AFL
Aflac Incorporated
Is AFL Halal?
Conventional commercial insurance is the core activity, and Aflac's current fixed-income liquidity and investment-income ratios exceed the examined asset-based limits.
What You Should Know
Aflac's March 31, 2026 Form 10-Q reports $116,280 million of total assets, $7,822 million of notes payable excluding leases, $5,654 million of cash, $88,750 million of identifiable fixed-maturity securities and commercial mortgage or other loans, $1,642 million of receivables including accrued investment income, and $4,346 million of quarterly revenue. Those inputs produce debt/assets of 6.73%, cash plus interest-bearing securities/assets of 81.19%, receivables plus cash/assets of 6.27% and net investment income/revenue of 22.00% on a conservative upper-bound treatment. Net earned premiums were $3,310 million, or 76.16% of revenue, as a disclosed proxy for the core conventional-insurance activity. This is a current ZakatInvest calculation, not an index-membership claim.
⚠️ Concerns
- •Aflac Japan and Aflac US are conventional commercial-insurance operations rather than takaful mutual-protection funds; the retained mainstream analysis treats the core activity as a business-screen failure
- •Identifiable fixed-income liquidity is 81.19% of total assets, above the examined 33% asset-based limits; equity securities and the separately reported other-investments balance are not silently included
- •Net investment income is 22.00% of revenue on a conservative upper-bound treatment because the filing does not isolate a pure interest-only numerator; no fixed scholar-approved purification percentage is asserted
- •Conventional insurance raises gharar and risk-transfer concerns under the retained mainstream analysis, while some necessity-based scholarly views may assess particular insurance needs differently
- •The June 30, 2026 Aflac Japan cybersecurity disclosure reported unauthorized access to certain systems and an ongoing investigation; privacy, regulatory and remediation impacts remain qualitative diligence topics
- •Market-cap denominator methods are not calculated without a licensed historical market-cap series
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
7,822 / 116,280
94,404 / 116,280
7,296 / 116,280
956 / 4,346
- Financial
- Fails
- Overall
- Fails
Debt is 6.73%, liquidity is 81.19% and receivables plus cash are 6.27%; identifiable liquidity exceeds the examined 33.333% asset limit. Net investment income is 22.00% of revenue on a conservative upper-bound treatment, while conventional insurance independently fails the business screen.
- Financial
- Fails
- Overall
- Fails
Debt is 6.73% and receivables plus cash are 6.27%, but identifiable fixed-income liquidity is 81.19%, above the examined MSCI total-assets limit. Conventional insurance independently fails the business-activity screen; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Identifiable fixed-income liquidity is 81.19% of assets, above the examined 33% Malaysia SAC financial limit. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security; conventional insurance also fails the business screen.
- Financial
- Not calculated
- Overall
- Fails
Historical market-cap ratios are not calculated, but a different denominator cannot cure the independently failed conventional-insurance business-activity screen.
Business-activity disclosure
Aflac is a conventional commercial insurer operating Aflac Japan and Aflac US supplemental-health, cancer, accident, disability, dental, life and annuity businesses. Net earned premiums were $3,310 million, or 76.16% of first-quarter revenue. Under the retained mainstream qualitative analysis, conventional risk-transfer insurance raises gharar and maysir concerns, while the portfolio's interest-bearing investments create a separate riba concern.
Limitation: The filing reports premiums, investment income, investment gains and other income but does not label each contract or investment return by school-specific Sharia treatment. That limitation does not make the core conventional-insurance classification incomplete under the retained mainstream analysis; a minority or necessity-based view may assess particular insurance needs differently.
Purification
Aflac fails at the issuer's core conventional-insurance business-activity level. Net investment income is used as a conservative upper bound for the financial screen, not as a percentage that can be donated to make continued ownership compliant.
Inputs, assumptions and primary sources
- Inputs use Aflac's March 31, 2026 Form 10-Q; amounts are USD millions as presented in the filing.
- Debt uses $7,822 million of notes payable excluding leases. The $7,908 million total notes-payable-and-lease-obligations figure is not silently treated as conventional debt.
- Cash uses $5,654 million of cash and cash equivalents.
- Interest-bearing securities use $59,683 million of fixed-maturity securities available-for-sale, $3,545 million of fixed-maturity securities held by consolidated VIEs, $15,752 million of fixed-maturity securities held-to-maturity and $9,770 million of commercial mortgage and other loans. Equity securities and the separately reported other-investments balance are not assumed to be interest-bearing securities in this input.
- Receivables use $947 million of receivables plus $695 million of accrued investment income. The latter is included to avoid understating the receivable balance; it is not also counted in the securities numerator.
- Revenue uses $4,346 million of total revenues for the three months ended March 31, 2026. Net earned premiums were $3,310 million, and net investment income was $956 million.
- Net investment income is a conservative upper bound for potentially non-compliant investment income because the filing's line includes portfolio income that is not isolated into a pure interest-only numerator. No fixed purification percentage is asserted.
- The insurance-revenue input is a disclosed premium proxy for the core conventional-insurance business screen; it is not presented as a universal prohibited-revenue rule for every school or insurance-necessity exception.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →