| DEFERRED POLICY ACQUISITION COSTS The following tables present a rollforward of deferred policy acquisition costs by reporting segment and disaggregated by product type. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | Aflac Japan | | Aflac U.S. | | | | (In millions) | Cancer | Medical
and Other
Health | Life
Insurance | Other | | Accident | Disability | Critical
Care | Hospital
Indemnity | Dental/
Vision | Life
Insurance | Other | | Total | | Deferred policy acquisition costs: | | | | | | | | | | | | | | | Balance at December 31, 2024 | $ | 2,776 | | $ | 1,833 | | $ | 441 | | $ | 52 | | | $ | 915 | | $ | 636 | | $ | 1,348 | | $ | 452 | | $ | 86 | | $ | 219 | | $ | 0 | | | $ | 8,758 | | | Capitalization | 139 | | 46 | | 17 | | 2 | | | 65 | | 61 | | 78 | | 42 | | 6 | | 47 | | 0 | | | 503 | | | Amortization expense | (94) | | (51) | | (17) | | (2) | | | (72) | | (61) | | (77) | | (38) | | (6) | | (19) | | 0 | | | (437) | | | | | | | | | | | | | | | | | Foreign currency translation and
other | 257 | | 170 | | 41 | | 4 | | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | | 472 | | Balance at June 30, 2025 | $ | 3,078 | | $ | 1,998 | | $ | 482 | | $ | 56 | | | $ | 908 | | $ | 636 | | $ | 1,349 | | $ | 456 | | $ | 86 | | $ | 247 | | $ | 0 | | | $ | 9,296 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | Aflac Japan | | Aflac U.S. | | | | (In millions) | Cancer | Medical
and Other
Health | Life
Insurance | Other | | Accident | Disability | Critical
Care | Hospital
Indemnity | Dental/
Vision | Life
Insurance | Other | | Total | | Deferred policy acquisition costs: | | | | | | | | | | | | | | | Balance at December 31, 2023 | $ | 2,971 | | $ | 2,041 | | $ | 491 | | $ | 56 | | | $ | 917 | | $ | 625 | | $ | 1,336 | | $ | 436 | | $ | 86 | | $ | 172 | | $ | 1 | | | $ | 9,132 | | | Capitalization | 300 | | 103 | | 36 | | 4 | | | 141 | | 129 | | 165 | | 89 | | 12 | | 77 | | 0 | | | 1,056 | | | Amortization expense | (184) | | (100) | | (34) | | (3) | | | (143) | | (118) | | (153) | | (73) | | (12) | | (30) | | (1) | | | (851) | | | | | | | | | | | | | | | | | Foreign currency translation and
other | (311) | | (211) | | (52) | | (5) | | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | | (579) | | Balance at December 31, 2024 | $ | 2,776 | | $ | 1,833 | | $ | 441 | | $ | 52 | | | $ | 915 | | $ | 636 | | $ | 1,348 | | $ | 452 | | $ | 86 | | $ | 219 | | $ | 0 | | | $ | 8,758 | |
The Company uses the following constant level bases to amortize deferred policy acquisition costs: | | | | | | | | | | Policy Type | | Constant-level Basis | | Life Products (U.S.) | | Face Amount | | Health Products (U.S.) | | Number of Policies in Force | | Health & Life Products (Japan) | | Units in Force |
Face amount is the stated dollar amount that the policy’s beneficiaries receive upon the death of the insured. For life and health products issued in Japan, the constant-level basis used is units in force, which is a proxy for face amount and insurance in force, respectively. Future DAC amortization is impacted by persistency.
There were no changes to the inputs, judgments, assumptions or methods used to determine amortization amounts during the six-month periods ended June 30, 2025 and 2024. For additional information on deferred policy acquisition costs, see Notes 1 and 6 of the Notes to the Consolidated Financial Statements in the 2024 Annual Report.
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