Reflecting the benefit from a stronger yen/dollar exchange rate, revenues rose 11.0% to$6.0 billionin the third quarter of 2011, compared with$5.4 billionin the third quarter of 2010. Net earnings were$744 million, or$1.59per diluted share, compared with$690 million, or$1.46per share, a year ago.

AFLAC U.S.

Aflac U.S. total revenues rose 4.0% to$1.3 billionin the third quarter. Premium income increased 3.7% to$1.2 billion, and net investment income was up 7.1% to$147 million. Pretax operating earnings were$220 million, a decrease of 3.8%. For the first nine months, total revenues were up 3.7% to$4.0 billionand premium income rose 3.2% to$3.5 billion. Net investment income increased 8.5% to$439 million. Pretax operating earnings were$719 million, or 2.7% higher than a year ago.

Aflac U.S. sales performed well for the third consecutive quarter as targeted product and field force recruiting initiatives continued to take hold. In the third quarter, new sales increased 5.0% to$340 million. Field force recruiting benefited from targeted national advertising campaigns, generating a 10.4% increase in recruits for the third quarter and 11.4% for the nine months. For the nine months, total new sales increased 5.7% to$1.0 billion.

AFLACJAPAN

Aflac Japan's total revenues in yen were up 4.8% in the third quarter of 2011. Premium income in yen rose 5.4%, and net investment income increased .9%. Investment income growth in yen terms was suppressed by the stronger yen/dollar exchange rate because approximately 34% of Aflac Japan's third quarter investment income was dollar-denominated. The pretax operating profit margin remained relatively unchanged from the third quarter of 2010 at 21.7%, and pretax operating earnings in yen increased 7.5%. For the first nine months of the year, premium income in yen increased 5.1%, and net investment income declined 1.6%. Total revenues in yen were up 4.1%, and pretax operating earnings grew 6.5%.

The average yen/dollar exchange rate in the third quarter of 2011 was 77.78, or 10.2% stronger than the average rate of 85.74 in the third quarter of 2010. For the first nine months, the average exchange rate was 80.48, or 11.0% stronger than the rate of 89.33 a year ago. Aflac Japan's growth rates in dollar terms for both the third quarter and first nine months were magnified as a result of the stronger average yen/dollar exchange rates.

Reflecting the stronger yen, premium income in dollars rose 16.3% to$4.0 billionin the third quarter. Net investment income was up 11.3% to$695 million. Total revenues increased 15.5% to$4.7 billion. Pretax operating earnings rose 18.5% to$1.0 billion. For the first nine months, premium income was$11.5 billion, or 16.7% higher than a year ago. Net investment income rose 9.4% to$2.0 billion. Total revenues were up 15.5% to$13.5 billion. Pretax operating earnings were$2.9 billion, or 18.2% higher than a year ago.

Aflac Japan again produced better-than-expected sales results. New annualized premium sales rose 22.2% to42.3 billion yenin the third quarter of 2011. In dollar terms, new annualized premium sales were$544 million. Bank channel sales were again very strong, generating14.5 billion yenin sales in the third quarter, which is an increase of 146.6% over the third quarter of 2010. Sales of WAYS, the unique hybrid whole-life product, increased 362.8% over the third quarter of 2010. As expected, the intense focus on WAYS, which is particularly popular through the bank channel, impacted child endowment sales, which were down 8.0% for the quarter. Following theMarch 2011introduction of the new base cancer policy DAYS, cancer sales increased 8.5% over the third quarter of 2010.

For the first nine months of the year, new annualized premium sales were up 13.9% to112.5 billion yen, or$1.4 billion.

DIVIDEND

The board of directors declared the fourth quarter cash dividend. The fourth quarter dividend of$.33per share is payable onDecember 1, 2011, to shareholders of record at the close of business onNovember 16, 2011. This represents a 10.0% increase in the quarterly cash dividend effective with the fourth quarter payment.

OUTLOOK

Commenting on the company's third quarter results, Chairman and Chief Executive OfficerDaniel P. Amosstated: "We are pleased with our overall results in the third quarter of 2011. Aflac Japan sales greatly exceeded our expectations, largely because of our ability to develop relevant products such as WAYS that appeal to banks and Japanese consumers alike. We are proud of Aflac Japan's remarkable results, especially following two years of exceptional sales growth and the challenges in 2011 resulting from the most devastating natural disaster inJapan's history. Our outstanding sales results in 2011 will create difficult comparisons in 2012.

"We were also pleased that Aflac U.S. continued to generate strong sales results, despite the continued weakness in the U.S. economy. Strategic coordination between our sales and marketing areas, which are more closely aligned than ever, continues to benefit our sales results. On the product side, sales have benefited significantly from the addition of group products to our Aflac U.S. product portfolio and strategic, coordinated sales and marketing efforts. On the distribution side, Aflac U.S. has continued to generate significant recruiting gains, which we believe benefited from targeted advertising activities that promote the Aflac sales opportunity. As a result of our positive performance in bothJapanand the U.S., we posted strong consolidated financial results.

"As we have communicated over the past several years, maintaining a strong risk-based capital, or RBC ratio, remains a top priority for us. Although we have not yet completed our statutory financial statements for the third quarter, we estimate our RBC ratio will be within the range of 500% and 540% at the end of September. Our strong capital position has enabled us to increase our cash dividend for the 29th consecutive year. I am very pleased with the action by the board of directors to increase the quarterly dividend by 10.0%, effective with the fourth quarter of 2011. Our objective is to grow the dividend at a rate that's in line with or somewhat better than earnings-per-share growth.

"With three quarters of the year complete, we continue to believe we are positioned for another year of solid financial performance. Throughout the year, both Aflac Japan and Aflac U.S. have continued to do a very good job managing our operations, including expense control. As we have stated previously, our expectation was to increase spending in the last half of the year, particularly on marketing and IT initiatives in the fourth quarter. Despite our expectation for higher spending in the fourth quarter, I am confident we will achieve our 2011 objective of growing operating earnings per diluted share at 8%, excluding the impact of the yen. If the yen averages 75 to 80 to the dollar for the last three months of the year, we would expect reported operating earnings for the fourth quarter to be in the range of$1.45 to $1.52per diluted share. Under that exchange rate assumption, we would expect full year operating earnings of$6.30 to $6.37per diluted share.

"Looking ahead, I want to reiterate our expectation that 2012 operating earnings per diluted share will increase 2% to 5% on a currency neutral basis. Furthermore, once the effects of our proactive investment derisking program and low interest rates have been integrated into our financial results, we believe the rate of earnings growth in future years should improve."