Financial Data and Key Metrics Changes - Adjusted operating earnings for the second quarter were $350 million, supported by strong performance from spread products and higher yields in the bond portfolio [17][19] - Total adjusted capital exceeded $5.3 billion, reflecting a 5% increase since year-end 2024 [12][34] - Adjusted operating earnings per share was $4.87, with an adjusted figure of $5.12, up 5% from the prior year's second quarter [19][20] Business Line Data and Key Metrics Changes - Retail annuity sales reached $4.4 billion, a 9% increase over the first quarter and a 4% increase year-over-year [7][10] - RILA account balances increased by nearly 80% from the second quarter last year, with sales approaching $1.4 billion, up 16% from the previous quarter [6][7] - Variable annuity net outflows improved for the second consecutive quarter, totaling $2.2 billion, down 27% from a year ago [10][22] Market Data and Key Metrics Changes - Average retail annuity AUM increased to $249 billion, up from year-end 2024 [24] - The company experienced a 9.4% return on separate account assets, contributing approximately $19 billion to AUM [45] Company Strategy and Development Direction - The company remains committed to a balanced capital management strategy, focusing on disciplined investments, maintaining a strong balance sheet, and consistent capital return to shareholders [15][14] - Jackson is exploring opportunities for strategic partnerships and risk transfer transactions to enhance shareholder value [50][53] - The company aims to leverage Brook Re for potential M&A opportunities, enhancing capital generation and free cash flow [72][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong and sustainable capital generation supporting future growth initiatives and ongoing capital return to shareholders [12][13] - The need for financial security in retirement is increasingly recognized, positioning annuities as essential tools for clients [15][16] Other Important Information - The company returned $216 million to common shareholders in the quarter, a 60% increase from the previous year [32] - A cash dividend of $0.80 per common share was approved for the third quarter [14] Q&A Session Summary Question: Excess capital position and potential uses - Management reiterated the philosophy of generating excess capital, paying it as free cash flow, and returning capital to shareholders [40][42] Question: AUM levels and equity market impact - Strong equity market performance contributed to AUM growth, with solid margins expected despite some variable expense offsets [44][46] Question: Strategic considerations for business remixing - Management is open to strategic partnerships and risk transfer opportunities that enhance shareholder value [50][53] Question: RILA product features and competition - RILA sales increased 16% sequentially, with a competitive product offering that includes income options [60] Question: Risk management of RILA and legacy VA - The company manages RILA and legacy VA products separately, leveraging natural offsets in equity risk [70] Question: Potential for inorganic growth using Brook Re - Management confirmed that Brook Re could be leveraged for M&A opportunities, particularly in acquiring complementary blocks of business [72][80]