Jackson Financial Inc. (Jackson Financial or JFI) is a financial services company.
The company focuses on helping Americans grow and protect their retirement savings and income to enable them to pursue financial freedom for life in the United States (‘U.S.’). The company is well-positioned in its markets because of the company’s differentiated products and its well-known brand among distributors and advisors. The company’s market position is supported by the company’s efficient and scalable ope...
Jackson Financial Inc. (Jackson Financial or JFI) is a financial services company.
The company focuses on helping Americans grow and protect their retirement savings and income to enable them to pursue financial freedom for life in the United States (‘U.S.’). The company is well-positioned in its markets because of the company’s differentiated products and its well-known brand among distributors and advisors. The company’s market position is supported by the company’s efficient and scalable operating platform and industry-leading distribution network.
The company’s principal operating subsidiary, Jackson National Life Insurance Company (‘Jackson National Life’ or ‘Jackson’). The company’s insurance company subsidiaries are licensed to distribute insurance products in all 50 U.S. states and the District of Columbia.
The company offers a diverse suite of annuities to retail investors in the U.S. The company’s variable annuities have been among the best-selling products of their kind in the U.S. principally due to the differentiated features the company offers as compared to its competitors, in particular the wider range of investment options and greater freedom to invest across multiple investment options. The company also offers registered index-linked annuity (‘RILA’), fixed index, fixed, and payout annuities.
The company sells its annuity products through an industry-leading distribution network that includes independent broker-dealers, wirehouses, regional broker-dealers, banks, independent registered investment advisors, third-party platforms and insurance agents.
The company administers approximately 79% of the company’s in-force policies on the company’s in-house policy administration platform. The remainder of the company’s business is administered through established third-party arrangements.
Product Offerings by Segment
The company manages its business through three reportable segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The company reports certain activities and items that are not included in these reportable segments in Corporate and Other, including the results of the company’s subsidiary, PPM Holdings, Inc. (‘PPMH’), and its subsidiary PPM America Inc. (‘PPM’).
Retail Annuities
The company is one of the leading annuity providers in the U.S. retirement market. The company’s Retail Annuities segment includes the company’s variable, registered index-linked, fixed index, fixed, and payout annuities, as well as the company’s lifetime income solutions offering in the defined contribution market.
The company’s annuities are designed to offer customers investment opportunities to grow their savings on a tax-deferred basis consistent with their objectives, ranging from annuities that offer full market participation to annuities that offer guaranteed fixed returns, including full or partial protection of principal; protect their assets using a variety of standard and optional guaranteed benefits and guaranteed minimum crediting rates; and provide a source of income in the form of minimum payments for life and minimum payments to beneficiaries upon death.
Variable Annuities
The company’s variable annuities offer its customers full participation in market returns through a broad selection of funds in a variety of investments, including equities and fixed income. Optional benefits offer customers guaranteed minimum protection based on their eligible contributions, adjusted for withdrawals, and are designed to protect against market volatility and investment performance risk. The principal features of the company’s variable annuity optional guaranteed benefits are:
In addition, the results of the company’s subsidiary, Jackson National Asset Management LLC (‘JNAM’) are included within the company’s Retail Annuities segment. The separate account assets associated with the company’s variable annuities are managed by JNAM, a wholly-owned registered investment advisor that provides investment advisory, fund accounting and administration services to the funds offered within the company’s variable annuities. JNAM selects, monitors and actively manages the investment advisors that manage the funds the company offers within its variable annuities. JNAM also directly manages asset allocation for funds of funds offered within the company’s variable annuities.
Jackson National Life is part of the AllianceBernstein L.P. platform of insurers that provide guaranteed income in its Lifetime Income Strategy retirement solution for defined contribution plans. Lifetime Income Strategy is offered to serve as a qualified default investment alternative. Similar to the GMWB options offered on the company’s variable annuities, Lifetime Income Strategy is designed with a flexible guaranteed income option to offer plan participants control of their account, full access to their money and guaranteed income in retirement.
RILA
The RILA market has been the fastest growing category in the annuity market over the last five years, growing at a compound annual growth rate of 30% from 2020 through 2024. In 2021, the company successfully launched Jackson Market Link Pro and Jackson Market Link Pro Advisory, the company’s commission and advisory-based suite of RILAs. In the second quarter of 2023, the company enhanced its RILA suite of products with the launch of Jackson Market Link Pro II and Jackson Market Link Pro Advisory II. The company’s RILA suite offers its customers access to market returns through market index-linked investment options, subject to a cap, and offers a variety of guarantees designed to modify or limit losses. Specifically, the company’s RILA offers a number of options for a customizable product, including several combinations of crediting strategies, index options, term lengths, and levels of downside protection in the form of ‘floors’ or ‘buffers’. The company’s RILA generally includes a guaranteed minimum payment to beneficiaries upon death, as well as an optional guaranteed minimum payments for life benefit.
Fixed Index Annuities
The company’s fixed index annuities offer a guaranteed minimum crediting rate that may be lower than a traditional fixed annuity and allow the customer discretion in the allocation of assets to either fixed accounts (which offer a fixed interest rate that is similar to the company’s fixed annuities regardless of market performance) or to indexed funds with the potential for additional growth based on the performance of a reference market index (generally, the S&P 500 or MSCI Europe, Australasia, and Far East index), subject to a cap. The company’s fixed index annuities also offer an optional guaranteed minimum payments for life benefit.
Fixed Annuities
The company’s fixed annuities offer a guaranteed minimum crediting rate that is typically higher than the interest rates offered by bank savings accounts or money market funds. In addition to the company’s traditional fixed annuities, the company markets multi-year guaranteed annuities with three different guaranteed crediting rate periods. The company’s fixed annuities do not offer guaranteed minimum payments for life benefits but can be annuitized or converted into a series of income payments that offers such benefits, such as payout annuities.
Institutional Products
The company’s Institutional Products segment consists of traditional guaranteed investment contracts, funding agreements (including agreements issued in conjunction with the company’s participation in the U.S. Federal Home Loan Bank (‘FHLB’) program) and medium-term funding agreement-backed notes. The company’s institutional products provide the company with an additional source of investment spread-based income, and generally guarantee the company’s customers the payment of principal and interest at a fixed or floating rate over a term of two to ten years.
Closed Life and Annuity Blocks
The company’s Closed Life and Annuity Blocks segment is primarily composed of blocks of business that have been acquired since 2004. The segment includes various protection products, primarily whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities.
As of December 31, 2024, the company had more than 1.4 million policies in-force.
Corporate and Other
Corporate and Other includes the operations of PPMH and its subsidiary, PPM, unallocated corporate income and expenses, and certain eliminations and consolidation adjustments.
PPM manages the majority of the company’s general account investment portfolio. The company’s investment and asset allocation guidelines are designed to provide the company with a competitive rate of return on invested assets, support the profitable growth of the company’s business, and support its intention of maintaining appropriate capitalization from both a regulatory and ratings perspective. PPM also provides investment management services to the company’s former parent's affiliates in Asia, former affiliates in the United Kingdom and other third parties across markets, including public fixed income, private equity, private debt and commercial real estate.
Distribution and Operations
Distribution Channels
As of December 31, 2024, the company’s retail annuities are distributed through:
Approximately 500 broker-dealer distribution partners and more than 120,000 appointed advisors across the three traditional broker-dealer channels, including independent broker-dealers; banks and other financial institutions; and wirehouses and regional broker-dealers; and
More than 1,700 registered investment advisors (‘RIAs’) who have a Jackson RIA agreement and are able to access Jackson advisory solutions through an outsourced insurance desk. Collectively these firms have more than 22,000 investment advisory representatives without a broker-dealer registration.
In addition, Jackson National Life Distributors, LLC (‘JNLD’) is a registered broker-dealer with the U.S. Securities and Exchange Commission (the ‘SEC’), pursuant to the Securities Exchange Act of 1934, as amended (the ‘Exchange Act’), and is registered as a broker-dealer in all applicable states.
The company’s strong presence in multiple distribution channels helps position the company as a leading provider of retirement savings and income solutions. The company is increasingly focused on growing sales through its Independent RIAs, Platforms & Agents (‘IPA’) channel. The company facilitates the sale of annuities by RIAs by offering them use of an insurance support desk that satisfies insurance-related licensing and regulatory requirements.
The company sells its institutional products through investment banks or other intermediaries to institutional and corporate investors, plan sponsors and other eligible purchasers.
Operating Platform
The company’s in-house policy administration platform gives the company flexibility to administer multiple product types through a single platform. The company has more than 2.7 million life and annuity policies and administers approximately 79% of the company’s in-force policies on its in-house platform. The company also has scalable third-party administration arrangements. The company’s ability to utilize both in-house and third-party administrative platforms gives the company flexibility to convert and administer acquired business efficiently.
Regulation
Jackson National Life Insurance Company (domiciled in Michigan) is subject to regulation and supervision by the Michigan Department of Insurance and Financial Services (‘DIFS’), and by insurance regulatory authorities in other U.S. states in which Jackson is authorized to transact business; also, certain of the company’s separate accounts are registered pursuant to the Investment Company Act of 1940 and are subject to regulation and supervision by the SEC.
Jackson National Life Insurance Company of New York (domiciled in New York) is subject to regulation and supervision by the New York State Department of Financial Services (‘NYSDFS’); and certain of the company’s separate accounts are registered pursuant to the Investment Company Act of 1940 and are subject to regulation and supervision by the SEC.
Brooke Life Insurance Company (domiciled in Michigan) is subject to regulation and supervision by DIFS.
Brooke Life Reinsurance Company (domiciled in Michigan) is subject to regulation and supervision by DIFS.
Jackson National Asset Management LLC is a SEC-registered investment adviser.
PPM America, Inc. is a SEC-registered investment adviser.
Jackson National Life Distributors LLC is a SEC-registered broker-dealer and subject to regulation and supervision by the Financial Industry Regulatory Authority (‘FINRA’) and state securities administrators.
These laws and regulations affect, among other things, how the company conducts business, the company’s permitted investments and financial condition, marketing and investment disclosures, cybersecurity and privacy requirements, and applicable accounting standards. Further, they are complex, subject to change, and administered and enforced by multiple governmental authorities. The authorities include state insurance regulators, state securities administrators, the SEC, FINRA, the U.S. Department of Labor (the ‘DOL’), the U.S. Department of Justice, and state attorneys general. Generally, these laws and regulations are designed to protect or benefit the interests of a specific constituency, such as, for example, state insurance laws and regulations that are generally intended to protect or benefit purchasers or users of insurance products.
On June 5, 2019, the SEC adopted a package of investment advice reforms designed to enhance investor protections while preserving retail investor access and choice. The most significant element of the package is a rule (known as ‘Regulation Best Interest’) establishing a best interest standard of conduct for broker-dealers and their representatives when they make recommendations to retail investors. Regulation Best Interest, which became effective on June 30, 2020, enhances the duties and disclosure requirements that apply to the company’s broker-dealer and investment adviser subsidiaries when they provide recommendations and investment advice to retail investors, as well as the company’s representatives that provide such services.
The California Consumer Privacy Act of 2018 (the ‘CCPA’) grants all California residents the right to know what information a business has collected from them and the sourcing and sharing of that information, as well as a right to have a business delete their personal information (with some exceptions). The CCPA’s definition of ‘personal information’ is more expansive than those found in other privacy laws applicable to the company in the U.S.
JNLD is registered as a broker-dealer with the SEC and is registered as a broker-dealer in all applicable states. JNLD is also a member of, and subject to regulation by, FINRA, a self-regulatory organization subject to SEC oversight. The SEC and FINRA also regulate the sales practices of broker-dealers.
Jackson National Asset Management LLC (‘JNAM’) is registered with the SEC as an investment adviser pursuant to the Investment Advisers Act. The investment companies (mutual funds) for which JNAM serves as an investment adviser are subject to SEC registration and regulation pursuant to the Securities Act, and the Investment Company Act of 1940.
PPM America, Inc. (‘PPM’) is registered with the SEC as an investment adviser under the Investment Advisers Act. PPM serves as the investment adviser to Jackson National Life and as the primary U.S. institutional investment adviser for certain other affiliated insurance company accounts, as well as Jackson Financial. PPM also acts as a sub-adviser to certain U.S. mutual funds for which JNAM serves as investment adviser. In addition, PPM serves as an investment adviser and sub-adviser to the company’s former parent's Asian affiliates and other institutional clients primarily for U.S. focused portfolios.
JNAM is registered as a ‘commodity pool operator’ with the National Futures Association (‘NFA’) pursuant to the Commodity Futures Trade Commission (‘CFTC’) regulations and acts as a commodity pool operator with respect to the operation of certain of the mutual funds. The CFTC is a federal agency whose responsibilities include the regulation of commodity interests and enforcement of the Commodity Exchange Act of 1974. The NFA is a self-regulatory organization to which the CFTC has delegated, among other things, the administration and enforcement of commodity regulatory registration requirements and the regulation of its members.
History
The company was incorporated in 2006. It was formerly known as Brooke (Holdco1) Inc. and changed its name to Jackson Financial Inc. in 2020.
