Jackson Financial Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to common shareholders was $847 million ($12.37 per diluted share) in Q3 2026, compared to $65 million ($0.92 per diluted share) in Q3 2025.
• Adjusted operating earnings were $517 million ($7.55 per diluted share) in Q3 2026, up from $433 million ($6.16 per diluted share) in Q3 2025.
• Adjusted operating earnings per diluted share excluding notable items was $7.67 in Q3 2026, up from $5.98 in Q3 2025.
• Total common shareholders' equity was $7.9 billion ($117.72 per diluted share) as of September 30, 2026, down from $9.4 billion ($138.17 per diluted share) as of December 31, 2025.
• Adjusted book value attributable to common shareholders was $11.1 billion ($164.47 per diluted share) as of September 30, 2026, up from $10.6 billion ($155.78 per diluted share) as of December 31, 2025.
• Return on equity attributable to common shareholders for the nine months ended September 30, 2026, was 15.7%, compared to 2.7% in the prior year period.
• Adjusted operating return on equity for the nine months ended September 30, 2026, was 17.3%, up from 14.0% in the prior year period.
• Free cash flow was $275 million in Q3 2026, reflecting $325 million in distributions from the operating company.
• Parent company net cash provided by operating activities was $6 million in Q3 2026, compared to $22 million in Q3 2025.
• Statutory Total Adjusted Capital (TAC) at Jackson National Life Insurance Company was $5.9 billion as of September 30, 2026, up from $5.8 billion as of June 30, 2026.
• Estimated risk-based capital (RBC) ratio at Jackson National Life Insurance Company was 524% as of September 30, 2026.
• Free capital generation was $281 million in Q3 2026 after reflecting increased capital requirements for new sales.
• Cash and highly liquid securities at the holding company were nearly $1.4 billion as of September 30, 2026.

Guidance and Future Outlook:

• Management stated the company is well positioned for the future and remains committed to helping Americans achieve financial freedom for life.
• The company noted strong levels of new business contributed to an increase in estimated company action level required capital, impacting the RBC ratio.
• Management highlighted the strength of the business and consistent execution against strategy as drivers for future performance.

Business Segments and Product Lines:

• Retail annuity sales reached a record $6.5 billion in Q3 2026, up 22% from Q3 2025.
• Registered index-linked annuity (RILA) sales were a record $3.0 billion in Q3 2026, up 44% from Q3 2025.
• Variable annuity (VA) sales were $2.8 billion in Q3 2026, down 3% from Q3 2025.
• Fixed annuity (FA) and fixed index annuity (FIA) sales were $796 million in Q3 2026, up 79% from Q3 2025, driven by the Jackson Income Assurance Suite.
• Retail Annuities segment reported pretax adjusted operating earnings of $638 million in Q3 2026, up from $494 million in Q3 2025.
• Institutional Products segment reported pretax adjusted operating earnings of $23 million in Q3 2026, down from $31 million in Q3 2025, with sales of $755 million compared to $1.0 billion in Q3 2025.
• Closed Life and Annuity Blocks reported a pretax adjusted operating loss of $(3) million in Q3 2026, compared to income of $15 million in Q3 2025.
• Corporate and Other reported a pretax adjusted operating loss of $(46) million in Q3 2026, compared to $(35) million in Q3 2025, primarily due to higher interest expense.
• PPM America, Inc. (PPM) assets under management (AUM) grew 13% to nearly $102 billion as of September 30, 2026, from $90.1 billion in Q3 2025.

Market and Competitive Landscape:

• Jackson was named the exclusive provider of annuities for AARP members through the AARP Annuity Program, enhancing distribution reach to millions of members.
• PPM's growth in AUM was driven by growth in Jackson's general account and third-party AUM, supported by a strategic partnership with TPG Inc.
• Institutional product sales reflected continued demand for spread lending and a disciplined, opportunistic approach to the institutional market.

Risks and Challenges:

• The RBC ratio decreased from the second quarter of 2026 due to an increase in estimated company action level required capital, primarily driven by strong levels of new business.
• Results of reinsured business can differ significantly from quarter to quarter, though they have minimal net impact on shareholders' equity due to offsets in accumulated other comprehensive income (AOCI).
• Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from projections.

Management Commentary and Tone:

• Don Cummings, CEO and President, stated results reflect the strength of the business and consistent execution against strategy.
• Management expressed confidence in the robust in-force book of business and its progress toward financial targets.
• The tone was positive, emphasizing record sales, strong capital generation, and a commitment to long-term financial stability for customers.

Other Key Points:

• Jackson returned $291 million to common shareholders in Q3 2026, up 39% from Q3 2025, consisting of $230 million in common share repurchases and $61 million in common dividends.
• The Board approved a $1 billion increase to the existing common share repurchase authorization.
• Net income included a $337 million gain from business reinsured to third parties in Q3 2026, compared to a $176 million loss in Q3 2025.
• Net income included a more favorable net hedging result versus the prior year's third quarter.
• Total adjusted capital at the operating company was $5.9 billion as of September 30, 2026.
• Holding company free cash flow totaled $275 million in Q3 2026, reflecting a $325 million distribution from the operating company.