Jackson Reports First Half 2019 Financial Results1
Business Wire 14-Aug-2019 9:00 AM
Company generates record pre-tax operating income of $1.6 billion;
remits $525 million dividend to parent company
Jackson National Life Insurance Company® (Jackson®) today announced its half-year financial results, generating a record $1.6 billion in IFRS pre-tax operating income2 during the first half of 2019, an increase of 13.6 percent over the first half of 2018. Jackson, an indirect wholly owned subsidiary of the United Kingdom's Prudential plc (NYSE:PUK), also reported $10.8 billion in sales and deposits and remitted a $525 million dividend to its parent company.
Michael Falcon, chief executive officer of Jackson Holdings LLC, said Jackson's capital position and financial health remain strong, and the company continues to build on its positive momentum.
"Consumers want and need protection — both of income and principal — as part of their retirement plans, and that's exactly what our solutions are designed to provide," Falcon said. "Jackson is committed to enhancing its product offerings, distribution footprint and technology capabilities as we work to help advisors and consumers better understand the role annuities can play as they prepare for their financial futures."
Jackson is leveraging FinTech to better integrate its solutions into advisors' businesses, and new product launches and distribution partnerships have diversified the company's offerings and furthered its national reach, providing advisors and their clients with more choice and greater access to the strategies they need.
"Receiving income for life is a critical concern for millions of Americans who are enjoying longer, healthier lives," Falcon said. "Jackson is proud to take a leadership role in ensuring new tools and educational resources are available to make practical financial knowledge and lifetime income strategies more accessible and engaging for everyone."
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):
|
$
|
|
1,557.0
|
|
|
IFRS basis pre-tax income from operations
|
|
|
(1,969.3
|
)
|
|
Net hedge results and change in value of derivatives, net of DAC amortization
|
|
|
22.3
|
|
|
Net realized investment gains, net of DAC amortization
|
|
|
(31.1
|
)
|
|
Normalization of longer-term investment returns, net of DAC amortization
|
|
|
146.3
|
|
|
Income tax benefit
|
|
|
(274.8
|
)
|
|
IFRS net loss
|
|
|
(6.4
|
)
|
|
IFRS to US GAAP adjustments, net of tax
|
|
$
|
|
(281.2
|
)
|
|
US GAAP basis net loss attributable to Jackson
|
Jackson's net loss was impacted by hedging losses incurred due to movements in interest rates and equity markets, which were not fully offset by the release of accounting reserves. 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 $281.5 billion in IFRS assets*, the company prides itself on sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, Jackson provides industry insights and financial representative training on retirement planning and alternative investment strategies. The company is also dedicated to corporate philanthropy 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 $281.5 billion in total IFRS assets and $265.7 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of June 30, 2019).
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 $912.8 billion in assets under management (as of June 30, 2019). 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.
PR3246 08/19
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