Jackson Financial Inc. · NYSE:JXN
Jackson Financial — Q4 2024 Earnings Presentation
35 slides from Jackson Financial's earnings presentation, Feb 20, 2025
Slide 1: Fourth Quarter and Full Year 2024 Financial Results
Jackson Financial Inc. Fourth Quarter and Full Year 2024 Financial Results For Presentation on February 20, 2025
Slide 2: Forward-Looking Statements and Non-GAAP Measures
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 historic
Slide 3: 2024 Full-Year Financial Results Key Highlights
2024 Full-Year Financial Results Key Highlights $902M $11.74 $631M 572% GAAP earnings GAAP earnings per Capital return Statutory capital position Net income attributable to share Common share dividends Jackson National Life Jackson Financial Inc. (JFI) Net income per common and repurchases Insurance
Slide 4: Delivered on All 2024 Financial Targets
Delivered on All 2024 Financial Targets 2024 Targets Full-Year Results Capital Return $550-$650 million capital return to common Returned $631 million of capital to common shareholders in 2024 shareholders Holdco Liquidity Holding company cash and highly liquid securities of more than $700 Approxima
Slide 5: Progress Since Becoming an Independent Company
Progress Since Becoming an Independent Company Significant Capital Return Growth 2021 2024 Each Quarter Dividend Per Common Share $0.50 $0.70 +40% 96% Total Capital Return $375M $631M +68% Midpoint of Initial Target Near the Top of the Target Range of $325-425m Range of $550-650m Diluted Share Count
Slide 6: Progress Since Becoming an Independent Company
Progress Since Becoming an Independent Company Diversified New Business Mix 2021 2024 Total Sales $19.8bn Total Sales $19.8bn Non-VA Sales By Product 53% +43pts 96% VA FA/FIA RILA Institutional VA FA/FIA RILA Institutional 36% Non-LB Benefit Mix 64% +28pts VA With Lifetime Benefits All Other Sales V
Slide 7: 2025 Financial Targets
2025 Financial Targets Stronger More Stable Capital Generation Supports Increased Capital Return Target Capital Return $700-$800 million capital Represents an 11%-27% increase in total capital return target from 2024 return to common actual. Increased 1Q25 common dividend 14% to $0.80 per share shar
Slide 8: Consolidated Results
Consolidated Results Fourth Quarter 2024 Adjusted Operating Earnings1 Key Takeaways ($ millions) 350 349 Adjusted Operating Earnings 4Q24 vs. 4Q23 204 • 4Q24 benefited from increased fee income resulting from higher average variable annuity assets under management and improved spread income, partial
Slide 9: Notable Items Fourth Quarter 2024
Notable Items Fourth Quarter 2024 4Q23 4Q24 After- EPS- After- EPS- ($ millions, except per share amounts) Pretax Pretax tax1,2 Diluted tax1,2 Diluted Adjusted Operating Earnings3 203 204 $2.53 405 349 $4.65 Notable Items Included in Adjusted Operating Earnings Out performance/(Under performance) fr
Slide 10: Notable Items Full Year 2024
Notable Items Full Year 2024 FY23 FY24 After- EPS- After- EPS- ($ millions, except per share amounts) Pretax Pretax tax1,2 Diluted tax1,2 Diluted Adjusted Operating Earnings3 1,165 1,073 $12.84 1,678 1,443 $18.79 Notable Items Included in Adjusted Operating Earnings Out performance/(Under performanc
Slide 11: Stable Non-Operating Results
Stable Non-Operating Results Fourth Quarter 2024 Highlights ($ millions) 86 • Stable guarantee fee stream supports hedging needs 347 • Economic hedging better aligns with U.S. GAAP accounting following the (131) establishment and funding of Brooke Re, leading to a better alignment between adjusted e
Slide 12: Continued Progress on Retail Sales Diversification
Continued Progress on Retail Sales Diversification1 Fourth Quarter 2024 Retail Sales Highlights ($ billions) 5.3 • 4Q24 retail annuity sales up 42% from 4Q23, with an 4.7 increasingly diversified product mix 3.3 • 2024 retail annuity sales of $17.8 billion up from $12.8 billion in 2023. This amount
Slide 13: Segment Results
Segment Results Fourth Quarter 2024 ($ millions) Retail ($ millions) Institutional ($ millions) Closed Block Pre-tax adjusted operating earnings1 ($ millions) Pre-tax adjusted operating earnings1 Pre-tax adjusted operating earnings1 Annual actuarial assumption impact Annual actuarial assumption impa
Slide 14: Improved Capital Generation and Free Cash Flow
Improved Capital Generation and Free Cash Flow Capital Generation Provides Foundation for New Free Cash Flow4 at Holding Company Allows for Capital Return to Common Shareholders is Business Growth and Distributions to Holding Financial Flexibility and Long-Term Value Creation Balanced and Consistent
Slide 15: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Highlights • Jackson National Life Insurance Company (JNLIC) estimated RBC ratio of 572% as of end of 4Q24 • Statutory Total Adjusted Capital (TAC) at JNLIC ended 4Q24 at $5.1 billion • JNLIC generated $1.7 billion of capital in 20241 • Free cash flow2 of $767 m
Slide 16: 2024 Capital Return Targets Achieved While Maintaining a Strong Balance Sheet
2024 Capital Return Targets Achieved While Maintaining a Strong Balance Sheet Demonstrated Maintained strong Achieved all 2024 Well-positioned to distribution balance sheet and key financial targets expect continued strength and robust levels of long-term value consistent capital liquidity creation
Slide 17: Investments
Investments @ JACKSON’
Slide 18: High Quality, Diversified Investment Portfolio
High Quality, Diversified Investment Portfolio Strategic, conservative Highly rated and Corporate portfolio is underwriting across our diversified commercial concentrated in portfolio mortgage loan office investment-grade portfolio, which is less securities than 2% of the general account portfolio S
Slide 19: U.S. GAAP – Investment Portfolio
U.S. GAAP – Investment Portfolio December 31, 2024 Investment Portfolio Classification1 Key Highlights Limited partnerships 4% Other invested assets <1% • Market/book ratio of the fixed maturity portfolio is 0.93 U.S government securities 7% Derivatives <1% Other government securities • Policy loans
Slide 20: Statutory – Investment Portfolio
Statutory1 – Investment Portfolio December 31, 2024 Investment Portfolio Classification Key Highlights • Market/book ratio of the fixed maturity portfolio is 0.93 Other invested assets <1% Limited partnerships 3% Derivatives 0% U.S government securities 9% Policy loans 2% Other government securities
Slide 21: Statutory – Fixed Maturity Rating Distribution
Statutory – Fixed Maturity Rating Distribution December 31, 2024 98% of portfolio is investment grade US Treasuries NAIC 1A-1D (AAA-AA-) 12% 16% NAIC 5/6 <0.1% NAIC 4A-4C (B) <1% NAIC 3A-3C (BB) 1% $34B NAIC 1E-1G (A) 33% NAIC 2A-2C (BBB) 37% Note: Percentages may not total 100 due to rounding. 21
Slide 22: Statutory – Corporate Portfolio
Statutory – Corporate Portfolio December 31, 2024 Corporate Portfolio Rating Distribution1 Key Highlights CCC and below: <0.1% • Market/book ratio of the corporate portfolio is 0.95 B: <1% AAA: <1% BB: 1% AA: 7% • High-yield corporates account for 1% of the total investment portfolio and 2% of total
Slide 23: Statutory – ABS Portfolio
Statutory – ABS Portfolio December 31, 2024 ABS Sector Distribution1 NAIC Rating Distribution Other 4% Small Business Loans 1% Whole Business Securitizations 2% Fiber 2% NAIC 4 NAIC 1A-1D (AAA-AA-) Aircraft 3% <0.1% 52% Data Center 3% NAIC 3 (BB) <0.1% PDP Wells 4% NAIC 2 (BBB) Music Royalties 5% 6%
Slide 24: Statutory – Collateralized Loan Obligations (CLO) Debt
Statutory – Collateralized Loan Obligations (CLO) Debt December 31, 2024 CLO NAIC Distribution1 Key Highlights AAA • CLO exposure highly rated with virtually all rated single A 39% B or above <1% BBB • Exposure is diversified among 48 different managers and 3% 78 CLOs • Each CLO is diversified, aver
Slide 25: Statutory – Commercial Mortgage-Backed Securities (CMBS)
Statutory – Commercial Mortgage-Backed Securities (CMBS) December 31, 2024 CMBS Distribution CMBS Single Asset/Single Borrower Distribution Single Asset/Single Borrower 43% Other, 3% Multi-family, 6% Industrial, 7% $1.4B Agency 4% Hotel, 7% Conduit 53% Retail, 8% Key Highlights Office, 12% • 97% are
Slide 26: Statutory – Commercial Mortgage Loan Portfolio
Statutory – Commercial Mortgage Loan Portfolio1 December 31, 2024 CML NAIC Distribution CML Property Type Distribution Industrial 28% CM 1 69% Multi-Family CM 3/4 Other 26% 5% 3% $6.7B Hotels $6.7B 10% CM 2 Office 27% 11% Retail Loan-to-Value / Debt Service Coverage2 21% Debt Service Coverage Ratio
Slide 27: Statutory – Commercial Mortgage Loan Office Exposure
Statutory – Commercial Mortgage Loan Office Exposure1 December 31, 2024 NAIC Rating Distribution – Office Exposure Office Type – Office Exposure Geographic – Office Exposure CM 1 Medical Office 81% 1% Suburban Single Story 73% CM 3/4 Office & R&D Principal 11% 1% Geographic Location Balance % Office
Slide 28: Appendix
Appendix @ JACKSON’
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to presenting our results of operations and financial condition in accordance with U.S. GAAP, we use and report selected non-GAAP financial measures. Management believes that the use of these non-GAAP financial measures, together with relevant U.S. GAAP financ
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Book Value Attributable to Common Shareholders Adjusted Book Value Attributable to Common Shareholders excludes Preferred Stock and Accumulated Other Comprehensive Income (Loss) (AOCI) attributable to Jackson Financial Inc. (JFI), which does not include AOCI aris
Slide 31: Adjusted Operating Earnings Reconciliation
Adjusted Operating Earnings Reconciliation For the Twelve $ millions, except effective tax rate For the Three Months Ended Months Ended 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 12/31/23 12/31/24 Net income (loss) attributable to Jackson Financial Inc. common shareholders (1,570) 784 264 (480) 334 8
Slide 32: Select U.S. GAAP to Non-GAAP Reconciliation
Select U.S. GAAP to Non-GAAP Reconciliation For the Nine $ millions, except per share and shares outstanding data For the Three Months Ended Months Ended 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 12/31/23 12/31/24 Net Income (Loss) (1,560) 802 282 (466) 358 954 976 Income attributable to non-control
Slide 33: Select U.S. GAAP to Non-GAAP Reconciliation
Select U.S. GAAP to Non-GAAP Reconciliation For the Twelve $ millions Months Ended 12/31/23 12/31/24 Jackson Financial Inc. Net Cash Provided by Operating Activities (Parent Company Only) 398 51 Adjustments from Net Cash Provided by Operating Activities to Free Cash Flow: Capital Distribution from S
Slide 34: Glossary
Glossary Assets Under Management (AUM) - Investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by PPM America, Inc. (PPM), including our investment portfolio (but excludes assets held in funds withheld accounts for reinsurance transactions), (ii) third-party
Slide 35: Glossary
Glossary Net Flows - The net change in customer account balances during a period, including gross premiums, surrenders, withdrawals and benefits. Net flows exclude investment performance, interest credited to customer accounts and policy charges. Registered Index-Linked Annuity (RILA) - A registered