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Aflac Incorporated Year in Review 2015 | 9
YEN
WEAKENING
YEN
STRENGTHENING
Source: Bloomberg ©
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
90
100
80
70
110
120
¥130
Year-End Yen/Dollar Exchange Rates
Impact of Currency on the Balance Sheet
Aflac primarily holds yen-denominated assets to support the large
amount of yen-denominated liabilities in Japan. Except for certain
transactions, Aflac does not convert yen into dollars. Aflac’s balance
sheet is translated using the exchange rate at the end of the period.
Given the recent weakening of the yen, Aflac’s balance sheet was
likewise only slightly suppressed in dollar terms. The year-end
exchange rate for 2015 weakened .05% from the prior year to 120.61
yen to the dollar. Both including and excluding the impact from the
yen, total assets at the end of December 2015 were $118.3 billion.
earnings, a weaker yen suppresses Aflac Incorporated’s results
as reported in dollars. After several years of strengthening, the
yen weakened in 2013, 2014 and 2015. It is important to
note that as the yen weakened, our sensitivity to the yen has
decreased. Additionally, the portion of our pretax operating
income from dollar-denominated sources has increased to
more than 50% of the total.
118.3118.3
2015 2015
As Reported
Excluding Yen Impact
06 07 08 09 10 11 12 13 14 15
131.1
59.8
65.8
79.3 8 4.1
100.2
116.2
121.3
118.3
U.S.
Japan
119.8
Total Assets
(Dollars, In Billions)
Total assets
declined 1.2% to
$118.3 billion at
the end of 2015.