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Hedging-driven loss but surging annuity sales at Jackson (NYSE: JXN)

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Rhea-AI Filing Summary

Jackson Financial Inc. reported a sizable net loss but solid underlying operating performance for the first quarter of 2026. Net loss attributable to common shareholders was $435 million, or $(6.24) per diluted share, largely driven by less favorable hedging and market risk benefit results.

Adjusted operating earnings were $361 million, or $5.15 per diluted share, compared with $376 million, or $5.10, a year earlier, as higher spread income and a lower share count were offset by higher expenses. Retail annuity sales reached $5.3 billion, up 31% year over year, with particularly strong growth in registered index-linked annuities and fixed and fixed index annuities.

Free cash flow was $288 million, and the company returned $257 million to common shareholders through buybacks and dividends. Statutory total adjusted capital at Jackson National Life Insurance Company was $5.5 billion with an estimated RBC ratio of 554%, and holding-company cash and highly liquid securities were nearly $650 million.

Positive

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Insights

Strong sales and cash generation offset by hedging-driven net loss.

Jackson Financial Inc. posted a GAAP net loss of $435 million, mainly from hedging and market risk benefit volatility, while core adjusted operating earnings held at $361 million. This highlights the accounting sensitivity of its variable and indexed annuity book versus steadier underlying economics.

Retail annuity sales of $5.3 billion rose 31%, with registered index-linked annuities up 68% and fixed and fixed index annuities up 335%. These mix shifts support spread income and align with demand for more structured and fixed products, though they also rely on continued distribution strength and investment performance.

Capital and liquidity metrics appear robust, with statutory total adjusted capital of $5.5 billion, an estimated RBC ratio of 554%, and nearly $650 million of holding-company liquidity as of March 31, 2026. The company returned $257 million to common shareholders while generating free cash flow of $288 million; future filings will show whether this level of capital return is sustainable alongside growth and risk management needs.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net loss attributable to common shareholders $435 million Q1 2026 GAAP, $(6.24) per diluted share
Adjusted operating earnings $361 million Q1 2026, $5.15 per diluted share
Retail annuity sales $5.3 billion Q1 2026, up 31% vs Q1 2025
Free cash flow $288 million Holding company, Q1 2026
Capital returned to common shareholders $257 million Q1 2026 buybacks and dividends
Total adjusted capital (JNL) $5.5 billion Statutory TAC as of March 31, 2026
Estimated RBC ratio (JNL) 554% As of March 31, 2026
Cash and highly liquid securities Nearly $650 million Holding company as of March 31, 2026
adjusted operating earnings financial
"Adjusted operating earnings for the three months ended March 31, 2026, were $361 million"
Adjusted operating earnings are a company’s profit from its regular business activities after removing one-time, unusual or non-core items (like restructuring charges, asset sales, or litigation costs) so you see the underlying performance. Investors use this figure like a trimmed-down view of earnings—similar to judging a car’s fuel efficiency without counting one-off repair bills—to compare companies and assess whether operating results are sustainable.
registered index-linked annuity (RILA) financial
"Registered index-linked annuity (RILA) sales of $2.0 billion were up 68%"
A registered index-linked annuity (RILA) is a retirement contract that pays a stream of income whose growth is tied to the performance of a market index but includes built-in features that limit losses or gains. Think of it like a savings plan that shares in some market upside while offering a floor, cap, or buffer against declines—useful for investors who want potential growth with more downside protection than owning stocks outright, but who must accept limits on returns, fees, and long-term commitments.
risk-based capital (RBC) ratio financial
"an estimated risk-based capital (RBC) ratio at Jackson National Life Insurance Company (JNL) of 554%"
A risk-based capital (RBC) ratio measures an insurer’s available capital against the minimum capital regulators require after accounting for the types and amounts of risks the company faces; it is expressed as a percentage. Investors use it like a “safety cushion” gauge: a higher ratio means the company is better positioned to absorb unexpected losses and less likely to face regulatory restrictions, while a low ratio can signal heightened solvency risk and potential impact on returns.
total adjusted capital financial
"total adjusted capital of $5.5 billion as of March 31, 2026"
Total adjusted capital is a firm's available financial cushion after adding core capital and allowable instruments then subtracting items regulators treat as less reliable, such as certain reserves or intangible assets. Investors use it to judge how much loss a company — especially a bank or insurer — can absorb before solvency is threatened; think of it as the usable safety margin after taking off things that don’t count as solid savings.
market risk benefits financial
"Market risk benefits (gains) losses, net | 1,670 | | 2,246"
Market risk benefits are the extra returns or advantages investors expect or receive for taking on broad, system‑wide swings in the overall market — essentially the premium for bearing risk that cannot be eliminated by diversification. This matters because it helps investors weigh whether the potential higher gains justify larger price swings, guides how portfolios are balanced, and sets expectations for compensation when choosing riskier market exposures; think of it as the extra pay you demand for riding a roller‑coaster instead of a calm bus ride.
free cash flow financial
"Free cash flow of $288 million in the first quarter of 2026"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Retail annuity sales $5.3 billion +31% vs Q1 2025
Net income (loss) attributable to common shareholders $(435) million vs $(35) million in Q1 2025
Adjusted operating earnings $361 million vs $376 million in Q1 2025
Adjusted operating EPS $5.15 vs $5.10 in Q1 2025
Adjusted operating EPS excluding notable items and taxes $5.94 vs $5.05 in Q1 2025
Free cash flow $288 million vs $213 million in Q1 2025
Understanding 8-K Material Events →
FALSE000182299300018229932026-05-052026-05-050001822993us-gaap:CommonStockMember2026-05-052026-05-050001822993jxn:DepositarySharesMember2026-05-052026-05-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 5, 2026

Jackson Financial Inc.
(Exact name of registrant as specified in its charter)

Delaware001-4027498-0486152
(State or other jurisdiction of incorporation or organization)(Commission File Number)(I.R.S. Employer Identification No.)
1 Corporate Way, Lansing, Michigan
48951
(Address of principal executive offices)(Zip Code)
(517) 381-5500
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Exchange on Which Registered
Common Stock, Par Value $0.01 Per Share
JXNNew York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series AJXN PRANew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 2.02    Results of Operations and Financial Condition.

On May 5, 2026, Jackson Financial Inc. (the “Company”) issued a press release announcing its financial results for its first quarter ended March 31, 2026. A copy is furnished as Exhibit 99.1 to this report.

The information in this Item (including Exhibit 99.1) shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such a filing.

SAFE HARBOR

The information in this report (including Exhibit 99.1) contains forward-looking statements about future events and circumstances and their effects upon revenues, expenses and business opportunities. Generally speaking, any statement in this report (including Exhibit 99.1) 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 U.S. Securities and Exchange Commission (“SEC”) on February 24, 2026, and elsewhere in the Company’s reports filed with the SEC. Except as required by law, Jackson Financial Inc. does not undertake to update such forward-looking statements. You should not rely unduly on forward-looking statements.

Certain financial data included in this report (including Exhibit 99.1) 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 U.S. GAAP. Although the Company believes these non-GAAP financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-GAAP financial measures and ratios included in this report (including Exhibit 99.1). A reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure can be found in the “Non-GAAP Financial Measures” Appendix of Exhibit 99.1.

Certain financial data included in this report 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 available in the investor relations section of the Company’s website at investors.jackson.com/financials/statutory-filings.

We routinely use our investor relations website, at investors.jackson.com, 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 report (including Exhibit 99.1).

Item 9.01.        Financial Statements and Exhibits.
(d) Exhibits.



Exhibit No.Description
99.1
Press Release announcing financial results for the first quarter 2026
104Cover Page Interactive Data File (the coverage page XBRL tags are embedded within the Inline XBRL Document)




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

JACKSON FINANCIAL INC.
By:/s/ Don W. Cummings
Don W. Cummings
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
Date: May 5, 2026



Exhibit 99.1
jacksonlogo.jpg
FOR IMMEDIATE RELEASE

Jackson Announces Strong First Quarter 2026 Results

LANSING, Mich. — May 5, 2026 — Jackson Financial Inc. (NYSE: JXN) (Jackson®) today announced its financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Key Highlights

▪Retail annuity sales1 of $5.3 billion in the first quarter of 2026, up 31% from the first quarter of 2025, reflecting continued strong demand across our product suite
–Variable annuity sales1 of $2.5 billion were down 6% from the first quarter of 2025, primarily reflecting lower sales of products with lifetime benefits
–Registered index-linked annuity (RILA) sales of $2.0 billion were up 68% from the first quarter of 2025
–Fixed and fixed index annuity (FIA) sales of $756 million were up 335% from the first quarter of 2025, driven by Jackson Income Assurance℠, our recently launched FIA
▪Robust sales for spread products are supported by capabilities added at PPM America, Inc. (PPM), our asset management subsidiary, to source higher yielding assets. These sales, combined with a focus on growing third-party business, contributed to an 18% increase in PPM assets under management (AUM) from the first quarter of 2025.
▪Net (loss) attributable to Jackson Financial Inc. common shareholders of $(435) million, or $(6.24) per diluted share in the first quarter of 2026, compared to $(35) million, or $(0.48) per diluted share in the first quarter of 2025
▪Adjusted operating earnings2 of $361 million, or $5.15 per diluted share in the first quarter of 2026, compared to $376 million, or $5.10 per diluted share in the first quarter of 2025, primarily reflecting higher spread income from growth in average RILA, FIA, and Institutional AUM and a reduced share count due to repurchases, partially offset by higher general and administrative (G&A) expenses
▪Adjusted operating earnings per diluted share excluding notable items3 of $5.94 in the first quarter of 2026, up from $5.05 in the first quarter of 2025
▪Robust capital position at the operating company, with total adjusted capital of $5.5 billion as of March 31, 2026, and an estimated risk-based capital (RBC) ratio at Jackson National Life Insurance Company (JNL) of 554%
▪Jackson (parent company only) net cash provided by (used in) operating activities of $19 million in the first quarter of 2026, down from $29 million in the first quarter of 2025
▪Free cash flow2 of $288 million in the first quarter of 2026 reflecting distributions from our operating company of $325 million, which were up 35% from the first quarter of 2025
▪Returned $257 million to common shareholders in the first quarter of 2026, up 11% from the first quarter of 2025, through $192 million of common share repurchases and $65 million in common dividends
▪Cash and highly liquid securities at the holding company of nearly $650 million as of March 31, 2026, which was above Jackson’s targeted $250 million minimum liquidity buffer


1 Excludes certain internal exchanges
2 For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release.
3 See the appendix for a reconciliation and definitions related to notable items


Laura Prieskorn, President and Chief Executive Officer of Jackson, stated, “Our first quarter results underscore
the continued strength of our business and steady progress toward achieving our strategic objectives. We delivered 31% growth in retail annuity sales compared to the same period last year with a more diversified business mix, demonstrating both our distribution reach and the momentum in our spread business, including the successful start of our partnership with TPG. Our robust in-force book of business delivered free cash flow of $288 million, which was substantially higher than the first quarter of 2025. Additionally, we’ve made strong progress toward our financial targets, with significant free capital generation in the first quarter, $257 million of capital return to common shareholders, and healthy levels of excess cash at the holding company. We expect to build on this momentum throughout 2026 and remain committed to helping Americans achieve financial security.”

Consolidated First Quarter 2026 Results

The Company reported a net (loss) attributable to Jackson Financial Inc. common shareholders of $(435) million, or $(6.24) per diluted share for the three months ended March 31, 2026, compared to $(35) million, or $(0.48) per diluted share for the three months ended March 31, 2025. The first quarter net loss included a less favorable net hedging result versus the prior year’s first quarter, driven in part by higher volatility in the current quarter. The first quarter of 2026 also included a $40 million gain from business reinsured to third parties, while the prior year’s first quarter reported a loss of $161 million. The results of reinsured business can differ significantly from quarter to quarter; however, these results do not impact our statutory capital or free cash flow and have a minimal net impact on shareholders’ equity because of the offset from related changes in accumulated other comprehensive income (AOCI). We believe the non-GAAP measure of adjusted operating earnings better represents the underlying performance of our business as adjusted operating earnings exclude, among other things, changes in the fair value of derivative instruments and market risk benefits tied to market movements.

Adjusted operating earnings for the three months ended March 31, 2026, were $361 million, or $5.15 per diluted share, compared to $376 million or $5.10 per diluted share for the three months ended March 31, 2025. The current quarter per share amount reflected higher spread income from growth in average RILA, FIA, and Institutional AUM and a reduced share count due to repurchases, partially offset by higher G&A expenses.

Total common shareholders’ equity was $9.0 billion or $125.61 per diluted share as of March 31, 2026, compared to $9.4 billion or $138.17 per diluted share as of December 31, 2025. Adjusted book value attributed to common shareholders4 was $10.4 billion or $145.35 per diluted share as of March 31, 2026, compared to $10.6 billion or $155.78 per diluted share as of December 31, 2025. The per share decrease was driven by non-operating net hedging results, capital return during the quarter, and a higher diluted share count resulting from the common equity issuance during the first quarter related to the initiation of the strategic partnership with TPG Inc. (TPG). These drivers were partially offset by adjusted operating earnings of $0.4 billion during the quarter. Return on equity attributable to common shareholders for the three months ended March 31, 2026 and March 31, 2025 were (18.9)% and (1.5)%, respectively. Adjusted operating return on equity attributable to common shareholders4 for the three months ended March 31, 2026, was 13.8%, up from 13.6% in the first quarter of 2025.











4 For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release.


Segment Results – Pretax Adjusted Operating Earnings5

Three Months Ended
(in millions)March 31, 2026March 31, 2025
Retail Annuities$468$420
Institutional Products2818
Closed Life and Annuity Blocks(29)28
Corporate and Other(37)(24)
Total5$430$442

Retail Annuities

Retail Annuities reported pretax adjusted operating earnings of $468 million in the first quarter of 2026, compared to $420 million in the first quarter of 2025. The current quarter results primarily reflect higher spread income resulting from growth in average RILA and FIA AUM, partially offset by higher G&A expenses.

Total retail annuity sales6 of $5.3 billion in the first quarter of 2026 were up from $4.0 billion in the first quarter of 2025. Traditional variable annuity sales6 of $2.5 billion in the first quarter were down from $2.7 billion in the first quarter of 2025, reflecting lower sales of products with lifetime benefits. RILA sales of $2.0 billion in the first quarter were up from $1.2 billion in the first quarter of 2025. Fixed and fixed index annuity sales in the first quarter of $756 million were up from $174 million in the first quarter of 2025.

Institutional Products

Institutional Products reported pretax adjusted operating earnings of $28 million in the first quarter of 2026, compared to $18 million in the first quarter of 2025, driven by higher spread income resulting from higher AUM. Net flows were $(622) million in the first quarter, and total account value of $11.1 billion was up from $9.3 billion in the first quarter of 2025.

Closed Life and Annuity Blocks

Closed Life and Annuity Blocks reported pretax adjusted operating income (loss) of $(29) million in the first quarter of 2026, compared to $28 million in the first quarter of 2025, primarily reflecting lower limited partnership income and higher death claim benefits due to the implementation of enhanced processes and data sources for identifying deceased policyholders.

Corporate and Other

Corporate and Other reported a pretax adjusted operating (loss) of $(37) million in the first quarter of 2026, compared to $(24) million in the first quarter of 2025, primarily due to higher G&A expenses.

Corporate and Other also includes the results of PPM, which has experienced 18% growth in AUM from the first quarter of 2025. AUM as of March 31, 2026 was $95.0 billion, up from $80.2 billion as of March 31, 2025, driven by growth in both Jackson’s general account due to sales of RILA, fixed, FIA and Institutional products, and third-party AUM.


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


Capitalization and Liquidity

(Unaudited, in billions)March 31, 2026December 31, 2025
Statutory Total Adjusted Capital (TAC) Jackson National Life Insurance Company$5.5$5.5
Statutory TAC at JNL was $5.5 billion as of March 31, 2026, unchanged from December 31, 2025. TAC was supported by strong earnings on in-force business, offset by a $325 million distribution to JNL’s parent during the first quarter of 2026 and the related reduction in deferred tax asset admissibility. JNL’s estimated RBC ratio was 554% as of March 31, 2026, down from the fourth quarter of 2025 due to an increase in estimated company action level required capital. Holding company free cash flow totaled $288 million in the first quarter of 2026 reflecting the $325 million distribution from the operating company.

Cash and highly liquid securities at the holding company totaled nearly $650 million as of March 31, 2026, which was above our targeted minimum liquidity buffer of $250 million.

Earnings Conference Call

Jackson will host a conference call on Wednesday, May 6, 2026, at 9 a.m. ET to review the first 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 U.S. Securities and Exchange Commission (the SEC) on February 24, 2026, and elsewhere in the Company’s reports filed with the SEC. Except as required by law, Jackson Financial Inc. does not undertake to update such forward-looking statements. You should not rely unduly on forward-looking statements.

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 U.S. GAAP. Although the Company believes these non-GAAP financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-GAAP financial measures and ratios included in this release. A reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure can be found in the “Non-GAAP Financial Measures” Appendix of this release.

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 80% or higher of customers getting their contact resolved on the first call to the call center (FCR) for three consecutive months or more.)

Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York).

WEBSITE INFORMATION
Visit investors.jackson.com to view information regarding Jackson Financial Inc., including a supplement regarding the first 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.


Investor Relations Contacts:
Liz Werner
elizabeth.werner@jackson.com

Andrew Campbell
andrew.campbell@jackson.com

Media Contact:
Chad Crunk
mediarelations@jackson.com

APPENDIX

Non-GAAP Financial Measures

In addition to presenting our results of operations and financial condition in accordance with U.S. GAAP, we use and report selected non-GAAP financial measures. Management believes the use of these non-GAAP financial measures, together with relevant U.S. GAAP financial measures, provides a better understanding of our results of operations, financial condition and the underlying performance drivers of our business. These non-GAAP financial measures should be considered supplementary to our results of operations and financial condition that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP financial measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies.

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 U.S. GAAP or that are non-recurring in nature, as well as certain other revenues and expenses that we do not view as driving our underlying performance. Adjusted Operating Earnings should not be used as a substitute for net income as calculated in accordance with U.S. GAAP. However, we believe the adjustments to net income are useful for gaining an understanding of our overall results of operations.

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 U.S. GAAP. However, we believe these adjustments are useful to gaining an understanding of our overall available cash flow at JFI for return of capital to common shareholders and other corporate initiatives.

For additional detail on the non-GAAP financial measures, please refer to the supplement relating to the first quarter ended March 31, 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 U.S. GAAP measure.

U.S. GAAP Net Income (Loss) to Adjusted Operating Earnings

Three Months Ended
(in millions, except share and per share data)March 31, 2026March 31, 2025
Net income (loss) attributable to Jackson Financial Inc. common shareholders$(435)$(35)
Add: dividends on preferred stock11 11 
Add: income tax expense (benefit)20 1 
Pretax income (loss) attributable to Jackson Financial Inc.(404)(23)
Non-operating adjustments – (income) loss:
     Guaranteed benefits and hedging results:
        Fees attributable to guarantee benefit reserves
(771)(768)
        Net (gains) losses on hedging instruments
460 (1,011)
        Market risk benefits (gains) losses, net
1,670 2,246 
        Net reserve and embedded derivative movements
(707)(333)
      Total net hedging results652 134 
        Amortization of DAC associated with non-operating items at date of transition to LDTI1
121 128 
Actuarial assumption updates and model enhancements— — 
      Net realized investment (gains) losses
42 66 
Net realized investment (gains) losses on funds withheld assets
159 388 
Net investment income on funds withheld assets
(199)(227)
      Other items
59 (24)
         Total non-operating adjustments
834 465 
Pretax adjusted operating earnings430 442 
Less: operating income tax expense (benefit)58 55 
Adjusted operating earnings before dividends on preferred stock372 387 
Less: dividends on preferred stock11 11 
Adjusted operating earnings$361 $376 
Weighted Average diluted shares outstanding70,061,288 73,717,082 
Net income (loss) per diluted share$(6.24)$(0.48)
Adjusted Operating Earnings per diluted share$5.15 $5.10 
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)March 31, 2026March 31, 2025
Adjusted operating earnings$361 $376 
Add: (Out performance)/under performance from limited partnership income34 8 
Add: Enhanced processes and data sources from identifying deceased policyholders29 — 
Add: Impact from effective tax rate versus a 15% tax rate guidance(8)(12)
Adjusted Operating Earnings exclude notable items and taxes$416 $372 
Adjusted Operating Earnings per common share (diluted), excluding notable items and taxes$5.94 $5.05 


The following is a reconciliation of Jackson Financial net cash provided by (used in) operating activities (Parent Company only), the most comparable U.S. GAAP measure, to Free Cash Flow:

Three Months Ended
(in millions)March 31, 2026March 31, 2025
Jackson Financial, Inc. (Parent Company Only) Net cash provided by (used in) operating activities$19 $29 
Adjustments from net cash provided by operating activities to free cash flow:
Issuance of treasury stock to TPG500 — 
Capital distributions from subsidiaries280 195 
Capital contributed to subsidiaries(500)— 
Dividends on preferred stock(11)(11)
Total adjustments269 184 
Free cash flow$288 $213 
Free Cash Flow Comprised of:
Issuance of treasury stock to TPG500 — 
Capital distributions from subsidiaries280 195 
Interest on surplus notes from subsidiary45 45 
Cash distributed to JFI825 240 
Capital contributed to Hickory Re(500)— 
Parent company expenses(29)(28)
Net investment income and other income7 8 
Other, net(15)(7)
JFI expenses and other, net(37)(27)
Free cash flow$288 $213 





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)March 31, 2026December 31, 2025
Total shareholders’ equity$9,496 $9,953 
Less: Preferred equity533 533 
Total common shareholders’ equity8,963 9,420 
Adjustments to total common shareholders’ equity:
Exclude Accumulated Other Comprehensive (Income) Loss attributable to Jackson Financial Inc.1,409 1,201 
Adjusted Book Value Attributable to Common Shareholders$10,372 $10,621 




Condensed Consolidated Balance Sheets
March 31,December 31,
20262025
(in millions, except share and per share data)
Assets
Investments:
Debt Securities, available-for-sale, net of allowance for credit losses of $17 and $11 at March 31, 2026 and December 31, 2025, respectively (amortized cost: 2026 $52,356; 2025 $50,491)$48,597 $47,321 
Debt Securities, at fair value under fair value option3,351 3,470 
Equity securities, at fair value243 172 
Mortgage loans, net of allowance for credit losses of $159 and $133 at March 31, 2026 and December 31, 2025, respectively10,248 9,887 
Mortgage loans, at fair value under fair value option
196 324 
Policy loans (including $3,556 and $3,537 at fair value under the fair value option at March 31, 2026 and December 31, 2025, respectively)4,431 4,426 
Freestanding derivative instruments701 448 
Other invested assets3,246 3,185 
Total investments71,013 69,233 
Cash and cash equivalents5,539 5,704 
Accrued investment income636 634 
Deferred acquisition costs11,634 11,660 
Reinsurance recoverable, net of allowance for credit losses of $30 and $30 at March 31, 2026 and December 31, 2025, respectively18,926 19,518 
Reinsurance recoverable on market risk benefits, at fair value121 118 
Market risk benefit assets, at fair value6,701 7,867 
Deferred income taxes, net610 719 
Other assets905 637 
Separate account assets223,452 236,496 
Total assets$339,537 $352,586 



Condensed Consolidated Balance Sheets
March 31,December 31,
20262025
(in millions, except share and per share data)
Liabilities and Equity
Liabilities
Reserves for future policy benefits and claims payable$10,706 $10,896 
Other contract holder funds68,703 67,663 
Market risk benefit liabilities, at fair value3,971 3,754 
Funds withheld payable under reinsurance treaties (including $3,744 and $3,723 at fair value under the fair value option at March 31, 2026 and December 31, 2025, respectively) 14,511 14,960 
Long-term debt2,027 2,030 
Repurchase agreements and securities lending payable505 1,036 
Collateral payable for derivative instruments343 58 
Freestanding derivative instruments238 257 
Notes issued by consolidated variable interest entities, at fair value under fair value option2,543 2,578 
Other liabilities2,638 2,516 
Separate account liabilities223,452 236,496 
Total liabilities329,637 342,244 
Equity
Series A non-cumulative preferred stock and additional paid in capital, $1.00 par value per share: 24,000 shares authorized; 22,000 shares issued and outstanding at March 31, 2026 and December 31, 2025; liquidation preference $25,000 per share
533 533 
Common stock; 1,000,000,000 shares authorized, $0.01 par value per share and 70,270,752 and 66,825,632 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively
1 1 
Additional paid-in capital6,393 6,063 
Treasury stock, at cost; 24,217,563 and 27,662,683 shares at March 31, 2026 and December 31, 2025, respectively(1,671)(1,645)
Accumulated other comprehensive income (loss), net of tax expense (benefit) of $(287) and $(377) at March 31, 2026 and December 31, 2025, respectively(2,728)(2,470)
Retained earnings6,968 7,471 
Total shareholders' equity9,496 9,953 
Noncontrolling interests404 389 
Total equity9,900 10,342 
Total liabilities and equity339,537 352,586 



Condensed Consolidated Income Statements
Three Months Ended March 31,
(in millions, except per share data)20262025
Revenues
Fee income$1,998 $1,986 
Premiums28 40 
Net investment income:
Net investment income excluding funds withheld assets541 528 
Net investment income on funds withheld assets199 227 
Total net investment income740 755 
Net gains (losses) on derivatives and investments:
Net gains (losses) on derivatives and investments283 1,343 
Net gains (losses) on funds withheld reinsurance treaties(159)(388)
Total net gains (losses) on derivatives and investments124 955 
Other income12 14 
Total revenues2,902 3,750 
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals258 244 
(Gain) loss from updating future policy benefits cash flow assumptions, net18 12 
Market risk benefits (gains) losses, net1,670 2,246 
Interest credited on other contract holder funds, net of deferrals and amortization315 288 
Interest expense25 25 
Operating costs and other expenses, net of deferrals735 677 
Amortization of deferred acquisition costs281 275 
Total benefits and expenses3,302 3,767 
Pretax income (loss)(400)(17)
Income tax expense (benefit) 20 1 
Net income (loss)(420)(18)
Less: Net income (loss) attributable to noncontrolling interests4 6 
Net income (loss) attributable to Jackson Financial Inc.(424)(24)
Less: Dividends on preferred stock11 11 
Net income (loss) attributable to Jackson Financial Inc. common shareholders$(435)$(35)
Earnings per share
Basic$(6.24)$(0.48)
Diluted 1
$(6.24)$(0.48)
(1) If we reported a net loss attributable to Jackson Financial Inc., all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts. The shares excluded from the diluted EPS calculation were 317,447 and 247,765 shares for the three months ended March 31, 2026 and 2025.


Source: View Original Filing on SEC EDGAR

FAQ

How did Jackson Financial Inc. (JXN) perform financially in Q1 2026?

Jackson Financial Inc. reported a net loss of $435 million, or $(6.24) per diluted share, in Q1 2026. However, adjusted operating earnings were $361 million, or $5.15 per diluted share, reflecting stable underlying operations despite hedging-related volatility.

What were Jackson Financial Inc. (JXN) retail annuity sales in Q1 2026?

Retail annuity sales reached $5.3 billion in Q1 2026, up 31% from Q1 2025. This included $2.5 billion of variable annuities, $2.0 billion of registered index-linked annuities, and $756 million of fixed and fixed index annuities, showing strong, diversified growth.

How strong is Jackson Financial Inc. (JXN) capital position and RBC ratio?

Jackson National Life Insurance Company reported total adjusted capital of $5.5 billion as of March 31, 2026. Its estimated risk-based capital (RBC) ratio was 554%, indicating a substantial capital cushion relative to regulatory requirements and supporting ongoing business and capital return activities.

What level of cash flow and shareholder returns did JXN generate in Q1 2026?

Holding-company free cash flow was $288 million in Q1 2026, driven by $325 million of distributions from the operating company. Jackson returned $257 million to common shareholders through $192 million of share repurchases and $65 million in dividends during the quarter.

Why did Jackson Financial Inc. (JXN) report a large GAAP net loss in Q1 2026?

The $435 million GAAP net loss mainly reflected a less favorable net hedging result and market risk benefit losses versus Q1 2025. Management emphasizes that these non-operating items are volatile and that adjusted operating earnings better represent underlying business performance.

What were Jackson Financial Inc. (JXN) adjusted operating earnings per share in Q1 2026?

Adjusted operating earnings were $5.15 per diluted share in Q1 2026, versus $5.10 in Q1 2025. Excluding notable items and tax effects, adjusted operating earnings per diluted share were $5.94, compared with $5.05 a year earlier, highlighting stronger core profitability.

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