Total Consolidated Revenue

Declined approximately 94% (from $4,124 million in Q4 2023 to $225 million in Q4 2024)

A dramatic contraction in consolidated revenue reflects a severe reversal in revenue components compared to the prior period. This extreme downward swing suggests that factors such as unfavorable derivative and reinsurance results—previously buoying revenues—turned negative, compounded by broader market volatility impacting key revenue streams. " "

Operating Income

Declined by roughly 7.8% (from $411 million in Q3 2024 to $380 million in Q4 2024)

Operating income edged lower as higher operating costs and market-induced pressures partially offset gains in other areas. Although more stable than revenue, the modest decline is attributable to cost pressures and lower investment returns relative to the previous quarter, indicating that the operating performance struggled to fully capitalize on previous period strengths. " "

Net Income

Reversed from a loss of $469 million in Q3 2024 to a gain of $334 million in Q4 2024

A strong rebound in net income was driven by a turnaround in market-dependent areas such as reinsured business and hedging results. Comparatively, while Q3 2024 recorded significant losses due to adverse market movements, Q4 2024 benefitted from better managing those exposures, leading to a net recovery in profitability. " "

Basic EPS

Improved from –$6.14 in Q3 2024 to $4.50 in Q4 2024

The EPS recovery reflects the net income rebound together with a reduced share count from repurchase activity. The combination of reversing losses and capital structure adjustments translated into a stark improvement in basic EPS compared to the previous period. " "

Depreciation & Amortization

Increased by approximately 94% (from $142 million in Q3 2024 to $276 million in Q4 2024)

The sharp rise in depreciation and amortization expenses likely reflects updated amortization schedules or revaluations of capitalized assets. Such an increase—almost doubling compared to the previous period—suggests that accounting adjustments or increased capital investments have significantly altered expense recognition. " "

Retail Annuities Revenue

Dropped from $1,344 million in Q3 2024 to –$2,031 million in Q4 2024

A striking reversal in the Retail Annuities segment indicates that revenue-driving factors from the prior period (e.g., strong fee income and investment performance) turned adverse. The negative revenue suggests that adjustments such as lower premiums or significant losses in derivative/margin components overtook previous gains. " " "

Fee Income

Surged dramatically from $12 million in Q3 2024 to $8,047 million in Q4 2024

An unprecedented jump in fee income denotes a dramatic change in underlying business metrics—likely from a substantial increase in average separate account values and robust growth in annuity assets. This surge over previous modest levels indicates a major shift in revenue recognition or asset performance relative to the prior period. " "

Free Capital Generation

FY 2025

no prior guidance

Expected to exceed $1 billion " "

no prior guidance

Capital Return to Shareholders

FY 2025

Capital Return Targets for 2025: Anticipates an increase if performance continues as expected; details to be shared "

Targeted total capital return between $700 million and $800 million " "

no prior guidance

RBC Ratio

FY 2025

no prior guidance

Maintain a minimum RBC ratio of 425% (current level at 572% as of end 2024) " "

no prior guidance

Holding Company Liquidity

FY 2025

no prior guidance

Plans to maintain more than $700 million in highly liquid assets " "

no prior guidance

Capital Position and Capital Generation

In Q2 and Q3, Jackson consistently described its strong capital position (e.g. cash and liquid asset levels above minimum buffers, RBC ratios in the mid-550%-570% range) and robust capital generation (after‐tax figures, free capital, and returns). " " " " "

Q4 continued to emphasize a very strong capital position with over $700 million in cash/liquid assets, an RBC ratio of 572%, and record free capital generation including dividends and share repurchases. " " "

Consistent and increasingly positive: Metrics remain strong with improved free cash flow and enhanced shareholder returns, reflecting a sustained positive sentiment.

Brooke Re

In Q2 and Q3, the discussion on Brooke Re centered on its role in enhancing capital stability, with mentions of stable capitalization well above regulatory minimums, reduced volatility, and improved hedging alignment. " " " " "

In Q4, Brooke Re was again noted for its solid capital stability along with emerging investor concerns regarding transparency, prompting plans for additional year‐end disclosures. " " "

Stable yet evolving: The core stability remains positive, while the added focus on transparency indicates a shift toward addressing investor concerns.

Actuarial Assumptions

Q3 discussed updated assumptions with a significant negative impact (a $514 million year‐to‐date hit from higher lapse/withdrawal rates) while noting the annual review process; Q2 did not feature detailed commentary on this topic. " "

Q4 provided further updates with a $419 million unfavorable impact due to refined assumptions on withdrawal frequency and mortality, reflecting ongoing challenges in accurately modeling policyholder behavior. " " "

Consistently challenging: Negative impacts persist while the company refines its models, indicating a steady but cautious sentiment about projection accuracy.

Hedging Strategies and Derivatives Exposure

Q2 and Q3 discussions focused on a hedging program that included significant exposure to interest rate and equity hedges, with mixed results (net hedge losses in Q2 and Q3 offset by gains in MRB and hedging efficiencies via the RILA business). " " "

Q4 reported a more economic hedging approach with a net gain in hedging results, alongside noted losses on hedging assets due to rising long‐term rates, but overall improved stability in managing market volatility. "

Improving performance: While hedging challenges persist due to market conditions, the Q4 results indicate an improved and more effective hedging strategy relative to earlier periods.

Product Diversification and Investment Expansion

In Q2 and Q3, Jackson highlighted robust growth in RILA sales, active spread business in fixed/fixed-index annuities, and steady progress in expanding investment capabilities, including digital initiatives and PPM portfolio quality improvements. " " " "

In Q4, product diversification was reinforced by record RILA sales, new product enhancements like the Plus Income living benefit, and continued expansion in advisory and spread business, further underscoring investment growth. " "

Continuously positive: The company’s focus on diversifying product lines and expanding investments remains strong with added innovation and record sales, reflecting a sustained positive outlook.

Policy Surrender and Lapse Rates

Q3 noted elevated lapse rates driven by strong equity performance and a year‐to‐date negative impact of $514 million on profitability, while Q2 mentioned some surrender activity offset by strong separate account performance. " " "

Q4 continued to report elevated surrender and lapse rates due to robust market conditions and older policies exiting surrender periods, impacting profitability with a $419 million adverse effect in the actuarial review. " " "

Persistently negative: Elevated policy surrenders remain a recurring concern with continued negative profitability impacts, suggesting ongoing challenges despite mitigation efforts.

Regulatory Constraints

Q2 and Q3 did not explicitly mention regulatory constraints affecting capital return initiatives; discussions focused more on capital strength and disciplined returns. " " "

Q4 introduced explicit discussions on regulatory constraints, including the need for regulatory discussions on distributions and maintaining minimum operating capital for Brooke Re, which now influences capital return strategies. " "

Emerging factor: Regulatory constraints are now being highlighted as a moderating influence on capital return initiatives, marking a new area of focus compared to previous periods.

Market Sensitivity to Equity Performance

In Q2 and Q3, equity market performance was acknowledged as a double-edged sword—it boosted variable annuity AUM and fee income but also increased lapse rates and basis risk, with effective hedging mitigating some impacts. " " " " "

Q4 continued to see market sensitivity with positive effects on capital generation and fee income but also contributed to elevated policy surrenders and adjustments in hedging, reflecting balanced risk management. " " "

Steadily managed: Market sensitivity remains a constant influence, with Jackson employing hedging and diversification to balance the benefits of rising equity markets against the risks of higher lapses and volatility.