On May 8, 2024, Jackson Financial Inc (JXN, Financial) disclosed its financial outcomes for the first quarter ended March 31, 2024, through its 8-K filing. The company reported a significant turnaround with a net income attributable to common shareholders of $784 million, or $9.94 per diluted share, a stark contrast to the net loss of $1.5 billion, or -$18.11 per diluted share, in the same quarter of the previous year.
Company Overview
Jackson Financial Inc specializes in helping Americans enhance and safeguard their retirement savings and income, promoting financial freedom throughout their lives. The company's product portfolio includes a variety of annuities such as variable, fixed index, and fixed annuities. Jackson Financial operates through segments like Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks and Corporate and Other.
Financial Highlights and Strategic Achievements
The company's adjusted operating earnings saw a 23% increase to $334 million, or $4.23 per diluted share, up from $271 million, or $3.15 per diluted share in Q1 2023, primarily fueled by robust growth in variable annuity assets under management. This performance notably surpasses the analyst's EPS estimate of $3.75 for the quarter. The total annuity assets under management reached $248 billion as of March 31, 2024, marking a 13% increase year-over-year.
Furthermore, Jackson Financial achieved record registered index-linked annuity (RILA) sales amounting to $1.2 billion, demonstrating nearly a 117% increase from the previous year. This aligns with the company's strategy to diversify its retail annuity sales. The firm also maintained a robust capital position with total adjusted capital nearing $4.7 billion and an estimated risk-based capital (RBC) ratio at Jackson National Life Insurance Company (JNLIC) of 555-575%.
Operational and Segment Performance
The Retail Annuities segment reported pretax adjusted operating earnings of $419 million, up from $356 million in the prior year, driven by higher fee income from increased average variable annuity assets under management and higher spread income. The Institutional Products segment saw its earnings rise to $31 million from $9 million, attributed to higher spread income. Meanwhile, the Closed Life and Annuity Blocks segment turned a profit of $19 million compared to a loss of $20 million in the previous year.
Capitalization and Market Position
Jackson Financial's total common shareholders’ equity stood at $9.6 billion or $124.42 per diluted share as of March 31, 2024. The adjusted book value attributed to common shareholders was $11.4 billion or $147.17 per diluted share, indicating a solid balance sheet. The company also returned $172 million to shareholders in Q1 through share repurchases and dividends.
Looking Forward
Laura Prieskorn, CEO of Jackson, expressed optimism about the company's trajectory, highlighting the establishment of the Brooke Re captive reinsurance solution and the strong start to the financial year. The company remains committed to its strategic goals and enhancing shareholder value through prudent capital management and innovative product offerings.
Jackson Financial Inc’s first quarter of 2024 has set a positive tone for the year, with significant improvements in profitability and strategic advancements that bolster its market position. Investors and stakeholders may look forward to continued growth and operational efficiency as the company progresses through the fiscal year.
Explore the complete 8-K earnings release (here) from Jackson Financial Inc for further details.
