Jackson Financial Inc. · NYSE:JXN
Jackson Financial — Q1 2025 Earnings Presentation
31 slides from Jackson Financial's earnings presentation, May 7, 2025
Slide 1: First Quarter 2025 Financial Results
For Presentation on May 8, 2025 Jackson Financial Inc. First Quarter 2025 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: First Quarter 2025 Financial Results Key Highlights
First Quarter 2025 Financial Results Key Highlights ($35M) GAAP earnings $376M Non - GAAP earnings 1 ($0.48) GAAP earnings per share $5.10 Non - GAAP earnings per share 1 $231M Capital return 585% Statutory capital position 9% Retail annuity sales 2 Net loss attributable to Jackson Financial Inc. (J
Slide 4: On Track to Deliver on 2025 Financial Targets
425% Risk - Based Capital ratio minimum Approximately two years of holding company fixed expenses Estimated RBC ratio of 585% as of end of 1Q25, after reflecting $240 million of distributions from JNLIC to JFI Holding company cash and highly liquid securities of more than $600 million as of end of 1
Slide 5: Consolidated Results
349 334 376 1Q24 4Q24 1Q25 11,398 11,156 11,024 1Q24 4Q24 1Q25 Consolidated Results Adjusted Operating Earnings 1Q25 vs. 1Q24 • 1Q25 benefited from higher spread income resulting from growth in average RILA assets under management (AUM) 1Q25 vs. 4Q24 • Increase due to the unfavorable impact of the a
Slide 6: Notable Items First Quarter 2025
Notable Items First Quarter 2025 1Q25 1Q24 EPS - Diluted After - tax 1,2 Pretax EPS - Diluted After - tax 1,2 Pretax ($ millions, except per share amounts) $5.10 376 442 $4.23 334 389 Adjusted Operating Earnings 3 Notable Items Included in Adjusted Operating Earnings (0.11) (8) (9) 0.03 3 3 Out perf
Slide 7: Continued Progress on Retail Sales Diversification
3.7 4.7 4.0 1Q24 4Q24 1Q25 1,140 1,779 1,258 1Q24 4Q24 1Q25 Continued Progress on Retail Sales Diversification • 1Q25 retail annuity sales up 9% from 1Q24, with an increasingly diversified product mix • RILA sales grew 3% when compared to 1Q24 • Fixed and fixed index annuity sales up 74% from 1Q24 •
Slide 8: Segment Results
Segment Results Retail Institutional Closed Block • 1Q25 vs. 1Q24 : Up from 1Q24 reflecting higher spread income • 1Q25 vs. 4Q24 : Increase primarily due to the unfavorable impact of the annual actuarial assumption update in 4Q24 • 1Q25 vs. 1Q24 : Current quarter benefited from higher spread income
Slide 9: Stable Non-Operating Results
Stable Non - Operating Results Pretax loss attributable to Jackson Financial Inc. (U.S. GAAP) Pretax adjusted operating earnings (Non - GAAP) 1 Net loss on funds withheld 3 (128) 1) See the Appendix for the non - U.S. GAAP financial measures, definitions, and reconciliations to the most comparable U
Slide 10: Improved Capital Generation and Free Cash Flow
Improved Capital Generation and Free Cash Flow Capital Generation Provides Foundation for New Business Growth and Distributions to Holding Company • After - Tax Statutory Capital Generation 1 provides foundation for new business growth while Free Capital Generation 2 supports distributions to holdin
Slide 11: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Highlights • JNLIC generated $441 million of statutory capital in 1Q25 1 • Free cash flow 2 of $213 million during 1Q25 • Jackson National Life Insurance Company (JNLIC) estimated RBC ratio of 585% as of end of 1Q25 • Statutory Total Adjusted Capital (TAC) at JN
Slide 12: 2025 Capital Return Targets On Track
12 2025 Capital Return Targets On Track While Maintaining a Strong Balance Sheet 12 On track to deliver on 2025 key financial targets Maintained strong balance sheet and robust levels of liquidity Demonstrated distribution strength and consistent capital generation Well - positioned to expect contin
Slide 13: Investments
Investments @ JACKSON’
Slide 14: High Quality, Diversified Investment Portfolio
14 High Quality, Diversified Investment Portfolio 14 Corporate portfolio is concentrated in investment - grade securities Highly rated and diversified commercial mortgage loan office portfolio, which is less than 2% of the general account portfolio Strategic, conservative underwriting across our por
Slide 15: U.S. GAAP – Investment Portfolio March 31, 2025
U.S government securities 7% Other government securities 1% Corporate securities 59% Residential mortgage - backed <1% Commercial mortgage - backed 3% Other asset - backed securities 7% Equity securities <1% Mortgage loans 15% Policy loans 2% Derivatives 1% Limited partnerships 4% Other invested ass
Slide 16: Statutory – Investment Portfolio March 31, 2025
Statutory 1 – Investment Portfolio March 31, 2025 Investment Portfolio Classification Key Highlights • Market/book ratio of the fixed maturity portfolio is 0.95 • Exposure to below investment grade securities is only 1% which is almost entirely corporate bonds and loans • Highly liquid U.S. Treasuri
Slide 17: Statutory – Fixed Maturity Rating Distribution
US Treasuries 11% NAIC 1A - 1D (AAA - AA - ) 16% NAIC 1E - 1G (A) 33% NAIC 2A - 2C (BBB) 38% NAIC 3A - 3C (BB) 1% NAIC 4A - 4C (B) <1% NAIC 5/6 <0.1% Statutory – Fixed Maturity Rating Distribution March 31, 2025 $36B 17 98% of portfolio is investment grade Note: Percentages may not total 100 due to
Slide 18: Statutory – Corporate Portfolio
AAA: <1% AA: 7% A: 40% BBB: 51% BB: 1% B: <1% CCC and below: <0.1% Statutory – Corporate Portfolio March 31, 2025 Corporate Portfolio Rating Distribution 1 Key Highlights • Market/book ratio of the corporate portfolio is 0.96 • High - yield corporates account for 1% of the total investment portfolio
Slide 19: Statutory – ABS Portfolio
Statutory – ABS Portfolio March 31, 2025 $3.6B ABS Sector Distribution 1 NAIC Rating Distribution $3.6B 19 1) ABS exposure excludes subprime, which is included with the RMBS exposure. Percentages may not total 100 due to rounding. CLOs 41% Structured settlements 11% Rooftop solar 7% Time Share 6% Fi
Slide 20: Statutory – Collateralized Loan Obligations (CLO) Debt
AAA 35% AA 34% A 26% BBB 5% B <1% Statutory – Collateralized Loan Obligations (CLO) Debt March 31, 2025 CLO NAIC Distribution 1 Key Highlights • CLO exposure highly rated with virtually all rated single A or above • Exposure is diversified among 46 different managers and 85 CLOs • Each CLO is divers
Slide 21: Statutory – Commercial Mortgage-Backed Securities (CMBS)
Office , 13% Retail , 9% Industrial , 8% Hotel , 7% Multi - family , 4% Other , 3% Statutory – Commercial Mortgage - Backed Securities (CMBS) March 31, 2025 CMBS Distribution Key Highlights • 95% are rated AA - or higher • 52% of CMBS portfolio are diversified pools of commercial mortgages (“Conduit
Slide 22: Statutory – Commercial Mortgage Loan Portfolio
Industrial 28% Multi - Family 27% Retail 22% Hotels 11% Office 9% Other 3% CM 1 65% CM 2 30% CM 3/4 5% Statutory – Commercial Mortgage Loan Portfolio 1 March 31, 2025 CML NAIC Distribution CML Property Type Distribution • Highly diversified with an average loan size of $19 million • 99% are senior/f
Slide 23: Statutory – Commercial Mortgage Loan Office Exposure
CM 1 81% CM 2 8% CM 3/4 11% Statutory – Commercial Mortgage Loan Office Exposure 1 March 31, 2025 NAIC Rating Distribution – Office Exposure Key Highlights $0.6B 23 Loan - to - Value / Debt Service Coverage 2 1) Based on NAIC expanded ratings and statement value. Percentages may not total 100 due to
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 s ele cted non - GAAP financial measures. Management believes that the use of these non - GAAP financial measures, together with relevant U.S. GAA
Slide 26: Non-GAAP Financial Measures: Adjusted Book Value
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 AOCI
Slide 27: Adjusted Operating Earnings Reconciliation
Adjusted Operating Earnings Reconciliation For the Twelve Months Ended For the Three Months Ended $ millions, except effective tax rate 12/31/24 12/31/23 3/31/25 12/31/24 9/30/24 6/30/24 3/31/24 902 899 (35) 334 (480) 264 784 Net Income (Loss) Attributable to Jackson Financial Inc. Common Shareholde
Slide 28: Select U.S. GAAP to Non-GAAP Reconciliation
Select U.S. GAAP to Non - GAAP Reconciliation For the Nine Months Ended For the Three Months Ended $ millions, except per share and shares outstanding data 12/31/24 12/31/23 3/31/25 12/31/24 9/30/24 6/30/24 3/31/24 976 954 (18) 358 (466) 282 802 Net Income (Loss) 30 20 6 13 3 7 7 Income attributable
Slide 29: Select U.S. GAAP to Non-GAAP Reconciliation: Free Cash Flow
Select U.S. GAAP to Non - GAAP Reconciliation For the Three Months Ended $ millions 3/31/25 12/31/24 9/30/24 6/30/24 3/31/24 29 (4) 34 (10) 31 Jackson Financial Inc. Net Cash Provided by Operating Activities (Parent Company Only) (U.S. GAAP) Adjustments from Net Cash Provided by Operating Activities
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 r e insure a 100% quota share of a block of our in - force fixed and fixed index annuity liabilities in exchange for approximately $1.
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