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].

Company Overview - Jackson Financial (NYSE: JXN) is highlighted as a significant investment option for investors interested in small-cap stocks within the financial sector [3]. Valuation Insights - Despite trading close to its recent all-time highs, Jackson Financial's valuation is considered low when compared to its peers [3].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Jackson Financial (JXN) - Jackson Financial currently holds a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - Over the past week, JXN shares increased by 10.14%, outperforming the Zacks Financial - Miscellaneous Services industry, which rose by 4.65% [6] - In a longer timeframe, JXN's monthly price change is 11.12%, compared to the industry's 4.07% [6] - Over the past quarter, JXN shares have risen by 30.41%, and over the last year, they have increased by 144.41%, while the S&P 500 has only moved 12.29% and 37.16% respectively [7] Trading Volume - JXN's average 20-day trading volume is 690,716 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, two earnings estimates for JXN have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $18.49 to $18.80 [10] - For the next fiscal year, two estimates have also moved upwards without any downward revisions [10]

Shares of Jackson Financial (NYSE: JXN ) have been a tremendous performer over the past year, gaining over 175%, making them one of the top-performing stocks in the market. After rallying post-election, shares have retraced some of the gains after reporting mixedOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an ...