Jackson Announces Record Second Quarter 2026 Results
Second Quarter 2026 Key Highlights
-
Retail annuity sales1 of
$5.9 billion 34% from the second quarter of 2025, including record registered index-linked annuity (RILA) sales of$2.3 billion 69% from the second quarter of 2025-
Variable annuity (VA) sales1 of
$2.7 billion 8% from the second quarter of 2025, primarily reflecting higher sales of products without lifetime benefits -
Fixed and fixed index annuity (FIA) sales of
$812 million 73% from the second quarter of 2025, driven by our Jackson Income Assurance℠ FIA
-
Variable annuity (VA) sales1 of
-
Robust sales for spread products are supported by capabilities added at PPM America, Inc. (PPM), our asset management subsidiary, to source higher yielding assets, as well as our strategic partnership with TPG Inc. (TPG). These sales, combined with a focus on growing PPM’s third-party business, contributed to a
21% increase in PPM’s assets under management (AUM) from the second quarter of 2025, to more than$100 billion -
Net income attributable to Jackson Financial Inc. common shareholders of
$644 million $9.16 $168 million $2.34 -
Adjusted operating earnings2 of
$513 million $7.30 $350 million $4.87 -
Adjusted operating earnings per diluted share excluding notable items3 of
$7.68 $4.97 -
Robust capital position at the operating company, with total adjusted capital of
$5.8 billion 538% -
Jackson (Parent Company only) net cash provided by (used in) operating activities of
$(27) million $(24) million -
Free cash flow2 of
$287 million $325 million -
Returned
$290 million 34% from the second quarter of 2025, through$227 million $63 million -
Cash and highly liquid securities at the holding company of nearly
$1.4 billion $325 million
Laura Prieskorn, President and Chief Executive Officer of Jackson, stated, “Our second quarter results reflect the growing strength and diversification of our business. We delivered record earnings per share and
Consolidated Second Quarter 2026 Results
The Company reported net income attributable to Jackson Financial Inc. common shareholders of
Adjusted operating earnings for the three months ended June 30, 2026, were
Total common shareholders’ equity was
Segment Results – Pretax Adjusted Operating Earnings5
|
Three Months Ended |
|
(in millions) |
June 30, 2026 |
June 30, 2025 |
Retail Annuities |
|
|
Institutional Products |
29 |
19 |
Closed Life and Annuity Blocks |
(10) |
22 |
Corporate and Other |
(22) |
(52) |
Total5 |
|
|
Retail Annuities
Retail Annuities reported pretax adjusted operating earnings of
Total retail annuity sales6 of
Institutional Products
Institutional Products reported pretax adjusted operating earnings of
Closed Life and Annuity Blocks
Closed Life and Annuity Blocks reported pretax adjusted operating income (loss) of
Corporate and Other
Corporate and Other reported a pretax adjusted operating (loss) of
Corporate and Other also includes the results of PPM, which has experienced
Capitalization and Liquidity
(Unaudited, in billions) |
June 30, 2026 |
March 31, 2026 |
Statutory Total Adjusted Capital (TAC) Jackson National Life Insurance Company |
|
|
Statutory TAC at JNL was
Cash and highly liquid securities at the holding company totaled nearly
Earnings Conference Call
Jackson will host a conference call on Tuesday, August 4, 2026, at 10 a.m. ET to review the second 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
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
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
Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (
WEBSITE INFORMATION
Visit investors.jackson.com to view information regarding Jackson Financial Inc., including a supplement regarding the second 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
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
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
For additional detail on the non-GAAP financial measures, please refer to the supplement relating to the second quarter ended June 30, 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
|
Three Months Ended |
|||||
(in millions, except share and per share data) |
June 30, 2026 |
June 30, 2025 |
||||
Net income (loss) attributable to Jackson Financial Inc. common shareholders |
$ |
644 |
|
$ |
168 |
|
Add: dividends on preferred stock |
|
11 |
|
|
11 |
|
Add: income tax expense (benefit) |
|
5 |
|
|
4 |
|
Pretax income (loss) attributable to Jackson Financial Inc. |
|
660 |
|
|
183 |
|
Non-operating adjustments – (income) loss: |
|
|
||||
Guaranteed benefits and hedging results: |
|
|
||||
Fees attributable to guarantee benefit reserves |
|
(714 |
) |
|
(764 |
) |
Net (gains) losses on hedging instruments |
|
(176 |
) |
|
1,840 |
|
Market risk benefits (gains) losses, net |
|
(2,053 |
) |
|
(2,203 |
) |
Net reserve and embedded derivative movements |
|
2,671 |
|
|
1,066 |
|
Total net hedging results |
|
(272 |
) |
|
(61 |
) |
Amortization of DAC associated with non-operating items at date of transition to LDTI1 |
|
118 |
|
|
127 |
|
Actuarial assumption updates and model enhancements |
|
— |
|
|
— |
|
Net realized investment (gains) losses |
|
27 |
|
|
(30 |
) |
Net realized investment (gains) losses on funds withheld assets |
|
297 |
|
|
327 |
|
Net investment income on funds withheld assets |
|
(201 |
) |
|
(227 |
) |
Other items |
|
(11 |
) |
|
87 |
|
Total non-operating adjustments |
|
(42 |
) |
|
223 |
|
Pretax adjusted operating earnings |
|
618 |
|
|
406 |
|
Less: operating income tax expense (benefit) |
|
94 |
|
|
45 |
|
Adjusted operating earnings before dividends on preferred stock |
|
524 |
|
|
361 |
|
Less: dividends on preferred stock |
|
11 |
|
|
11 |
|
Adjusted operating earnings |
$ |
513 |
|
$ |
350 |
|
|
|
|
||||
Weighted Average diluted shares outstanding |
|
70,292,020 |
|
|
71,938,152 |
|
Net income (loss) per diluted share |
$ |
9.16 |
|
$ |
2.34 |
|
Adjusted Operating Earnings per diluted share |
$ |
7.30 |
|
$ |
4.87 |
|
|
||||||
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) |
June 30, 2026 |
June 30, 2025 |
|||
Adjusted operating earnings |
$ |
513 |
$ |
350 |
|
Add: (Out performance)/under performance from limited partnership income |
|
26 |
|
24 |
|
Add: Impact from effective tax rate versus a |
|
1 |
|
(17 |
) |
Adjusted Operating Earnings exclude notable items and taxes |
$ |
540 |
$ |
357 |
|
|
|
|
|||
Adjusted Operating Earnings per common share (diluted), excluding notable items and taxes |
$ |
7.68 |
$ |
4.97 |
|
The following is a reconciliation of Jackson Financial (Parent Company only) net cash provided by (used in) operating activities, the most comparable
Three Months Ended |
||||||
| (in millions) | June 30, 2026 |
June 30, 2025 |
||||
Jackson Financial, Inc. (Parent Company Only) Net cash provided by (used in) operating activities |
$ |
(27 |
) |
$ |
(24 |
) |
Adjustments from net cash provided by operating activities to free cash flow: |
|
|
||||
Capital distributions from subsidiaries |
|
325 |
|
|
325 |
|
Dividends on preferred stock |
|
(11 |
) |
|
(11 |
) |
Total adjustments |
|
314 |
|
|
314 |
|
Free cash flow |
$ |
287 |
|
$ |
290 |
|
|
|
|
||||
Free Cash Flow Comprised of: |
|
|
||||
Capital distributions from subsidiaries |
|
325 |
|
|
325 |
|
Cash distributed to JFI |
|
325 |
|
|
325 |
|
|
|
|
||||
Parent company expenses |
|
(37 |
) |
|
(29 |
) |
Net investment income and other income |
|
8 |
|
|
6 |
|
Other, net |
|
(9 |
) |
|
(12 |
) |
JFI expenses and other, net |
|
(38 |
) |
|
(35 |
) |
|
|
|
||||
Free cash flow |
$ |
287 |
|
$ |
290 |
|
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) |
June 30, 2026 |
December 31, 2025 |
||
Total shareholders’ equity |
$ |
9,962 |
$ |
9,953 |
Less: Preferred equity |
|
533 |
|
533 |
Total common shareholders’ equity |
|
9,429 |
|
9,420 |
Adjustments to total common shareholders’ equity: |
|
|
||
Exclude Accumulated Other Comprehensive (Income) Loss attributable to Jackson Financial Inc. |
|
1,387 |
|
1,201 |
Adjusted Book Value Attributable to Common Shareholders |
$ |
10,816 |
$ |
10,621 |
Condensed Consolidated Balance Sheets
|
|
June 30, |
|
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 |
|
$ |
52,208 |
|
$ |
47,321 |
Debt Securities, at fair value under fair value option |
|
|
3,534 |
|
|
3,470 |
Equity securities, at fair value |
|
|
262 |
|
|
172 |
Mortgage loans, net of allowance for credit losses of |
|
|
10,414 |
|
|
9,887 |
Mortgage loans, at fair value under fair value option |
|
|
595 |
|
|
324 |
Policy loans (including |
|
|
4,484 |
|
|
4,426 |
Freestanding derivative instruments |
|
|
422 |
|
|
448 |
Other invested assets |
|
|
3,392 |
|
|
3,185 |
Total investments |
|
|
75,311 |
|
|
69,233 |
Cash and cash equivalents |
|
|
5,986 |
|
|
5,704 |
Accrued investment income |
|
|
714 |
|
|
634 |
Deferred acquisition costs |
|
|
11,655 |
|
|
11,660 |
Reinsurance recoverable, net of allowance for credit losses of |
|
|
18,331 |
|
|
19,518 |
Reinsurance recoverable on market risk benefits, at fair value |
|
|
109 |
|
|
118 |
Market risk benefit assets, at fair value |
|
|
8,046 |
|
|
7,867 |
Deferred income taxes, net |
|
|
609 |
|
|
719 |
Other assets |
|
|
917 |
|
|
637 |
Separate account assets |
|
|
245,387 |
|
|
236,496 |
Total assets |
|
$ |
367,065 |
|
$ |
352,586 |
Condensed Consolidated Balance Sheets
June 30, |
|
December 31, |
|||||||
|
2026 |
|
|
2025 |
|||||
| (in millions, except share and per share data) |
|
|
|
||||||
Liabilities and Equity |
|
|
|
|
|||||
Liabilities |
|
|
|
|
|
||||
Reserves for future policy benefits and claims payable |
|
$ |
10,634 |
|
|
$ |
10,896 |
|
|
Other contract holder funds |
|
|
73,285 |
|
|
|
67,663 |
|
|
Market risk benefit liabilities, at fair value |
|
|
3,368 |
|
|
|
3,754 |
|
|
Funds withheld payable under reinsurance treaties (including |
|
|
14,090 |
|
|
|
14,960 |
|
|
Debt |
|
|
2,769 |
|
|
|
2,030 |
|
|
Repurchase agreements and securities lending payable |
|
|
477 |
|
|
|
1,036 |
|
|
Collateral payable for derivative instruments |
|
|
14 |
|
|
|
58 |
|
|
Freestanding derivative instruments |
|
|
657 |
|
|
|
257 |
|
|
Notes issued by consolidated variable interest entities, at fair value under fair value option |
|
|
2,474 |
|
|
|
2,578 |
|
|
Other liabilities |
|
|
3,436 |
|
|
|
2,516 |
|
|
Separate account liabilities |
|
|
245,387 |
|
|
|
236,496 |
|
|
Total liabilities |
|
|
356,591 |
|
|
|
342,244 |
|
|
|
|
|
|
|
|
||||
Equity |
|
|
|
|
|
||||
Series A non-cumulative preferred stock and additional paid in capital, |
|
|
533 |
|
|
|
533 |
|
|
Common stock; 1,000,000,000 shares authorized, |
|
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
|
6,401 |
|
|
|
6,063 |
|
|
Treasury stock, at cost; 26,303,029 and 27,662,683 shares at June 30, 2026 and December 31, 2025, respectively |
|
|
(1,897 |
) |
|
|
(1,645 |
) |
|
Accumulated other comprehensive income (loss), net of tax expense (benefit) of |
|
|
(2,625 |
) |
|
|
(2,470 |
) |
|
Retained earnings |
|
|
7,549 |
|
|
|
7,471 |
|
|
Total shareholders' equity |
|
|
9,962 |
|
|
|
9,953 |
|
|
Noncontrolling interests |
|
|
512 |
|
|
|
389 |
|
|
Total equity |
|
|
10,474 |
|
|
|
10,342 |
|
|
Total liabilities and equity |
|
|
367,065 |
|
|
|
352,586 |
|
|
Condensed Consolidated Income Statements
Three Months Ended June 30 |
|
Six Months Ended June 30, |
||||||||||||||
| (in millions, except per share data) |
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Revenues |
|
|
|
|
|
|
|
|
||||||||
Fee income |
|
$ |
1,968 |
|
|
$ |
1,942 |
|
|
$ |
3,966 |
|
|
$ |
3,928 |
|
Premiums |
|
|
38 |
|
|
|
40 |
|
|
|
66 |
|
|
|
80 |
|
Net investment income: |
|
|
|
|
|
|
|
|
||||||||
Net investment income excluding funds withheld assets |
|
|
727 |
|
|
|
491 |
|
|
|
1,268 |
|
|
|
1,019 |
|
Net investment income on funds withheld assets |
|
|
201 |
|
|
|
227 |
|
|
|
400 |
|
|
|
454 |
|
Total net investment income |
|
|
928 |
|
|
|
718 |
|
|
|
1,668 |
|
|
|
1,473 |
|
Net gains (losses) on derivatives and investments: |
|
|
|
|
|
|
|
|
||||||||
Net gains (losses) on derivatives and investments |
|
|
(2,487 |
) |
|
|
(2,860 |
) |
|
|
(2,204 |
) |
|
|
(1,517 |
) |
Net gains (losses) on funds withheld reinsurance treaties |
|
|
(297 |
) |
|
|
(327 |
) |
|
|
(456 |
) |
|
|
(715 |
) |
Total net gains (losses) on derivatives and investments |
|
|
(2,784 |
) |
|
|
(3,187 |
) |
|
|
(2,660 |
) |
|
|
(2,232 |
) |
Other income |
|
|
18 |
|
|
|
16 |
|
|
|
30 |
|
|
|
30 |
|
Total revenues |
|
|
168 |
|
|
|
(471 |
) |
|
|
3,070 |
|
|
|
3,279 |
|
|
|
|
|
|
|
|
||||||||||
Benefits and Expenses |
|
|
|
|
|
|
|
|
||||||||
Death, other policy benefits and change in policy reserves, net of deferrals |
|
|
221 |
|
|
|
256 |
|
|
|
479 |
|
|
|
500 |
|
(Gain) loss from updating future policy benefits cash flow assumptions, net |
|
|
20 |
|
|
|
12 |
|
|
|
38 |
|
|
|
24 |
|
Market risk benefits (gains) losses, net |
|
|
(2,053 |
) |
|
|
(2,203 |
) |
|
|
(383 |
) |
|
|
43 |
|
Interest credited on other contract holder funds, net of deferrals and amortization |
|
|
320 |
|
|
|
295 |
|
|
|
635 |
|
|
|
583 |
|
Interest expense |
|
|
27 |
|
|
|
25 |
|
|
|
52 |
|
|
|
50 |
|
Operating costs and other expenses, net of deferrals |
|
|
687 |
|
|
|
681 |
|
|
|
1,422 |
|
|
|
1,358 |
|
Amortization of deferred acquisition costs |
|
|
281 |
|
|
|
274 |
|
|
|
562 |
|
|
|
549 |
|
Total benefits and expenses |
|
|
(497 |
) |
|
|
(660 |
) |
|
|
2,805 |
|
|
|
3,107 |
|
Pretax income (loss) |
|
|
665 |
|
|
|
189 |
|
|
|
265 |
|
|
|
172 |
|
Income tax expense (benefit) |
|
|
5 |
|
|
|
4 |
|
|
|
25 |
|
|
|
5 |
|
Net income (loss) |
|
|
660 |
|
|
|
185 |
|
|
|
240 |
|
|
|
167 |
|
Less: Net income (loss) attributable to noncontrolling interests |
|
|
5 |
|
|
|
6 |
|
|
|
9 |
|
|
|
12 |
|
Net income (loss) attributable to Jackson Financial Inc. |
|
|
655 |
|
|
|
179 |
|
|
|
231 |
|
|
|
155 |
|
Less: Dividends on preferred stock |
|
|
11 |
|
|
|
11 |
|
|
|
22 |
|
|
|
22 |
|
Net income (loss) attributable to Jackson Financial Inc. common shareholders |
|
$ |
644 |
|
|
$ |
168 |
|
|
$ |
209 |
|
|
$ |
133 |
|
|
|
|
|
|
|
|||||||||||
Earnings per share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
9.18 |
|
|
$ |
2.34 |
|
|
$ |
2.99 |
|
|
$ |
1.83 |
|
Diluted |
|
$ |
9.16 |
|
|
$ |
2.34 |
|
|
$ |
2.98 |
|
|
$ |
1.83 |
|
1 |
Excludes certain internal exchanges |
2 |
For the reconciliation of non-GAAP measures to the most comparable |
3 |
See the appendix for a reconciliation related to notable items |
4 |
For the reconciliation of non-GAAP measures to the most comparable |
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/20260803467533/en/
Investor Relations Contacts:
Liz Werner
elizabeth.werner@jackson.com
Andrew
andrew.campbell@jackson.com
Media Contact:
Amanda Chaney
mediarelations@jackson.com
Source: Jackson Financial Inc.