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Dec 31, 2024
Jackson Q4 2024 Earnings Report
Jackson reported strong fourth quarter and full year 2024 results, driven by increased annuity sales, higher assets under management, and improved operating earnings.
Key Takeaways
Jackson Financial Inc. announced robust financial results for the fourth quarter and full year ended December 31, 2024. The company saw a significant increase in retail annuity sales, a rise in total annuity assets under management, and a substantial improvement in net income and adjusted operating earnings compared to the previous year.
Retail annuity sales surged by 42% to $4.7 billion in Q4 2024, demonstrating strong market demand.
Total annuity assets under management (AUM) increased by 7% to $252 billion, primarily due to higher equity markets.
Net income attributable to common shareholders was $334 million in Q4 2024, a significant turnaround from a loss of $1.6 billion in Q4 2023.
Adjusted operating earnings rose to $349 million in Q4 2024, up from $204 million in Q4 2023, benefiting from growth in variable annuity AUM and higher spread income.
Jackson
Jackson
Jackson Revenue by Segment
Revenue by Segment
Retail Annuities Revenue
CapyFin.com Forward Guidance
Jackson is confident in its future performance, setting an increased dividend and a substantial capital return target for 2025, supported by strong financial health and a profitable business model.
Positive Outlook
- Increased first quarter 2025 common dividend by 14% to $0.80 per share, signaling confidence in future earnings.
- Established a 2025 capital return to common shareholders target of $700-800 million, indicating a commitment to shareholder value.
- Strong financial performance in 2024, including significant growth in retail annuity sales and AUM, provides a solid foundation for 2025.
- Estimated RBC ratio well above the target of 425% and robust levels of excess cash at the holding company provide financial flexibility.
- Continued focus on offering differentiated and innovative solutions is expected to drive further growth and value generation.
Challenges Ahead
- The report does not explicitly state any negative forward guidance. However, general market volatility and economic conditions could pose challenges.
- Potential for increased market-related costs and other expenses could impact future profitability.
- Changes in interest rates could affect hedging results and net investment income.
- Competition in the annuity market could intensify, potentially impacting sales growth.
- Regulatory changes or unforeseen events could affect financial performance.