Jackson Financial (JXN) closed at $76.76 in the latest trading session, marking a +0.5% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.74% for the day. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 1.26%.Heading into today, shares of the financial services company had lost 10.92% over the past month, lagging the Finance sector's loss of 3.44% and the S&P 500's loss of 4.77% in that time.Market participants will be closely following the fi ...

Jackson Financial (NYSE: JXN ) might be one of the most complex and misunderstood stocks I’ve looked at in a while. It offers a dividend yield north of 4%, trades at a single-digit earnings multiple, and has outperformed the S&P 500I am an investment professional with a background in both equity and real estate markets. I specialize in identifying long-only opportunities that offer safe and growing dividends, aiming to outperform the broader market on a risk-adjusted return basis. In addition to managing my ...

Sales and Market Performance - Total retail annuity sales for the years ended December 31, 2024 and 2023 were $17.8 billion and $12.8 billion, respectively, representing a year-over-year increase of 39.1%[21] - Institutional product sales for the year ended December 31, 2024, were $2.0 billion, with an account value of $8.4 billion as of the same date[36] - Jackson National Life accounted for 12.3% of all sales in the U.S. variable annuity market for the nine months ended September 30, 2024, ranking 2 in variable annuity sales[42] - The RILA market has grown at a compound annual growth rate of 30% from 2020 through 2024, indicating significant growth potential in this product category[33] Asset Management and Financial Strength - As of December 31, 2024, Jackson National Asset Management LLC managed $250.3 billion of assets, reflecting the company's strong investment management capabilities[31] - The company maintained a combined statutory operating expense-to-asset ratio of 29 basis points at its principal insurance company subsidiaries for the year ended December 31, 2024, one of the lowest in the industry[22] - As of December 31, 2024, the Closed Life and Annuity Blocks segment had total reserves of $20.6 billion, reflecting the company's commitment to managing its in-force business efficiently[38] - As of December 31, 2024, the company's total adjusted capital and RBC minimum required levels substantially exceeded state standards[78] Risk Management and Compliance - The company maintains a financial recovery plan and conducts regular stress and scenario testing to assess its risk profile[57][58] - The risk management framework is reviewed annually by the Board of Directors to ensure compliance with regulatory requirements[50] - The company utilizes third-party reinsurance to mitigate risks related to longevity and mortality in its in-force annuity and life insurance products[63] - The company is subject to regulation under various insurance holding company laws, requiring registration and reporting on capital structure and financial condition[102] Regulatory Environment - The Financial Stability Oversight Council (FSOC) adopted a new analytic framework for financial stability risks in November 2023, which may increase the likelihood of the company facing additional regulatory measures[84] - The Department of Labor's 2024 Fiduciary Advice Rule redefines fiduciary "investment advice" to ERISA plans and IRAs, extending fiduciary status to one-time rollover recommendations[89] - The NYSDFS Cybersecurity Regulation was amended on November 1, 2023, to include new requirements for risk assessments and cybersecurity policies, with phased implementation starting December 2023[96] - The SEC adopted amendments on July 26, 2023, to enhance and standardize disclosures related to cybersecurity, significantly expanding annual disclosure requirements for public companies[99] Operational and Strategic Initiatives - The company focuses on growing sales through Independent Registered Investment Advisors (RIAs), who managed approximately $8.48 trillion in investor assets at the end of 2023, indicating a strategic growth opportunity[42] - The company has committed to sustainability initiatives, including a solar farm that reduces reliance on external power generation[115] - The company promotes community engagement through charitable donations and volunteer programs, aligning its philanthropic strategy with its business purpose[116] - The company has implemented a hedging program aimed at protecting statutory capital and stabilizing distributable earnings throughout market cycles[62] Workforce and Internal Development - As of December 31, 2024, the company had approximately 3,970 associates, including 3,060 full-time and 910 part-time associates[119] - The senior management team has an average tenure of over 20 years, indicating strong internal talent development[120] - The mentoring program, which began in 2021, has seen participation from approximately 80 mentors and over 230 mentees, with a satisfaction rating of 4.8 out of 5[122] - The Employee Assistance Program provides confidential support for emotional stress and well-being, contributing to associates' financial wellness[126] Financial Risks and Challenges - The company faces liquidity risks associated with sourcing a large concentration of funding from the Federal Home Loan Bank of Indianapolis[156] - Economic downturns could adversely affect policyholder behavior, impacting sales and profitability[136] - Interest rate movements could lead to financial losses, particularly in prolonged low or high rate environments[140] - The company holds illiquid investments, including privately placed fixed maturity securities and mortgage loans, which could adversely affect cash flows if liquidated under market volatility[157] Cybersecurity and Technology Risks - Increased cybersecurity threats could lead to financial losses, regulatory fines, and damage to the company's reputation due to potential data breaches[196] - The company relies on third-party vendors for information technology security, exposing it to risks of data breaches and operational disruptions[197] - The use of artificial intelligence may result in errors in analysis and decision-making, potentially leading to regulatory fines and reputational damage[200] Legal and Regulatory Risks - The company faces significant risks from litigation and regulatory investigations, which could adversely affect its financial performance and reputation[192] - Regulatory compliance failures could result in fines and restrictions on product sales, adversely impacting business operations[179] - A decline in the risk-based capital (RBC) ratio could lead to increased scrutiny from regulators and potential corrective actions, adversely affecting financial condition[180][181]

Jackson Financial Inc. Fourth Quarter and Full Year 2024 Financial Results For Presentation on February 20, 2025 Forward-Looking Statements and Non-GAAP Measures The information in this document contains forward-looking statements about future events and circumstances and their effects upon revenues, expenses and business opportunities. Generally speaking, any statement in this document not based upon historical fact is a forward-looking statement. Forward-looking statements can also be identified by the us ...

Financial Data and Key Metrics Changes - Jackson Financial reported net income exceeding $900 million and adjusted operating earnings of $1.4 billion for 2024, largely driven by significant growth in the retail annuity segment [9][10] - The company's retail annuity sales reached $18 billion, marking a 39% year-over-year increase [10] - The RBC ratio remained stable at an estimated 572%, comfortably above the target, allowing for significant capital return to shareholders [11][22] Business Line Data and Key Metrics Changes - Retail annuities segment saw a 57% increase in adjusted operating earnings compared to the fourth quarter of the previous year, supported by strong equity markets and positive trends in spread products [45] - RILA (Registered Index-Linked Annuities) sales contributed significantly, with fourth quarter sales of $1.5 billion, and total traditional variable annuity sales increased by 11% in 2024 [39][16] - Fixed and fixed index annuity sales reached $397 million in the fourth quarter, indicating healthy volumes in spread product sales [41] Market Data and Key Metrics Changes - The advisory market saw Jackson reach $1 billion in advisory sales in 2024, reflecting growing interest in retirement solutions [17] - LIMRA estimates suggest that 2025 industry sales will remain strong, with traditional variable annuity sales holding steady and RILA sales projected to slightly exceed 2024 levels [18] Company Strategy and Development Direction - Jackson Financial aims to enhance product innovation, distribution expansion, and service excellence as key differentiators in the market [15] - The company plans to increase total capital return targets for 2025 to $700 to $800 million, representing a growth of over 10% at the low end and more than 25% at the high end compared to 2024 [22] - The focus remains on maintaining a balanced long-term view of capital management while supporting new business and returning capital to shareholders [13][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to build on the momentum from 2024, emphasizing a commitment to serving financial professionals and their clients [61] - The outlook for 2025 includes expectations for continued strong capital generation and free cash flow, with a target of exceeding $1 billion in free capital generation [53][55] Other Important Information - The company completed its annual actuarial assumptions review, which resulted in an unfavorable earnings impact primarily due to higher mortality rates [30][76] - Jackson's adjusted book value attributable to common shareholders increased by 10% to $11.2 billion, driven by strong operating performance and share repurchase activity [27] Q&A Session Summary Question: Can you provide more details on Brook Re's capital increase? - Management explained that the $200 million increase in Brook Re's capital was influenced by various factors, including the stability of the balance sheet and the performance of the hedging program [65][72] Question: What led to the decision to keep the existing lapse assumption? - Management clarified that the decision was based on a comprehensive review of historical data and current market conditions, indicating that no changes were deemed necessary at this time [81][90] Question: What is the long-term outlook for PPM? - Management views PPM as a core part of the business, with ongoing efforts to increase distribution to institutional investors and enhance capabilities [98][103] Question: How does the company plan to manage excess capital? - Management emphasized a focus on earning capital, paying it up to the holding company, and returning it to shareholders, while maintaining a buffer above regulatory requirements [92][93]

Core Insights - Jackson Financial (JXN) is projected to announce quarterly earnings of $4.72 per share, reflecting an increase of 86.6% year over year, with revenues expected to reach $1.8 billion, a 102.1% increase from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 0.2%, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Net investment income' to be $484.42 million, indicating a year-over-year decrease of 35.8% [5]. - 'Revenues- Other income' is projected to reach $15.50 million, reflecting a 3.3% increase from the prior-year quarter [5]. - 'Revenues- Premium' is expected to be $39.76 million, showing a year-over-year increase of 4.6% [5]. - 'Revenues- Fee income' is forecasted at $1.26 billion, indicating a decrease of 34.6% from the prior-year quarter [6]. Adjusted Earnings Before Tax - 'Adjusted earnings before tax- Retail Annuities' is estimated to be $447.38 million, up from $326 million in the same quarter last year [6]. - 'Adjusted earnings before tax- Institutional Products' is projected at $24.22 million, compared to $22 million reported in the same quarter last year [7]. Stock Performance - Jackson Financial shares have shown a return of -0.6% over the past month, while the Zacks S&P 500 composite has increased by 3.9% [7]. - With a Zacks Rank 2 (Buy), JXN is expected to outperform the overall market in the near future [7].

Group 1 - Jackson Financial (JXN) closed at $92.93, reflecting a -0.36% change from the previous day, underperforming the S&P 500 which gained 0.67% [1] - Over the past month, shares of Jackson Financial have appreciated by 10.31%, outperforming the Finance sector's gain of 5.69% and the S&P 500's gain of 2.07% [1] Group 2 - Jackson Financial is set to announce its earnings on February 19, 2025, with an expected EPS of $4.72, representing an increase of 86.56% from the prior-year quarter [2] - The Zacks Consensus Estimate projects net sales of $1.8 billion, up 102.05% from the year-ago period [2] Group 3 - Recent changes to analyst estimates for Jackson Financial indicate evolving short-term business trends, with positive revisions reflecting analysts' confidence in the company's performance [3] - The Zacks Rank system, which integrates estimate changes, currently ranks Jackson Financial at 2 (Buy) [5] Group 4 - Jackson Financial has a Forward P/E ratio of 4.54, indicating a discount compared to the industry average Forward P/E of 9.77 [6] - The Insurance - Life Insurance industry, part of the Finance sector, has a Zacks Industry Rank of 165, placing it within the bottom 35% of over 250 industries [6]

Company Performance - Jackson Financial (JXN) closed at $91.09, with a +0.33% change from the previous day's closing price, underperforming the S&P 500's daily gain of 0.72% [1] - Over the past month, Jackson Financial's shares increased by 0.93%, lagging behind the Finance sector's gain of 3.24% and the S&P 500's gain of 1.02% [1] Upcoming Earnings - The earnings report for Jackson Financial is expected on February 19, 2025, with an anticipated EPS of $4.72, representing an 86.56% increase compared to the same quarter last year [2] - Revenue is projected to be $1.8 billion, reflecting a 102.05% rise from the equivalent quarter last year [2] Analyst Estimates - Recent modifications to analyst estimates for Jackson Financial indicate changing near-term business trends, with positive revisions seen as a favorable sign for the company's outlook [3] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings for stocks, with Jackson Financial currently holding a Zacks Rank of 2 (Buy) [5] Valuation Metrics - Jackson Financial has a Forward P/E ratio of 4.42, which is a discount compared to the industry average Forward P/E of 9.84 [6] - The Insurance - Life Insurance industry, part of the Finance sector, has a Zacks Industry Rank of 90, placing it in the top 36% of over 250 industries [6]

Group 1 - Jackson Financial (NYSE: JXN) is highlighted as a company with strong current valuations, making it an attractive investment opportunity in the long/short equity research space [1] - The company is primarily focused on micro and small-cap stocks, indicating a niche investment strategy [1] Group 2 - The article emphasizes the author's beneficial long position in JXN shares, suggesting confidence in the company's future performance [2] - The analysis is presented as an independent opinion, with no external compensation influencing the views expressed [2]

Core Viewpoint - Jackson Financial (JXN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - For Jackson Financial, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices [5][8]. Earnings Estimate Revisions - Jackson Financial is projected to earn $18.77 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 46.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Jackson Financial has risen by 3.9%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - Jackson Financial's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for price movement in the near term [10].