Jackson Financial Inc. (NYSE: JXN) (Jackson®) today announced
financial results for the fourth quarter and full year ended
December 31, 2022.
Fourth Quarter
Highlights
- Net income (loss) attributable to Jackson Financial Inc. of
$(710) million, or $(8.48) per diluted share, including the impact
of non-economic hedging results under GAAP accounting
- Adjusted operating earnings1 of $491 million, or $5.66 per
diluted share, down 31% from the fourth quarter of 2021
- Returned $86 million to shareholders in the fourth quarter of
2022 through $38 million of share repurchases and $48 million in
dividends
- Fourth quarter registered index-linked annuity (RILA) sales of
$560 million, up from $108 million in the fourth quarter of
2021
- Total annuity account value of $209 billion decreased 19% from
the fourth quarter of 2021, driven largely by lower equity markets
in 2022
Full Year 2022
Highlights
- Net income attributable to Jackson Financial Inc. of $5,697
million, or $64.23 per diluted share, including the impact of
non-economic hedging results under GAAP accounting
- Adjusted operating earnings of $1,443 million, or $16.27 per
diluted share
- Successful first full-year for RILA with sales of $1.8
billion
- Full year capital return of $482 million was above the midpoint
of the 2022 capital return target range of $425-$525 million
- Strong capital position at the operating company level, with a
Risk Based Capital (RBC) ratio at Jackson National Life Insurance
Company of 544% as of year-end 2022
- Cash and highly liquid securities at the holding company of
approximately $675 million at the end of the year, which was
significantly above Jackson’s targeted minimum liquidity
buffer
- Financial leverage ratio1 of 18.3%, below the targeted
long-term range of 20-25%
2023 Announcements
- Increasing first quarter 2023 dividend by nearly 13% to $0.62
per share
- Announcing a $450 million increase to the existing share
repurchase authorization
- Establishing a 2023 capital return target of $450-$550
million
Laura Prieskorn, President and Chief Executive Officer of
Jackson, stated, “Jackson’s fourth quarter and full year 2022
results highlight our continued momentum as we have met or exceeded
all of our 2022 financial targets and created value for our
shareholders. We entered 2023 with a strong statutory capital
position following three straight quarters of RBC ratio growth,
robust levels of excess cash at the holding company, and reported
leverage below our targeted long-term range. Our healthy and
profitable book of business positions us well on our long-term
mission of providing financial freedom for life and gives us the
confidence to establish a $450 to $550 million capital return
target in 2023.”
Consolidated Fourth Quarter and Full
Year 2022 Results
Fourth Quarter 2022
The company reported net income (loss) attributable to Jackson
Financial Inc. of $(710) million, or $(8.48) per diluted share for
the three months ended December 31, 2022, compared to $585 million,
or $6.19 per diluted share for the three months ended December 31,
2021. The current quarter net loss primarily reflects a larger net
hedging loss versus a year ago, driven by higher freestanding
derivative losses resulting from comparatively stronger equity
market returns in the current quarter. The change in the reported
fair value of derivatives is not expected to match the change in
hedged liabilities on a U.S. GAAP basis period-to-period, which can
result in net income volatility. We believe adjusted operating
earnings better represents the underlying performance of our
business as the figure excludes, among other things, changes in
fair value of freestanding and embedded derivative instruments tied
to market volatility. Additionally, net income in the fourth
quarter reflects a $474 million loss from business reinsured to
third parties, while the prior year’s fourth quarter included a
loss of $36 million. These figures include the gain/loss on a funds
withheld reinsurance treaty and the related net investment income,
which do not impact our statutory capital or free cash flow and can
be volatile quarter to quarter.
Adjusted operating earnings for the three months ended December
31, 2022 were $491 million, or $5.66 per diluted share, compared to
$707 million or $7.48 per diluted share, for the three months ended
December 31, 2021. The decline in adjusted operating earnings was
primarily the result of lower fee income due to lower average
separate account balances, and decreased net investment income due
to lower levels of investment income on private equity and other
limited partnership investments in the current quarter. These were
partially offset by lower deferred acquisition costs (DAC)
amortization, general and administrative expenses, and agent
asset-based trail commissions in the current quarter.
Fourth quarter adjusted operating earnings included the impact
of several notable items, which benefited pretax earnings by $166
million, compared to a pretax benefit of $290 million in the fourth
quarter of 2021. The fourth quarter 2022 pretax notable items
were:
- Deceleration of DAC amortization, which contributed a benefit
of $175 million, due in part to a 7.5% separate account return for
the current quarter. This same item resulted in a benefit of $66
million in the fourth quarter of 2021, when the separate account
return was approximately 5.9%. Included in the impact above is a
DAC acceleration benefit in the current year period from the
release of the historical returns from the mean reversion formula,
and a negative impact from this same item in the fourth quarter of
2021.
- A negative impact of $62 million from underperformance of
private equity and other limited partnership returns relative to a
10% annualized return assumption. This same item resulted in a
benefit of $106 million in the fourth quarter of 2021.
- The current quarter did not experience the $80 million benefit
realized in the fourth quarter of 2021 from the recovery of claims
on previously reinsured policies.
- The annual unlocking of actuarial assumptions in the current
quarter resulted in a pretax benefit of $53 million. This same item
resulted in a pretax benefit of $38 million in the fourth quarter
of 2021.
Fourth quarter 2022 comparisons to the prior year for both net
income per diluted share and adjusted operating earnings per
diluted share were impacted by a lower weighted average share count
in the current quarter.
Full Year 2022
The company reported net income attributable to Jackson
Financial Inc. for the full year 2022 of $5,697 million, or $64.23
per diluted share, compared to $3,183 million, or $33.69 per
diluted share for the full year of 2021. The change was primarily
due to improved net hedging results from larger interest rate
increases and comparatively weaker equity market returns in 2022
compared to 2021. Additionally, net income in 2022 reflects $2,186
million of income from business reinsured to third parties, while
the prior year included a loss of $21 million. These figures
include the gain/loss on a funds withheld reinsurance treaty and
the related net investment income, which do not impact our
statutory capital or free cash flow and can be volatile quarter to
quarter.
Full year 2022 adjusted operating earnings were $1,443 million,
or $16.27 per diluted share, compared to $2,398 million or $25.38
per diluted share for the full year of 2021. The decline was
primarily due to decreased fee income from a lower average separate
account balance, decreased net investment income due to lower
levels of investment income on private equity and other limited
partnership investments, and higher DAC amortization. These were
partially offset by lower general and administrative expenses and
lower agent asset-based trail commissions in 2022 compared to
2021.
Full year 2022 comparisons to the prior year for both net income
per diluted share and adjusted operating earnings per diluted share
were impacted by a lower weighted average share count in the
current year.
Total shareholders’ equity was $8.4 billion or $97.97 per
diluted share as of December 31, 2022, down from $10.4 billion or
$114.78 per diluted share as of year-end 2021. The increase in
rates on U.S. Treasury securities and the widening credit spreads
of investment grade corporate securities resulted in reduced fair
values and increased unrealized losses during the year. Adjusted
book value2 was $11.8 billion or $137.22 per diluted share as of
December 31, 2022, up from $8.9 billion or $98.69 per diluted share
as of year-end 2021. The increase was primarily the result of full
year non-operating hedging gains as well as adjusted operating
earnings of $1.4 billion during 2022. Jackson’s financial leverage
ratio of 18.3% improved from 22.9% as of year-end 2021 and was
below our 20-25% long-term targeted range.
Segment Results – Pretax Adjusted
Operating Earnings2
Three Months Ended
Twelve Months Ended
(in
millions)
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Retail Annuities
$638
$750
$1,626
$2,528
Institutional Products
17
27
79
64
Closed Life and Annuity Blocks
(32)
21
(1)
224
Corporate and Other
(56)
19
(72)
(35)
Total3
$567
$817
$1,632
$2,781
Retail Annuities
Retail Annuities reported pretax adjusted operating earnings of
$638 million in the fourth quarter of 2022 compared to $750 million
in the fourth quarter of 2021. The current quarter was negatively
impacted by reduced fee income resulting from lower average
variable annuity account values, decreased net investment income
due to lower levels of investment income on private equity and
other limited partnership investments relative to the prior year
period, and a fourth quarter 2021 benefit from a recovery of claims
on previously reinsured policies. These were partially offset by
lower DAC amortization and lower operating expenses in the current
quarter. The decline in DAC amortization was due to a comparative
DAC amortization benefit from the release of the historical returns
from the mean reversion formula in the current quarter relative to
the impact in the fourth quarter of 2021. Current quarter DAC
amortization also benefited from deceleration resulting from a 7.5%
separate account return in the quarter, as this benefit was larger
than the deceleration benefit realized in the fourth quarter of
2021 when the separate account return was approximately 5.9%. In
periods where separate account returns are higher than our DAC
assumption, amortization is shifted to future years driving
deceleration of DAC amortization in the current period.
Full year 2022 pretax adjusted operating earnings for the
segment were $1,626 million, compared to $2,528 million in full
year 2021. The decline in full year results was driven by lower fee
income, decreased net investment income due to lower levels of
investment income on private equity and other limited partnership
investments, higher DAC amortization due to comparatively weaker
full-year separate account returns, and the recapture adjustment
noted above. These were partially offset by lower operating
expenses.
Total annuity sales of $3.2 billion were down 35% from the
fourth quarter of 2021. Variable annuity sales were down 47%
compared to the fourth quarter of 2021, primarily due to the
decline in equity markets and shifting consumer preferences in a
rising interest rate environment. The current quarter also reflects
$560 million of sales of RILA products, up from $108 million in the
fourth quarter of 2021. Fixed and fixed indexed annuity sales in
the current quarter totaled $134 million, up from $29 million in
the fourth quarter of 2021. In total, annuity sales without
lifetime benefit guarantees represented 43% of total annuity sales,
up from 37% in the fourth quarter of 2021. We continue to generate
fee-based sales, with current quarter advisory annuity sales of
$168 million, compared to $358 million in the fourth quarter of
2021.
For the full year 2022, annuity sales of $15.7 billion were down
19% from the full year 2021, reflecting lower sales of variable
annuities, partially offset by higher sales of RILA, fixed and
fixed indexed annuities.
Institutional Products
Institutional Products reported pretax adjusted operating
earnings of $17 million in the fourth quarter of 2022 compared to
$27 million in the fourth quarter of 2021. The current quarter was
down from the prior year’s quarter due to higher interest credited
and a higher loss on operating derivatives, partially offset by
higher net investment income. Total sales for the current quarter
were $908 million. Net flows totaled $505 million in the current
quarter, and total account value of $9.0 billion was up from $8.8
billion in the fourth quarter of 2021.
For the full year 2022, pretax adjusted operating earnings of
$79 million were up from $64 million in full year 2021, primarily
due to increased investment income on a moderately larger book of
business, partially offset by higher interest credited on the
larger book compared to the prior year. Net flows totaled $40
million in the full year 2022.
Closed Life and Annuity Blocks
Closed Life and Annuity Blocks reported a pretax adjusted
operating loss of $(32) million in the fourth quarter of 2022
compared to adjusted operating income of $21 million in the fourth
quarter of 2021. The current quarter was negatively impacted by
lower income on private equity and other limited partnership
investments, partially offset by lower death and other policy
benefits resulting from the continued decrease in the size of the
closed blocks.
For the full year 2022, the pretax adjusted operating result was
essentially breakeven compared to full year 2021 earnings of $224
million, driven by lower income on private equity and other limited
partnership investments in the current year, partially offset by
lower operating expenses. Net flows totaled $(75) million in the
fourth quarter of 2022 and $(296) million in the full year
2022.
Corporate and Other
Corporate and Other reported a pretax adjusted operating loss of
$(56) million in the fourth quarter of 2022 compared to income of
$19 million in the fourth quarter of 2021. The change was primarily
due to lower income on private equity and other limited partnership
investments in the current quarter.
For the full year 2022, the pretax adjusted operating loss of
$(72) million was larger than the $(35) million loss reported in
full year 2021, primarily due to higher levels of interest expense
resulting from senior notes issued to refinance previously
outstanding term loans, partially offset by lower expenses in the
current year.
Capitalization and
Liquidity
(Unaudited,
in billions)
December 31, 2022
September 30, 2022
December 31, 2021
Statutory Total Adjusted Capital
(TAC)
Jackson National Life Insurance
Company
$7.0
$9.5
$6.6
Statutory total adjusted capital at Jackson National Life
Insurance Company (JNLIC) was $7.0 billion as of the current
quarter, down from $9.5 billion as of the third quarter of 2022,
due primarily to strong equity markets, which led to hedging losses
and additional deferred tax asset (DTA) admissibility limit impacts
that were not fully offset by reserve releases.
JNLIC’s RBC ratio as of year-end 2022 was 544%, which was up
from the third quarter 2022 estimate of over 500%. Higher equity
markets during the current quarter led to a decline in company
action level required capital (CAL) which improved the RBC ratio
despite the decline in TAC during the current quarter.
Cash and liquid assets at the holding company totaled
approximately $675 million as of December 31, 2022, which was above
our targeted minimum liquidity buffer of 2x annual holding company
expenses
Earnings Conference Call
Jackson will host a conference call Wednesday, March 1, 2023, at
10 a.m. ET to review the fourth quarter and full year results and
discuss the company’s 2023 outlook. 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,” “will,” “expect,” “believe,”
“anticipate,” “plan,” “remain,” “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. Factors
that could cause actual results to differ materially from those in
the forward-looking statements include those reflected in the
Company’s reports filed with the U.S. Securities and Exchange
Commissions. 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
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.
Visit investors.jackson.com to view information regarding
Jackson Financial Inc., including a supplement regarding the Fourth
Quarter and Full Year 2022 results. We use this website as a
primary channel for disclosing key information to our investors,
some of which may contain material and previously non-public
information.
*SQM (Service Quality Measurement Group) Contact Center Awards
Program for 2004 and 2006-2022, for the financial services
industry. (To achieve world-class certification, 80% or more of
call-center customers surveyed must have rated their experience as
very satisfied, the highest rating possible).
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).
APPENDIX
Non-GAAP Financial Measures
In addition to presenting our results of operations and
financial condition in accordance with GAAP, we use and report
selected non-GAAP financial measures. Management believes the use
of these non-GAAP financial measures, together with relevant 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 GAAP and
should not be viewed as a substitute for the 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 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 GAAP. However, we believe the adjustments to net
income are useful for gaining an understanding of our overall
results of operations.
For additional detail on the excluded items, please refer to the
supplement regarding the fourth quarter ended December 31, 2022,
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.
(Jackson), the most comparable GAAP measure.
GAAP Net Income (Loss) to Adjusted
Operating Earnings
Three Months Ended
Twelve Months Ended
(in
millions)
December 31, 2022
December 31, 2021
December 31, 2022
December 31, 2021
Net income (loss) attributable to
Jackson Financial Inc.
$
(710
)
$
585
$
5,697
$
3,183
Income tax expense (benefit)
(235
)
87
1,371
602
Pretax income (loss) attributable to
Jackson Financial Inc.
(945
)
672
7,068
3,785
Non-operating adjustments – (income)
loss:
Fees attributed to guaranteed benefit
reserves
(777
)
(753
)
(3,077
)
(2,854
)
Net movement in freestanding
derivatives
3,862
1,708
2,744
5,674
Net reserve and embedded derivative
movements
(1,110
)
(532
)
(2,891
)
(2,753
)
DAC and DSI impact
(434
)
(18
)
1,214
266
Assumption changes
(367
)
(24
)
(367
)
(24
)
Total guaranteed benefits and hedging
results
1,174
381
(2,377
)
309
Net realized investments (gains) losses
including change in fair value of funds withheld embedded
derivative
702
58
(1,827
)
(161
)
Net investment income on funds withheld
assets
(317
)
(303
)
(1,254
)
(1,188
)
Other items
(47
)
9
22
36
Total non-operating adjustments
1,512
145
(5,436
)
(1,004
)
Pretax Adjusted Operating
Earnings
567
817
1,632
2,781
Operating income taxes
76
110
189
383
Adjusted Operating Earnings
$
491
$
707
$
1,443
$
2,398
Weighted Average diluted shares
outstanding4
83,695,001
94,468,978
88,690,700
94,465,511
Net income (loss) per diluted
share
$
(8.48
)
$
6.19
$
64.23
$
33.69
Adjusted Operating Earnings per diluted
share
$
5.66
$
7.48
$
16.27
$
25.38
Adjusted Book Value
Adjusted Book Value excludes Accumulated Other Comprehensive
Income (Loss) ("AOCI") attributable to Jackson Financial Inc
("JFI"). AOCI attributable to JFI excludes 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 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.
Financial Leverage Ratio
We use Financial Leverage Ratio to manage our financial
flexibility and ensure we maintain our financial strength ratings.
Total financial leverage is the ratio of total debt to Total
Adjusted Capitalization (combined total debt and Adjusted Book
Value).
Adjusted Book Value & Debt
Financial Leverage Ratio
(in
millions)
December 31, 2022
December 31, 2021
Total shareholders’ equity
$
8,423
$
10,394
Adjustments to total shareholders’
equity:
Exclude Accumulated Other Comprehensive
(Income) Loss attributable to Jackson Financial Inc.
3,375
(1,457
)
Adjusted Book Value (a)
$
11,798
$
8,937
Debt (b)
2,635
$
2,649
Financial Leverage Ratio
(b/[a+b])
18.3
%
22.9
%
Consolidated Balance
Sheets
December 31,
December 31,
2022
2021
(in millions,
except per share data)
Assets
Investments:
Debt Securities, available-for-sale, net
of allowance for credit losses of $23 and $9 at December 31, 2022
and 2021, respectively (amortized cost: 2022 $48,798; 2021
$49,378)
$
42,489
$
51,547
Debt Securities, at fair value under fair
value option
2,173
1,711
Debt Securities, trading, at fair
value
100
117
Equity securities, at fair value
393
279
Mortgage loans, net of allowance for
credit losses of $95 and $94 at December 31, 2022 and 2021,
respectively
10,967
11,482
Mortgage loans, at fair value under fair
value option
582
—
Policy loans (including $3,419 and $3,467
at fair value under the fair value option at December 31, 2022 and
2021, respectively)
4,377
4,475
Freestanding derivative instruments
1,270
1,417
Other invested assets
3,595
3,199
Total investments
65,946
74,227
Cash and cash equivalents
4,298
2,623
Accrued investment income
514
503
Deferred acquisition costs
13,422
14,249
Reinsurance recoverable, net of allowance
for credit losses of $15 and $12 at December 31, 2022 and 2021,
respectively
29,641
33,126
Deferred income taxes, net
385
954
Other assets
946
928
Separate account assets
195,906
248,949
Total assets
$
311,058
$
375,559
Consolidated Balance
Sheets
December 31,
December 31,
2022
2021
(in millions,
except per share data)
Liabilities and Equity
Liabilities
Reserves for future policy benefits and
claims payable5
$
14,273
$
18,667
Other contract holder funds
58,195
58,726
Funds withheld payable under reinsurance
treaties (including $3,582 and $3,639 at fair value under the fair
value option at December 31, 2022 and 2021, respectively)
22,957
29,007
Long-term debt
2,635
2,649
Repurchase agreements and securities
lending payable
1,048
1,589
Collateral payable for derivative
instruments
689
913
Freestanding derivative instruments
2,065
41
Notes issued by consolidated variable
interest entities, at fair value under fair value option
1,732
1,404
Other liabilities
2,403
2,540
Separate account liabilities
195,906
248,949
Total liabilities
301,903
364,485
Equity
Common stock, (i) at December 31, 2022,
common stock (formerly known as the Class A Common Stock at
December 31, 2021) 1,000,000,000 shares authorized, $0.01 par value
per share and 82,690,098 shares issued and outstanding (ii) at
December 31, 2021, Class A Common Stock 900,000,000 shares
authorized, $0.01 par value per share and 88,046,833 shares issued
and outstanding and Class B Common Stock 100,000,000 shares
authorized, $0.01 par value per share and 638,861 shares issued and
outstanding6
1
1
Additional paid-in capital
6,063
6,051
Treasury stock, at cost; 11,784,813 and
5,778,649 shares at December 31, 2022 and 2021, respectively
(443
)
(211
)
Accumulated other comprehensive income
(loss), net of tax expense (benefit) of $(650) in 2022 and $194 in
2021
(5,481
)
1,744
Retained earnings
8,283
2,809
Total shareholders' equity
8,423
10,394
Noncontrolling interests
732
680
Total equity
9,155
11,074
Total liabilities and equity
311,058
375,559
Consolidated Income
Statements
Three Months Ended December 31,
Twelve Months Ended December 31,
(in millions,
except per share data)
2022
2021
2022
2021
Revenues
Fee income
$
1,868
$
2,096
$
7,722
$
8,059
Premiums
27
33
132
148
Net investment income
739
856
2,761
3,424
Net gains (losses) on derivatives and
investments7
(3,040
)
(1,284
)
3,851
(2,478
)
Other income
25
24
85
94
Total revenues
(381
)
1,725
14,551
9,247
Benefits and Expenses
Death, other policy benefits and change in
policy reserves, net of deferrals
200
37
2,290
970
Interest credited on other contract holder
funds, net of deferrals and amortization
234
204
862
834
Interest expense
40
18
113
37
Operating costs and other expenses, net of
deferrals
631
749
2,432
2,839
Amortization of deferred acquisition
costs
(533
)
(31
)
1,743
520
Total benefits and expenses
572
977
7,440
5,200
Pretax income (loss)
(953
)
748
7,111
4,047
Income tax expense (benefit)
(235
)
87
1,371
602
Net income (loss)
(718
)
661
5,740
3,445
Less: Net income (loss) attributable to
noncontrolling interests
(8
)
76
43
262
Net income (loss) attributable to Jackson
Financial Inc.
$
(710
)
$
585
$
5,697
$
3,183
Earnings per share
Basic
$
(8.48
)
$
6.32
$
66.62
$
33.86
Diluted
$
(8.48
)
$
6.19
$
64.23
$
33.69
_________________________
1 For the reconciliation of non-GAAP
measures to the most comparable GAAP measure, please see the
explanation of Non-GAAP Financial Measures in the Appendix to this
release.
2 For the reconciliation of non-GAAP
measures to the most comparable GAAP measure, please see the
explanation of Non-GAAP Financial Measures in the Appendix to this
release.
3 See reconciliation of Net Income to
Total pretax adjusted operating earnings in the Appendix to this
release
4 The calculation of basic and diluted
earnings per share and weighted average shares of common stock
outstanding reflect a 104,960.3836276-for-1 stock split effected on
September 9, 2021. All share and earnings per share information
presented herein have been retroactively adjusted to reflect the
stock split.
5 In connection with the December 31, 2022
year-end audit, Jackson’s management, under the oversight of
Jackson’s Audit Committee, conducted an assessment of the
effectiveness of our internal control over financial reporting.
Management identified a material weakness related to the process of
setting the discount rate used to estimate the fair value of some
of the guarantee features of our variable annuity products. This
weakness did not result in any identified misstatements to the
December 31, 2022 year-end GAAP or statutory financial statements,
and there were no changes to previously released financial results.
Management is developing a remediation plan for 2023.
6 The authorized Class B Common Stock has
been eliminated as a result of the filing of the Company’s Third
Amended and Restated Certificate of Incorporation during 2022, and
the Class A Common Stock became Common Stock.
7 See footnote 5.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230228006401/en/
Investor Relations Contacts: Liz Werner
elizabeth.werner@jackson.com
Andrew Campbell andrew.campbell@jackson.com
Media Contact: Patrick Rich patrick.rich@jackson.com
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