Financial Data and Key Metrics Changes - Adjusted operating earnings for Q3 2025 were $433 million, an increase of over 20% from the previous year, primarily driven by the retail annuities business [4][12] - Free capital generation exceeded $1 billion year-to-date, with free cash flow at $719 million [9][28] - The risk-based capital (RBC) ratio ended the quarter at an estimated 579%, significantly above the minimum target of 425% [10][31] Business Line Data and Key Metrics Changes - Retail annuity sales reached over $5 billion for the quarter, the highest since the company became independent, with RILA sales accounting for 38% of total retail annuity sales [4][5] - RILA account balance increased to nearly $18 billion, a 21% increase from the previous quarter and a 74% increase year-over-year [5][15] - Variable annuity sales increased by 13% from the second quarter and 8% year-over-year, with sales without a lifetime benefit up 24% year-to-date [6][12] Market Data and Key Metrics Changes - Average retail annuity assets under management (AUM) rose to $263 billion, reflecting strong non-variable annuity net flows and separate account performance [18] - Strong equity market performance led to nearly $25 billion in separate account investment performance year-to-date, exceeding variable annuity net outflows by over $11 billion [17][30] Company Strategy and Development Direction - The company focuses on product innovation and consumer choice, with recent launches in fixed index annuities expected to contribute to future sales growth [8][10] - The strategy includes diversifying the business mix by increasing spread product sales while maintaining capital flexibility for shareholder returns [9][40] - The company aims to leverage its investment manager's capabilities to enhance competitiveness and profitability in spread-based products [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining long-term leadership in the annuity market, supported by a resilient capital position and effective risk management strategies [11][33] - The company anticipates continued strong performance in the fourth quarter, expecting to exceed its capital return target range of $700-$800 million for 2025 [9][10] - Management highlighted the importance of ongoing investments in long-term growth and capital return to shareholders [10][30] Other Important Information - The board approved a $1 billion increase to the common share repurchase authorization and a cash dividend of $0.80 per common share for the fourth quarter [10][30] - The company has returned nearly $2.5 billion to common shareholders since becoming independent, exceeding its initial market capitalization [9][30] Q&A Session Summary Question: Actual to expected policyholder behavior - Management noted that the surrender rate has increased, primarily due to higher equity markets influencing surrender activity, but emphasized that they will review long-term assumptions based on comprehensive analysis [35][36] Question: RBC target and excess capital - Management confirmed that they have substantial excess capital and expect the RBC ratio to decrease over time as they diversify into more spread-type products while continuing to return capital [39][40] Question: Strategic value of closed-block segments - Management stated that the closed-block segment provides balance to the overall structure and closely monitors its performance, although it is not a significant portion of the balance sheet [40][41] Question: Hedging strategy and comparison with peers - Management expressed confidence in their hedging structure, highlighting that their approach allows for efficient risk management without the constraints faced by peers [42][43] Question: Impact of actuarial review on Brook RE - Management indicated that they expect minimal impacts at JNL from the actuarial review, with Brook RE anticipated to be self-sustaining in the long term [46][47]

Summary of F&G Conference Call Company Overview - **Company**: F&G (Fidelity & Guaranty Life) - **Industry**: Life Insurance and Annuities Key Points and Arguments Company Positioning and Strategy - F&G has undergone significant changes, including capital raising and a new reinsurance partnership, positioning itself for a more capital-light strategy with a focus on distribution rather than being a balance sheet-heavy company [3][4] - The company has committed $1 billion in capital to pursue this strategy, indicating a shift towards being a distributor for other companies' balance sheets [3] Retail Annuity Sales Growth - The industry has seen a substantial increase in annual annuity sales, from $250 billion to an expected $450 billion this year, attributed to demographic trends and increased acceptance of annuities by financial advisors [5][6] - The penetration rate of fixed annuities remains low, suggesting significant growth potential in this area [5] Competitive Environment - The annuity market has become increasingly competitive, particularly in the Multi-Year Guarantee Annuities (MYGA) space, where sales volume fluctuated significantly [8][9] - F&G maintains a stable business in Fixed Indexed Annuities (FIA), which is considered foundational for the company [9] Expense Management - F&G has taken actions to manage expenses due to spread pressure, aiming to improve the expense ratio by about 10 basis points [4][28] - The company has grown rapidly, leading to a reassessment of its project load and expense base [4] Pension Risk Transfer (PRT) Market - F&G focuses on the $100 million to $1 billion range in the PRT market, with a consistent pipeline of deals and a target of $1.5 to $2.5 billion in annual transactions [21][22] Return on Assets Target - F&G has set a five-year target for return on assets (ROA) of 133 to 155 basis points, with current performance at 129 basis points, indicating progress towards this goal [24][25][27] Reinsurance Strategy - The reinsurance strategy allows F&G to reduce capital requirements significantly, enhancing return on capital and positioning the company as a distributor rather than a balance sheet player [36][37] - The partnership with Blackstone is highlighted as a key component of this strategy, providing access to various asset classes [36][50] Life Insurance Business Performance - F&G's life insurance segment is performing well, with a focus on middle-market and cultural markets, contributing significantly to sales and profitability [57][58] - The company has a strong market share in Indexed Universal Life Insurance, ranking number six in sales [58] Investment Strategy and Market Conditions - The company is cautious about credit spreads and is not willing to stretch for returns, focusing on maintaining a stable investment portfolio [49][50] - F&G has a diversified asset allocation strategy, reducing exposure to floating rate assets as interest rates fluctuate [51] Regulatory Environment - The new NAIC rule on asset adequacy testing for reinsurance is not expected to have a significant impact on F&G, as the company is already compliant with rigorous testing standards [52][53] Future Outlook - F&G is optimistic about its growth trajectory, particularly in the annuity and life insurance markets, and is focused on leveraging its distribution strategy for future success [38][44] Additional Important Insights - The company is investing in technology and operational improvements to enhance productivity and scalability [34][32] - F&G's unique position in the market allows it to capitalize on opportunities in both the annuity and life insurance sectors, with a strong emphasis on independent distribution [44][58]

Financial Performance - Jackson Financial Inc reported a GAAP net loss attributable to common shareholders of $35 million, or $048 per share[8, 9, 10, 11] - Adjusted Operating Earnings were $376 million, or $510 per common share[12, 13] - Free cash flow was $213 million[13] - The company returned $231 million of capital to common shareholders through dividends and share repurchases[13, 17] Capital and Liquidity - Jackson National Life Insurance Company (JNLIC) estimated risk-based capital (RBC) ratio was 585% as of the end of 1Q25[13, 17, 53] - Holding company cash and highly liquid securities exceeded $600 million as of the end of 1Q25[17, 53] - JNLIC generated $441 million of statutory capital in 1Q25[45, 53] Sales and Diversification - Retail annuity sales increased by 9% compared to the prior year's first quarter[14, 32] - Retail sales reached $4 billion in 1Q25[30] - Fixed and fixed index annuity sales were up 74% from 1Q24[32] Investment Portfolio - The company's U S GAAP investment portfolio totaled $48 billion[60] - The statutory investment portfolio totaled $47 billion[65] - Exposure to below investment grade securities is 7% of the total U S GAAP investment portfolio and 1% of the statutory investment portfolio[63, 68]