Jackson Financial logo Jackson Financial (NYSE:JXN) executives said the company exceeded its 2025 financial targets, set new sales records, and raised its 2026 outlook for both capital generation and shareholder returns during the company’s fourth-quarter earnings call. Strategic actions: TPG partnership and expanded captive strategy CEO Laura Prieskorn opened the call by highlighting recently announced strategic actions, including the closing of Jackson’s long-term strategic partnership with TPG. Pries ...

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]

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 ...

Core Viewpoint - The analysis indicates a cautious stance on Voya Financial (VOYA) due to premium valuation and weak earnings momentum limiting its upside potential [1] Group 1: Company Analysis - Voya Financial is facing challenges with its premium valuation, which is seen as a barrier to potential growth [1] - The earnings momentum of Voya Financial is relatively weak, contributing to the overall cautious outlook on the stock [1] Group 2: Analyst Background - The analyst has over 18 years of experience in the financial markets, specializing in the financial sector [1] - The analyst has worked in various institutions within the industry, primarily on the buy side and related to portfolio management [1]

Achieved retail annuity sales of nearly $20 billion in 2025, the highest level since 2019, driven by the successful launch of RILA 3.0 and new fixed index annuity offerings. Closed a strategic partnership with TPG to accelerate growth in spread-based businesses, leveraging TPG's investment capabilities to enhance asset sourcing and yield. Surpassed 2025 financial targets with over $1 billion in free capital generation for the second consecutive year, supported by stable fee income and increased invest ...

Core Viewpoint - The State Street SPDR S&P 600 Small Cap Value ETF (SLYV) and iShares SP Mid-Cap 400 Value ETF (IJJ) target U.S. value stocks but differ in focus on small-cap and mid-cap segments, leading to variations in returns, risk, and sector allocation [1][9]. Cost & Size Comparison - SLYV has a lower expense ratio of 0.15% compared to IJJ's 0.18% and a higher dividend yield of 1.9% versus IJJ's 1.7% [3][4]. - As of February 4, 2026, SLYV's one-year return is 13.3%, while IJJ's is 9.8% [3]. - SLYV has assets under management (AUM) of $4.5 billion, while IJJ has $8.5 billion [3]. Performance & Risk Comparison - Over five years, SLYV experienced a maximum drawdown of -28.68%, while IJJ had a drawdown of -22.68% [5]. - An investment of $1,000 in SLYV would grow to $1,357 over five years, compared to $1,528 for IJJ [5]. Portfolio Composition - IJJ tracks a mid-cap value index with 305 stocks, heavily weighted in financial services (25%), followed by industrials (17%) and consumer cyclicals (14%) [6]. - SLYV consists of 460 holdings with a more balanced sector distribution: financial services (21%), consumer cyclicals (18%), and industrials (14%) [7]. Investment Implications - Both SLYV and IJJ aim to provide strong returns by focusing on undervalued stocks, with SLYV offering greater growth potential but higher volatility [9][10]. - SLYV's higher beta of 1.22 indicates more price volatility compared to IJJ's beta of 1.12 [11].

Core Viewpoint - Jackson Financial Inc. (JXN) has shown strong performance over the past year, with a share price increase of 30% despite concerns regarding the complexity of its closed block annuities [1] Group 1: Company Performance - The company has demonstrated excellent hedging performance and resilience in volatile markets, indicating the benefits of its strategies [1] Group 2: Investment Strategy - The analysis reflects over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories, aiming for outsized returns with a favorable risk/reward profile [1]

Core Viewpoint - Jackson Financial Inc. has formed a long-term strategic partnership with TPG Inc. to capitalize on the establishment of a new captive reinsurer, Hickory Brooke Reinsurance Company, aimed at enhancing Jackson's product offerings and market competitiveness [1][9]. Partnership Details - The partnership combines Jackson's expertise in annuity products and distribution with TPG's private credit platform, aiming to expand Jackson's spread-based product sales and provide flexibility for future insurance solutions [3][5]. - TPG will invest $500 million in Jackson, acquiring approximately 6.5% equity stake, while Jackson will issue 4,715,554 shares at $106.03 per share [7][8]. Investment Management Arrangement - Jackson and TPG have established a non-exclusive investment management arrangement for an initial term of 10 years, with automatic one-year renewals through year 15, enhancing Jackson's investment capabilities [5][6]. - TPG will provide Investment Grade Asset Based Finance and Direct Lending capabilities to complement Jackson's asset management expertise through its subsidiary PPM America, Inc. [5][6]. Capitalization of Hickory Re - The capital from TPG's investment, along with $150 million in excess cash from Jackson, will be utilized to capitalize Hickory Re, which is designed to accelerate sales growth of Jackson's fixed and fixed index annuity products [9]. - The transactions are expected to enhance Jackson's future profitability, general account asset growth, and capital generation, supporting continued growth in free cash flow and capital returns to shareholders [10]. Closing Conditions - The transaction is subject to customary closing conditions and is anticipated to close in the first quarter of 2026 [10].

Core Viewpoint - The strategic development call is aimed at discussing the company's future direction and performance expectations, with a focus on forward-looking statements and financial measures [2][3]. Group 1: Company Leadership - The call features key executives including CEO Laura Prieskorn and CFO Don Cummings, along with other senior leaders from Jackson [4]. Group 2: Financial Disclosures - Jackson's filings with the SEC provide essential information regarding factors that could lead to significant deviations in actual results compared to expectations [3]. - The company is not obligated to update forward-looking statements unless legally required, indicating a focus on current management expectations [3]. Group 3: Presentation Format - The call is structured to include remarks from various executives, emphasizing the importance of strategic communication with investors [4].

Core Insights - The U.S. national debt has surpassed $38 trillion, resulting in a debt-to-GDP ratio of approximately 120%, which significantly impacts monetary policy and financial markets [1][10] Banking Industry Overview - The current debt situation creates a complex operating environment for the banking sector, with Bank Exchange-Traded Funds (ETFs) becoming a focal point for investors [2][10] - The $38 trillion debt burden presents a paradox for banks, as increased Treasury issuance could enhance Net Interest Income (NII) if the yield curve remains favorable, while also posing risks of "fiscal dominance" that may pressure the Federal Reserve to maintain low interest rates [3][4] Interest Rates and Fiscal Dynamics - If the Federal Reserve raises interest rates excessively, the government's interest payments, exceeding $1 trillion annually, could become unsustainable, leading to potential fiscal crises [5] - Conversely, keeping rates below inflation to reduce the real value of debt could compress banks' profit margins, creating a double-edged sword scenario for the banking sector [5] Market Outlook for 2026 - Analysts maintain a "Neutral" but cautious outlook for the U.S. banking industry in 2026, suggesting that while large-cap banks have strong balance sheets, the sector is currently "fully valued" [7] - The year 2026 is expected to focus on active security selection as the market navigates the challenges posed by the $38 trillion debt [8] Banking ETFs Performance - The State Street SPDR S&P Bank ETF (KBE) has $1.38 billion in assets, providing exposure to 102 banking companies and has gained 17% over the past year [9][11] - The Invesco KBW Bank ETF (KBWB), with a market value of $6.29 billion, has surged 36.7% over the past year, focusing on 26 U.S. banks [12] - The First Trust NASDAQ Bank ETF (FTXO) has net assets of $277.9 million and has increased by 24.7% over the past year [13]