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]
Jackson(JXN) - 2025 Q4 - Annual Report