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Aflac Incorporated Form 8-K EXHIBIT 99.1 Aflac Incorporated Announces Third Quarter Results,

The following excerpt is from the company's SEC filing.

Affirms 2015 Operating EPS Objective,

Upwardly Revises Aflac Japan Third Sector Sales Target,

Increases Fourth Quarter Cash Dividend 5.1%

Reflecting the weaker yen/dollar exchange rate, total revenues decreased 12.1% to $5.0 billion during the third quarter of 2015, compared with $5.7 billion in the third quarter of 2014. Net earnings were $567 million, or $1.32 per diluted share, compared with $706 million, or $1.56 per share, a year ago.

Net earnings in the third quarter of 2015 i ncluded after-tax net realized investment losses of $88 million, or $.20 per diluted share, compared with net after-tax gains of $4 million, or $.01 per diluted share, a year ago. After-tax realized investment losses from impairments in the quarter were $89 million, or $.20 per diluted share. Investment losses for the quarter were primarily related to the impairment of a single holding. After-tax realized investment gains net of losses from securities transactions in the quarter were $17 million, or $.04 per diluted share. Hedging costs related to certain dollar investments of Aflac Japan on an after-tax basis were $18 million in the quarter, or $.04 per diluted share. Realized after-tax net investment gains from other derivative and hedging activities in the quarter were $2 million, or nil per diluted share.

In addition, net earnings included an after-tax loss of $17 million, or $.04 per diluted share, from other and nonrecurring items.

Aflac believes that an analysis of operating earnings, a non-GAAP financial measure, is vitally important to an understanding of the company’s underlying profitability drivers. Aflac defines operating earnings as the profits derived from operations, inclusive of interest cash flows associated with notes payable, but before realized investment gains and losses from securities transactions, impairments, and derivative and hedging activities, as well as other and nonrecurring items. Aflac's derivative activities are primarily used to hedge foreign exchange and interest rate risk in the company’s investment portfolio as well as manage foreign exchange risk in certain notes payable and forecasted cash flows denominated in yen. Management uses operating earnings to evaluate the financial performance of Aflac’s insurance operations because realized gains and losses from securities transactions, impairments, and derivative and hedging activities, as well as other and nonrecurring items, tend to be driven by general economic conditions and events or related to infrequent activities not directly associated with the company’s insurance operations, and therefore may obscure the underlying fundamentals and trends in Aflac’s insurance operations.

Furthermore, because a significant portion of Aflac's business is in Japan, where the functional currency is the yen, the company believes it is equally important to understand the impact on operating earnings from translating yen into dollars. Aflac Japan’s yen-denominated income statement is translated from yen into dollars using an average exchange rate for the reporting period, and the balance sheet is translated using the exchange rate at the end of the period. However, except for certain transactions such as profit repatriation and the Aflac Japan dollar investment program, the company does not actually convert yen into dollars. As a result, Aflac views foreign currency translation as a financial reporting issue rather than an economic event for the company or its shareholders. Because changes in exchange rates distort the growth rates of operations, readers of Aflac's financial statements are also encouraged to evaluate financial performance excluding the impact of foreign currency translation. The chart toward the end of this release presents a comparison of selected income statement items with and without foreign currency changes to illustrate the effect of currency.

The average yen/dollar exchange rate in the third quarter of 2015 was 122.15, or 14.9% weaker than the average rate of 103.92 in the third quarter of 2014. For the first nine months, the average exchange rate was 120.81, or 14.8% weaker than the rate of 102.89 a year ago. Aflac Japan’s growth rates in dollar terms for the third quarter and first nine months were suppressed as a result of the weaker yen/dollar exchange rate.

Operating earnings in the third quarter were $672 million, compared with $685 million in the third quarter of 2014. Operating earnings per diluted share in the quarter increased by 3.3% from a year ago to $1.56. The weaker yen/dollar exchange rate decreased operating earnings per diluted share by $.13 for the third quarter. Excluding the impact from the weaker yen, operating earnings per diluted share increased 11.9%.

Results for the first nine months of 2015 were also suppressed by the weaker yen. Total revenues were down 9.6% to $15.6 billion, compared with $17.2 billion in the first nine months of 2014. Net earnings were $1.8 billion, or $4.14 per diluted share, compared with $2.2 billion, or $4.93 per diluted share, for the first nine months of 2014. Operating earnings for the first nine months of 2015 were $2.0 billion, or $4.60 per diluted share, compared with $2.2 billion, or $4.86 per diluted share, in 2014. Excluding the negative impact of $.40 per share from the weaker yen, operating earnings per diluted share increased 2.9% for the first nine months of 2015.

Total investments and cash at the end of September 2015 were $104.9 billion, compared with $103.3 billion at June 30, 2015.

In the third quarter, Aflac repurchased $233 million, or 3.9 million shares, of its common stock. For the first nine months of the year, the company repurchased $1.1 billion, or 17.4 million of its shares. At the end of September, the company had 52.1 million shares available for purchase under its share repurchase authorizations.

Shareholders’ equity was $17.3 billion, or $40.36 per share, at September 30, 2015, compared with $17.0 billion, or $39.52 per share, at June 30, 2015. Shareholders’ equity at the end of the third quarter included a net unrealized gain on investment securities and derivatives of $3.2 billion, compared with a net unrealized gain of $3.4 billion at the end of June 2015. The annualized return on average shareholders’ equity in the third quarter was 13.2%. On an operating basis (excluding total net realized investment gains/losses in net...


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