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Jackson Financial’s main business serves U.S. individuals saving for retirement or seeking retirement income. Customers buy its annuities through financial advisors, brokers, banks and insurance agents. Its variable annuities let customers invest in funds and choose benefits such as guaranteed lifetime income; Jackson collects fees largely tied to account values. Fees are its largest revenue source. For annuities that credit customers interest, it also earns the difference between returns on the assets backing those contracts and the interest it pays customers.
Smaller businesses use a similar investment-spread model to provide guaranteed investment contracts and funding agreements to institutions. Jackson also continues to service older life insurance and annuity policies, many acquired from other insurers; it no longer sells new life insurance.
The business depends on third-party distributors bringing in customers, account values supporting fees, and investment returns covering credited interest and promised benefits. Customer withdrawals and use of guarantees also affect what Jackson earns and pays. Jackson Financial itself is a holding company: cash reaches it mainly through payments from its insurance subsidiaries, whose capital requirements and regulatory distribution limits restrict how much they can send to the parent.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Jackson Financial’s earnings hinge on annuity account values, investment spreads and guarantee hedging, while Athene is a key reinsurer backing $13 billion of its liabilities.
Brighthouse Financial competes with Jackson Financial for U.S. retail investors buying variable and registered index-linked annuities through independent distributors.
Equitable Holdings competes directly with Jackson Financial for U.S. customers putting retirement savings into variable and registered index-linked annuities.
Lincoln National competes with Jackson Financial for U.S. retirement savings through annuities, including variable annuities. Watch its retirement-plan business separately: it mainly serves employer-sponsored defined-contribution plans, rather than Jackson’s retail annuity buyers.
Corebridge Financial’s Individual Retirement business competes with Jackson Financial for retail annuity customers; both also sell retirement products to institutional buyers.
Prudential Financial competes with Jackson Financial for customers buying individual annuities and retirement-income products through financial advisers and other distributors. Its individual retirement product features and distribution reach are the parts to watch for this rivalry.
F&G Annuities & Life competes with Jackson Financial for customers buying registered index-linked, fixed indexed and fixed annuities, and for institutions placing money in contracts promising principal and interest—funding agreements. Watch its fixed-annuity and funding-agreement sales, which F&G says fluctuate with economics and market opportunities.
Aegon’s Transamerica business competes with Jackson Financial for U.S. retail customers buying annuities, including variable annuities.
Voya Financial’s retirement-account fees and investment earnings respond to the same account values and yield conditions that affect Jackson Financial’s annuity earnings. Watch its retirement fees and the gap between investment returns and interest credited to customers—the investment spread.
MetLife’s Retirement and Income Solutions business shares Jackson Financial’s need to invest customer funds to meet guaranteed retirement payments; Jackson does this through its annuity and institutional businesses.
Equitable Holdings, Inc. earningsEQH
Equitable Holdings’ report will show whether U.S. demand for variable and registered index-linked annuities is strengthening or weakening in the market Jackson Financial also serves.
Check whether Equitable’s variable-annuity and registered index-linked annuity sales move together. Growth in both would show customers and advisers continuing to put retirement savings into these products, a more supportive market for Jackson Financial’s efforts to attract deposits. Declines would point to weaker demand and a tougher setting for Jackson’s retail annuity sales.
Jackson Financial Inc. earningsThis company
Jackson Financial’s report will show whether investment spreads and fees from retail annuities can keep operating earnings growing after policy benefits and expenses.
Read retail annuity spread income and fee income alongside pretax adjusted operating earnings. If spreads and fees hold and earnings rise, investment income and account-based fees are covering interest credited to policyholders, benefits and expenses. If sales or account values grow but earnings do not, credited interest, benefits or costs are absorbing the added income, so more deposits are not yet producing more profit.
