Jackson Financial (JXN) 7 Nov 24 2024 Q3 Earnings call transcript
1min read Jackson Financial Inc. reported a net loss in the third quarter of 2024, but positive earnings over the full year, signaling a period of greater stability and alignment between adjusted operating earnings, GAAP net income, and statutory capital generation. The company's retail annuity sales exceeded $5 billion for the quarter, marking a record high and demonstrating the success of recent product and distribution initiatives.
Robust Sales and Capital Generation
Jackson Financial's retail annuity sales have been a standout, with a 59% increase from the third quarter of 2023 and a 25% increase from the second quarter of 2024. The RILA segment hit record sales of over $1.6 billion in the third quarter, driven by the growth of Jackson Market Link Pro, which has become a top choice for RILA products. The company's traditional variable annuity sales also remained strong, with sales up 6% for the first nine months of the year.
Jackson's capital generation has also been robust, with after-tax capital generation reaching $1 billion for the first nine months of the year. The company has returned capital to shareholders through both common shareholder dividends and share repurchases, totaling nearly $1.7 billion since the company's separation in 2021.
Hedging Program and Regulatory Capital
The company's hedging program has been instrumental in improving the stability of results and is working as expected. However, market risk benefits have been volatile, with negative impacts from policyholder behavior and equity market movements. The company has a strong capital position, with a reported RBC ratio up slightly from the second quarter and above the minimum required level.
Looking Ahead
Jackson Financial is on track to meet its annual financial targets for the fourth year in a row and remains committed to capital return, profitable growth, and enhancing shareholder value. The company's strong capital position and growing liquidity should allow for continued growth and strategic opportunities, including the expansion of its distribution network and product offerings.
Investor Questions and Answers
During the earnings call, analysts asked about the offset of capital from growing the business and the potential for capital return from Brooke Re. The company responded that it remains comfortable with its current capital mix and expects to continue a balanced approach to capital return. As for Brooke Re, the company plans to wait for the business to generate capital before considering a common dividend.
In summary, Jackson Financial Inc.'s third quarter results demonstrate a period of stability and growth, driven by strong retail annuity sales, capital generation, and a robust hedging program. The company's focus on capital management and disciplined approach to capital return positions it well for continued success in the future.
