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Mar 31, 2023

Jackson Q1 2023 Earnings Report

Jackson Financial Inc. reported a net loss due to larger hedging losses, but demonstrated progress in strategic goals with increased RILA sales and shareholder returns.

Key Takeaways

Jackson Financial Inc. reported a net loss of $1,497 million, primarily due to hedging losses. However, the company saw growth in RILA sales and returned $124 million to shareholders. They remain on track to achieve their 2023 capital return target.

Net loss attributable to Jackson Financial Inc. was $(1,497) million, or $(18.11) per diluted share.

Adjusted operating earnings were $271 million, or $3.15 per diluted share, a 28% decrease from Q1 2022.

Returned $124 million to common shareholders through share repurchases and dividends.

First quarter RILA sales increased to $533 million, up from $199 million in the first quarter of 2022.

Total Revenue
-$749M
Previous year: $4.3B
-117.4%
EPS
$3.15
Previous year: $3.94
-20.1%
Total Annuity Account Value
$219B
Previous year: $243B
-9.9%
Gross Profit
-$1.37B
Previous year: $3.69B
-137.0%
Cash and Equivalents
$1.78B
Previous year: $2.67B
-33.5%
Total Assets
$321B
Previous year: $377B
-14.8%

Jackson

Jackson

Jackson Revenue by Segment

Forward Guidance

Jackson is confident in its ability to achieve its 2023 key financial targets and create value for shareholders over the long-term, maintaining financial flexibility with a strong RBC ratio and holding company liquidity.

Positive Outlook

  • On track with strategic and operational goals.
  • Returned $124 million to common shareholders, a strong start toward the 2023 capital return target of $450-550 million.
  • Significant financial flexibility with an estimated operating company RBC ratio within the target range.
  • Over $1.5 billion of liquidity at the holding company.
  • Successful issuance of preferred stock in the first quarter, raising $533 million of net proceeds.

Challenges Ahead

  • Ongoing market volatility.
  • Net income (loss) attributable to Jackson Financial Inc. of $(1,497) million.
  • Adjusted operating earnings down 28% from the first quarter of 2022.
  • Decline in annuity account values.
  • Higher interest crediting rates on variable annuity fixed rate options.

Revenue & Expenses

Visualization of income flow from segment revenue to net income