Market Overview

Jackson Reports First Half 2018 Financial Results1

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  • Record IFRS pre-tax operating income2 of
    $1.4 billion
  • $179 billion in separate account assets under management

Jackson
National Life Insurance Company
® (Jackson®)
generated a record $1.4 billion in IFRS pre-tax operating income during
the first half of 2018, an increase of 0.8 percent over the first half
of 2017. Jackson, an indirect wholly owned subsidiary of the United
Kingdom's Prudential plc (NYSE:PUK), recorded sales and deposits of
$11.2 billion in the first half of the year, and remitted a $450 million
dividend to its parent company. The results mark another successful six
months for the company, reflecting its disciplined approach to business
and strong capital position.

Barry Stowe, chief executive officer of Jackson Holdings LLC, said the
results were primarily driven by the continued growth of separate
account assets under management (totaling $179 billion as of June 30,
2018), due to positive net flows and rising equity markets.

"While our industry has faced its set of challenges in recent years, we
are optimistic about the future," Stowe said. "We will continue to work
with the SEC toward a harmonized and uniform regulatory framework that
puts consumers first and provides them with choice."

On June 14, Jackson announced its role as a founding member and co-chair
of the Alliance for Lifetime Income (Alliance), a 501(c)(6) organization
formed and supported by 24 of the nation's financial services
organizations to create awareness and educate consumers and financial
professionals about the importance of protected lifetime income.
According to Stowe, Jackson helped to establish the Alliance because it
believes it is critically important for the industry to work together to
solve a significantly pressing social issue — millions of Americans are
retiring every year without adequate financial security, and they are
genuinely concerned about outliving their savings.

"What financial freedom really means is freedom from worry," Stowe said.
"Through the Alliance, we are partnering with policymakers, academia and
consumer groups to address society's looming retirement crisis. We are
committed to educating Americans about the risks they face in
retirement, and to helping them mitigate those risks with solutions that
offer the opportunity to protect and grow their savings, while ensuring
those savings last a lifetime."

1Financial results from Jackson National Life
Insurance Company and its subsidiaries have been included in Jackson's
financial results. Fixed index annuities and institutional products are
not sold in New York.

2International 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. Jackson's parent, Prudential plc
(Group), uses IFRS to report the Group's financial results.

IFRS pre-tax operating income is based on longer-term investment
returns. It excludes short-term fluctuations in investment returns,
hedge results and change in value of derivatives. A reconciliation to
both IFRS net income as well as net income based on US generally
accepted accounting principles (US GAAP) is as follows (amounts in
millions):

$ 1,370.9   IFRS basis pre-tax income from operations
275.3 Net hedge results and change in value of derivatives, net of DAC
amortization
73.7 Net realized investment gains, net of DAC amortization and
non-controlling interest
(48.0 ) Normalization of longer-term investment returns, net of DAC
amortization
  (300.7 ) Income tax expense
1,371.2 IFRS net income
  (20.5 ) IFRS to US GAAP adjustments, net of tax
$ 1,350.7 US GAAP basis net income attributable to Jackson

Jackson's net income benefitted from the release of accounting reserves,
primarily due to interest rates, which were partially offset by hedging
losses on equity and interest rate hedges. IFRS accounting for variable
annuity liabilities is not necessarily consistent with the economic
value of these liabilities. Jackson continues to manage its hedge
program on an economic basis and is willing to accept the accounting
volatility that results.

About Jackson

Jackson is a leading provider of retirement products for industry
professionals and their clients. The company and its affiliates offer
variable, fixed and fixed index annuities designed for tax-efficient
growth and distribution of retirement income for retail customers, as
well as products for institutional investors. Jackson is a proud
founding member and co-chair of the Alliance for Lifetime Income, a
nonprofit 501(c)(6) organization formed and supported by 24 of the
nation's financial services organizations to create awareness and
educate Americans about the importance of protected lifetime income.
With $264.9 billion in IFRS assets*, the company prides itself on
product innovation, sound corporate risk management practices and
strategic technology initiatives. Focused on thought leadership and
education, Jackson develops proprietary research, industry insights and
financial representative training on retirement planning and alternative
investment strategies. The company is also dedicated to corporate social
responsibility and supports nonprofits focused on strengthening families
and creating economic opportunities in the communities where its
employees live and work. For more information, visit www.jackson.com.

*Jackson has $264.9 billion in total IFRS assets and $251.6 billion
in IFRS policy liabilities set aside to pay primarily future policyowner
benefits (as of June 30, 2018). International Financial Reporting
Standards (IFRS) is a principles-based set of international accounting
standards for reporting financial information. 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 company.

Jackson is an indirect subsidiary of Prudential plc, a company
incorporated in England and Wales. Prudential plc and its affiliated
companies constitute one of the world's leading financial services
groups, serving over 26 million customers with $877.2 billion in assets
under management (as of June 30, 2018). 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.

This press release may contain certain statements that constitute
"forward-looking statements." 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. Any forward-looking
statements reflect Jackson's views and assumptions as of the date of
this press release and Jackson disclaims any obligation to update
forward-looking information.

PR3208 07/18

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