107 / 188
2015
(In millions)
Cost or
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Securities held to maturity, carried at amortized cost:
Fixed maturities:
Yen-denominated:
Japan government and agencies
$ 20,004
$ 3,387
$ 0
$ 23,391
Municipalities
341
74
0
415
Mortgage- and asset-backed securities
36
2
0
38
Public utilities
3,092
205
94
3,203
Sovereign and supranational
2,555
182
26
2,711
Banks/financial institutions
4,431
168
53
4,546
Other corporate
3,000
260
44
3,216
Total yen-denominated
33,459
4,278
217
37,520
Total securities held to maturity
$ 33,459
$ 4,278
$ 217
$ 37,520
The methods of determining the fair values of our investments in fixed-maturity securities, perpetual securities and
equity securities are described in Note 5.
Beginning in 2015 and continuing into 2016, we increased our investment in yen-denominated publicly traded equity
securities. In 2016, we also increased our investment in U.S. dollar-denominated publicly traded equity securities. These
securities are classified as available for sale and carried on our balance sheet at fair value.
During 2016 and 2015, we did not reclassify any investments from the held-to-maturity category to the available-for-
sale category. During 2014, we reclassified three investments from the held-to-maturity category to the available-for-sale
category as a result of the issuers being downgraded to below investment grade. At the time of the transfer, the securities
had an aggregate amortized cost of $424 million and an aggregate unrealized loss of $54 million.
105
Contractual and Economic Maturities
The contractual maturities of our investments in fixed maturities at December 31, 2016, were as follows:
Aflac Japan
Aflac U.S.
(In millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available for sale:
Due in one year or less
$ 180
$ 204
$ 103
$ 105
Due after one year through five years
3,441
3,696
617
668
Due after five years through 10 years
9,374
9,694
2,860
3,018
Due after 10 years
39,461
45,125
8,545
9,411
Mortgage- and asset-backed securities
1,144
1,184
43
48
Total fixed maturities available for sale
$ 53,600
$ 59,903
$ 12,168
$ 13,250
Held to maturity:
Due after one year through five years
2,009
2,112
0
0
Due after five years through 10 years
1,584
1,737
0
0
Due after 10 years
29,727
36,140
0
0
Mortgage- and asset-backed securities
30
32
0
0
Total fixed maturities held to maturity
$ 33,350
$ 40,021
$ 0
$ 0
At December 31, 2016, the Parent Company and other business segments had portfolios of available-for-sale fixed-
maturity securities totaling $595 million at amortized cost and $607 million at fair value, which are not included in the table
above.