Core Insights - The study reveals a significant disconnect between investors' awareness of potential policy changes and their retirement planning, with many lacking clarity on how these changes could impact their financial futures [1] Group 1: Investor Concerns and Behavior - 53% of investors worry that their state will need to raise taxes due to federal funding shortfalls [1] - 21% of pre-retired investors have delayed retirement since early 2025 due to policy uncertainty [1] - 68% foresee rising Medicare premiums and co-pays, while 65% expect cuts to Medicaid benefits [1] Group 2: Generational Differences - Gen X investors show greater concern about their financial future, with 46% reporting increased anxiety since early 2025 compared to 37% of baby boomers [1] - Only 36% of Gen X investors feel very or extremely secure about their financial situation, compared to 46% of baby boomers [1] - 76% of Gen X respondents believe a 5% federal tax rate increase would necessitate spending changes, compared to 65% of baby boomers [1] Group 3: Financial Professionals' Engagement - Financial professionals often avoid discussing policy changes due to client sensitivity and concerns about appearing political [1] - Only 36% of investors working with financial professionals discuss Medicaid and long-term care funding [1] - 54% of financial professionals engage in discussions about federal debt levels and tariff policies [1]

Group 1: Company Performance - Jackson Financial reported record retail annuity sales of $19.7 billion for the full year 2025, a 10% increase year-over-year, driven by strong performance in registered index-linked annuities (RILA) and a 77% surge in institutional sales [1][2] - The company achieved adjusted operating earnings of $1.6 billion ($22.67 per diluted share) for 2025, up from $1.4 billion in 2024, indicating robust underlying business performance despite a net loss of $17 million due to non-operating items [2][3] - In Q4 2025, retail annuity sales reached $5.9 billion, reflecting a 27% year-over-year increase, supported by the growth of PPM America’s assets under management, which rose 26% to $93.7 billion [1][2] Group 2: Capital Returns and Dividends - Jackson Financial returned $862 million to common shareholders in 2025 through $634 million in share repurchases and $228 million in dividends, exceeding its capital return targets [3] - The company increased its Q1 2026 dividend by 12.5% to $0.90 per share and set a higher capital return target of $900 million to $1.1 billion for 2026 [3] Group 3: Business Segments - Jackson Financial operates through three segments: Retail Annuities, Institutional Products, and Closed Life & Annuity Blocks, providing a suite of annuities to retail investors in the US [4]

Core Insights - Jackson National Life Insurance Company has won the "Highest Customer Service – Financial Industry" award for 14 consecutive years, achieving the highest first-call resolution rating in the market for 2025 [1][3] - The company also received the Call Center World Class First Call Resolution Certification, indicating an 80% or higher rate of resolving customer issues on the first call, and was a finalist for Call Center of the Year [1][2] Customer Service Excellence - Jackson's contact center associates maintain high standards for customer support, aiming to provide clarity in every interaction [2] - The awards from SQM are based on customer feedback regarding satisfaction with service representatives and the resolution of calls, with benchmarking conducted on over 500 North American contact centers annually since 1996 [2][3] Company Overview - Jackson is focused on simplifying retirement planning for financial professionals and their clients through a range of annuity products and award-winning service [4] - The company emphasizes a balanced, long-term approach to serve all stakeholders, including customers, shareholders, and community partners [4]

Financial Performance - Total retail annuity sales for the years ended December 31, 2025 and 2024 were $19.7 billion and $17.8 billion, respectively, reflecting a growth of 5.3%[20] - The company reported total sales of $23.2 billion for the year ended December 31, 2025, compared to $19.8 billion in 2024, indicating an increase of 12.0%[23] - Assets Under Management (AUM) grew to $351.1 billion as of December 31, 2025, up from $324.7 billion in 2024, representing a growth of 8.1%[23] - Adjusted Operating Earnings for 2025 were $1.6 billion, compared to $1.4 billion in 2024, marking an increase of 11.8%[23] - The company’s free cash flow for 2025 was $838 million, compared to $767 million in 2024, reflecting an increase of 9.2%[23] Shareholder Actions - The company repurchased 634 million common shares under its share repurchase program in 2025, up from 415 million in 2024[23] Market Position - Jackson accounted for 13.6% of all sales in the U.S. variable annuity market, ranking 2 in variable annuity sales for the nine months ended September 30, 2025[42] - The RILA market has experienced a compound annual growth rate of 27% from 2021 through 2025, indicating strong growth potential[33] Risk Management and Compliance - The enterprise risk management framework is reviewed annually to ensure compliance with regulatory requirements and stakeholder expectations[52] - The company utilizes third-party reinsurance to mitigate risks associated with longevity and mortality in its in-force annuity and life insurance products[49] - Jackson's and Jackson NY's total adjusted capital and RBC levels substantially exceeded the standards of their respective states of domicile and the NAIC as of December 31, 2025[76] - The RBC ratio reporting indicates that if the ratio falls below 100%, the insurer must submit a corrective action plan to the regulator[75] - The most recent examinations by DIFS and NYS-DFS concluded in 2023 with no material findings regarding compliance[68] Regulatory Environment - The Dodd-Frank Act has significantly impacted the regulation of over-the-counter derivatives, increasing costs and affecting returns[80] - Regulation Best Interest, effective June 30, 2020, establishes a best interest standard for broker-dealers, enhancing duties and disclosure requirements[85] - The DOL's Fiduciary Advice Rule, effective February 16, 2021, broadened the circumstances under which financial institutions could be considered fiduciaries under ERISA[86] - State insurance laws require diversification of investment portfolios and limit investments in certain asset categories[73] - The NAIC has approved regulatory initiatives designed to reduce the risk of insurance company insolvencies, including investment and reserve requirements[69] Corporate Governance - The company believes it can maintain RBC ratios in excess of the "company action level" through appropriate risk management and capital management[77] - The company maintains a robust risk management framework that includes collateralization strategies for counterparty risk management[61] - The company conducts annual analyses of reserve adequacy, including dynamic cash flow testing under various interest rate scenarios[61] Employee Engagement and Development - As of December 31, 2025, the company employed approximately 3,890 associates, including about 3,090 full-time and 800 part-time associates[111] - The senior management team has an average tenure of over 20 years, indicating strong internal talent development[112] - In 2025, the company launched a Skills Marketplace to enhance career development and talent deployment[113] - The company offers a comprehensive benefits package, including medical, dental, vision, and innovative benefits like tuition reimbursement and paid parental leave[117] - The company operates 24 OSHA-related programs to ensure a safe and healthy workplace for associates[119] Community Engagement - Jackson's corporate responsibility initiatives include charitable donations and community engagement programs, aligning with its business purpose to promote financial freedom[108] - Jackson's philanthropic strategy aligns with its business purpose, encouraging community engagement through paid volunteer time and matching gift programs[108] Cybersecurity and Data Security - The SEC expanded public company disclosure rules on cybersecurity on July 26, 2023, enhancing and standardizing disclosures related to cybersecurity incidents[92] - The NAIC's Insurance Data Security Model Law has been adopted by a majority of states, establishing standards for data security and breach notification for insurance companies[93] - The California Privacy Rights Act (CPRA), effective January 1, 2023, imposes additional obligations on companies regarding the collection and use of personal information, with phased implementation of new regulations[93] Innovation and Sustainability - The company has implemented an on-site solar farm at its home office in Lansing, Michigan, to generate renewable energy and reduce reliance on external power[107]

Core Insights - Jackson Financial exceeded its 2025 financial targets, set new sales records, and raised its 2026 outlook for capital generation and shareholder returns during the fourth-quarter earnings call [1] Strategic Actions - The company announced a long-term strategic partnership with TPG aimed at supporting accelerated growth in its spread-based business and increasing flexibility [2] - The partnership is expected to enhance capital efficiency and build momentum in fixed and fixed index annuities [2] - CFO Don Cummings reported that the TPG transaction generated $650 million in value and involved issuing $500 million of common stock at an effective premium of 30% [3] Financial Performance - Jackson Financial reported nearly 12% growth in full-year adjusted operating earnings, with adjusted operating earnings per share rising over 20% for the year [5] - In the fourth quarter, adjusted operating earnings were $455 million, with adjusted operating earnings per share of $6.61, which adjusted for notable items resulted in a 33% increase from the prior-year quarter [6]

Core Insights - Jackson Financial Inc. achieved nearly 12% growth in adjusted operating earnings for the full year, driven by stable fee income and increased investment spread earnings [1] - The company returned over $862 million to common shareholders, exceeding its capital return target range [5][12] - A strategic partnership with TPG is expected to accelerate growth in the spread-based business and enhance capital efficiency [2][11] Financial Performance - Adjusted operating earnings for the fourth quarter were $455 million, supported by strong performance in spread-based products [13] - Free capital generation totaled nearly $1.4 billion for the year, significantly above the $1 billion target [40] - The company reported a 33% increase in adjusted operating EPS to $6.43, reflecting strong spread income growth [18] Sales and Distribution - Retail annuity sales reached nearly $20 billion, the highest level since 2019, with significant contributions from fixed index annuities and RILA products [4][10] - RILA sales set a record at nearly $2.3 billion for the fourth quarter, representing a 22% increase for the full year [9][20] - The fee-based advisory business also saw record sales of $1.5 billion in 2025 [10] Capital Management - The company maintained a balanced approach to capital management, focusing on financial strength, future growth, and capital return to shareholders [4][12] - The RBC ratio stood at 567%, indicating strong capital stability [5][46] - The partnership with TPG is expected to enhance capital generation and support future growth initiatives [2][11] Strategic Initiatives - The establishment of Hickory Re as a captive reinsurer is anticipated to provide additional free cash flow and support capital returns [6][54] - The company plans to raise its capital return targets for 2026 to between $900 million and $1.1 billion, reflecting confidence in future profitability [12][44] - Ongoing product innovation, including the launch of new fixed index annuities, is expected to diversify the business and enhance sales momentum [10][11]

Financial Data and Key Metrics Changes - Jackson Financial reported adjusted operating earnings of $455 million for Q4 2025, reflecting continued strength across spread-based products and a 33% increase in adjusted operating EPS to $6.43 compared to the previous year [13][16] - The company achieved over $1 billion in free capital generation for the second consecutive year, with total retail annuity sales reaching nearly $20 billion, the highest since 2019 [6][8] - The RBC ratio stood at 567%, indicating strong capital management and financial stability [7][41] Business Line Data and Key Metrics Changes - Retail annuity sales grew by 27% year-over-year, with RILA sales reaching a record $2.3 billion, up 53% from the prior year [18][10] - The fixed index annuity, Jackson Income Assurance, contributed significantly to sales, with $812 million in sales during the quarter [19][10] - The average retail annuity AUM increased to $268 billion, up from $254 billion in the previous year [22] Market Data and Key Metrics Changes - The company experienced a 7% increase in total retail annuity account values to $269 billion at year-end 2025, driven by strong sales in RILA and FIA products [7][10] - Net flows for non-variable annuities were positive at $2.8 billion in Q4, while variable annuities faced elevated net outflows due to market conditions [20][21] - The strong equity market contributed to over $28 billion in separate account investment performance, exceeding variable annuity net outflows by $9 billion [21] Company Strategy and Development Direction - Jackson Financial closed a strategic partnership with TPG to support accelerated growth in its spread-based business, enhancing capital efficiency and product offerings [5][12] - The company aims to diversify its product suite to meet various consumer needs, focusing on income, protection, growth, and legacy benefits [61] - The establishment of Hickory Re is expected to provide additional sources of free cash flow and enhance the profitability of the payout annuity block [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a balanced approach to capital management, focusing on financial strength, future growth, and capital return to shareholders [6][12] - The company anticipates free capital generation to reach or exceed $1.2 billion in 2026, supported by a healthy book of business and the TPG partnership [11][12] - Management acknowledged the impact of market volatility on surrender rates and emphasized the importance of aligning capital management with market conditions [21][75] Other Important Information - Jackson Financial returned over $862 million to common shareholders in 2025, marking a 16% increase in capital return targets for 2026 [8][39] - The company reported a total net hedge result for the quarter of a modest $62 million loss, indicating effective hedging strategies despite market challenges [29][25] - The annual actuarial assumptions review resulted in a $360 million unfavorable impact, primarily due to higher reserves from updated policyholder behavior assumptions [30] Q&A Session Summary Question: Can you provide more details on capital levels and tracking? - Management discussed the progress of Brooke Re and its diversified liability and capital profile, highlighting the reinsurance of payout annuity liabilities [47][48] Question: What is the expected normal course capital generation? - Management acknowledged headwinds from market volatility and higher-than-expected surrenders affecting capital generation, but did not provide specific guidance [51][52] Question: What growth can be expected from the TPG partnership? - Management indicated that the partnership would enhance growth in spread products and support strong retail annuity sales results, with expectations for net flows to stabilize over the next couple of years [56][64]

Financial Data and Key Metrics Changes - Jackson Financial reported adjusted operating earnings of $455 million for Q4 2025, reflecting continued strength across spread-based products and a 12% growth in adjusted operating earnings for the full year [5][13] - The company achieved over $1 billion in free capital generation for the second consecutive year, with free cash flow totaling $838 million for the full year [6][36] - Adjusted operating earnings per share increased by 33% to $6.43, driven by strong spread income growth and a lower diluted share count [16][18] Business Line Data and Key Metrics Changes - Retail annuity sales reached nearly $20 billion for the full year, the highest level since 2019, with a record $2.3 billion in RILA sales for Q4, up 53% year-over-year [6][10] - The retail annuity segment delivered 27% growth over last year's fourth quarter, with RILA assets under management growing to over $20 billion [18][22] - Fixed index annuity sales contributed $812 million during the quarter, indicating strong momentum in the product lineup [19][22] Market Data and Key Metrics Changes - Total retail annuity account values increased by 7% to $269 billion at year-end 2025, supported by strong sales in RILA and fixed index annuities [7][10] - Variable annuity net outflows remained elevated, reflecting an aging policyholder base and market conditions, but were offset by strong investment performance generating over $28 billion [20][21] - The RBC ratio stood at 567%, indicating a strong capital position above the minimum target [7][41] Company Strategy and Development Direction - Jackson Financial closed a strategic partnership with TPG to support accelerated growth in its spread-based business, enhancing capital efficiency and product offerings [5][12] - The company aims to leverage its diversified product suite to meet various consumer needs, focusing on income, protection, growth, and legacy benefits [61] - Future growth targets include free capital generation of at least $1.2 billion for 2026 and a capital return target of $900 million to $1.1 billion [12][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a balanced approach to capital management, focusing on financial strength, growth, and capital return to shareholders [6][8] - The partnership with TPG is expected to enhance profitability and support the growth of the spread-based business, with a positive outlook for retail annuity sales [62][64] - Management anticipates that surrender activity will remain closely tied to equity market performance, with expectations for improved actual-to-expected results in 2026 [21][78] Other Important Information - The company returned over $862 million to common shareholders in 2025, exceeding its capital return target range [7][38] - Jackson's annual actuarial assumptions review resulted in a favorable impact on operating earnings, reflecting improved mortality trends [17][30] - The establishment of Hickory Re as a subsidiary is expected to contribute to future cash flows and enhance the capital profile of Brook Re [48][50] Q&A Session Summary Question: Can you provide more details on capital levels and tracking? - Management discussed the progress of Brook Re and its diversified liability profile, highlighting recent reinsurance transactions that enhance stability [47][48] Question: What is the expected impact of the TPG partnership on growth? - Management indicated that the partnership will support strong retail annuity sales and enhance product offerings, with expectations for growth in the coming years [56][62] Question: How will cash flow from Hickory Re be managed? - It was clarified that dividends from Hickory Re would flow up to Brook Re and then to the holding company, supporting ongoing capital return strategies [65][66]

Financial Data and Key Metrics Changes - Jackson Financial reported adjusted operating earnings of $455 million for Q4 2025, reflecting continued strength across spread-based products and a 33% increase in adjusted operating EPS to $6.43 compared to the previous year [13][17][18] - The company achieved over $1 billion in free capital generation for the second consecutive year, with total retail annuity sales reaching nearly $20 billion, the highest since 2019 [6][8][39] - The RBC ratio stood at 567%, indicating strong capital management and financial stability [7][41] Business Line Data and Key Metrics Changes - Retail annuity sales grew by 27% year-over-year, with RILA sales reaching a record $2.3 billion, up 53% from the prior year [19][20] - The newly launched fixed index annuity contributed $812 million in sales during Q4, enhancing the diversification of the product mix [19][20] - The average retail annuity AUM increased to $268 billion, up from $254 billion in the previous year [22] Market Data and Key Metrics Changes - The company experienced a 7% increase in total retail annuity account values to $269 billion at year-end 2025, driven by strong sales in RILA and FIA products [7][10] - Variable annuity net outflows remained elevated due to market conditions, but strong investment performance offset these outflows, resulting in a 2.8% growth in variable annuity account values [21][40] Company Strategy and Development Direction - Jackson Financial closed a strategic partnership with TPG to support accelerated growth in its spread-based business, enhancing capital efficiency and product offerings [5][12] - The company aims to leverage its diverse product suite to meet various consumer needs, focusing on income, protection, growth, and legacy benefits [62] - The establishment of Hickory Re is expected to contribute to free cash flow and enhance the capital profile of Brook Re, supporting future growth [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a balanced approach to capital management, focusing on financial strength, growth, and capital return to shareholders [6][12] - The company anticipates free capital generation to reach or exceed $1.2 billion in 2026, supported by a healthy book of business and profitable growth outlook [11][12] - Management acknowledged the impact of market volatility on surrender rates and emphasized the importance of adapting to market conditions for future performance [21][76] Other Important Information - Jackson Financial returned over $862 million to common shareholders in 2025, marking a 16% increase in capital return targets for 2026 [8][39] - The company reported a net loss of $405 million from its hedging program, primarily due to equity index implied volatility, but noted the stability of guaranteed benefit fees [26][28] Q&A Session Summary Question: Can you provide more details on capital levels and tracking? - Management discussed the diversification of Brook Re's liability and capital profile, highlighting recent reinsurance transactions that enhance stability [47][48] Question: What is the growth outlook from the TPG partnership? - Management indicated that the partnership is expected to enhance retail annuity sales and diversify product offerings, with a focus on leveraging TPG's assets for various product lines [61][62] Question: How will cash flow from Hickory Re be managed? - It was clarified that dividends from Hickory Re would flow up to Brook Re and then to the holding company, supporting ongoing capital return strategies [64][65]

Jackson Financial Inc. Fourth Quarter and Full Year 2025 Financial Results For Presentation on February 19, 2026 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 ...