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Wall Street JournalJackson Financial Inc. Quarterly Report for the Period Ended March 31, 2024
Jackson Financial Inc. Quarterly Report for the Period Ended March 31, 2024
Jackson Financial Inc. has filed a Form 10-Q for the quarterly period ended March 31, 2024, with the Securities and Exchange Commission. The company is a large accelerated filer with 76,264,349 shares of common stock outstanding. The filing includes information on the company’s securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as well as details on its trading symbols and the exchanges on which they are registered.
Company Overview
Jackson Financial Inc. (JFI) is a financial services company that helps Americans grow and protect their retirement savings and income. Its primary operating subsidiary, Jackson National Life Insurance Company, sells annuities and life insurance products.
JFI operates through three business segments:
- Retail Annuities - sells variable, fixed index, and fixed annuities to individuals
- Institutional Products - sells retirement and asset liability products to institutional investors
- Closed Life and Annuity Blocks - manages closed blocks of life insurance, annuities, and corporate-owned life insurance
First Quarter 2024 Financial Highlights
- Net income attributable to common shareholders was $784 million compared to a net loss of $1.5 billion in first quarter 2023
- Adjusted operating earnings were $334 million compared to $271 million in first quarter 2023
- Return on equity attributable to common shareholders was 32.5% compared to (71.5)% in first quarter 2023
- Repurchased $116 million of JFI common shares
- Declared $56 million in common dividends and $11 million in preferred dividends
Key Financial Metrics
| Metric | First Quarter 2024 | First Quarter 2023 |
|---|---|---|
| Sales | $3.8 billion | $3.8 billion |
| Retail Annuities Account Value | $247.6 billion | $218.8 billion |
| Net Cash Provided by Operating Activities | $1.4 billion | $1.5 billion |
| Financial Strength Ratings | A from A.M. Best (stable), A3 from Moody’s (stable), A from S&P (stable) | A from A.M. Best (stable), A3 from Moody’s (stable), A from S&P (stable) |
Financial Performance
JFI reported significantly improved financial performance in the first quarter of 2024 compared to the prior year quarter:
- Pretax income increased by $2.9 billion to $903 million primarily due to favorable market risk benefits from changes in interest rates and equity market volatility
- Net investment income increased by $27 million due to higher yields and equity returns
- Fee income grew by $110 million driven by higher average separate account values
- Operating costs and expenses increased modestly
Overall, the business delivered strong growth in earnings and profitability compared to the prior year.
Business Outlook
JFI believes it is well-positioned to grow profitably as the aging U.S. population transitions into retirement. Key factors supporting future growth include:
- Favorable demographic trends and demand for tax-efficient retirement savings products
- Differentiated product portfolio and strong brand recognition
- Disciplined risk management
- Efficient operating platform and leading distribution network
The company has returned $172 million to common shareholders in dividends and buybacks so far in 2024. The capital return target for full year 2024 is $550-650 million.
JFI aims to generate more stable, predictable financial results going forward after executing a reinsurance transaction that better aligns hedging of risks. The company remains subject to market volatility, evolving consumer preferences, regulatory changes, and other external factors. However, the business expects to navigate these challenges based on its competitive strengths.