Jackson Financial Inc. · NYSE:JXN
Jackson Financial — Q1 2025 Earnings Presentation
31 slides from Jackson Financial's earnings presentation, May 8, 2025
Slide 1: First Quarter 2025 Financial Results
Jackson Financial Inc. First Quarter 2025 Financial Results For Presentation on May 8, 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: First Quarter 2025 Key Highlights
First Quarter 2025 Financial Results Key Highlights ($35M) ($0.48) $231M 585% GAAP earnings GAAP earnings per Capital return Statutory capital position Net loss attributable to share Common share dividends Jackson National Life Jackson Financial Inc. (JFI) Net loss per common share and repurchases I
Slide 4: On Track to Deliver on 2025 Financial Targets
On Track to Deliver on 2025 Financial Targets 2025 Targets 2025 Progress Capital Return $700-$800 million capital In the first three months of 2025, returned $231 million of capital to return to common common shareholders shareholders Holdco Liquidity Holding company cash and highly liquid securitie
Slide 5: Consolidated Results
Consolidated Results First Quarter 2025 Adjusted Operating Earnings1 Key Takeaways ($ millions) 376 Adjusted Operating Earnings 334 349 1Q25 vs. 1Q24 • 1Q25 benefited from higher spread income resulting from growth in average RILA assets under management (AUM) 1Q25 vs. 4Q24 1Q24 4Q24 1Q25 • Increase
Slide 6: Notable Items
Notable Items First Quarter 2025 1Q24 1Q25 After- EPS- After- EPS- ($ millions, except per share amounts) Pretax Pretax tax1,2 Diluted tax1,2 Diluted Adjusted Operating Earnings3 389 334 $4.23 442 376 $5.10 Notable Items Included in Adjusted Operating Earnings Out performance/(Under performance) fro
Slide 7: Continued Progress on Retail Sales Diversification
Continued Progress on Retail Sales Diversification First Quarter 2025 Retail Sales1 Highlights ($ billions) 4.7 • 1Q25 retail annuity sales up 9% from 1Q24, with an 4.0 increasingly diversified product mix 3.7 • RILA sales grew 3% when compared to 1Q24 • Fixed and fixed index annuity sales up 74% fr
Slide 8: Segment Results
Segment Results First Quarter 2025 ($ 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 513 19 28 419 420 (2) 31 (68) 19
Slide 9: Stable Non-Operating Results
Stable Non-Operating Results First Quarter 2025 Highlights ($ millions) Overall, our hedging program performed well in 1Q25 with gains on our hedge 442 assets from down equity markets and interest rates. Volatility was elevated during the quarter which impacts our consolidated Net Hedge Results, but
Slide 10: Improved Capital Generation and Free Cash Flow
Improved Capital Generation and Free Cash Flow Capital Generation Provides Foundation for New Free Cash Flow3 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 11: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Highlights • JNLIC generated $441 million of statutory capital in 1Q251 Returned more than • Free cash flow2 of $213 million during 1Q25 $2.0 billion to common • Jackson National Life Insurance Company (JNLIC) estimated RBC ratio of 585% as of end of 1Q25 shareh
Slide 12: 2025 Capital Return Targets On Track While Maintaining a Strong Balance Sheet
2025 Capital Return Targets On Track While Maintaining a Strong Balance Sheet Demonstrated Maintained strong On track to deliver Well-positioned to distribution balance sheet and on 2025 key expect continued strength and robust levels of financial targets long-term value consistent capital liquidity
Slide 13: Investments
Investments @ JACKSON’
Slide 14: 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 1
Slide 15: U.S. GAAP – Investment Portfolio
U.S. GAAP – Investment Portfolio March 31, 2025 Investment Portfolio Classification1 Key Highlights Other invested assets <1% Limited partnerships 4% U.S government securities 7% • Market/book ratio of the fixed maturity portfolio is 0.94 Derivatives 1% Other government securities Policy loans 2% 1%
Slide 16: Statutory – Investment Portfolio
Statutory1 – Investment Portfolio March 31, 2025 Investment Portfolio Classification Key Highlights Other invested assets <1% • Market/book ratio of the fixed maturity portfolio is 0.95 Limited partnerships 3% U.S government securities 9% Derivatives <1% Policy loans 2% Other government • Exposure t
Slide 17: Statutory – Fixed Maturity Rating Distribution
Statutory – Fixed Maturity Rating Distribution March 31, 2025 98% of portfolio is investment grade US Treasuries NAIC 1A-1D (AAA-AA-) 11% 16% NAIC 5/6 <0.1% NAIC 4A-4C (B) <1% NAIC 3A-3C (BB) 1% $36B NAIC 1E-1G (A) 33% NAIC 2A-2C (BBB) 38% Note: Percentages may not total 100 due to rounding. 17
Slide 18: Statutory – Corporate Portfolio
Statutory – Corporate Portfolio March 31, 2025 Corporate Portfolio Rating Distribution1 Key Highlights CCC and below: <0.1% • Market/book ratio of the corporate portfolio is 0.96 B: <1% AAA: <1% BB: 1% AA: 7% • High-yield corporates account for 1% of the total investment portfolio and 2% of total co
Slide 19: Statutory – ABS Portfolio
Statutory – ABS Portfolio March 31, 2025 ABS Sector Distribution1 NAIC Rating Distribution Whole Business Securitizations 1% Other 6% Aircraft EETC 2% NAIC 1A-1D (AAA-AA-) Aircraft 2% NAIC 4 43% <0.1% GP Stakes 3% NAIC 3 (BB) <0.1% Music Royalties 4% Data Center 4% NAIC 2 (BBB) 9% PDP Wells 4% $3.6B
Slide 20: Statutory – Collateralized Loan Obligations (CLO) Debt
Statutory – Collateralized Loan Obligations (CLO) Debt March 31, 2025 CLO NAIC Distribution1 Key Highlights AAA 35% • CLO exposure highly rated with virtually all rated single A B or above <1% • Exposure is diversified among 46 different managers and BBB 85 CLOs 5% • Each CLO is diversified, averagi
Slide 21: Statutory – Commercial Mortgage-Backed Securities (CMBS)
Statutory – Commercial Mortgage-Backed Securities (CMBS) March 31, 2025 CMBS Distribution CMBS Single Asset/Single Borrower Distribution Single Asset/Single Borrower 44% Other, 3% Multi-family, 4% Hotel, 7% $1.4B Agency Industrial, 8% 4% Conduit 52% Retail, 9% Key Highlights Office, 13% • 95% are ra
Slide 22: Statutory – Commercial Mortgage Loan Portfolio
Statutory – Commercial Mortgage Loan Portfolio1 March 31, 2025 CML NAIC Distribution CML Property Type Distribution Industrial CM 1 28% 65% Multi-Family CM 3/4 Other 27% 5% 3% $6.9B Office 9% $6.9B CM 2 Hotels 30% 11% Retail Loan-to-Value / Debt Service Coverage2 22% Debt Service Coverage Ratio • Hi
Slide 23: Statutory – Commercial Mortgage Loan Office Exposure
Statutory – Commercial Mortgage Loan Office Exposure1 March 31, 2025 NAIC Rating Distribution – Office Exposure Office Type – Office Exposure Geographic – Office Exposure CM 1 81% Suburban Medical Office 73% Principal CM 3/4 Geographic Location Balance % Office 11% <1% Washington-Baltimore-Arlington
Slide 24: Appendix
Appendix @ JACKSON’
Slide 25: 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 26: 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 27: Adjusted Operating Earnings Reconciliation
Adjusted Operating Earnings Reconciliation For the Twelve $ millions, except effective tax rate For the Three Months Ended Months Ended 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 12/31/23 12/31/24 Net Income (Loss) Attributable to Jackson Financial Inc. Common Shareholders 784 264 (480) 334 (35) 899 9
Slide 28: 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 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 12/31/23 12/31/24 Net Income (Loss) 802 282 (466) 358 (18) 954 976 Income attributable to non-controlling
Slide 29: Select U.S. GAAP to Non-GAAP Reconciliation
Select U.S. GAAP to Non-GAAP Reconciliation For the Three $ millions Months Ended 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 Jackson Financial Inc. Net Cash Provided by Operating Activities (Parent Company Only) (U.S. GAAP) 31 (10) 34 (4) 29 Adjustments from Net Cash Provided by Operating Activities t
Slide 30: Glossary
Glossary Athene Reinsurance Transaction - The funds withheld coinsurance agreement with Athene Life Re Ltd., entered on June 18, 2020, and effective June 1, 2020, to reinsure a 100% quota share of a block of our in-force fixed and fixed index annuity liabilities in exchange for approximately $1.2 bi
Slide 31: 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