8-KRegulation FDExhibits & Filings

AFLAC INC 8-K Report, Regulation FD Disclosure (Feb 27, 2023)

Filed February 27, 2023For Securities:AFL

Summary

Aflac Incorporated (AFL) filed an 8-K on February 27, 2023, to update its Financial Analysts Briefing (FAB) Supplement for the period ending December 31, 2022. The primary purpose of this update is to reflect the impact of adopting new accounting standards for long-duration insurance contracts, specifically the Financial Accounting Standards Board's Accounting Standard Update 2018-12, also known as LDTI. This adoption, effective January 1, 2023, with a transition date of January 1, 2021, required retrospective adjustments to certain 2021 and 2022 data presented in the FAB Supplement. Investors should note that these adjustments are for comparative purposes and do not alter Aflac's reported net earnings.

Key Highlights

  • 1Aflac is voluntarily updating its Financial Analysts Briefing (FAB) Supplement to reflect the adoption of new accounting standards for long-duration insurance contracts (LDTI).
  • 2The LDTI adoption is effective January 1, 2023, with a transition date of January 1, 2021, impacting prior period data (2021 and 2022) in the FAB Supplement.
  • 3The update provides adjusted comparative data for the period ended December 31, 2022.
  • 4A change in presentation for the deferred profit liability on limited-payment products will move from 'benefits and claims, net' to 'net earned premiums'.
  • 5This presentation change is prospective and does not impact Aflac's net earnings.
  • 6The updated FAB Supplement (adjusted for LDTI) is furnished as Exhibit 99.1.
  • 7Information furnished under Item 7.01 is not considered 'filed' under Section 18 of the Exchange Act.

Frequently Asked Questions

The main reason for this filing is to update Aflac's Financial Analysts Briefing Supplement to reflect the impact of adopting new accounting standards for long-duration insurance contracts (LDTI) on certain 2021 and 2022 data.

LDTI stands for the Financial Accounting Standards Board’s Accounting Standard Update 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts. Aflac adopted these standards as of January 1, 2023, with a transition date of January 1, 2021.

No, the adoption of LDTI and the related change in presentation for the deferred profit liability will not impact Aflac's net earnings. These adjustments are primarily for comparative and disclosure purposes under the new accounting rules.

The updated Financial Analysts Briefing Supplement, adjusted for the LDTI adoption, is provided as Exhibit 99.1 to this 8-K filing.