Jackson Increases First Half 2011 IFRS Net Income 22% to $443 Million; Remits Dividend of $530 Million to Parent Company

Jackson National Life Insurance Company^® (Jackson^®) achieved record IFRS net income¹ of $443 million during the first six months of 2011, up 22 percent over the same period in 2010. Strong year-over-year growth in IFRS net income was due primarily to an increase in both spread and fee income.

"Jackson has consistently generated profitable growth by balancing the needs of all our stakeholders, including customers, advisers, regulators, employees and our parent company's shareholders," said Mike Wells, Jackson's president and chief executive officer. “Maintaining balance across the organization is the key to Jackson's financial strength, which was recognized by ratings affirmations from three leading rating agencies this year.”

Jackson, an indirect wholly owned subsidiary of the United Kingdom's Prudential plc (NYSE: PUK), generated total sales and deposits of more than $12.1 billion² during the first half of 2011, up 29 percent over the prior year period. As of June 30, 2011, Jackson had $4.2 billion of regulatory adjusted capital, more than nine times the regulatory requirements³, after remitting a dividend of $530 million to its parent company.

IFRS net realized gains on investments totaled $114 million during the first half of 2011, up from $19 million during the same period of the prior year. Jackson ended the first half of 2011 with $115.7 billion in total IFRS assets⁴, up from $94.3 billion at June 30, 2010, and $107.0 billion at December 31, 2010.

"Jackson's first-half earnings benefited from a 41-percent increase in fee income, due to stronger equity market performance and higher VA sales," said Chad Myers, Jackson's executive vice president and chief financial officer. "Additionally, spread income increased 10 percent over the first half of 2010, primarily as a result of steps taken to lengthen Jackson's portfolio duration and improve margins on fixed annuities.”

Financial Strength

Three of the four primary ratings agencies – Fitch Ratings, A.M. Best and Moody's Investor Service, Inc. –affirmed Jackson's financial strength ratings during the first half of 2011; Standard & Poor's affirmed Jackson's financial strength rating in August 2010. Jackson has maintained the same financial strength ratings for more than eight years. As of July 31, 2011, Jackson had the following ratings⁵:

• A+ (superior) A.M. Best financial strength rating, the second-highest of 16 rating categories
• AA (very strong) Standard & Poor's insurer financial strength rating, the third-highest of 21 rating categories
• AA (very strong) Fitch Ratings insurer financial strength rating, the third-highest of 19 rating categories
• A1 (good) Moody's Investors Service, Inc. insurance financial strength rating, the fifth-highest of 21 rating categories

Sales and Deposits

During the first six months of 2011, Jackson sold $9.5 billion in VAs, compared to $6.8 billion during the same period of the prior year. First half VA sales increased 22 percent over the second half of 2010, and second quarter 2011 VA sales of nearly $5.0 billion were 9 percent higher than the first quarter of 2011.

Curian Capital^® (Curian), Jackson's registered investment adviser that provides innovative fee-based managed accounts and investment products, attracted $1.4 billion in deposits during the first half of 2011, up 37 percent over the prior year period. The firm generated $8 million in IFRS pretax income, up from $2 million during the same period of the prior year. As of June 30, 2011, Curian's assets under management totaled $6.9 billion, up from $6.2 billion at March 31, 2011.

"Jackson's approach to the market remains grounded in three core principles," said Clifford Jack, Jackson's head of retail. "Our goals are to deliver value to the customer, maintain sound pricing and risk management practices, and allow the adviser to demonstrate his or her value to clients. As a result of this approach, Jackson is able to forge strong and lasting relationships with its distribution partners."

Jackson restrained fixed and fixed index annuity sales during the first half of 2011, as the company continued to direct available capital to support higher-margin product sales. Traditional deferred fixed annuity sales totaled $371 million, compared to $635 million during the first half of 2010, while sales of fixed index annuities (FIAs) were $671 million, compared to $915 million during the same period of the prior year.

Market Share

During the first quarter of 2011 (the latest industry data available), Jackson ranked:

• Third in total annuity sales, with a market share of 8.5 percent, compared to third and a market share of 7.6 percent during the first quarter of 2010⁶;
• Third in VA sales, with a market share of 11.8 percent, compared to fourth and a market share of 10.0 percent during the first quarter of 2010⁷;
• Tenth in total VA assets, up from 12^th at March 31, 2010⁷;
• Eighth in FIA sales, with a market share of 4.6 percent, compared to fourth and a market share of 6.9 percent during the first quarter of 2010⁸; and
• Tenth in traditional deferred fixed annuity sales with a market share of 2.1 percent, compared to ninth and a market share of 2.7 percent during the first quarter of 2010⁹.

Affiliate Performance

National Planning Holdings^®, Inc. (NPH), Jackson's affiliated network of four independent broker-dealers, generated gross product sales of $8.3 billion during the first half of 2011, up 15 percent over the same period of 2010, and IFRS revenue of $405 million, up 18 percent over the prior year period. NPH also reported $9 million in IFRS net income, compared to $3 million during the first half of 2010.

“Jackson delivered record profitability during the first half of 2011 due to the company's continued financial discipline and focus on balancing sales growth with product margins,” Wells said. "By maintaining that focus, Jackson is well positioned for continued success in the retirement services market."

¹ International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent, Prudential plc, to report the Group's financial results.

²Sales and deposits from Jackson's subsidiaries Jackson National Life Insurance Company of New York^® and Curian Capital have been included in Jackson's total sales and deposits figures.

³Based on year-end 2010 authorized control level capital requirements.

⁴Jackson has $115.7 billion in total IFRS assets and $105.5 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 6/30/11).

⁵Financial strength ratings do not apply to the principal amount or investment performance of the separate account or underlying investments of variable products.

⁶Source: LIMRA International U.S. Individual Annuities Sales Survey First Quarter 2011. Jackson ranked third in total annuity sales out of 59 companies during 1Q11 and third out of 61 companies during 1Q10.

⁷Source: Morningstar Annuity Research Center First Quarter 2011 Report. In VA sales, Jackson ranked third out of 38 companies during 1Q11 and fourth out of 39 companies during 1Q10. In VA assets, Jackson ranked 10^th out of 50 companies at the end of 1Q11 and 12^th out of 51 companies at the end of 1Q10.

⁸Source: AnnuitySpecs Indexed Sales & Market Report, 1^st Quarter 2011. Jackson ranked eighth out of 33 companies during 1Q11 and fourth out of 34 companies during 1Q10.

⁹Source: LIMRA International U.S. Individual Annuities Sales Survey First Quarter 2011. Jackson ranked tenth out of 57 companies during 1Q11 and ninth out of 57 companies during 1Q10.

Before investing in variable products, investors should carefully consider the investment objectives, risks, charges and expenses of the variable product and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

About Jackson National Life Insurance Company

With $115.7 billion in assets (IFRS)*, Jackson National Life Insurance Company (Jackson) is an industry leader in variable, fixed and fixed index annuities. The company also offers life insurance and institutional products. Jackson markets its products in 49 states and the District of Columbia through independent and regional broker-dealers, financial institutions and independent insurance agents. Jackson's subsidiary, Jackson National Life Insurance Company of New York^®, similarly markets products in the state of New York. Through its affiliates and subsidiaries, Jackson also provides asset management and retail brokerage services. For more information, visit www.jackson.com.

*Jackson has $115.7 billion in total IFRS assets and $105.5 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 6/30/11).

Annuities and life insurance products are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable products are distributed by Jackson National Life Distributors LLC. Fixed index annuities are referred to as Equity Indexed and Fixed Annuities in Oregon. Fixed index annuities may not be suitable for everyone. May not be available in all states and state variations may apply. These contracts have limitations and restrictions, including possible withdrawal charges, recapture charges and excess interest adjustments. Contact your representative or the Company for more information.

Please remember that a Jackson annuity is intended to be a long-term, tax-deferred vehicle for retirement. An annuity's earnings are taxable as ordinary income when withdrawn and, if taken before age 59 1/2, may be subject to a 10% federal tax penalty. Variable annuities involve investment risks and may lose value.

Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated and with its principal place of business in the United Kingdom. Prudential plc and its affiliated companies constitute one of the world's leading financial service groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. It has been in existence for over 160 years and had more than $560 billion in assets under management as of June 30, 2011. Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

The following cautionary statement is included to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of, the Company. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. However, as with any projection or forecast, forward-looking statements are inherently susceptible to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such forward-looking statements. There can be no assurance that management's expectations, beliefs or projections will result or be achieved or accomplished.