- 5 Must-Read Analyst Questions From Jackson Financial’s Q1 Earnings Call
May 15, 2026
Jackson Financial’s first quarter results saw the market respond positively despite headline revenue and non-GAAP earnings per share both falling short of Wall Street expectations. Management attributed the quarter’s performance to robust demand for its retail annuity products, particularly its Registered Index-Linked Annuities (RILAs) and the newly launched Fixed Indexed Annuity (FIA) offering. CEO Laura Prieskorn noted that the company’s spread-based business offset the effects of market volatility on fee income, and highlighted a significant improvement in net outflows due to strong sales and lower variable annuity surrenders.
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Jackson Financial (JXN) Q1 CY2026 Highlights:
Revenue: $2.90 billion (22.6% year-on-year decline) Adjusted EPS: $5.15 vs analyst expectations of $5.96 (13.6% miss) Market Capitalization: $7.65 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Jackson Financial’s Q1 Earnings Call
Suneet Kamath (Jefferies) asked about the proportion of annuity sales from new business versus internal exchanges. CEO Laura Prieskorn clarified that all reported sales were new business, with no internal exchanges included. Suneet Kamath (Jefferies) inquired about the impact of industry consolidation on competitive dynamics. Prieskorn responded that Jackson Financial’s diversified product set and strong distribution force position the company to compete effectively regardless of consolidation trends. Suneet Kamath (Jefferies) questioned the timing of capital distributions from Brook Re following the recent capital infusion. CFO Don Cummings explained that near-term distributions would come from Hickory Re, while standalone Brook Re capital would be distributed over a longer timeframe. Ryan Krueger (KBW) asked about capital generation sensitivity to alternative investment returns. Cummings and Christopher Allen Raub explained that while there is some sensitivity, higher capital charges on alternatives provide an offset, and long-term return assumptions remain intact. Alex Scott (Barclays) sought details on product features driving RILA and FIA growth. Prieskorn highlighted enhanced flexibility in RILA crediting and protection options, and a unique FIA living benefit feature elective post-sale, as key differentiators.
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Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely watch (1) the pace of adoption and sales growth for new and refreshed annuity products, particularly RILA and FIA; (2) execution and early results from the TPG partnership as Jackson deploys capital into higher-yielding, alternative investments; and (3) the impact of liquidity enhancements like the PCAPS facility on capital management flexibility. Developments in industry consolidation and regulatory shifts will also remain important to track.
Jackson Financial currently trades at $109.61, up from $108.47 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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- How Investors Are Reacting To Jackson Financial (JXN) Strong Annuity Sales Despite GAAP Loss And Buybacks
May 11, 2026
In the past quarter, Jackson Financial Inc. reported Q1 2026 revenue of US$2,902 million versus US$3,750 million a year earlier, with a net loss of US$424 million, while still declaring both common and preferred dividends and continuing sizeable share repurchases. Despite the larger loss driven mainly by weaker hedging and investment results, Jackson’s 31% retail annuity sales growth and new long-term investment partnership with TPG highlighted momentum in its core retirement-income franchise. We’ll now examine how the strong annuity sales growth amid a GAAP loss could reshape Jackson Financial’s existing investment narrative.
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Jackson Financial Investment Narrative Recap
To own Jackson Financial, you need to believe its strong retail annuity engine and capital return policy can matter more than volatile GAAP results. The latest quarter reinforces that tension: a sizable GAAP loss driven by hedging and investment marks sits alongside 31% annuity sales growth and continued buybacks and dividends. Near term, the key catalyst remains whether annuity demand stays resilient, while the biggest risk is that hedging and investment swings keep driving lumpier reported earnings.
Among the recent announcements, the update that Jackson repurchased about US$248 million of stock in early 2026, bringing total buybacks under the plan to over US$2.0 billion, feels most relevant. It underlines management’s commitment to returning capital even during a GAAP loss, which ties directly into the catalyst of capital returns supporting the equity story, but also sharpens the risk if earnings volatility or capital requirements were to increase.
Yet behind the strong capital returns, the growing gap between annuity growth and hedging driven GAAP losses is something investors should be aware of...
Read the full narrative on Jackson Financial (it's free!)
Jackson Financial's narrative projects $8.4 billion revenue and $880.0 million earnings by 2029. This requires 7.7% yearly revenue growth and an earnings increase of about $897 million from -$17.0 million today.
Uncover how Jackson Financial's forecasts yield a $124.75 fair value, a 13% upside to its current price.
Exploring Other PerspectivesJXN 1-Year Stock Price Chart
Some of the lowest ranked analysts were already cautious, assuming only about US$8.4 billion of revenue and roughly US$826 million of earnings by 2029, so you should recognize that views on Jackson’s earnings volatility and capital strength can differ widely and may shift again after this latest GAAP loss and annuity sales surprise.
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Explore 3 other fair value estimates on Jackson Financial - why the stock might be a potential multi-bagger!
Reach Your Own Conclusion
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A great starting point for your Jackson Financial research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision. Our free Jackson Financial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Jackson Financial's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include JXN.
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- Jackson Financial Q1 Earnings Call Highlights
May 11, 2026 · marketbeat.com
Jackson Financial NYSE: JXN executives said the insurer opened 2026 with stronger annuity sales, higher operating earnings excluding notable items and continued capital returns, while reaffirming full-year free capital generation and shareholder return targets.
- JXN Q1 2026 Earnings Transcript
May 6, 2026
Image source: The Motley Fool.
DATE
Wednesday, May 6, 2026 at 9:00 a.m. ET
CALL PARTICIPANTS
Chief Executive Officer — Laura Louene Prieskorn Chief Financial Officer — Don Wayne Cummings Chief Investment Officer — Christopher Allen Raub
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Full Conference Call Transcript
Laura Louene Prieskorn: Thank you, Elizabeth Ann Werner. Good morning, everyone. I appreciate you joining us today for Jackson Financial Inc.’s first quarter 2026 earnings call. I will start by highlighting the quarter’s positive results and the solid progress toward achieving our 2026 financial targets. Following my remarks, Don Wayne Cummings, our Chief Financial Officer, will discuss our financial results in greater detail. Beginning with the bigger picture, 2026 is off to a strong start. Through a volatile market, we successfully executed our capital management and growth initiatives. Turning to the quarter’s key metrics on slide three, you will see we maintained a resilient capital position. Total adjusted capital of $5.5 billion is up nearly 5% from the first quarter last year.
Our strong capital generation continues to support both distributions to our holding company and consistent capital return to shareholders. During the quarter, we distributed $288 million from our operating company to Jackson Financial Inc., our holding company. Our common shareholders benefited from an 11% increase in capital return from a year ago to $257 million in the form of shareholder dividends and share repurchases. We remain focused on maintaining a balanced approach to capital management, including investing in new business while maintaining our financial strength and consistent capital return to our shareholders. Looking ahead, we are confident in our ability to generate free cash flow supported by a healthy book of business and expectations for profitable growth.
Turning to earnings, our operating performance was strong. Pretax operating earnings were up 12% from a year ago, excluding the impact of notable items. On a per-share basis, the increase was 18%, reflecting the benefits of our share repurchase program. Growth of spread-based earnings more than offset the impact of market volatility on fee income. We expect continued momentum here driven by our spread-based business and the benefits of our expanding product lineup, our enhanced investment capabilities, and our broad distribution reach. For the first quarter, retail annuity sales increased 31% from a year ago, a great result. Much of that growth came from our Market Link Pro 3 and Market Link Pro Advisory 3, our leading RILA offerings.
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RILA sales have now exceeded $2 billion in quarterly sales since we launched the products in May 2025. We are proud these sales have elevated us to be the industry’s third-largest RILA provider with more than $21 billion in RILA assets. We expect continued strong demand from advisers and their clients who value the combination of growth potential and downside protection that these products offer. Further adding to retail annuity sales growth was our spread-based business, including the recent launch of Jackson Income Assurance, our fixed indexed annuity, or FIA. Our FIA offers a highly valued income benefit and helps advisers deliver retirement income protection solutions their clients can count on.
Since our launch in August 2025, our FIA offering has been positively received and we expect FIA sales momentum to continue. In the first quarter, fixed annuity and FIA sales reached $750 million, a significant increase from $174 million a year ago. We anticipate future sales momentum for our spread-based products. With PPM’s broad-based investment expertise and the recently announced investment partnership with TPG, we are confident in our ability to offer competitive spread-based products to our many distribution partners. Importantly, we saw considerable improvement in net outflows, which improved by 30% from a year ago and decreased nearly 6% from the fourth quarter 2025. This improvement reflects significant RILA inflows and lower variable annuity surrenders and withdrawals.
The decline from last quarter reflects recent equity market uncertainty, which typically leads to lower surrender activity. As our variable annuity block continues to mature, we do expect continued withdrawal activity as policyholders take advantage of their valued benefits. On the distribution front, we are expanding and making annuities more accessible as a retirement solution. Within the advisory channel, we are a leading provider and have accelerated our product diversification efforts. In the first quarter, RILA and Elite Access accounted for more than 70% of fee-based advisory sales. Additionally, our new competitive FIA product accounted for more than 10% of total advisory sales this quarter, and we anticipate continued growth in its contribution to sales in this channel.
As advisers and their clients navigate changing markets and individual financial goals, we believe our solutions-based and consultative approach underscores a unique value proposition across a growing annuity market. With our full suite of products and industry-leading service, Jackson Financial Inc. remains a trusted partner across a growing and dynamic annuity market. Turning to slide four, you can see the significant shift in our business since our separation. Today, nearly 40% of our account values come from spread-based and investment-only variable annuities. A meaningful shift that reflects the progress we have made in diversifying our in-force book. Nearly five years into our journey as a public company, our focus remains clear.
We are driving growth through a diversified and broader product portfolio and expanded distribution reach. Staying disciplined and execution-focused is a long-held strength for Jackson Financial Inc. As we execute on our growth initiatives and deliver on our commitments, we expect to build long-term value in our business and for our stakeholders. Now turning to slide five and looking ahead to the full year, we have started the year off strong and are on track to achieve our 2026 financial targets. In the quarter, free capital generation was $271 million, and we expect that to build over the course of the year under our current modest market assumption.
We continue to expect to reach our 2026 free capital generation target of $1.2 billion along with our capital return to common shareholders in the range of $900 million to $1.1 billion. Further, at the end of the first quarter, our holding company liquidity is nearly $650 million, comfortably above our minimum buffer. As you know, we recently established a long-term strategic partnership with TPG, which brings expertise in asset-based finance and direct lending—areas that complement PPM’s existing capabilities and create opportunities for enhanced investment returns.
We have already started allocating new money to TPG-managed assets and, while we do not expect an outsized allocation to these asset classes, we do believe the investment returns will support profitable growth across our spread-based products over time. Importantly, a relatively low current exposure to private credit provides us the flexibility to invest opportunistically when market volatility creates attractive entry points. We continue to maintain our disciplined investment approach working closely with TPG, and see great value in our strategic partnership. Later in our remarks, you will hear more about our investment portfolio and how the asset classes and the expertise TPG brings fit well within our current portfolio and business strategy.
At this time, I will turn the call over to Don. Thank you.
Don Wayne Cummings: Let us turn to slide six and walk through our consolidated financial results for the first quarter. We reported pretax adjusted operating earnings of $430 million, or $503 million excluding notable items, which I will discuss in more detail shortly. On this ex-notables basis, earnings increased 12% year-over-year, reflecting continued momentum across our spread-based businesses and steady growth in-force assets under management. Sequentially, ex-notables earnings were modestly lower than the fourth quarter of 2025, primarily due to approximately $30 million of headwinds in fee income this quarter. These headwinds were driven by slightly lower average AUM and fewer days in the quarter. Excluding these timing-related factors, earnings were up modestly from the prior quarter.
Our spread-based earnings continued to demonstrate a strong growth trajectory, supported by a full suite of competitive product offerings and a high-quality, conservatively managed investment portfolio. Diversification and disciplined credit management remain central to our investment approach, and that consistency continues to deliver solid results. Sales of our spread-based products also reflect the enhanced asset sourcing capabilities at PPM, which have enabled us to allocate new money into select higher-yielding asset classes. This measured shift in new money deployment, combined with a compelling product lineup, has helped Jackson Financial Inc. maintain a stable and competitive position in the spread product market through late 2025 into 2026.
We are also seeing positive early results from our new strategic partnership with TPG, along with the ongoing benefits of our capital-efficient strategy. TPG began deploying capital in the quarter, further expanding our investment opportunities and supporting higher new money yields. Before turning to notable items for the quarter, I would like to highlight the continued strength and profitability of our in-force business. Our adjusted operating return on equity for the trailing twelve months ended March 2026 was 14.8%, up from 13.2% for the comparable period ending March 2025. This improvement underscores the resilience and underlying profitability of the business as we continue to grow and diversify our sales mix and balance sheet in a disciplined, value-accretive way.
Turning to slide seven, I will walk through the notable items that affected adjusted operating earnings this quarter. Free capital generation, which I will cover later, was also impacted by these notable items in the quarter. We reported adjusted operating earnings per share of $5.15. After excluding $0.90 of notable items and normalizing for the difference between our actual tax rate and our 15% tax guidance, adjusted operating EPS was $5.94. This represents an 18% increase compared to the first quarter of last year, reflecting the strong spread income growth I discussed earlier, as well as the benefit of a lower diluted share count from our ongoing share repurchase program.
These positive factors more than offset the impact of the 4.7 million shares issued to TPG midway through the quarter. During the quarter, we experienced a $0.48 unfavorable impact from limited partnership results, which came in below our long-term 10% return assumption. While valuations of our limited partnership investments can experience quarterly fluctuations, we remain confident in the underlying strength and long-term performance of the portfolio. In addition, we proactively enhanced our process and data sourcing to more efficiently identify deceased policyholders. This initiative resulted in higher claims during the quarter, leading to a $0.42 unfavorable impact. While this initiative will temporarily affect results, it strengthens our data integrity, streamlines the policyholder experience, and ensures greater consistency in future reporting.
Our effective tax rate for the quarter was 13.5%, modestly lower than our 15% tax guidance. Turning to slide eight, we take a closer look at the diverse, expanding new business profile within our retail annuity segment, which holds a top-three leadership position in both our traditional variable annuity and RILA product lines. The segment delivered 31% year-over-year sales growth in the first quarter, underscoring the success of our comprehensive product suite. Spread-based products represented 52% of total sales, reflecting the continued balance across our offerings. On a sequential basis, sales were modestly lower, consistent with typical seasonal patterns. Our RILA product suite continues to be a standout performer.
We achieved $2 billion in RILA sales, an increase of 68% from the year-ago quarter. Since launching the product in 2021, RILA assets under management have grown steadily, reaching a record high of more than $21 billion at the end of the first quarter. As mentioned earlier, our spread-based products are also benefiting from strong momentum. The successful launch of our new fixed index annuity offering contributed to $756 million in fixed and fixed index annuity sales during the quarter, an increase of over 300% year-over-year. Combined with our recently announced strategic partnership with TPG, we are well positioned to sustain this growth and further expand the potential of our spread-based business.
Turning to net flows, strong RILA sales and spread product performance drove $2.5 billion of non-variable annuity net inflows in the first quarter. Within variable annuities, the all-in surrender rate declined both year-over-year and sequentially, resulting in modestly lower net outflows for the quarter. We continue to expect equity market volatility to influence surrender activity within our in-force block. Importantly, while equity markets were volatile early in 2026, we entered the second quarter with equity indices near all-time highs. Should this environment persist, we may see higher surrender activity, but it would also support growth in variable annuity AUM and fee income over the remainder of the quarter.
Lastly, we have included advisory sales trends to highlight the breadth of our distribution capabilities. Jackson Financial Inc. maintains a leading position in the advisory annuity space, supported by a full spectrum of product offerings. Notably, in 2026, nearly 50% of advisory sales came from products other than variable annuities, demonstrating the continued strength in our growth and diversification strategy. Turning to slide nine, we highlight our first quarter net hedge results by product along with a waterfall comparison of pretax adjusted operating earnings to the GAAP pretax loss attributable to Jackson Financial Inc.
Since moving to a more economic hedging approach in 2024, we have seen a meaningful improvement in the consistency of our hedging program outcomes, which in turn has supported stronger and more predictable capital generation. As a reminder, last quarter we enhanced our disclosure of net hedge results to separately present outcomes for our variable annuity and RILA businesses. This additional transparency provides a clearer view of the offsetting equity risk between these product lines and, excluding the impact of implied volatility and market benefit liabilities, offers insight into the change in equity at Brook Re. After isolating the volatility effects, our overall net hedge result for the quarter was a loss of $101 million.
Given the size and complexity of our liability profile, we view this result as a very stable and well-managed outcome. As shown on the slide, the RILA and FIA products generated a modest gain while the loss was concentrated in our variable annuity business. The variable annuity net hedging results reflect the breadth of available funds on our separate account platform, which includes both indexed and actively managed strategies. During the first quarter, market dislocations driven by investor sentiment around artificial intelligence and ongoing geopolitical developments led to divergent performance between certain actively managed funds and their benchmarks. This relative underperformance versus the indices we use in our hedging program resulted in the modest net hedging loss for the quarter.
It is important to note that this dynamic can move in both directions and, historically, these effects have tended to balance out over time. Despite the modest loss from our hedging program during the quarter, Brook Re’s capitalization remains well above both our internal risk management target, which reflects a range of severe stress and tail scenarios, and our regulatory minimum operating capital level. Aside from the $500 million of growth capital contributed to Hickory Re, there were no additional capital flows for Brook Re during the quarter. Looking ahead, we will continue to manage Brook Re on a self-sustaining basis, consistent with the long-term nature of its liabilities and our disciplined approach to capital management.
Overall, these results underscore the effectiveness of our hedging program in maintaining capital stability, proactively managing economic risk, and preserving the durability and resilience of our business model. Turning to slide 10, we highlight the consistency of our capital return and free cash flow. At Jackson Financial Inc., we operate under a straightforward philosophy: Earn it, then pay it. This framework is built on three pillars: generating free capital—this is where we earn it; converting that capital into free cash flow—this is where we pay it; and returning capital to common shareholders—the outcome of the first two steps working together. In the first quarter, after-tax debt capital generation was $342 million.
We view this as one of the clearest indicators of the underlying strength of our business, and it serves as a key guidepost in balancing future growth with capital return to shareholders. Free capital generation was $271 million in the quarter, reflecting the estimated change in required capital driven by our strong and diversified new business results. For full-year 2026, we continue to expect to generate at least $1.2 billion in free capital, assuming equity markets deliver a 5% return and interest rates move in line with the year-end forward curve.
While we maintain our RBC risk appetite at 425%, the stability in RBC levels over the past two years gives us confidence to focus on sustained free capital generation consistent with our earn-it-then-pay-it approach. Free capital generation was modestly reduced by the same limited partner returns and elevated claims that impacted adjusted operating earnings. Additionally, slightly lower average AUM and fewer days in the quarter weighed on fee income. However, the market recovery early in the second quarter positions us well for the remainder of the quarter. Excluding these temporary factors, capital generation was broadly consistent with the 2025 run rate.
Free cash flow remained strong and consistent, totaling $288 million at the holding company, up 35% year-over-year after funding expenses and other cash flow items. Our robust free capital generation and growing free cash flow enabled us to return $257 million to common shareholders in the first quarter, an increase of 17% year-over-year on a per diluted share basis. Since becoming an independent public company, Jackson Financial Inc. has returned nearly $3 billion to common shareholders, exceeding our initial market capitalization at separation. These results reinforce Jackson Financial Inc.’s strong capital generation profile, the stability of our cash distributions, and our continued commitment to delivering long-term value for shareholders.
Turning to slide 11, this slide highlights Jackson Financial Inc.’s robust capital and liquidity position. Our in-force business continues to be a key driver of profitability. Fee income from our variable annuity-based contracts, combined with growing spread-based earnings, supported solid capital generation during the quarter. As noted earlier, results were modestly impacted by the notable items we discussed previously. At Jackson National Life, our capital position and RBC have become significantly less sensitive to equity market movements, reflecting the benefits of the Brook Re structure. Today, changes in the equity markets primarily influence our assets under management and future capital generation, rather than our immediate capital levels.
In many ways, this evolution has made our earnings profile increasingly resemble that of an asset management business—steady, diversified, and capital efficient. Consistent with our disciplined approach of taking smaller periodic distributions, we paid $325 million to the holding company during the first quarter. After considering the impact of that distribution on our deferred tax assets, total adjusted capital ended the quarter at $5.5 billion with an estimated RBC ratio of 554%, comfortably above our minimum target. These results underscore that Jackson Financial Inc. is operating from a position of real strength as we progress through 2026.
At the holding company level, we ended the quarter with nearly $650 million in cash and investments, well above our minimum liquidity buffer and providing strong financial flexibility. The slight decline from the fourth quarter primarily reflects capital return to shareholders. Overall, our first quarter results show strong momentum, supported by a solid balance sheet, healthy capital and liquidity levels, and a business model well positioned for continued success. Slide 12 highlights the substantial liquidity sources we maintain across our legal entities, which underpin our strong capital position and now include our recently issued PCAPS facility. We view the PCAPS facility as an important extension of our commitment to balance sheet strength and enhanced risk management.
This $900 million contingent capital facility strengthens our liquidity profile and reinforces capital resilience across market cycles while allowing us to maintain a lean and efficient balance sheet. The facility is designed for flexible application, serving both as a buffer against severe market stress events and as a tool to proactively manage our capital structure. This ensures that Jackson Financial Inc. remains well capitalized under a wide range of market conditions and scenarios. When combined with holding company cash and highly liquid securities, along with our undrawn revolving credit facility, total available liquidity at Jackson Financial Inc. stands at approximately $3 billion.
At the operating company level, Jackson National Life maintains more than $35 billion of available liquidity, including $7 billion in cash and U.S. Treasury securities, and an additional $25 billion in other highly liquid marketable securities. Jackson National Life also benefits from our long-standing relationship with the Federal Home Loan Bank, which provides $2.6 billion of additional capacity through its collateralized loan advance program. Finally, financial leverage remains modest at 19.8% excluding AOCI. Our combination of strong capitalization, substantial liquidity, and modest leverage provides meaningful financial flexibility and supports our ongoing commitment to maintaining a balance sheet built to perform through multiple market cycles. Turning to slide 13, this slide highlights PPM America, our wholly owned asset management subsidiary.
PPM oversees approximately $95 billion in total assets under management and, together with our new strategic relationship with TPG, enhances Jackson Financial Inc.’s ability to source attractive yields and maintain product competitiveness across both our retail and institutional businesses. PPM is a core component of Jackson Financial Inc.’s strategic growth profile, managing $59 billion of Jackson Financial Inc.’s assets and an additional $36 billion of third-party AUM, which has grown meaningfully since our separation. PPM manages our general account investment portfolio, directly supporting the profitable growth of our business and our objective of maintaining strong capitalization. Our ownership of PPM provides structural advantages and strategic alignment, including synergies across asset liability management, product design, and investment execution.
This integration ensures that our investment strategy remains closely aligned with our product and risk management frameworks. PPM has also expanded its investment capabilities, enabling new money allocations to select, higher-yielding asset classes such as emerging markets, residential and commercial mortgage loans, and investment grade structured securities. These enhancements strengthen our ability to optimize portfolio returns while maintaining a disciplined approach to credit quality and diversification. In addition, PPM maintains oversight of third-party asset managers, including our strategic partnership with TPG. This oversight encompasses the establishment of guidelines for asset classes managed by TPG and ongoing monitoring of deal flow and performance.
While the partnership is still in its early stages, collaboration between the teams has been strong, and we are encouraged by the positive initial progress. We remain highly optimistic about PPM’s growth trajectory and the opportunities to further expand its capabilities, reinforcing its role as a strategic differentiator and a key contributor to Jackson Financial Inc.’s long-term success. Moving to slide 14, we highlight the quality, diversification, and conservative positioning of our investment portfolio as of the first quarter. Jackson Financial Inc. takes a disciplined approach to managing our assets and liabilities, which guides how we make strategic decisions about asset allocation. Our fixed maturity portfolio remains high quality and defensively positioned, with a meaningful allocation to highly liquid U.S.
Treasuries, which represent approximately 6% of the portfolio. The market-to-book ratio of 95% reflects our disciplined approach to asset selection and prudent portfolio management. Exposure to below investment grade securities remains very limited at just 1% of the portfolio, consisting almost entirely of corporate bonds and loans. The portfolio is well diversified by asset type. Corporate securities account for roughly 57% of invested assets, complemented by mortgage loans, asset-backed securities, and a modest allocation to private equity through our limited partnership investments. Our commercial mortgage portfolio is conservatively underwritten, supported by strong loan-to-value and debt service coverage ratios, ensuring resilience across market cycles.
Overall, our investment portfolio reflects a conservative credit philosophy centered on quality, diversification, and liquidity, which continues to support the stability of our capital position and the durability of our earnings profile. Given the recent headlines surrounding asset-based finance and direct lending, slide 15 provides enhanced disclosures on our private investment exposure. As noted last quarter, Jackson Financial Inc. remains underweight in direct lending relative to peers. We view the current market dislocation as an opportunity to invest selectively at more attractive valuations than those seen in recent vintages. In addition, our strategic partnership with TPG provides access to deep expertise in direct lending, particularly in the lower middle market segment. TPG emphasizes strong covenants and rigorous credit underwriting.
This positions us well as we gradually and prudently build exposure in this space. As of the first quarter, our private debt portfolio consisted of 63% traditional private placements, with the remainder allocated to infrastructure, asset-backed securities, and credit tenant leases. From a ratings perspective, the portfolio is 99% investment grade, with private letter ratings representing only 6% of total invested assets. Exposure to Egan-Jones–rated securities is immaterial and our software industry exposure is modest, focused exclusively on high-quality, investment grade issuers. Overall, our private investment portfolio is conservatively positioned and supported by robust credit oversight.
We maintain substantial capacity to deploy capital on attractive terms, reinforcing our growth and diversification strategy while preserving the strength and stability of our balance sheet. I will now turn the call back to Laura.
Laura Louene Prieskorn: Thank you, Don Wayne Cummings. Turning to slide 16, our outlook remains strong. We expect to continue our track record of maintaining capital strength, generating excess capital, and delivering on our financial targets. Throughout all types of market environments, the need for retirement security is highly valued, and we are committed to our mission of helping Americans secure their financial futures. As always, we are grateful for the dedication of our associates, whose contributions each quarter remain our greatest strength. At this time, I will turn the call over to the operator for questions.
Operator: We will now open the call for questions. If you would like to ask a question and have joined via the webinar, please use the raise hand icon which can be found in the black bar at the bottom of the webinar application screen. If you joined via telephone, please press 9 on your keypad to raise your hand. When you hear your name called, you will be prompted to unmute your line and ask your question. Our first question comes from Suneet Kamath with Jefferies.
Suneet Kamath: Sorry, I think I just unmuted. Can you hear me?
Don Wayne Cummings: We can.
Suneet Kamath: Okay, sorry about that. Good morning. I wanted to start with annuities. Do you have a sense of what percentage of your sales represent exchange activity versus true new business?
Laura Louene Prieskorn: Good morning, Suneet. Thank you for the question. The first quarter sales, which were very healthy at $5.3 billion, are a reflection of new business without any internal exchanges. So the sales reported would be all new business minus any internal exchanges.
Suneet Kamath: Okay. And then I guess maybe a bigger picture question. Oh, sorry—there is some background noise. So, bigger picture question: obviously, there is a pretty large merger of equals going on in the annuity space. We have not seen one of those in, I do not know, twenty years or so. Just wondering, Laura, if you think this changes the industry dynamic at all, and any thought that you could give on overall consolidation in the space would be helpful. Thanks.
Laura Louene Prieskorn: I agree with you. This is a large change and one that we have not seen in the industry in quite some time. From a competitive perspective, I would say we compete with both organizations that are recently involved in the merger announcement. We have a diversified product set that I think, in comparison to the combined organization, will allow us to continue to compete well. In terms of any other consolidation, I would not have any comment on what else might occur. But I think we will continue to compete constructively with both organizations as we have in the past, and look forward, from our diversified product offerings, to continuing to focus on growth across all those annuity types.
Don Wayne Cummings: And just to chime in on the merger, as Laura highlighted, we already have a comprehensive product suite, and we also happen to have one of the largest distribution forces in our space. Our wholesaler group has been quite effective over the last several years, and we are expanding this year. So we feel well positioned both with our product suite and with our distribution capabilities going forward.
Suneet Kamath: Got it. And then just one other one for Don, if I could. Just on Brook Re and the additional capital that is now in the subsidiary, I guess related to Hickory. Does that change the timing of when you might be able to take dividends out of Brook Re? Any update there would be helpful.
Don Wayne Cummings: Sure, happy to take that question, Suneet. You are right—we did put $500 million of capital into Brook Re during the quarter. That is the growth capital that we have designated for Hickory Re. After the capital contribution and the roughly $100 million loss we experienced at Brook Re during the quarter, we are still up in capital there. In terms of the timing of when we expect to be able to distribute capital from Brook Re, as I mentioned on the fourth quarter earnings call, we would anticipate that Hickory will start generating capital that we will be able to distribute in the near term—think the next few years.
Capital that would be distributed from the business that is sitting at Brook Re on a standalone basis would be more of a longer-term timeframe. Hopefully that helps.
Operator: Thank you. Our next question comes from Ryan Krueger with KBW. Please unmute to ask your question.
Ryan Joel Krueger: Hey, thanks. Good morning. My first question was on capital generation. Given the continued headwinds to alternative returns, can you give us any sense of how sensitive your capital generation is to the alts returns? I know we can look at the dollar-for-dollar return impact, but I think there is probably also an offset in required capital given high capital charges against alts. So just any sensitivity that you could provide would be helpful.
Unknown Speaker: Thanks.
Don Wayne Cummings: Yeah, good morning, Ryan. Thanks for that question. You are right—there is a bit of sensitivity with capital generation, and you do get a bit of an offset given the higher capital charge. As we look at the results we generated in the first quarter, and given the recovery in markets since the end of the quarter—equity markets are back near or at all-time highs—we feel pretty comfortable for the full year in being able to hit our $1.2 billion target. And as a reminder, that was based on a 5% total equity market return. We feel good about that.
We do not see any issues with our alternative returns, but I will ask Christopher Allen Raub to add a little color on how we look at that asset class and our recent performance as well as long term.
Christopher Allen Raub: Thanks, Don. Ryan, thanks for the question. Just some flavor to help you as you think about that portfolio: it is predominantly private equity investing with a middle-market buyout focus. We also have a modest amount of CLO equity and some other fund investments in there. Returns are reported on a one-quarter lag and will reflect market conditions at the time. Nothing we saw in the quarter changes our thoughts around the 10% long-term assumption. In fact, that is a measure we have outperformed since being public a number of years ago.
Ryan Joel Krueger: Thanks. And then on the TPG relationship, I know you talked about allocating new money to assets managed by TPG. I think you had also talked about maybe an opportunity to reposition some of the existing assets, particularly in the payout annuity book. Can you give us any sense of the timing on that? Is this going to take a while to do, or is that something that could happen more quickly on repositioning of the existing assets?
Don Wayne Cummings: Thanks, Ryan. We closed the partnership with TPG midway through the quarter, and we have started seeing some capital deployed by TPG. It is early days. In terms of being able to reposition our overall portfolio outside of our new business flows, we still have that potential. That is certainly on our list to work through as we get the partnership fully stood up.
Operator: Thank you. Our next question comes from Alex Scott with Barclays. Please unmute to ask your question. Alex, please unmute to ask your question.
Alex Scott: Hi, good morning. Hope you can hear me. I just wanted to first ask about the growth that you are seeing in some of the RILAs and FIAs. Can you take us into some of the feature changes and things that you are doing to prompt more of the growth? Are there bonuses on the products? Have you increased cap rates? What features are you tweaking to make it more attractive?
Laura Louene Prieskorn: Good morning, Alex. Thank you for the question. Throughout 2025, we refreshed our RILA product, and in the fall we launched an FIA product as well. Both Don and I have talked about the diversification of our sales being a goal, and RILA sales were about 40% of our total retail sales in the first quarter. The product update for RILA in 2025 included flexibility and choice that differentiate it from other products in the market—in terms of crediting methods, the protection level, and the number of indexes available. On the FIA front, that launch included a living benefit option that can be elected not just at sale, but also post-sale, which is a unique feature.
We have seen great momentum in FIA sales, and as we continue through this year, we expect spread-based sales growth to benefit not just from the product refresh, but also from the efforts at PPM to seek greater yield, the establishment of the captive for fixed and FIA, as well as the partnership with TPG that Don just discussed. We are excited about the growth on the spread-based side.
Alex Scott: That is helpful. Thank you. Next question I had is on the PCAPS, actually. I thought it was interesting as you were describing the PCAPS—you mentioned that it could potentially allow you to run leaner on capital. Is that something I should pay more attention to? Your RBC ratio in the operating company is pretty high at the moment, and your holdco cash is pretty high relative to your thresholds. Does adding that kind of contingent liquidity change the way you may be able to manage some of those levels?
Don Wayne Cummings: Hey, Alex. Let me first highlight our RBC levels. As we have talked about on prior calls, given our shift to continuing to focus on our business and more on spread-based products, we do expect to see our RBC ratio come down over time. So that is point one. Second, specifically around the use of PCAPS, we think the way that facility is structured provides a very good source of contingent capital should we get into a severe stress scenario, and that is one of the features we found attractive.
We obviously do very robust stress testing at a variety of levels and, as we went through our overall enterprise stress testing, felt that a facility like PCAPS provides a good source of capital in a very severe stress environment.
Operator: This concludes our Q&A session. I will now turn the call back to Laura Louene Prieskorn for closing remarks.
Laura Louene Prieskorn: Thank you. Jackson Financial Inc.’s strong first quarter performance reinforces the resilience of our business. We look forward to continuing these discussions and sharing our progress toward our 2026 targets after next quarter. Thank you for your ongoing interest in Jackson Financial Inc.
Operator: The call has concluded. Thank you for joining. You may now disconnect.
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JXN Q1 2026 Earnings Transcript was originally published by The Motley Fool
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- Jackson Financial Inc. Q1 2026 Earnings Call Summary
May 6, 2026
Jackson Financial Inc. Q1 2026 Earnings Call Summary - Moby
Strategic Performance and Operational Context
Performance was driven by a 31% year-over-year increase in retail annuity sales, led by the Market Link Pro RILA suite and the new Jackson Income Assurance fixed indexed annuity. Management attributed the 18% increase in adjusted operating EPS to strong spread-based earnings growth and the accretive impact of the share repurchase program. The business model is intentionally shifting toward a more diversified in-force book, with nearly 40% of account values now coming from spread-based and investment-only variable annuities. Net outflows improved by 30% year-over-year, primarily due to significant RILA inflows and lower variable annuity surrenders linked to recent equity market uncertainty. The TPG strategic partnership was established to enhance investment returns in asset-based finance and direct lending, supporting the competitiveness of spread-based products. Management highlighted that at Jackson National Life, the capital position and RBC have become significantly less sensitive to equity market movements, reflecting the benefits of the Brook Re structure.
Outlook and Strategic Assumptions
Management reaffirmed 2026 financial targets, including free capital generation of $1.2 billion and shareholder capital returns between $900 million and $1.1 billion. Guidance assumes a modest market environment with a 5% total equity market return and interest rates following the year-end forward curve. The company expects continued momentum in spread-based sales, supported by PPM's investment expertise and the gradual deployment of capital into TPG-managed assets. While current equity market highs may lead to increased surrender activity in the variable annuity block, management expects this to be offset by growth in fee income and AUM. The $900 million PCAPS facility is intended to serve as a contingent capital buffer against severe market stress, allowing for a more efficient and lean balance sheet over time.
Non-Recurring Items and Risk Factors
Limited partnership returns fell below the long-term 10% assumption, resulting in a $0.48 per share unfavorable impact due to quarterly valuation fluctuations. A proactive initiative to identify deceased policyholders led to higher claims during the quarter, creating a $0.42 per share headwind to earnings. Net hedging results showed a $101 million loss, primarily due to divergent performance between actively managed funds and their benchmarks during market dislocations driven by investor sentiment around artificial intelligence and ongoing geopolitical developments. The company issued 4.7 million shares to TPG midway through the quarter as part of their strategic partnership agreement.
Story Continues
Q&A Session Highlights
Internal exchange activity versus true new business sales
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Management clarified that the $5.3 billion in first-quarter sales represents entirely new business and does not include any internal exchange activity.
Impact of industry consolidation and large-scale annuity mergers
CEO Laura Prieskorn noted that while the industry is seeing rare large-scale mergers, Jackson's diversified product set and large distribution force allow it to compete effectively. Management emphasized that their wholesaler group is expanding this year to further strengthen distribution capabilities.
Timing of capital distributions from the Brook Re subsidiary
CFO Don Cummings expects Hickory Re to generate distributable capital in the near term (next few years). Distributions from the standalone business currently at Brook Re are viewed as a longer-term prospect.
Sensitivity of capital generation to alternative investment returns
Management stated that while lower alt returns impact earnings, there is a partial offset through lower required capital charges. The company remains confident in its 10% long-term return assumption for the private equity-heavy portfolio despite quarterly volatility.
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- Jackson Financial Inc. (JXN) Q1 2026 Earnings Call Transcript
May 6, 2026 · seekingalpha.com
Jackson Financial Inc. (JXN) Q1 2026 Earnings Call Transcript
- Jackson Announces Strong First Quarter 2026 Results
May 5, 2026
LANSING, Mich., May 05, 2026--(BUSINESS WIRE)--Jackson Financial Inc. (NYSE: JXN) (Jackson®) today announced its financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Key Highlights
Retail annuity sales1 of $5.3 billion in the first quarter of 2026, up 31% from the first quarter of 2025, reflecting continued strong demand across our product suite
Variable annuity sales1 of $2.5 billion were down 6% from the first quarter of 2025, primarily reflecting lower sales of products with lifetime benefits Registered index-linked annuity (RILA) sales of $2.0 billion were up 68% from the first quarter of 2025 Fixed and fixed index annuity (FIA) sales of $756 million were up 335% from the first quarter of 2025, driven by Jackson Income Assurance℠, our recently launched FIA Robust sales for spread products are supported by capabilities added at PPM America, Inc. (PPM), our asset management subsidiary, to source higher yielding assets. These sales, combined with a focus on growing third-party business, contributed to an 18% increase in PPM assets under management (AUM) from the first quarter of 2025. Net (loss) attributable to Jackson Financial Inc. common shareholders of $(435) million, or $(6.24) per diluted share in the first quarter of 2026, compared to $(35) million, or $(0.48) per diluted share in the first quarter of 2025 Adjusted operating earnings2 of $361 million, or $5.15 per diluted share in the first quarter of 2026, compared to $376 million, or $5.10 per diluted share in the first quarter of 2025, primarily reflecting higher spread income from growth in average RILA, FIA, and Institutional AUM and a reduced share count due to repurchases, partially offset by higher general and administrative (G&A) expenses Adjusted operating earnings per diluted share excluding notable items3 of $5.94 in the first quarter of 2026, up from $5.05 in the first quarter of 2025 Robust capital position at the operating company, with total adjusted capital of $5.5 billion as of March 31, 2026, and an estimated risk-based capital (RBC) ratio at Jackson National Life Insurance Company (JNL) of 554% Jackson (parent company only) net cash provided by (used in) operating activities of $19 million in the first quarter of 2026, down from $29 million in the first quarter of 2025 Free cash flow2 of $288 million in the first quarter of 2026 reflecting distributions from our operating company of $325 million, which were up 35% from the first quarter of 2025 Returned $257 million to common shareholders in the first quarter of 2026, up 11% from the first quarter of 2025, through $192 million of common share repurchases and $65 million in common dividends Cash and highly liquid securities at the holding company of nearly $650 million as of March 31, 2026, which was above Jackson’s targeted $250 million minimum liquidity buffer
Story Continues
Laura Prieskorn, President and Chief Executive Officer of Jackson, stated, "Our first quarter results underscore the continued strength of our business and steady progress toward achieving our strategic objectives. We delivered 31% growth in retail annuity sales compared to the same period last year with a more diversified business mix, demonstrating both our distribution reach and the momentum in our spread business, including the successful start of our partnership with TPG. Our robust in-force book of business delivered free cash flow of $288 million, which was substantially higher than the first quarter of 2025. Additionally, we’ve made strong progress toward our financial targets, with significant free capital generation in the first quarter, $257 million of capital return to common shareholders, and healthy levels of excess cash at the holding company. We expect to build on this momentum throughout 2026 and remain committed to helping Americans achieve financial security."
Consolidated First Quarter 2026 Results
The Company reported a net (loss) attributable to Jackson Financial Inc. common shareholders of $(435) million, or $(6.24) per diluted share for the three months ended March 31, 2026, compared to $(35) million, or $(0.48) per diluted share for the three months ended March 31, 2025. The first quarter net loss included a less favorable net hedging result versus the prior year’s first quarter, driven in part by higher volatility in the current quarter. The first quarter of 2026 also included a $40 million gain from business reinsured to third parties, while the prior year’s first quarter reported a loss of $161 million. The results of reinsured business can differ significantly from quarter to quarter; however, these results do not impact our statutory capital or free cash flow and have a minimal net impact on shareholders’ equity because of the offset from related changes in accumulated other comprehensive income (AOCI). We believe the non-GAAP measure of adjusted operating earnings better represents the underlying performance of our business as adjusted operating earnings exclude, among other things, changes in the fair value of derivative instruments and market risk benefits tied to market movements.
Adjusted operating earnings for the three months ended March 31, 2026, were $361 million, or $5.15 per diluted share, compared to $376 million or $5.10 per diluted share for the three months ended March 31, 2025. The current quarter per share amount reflected higher spread income from growth in average RILA, FIA, and Institutional AUM and a reduced share count due to repurchases, partially offset by higher G&A expenses.
Total common shareholders’ equity was $9.0 billion or $125.61 per diluted share as of March 31, 2026, compared to $9.4 billion or $138.17 per diluted share as of December 31, 2025. Adjusted book value attributed to common shareholders4 was $10.4 billion or $145.35 per diluted share as of March 31, 2026, compared to $10.6 billion or $155.78 per diluted share as of December 31, 2025. The per share decrease was driven by non-operating net hedging results, capital return during the quarter, and a higher diluted share count resulting from the common equity issuance during the first quarter related to the initiation of the strategic partnership with TPG Inc. (TPG). These drivers were partially offset by adjusted operating earnings of $0.4 billion during the quarter. Return on equity attributable to common shareholders for the three months ended March 31, 2026 and March 31, 2025 were (18.9)% and (1.5)%, respectively. Adjusted operating return on equity attributable to common shareholders4 for the three months ended March 31, 2026, was 13.8%, up from 13.6% in the first quarter of 2025.
Segment Results – Pretax Adjusted Operating Earnings5
Three Months Ended (in millions) March 31, 2026 March 31, 2025 Retail Annuities $468 $420 Institutional Products 28 18 Closed Life and Annuity Blocks (29) 28 Corporate and Other (37) (24) Total5 $430 $442
Retail Annuities
Retail Annuities reported pretax adjusted operating earnings of $468 million in the first quarter of 2026, compared to $420 million in the first quarter of 2025. The current quarter results primarily reflect higher spread income resulting from growth in average RILA and FIA AUM, partially offset by higher G&A expenses.
Total retail annuity sales6 of $5.3 billion in the first quarter of 2026 were up from $4.0 billion in the first quarter of 2025. Traditional variable annuity sales6 of $2.5 billion in the first quarter were down from $2.7 billion in the first quarter of 2025, reflecting lower sales of products with lifetime benefits. RILA sales of $2.0 billion in the first quarter were up from $1.2 billion in the first quarter of 2025. Fixed and fixed index annuity sales in the first quarter of $756 million were up from $174 million in the first quarter of 2025.
Institutional Products
Institutional Products reported pretax adjusted operating earnings of $28 million in the first quarter of 2026, compared to $18 million in the first quarter of 2025, driven by higher spread income resulting from higher AUM. Net flows were $(622) million in the first quarter, and total account value of $11.1 billion was up from $9.3 billion in the first quarter of 2025.
Closed Life and Annuity Blocks
Closed Life and Annuity Blocks reported pretax adjusted operating income (loss) of $(29) million in the first quarter of 2026, compared to $28 million in the first quarter of 2025, primarily reflecting lower limited partnership income and higher death claim benefits due to the implementation of enhanced processes and data sources for identifying deceased policyholders.
Corporate and Other
Corporate and Other reported a pretax adjusted operating (loss) of $(37) million in the first quarter of 2026, compared to $(24) million in the first quarter of 2025, primarily due to higher G&A expenses.
Corporate and Other also includes the results of PPM, which has experienced 18% growth in AUM from the first quarter of 2025. AUM as of March 31, 2026 was $95.0 billion, up from $80.2 billion as of March 31, 2025, driven by growth in both Jackson’s general account due to sales of RILA, fixed, FIA and Institutional products, and third-party AUM.
Capitalization and Liquidity
(Unaudited, in billions) March 31, 2026 December 31, 2025 Statutory Total Adjusted Capital (TAC) Jackson National Life Insurance Company $5.5 $5.5
Statutory TAC at JNL was $5.5 billion as of March 31, 2026, unchanged from December 31, 2025. TAC was supported by strong earnings on in-force business, offset by a $325 million distribution to JNL’s parent during the first quarter of 2026 and the related reduction in deferred tax asset admissibility. JNL’s estimated RBC ratio was 554% as of March 31, 2026, down from the fourth quarter of 2025 due to an increase in estimated company action level required capital. Holding company free cash flow totaled $288 million in the first quarter of 2026 reflecting the $325 million distribution from the operating company.
Cash and highly liquid securities at the holding company totaled nearly $650 million as of March 31, 2026, which was above our targeted minimum liquidity buffer of $250 million.
Earnings Conference Call
Jackson will host a conference call on Wednesday, May 6, 2026, at 9 a.m. ET to review the first quarter results. The live webcast is open to the public and can be accessed at https://investors.jackson.com. A replay will be available following the call.
To register for the webcast, click here.
FORWARD-LOOKING STATEMENTS
The information in this press release contains forward-looking statements about future events and circumstances and their effects upon revenues, expenses and business opportunities. Generally speaking, any statement in this release not based upon historical fact is a forward-looking statement. Forward-looking statements can also be identified by the use of forward-looking or conditional words, such as "could," "should," "can," "continue," "estimate," "forecast," "intend," "look," "may," "expect," "believe," "anticipate," "plan," "predict," "remain," "future," "confident" and "commit" or similar expressions. In particular, statements regarding plans, strategies, prospects, targets and expectations regarding the business and industry are forward-looking statements. They reflect expectations, are not guarantees of performance and speak only as of the dates the statements are made. We caution investors that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed or implied. Other factors that could cause actual results to differ materially from those in the forward-looking statements include those reflected in Part I, Item 1A. Risk Factors and Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the U.S. Securities and Exchange Commission (the SEC) on February 24, 2026, and elsewhere in the Company’s reports filed with the SEC. Except as required by law, Jackson Financial Inc. does not undertake to update such forward-looking statements. You should not rely unduly on forward-looking statements.
Certain financial data included in this release consists of non-GAAP (Generally Accepted Accounting Principles) financial measures. These non-GAAP financial measures may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with U.S. GAAP. Although the Company believes these non-GAAP financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-GAAP financial measures and ratios included in this release. A reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure can be found in the "Non-GAAP Financial Measures" Appendix of this release.
Certain financial data included in this release consists of statutory accounting principles ("statutory") financial measures, including "total adjusted capital." These statutory financial measures are included in or derived from the Jackson National Life Insurance Company annual and/or quarterly statements filed with the Michigan Department of Insurance and Financial Services and are available in the investor relations section of the Company’s website at investors.jackson.com/financials/statutory-filings.
ABOUT JACKSON
Jackson® (NYSE: JXN) is committed to helping clarify the complexity of retirement planning—for financial professionals and their clients. Through our range of annuity products, financial know-how, history of award-winning service* and streamlined experiences, we strive to reduce the confusion that complicates retirement planning. We take a balanced, long-term approach to responsibly serving all our stakeholders, including customers, shareholders, distribution partners, employees, regulators and community partners. We believe by providing clarity for all today, we can help drive better outcomes for tomorrow. For more information, visit www.jackson.com.
*SQM (Service Quality Measurement Group) Call Center Awards Program for 2004 and 2006-2025. (Criteria used for Call Center World Class FCR Certification is 80% or higher of customers getting their contact resolved on the first call to the call center (FCR) for three consecutive months or more.)
Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York).
WEBSITE INFORMATION
Visit investors.jackson.com to view information regarding Jackson Financial Inc., including a supplement regarding the first quarter results. We routinely use our investor relations website as a primary channel for disclosing key information to our investors. We may use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations. Accordingly, investors should monitor our investor relations website, in addition to following our press releases, filings with the SEC, public conference calls, presentations, and webcasts. We and certain of our senior executives may also use social media channels to communicate with our investors and the public about our Company and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website, our social media channels, or our executives’ social media channels is not incorporated by reference into and is not part of this release.
APPENDIX
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 the use of these non-GAAP financial measures, together with relevant U.S. GAAP financial measures, provides a better understanding of our results of operations, financial condition and the underlying performance drivers of our business. These non-GAAP financial measures should be considered supplementary to our results of operations and financial condition that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP financial measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies.
Adjusted Operating Earnings
Adjusted Operating Earnings is an after-tax, non-GAAP financial measure, which we believe should be used to evaluate our financial performance on a consolidated basis by excluding certain items that may be highly variable from period to period due to accounting treatment under U.S. GAAP or that are non-recurring in nature, as well as certain other revenues and expenses that we do not view as driving our underlying performance. Adjusted Operating Earnings should not be used as a substitute for net income as calculated in accordance with U.S. GAAP. However, we believe the adjustments to net income are useful for gaining an understanding of our overall results of operations.
Free Cash Flow
Free cash flow is Jackson Financial Inc. (Parent Company only) net cash provided by (used in) operating activities less preferred stock dividends and capital contributions to PPM or other subsidiaries, plus the return of capital from our subsidiaries. Free cash flow should not be used as a substitute for JFI’s (Parent Company only) net cash provided by (used in) operating activities calculated in accordance with U.S. GAAP. However, we believe these adjustments are useful to gaining an understanding of our overall available cash flow at JFI for return of capital to common shareholders and other corporate initiatives.
For additional detail on the non-GAAP financial measures, please refer to the supplement relating to the first quarter ended March 31, 2026, posted on our website, https://investors.jackson.com.
The following is a reconciliation of Adjusted Operating Earnings to net income (loss) attributable to Jackson Financial Inc. common shareholders, the most comparable U.S. GAAP measure.
U.S. GAAP Net Income (Loss) to Adjusted Operating Earnings
Three Months Ended (in millions, except share and per share data) March 31, 2026 March 31, 2025 Net income (loss) attributable to Jackson Financial Inc. common shareholders $ (435 ) $ (35 ) Add: dividends on preferred stock 11 11 Add: income tax expense (benefit) 20 1 Pretax income (loss) attributable to Jackson Financial Inc. (404 ) (23 ) Non-operating adjustments – (income) loss: Guaranteed benefits and hedging results: Fees attributable to guarantee benefit reserves (771 ) (768 ) Net (gains) losses on hedging instruments 460 (1,011 ) Market risk benefits (gains) losses, net 1,670 2,246 Net reserve and embedded derivative movements (707 ) (333 ) Total net hedging results 652 134 Amortization of DAC associated with non-operating items at date of transition to LDTI1 121 128 Actuarial assumption updates and model enhancements — — Net realized investment (gains) losses 42 66 Net realized investment (gains) losses on funds withheld assets 159 388 Net investment income on funds withheld assets (199 ) (227 ) Other items 59 (24 ) Total non-operating adjustments 834 465 Pretax adjusted operating earnings 430 442 Less: operating income tax expense (benefit) 58 55 Adjusted operating earnings before dividends on preferred stock 372 387 Less: dividends on preferred stock 11 11 Adjusted operating earnings $ 361 $ 376 Weighted Average diluted shares outstanding 70,061,288 73,717,082 Net income (loss) per diluted share $ (6.24 ) $ (0.48 ) Adjusted Operating Earnings per diluted share $ 5.15 $ 5.10 1LDTI - Adoption of FASB issued ASU 2018-12 "Targeted Improvements to the Accounting for Long Duration Contracts".
Adjusted Earnings Per Share, Excluding Notables and Taxes
Three Months Ended (in millions, except per share amounts) March 31, 2026 March 31, 2025 Adjusted operating earnings $ 361 $ 376 Add: (Out performance)/under performance from limited partnership income 34 8 Add: Enhanced processes and data sources from identifying deceased policyholders 29 — Add: Impact from effective tax rate versus a 15% tax rate guidance (8 ) (12 ) Adjusted Operating Earnings exclude notable items and taxes $ 416 $ 372 Adjusted Operating Earnings per common share (diluted), excluding notable items and taxes $ 5.94 $ 5.05
The following is a reconciliation of Jackson Financial net cash provided by (used in) operating activities (Parent Company only), the most comparable U.S. GAAP measure, to Free Cash Flow:
Three Months Ended (in millions) March 31, 2026 March 31, 2025 Jackson Financial, Inc. (Parent Company Only) Net cash provided by (used in) operating activities $ 19 $ 29 Adjustments from net cash provided by operating activities to free cash flow: Issuance of treasury stock to TPG 500 — Capital distributions from subsidiaries 280 195 Capital contributed to subsidiaries (500 ) — Dividends on preferred stock (11 ) (11 ) Total adjustments 269 184 Free cash flow $ 288 $ 213 Free Cash Flow Comprised of: Issuance of treasury stock to TPG 500 — Capital distributions from subsidiaries 280 195 Interest on surplus notes from subsidiary 45 45 Cash distributed to JFI 825 240 Capital contributed to Hickory Re (500 ) — Parent company expenses (29 ) (28 ) Net investment income and other income 7 8 Other, net (15 ) (7 ) JFI expenses and other, net (37 ) (27 ) Free cash flow $ 288 $ 213
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 arising from investments held within the funds withheld account related to the Athene Reinsurance Transaction. We exclude AOCI attributable to JFI from Adjusted Book Value Attributable to Common Shareholders because our invested assets are generally invested to closely match the duration of our liabilities, which are longer duration in nature, and therefore we believe period-to-period fair market value fluctuations in AOCI to be inconsistent with this objective. We believe excluding AOCI attributable to JFI is more useful to investors in analyzing trends in our business because it removes those short-term fluctuations. Changes in AOCI within the funds withheld account related to the Athene Reinsurance Transaction offset the related non-operating earnings from the Athene Reinsurance Transaction resulting in a minimal net impact on the Adjusted Book Value of JFI.
(in millions) March 31, 2026 December 31, 2025 Total shareholders’ equity $ 9,496 $ 9,953 Less: Preferred equity 533 533 Total common shareholders’ equity 8,963 9,420 Adjustments to total common shareholders’ equity: Exclude Accumulated Other Comprehensive (Income) Loss attributable to Jackson Financial Inc. 1,409 1,201 Adjusted Book Value Attributable to Common Shareholders $ 10,372 $ 10,621
Condensed Consolidated Balance Sheets
March 31, December 31, 2026 2025 (in millions, except share and per share data) Assets Investments: Debt Securities, available-for-sale, net of allowance for credit losses of $17 and $11 at March 31, 2026 and December 31, 2025, respectively (amortized cost: 2026 $52,356; 2025 $50,491) $ 48,597 $ 47,321 Debt Securities, at fair value under fair value option 3,351 3,470 Equity securities, at fair value 243 172 Mortgage loans, net of allowance for credit losses of $159 and $133 at March 31, 2026 and December 31, 2025, respectively 10,248 9,887 Mortgage loans, at fair value under fair value option 196 324 Policy loans (including $3,556 and $3,537 at fair value under the fair value option at March 31, 2026 and December 31, 2025, respectively) 4,431 4,426 Freestanding derivative instruments 701 448 Other invested assets 3,246 3,185 Total investments 71,013 69,233 Cash and cash equivalents 5,539 5,704 Accrued investment income 636 634 Deferred acquisition costs 11,634 11,660 Reinsurance recoverable, net of allowance for credit losses of $30 and $30 at March 31, 2026 and December 31, 2025, respectively 18,926 19,518 Reinsurance recoverable on market risk benefits, at fair value 121 118 Market risk benefit assets, at fair value 6,701 7,867 Deferred income taxes, net 610 719 Other assets 905 637 Separate account assets 223,452 236,496 Total assets $ 339,537 $ 352,586
Condensed Consolidated Balance Sheets
March 31, December 31, 2026 2025 (in millions, except share and per share data) Liabilities and Equity Liabilities Reserves for future policy benefits and claims payable $ 10,706 $ 10,896 Other contract holder funds 68,703 67,663 Market risk benefit liabilities, at fair value 3,971 3,754 Funds withheld payable under reinsurance treaties (including $3,744 and $3,723 at fair value under the fair value option at March 31, 2026 and December 31, 2025, respectively) 14,511 14,960 Long-term debt 2,027 2,030 Repurchase agreements and securities lending payable 505 1,036 Collateral payable for derivative instruments 343 58 Freestanding derivative instruments 238 257 Notes issued by consolidated variable interest entities, at fair value under fair value option 2,543 2,578 Other liabilities 2,638 2,516 Separate account liabilities 223,452 236,496 Total liabilities 329,637 342,244 Equity Series A non-cumulative preferred stock and additional paid in capital, $1.00 par value per share: 24,000 shares authorized; 22,000 shares issued and outstanding at March 31, 2026 and December 31, 2025; liquidation preference $25,000 per share 533 533 Common stock; 1,000,000,000 shares authorized, $0.01 par value per share and 70,270,752 and 66,825,632 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 1 1 Additional paid-in capital 6,393 6,063 Treasury stock, at cost; 24,217,563 and 27,662,683 shares at March 31, 2026 and December 31, 2025, respectively (1,671 ) (1,645 ) Accumulated other comprehensive income (loss), net of tax expense (benefit) of $(287) and $(377) at March 31, 2026 and December 31, 2025, respectively (2,728 ) (2,470 ) Retained earnings 6,968 7,471 Total shareholders' equity 9,496 9,953 Noncontrolling interests 404 389 Total equity 9,900 10,342 Total liabilities and equity 339,537 352,586
Condensed Consolidated Income Statements
Three Months Ended March 31, (in millions, except per share data) 2026 2025 Revenues Fee income $ 1,998 $ 1,986 Premiums 28 40 Net investment income: Net investment income excluding funds withheld assets 541 528 Net investment income on funds withheld assets 199 227 Total net investment income 740 755 Net gains (losses) on derivatives and investments: Net gains (losses) on derivatives and investments 283 1,343 Net gains (losses) on funds withheld reinsurance treaties (159 ) (388 ) Total net gains (losses) on derivatives and investments 124 955 Other income 12 14 Total revenues 2,902 3,750 Benefits and Expenses Death, other policy benefits and change in policy reserves, net of deferrals 258 244 (Gain) loss from updating future policy benefits cash flow assumptions, net 18 12 Market risk benefits (gains) losses, net 1,670 2,246 Interest credited on other contract holder funds, net of deferrals and amortization 315 288 Interest expense 25 25 Operating costs and other expenses, net of deferrals 735 677 Amortization of deferred acquisition costs 281 275 Total benefits and expenses 3,302 3,767 Pretax income (loss) (400 ) (17 ) Income tax expense (benefit) 20 1 Net income (loss) (420 ) (18 ) Less: Net income (loss) attributable to noncontrolling interests 4 6 Net income (loss) attributable to Jackson Financial Inc. (424 ) (24 ) Less: Dividends on preferred stock 11 11 Net income (loss) attributable to Jackson Financial Inc. common shareholders $ (435 ) $ (35 ) Earnings per share Basic $ (6.24 ) $ (0.48 ) Diluted 1 $ (6.24 ) $ (0.48 ) (1) If we reported a net loss attributable to Jackson Financial Inc., all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts. The shares excluded from the diluted EPS calculation were 317,447 and 247,765 shares for the three months ended March 31, 2026 and 2025.
1 Excludes certain internal exchanges 2 For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release. 3 See the appendix for a reconciliation and definitions related to notable items 4 For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release. 5 See reconciliation of Total Pretax Adjusted Operating Earnings, a non-GAAP financial measure, to net income in the Appendix to this release. 6 Excludes certain internal exchanges
View source version on businesswire.com: https://www.businesswire.com/news/home/20260505654596/en/
Contacts
Investor Relations Contacts:
Liz Werner
elizabeth.werner@jackson.com
Andrew Campbell
andrew.campbell@jackson.com
Media Contact:
Chad Crunk
mediarelations@jackson.com
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- Jackson Announces Second Quarter 2026 Common and Preferred Stock Dividends
May 5, 2026
LANSING, Mich., May 05, 2026--(BUSINESS WIRE)--Jackson Financial Inc.1 (Jackson®) announced its Board of Directors has declared a cash dividend of $0.90 per share of common stock (NYSE: JXN) for the second quarter of 2026. The dividend on the common stock will be payable on June 25, 2026, to shareholders of record at the close of business on June 11, 2026.
The Company also announced the declaration of a cash dividend of $0.50 per depositary share (NYSE: JXN PR A), each representing a 1/1,000th interest in a share of Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A. The dividend will be payable on June 30, 2026, to shareholders of record at the close of business on June 11, 2026.
ABOUT JACKSON
Jackson® (NYSE: JXN) is committed to helping clarify the complexity of retirement planning—for financial professionals and their clients. Through our range of annuity products, financial know-how, history of award-winning service* and streamlined experiences, we strive to reduce the confusion that complicates retirement planning. We take a balanced, long-term approach to responsibly serving all our stakeholders, including customers, shareholders, distribution partners, employees, regulators and community partners. We believe by providing clarity for all today, we can help drive better outcomes for tomorrow. For more information, visit www.jackson.com.
*SQM (Service Quality Measurement Group) Call Center Awards Program for 2004 and 2006-2025. (Criteria used for Call Center World Class FCR Certification is 80% or higher of customers getting their contact resolved on the first call to the call center (FCR) for three consecutive months or more.)
Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York).
WEBSITE INFORMATION
Visit investors.jackson.com to view information regarding Jackson Financial Inc. We routinely use our investor relations website as a primary channel for disclosing key information to our investors. We may use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations. Accordingly, investors should monitor our investor relations website, in addition to following our press releases, filings with the SEC, public conference calls, presentations, and webcasts. We and certain of our senior executives may also use social media channels to communicate with our investors and the public about our Company and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website, our social media channels, or our executives' social media channels, is not incorporated by reference into and is not part of this press release.
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FORWARD LOOKING STATEMENTS
The information in this press release contains forward-looking statements about future events and circumstances and their effects upon revenues, expenses and business opportunities. Generally speaking, any statement in this release not based upon historical fact is a forward-looking statement. Forward-looking statements can also be identified by the use of forward-looking or conditional words, such as "could," "should," "can," "continue," "estimate," "forecast," "intend," "look," "may," "expect," "believe," "anticipate," "plan," "predict," "remain," "future," "confident" and "commit" or similar expressions. In particular, statements regarding plans, strategies, prospects, targets and expectations regarding the business and industry are forward-looking statements. They reflect expectations, are not guarantees of performance and speak only as of the dates the statements are made. We caution investors that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed or implied. Other factors that could cause actual results to differ materially from those in the forward-looking statements include those reflected in Part I, Item 1A. Risk Factors and Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the U.S. Securities and Exchange Commission (the "SEC") on February 24, 2026, and elsewhere in the Company’s reports filed with the SEC. Except as required by law, Jackson Financial Inc. does not undertake to update such forward-looking statements. You should not rely unduly on forward-looking statements.
1Jackson Financial Inc. is a U.S. holding company and the direct parent of Jackson Holdings LLC (JHLLC). The wholly-owned direct and indirect subsidiaries of JHLLC include Jackson National Life Insurance Company, Brooke Life Insurance Company, PPM America, Inc. and Jackson National Asset Management LLC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260505895197/en/
Contacts
Media Contact:
Chad Crunk
mediarelations@jackson.com
Investor Relations Contact:
Andrew Campbell
andrew.campbell@jackson.com
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- Jackson Announces Strong First Quarter 2026 Results
May 5, 2026 · businesswire.com
LANSING, Mich.--(BUSINESS WIRE)--Jackson Financial Inc. (NYSE: JXN) (Jackson®) today announced its financial results for the first quarter ended March 31, 2026. First Quarter 2026 Key Highlights Retail annuity sales1 of $5.3 billion in the first quarter of 2026, up 31% from the first quarter of 2025, reflecting continued strong demand across our product suite Variable annuity sales1 of $2.5 billion were down 6% from the first quarter of 2025, primarily reflecting lower sales of products with li.
- JACKSON ANNOUNCES STRONG FIRST QUARTER 2026 RESULTS
May 5, 2026
LANSING, MICH.--(BUSINESS WIRE)--JACKSON FINANCIAL INC. (NYSE: JXN) (JACKSON®) TODAY ANNOUNCED ITS FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2026. FIRST QUARTER 2026 KEY HIGHLIGHTS RETAIL ANNUITY SALES1 OF $5.3 BILLION IN THE FIRST QUARTER OF 2026, UP 31% FROM THE FIRST QUARTER OF 2025, REFLECTING CONTINUED STRONG DEMAND ACROSS OUR PRODUCT SUITE VARIABLE ANNUITY SALES1 OF $2.5 BILLION WERE DOWN 6% FROM THE FIRST QUARTER OF 2025, PRIMARILY REFLECTING LOWER SALES OF PRODUCTS WITH LI.
