Slide 1: Third Quarter 2024 Financial Results
Jackson Financial Inc. Third Quarter 2024 Financial Results November 7, 2024
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: 3Q 2024 Financial Results Key Highlights
3Q 2024 Financial Results Key Highlights $(480M) $(6.37) $167M 550-570% GAAP earnings GAAP earnings per Capital return Statutory capital position Net loss attributable to share Common share dividends JNLIC estimated risk-based Jackson Financial Inc. Net loss per common share and repurchases capital
Slide 4: Consistent Capital Delivery
Consistent Capital Delivery Cumulative capital return to common shareholders Capital return since becoming a standalone company Highlights $1.7B • Jackson Financial Inc. (JFI) has returned $1.7 billion to common shareholders since becoming a standalone public company • JFI has repurchased 24.7 milli
Slide 5: On Track to Deliver on 2024 Financial Targets
On Track to Deliver on 2024 Financial Targets 2024 Targets YTD Progress Capital Return $550-$650 million capital In the first nine months of 2024, returned $483 million of capital to common return to common shareholders shareholders Holdco Liquidity Approximately two years of Holding company cash an
Slide 6: Consolidated Results
Consolidated Results Adjusted Operating Earnings1 Key Takeaways ($ millions) 410 24 350 Adjusted Operating Earnings 315 3Q24 vs. 3Q23 386 • 3Q24 benefited from increased fee income resulting from higher average variable annuity assets under management and improved spread income, partially offset by
Slide 7: Notable Items
Notable Items Third Quarter 2024 3Q23 3Q24 After- EPS- After- EPS- ($ millions, except per share amounts) Pretax Pretax tax1,2 Diluted tax1,2 Diluted Adjusted Operating Earnings3 355 315 $3.80 411 350 $4.60 Notable Items Included in Adjusted Operating Earnings Out performance/(Under performance) fro
Slide 8: Stable Non-Operating Results
Stable Non-Operating Results 3Q24 Pretax Adjusted Operating Earnings Reconciliation ($ millions) Highlights 411 • Stable guarantee fee stream supports hedging needs • Economic hedging better aligns with U.S. GAAP accounting following the establishment and funding of Brooke Re, leading (430) to a bet
Slide 9: Continued Progress on Retail Sales Diversification
Continued Progress on Retail Sales Diversification1 Retail Sales Highlights ($ billions) 5.3 • 3Q24 retail annuity sales up 59% from 3Q23, with growth 4.2 across every product line, delivering our most diversified 3.3 quarter of sales since becoming an independent company • Record 3Q24 RILA sales gr
Slide 10: Segment Results
Segment Results ($ millions) Retail ($ millions) Institutional ($ millions) Closed Block Pre-tax adjusted operating earnings1 ($ millions) Pre-tax adjusted operating earnings1 ($ millions) Pre-tax adjusted operating earnings1 465 458 27 354 35 29 21 438 17 6 7 2 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 3Q23 2Q
Slide 11: Strong Capital and Liquidity Position
Strong Capital and Liquidity Position Highlights • Jackson National Life Insurance Company (JNLIC) estimated RBC ratio of 550-570% as of end of 3Q24 • Statutory Total Adjusted Capital (TAC) at JNLIC ended 3Q24 at $4.8 billion • JNLIC generated $1.1 billion of capital in the first nine months of 2024
Slide 12: Continued Performance Against Targets Remains Positive
Continued Performance Against Targets Remains Positive Demonstrated Maintained strong On track to achieve Well-positioned for distribution balance sheet and 2024 key financial continued long- strength and robust levels of targets term value creation consistent capital liquidity for shareholders gene
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 September 30, 2024 Investment Portfolio Classification1 Key Highlights Other invested assets <1% • Market/book ratio of the fixed maturity portfolio is 0.96 Limited partnerships 4% U.S government securities 7% Derivatives <1% Other government securities Policy loans
Slide 16: Statutory – Investment Portfolio
Statutory1 – Investment Portfolio September 30, 2024 Investment Portfolio Classification Key Highlights • Market/book ratio of the fixed maturity portfolio is 0.96 Other invested assets <1% Limited partnerships 3% U.S government securities 9% Derivatives <1% • Other government Policy loans 2% securi
Slide 17: Statutory – Fixed Maturity Rating Distribution
Statutory – Fixed Maturity Rating Distribution September 30, 2024 98% of portfolio is investment grade US Treasuries NAIC 1A-1D (AAA-AA-) 11% 17% NAIC 5/6 <0.1% NAIC 4A-4C (B) <1% NAIC 3A-3C (BB) 1% $33b NAIC 1E-1G (A) 33% NAIC 2A-2C (BBB) 37% Note: Percentages may not total 100 due to rounding. 17
Slide 18: Statutory – Corporate Portfolio
Statutory – Corporate Portfolio September 30, 2024 Corporate Portfolio Rating Distribution1 Key Highlights • Market/book ratio of the corporate portfolio is 0.98 CCC and below: <0.1% B: <1% AAA: <1% BB: 2% AA: 7% • High-yield corporates account for 1% of the total investment portfolio and 2% of tota
Slide 19: Statutory – ABS Portfolio
Statutory – ABS Portfolio September 30, 2024 ABS Sector Distribution1 NAIC Rating Distribution Other 5% Equipment Leases 1% Whole Business Securitizations 2% Music Royalties 2% NAIC 4 PDP Wells 2% <0.1% NAIC 1A-1D (AAA-AA-) Fiber 2% NAIC 3 (BB) 56% <0.1% Aircraft 3% Data Center 3% NAIC 2 (BBB) 6% Ta
Slide 20: Statutory – Collateralized Loan Obligations (CLO) Debt
Statutory – Collateralized Loan Obligations (CLO) Debt September 30, 2024 CLO NAIC Distribution1 Key Highlights • CLO exposure highly rated with virtually all rated single A AAA or above B 48% <1% BBB • Exposure is diversified among 45 different managers and 2% 73 CLOs • Each CLO is diversified, ave
Slide 21: Statutory – Commercial Mortgage-Backed Securities (CMBS)
Statutory – Commercial Mortgage-Backed Securities (CMBS) September 30, 2024 CMBS Distribution CMBS Single Asset/Single Borrower Distribution Single Asset/Single Borrower 41% Other, 1% Hotel, 5% Multi-family, 6% Agency $1.3b 4% Industrial, 8% Conduit 55% Retail, 8% Key Highlights Office, 13% • 95% ar
Slide 22: Statutory – Commercial Mortgage Loan Portfolio
Statutory – Commercial Mortgage Loan Portfolio1 September 30, 2024 CML NAIC Distribution CML Property Type Distribution Industrial CM 1 26% 70% Multi-Family CM 3/4 Other 26% 5% 4% $7.0b Office $7.0b 10% CM 2 Hotels 25% 11% Retail Loan-to-Value / Debt Service Coverage2 23% Debt Service Coverage Ratio
Slide 23: Statutory – Commercial Mortgage Loan Office Exposure
Statutory – Commercial Mortgage Loan Office Exposure1 September 30, 2024 NAIC Rating Distribution – Office Exposure Office Type – Office Exposure Geographic – Office Exposure CM 1 Medical Office 86% 1% Suburban CM 3/4 Single Story 74% Principal 7% Office & R&D Geographic Location Balance % Office 1%
Slide 24: Appendix
Appendix @ JACKSON’
Slide 25: VA Market Risk Benefits
VA Market Risk Benefits 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 gros
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 selected non-GAAP financial measures. Management believes that the use of these non-GAAP financial measures, together with relevant U.S. GAAP financ
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 (Loss) (AOCI) attributable to Jackson Financial Inc (JFI), which does not include AOCI arisi
Slide 28: Adjusted Operating Earnings Reconciliation
Adjusted Operating Earnings Reconciliation For the Nine $ millions, except effective tax rate For the Three Months Ended Months Ended 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 9/30/23 9/30/24 Net income (loss) attributable to Jackson Financial Inc. common shareholders 2,762 (1,570) 784 264 (480) 2,46
Slide 29: 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 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 9/30/23 9/30/24 Net Income (Loss) 2,790 (1,560) 802 282 (466) 2,514 618 Income attributable to non-contro
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), including our investment portfolio (but excludes assets held in funds withheld accounts for reinsurance transactions), (ii) third-party
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