Slide 1: First Quarter 2024 Financial Results
May 9, 2024 Jackson Financial Inc. First Quarter 2024 Financial Results
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 upo n revenues, expenses and business opportunities. Generally speaking, any statement in this document not based upon h
Slide 3: Expected Brooke Re Outcomes Evident in 1Q24
Expected Brooke Re Outcomes Evident in 1Q24 3 More stable and predictable capital generation at Jackson National Life Better alignment of adjusted operating earnings 1 and regulatory capital generation Reduced volatility of net hedging results Greater stability of U.S. GAAP net income 1) See the App
Slide 4: Strong 1Q24 Financial Results
Non - GAAP Earnings $334M Adjusted Operating Earnings 1 Strong 1Q24 Financial Results 1) See the Appendix for the non - GAAP financial measures, definitions and reconciliations to most comparable U.S. GAAP measure. 4 GAAP Earnings $784M Net income attributable to Jackson Financial Inc. common shareh
Slide 5: Consistent Capital Delivery
Consistent Capital Delivery Cumulative capital return to common shareholders 5 • Jackson Financial Inc. (JFI) has returned $1.4 billion since becoming a standalone public company • JFI has repurchased to date 22.1 million shares, which equates to more than 23% of outstanding common shares at separat
Slide 6: On Track to Deliver on 2024 Financial Targets
425% Risk - Based Capital (RBC) ratio minimum Approximately two years of holding company fixed expenses Estimated RBC ratio of 555 - 575% as of 1Q24 Holding company cash and highly liquid securities of nearly $500 million as of 1Q24 $550 - $650 million capital return to common shareholders Returned
Slide 7: Consolidated Results
271 204 334 1Q23 4Q23 1Q24 8,581 10,833 11,398 1Q23 4Q23 1Q24 Consolidated Results Adjusted Operating Earnings 1Q24 v. 1Q23 • 1Q24 benefited from higher fee income resulting from higher average variable annuity assets under management, and higher spread income, partially offset by higher market - re
Slide 8: Notable Items First Quarter 2024
Notable Items First Quarter 2024 1Q23 1Q24 ($ millions, except per share amounts) Pretax After - tax 1 EPS - Diluted Pretax After - tax 1,2 EPS - Diluted Adjusted Operating Earnings 3 302 271 $3.15 389 334 $4.23 Notable Items Included in Adjusted Operating Earnings Out performance/(Under performance
Slide 9: Economic Hedging Approach Better Aligned With GAAP
Economic Hedging Approach Better Aligned With GAAP Pretax income attributable to Jackson Financial Inc. (U.S. GAAP) Pretax adjusted operating earnings (Non - GAAP) 1 Income on funds withheld 4 896 1) See the Appendix for the Non - GAAP financial measures, definitions, and reconciliations to the most
Slide 10: Continued Progress on Retail Sales Diversification
3.1 3.3 3.7 1Q23 4Q23 1Q24 549 1,000 1,140 1Q23 4Q23 1Q24 Continued Progress on Retail Sales Diversification 1 • 1Q24 retail annuity sales up 13% and 18% from 4Q23 and 1Q23, respectively, with an increasingly diversified product mix • More than half of annuity sales now without lifetime benefit ride
Slide 11: Segment Results
Segment Results 11 Retail Institutional Closed Block • 1Q24 vs. 1Q23 : Increase primarily due to impacts of these blocks of business continuing to run off • 1Q24 vs. 4Q23 : Increase primarily due to annual actuarial assumption update of $60m in 4Q23 results • 1Q24 vs. 1Q23 : Current quarter benefite
Slide 12: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Highlights • Jackson National Life Insurance Company (JNLIC) estimated RBC ratio of 555 - 575% as of 1Q24 • Statutory Total Adjusted Capital (TAC) at JNLIC ended 1Q24 at $4.7 billion • Brooke Re remains well capitalized and hedging performed as expected • Holdin
Slide 13: Outlook for Continued Performance Against Targets Remain Positive
13 ― Continued progress toward our strategic and operational goals ― Maintained strong balance sheet and robust levels of liquidity ― On track to deliver on 2024 key financial targets ― Well - positioned for continued long - term value creation for shareholders Outlook for Continued Performance Agai
Slide 14: Investments
Investments
Slide 15: High Quality, Diversified Investment Portfolio
15 ― Strategic, conservative underwriting across our portfolio ― Highly rated and diversified commercial mortgage loan office portfolio, which is less than 2% of the general account portfolio ― Corporate portfolio is concentrated in investment - grade securities 15 High Quality, Diversified Investme
Slide 16: U.S. GAAP – Investment Portfolio March 31, 2024
U.S government securities 9% Other government securities 2% Corporate securities 56% Residential mortgage - backed <1% Commercial mortgage - backed 3% Other asset - backed securities 5% Equity securities <1% Mortgage loans 17% Policy loans 2% Derivatives <1% Limited Partnerships 4% Other invested as
Slide 17: Statutory – Investment Portfolio March 31, 2024
U.S government securities 10% Other government securities 2% Corporate securities 55% Residential mortgage - backed <1% Commercial mortgage - backed 3% Other asset - backed securities 5% Equity securities <1% Mortgage loans 17% Policy loans 2% Derivative <1% Limited Partnerships 3% Other invested as
Slide 18: Statutory – Fixed Maturity Rating Distribution
US Treasuries 13% NAIC 1A - 1D (AAA - AA - ) 17% NAIC 1E - 1G (A) 34% NAIC 2A - 2C (BBB) 34% NAIC 3A - 3C (BB) 1% NAIC 4A - 4C (B) <1% NAIC 5/6 <0.1% Statutory – Fixed Maturity Rating Distribution March 31, 2024 Notes: Excludes Funds Withheld. Statutory statement value based on NAIC ratings. Include
Slide 19: Statutory – Corporate Portfolio
Statutory – Corporate Portfolio March 31, 2024 1) Excludes Funds Withheld. Based on NAIC expanded ratings and Statement value. Includes Brooke, Squire, Squire II, Jackson, Jac kson New York and Brooke Reinsurance. Percentages may not total 100 due to rounding. Corporate Portfolio Rating Distribution
Slide 20: Statutory – ABS Portfolio
NAIC 1A - 1D (AAA - AA - ) 59% NAIC 1E - 1G (A) 35% NAIC 2 (BBB) 6% NAIC 3 (BB) <0.1% NAIC 4 <0.1% CLOs 46% Structured Settlements 14% Rooftop Solar 10% Tax Liens 7% Timeshare 6% PDP Wells 3% Music Royalties 3% Whole Business Securitizations 2% Equipment Leases 2% Single Family Rental 1% Aircraft 1%
Slide 21: Statutory – Collateralized Loan Obligations (CLO) Debt
AAA 57% AA 26% A 16% BBB <1% B <0.1% Statutory – Collateralized Loan Obligations (CLO) Debt March 31, 2024 1) Excludes Funds Withheld. Based on NAIC expanded ratings and Statement value. Includes Brooke, Squire, Squire II, Jackson, Jac kso n New York and Brooke Reinsurance. Percentages may not total
Slide 22: Statutory – Commercial Mortgage Loan Portfolio
Statutory – Commercial Mortgage Loan Portfolio 1 March 31, 2024 CML NAIC Distribution 2 CML Property Type Distribution 2 • Highly diversified with an average loan size of $19m • 99% are senior/first mortgage loans • 96% of the portfolio has the highest ratings of CM1 - 2 • Weighted average loan - to
Slide 23: Statutory – Commercial Mortgage Loan Office Exposure
Statutory – Commercial Mortgage Loan Office Exposure 1 March 31, 2024 NAIC Rating Distribution – Office Exposure 2 Key Highlights • Highly diversified with an average loan size of $15m • 100% are senior/first mortgage loans • 97% of the portfolio has the highest two ratings, CM1 and CM2 • Weighted a
Slide 24: Appendix
Appendix
Slide 25: VA Market Risk Benefits Liability
VA Market Risk Benefits 25 Liability Effect Category Runs Through: Description of Impact Drivers Changes in Interest Rates Net Income Movement in risk free rates (impacts both assumed future separate account returns and discounting of cash flows) Fund Performance Net Income Separate account returns
Slide 26: 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, sel ected non - GAAP financial measures. Management believes that the use of these non - GAAP financial measures, together with relevant U.S. GAA
Slide 27: 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 ( Los s) ("AOCI") attributable to Jackson Financial Inc ("JFI"), which does not include AO
Slide 28: Adjusted Operating Earnings Reconciliation
Adjusted Operating Earnings Reconciliation $ millions, except effective tax rate For the Three Months Ended For the Twelve Months Ended 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 12/31/22 12/31/23 Net income (loss) attributable to Jackson Financial Inc. common shareholders (1,497) 1,204 2,762 (1,570)
Slide 29: Select U.S. GAAP to Non-GAAP Reconciliation
Select U.S. GAAP to Non - GAAP Reconciliation $ millions, except per share and shares outstanding data For the Three Months Ended For the Twelve Months Ended 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 12/31/22 12/31/23 Net Income (Loss) (1,496) 1,220 2,790 (1,560) 802 6,229 954 Income attributable to
Slide 30: 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”), i ncluding our investment portfolio (but excludes assets held in funds withheld accounts for reinsurance transactions), (ii) third - p
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 register