[PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Jackson Financial Inc.'s unaudited condensed consolidated financial statements for Q1 2025, reflecting a net loss attributable to common shareholders and shifts in total assets and equity [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total assets | $327,193 | $338,450 | $(11,257) | | Total liabilities | $316,668 | $328,468 | $(11,800) | | Total shareholders' equity | $10,301 | $9,764 | $537 | | Total equity | $10,525 | $9,982 | $543 | [Condensed Consolidated Income Statements](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statements) Consolidated Income Statement Highlights (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $3,750 | $(322) | | Pretax income (loss) | $(17) | $903 | | Net income (loss) attributable to Jackson Financial Inc. | $(24) | $795 | | Net income (loss) attributable to JFI common shareholders | $(35) | $784 | | Basic EPS | $(0.48) | $10.04 | | Diluted EPS | $(0.48) | $9.94 | - The significant decrease in net income was primarily driven by a **$2,200 million loss from Market Risk Benefits** and a **$955 million gain on derivatives and investments**, compared to a **$2,700 million gain** and a **$3,100 million loss**, respectively, in the prior-year period, highlighting the volatility from these items[13](index=13&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive Income (Loss) (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $(18) | $802 | | Total other comprehensive income (loss) | $803 | $(615) | | Comprehensive income (loss) attributable to Jackson Financial Inc. | $779 | $180 | [Condensed Consolidated Statements of Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) - Total equity increased from **$9,982 million** at December 31, 2024, to **$10,525 million** at March 31, 2025, driven by a **net loss of $18 million**, **other comprehensive income of $803 million**, **dividends totaling $70 million**, and **treasury stock purchases of $202 million**[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,594 | $1,426 | | Net cash used in investing activities | $(953) | $(2,006) | | Net cash (used in) provided by financing activities | $(521) | $433 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=81&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2025 performance, highlighting a U.S. GAAP net loss, positive Adjusted Operating Earnings, and strategic actions including capital return and the establishment of Brooke Re [Executive Summary](index=84&type=section&id=Executive%20Summary) The company reported a Q1 2025 net loss of $35 million, offset by Adjusted Operating Earnings of $376 million, while returning $231 million to shareholders and establishing Brooke Re for capital optimization Selected Financial and Operating Measures (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) attributable to JFI common shareholders | $(35) | $784 | | Adjusted Operating Earnings (Non-GAAP) | $376 | $334 | | Amount of shares repurchased | $172 | $116 | | Dividends on common shares | $59 | $56 | - In Q1 2024, Jackson established **Brooke Re**, a Michigan-based captive reinsurer, to reinsure variable annuity guaranteed benefit riders, aiming to **moderate statutory capital impact**, enable **efficient economic hedging**, and produce **predictable financial results**[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk) - The company returned **$231 million** to common shareholders in Q1 2025, comprising **$59 million in dividends** and **$172 million in share repurchases**, with a 2025 capital return target of **$700-$800 million**[303](index=303&type=chunk) [Key Operating Measures](index=86&type=section&id=Key%20Operating%20Measures) Total sales increased in Q1 2025, driven by institutional and retail annuity products, despite continued net outflows in retail annuities and a slight decrease in total Assets Under Management Total Sales by Product (in millions) | Product | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Retail Annuity Sales | $4,031 | $3,691 | | Total Institutional Product Sales | $1,599 | $100 | | **Total Sales** | **$5,630** | **$3,791** | Net Flows by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Retail Annuities Net Flows | $(3,524) | $(2,799) | | Total Institutional Products Net Flows | $736 | $(596) | | Total Closed Life and Annuity Blocks Net Flows | $(69) | $(90) | - Total Assets Under Management (AUM) were **$318,000 million** as of March 31, 2025, compared to **$324,700 million** as of December 31, 2024[315](index=315&type=chunk) [Macroeconomic, Industry, and Regulatory Trends](index=90&type=section&id=Macroeconomic,%20Industry,%20and%20Regulatory%20Trends) The company's performance is influenced by market conditions and regulatory changes, with strategic responses like Brooke Re and ongoing monitoring of new rules like the DOL Fiduciary Advice Rule - The **Brooke Re transaction** in Q1 2024 is expected to largely **moderate the impact of the cash surrender value floor on statutory capital**, previously affected by rising equity markets and interest rates[320](index=320&type=chunk)[321](index=321&type=chunk) - Rising interest rates pose **disintermediation risk**, potentially leading to product lapses and forced asset sales at a loss[321](index=321&type=chunk) - The **Department of Labor's 2024 Fiduciary Advice Rule** is under court challenge, but the company believes its exposure is limited due to distribution partners' existing best interest adaptations[328](index=328&type=chunk)[329](index=329&type=chunk) [Non-GAAP Financial Measures](index=94&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures such as Adjusted Operating Earnings, Adjusted Book Value, and Free Cash Flow to provide a clearer view of underlying business performance by excluding market volatility Reconciliation of Net Income (Loss) to Adjusted Operating Earnings (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) attributable to JFI common shareholders | $(35) | $784 | | Pretax adjusted operating earnings | $442 | $389 | | Less: operating income tax expense (benefit) | $55 | $44 | | Less: dividends on preferred stock | $11 | $11 | | **Adjusted operating earnings** | **$376** | **$334** | Reconciliation of Total Shareholders' Equity to Adjusted Book Value (in millions) | Line Item | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total shareholders' equity | $10,301 | $10,169 | | Less: Preferred stock | $533 | $533 | | Exclude AOCI attributable to Jackson Financial Inc. | $1,256 | $1,762 | | **Adjusted Book Value Attributable to Common Shareholders** | **$11,024** | **$11,398** | - Free Cash Flow at the parent company was **$213 million** for Q1 2025, compared to **$20 million** in Q1 2024, primarily from **$240 million in dividends** and distributions from subsidiaries, less **$27 million in holding company expenses**[347](index=347&type=chunk)[348](index=348&type=chunk) [Consolidated Results of Operations](index=99&type=section&id=Consolidated%20Results%20of%20Operations) Pretax loss in Q1 2025 was primarily driven by unfavorable movements in market risk benefits, partially offset by favorable movements in net gains on derivatives and investments - The primary driver of the pretax loss was a **$4,964 million unfavorable movement in market risk benefits (gains) losses**, largely due to unfavorable changes in interest rates, fund performance, and volatility[352](index=352&type=chunk) - This was partially offset by a **$4,048 million increase in total net gains on derivatives and investments**, mainly from a **$4,294 million favorable swing in freestanding and embedded derivatives**[350](index=350&type=chunk) - The effective tax rate was **(6)% in Q1 2025** compared to **11% in Q1 2024**, driven by the relationship of taxable income to the consolidated pre-tax loss and changes in the valuation allowance[351](index=351&type=chunk)[354](index=354&type=chunk) [Segment Results of Operations](index=101&type=section&id=Segment%20Results%20of%20Operations) Total Pretax Adjusted Operating Earnings increased in Q1 2025, with stable Retail Annuities earnings, decreased Institutional Products earnings, increased Closed Life and Annuity Blocks earnings, and a smaller loss in Corporate and Other Pretax Adjusted Operating Earnings by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Retail Annuities | $420 | $419 | | Institutional Products | $18 | $31 | | Closed Life and Annuity Blocks | $28 | $19 | | Corporate and Other | $(24) | $(80) | | **Total Pretax Adjusted Operating Earnings** | **$442** | **$389** | - Retail Annuities' earnings remained **flat** as higher fee and spread income were offset by increased commissions, general expenses, and policy benefits[358](index=358&type=chunk)[360](index=360&type=chunk) - Corporate and Other's improved result was primarily driven by a **$34 million decrease in general and administrative expenses**, mainly from lower deferred compensation expenses[367](index=367&type=chunk) [Investments](index=108&type=section&id=Investments) The company's investment strategy focuses on a diversified, largely investment-grade fixed income portfolio, with total investments at **$62,950 million** as of March 31, 2025, predominantly in debt securities and mortgage loans Investment Portfolio Composition (in millions) | Investment Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt Securities (AFS & FVO) | $45,673 | $43,335 | | Mortgage loans (Net of ACL & FVO) | $10,026 | $9,911 | | Policy loans | $4,407 | $4,403 | | Other invested assets | $2,844 | $2,864 | | **Total Investments (excluding derivatives)** | **$62,950** | **$60,513** | - The debt securities portfolio is **92.5% investment grade** as of March 31, 2025, slightly down from **93.0%** at December 31, 2024[57](index=57&type=chunk) - The allowance for credit losses on mortgage loans increased to **$130 million** at March 31, 2025, from **$121 million** at year-end, with a **$15 million provision** recorded for the quarter[383](index=383&type=chunk) [Policy and Contract Liabilities](index=115&type=section&id=Policy%20and%20Contract%20Liabilities) As of March 31, 2025, total policy and contract liabilities were **$284.4 billion**, primarily comprising separate account liabilities, general account liabilities, and reinsured liabilities Policy and Contract Liabilities Breakdown (March 31, 2025, in billions) | Liability Type | Amount | Backing Assets | | :--- | :--- | :--- | | Separate Account Liabilities | $217.6 | Separate Account Assets | | General Account Liabilities | $50.8 | Company Investment Portfolio | | Reinsured Liabilities | $14.5 | Funds Withheld Assets | | **Total** | **$282.9** | | - As of March 31, 2025, **93%** of fixed annuity, fixed-index annuity, and fixed accounts of RILA and variable annuity products had crediting rates at their guaranteed minimums[392](index=392&type=chunk) [Liquidity and Capital Resources](index=117&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity and capital position, relying on subsidiary dividends subject to regulatory approval, supported by a **$1,000 million** revolving credit facility and stable 'A' category financial strength ratings - Jackson Financial Inc. targets a minimum of **$250 million in cash and highly liquid securities**, sufficient to cover two years of fixed net expenses[406](index=406&type=chunk) - For 2025, future dividends from primary insurance subsidiaries, Jackson and Brooke Life, are expected to be **extraordinary** and require prior approval from the Michigan regulator[414](index=414&type=chunk) Financial Strength Ratings (as of May 1, 2025) | Company | A.M. Best | Fitch | Moody's | S&P | | :--- | :--- | :--- | :--- | :--- | | Jackson National Life | A (stable) | A (stable) | A3 (stable) | A (stable) | [Impact of Recent Accounting Pronouncements](index=126&type=section&id=Impact%20of%20Recent%20Accounting%20Pronouncements) The company is evaluating new accounting standards, including ASU 2023-09 on income tax disclosures and ASU 2024-03 on expense disaggregation, with no material impact expected from the former - **ASU 2023-09**, enhancing income tax disclosures, will be effective for the annual period ending December 31, 2025, and is not expected to have a material impact[36](index=36&type=chunk) - **ASU 2024-03**, requiring disaggregated income statement expense disclosure, will be effective for annual periods after December 15, 2026, with its impact currently under evaluation[37](index=37&type=chunk) [Summary of Critical Accounting Estimates](index=126&type=section&id=Summary%20of%20Critical%20Accounting%20Estimates) The company's financial statements rely on several critical accounting estimates, including the valuation of policy reserves, market risk benefits, investments, and derivatives - Critical accounting estimates include reserves for **future policy benefits**, **market risk benefits**, **reinsurance**, **income taxes**, **investment valuation and impairment**, and **derivative instrument valuation**[441](index=441&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=127&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the quantitative and qualitative disclosures about market risk since the 2024 Annual Report on Form 10-K - There have been **no material changes** to the market risk disclosures previously reported in the 2024 Annual Report[442](index=442&type=chunk) [Item 4. Controls and Procedures](index=127&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2025[443](index=443&type=chunk) - No changes occurred during Q1 2025 that materially affected, or are reasonably likely to materially affect, the company's **internal control over financial reporting**[444](index=444&type=chunk) [PART II—OTHER INFORMATION](index=128&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=128&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation, including class action lawsuits, with no expected material adverse effect on its financial condition - The company is involved in ordinary course litigation and does not believe the outcome will have a **material adverse effect** on its financial condition[266](index=266&type=chunk) [Item 1A. Risk Factors](index=128&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K - There have been **no material changes** to the company's risk factors as discussed in the 2024 Annual Report[446](index=446&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=128&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased **1,966,909 common shares** for approximately **$172 million**, with **$431 million** remaining authorized for future repurchases as of May 1, 2025 Share Repurchases (Jan 1, 2025 - Mar 31, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2025 | 479,387 | $91.79 | | Feb 2025 | 565,063 | $89.82 | | Mar 2025 | 922,459 | $84.25 | | **Total Q1 2025** | **1,966,909** | **$87.69 (approx.)** | - As of May 1, 2025, the company had **$431 million** remaining under its share repurchase authorization[449](index=449&type=chunk) [Item 5. Other Information](index=129&type=section&id=Item%205.%20Other%20Information) No Section 16 officers or directors adopted or terminated a Rule 10b5-1 trading plan during Q1 2025, though a pre-existing plan for an Executive Vice President terminated as scheduled - A **Rule 10b5-1 trading plan** for Craig D. Smith, EVP, terminated on April 7, 2025, as scheduled[451](index=451&type=chunk)[452](index=452&type=chunk) [Item 6. Exhibits](index=129&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including new executive compensation agreements, an offer letter, and required CEO/CFO certifications [Signatures](index=131&type=section&id=SIGNATURES)

Core Insights - Jackson Financial (JXN) is expected to report quarterly earnings of $4.93 per share, reflecting a 16.6% increase year over year, while revenues are forecasted to decline by 35.9% to $1.78 billion [1] Earnings Projections - There has been a downward revision of 10.2% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Analysts estimate 'Revenues- Net investment income' at $490.40 million, a decrease of 33.2% year over year [5] - The 'Revenues- Premium' is projected at $35.41 million, indicating a year-over-year decline of 6.8% [5] - 'Revenues- Fee income' is expected to be $1.24 billion, reflecting a 38.2% decrease from the prior-year quarter [5] Adjusted Earnings Before Tax - The consensus estimate for 'Adjusted earnings before tax- Retail Annuities' is $471.09 million, up from $419 million year over year [6] - 'Adjusted earnings before tax- Closed Life and Annuity Blocks' is projected at $7.24 million, down from $19 million in the previous year [6] - Analysts expect 'Adjusted earnings before tax- Institutional Products' to reach $21.98 million, compared to $31 million in the same quarter last year [7] Stock Performance - Jackson Financial shares have returned +16% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.4% change [7] - The company holds a Zacks Rank 4 (Sell), suggesting it may underperform the overall market in the near future [7]

Company Performance - Jackson Financial (JXN) closed at $77.84, with a slight decline of -0.09% from the previous trading session, underperforming the S&P 500's gain of 0.63% [1] - The stock has experienced a significant drop of 10.63% over the past month, compared to a loss of 0.81% in the Finance sector and 0.7% in the S&P 500 [1] Earnings Forecast - Jackson Financial is expected to release its earnings on May 7, 2025, with a predicted EPS of $4.93, indicating a growth of 16.55% year-over-year [2] - Revenue is projected to be $1.78 billion, reflecting a decline of 35.89% compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $18.87 per share, showing a slight increase of 0.43% from the previous year, while revenue is expected to be $6.89 billion, indicating a decrease of 24.63% [3] - Recent analyst estimate revisions suggest a changing business outlook, with positive revisions indicating optimism [3] Analyst Ratings - The Zacks Rank system, which evaluates estimate changes, currently rates Jackson Financial at 4 (Sell), with a consensus EPS projection having decreased by 9.56% in the last 30 days [5] - The Zacks Rank has a historical track record of outperformance, with 1 stocks averaging an annual return of +25% since 1988 [5] Valuation Metrics - Jackson Financial has a Forward P/E ratio of 4.13, significantly lower than the industry average of 10.69, suggesting it is trading at a discount [6] - The Insurance - Life Insurance industry, to which Jackson Financial belongs, has a Zacks Industry Rank of 162, placing it in the bottom 35% of over 250 industries [6]

Group 1 - Jackson Financial (NYSE: JXN) is an annuity provider that originated from a spin-off of Prudential Financial [1] - Earlier this year, a STRONG BUY recommendation was made for Jackson Financial [1] - The article serves as a platform for discussing investment ideas, particularly focusing on micro and small-cap stocks [1] Group 2 - The author has a beneficial long position in Jackson Financial shares through various means [1] - The article reflects the author's personal opinions and is not compensated by any company mentioned [1]

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 ...

[Business Overview](index=9&type=section&id=Item%201.%20Business) [Company Overview](index=9&type=section&id=Overview) Jackson Financial Inc. is a U.S. financial services company focused on retirement savings and income solutions, primarily offering diverse annuities through an industry-leading distribution network, emphasizing differentiated products, efficient operations, and disciplined risk management, reporting significant sales growth and strong capital levels in fiscal year 2024 - Jackson Financial Inc. helps Americans with retirement savings and income by offering diverse annuities through an industry-leading distribution network[18](index=18&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) Selected Financial and Operating Measures (Year Ended Dec 31, in millions USD) | Measure | 2024 | 2023 | | :--- | :--- | :--- | | Total Sales | $19,849 | $13,898 | | Assets Under Management (AUM) | $324,718 | $315,838 | | Net income attributable to JFI common shareholders | $902 | $899 | | Adjusted Operating Earnings | $1,443 | $1,073 | | Capital Returned to Common Shareholders | $631 | $464 | | Jackson statutory risk-based capital ratio | 572% | 624% | - Total retail annuity sales **increased to $17.8 billion in 2024** from $12.8 billion in 2023[21](index=21&type=chunk) [Product Offerings by Segment](index=10&type=section&id=Our%20Product%20Offerings%20by%20Segment) The company operates through three main segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks, with Retail Annuities being the largest, driven by strong sales in Variable Annuities and significant RILA growth, while Institutional Products are issued opportunistically and Closed Life and Annuity Blocks consist of acquired, non-new-sale businesses Annuity Sales and Account Value by Type (in millions USD) | Annuity Type | 2024 Sales | 2024 Account Value | 2023 Sales | 2023 Account Value | | :--- | :--- | :--- | :--- | :--- | | Variable annuities | $10,561 | $236,057 | $9,540 | $227,777 | | RILA | $5,674 | $11,685 | $2,890 | $5,219 | | Fixed index annuities | $181 | $816 | $210 | $622 | | Fixed annuities | $1,433 | $2,515 | $193 | $1,218 | - As of December 31, 2024, **73% of total variable annuity account value** included a Guaranteed Minimum Withdrawal Benefit for Life (GMWB for Life) feature[30](index=30&type=chunk) - The Institutional Products segment reported **$2.0 billion in sales** and **$8.4 billion in account value** as of December 31, 2024[36](index=36&type=chunk) - The Closed Life and Annuity Blocks segment, comprising acquired policies and discontinued life insurance sales, held **$20.6 billion in total reserves** as of December 31, 2024[37](index=37&type=chunk)[38](index=38&type=chunk) [Distribution and Operations](index=13&type=section&id=Distribution%20and%20Operations) Jackson utilizes a multi-channel distribution network, including approximately 500 broker-dealers and over 1,700 RIAs, ranking 2 in U.S. variable annuity sales for the first nine months of 2024, supported by an efficient operating platform that administers 79% of policies in-house and a product design focused on risk management through investment-only options, GMWB emphasis, and reinsurance - The company distributes retail annuities through approximately **500 broker-dealer partners** with over 120,000 advisors and more than **1,700 RIAs**[43](index=43&type=chunk) - For the nine months ended September 30, 2024, Jackson ranked **2 in U.S. variable annuity sales** with a **12.3% market share**[42](index=42&type=chunk) - The company administers approximately **79% of in-force policies** on its in-house platform, contributing to a low combined statutory operating expense-to-asset ratio of **29 basis points for 2024**[22](index=22&type=chunk)[44](index=44&type=chunk) - Product design strategy no longer includes offering GMIBs, instead utilizing third-party reinsurance to mitigate associated risks[47](index=47&type=chunk) [Risk Management](index=15&type=section&id=Risk%20Management) The company employs a comprehensive Enterprise Risk Management Framework, organized around six core components and a three-lines model for governance, managing key financial risks like market, counterparty, and asset-liability through dynamic hedging, third-party reinsurance, and disciplined pricing, with most in-force fixed, fixed index, and GMIB variable annuity businesses ceded to unaffiliated reinsurers - The risk management framework employs a three-lines model: Risk Ownership (first line), Risk Oversight (second line), and Independent Assurance (third line)[51](index=51&type=chunk)[53](index=53&type=chunk) - The hedging program aims to protect against adverse market conditions, safeguard statutory capital, and stabilize distributable earnings[62](index=62&type=chunk) - The company utilizes third-party reinsurance to mitigate longevity and mortality risks, ceding the majority of its in-force fixed annuity, fixed index annuity, and legacy GMIB variable annuity businesses to unaffiliated reinsurers[63](index=63&type=chunk)[64](index=64&type=chunk) [Regulation](index=19&type=section&id=Regulation) Jackson Financial is subject to extensive state and federal regulation, with state insurance departments overseeing solvency and market conduct, federal agencies like SEC, FINRA, and DOL impacting product sales and investment advice, and evolving rules around cybersecurity and AI also requiring navigation - The company's primary insurance subsidiary, Jackson National Life, is regulated by the Michigan Department of Insurance and Financial Services (DIFS)[69](index=69&type=chunk) - As of December 31, 2024, the **RBC ratios** for Jackson and its New York subsidiary substantially exceeded minimum required levels[78](index=78&type=chunk) - The NAIC's revised Annuity Suitability Model Regulation, imposing a "best interest" standard, has been adopted by **48 states** as of January 1, 2025[74](index=74&type=chunk) - The DOL's 2024 Fiduciary Advice Rule, redefining "fiduciary" investment advice for ERISA plans and IRAs, is currently stayed pending litigation but could impact compensation and product offerings[89](index=89&type=chunk)[91](index=91&type=chunk) - The company is subject to various cybersecurity regulations, including the NYSDFS Cybersecurity Regulation and the NAIC Insurance Data Security Model Law, adopted in **26 states** including Michigan[96](index=96&type=chunk)[97](index=97&type=chunk) [Human Capital Resources](index=29&type=section&id=Human%20Capital%20Resources) As of December 31, 2024, Jackson employed approximately 3,970 associates, focusing on internal talent development, competitive compensation, comprehensive benefits, and associate well-being, highlighted by a senior management team with over 20 years average tenure and a robust mentoring program - The company employed approximately **3,970 associates** as of December 31, 2024, including 3,060 full-time and 910 part-time[119](index=119&type=chunk) - The senior management team boasts an average tenure of **over 20 years** with the company[120](index=120&type=chunk) - In 2024, the company's mentoring program engaged approximately **80 mentors** and over **230 mentees**, reporting over **1,500 hours of mentoring**[121](index=121&type=chunk)[122](index=122&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) [Summary of Key Risks](index=34&type=section&id=Summary%20of%20Key%20Risks) The company faces significant risks from global financial market volatility, including equity market movements and interest rate fluctuations, impacting fee income, guaranteed benefit liabilities, and hedging effectiveness, while financial strength ratings are critical, and dependence on subsidiary dividends, operational risks, complex regulations, and cybersecurity threats also pose challenges - Equity market declines can negatively impact fee-based income, proportional to AUM, and increase liabilities for guaranteed benefits[137](index=137&type=chunk)[138](index=138&type=chunk) - Interest rate movements pose risks, as falling rates increase the present value of future guarantees and rising rates create disintermediation risk[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - As a holding company, Jackson Financial's ability to meet obligations depends on dividends from its insurance subsidiaries, which are restricted by state insurance laws and regulations[153](index=153&type=chunk)[154](index=154&type=chunk) - The company faces significant counterparty credit risk from derivatives used for hedging and reinsurance agreements, with a large concentration of risk with Athene for its fixed and fixed index annuity blocks[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) - Changes in U.S. federal income tax laws, including the elimination of tax deferral for annuities, could adversely affect product sales, and the new **15% Corporate Alternative Minimum Tax (CAMT)** could also materially affect results[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - A decrease in the **RBC ratio** of insurance subsidiaries could trigger increased regulatory scrutiny, corrective measures, and rating downgrades[180](index=180&type=chunk)[181](index=181&type=chunk) [Cybersecurity](index=48&type=section&id=Item%201C.%20Cybersecurity) [Cybersecurity Risk Management and Governance](index=48&type=section&id=Cybersecurity%20Risk%20Management%20and%20Governance) Jackson's enterprise-wide cybersecurity risk management framework aligns with industry standards and regulations, featuring a 24/7 internal Security Operations Center, regular threat intelligence reviews, and external penetration testing, with governance provided by the Board's Finance and Risk Committee and a third-party vendor management program, reporting no material cybersecurity events for the period - The company's cybersecurity program aligns with the NIST Cyber Security Framework and regulations like New York's DFS Cybersecurity Requirements[220](index=220&type=chunk) - The Board's Finance and Risk Committee provides oversight, meeting at least annually with the CISO for in-depth reviews of cybersecurity risks[224](index=224&type=chunk) - The company's Information Security and Privacy Team comprises **over 70 full-time positions**, with a significant portion holding relevant industry certifications[227](index=227&type=chunk) - The company is not aware of any material cybersecurity events likely to have a material effect on its business, operations, or financial condition[223](index=223&type=chunk) [Market for Common Equity and Shareholder Matters](index=51&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) [Share Repurchases and Dividends](index=51&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) In 2024, Jackson Financial continued its capital return program, with the Board authorizing a $750 million increase to the share repurchase program on August 1, 2024, resulting in 974,324 shares repurchased during Q4 2024, and $568 million remaining under authorization as of February 18, 2025 Share Repurchases (Q4 2024) | Period | Total Shares Purchased (Program) | Average Price Paid Per Share (USD) | | :--- | :--- | :--- | | Oct 2024 | 469,244 | $98.05 | | Nov 2024 | 261,631 | $103.14 | | Dec 2024 | 243,449 | $93.64 | | **Q4 Total** | **974,324** | **-** | - On August 1, 2024, the Board of Directors authorized a **$750 million increase** to the share repurchase program, with **$568 million of authorization remaining** as of February 18, 2025[235](index=235&type=chunk)[362](index=362&type=chunk) [Management's Discussion and Analysis (MD&A)](index=53&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Executive Summary](index=53&type=section&id=Executive%20Summary) Jackson's 2024 performance featured strong capital returns, significant free capital generation exceeding $1 billion, and the strategic establishment of Brooke Re, a captive reinsurer, to optimize hedging and stabilize results, despite a Q4 2024 annual actuarial review resulting in a $445 million pretax income loss - In 2024, the company returned **$631 million to common shareholders**, comprising **$216 million in dividends** and **$415 million in share repurchases**[249](index=249&type=chunk) - Free capital generation **exceeded $1 billion in 2024**, with a target to exceed $1 billion again in 2025 under normal market conditions[249](index=249&type=chunk) - In Q1 2024, Jackson established Brooke Re, a captive reinsurer, to cede liabilities for variable annuity guaranteed benefits, designed to optimize hedging, stabilize capital, and produce more predictable results[249](index=249&type=chunk)[250](index=250&type=chunk)[252](index=252&type=chunk) - The 2024 annual actuarial assumption review resulted in a pretax income impact of **$(445) million**, primarily from updates to market risk benefit (MRB) reserves[253](index=253&type=chunk)[254](index=254&type=chunk) [Key Operating Measures](index=56&type=section&id=Key%20Operating%20Measures) In 2024, total sales grew to $19.8 billion from $13.9 billion in 2023, driven by strong RILA and fixed annuity sales, though net outflows increased to $(11.7) billion from $(6.3) billion due to higher variable annuity surrenders, partially offset by positive market performance that increased total AUM to $324.7 billion and retail annuity account value to $251.7 billion Sales by Product (Years Ended Dec 31, in millions USD) | Product | 2024 | 2023 | | :--- | :--- | :--- | | Variable annuities | $10,561 | $9,540 | | RILA | $5,674 | $2,890 | | Fixed Annuities | $1,433 | $193 | | **Total Retail Annuity Sales** | **$17,849** | **$12,833** | | **Total Institutional Product Sales** | **$2,000** | **$1,065** | | **Total Sales** | **$19,849** | **$13,898** | - Total retail annuity net flows were **$(11.7) billion in 2024**, a larger outflow compared to $(6.3) billion in 2023, driven by increased variable annuity surrenders, partially offset by strong RILA and fixed annuity sales[263](index=263&type=chunk) - Total Assets Under Management (AUM) **increased to $324.7 billion** at year-end 2024 from $315.8 billion at year-end 2023, primarily due to positive equity market returns[267](index=267&type=chunk) [Consolidated Results of Operations](index=67&type=section&id=Consolidated%20Results%20of%20Operations) For the year ended December 31, 2024, pretax income increased to $1.022 billion from $958 million in 2023, driven by a $403 million rise in fee income and a $153 million decrease in policy benefits, largely offset by a $276 million increase in operating costs and a $199 million decrease in net gains on derivatives and investments Consolidated Income Statement Highlights (Years Ended Dec 31, in millions USD) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Total revenues | $3,271 | $3,083 | | Total benefits and expenses | $2,249 | $2,125 | | **Pretax income (loss)** | **$1,022** | **$958** | | Net income (loss) attributable to JFI common shareholders | $902 | $899 | - The increase in pretax income was primarily due to a **$403 million increase in fee income** and a **$153 million decrease in policy benefits**[301](index=301&type=chunk) - The gains were partially offset by a **$276 million increase in operating costs** and a **$199 million decrease in total net gains on derivatives and investments**[301](index=301&type=chunk) [Segment Results of Operations](index=70&type=section&id=Segment%20Results%20of%20Operations) For 2024, the Retail Annuities segment saw pretax adjusted operating earnings increase to $1.86 billion, Institutional Products to $96 million, and Closed Life and Annuity Blocks narrowed its loss to $9 million, while Corporate and Other reported a larger loss of $264 million, primarily due to lower net investment income Pretax Adjusted Operating Earnings by Segment (Years Ended Dec 31, in millions USD) | Segment | 2024 | 2023 | | :--- | :--- | :--- | | Retail Annuities | $1,855 | $1,364 | | Institutional Products | $96 | $69 | | Closed Life and Annuity Blocks | $(9) | $(95) | | Corporate and Other | $(264) | $(173) | | **Total Pretax Adjusted Operating Earnings** | **$1,678** | **$1,165** | - Retail Annuities earnings increased by **$491 million**, primarily due to a **$424 million increase in fee income** and a **$301 million increase in spread income**[307](index=307&type=chunk)[309](index=309&type=chunk) - Closed Life and Annuity Blocks earnings improved by **$86 million**, mainly due to a **$70 million decrease in policy benefits** from actuarial updates and improved mortality[315](index=315&type=chunk) [Investments](index=76&type=section&id=Investments) Jackson's investment strategy focuses on a diversified, largely investment-grade fixed income portfolio, totaling $61.0 billion as of December 31, 2024, with 93% of debt securities rated investment grade and the commercial mortgage loan portfolio diversified across property types like apartments, warehouses, and retail Investment Portfolio Composition (as of Dec 31, in millions USD) | Investment Type | 2024 Total Value | 2023 Total Value | | :--- | :--- | :--- | | Debt Securities (Fair Value) | $43,335 | $42,643 | | Mortgage loans (Carrying Value) | $9,911 | $10,563 | | Other invested assets | $2,864 | $2,466 | | **Total Investments (Excluding Policy Loans, Derivatives)** | **$56,110** | **$55,672** | - As of December 31, 2024, **93.0% of the debt securities portfolio** was rated investment grade (BBB or higher), consistent with the prior year[550](index=550&type=chunk) - The commercial mortgage loan portfolio's largest exposures by property type at year-end 2024 were **Apartment (28%)**, **Warehouse (24%)**, and **Retail (19%)**[331](index=331&type=chunk) - The allowance for credit losses on mortgage loans **decreased to $121 million** at year-end 2024 from $165 million at year-end 2023, primarily due to changes in expected credit losses in the office sector[332](index=332&type=chunk) [Policy and Contract Liabilities](index=83&type=section&id=Policy%20and%20Contract%20Liabilities) Total policy and contract liabilities increased to $291.9 billion as of December 31, 2024, with 79% backed by separate account assets, primarily for variable annuities, and the 2024 annual actuarial assumption review resulting in a $445 million pretax loss, mainly due to a $434 million increase in variable annuity Market Risk Benefit (MRB) reserves from updated withdrawal utilization assumptions Policy and Contract Liabilities Breakdown (as of Dec 31, 2024, in billions USD) | Liability Type | Amount | | :--- | :--- | | Separate Accounts | $229.1 | | Other contract holder funds | $58.1 | | Reserves for future policy benefits | $9.7 | | Market Risk Benefits (Net Asset) | $(5.1) | | **Total** | **$291.9** | - The 2024 annual actuarial assumption review resulted in a pretax income loss of **$445 million**, including a **$434 million loss on variable annuity MRB reserves** primarily due to updated assumptions for withdrawal utilization on GMWB policies[254](index=254&type=chunk)[345](index=345&type=chunk) - As of December 31, 2024, **94% of fixed annuity and fixed-index annuity account values** had crediting rates at their guaranteed minimum[341](index=341&type=chunk) [Liquidity and Capital Resources](index=86&type=section&id=Liquidity%20and%20Capital%20Resources) Jackson maintains strong liquidity and capital, with its primary insurance subsidiary's statutory RBC ratio at 572% at year-end 2024, well above regulatory requirements, and the holding company relying on subsidiary dividends, including extraordinary ones related to Brooke Re's formation, supported by a $1.0 billion undrawn revolving credit facility and stable financial strength ratings - Jackson's primary insurance subsidiary reported a statutory risk-based capital (RBC) ratio of **572%** as of December 31, 2024, compared to 624% at year-end 2023[358](index=358&type=chunk) - The holding company maintains a minimum liquidity target of **$250 million**, sufficient to cover two years of fixed net expenses[359](index=359&type=chunk) - In 2024, Jackson's subsidiaries paid **$830 million in extraordinary dividends** to Brooke Life, which subsequently upstreamed **$785 million to JFI**[843](index=843&type=chunk)[844](index=844&type=chunk) - The company holds a **$1.0 billion revolving credit facility** expiring in 2028, which remained undrawn as of year-end 2024[380](index=380&type=chunk) - Financial strength ratings from major agencies (A.M. Best, Fitch, Moody's, S&P) were all stable, with ratings of **'A' or 'A3'**[389](index=389&type=chunk) [Critical Accounting Estimates](index=93&type=section&id=Critical%20Accounting%20Estimates) Management identifies critical accounting estimates including the valuation of reserves for future policy benefits based on mortality, persistency, and discount rates, the fair value of Market Risk Benefits (MRBs) sensitive to policyholder behavior and capital market inputs, income taxes (especially deferred tax assets and CAMT), reinsurance accounting, and the valuation and impairment of investments, particularly illiquid assets - Reserves for future policy benefits are based on best-estimate assumptions for mortality, persistency, and discount rates, which undergo annual review[396](index=396&type=chunk)[398](index=398&type=chunk) - The fair value of Market Risk Benefits (MRBs) is calculated using internal models with significant unobservable inputs, including policyholder behavior (lapse, utilization rates) and capital market assumptions (volatility, non-performance risk)[404](index=404&type=chunk)[405](index=405&type=chunk)[644](index=644&type=chunk) - The determination of the valuation allowance for deferred tax assets requires significant judgment regarding future taxable income[413](index=413&type=chunk)[414](index=414&type=chunk) - Investment valuation, particularly for assets without quoted market prices (Level 3), involves considerable uncertainty and judgment regarding economic conditions, credit risk, and liquidity[421](index=421&type=chunk)[422](index=422&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=101&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) [Market Risk Exposures and Management](index=101&type=section&id=Market%20Risk%20Exposures%20and%20Management) Jackson's primary market risks stem from interest rate and equity price movements, impacting its fixed-income portfolio, derivatives, and annuity liabilities, managed through product design, ALM, and a comprehensive hedging program that protects economic value and statutory capital but can lead to U.S. GAAP net income volatility, with sensitivity analysis showing significant impacts from interest rate and equity market changes - The company's hedging program seeks to protect economic value and statutory capital but does not directly hedge for U.S. GAAP liability movements, which can result in net income volatility[455](index=455&type=chunk)[456](index=456&type=chunk) Interest Rate Sensitivity Analysis (50 bps parallel shift, as of Dec 31, 2024, in millions USD) | Item | Fair Value | Impact of +50 bps | Impact of -50 bps | | :--- | :--- | :--- | :--- | | Fixed Rate Debt Securities | $30,236 | $(857) | $924 | | Market risk benefits | $(4,939) | $(1,728) | $2,001 | Equity Market Sensitivity Analysis (10% price change, as of Dec 31, 2024, in millions USD) | Item | Fair Value | Impact of +10% | Impact of -10% | | :--- | :--- | :--- | :--- | | Equity Securities & LPs | $1,814 | $(181) | $181 | | Market risk benefits | $(4,939) | $(1,722) | $2,187 | [Financial Statements and Supplementary Data](index=108&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) [Consolidated Financial Statements](index=112&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for Jackson Financial Inc. show total assets of $338.5 billion and total equity of $10.0 billion as of December 31, 2024, with net income attributable to common shareholders of $902 million, or $11.74 per diluted share, reflecting the company's significant investment portfolio, policy liabilities, and hedging activities Consolidated Balance Sheet Highlights (as of Dec 31, in millions USD) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Total Investments | $61,007 | $60,855 | | Separate account assets | $229,143 | $219,656 | | **Total assets** | **$338,450** | **$330,255** | | Total liabilities | $328,468 | $319,921 | | **Total equity** | **$9,982** | **$10,334** | Consolidated Income Statement Highlights (Year Ended Dec 31, in millions USD) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Total revenues | $3,271 | $3,083 | | Pretax income (loss) | $1,022 | $958 | | **Net income attributable to JFI common shareholders** | **$902** | **$899** | | **Diluted EPS** | **$11.74** | **$10.76** | Consolidated Cash Flow Highlights (Year Ended Dec 31, in millions USD) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,793 | $5,310 | | Net cash used in investing activities | $(7,090) | $(592) | | Net cash provided by (used in) financing activities | $2,373 | $(6,328) | [Notes to Consolidated Financial Statements](index=124&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial results, highlighting the Q1 2024 establishment of Brooke Re for variable annuity risk management, a significant investment in investment-grade debt, a major funds-withheld reinsurance agreement with Athene, the impact of market conditions on Market Risk Benefits (MRBs), and active capital management through dividends, buybacks, and debt maturities - In Q1 2024, Jackson established Brooke Re, a captive reinsurer, to which it ceded liabilities for variable annuity guaranteed benefits to optimize hedging and stabilize capital[510](index=510&type=chunk) - The company maintains a significant funds-withheld coinsurance agreement with Athene, ceding a large block of fixed and fixed-index annuity liabilities, with **$13.1 billion in assets held as collateral** as of December 31, 2024[707](index=707&type=chunk)[708](index=708&type=chunk) - The net Market Risk Benefit (MRB) position for variable annuities was a net asset of **$5.2 billion** at year-end 2024, an improvement from a net asset of $2.0 billion at year-end 2023, primarily due to favorable market performance[779](index=779&type=chunk) - In March 2023, the company issued **$533 million (net proceeds)** of Series A Preferred Stock[851](index=851&type=chunk) - In 2024, the company repurchased **5.8 million common shares for $415 million** and paid common dividends of **$2.80 per share**[859](index=859&type=chunk)[861](index=861&type=chunk) [Controls and Procedures](index=231&type=section&id=Item%209A.%20Controls%20and%20Procedures) [Management's Report on Internal Control Over Financial Reporting](index=231&type=section&id=Management%27s%20Report%20on%20Internal%20Control%20Over%20Financial%20Reporting) Management concluded that the company's internal control over financial reporting was effective as of December 31, 2024, based on the COSO framework, with the independent registered public accounting firm, KPMG LLP, also issuing an unqualified audit report on its effectiveness, and no material changes occurred during Q4 2024 - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2024[903](index=903&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter of 2024 that have materially affected, or are reasonably likely to materially affect, these controls[905](index=905&type=chunk)

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].