Jackson Financial's Q1 2025: Unpacking Contradictions on Brooke Re Capitalization, Market Sensitivity, and Annuity Strategy

Brooke Re capitalization and injections, capital injection in Brooke Re, capital generation sensitivity to markets, and annuity sales strategy and approach are the key contradictions discussed in Jackson Financial's latest 2025Q1 earnings call.



Strong Financial Performance and Capital Returns:
- Jackson Financial reported adjusted operating earnings of $376 million, up 13% over the previous year, with per-share earnings increasing over 20%.
- This growth is attributed to consistent share repurchase and return to shareholders, reflecting the company's strong business expansion and financial strength.

Annuity Sales and Product Diversification:
- First quarter retail annuity sales exceeded $4 billion, up more than 9% from a year ago, driven by strong demand across all products.
- The diversified sales mix, including a significant portion from variable annuities without living benefits and the innovative RILA product suite, contributes to the company's growth.

Strength in Fixed Annuity Sales and Market Position:
- Fixed and fixed-indexed annuity sales showed meaningful growth compared to the previous year, despite a more moderated pace.
- This growth is attributed to a disciplined approach to market conditions and Jackson's innovative product design, service, and risk management.

Increased Advisory Sales and Digital Experience:
- Jackson's advisory sales increased by 28% over the first quarter of 2024, reaching an annual run rate of more than $1 billion over the past 12 months.
- The growth is driven by the company's strong value proposition and beneficial digital experience, which facilitates the inclusion of annuities in comprehensive financial plans.