| DEFERRED POLICY ACQUISITION COSTS |
DEFERRED POLICY ACQUISITION COSTS The following tables present a rollforward of deferred policy acquisition costs by reporting segment and disaggregated by product type. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | 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, 2025 | $ | 2,965 | | $ | 1,840 | | $ | 446 | | $ | 51 | | | $ | 909 | | $ | 641 | | $ | 1,355 | | $ | 463 | | $ | 87 | | $ | 277 | | $ | 0 | | | $ | 9,034 | | | Capitalization | 258 | | 71 | | 31 | | 1 | | | 96 | | 89 | | 111 | | 61 | | 9 | | 96 | | 0 | | | 823 | | | Amortization expense | (140) | | (68) | | (23) | | (2) | | | (109) | | (92) | | (119) | | (61) | | (9) | | (36) | | 0 | | | (659) | | | | | | | | | | | | | | | | | Foreign currency translation and
other | (14) | | (9) | | (2) | | 0 | | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | | (25) | | Balance at September 30, 2026 | $ | 3,069 | | $ | 1,834 | | $ | 452 | | $ | 50 | | | $ | 896 | | $ | 638 | | $ | 1,347 | | $ | 463 | | $ | 87 | | $ | 337 | | $ | 0 | | | $ | 9,173 | | | Short-duration contracts | | | | | | | | | | | | | | 13 | | | Total | | | | | | | | | | | | | | $ | 9,186 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 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 | 357 | | 85 | | 33 | | 3 | | | 137 | | 127 | | 162 | | 90 | | 13 | | 98 | | 0 | | | 1,105 | | | Amortization expense | (188) | | (99) | | (33) | | (3) | | | (143) | | (122) | | (155) | | (79) | | (12) | | (40) | | 0 | | | (874) | | | | | | | | | | | | | | | | | Foreign currency translation and
other | 20 | | 21 | | 5 | | (1) | | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | | 45 | | Balance at December 31, 2025 | $ | 2,965 | | $ | 1,840 | | $ | 446 | | $ | 51 | | | $ | 909 | | $ | 641 | | $ | 1,355 | | $ | 463 | | $ | 87 | | $ | 277 | | $ | 0 | | | $ | 9,034 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
There were no changes to the inputs, judgments or methods used to determine amortization amounts during the nine-month periods ended September 30, 2026 and 2025. During the nine-month periods ended September 30, 2026 and 2025, the Company updated the assumptions used to determine amortization using the same assumptions as those used for measuring the liability for future policy benefits. The Company recognizes the effects of changes in assumptions prospectively over the remaining contract term as a revision of the future amortization pattern. For additional information on deferred policy acquisition costs, see Notes 1 and 6 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.
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