Jackson Financial Inc. Q3 FY2024 earnings call

• Diversified and growing annuity sales, with total retail annuity sales exceeding $5 billion in Q3, up 59% Y/Y and 25% Q/Q. • RILA segment saw record sales of $1.6 billion in Q3 2024, with growth supported by new products and distribution. • Variable annuity sales benefited from favorable equity markets, with $2.6 billion in Q3 sales. • Fixed and fixed indexed annuity spread sales were $1 billion in Q3, diversifying the sales mix. • Capital generation: After-tax capital generation was $462 million in Q3 2024 and over $1 billion YTD. Holding company cash approached $650 million, with a $300 million distribution in Q3. Board approved $0.70 per share common stock dividend for Q4 2024 and repurchased $48 million in shares. • Adjusted operating earnings up in Q3 2024 compared to Q3 2023 and YTD, supported by increased fee income and investment spread income.

Retail Annuities: Third quarter sales grew 59% from Q3 2023 and 25% from Q2 2024. RILA segment hit record sales of $1.6 billion in Q3 2024, with YTD sales over $4 billion. Variable annuity sales were $2.6 billion in Q3, up 6% YTD. Fixed and fixed indexed annuity spread sales were $1 billion in Q3. Institutional: Pretax adjusted operating earnings down from Q3 2023 due to reduced average AUM. Closed Life and Annuity Blocks: Pretax adjusted operating earnings broadly unchanged from Q3 2023 but down from Q2 2024.

• On track to meet annual financial targets for the fourth year in a row. Estimated RBC ratio in range of 550%-570%, well above minimum. • Expect continued growth in RILA business supported by new products (e.g., living benefit) and expanded distribution (e.g., JPMorgan Wealth Management). • Anticipate remaining active in spread business while maintaining disciplined capital management.

• Volatility in hedging results due to market and interest rate impacts (e.g., equity and interest rate hedge movements). • Fluctuations in market implied volatility affecting market risk benefits (MRB). • Variability in lapse rates and withdrawals impacting market risk benefits, with higher lapse rates seen during strong equity markets.

Q: Alex Scott asked about statutory earnings and capital uplift.

A: Don Cummings responded on capital mix being relatively capital efficient, comfortable with product mix, and minimal impact on TAC from RILA strength.

Q: Suneet Kamath asked about Brooke Re and capital generation.

A: Don Cummings discussed Brooke Re growth, initial capitalization of $700 million, and expectation of continued capital return with strong business performance.

Q: Ryan Krueger asked about Brooke Re capital movement and market risk benefits.

A: Don Cummings talked about Brooke Re capital growth and that unexpected MRB roll forward is driven by lapse activity/withdrawals, with higher lapse rates during strong equity markets.

Q: Thomas Gallagher asked about hedging, fixed/FIA sales returns.

A: Laura Prieskorn and Scott Romine addressed sales drivers (demand, product solutions, adviser use), and Don Cummings discussed comfort with profitability of all products, with returns varying by product type but comfortable with results.