Jackson Financial Inc. Reports Strong First-Quarter Earnings Surge in 2024

Jackson Financial Inc. has made a remarkable comeback in the first quarter of 2024, reporting earnings of $784 million, or $9.94 per share. This is a significant improvement from the $1.5 billion loss (-$18.11 per share) reported in the same quarter of 2023. The company’s adjusted operating earnings also saw a boost, reaching $334 million compared to $271 million in the previous year.

One of the key factors contributing to Jackson Financial’s improved financial position is the establishment of Brooke Reinsurance Company, the company’s indirect wholly owned Michigan captive. This move has strengthened the company’s capital reserves and had a positive impact on its subsidiaries, particularly Jackson National Life insurance Company. The benefits include more stable capital generation, reduced volatility in net hedging results, and improved alignment of adjusted operating earnings with regulatory capital generation.

Jackson’s President and CEO, Laura Prieskorn, expressed confidence in the company’s long-term capital strength and commitment to stakeholders. Retail annuity sales surged nearly 20% in the first quarter of 2024, driven by record registered index-linked annuity (RILA) sales. Overall annuity sales also saw a robust increase, totaling $3.7 billion, an 18% rise from the same period in 2023. The total annuity account value reached $248 billion, reflecting a 13% growth from the previous year.

The company’s risk-based capital ratio at Jackson National exceeded expectations, standing at 555-575%, well above the minimum target of 425%. Chief Financial Officer Marcia Wadsten highlighted the strong capital position and liquidity reserves, which support future operating company dividends. Jackson Financial returned $172 million to common shareholders in the first quarter of 2024 through share repurchases and dividends.

Investors responded positively to the earnings report, with Jackson Financial stock rising more than 5% in trading following the earnings call. The stock, which has doubled in value over the past year, reached $77.12 per share.

In conclusion, Jackson Financial’s impressive first-quarter performance demonstrates its resilience and strategic initiatives. The company’s focus on capital strength, sales growth, and shareholder rewards bodes well for its future prospects in the financial market.