Aflac (AFL) 10-K 26 Feb 10 2009 FY Annual report Financial data

Consolidated Statements of Earn

Consolidated Statements of Earnings (USD $)
In Millions, except Share data in Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues:
Premiums, principally supplemental health insurance	$16,621	$14,947	$12,973
Net investment income	2,765	2,578	2,333
Other-than-temporary impairment losses:
Total other-than-temporary impairment losses	(1,387)	(753)	(23)
Other-than-temporary impairment losses recognized in other comprehensive income	26	0	0
Other-than-temporary impairment losses realized	(1,361)	(753)	(23)
Sales and redemptions	149	(254)	51
Total realized investment gains (losses)	(1,212)	(1,007)	28
Other income	80	36	59
Total revenues	18,254	16,554	15,393
Benefits and expenses:
Benefits and claims	11,308	10,499	9,285
Acquisition and operating expenses:
Amortization of deferred policy acquisition costs	942	775	640
Insurance commissions	1,568	1,460	1,331
Insurance expenses	1,977	1,743	1,491
Interest expense	72	29	27
Other operating expenses	152	134	120
Total acquisition and operating expenses	4,711	4,141	3,609
Total benefits and expenses	16,019	14,640	12,894
Earnings before income taxes	2,235	1,914	2,499
Income tax expense:
Current	830	636	548
Deferred	(92)	24	317
Total income taxes	738	660	865
Net earnings	$1,497	$1,254	$1,634
Net earnings per share:
Basic	3.21	2.65	3.35
Diluted	3.19	2.62	3.31
Weighted-average outstanding common shares used in computing earnings per share (In thousands):
Basic	466,552	473,405	487,869
Diluted	469,063	478,815	493,971

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Securities available for sale, at fair value:
Fixed maturities (amortized cost $37,633 in 2009 and $36,034 in 2008)	$36,781	$35,012
Perpetual securities (amortized cost $7,554 in 2009 and $9,074 in 2008)	7,263	8,047
Equity securities (cost $22 in 2009 and $24 in 2008)	24	27
Securities held to maturity, at amortized cost:
Fixed maturities (fair value $25,828 in 2009 and $23,084 in 2008)	26,687	24,436
Other investments	114	87
Cash and cash equivalents	2,323	941
Total investments and cash	73,192	68,550
Receivables	764	920
Accrued investment income	649	650
Deferred policy acquisition costs	8,533	8,237
Property and equipment, at cost less accumulated depreciation	593	597
Other	375	377
Total assets	84,106	79,331
Policy liabilities:
Future policy benefits	61,501	59,310
Unpaid policy claims	3,270	3,118
Unearned premiums	926	874
Other policyholders' funds	3,548	2,917
Total policy liabilities	69,245	66,219
Notes payable	2,599	1,721
Income taxes	1,653	1,201
Payables for return of cash collateral on loaned securities	483	1,733
Other	1,709	1,818
Commitments and contingent liabilities (Note 13)
Total liabilities	75,689	72,692
Shareholders' equity:
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2009 and 2008; issued 661,209 shares in 2009 and 660,035 shares in 2008	66	66
Additional paid-in capital	1,228	1,184
Retained earnings	12,410	11,306
Accumulated other comprehensive income:
Unrealized foreign currency translation gains	776	750
Unrealized gains (losses) on investment securities:
Unrealized gains (losses) on securities not other-than- temporarily impaired	(624)	(1,211)
Unrealized gains (losses) on other-than-temporarily impaired securities	(16)	0
Total unrealized gains (losses) on investment securities	(640)	(1,211)
Pension liability adjustment	(107)	(121)
Treasury stock, at average cost	(5,316)	(5,335)
Total shareholders' equity	8,417	6,639
Total liabilities and shareholders' equity	$84,106	$79,331

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data in Thousands	Dec. 31, 2009	Dec. 31, 2008
Securities available for sale, Fixed maturities, amortized cost	$37,633	$36,034
Securities available for sale, Perpetual securities, amortized cost	7,554	9,074
Securities available for sale, Equity securities, cost	22	24
Securities held to maturity, Fixed maturities, fair value	$25,828	$23,084
Common stock, par value	0.1	0.1
Common stock, shares authorized	1,900,000	1,900,000
Common stock, shares issued	661,209	660,035

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (USD $)
In Millions						Total
Balance, beginning of period at Dec. 31, 2006	$66	$895	$9,304	$1,426	($3,350)
Change in unrealized foreign currency translation gains (losses) during period, net of income taxes				75
Exercise of stock options		74
Purchases of treasury stock					(606)
Net earnings			1,634			1,634
Change in unrealized gains (losses) on investment securities during period, net of income taxes:
Change in unrealized gains (losses) on investment securities not other-than-temporarily impaired, net of income taxes				(576)
Change in unrealized gains (losses) on other-than- temporarily impaired investment securities, net of income taxes				0
Total change in unrealized gains (losses) on investment securities during period, net of income taxes				(576)
Share-based compensation		39
Cost of shares issued					60
Dividends to shareholders ($.84 per share in 2009, $1.24 per share in 2008, and $.615 per share in 2007)			(301)
Pension liability adjustment during period, net of income taxes				9
Gain on treasury stock reissued		46
Balance, end of period at Dec. 31, 2007	66	1,054	10,637	934	(3,896)	8,795
Change in unrealized foreign currency translation gains (losses) during period, net of income taxes				621
Exercise of stock options		44
Purchases of treasury stock					(1,490)
Net earnings			1,254			1,254
Change in unrealized gains (losses) on investment securities during period, net of income taxes:
Change in unrealized gains (losses) on investment securities not other-than-temporarily impaired, net of income taxes				(2,085)
Change in unrealized gains (losses) on other-than- temporarily impaired investment securities, net of income taxes				0
Total change in unrealized gains (losses) on investment securities during period, net of income taxes				(2,085)
Share-based compensation		40
Cost of shares issued					51
Dividends to shareholders ($.84 per share in 2009, $1.24 per share in 2008, and $.615 per share in 2007)			(585)
Pension liability adjustment during period, net of income taxes				(52)
Gain on treasury stock reissued		46
Balance, end of period at Dec. 31, 2008	66	1,184	11,306	(582)	(5,335)	6,639
Change in unrealized foreign currency translation gains (losses) during period, net of income taxes				26
Exercise of stock options		11
Purchases of treasury stock					(10)
Net earnings			1,497			1,497
Change in unrealized gains (losses) on investment securities during period, net of income taxes:
Change in unrealized gains (losses) on investment securities not other-than-temporarily impaired, net of income taxes				587
Change in unrealized gains (losses) on other-than- temporarily impaired investment securities, net of income taxes				(16)
Total change in unrealized gains (losses) on investment securities during period, net of income taxes				571
Share-based compensation		35
Cost of shares issued					29
Dividends to shareholders ($.84 per share in 2009, $1.24 per share in 2008, and $.615 per share in 2007)			(393)
Pension liability adjustment during period, net of income taxes				14
Gain on treasury stock reissued		(2)
Balance, end of period at Dec. 31, 2009	$66	$1,228	$12,410	$29	($5,316)	$8,417

1_Consolidated Statements of Sh

Consolidated Statements of Shareholders' Equity (Parenthetical) (Retained earnings:, USD $)
	Total
Dividends to shareholders, per share	0.615
Dividends to shareholders, per share	1.24
Dividends to shareholders, per share	0.84

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net earnings	$1,497	$1,254	$1,634
Adjustments to reconcile net earnings to net cash provided by operating activities:
Change in receivables and advance premiums	406	(10)	(176)
Increase in deferred policy acquisition costs	(358)	(462)	(454)
Increase in policy liabilities	3,019	3,235	3,194
Change in income tax liabilities	139	(271)	421
Realized investment (gains) losses	1,212	1,007	(28)
Other, net	246	212	65
Net cash provided by operating activities	6,161	4,965	4,656
Securities available for sale:
Fixed maturities sold	4,798	897	1,261
Fixed maturities matured or called	1,976	1,496	1,552
Perpetual securities sold	595	484	194
Equity securities sold	2	0	0
Securities held to maturity:
Fixed maturities matured or called	212	247	45
Perpetual securities matured or called	0	0	140
Securities available for sale:
Fixed maturities	(7,521)	(4,042)	(3,848)
Equity securities	(2)	0	0
Securities held to maturity:
Fixed maturities	(4,167)	(3,973)	(2,920)
Purchase of subsidiary	(83)	0	0
Cash received as collateral on loaned securities, net	(1,214)	670	(23)
Other, net	(72)	(62)	(55)
Net cash used by investing activities	(5,476)	(4,283)	(3,654)
Cash flows from financing activities:
Purchases of treasury stock	(10)	(1,490)	(606)
Proceeds from borrowings	1,405	0	242
Principal payments under debt obligations	(560)	(5)	(247)
Dividends paid to shareholders	(524)	(434)	(373)
Change in investment-type contracts, net	364	471	210
Treasury stock reissued	17	32	47
Other, net	7	43	72
Net cash provided (used) by financing activities	699	(1,383)	(655)
Effect of exchange rate changes on cash and cash equivalents	(2)	79	13
Net change in cash and cash equivalents	1,382	(622)	360
Cash and cash equivalents, beginning of period	941	1,563	1,203
Cash and cash equivalents, end of period	2,323	941	1,563
Supplemental disclosures of cash flow information:
Income taxes paid	627	765	416
Interest paid	61	27	26
Impairment losses included in realized investment losses	1,361	753	23
Noncash financing activities:
Capitalized lease obligations	2	3	1
Dividends declared	0	131	0
Treasury stock issued for:
Associate stock bonus	7	43	38
Shareholder dividend reinvestment	0	20	19
Share-based compensation grants	$4	$2	$2

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net earnings	$1,497	$1,254	$1,634
Foreign currency translation adjustments:
Change in unrealized foreign currency translation gains (losses) during period	65	164	(8)
Unrealized gains (losses) on investment securities:
Unrealized holding gains (losses) on investment securities during period	(342)	(4,078)	(848)
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings	1,217	926	(28)
Unrealized gains (losses) on derivatives:
Unrealized holding gains (losses) on derivatives during period	0	(2)	(1)
Pension liability adjustment during period	22	(81)	14
Total other comprehensive income (loss) before income taxes	962	(3,071)	(871)
Income tax expense (benefit) related to items of other comprehensive income (loss)	351	(1,555)	(379)
Other comprehensive income (loss), net of income taxes	611	(1,516)	(492)
Total comprehensive income (loss)	$2,108	($262)	$1,142

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Aflac Incorporated (the Parent Company) and its subsidiaries (the Company) primarily sell supplemental health and life insurance in the United States and Japan. The Companys 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). Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC). Most of Aflacs policies are individually underwritten and marketed through independent agents. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business. Aflac Japans revenues, including realized gains and losses on its investment portfolio, accounted for 73% of the Companys total revenues in 2009, 72% in 2008 and 71% in 2007. The percentage of the Companys total assets attributable to Aflac Japan was 85% at December31, 2009, and 87% at December 31, 2008. During the fourth quarter of 2009, the Parent Company closed its $100 million purchase of Continental American Insurance Group, Inc. (CAIG), which includes its wholly owned subsidiary CAIC. Subsequent to the closing, CAIG merged into Continental American Group, LLC, a limited liability company wholly owned by CAIC. As a result of the merger, CAIC became directly wholly owned by the Parent Company. CAIC, headquartered in Columbia, South Carolina, equips Aflac U.S. with a platform for offering attractive voluntary group insurance products that are well-suited for distribution by insurance brokers at the worksite. The purchase business combination resulted in the recognition of $97 million of net assets at fair value. An immaterial amount of intangible assets, including goodwill, was recognized as part of the business combination. 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). The preparation of financial statements in conformity with 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 stateme

BUSINESS SEGMENT AND FOREIGN IN

BUSINESS SEGMENT AND FOREIGN INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
BUSINESS SEGMENT AND FOREIGN INFORMATION	2. 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. As discussed in Note 1, in the fourth quarter of 2009 we purchased CAIG which includes its wholly owned subsidiary CAIC. CAIC is included in the Aflac U.S. business segment effective October1, 2009. Operating business segments that are not individually reportable are included in the Other business segments category. We do not allocate corporate overhead expenses to business segments. We evaluate and manage our business segments using a financial performance measure called pretax operating earnings. Our definition of operating earnings excludes the following items from net earnings on an after-tax basis: realized investment gains/losses, the impact from ASC 815 (formerly referred to as SFAS 133), and nonrecurring items. We then exclude income taxes related to operations to arrive at pretax operating earnings. Information regarding operations by segment for the years ended December31 follows: (In millions) 2009 2008 2007 Revenues: Aflac Japan: Earned premiums: Cancer $ 6,406 $ 5,718 $ 4,937 Medical and other health 4,110 3,547 2,928 Life insurance 1,662 1,409 1,172 Net investment income 2,265 2,053 1,801 Other income 43 15 27 Total Aflac Japan 14,486 12,742 10,865 Aflac U.S.: Earned premiums: Accident/disability 2,012 1,941 1,785 Cancer 1,245 1,197 1,114 Other health 989 958 885 Life insurance 198 176 152 Net investment income 499 505 500 Other income 10 10 10 Total Aflac U.S. 4,953 4,787 4,446 Other business segments 51 38 37 Total business segments 19,490 17,567 15,348 Realized investment gains (losses) (1,212 ) (1,007 ) 28 Corporate 137 85 116 Intercompany eliminations (161 ) (91 ) (99 ) Total revenues $ 18,254 $ 16,554 $ 15,393 (In millions) 2009 2008 2007 Pretax earnings: Aflac Japan $ 2,800 $ 2,250 $ 1,821 Aflac U.S. 776 745 692 Other business segments (1 ) Total business segments 3,576 2,994 2,513 Interest expense, noninsurance operations (73 ) (26 ) (21 ) Corporate and eliminations (68 ) (42 ) (25 ) Pretax operating earnings 3,435 2,926 2,467 Realized investment gains (losses)

INVESTMENTS

INVESTMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
INVESTMENTS	3. INVESTMENTS Net Investment Income The components of net investment income for the years ended December31 were as follows: (In millions) 2009 2008 2007 Fixed-maturity securities $ 2,413 $ 2,204 $ 1,936 Perpetual securities 367 375 372 Equity securities and other 3 3 2 Short-term investments and cash equivalents 6 22 45 Gross investment income 2,789 2,604 2,355 Less investment expenses 24 26 22 Net investment income $ 2,765 $ 2,578 $ 2,333 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 December31 are shown in the following tables. 2009 (In millions) Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities available for sale, carried at fair value: Fixed maturities: Yen-denominated: Japan government and agencies $ 11,710 $ 405 $ 174 $ 11,941 Mortgage- and asset-backed securities 549 13 562 Public utilities 2,284 145 79 2,350 Collateralized debt obligations 165 97 24 238 Sovereign and supranational 833 28 96 765 Banks/financial institutions 5,248 144 784 4,608 Other corporate 6,401 112 714 5,799 Total yen-denominated 27,190 944 1,871 26,263 Dollar-denominated: U.S. government and agencies 221 3 7 217 Municipalities 519 4 28 495 Mortgage- and asset-backed securities* 586 9 78 517 Collateralized debt obligations 24 7 2 29 Public utilities 1,587 123 42 1,668 Sovereign and supranational 353 48 9 392 Banks/financial institutions 2,668 75 259 2,484 Other corporate 4,485 339 108 4,716 Total dollar-denominated 10,443 608 533 10,518 Total fixed maturities 37,633 1,552 2,404 36,781 Perpetual securities: Yen-denominated: Banks/financial institutions 6,964 311 604 6,671 Other corporate 291 28 319 Dollar-denominated: Banks/financial institutions 299 30 56 273 Total perpetual securities 7,554 369 660 7,263 Equity securities 22 4 2 24 Total securities available for sale $ 45,209 $ 1,925 $ 3,066 $ 44,068 * Includes $25 of other-than-temporary non-credit-

FINANCIAL INSTRUMENTS AND FAIR

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS	4. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Fair Value Measurement We determine the fair values of our debt, perpetual and privately issued equity securities primarily using three pricing approaches or techniques: quoted market prices readily available from public exchange markets, a discounted cash flow (DCF) pricing model, and price quotes we obtain from outside brokers. Our DCF pricing model utilizes various market inputs we obtain from both active and inactive markets. The estimated fair values developed by the DCF pricing models are most sensitive to prevailing credit spreads, the level of interest rates (yields) and interest rate volatility. Credit spreads are derived based on pricing data obtained from investment brokers and take into account the current yield curve, time to maturity and subordination levels for similar securities or classes of securities. We validate the reliability of the DCF pricing models periodically by using the models to price investments for which there are quoted market prices from active and inactive markets or, in the alternative, are quoted by our custodian for the same or similar securities. The pricing data and market quotes we obtain from outside sources are reviewed internally for reasonableness. If a fair value appears unreasonable, the inputs are re-examined and the value is confirmed or revised. During 2009 and 2008, we noted a continued reduction in the availability of pricing data from market sources. This decline is due largely to the contraction of liquidity in the global markets and a reduction in the overall number of sources to provide pricing data. As a result, we have noted that available pricing data has become more volatile. The reduction in available pricing sources coupled with the increase in price volatility has increased the degree of management judgment required in the final determination of fair values. We continually assess the reasonableness of the pricing data we receive by comparing it to historical results. In addition to historical comparisons, we evaluate the reasonableness of the pricing data in light of current market trends and events. The final pricing data used to determine fair values is based on managements judgment. Fair Value Hierarchy GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuations 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 valuation inputs are not observable in an active market. The vast majority of our financial instruments subject to the classification provisions of GAAP relate to our investment securities classified as securities available for

DEFERRED POLICY ACQUISITION COS

DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES
	12 Months Ended Dec. 31, 2009 USD / shares
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES	5. DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES Deferred Policy Acquisition Costs and Insurance Expenses: Consolidated policy acquisition costs deferred were $1.30 billion in 2009, compared with $1.24 billion in 2008 and $1.09 billion in 2007. The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December31. 2009 2008 (In millions) Japan U.S. Japan U.S. Deferred policy acquisition costs: Balance, beginning of year $ 5,644 $ 2,593 $ 4,269 $ 2,385 Capitalization 787 513 658 578 Amortization (523 ) (419 ) (405 ) (370 ) Foreign currency translation and other (62 ) 1,122 Balance, end of year $ 5,846 $ 2,687 $ 5,644 $ 2,593 Commissions deferred as a percentage of total acquisition costs deferred were 76% in both 2009 and 2008 and 74% in 2007. Personnel, compensation and benefit expenses as a percentage of insurance expenses were 43% in both 2009 and 2008 and 44% in 2007. Advertising expense, which is included in insurance expenses in the consolidated statements of earnings, was as follows for the years ended December31: (In millions) 2009 2008 2007 Advertising expense: Aflac Japan $ 106 $ 86 $ 83 Aflac U.S. 107 118 95 Total advertising expense $ 213 $ 204 $ 178 Depreciation and other amortization expenses, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December31: (In millions) 2009 2008 2007 Depreciation expense $ 60 $ 57 $ 51 Other amortization expense 21 17 14 Total depreciation and other amortization expense* $ 81 $ 74 $ 65 * Aflac Japan accounted for $46 in 2009, $43 in 2008 and $37 in 2007. Lease and rental expense, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December31: (In millions) 2009 2008 2007 Lease and rental expense: Aflac Japan $ 72 $ 68 $ 51 Aflac U.S. 8 9 8 Other 1 1 Total lease and rental expense $ 81 $ 78 $ 59

POLICY LIABILITIES

POLICY LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
POLICY LIABILITIES	6. POLICY LIABILITIES Policy liabilities primarily include future policy benefits and unpaid policy claims, which accounted for 89% and 5% of total policy liabilities at December31, 2009, respectively. We regularly review the adequacy of our policy liabilities in total and by component. The liability for future policy benefits as of December31 consisted of the following: Liability Amounts Interest Rates (In millions) PolicyIssue Year 2009 2008 Yearof Issue In 20 Years Health insurance: Japan: 20052009 $ 798 $ 527 1.52.75% 1.52.75% 1999 2009 10,815 9,558 3.0 3.0 1997 1999 3,438 3,415 3.5 3.5 1995 1996 372 367 4.0 4.0 1994 1996 4,927 4,908 4.5 4.5 1987 1994 21,563 21,734 5.25 5.5 5.25 5.5 1978 1986 5,084 5,233 6.5 6.75 5.5 1974 1979 939 1,015 7.0 5.0 U.S.: 2005 2009 1,935 1,562 5.5 5.5 1998 2004 1,122 1,048 7.0 7.0 1988 2004 940 1,016 8.0 6.0 1986 2004 1,349 1,405 6.0 6.0 1985 1986 24 25 6.5 6.5 1981 1986 196 203 7.0 5.5 Other 28 30 Life insurance: Japan: 2007 2009 402 197 2.75 2.75 2006 2009 462 301 2.5 2.5 2001 2009 904 746 1.651.85 1.651.85 1999 2009 1,660 1,592 3.0 3.0 1997 2009 782 779 3.5 3.5 1994 1996 1,173 1,177 4.0 4.0 1985 1993 2,401 2,316 5.255.65 5.25 5.65 U.S.: 1956 2009 187 156 4.0 6.0 4.0 6.0 Total $ 61,501 $ 59,310 The weighted-average interest rates reflected in the consolidated statements of earnings for future policy benefits for Japanese policies were 4.5% in 2009 and 4.6% in both 2008 and 2007; and for U.S. policies, 6.1% in both 2009 and 2008 and 6.2% in 2007. Changes in the liability for unpaid policy claims were as follows for the years ended December31: (In millions) 2009 2008 2007 Unpaid supplemental health claims, beginning of year $ 2,959 $ 2,332 $ 2,293 Add claims incurred during the year related to: Current year 6,864 6,127 5,225 Prior years (398 ) (253 ) (401 ) Total incurred 6,466 5,874 4,824 Less claims paid during the year on claims incurred during: Current year 4,683 4,177 3,600 Prior years 1,618 1,476 1,257 Total paid 6,301 5,653 4,857 Effect of foreign exchange rate changes on unpaid claims (19 ) 406 72 Unpaid supplemental health claims, end of year 3,105

NOTES PAYABLE

NOTES PAYABLE
	12 Months Ended Dec. 31, 2009 USD / shares
NOTES PAYABLE	7. NOTES PAYABLE A summary of notes payable as of December31 follows: (In millions) 2009 2008 8.50% senior notes due May 2019 $ 850 $ 6.90% senior notes due December 2039 396 * 6.50% senior notes paid April 2009 450 Yen-denominated Uridashi notes: 1.52% notes due September 2011 (principal amount 15 billion yen) 163 165 2.26% notes due September 2016 (principal amount 8 billion yen in 2009 and 10 billion yen in 2008) 87 110 Variable interest rate notes due September 2011 (.78% at December 2009, principal amount 20 billion yen) 217 220 Yen-denominated Samurai notes: .71% notes due July 2010 (principal amount 39.4 billion yen in 2009 and 40 billion yen in 2008) 428 439 1.87% notes due June 2012 (principal amount 26.6 billion yen in 2009 and 30 billion yen in 2008) 289 329 Yen-denominated loans: 3.60% loan due July 2015 (principal amount 10 billion yen) 109 3.00% loan due August 2015 (principal amount 5 billion yen) 54 Capitalized lease obligations payable through 2015 6 8 Total notes payable $ 2,599 $ 1,721 * $400 issuance net of a $4 underwriting discount that is being amortized over the life of the notes In April 2009, we used internally generated cash flow to pay off our $450 million senior notes upon their maturity. In May 2009, we issued $850 million of senior notes that pay interest semi-annually and have a 10-year maturity. In December 2009, we issued $400 million of senior notes that pay interest semi-annually and have a 30-year maturity. Each issuance of senior notes in 2009 was done through a U.S. public debt offering. The 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. In July 2009, the Parent Company executed a 10 billion yen loan (approximately $109 million using the December31, 2009, exchange rate) at an interest rate of 3.60%. Interest on the loan is payable semiannually, and the loan has a six-year maturity. In August 2009, the Parent Company executed a 5 billion yen loan (approximately $54 million using the December31, 2009, exchange rate) at an interest rate of 3.00%. Interest on the loan is payable semiannually, and the loan has a six-year maturity. The Parent Company issued yen-denominated Samurai notes totaling 30billion yen in June 2007 and 40 billion yen in July 2005. These Samurai notes each have five-year maturities. Each series of Samurai notes pays interest semiannually, may only be redeemed prior to maturity upon the occurrence of a tax event as specified in the respective bond agreement and is not available to U.S. persons. In September2006, the Parent Company issued three tranches of Uridashi notes totaling 45 billion yen. The first

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES	8. INCOME TAXES The components of income tax expense (benefit) applicable to pretax earnings for the years ended December31 were as follows: (In millions) Japan U.S. Total 2009: Current $ 565 $ 265 $ 830 Deferred 62 (154 ) (92 ) Total income tax expense $ 627 $ 111 $ 738 2008: Current $ 409 $ 227 $ 636 Deferred 109 (85 ) 24 Total income tax expense $ 518 $ 142 $ 660 2007: Current $ 450 $ 98 $ 548 Deferred 222 95 317 Total income tax expense $ 672 $ 193 $ 865 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 December31 were as follows: (In millions) 2009 2008 2007 Income taxes based on U.S. statutory rates $ 782 $ 670 $ 875 Utilization of foreign tax credit (29 ) (27 ) (23 ) Nondeductible expenses 11 11 11 Other, net (26 ) 6 2 Income tax expense $ 738 $ 660 $ 865 Total income tax expense for the years ended December31 was allocated as follows: (In millions) 2009 2008 2007 Statements of earnings $ 738 $ 660 $ 865 Other comprehensive income: Change in unrealized foreign currency translation gains (losses) during period 39 (457 ) (82 ) Unrealized gains (losses) on investment securities: Unrealized holding gains (losses) on investment securities during period 728 (716 ) (291 ) Reclassification adjustment for realized (gains) losses on investment securities included in net earnings (424 ) (353 ) (10 ) Pension liability adjustment during period 8 (29 ) 5 Total income tax expense (benefit) allocated to other comprehensive income 351 (1,555 ) (378 ) Additional paid-in capital (exercise of stock options) (3 ) (16 ) (51 ) Total income taxes $ 1,086 $ (911 ) $ 436 Changes in unrealized foreign currency translation gains/losses included a deferred income tax expense of $14 million in 2009, compared with a deferred income tax benefit of $329million in 2008 and $55 million in 2007. The income tax effects of the temporary differences that gave rise to deferred income tax assets and liabilities as of December31 were a

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY
	12 Months Ended Dec. 31, 2009 USD / shares
SHAREHOLDERS' EQUITY	9. SHAREHOLDERS EQUITY The following table is a reconciliation of the number of shares of the Companys common stock for the years ended December31. (In thousands of shares) 2009 2008 2007 Common stock issued: Balance, beginning of year 660,035 658,604 655,715 Exercise of stock options and issuance of restricted shares 1,174 1,431 2,889 Balance, end of year 661,209 660,035 658,604 Treasury stock: Balance, beginning of year 193,420 172,074 163,165 Purchases of treasury stock: Open market 23,201 11,073 Other 264 146 559 Dispositions of treasury stock: Shares issued to AFL Stock Plan (355 ) (1,523 ) (1,400 ) Exercise of stock options (556 ) (413 ) (1,206 ) Other (132 ) (65 ) (117 ) Balance, end of year 192,641 193,420 172,074 Shares outstanding, end of year 468,568 466,615 486,530 Outstanding share-based awards are excluded from the calculation of weighted-average shares used in the computation of basic 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 December31: (In thousands) 2009 2008 2007 Anti-dilutive share-based awards 9,603 2,179 1,695 The weighted-average shares used in calculating earnings per share for the years ended December31 were as follows: (In thousands of shares) 2009 2008 2007 Weighted-average outstanding shares used for calculating basic EPS 466,552 473,405 487,869 Dilutive effect of share-based awards 2,511 5,410 6,102 Weighted-average outstanding shares used for calculating diluted EPS 469,063 478,815 493,971 Share Repurchase Program: During 2009, we did not repurchase shares of our common stock in the open market. In 2008, under share repurchase authorizations from our board of directors, we purchased 23.2million shares of our common stock, funded with internal capital. The total 23.2million shares was comprised of 12.5million shares purchased through an affiliate of Merrill Lynch, Pierce, Fenner Smith Incorporated (Merrill Lynch) and 10.7million shares purchased through Goldman, Sachs Co. (GSCo.). In the first quarter of 2008, we entered into an agreement for an accelerated share repurchase (ASR)program with Merrill Lynch. Under the agreement, we purchased 12.5million shares of our outstanding common stock at $60.61 per share for an initial purchase price of $758million. The shares were acquired as a part of previously announced share repurchase authorizations by our board of directors and are held in treasury. The ASR program was settled during the second quarter of 2008, r

SHARE-BASED TRANSACTIONS

SHARE-BASED TRANSACTIONS
	12 Months Ended Dec. 31, 2009 USD / shares
SHARE-BASED TRANSACTIONS	10. SHARE-BASED TRANSACTIONS As of December31, 2009, 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 and generally vest after three years. The strike price of options granted under this plan is equal to the fair market value of a share of the Companys common stock at the date of grant. Options granted before the plans 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. Generally, the awards vest based upon time-based conditions or time- and performance-based conditions. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. As of December31, 2009, approximately 18.0million 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 expense recognized in connection with share-based awards for the periods ended December31. (In millions, except for per-share amounts) 2009 2008 2007 Earnings from continuing operations $ 38 $ 42 $ 42 Earnings before income taxes 38 42 42 Net earnings 27 29 29 Net earnings per share: Basic $ .06 $ .06 $ .06 Diluted .06 .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 $8.89 for 2009, compared with $17.21 for 2008 and $16.06 in 2007. The following table presents the assumptions used in valuing options granted during the years ended December31.

STATUTORY ACCOUNTING AND DIVIDE

STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS
	12 Months Ended Dec. 31, 2009 USD / shares
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS	11. STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS Our insurance subsidiary is required to report its results of operations and financial position to state insurance regulatory authorities on the basis of statutory accounting practices prescribed or permitted by such authorities. Aflacs statutory financial statements are prepared on the basis of accounting practices prescribed or permitted by the Nebraska Department of Insurance (NEDOI). The NEDOI 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 companys 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 NEDOI has the right to permit other specific practices which deviate from prescribed practices. Aflac has been given explicit permission by the Director of the NEDOI for three 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 Companys 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 Japans 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 utilizes book value accounting for certain guaranteed separate account funding agreements instead of fair value accounting as required by SAP.As of December31, 2009 and 2008, the underlying separate account assets had unrealized losses of $98 million and $150 million, respectively. In 2009, Aflac was granted permission to utilize the services of two Japanese rating agencies Rating and Investment Information, Incorporated (RI) and Japan Credit Rating Agency, Limited (JCR) for rating Aflacs investment holdings in Tohoku Electric Power Company Incorporated (Tohoku). The securities issued by Tohoku are no longer rated by an NAIC Acceptable Rating Organization (ARO), causing NAIC rating downgrades only due to lack of coverage by these organizations. For 2009, there was no impact on surplus due to unrealized losses for this permitted practice as the fair value of these investments exceeds book/adjusted carrying value. There was also no impact on surplus from the calculation of the Asset Valuation Reserve (AVR) on these investments due to the large amount of realized capital losses already in the calculation. A reconciliation of the Companys capital and surplus between SAP and practices permitted by the state of Nebraska is shown below: (In millions) 2009 2008 Capital and surplus, Nebraska state basis $ 5,768 $ 4,601 State Permitted Practice: Refundable lease depositsJapan (

BENEFIT PLANS

BENEFIT PLANS
	12 Months Ended Dec. 31, 2009 USD / shares
BENEFIT PLANS	12. BENEFIT PLANS Our basic employee defined-benefit pension plans cover substantially all of our full-time employees in the United States and Japan. Reconciliations of the funded status of the basic employee defined-benefit pension plans with amounts recognized in the consolidated balance sheets as of December31 were as follows: 2009 2008 (In millions) Japan U.S. Japan U.S. Projected benefit obligation: Benefit obligation, beginning of year $ 169 $ 201 $ 125 $ 186 Service cost 13 10 11 10 Interest cost 4 12 3 11 Actuarial loss (gain) 16 (1 ) (2 ) Benefits paid (3 ) (4 ) (2 ) (4 ) Effect of foreign exchange rate changes (2 ) 33 Benefit obligation, end of year 181 235 169 201 Plan assets: Fair value of plan assets, beginning of year 94 128 79 150 Actual return on plan assets 8 35 (16 ) (48 ) Employer contribution 17 10 14 30 Benefits paid (4 ) (4 ) (2 ) (4 ) Effect of foreign exchange rate changes (1 ) 19 Fair value of plan assets, end of year 114 169 94 128 Funded status $ (67 ) $ (66 ) $ (75 ) $ (73 ) Accumulated benefit obligation $ 156 $ 181 $ 146 $ 151 At December31, 2009, other liabilities included a liability for both plans in the amount of $133 million, compared with $148 million a year ago. In December2008, we pre-funded $10million to the U.S. plan that we had originally planned to contribute in 2009. We accelerated the timing of this contribution to improve the funded status of the plan in light of the effect that market volatility had on plan asset fair values. We plan to make contributions of $18 million to the Japanese plan and $20million to the U.S. plan in 2010. The following table summarizes the amounts included in accumulated other comprehensive income as of December31. 2009 2008 2007 (In millions) Japan U.S. Japan U.S. Japan U.S. Net actuarial loss $ 56 $ 92 $ 64 $ 102 $ 36 $ 47 Prior service cost (credit) (5 ) 1 (5 ) 1 (4 ) 1 Transition obligation 2 2 2 Total $ 53 $ 93 $ 61 $ 103 $ 34 $ 48 The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December31. 200

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
COMMITMENTS AND CONTINGENT LIABILITIES	13. COMMITMENTS AND CONTINGENT LIABILITIES We have three outsourcing agreements with IBM. The first agreement provides mainframe computer operations and support for Aflac Japan. It has a remaining term of six years and an aggregate remaining cost of 17.3 billion yen ($188 million using the December31, 2009, exchange rate). The second agreement provides distributed computer mid-range server operations and support for Aflac Japan. It has a remaining term of six years and an aggregate remaining cost of 20.4 billion yen ($222 million using the December31, 2009, exchange rate). The third agreement provides application maintenance and development services for Aflac Japan. It has a remaining term of three years and an aggregate remaining cost of 4.9 billion yen ($53 million using the December31, 2009, exchange rate). We have an outsourcing agreement with Accenture 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 4.9 billion yen ($53 million using the December31, 2009, exchange rate). We lease office space and equipment under agreements that expire in various years through 2019. Future minimum lease payments due under non-cancelable operating leases at December31, 2009, were as follows: (In millions) 2010 $ 63 2011 45 2012 15 2013 13 2014 12 Thereafter 33 Total future minimum lease payments $ 181 In a strategic marketing effort to continue to reach business decision makers and the large and loyal NASCAR fan base to grow our U.S. business, we entered into an agreement with Roush Fenway for the primary sponsorship of racing driver Carl Edwards for the years 2009 through 2011. As of December31, 2009, the remaining cost of the marketing agreement was $51 million, however contracts with co-sponsors during the remaining term of this agreement will reduce our total cost. 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.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS
	12 Months Ended Dec. 31, 2009 USD / shares
SUBSEQUENT EVENTS	14. SUBSEQUENT EVENTS We evaluated events that occurred subsequent to December31, 2009, for recognition or disclosure in our financial statements and notes to our financial statements.

Unaudited Consolidated Quarterl

Unaudited Consolidated Quarterly Financial Data
	12 Months Ended Dec. 31, 2009 USD / shares
Unaudited Consolidated Quarterly Financial Data	Unaudited Consolidated Quarterly Financial Data In managements 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) March31, 2009 June30, 2009 September30, 2009 December31, 2009 Premium income $ 4,115 $ 3,995 $ 4,165 $ 4,347 Net investment income 688 668 692 717 Realized investment gains (losses) (9 ) (383 ) (347 ) (472 ) Other income 24 33 16 5 Total revenues 4,818 4,313 4,526 4,597 Total benefits and expenses 3,947 3,840 3,977 4,254 Earnings before income taxes 871 473 549 343 Total income tax 302 159 186 92 Net earnings $ 569 $ 314 $ 363 $ 251 Net earnings per basic share $ 1.22 $ .67 $ .78 $ .54 Net earnings per diluted share 1.22 .67 .77 .53 March31, 2008 June30, 2008 September30, 2008 December31, 2008 Premium income $ 3,635 $ 3,684 $ 3,647 $ 3,981 Net investment income 627 637 637 677 Realized investment gains (losses) (7 ) (1 ) (597 ) (402 ) Other income 12 16 4 4 Total revenues 4,267 4,336 3,691 4,260 Total benefits and expenses 3,541 3,596 3,543 3,959 Earnings before income taxes 726 740 148 301 Total income tax 252 257 48 104 Net earnings $ 474 $ 483 $ 100 $ 197 Net earnings per basic share $ .99 $ 1.02 $ .21 $ .42 Net earnings per diluted share .98 1.00 .21 .42 Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding.

SCHEDULE II CONDENSED FINANCIAL

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT	SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Statements of Earnings YearsendedDecember31, (In millions) 2009 2008 2007 Revenues: Dividends from subsidiaries* $ 464 $ 1,062 $ 1,363 Management and service fees from subsidiaries* 124 71 80 Net investment income 9 20 31 Interest from subsidiaries* 9 6 6 Realized investment gains (losses) (4 ) Change in fair value of the interest rate component of the cross-currency swaps (4 ) (5 ) 4 Other income (loss) (11 ) Total revenues 591 1,150 1,484 Operating expenses: Interest expense 73 26 21 Other operating expenses 65 61 57 Total operating expenses 138 87 78 Earnings before income taxes and equity in undistributed earnings of subsidiaries 453 1,063 1,406 Income tax expense (benefit): Current 13 (2 ) 1 Deferred (4 ) (3 ) (2 ) Total income taxes 9 (5 ) (1 ) Earnings before equity in undistributed earnings of subsidiaries 444 1,068 1,407 Equity in undistributed earnings of subsidiaries* 1,053 186 227 Net earnings $ 1,497 $ 1,254 $ 1,634 * Eliminated in consolidation 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 December31, (In millions, except for share and per-share amounts) 2009 2008 Assets: Investments and cash: Fixed maturity securities available for sale, at fair value (amortized cost $118 in 2009 and $111 in 2008) $ 117 $ 100 Investments in subsidiaries* 10,287 8,078 Other investments 7 7 Cash and cash equivalents 498 258 Total investments and cash 10,909 8,443 Due from subsidiaries* 146 131 Other assets 73 84 Total assets $ 11,128 $ 8,658 Liabilities and Shareholders Equity: Liabilities: Notes payable $ 2,657 $ 1,713 Employee benefit plans 153 222 Income taxes (213 ) (238 ) Other liabilities 114 322 Total liabilities 2,711 2,019 Shareholders Equity: Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2009 and 2008; issue

SCHEDULE III SUPPLEMENTARY INSU

SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION	SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION Aflac Incorporated and Subsidiaries Years ended December31, (In millions) DeferredPolicy Acquisition Costs FuturePolicy BenefitsUnpaid Policy Claims Unearned Premiums Other Policyholders Funds 2009: Aflac Japan $ 5,846 $ 57,966 $ 818 $ 3,271 Aflac U.S. 2,687 6,802 108 277 All other 3 Total $ 8,533 $ 64,771 $ 926 $ 3,548 2008: Aflac Japan $ 5,644 $ 56,051 $ 764 $ 2,651 Aflac U.S. 2,593 6,375 110 265 All other 2 1 Total $ 8,237 $ 62,428 $ 874 $ 2,917 See the accompanying Report of Independent Registered Public Accounting Firm. Segment amounts may not agree in total to the corresponding consolidated amounts due to rounding. Years Ended December31, (In millions) Premium Revenue Net Investment Income Benefits and Claims Amortizationof Deferred Policy Acquisition Costs Other Operating Expenses Premiums Written 2009: Aflac Japan $ 12,178 $ 2,265 $ 8,746 $ 523 $ 2,417 $ 12,485 Aflac U.S. 4,444 499 2,561 419 1,197 4,443 All other 1 1 155 Total $ 16,622 $ 2,765 $ 11,308 $ 942 $ 3,769 $ 16,928 2008: Aflac Japan $ 10,674 $ 2,053 $ 7,972 $ 405 $ 2,115 $ 10,786 Aflac U.S. 4,272 505 2,527 370 1,145 4,277 All other 1 20 106 Total $ 14,947 $ 2,578 $ 10,499 $ 775 $ 3,366 $ 15,063 2007: Aflac Japan $ 9,037 $ 1,801 $ 6,935 $ 318 $ 1,791 $ 9,069 Aflac U.S. 3,936 500 2,350 322 1,081 3,946 All other 32 97 Total $ 12,973 $ 2,333 $ 9,285 $ 640 $ 2,969 $ 13,015 See the accompanying Report of Independent Registered Public Accounting Firm. Segment amounts may not agree in total to the corresponding consolidated amounts due to rounding.

SCHEDULE IV REINSURANCE

SCHEDULE IV REINSURANCE
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE IV REINSURANCE	SCHEDULE IV REINSURANCE Aflac Incorporated and Subsidiaries Years Ended December31, (In millions) Gross Amount Ceded to Other Companies Assumed from Other companies Net Amount Percentage of Amount Assumed to Net 2009: Life insurance in force $ 128,649 $ 3,594 $ 5 $ 125,060 % Premiums: Health insurance $ 14,759 $ 4 $ 6 $ 14,761 % Life insurance 1,872 13 1 1,860 Totalearnedpremiums $ 16,631 $ 17 $ 7 $ 16,621 % 2008: Life insurance in force $ 123,200 $ 3,728 $ $ 119,472 % Premiums: Health insurance $ 13,363 $ 2 $ $ 13,361 % Life insurance 1,598 12 1,586 Totalearnedpremiums $ 14,961 $ 14 $ $ 14,947 % 2007: Life insurance in force $ 98,027 $ 2,884 $ $ 95,143 % Premiums: Health insurance $ 11,650 $ $ $ 11,650 % Life insurance 1,335 12 1,323 Totalearnedpremiums $ 12,985 $ 12 $ $ 12,973 % See the accompanying Report of Independent Registered Public Accounting Firm. Premiums by type may not agree in total to the corresponding consolidated amounts due to rounding.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 22, 2010	Jun. 30, 2009
Trading Symbol	AFL
Entity Registrant Name	Aflac Incorporated
Entity Central Index Key	0000004977
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		469,135,203
Entity Public Float			$14,288,970,560