Jackson Financial Inc. · NYSE:JXN
Jackson Financial — Investor Presentation (September 2022)
18 slides from Jackson Financial's investor presentation, Sep 8, 2022
Slide 1: Jackson Financial Inc. Investor Presentation
Jackson Financial Inc. Investor Presentation September 2022
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures This document may contain certain statements that constitute “forward-looking statements.” Forward-looking statements can generally be identified by their use of terms such as “anticipate,” “estimate,” “believe,” “expect,” “could,” “forecast,” “may,”
Slide 3: A Leading Retirement Solutions Provider
A Leading Retirement Solutions Provider An Established Market Presence Account Value (Q2 2022)(3) 1% • Broad capabilities across retail and institutional products 4% 4% – Offering clients a diversified mix of variable, fixed and fixed index annuities and institutional products $226b • A recognized t
Slide 4: Addressing Retirement Needs of Americans
Addressing Retirement Needs of Americans Our annuities enable Americans to pursue financial freedom for life Provide Retirement Benefit from Rising Markets with Mitigate Longevity Risk and Income Downside Protection Provide Family Protection • Need for guaranteed retirement • Capture benefit of risi
Slide 5: Differentiated Product Approach and Strong Reputation
Differentiated Product Approach and Strong Reputation Consistent Value Proposition • Unique ‘menu based’ product platform – all features individually priced • Standalone benefits provide transparent pricing and best serve customer needs • Investment freedom without forced allocations or managed vola
Slide 6: Second Quarter 2022 Highlights
Second Quarter 2022 Highlights Resilient Earnings Results • Net Income attributable to JFI of $2.9 billion • Adjusted Operating Earnings(1) of $225 million • Pretax Adjusted Operating Earnings, excluding notable items(2), of $481 million Strong Capital Position • Operating company estimated Risk Bas
Slide 7: Cumulative Capital Return to Shareholders
Cumulative Capital Return to Shareholders May 10, 2022 JXN announces second quarter 2022 dividend – 2Q22 $0.55 per share March 14, 2022 JXN completes $28m share repurchase from Athene. $569m March 2, 2022 JXN updates capital return target to $425-$525m for calendar year 2022 JXN announces increased
Slide 8: Appendix
Appendix
Slide 9: Distribution Capabilities across a Variety of Channels
Distribution 2 Capabilities across a Variety of Channels ◼ Focused on banks, credit unions and other insurance ◼ Focused on registered representatives who are typically carriers that specialize in P&C insurance but are running their own practices and includes branch offices looking to offer annuity
Slide 10: Prudent Pricing and Product Design Process
Prudent Pricing and Product Design Process Pricing and Product Design Outcome • Consistent, disciplined approach to product pricing • Long term organic cash flow generation ‒ Regular experience reviews to validate pricing ‒ Based on economic rather than market share targets • Consistently high retur
Slide 11: Embedded Risk Management Approach
Embedded Risk Management Approach • Lead on product differentiation rather than price • Rigorous evaluation process • Have not offered buybacks due to healthy in- force book • Focus on funds where we believe we can transact in highly correlated hedge assets • Less than 5% of in-force sold prior to 2
Slide 12: Hedging Philosophy
Hedging Philosophy Healthy, well-designed variable annuity book drives a differentiated approach to hedging Highlights • Balanced approach that protects against adverse market events while stabilizing statutory distributable earnings throughout market cycles • Our hedging philosophy has primarily fo
Slide 13: U.S. GAAP – Investment Portfolio
U.S. GAAP – Investment Portfolio June 30, 2022 Investment Portfolio Classification(1) Key Highlights • Market/book ratio of the fixed maturity portfolio is 0.92 Other invested assets 0.9% Limited Partnerships 5.7% U.S government securities 6.8% • Exposure to below investment grade securities(2) is o
Slide 14: Statutory – Investment Portfolio
Statutory – Investment Portfolio June 30, 2022 Investment Portfolio Classification(1) Key Highlights • Market/book ratio of the fixed maturity portfolio is 0.92 Limited Partnerships 4.0% Other invested assets 0.8% Derivatives 2.3% • Exposure to below investment grade securities is only 2% U.S govern
Slide 15: Drivers of U.S. GAAP Guaranteed Benefits and Hedging Results
Drivers of U.S. GAAP Guaranteed Benefits and Hedging Results Impact to Total Guaranteed Macroeconomic Factor Benefit Reserves and Reason Hedging Results Equity Markets Up Negative Hedges fully mark to fair value, while not all liabilities are fully fair valued Equity Markets Down Positive (SOP 03-1)
Slide 16: Resilient Capitalization with Effective Hedging Program
Resilient Capitalization with Effective Hedging Program Proven variable annuity hedge performance during financial stresses RBC Ratio Before and After Stress (1) Overview (%) Global Financial Crisis 2018 Equity Shock COVID-19 Pandemic 1• Decline due to investment losses and asset Excluding investmen
Slide 17: Adjusted Operating Earnings Reconciliation
Adjusted Operating Earnings Reconciliation For the Six $ millions, except effective tax rate For the Three Months Ended Months Ended 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 6/30/21 6/30/22 Adjusted Operating Earnings Net income (loss) attributable to Jackson Financial Inc. (540) 206 585 2,025 2,903
Slide 18: Select GAAP to Non-GAAP Reconciliation
Select GAAP to Non-GAAP Reconciliation $ millions, except per share and shares outstanding data For the Three Months Ended For the Six Months Ended 6/30/21 9/30/21 12/31/21 3/31/22 6/30/22 6/30/21 6/30/22 Net Income (Loss) (484) 268 661 2,056 2,934 2,516 4,990 Income attributable to non-controlling
Jackson Financial — Investor Presentation (September 2022) on 6ix