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Aflac AFL Hospital indemnity — Effect of changes in discount rate assumptions

Other product segments

Medical and other health
-$1.58B-156%
Life insurance
-$390M-222%
Critical care
-$352M+3.3%
Accident
-$147M-2.8%
Other
$75M+725%
Disability
-$64M-8.5%
Dental/vision
-$9M0.0%

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EQHHealth — Effect of changes in discount rate assumptions
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Other financials

Income statement

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Revenue$4.1B-1.0%
Net income$825.0M+37.7%
EPS (diluted)$1.63+46.8%

Balance sheet

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Cash & equivalents$6.1B-12.1%
Total debt$8.8B-2.4%
Total equity$30.3B+11.4%
Total assets$115.96B-7.0%

Cash flow

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Operating cash flow$112.0M-71.9%

Valuation

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Market cap$63.91B+16.8%
Enterprise value$66.6B+17.3%
P/E13.1×-9.3×
P/S3.5×+0.1×

Profitability

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Net margin26.9%+11.6pp

Returns & leverage

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Return on equity16.9%+7.8pp
Debt / equity0.3×0.0×

Where this comes from

Reported directly by Aflac in its filing.

Tagged under the XBRL concept us-gaap:AociLiabilityForFuturePolicyBenefitExpectedNetPremiumBeforeTax.

The source filing: Aflac’s 10-Q, filed August 7, 2026.

Filed
Aug 7, 2026, 9:18 AM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001628280-26-054618
(In millions)Aflac Japan / CancerAflac Japan / Medicaland Other HealthAflac Japan / Life InsuranceAflac Japan / OtherAflac U.S. / AccidentAflac U.S. / DisabilityAflac U.S. / Critical CareAflac U.S. / Hospital IndemnityAflac U.S. / Dental/VisionAflac U.S. / Life InsuranceAflac U.S. / Other
Foreign currency translation(467)(403)(165)(27)0000000
Other0(1)00(2)(2)(2)(1)0(3)(1)
Ending balance at original discount rate12,45310,7584,4337322,6021,7474,2931,2522121,1282,316
Effect of changes in discount rate assumptions(1,467)(1,577)(350)(96)(147)(64)(352)(74)(9)(40)171
Balance at June 30, 2026$10,986$9,181$4,083$636$2,455$1,683$3,941$1,178$203$1,088$2,487
Present value of expected future policy benefits:
Balance at December 31, 2025$34,987$17,692$20,894$3,671$3,184$2,336$10,845$1,955$438$2,076$2,444
Beginning balance at original discount rate36,43821,97925,7164,7583,3482,40111,8122,0714582,2882,304

Item 1. Financial Statements (Unaudited)

FAQ

What is Aflac's hospital indemnity — effect of changes in discount rate assumptions?
Aflac (AFL) reported hospital indemnity — effect of changes in discount rate assumptions of -$74M in Q2 2026.
How has Aflac's hospital indemnity — effect of changes in discount rate assumptions changed year-over-year?
Aflac's hospital indemnity — effect of changes in discount rate assumptions increased by 3.9% year-over-year, from -$77M to -$74M.
What is the long-term trend for Aflac's hospital indemnity — effect of changes in discount rate assumptions?
Over 2 years (2023 to 2025), Aflac's hospital indemnity — effect of changes in discount rate assumptions has grown at a -23.2% compound annual growth rate (CAGR), from -$482M to -$284M.
What does hospital indemnity — effect of changes in discount rate assumptions mean?
The financial impact resulting from adjusting the discount rate used to calculate the present value of future policy benefits for the hospital indemnity segment. Changes in this rate reflect shifts in market interest rates or long-term economic expectations.

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