehensive income (loss) | 0 | ||
Purchases | 16 | ||
Issuances | 0 | ||
Sales | 0 | ||
Settlements | 0 | ||
Transfers into Level 3 | 0 | ||
Transfers out of Level 3 | 0 | ||
Balance, end of period | 16 | 0 | |
Change in unrealized gain (losses) still held | 0 | ||
Fixed maturities | Banks/financial institutions | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 26 | 26 | |
Realized gains or losses included in earnings | 0 | 0 | |
Unrealized gains or losses included in other comprehensive income (loss) | (1) | 0 | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Sales | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance, end of period | 25 | 26 | |
Change in unrealized gain (losses) still held | 0 | 0 | |
Perpetual securities | Banks/financial institutions | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 0 | 149 | |
Realized gains or losses included in earnings | 0 | ||
Unrealized gains or losses included in other comprehensive income (loss) | (2) | ||
Purchases | 0 | ||
Issuances | 0 | ||
Sales | (147) | ||
Settlements | 0 | ||
Transfers into Level 3 | 0 | ||
Transfers out of Level 3 | 0 | ||
Balance, end of period | 0 | ||
Change in unrealized gain (losses) still held | 0 | ||
Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 3 | 3 | |
Realized gains or losses included in earnings | 0 | 0 | |
Unrealized gains or losses included in other comprehensive income (loss) | 0 | 0 | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Sales | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance, end of period | 3 | 3 | |
Change in unrealized gain (losses) still held | $ 0 | $ 0 | |
[1] | Derivative assets and liabilities are presented net |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fai81
FAIR VALUE MEASUREMENTS - Fair Value Inputs Assets Quantitative Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | $ 76,702 | $ 67,794 | |
Asset derivatives | 1,207 | 676 | |
Assets, fair value | $ 83,044 | $ 72,996 | |
Length of Volatility of Japanese Yen to US Dollar Exchange Rate | 10 years | 10 years | |
Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | $ 242 | $ 249 | |
Asset derivatives | 127 | 102 | |
Assets, fair value | 369 | 351 | |
Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 73,760 | 65,349 | |
Fixed maturities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 239 | 246 | |
Equity securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 1,309 | 498 | |
Equity securities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 3 | 3 | |
Equity securities | Net asset value valuation technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 3 | 3 | |
Equity securities | Net asset value valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | $ 3 | $ 3 | |
Equity securities | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Offered Quotes | $ 1 | $ 1 | |
Equity securities | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Offered Quotes | 701 | 677 | |
Equity securities | Assets | Weighted Average | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Offered Quotes | $ 8 | $ 7 | |
Mortgage- and asset-backed securities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | $ 1,337 | $ 582 | |
Mortgage- and asset-backed securities | Fixed maturities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 198 | 220 | |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 198 | 220 | |
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 198 | 220 | |
Public utilities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 7,683 | 7,479 | |
Public utilities | Fixed maturities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 16 | 0 | |
Public utilities | Fixed maturities | Discounted cash flow valuation technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 16 | ||
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 16 | ||
Banks/financial institutions | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 6,063 | 6,019 | |
Banks/financial institutions | Fixed maturities | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 25 | 26 | |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 25 | 26 | |
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 25 | 26 | |
Foreign currency swaps | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | 490 | 563 | |
Foreign currency swaps | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | 125 | 101 | |
Credit default swaps | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | 2 | 1 | |
Credit default swaps | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | 2 | 1 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | $ 16 | $ 7 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Foreign Exchange Rates | [1] | 21.47% | 20.05% |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.17% | 0.32% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 1.72% | 1.47% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | $ 29 | ||
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.16% | ||
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.88% | ||
Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | $ 80 | $ 94 | |
Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Foreign Exchange Rates | [1] | 21.47% | 20.05% |
Fair value, unobservable input, base correlation, CDS spreads, recovery rate | Credit default swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Asset derivatives | $ 2 | $ 1 | |
Fair value, unobservable input, base correlation, CDS spreads, recovery rate | Credit default swaps | Assets | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.54% | 1.23% | |
Fair Value Inputs, Recovery Rate | 36.69% | 36.87% | |
Fair value, unobservable input, base correlation, CDS spreads, recovery rate | Credit default swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Base Correlation | [2] | 52.18% | 53.26% |
Fair value, unobservable input, base correlation, CDS spreads, recovery rate | Credit default swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Base Correlation | [2] | 56.07% | 58.40% |
Yen-denominated | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | $ 37,149 | $ 28,511 | |
Yen-denominated | Equity securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 705 | 487 | |
Yen-denominated | Mortgage- and asset-backed securities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 1,121 | 355 | |
Yen-denominated | Public utilities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 1,848 | 1,600 | |
Yen-denominated | Banks/financial institutions | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | $ 3,002 | $ 2,541 | |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.22% | 0.42% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.80% | 1.22% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.22% | |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.80% | |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.22% | 0.42% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 0.80% | 1.22% |
Dollar-denominated | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | $ 36,611 | $ 36,838 | |
Dollar-denominated | Equity securities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 604 | 11 | |
Dollar-denominated | Mortgage- and asset-backed securities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 216 | 227 | |
Dollar-denominated | Public utilities | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | 5,835 | 5,879 | |
Dollar-denominated | Banks/financial institutions | Fixed maturities | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Available-for-sale securities | $ 3,061 | $ 3,478 | |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 2.34% | 2.20% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 2.59% | 2.62% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 2.34% | |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 2.59% | |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 2.34% | 2.20% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3 | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [4] | 2.59% | 2.62% |
[1] | Based on 10 year volatility of JPY/USD exchange rate | ||
[2] | Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices | ||
[3] | Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps | ||
[4] | Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps |
FAIR VALUE MEASUREMENTS - Fai82
FAIR VALUE MEASUREMENTS - Fair Value Inputs Liabilities Quantitative Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | $ 1,998 | $ 371 | |
Liabilities, fair value disclosure | $ 1,998 | $ 371 | |
Length of Volatility of Japanese Yen to US Dollar Exchange Rate | 10 years | 10 years | |
Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liabilities, fair value disclosure | $ 146 | $ 293 | |
Foreign currency swaps | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | 230 | 314 | |
Foreign currency swaps | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | 146 | 293 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | $ 113 | $ 158 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Foreign Exchange Rates | [1] | 21.47% | 20.05% |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.17% | 0.32% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 1.72% | 1.47% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | $ 23 | $ 120 | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 0.24% | 0.35% | |
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Entity Credit Risk | 2.16% | 2.13% | |
Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Liability derivatives | $ 10 | $ 15 | |
Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Foreign Exchange Rates | [1] | 21.47% | 20.05% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 0.22% | 0.42% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 0.80% | 1.22% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 0.22% | 0.42% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 0.80% | 1.22% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 0.22% | 0.42% |
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [2] | 0.80% | 1.22% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.34% | 2.20% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.59% | 2.62% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.34% | 2.20% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.59% | 2.62% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.34% | 2.20% |
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | [3] | 2.59% | 2.62% |
[1] | Based on 10 year volatility of JPY/USD exchange rate | ||
[2] | Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps | ||
[3] | Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps |
DEFERRED POLICY ACQUISITION C83
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES - Additional Information (Detail) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |||
Consolidated policy acquisition costs deferred | $ 1.4 | $ 1.3 | $ 1.3 |
Commissions deferred as a percentage of total acquisition costs | 74.00% | 74.00% | 77.00% |
Personnel, compensation and benefit expenses as a percentage of insurance expenses | 53.00% | 52.00% | 52.00% |
DEFERRED POLICY ACQUISITION C84
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES - Rollforward of Deferred Policy Acquisition Costs by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred policy acquisition costs: | |||
Balance, beginning of year | $ 8,511 | ||
Capitalization | 1,400 | $ 1,300 | $ 1,300 |
Amortization | (1,141) | (1,066) | (1,108) |
Balance, end of year | 8,993 | 8,511 | |
Aflac Japan | |||
Deferred policy acquisition costs: | |||
Balance, beginning of year | 5,370 | 5,211 | |
Capitalization | 864 | 738 | |
Amortization | (644) | (578) | (649) |
Foreign currency translation and other | 175 | (1) | |
Balance, end of year | 5,765 | 5,370 | 5,211 |
Aflac U.S. | |||
Deferred policy acquisition costs: | |||
Balance, beginning of year | 3,141 | 3,062 | |
Capitalization | 583 | 578 | |
Amortization | (497) | (488) | (459) |
Foreign currency translation and other | 1 | (11) | |
Balance, end of year | $ 3,228 | $ 3,141 | $ 3,062 |
DEFERRED POLICY ACQUISITION C85
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES - Advertising Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Advertising Costs [Line Items] | |||
Advertising expense | $ 224 | $ 211 | $ 229 |
Aflac Japan | |||
Advertising Costs [Line Items] | |||
Advertising expense | 100 | 82 | 103 |
Aflac U.S. | |||
Advertising Costs [Line Items] | |||
Advertising expense | $ 124 | $ 129 | $ 126 |
DEFERRED POLICY ACQUISITION C86
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES - Depreciation and Other Amortization Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |||
Depreciation expense | $ 48 | $ 44 | $ 47 |
Other amortization expense | 6 | 6 | 8 |
Total depreciation and other amortization expense | $ 54 | $ 50 | $ 55 |
DEFERRED POLICY ACQUISITION C87
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES - Lease and Rental Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Lease and Rental Expense [Line Items] | |||
Lease and rental expense | $ 75 | $ 65 | $ 68 |
Aflac Japan | |||
Lease and Rental Expense [Line Items] | |||
Lease and rental expense | 53 | 46 | 52 |
Aflac U.S. | |||
Lease and Rental Expense [Line Items] | |||
Lease and rental expense | 21 | 18 | 15 |
All other | |||
Lease and Rental Expense [Line Items] | |||
Lease and rental expense | $ 1 | $ 1 | $ 1 |
POLICY LIABILITIES - Additional
POLICY LIABILITIES - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Percentage of future policy benefits out of policy liabilities | 81.00% | ||
Percentage of unpaid policy claims out of policy liabilities | 4.00% | ||
Percentage of unearned premiums out of policy liabilities | 8.00% | ||
Percentage of other poliyholders' funds out of policy liabilities | 7.00% | ||
Percentage of advanced premiums to unearned premiums | 76.00% | 77.00% | |
Percentage of annuities to other policyholders' fund | 98.00% | 98.00% | |
Aflac Japan | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Weighted-average interest rates reflected in the consolidated statements of earnings for future policy benefits | 3.50% | 3.60% | 3.80% |
Aflac U.S. | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Weighted-average interest rates reflected in the consolidated statements of earnings for future policy benefits | 5.50% | 5.60% | 5.70% |
POLICY LIABILITIES - Liability
POLICY LIABILITIES - Liability for Future Policy Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | $ 76,106 | $ 69,687 | ||
Aflac Japan | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 3.50% | 3.60% | 3.80% | |
Aflac U.S. | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 5.50% | 5.60% | 5.70% | |
Intercompany eliminations | 2015 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 2.00% | |||
Interest Rates In 20 Years | 2.00% | |||
Liability amounts | [1] | $ (630) | $ (646) | |
Health insurance | Aflac Japan | 1992 - 2016 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | $ 8,912 | 7,633 | ||
Health insurance | Aflac Japan | 1992 - 2016 | Lower Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 1.25% | |||
Interest Rates In 20 Years | 1.25% | |||
Health insurance | Aflac Japan | 1992 - 2016 | Upper Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 2.50% | |||
Interest Rates In 20 Years | 2.50% | |||
Health insurance | Aflac Japan | 1974 - 2013 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | $ 1,118 | 1,078 | ||
Health insurance | Aflac Japan | 1974 - 2013 | Lower Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 2.70% | |||
Interest Rates In 20 Years | 2.25% | |||
Health insurance | Aflac Japan | 1974 - 2013 | Upper Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 2.75% | |||
Interest Rates In 20 Years | 2.75% | |||
Health insurance | Aflac Japan | 1998 - 2016 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 3.00% | |||
Interest Rates In 20 Years | 3.00% | |||
Liability amounts | $ 11,687 | 11,008 | ||
Health insurance | Aflac Japan | 1997 - 1999 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 3.50% | |||
Interest Rates In 20 Years | 3.50% | |||
Liability amounts | $ 2,485 | 2,435 | ||
Health insurance | Aflac Japan | 1994 - 1996 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | $ 3,069 | 2,998 | ||
Health insurance | Aflac Japan | 1994 - 1996 | Lower Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 4.00% | |||
Interest Rates In 20 Years | 4.00% | |||
Health insurance | Aflac Japan | 1994 - 1996 | Upper Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 4.50% | |||
Interest Rates In 20 Years | 4.50% | |||
Health insurance | Aflac Japan | 1987 - 1994 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 5.50% | |||
Interest Rates In 20 Years | 5.50% | |||
Liability amounts | $ 14,372 | 14,161 | ||
Health insurance | Aflac Japan | 1985 - 1991 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | $ 1,871 | 1,868 | ||
Health insurance | Aflac Japan | 1985 - 1991 | Lower Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 5.25% | |||
Interest Rates In 20 Years | 5.25% | |||
Health insurance | Aflac Japan | 1985 - 1991 | Upper Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 6.75% | |||
Interest Rates In 20 Years | 5.50% | |||
Health insurance | Aflac Japan | 1978 - 1984 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 6.50% | |||
Interest Rates In 20 Years | 5.50% | |||
Liability amounts | $ 2,134 | 2,163 | ||
Health insurance | Aflac U.S. | 2013 - 2016 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | $ 75 | 57 | ||
Health insurance | Aflac U.S. | 2013 - 2016 | Lower Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 3.00% | |||
Interest Rates In 20 Years | 3.00% | |||
Health insurance | Aflac U.S. | 2013 - 2016 | Upper Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 3.50% | |||
Interest Rates In 20 Years | 3.50% | |||
Health insurance | Aflac U.S. | 2012 - 2016 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 3.75% | |||
Interest Rates In 20 Years | 3.75% | |||
Liability amounts | $ 1,062 | 794 | ||
Health insurance | Aflac U.S. | 2011 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 4.75% | |||
Interest Rates In 20 Years | 4.75% | |||
Liability amounts | $ 319 | 300 | ||
Health insurance | Aflac U.S. | 2005 - 2010 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 5.50% | |||
Interest Rates In 20 Years | 5.50% | |||
Liability amounts | $ 3,004 | 2,986 | ||
Health insurance | Aflac U.S. | 1988 - 2004 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 8.00% | |||
Interest Rates In 20 Years | 6.00% | |||
Liability amounts | $ 669 | 687 | ||
Health insurance | Aflac U.S. | 1986 - 2004 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 6.00% | |||
Interest Rates In 20 Years | 6.00% | |||
Liability amounts | $ 1,265 | 1,276 | ||
Health insurance | Aflac U.S. | 1981 - 1986 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | $ 166 | 174 | ||
Health insurance | Aflac U.S. | 1981 - 1986 | Lower Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 6.50% | |||
Interest Rates In 20 Years | 5.50% | |||
Health insurance | Aflac U.S. | 1981 - 1986 | Upper Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 7.00% | |||
Interest Rates In 20 Years | 6.50% | |||
Health insurance | Aflac U.S. | 1998 - 2004 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 7.00% | |||
Interest Rates In 20 Years | 7.00% | |||
Liability amounts | $ 1,295 | 1,279 | ||
Health insurance | Aflac U.S. | Other years | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | 19 | 21 | ||
Life insurance | Aflac Japan | 2001 - 2016 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | $ 7,255 | 5,441 | ||
Life insurance | Aflac Japan | 2001 - 2016 | Lower Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 1.50% | |||
Interest Rates In 20 Years | 1.50% | |||
Life insurance | Aflac Japan | 2001 - 2016 | Upper Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 1.85% | |||
Interest Rates In 20 Years | 1.85% | |||
Life insurance | Aflac Japan | 2011 - 2016 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 2.00% | |||
Interest Rates In 20 Years | 2.00% | |||
Liability amounts | $ 4,151 | 3,226 | ||
Life insurance | Aflac Japan | 2009 - 2011 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 2.25% | |||
Interest Rates In 20 Years | 2.25% | |||
Liability amounts | $ 2,861 | 2,332 | ||
Life insurance | Aflac Japan | 1992 - 2006 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 2.19% | |||
Interest Rates In 20 Years | 1.55% | |||
Liability amounts | $ 5 | 5 | ||
Life insurance | Aflac Japan | 2005 - 2011 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 2.50% | |||
Interest Rates In 20 Years | 2.50% | |||
Liability amounts | $ 1,488 | 1,330 | ||
Life insurance | Aflac Japan | 1985 - 2006 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 2.70% | |||
Interest Rates In 20 Years | 2.25% | |||
Liability amounts | $ 2,007 | 1,962 | ||
Life insurance | Aflac Japan | 2007 - 2011 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 2.75% | |||
Interest Rates In 20 Years | 2.75% | |||
Liability amounts | $ 1,220 | 1,105 | ||
Life insurance | Aflac Japan | 1999 - 2011 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 3.00% | |||
Interest Rates In 20 Years | 3.00% | |||
Liability amounts | $ 2,102 | 1,988 | ||
Life insurance | Aflac Japan | 1996 - 2009 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 3.50% | |||
Interest Rates In 20 Years | 3.50% | |||
Liability amounts | $ 657 | 635 | ||
Life insurance | Aflac Japan | 1994 - 1996 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | $ 897 | 877 | ||
Life insurance | Aflac Japan | 1994 - 1996 | Lower Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 4.00% | |||
Interest Rates In 20 Years | 4.00% | |||
Life insurance | Aflac Japan | 1994 - 1996 | Upper Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 4.50% | |||
Interest Rates In 20 Years | 4.50% | |||
Life insurance | Aflac U.S. | 1956 - 2016 | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability amounts | $ 571 | $ 514 | ||
Life insurance | Aflac U.S. | 1956 - 2016 | Lower Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 3.50% | |||
Interest Rates In 20 Years | 3.50% | |||
Life insurance | Aflac U.S. | 1956 - 2016 | Upper Limit | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Interest Rates Year of Issue | 6.00% | |||
Interest Rates In 20 Years | 6.00% | |||
[1] | Elimination entry necessary due to recapture of a portion of policy liabilities ceded externally, as a result of the reinsurance retrocession transaction as described in Note 8 of the Notes to the Consolidated Financial Statements |
POLICY LIABILITIES - Changes in
POLICY LIABILITIES - Changes in Liability for Unpaid Policy Claims (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Unpaid Claims and Claims Expenses | |||
Unpaid supplemental health claims, beginning of year | $ 3,802 | $ 3,630 | |
Net balance, beginning of year | 3,802 | ||
Less claims paid during the year on claims incurred during: | |||
Net balance, end of year | 4,045 | 3,802 | |
Total liability for unpaid policy claims | 4,045 | 3,802 | $ 3,630 |
Health insurance | |||
Liability for Unpaid Claims and Claims Expenses | |||
Unpaid supplemental health claims, beginning of year | 3,548 | 3,412 | 3,537 |
Less reinsurance recoverables | 26 | 7 | 9 |
Net balance, beginning of year | 3,522 | 3,405 | 3,528 |
Add claims incurred during the year related to: | |||
Current year | 7,037 | 6,416 | 6,866 |
Prior years | (465) | (353) | (301) |
Total incurred | 6,572 | 6,063 | 6,565 |
Less claims paid during the year on claims incurred during: | |||
Current year | 4,613 | 4,227 | 4,532 |
Prior years | 1,865 | 1,718 | 1,873 |
Total paid | 6,478 | 5,945 | 6,405 |
Effect of foreign exchange rate changes on unpaid claims | 64 | (1) | (283) |
Net balance, end of year | 3,680 | 3,522 | 3,405 |
Add reinsurance recoverables | 27 | 26 | 7 |
Total liability for unpaid policy claims | 3,707 | 3,548 | 3,412 |
Life insurance | |||
Liability for Unpaid Claims and Claims Expenses | |||
Unpaid supplemental health claims, beginning of year | 254 | 218 | |
Less claims paid during the year on claims incurred during: | |||
Total liability for unpaid policy claims | $ 338 | $ 254 | $ 218 |
REINSURANCE Additional Informat
REINSURANCE Additional Information (Detail) $ in Millions, ¥ in Billions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2016JPY (¥) | Dec. 31, 2015USD ($) | |
Effects of Reinsurance [Line Items] | |||
Percent change in spot yen/dollar exchange rate | 4.00% | ||
Percent change in ceded reserves | 3.00% | ||
Aflac Japan | |||
Effects of Reinsurance [Line Items] | |||
Committed reinsurance facility | ¥ | ¥ 110 | ||
Aflac Japan | Closed Block- Tranche Three | |||
Effects of Reinsurance [Line Items] | |||
Coinsurance reinsurance ceded percentage | 30.00% | ||
Reinsurance assumed percentage | 27.00% | ||
Aflac Japan | Closed Medical Block - Tranche Two | |||
Effects of Reinsurance [Line Items] | |||
Coinsurance reinsurance ceded percentage | 16.70% | ||
Aflac Japan | Closed Medical Block - Tranche One | |||
Effects of Reinsurance [Line Items] | |||
Coinsurance reinsurance ceded percentage | 33.30% | ||
Aflac Japan | Closed block | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance assumed percentage | 8.35% | ||
Reinsurance deferred profit liability | $ 870 | ||
Reinsurance recoverables | 860 | $ 805 | |
Letter of credit | Closed Block- Tranche Three | |||
Effects of Reinsurance [Line Items] | |||
Collateral posted for reinsurance | $ 90 |
REINSURANCE Effect of Reinsuran
REINSURANCE Effect of Reinsurance on Premiums and Benefits and Claims (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effects of Reinsurance [Line Items] | |||||||||||
Direct premiums earned | $ 19,592 | $ 17,904 | $ 19,412 | ||||||||
Ceded premiums | (608) | (520) | (350) | ||||||||
Assumed premiums earned | 241 | 186 | 10 | ||||||||
Net premium income | $ 4,778 | $ 5,022 | $ 4,823 | $ 4,602 | $ 4,394 | $ 4,380 | $ 4,364 | $ 4,432 | 19,225 | 17,570 | 19,072 |
Direct benefits and claims | 13,240 | 12,041 | |||||||||
Benefits and claims, net | 12,919 | 11,746 | 12,937 | ||||||||
All other | |||||||||||
Effects of Reinsurance [Line Items] | |||||||||||
Ceded premiums | (48) | (39) | |||||||||
Assumed premiums earned | 7 | 8 | |||||||||
Ceded benefits and claims | (38) | (30) | |||||||||
Assumed benefits and claims from other companies | 4 | 5 | |||||||||
Aflac Japan | |||||||||||
Effects of Reinsurance [Line Items] | |||||||||||
Net premium income | 13,537 | 12,046 | 13,861 | ||||||||
Benefits and claims, net | 9,828 | 8,705 | $ 10,084 | ||||||||
Aflac Japan | Closed block | |||||||||||
Effects of Reinsurance [Line Items] | |||||||||||
Ceded premiums | (560) | (481) | |||||||||
Assumed premiums earned | 234 | 178 | |||||||||
Ceded benefits and claims | (509) | (437) | |||||||||
Assumed benefits and claims from other companies | 222 | 167 | |||||||||
Intercompany eliminations | |||||||||||
Effects of Reinsurance [Line Items] | |||||||||||
Ceded benefits and claims | 58 | 46 | |||||||||
Assumed benefits and claims from other companies | $ (58) | $ (46) |
NOTES PAYABLE - Additional Info
NOTES PAYABLE - Additional Information (Detail) ¥ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016JPY (¥) | Jul. 31, 2016JPY (¥) | Mar. 31, 2015USD ($)series | Nov. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Oct. 31, 2012USD ($) | Sep. 30, 2012USD ($) | Jul. 31, 2012USD ($) | Feb. 29, 2012USD ($)series | Aug. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016JPY (¥) | Sep. 30, 2016USD ($)series | Sep. 30, 2016JPY (¥)series | Dec. 31, 2015USD ($) | Dec. 31, 2015JPY (¥) | Mar. 31, 2015JPY (¥)series | Nov. 30, 2014JPY (¥) | Jun. 30, 2013JPY (¥) | Oct. 31, 2012JPY (¥) | Sep. 30, 2012JPY (¥) | Feb. 29, 2012JPY (¥)series | |
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Number of series of senior unsecured term loan facilities | series | 2 | 2 | |||||||||||||||||||||||
Number of series of senior notes issued through a U.S. public debt offering (in series) | series | 2 | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||||
2.875% senior notes due October 2026 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% | 2.875% | 2.875% | 2.875% | |||||||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||||||||||||
Debt instrument, principal amount | $ 300,000,000 | ||||||||||||||||||||||||
4.00% senior notes due October 2046 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | |||||||||||||||||||
Debt instrument, term | 30 years | ||||||||||||||||||||||||
Debt instrument, principal amount | $ 400,000,000 | ||||||||||||||||||||||||
Yen-denominated Loans | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 30,000 | ||||||||||||||||||||||||
Yen-denominated loan variable interest rate due September 2021 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 0.31% | 0.31% | 0.31% | 0.31% | |||||||||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 5,000 | 5,000 | |||||||||||||||||||||||
Debt instrument, interest rate terms | bears an interest rate per annum equal to the Tokyo interbank market rate (TIBOR), or alternate TIBOR, if applicable, plus the applicable TIBOR margin and has a five-year maturity. The applicable margin ranges between .20% and .60%, depending on the Parent Company's debt ratings as of the date of determination. | ||||||||||||||||||||||||
Yen-denominated loan variable interest rate due September 2023 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 0.46% | 0.46% | 0.46% | 0.46% | |||||||||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 25,000 | ¥ 25,000 | |||||||||||||||||||||||
Debt instrument, interest rate terms | bears an interest rate per annum equal to TIBOR, or alternate TIBOR, if applicable, plus the applicable TIBOR margin and has a seven-year maturity. The applicable margin ranges between .35% and .75%, depending on the Parent Company's debt ratings as of the date of determination. | ||||||||||||||||||||||||
2.40% senior notes due March 2020 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 2.40% | 2.40% | 2.40% | 2.40% | 2.40% | 2.40% | 2.40% | 2.40% | |||||||||||||||||
Debt instrument, term | 5 years | ||||||||||||||||||||||||
Debt instrument effective principal amount after cross currency swap | ¥ | ¥ 67,000 | ||||||||||||||||||||||||
Debt instrument, principal amount | $ 550,000,000 | $ 550,000,000 | $ 550,000,000 | $ 550,000,000 | |||||||||||||||||||||
Debt instrument, effective interest rate | 0.24% | 0.24% | |||||||||||||||||||||||
3.25% senior notes due March 2025 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | |||||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||||||||||||
Debt instrument effective principal amount after cross currency swap | ¥ | ¥ 55,000 | ||||||||||||||||||||||||
Debt instrument, principal amount | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | |||||||||||||||||||||
Debt instrument, effective interest rate | 0.82% | 0.82% | |||||||||||||||||||||||
3.625% senior notes due November 2024 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | |||||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||||||||||||
Debt instrument, redemption, description | These notes are redeemable at our option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the treasury rate plus 20 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date. | ||||||||||||||||||||||||
Debt instrument effective principal amount after cross currency swap | ¥ | ¥ 85,300 | ||||||||||||||||||||||||
Debt instrument, principal amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||||||||||||||||||||
Debt instrument, effective interest rate | 1.00% | 1.00% | |||||||||||||||||||||||
3.625% senior notes due June 2023 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | |||||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||||||||||||
Debt instrument, redemption, description | These notes are redeemable at our option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the treasury rate plus 20 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date. | ||||||||||||||||||||||||
Debt instrument effective principal amount after cross currency swap | ¥ | ¥ 69,800 | ||||||||||||||||||||||||
Debt instrument, principal amount | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | |||||||||||||||||||||
Debt instrument, effective interest rate | 1.50% | 1.50% | |||||||||||||||||||||||
5.50% subordinated notes due September 2052 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | |||||||||||||||
Debt instrument, term | 40 years | ||||||||||||||||||||||||
Debt instrument effective principal amount after cross currency swap | ¥ | ¥ 3,900 | ¥ 35,300 | |||||||||||||||||||||||
Debt instrument, principal amount | $ 500,000,000 | $ 50,000,000 | $ 450,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||||||||||||||||
Minimum prinicipal amount outstanding following partial redemption | $ 25,000,000 | ||||||||||||||||||||||||
Debt instrument, effective interest rate | 4.42% | 4.41% | 4.42% | 4.41% | |||||||||||||||||||||
Derivative, term of contract | 5 years | 5 years | |||||||||||||||||||||||
2.65% senior notes due February 2017 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | ||||||||||||||||
Debt instrument, term | 5 years | 5 years | |||||||||||||||||||||||
Debt instrument effective principal amount after cross currency swap | ¥ | ¥ 30,900 | ||||||||||||||||||||||||
Debt instrument, principal amount | $ 400,000,000 | $ 250,000,000 | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||||||||||||||||||||
Debt instrument, effective interest rate | 1.22% | 1.22% | |||||||||||||||||||||||
4.00% senior notes due February 2022 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | |||||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||||||||||||
Debt instrument effective principal amount after cross currency swap | ¥ | ¥ 27,000 | ||||||||||||||||||||||||
Debt instrument, principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |||||||||||||||||||||
Debt instrument, effective interest rate | 2.07% | 2.07% | |||||||||||||||||||||||
6.90% senior notes due December 2039 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Repayments of debt | $ 176,000,000 | ||||||||||||||||||||||||
Debt instrument, interest rate | 6.90% | 6.90% | 6.90% | 6.90% | 6.90% | 6.90% | |||||||||||||||||||
Debt instrument, term | 30 years | ||||||||||||||||||||||||
Debt instrument, principal amount | $ 400,000,000 | ||||||||||||||||||||||||
6.45% senior notes due August 2040 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Repayments of debt | $ 193,000,000 | ||||||||||||||||||||||||
Debt instrument, interest rate | 6.45% | 6.45% | 6.45% | 6.45% | 6.45% | 6.45% | |||||||||||||||||||
Debt instrument, term | 30 years | ||||||||||||||||||||||||
Debt instrument, principal amount | $ 450,000,000 | ||||||||||||||||||||||||
Senior Notes due 2039 and 2040 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Expense on extinguishment of debt | $ 137,000,000 | ||||||||||||||||||||||||
2.26% yen-denominated Uridashi notes paid September 2016 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Repayments of debt | ¥ | ¥ 8,000 | ||||||||||||||||||||||||
Debt instrument, interest rate | 2.26% | 2.26% | 2.26% | 2.26% | |||||||||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 8,000 | ||||||||||||||||||||||||
1.84% yen-denominated Samurai notes paid July 2016 | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Repayments of debt | ¥ | ¥ 15,800 | ||||||||||||||||||||||||
Debt instrument, interest rate | 1.84% | 1.84% | 1.84% | ||||||||||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 15,800 | ||||||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, principal amount | $ 1,000,000,000 | $ 750,000,000 | $ 700,000,000 | ||||||||||||||||||||||
Notes Payable | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, debt default, amount | $ 0 | $ 0 | 0 | $ 0 | |||||||||||||||||||||
Lines of credit | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt instrument, debt default, amount | 0 | $ 0 | 0 | $ 0 | |||||||||||||||||||||
$100 million dollar line of credit | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility term | 364 days | ||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 100,000,000 | $ 100,000,000 | 100,000,000 | ||||||||||||||||||||||
Line of credit facility, interest rate description | Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period. | ||||||||||||||||||||||||
Line of credit facility, amount outstanding | 0 | $ 0 | $ 0 | ||||||||||||||||||||||
100 billion yen line of credit | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility term | 3 years | ||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 100,000 | ||||||||||||||||||||||||
Line of credit facility, interest rate description | Borrowings bear interest at a rate per annum equal to TIBOR plus, at our option, either (a) the applicable TIBOR margin during the period from the closing date to the commitment termination date or (b) the applicable TIBOR margin during the term out period. The applicable margin ranges between .35% and .75% during the period from the closing date to the commitment termination date and .70% and 1.50% during the term out period, depending on the Parent Company’s debt ratings as of the date of determination. | ||||||||||||||||||||||||
Line of credit facility, amount outstanding | ¥ | 0 | ||||||||||||||||||||||||
55 billion yen line of credit | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility term | 5 years | ||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ | 55,000 | ||||||||||||||||||||||||
Line of credit facility, interest rate description | Borrowings bear interest at a rate per annum equal to, at our option, either (a) a eurocurrency rate determined by reference to the LIBOR for the interest period relevant to such borrowing adjusted for certain additional costs or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus ½ of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate and (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin. The applicable margin ranges between .79% and 1.275% for eurocurrency rate borrowings and 0.0% and .275% for base rate borrowings, depending on the Parent Company’s debt ratings as of the date of determination. | ||||||||||||||||||||||||
Line of credit facility, amount outstanding | ¥ | ¥ 0 | ||||||||||||||||||||||||
$50 million dollar line of credit | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 50,000,000 | 50,000,000 | $ 50,000,000 | ||||||||||||||||||||||
Line of credit facility, interest rate description | Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period. | ||||||||||||||||||||||||
Line of credit facility, amount outstanding | $ 0 | $ 0 | $ 0 | ||||||||||||||||||||||
Upper Limit | 100 billion yen line of credit | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility, commitment fee percentage | 0.50% | ||||||||||||||||||||||||
Upper Limit | 55 billion yen line of credit | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility, commitment fee percentage | 0.225% | ||||||||||||||||||||||||
Lower Limit | 100 billion yen line of credit | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility, commitment fee percentage | 0.30% | ||||||||||||||||||||||||
Lower Limit | 55 billion yen line of credit | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Line of credit facility, commitment fee percentage | 0.085% |
NOTES PAYABLE - Summary of Note
NOTES PAYABLE - Summary of Notes Payable (Detail) $ in Millions, ¥ in Billions | Dec. 31, 2016USD ($) | Dec. 31, 2016JPY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2016JPY (¥) | Jul. 31, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2015JPY (¥) | Mar. 31, 2015USD ($) | Nov. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Oct. 31, 2012USD ($) | Sep. 30, 2012USD ($) | Jul. 31, 2012USD ($) | Feb. 29, 2012USD ($) | Aug. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 5,360 | $ 4,971 | ||||||||||||||
2.65% senior notes due February 2017 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | 649 | $ 651 | ||||||||||||||
Debt instrument, principal amount | $ 400 | $ 250 | $ 400 | |||||||||||||
Debt instrument, interest rate | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | ||||||||||
2.40% senior notes due March 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 547 | $ 546 | ||||||||||||||
Debt instrument, principal amount | $ 550 | $ 550 | ||||||||||||||
Debt instrument, interest rate | 2.40% | 2.40% | 2.40% | 2.40% | 2.40% | |||||||||||
4.00% senior notes due February 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 348 | $ 348 | ||||||||||||||
Debt instrument, principal amount | $ 350 | $ 350 | ||||||||||||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | |||||||||||
3.625% senior notes due June 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 696 | $ 696 | ||||||||||||||
Debt instrument, principal amount | $ 700 | $ 700 | ||||||||||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | |||||||||||
3.625% senior notes due November 2024 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 745 | $ 744 | ||||||||||||||
Debt instrument, principal amount | $ 750 | $ 750 | ||||||||||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | |||||||||||
3.25% senior notes due March 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 445 | $ 445 | ||||||||||||||
Debt instrument, principal amount | $ 450 | $ 450 | ||||||||||||||
Debt instrument, interest rate | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | |||||||||||
2.875% senior notes due October 2026 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 298 | $ 0 | ||||||||||||||
Debt instrument, principal amount | $ 300 | |||||||||||||||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% | 2.875% | ||||||||||||
6.90% senior notes due December 2039 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 220 | $ 393 | ||||||||||||||
Debt instrument, principal amount | $ 400 | |||||||||||||||
Debt instrument, interest rate | 6.90% | 6.90% | 6.90% | 6.90% | ||||||||||||
6.45% senior notes due August 2040 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 254 | $ 445 | ||||||||||||||
Debt instrument, principal amount | $ 450 | |||||||||||||||
Debt instrument, interest rate | 6.45% | 6.45% | 6.45% | 6.45% | ||||||||||||
4.00% senior notes due October 2046 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 394 | $ 0 | ||||||||||||||
Debt instrument, principal amount | $ 400 | |||||||||||||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | 4.00% | ||||||||||||
5.50% subordinated notes due September 2052 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 486 | $ 486 | ||||||||||||||
Debt instrument, principal amount | $ 500 | $ 50 | $ 450 | |||||||||||||
Debt instrument, interest rate | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | ||||||||||
2.26% yen-denominated Uridashi notes paid September 2016 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 0 | $ 66 | ||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 8 | |||||||||||||||
Debt instrument, interest rate | 2.26% | 2.26% | 2.26% | 2.26% | ||||||||||||
1.84% yen-denominated Samurai notes paid July 2016 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | 0 | $ 131 | ||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 15.8 | |||||||||||||||
Debt instrument, interest rate | 1.84% | 1.84% | 1.84% | |||||||||||||
Yen-denominated loan variable interest rate due September 2021 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 43 | $ 0 | ||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 5 | ¥ 5 | ||||||||||||||
Debt instrument, interest rate | 0.31% | 0.31% | ||||||||||||||
Yen-denominated loan variable interest rate due September 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 214 | 0 | ||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 25 | ¥ 25 | ||||||||||||||
Debt instrument, interest rate | 0.46% | 0.46% | ||||||||||||||
Capitalized lease obligations | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Notes payable | $ 21 | $ 20 |
NOTES PAYABLE - Aggregate Contr
NOTES PAYABLE - Aggregate Contractual Maturities of Notes Payable (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
2,017 | $ 656 |
2,018 | 6 |
2,019 | 5 |
2,020 | 552 |
2,021 | 44 |
Thereafter | 4,146 |
Total | 5,409 |
Long-term debt | |
Debt Instrument [Line Items] | |
2,017 | 650 |
2,018 | 0 |
2,019 | 0 |
2,020 | 550 |
2,021 | 43 |
Thereafter | 4,145 |
Total | 5,388 |
Capitalized lease obligations | |
Debt Instrument [Line Items] | |
2,017 | 6 |
2,018 | 6 |
2,019 | 5 |
2,020 | 2 |
2,021 | 1 |
Thereafter | 1 |
Total | $ 21 |
NOTES PAYABLE Summary of Notes
NOTES PAYABLE Summary of Notes Payable (Details) $ in Millions, ¥ in Billions | Dec. 31, 2016USD ($) | Dec. 31, 2016JPY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2016JPY (¥) | Jul. 31, 2016 | Dec. 31, 2015JPY (¥) | Mar. 31, 2015USD ($) | Nov. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Oct. 31, 2012USD ($) | Sep. 30, 2012USD ($) | Jul. 31, 2012USD ($) | Feb. 29, 2012USD ($) | Aug. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
2.65% senior notes due February 2017 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | ||||||||||
Debt instrument, principal amount | $ 400 | $ 250 | $ 400 | ||||||||||||
2.40% senior notes due March 2020 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 2.40% | 2.40% | 2.40% | 2.40% | |||||||||||
Debt instrument, principal amount | $ 550 | $ 550 | |||||||||||||
4.00% senior notes due February 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | 4.00% | |||||||||||
Debt instrument, principal amount | $ 350 | $ 350 | |||||||||||||
3.625% senior notes due June 2023 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | |||||||||||
Debt instrument, principal amount | $ 700 | $ 700 | |||||||||||||
3.625% senior notes due November 2024 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | |||||||||||
Debt instrument, principal amount | $ 750 | $ 750 | |||||||||||||
3.25% senior notes due March 2025 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 3.25% | 3.25% | 3.25% | 3.25% | |||||||||||
Debt instrument, principal amount | $ 450 | $ 450 | |||||||||||||
2.875% senior notes due October 2026 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% | 2.875% | |||||||||||
Debt instrument, principal amount | $ 300 | ||||||||||||||
6.90% senior notes due December 2039 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 6.90% | 6.90% | 6.90% | ||||||||||||
Debt instrument, principal amount | $ 400 | ||||||||||||||
6.45% senior notes due August 2040 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 6.45% | 6.45% | 6.45% | ||||||||||||
Debt instrument, principal amount | $ 450 | ||||||||||||||
4.00% senior notes due October 2046 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | 4.00% | |||||||||||
Debt instrument, principal amount | $ 400 | ||||||||||||||
5.50% subordinated notes due September 2052 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | ||||||||||
Debt instrument, principal amount | $ 500 | $ 50 | $ 450 | ||||||||||||
2.26% yen-denominated Uridashi notes paid September 2016 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 2.26% | 2.26% | 2.26% | ||||||||||||
Debt instrument, principal amount | ¥ | ¥ 8 | ||||||||||||||
1.84% yen-denominated Samurai notes paid July 2016 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 1.84% | 1.84% | |||||||||||||
Debt instrument, principal amount | ¥ | ¥ 15.8 | ||||||||||||||
Yen-denominated loan variable interest rate due September 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 0.31% | 0.31% | |||||||||||||
Debt instrument, principal amount | ¥ | ¥ 5 | ¥ 5 | |||||||||||||
Yen-denominated loan variable interest rate due September 2023 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 0.46% | 0.46% | |||||||||||||
Debt instrument, principal amount | ¥ | ¥ 25 | ¥ 25 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Unrecognized tax benefit, deductibility highly certain, timing uncertain | $ 293 | $ 261 | |
Japan Tax Rate | 28.80% | 30.80% | 33.30% |
The expected U.S. tax rate | 35.00% | 35.00% | 35.00% |
Non-life operating loss carryforwards, limitations | only 35% of non-life operating losses can be offset against life insurance taxable income each year | ||
Unrecognized tax benefits, permanent uncertainties | $ 1 | ||
Unrecognized tax benefits, interest and penalties expense | 13 | $ 11 | $ 11 |
Unrecognized tax benefits, accrued interest and penalties | 26 | $ 22 | |
Capital loss carryforwards | $ 9 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) Applicable to Pretax Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Provision of Income Taxes [Line Items] | |||||||||||
Current | $ 884 | $ 1,288 | $ 1,079 | ||||||||
Deferred | 524 | 41 | 461 | ||||||||
Total income tax expense | $ 402 | $ 334 | $ 286 | $ 386 | $ 380 | $ 297 | $ 301 | $ 350 | 1,408 | 1,329 | 1,540 |
Aflac U.S. | |||||||||||
Reconciliation of Provision of Income Taxes [Line Items] | |||||||||||
Current | 234 | 225 | 84 | ||||||||
Deferred | 388 | (1) | 336 | ||||||||
Total income tax expense | 622 | 224 | 420 | ||||||||
Aflac Japan | |||||||||||
Reconciliation of Provision of Income Taxes [Line Items] | |||||||||||
Current | 650 | 1,063 | 995 | ||||||||
Deferred | 136 | 42 | 125 | ||||||||
Total income tax expense | $ 786 | $ 1,105 | $ 1,120 |
INCOME TAXES - Principal Reason
INCOME TAXES - Principal Reasons for Differences and Related Tax Effects where Income Tax Expense Varies from Amount Computed by Applying Expected United States Tax Rate of Thirty Five Percent to Pretax Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income taxes based on U.S. statutory rates | $ 1,424 | $ 1,352 | $ 1,572 | ||||||||
Utilization of foreign tax credit | (30) | (27) | (32) | ||||||||
Nondeductible expenses | 8 | 3 | 5 | ||||||||
Other, net | 6 | 1 | (5) | ||||||||
Total income tax expense | $ 402 | $ 334 | $ 286 | $ 386 | $ 380 | $ 297 | $ 301 | $ 350 | $ 1,408 | $ 1,329 | $ 1,540 |
INCOME TAXES - Total Income Tax
INCOME TAXES - Total Income Tax Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Statements of earnings | $ 402 | $ 334 | $ 286 | $ 386 | $ 380 | $ 297 | $ 301 | $ 350 | $ 1,408 | $ 1,329 | $ 1,540 |
Other comprehensive income (loss): | |||||||||||
Unrealized foreign currency translation gains (losses) during period | 70 | 16 | (419) | ||||||||
Unrealized gains (losses) on investment securities: | |||||||||||
Unrealized holding gains (losses) on investment securities during period | 962 | (931) | 2,237 | ||||||||
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings | 18 | 21 | 19 | ||||||||
Unrealized gains (losses) on derivatives during period | 1 | 0 | (3) | ||||||||
Pension liability adjustment during period | (16) | (7) | (31) | ||||||||
Total income tax expense (benefit) related to items of other comprehensive income (loss) | 1,035 | (901) | 1,803 | ||||||||
Additional paid-in capital (exercise of stock options) | (10) | 4 | (7) | ||||||||
Total income taxes | $ 2,433 | $ 432 | $ 3,336 |
INCOME TAXES - Income Tax Effec
INCOME TAXES - Income Tax Effects of Temporary Differences that Gave Rise to Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax liabilities: | ||
Deferred policy acquisition costs | $ 2,439 | $ 2,282 |
Unrealized gains on investment securities | 2,636 | 1,684 |
Premiums receivable | 111 | 139 |
Policy benefit reserves | 1,638 | 1,313 |
Depreciation | 70 | 61 |
Other | 0 | 0 |
Total deferred income tax liabilities | 6,894 | 5,479 |
Deferred income tax assets: | ||
Other basis differences in investment securities | 1,167 | 1,422 |
Unfunded retirement benefits | 13 | 15 |
Other accrued expenses | 11 | 7 |
Policy and contract claims | 146 | 113 |
Foreign currency loss on Japan branch | 185 | 208 |
Deferred compensation | 210 | 181 |
Capital loss carryforwards | 3 | 0 |
Other | 103 | 95 |
Total deferred income tax assets | 1,838 | 2,041 |
Net deferred income tax liability | 5,056 | 3,438 |
Current income tax liability | 331 | 902 |
Total income tax liability | $ 5,387 | $ 4,340 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $ 264 | $ 309 |
Additions for tax positions of prior years | 33 | 0 |
Reductions for tax positions of prior years | (3) | (45) |
Balance, end of year | $ 294 | $ 264 |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Detail) shares in Millions | 12 Months Ended | ||
Dec. 31, 2016Voteshares | Dec. 31, 2015shares | Dec. 31, 2014shares | |
Stockholders Equity Note [Line Items] | |||
Common stock, voting rights | are generally entitled to one vote per share until they have been held by the same beneficial owner for a continuous period of 48 months, at which time they become entitled to 10 votes per share. | ||
Remaining common stock available for purchase under share repurchase authorizations | shares | 26.8 | ||
Common Stock Votes Per Share Two | Vote | 1 | ||
Share repurchase program | |||
Stockholders Equity Note [Line Items] | |||
Stock acquired in open market, shares | shares | 21.6 | 21.2 | 19.7 |
Share Held For Continuous Forty Eight Month Period | |||
Stockholders Equity Note [Line Items] | |||
Voting rights, votes per share | Vote | 10 |
SHAREHOLDERS' EQUITY - Reconcil
SHAREHOLDERS' EQUITY - Reconciliation of Number of Shares of Common Stock (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common Stock Issued [Roll Forward] | |||
Balance, beginning of period | 669,723 | 668,132 | 667,046 |
Exercise of stock options and issuance of restricted shares | 1,526 | 1,591 | 1,086 |
Balance, end of period | 671,249 | 669,723 | 668,132 |
Treasury Stock [Roll Forward] | |||
Balance, beginning of period | 245,343 | 225,687 | 207,633 |
Exercise of stock options | (2,061) | (2,013) | (1,236) |
Balance, end of period | 265,439 | 245,343 | 225,687 |
Shares outstanding, end of period | 405,810 | 424,380 | 442,445 |
Treasury Stock | |||
Treasury Stock [Roll Forward] | |||
Stock acquired in open market, shares | 21,618 | 21,179 | 19,660 |
Other purchases | 330 | 247 | 157 |
Shares issued to AFL Stock Plan | (1,064) | (1,209) | (1,251) |
Exercise of stock options | (683) | (465) | (391) |
Other dispositions | (105) | (96) | (121) |
SHAREHOLDERS' EQUITY - Anti-Dil
SHAREHOLDERS' EQUITY - Anti-Dilutive Share-Based Awards Excluded from Calculation of Diluted Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |||
Anti-dilutive share-based awards | 911 | 1,862 | 1,215 |
SHAREHOLDERS' EQUITY - Weighted
SHAREHOLDERS' EQUITY - Weighted-Average Shares Used in Calculating Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |||
Weighted-average outstanding shares used for calculating basic EPS | 411,471 | 430,654 | 451,204 |
Dilutive effect of share-based awards | 2,450 | 2,518 | 2,796 |
Weighted-average outstanding shares used for calculating diluted EPS | 413,921 | 433,172 | 454,000 |
SHAREHOLDERS' EQUITY - Changes
SHAREHOLDERS' EQUITY - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | $ 625 | $ 1,979 | $ (563) |
Other comprehensive income loss before reclassifications net of tax | 2,037 | (1,314) | 2,578 |
Amounts reclassified from accumulated other comprehensive income net of tax | (32) | (40) | (36) |
Other comprehensive income (loss), net of income taxes | 2,005 | (1,354) | 2,542 |
Balance, end of period | 2,630 | 625 | 1,979 |
Unrealized foreign currency translation gains (losses) | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | (2,196) | (2,541) | (1,505) |
Other comprehensive income loss before reclassifications net of tax | 213 | 345 | (1,036) |
Amounts reclassified from accumulated other comprehensive income net of tax | 0 | 0 | 0 |
Other comprehensive income (loss), net of income taxes | 213 | 345 | (1,036) |
Balance, end of period | (1,983) | (2,196) | (2,541) |
Unrealized gains (losses) on investment securities | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | 2,986 | 4,672 | 1,035 |
Other comprehensive income loss before reclassifications net of tax | 1,854 | (1,646) | 3,672 |
Amounts reclassified from accumulated other comprehensive income net of tax | (35) | (40) | (35) |
Other comprehensive income (loss), net of income taxes | 1,819 | (1,686) | 3,637 |
Balance, end of period | 4,805 | 2,986 | 4,672 |
Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | (26) | (26) | (12) |
Other comprehensive income loss before reclassifications net of tax | 2 | 0 | (14) |
Amounts reclassified from accumulated other comprehensive income net of tax | 0 | 0 | 0 |
Other comprehensive income (loss), net of income taxes | 2 | 0 | (14) |
Balance, end of period | (24) | (26) | (26) |
Pension liability adjustment | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance, beginning of period | (139) | (126) | (81) |
Other comprehensive income loss before reclassifications net of tax | (32) | (13) | (44) |
Amounts reclassified from accumulated other comprehensive income net of tax | 3 | 0 | (1) |
Other comprehensive income (loss), net of income taxes | (29) | (13) | (45) |
Balance, end of period | $ (168) | $ (139) | $ (126) |
SHAREHOLDERS' EQUITY - Reclassi
SHAREHOLDERS' EQUITY - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Sales and redemptions | $ 215 | $ 303 | $ 215 | |||||||||
Other-than-temporary impairment losses realized | (83) | (153) | (31) | |||||||||
Total before tax | $ 1,153 | $ 963 | $ 834 | $ 1,117 | $ 1,110 | $ 864 | $ 874 | $ 1,013 | 4,067 | 3,862 | 4,491 | |
Income Tax (Expense) Benefit | $ (402) | $ (334) | $ (286) | $ (386) | $ (380) | $ (297) | $ (301) | $ (350) | (1,408) | (1,329) | (1,540) | |
Net of tax | $ 2,659 | $ 2,533 | $ 2,951 | |||||||||
The expected U.S. tax rate | 35.00% | 35.00% | 35.00% | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net of tax | $ 32 | $ 40 | $ 36 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on investment securities | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Sales and redemptions | 136 | 214 | 57 | |||||||||
Other-than-temporary impairment losses realized | (83) | (153) | (3) | |||||||||
Total before tax | 53 | 61 | 54 | |||||||||
Income Tax (Expense) Benefit | [1] | (18) | (21) | (19) | ||||||||
Net of tax | 35 | 40 | 35 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension liability adjustment | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Acquisition and operating expense, actuarial gains (losses) | [2] | (15) | (17) | (15) | ||||||||
Acquisition and operating expenses, prior service (cost) credit | [2] | 11 | 17 | 17 | ||||||||
Income Tax (Expense) Benefit | [1] | 1 | 0 | (1) | ||||||||
Net of tax | $ (3) | $ 0 | $ 1 | |||||||||
[1] | Based on 35% tax rate | |||||||||||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)plan$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation arrangement by share based payment award, options, grants in period, weighted average grant date fair value | $ / shares | $ 12.70 | $ 9.46 | $ 16.24 | |
Number of long-term incentive compensation plans | plan | 2 | |||
Closing common stock price | $ / shares | $ 69.60 | |||
Aggregate intrinsic value of stock options outstanding | $ 108 | |||
Options Outstanding - Weighted-Average Remaining Term (Yrs) | 4 years 9 months 18 days | |||
Aggregate intrinsic value of stock options exercisable | $ 93 | |||
Weighted-average remaining term of stock options exercisable (in years) | 3 years 3 months 18 days | |||
Stock Option Plan Effective Until February 2007 Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option plan, term (in years) | 10 years | |||
Second Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Stock option plan, vesting period | 3 years | |||
Shares available for future grants under the long-term incentive plan | shares | 8,800 | |||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost not yet recognized, restricted stock awards | $ 33 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 1,868 | 1,815 | 1,880 | 1,671 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | |||
Performance Based Vesting Condition Member | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost not yet recognized, restricted stock awards | $ 10 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 953 |
SHARE-BASED COMPENSATION - Expe
SHARE-BASED COMPENSATION - Expense Recognized in Connection with Share-Based Awards (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Earnings before income taxes | $ 1,153 | $ 963 | $ 834 | $ 1,117 | $ 1,110 | $ 864 | $ 874 | $ 1,013 | $ 4,067 | $ 3,862 | $ 4,491 |
Net earnings | $ 2,659 | $ 2,533 | $ 2,951 | ||||||||
Net earnings per share: | |||||||||||
Basic (in dollars per share) | $ 1.85 | $ 1.54 | $ 1.33 | $ 1.75 | $ 1.72 | $ 1.32 | $ 1.33 | $ 1.52 | $ 6.46 | $ 5.88 | $ 6.54 |
Diluted (in dollars per share) | $ 1.84 | $ 1.53 | $ 1.32 | $ 1.74 | $ 1.71 | $ 1.32 | $ 1.32 | $ 1.51 | $ 6.42 | $ 5.85 | $ 6.50 |
Share Based Compensation Expense | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Earnings from continuing operations | $ 68 | $ 39 | $ 41 | ||||||||
Earnings before income taxes | 68 | 39 | 41 | ||||||||
Net earnings | $ 46 | $ 27 | $ 28 | ||||||||
Net earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.11 | $ 0.06 | $ 0.06 | ||||||||
Diluted (in dollars per share) | $ 0.11 | $ 0.06 | $ 0.06 |
SHARE-BASED COMPENSATION - Assu
SHARE-BASED COMPENSATION - Assumptions Used in Valuing Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected term (years) | 6 years 4 months 24 days | 6 years 3 months 18 days | 6 years 3 months 18 days |
Expected volatility | 27.00% | 20.00% | 30.00% |
Annual forfeiture rate | 3.20% | 2.80% | 2.70% |
Risk-free interest rate | 2.20% | 2.00% | 2.80% |
Dividend yield | 2.90% | 2.70% | 2.30% |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Option Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Option Shares | |||
Beginning Balance | 7,918 | 9,307 | 9,980 |
Granted | 664 | 855 | 678 |
Canceled | (181) | (231) | (115) |
Exercised | (2,061) | (2,013) | (1,236) |
Ending Balance | 6,340 | 7,918 | 9,307 |
Weighted-Average Exercise Price Per Share | |||
Beginning Balance | $ 50.94 | $ 48.84 | $ 47.03 |
Granted | 61.39 | 61.47 | 61.81 |
Canceled | 55.63 | 55.70 | 52.01 |
Exercised | 48.91 | 45.15 | 41.04 |
Ending Balance | $ 52.56 | $ 50.94 | $ 48.84 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Shares Exercisable (Detail) - shares shares in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Shares exercisable, end of year | 4,493 | 6,085 | 7,497 |
SHARE-BASED COMPENSATION - S114
SHARE-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices Per Share - Lower Range | $ 14.99 | |||
Range of Exercise Prices Per Share - Upper Range | $ 72.42 | |||
Options Outstanding - Stock Option Shares | 6,340 | 7,918 | 9,307 | 9,980 |
Options Outstanding - Weighted-Average Remaining Term (Yrs) | 4 years 9 months 18 days | |||
Options Outstanding - Weighted-Average Exercise Price Per Share | $ 52.56 | $ 50.94 | $ 48.84 | $ 47.03 |
Options Exercisable - Stock Option Shares | 4,493 | 6,085 | 7,497 | |
Options Exercisable - Weighted-Average Exercise Price Per Share | $ 48.88 | |||
$14.99 - $47.06 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices Per Share - Lower Range | 14.99 | |||
Range of Exercise Prices Per Share - Upper Range | $ 47.06 | |||
Options Outstanding - Stock Option Shares | 1,639 | |||
Options Outstanding - Weighted-Average Remaining Term (Yrs) | 3 years | |||
Options Outstanding - Weighted-Average Exercise Price Per Share | $ 36.38 | |||
Options Exercisable - Stock Option Shares | 1,639 | |||
Options Exercisable - Weighted-Average Exercise Price Per Share | $ 36.38 | |||
$47.23 - $55.72 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices Per Share - Lower Range | 47.23 | |||
Range of Exercise Prices Per Share - Upper Range | $ 55.72 | |||
Options Outstanding - Stock Option Shares | 1,348 | |||
Options Outstanding - Weighted-Average Remaining Term (Yrs) | 3 years 9 months 18 days | |||
Options Outstanding - Weighted-Average Exercise Price Per Share | $ 51.11 | |||
Options Exercisable - Stock Option Shares | 1,348 | |||
Options Exercisable - Weighted-Average Exercise Price Per Share | $ 51.11 | |||
$56.24 - $61.45 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices Per Share - Lower Range | 56.24 | |||
Range of Exercise Prices Per Share - Upper Range | $ 61.45 | |||
Options Outstanding - Stock Option Shares | 1,706 | |||
Options Outstanding - Weighted-Average Remaining Term (Yrs) | 7 years | |||
Options Outstanding - Weighted-Average Exercise Price Per Share | $ 59.05 | |||
Options Exercisable - Stock Option Shares | 632 | |||
Options Exercisable - Weighted-Average Exercise Price Per Share | $ 57.92 | |||
$61.81 - $63.16 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices Per Share - Lower Range | 61.81 | |||
Range of Exercise Prices Per Share - Upper Range | $ 63.16 | |||
Options Outstanding - Stock Option Shares | 1,322 | |||
Options Outstanding - Weighted-Average Remaining Term (Yrs) | 4 years 1 month 6 days | |||
Options Outstanding - Weighted-Average Exercise Price Per Share | $ 62.10 | |||
Options Exercisable - Stock Option Shares | 802 | |||
Options Exercisable - Weighted-Average Exercise Price Per Share | $ 61.87 | |||
$63.34 - $72.42 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices Per Share - Lower Range | 63.34 | |||
Range of Exercise Prices Per Share - Upper Range | $ 72.42 | |||
Options Outstanding - Stock Option Shares | 325 | |||
Options Outstanding - Weighted-Average Remaining Term (Yrs) | 8 years 6 months | |||
Options Outstanding - Weighted-Average Exercise Price Per Share | $ 67.36 | |||
Options Exercisable - Stock Option Shares | 72 | |||
Options Exercisable - Weighted-Average Exercise Price Per Share | $ 67.50 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Stock Option Activity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total intrinsic value of options exercised | $ 41 | $ 36 | $ 25 |
Cash received from options exercised | 68 | 68 | 39 |
Tax benefit realized as a result of options exercised and restricted stock releases | $ 45 | $ 25 | $ 17 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Activity (Detail) - Restricted stock - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | |||
Beginning balance | 1,815 | 1,880 | 1,671 |
Granted | 878 | 638 | 584 |
Canceled | (76) | (145) | (27) |
Vested | (749) | (558) | (348) |
Ending Balance | 1,868 | 1,815 | 1,880 |
Weighted-Average Grant-Date Fair Value Per Share | |||
Beginning balance | $ 58.42 | $ 54.33 | $ 52.12 |
Granted | 61.68 | 61.51 | 62.12 |
Canceled | 60.65 | 57.52 | 52.66 |
Vested | 53.68 | 48.41 | 56.95 |
Ending Balance | $ 61.76 | $ 58.42 | $ 54.33 |
STATUTORY ACCOUNTING AND DIV117
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS - Additional Information (Detail) $ in Millions, ¥ in Billions | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016JPY (¥) | |
Statutory Accounting Practices [Line Items] | ||||
Statutory accounting practices, statutory capital and surplus required | $ 1,300 | |||
Net Derivatives Notional Amount | 43,927 | $ 22,127 | ||
Aflac | ||||
Statutory Accounting Practices [Line Items] | ||||
Capital and surplus, statutory accounting practices of the state or country basis | 11,221 | 11,298 | ||
Net Income, Nebraska state basis | 2,800 | 2,300 | $ 2,400 | |
Amount available for dividend distribution without prior approval from regulatory agency | 2,800 | |||
Dividends declared | 2,000 | |||
Aflac Japan | ||||
Statutory Accounting Practices [Line Items] | ||||
Capital and surplus, statutory accounting practices of the state or country basis | 5,600 | $ 4,700 | ||
Twenty Sixteen Profit Repatriation | ||||
Statutory Accounting Practices [Line Items] | ||||
Intercompany transfer profit repatriation, reduction in amount received | $ 64 | |||
Foreign currency forwards and options | Twenty Sixteen Profit Repatriation | ||||
Statutory Accounting Practices [Line Items] | ||||
Net Derivatives Notional Amount | ¥ | ¥ 114 | |||
Foreign currency forwards and options | Future profit repatriation | ||||
Statutory Accounting Practices [Line Items] | ||||
Net Derivatives Notional Amount | ¥ | ¥ 122.6 |
STATUTORY ACCOUNTING AND DIV118
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS - Reconciliation of Capital and Surplus Between Sap and Practices Permitted by the State of Nebraska (Detail) - Aflac - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Accounting Practices [Line Items] | ||
Capital and surplus, Nebraska state basis | $ 11,221 | $ 11,298 |
Capital and surplus, NAIC basis | 10,417 | 10,553 |
Lease Deposits | ||
Statutory Accounting Practices [Line Items] | ||
State permitted practice amount | (40) | (38) |
Reinsurance | ||
Statutory Accounting Practices [Line Items] | ||
State permitted practice amount | $ (764) | $ (707) |
STATUTORY ACCOUNTING AND DIV119
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS - Profits Repatriated by Aflac Japan to Aflac U.S. (Detail) $ in Millions, ¥ in Billions | 12 Months Ended | |||||
Dec. 31, 2016USD ($) | Dec. 31, 2016JPY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2015JPY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2014JPY (¥) | |
Insurance [Abstract] | ||||||
Profit repatriation | $ 1,286 | ¥ 138.5 | $ 2,139 | ¥ 259 | $ 1,704 | ¥ 181.4 |
BENEFIT PLANS - Additional Info
BENEFIT PLANS - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Amount of years left to meet rule of 80 for active employees to be eligible for postretirement medical benefits | 5 years | ||||
Amount of years left to meet 15 year service requirement for active employees age 55 or older to be eligible for postretirement medical benefits | 5 years | ||||
Transition obligation | $ 0 | ||||
Matching 401(k) plan contributions included in acquisition and operating expenses | $ 11 | $ 9 | $ 7 | ||
Percentage of matching contributions by the Company to employee's contributions to 401(k) plan | 50.00% | 50.00% | 50.00% | ||
Shares of employer-issued common stock held for plan participants by plan trustee (in millions) | 1 | ||||
Non-Elective Defined Contribution Percentage of Employee Compensation | 2.00% | ||||
Lower Limit | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Health care plan, retirement age for eligibility, (in years) | 55 years | ||||
Health care plan, number of years of service for eligibility | 15 years | ||||
Health care plan, retirement age and years of service combined years for eligibility | 80 years | ||||
Upper Limit | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Percentage of matching contributions by the Company to employee's contributions to 401(k) plan | 6.00% | 6.00% | 6.00% | ||
Japan Pension Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discount rate - benefit obligations | 1.25% | 1.75% | 1.75% | ||
AA corporate bonds average duration | 20 years | ||||
Defined benefit plan, future amortization of actuarial losses | $ 2 | ||||
Defined benefit plan, expected contributions to the plan in the following year | $ 21 | ||||
U.S. Pension Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discount rate - benefit obligations | 4.25% | 4.50% | 4.50% | ||
AA corporate bonds average duration | 17 years | ||||
Defined benefit plan, future amortization of actuarial losses | $ 14 | ||||
Defined benefit plan, expected contributions to the plan in the following year | $ 10 | ||||
Other Postretirement Benefit Plans, Defined Benefit | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Amendments | $ (51) | ||||
Plan amendment remaining amortization period | 3 years | ||||
Discount rate - benefit obligations | 4.75% | 4.25% | 4.50% | 4.50% | |
Prior service cost (credit) | $ (51) | ||||
Defined benefit plan, future amortization of actuarial losses | $ 1 | ||||
Associate Stock Bonus Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Deferred policy acquisition costs, amount attributable to stock bonus plan | $ 31 | $ 34 | $ 36 |
BENEFIT PLANS - Reconciliation
BENEFIT PLANS - Reconciliation of Funded Status of Basic Employee Defined-Benefit Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Japan Pension Plan | ||||
Projected benefit obligation: | ||||
Benefit obligation, beginning of year | $ 276 | $ 267 | ||
Service cost | 16 | 15 | $ 15 | |
Interest cost | 9 | 1 | 9 | |
Actuarial (gain) loss | 29 | 0 | ||
Benefits and expenses paid | (8) | (7) | ||
Effect of foreign exchange rate changes | 7 | 0 | ||
Benefit obligation, end of year | 329 | 276 | 267 | |
Plan assets: | ||||
Fair value of plan assets, beginning of year | 198 | 183 | ||
Actual return on plan assets | 9 | 1 | ||
Employer contributions | 25 | 21 | ||
Benefits and expenses paid | (8) | (7) | ||
Effect of foreign exchange rate changes | 5 | 0 | ||
Fair value of plan assets, end of year | 229 | 198 | 183 | |
Funded status of the plans | [1] | (100) | (78) | |
Amounts recognized in accumulated other comprehensive income: | ||||
Net actuarial (gain) loss | 67 | 42 | ||
Prior service (credit) cost | (2) | (2) | ||
Total included in accumulated other comprehensive income | 65 | 40 | ||
Accumulated benefit obligation | 288 | 244 | ||
U.S. Pension Plan | ||||
Projected benefit obligation: | ||||
Benefit obligation, beginning of year | 735 | 717 | ||
Service cost | 23 | 23 | 20 | |
Interest cost | 29 | 18 | 38 | |
Actuarial (gain) loss | 29 | (6) | ||
Benefits and expenses paid | (18) | (17) | ||
Effect of foreign exchange rate changes | 0 | 0 | ||
Benefit obligation, end of year | 798 | 735 | 717 | |
Plan assets: | ||||
Fair value of plan assets, beginning of year | 336 | 341 | ||
Actual return on plan assets | 24 | (6) | ||
Employer contributions | 17 | 18 | ||
Benefits and expenses paid | (18) | (17) | ||
Effect of foreign exchange rate changes | 0 | 0 | ||
Fair value of plan assets, end of year | 359 | 336 | 341 | |
Funded status of the plans | [1] | (439) | (399) | |
Amounts recognized in accumulated other comprehensive income: | ||||
Net actuarial (gain) loss | 189 | 175 | ||
Prior service (credit) cost | (4) | (4) | ||
Total included in accumulated other comprehensive income | 185 | 171 | ||
Accumulated benefit obligation | 670 | 621 | ||
Other Postretirement Benefit Plans, Defined Benefit | ||||
Projected benefit obligation: | ||||
Benefit obligation, beginning of year | 40 | 44 | ||
Service cost | 1 | 1 | 1 | |
Interest cost | 2 | 2 | 2 | |
Actuarial (gain) loss | (4) | (5) | ||
Benefits and expenses paid | (2) | (2) | ||
Effect of foreign exchange rate changes | 0 | 0 | ||
Benefit obligation, end of year | 37 | 40 | 44 | |
Plan assets: | ||||
Fair value of plan assets, beginning of year | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 2 | 2 | ||
Benefits and expenses paid | (2) | (2) | ||
Effect of foreign exchange rate changes | 0 | 0 | ||
Fair value of plan assets, end of year | 0 | 0 | $ 0 | |
Funded status of the plans | [1] | (37) | (40) | |
Amounts recognized in accumulated other comprehensive income: | ||||
Net actuarial (gain) loss | 7 | 12 | ||
Prior service (credit) cost | 0 | (11) | ||
Total included in accumulated other comprehensive income | $ 7 | $ 1 | ||
[1] | Recognized in other liabilities in the consolidated balance sheets |
BENEFIT PLANS - Weighted-Averag
BENEFIT PLANS - Weighted-Average Actuarial Assumptions (Detail) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2013 | ||
Japan Pension Plan | |||||
Weighted-average actuarial assumptions: | |||||
Discount rate - net periodic benefit cost | 1.75% | 1.75% | 2.25% | ||
Discount rate - benefit obligations | 1.25% | 1.75% | 1.75% | ||
Expected long-term return on plan assets | 2.00% | 2.00% | 2.00% | ||
U.S. Pension Plan | |||||
Weighted-average actuarial assumptions: | |||||
Discount rate - net periodic benefit cost | 4.50% | 4.50% | 4.75% | ||
Discount rate - benefit obligations | 4.25% | 4.50% | 4.50% | ||
Expected long-term return on plan assets | 7.00% | 7.25% | 7.50% | ||
Rate of compensation increase | 4.00% | 4.00% | 4.00% | ||
Other Postretirement Benefit Plans, Defined Benefit | |||||
Weighted-average actuarial assumptions: | |||||
Discount rate - net periodic benefit cost | 4.50% | 4.50% | 4.75% | ||
Discount rate - benefit obligations | 4.25% | 4.50% | 4.50% | 4.75% | |
Health care cost trend rates | [1] | 5.20% | 5.30% | 5.70% | |
Defined benefit plan, ultimate health care cost trend rate | 4.50% | 4.50% | 4.60% | ||
Defined benefit plan number of years that rate reaches ultimate trend rate | 74 years | 78 years | 78 years | ||
[1] | For the years 2016, 2015 and 2014, the health care cost trend rates are expected to trend down to 4.5% in 74 years, 4.5% in 78 years, and 4.6% in 78 years, respectively. |
BENEFIT PLANS - One-Percentage
BENEFIT PLANS - One-Percentage Point Increase and Decrease in Assumed Health Care Cost Trend Rates (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Increase in total service and interest costs | $ 0 |
Increase in postretirement benefit obligation | 2 |
Decrease in total service and interest costs | 0 |
Decrease in postretirement benefit obligation | $ 2 |
BENEFIT PLANS - Net Periodic (B
BENEFIT PLANS - Net Periodic (Benefit) Cost Included in Acquisition and Operating Expenses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Japan Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 16 | $ 15 | $ 15 |
Interest cost | 9 | 1 | 9 |
Expected return on plan assets | (4) | (4) | (4) |
Amortization of net actuarial loss | 1 | 1 | 1 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Net periodic (benefit) cost | 22 | 13 | 21 |
U.S. Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 23 | 23 | 20 |
Interest cost | 29 | 18 | 38 |
Expected return on plan assets | (23) | (22) | (20) |
Amortization of net actuarial loss | 13 | 14 | 11 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Net periodic (benefit) cost | 42 | 33 | 49 |
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 1 | 1 | 1 |
Interest cost | 2 | 2 | 2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss | 1 | 2 | 3 |
Amortization of prior service cost (credit) | (11) | (17) | (17) |
Net periodic (benefit) cost | $ (7) | $ (12) | $ (11) |
BENEFIT PLANS - Summary of Amou
BENEFIT PLANS - Summary of Amounts Recognized in Other Comprehensive Loss (Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Japan Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss (gain) | $ 26 | $ 3 | $ 12 | |
Amortization of net actuarial loss | (1) | (1) | (1) | |
Amortization of prior service cost | 0 | 0 | 0 | |
Total | 25 | 2 | 11 | |
U.S. Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss (gain) | 27 | 22 | 67 | |
Amortization of net actuarial loss | (13) | (14) | (11) | |
Amortization of prior service cost | 0 | 0 | 0 | |
Total | 14 | 8 | 56 | |
Other Postretirement Benefit Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial loss (gain) | (4) | (5) | (3) | |
Amortization of net actuarial loss | (1) | (2) | (3) | |
Prior service cost (credit) | $ (51) | |||
Amortization of prior service cost | 11 | 17 | 17 | |
Total | $ 6 | $ 10 | $ 11 |
BENEFIT PLANS - Expected Benefi
BENEFIT PLANS - Expected Benefit Payments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Japan Pension Plan | |
Schedule of Postemployment Expected Future Benefit Payments [Line Items] | |
2,017 | $ 13 |
2,018 | 8 |
2,019 | 9 |
2,020 | 10 |
2,021 | 10 |
2022-2026 | 74 |
U.S. Pension Plan | |
Schedule of Postemployment Expected Future Benefit Payments [Line Items] | |
2,017 | 22 |
2,018 | 23 |
2,019 | 24 |
2,020 | 25 |
2,021 | 27 |
2022-2026 | 180 |
Other Postretirement Benefit Plans, Defined Benefit | |
Schedule of Postemployment Expected Future Benefit Payments [Line Items] | |
2,017 | 2 |
2,018 | 2 |
2,019 | 3 |
2,020 | 3 |
2,021 | 3 |
2022-2026 | $ 18 |
BENEFIT PLANS - Asset Allocatio
BENEFIT PLANS - Asset Allocation Targets (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Japan Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation targets | 100.00% |
U.S. Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation targets | 100.00% |
Domestic equity securities | Japan Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation targets | 11.00% |
Domestic equity securities | U.S. Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation targets | 40.00% |
International equity securities | Japan Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation targets | 15.00% |
International equity securities | U.S. Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation targets | 20.00% |
Fixed income funds | Japan Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation targets | 59.00% |
Fixed income funds | U.S. Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation targets | 40.00% |
Other Investments | Japan Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation targets | 15.00% |
Other Investments | U.S. Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation targets | 0.00% |
BENEFIT PLANS - Fair Value Hier
BENEFIT PLANS - Fair Value Hierarchy Levels of Funded Pension Plans' Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Japan Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 229 | $ 198 | $ 183 |
U.S. Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 359 | 336 | $ 341 |
U.S. Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 359 | 336 | |
Japanese equity securities | Japan Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 28 | 22 | |
International equity securities | Japan Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 40 | 33 | |
Japanese bonds | Japan Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 79 | 71 | |
International bonds | Japan Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 55 | 48 | |
Insurance contracts | Japan Pension Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 27 | 23 | |
Cash and cash equivalents | Japan Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 1 | |
Cash and cash equivalents | U.S. Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1 | 1 | |
U S large cap equity securities | U.S. Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 104 | 94 | |
U S mid cap equity securities | U.S. Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 19 | 16 | |
Real estate equity funds | U.S. Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 10 | 10 | |
International fund | U.S. Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 85 | 77 | |
Fixed income funds | U.S. Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 136 | 134 | |
Aflac Incorporated common stock | U.S. Pension Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 4 | $ 4 |
COMMITMENTS AND CONTINGENT L129
COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Detail) ¥ in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)agreements | Dec. 31, 2016JPY (¥) | |
Commitments and Contingencies Disclosure [Line Items] | ||
Number of operating service agreements, technology and consulting | 2 | |
Number of operating service agreements, management consulting and technology | 1 | |
Middle Market Loan Commitment | $ | $ 779 | |
Commercial mortgage loan commitments | $ | $ 19 | |
Number of operating service agreements, information technology and data services | 2 | |
Operating Leases, lease terms | expire in various years through 2026 | expire in various years through 2026 |
Mainframe and server computer operations and support | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Outsourcing agreements, remaining term | 4 years | 4 years |
Outsourcing agreements, aggregate remaining cost | $ 315 | ¥ 36,700 |
Technology and consulting company application maintenance and development services | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Outsourcing agreements, remaining term | 5 years | 5 years |
Outsourcing agreements, aggregate remaining cost | $ 102 | ¥ 11,900 |
Management consulting and technology services company application maintenance and development services | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Outsourcing agreements, remaining term | 5 years | 5 years |
Outsourcing agreements, aggregate remaining cost | $ 132 | ¥ 15,400 |
Information technology and data services company application maintenance and development services first agreement | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Outsourcing agreements, remaining term | 3 years | 3 years |
Outsourcing agreements, aggregate remaining cost | $ 53 | ¥ 6,100 |
Information technology and data services company application maintenance and development services second agreement | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Outsourcing agreements, remaining term | 1 year | 1 year |
Outsourcing agreements, aggregate remaining cost | $ 6 | ¥ 740 |
COMMITMENTS AND CONTINGENT L130
COMMITMENTS AND CONTINGENT LIABILITIES - Future Minimum Lease Payments due under Non-Cancelable Operating Leases (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 62 |
2,018 | 41 |
2,019 | 18 |
2,020 | 13 |
2,021 | 11 |
Thereafter | 0 |
Total future minimum lease payments | $ 145 |
Unaudited Consolidated Quart131
Unaudited Consolidated Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, [Line Items] | |||||||||||
Net premium income | $ 4,778 | $ 5,022 | $ 4,823 | $ 4,602 | $ 4,394 | $ 4,380 | $ 4,364 | $ 4,432 | $ 19,225 | $ 17,570 | $ 19,072 |
Net investment income | 813 | 842 | 822 | 801 | 792 | 784 | 777 | 782 | 3,278 | 3,135 | 3,319 |
Realized investment gains (losses) | 137 | (146) | (187) | 73 | 114 | (114) | 127 | 13 | |||
Other income (loss) | 227 | (2) | (21) | (25) | 19 | (10) | 19 | (1) | 179 | 27 | 122 |
Total revenues | 5,955 | 5,716 | 5,437 | 5,451 | 5,319 | 5,040 | 5,287 | 5,226 | 22,559 | 20,872 | 22,728 |
Total benefits and expenses | 4,802 | 4,753 | 4,603 | 4,334 | 4,209 | 4,176 | 4,413 | 4,213 | 18,492 | 17,010 | 18,237 |
Earnings before income taxes | 1,153 | 963 | 834 | 1,117 | 1,110 | 864 | 874 | 1,013 | 4,067 | 3,862 | 4,491 |
Total income tax expense | 402 | 334 | 286 | 386 | 380 | 297 | 301 | 350 | $ 1,408 | $ 1,329 | $ 1,540 |
Net earnings | $ 751 | $ 629 | $ 548 | $ 731 | $ 730 | $ 567 | $ 573 | $ 663 | |||
Net earnings per basic share | $ 1.85 | $ 1.54 | $ 1.33 | $ 1.75 | $ 1.72 | $ 1.32 | $ 1.33 | $ 1.52 | $ 6.46 | $ 5.88 | $ 6.54 |
Net earnings per diluted share | $ 1.84 | $ 1.53 | $ 1.32 | $ 1.74 | $ 1.71 | $ 1.32 | $ 1.32 | $ 1.51 | $ 6.42 | $ 5.85 | $ 6.50 |
Parent Company | |||||||||||
Condensed Income Statements, [Line Items] | |||||||||||
Net investment income | $ 18 | $ 22 | $ 13 | ||||||||
Other income (loss) | 0 | 0 | (11) | ||||||||
Total revenues | 2,233 | 2,714 | 2,122 | ||||||||
Earnings before income taxes | 1,743 | 2,162 | 1,791 | ||||||||
Total income tax expense | $ (102) | $ (80) | $ 121 | ||||||||
Yen Denominated Loan Three Point Zero Zero Percent Due August Twenty Fifteen [Member] | Parent Company | |||||||||||
Condensed Income Statements, [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.46% | 0.46% |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Detail) - .932% senior notes due January 2027 - Subsequent events ¥ in Billions | 1 Months Ended |
Jan. 31, 2017JPY (¥) | |
Subsequent Event [Line Items] | |
Debt instrument, principal amount | ¥ 60 |
Debt instrument, interest rate | 0.932% |
Debt instrument, term | 10 years |
Schedule II - Aflac Incorporate
Schedule II - Aflac Incorporated (Parent Only) - Condensed Statement of Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Condensed Income Statements, [Line Items] | ||||||||||||||
Net investment income | $ 813 | $ 842 | $ 822 | $ 801 | $ 792 | $ 784 | $ 777 | $ 782 | $ 3,278 | $ 3,135 | $ 3,319 | |||
Realized investment gains (losses) | (123) | 140 | 215 | |||||||||||
Other income (loss) | 227 | (2) | (21) | (25) | 19 | (10) | 19 | (1) | 179 | 27 | 122 | |||
Total revenues | 5,955 | 5,716 | 5,437 | 5,451 | 5,319 | 5,040 | 5,287 | 5,226 | 22,559 | 20,872 | 22,728 | |||
Interest expense | 268 | 289 | 317 | |||||||||||
Other operating expenses | 344 | [1] | 392 | [1] | 178 | |||||||||
Earnings before income taxes | 1,153 | 963 | 834 | 1,117 | 1,110 | 864 | 874 | 1,013 | 4,067 | 3,862 | 4,491 | |||
Current tax expense (benefit) | 884 | 1,288 | 1,079 | |||||||||||
Deferred tax expense (benefit) | 524 | 41 | 461 | |||||||||||
Total income tax expense | $ 402 | $ 334 | $ 286 | $ 386 | $ 380 | $ 297 | $ 301 | $ 350 | 1,408 | 1,329 | 1,540 | |||
Net earnings | 2,659 | 2,533 | 2,951 | |||||||||||
Parent Company | ||||||||||||||
Condensed Income Statements, [Line Items] | ||||||||||||||
Dividends from subsidiaries | [2] | 2,020 | 2,393 | 1,483 | ||||||||||
Management and service fees from subsidiaries | [2] | 265 | 260 | 272 | ||||||||||
Net investment income | 18 | 22 | 13 | |||||||||||
Interest from subsidiaries | [2] | 5 | 6 | 6 | ||||||||||
Realized investment gains (losses) | 84 | 86 | 45 | |||||||||||
Change in fair value on the cross-currency interest rate swaps | (159) | (53) | 314 | |||||||||||
Other income (loss) | 0 | 0 | (11) | |||||||||||
Total revenues | 2,233 | 2,714 | 2,122 | |||||||||||
Interest expense | 213 | 231 | 243 | |||||||||||
Other operating expenses | 277 | [3] | 321 | [3] | 88 | |||||||||
Total operating expenses | 490 | 552 | 331 | |||||||||||
Earnings before income taxes | 1,743 | 2,162 | 1,791 | |||||||||||
Current tax expense (benefit) | 3 | 2 | 1 | |||||||||||
Deferred tax expense (benefit) | (105) | (82) | 120 | |||||||||||
Total income tax expense | (102) | (80) | 121 | |||||||||||
Earnings before equity in undistributed earnings of subsidiaries | 1,845 | 2,242 | 1,670 | |||||||||||
Equity in undistributed earnings of subsidiaries | [2] | 814 | 291 | 1,281 | ||||||||||
Net earnings | 2,659 | 2,533 | $ 2,951 | |||||||||||
Senior Notes due 2039 and 2040 | ||||||||||||||
Condensed Income Statements, [Line Items] | ||||||||||||||
Expense on extinguishment of debt | $ 137 | |||||||||||||
8.50% senior notes due May 2019 | ||||||||||||||
Condensed Income Statements, [Line Items] | ||||||||||||||
Expense on extinguishment of debt | $ 230 | |||||||||||||
[1] | Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt | |||||||||||||
[2] | Eliminated in consolidation | |||||||||||||
[3] | Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt |
Schedule II - Aflac Incorpor134
Schedule II - Aflac Incorporated (Parent Only) - Condensed Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net earnings | $ 2,659 | $ 2,533 | $ 2,951 |
Foreign currency translation adjustments: | |||
Unrealized foreign currency translation gains (losses) during period - parent only | 283 | 360 | (1,455) |
Unrealized gains (losses) on investment securities: | |||
Unrealized holding gains (losses) on investment securities during period - parent only | 2,852 | (2,534) | 5,947 |
Pension liability adjustment during period | (45) | (20) | (76) |
Total other comprehensive income (loss) before income taxes | 3,040 | (2,255) | 4,345 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 1,035 | (901) | 1,803 |
Other comprehensive income (loss), net of income taxes | 2,005 | (1,354) | 2,542 |
Total comprehensive income (loss) | 4,664 | 1,179 | 5,493 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net earnings | 2,659 | 2,533 | 2,951 |
Foreign currency translation adjustments: | |||
Unrealized foreign currency translation gains (losses) during period - parent only | 0 | 3 | 39 |
Equity in unrealized foreign currency translation gains (losses) of subsidiaries during period | 283 | 357 | (1,494) |
Unrealized gains (losses) on investment securities: | |||
Unrealized holding gains (losses) on investment securities during period - parent only | 2 | (8) | 9 |
Equity in unrealized holding gains (losses) on investment securities held by subsidiaries during period | 2,850 | (2,526) | 5,938 |
Equity in reclassification adjustment for realized (gains) losses of subsidiaries included in net earnings | (53) | (61) | (54) |
Unrealized gains (losses) on derivatives during period | 3 | 0 | (17) |
Pension liability adjustment during period | (45) | (20) | (76) |
Total other comprehensive income (loss) before income taxes | 3,040 | (2,255) | 4,345 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 1,035 | (901) | 1,803 |
Other comprehensive income (loss), net of income taxes | 2,005 | (1,354) | 2,542 |
Total comprehensive income (loss) | $ 4,664 | $ 1,179 | $ 5,493 |
Schedule II - Aflac Incorpor135
Schedule II - Aflac Incorporated (Parent Only) - Condensed Balance Sheet (Detail 1) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Investments and cash: | ||||||
Other investments | $ 1,450 | [1] | $ 294 | |||
Cash and cash equivalents | 4,859 | 4,350 | $ 4,658 | $ 2,543 | ||
Total investments and cash | 116,361 | 105,897 | ||||
Other assets | [2] | 2,609 | 1,948 | |||
Total assets | 129,819 | 118,256 | 119,727 | |||
Liabilities: | ||||||
Notes payable | 5,339 | 4,951 | ||||
Other liabilities | [3] | 4,338 | 2,665 | |||
Total liabilities | 109,337 | 100,548 | ||||
Shareholders' equity: | ||||||
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2016 and 2015; issued 671,249 shares in 2016 and 669,723 shares in 2015 | 67 | 67 | ||||
Additional paid-in capital | 1,976 | 1,828 | ||||
Retained earnings | 25,981 | 24,007 | ||||
Accumulated other comprehensive income (loss): | ||||||
Unrealized foreign currency translation gains (losses) | (1,983) | (2,196) | ||||
Unrealized gains (losses) on investment securities | 4,805 | 2,986 | ||||
Unrealized gains (losses) on derivatives | (24) | (26) | ||||
Pension liability adjustment | (168) | (139) | ||||
Treasury stock, at average cost | (10,172) | (8,819) | ||||
Total shareholders' equity | 20,482 | 17,708 | 18,347 | |||
Total liabilities and shareholders' equity | 129,819 | 118,256 | ||||
Parent Company | ||||||
Investments and cash: | ||||||
Fixed maturity securities available for sale, at fair value (amortized cost $483 in 2016 and $481 in 2015) | 496 | 493 | ||||
Investments in subsidiaries | [4] | 23,353 | 20,500 | |||
Other investments | 3 | 9 | ||||
Cash and cash equivalents | 2,037 | 1,721 | $ 1,638 | $ 1,081 | ||
Total investments and cash | 25,889 | 22,723 | ||||
Due from subsidiaries | [4] | 75 | 113 | |||
Income taxes receivable | 103 | 0 | ||||
Other assets | 497 | 542 | ||||
Total assets | 26,564 | 23,378 | ||||
Liabilities: | ||||||
Income taxes | 0 | 8 | ||||
Employee benefit plans | 293 | 274 | ||||
Notes payable | 5,339 | 4,968 | ||||
Other liabilities | 450 | 420 | ||||
Total liabilities | 6,082 | 5,670 | ||||
Shareholders' equity: | ||||||
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2016 and 2015; issued 671,249 shares in 2016 and 669,723 shares in 2015 | 67 | 67 | ||||
Additional paid-in capital | 1,976 | 1,828 | ||||
Retained earnings | 25,981 | 24,007 | ||||
Accumulated other comprehensive income (loss): | ||||||
Unrealized foreign currency translation gains (losses) | (1,983) | (2,196) | ||||
Unrealized gains (losses) on investment securities | 4,805 | 2,986 | ||||
Unrealized gains (losses) on derivatives | (24) | (26) | ||||
Pension liability adjustment | (168) | (139) | ||||
Treasury stock, at average cost | (10,172) | (8,819) | ||||
Total shareholders' equity | 20,482 | 17,708 | ||||
Total liabilities and shareholders' equity | $ 26,564 | $ 23,378 | ||||
[1] | Includes $819 in 2016 of loan receivables from consolidated variable interest entities | |||||
[2] | Includes $127 in 2016 and $102 in 2015 of derivatives from consolidated variable interest entities | |||||
[3] | Includes $146 in 2016 and $293 in 2015 of derivatives from consolidated variable interest entities | |||||
[4] | Eliminated in consolidation |
Schedule II - Aflac Incorpor136
Schedule II - Aflac Incorporated (Parent Only) - Condensed Balance Sheet (Detail 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | ||
Common stock, shares authorized (in shares) | 1,900,000 | 1,900,000 | ||
Common stock, shares issued (in shares) | 671,249 | 669,723 | 668,132 | 667,046 |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Securities available for sale, fixed maturities, amortized cost | $ 483 | $ 481 | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | ||
Common stock, shares authorized (in shares) | 1,900,000 | 1,900,000 | ||
Common stock, shares issued (in shares) | 671,249 | 669,723 |
Schedule II - Aflac Incorpor137
Schedule II - Aflac Incorporated (Parent Only) - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Cash flows from operating activities: | ||||||
Net earnings | $ 2,659 | $ 2,533 | $ 2,951 | |||
Adjustments to reconcile net earnings to net cash provided from operating activities: | ||||||
Change in income tax liabilities | (93) | (36) | 123 | |||
Other, net | 231 | [1] | 989 | [1] | 309 | |
Net cash provided (used) by operating activities | 5,987 | 6,776 | 6,550 | |||
Cash flows from investing activities: | ||||||
Fixed maturity securities sold | 5,157 | 3,224 | 4,178 | |||
Fixed maturity securities purchased | (10,890) | (6,507) | (10,978) | |||
Other investments sold (purchased) | (1,118) | (70) | 272 | |||
Settlement of derivatives | 1,252 | (2,119) | (636) | |||
Payments for (Proceeds from) Other Investing Activities | (76) | (86) | 30 | |||
Net cash provided (used) by investing activities | (3,855) | (4,897) | (4,241) | |||
Cash flows from financing activities: | ||||||
Purchases of treasury stock | (1,422) | (1,315) | (1,210) | |||
Proceeds from borrowings | 986 | 998 | 750 | |||
Principal payments under debt obligations | (610) | (1,272) | (335) | |||
Dividends paid to shareholders | (658) | (656) | (654) | |||
Treasury stock reissued | 46 | 36 | 33 | |||
Other, net | (120) | [1] | (234) | [1] | 16 | |
Net cash provided (used) by financing activities | (1,619) | (2,187) | (147) | |||
Net change in cash and cash equivalents | 509 | (308) | 2,115 | |||
Cash and cash equivalents, beginning of period | 4,350 | 4,658 | 2,543 | |||
Cash and cash equivalents, end of period | 4,859 | 4,350 | 4,658 | |||
Parent Company | ||||||
Cash flows from operating activities: | ||||||
Net earnings | 2,659 | 2,533 | 2,951 | |||
Adjustments to reconcile net earnings to net cash provided from operating activities: | ||||||
Equity in undistributed earnings of subsidiaries | [2] | (814) | (291) | (1,281) | ||
Change in income tax liabilities | (112) | 6 | 115 | |||
Other, net | 406 | [3] | 149 | [3] | (72) | |
Net cash provided (used) by operating activities | 2,139 | 2,397 | 1,713 | |||
Cash flows from investing activities: | ||||||
Fixed maturity securities sold | 225 | 121 | 38 | |||
Fixed maturity securities purchased | (229) | (202) | (105) | |||
Other investments sold (purchased) | 6 | 14 | 291 | |||
Settlement of derivatives | 0 | 147 | (1) | |||
Additional capitalization of subsidiaries | [2] | (36) | (43) | 0 | ||
Payments for (Proceeds from) Other Investing Activities | (25) | 0 | 0 | |||
Net cash provided (used) by investing activities | (59) | 37 | 223 | |||
Cash flows from financing activities: | ||||||
Purchases of treasury stock | (1,422) | (1,315) | (1,210) | |||
Proceeds from borrowings | 986 | 998 | 750 | |||
Principal payments under debt obligations | (621) | (1,272) | (335) | |||
Dividends paid to shareholders | (658) | (656) | (654) | |||
Treasury stock reissued | 46 | 36 | 33 | |||
Proceeds from exercise of stock options | 36 | 47 | 23 | |||
Net change in amount due to/from subsidiary | [2] | (6) | 43 | 14 | ||
Other, net | (125) | [3] | (232) | [3] | 0 | |
Net cash provided (used) by financing activities | (1,764) | (2,351) | (1,379) | |||
Net change in cash and cash equivalents | 316 | 83 | 557 | |||
Cash and cash equivalents, beginning of period | 1,721 | 1,638 | 1,081 | |||
Cash and cash equivalents, end of period | 2,037 | 1,721 | $ 1,638 | |||
Senior Notes due 2039 and 2040 | ||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||
Expense on extinguishment of debt | $ 137 | |||||
8.50% senior notes due May 2019 | ||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||
Expense on extinguishment of debt | $ 230 | |||||
[1] | Operating activities excludes and financing activities includes a cash outflow of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt | |||||
[2] | Eliminated in consolidation | |||||
[3] | Operating activities excludes and financing activities includes a cash outflow of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt |
Schedule II - Aflac Incorpor138
Schedule II - Aflac Incorporated (Parent Only) - Summary of Notes Payable (Detail 1) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | $ 5,339 | $ 4,951 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 5,339 | 4,968 |
Parent Company | 2.65% senior notes due February 2017 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 649 | 651 |
Parent Company | 2.40% senior notes due March 2020 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 547 | 546 |
Parent Company | 4.00% senior notes due February 2022 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 348 | 348 |
Parent Company | 3.625% senior notes due June 2023 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 696 | 696 |
Parent Company | 3.625% senior notes due November 2024 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 745 | 744 |
Parent Company | 3.25% senior notes due March 2025 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 445 | 445 |
Parent Company | 2.875% senior notes due October 2026 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 298 | 0 |
Parent Company | 6.90% senior notes due December 2039 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 220 | 393 |
Parent Company | 6.45% senior notes due August 2040 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 254 | 445 |
Parent Company | 4.00% senior notes due October 2046 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 394 | 0 |
Parent Company | 5.50% subordinated notes due September 2052 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 486 | 486 |
Parent Company | 2.26% yen-denominated Uridashi notes paid September 2016 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 0 | 83 |
Parent Company | 1.84% yen-denominated Samurai notes paid July 2016 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 0 | 131 |
Parent Company | Yen-denominated loan variable interest rate due September 2021 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | 43 | 0 |
Parent Company | Yen-denominated loan variable interest rate due September 2023 | ||
Condensed Financial Statements, Captions [Line Items] | ||
Notes payable | $ 214 | $ 0 |
Schedule II - Aflac Incorpor139
Schedule II - Aflac Incorporated (Parent Only) - Summary of Notes Payable (Detail 2) $ in Millions, ¥ in Billions | Dec. 31, 2016USD ($) | Dec. 31, 2016JPY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2016JPY (¥) | Jul. 31, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2015JPY (¥) | Mar. 31, 2015USD ($) | Nov. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Oct. 31, 2012USD ($) | Sep. 30, 2012USD ($) | Jul. 31, 2012USD ($) | Feb. 29, 2012USD ($) | Aug. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 5,339 | $ 4,951 | ||||||||||||||
2.65% senior notes due February 2017 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% | ||||||||||
Debt instrument, principal amount | $ 400 | $ 250 | $ 400 | |||||||||||||
2.40% senior notes due March 2020 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 2.40% | 2.40% | 2.40% | 2.40% | 2.40% | |||||||||||
Debt instrument, principal amount | $ 550 | $ 550 | ||||||||||||||
4.00% senior notes due February 2022 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | |||||||||||
Debt instrument, principal amount | $ 350 | $ 350 | ||||||||||||||
3.625% senior notes due June 2023 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | |||||||||||
Debt instrument, principal amount | $ 700 | $ 700 | ||||||||||||||
3.625% senior notes due November 2024 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | |||||||||||
Debt instrument, principal amount | $ 750 | $ 750 | ||||||||||||||
3.25% senior notes due March 2025 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | |||||||||||
Debt instrument, principal amount | $ 450 | $ 450 | ||||||||||||||
2.875% senior notes due October 2026 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 2.875% | 2.875% | 2.875% | 2.875% | ||||||||||||
Debt instrument, principal amount | $ 300 | |||||||||||||||
6.90% senior notes due December 2039 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 6.90% | 6.90% | 6.90% | 6.90% | ||||||||||||
Debt instrument, principal amount | $ 400 | |||||||||||||||
6.45% senior notes due August 2040 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 6.45% | 6.45% | 6.45% | 6.45% | ||||||||||||
Debt instrument, principal amount | $ 450 | |||||||||||||||
4.00% senior notes due October 2046 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | 4.00% | ||||||||||||
Debt instrument, principal amount | $ 400 | |||||||||||||||
5.50% subordinated notes due September 2052 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | 5.50% | ||||||||||
Debt instrument, principal amount | $ 500 | $ 50 | $ 450 | |||||||||||||
2.26% yen-denominated Uridashi notes paid September 2016 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 2.26% | 2.26% | 2.26% | 2.26% | ||||||||||||
Debt instrument, principal amount | ¥ | ¥ 8 | |||||||||||||||
1.84% yen-denominated Samurai notes paid July 2016 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 1.84% | 1.84% | 1.84% | |||||||||||||
Debt instrument, principal amount | ¥ | ¥ 15.8 | |||||||||||||||
Yen-denominated loan variable interest rate due September 2021 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 0.31% | 0.31% | ||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 5 | ¥ 5 | ||||||||||||||
Yen-denominated loan variable interest rate due September 2023 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 0.46% | 0.46% | ||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 25 | ¥ 25 | ||||||||||||||
Parent Company | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 5,339 | $ 4,968 | ||||||||||||||
Parent Company | 2.65% senior notes due February 2017 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 649 | $ 651 | ||||||||||||||
Debt instrument, interest rate | 2.65% | 2.65% | 2.65% | 2.65% | ||||||||||||
Parent Company | 2.40% senior notes due March 2020 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 547 | $ 546 | ||||||||||||||
Debt instrument, interest rate | 2.40% | 2.40% | 2.40% | 2.40% | ||||||||||||
Parent Company | 4.00% senior notes due February 2022 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 348 | $ 348 | ||||||||||||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% | 4.00% | ||||||||||||
Parent Company | 3.625% senior notes due June 2023 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 696 | $ 696 | ||||||||||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | ||||||||||||
Parent Company | 3.625% senior notes due November 2024 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 745 | $ 744 | ||||||||||||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | 3.625% | ||||||||||||
Parent Company | 3.25% senior notes due March 2025 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 445 | $ 445 | ||||||||||||||
Debt instrument, interest rate | 3.25% | 3.25% | 3.25% | 3.25% | ||||||||||||
Parent Company | 2.875% senior notes due October 2026 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 298 | $ 0 | ||||||||||||||
Debt instrument, interest rate | 2.875% | 2.875% | ||||||||||||||
Parent Company | 6.90% senior notes due December 2039 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 220 | $ 393 | ||||||||||||||
Debt instrument, interest rate | 6.90% | 6.90% | 6.90% | 6.90% | ||||||||||||
Parent Company | 6.45% senior notes due August 2040 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 254 | $ 445 | ||||||||||||||
Debt instrument, interest rate | 6.45% | 6.45% | 6.45% | 6.45% | ||||||||||||
Parent Company | 4.00% senior notes due October 2046 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 394 | $ 0 | ||||||||||||||
Debt instrument, interest rate | 4.00% | 4.00% | ||||||||||||||
Parent Company | 5.50% subordinated notes due September 2052 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 486 | $ 486 | ||||||||||||||
Debt instrument, interest rate | 5.50% | 5.50% | 5.50% | 5.50% | ||||||||||||
Parent Company | 2.26% yen-denominated Uridashi notes paid September 2016 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 0 | $ 83 | ||||||||||||||
Debt instrument, interest rate | 2.26% | 2.26% | ||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 10 | |||||||||||||||
Parent Company | 1.84% yen-denominated Samurai notes paid July 2016 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | 0 | $ 131 | ||||||||||||||
Debt instrument, interest rate | 1.84% | 1.84% | ||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 15.8 | |||||||||||||||
Parent Company | Yen-denominated loan variable interest rate due September 2021 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 43 | $ 0 | ||||||||||||||
Debt instrument, interest rate | 0.31% | 0.31% | ||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 5 | |||||||||||||||
Parent Company | Yen-denominated loan variable interest rate due September 2023 | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Notes payable | $ 214 | $ 0 | ||||||||||||||
Parent Company | Yen Denominated Loan Three Point Zero Zero Percent Due August Twenty Fifteen [Member] | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Debt instrument, interest rate | 0.46% | 0.46% | ||||||||||||||
Debt instrument, principal amount | ¥ | ¥ 25 |
Schedule II - Aflac Incorpor140
Schedule II - Aflac Incorporated (Parent Only) - Additional Information (Detail) ¥ in Billions | 12 Months Ended |
Dec. 31, 2016JPY (¥) | |
Parent Company | Yen Denominated Uridashi and Samurai Notes | |
Condensed Financial Statements, Captions [Line Items] | |
Extinguishment of notes | ¥ 2 |
Schedule II - Aflac Incorpor141
Schedule II - Aflac Incorporated - Aggregate Contractual Maturities of Notes Payable (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Condensed Financial Statements, Captions [Line Items] | |
2,017 | $ 656 |
2,018 | 6 |
2,019 | 5 |
2,020 | 552 |
2,021 | 44 |
Thereafter | 4,146 |
Total | 5,409 |
Parent Company | |
Condensed Financial Statements, Captions [Line Items] | |
2,017 | 650 |
2,018 | 0 |
2,019 | 0 |
2,020 | 550 |
2,021 | 43 |
Thereafter | 4,145 |
Total | $ 5,388 |
Schedule II - Aflac Incorpor142
Schedule II - Aflac Incorporated (Parent Only) - Supplemental Disclosure of Cash Flow Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Interest paid | $ 211 | $ 236 | $ 241 |
Shareholder dividend reinvestment | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Treasury stock issued for shareholder dividend reinvestment | 27 | 26 | 26 |
Parent Company | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Interest paid | 209 | 235 | 241 |
Parent Company | Shareholder dividend reinvestment | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Treasury stock issued for shareholder dividend reinvestment | $ 26 | $ 26 | $ 26 |
SCHEDULE III SUPPLEMENTARY I143
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION - (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Deferred policy acquisition costs | $ 8,993 | $ 8,511 | $ 8,993 | $ 8,511 | |||||||
Future Policy Benefits & Unpaid Policy Claims | 80,151 | 73,489 | 80,151 | 73,489 | |||||||
Unearned premiums | 6,916 | 7,857 | 6,916 | 7,857 | |||||||
Other policyholders' funds | 6,659 | 6,285 | 6,659 | 6,285 | |||||||
Premiums Earned, Net | 4,778 | $ 5,022 | $ 4,823 | $ 4,602 | 4,394 | $ 4,380 | $ 4,364 | $ 4,432 | 19,225 | 17,570 | $ 19,072 |
Net investment income | 813 | $ 842 | $ 822 | $ 801 | 792 | $ 784 | $ 777 | $ 782 | 3,278 | 3,135 | 3,319 |
Benefits and claims, net | 12,919 | 11,746 | 12,937 | ||||||||
Amortization of deferred policy acquisition costs | 1,141 | 1,066 | 1,108 | ||||||||
Other operating Expenses | 4,432 | 4,198 | 4,192 | ||||||||
Premiums written | 18,214 | 17,083 | 18,550 | ||||||||
Aflac Japan | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Deferred policy acquisition costs | 5,765 | 5,370 | 5,765 | 5,370 | 5,211 | ||||||
Future Policy Benefits & Unpaid Policy Claims | 70,684 | 64,437 | 70,684 | 64,437 | |||||||
Unearned premiums | 6,798 | 7,739 | 6,798 | 7,739 | |||||||
Other policyholders' funds | 6,659 | 6,285 | 6,659 | 6,285 | |||||||
Premiums Earned, Net | 13,537 | 12,046 | 13,861 | ||||||||
Net investment income | 2,554 | 2,436 | 2,662 | ||||||||
Benefits and claims, net | 9,828 | 8,705 | 10,084 | ||||||||
Amortization of deferred policy acquisition costs | 644 | 578 | 649 | ||||||||
Other operating Expenses | 2,326 | 2,055 | 2,364 | ||||||||
Premiums written | 12,762 | 11,740 | 13,352 | ||||||||
Aflac U.S. | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Deferred policy acquisition costs | 3,228 | 3,141 | 3,228 | 3,141 | 3,062 | ||||||
Future Policy Benefits & Unpaid Policy Claims | 10,094 | 9,696 | 10,094 | 9,696 | |||||||
Unearned premiums | 118 | 118 | 118 | 118 | |||||||
Other policyholders' funds | 0 | 0 | 0 | 0 | |||||||
Premiums Earned, Net | 5,454 | 5,347 | 5,211 | ||||||||
Net investment income | 703 | 678 | 645 | ||||||||
Benefits and claims, net | 2,869 | 2,873 | 2,853 | ||||||||
Amortization of deferred policy acquisition costs | 497 | 488 | 459 | ||||||||
Other operating Expenses | 1,593 | 1,570 | 1,474 | ||||||||
Premiums written | 5,452 | 5,343 | 5,198 | ||||||||
All other | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Deferred policy acquisition costs | 0 | 0 | 0 | 0 | |||||||
Future Policy Benefits & Unpaid Policy Claims | 91 | 43 | 91 | 43 | |||||||
Unearned premiums | 0 | 0 | 0 | 0 | |||||||
Other policyholders' funds | 0 | 0 | 0 | 0 | |||||||
Premiums Earned, Net | 234 | 177 | 0 | ||||||||
Net investment income | 21 | 21 | 12 | ||||||||
Benefits and claims, net | 222 | 168 | 0 | ||||||||
Amortization of deferred policy acquisition costs | 0 | 0 | 0 | ||||||||
Other operating Expenses | 513 | 573 | 354 | ||||||||
Premiums written | 0 | 0 | $ 0 | ||||||||
Intercompany eliminations | |||||||||||
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Deferred policy acquisition costs | 0 | 0 | 0 | 0 | |||||||
Future Policy Benefits & Unpaid Policy Claims | (718) | (687) | (718) | (687) | |||||||
Unearned premiums | 0 | 0 | 0 | 0 | |||||||
Other policyholders' funds | $ 0 | $ 0 | $ 0 | $ 0 |
SCHEDULE IV REINSURANCE Schedul
SCHEDULE IV REINSURANCE Schedule IV - Reinsurance (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Gross Amount, Life Insurance in Force | $ 151,093 | $ 146,610 | $ 151,093 | $ 146,610 | $ 144,374 | ||||||
Ceded to Other Companies, Life Insurance in Force | 3,741 | 3,547 | 3,741 | 3,547 | 3,298 | ||||||
Assumed from Other Companies, Life Insurance in Force | 0 | 0 | 0 | 0 | 0 | ||||||
Net Amount, Life Insurance in Force | $ 147,352 | $ 143,063 | $ 147,352 | $ 143,063 | $ 141,076 | ||||||
Percentage of Amount Assumed to Net, Life Insurance in Force | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||
Gross amount | $ 19,592 | $ 17,904 | $ 19,412 | ||||||||
Ceded to Other Companies | 608 | 520 | 350 | ||||||||
Assumed from Other companies | 241 | 186 | 10 | ||||||||
Net Amount | $ 4,778 | $ 5,022 | $ 4,823 | $ 4,602 | $ 4,394 | $ 4,380 | $ 4,364 | $ 4,432 | $ 19,225 | $ 17,570 | $ 19,072 |
Percentage of Amount Assumed to Net | 1.00% | 1.00% | 0.00% | ||||||||
Health insurance | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Gross amount | $ 14,839 | $ 13,604 | $ 14,648 | ||||||||
Ceded to Other Companies | 595 | 509 | 339 | ||||||||
Assumed from Other companies | 241 | 186 | 10 | ||||||||
Net Amount | $ 14,485 | $ 13,281 | $ 14,319 | ||||||||
Percentage of Amount Assumed to Net | 1.00% | 1.00% | 0.00% | ||||||||
Life insurance | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Gross amount | $ 4,753 | $ 4,300 | $ 4,764 | ||||||||
Ceded to Other Companies | 13 | 11 | 11 | ||||||||
Assumed from Other companies | 0 | 0 | 0 | ||||||||
Net Amount | $ 4,740 | $ 4,289 | $ 4,753 | ||||||||
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |