Jackson Financial Inc. (JXN) Q4 2024 Earnings Summary

Executive Summary

Q4 2024 delivered strong non-GAAP performance: Adjusted Operating Earnings (AOE) were $349 million ($4.65 per diluted share), up 71% y/y on higher variable annuity AUM and spread income; GAAP net income was $334 million ($4.45 diluted EPS), with non-operating volatility largely offset by hedging .
Retail annuity sales rose 42% y/y to $4.7B, led by variable annuities at $2.8B (+27%), RILA at $1.5B (+47%), and fixed/fixed index at $397M (vs. $79M) .
Capital position strengthened: JNLIC statutory TAC increased to $5.1B and RBC to 572%; holding company liquidity exceeded $700M; Q4 capital returned to shareholders was $148M .
2025 guidance/capital actions: Dividend raised 14% to $0.80; capital return target increased to $700–$800M; management expects >$1B free capital generation under normal conditions .
Consensus estimates from S&P Global were unavailable at request time; we cannot quantify beats/misses vs. Street for Q4 2024.

What Went Well and What Went Wrong

What Went Well

Sales diversification and scale: Retail annuity sales reached $4.7B (+42% y/y) with every category growing; RILA $1.5B (+47%), VA $2.8B (+27%), fixed $397M (vs. $79M) .
Operating earnings momentum: Q4 AOE $349M ($4.65), up from $204M ($2.53) y/y; drivers included higher fee income from larger average VA AUM and improved spread income; reduced diluted share count aided EPS .
Capital strength and cash generation: Statutory TAC rose to $5.1B; RBC improved to 572%; holding company liquidity exceeded $700M; Q4 distribution of $280M to parent contributed to full-year distributions of $875M .
CEO tone: “2024 was a tremendous year… gives us confidence in our $700–800 million capital return target for 2025” .

What Went Wrong

Assumption review impacts: Annual actuarial updates reduced Q4 earnings by $23M after-tax (~$0.31 per share); non-operating impact was $419M tied to refined withdrawal frequency modeling for GMWB policies .
Variable annuity net outflows elevated amid strong markets and policy vintages exiting surrender periods; management noted 9% average VA account value increase and higher fee income as offsets .
Corporate & Other remained a drag: Q4 pretax adjusted operating loss of $(57)M (flat y/y), and full-year corporate loss widened to $(264)M on lower investment income and reinsurance-related adjustment .

Financial Results

Consolidated Results (GAAP and Non-GAAP)

Metric	Q2 2024	Q3 2024	Q4 2024
Total Revenues ($USD Billions)	$1.247	$2.121	$0.226
Net Income attributable to Common ($USD Millions)	$264	$(480)	$334
Diluted EPS (GAAP) ($)	$3.43	$(6.37)	$4.45
Adjusted Operating Earnings ($USD Millions)	$410	$350	$349
AOE per Diluted Share ($)	$5.32	$4.60	$4.65

Notes: GAAP revenue reflects fee income, premiums, net investment income and fair value marks; Q4’s low total revenues reflect significant net losses on derivatives/investments and funds withheld marks offset by MRB gains .

Segment Pretax Adjusted Operating Earnings ($USD Millions)

Segment	Q2 2024	Q3 2024	Q4 2024
Retail Annuities	$465	$458	$513
Institutional Products	$29	$17	$19
Closed Life & Annuity Blocks	$35	$7	$(70)
Corporate & Other	$(56)	$(71)	$(57)
Total	$473	$411	$405

KPIs and Sales Mix

KPI / Sales	Q2 2024	Q3 2024	Q4 2024
Retail Annuity Sales ($USD Billions)	$4.2	$5.3	$4.7
Variable Annuity Sales ($USD Billions)	$2.7	$2.6	$2.8
RILA Sales ($USD Billions)	$1.4	$1.6	$1.5
Fixed & Fixed Index Annuities ($USD Millions)	$85	$1,000	$397
Retail Annuity AUM ($USD Billions)	$247	$256	$252
RBC Ratio (JNLIC) (%)	550–570	550–570	572
Statutory TAC ($USD Billions)	$4.7	$4.8	$5.1
Holding Co Liquidity ($USD Millions)	>$500	~$650	>$700
Capital Returned to Common ($USD Millions)	$144	$167	$148

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Capital Return to Common	FY 2025	$550–$650M (FY24 target)	$700–$800M	Raised
Common Dividend per Share	Q1 2025	$0.70 (prior quarterly level implied)	$0.80	Raised 14%
Free Capital Generation	FY 2025	n/a	>$1B under normal conditions	New explicit expectation
RBC Ratio Target (JNLIC)	Ongoing	≥425%	≥425% (commitment reiterated)	Maintained
Holdco Liquidity Buffer	Ongoing	≥$250M	≥$250M (commitment reiterated)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Hedging stability & non-operating volatility	Shift to more economic hedging; non-op results improving	Non-op loss on reinsured business; MRB sensitivity to rates	Net hedge gain $79M; better alignment of hedge assets & MRBs; reinsured business gain $347M	Improving stability
Sales diversification (RILA/Fixed vs. VA)	Record RILA $1.4B; diversified mix	Record RILA $1.6B; fixed $1.0B	RILA $1.5B; fixed $397M; VA without lifetime benefits +46% y/y	Sustained diversity
Capital generation & distributions	TAC $4.7B; RBC 550–570%; $250M distribution	TAC $4.8B; RBC 550–570%; $300M distribution	TAC $5.1B; RBC 572%; $280M distribution; >$1B free capital generation expected FY25	Strengthening
Brooke Re disclosure & capital	Structure described earlier (modified GAAP approach)	Limited change; captive established	Brooke Re capital +~$200M in 2024; guardrails via minimum operating capital; disclosure cadence addressed in Q&A	Stable, incremental detail
VA outflows & lapses	Noted market sensitivity; fee income resilience	Elevated VA outflows amid strong markets	Elevated outflows; surrender assumptions unchanged; at-/in-the-money lapse assumption ~8–9%	Persisting with clarity
Distribution partnerships & product	RILA record; continued innovation	Strong RILA; sales mix	RILA NY launch; JPMorgan partnership; GMAB added to Elite Access	Expanding channels

Management Commentary

CEO: “2024 was a pivotal year… distributions to our holding company of $875 million, the highest annual level… RBC… 572%… free cash flow of $767 million and $631 million of capital return… increased our total capital return target to $700 million to $800 million” .
CFO: “Adjusted operating earnings of $349 million were up 71%… EPS $4.65; adjusting for notable items and tax rate, $4.84… assumption review unfavorable $0.31; guarantee fees $0.8B in Q4 and $3.1B for the year… net hedge result gain $79M” .
CFO on Brooke Re: “Capital for the full year increased by about $200 million… minimum operating capital maintained well above threshold” .
CEO on distribution: “Introduced a RILA product in New York, partnered with JPMorgan Chase… added a GMAB to Elite Access” .

Q&A Highlights

Brooke Re transparency and capital: Management reiterated modified GAAP framework, long-term stability focus, and minimum operating capital guardrails; will disclose if capital is added/removed and provide annual updates; Brooke Re capital up ~$200M in 2024 .
Assumption review: Refinement targeted withdrawal frequency granularity (not utilization directly); operating impact ~$26M unfavorable (mortality), non-operating impact $419M; surrender assumptions unchanged; at-/in-the-money lapse ~8–9% .
Capital return pacing: Excess capital exists at both opco and holdco; RBC buffer to decline gradually rather than via one transaction; 66–80% of capital generation distributed in 2024 depending on CAMT normalization .
PPM strategy: Core to general account and third-party business; recent EM debt team hire expands capabilities; potential to grow within Jackson strategy over time .

Estimates Context

S&P Global consensus estimates (EPS, Revenue, EBITDA, Target Price) were unavailable at request time due to API limits. As a result, we cannot quantify beats/misses vs. Street for Q4 2024. If needed, we can refresh and compare once access is restored.

Key Takeaways for Investors

Non-GAAP operating momentum continues: Q4 AOE per share of $4.65 sustained despite actuarial headwinds; fee income and spread earnings underpin trajectory .
Sales engine broadening: RILA and fixed products complement VA, reducing reliance on living-benefit VA while supporting hedging efficiency; JPMorgan channel adds scale .
Capital strength and disciplined returns: RBC at 572% with rising TAC and >$700M holdco liquidity supports 2025 capital return raised to $700–$800M and dividend lift to $0.80 .
Hedging program enhancing stability: Net hedge gains and better MRB alignment are reducing non-operating volatility; guarantee fee stream remains robust .
Watch VA outflow dynamics: Elevated outflows likely persist in strong markets and as vintages roll; management holds surrender assumptions steady and highlights AUM/fee resilience .
Brooke Re remains self-sustaining with guardrails: Capital grew ~$200M in 2024; disclosures to remain periodic, with thresholds above minimum operating capital .
Near-term trading lens: Positive catalysts include dividend increase, increased capital return target, and strong sales mix; risks include actuarial review impacts and market-driven non-op swings (interest rate sensitivity) .